Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'SELECT BANCORP, INC. | ' |
Entity Central Index Key | '0001263762 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'SLCT | ' |
Entity Common Stock, Shares Outstanding | ' | 11,347,668 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and due from banks | $23,678 | $20,151 | [1] |
Interest-earning deposits in other banks | 46,740 | 49,690 | [1] |
Federal funds sold | 3,028 | 3,028 | [1] |
Investment securities available for sale, at fair value | 79,904 | 83,836 | [1] |
Loans | 333,868 | 346,500 | [1] |
Allowance for loan losses | -6,447 | -7,054 | [1] |
NET LOANS | 327,421 | 339,446 | [1] |
Accrued interest receivable | 1,466 | 1,650 | [1] |
Stock in Federal Home Loan Bank of Atlanta (“FHLBâ€), at cost | 562 | 796 | [1] |
Other non marketable securities | 1,041 | 1,055 | [1] |
Foreclosed real estate | 1,169 | 2,008 | [1] |
Premises and equipment, net | 10,930 | 10,900 | [1] |
Bank owned life insurance | 8,578 | 8,463 | [1] |
Core deposit intangible | 124 | 182 | [1] |
Other assets | 3,641 | 4,441 | [1] |
TOTAL ASSETS | 508,282 | 525,646 | [1] |
Deposits: | ' | ' | |
Demand | 82,030 | 85,347 | [1] |
Savings | 17,315 | 16,597 | [1] |
Money market and NOW | 118,833 | 124,635 | [1] |
Time | 210,556 | 221,879 | [1] |
TOTAL DEPOSITS | 428,734 | 448,458 | [1] |
Short term debt | 7,179 | 6,305 | [1] |
Long term debt | 12,372 | 12,372 | [1] |
Accrued interest payable | 207 | 225 | [1] |
Accrued expenses and other liabilities | 2,239 | 2,282 | [1] |
TOTAL LIABILITIES | 450,731 | 469,642 | [1] |
Shareholders' Equity | ' | ' | |
Preferred stock, no par value, 10,000,000 shares authorized, none outstanding | 0 | 0 | [1] |
Common stock, $1 par value, 25,000,000 shares authorized; 6,931,168 and 6,921,352 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 6,931 | 6,922 | [1] |
Additional paid-in capital | 42,132 | 42,062 | [1] |
Retained earnings | 8,013 | 7,128 | [1] |
Accumulated other comprehensive income (loss) | 475 | -108 | [1] |
TOTAL SHAREHOLDERS' EQUITY | 57,551 | 56,004 | [1] |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $508,282 | $525,646 | [1] |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 6,931,168 | 6,921,352 |
Common stock, shares outstanding | 6,931,168 | 6,921,352 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
INTEREST INCOME | ' | ' | ' | ' |
Loans | $4,816 | $5,543 | $9,689 | $10,978 |
Federal funds sold and interest-earning deposits in other banks | 31 | 54 | 58 | 111 |
Investments | 414 | 371 | 827 | 758 |
TOTAL INTEREST INCOME | 5,261 | 5,968 | 10,574 | 11,847 |
INTEREST EXPENSE | ' | ' | ' | ' |
Money market, NOW and savings deposits | 59 | 118 | 117 | 239 |
Time deposits | 959 | 1,154 | 1,934 | 2,362 |
Short term debt | 7 | 9 | 13 | 25 |
Long term debt | 73 | 74 | 144 | 147 |
TOTAL INTEREST EXPENSE | 1,098 | 1,355 | 2,208 | 2,773 |
NET INTEREST INCOME | 4,163 | 4,613 | 8,366 | 9,074 |
PROVISION FOR (RECOVERY OF) LOAN LOSSES | -427 | -375 | -476 | -475 |
NET INTEREST INCOME AFTER RECOVERY OF LOAN LOSSES | 4,590 | 4,988 | 8,842 | 9,549 |
NON-INTEREST INCOME | ' | ' | ' | ' |
Fees from pre-sold mortgages | 0 | 12 | 0 | 73 |
Service charges on deposit accounts | 226 | 276 | 453 | 548 |
Other fees and income | 339 | 467 | 737 | 752 |
TOTAL NON-INTEREST INCOME | 565 | 755 | 1,190 | 1,373 |
NON-INTEREST EXPENSE | ' | ' | ' | ' |
Personnel | 2,101 | 1,997 | 4,256 | 4,086 |
Occupancy and equipment | 396 | 372 | 780 | 701 |
Deposit insurance | 103 | 61 | 206 | 209 |
Professional fees | 310 | 342 | 593 | 618 |
Information systems | 320 | 326 | 668 | 664 |
Foreclosed real estate related expense | 40 | 67 | 311 | 190 |
Merger and restructuring related expenses | 237 | 0 | 398 | 0 |
Other | 647 | 591 | 1,394 | 1,210 |
TOTAL NON-INTEREST EXPENSE | 4,154 | 3,756 | 8,606 | 7,678 |
INCOME BEFORE INCOME TAX | 1,001 | 1,987 | 1,426 | 3,244 |
INCOME TAXES | 388 | 728 | 541 | 1,192 |
NET INCOME | $613 | $1,259 | $885 | $2,052 |
NET INCOME PER COMMON SHARE | ' | ' | ' | ' |
Basic (in dollars per share) | $0.09 | $0.18 | $0.13 | $0.30 |
Diluted (in dollars per share) | $0.09 | $0.18 | $0.13 | $0.30 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ' | ' | ' | ' |
Basic (in shares) | 6,923,640 | 6,921,352 | 6,922,651 | 6,916,233 |
Diluted (in shares) | 6,928,428 | 6,922,942 | 6,926,318 | 6,917,471 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $613 | $1,259 | $885 | $2,052 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities available for sale | 482 | -1,171 | 718 | -1,480 |
Tax effect | -180 | 398 | -267 | 503 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 302 | -773 | 451 | -977 |
Reclassification adjustment for loss included in net income | 65 | 63 | 211 | 136 |
Tax effect | -24 | -21 | -79 | -46 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 41 | 42 | 132 | 90 |
Total | 343 | -731 | 583 | -887 |
Total comprehensive income | $956 | $528 | $1,468 | $1,165 |
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, 2012 | $54,179 | $6,914 | $42,000 | $4,187 | $1,078 | |
Balance (in shares) at Dec. 31, 2012 | ' | 6,913,636 | ' | ' | ' | |
Net income | 2,052 | 0 | 0 | 2,052 | 0 | |
Other comprehensive income loss, net | -887 | 0 | 0 | 0 | -887 | |
Stock option exercises | 44 | 8 | 36 | 0 | 0 | |
Stock option exercises (in shares) | ' | 7,716 | ' | ' | ' | |
Stock based compensation | 15 | 0 | 15 | 0 | 0 | |
Balance at Jun. 30, 2013 | 55,403 | 6,922 | 42,051 | 6,239 | 191 | |
Balance (in shares) at Jun. 30, 2013 | ' | 6,921,352 | ' | ' | ' | |
Balance at Dec. 31, 2013 | 56,004 | [1] | 6,922 | 42,062 | 7,128 | -108 |
Balance (in shares) at Dec. 31, 2013 | ' | 6,921,352 | ' | ' | ' | |
Net income | 885 | 0 | 0 | 885 | 0 | |
Other comprehensive income loss, net | 583 | 0 | 0 | 0 | 583 | |
Stock option exercises | 68 | 9 | 59 | 0 | 0 | |
Stock option exercises (in shares) | ' | 9,816 | ' | ' | ' | |
Stock based compensation | 11 | 0 | 11 | 0 | 0 | |
Balance at Jun. 30, 2014 | $57,551 | $6,931 | $42,132 | $8,013 | $475 | |
Balance (in shares) at Jun. 30, 2014 | ' | 6,931,168 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net income | $885 | $2,052 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Recovery of loan losses | -476 | -475 |
Depreciation and amortization of premises and equipment | 281 | 255 |
Amortization and accretion of investment securities | 238 | 311 |
Amortization of deferred loan fees and costs | -152 | -120 |
Amortization of core deposit intangible | 58 | 58 |
Stock-based compensation | 11 | 15 |
Increase in cash surrender value of bank owned life insurance | -115 | -117 |
Net loss on sale and write-downs of foreclosed real estate | 273 | 168 |
Net loss on investment security sales and pay-downs | 211 | 136 |
Change in assets and liabilities: | ' | ' |
Net change in accrued interest receivable | 184 | 106 |
Net change in other assets | 453 | 466 |
Net change in accrued expenses and other liabilities | -61 | 391 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 1,790 | 3,246 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Redemption of FHLB stock | 234 | 177 |
Redemption of non-marketable security | 14 | 65 |
Purchase of investment securities available for sale | -7,445 | -1,821 |
Maturities of investment securities available for sale | 7,102 | 6,351 |
Mortgage-backed securities pay-downs | 4,206 | 6,432 |
Sale of investment securities available for sale | 550 | 0 |
Net change in loans outstanding | 11,993 | 11,302 |
Proceeds from sale of foreclosed real estate | 1,226 | 744 |
Purchases of premises and equipment | -311 | -210 |
NET CASH PROVIDED BY INVESTING ACTIVITIES | 17,569 | 23,040 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Net change in deposits | -19,724 | -33,070 |
Proceeds from short-term debt | 874 | 0 |
Repayments on short-term debt | 0 | -3,990 |
Proceeds from stock option exercises | 68 | 44 |
NET CASH USED IN FINANCING ACTIVITIES | -18,782 | -37,016 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 577 | -10,730 |
CASH AND CASH EQUIVALENTS, BEGINNING | 72,869 | 113,608 |
CASH AND CASH EQUIVALENTS, ENDING | 73,446 | 102,878 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ' | ' |
Interest | 2,226 | 2,813 |
Taxes | 10 | 526 |
Non-cash transactions: | ' | ' |
Unrealized gains (losses) on investment securities available for sale, net of tax | 451 | -887 |
Transfers from loans to foreclosed real estate | 660 | 49 |
Transfers from loans held for sale to loans, at fair value | $0 | $406 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE A - BASIS OF PRESENTATION | |
Select Bancorp, Inc. (the “Company”) is a bank holding company whose principal business activity consists of ownership of Select Bank & Trust Company (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. | |
On July 25, 2014, New Century Bancorp, Inc. (“New Century”) acquired Select Bancorp, Inc., and its wholly-owned subsidiary, Select Bank & Trust Company, and assumed the name, Select Bancorp, Inc. on that date. The financial data reported here is solely the financial information of the entity formerly known as New Century. Commencing in the third quarter of 2014, consolidated financial information of the former New Century and Select entities will be reported upon the July 25, 2014 closing of the merger. | |
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 six month periods ended June 30, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |
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 three and six month periods ended June 30, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. | |
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 2013 Annual Report for the former New Century Bancorp, Inc. on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 20, 2014. This quarterly report should be read in conjunction with the Annual Report. | |
PER_SHARE_RESULTS
PER SHARE RESULTS | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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 June 30, 2014 and 2013 there were 91,183 and 308,909 anti-dilutive options outstanding, respectively. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Weighted average shares used for basic net income per share | 6,923,640 | 6,921,352 | 6,922,651 | 6,916,233 | ||||||||||
Effect of dilutive stock options | 4,788 | 1,590 | 3,667 | 1,238 | ||||||||||
Weighted average shares used for diluted net income per share | 6,928,428 | 6,922,942 | 6,926,318 | 6,917,471 | ||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2014 | |
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: | |
Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This guidance is the culmination of the Financial Accounting Standards Board’s (“FASB”) 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, but did result in additional disclosures in Note H. | |
ASU 2014-04, Troubled Debt Restructurings by Creditors (Subtopic 310-40): "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure." This pronouncement clarifies the criteria for concluding that an in substance repossession or foreclosure has occurred, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The amendments also outline interim and annual disclosure requirements. The amendments will be effective for the Company for interim and annual reporting periods beginning after December 15, 2014. Companies are allowed to use either a modified retrospective transition method or a prospective transition method when adopting this update. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. | |
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 | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||
NOTE D - 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. | ||||||||||||||
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. | ||||||||||||||
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 | ||||||||||||||
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 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. | |||||||||||||
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 (“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, mortgage-backed securities issued by government sponsored entities, and municipal bonds. There have been no changes in valuation techniques for the six months ended June 30, 2014. 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 June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
Investment securities | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
available for sale | Active Markets | Other | Unobservable | |||||||||||
June 30, 2014 | for Identical | Observable | Inputs (Level 3) | |||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
U.S. government agencies – GSE's | $ | 27,159 | $ | - | $ | 27,159 | $ | - | ||||||
Mortgage-backed securities - GSE’s | 45,199 | - | 45,199 | - | ||||||||||
Municipal bonds | 7,546 | - | 7,546 | - | ||||||||||
Total | $ | 79,904 | $ | - | $ | 79,904 | $ | - | ||||||
Investment securities | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
available for sale | Active Markets | Other | Unobservable | |||||||||||
December 31, 2013 | for Identical | Observable | Inputs (Level 3) | |||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
U.S. government agencies – GSE's | $ | 34,665 | $ | - | $ | 34,665 | $ | - | ||||||
Mortgage-backed securities - GSE’s | 41,065 | - | 41,065 | - | ||||||||||
Municipal bonds | 8,106 | - | 8,106 | - | ||||||||||
Total | $ | 83,836 | $ | - | $ | 83,836 | $ | - | ||||||
The following is a description of valuation methodologies used for assets recorded at fair value on a non-recurring basis. | ||||||||||||||
Loans | ||||||||||||||
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 June 30, 2014 and December 31, 2013, 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 June 30, 2014, the discounts used ranged between 5% and 40%. There were no transfers between levels from the prior reporting periods and there have been no changes in valuation techniques for the three months ended June 30, 2014. | ||||||||||||||
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 June 30, 2014, the discounts used ranged between 6% and 10%. There have been no changes in valuation techniques for the three months ended June 30, 2014. | ||||||||||||||
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 June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
Asset Category | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
June 30, 2014 | Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs (Level 3) | ||||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
Impaired loans | $ | 4,947 | $ | - | $ | - | $ | 4,947 | ||||||
Foreclosed real estate | 1,169 | - | - | 1,169 | ||||||||||
Total | $ | 2,511 | $ | - | $ | - | $ | 2,511 | ||||||
As of June 30, 2014, the Bank identified $14.5 million in impaired loans, of which $4.9 million were carried at fair value on a non-recurring basis which included $4.1 million in loans that required a specific reserve of $776,000, and an additional $1.6 million in other loans without specific reserves that had partial charge-offs. | ||||||||||||||
Asset Category | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
December 31, 2013 | Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs (Level 3) | ||||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
Impaired loans | $ | 8,477 | $ | - | $ | - | $ | 8,477 | ||||||
Foreclosed real estate | 2,008 | - | - | 2,008 | ||||||||||
Total | $ | 10,485 | $ | - | $ | - | $ | 10,485 | ||||||
As of December 31, 2013, the Bank identified $19.0 million in impaired loans, of which $9.9 million were carried at fair value on a non-recurring basis which included $7.4 million in loans that required a specific reserve of $1.1 million, and an additional $2.1 million in other loans without specific reserves that had charge-offs | ||||||||||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Financial Instruments Disclosure [Text Block] | ' | ||||||||||||||||
NOTE E – FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||
The following table presents the carrying values and estimated fair values of the Company's financial instruments at June 30, 2014 and December 31, 2013: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 23,678 | $ | 23,678 | $ | 23,678 | $ | - | $ | - | |||||||
Interest-earning deposits in other banks | 46,740 | 46,740 | 46,740 | - | - | ||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | - | - | ||||||||||||
Investment securities available for sale | 79,904 | 79,904 | - | 79,904 | - | ||||||||||||
Loans, net | 327,421 | 335,098 | - | - | 335,098 | ||||||||||||
Accrued interest receivable | 1,466 | 1,466 | - | - | 1,466 | ||||||||||||
Stock in FHLB | 562 | 562 | - | - | 562 | ||||||||||||
Other non-marketable securities | 1,041 | 1,041 | - | - | 1,041 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 428,734 | $ | 431,907 | $ | - | $ | 431,907 | $ | - | |||||||
Short term debt | 7,179 | 7,179 | - | 7,179 | - | ||||||||||||
Long term debt | 12,372 | 7,517 | - | 7,517 | - | ||||||||||||
Accrued interest payable | 207 | 207 | - | - | 207 | ||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 20,151 | $ | 20,151 | $ | 20,151 | $ | - | $ | - | |||||||
Interest-earning deposits in other banks | 49,690 | 49,690 | 49,690 | - | - | ||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | - | - | ||||||||||||
Investment securities available for sale | 83,836 | 83,836 | - | 83,836 | - | ||||||||||||
Loans, net | 339,446 | 353,439 | - | - | 353,439 | ||||||||||||
Accrued interest receivable | 1,650 | 1,650 | - | - | 1,650 | ||||||||||||
Stock in the FHLB | 796 | 796 | - | - | 796 | ||||||||||||
Other non-marketable securities | 1,055 | 1,055 | - | - | 1,055 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 448,458 | $ | 452,529 | $ | - | $ | 452,529 | $ | - | |||||||
Short-term debt | 6,305 | 6,305 | - | 6,305 | - | ||||||||||||
Long-term debt | 12,372 | 7,517 | - | 7,517 | - | ||||||||||||
Accrued interest payable | 225 | 225 | - | - | 225 | ||||||||||||
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 | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | ' | |||||||||||||||||||
NOTE F - INVESTMENT SECURITIES | ||||||||||||||||||||
The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | ||||||||||||||||||||
Within 1 year | $ | 9,770 | $ | 21 | $ | - | $ | 9,791 | ||||||||||||
After 1 year but within 5 years | 2,437 | 4 | -7 | 2,434 | ||||||||||||||||
After 5 years but within 10 years | 11,821 | 9 | -308 | 11,522 | ||||||||||||||||
After 10 years | 3,466 | - | -54 | 3,412 | ||||||||||||||||
Mortgage-backed securities-GSE’s | ||||||||||||||||||||
Within 1 year | 46 | 3 | - | 49 | ||||||||||||||||
After 1 year but within 5 years | 23,995 | 901 | - | 24,896 | ||||||||||||||||
After 5 years but within 10 years | 20,326 | 75 | -147 | 20,254 | ||||||||||||||||
Municipal bonds | ||||||||||||||||||||
Within 1 year | 577 | 10 | - | 587 | ||||||||||||||||
After 1 year but within 5 years | 2,529 | 169 | - | 2,698 | ||||||||||||||||
After 5 years but within 10 years | 3,369 | 83 | -5 | 3,447 | ||||||||||||||||
After 10 years | 811 | 9 | -6 | 814 | ||||||||||||||||
$ | 79,147 | $ | 1,284 | $ | -527 | $ | 79,904 | |||||||||||||
As of June 30, 2014, accumulated other comprehensive income included net unrealized gains totaling $757,000. Deferred tax liabilities resulting from these unrealized gains totaled $346,000. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | ||||||||||||||||||||
Within 1 year | $ | 10,520 | $ | 25 | $ | - | $ | 10,545 | ||||||||||||
After 1 year but within 5 years | 8,820 | 17 | -10 | 8,827 | ||||||||||||||||
After 5 years but within 10 years | 7,376 | - | -549 | 6,827 | ||||||||||||||||
After 10 years | 8,524 | 11 | -69 | 8,466 | ||||||||||||||||
Mortgage-backed securities-GSE’s | ||||||||||||||||||||
Within 1 year | 133 | 7 | - | 140 | ||||||||||||||||
After 1 year but within 5 years | 35,352 | 659 | -155 | 35,856 | ||||||||||||||||
After 5 years but within 10 years | 5,316 | - | -247 | 5,069 | ||||||||||||||||
Municipal bonds | ||||||||||||||||||||
Within 1 year | 100 | 1 | - | 101 | ||||||||||||||||
After 1 year but within 5 years | 3,036 | 196 | - | 3,232 | ||||||||||||||||
After 5 years but within 10 years | 3,306 | 30 | -112 | 3,224 | ||||||||||||||||
After 10 years | 1,526 | 54 | -31 | 1,549 | ||||||||||||||||
$ | 84,009 | $ | 1,000 | $ | -1,173 | $ | 83,836 | |||||||||||||
As of December 31, 2013, accumulated other comprehensive loss included net unrealized losses totaling $173,000. Deferred tax assets resulting from these unrealized losses totaled $65,000. | ||||||||||||||||||||
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 June 30, 2014 and December 31, 2013. | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | $ | 9,162 | $ | -101 | $ | 5,732 | $ | -268 | $ | 14,894 | $ | -369 | ||||||||
Mortgage-backed securities-GSE’s | 8,761 | -48 | 4,905 | -99 | 13,666 | -147 | ||||||||||||||
Municipal bonds | 1,752 | -3 | 522 | -8 | 2,274 | -11 | ||||||||||||||
Total temporarily impaired securities | $ | 19,675 | $ | -152 | $ | 11,159 | $ | -375 | $ | 30,834 | $ | -527 | ||||||||
At June 30, 2014, the Company had nine AFS securities with an unrealized loss for twelve or more consecutive months. Three U.S. government agency GSE’s, four mortgage-backed GSE’s, and two municipal bonds had unrealized losses for more than twelve months totaling $375,000 at June 30, 2014. Six U.S. government agency GSE’s, five mortgage-backed GSE’s, and one municipal bond had unrealized losses for less than twelve months totaling $152,000 at June 30, 2014. All unrealized losses are attributable to the general trend of interest rates. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 11,908 | $ | -239 | $ | 3,611 | $ | -389 | $ | 15,519 | $ | -628 | ||||||||
Mortgage-backed securities-GSE’s | 21,762 | -312 | 1,777 | -90 | 23,539 | -402 | ||||||||||||||
Municipal bonds | 2,719 | -143 | - | - | 2,719 | -143 | ||||||||||||||
Total temporarily impaired securities | $ | 36,389 | $ | -694 | $ | 5,388 | $ | -479 | $ | 41,777 | $ | -1,173 | ||||||||
At December 31, 2013, the Company had three AFS securities with an unrealized loss for twelve or more consecutive months. Two U.S. government agency GSE’s and one mortgage-backed GSE had unrealized losses for more than twelve months totaling $479,000 at December 31, 2013. Eight U.S. government agency GSE’s, nineteen mortgage-backed GSE’s, and three municipal bonds had unrealized losses for less than twelve months totaling $694,000 at December 31, 2013. All unrealized losses are attributable to the general trend of interest rates. | ||||||||||||||||||||
LOANS
LOANS | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Loans and Leases Receivable Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||||||||||||||
NOTE G - LOANS | ||||||||||||||||||||||||||
Following is a summary of the composition of the Company’s loan portfolio at June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Percent | Percent | |||||||||||||||||||||||||
Amount | of total | Amount | of total | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||
1 to 4 family residential | $ | 30,669 | 9.19 | % | $ | 35,006 | 10.1 | % | ||||||||||||||||||
Commercial real estate | 156,971 | 47.02 | % | 169,176 | 48.82 | % | ||||||||||||||||||||
Multi-family residential | 18,436 | 5.52 | % | 19,739 | 5.7 | % | ||||||||||||||||||||
Construction | 60,541 | 18.13 | % | 53,325 | 15.39 | % | ||||||||||||||||||||
Home equity lines of credit (“HELOC”) | 30,561 | 9.15 | % | 31,863 | 9.2 | % | ||||||||||||||||||||
Total real estate loans | 297,178 | 89.01 | % | 309,109 | 89.21 | % | ||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||
Commercial and industrial | 31,660 | 9.48 | % | 29,166 | 8.42 | % | ||||||||||||||||||||
Loans to individuals | 5,504 | 1.65 | % | 8,584 | 2.48 | % | ||||||||||||||||||||
Overdrafts | 155 | 0.05 | % | 191 | 0.05 | % | ||||||||||||||||||||
Total other loans | 37,319 | 11.18 | % | 37,941 | 10.95 | % | ||||||||||||||||||||
Gross loans | 334,497 | 347,050 | ||||||||||||||||||||||||
Less deferred loan origination fees, net | -629 | -0.19 | % | -550 | -0.16 | % | ||||||||||||||||||||
Total loans | 333,868 | 100 | % | 346,500 | 100 | % | ||||||||||||||||||||
Allowance for loan losses | -6,447 | -7,054 | ||||||||||||||||||||||||
Total loans, net | $ | 327,421 | $ | 339,446 | ||||||||||||||||||||||
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 local economic conditions. | ||||||||||||||||||||||||||
At June 30, 2014, the Company had pre-approved but unused lines of credit for customers totaling $98.7 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. | ||||||||||||||||||||||||||
A description of the various loan products provided by the Bank is presented below. | ||||||||||||||||||||||||||
1-to-4 Family Residential Loans | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
Commercial Real Estate 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. | ||||||||||||||||||||||||||
Multi-family Residential 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. | ||||||||||||||||||||||||||
Construction 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. | ||||||||||||||||||||||||||
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, and interest rates increasing beyond budget. | ||||||||||||||||||||||||||
Home Equity Lines of Credit | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
Commercial and Industrial Loans | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
Loans to Individuals & Overdrafts | ||||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
The following tables present an age analysis of past due loans, segregated by class of loans as of June 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
30+ | Non- | Total | ||||||||||||||||||||||||
Days | Accrual | Past | Total | |||||||||||||||||||||||
Past Due | Loans | Due | Current | Loans | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 173 | $ | 265 | $ | 438 | $ | 31,222 | $ | 31,660 | ||||||||||||||||
Construction | 18 | 889 | 907 | 59,634 | 60,541 | |||||||||||||||||||||
Multi-family residential | - | 955 | 955 | 17,481 | 18,436 | |||||||||||||||||||||
Commercial real estate | 2 | 3,208 | 3,210 | 153,761 | 156,971 | |||||||||||||||||||||
Loans to individuals & overdrafts | 12 | 22 | 34 | 5,625 | 5,659 | |||||||||||||||||||||
1-to-4 family residential | 286 | 1,282 | 1,568 | 29,101 | 30,669 | |||||||||||||||||||||
HELOC | 22 | 986 | 1,008 | 29,553 | 30,561 | |||||||||||||||||||||
Deferred loan (fees) cost, net | -629 | |||||||||||||||||||||||||
$ | 513 | $ | 7,607 | $ | 8,120 | $ | 326,377 | $ | 333,868 | |||||||||||||||||
There were no loans that were more than 90 days past due and still accruing interest at June 30, 2014. | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
30+ | Non- | Total | ||||||||||||||||||||||||
Days | Accrual | Past | Total | |||||||||||||||||||||||
Past Due | Loans | Due | Current | Loans | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 70 | $ | 330 | $ | 400 | $ | 28,766 | $ | 29,166 | ||||||||||||||||
Construction | 36 | 1,206 | 1,242 | 52,083 | 53,325 | |||||||||||||||||||||
Multi-family residential | - | 1,004 | 1,004 | 18,735 | 19,739 | |||||||||||||||||||||
Commercial real estate | 446 | 4,441 | 4,887 | 164,289 | 169,176 | |||||||||||||||||||||
Loans to individuals & overdrafts | 4 | 5 | 9 | 8,766 | 8,775 | |||||||||||||||||||||
1 to 4 family residential | 318 | 1,092 | 1,410 | 33,596 | 35,006 | |||||||||||||||||||||
HELOC | - | 1,241 | 1,241 | 30,622 | 31,863 | |||||||||||||||||||||
Deferred loan (fees) cost, net | -550 | |||||||||||||||||||||||||
$ | 874 | $ | 9,319 | $ | 10,193 | $ | 336,857 | $ | 346,500 | |||||||||||||||||
There were no loans greater than 90 days past due and still accruing interest at December 31, 2013. | ||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||
The following tables present information on loans that were considered to be impaired as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
As of June 30, 2014 | June 30, 2014 | June 30, 2014 | ||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | ||||||||||||||||||||||||
Unpaid | Average | Recognized on | Average | Recognized on | ||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Impaired | Recorded | Impaired | ||||||||||||||||||||
Investment | Balance | Allowance | Investment | Loans | Investment | Loans | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 122 | $ | 122 | $ | - | $ | 124 | $ | 2 | $ | 159 | $ | 5 | ||||||||||||
Construction | 1,634 | 1,848 | - | 1,706 | 20 | 1,846 | 43 | |||||||||||||||||||
Commercial real estate | 3,271 | 4,441 | - | 3,363 | 37 | 3,639 | 107 | |||||||||||||||||||
Loans to individuals & overdrafts | 2 | 5 | - | 2 | - | 2 | ||||||||||||||||||||
Multi-family residential | 2,331 | 2,605 | - | 2,335 | 36 | 2,358 | 75 | |||||||||||||||||||
1 to 4 family residential | 2,379 | 2,804 | - | 2,421 | 25 | 2,967 | 64 | |||||||||||||||||||
HELOC | 659 | 774 | - | 707 | 12 | 713 | 21 | |||||||||||||||||||
Subtotal: | 10,398 | 12,599 | - | 10,658 | 132 | 11,684 | 315 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | 266 | 266 | 66 | 265 | - | 266 | - | |||||||||||||||||||
Construction | 168 | 168 | 81 | 168 | - | 248 | - | |||||||||||||||||||
Commercial real estate | 2,715 | 3,434 | 426 | 2,693 | 31 | 4,205 | 42 | |||||||||||||||||||
Loans to individuals & overdrafts | 20 | 20 | 20 | 10 | - | 11 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | - | |||||||||||||||||||
1 to 4 family residential | 569 | 574 | 43 | 496 | 13 | 561 | 20 | |||||||||||||||||||
HELOC | 400 | 643 | 140 | 473 | 4 | 477 | 9 | |||||||||||||||||||
Subtotal: | 4,138 | 5,105 | 776 | 4,105 | 48 | 5,768 | 71 | |||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | 10,507 | 12,884 | 573 | 10,654 | 126 | 12,721 | 272 | |||||||||||||||||||
Consumer | 22 | 25 | 20 | 12 | - | 13 | - | |||||||||||||||||||
Residential | 4,007 | 4,795 | 183 | 4,097 | 54 | 4,718 | 114 | |||||||||||||||||||
Grand Total: | $ | 14,536 | $ | 17,704 | $ | 776 | $ | 14,763 | $ | 180 | $ | 17,452 | $ | 386 | ||||||||||||
Impaired loans at June 30, 2014 were approximately $14.5 million and were composed of $7.6 million in nonaccrual loans and $6.9 million in loans that were still accruing interest. Recorded investment represents the current principal balance of the loan. Approximately $4.1 million in impaired loans had specific allowances provided for them while the remaining $10.4 million had no specific allowances recorded at June 30, 2014. Of the $10.4 million with no allowance recorded, $1.6 million of those loans have had partial charge-offs recorded. | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
As of December 31, 2013 | June 30, 2013 | June 30, 2013 | ||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | ||||||||||||||||||||||||
Unpaid | Related | Average | Recognized on | Average | Recognized on | |||||||||||||||||||||
Recorded | Principal | Allowance | Recorded | Impaired | Recorded | Impaired | ||||||||||||||||||||
Investment | Balance | for Loan Losses | Investment | Loans | Investment | Loans | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 196 | $ | 257 | $ | - | $ | 500 | $ | 17 | $ | 515 | $ | 21 | ||||||||||||
Construction | 2,059 | 2,311 | - | 1,881 | 2 | 2,046 | 4 | |||||||||||||||||||
Commercial real estate | 3,748 | 4,971 | - | 5,812 | 124 | 5,870 | 147 | |||||||||||||||||||
Loans to individuals & overdrafts | 3 | 3 | - | 1 | - | 2 | - | |||||||||||||||||||
Multi-family residential | 2,384 | 2,384 | - | 1,911 | 33 | 1,755 | 72 | |||||||||||||||||||
1 to 4 family residential | 2,427 | 2,731 | - | 396 | 2 | 477 | 4 | |||||||||||||||||||
HELOC | 767 | 854 | - | 2,707 | 31 | 2,713 | 64 | |||||||||||||||||||
Subtotal: | 11,584 | 13,511 | - | 13,208 | 209 | 13,378 | 312 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | 267 | 267 | 63 | 79 | - | 75 | - | |||||||||||||||||||
Construction | 328 | 406 | 91 | 472 | 5 | 403 | 7 | |||||||||||||||||||
Commercial real estate | 5,695 | 5,695 | 541 | 3,972 | - | 4,150 | 30 | |||||||||||||||||||
Loans to individuals & overdrafts | 2 | 2 | - | 13 | - | 16 | - | |||||||||||||||||||
Multi-family residential | - | - | - | - | - | 13 | - | |||||||||||||||||||
1 to 4 family residential | 553 | 553 | 320 | 947 | 20 | 940 | 28 | |||||||||||||||||||
HELOC | 553 | 553 | 88 | 316 | 1 | 270 | 1 | |||||||||||||||||||
Subtotal: | 7,398 | 7,476 | 1,103 | 5,799 | 26 | 5,867 | 66 | |||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | 14,677 | 16,291 | 695 | 14,627 | 181 | 14,827 | 281 | |||||||||||||||||||
Consumer | 5 | 5 | - | 14 | - | 18 | - | |||||||||||||||||||
Residential | 4,300 | 4,691 | 408 | 4,366 | 54 | 4,400 | 97 | |||||||||||||||||||
Grand Total: | $ | 18,982 | $ | 20,987 | $ | 1,103 | $ | 19,007 | $ | 235 | $ | 19,245 | $ | 378 | ||||||||||||
Impaired loans at December 31, 2013 were approximately $19.0 million and were composed of $9.3 million in non-accrual loans and $9.7 million in loans still in accruing status. Recorded investment represents the current principal balance for the loan, fees, and accrued interest. Approximately, $7.4 million of the $19.0 million in impaired loans at December 31, 2013 had specific allowances provided while the remaining $11.6 million had no specific allowances recorded. Of the $11.6 million with no allowance recorded, $2.1 million of those loans have had partial charge-offs 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. | ||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||
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 six months ended 2014 and 2013: | ||||||||||||||||||||||||||
Three months ended June 30, 2014 | Six months ended June 30, 2014 | |||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | |||||||||||||||||||||
of loans | Investment | Investment | of loans | Investment | Investment | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | $ | - | - | $ | - | $ | - | ||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | - | - | - | 1 | 22 | 22 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | - | - | - | 1 | 22 | 22 | ||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | 1 | 46 | 42 | 1 | 46 | 42 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 1 | 947 | 942 | 1 | 947 | 942 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 2 | 993 | 984 | 2 | 993 | 984 | ||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | - | - | - | - | - | - | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | - | - | - | - | - | - | ||||||||||||||||||||
Total | 2 | $ | 993 | $ | 984 | 3 | $ | 1,015 | $ | 1,006 | ||||||||||||||||
Three months ended June 30, 2013 | Six months ended June 30, 2013 | |||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | |||||||||||||||||||||
of loans | Investment | Investment | of loans | Investment | Investment | |||||||||||||||||||||
(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 | 4 | 537 | 536 | 4 | 537 | 536 | ||||||||||||||||||||
Construction | 2 | 134 | 134 | 2 | 134 | 134 | ||||||||||||||||||||
Commercial real estate | 1 | 645 | 645 | 1 | 645 | 645 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 2 | 139 | 139 | 2 | 139 | 139 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | 9 | 1,455 | 1,454 | 9 | 1,455 | 1,454 | ||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | 2 | 2,454 | 2,454 | 2 | 2,454 | 2,454 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 1 | 76 | 74 | 2 | 135 | 132 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | 3 | 2,530 | 2,528 | 4 | 2,589 | 2,586 | ||||||||||||||||||||
Total | 12 | $ | 3,985 | $ | 3,982 | 13 | $ | 4,044 | $ | 4,040 | ||||||||||||||||
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. | ||||||||||||||||||||||||||
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 six month periods ended June 30, 2014 and 2013: | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||
Number | Recorded | Number | Recorded | |||||||||||||||||||||||
of loans | investment | of loans | investment | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | - | $ | - | ||||||||||||||||||||
Construction | - | - | - | - | ||||||||||||||||||||||
Commercial real estate | - | - | - | - | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 22 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | - | - | 1 | 22 | ||||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | ||||||||||||||||||||||
Construction | - | - | - | - | ||||||||||||||||||||||
Commercial real estate | 1 | 947 | 1 | 947 | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | - | - | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 1 | 947 | 1 | 947 | ||||||||||||||||||||||
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 | - | - | - | - | ||||||||||||||||||||||
Loans to individuals and overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 68 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | - | - | 1 | 68 | ||||||||||||||||||||||
Total | 1 | $ | 947 | 3 | $ | 1,037 | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | |||||||||||||||||||||||||
Number | Recorded | Number | Recorded | |||||||||||||||||||||||
of loans | investment | of loans | investment | |||||||||||||||||||||||
(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 | 163 | 2 | 163 | ||||||||||||||||||||||
Construction | 2 | 133 | 2 | 133 | ||||||||||||||||||||||
Commercial real estate | - | - | - | - | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | 1 | 47 | 1 | 47 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 5 | 343 | 5 | 343 | ||||||||||||||||||||||
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 | 163 | 1 | 163 | ||||||||||||||||||||||
Loans to individuals and overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 59 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 1 | 163 | 2 | 222 | ||||||||||||||||||||||
Total | 6 | $ | 506 | 7 | $ | 565 | ||||||||||||||||||||
At June 30, 2014, the Bank had forty-three loans with an aggregate balance of $8.1 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-four loans with a balance totaling $5.3 million were still accruing as of June 30, 2014. The remaining TDRs with balances totaling $2.8 million as of June 30, 2014 were in non-accrual status. | ||||||||||||||||||||||||||
At June 30, 2013, the Bank had forty-one loans with an aggregate balance of $9.8 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-four loans with a balance totaling $7.4 million were still accruing as of June 30, 2013. The remaining TDRs with balances totaling $2.4 million as of June 30, 2013 were in non-accrual status. | ||||||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||
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). | |||||||||||||||||||||||||
⋅ | 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: | |||||||||||||||||||||||||
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 | 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. | |||||||||||||||||||||||||
⋅ | 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: | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
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 | 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 | |||||||||||||||||||||||||
⋅ | 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 | 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. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
⋅ | Risk Grade 6 (Watch List or Special Mention) – Loans in this category can have the following characteristics: | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
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 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). | |||||||||||||||||||||||||
⋅ | Risk Grade 6 (Watch List or Special Mention) - Watch List or Special Mention loans include the following characteristics: | |||||||||||||||||||||||||
o | Loans within guideline tolerances or with exceptions of any kind that have not been mitigated by other economic or credit 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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
⋅ | 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. | |||||||||||||||||||||||||
The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of June 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Credit | ||||||||||||||||||||||||||
Exposure By | Commercial | Commercial | ||||||||||||||||||||||||
Internally | and | real | Multi-family | |||||||||||||||||||||||
Assigned Grade | industrial | Construction | estate | residential | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Superior | $ | 835 | $ | 35 | $ | - | $ | - | ||||||||||||||||||
Very good | - | - | - | - | ||||||||||||||||||||||
Good | 3,589 | 235 | 15,887 | 4,158 | ||||||||||||||||||||||
Acceptable | 16,874 | 1,831 | 59,526 | 7,922 | ||||||||||||||||||||||
Acceptable with care | 9,761 | 56,480 | 65,397 | 4,024 | ||||||||||||||||||||||
Special mention | 185 | 641 | 11,711 | 1,356 | ||||||||||||||||||||||
Substandard | 416 | 1,319 | 4,450 | 976 | ||||||||||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | ||||||||||||||||||||||
$ | 31,660 | $ | 60,541 | $ | 156,971 | $ | 18,436 | |||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure By | ||||||||||||||||||||||||||
Internally | 1-to-4 family | |||||||||||||||||||||||||
Assigned Grade | residential | HELOC | ||||||||||||||||||||||||
Pass | $ | 25,725 | $ | 29,290 | ||||||||||||||||||||||
Special mention | 1,301 | 103 | ||||||||||||||||||||||||
Substandard | 3,643 | 1,168 | ||||||||||||||||||||||||
$ | 30,669 | $ | 30,561 | |||||||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure Based | Loans to | |||||||||||||||||||||||||
On Payment | individuals & | |||||||||||||||||||||||||
Activity | overdrafts | |||||||||||||||||||||||||
Pass | $ | 5,611 | ||||||||||||||||||||||||
Non –pass | 48 | |||||||||||||||||||||||||
$ | 5,659 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Credit | ||||||||||||||||||||||||||
Exposure By | Commercial | Commercial | ||||||||||||||||||||||||
Internally | and | real | Multi-family | |||||||||||||||||||||||
Assigned Grade | industrial | Construction | estate | residential | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Superior | $ | 830 | $ | 40 | $ | - | $ | - | ||||||||||||||||||
Very good | - | - | - | - | ||||||||||||||||||||||
Good | 5,793 | 1,133 | 19,301 | 4,203 | ||||||||||||||||||||||
Acceptable | 11,572 | 2,838 | 63,447 | 6,812 | ||||||||||||||||||||||
Acceptable with care | 5,307 | 46,597 | 57,768 | 6,340 | ||||||||||||||||||||||
Special mention | 5,122 | 1,126 | 21,305 | 1,380 | ||||||||||||||||||||||
Substandard | 542 | 1,591 | 7,355 | 1,004 | ||||||||||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | ||||||||||||||||||||||
$ | 29,166 | $ | 53,325 | $ | 169,176 | $ | 19,739 | |||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure By | ||||||||||||||||||||||||||
Internally | 1-to-4 family | |||||||||||||||||||||||||
Assigned Grade | residential | HELOC | ||||||||||||||||||||||||
Pass | $ | 29,364 | $ | 30,116 | ||||||||||||||||||||||
Special mention | 1,632 | 245 | ||||||||||||||||||||||||
Substandard | 4,010 | 1,502 | ||||||||||||||||||||||||
$ | 35,006 | $ | 31,863 | |||||||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure Based | Loans to | |||||||||||||||||||||||||
On Payment | individuals & | |||||||||||||||||||||||||
Activity | overdrafts | |||||||||||||||||||||||||
Pass | $ | 7,629 | ||||||||||||||||||||||||
Non-pass | 1,146 | |||||||||||||||||||||||||
$ | 8,775 | |||||||||||||||||||||||||
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. | ||||||||||||||||||||||||||
As of March 31, 2014, the Company elected to change the allowance for loan loss model it uses to calculate historical loss rates and qualitative and environmental factors in its allowance for loan losses. The Company elected to change the model used for allowance for loan losses in order to utilize the loss migration, improve the objectivity of loss projections, and increase reliability of identifying losses inherent in the portfolio. The impact of the change to the model resulted in a $177,000 increase to our loan loss reserves as at the time of the change. 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 loss history based on the weighted average net charge off history for the most recent fourteen consecutive quarters, based on the risk-graded pool to which the loss was assigned. Historical loss rates are now calculated by using a loss migration analysis associating losses to the risk-graded pool to which they relate for each of the previous twelve quarters. Then, using a twelve quarter look back period, loss factors are calculated for each risk-graded pool. | ||||||||||||||||||||||||||
The new model continues to incorporate various internal and external qualitative and environmental factors as described in the Interagency Policy Statement on the Allowance for Loan and Lease Losses, dated December 2006. Input for these factors is determined on the basis of management observation, judgment, and experience. The factors utilized by the Company in the new model for all loan classes are as follows: | ||||||||||||||||||||||||||
Internal Factors | ||||||||||||||||||||||||||
⋅ | Concentrations – Measures the increased risk derived from concentration of credit exposure in particular industry segments within the portfolio. | |||||||||||||||||||||||||
⋅ | Policy exceptions – Measures the risk derived from granting terms outside of underwriting guidelines. | |||||||||||||||||||||||||
⋅ | Compliance exceptions– Measures the risk derived from granting terms outside of regulatory guidelines. | |||||||||||||||||||||||||
⋅ | Document exceptions– Measures the risk exposure resulting from the inability to collect due to improperly executed documents and collateral imperfections. | |||||||||||||||||||||||||
⋅ | Financial information monitoring – Measures the risk associated with not having current borrower financial information. | |||||||||||||||||||||||||
⋅ | Nonaccrual – Reflects increased risk of loans with characteristics that merit nonaccrual status. | |||||||||||||||||||||||||
⋅ | Delinquency – Reflects the increased risk deriving from higher delinquency rates. | |||||||||||||||||||||||||
⋅ | Personnel turnover – Reflects staff competence in various types of lending. | |||||||||||||||||||||||||
⋅ | Portfolio growth – Measures the impact of growth and potential risk derived from new loan production. | |||||||||||||||||||||||||
External Factors | ||||||||||||||||||||||||||
⋅ | GDP growth rate – Impact of general economic factors that affect the portfolio. | |||||||||||||||||||||||||
⋅ | North Carolina unemployment rate – Impact of local economic factors that affect the portfolio. | |||||||||||||||||||||||||
⋅ | Peer group delinquency rate – Measures risk associated with the credit requirements of competitors. | |||||||||||||||||||||||||
⋅ | Prime rate change – Measures the effect on the portfolio in the event of changes in the prime lending rate. | |||||||||||||||||||||||||
Each pool is assigned an adjustment to the potential loss percentage by assessing its characteristics against each of the factors listed above. | ||||||||||||||||||||||||||
Reserves are generally divided into three allocation segments: | ||||||||||||||||||||||||||
1 | Individual reserves. These 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. 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. | |||||||||||||||||||||||||
2 | Formula reserves. Formula reserves are held against loans evaluated collectively. Loans are grouped by type or by risk grade, or some combination of the two. Loss estimates are based on historical loss rates for each respective loan group. Formula reserves represent the Company’s best estimate of losses that may be inherent, or embedded, within the group of loans, even if it is not apparent at this time which loans within any group or pool represent those embedded losses. | |||||||||||||||||||||||||
3 | Qualitative and external reserves. If individual reserves represent estimated losses tied to any specific loan, and formula reserves represent estimated losses tied to a pool of loans but not yet to any specific loan then these reserves represent an estimate of losses that are expected, but are not yet tied to any loan or group of loans. | |||||||||||||||||||||||||
All information related to the calculation of the three segments, including data analysis, assumptions, calculations, etc. are documented. Assigning specific individual reserve amounts, formula reserve factors, or unallocated amounts based on unsupported assumptions or conclusions is not permitted. | ||||||||||||||||||||||||||
The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month and six month periods ended June 30, 2014 and June 30, 2013, respectively: | ||||||||||||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | Family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 3/31/2014 | $ | 513 | $ | 889 | $ | 3,283 | $ | 585 | $ | 1,293 | $ | 171 | $ | 291 | $ | 7,025 | ||||||||||
Provision (recovery) for loan losses | -4 | 110 | -384 | -9 | -106 | -9 | -25 | -427 | ||||||||||||||||||
Loans charged-off | - | - | - | - | -231 | -13 | - | -244 | ||||||||||||||||||
Recoveries | 14 | 3 | 4 | 12 | 53 | 7 | - | 93 | ||||||||||||||||||
Balance, end of period 6/30/2014 | $ | 523 | $ | 1,002 | $ | 2,903 | $ | 588 | $ | 1,009 | $ | 156 | $ | 266 | $ | 6,447 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 66 | $ | 81 | $ | 426 | $ | 43 | $ | 140 | $ | 20 | $ | - | $ | 776 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 457 | $ | 921 | $ | 2,477 | $ | 545 | $ | 869 | $ | 136 | $ | 266 | $ | 5,671 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance | $ | 31,660 | $ | 60,541 | $ | 156,971 | $ | 30,669 | $ | 30,561 | $ | 5,659 | $ | 18,436 | $ | 334,497 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 388 | $ | 1,802 | $ | 5,986 | $ | 2,948 | $ | 1,059 | $ | 22 | $ | 2,331 | $ | 14,536 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 31,272 | $ | 58,739 | $ | 150,985 | $ | 27,721 | $ | 29,502 | $ | 5,637 | $ | 16,105 | $ | 319,961 | ||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
And | Commercial | family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 1/1/2014 | $ | 245 | $ | 565 | $ | 4,599 | $ | 826 | $ | 680 | $ | 65 | $ | 74 | $ | 7,054 | ||||||||||
Provision (recovery) for loan losses | 318 | 376 | -1,724 | -274 | 539 | 97 | 192 | -476 | ||||||||||||||||||
Loans charged-off | -63 | - | - | -1 | -271 | -19 | - | -354 | ||||||||||||||||||
Recoveries | 23 | 61 | 28 | 37 | 61 | 13 | - | 223 | ||||||||||||||||||
Balance, end of period 6/30/2014 | $ | 523 | $ | 1,002 | $ | 2,903 | $ | 588 | $ | 1,009 | $ | 156 | $ | 266 | $ | 6,447 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 66 | $ | 81 | $ | 426 | $ | 43 | $ | 140 | $ | 20 | $ | - | $ | 776 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 457 | $ | 921 | $ | 2,477 | $ | 545 | $ | 869 | $ | 136 | $ | 266 | $ | 5,671 | ||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 3/31/2013 | $ | 339 | $ | 626 | $ | 5,110 | $ | 920 | $ | 635 | $ | 73 | $ | 72 | $ | 7,775 | ||||||||||
Provision (recovery) for loan losses | 42 | -15 | -458 | 198 | -68 | -60 | -14 | -375 | ||||||||||||||||||
Loans charged-off | -83 | - | -137 | -81 | -29 | -17 | - | -347 | ||||||||||||||||||
Recoveries | -48 | -3 | 70 | 8 | 72 | 66 | - | 165 | ||||||||||||||||||
Balance, end of period 6/30/2013 | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | ||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 79 | $ | 223 | $ | 322 | $ | 197 | $ | 5 | $ | - | $ | 826 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 250 | $ | 529 | $ | 4,362 | $ | 723 | $ | 413 | $ | 57 | $ | 58 | $ | 6,392 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance | $ | 31,710 | $ | 51,758 | $ | 182,233 | $ | 35,464 | $ | 32,579 | $ | 7,657 | $ | 14,760 | $ | 356,161 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 660 | $ | 2,388 | $ | 9,454 | $ | 4,091 | $ | 1,030 | $ | 16 | $ | 2,407 | $ | 20,046 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 31,050 | $ | 49,370 | $ | 172,779 | $ | 31,373 | $ | 31,549 | $ | 7,641 | $ | 12,353 | $ | 336,115 | ||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | family | individuals & | family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 1/1/2013 | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | $ | 627 | $ | 72 | $ | 106 | $ | 7,897 | ||||||||||
Provision (recovery) for loan losses | 74 | -190 | -253 | 75 | -54 | -79 | -48 | -475 | ||||||||||||||||||
Loans charged-off | -129 | - | -180 | -121 | -39 | -44 | - | -513 | ||||||||||||||||||
Recoveries | 27 | - | 72 | 21 | 76 | 113 | - | 309 | ||||||||||||||||||
Balance, end of period 6/30/2013 | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | ||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 79 | $ | 223 | $ | 322 | $ | 197 | $ | 5 | $ | - | $ | 826 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 250 | $ | 529 | $ | 4,362 | $ | 723 | $ | 413 | $ | 57 | $ | 58 | $ | 6,392 | ||||||||||
During the three months ended June 30, 2013 the Company recorded net charge-offs of $182,000. Total loans outstanding during the second quarter of 2013 decreased, resulting in a $375,000 recovery in the provision for loan losses. | ||||||||||||||||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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 months and six months ended June 30, 2014 and 2013. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 132 | $ | 922 | $ | -108 | $ | 1,078 | ||||||
Unrealized gain (loss) on investment securities available for sale | 482 | -1,171 | 718 | -1,480 | ||||||||||
Tax effect | -180 | 398 | -267 | 503 | ||||||||||
Other comprehensive gain (loss) before reclassification | 302 | -773 | 451 | -977 | ||||||||||
Amounts reclassified from accumulated comprehensive income: | ||||||||||||||
Realized loss on investment securities included in net income | 65 | 63 | 211 | 136 | ||||||||||
Tax effect | -24 | -21 | -79 | -46 | ||||||||||
Total reclassifications net of tax | 41 | 42 | 132 | 90 | ||||||||||
Net current period other comprehensive income (loss) | 343 | -731 | 583 | -887 | ||||||||||
Ending balance | $ | 475 | $ | 191 | $ | 475 | $ | 191 | ||||||
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. The balance of accumulated other comprehensive income, net of tax, at June 30, 2014, is comprised of $302 of unrealized gains on securities available for sale. There was a reclassification of other comprehensive income, net of tax of $41, as of June 30, 2014, related to realized losses on available for sale securities during the period. | ||||||||||||||
MERGER_WITH_SELECT_BANCORP_INC
MERGER WITH SELECT BANCORP, INC. | 6 Months Ended |
Jun. 30, 2014 | |
MERGER WITH SELECT BANCORP [Abstract] | ' |
MERGER WITH SELECT BANCORP [Text Block] | ' |
NOTE I – MERGER WITH SELECT BANCORP, INC. | |
On September 30, 2013, the Company signed a merger agreement with Select Bancorp, Inc. (Legacy Select), a bank holding company headquartered in Greenville, North Carolina, whose wholly-owned subsidiary, Select Bank & Trust Company, was a state-chartered commercial bank with approximately $265.3 million in assets. The merger, which closed July 25, 2014, expanded the Bank’s North Carolina presence with six branches located in Greenville (two), Elizabeth City, Washington, Gibsonville and Burlington. | |
Under the terms of the merger agreement, former shareholders of Legacy Select common stock received 1.8264 shares of the Company’s common stock for each share of Legacy Select common stock. The Company issued approximately 4,416,668 shares of common stock in the merger. | |
In addition, each share of Legacy Select’s issued and outstanding preferred stock will be exchanged for one newly issued share of the Company’s preferred stock having terms substantially identical to the Legacy Select preferred stock. All of the issued and outstanding shares of Legacy Select’s preferred stock are held by the Secretary of the United States Treasury and were issued in connection with Legacy Select’s participation in the Small Business Lending Fund. | |
On July 25, 2014, New Century Bancorp acquired Select Bancorp, Inc., and its wholly-owned subsidiary, Select Bank & Trust Company and assumed the name, Select Bancorp, Inc. on that date. The financial data reported here is solely the financial information of the entity formerly known as New Century Bancorp. Commencing in the third quarter of 2014, consolidated financial information of the former New Century and Select entities will be reported upon the July 25, 2014 closing of the merger. | |
PER_SHARE_RESULTS_Tables
PER SHARE RESULTS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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 June 30, 2014 and 2013 there were 91,183 and 308,909 anti-dilutive options outstanding, respectively. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Weighted average shares used for basic net income per share | 6,923,640 | 6,921,352 | 6,922,651 | 6,916,233 | ||||||||||
Effect of dilutive stock options | 4,788 | 1,590 | 3,667 | 1,238 | ||||||||||
Weighted average shares used for diluted net income per share | 6,928,428 | 6,922,942 | 6,926,318 | 6,917,471 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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 June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
Investment securities | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
available for sale | Active Markets | Other | Unobservable | |||||||||||
June 30, 2014 | for Identical | Observable | Inputs (Level 3) | |||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
U.S. government agencies – GSE's | $ | 27,159 | $ | - | $ | 27,159 | $ | - | ||||||
Mortgage-backed securities - GSE’s | 45,199 | - | 45,199 | - | ||||||||||
Municipal bonds | 7,546 | - | 7,546 | - | ||||||||||
Total | $ | 79,904 | $ | - | $ | 79,904 | $ | - | ||||||
Investment securities | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
available for sale | Active Markets | Other | Unobservable | |||||||||||
December 31, 2013 | for Identical | Observable | Inputs (Level 3) | |||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
U.S. government agencies – GSE's | $ | 34,665 | $ | - | $ | 34,665 | $ | - | ||||||
Mortgage-backed securities - GSE’s | 41,065 | - | 41,065 | - | ||||||||||
Municipal bonds | 8,106 | - | 8,106 | - | ||||||||||
Total | $ | 83,836 | $ | - | $ | 83,836 | $ | - | ||||||
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 June 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
Asset Category | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
June 30, 2014 | Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs (Level 3) | ||||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
Impaired loans | $ | 4,947 | $ | - | $ | - | $ | 4,947 | ||||||
Foreclosed real estate | 1,169 | - | - | 1,169 | ||||||||||
Total | $ | 2,511 | $ | - | $ | - | $ | 2,511 | ||||||
Asset Category | Fair value | Quoted Prices in | Significant | Significant | ||||||||||
December 31, 2013 | Active Markets | Other | Unobservable | |||||||||||
for Identical | Observable | Inputs (Level 3) | ||||||||||||
Assets (Level 1) | Inputs (Level 2) | |||||||||||||
Impaired loans | $ | 8,477 | $ | - | $ | - | $ | 8,477 | ||||||
Foreclosed real estate | 2,008 | - | - | 2,008 | ||||||||||
Total | $ | 10,485 | $ | - | $ | - | $ | 10,485 | ||||||
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 June 30, 2014 and December 31, 2013: | |||||||||||||||||
June 30, 2014 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 23,678 | $ | 23,678 | $ | 23,678 | $ | - | $ | - | |||||||
Interest-earning deposits in other banks | 46,740 | 46,740 | 46,740 | - | - | ||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | - | - | ||||||||||||
Investment securities available for sale | 79,904 | 79,904 | - | 79,904 | - | ||||||||||||
Loans, net | 327,421 | 335,098 | - | - | 335,098 | ||||||||||||
Accrued interest receivable | 1,466 | 1,466 | - | - | 1,466 | ||||||||||||
Stock in FHLB | 562 | 562 | - | - | 562 | ||||||||||||
Other non-marketable securities | 1,041 | 1,041 | - | - | 1,041 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 428,734 | $ | 431,907 | $ | - | $ | 431,907 | $ | - | |||||||
Short term debt | 7,179 | 7,179 | - | 7,179 | - | ||||||||||||
Long term debt | 12,372 | 7,517 | - | 7,517 | - | ||||||||||||
Accrued interest payable | 207 | 207 | - | - | 207 | ||||||||||||
December 31, 2013 | |||||||||||||||||
Carrying | Estimated | ||||||||||||||||
Amount | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
(In thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and due from banks | $ | 20,151 | $ | 20,151 | $ | 20,151 | $ | - | $ | - | |||||||
Interest-earning deposits in other banks | 49,690 | 49,690 | 49,690 | - | - | ||||||||||||
Federal funds sold | 3,028 | 3,028 | 3,028 | - | - | ||||||||||||
Investment securities available for sale | 83,836 | 83,836 | - | 83,836 | - | ||||||||||||
Loans, net | 339,446 | 353,439 | - | - | 353,439 | ||||||||||||
Accrued interest receivable | 1,650 | 1,650 | - | - | 1,650 | ||||||||||||
Stock in the FHLB | 796 | 796 | - | - | 796 | ||||||||||||
Other non-marketable securities | 1,055 | 1,055 | - | - | 1,055 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | $ | 448,458 | $ | 452,529 | $ | - | $ | 452,529 | $ | - | |||||||
Short-term debt | 6,305 | 6,305 | - | 6,305 | - | ||||||||||||
Long-term debt | 12,372 | 7,517 | - | 7,517 | - | ||||||||||||
Accrued interest payable | 225 | 225 | - | - | 225 | ||||||||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 6 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | |||||||||||||||||||
The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | ||||||||||||||||||||
Within 1 year | $ | 9,770 | $ | 21 | $ | - | $ | 9,791 | ||||||||||||
After 1 year but within 5 years | 2,437 | 4 | -7 | 2,434 | ||||||||||||||||
After 5 years but within 10 years | 11,821 | 9 | -308 | 11,522 | ||||||||||||||||
After 10 years | 3,466 | - | -54 | 3,412 | ||||||||||||||||
Mortgage-backed securities-GSE’s | ||||||||||||||||||||
Within 1 year | 46 | 3 | - | 49 | ||||||||||||||||
After 1 year but within 5 years | 23,995 | 901 | - | 24,896 | ||||||||||||||||
After 5 years but within 10 years | 20,326 | 75 | -147 | 20,254 | ||||||||||||||||
Municipal bonds | ||||||||||||||||||||
Within 1 year | 577 | 10 | - | 587 | ||||||||||||||||
After 1 year but within 5 years | 2,529 | 169 | - | 2,698 | ||||||||||||||||
After 5 years but within 10 years | 3,369 | 83 | -5 | 3,447 | ||||||||||||||||
After 10 years | 811 | 9 | -6 | 814 | ||||||||||||||||
$ | 79,147 | $ | 1,284 | $ | -527 | $ | 79,904 | |||||||||||||
As of June 30, 2014, accumulated other comprehensive income included net unrealized gains totaling $757,000. Deferred tax liabilities resulting from these unrealized gains totaled $346,000. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | unrealized | unrealized | Fair | |||||||||||||||||
cost | gains | losses | value | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | ||||||||||||||||||||
Within 1 year | $ | 10,520 | $ | 25 | $ | - | $ | 10,545 | ||||||||||||
After 1 year but within 5 years | 8,820 | 17 | -10 | 8,827 | ||||||||||||||||
After 5 years but within 10 years | 7,376 | - | -549 | 6,827 | ||||||||||||||||
After 10 years | 8,524 | 11 | -69 | 8,466 | ||||||||||||||||
Mortgage-backed securities-GSE’s | ||||||||||||||||||||
Within 1 year | 133 | 7 | - | 140 | ||||||||||||||||
After 1 year but within 5 years | 35,352 | 659 | -155 | 35,856 | ||||||||||||||||
After 5 years but within 10 years | 5,316 | - | -247 | 5,069 | ||||||||||||||||
Municipal bonds | ||||||||||||||||||||
Within 1 year | 100 | 1 | - | 101 | ||||||||||||||||
After 1 year but within 5 years | 3,036 | 196 | - | 3,232 | ||||||||||||||||
After 5 years but within 10 years | 3,306 | 30 | -112 | 3,224 | ||||||||||||||||
After 10 years | 1,526 | 54 | -31 | 1,549 | ||||||||||||||||
$ | 84,009 | $ | 1,000 | $ | -1,173 | $ | 83,836 | |||||||||||||
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 June 30, 2014 and December 31, 2013. | ||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies-GSE’s | $ | 9,162 | $ | -101 | $ | 5,732 | $ | -268 | $ | 14,894 | $ | -369 | ||||||||
Mortgage-backed securities-GSE’s | 8,761 | -48 | 4,905 | -99 | 13,666 | -147 | ||||||||||||||
Municipal bonds | 1,752 | -3 | 522 | -8 | 2,274 | -11 | ||||||||||||||
Total temporarily impaired securities | $ | 19,675 | $ | -152 | $ | 11,159 | $ | -375 | $ | 30,834 | $ | -527 | ||||||||
All unrealized losses are attributable to the general trend of interest rates. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
value | losses | value | losses | value | losses | |||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Securities available for sale: | ||||||||||||||||||||
U.S. government agencies – GSE’s | $ | 11,908 | $ | -239 | $ | 3,611 | $ | -389 | $ | 15,519 | $ | -628 | ||||||||
Mortgage-backed securities- GSE’s | 21,762 | -312 | 1,777 | -90 | 23,539 | -402 | ||||||||||||||
Municipal bonds | 2,719 | -143 | - | - | 2,719 | -143 | ||||||||||||||
Total temporarily impaired securities | $ | 36,389 | $ | -694 | $ | 5,388 | $ | -479 | $ | 41,777 | $ | -1,173 | ||||||||
LOANS_Tables
LOANS (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
June 30, | December 31, | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Percent | Percent | |||||||||||||||||||||||||
Amount | of total | Amount | of total | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||
1 to 4 family residential | $ | 30,669 | 9.19 | % | $ | 35,006 | 10.1 | % | ||||||||||||||||||
Commercial real estate | 156,971 | 47.02 | % | 169,176 | 48.82 | % | ||||||||||||||||||||
Multi-family residential | 18,436 | 5.52 | % | 19,739 | 5.7 | % | ||||||||||||||||||||
Construction | 60,541 | 18.13 | % | 53,325 | 15.39 | % | ||||||||||||||||||||
Home equity lines of credit (“HELOC”) | 30,561 | 9.15 | % | 31,863 | 9.2 | % | ||||||||||||||||||||
Total real estate loans | 297,178 | 89.01 | % | 309,109 | 89.21 | % | ||||||||||||||||||||
Other loans: | ||||||||||||||||||||||||||
Commercial and industrial | 31,660 | 9.48 | % | 29,166 | 8.42 | % | ||||||||||||||||||||
Loans to individuals | 5,504 | 1.65 | % | 8,584 | 2.48 | % | ||||||||||||||||||||
Overdrafts | 155 | 0.05 | % | 191 | 0.05 | % | ||||||||||||||||||||
Total other loans | 37,319 | 11.18 | % | 37,941 | 10.95 | % | ||||||||||||||||||||
Gross loans | 334,497 | 347,050 | ||||||||||||||||||||||||
Less deferred loan origination fees, net | -629 | -0.19 | % | -550 | -0.16 | % | ||||||||||||||||||||
Total loans | 333,868 | 100 | % | 346,500 | 100 | % | ||||||||||||||||||||
Allowance for loan losses | -6,447 | -7,054 | ||||||||||||||||||||||||
Total loans, net | $ | 327,421 | $ | 339,446 | ||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
30+ | Non- | Total | ||||||||||||||||||||||||
Days | Accrual | Past | Total | |||||||||||||||||||||||
Past Due | Loans | Due | Current | Loans | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 173 | $ | 265 | $ | 438 | $ | 31,222 | $ | 31,660 | ||||||||||||||||
Construction | 18 | 889 | 907 | 59,634 | 60,541 | |||||||||||||||||||||
Multi-family residential | - | 955 | 955 | 17,481 | 18,436 | |||||||||||||||||||||
Commercial real estate | 2 | 3,208 | 3,210 | 153,761 | 156,971 | |||||||||||||||||||||
Loans to individuals & overdrafts | 12 | 22 | 34 | 5,625 | 5,659 | |||||||||||||||||||||
1-to-4 family residential | 286 | 1,282 | 1,568 | 29,101 | 30,669 | |||||||||||||||||||||
HELOC | 22 | 986 | 1,008 | 29,553 | 30,561 | |||||||||||||||||||||
Deferred loan (fees) cost, net | -629 | |||||||||||||||||||||||||
$ | 513 | $ | 7,607 | $ | 8,120 | $ | 326,377 | $ | 333,868 | |||||||||||||||||
There were no loans that were more than 90 days past due and still accruing interest at June 30, 2014. | ||||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
30+ | Non- | Total | ||||||||||||||||||||||||
Days | Accrual | Past | Total | |||||||||||||||||||||||
Past Due | Loans | Due | Current | Loans | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Commercial and industrial | $ | 70 | $ | 330 | $ | 400 | $ | 28,766 | $ | 29,166 | ||||||||||||||||
Construction | 36 | 1,206 | 1,242 | 52,083 | 53,325 | |||||||||||||||||||||
Multi-family residential | - | 1,004 | 1,004 | 18,735 | 19,739 | |||||||||||||||||||||
Commercial real estate | 446 | 4,441 | 4,887 | 164,289 | 169,176 | |||||||||||||||||||||
Loans to individuals & overdrafts | 4 | 5 | 9 | 8,766 | 8,775 | |||||||||||||||||||||
1 to 4 family residential | 318 | 1,092 | 1,410 | 33,596 | 35,006 | |||||||||||||||||||||
HELOC | - | 1,241 | 1,241 | 30,622 | 31,863 | |||||||||||||||||||||
Deferred loan (fees) cost, net | -550 | |||||||||||||||||||||||||
$ | 874 | $ | 9,319 | $ | 10,193 | $ | 336,857 | $ | 346,500 | |||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
The following tables present information on loans that were considered to be impaired as of June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
As of June 30, 2014 | June 30, 2014 | June 30, 2014 | ||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | ||||||||||||||||||||||||
Unpaid | Average | Recognized on | Average | Recognized on | ||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Impaired | Recorded | Impaired | ||||||||||||||||||||
Investment | Balance | Allowance | Investment | Loans | Investment | Loans | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 122 | $ | 122 | $ | - | $ | 124 | $ | 2 | $ | 159 | $ | 5 | ||||||||||||
Construction | 1,634 | 1,848 | - | 1,706 | 20 | 1,846 | 43 | |||||||||||||||||||
Commercial real estate | 3,271 | 4,441 | - | 3,363 | 37 | 3,639 | 107 | |||||||||||||||||||
Loans to individuals & overdrafts | 2 | 5 | - | 2 | - | 2 | ||||||||||||||||||||
Multi-family residential | 2,331 | 2,605 | - | 2,335 | 36 | 2,358 | 75 | |||||||||||||||||||
1 to 4 family residential | 2,379 | 2,804 | - | 2,421 | 25 | 2,967 | 64 | |||||||||||||||||||
HELOC | 659 | 774 | - | 707 | 12 | 713 | 21 | |||||||||||||||||||
Subtotal: | 10,398 | 12,599 | - | 10,658 | 132 | 11,684 | 315 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | 266 | 266 | 66 | 265 | - | 266 | - | |||||||||||||||||||
Construction | 168 | 168 | 81 | 168 | - | 248 | - | |||||||||||||||||||
Commercial real estate | 2,715 | 3,434 | 426 | 2,693 | 31 | 4,205 | 42 | |||||||||||||||||||
Loans to individuals & overdrafts | 20 | 20 | 20 | 10 | - | 11 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | - | |||||||||||||||||||
1 to 4 family residential | 569 | 574 | 43 | 496 | 13 | 561 | 20 | |||||||||||||||||||
HELOC | 400 | 643 | 140 | 473 | 4 | 477 | 9 | |||||||||||||||||||
Subtotal: | 4,138 | 5,105 | 776 | 4,105 | 48 | 5,768 | 71 | |||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | 10,507 | 12,884 | 573 | 10,654 | 126 | 12,721 | 272 | |||||||||||||||||||
Consumer | 22 | 25 | 20 | 12 | - | 13 | - | |||||||||||||||||||
Residential | 4,007 | 4,795 | 183 | 4,097 | 54 | 4,718 | 114 | |||||||||||||||||||
Grand Total: | $ | 14,536 | $ | 17,704 | $ | 776 | $ | 14,763 | $ | 180 | $ | 17,452 | $ | 386 | ||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
As of December 31, 2013 | June 30, 2013 | June 30, 2013 | ||||||||||||||||||||||||
Contractual | Interest Income | Interest Income | ||||||||||||||||||||||||
Unpaid | Related | Average | Recognized on | Average | Recognized on | |||||||||||||||||||||
Recorded | Principal | Allowance | Recorded | Impaired | Recorded | Impaired | ||||||||||||||||||||
Investment | Balance | for Loan Losses | Investment | Loans | Investment | Loans | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | $ | 196 | $ | 257 | $ | - | $ | 500 | $ | 17 | $ | 515 | $ | 21 | ||||||||||||
Construction | 2,059 | 2,311 | - | 1,881 | 2 | 2,046 | 4 | |||||||||||||||||||
Commercial real estate | 3,748 | 4,971 | - | 5,812 | 124 | 5,870 | 147 | |||||||||||||||||||
Loans to individuals & overdrafts | 3 | 3 | - | 1 | - | 2 | - | |||||||||||||||||||
Multi-family residential | 2,384 | 2,384 | - | 1,911 | 33 | 1,755 | 72 | |||||||||||||||||||
1 to 4 family residential | 2,427 | 2,731 | - | 396 | 2 | 477 | 4 | |||||||||||||||||||
HELOC | 767 | 854 | - | 2,707 | 31 | 2,713 | 64 | |||||||||||||||||||
Subtotal: | 11,584 | 13,511 | - | 13,208 | 209 | 13,378 | 312 | |||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial and industrial | 267 | 267 | 63 | 79 | - | 75 | - | |||||||||||||||||||
Construction | 328 | 406 | 91 | 472 | 5 | 403 | 7 | |||||||||||||||||||
Commercial real estate | 5,695 | 5,695 | 541 | 3,972 | - | 4,150 | 30 | |||||||||||||||||||
Loans to individuals & overdrafts | 2 | 2 | - | 13 | - | 16 | - | |||||||||||||||||||
Multi-family residential | - | - | - | - | - | 13 | - | |||||||||||||||||||
1 to 4 family residential | 553 | 553 | 320 | 947 | 20 | 940 | 28 | |||||||||||||||||||
HELOC | 553 | 553 | 88 | 316 | 1 | 270 | 1 | |||||||||||||||||||
Subtotal: | 7,398 | 7,476 | 1,103 | 5,799 | 26 | 5,867 | 66 | |||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | 14,677 | 16,291 | 695 | 14,627 | 181 | 14,827 | 281 | |||||||||||||||||||
Consumer | 5 | 5 | - | 14 | - | 18 | - | |||||||||||||||||||
Residential | 4,300 | 4,691 | 408 | 4,366 | 54 | 4,400 | 97 | |||||||||||||||||||
Grand Total: | $ | 18,982 | $ | 20,987 | $ | 1,103 | $ | 19,007 | $ | 235 | $ | 19,245 | $ | 378 | ||||||||||||
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 six months ended 2014 and 2013: | ||||||||||||||||||||||||||
Three months ended June 30, 2014 | Six months ended June 30, 2014 | |||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | |||||||||||||||||||||
of loans | Investment | Investment | of loans | Investment | Investment | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | $ | - | - | $ | - | $ | - | ||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | - | - | - | 1 | 22 | 22 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | - | - | - | 1 | 22 | 22 | ||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | 1 | 46 | 42 | 1 | 46 | 42 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 1 | 947 | 942 | 1 | 947 | 942 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 2 | 993 | 984 | 2 | 993 | 984 | ||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | - | - | - | - | - | - | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | - | - | - | - | - | - | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | - | - | - | - | - | - | ||||||||||||||||||||
Total | 2 | $ | 993 | $ | 984 | 3 | $ | 1,015 | $ | 1,006 | ||||||||||||||||
Three months ended June 30, 2013 | Six months ended June 30, 2013 | |||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | Outstanding | Outstanding | |||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | |||||||||||||||||||||
of loans | Investment | Investment | of loans | Investment | Investment | |||||||||||||||||||||
(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 | 4 | 537 | 536 | 4 | 537 | 536 | ||||||||||||||||||||
Construction | 2 | 134 | 134 | 2 | 134 | 134 | ||||||||||||||||||||
Commercial real estate | 1 | 645 | 645 | 1 | 645 | 645 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 2 | 139 | 139 | 2 | 139 | 139 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | 9 | 1,455 | 1,454 | 9 | 1,455 | 1,454 | ||||||||||||||||||||
Other: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | - | - | ||||||||||||||||||||
Construction | - | - | - | - | - | - | ||||||||||||||||||||
Commercial real estate | 2 | 2,454 | 2,454 | 2 | 2,454 | 2,454 | ||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | - | - | ||||||||||||||||||||
1-to-4 family residential | 1 | 76 | 74 | 2 | 135 | 132 | ||||||||||||||||||||
Multi-family residential | - | - | - | - | - | - | ||||||||||||||||||||
HELOC | - | - | - | - | - | - | ||||||||||||||||||||
Total | 3 | 2,530 | 2,528 | 4 | 2,589 | 2,586 | ||||||||||||||||||||
Total | 12 | $ | 3,985 | $ | 3,982 | 13 | $ | 4,044 | $ | 4,040 | ||||||||||||||||
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 six month periods ended June 30, 2014 and 2013: | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | |||||||||||||||||||||||||
Number | Recorded | Number | Recorded | |||||||||||||||||||||||
of loans | investment | of loans | investment | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Below market interest rate: | ||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | - | $ | - | ||||||||||||||||||||
Construction | - | - | - | - | ||||||||||||||||||||||
Commercial real estate | - | - | - | - | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 22 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | - | - | 1 | 22 | ||||||||||||||||||||||
Extended payment terms: | ||||||||||||||||||||||||||
Commercial and industrial | - | - | - | - | ||||||||||||||||||||||
Construction | - | - | - | - | ||||||||||||||||||||||
Commercial real estate | 1 | 947 | 1 | 947 | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | - | - | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 1 | 947 | 1 | 947 | ||||||||||||||||||||||
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 | - | - | - | - | ||||||||||||||||||||||
Loans to individuals and overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 68 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | - | - | 1 | 68 | ||||||||||||||||||||||
Total | 1 | $ | 947 | 3 | $ | 1,037 | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2013 | June 30, 2013 | |||||||||||||||||||||||||
Number | Recorded | Number | Recorded | |||||||||||||||||||||||
of loans | investment | of loans | investment | |||||||||||||||||||||||
(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 | 163 | 2 | 163 | ||||||||||||||||||||||
Construction | 2 | 133 | 2 | 133 | ||||||||||||||||||||||
Commercial real estate | - | - | - | - | ||||||||||||||||||||||
Loans to individuals & overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | 1 | 47 | 1 | 47 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 5 | 343 | 5 | 343 | ||||||||||||||||||||||
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 | 163 | 1 | 163 | ||||||||||||||||||||||
Loans to individuals and overdrafts | - | - | - | - | ||||||||||||||||||||||
1-to-4 family residential | - | - | 1 | 59 | ||||||||||||||||||||||
Multi-family residential | - | - | - | - | ||||||||||||||||||||||
HELOC | - | - | - | - | ||||||||||||||||||||||
Total | 1 | 163 | 2 | 222 | ||||||||||||||||||||||
Total | 6 | $ | 506 | 7 | $ | 565 | ||||||||||||||||||||
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 June 30, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||
June 30, 2014 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Credit | ||||||||||||||||||||||||||
Exposure By | Commercial | Commercial | ||||||||||||||||||||||||
Internally | and | real | Multi-family | |||||||||||||||||||||||
Assigned Grade | industrial | Construction | estate | residential | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Superior | $ | 835 | $ | 35 | $ | - | $ | - | ||||||||||||||||||
Very good | - | - | - | - | ||||||||||||||||||||||
Good | 3,589 | 235 | 15,887 | 4,158 | ||||||||||||||||||||||
Acceptable | 16,874 | 1,831 | 59,526 | 7,922 | ||||||||||||||||||||||
Acceptable with care | 9,761 | 56,480 | 65,397 | 4,024 | ||||||||||||||||||||||
Special mention | 185 | 641 | 11,711 | 1,356 | ||||||||||||||||||||||
Substandard | 416 | 1,319 | 4,450 | 976 | ||||||||||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | ||||||||||||||||||||||
$ | 31,660 | $ | 60,541 | $ | 156,971 | $ | 18,436 | |||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure By | ||||||||||||||||||||||||||
Internally | 1-to-4 family | |||||||||||||||||||||||||
Assigned Grade | residential | HELOC | ||||||||||||||||||||||||
Pass | $ | 25,725 | $ | 29,290 | ||||||||||||||||||||||
Special mention | 1,301 | 103 | ||||||||||||||||||||||||
Substandard | 3,643 | 1,168 | ||||||||||||||||||||||||
$ | 30,669 | $ | 30,561 | |||||||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure Based | Loans to | |||||||||||||||||||||||||
On Payment | individuals & | |||||||||||||||||||||||||
Activity | overdrafts | |||||||||||||||||||||||||
Pass | $ | 5,611 | ||||||||||||||||||||||||
Non –pass | 48 | |||||||||||||||||||||||||
$ | 5,659 | |||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||
Credit | ||||||||||||||||||||||||||
Exposure By | Commercial | Commercial | ||||||||||||||||||||||||
Internally | and | real | Multi-family | |||||||||||||||||||||||
Assigned Grade | industrial | Construction | estate | residential | ||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Superior | $ | 830 | $ | 40 | $ | - | $ | - | ||||||||||||||||||
Very good | - | - | - | - | ||||||||||||||||||||||
Good | 5,793 | 1,133 | 19,301 | 4,203 | ||||||||||||||||||||||
Acceptable | 11,572 | 2,838 | 63,447 | 6,812 | ||||||||||||||||||||||
Acceptable with care | 5,307 | 46,597 | 57,768 | 6,340 | ||||||||||||||||||||||
Special mention | 5,122 | 1,126 | 21,305 | 1,380 | ||||||||||||||||||||||
Substandard | 542 | 1,591 | 7,355 | 1,004 | ||||||||||||||||||||||
Doubtful | - | - | - | - | ||||||||||||||||||||||
Loss | - | - | - | - | ||||||||||||||||||||||
$ | 29,166 | $ | 53,325 | $ | 169,176 | $ | 19,739 | |||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure By | ||||||||||||||||||||||||||
Internally | 1-to-4 family | |||||||||||||||||||||||||
Assigned Grade | residential | HELOC | ||||||||||||||||||||||||
Pass | $ | 29,364 | $ | 30,116 | ||||||||||||||||||||||
Special mention | 1,632 | 245 | ||||||||||||||||||||||||
Substandard | 4,010 | 1,502 | ||||||||||||||||||||||||
$ | 35,006 | $ | 31,863 | |||||||||||||||||||||||
Consumer Credit | ||||||||||||||||||||||||||
Exposure Based | Loans to | |||||||||||||||||||||||||
On Payment | individuals & | |||||||||||||||||||||||||
Activity | overdrafts | |||||||||||||||||||||||||
Pass | $ | 7,629 | ||||||||||||||||||||||||
Non-pass | 1,146 | |||||||||||||||||||||||||
$ | 8,775 | |||||||||||||||||||||||||
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 six month periods ended June 30, 2014 and June 30, 2013, respectively: | ||||||||||||||||||||||||||
Three months ended June 30, 2014 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | Family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 3/31/2014 | $ | 513 | $ | 889 | $ | 3,283 | $ | 585 | $ | 1,293 | $ | 171 | $ | 291 | $ | 7,025 | ||||||||||
Provision (recovery) for loan losses | -4 | 110 | -384 | -9 | -106 | -9 | -25 | -427 | ||||||||||||||||||
Loans charged-off | - | - | - | - | -231 | -13 | - | -244 | ||||||||||||||||||
Recoveries | 14 | 3 | 4 | 12 | 53 | 7 | - | 93 | ||||||||||||||||||
Balance, end of period 6/30/2014 | $ | 523 | $ | 1,002 | $ | 2,903 | $ | 588 | $ | 1,009 | $ | 156 | $ | 266 | $ | 6,447 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 66 | $ | 81 | $ | 426 | $ | 43 | $ | 140 | $ | 20 | $ | - | $ | 776 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 457 | $ | 921 | $ | 2,477 | $ | 545 | $ | 869 | $ | 136 | $ | 266 | $ | 5,671 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance | $ | 31,660 | $ | 60,541 | $ | 156,971 | $ | 30,669 | $ | 30,561 | $ | 5,659 | $ | 18,436 | $ | 334,497 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 388 | $ | 1,802 | $ | 5,986 | $ | 2,948 | $ | 1,059 | $ | 22 | $ | 2,331 | $ | 14,536 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 31,272 | $ | 58,739 | $ | 150,985 | $ | 27,721 | $ | 29,502 | $ | 5,637 | $ | 16,105 | $ | 319,961 | ||||||||||
Six months ended June 30, 2014 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
And | Commercial | family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 1/1/2014 | $ | 245 | $ | 565 | $ | 4,599 | $ | 826 | $ | 680 | $ | 65 | $ | 74 | $ | 7,054 | ||||||||||
Provision (recovery) for loan losses | 318 | 376 | -1,724 | -274 | 539 | 97 | 192 | -476 | ||||||||||||||||||
Loans charged-off | -63 | - | - | -1 | -271 | -19 | - | -354 | ||||||||||||||||||
Recoveries | 23 | 61 | 28 | 37 | 61 | 13 | - | 223 | ||||||||||||||||||
Balance, end of period 6/30/2014 | $ | 523 | $ | 1,002 | $ | 2,903 | $ | 588 | $ | 1,009 | $ | 156 | $ | 266 | $ | 6,447 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 66 | $ | 81 | $ | 426 | $ | 43 | $ | 140 | $ | 20 | $ | - | $ | 776 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 457 | $ | 921 | $ | 2,477 | $ | 545 | $ | 869 | $ | 136 | $ | 266 | $ | 5,671 | ||||||||||
Three months ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | family | individuals & | Family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 3/31/2013 | $ | 339 | $ | 626 | $ | 5,110 | $ | 920 | $ | 635 | $ | 73 | $ | 72 | $ | 7,775 | ||||||||||
Provision (recovery) for loan losses | 42 | -15 | -458 | 198 | -68 | -60 | -14 | -375 | ||||||||||||||||||
Loans charged-off | -83 | - | -137 | -81 | -29 | -17 | - | -347 | ||||||||||||||||||
Recoveries | -48 | -3 | 70 | 8 | 72 | 66 | - | 165 | ||||||||||||||||||
Balance, end of period 6/30/2013 | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | ||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 79 | $ | 223 | $ | 322 | $ | 197 | $ | 5 | $ | - | $ | 826 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 250 | $ | 529 | $ | 4,362 | $ | 723 | $ | 413 | $ | 57 | $ | 58 | $ | 6,392 | ||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance | $ | 31,710 | $ | 51,758 | $ | 182,233 | $ | 35,464 | $ | 32,579 | $ | 7,657 | $ | 14,760 | $ | 356,161 | ||||||||||
Ending balance: individually evaluated for impairment | $ | 660 | $ | 2,388 | $ | 9,454 | $ | 4,091 | $ | 1,030 | $ | 16 | $ | 2,407 | $ | 20,046 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 31,050 | $ | 49,370 | $ | 172,779 | $ | 31,373 | $ | 31,549 | $ | 7,641 | $ | 12,353 | $ | 336,115 | ||||||||||
Six months ended June 30, 2013 | ||||||||||||||||||||||||||
Commercial | 1-to-4 | Loans to | Multi- | |||||||||||||||||||||||
and | Commercial | family | individuals & | family | ||||||||||||||||||||||
Allowance for loan losses | industrial | Construction | real estate | residential | HELOC | overdrafts | residential | Total | ||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Balance, beginning of period 1/1/2013 | $ | 278 | $ | 798 | $ | 4,946 | $ | 1,070 | $ | 627 | $ | 72 | $ | 106 | $ | 7,897 | ||||||||||
Provision (recovery) for loan losses | 74 | -190 | -253 | 75 | -54 | -79 | -48 | -475 | ||||||||||||||||||
Loans charged-off | -129 | - | -180 | -121 | -39 | -44 | - | -513 | ||||||||||||||||||
Recoveries | 27 | - | 72 | 21 | 76 | 113 | - | 309 | ||||||||||||||||||
Balance, end of period 6/30/2013 | $ | 250 | $ | 608 | $ | 4,585 | $ | 1,045 | $ | 610 | $ | 62 | $ | 58 | $ | 7,218 | ||||||||||
Ending balance: individually evaluated for impairment | $ | - | $ | 79 | $ | 223 | $ | 322 | $ | 197 | $ | 5 | $ | - | $ | 826 | ||||||||||
Ending balance: collectively evaluated for impairment | $ | 250 | $ | 529 | $ | 4,362 | $ | 723 | $ | 413 | $ | 57 | $ | 58 | $ | 6,392 | ||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
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 months and six months ended June 30, 2014 and 2013. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30, | June 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
(In thousands) | ||||||||||||||
Beginning balance | $ | 132 | $ | 922 | $ | -108 | $ | 1,078 | ||||||
Unrealized gain (loss) on investment securities available for sale | 482 | -1,171 | 718 | -1,480 | ||||||||||
Tax effect | -180 | 398 | -267 | 503 | ||||||||||
Other comprehensive gain (loss) before reclassification | 302 | -773 | 451 | -977 | ||||||||||
Amounts reclassified from accumulated comprehensive income: | ||||||||||||||
Realized loss on investment securities included in net income | 65 | 63 | 211 | 136 | ||||||||||
Tax effect | -24 | -21 | -79 | -46 | ||||||||||
Total reclassifications net of tax | 41 | 42 | 132 | 90 | ||||||||||
Net current period other comprehensive income (loss) | 343 | -731 | 583 | -887 | ||||||||||
Ending balance | $ | 475 | $ | 191 | $ | 475 | $ | 191 | ||||||
PER_SHARE_RESULTS_Details
PER SHARE RESULTS (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Weighted average shares used for basic net income per share | 6,923,640 | 6,921,352 | 6,922,651 | 6,916,233 |
Effect of dilutive stock options | 4,788 | 1,590 | 3,667 | 1,238 |
Weighted average shares used for diluted net income per share | 6,928,428 | 6,922,942 | 6,926,318 | 6,917,471 |
PER_SHARE_RESULTS_Details_Text
PER SHARE RESULTS (Details Textual) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 91,183 | 308,909 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets, Fair Value Disclosure, Recurring | $79,904 | $83,836 |
US Government Agencies Debt Securities [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 27,159 | 34,665 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 45,199 | 41,065 |
Municipal Bonds [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 7,546 | 8,106 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 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 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 79,904 | 83,836 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 27,159 | 34,665 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 45,199 | 41,065 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 7,546 | 8,106 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | 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 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ' | ' |
Assets, Fair Value Disclosure, Recurring | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets, Fair Value Disclosure, Nonrecurring | $2,511 | $10,485 |
Impaired Loans [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,947 | 8,477 |
Foreclosed Real Estate [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 1,169 | 2,008 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 2,511 | 10,485 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,947 | 8,477 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $1,169 | $2,008 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details Textual) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Impaired Loans Receivable | $14,500,000 | $19,000,000 |
Assets, Fair Value Disclosure, Nonrecurring | 2,511,000 | 10,485,000 |
Impaired Loans Required for Specific Reserves | 4,100,000 | 7,400,000 |
Impaired Loans Specific Reserves | 776,000 | 1,100,000 |
Other Impaired Loans Without Specific Reserves | 1,600,000 | 2,100,000 |
Minimum [Member] | ' | ' |
Percentage Of Discount From Impaired Loans | 5.00% | ' |
Percentage Of Discount From Foreclosed Real Estate | 6.00% | ' |
Maximum [Member] | ' | ' |
Percentage Of Discount From Impaired Loans | 40.00% | ' |
Percentage Of Discount From Foreclosed Real Estate | 10.00% | ' |
Impaired Loans [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,947,000 | 8,477,000 |
Impaired Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | 4,900,000 | 9,900,000 |
Foreclosed Real Estate [Member] | ' | ' |
Assets, Fair Value Disclosure, Nonrecurring | $1,169,000 | $2,008,000 |
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | |
Cash and due from banks | $23,678 | $20,151 | [1] |
Interest-earning deposits in other banks | 46,740 | 49,690 | |
Federal funds sold | 3,028 | 3,028 | [1] |
Investment securities available for sale | 79,904 | 83,836 | |
Loans, net | 327,421 | 339,446 | |
Accrued interest receivable | 1,466 | 1,650 | [1] |
Stock in the FHLB | 562 | 796 | [1] |
Other non-marketable securities | 1,041 | 1,055 | |
Financial liabilities: | ' | ' | |
Deposits | 428,734 | 448,458 | [1] |
Short-term debt | 7,179 | 6,305 | [1] |
Long-term debt | 12,372 | 12,372 | [1] |
Accrued interest payable | 207 | 225 | [1] |
Fair Value, Inputs, Level 1 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and due from banks | 23,678 | 20,151 | |
Interest-earning deposits in other banks | 46,740 | 49,690 | |
Federal funds sold | 3,028 | 3,028 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and due from banks | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Investment securities available for sale | 79,904 | 83,836 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Financial liabilities: | ' | ' | |
Deposits | 431,907 | 452,529 | |
Short-term debt | 7,179 | 6,305 | |
Long-term debt | 7,517 | 7,517 | |
Accrued interest payable | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and due from banks | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | 0 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 335,098 | 353,439 | |
Accrued interest receivable | 1,466 | 1,650 | |
Stock in the FHLB | 562 | 796 | |
Other non-marketable securities | 1,041 | 1,055 | |
Financial liabilities: | ' | ' | |
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | 207 | 225 | |
Estimate of Fair Value Measurement [Member] | ' | ' | |
Financial assets: | ' | ' | |
Cash and due from banks | 23,678 | 20,151 | |
Interest-earning deposits in other banks | 46,740 | 49,690 | |
Federal funds sold | 3,028 | 3,028 | |
Investment securities available for sale | 79,904 | 83,836 | |
Loans, net | 335,098 | 353,439 | |
Accrued interest receivable | 1,466 | 1,650 | |
Stock in the FHLB | 562 | 796 | |
Other non-marketable securities | 1,041 | 1,055 | |
Financial liabilities: | ' | ' | |
Deposits | 431,907 | 452,529 | |
Short-term debt | 7,179 | 6,305 | |
Long-term debt | 7,517 | 7,517 | |
Accrued interest payable | $207 | $225 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 | |
Investments Classified By Contractual Maturity Date [Line Items] | ' | ' | |
Available-for-sale Securities, Amortized Cost Total | $79,147 | $84,009 | |
Available-for-sale Securities, Fair Value Total | 79,904 | 83,836 | [1] |
Available-for-sale Securities, Gross unrealized gains, Total | 1,284 | 1,000 | |
Available-for-sale Securities, Gross Unrealized Loss, Total | -527 | -1,173 | |
Us Government Agencies Debt Securities [Member] | ' | ' | |
Investments Classified By Contractual Maturity Date [Line Items] | ' | ' | |
Amortized cost Within 1 year | 9,770 | 10,520 | |
Gross unrealized gains Within 1 year | 21 | 25 | |
Gross unrealized losses Within 1 year | 0 | 0 | |
Fair value Within 1 year | 9,791 | 10,545 | |
Amortized cost After 1 year but within 5 years | 2,437 | 8,820 | |
Gross unrealized gains After 1 year but within 5 years | 4 | 17 | |
Gross unrealized losses After 1 year but within 5 years | -7 | -10 | |
Fair value After 1 year but within 5 years | 2,434 | 8,827 | |
Amortized cost After 5 years but within 10 years | 11,821 | 7,376 | |
Gross unrealized gains After 5 years but within 10 years | 9 | 0 | |
Gross unrealized losses After 5 years but within 10 years | -308 | -549 | |
Fair value After 5 years but within 10 years | 11,522 | 6,827 | |
Amortized cost After 10 years | 3,466 | 8,524 | |
Gross unrealized gains After 10 years | 0 | 11 | |
Gross unrealized losses After 10 years | -54 | -69 | |
Fair value After 10 years | 3,412 | 8,466 | |
Mortgage-Backed Securities, Issued By Us Government Sponsored Enterprises [Member] | ' | ' | |
Investments Classified By Contractual Maturity Date [Line Items] | ' | ' | |
Amortized cost Within 1 year | 46 | 133 | |
Gross unrealized gains Within 1 year | 3 | 7 | |
Gross unrealized losses Within 1 year | 0 | 0 | |
Fair value Within 1 year | 49 | 140 | |
Amortized cost After 1 year but within 5 years | 23,995 | 35,352 | |
Gross unrealized gains After 1 year but within 5 years | 901 | 659 | |
Gross unrealized losses After 1 year but within 5 years | 0 | -155 | |
Fair value After 1 year but within 5 years | 24,896 | 35,856 | |
Amortized cost After 5 years but within 10 years | 20,326 | 5,316 | |
Gross unrealized gains After 5 years but within 10 years | 75 | 0 | |
Gross unrealized losses After 5 years but within 10 years | -147 | -247 | |
Fair value After 5 years but within 10 years | 20,254 | 5,069 | |
Municipal Bonds [Member] | ' | ' | |
Investments Classified By Contractual Maturity Date [Line Items] | ' | ' | |
Amortized cost Within 1 year | 577 | 100 | |
Gross unrealized gains Within 1 year | 10 | 1 | |
Gross unrealized losses Within 1 year | 0 | 0 | |
Fair value Within 1 year | 587 | 101 | |
Amortized cost After 1 year but within 5 years | 2,529 | 3,036 | |
Gross unrealized gains After 1 year but within 5 years | 169 | 196 | |
Gross unrealized losses After 1 year but within 5 years | 0 | 0 | |
Fair value After 1 year but within 5 years | 2,698 | 3,232 | |
Amortized cost After 5 years but within 10 years | 3,369 | 3,306 | |
Gross unrealized gains After 5 years but within 10 years | 83 | 30 | |
Gross unrealized losses After 5 years but within 10 years | -5 | -112 | |
Fair value After 5 years but within 10 years | 3,447 | 3,224 | |
Amortized cost After 10 years | 811 | 1,526 | |
Gross unrealized gains After 10 years | 9 | 54 | |
Gross unrealized losses After 10 years | -6 | -31 | |
Fair value After 10 years | $814 | $1,549 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 1) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
US Government Agencies Debt Securities [Member] | ' | ' |
Securities available for sale: | ' | ' |
Less Than 12 Months Fair value | $9,162 | $11,908 |
Less than 12 Months Unrealized losses | -101 | -239 |
12 Months or More Fair value | 5,732 | 3,611 |
12 Months or More Unrealized losses | -268 | -389 |
Total Fair value | 14,894 | 15,519 |
Total Unrealized losses | -369 | -628 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ' | ' |
Securities available for sale: | ' | ' |
Less Than 12 Months Fair value | 8,761 | 21,762 |
Less than 12 Months Unrealized losses | -48 | -312 |
12 Months or More Fair value | 4,905 | 1,777 |
12 Months or More Unrealized losses | -99 | -90 |
Total Fair value | 13,666 | 23,539 |
Total Unrealized losses | -147 | -402 |
Municipal Bonds [Member] | ' | ' |
Securities available for sale: | ' | ' |
Less Than 12 Months Fair value | 1,752 | 2,719 |
Less than 12 Months Unrealized losses | -3 | -143 |
12 Months or More Fair value | 522 | 0 |
12 Months or More Unrealized losses | -8 | 0 |
Total Fair value | 2,274 | 2,719 |
Total Unrealized losses | -11 | -143 |
Temporarily Impaired Securities [Member] | ' | ' |
Securities available for sale: | ' | ' |
Less Than 12 Months Fair value | 19,675 | 36,389 |
Less than 12 Months Unrealized losses | -152 | -694 |
12 Months or More Fair value | 11,159 | 5,388 |
12 Months or More Unrealized losses | -375 | -479 |
Total Fair value | 30,834 | 41,777 |
Total Unrealized losses | ($527) | ($1,173) |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Investment Securities [Line Items] | ' | ' |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $757,000 | $173,000 |
Deferred Income Taxes and Other Liabilities, Noncurrent | $346,000 | $65,000 |
Trading Securities, Description | 'Three U.S. government agency GSEs, four mortgage-backed GSEs, and two municipal bonds had unrealized losses for more than twelve months totaling $375,000 at June 30, 2014. | 'Two U.S. government agency GSEs and one mortgage-backed GSE had unrealized losses for more than twelve months totaling $479,000 at December 31, 2013. |
LOANS_Details
LOANS (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Gross loans | $334,497 | ' | $347,050 | ' | ' | ' | |
Less deferred loan origination fees, net | -629 | ' | -550 | ' | ' | ' | |
Loans | 333,868 | ' | 346,500 | [1] | 356,161 | ' | ' |
Allowance for loan losses | -6,447 | -7,025 | -7,054 | [1] | -7,218 | -7,775 | -7,897 |
Total loans, net | 327,421 | ' | 339,446 | [1] | ' | ' | ' |
Percentage of Deferred Origination Fees | -0.19% | ' | -0.16% | ' | ' | ' | |
Percent of Loans | 100.00% | ' | 100.00% | ' | ' | ' | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 30,669 | ' | 35,006 | 35,464 | ' | ' | |
Allowance for loan losses | -588 | -585 | -826 | -1,045 | -920 | -1,070 | |
Percent of Loans | 9.19% | ' | 10.10% | ' | ' | ' | |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 156,971 | ' | 169,176 | 182,233 | ' | ' | |
Allowance for loan losses | -2,903 | -3,283 | -4,599 | -4,585 | -5,110 | -4,946 | |
Percent of Loans | 47.02% | ' | 48.82% | ' | ' | ' | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 18,436 | ' | 19,739 | 14,760 | ' | ' | |
Allowance for loan losses | -266 | -291 | -74 | -58 | -72 | -106 | |
Percent of Loans | 5.52% | ' | 5.70% | ' | ' | ' | |
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 60,541 | ' | 53,325 | 51,758 | ' | ' | |
Allowance for loan losses | -1,002 | -889 | -565 | -608 | -626 | -798 | |
Percent of Loans | 18.13% | ' | 15.39% | ' | ' | ' | |
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 30,561 | ' | 31,863 | 32,579 | ' | ' | |
Allowance for loan losses | -1,009 | -1,293 | -680 | -610 | -635 | -627 | |
Percent of Loans | 9.15% | ' | 9.20% | ' | ' | ' | |
Real Estate [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 297,178 | ' | 309,109 | ' | ' | ' | |
Percent of Loans | 89.01% | ' | 89.21% | ' | ' | ' | |
Commercial and Industrial Other [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 31,660 | ' | 29,166 | 31,710 | ' | ' | |
Allowance for loan losses | -523 | -513 | -245 | -250 | -339 | -278 | |
Percent of Loans | 9.48% | ' | 8.42% | ' | ' | ' | |
Loans to Individuals [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 5,504 | ' | 8,584 | ' | ' | ' | |
Percent of Loans | 1.65% | ' | 2.48% | ' | ' | ' | |
Overdrafts [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | 155 | ' | 191 | ' | ' | ' | |
Percent of Loans | 0.05% | ' | 0.05% | ' | ' | ' | |
Other Loans [Member] | ' | ' | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans | $37,319 | ' | $37,941 | ' | ' | ' | |
Percent of Loans | 11.18% | ' | 10.95% | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_1
LOANS (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | $513 | $874 | ' | |
Non-Accrual Loans | 7,607 | 9,319 | ' | |
Total Past Due | 8,120 | 10,193 | ' | |
Current | 326,377 | 336,857 | ' | |
Deferred loan (fees) cost, net | -629 | -550 | ' | |
Total Loans | 333,868 | 346,500 | [1] | 356,161 |
Commercial and Industrial [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 173 | 70 | ' | |
Non-Accrual Loans | 265 | 330 | ' | |
Total Past Due | 438 | 400 | ' | |
Current | 31,222 | 28,766 | ' | |
Total Loans | 31,660 | 29,166 | 31,710 | |
Construction Loans Real Estate [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 18 | 36 | ' | |
Non-Accrual Loans | 889 | 1,206 | ' | |
Total Past Due | 907 | 1,242 | ' | |
Current | 59,634 | 52,083 | ' | |
Total Loans | 60,541 | 53,325 | 51,758 | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 0 | 0 | ' | |
Non-Accrual Loans | 955 | 1,004 | ' | |
Total Past Due | 955 | 1,004 | ' | |
Current | 17,481 | 18,735 | ' | |
Total Loans | 18,436 | 19,739 | 14,760 | |
Commercial Real Estate [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 2 | 446 | ' | |
Non-Accrual Loans | 3,208 | 4,441 | ' | |
Total Past Due | 3,210 | 4,887 | ' | |
Current | 153,761 | 164,289 | ' | |
Total Loans | 156,971 | 169,176 | 182,233 | |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 12 | 4 | ' | |
Non-Accrual Loans | 22 | 5 | ' | |
Total Past Due | 34 | 9 | ' | |
Current | 5,625 | 8,766 | ' | |
Total Loans | 5,659 | 8,775 | 7,657 | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 286 | 318 | ' | |
Non-Accrual Loans | 1,282 | 1,092 | ' | |
Total Past Due | 1,568 | 1,410 | ' | |
Current | 29,101 | 33,596 | ' | |
Total Loans | 30,669 | 35,006 | 35,464 | |
Home Equity Line of Credit [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | |
30+ Days Past Due | 22 | 0 | ' | |
Non-Accrual Loans | 986 | 1,241 | ' | |
Total Past Due | 1,008 | 1,241 | ' | |
Current | 29,553 | 30,622 | ' | |
Total Loans | $30,561 | $31,863 | $32,579 | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_2
LOANS (Details 2) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | $10,398 | ' | $10,398 | ' | $11,584 |
With no related allowance, Contractual Unpaid Principal Balance | 12,599 | ' | 12,599 | ' | 13,511 |
With no related allowance, Average Recorded Investment | 10,658 | 13,208 | 11,684 | 13,378 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 132 | 209 | 315 | 312 | ' |
With an related allowance, Recorded Investment | 4,138 | ' | 4,138 | ' | 7,398 |
With an related allowance, Contractual Unpaid Principal Balance | 5,105 | ' | 5,105 | ' | 7,476 |
Related Allowance | 776 | ' | 776 | ' | 1,103 |
With an related allowance, Average Recorded Investment | 4,105 | 5,799 | 5,768 | 5,867 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 48 | 26 | 71 | 66 | ' |
Recorded Investment Total | 14,536 | ' | 14,536 | ' | 18,982 |
Contractual Unpaid Principal Balance Total | 17,704 | ' | 17,704 | ' | 20,987 |
Related Allowance Total | 776 | ' | 776 | ' | 1,103 |
Average Recorded Investment Total | 14,763 | 19,007 | 17,452 | 19,245 | ' |
Interest Income Recognized on impaired Loans Total | 180 | 235 | 386 | 378 | ' |
Residential Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment Total | 4,007 | ' | 4,007 | ' | 4,300 |
Contractual Unpaid Principal Balance Total | 4,795 | ' | 4,795 | ' | 4,691 |
Related Allowance Total | 183 | ' | 183 | ' | 408 |
Average Recorded Investment Total | 4,097 | 4,366 | 4,718 | 4,400 | ' |
Interest Income Recognized on impaired Loans Total | 54 | 54 | 114 | 97 | ' |
Commercial Loan [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment Total | 10,507 | ' | 10,507 | ' | 14,677 |
Contractual Unpaid Principal Balance Total | 12,884 | ' | 12,884 | ' | 16,291 |
Related Allowance Total | 573 | ' | 573 | ' | 695 |
Average Recorded Investment Total | 10,654 | 14,627 | 12,721 | 14,827 | ' |
Interest Income Recognized on impaired Loans Total | 126 | 181 | 272 | 281 | ' |
Consumer Loan [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
Recorded Investment Total | 22 | ' | 22 | ' | 5 |
Contractual Unpaid Principal Balance Total | 25 | ' | 25 | ' | 5 |
Related Allowance Total | 20 | ' | 20 | ' | 0 |
Average Recorded Investment Total | 12 | 14 | 13 | 18 | ' |
Interest Income Recognized on impaired Loans Total | 0 | 0 | 0 | 0 | ' |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 122 | ' | 122 | ' | 196 |
With no related allowance, Contractual Unpaid Principal Balance | 122 | ' | 122 | ' | 257 |
With no related allowance, Average Recorded Investment | 124 | 500 | 159 | 515 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 2 | 17 | 5 | 21 | ' |
With an related allowance, Recorded Investment | 266 | ' | 266 | ' | 267 |
With an related allowance, Contractual Unpaid Principal Balance | 266 | ' | 266 | ' | 267 |
Related Allowance | 66 | ' | 66 | ' | 63 |
With an related allowance, Average Recorded Investment | 265 | 79 | 266 | 75 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | ' |
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 1,634 | ' | 1,634 | ' | 2,059 |
With no related allowance, Contractual Unpaid Principal Balance | 1,848 | ' | 1,848 | ' | 2,311 |
With no related allowance, Average Recorded Investment | 1,706 | 1,881 | 1,846 | 2,046 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 20 | 2 | 43 | 4 | ' |
With an related allowance, Recorded Investment | 168 | ' | 168 | ' | 328 |
With an related allowance, Contractual Unpaid Principal Balance | 168 | ' | 168 | ' | 406 |
Related Allowance | 81 | ' | 81 | ' | 91 |
With an related allowance, Average Recorded Investment | 168 | 472 | 248 | 403 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 5 | 0 | 7 | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 3,271 | ' | 3,271 | ' | 3,748 |
With no related allowance, Contractual Unpaid Principal Balance | 4,441 | ' | 4,441 | ' | 4,971 |
With no related allowance, Average Recorded Investment | 3,363 | 5,812 | 3,639 | 5,870 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 37 | 124 | 107 | 147 | ' |
With an related allowance, Recorded Investment | 2,715 | ' | 2,715 | ' | 5,695 |
With an related allowance, Contractual Unpaid Principal Balance | 3,434 | ' | 3,434 | ' | 5,695 |
Related Allowance | 426 | ' | 426 | ' | 541 |
With an related allowance, Average Recorded Investment | 2,693 | 3,972 | 4,205 | 4,150 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 31 | 0 | 42 | 30 | ' |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 2 | ' | 2 | ' | 3 |
With no related allowance, Contractual Unpaid Principal Balance | 5 | ' | 5 | ' | 3 |
With no related allowance, Average Recorded Investment | 2 | 1 | ' | 2 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 2 | 0 | ' |
With an related allowance, Recorded Investment | 20 | ' | 20 | ' | 2 |
With an related allowance, Contractual Unpaid Principal Balance | 20 | ' | 20 | ' | 2 |
Related Allowance | 20 | ' | 20 | ' | 0 |
With an related allowance, Average Recorded Investment | 10 | 13 | ' | 16 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 11 | 0 | ' |
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 2,331 | ' | 2,331 | ' | 2,384 |
With no related allowance, Contractual Unpaid Principal Balance | 2,605 | ' | 2,605 | ' | 2,384 |
With no related allowance, Average Recorded Investment | 2,335 | 1,911 | 2,358 | 1,755 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 36 | 33 | 75 | 72 | ' |
With an related allowance, Recorded Investment | 0 | ' | 0 | ' | 0 |
With an related allowance, Contractual Unpaid Principal Balance | 0 | ' | 0 | ' | 0 |
Related Allowance | 0 | ' | 0 | ' | 0 |
With an related allowance, Average Recorded Investment | 0 | 0 | 0 | 13 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | 0 | 0 | ' |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 2,379 | ' | 2,379 | ' | 2,427 |
With no related allowance, Contractual Unpaid Principal Balance | 2,804 | ' | 2,804 | ' | 2,731 |
With no related allowance, Average Recorded Investment | 2,421 | 396 | 2,967 | 477 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 25 | 2 | 64 | 4 | ' |
With an related allowance, Recorded Investment | 569 | ' | 569 | ' | 553 |
With an related allowance, Contractual Unpaid Principal Balance | 574 | ' | 574 | ' | 553 |
Related Allowance | 43 | ' | 43 | ' | 320 |
With an related allowance, Average Recorded Investment | 496 | 947 | 561 | 940 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | 13 | 20 | 20 | 28 | ' |
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 659 | ' | 659 | ' | 767 |
With no related allowance, Contractual Unpaid Principal Balance | 774 | ' | 774 | ' | 854 |
With no related allowance, Average Recorded Investment | 707 | 2,707 | 713 | 2,713 | ' |
With no related allowance, Interest Income Recognized on Impaired Loans | 12 | 31 | 21 | 64 | ' |
With an related allowance, Recorded Investment | 400 | ' | 400 | ' | 553 |
With an related allowance, Contractual Unpaid Principal Balance | 643 | ' | 643 | ' | 553 |
Related Allowance | 140 | ' | 140 | ' | 88 |
With an related allowance, Average Recorded Investment | 473 | 316 | 477 | 270 | ' |
With an related allowance, Interest Income Recognized on Impaired Loans | $4 | $1 | $9 | $1 | ' |
LOANS_Details_3
LOANS (Details 3) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Number | Number | Number | Number | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 2 | 12 | 3 | 13 |
Pre-Modification Outstanding Recorded Investment | $993 | $3,985 | $1,015 | $4,044 |
Post-Modification Outstanding Recorded Investment | 984 | 3,982 | 1,006 | 4,040 |
Number of TDRs loans | 1 | 6 | 3 | 7 |
Recorded investment | 947 | 506 | 1,037 | 565 |
Commercial and Inustrial Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Construction Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Commercial Real Estate Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Loans to Individuals and Overdrafts Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Residential 1 to 4 Family Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 22 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 22 | 0 |
Number of TDRs loans | 0 | 0 | 1 | 0 |
Recorded investment | 0 | 0 | 22 | 0 |
Multi Family Residential Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Below Market Interest Rate [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 22 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 22 | 0 |
Number of TDRs loans | 0 | 0 | 1 | 0 |
Recorded investment | 0 | 0 | 22 | 0 |
Commercial and Inustrial Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 4 | 0 | 4 |
Pre-Modification Outstanding Recorded Investment | 0 | 537 | 0 | 537 |
Post-Modification Outstanding Recorded Investment | 0 | 536 | 0 | 536 |
Number of TDRs loans | 0 | 2 | 0 | 2 |
Recorded investment | 0 | 163 | 0 | 163 |
Construction Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 2 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | 0 | 134 | 0 | 134 |
Post-Modification Outstanding Recorded Investment | 0 | 134 | 0 | 134 |
Number of TDRs loans | 0 | 2 | 0 | 2 |
Recorded investment | 0 | 133 | 0 | 133 |
Commercial Real Estate Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 1 | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 46 | 645 | 46 | 645 |
Post-Modification Outstanding Recorded Investment | 42 | 645 | 42 | 645 |
Number of TDRs loans | 1 | 0 | 1 | 0 |
Recorded investment | 947 | 0 | 947 | 0 |
Loans to Individuals and Overdrafts Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Residential 1 to 4 Family Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 1 | 2 | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 947 | 139 | 947 | 139 |
Post-Modification Outstanding Recorded Investment | 942 | 139 | 942 | 139 |
Number of TDRs loans | 0 | 1 | 0 | 1 |
Recorded investment | 0 | 47 | 0 | 47 |
Multi Family Residential Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | ' | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | ' | 0 |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Extended Payment Term [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 2 | 9 | 2 | 9 |
Pre-Modification Outstanding Recorded Investment | 993 | 1,455 | 993 | 1,455 |
Post-Modification Outstanding Recorded Investment | 984 | 1,454 | 984 | 1,454 |
Number of TDRs loans | 1 | 5 | 1 | 5 |
Recorded investment | 947 | 343 | 947 | 343 |
Commercial and Inustrial Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Construction Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Commercial Real Estate Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Loans to Individuals and Overdrafts Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Residential 1 to 4 Family Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Multi Family Residential Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Home Equity Line of Credit Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Forgiveness of Principal [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of TDRs loans | 0 | 0 | 0 | 0 |
Recorded investment | 0 | 0 | 0 | 0 |
Commercial and Industrial Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Construction Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Commercial Real Estate Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 2 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | 0 | 2,454 | 0 | 2,454 |
Post-Modification Outstanding Recorded Investment | 0 | 2,454 | 0 | 2,454 |
Number of TDRs loans | 0 | 1 | 0 | 1 |
Recorded investment | 0 | 163 | 0 | 163 |
Loans to Individuals and Overdrafts Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Residential 1 to 4 Family Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 1 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | 0 | 76 | 0 | 135 |
Post-Modification Outstanding Recorded Investment | 0 | 74 | 0 | 132 |
Number of TDRs loans | 0 | 0 | 1 | 1 |
Recorded investment | 0 | 0 | 68 | 59 |
Multi Family Residential Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
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 |
Other [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of loans | 0 | 3 | 0 | 4 |
Pre-Modification Outstanding Recorded Investment | 0 | 2,530 | 0 | 2,589 |
Post-Modification Outstanding Recorded Investment | 0 | 2,528 | 0 | 2,586 |
Number of TDRs loans | 0 | 1 | 1 | 2 |
Recorded investment | $0 | $163 | $68 | $222 |
LOANS_Details_4
LOANS (Details 4) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | $333,868 | $346,500 | [1] | $356,161 |
Commercial and Industrial [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 31,660 | 29,166 | 31,710 | |
Commercial and Industrial [Member] | Superior [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 835 | 830 | ' | |
Commercial and Industrial [Member] | Very Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial and Industrial [Member] | Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 3,589 | 5,793 | ' | |
Commercial and Industrial [Member] | Acceptable [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 16,874 | 11,572 | ' | |
Commercial and Industrial [Member] | Acceptable With Care [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 9,761 | 5,307 | ' | |
Commercial and Industrial [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 185 | 5,122 | ' | |
Commercial and Industrial [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 416 | 542 | ' | |
Commercial and Industrial [Member] | Doubtful [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial and Industrial [Member] | Loss [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Construction Loans [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 60,541 | 53,325 | ' | |
Construction Loans [Member] | Superior [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 35 | 40 | ' | |
Construction Loans [Member] | Very Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Construction Loans [Member] | Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 235 | 1,133 | ' | |
Construction Loans [Member] | Acceptable [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 1,831 | 2,838 | ' | |
Construction Loans [Member] | Acceptable With Care [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 56,480 | 46,597 | ' | |
Construction Loans [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 641 | 1,126 | ' | |
Construction Loans [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 1,319 | 1,591 | ' | |
Construction Loans [Member] | Doubtful [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Construction Loans [Member] | Loss [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial Real Estate [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 156,971 | 169,176 | 182,233 | |
Commercial Real Estate [Member] | Superior [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial Real Estate [Member] | Very Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial Real Estate [Member] | Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 15,887 | 19,301 | ' | |
Commercial Real Estate [Member] | Acceptable [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 59,526 | 63,447 | ' | |
Commercial Real Estate [Member] | Acceptable With Care [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 65,397 | 57,768 | ' | |
Commercial Real Estate [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 11,711 | 21,305 | ' | |
Commercial Real Estate [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 4,450 | 7,355 | ' | |
Commercial Real Estate [Member] | Doubtful [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Commercial Real Estate [Member] | Loss [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Multi Family Residential Real Estate [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 18,436 | 19,739 | 14,760 | |
Multi Family Residential Real Estate [Member] | Superior [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Multi Family Residential Real Estate [Member] | Very Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Multi Family Residential Real Estate [Member] | Good [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 4,158 | 4,203 | ' | |
Multi Family Residential Real Estate [Member] | Acceptable [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 7,922 | 6,812 | ' | |
Multi Family Residential Real Estate [Member] | Acceptable With Care [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 4,024 | 6,340 | ' | |
Multi Family Residential Real Estate [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 1,356 | 1,380 | ' | |
Multi Family Residential Real Estate [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 976 | 1,004 | ' | |
Multi Family Residential Real Estate [Member] | Doubtful [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Multi Family Residential Real Estate [Member] | Loss [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 0 | 0 | ' | |
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 5,659 | 8,775 | 7,657 | |
Loans to Individuals and Overdrafts [Member] | Pass [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 5,611 | 7,629 | ' | |
Loans to Individuals and Overdrafts [Member] | Non-Pass [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 48 | 1,146 | ' | |
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 30,669 | 35,006 | 35,464 | |
Family Residential Real Estate 1 to 4 [Member] | Pass [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 25,725 | 29,364 | ' | |
Family Residential Real Estate 1 to 4 [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 1,301 | 1,632 | ' | |
Family Residential Real Estate 1 to 4 [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 3,643 | 4,010 | ' | |
Home Equity Line Of Credit [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 30,561 | 31,863 | 32,579 | |
Home Equity Line Of Credit [Member] | Pass [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 29,290 | 30,116 | ' | |
Home Equity Line Of Credit [Member] | Special Mention [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | 103 | 245 | ' | |
Home Equity Line Of Credit [Member] | Substandard [Member] | ' | ' | ' | |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | |
Loans | $1,168 | $1,502 | ' | |
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_5
LOANS (Details 5) (USD $) | 3 Months Ended | 6 Months Ended | |||||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | $7,025 | $7,775 | $7,054 | [1] | $7,897 | ' | |
Provision (recovery) for loan losses | -427 | -375 | -476 | -475 | ' | ||
Loans charged-off | -244 | -347 | -354 | -513 | ' | ||
Recoveries | 93 | 165 | 223 | 309 | ' | ||
Allowance for loan losses, Balance, end of period | 6,447 | 7,218 | 6,447 | 7,218 | ' | ||
Ending balance: individually evaluated for impairment | 776 | 826 | 776 | 826 | ' | ||
Ending balance: collectively evaluated for impairment | 5,671 | 6,392 | 5,671 | 6,392 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 333,868 | 356,161 | 333,868 | 356,161 | 346,500 | [1] | |
Ending balance: individually evaluated for impairment | 14,536 | 20,046 | 14,536 | 20,046 | ' | ||
Ending balance: collectively evaluated for impairment | 319,961 | 336,115 | 319,961 | 336,115 | ' | ||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 513 | 339 | 245 | 278 | ' | ||
Provision (recovery) for loan losses | -4 | 42 | 318 | 74 | ' | ||
Loans charged-off | 0 | -83 | -63 | -129 | ' | ||
Recoveries | 14 | -48 | 23 | 27 | ' | ||
Allowance for loan losses, Balance, end of period | 523 | 250 | 523 | 250 | ' | ||
Ending balance: individually evaluated for impairment | 66 | 0 | 66 | 0 | ' | ||
Ending balance: collectively evaluated for impairment | 457 | 250 | 457 | 250 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 31,660 | 31,710 | 31,660 | 31,710 | 29,166 | ||
Ending balance: individually evaluated for impairment | 388 | 660 | 388 | 660 | ' | ||
Ending balance: collectively evaluated for impairment | 31,272 | 31,050 | 31,272 | 31,050 | ' | ||
Construction Loans Real Estate [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 889 | 626 | 565 | 798 | ' | ||
Provision (recovery) for loan losses | 110 | -15 | 376 | -190 | ' | ||
Loans charged-off | 0 | 0 | 0 | 0 | ' | ||
Recoveries | 3 | -3 | 61 | 0 | ' | ||
Allowance for loan losses, Balance, end of period | 1,002 | 608 | 1,002 | 608 | ' | ||
Ending balance: individually evaluated for impairment | 81 | 79 | 81 | 79 | ' | ||
Ending balance: collectively evaluated for impairment | 921 | 529 | 921 | 529 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 60,541 | 51,758 | 60,541 | 51,758 | 53,325 | ||
Ending balance: individually evaluated for impairment | 1,802 | 2,388 | 1,802 | 2,388 | ' | ||
Ending balance: collectively evaluated for impairment | 58,739 | 49,370 | 58,739 | 49,370 | ' | ||
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 3,283 | 5,110 | 4,599 | 4,946 | ' | ||
Provision (recovery) for loan losses | -384 | -458 | -1,724 | -253 | ' | ||
Loans charged-off | 0 | -137 | 0 | -180 | ' | ||
Recoveries | 4 | 70 | 28 | 72 | ' | ||
Allowance for loan losses, Balance, end of period | 2,903 | 4,585 | 2,903 | 4,585 | ' | ||
Ending balance: individually evaluated for impairment | 426 | 223 | 426 | 223 | ' | ||
Ending balance: collectively evaluated for impairment | 2,477 | 4,362 | 2,477 | 4,362 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 156,971 | 182,233 | 156,971 | 182,233 | 169,176 | ||
Ending balance: individually evaluated for impairment | 5,986 | 9,454 | 5,986 | 9,454 | ' | ||
Ending balance: collectively evaluated for impairment | 150,985 | 172,779 | 150,985 | 172,779 | ' | ||
Family Residential Real Estate 1 to 4 [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 585 | 920 | 826 | 1,070 | ' | ||
Provision (recovery) for loan losses | -9 | 198 | -274 | 75 | ' | ||
Loans charged-off | 0 | -81 | -1 | -121 | ' | ||
Recoveries | 12 | 8 | 37 | 21 | ' | ||
Allowance for loan losses, Balance, end of period | 588 | 1,045 | 588 | 1,045 | ' | ||
Ending balance: individually evaluated for impairment | 43 | 322 | 43 | 322 | ' | ||
Ending balance: collectively evaluated for impairment | 545 | 723 | 545 | 723 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 30,669 | 35,464 | 30,669 | 35,464 | 35,006 | ||
Ending balance: individually evaluated for impairment | 2,948 | 4,091 | 2,948 | 4,091 | ' | ||
Ending balance: collectively evaluated for impairment | 27,721 | 31,373 | 27,721 | 31,373 | ' | ||
Home Equity Line of Credit [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 1,293 | 635 | 680 | 627 | ' | ||
Provision (recovery) for loan losses | -106 | -68 | 539 | -54 | ' | ||
Loans charged-off | -231 | -29 | -271 | -39 | ' | ||
Recoveries | 53 | 72 | 61 | 76 | ' | ||
Allowance for loan losses, Balance, end of period | 1,009 | 610 | 1,009 | 610 | ' | ||
Ending balance: individually evaluated for impairment | 140 | 197 | 140 | 197 | ' | ||
Ending balance: collectively evaluated for impairment | 869 | 413 | 869 | 413 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 30,561 | 32,579 | 30,561 | 32,579 | 31,863 | ||
Ending balance: individually evaluated for impairment | 1,059 | 1,030 | 1,059 | 1,030 | ' | ||
Ending balance: collectively evaluated for impairment | 29,502 | 31,549 | 29,502 | 31,549 | ' | ||
Loans to Individuals and Overdrafts [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 171 | 73 | 65 | 72 | ' | ||
Provision (recovery) for loan losses | -9 | -60 | 97 | -79 | ' | ||
Loans charged-off | -13 | -17 | -19 | -44 | ' | ||
Recoveries | 7 | 66 | 13 | 113 | ' | ||
Allowance for loan losses, Balance, end of period | 156 | 62 | 156 | 62 | ' | ||
Ending balance: individually evaluated for impairment | 20 | 5 | 20 | 5 | ' | ||
Ending balance: collectively evaluated for impairment | 136 | 57 | 136 | 57 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 5,659 | 7,657 | 5,659 | 7,657 | 8,775 | ||
Ending balance: individually evaluated for impairment | 22 | 16 | 22 | 16 | ' | ||
Ending balance: collectively evaluated for impairment | 5,637 | 7,641 | 5,637 | 7,641 | ' | ||
Multi Family Residential Real Estate [Member] | ' | ' | ' | ' | ' | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ||
Allowance for loan losses, Balance, beginning of period | 291 | 72 | 74 | 106 | ' | ||
Provision (recovery) for loan losses | -25 | -14 | 192 | -48 | ' | ||
Loans charged-off | 0 | 0 | 0 | 0 | ' | ||
Recoveries | 0 | 0 | 0 | 0 | ' | ||
Allowance for loan losses, Balance, end of period | 266 | 58 | 266 | 58 | ' | ||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | ' | ||
Ending balance: collectively evaluated for impairment | 266 | 58 | 266 | 58 | ' | ||
Loans: | ' | ' | ' | ' | ' | ||
Ending balance | 18,436 | 14,760 | 18,436 | 14,760 | 19,739 | ||
Ending balance: individually evaluated for impairment | 2,331 | 2,407 | 2,331 | 2,407 | ' | ||
Ending balance: collectively evaluated for impairment | $16,105 | $12,353 | $16,105 | $12,353 | ' | ||
[1] | Derived from audited consolidated financial statements. |
LOANS_Details_Textual
LOANS (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | $14,536,000 | ' | $14,536,000 | ' | $18,982,000 |
Impaired Loans Required for Specific Reserves | 4,100,000 | ' | 4,100,000 | ' | 7,400,000 |
With no related allowance, Recorded Investment | 10,398,000 | ' | 10,398,000 | ' | 11,584,000 |
Increase (Decrease) in Finance Receivables | ' | ' | 1,600,000 | ' | 2,100,000 |
Allowance for Loan and Lease Losses, Period Increase (Decrease) | ' | ' | 177,000 | ' | ' |
Allowance for Loan and Lease Losses Write-offs, Net, Total | ' | 182,000 | ' | ' | ' |
Provision for Loan and Lease Losses | -427,000 | -375,000 | -476,000 | -475,000 | ' |
Nonaccrual Impaired Loans [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | 7,600,000 | ' | 7,600,000 | ' | 9,300,000 |
Accrual Impaired Loans [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | 6,900,000 | ' | 6,900,000 | ' | 9,700,000 |
Troubled Debt Restructurings [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | 8,100,000 | 9,800,000 | 8,100,000 | 9,800,000 | ' |
Troubled Debt Restructuring Accrual Status [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | 5,300,000 | 7,400,000 | 5,300,000 | 7,400,000 | ' |
Troubled Debt Restructuring Nonaccrual Status [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | 2,800,000 | 2,400,000 | 2,800,000 | 2,400,000 | ' |
Unused Lines of Credit [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Amount Outstanding During Period | ' | ' | 98,700,000 | ' | ' |
Commercial and Industrial Other [Member] | ' | ' | ' | ' | ' |
Loans and the Allowance for Loan Losses [Line Items] | ' | ' | ' | ' | ' |
With no related allowance, Recorded Investment | 122,000 | ' | 122,000 | ' | 196,000 |
Provision for Loan and Lease Losses | ($4,000) | $42,000 | $318,000 | $74,000 | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Beginning balance | $132 | $922 | ($108) | [1] | $1,078 |
Unrealized loss on investment securities available for sale | 482 | -1,171 | 718 | -1,480 | |
Tax benefit | -180 | 398 | -267 | 503 | |
Other comprehensive income (loss) before reclassification | 302 | -773 | 451 | -977 | |
Amounts reclassified from accumulated comprehensive income (loss): | ' | ' | ' | ' | |
Realized loss on investment securities included in net income | 65 | 63 | 211 | 136 | |
Tax effect | -24 | -21 | -79 | -46 | |
Total reclassifications net of tax | 41 | 42 | 132 | 90 | |
Net current period other comprehensive income (loss) | 343 | -731 | 583 | -887 | |
Ending balance | $475 | $191 | $475 | $191 | |
[1] | Derived from audited consolidated financial statements. |
MERGER_WITH_SELECT_BANCORP_INC1
MERGER WITH SELECT BANCORP, INC. (Details Textual) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2014 | Sep. 30, 2013 | |
Select Bancorp, Inc [Member] | ||||
Assets, Total | $525,646 | [1] | $508,282 | $265,300 |
Sale of Stock, Price Per Share | ' | ' | $1.83 | |
Stock Issued During Period, Shares, New Issues | 4,416,668 | ' | ' | |
[1] | Derived from audited consolidated financial statements. |