Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 03, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SELECT BANCORP, INC. | |
Entity Central Index Key | 1,263,762 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | SLCT | |
Entity Common Stock, Shares Outstanding | 11,592,045 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | [1] |
ASSETS | |||
Cash and due from banks | $ 10,795 | $ 12,567 | |
Interest-earning deposits in other banks | 56,401 | 49,842 | |
Certificates of deposit | 1,000 | 1,000 | |
Investment securities available for sale, at fair value | 77,122 | 80,709 | |
Loans | 629,619 | 617,398 | |
Allowance for loan losses | (7,527) | (7,021) | |
NET LOANS | 622,092 | 610,377 | |
Accrued interest receivable | 2,408 | 2,350 | |
Stock in Federal Home Loan Bank of Atlanta (“FHLB”), at cost | 2,318 | 2,112 | |
Other non-marketable securities | 753 | 705 | |
Foreclosed real estate | 1,888 | 1,401 | |
Premises and equipment, net | 18,979 | 19,078 | |
Bank owned life insurance | 21,740 | 21,592 | |
Goodwill | 6,931 | 6,931 | |
Core deposit intangible (“CDI”) | 1,125 | 1,241 | |
Assets held for sale | 846 | 846 | |
Other assets | 5,997 | 6,264 | |
TOTAL ASSETS | 830,395 | 817,015 | |
Deposits: | |||
Demand | 153,732 | 148,304 | |
Savings | 39,696 | 37,353 | |
Money market and NOW | 173,694 | 179,450 | |
Time | 300,532 | 286,054 | |
TOTAL DEPOSITS | 667,654 | 651,161 | |
Short-term debt | 31,218 | 29,673 | |
Long-term debt | 28,559 | 28,703 | |
Accrued interest payable | 252 | 232 | |
Accrued expenses and other liabilities | 3,502 | 2,544 | |
TOTAL LIABILITIES | 731,185 | 712,313 | |
Shareholders' Equity: | |||
Preferred stock, no par value, 5,000,000 shares authorized; 0 and 7,645 shares issued and outstanding at March 31, 2016 and December 31, 2015 | 0 | 7,645 | |
Common stock, $1.00 par value, 25,000,000 shares authorized; 11,584,011 and 11,583,011 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 11,584 | 11,583 | |
Additional paid-in capital | 69,251 | 69,061 | |
Retained earnings | 17,422 | 15,923 | |
Common stock issued to deferred compensation trust, at cost; 260,838 and 253,538 shares at March 31, 2016 and December 31, 2015, respectively | (2,170) | (2,139) | |
Directors’ Deferred Compensation Plan Rabbi Trust | 2,170 | 2,139 | |
Accumulated other comprehensive income | 953 | 490 | |
TOTAL SHAREHOLDERS’ EQUITY | 99,210 | 104,702 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 830,395 | $ 817,015 | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 7,645 |
Preferred Stock, Shares Outstanding | 0 | 7,645 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 11,584,011 | 11,583,011 |
Common stock, shares outstanding | 11,584,011 | 11,583,011 |
Deferred Compensation, Share-based Payments [Member] | ||
Common stock, shares issued | 260,838 | 253,538 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
INTEREST INCOME | ||
Loans | $ 7,965 | $ 7,749 |
Federal funds sold and interest-earning deposits in other banks | 77 | 25 |
Investments | 390 | 468 |
TOTAL INTEREST INCOME | 8,432 | 8,242 |
INTEREST EXPENSE | ||
Money market, NOW and savings deposits | 99 | 99 |
Time deposits | 661 | 721 |
Short-term debt | 34 | 21 |
Long-term debt | 133 | 98 |
TOTAL INTEREST EXPENSE | 927 | 939 |
NET INTEREST INCOME | 7,505 | 7,303 |
PROVISION FOR LOAN LOSSES | 352 | 130 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 7,153 | 7,173 |
NON-INTEREST INCOME | ||
Gain on the sale of securities | 22 | 85 |
Service charges on deposit accounts | 247 | 259 |
Other fees and income | 597 | 519 |
TOTAL NON-INTEREST INCOME | 866 | 863 |
NON-INTEREST EXPENSE | ||
Personnel | 3,202 | 3,061 |
Occupancy and equipment | 574 | 547 |
Deposit insurance | 126 | 161 |
Professional fees | 235 | 355 |
CDI amortization | 116 | 155 |
Information systems | 509 | 363 |
Foreclosure-related expenses | 39 | 24 |
Other | 819 | 704 |
TOTAL NON-INTEREST EXPENSE | 5,620 | 5,370 |
INCOME BEFORE INCOME TAX | 2,399 | 2,666 |
INCOME TAXES | 896 | 923 |
NET INCOME | 1,503 | 1,743 |
DIVIDENDS ON PREFERRED STOCK | 4 | 19 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ 1,499 | $ 1,724 |
NET INCOME PER COMMON SHAREHOLDERS | ||
Basic (in dollars per share) | $ 0.13 | $ 0.15 |
Diluted (in dollars per share) | $ 0.13 | $ 0.15 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic (in shares) | 11,583,440 | 11,426,378 |
Diluted (in shares) | 11,626,609 | 11,510,147 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net income | $ 1,503 | $ 1,743 |
Other comprehensive income (loss): | ||
Unrealized gain on investment securities available for sale | 761 | 608 |
Tax effect | (284) | (234) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 477 | 374 |
Reclassification adjustment for gain included in net income | (22) | (85) |
Tax effect | 8 | 33 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | (14) | (52) |
Total | 463 | 322 |
Total comprehensive income | $ 1,966 | $ 2,065 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional paid-in Capital [Member] | Retained Earnings [Member] | Common Stock Issued to Deferred Compensation Trust [Member] | Deferred Comp Plan [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2014 | $ 97,685 | $ 7,645 | $ 11,378 | $ 68,406 | $ 9,447 | $ (2,121) | $ 2,121 | $ 809 |
Balance (in shares) at Dec. 31, 2014 | 7,645 | 11,377,980 | ||||||
Net income | 1,743 | $ 0 | $ 0 | 0 | 1,743 | 0 | 0 | 0 |
Other comprehensive income, net | 322 | 0 | 0 | 0 | 0 | 0 | 0 | 322 |
Preferred stock dividends paid | (19) | 0 | 0 | 0 | (19) | 0 | 0 | 0 |
Stock option exercises | 352 | $ 0 | $ 81 | 271 | 0 | 0 | 0 | 0 |
Stock option exercises (in shares) | 0 | 80,581 | ||||||
Stock based compensation | 8 | $ 0 | $ 0 | 8 | 0 | 0 | 0 | 0 |
Director equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 39 | (39) | 0 |
Balance at Mar. 31, 2015 | 100,091 | $ 7,645 | $ 11,459 | 68,685 | 11,171 | (2,082) | 2,082 | 1,131 |
Balance (in shares) at Mar. 31, 2015 | 7,645 | 11,458,561 | ||||||
Balance at Dec. 31, 2015 | 104,702 | $ 7,645 | $ 11,583 | 69,061 | 15,923 | (2,139) | 2,139 | 490 |
Balance (in shares) at Dec. 31, 2015 | 7,645 | 11,583,011 | ||||||
Net income | 1,503 | $ 0 | $ 0 | 0 | 1,503 | 0 | 0 | 0 |
Other comprehensive income, net | 463 | 0 | 0 | 0 | 0 | 0 | 0 | 463 |
Preferred stock dividends paid | (4) | 0 | 0 | 0 | (4) | 0 | 0 | 0 |
Preferred stock redemption | (7,645) | $ (7,645) | $ 0 | 0 | 0 | 0 | 0 | 0 |
Preferred stock redemption (in shares) | (7,645) | 0 | ||||||
Stock option exercises | 173 | $ 0 | $ 1 | 172 | 0 | 0 | 0 | 0 |
Stock option exercises (in shares) | 0 | 1,000 | ||||||
Stock based compensation | 18 | $ 0 | $ 0 | 18 | 0 | 0 | 0 | 0 |
Director equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | (31) | 31 | 0 |
Balance at Mar. 31, 2016 | $ 99,210 | $ 0 | $ 11,584 | $ 69,251 | $ 17,422 | $ (2,170) | $ 2,170 | $ 953 |
Balance (in shares) at Mar. 31, 2016 | 0 | 11,584,011 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 1,503 | $ 1,743 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 352 | 130 |
Depreciation and amortization of premises and equipment | 259 | 245 |
Amortization and accretion of investment securities | 194 | 263 |
Amortization of deferred loan fees and costs | (114) | (70) |
Amortization of core deposit intangible | 116 | 155 |
Stock-based compensation | 18 | 8 |
Accretion on acquired loans | (270) | (572) |
Amortization of acquisition premium on time deposits | (203) | (237) |
Net accretion of acquisition discount on borrowings | (77) | (111) |
Increase in cash surrender value of bank owned life insurance | (148) | (155) |
Net loss on sale and write-downs of foreclosed real estate | 32 | 22 |
Net gain on investment security sales | (22) | (85) |
Change in assets and liabilities: | ||
Net change in accrued interest receivable | (58) | 143 |
Net change in other assets | (9) | 835 |
Net change in accrued expenses and other liabilities | 978 | 340 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 2,551 | 2,654 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Redemption (purchase) of FHLB stock | (206) | 37 |
Redemption (purchase) of non-marketable security | (48) | 64 |
Purchase of investment securities available for sale | (1,518) | (7,057) |
Maturities of investment securities available for sale | 1,777 | 2,460 |
Mortgage-backed securities pay-downs | 3,293 | 2,469 |
Proceeds from sale of investment securities available for sale | 602 | 3,443 |
Net change in loans outstanding | (12,236) | (6,298) |
Proceeds from sale of foreclosed real estate | 34 | 376 |
Purchases of premises and equipment | (160) | (37) |
NET CASH USED BY INVESTING ACTIVITIES | (8,462) | (4,543) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | 16,696 | (18,145) |
Proceeds from short-term debt | 16,000 | 0 |
Repayments on short-term debt | (14,422) | (1,754) |
Repayments on long-term debt | (100) | (267) |
Preferred stock dividends paid | (4) | (19) |
Redemption of preferred stock | (7,645) | 0 |
Proceeds from stock option exercises | 173 | 352 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 10,698 | (19,833) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 4,787 | (21,722) |
CASH AND CASH EQUIVALENTS, BEGINNING | 63,409 | 58,410 |
CASH AND CASH EQUIVALENTS, ENDING | 68,196 | 36,688 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 907 | 991 |
Taxes | 0 | 0 |
Non-cash transactions: | ||
Unrealized gains (losses) on investment securities available for sale, net of tax | 463 | 322 |
Transfers from loans to foreclosed real estate | $ 553 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
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. (“Company”) is a bank holding company whose principal business activity consists of ownership of Select Bank & Trust Company (referred to as the “Bank”). In 2004, the Company formed New Century Statutory Trust I, which issued trust preferred securities to provide additional capital for general corporate purposes, including the current and future expansion of the Company. New Century Statutory Trust I is not a consolidated subsidiary of the Company . Select Bank & Trust Company was originally incorporated as New Century Bank on May 19, 2000 and began banking operations on May 24, 2000. Legacy Select Bank & Trust Company was incorporated on July 30, 2004 and was merged with and into the Bank on July 25, 2014 in connection with the Company’s acquisition of Legacy Select. Select Bank & Trust Company continues as the only banking subsidiary of the Company with its headquarters and operations center located in Dunn, NC. The Bank is engaged in general commercial and retail banking in central and eastern North Carolina and operates under the banking laws of North Carolina and the rules and regulations of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. The Bank undergoes periodic examinations by those regulatory authorities. 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 month periods ended March 31, 2016 and 2015, 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 the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2016. 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 2015 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 24, 2016. This quarterly report should be read in conjunction with the Annual Report. Certain reclassifications of the information in prior periods were made to conform to the March 31, 2016 presentation. Such reclassifications had no effect on shareholders’ equity or net income as previously reported. |
PER SHARE RESULTS
PER SHARE RESULTS | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE B - PER SHARE RESULTS 121,300 111,080 Three Months Ended March 31, 2016 2015 Weighted average shares used for basic net income per share 11,583,440 11,426,378 Effect of dilutive stock options 43,169 83,769 Weighted average shares used for diluted net income per share 11,626,609 11,510,147 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE C - RECENT ACCOUNTING PRONOUNCEMENTS The following summarizes recent accounting pronouncements and their expected impact on the Company: In September 2015, the FASB issued Accounting Standard Update 2015-16, Simplifying the Accounting for Measurement Period Adjustments In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic718): Improvements to Employee Share-based Payment Accounting, . In January 2015, the FASB issued ASU 2015-01, Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis In August 2015, the FASB issued ASU 2015-15, InterestImputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In November 2015, the FASB amended the Income Taxes topic of the Accounting Standards Codification to simplify the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The amendments will be effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted as of the beginning of an interim or annual reporting period. The Company will apply the guidance prospectively. The Company does not expect these amendments to have a material effect on its financial statements. In January 2016, the FASB amended the Financial Instruments topic of the Accounting Standards Codification to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company will apply the guidance by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values will be applied prospectively to equity investments that exist as of the date of adoption of the amendments. The Company does not expect these amendments to have a material effect on its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 flow 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 three months ended March 31, 2016. Valuation techniques are consistent with techniques used in prior periods. Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE’s $ 21,243 $ - $ 21,243 $ - Mortgage-backed securities - GSE’s 36,729 - 36,729 - Municipal bonds 19,150 - 19,150 - Total $ 77,122 $ - $ 77,122 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE’s $ 21,226 $ - $ 21,226 $ - Mortgage-backed securities - GSE’s 39,536 - 39,536 - Municipal bonds 19,947 - 19,947 - Total $ 80,709 $ - $ 80,709 $ - 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 March 31, 2016 and December 31, 2015, 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 March 31, 2016, the discounts used are weighted between 4 50 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 foreclosed real estate is the discount applied to appraised values to account for expected liquidation and selling costs. At March 31, 2016, the discounts used ranged between 6 10 Assets held for sale During 2015, a branch facility was taken out service as part of the Company’s branch restructuring plan and reclassified as held for sale. The property is recorded at the remaining book balance of the asset 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. Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,594 $ - $ - $ 6,594 Asset held for sale 846 - - 846 Foreclosed real estate 1,888 - - 1,888 Total $ 9,328 $ - $ - $ 9,328 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,635 $ - $ - $ 6,635 Assets held for sale 846 - - 846 Foreclosed real estate 1,401 - - 1,401 Total $ 8,882 $ - $ - $ 8,882 March 31, 2016 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and due from banks $ 10,795 $ 10,795 $ 10,795 $ - $ - Certificates of deposit 1,000 1,000 1,000 - - Interest-earning deposits in other banks 56,401 56,401 56,401 - - Investment securities available for sale 77,122 77,122 - 77,122 - Loans, net 622,092 629,596 - - 629,596 Accrued interest receivable 2,408 2,408 - - 2,408 Stock in FHLB 2,318 2,318 - - 2,318 Other non-marketable securities 753 753 - - 753 Financial liabilities: Deposits $ 667,654 $ 668,072 $ - $ 668,072 $ - Short-term debt 31,218 31,218 - 31,218 - Long-term debt 28,559 23,574 - 23,574 - Accrued interest payable 252 252 - 252 - December 31, 2015 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 12,567 $ 12,567 $ 12,567 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 49,842 49,842 49,842 - - Investment securities available for sale 80,709 80,709 - 80,709 - Loans, net 610,377 615,754 - - 615,754 Accrued interest receivable 2,350 2,350 - - 2,350 Stock in the FHLB 2,112 2,112 - - 2,112 Other non-marketable securities 705 705 - - 705 Financial liabilities: Deposits $ 651,161 $ 651,255 $ - $ 651,255 $ - Short-term debt 29,673 29,673 - 29,673 - Long-term debt 28,703 23,718 - 23,718 - Accrued interest payable 232 232 - 232 - Cash and Due from Banks, Certificates of Deposit, Interest-Earning Deposits in Other Banks and Federal Funds Sold The carrying amounts for cash and due from banks, certificates of deposit, 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 For certain homogenous categories of loans, such as residential mortgages, fair value is estimated using the quoted market prices for securities backed by similar loans, adjusted for differences in loan characteristics. The fair value of other types of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. However, the values likely do not represent exit prices due to distressed market conditions. Stock in Federal Home Loan Bank of Atlanta The fair value for FHLB stock approximates carrying value, based on the redemption provisions of the FHLB stock. Other Non-Marketable Securities The fair value of equity instruments in other non-marketable securities is assumed to approximate carrying value. Assets Held for Sale The fair value of assets held for sale approximates the 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 Short term debt consists of repurchase agreements and FHLB advances with maturities of less than twelve months. The carrying values of these instruments is a reasonable estimate of fair value. Long-term Debt The fair values of long-term debt instruments 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 | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE E - INVESTMENT SECURITIES The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: March 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,112 $ 157 $ (26) $ 21,243 Mortgage-backed securities GSE’s 35,821 910 (2) 36,729 Municipal bonds 18,669 521 (40) 19,150 $ 75,602 $ 1,588 $ (68) $ 77,122 As of March 31, 2016, accumulated other comprehensive gains included net unrealized gains totaling $ 1.5 567,000 The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,321 $ 101 $ (196) $ 21,226 Mortgage-backed securities GSE’s 39,123 475 (62) 39,536 Municipal bonds 19,484 465 (2) 19,947 $ 79,928 $ 1,041 $ (260) $ 80,709 As of December 31, 2015, accumulated other comprehensive gains included net unrealized gains totaling $ 781,000 291,000 March 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (In thousands) Securities available for sale: Within 1 year $ 2,061 $ 6 $ - $ 2,067 After 1 year but within 5 years 47,042 1,027 (27) 48,042 After 5 years but within 10 years 18,666 257 (5) 18,918 After 10 years 7,833 298 (36) 8,095 $ 75,602 $ 1,588 $ (68) $ 77,122 As of March 31, 2016, accumulated other comprehensive income included net unrealized gains totaling $ 1.5 567,000 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (In thousands) Securities available for sale: Within 1 year $ 1,361 $ 6 $ - $ 1,367 After 1 year but within 5 years 52,577 628 (99) 53,106 After 5 years but within 10 years 17,297 146 (161) 17,282 After 10 years 8,693 261 - 8,954 $ 79,928 $ 1,041 $ (260) $ 80,709 As of December 31, 2015, accumulated other comprehensive income included net unrealized gains totaling $ 781,000 291,000 Securities with a carrying value of $ 44.8 45.2 Since none of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations and the Company has the intent and ability to hold these securities to recovery, no other than temporary impairments were identified for these investments having unrealized losses for the periods ended March 31, 2016 and December 31, 2015. In 2015 the Company incurred a loss on the disposal of one security and has not realized any losses related to securities sales in 2016. March 31, 2016 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 $ 1,008 $ (3) $ 3,306 $ (23) $ 4,314 $ (26) Mortgage-backed securities- GSE’s 1,049 (2) - - 1,049 (2) Municipal bonds 755 (40) - - 755 (40) Total temporarily impaired securities $ 2,812 $ (45) $ 3,306 $ (23) $ 6,118 $ (68) At March 31, 2016, the Company had three AFS securities with an unrealized loss for twelve or more consecutive months. Three U.S. government agency GSE’s had unrealized losses for more than twelve months totaling $23,000 at March 31, 2016. One U.S. government agency GSE, one mortgage-backed GSE, and two municipal bonds had unrealized losses for less than twelve months totaling $45,000 at March 31, 2016. 602,000 22,000 2015 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 $ 7,039 $ (70) $ 7,615 $ (126) $ 14,654 $ (196) Mortgage-backed securities- GSE’s 7,916 (62) - - 7,916 (62) Municipal bonds 111 (2) - - 111 (2) Total temporarily impaired securities $ 15,066 $ (134) $ 7,615 $ (126) $ 22,681 $ (260) At December 31, 2015, the Company had five AFS securities with an unrealized loss for twelve or more consecutive months. Five U.S. government agency GSE’s had unrealized losses for more than twelve months totaling $126,000 at December 31, 2015. Six U.S. government agency GSE’s, one municipal and seven mortgage-backed GSE’s had unrealized losses for less than twelve months totaling $134,000 at December 31, 2015. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE F - LOANS March 31, December 31, Total Loans: 2016 2015 Percent Percent Amount of total Amount of total (Dollars in thousands) Real estate loans: 1-to-4 family residential $ 89,476 14.21 % $ 87,955 14.25 % Commercial real estate 258,888 41.12 % 259,259 41.99 % Multi-family residential 42,609 6.77 % 40,738 6.60 % Construction 111,317 17.68 % 107,688 17.44 % Home equity lines of credit (“HELOC”) 42,017 6.67 % 42,002 6.80 % Total real estate loans 544,307 86.45 % 537,642 87.08 % Other loans: Commercial and industrial 77,984 12.39 % 73,491 11.90 % Loans to individuals 8,347 1.32 % 7,207 1.17 % Overdrafts 58 0.01 % 48 0.01 % Total other loans 86,389 13.72 % 80,746 13.08 % Gross loans 630,696 618,388 Less deferred loan origination fees, net (1,077) (0.17) % (990) (0.16) % Total loans 629,619 100.00 % 617,398 100.00 % Allowance for loan losses (7,527) (7,021) Total loans, net $ 622,092 $ 610,377 Loans are primarily secured by real estate located in eastern and central North Carolina. Real estate loans can be affected by the condition of the local real estate market and by local economic conditions. At March 31, 2016, the Company had pre-approved but unused lines of credit for customers totaling $ 151.8 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. 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 dependent 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 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. 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 required to be 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. Total Loans: March 31, 2016 30+ Non- Total Days Accrual Past Total Past Due Loans Due Current Loans (In thousands) Commercial and industrial $ 315 $ 41 $ 356 $ 77,628 $ 77,984 Construction 113 431 544 110,773 111,317 Multi-family residential 25 370 395 42,214 42,609 Commercial real estate 892 4,448 5,340 253,548 258,888 Loans to individuals & overdrafts 5 - 5 8,400 8,405 1-to-4 family residential 1,404 900 2,304 87,172 89,476 HELOC 90 404 494 41,523 42,017 Deferred loan (fees) cost, net - - - - (1,077) $ 2,844 $ 6,594 $ 9,438 $ 621,258 $ 629,619 There was one loan that amounted to $ 143,000 December 31, 2015 30+ Non- Total Days Accrual Past Total Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 455 $ 13 $ 468 $ 73,023 $ 73,491 Construction - 523 523 107,165 107,688 Multi-family residential 44 431 475 40,263 40,738 Commercial real estate 1,214 3,711 4,925 254,334 259,259 Loans to individuals & overdrafts 14 4 18 7,237 7,255 1-to-4 family residential 650 1,594 2,244 85,711 87,955 HELOC 124 359 483 41,519 42,002 Deferred loan (fees) cost, net - - - - (990) $ 2,501 $ 6,635 $ 9,136 $ 609,252 $ 617,398 There was one loan in the amount of $ 142,000 Impaired Loans of March 31, 2016 and December 31, 2015: Three months ended Contractual March 31, 2016 Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 46 $ 46 $ - $ 23 $ 4 Construction 604 754 - 610 4 Commercial real estate 3,250 4,810 - 4,128 42 Loans to individuals & overdrafts 132 133 - 118 2 HELOC 693 864 - 696 8 1-to-4 family residential 1,263 1,786 - 1,662 17 Subtotal: 5,988 8,393 - 7,237 77 With an allowance recorded: Commercial and industrial - - - - - Construction - - - - - Commercial real estate 3,136 3,783 149 2,172 14 HELOC 48 50 49 24 1 1-to-4 family residential 351 351 13 321 6 Subtotal: 3,535 4,184 211 2,517 21 Totals: Commercial 7,036 9,393 149 6,933 64 Consumer 132 133 - 118 2 Residential 2,355 3,051 62 2,703 32 Grand Total: $ 9,523 $ 12,577 $ 211 $ 9,754 $ 98 Impaired loans at March 31, 2016 were approximately $ 9.5 6.6 2.9 3.5 6.0 1.5 Three months ended As of December 31, 2015 March 31, 2015 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (In thousands) With no related allowance recorded: Commercial and industrial $ 105 $ 106 $ - $ 541 $ 3 Construction 615 764 - 1,177 13 Commercial real estate 5,006 7,229 - 2,712 73 Multi-family residential - - - 2,216 22 HELOC 699 868 - 637 11 1-to-4 family residential 2,061 2,666 - 2,422 31 Subtotal: 8,486 11,633 - 9,705 153 With an allowance recorded: Commercial and industrial 13 13 2 138 - Construction - - - 166 1 Commercial real estate 1,248 1,314 73 4,671 60 Loans to individuals & overdrafts 4 4 4 - - HELOC - - - 283 - 1-to-4 family residential 290 290 15 545 5 Subtotal: 1,555 1,621 94 5,803 66 Totals: Commercial 6,987 9,426 75 11,621 172 Consumer 4 4 4 - - Residential 3,050 3,824 15 3,887 47 Grand Total: $ 10,041 $ 13,254 $ 94 $ 15,508 $ 219 Impaired loans at December 31, 2015 were approximately $ 10.0 6.6 3.1 1.6 8.5 1.6 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 Three months ended March 31, 2016 Three months ended March 31, 2015 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) Extended payment terms: Commercial and industrial 1 $ 46 $ 46 - $ - $ - Total 1 $ 46 $ 46 - $ - $ - 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 twelve month period ended March 31, 2016 and 2015: Twelve months ended Twelve months ended March 31, 2016 March 31, 2015 Number Recorded Number Recorded of loans investment of loans investment (Dollars in thousands) Below market interest rate: 1-to-4 family residential 1 $ 1 - $ - Total 1 1 - - Extended payment terms: Commercial and industrial 1 46 - - Multi-family residential 1 373 - - Commercial real estate - - 2 936 1-to-4 family residential - - 1 38 Total 2 419 3 974 Total 3 $ 420 3 $ 974 At March 31, 2016, the Bank had thirty-four loans with an aggregate balance of $ 4.3 2.2 2.1 At March 31, 2015, the Bank had forty loans with an aggregate balance of $ 6.8 4.0 2.8 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. · 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 March 31, 2016 and December 31, 2015, respectively: Total loans: March 31, 2016 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (In thousands) Superior $ 1,076 $ - $ - $ - Very good 1,348 355 296 - Good 9,029 5,429 28,874 2,404 Acceptable 26,667 18,570 140,460 27,867 Acceptable with care 38,841 86,111 74,946 11,703 Special mention 855 248 8,201 - Substandard 168 604 6,111 635 Doubtful - - - - Loss - - - - $ 77,984 $ 111,317 $ 258,888 $ 42,609 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 82,970 $ 40,758 Special mention 3,528 424 Substandard 2,978 835 $ 89,476 $ 42,017 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 8,391 Non pass 14 $ 8,405 December 31, 2015 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 730 $ - $ - $ - Very good 1,314 355 114 - Good 8,241 5,827 26,538 - Acceptable 25,014 19,059 144,717 32,355 Acceptable with care 37,980 79,817 74,169 7,685 Special mention 58 2,015 7,657 - Substandard 154 615 6,064 698 Doubtful - - - - Loss - - - - $ 73,491 $ 107,688 $ 259,259 $ 40,738 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 80,596 $ 40,770 Special mention 3,678 448 Substandard 3,681 784 $ 87,955 $ 42,002 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,236 Non-pass 19 $ 7,255 Determining the fair value of PCI loans at acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of cash flows expected to be collected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP, there was no carry-over of previously established allowance for credit losses from the acquired company. For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as March 31, 2016 was: March 31, 2016 (Dollars in thousands) Contractually required payments $ 24,903 Nonaccretable difference 1,390 Cash flows expected to be collected 23,513 Accretable yield 2,657 Fair value $ 20,856 For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as March 31, 2016 was: 2016 2015 (dollars in thousands) Accretable yield, beginning of period $ 2,822 $ 3,762 Accretion (270) (328) Reclassification from nonaccretable difference 8 - Other changes, net 97 - Accretable yield, end of period $ 2,657 $ 3,434 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 reflects loan quality trends, including the levels of and trends related to past due loans and economic conditions at the local and national levels. It also considers the quality and risk characteristics of the Company’s loan origination and servicing policies and practices. The Company’s allowance for loan losses model calculates historical loss rates 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 model incorporates 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 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. ⋅ Non-accrual Reflects increased risk of loans with characteristics that merit non-accrual 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 specific loans, 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 likely incurred losses, 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, and calculations are documented. Assigning specific individual reserve amounts, formula reserve factors, or unallocated amounts based on unsupported assumptions or conclusions is not permitted. Three months ended March 31, 2016 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 Loans excluding PCI Balance, beginning of period $ 922 $ 1,386 $ 3,005 $ 605 $ 564 $ 137 $ 393 $ 7,012 Provision for loan losses 132 9 170 (13) 6 19 29 352 Loans charged-off (1) (1) - - - (9) - (11) Recoveries 2 7 42 96 15 3 - 165 Balance, end of period $ 1,055 $ 1,401 $ 3,217 $ 688 $ 585 $ 150 $ 422 $ 7,518 PCI Loans Balance, beginning of period $ - $ - $ - $ - $ 9 $ - $ - $ 9 Provision for loan losses - - - - - - - - Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ - $ - $ - $ - $ 9 $ - $ - $ 9 Total Loans Balance, beginning of period $ 922 $ 1,386 $ 3,005 $ 605 $ 573 $ 137 $ 393 $ 7,021 Provision for loan losses 132 9 170 (13) 6 19 29 352 Loans charged-off (1) (1) - - - (9) - (11) Recoveries 2 7 42 96 15 3 - 165 Balance, end of period $ 1,055 $ 1,401 $ 3,217 $ 688 $ 594 $ 150 $ 422 $ 7,527 Ending Balance: individually evaluated for impairment $ - $ - $ 149 $ 13 $ 49 $ - $ - $ 211 Ending Balance: collectively evaluated for impairment $ 1,055 $ 1,401 $ 3,068 $ 675 $ 545 $ 150 $ 422 $ 7,316 Loans: Ending Balance: collectively evaluated for impairment $ 77,938 $ 110,713 $ 252,502 $ 87,862 $ 41,276 $ 8,273 $ 42,609 $ 621,173 Ending Balance: individually evaluated for impairment $ 46 $ 604 $ 6,386 $ 1,614 $ 741 $ 132 $ - $ 9,523 Ending Balance $ 77,984 $ 111,317 $ 258,888 $ 89,476 $ 42,017 $ 8,405 $ 42,609 $ 630,696 Three months ended March 31, 2015 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 Loans excluding PCI Balance, beginning of period $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 173 102 (40) (40) (42) (3) (20) 130 Loans charged-off - - (29) - (40) (24) - (93) Recoveries 6 4 - 16 3 9 - 38 Balance, end of period $ 982 $ 1,209 $ 2,845 $ 606 $ 851 $ 167 $ 259 $ 6,919 PCI Loans Balance, beginning of period $ - $ - $ - $ - $ - $ - $ - $ - Provision for loan losses - - - - - - - - Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ - $ - $ - $ - $ - $ - $ - $ - Total Loans Balance, beginning of period $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 173 102 (40) (40) (42) (3) (20) 130 Loans charged-off - - (29) - (40) (24) - (93) Recoveries 6 4 - 16 3 9 - 38 Balance, end of period $ 982 $ 1,209 $ 2,845 $ 606 $ 851 $ 167 $ 259 $ 6,919 Ending Balance: individually evaluated for impairment $ 2 $ 79 $ 354 $ 90 $ 50 $ - $ - $ 575 Ending Balance: collectively evaluated for impairment $ 980 $ 1,130 $ 2,491 $ 516 $ 801 $ 167 $ 259 $ 6,344 Loans: Ending Balance: collectively evaluated for impairment $ 65,414 $ 84,747 $ 227,521 $ 84,090 $ 37,560 $ 5,775 $ 39,119 $ 544,226 Ending Balance: individually evaluated for impairment $ 615 $ 1,221 $ 7,233 $ 3,183 $ 921 $ - $ 2,200 $ 15,373 Ending Balance $ 66,029 $ 85,968 $ 234,754 $ 87,273 $ 38,481 $ 5,775 $ 41,319 $ 559,599 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) [Text Block] | NOTE G ACCUMULATED OTHER COMPREHENSIVE INCOME Three Months Ended March 31, 2016 2015 (In thousands) Beginning balance $ 490 $ 809 Unrealized gain on investment securities available for sale 761 608 Tax benefit (284) (234) Other comprehensive income before reclassification 477 374 Amounts reclassified from accumulated comprehensive income: Realized (gain) loss on investment securities included in net income (22) (85) Tax effect 8 33 Total reclassifications net of tax (14) (52) Net current period other comprehensive income 463 322 Ending balance $ 953 $ 1,131 The income statement line items impacted by the reclassifications of realized gains (losses) on investment securities are the gain (loss) on the sale of securities and income tax expense line items in the consolidated statement of operations. |
REPURCHASE AGREEMENTS
REPURCHASE AGREEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Remaining Contractual Maturity Of The Securities Sold Under Agreements To Repurchase By Class Of Collateral Pledged [Text Block] | NOTE H - REPURCHASE AGREEMENTS We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and secure long-term funding needs. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates the Company to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected as short-term borrowings. We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the investments securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of available for sale investment securities pledged as collateral under repurchase agreements totaled $ 9.9 12.1 March 31, 2016 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to 30 30-90 Greater than Total Repurchase agreements U.S. government agencies-GSE’s $ 5,004 $ - $ - $ - $ 5,004 Mortgage-backed Securities-GSEs 4,889 - - - 4,889 Total borrowings $ 9,893 $ - $ - $ - $ 9,893 Gross amount of recognized liabilities for repurchase agreements $ 9,893 December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to 30 30-90 Greater than Total Repurchase agreements U.S. government agencies-GSE’s $ 4,206 $ - $ - $ - $ 4,206 Mortgage-backed Securities-GSEs 7,943 - - - 7,943 Total borrowings $ 12,149 $ - $ - $ - $ 12,149 Gross amount of recognized liabilities for repurchase agreements $ 12,149 |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Real Estate Owned [Text Block] | NOTE I OTHER REAL ESTATE OWNED Three Months Twelve Months Ended Ended March 31, December31, 2016 2015 (Dollars in thousands) Beginning balance January 1 $ 1,401 $ 1,585 Sales (39) (635) Writedowns (27) (139) Transfers 553 590 Ending balance $ 1,888 $ 1,401 At March 31, 2016 and December 31, 2015, the Company had $ 1.9 1.4 |
PER SHARE RESULTS (Tables)
PER SHARE RESULTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and 2015 there were 121,300 111,080 Three Months Ended March 31, 2016 2015 Weighted average shares used for basic net income per share 11,583,440 11,426,378 Effect of dilutive stock options 43,169 83,769 Weighted average shares used for diluted net income per share 11,626,609 11,510,147 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 (in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE’s $ 21,243 $ - $ 21,243 $ - Mortgage-backed securities - GSE’s 36,729 - 36,729 - Municipal bonds 19,150 - 19,150 - Total $ 77,122 $ - $ 77,122 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies GSE’s $ 21,226 $ - $ 21,226 $ - Mortgage-backed securities - GSE’s 39,536 - 39,536 - Municipal bonds 19,947 - 19,947 - Total $ 80,709 $ - $ 80,709 $ - |
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 March 31, 2016 and December 31, 2015 (in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2016 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,594 $ - $ - $ 6,594 Asset held for sale 846 - - 846 Foreclosed real estate 1,888 - - 1,888 Total $ 9,328 $ - $ - $ 9,328 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2015 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,635 $ - $ - $ 6,635 Assets held for sale 846 - - 846 Foreclosed real estate 1,401 - - 1,401 Total $ 8,882 $ - $ - $ 8,882 |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | The following table presents the carrying values and estimated fair values of the Company’s financial instruments at March 31, 2016 and December 31, 2015: March 31, 2016 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (In thousands) Financial assets: Cash and due from banks $ 10,795 $ 10,795 $ 10,795 $ - $ - Certificates of deposit 1,000 1,000 1,000 - - Interest-earning deposits in other banks 56,401 56,401 56,401 - - Investment securities available for sale 77,122 77,122 - 77,122 - Loans, net 622,092 629,596 - - 629,596 Accrued interest receivable 2,408 2,408 - - 2,408 Stock in FHLB 2,318 2,318 - - 2,318 Other non-marketable securities 753 753 - - 753 Financial liabilities: Deposits $ 667,654 $ 668,072 $ - $ 668,072 $ - Short-term debt 31,218 31,218 - 31,218 - Long-term debt 28,559 23,574 - 23,574 - Accrued interest payable 252 252 - 252 - December 31, 2015 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 12,567 $ 12,567 $ 12,567 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 49,842 49,842 49,842 - - Investment securities available for sale 80,709 80,709 - 80,709 - Loans, net 610,377 615,754 - - 615,754 Accrued interest receivable 2,350 2,350 - - 2,350 Stock in the FHLB 2,112 2,112 - - 2,112 Other non-marketable securities 705 705 - - 705 Financial liabilities: Deposits $ 651,161 $ 651,255 $ - $ 651,255 $ - Short-term debt 29,673 29,673 - 29,673 - Long-term debt 28,703 23,718 - 23,718 - Accrued interest payable 232 232 - 232 - |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: March 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,112 $ 157 $ (26) $ 21,243 Mortgage-backed securities GSE’s 35,821 910 (2) 36,729 Municipal bonds 18,669 521 (40) 19,150 $ 75,602 $ 1,588 $ (68) $ 77,122 The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 21,321 $ 101 $ (196) $ 21,226 Mortgage-backed securities GSE’s 39,123 475 (62) 39,536 Municipal bonds 19,484 465 (2) 19,947 $ 79,928 $ 1,041 $ (260) $ 80,709 |
Investments Classified by Contractual Maturity Date [Table Text Block] | March 31, 2016 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (In thousands) Securities available for sale: Within 1 year $ 2,061 $ 6 $ - $ 2,067 After 1 year but within 5 years 47,042 1,027 (27) 48,042 After 5 years but within 10 years 18,666 257 (5) 18,918 After 10 years 7,833 298 (36) 8,095 $ 75,602 $ 1,588 $ (68) $ 77,122 As of March 31, 2016, accumulated other comprehensive income included net unrealized gains totaling $ 1.5 567 December 31, 2015 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (In thousands) Securities available for sale: Within 1 year $ 1,361 $ 6 $ - $ 1,367 After 1 year but within 5 years 52,577 628 (99) 53,106 After 5 years but within 10 years 17,297 146 (161) 17,282 After 10 years 8,693 261 - 8,954 $ 79,928 $ 1,041 $ (260) $ 80,709 |
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 March 31, 2016 and December 31, 2015. March 31, 2016 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 $ 1,008 $ (3) $ 3,306 $ (23) $ 4,314 $ (26) Mortgage-backed securities- GSE’s 1,049 (2) - - 1,049 (2) Municipal bonds 755 (40) - - 755 (40) Total temporarily impaired securities $ 2,812 $ (45) $ 3,306 $ (23) $ 6,118 $ (68) 2015 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 $ 7,039 $ (70) $ 7,615 $ (126) $ 14,654 $ (196) Mortgage-backed securities- GSE’s 7,916 (62) - - 7,916 (62) Municipal bonds 111 (2) - - 111 (2) Total temporarily impaired securities $ 15,066 $ (134) $ 7,615 $ (126) $ 22,681 $ (260) |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015: March 31, December 31, Total Loans: 2016 2015 Percent Percent Amount of total Amount of total (Dollars in thousands) Real estate loans: 1-to-4 family residential $ 89,476 14.21 % $ 87,955 14.25 % Commercial real estate 258,888 41.12 % 259,259 41.99 % Multi-family residential 42,609 6.77 % 40,738 6.60 % Construction 111,317 17.68 % 107,688 17.44 % Home equity lines of credit (“HELOC”) 42,017 6.67 % 42,002 6.80 % Total real estate loans 544,307 86.45 % 537,642 87.08 % Other loans: Commercial and industrial 77,984 12.39 % 73,491 11.90 % Loans to individuals 8,347 1.32 % 7,207 1.17 % Overdrafts 58 0.01 % 48 0.01 % Total other loans 86,389 13.72 % 80,746 13.08 % Gross loans 630,696 618,388 Less deferred loan origination fees, net (1,077) (0.17) % (990) (0.16) % Total loans 629,619 100.00 % 617,398 100.00 % Allowance for loan losses (7,527) (7,021) Total loans, net $ 622,092 $ 610,377 |
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 March 31, 2016 and December 31, 2015, respectively: Total Loans: March 31, 2016 30+ Non- Total Days Accrual Past Total Past Due Loans Due Current Loans (In thousands) Commercial and industrial $ 315 $ 41 $ 356 $ 77,628 $ 77,984 Construction 113 431 544 110,773 111,317 Multi-family residential 25 370 395 42,214 42,609 Commercial real estate 892 4,448 5,340 253,548 258,888 Loans to individuals & overdrafts 5 - 5 8,400 8,405 1-to-4 family residential 1,404 900 2,304 87,172 89,476 HELOC 90 404 494 41,523 42,017 Deferred loan (fees) cost, net - - - - (1,077) $ 2,844 $ 6,594 $ 9,438 $ 621,258 $ 629,619 There was one loan that amounted to $ 143,000 December 31, 2015 30+ Non- Total Days Accrual Past Total Past Due Loans Due Current Loans (dollars in thousands) Total Loans Commercial and industrial $ 455 $ 13 $ 468 $ 73,023 $ 73,491 Construction - 523 523 107,165 107,688 Multi-family residential 44 431 475 40,263 40,738 Commercial real estate 1,214 3,711 4,925 254,334 259,259 Loans to individuals & overdrafts 14 4 18 7,237 7,255 1-to-4 family residential 650 1,594 2,244 85,711 87,955 HELOC 124 359 483 41,519 42,002 Deferred loan (fees) cost, net - - - - (990) $ 2,501 $ 6,635 $ 9,136 $ 609,252 $ 617,398 |
Impaired Financing Receivables [Table Text Block] | The following tables present information on loans that were considered to be impaired as of March 31, 2016 and December 31, 2015: Three months ended Contractual March 31, 2016 Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 46 $ 46 $ - $ 23 $ 4 Construction 604 754 - 610 4 Commercial real estate 3,250 4,810 - 4,128 42 Loans to individuals & overdrafts 132 133 - 118 2 HELOC 693 864 - 696 8 1-to-4 family residential 1,263 1,786 - 1,662 17 Subtotal: 5,988 8,393 - 7,237 77 With an allowance recorded: Commercial and industrial - - - - - Construction - - - - - Commercial real estate 3,136 3,783 149 2,172 14 HELOC 48 50 49 24 1 1-to-4 family residential 351 351 13 321 6 Subtotal: 3,535 4,184 211 2,517 21 Totals: Commercial 7,036 9,393 149 6,933 64 Consumer 132 133 - 118 2 Residential 2,355 3,051 62 2,703 32 Grand Total: $ 9,523 $ 12,577 $ 211 $ 9,754 $ 98 Impaired loans at March 31, 2016 were approximately $ 9.5 6.6 2.9 3.5 6.0 1.5 Three months ended As of December 31, 2015 March 31, 2015 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (In thousands) With no related allowance recorded: Commercial and industrial $ 105 $ 106 $ - $ 541 $ 3 Construction 615 764 - 1,177 13 Commercial real estate 5,006 7,229 - 2,712 73 Multi-family residential - - - 2,216 22 HELOC 699 868 - 637 11 1-to-4 family residential 2,061 2,666 - 2,422 31 Subtotal: 8,486 11,633 - 9,705 153 With an allowance recorded: Commercial and industrial 13 13 2 138 - Construction - - - 166 1 Commercial real estate 1,248 1,314 73 4,671 60 Loans to individuals & overdrafts 4 4 4 - - HELOC - - - 283 - 1-to-4 family residential 290 290 15 545 5 Subtotal: 1,555 1,621 94 5,803 66 Totals: Commercial 6,987 9,426 75 11,621 172 Consumer 4 4 4 - - Residential 3,050 3,824 15 3,887 47 Grand Total: $ 10,041 $ 13,254 $ 94 $ 15,508 $ 219 |
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 first quarter of 2016 and 2015: Three months ended March 31, 2016 Three months ended March 31, 2015 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) Extended payment terms: Commercial and industrial 1 $ 46 $ 46 - $ - $ - Total 1 $ 46 $ 46 - $ - $ - 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 twelve month period ended March 31, 2016 and 2015: Twelve months ended Twelve months ended March 31, 2016 March 31, 2015 Number Recorded Number Recorded of loans investment of loans investment (Dollars in thousands) Below market interest rate: 1-to-4 family residential 1 $ 1 - $ - Total 1 1 - - Extended payment terms: Commercial and industrial 1 46 - - Multi-family residential 1 373 - - Commercial real estate - - 2 936 1-to-4 family residential - - 1 38 Total 2 419 3 974 Total 3 $ 420 3 $ 974 |
Financing Receivable Credit Quality Indicators [Table Text Block] | March 31, 2016 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (In thousands) Superior $ 1,076 $ - $ - $ - Very good 1,348 355 296 - Good 9,029 5,429 28,874 2,404 Acceptable 26,667 18,570 140,460 27,867 Acceptable with care 38,841 86,111 74,946 11,703 Special mention 855 248 8,201 - Substandard 168 604 6,111 635 Doubtful - - - - Loss - - - - $ 77,984 $ 111,317 $ 258,888 $ 42,609 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 82,970 $ 40,758 Special mention 3,528 424 Substandard 2,978 835 $ 89,476 $ 42,017 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 8,391 Non pass 14 $ 8,405 Total Loans: December 31, 2015 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 730 $ - $ - $ - Very good 1,314 355 114 - Good 8,241 5,827 26,538 - Acceptable 25,014 19,059 144,717 32,355 Acceptable with care 37,980 79,817 74,169 7,685 Special mention 58 2,015 7,657 - Substandard 154 615 6,064 698 Doubtful - - - - Loss - - - - $ 73,491 $ 107,688 $ 259,259 $ 40,738 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 80,596 $ 40,770 Special mention 3,678 448 Substandard 3,681 784 $ 87,955 $ 42,002 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 7,236 Non-pass 19 $ 7,255 |
Schedule of Fair Values of Expected Cash Flows and Loan Related Payments to Acquired Company at the Time of Merger [Table Text Block] | For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as March 31, 2016 was: March 31, 2016 (Dollars in thousands) Contractually required payments $ 24,903 Nonaccretable difference 1,390 Cash flows expected to be collected 23,513 Accretable yield 2,657 Fair value $ 20,856 |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Table Text Block] | For PCI loans acquired from Legacy Select, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as March 31, 2016 was: 2016 2015 (dollars in thousands) Accretable yield, beginning of period $ 2,822 $ 3,762 Accretion (270) (328) Reclassification from nonaccretable difference 8 - Other changes, net 97 - Accretable yield, end of period $ 2,657 $ 3,434 |
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 periods ended March 31, 2016 and March 31, 2015, respectively: Three months ended March 31, 2016 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 Loans excluding PCI Balance, beginning of period $ 922 $ 1,386 $ 3,005 $ 605 $ 564 $ 137 $ 393 $ 7,012 Provision for loan losses 132 9 170 (13) 6 19 29 352 Loans charged-off (1) (1) - - - (9) - (11) Recoveries 2 7 42 96 15 3 - 165 Balance, end of period $ 1,055 $ 1,401 $ 3,217 $ 688 $ 585 $ 150 $ 422 $ 7,518 PCI Loans Balance, beginning of period $ - $ - $ - $ - $ 9 $ - $ - $ 9 Provision for loan losses - - - - - - - - Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ - $ - $ - $ - $ 9 $ - $ - $ 9 Total Loans Balance, beginning of period $ 922 $ 1,386 $ 3,005 $ 605 $ 573 $ 137 $ 393 $ 7,021 Provision for loan losses 132 9 170 (13) 6 19 29 352 Loans charged-off (1) (1) - - - (9) - (11) Recoveries 2 7 42 96 15 3 - 165 Balance, end of period $ 1,055 $ 1,401 $ 3,217 $ 688 $ 594 $ 150 $ 422 $ 7,527 Ending Balance: individually evaluated for impairment $ - $ - $ 149 $ 13 $ 49 $ - $ - $ 211 Ending Balance: collectively evaluated for impairment $ 1,055 $ 1,401 $ 3,068 $ 675 $ 545 $ 150 $ 422 $ 7,316 Loans: Ending Balance: collectively evaluated for impairment $ 77,938 $ 110,713 $ 252,502 $ 87,862 $ 41,276 $ 8,273 $ 42,609 $ 621,173 Ending Balance: individually evaluated for impairment $ 46 $ 604 $ 6,386 $ 1,614 $ 741 $ 132 $ - $ 9,523 Ending Balance $ 77,984 $ 111,317 $ 258,888 $ 89,476 $ 42,017 $ 8,405 $ 42,609 $ 630,696 Three months ended March 31, 2015 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 Loans excluding PCI Balance, beginning of period $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 173 102 (40) (40) (42) (3) (20) 130 Loans charged-off - - (29) - (40) (24) - (93) Recoveries 6 4 - 16 3 9 - 38 Balance, end of period $ 982 $ 1,209 $ 2,845 $ 606 $ 851 $ 167 $ 259 $ 6,919 PCI Loans Balance, beginning of period $ - $ - $ - $ - $ - $ - $ - $ - Provision for loan losses - - - - - - - - Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ - $ - $ - $ - $ - $ - $ - $ - Total Loans Balance, beginning of period $ 803 $ 1,103 $ 2,914 $ 630 $ 930 $ 185 $ 279 $ 6,844 Provision for loan losses 173 102 (40) (40) (42) (3) (20) 130 Loans charged-off - - (29) - (40) (24) - (93) Recoveries 6 4 - 16 3 9 - 38 Balance, end of period $ 982 $ 1,209 $ 2,845 $ 606 $ 851 $ 167 $ 259 $ 6,919 Ending Balance: individually evaluated for impairment $ 2 $ 79 $ 354 $ 90 $ 50 $ - $ - $ 575 Ending Balance: collectively evaluated for impairment $ 980 $ 1,130 $ 2,491 $ 516 $ 801 $ 167 $ 259 $ 6,344 Loans: Ending Balance: collectively evaluated for impairment $ 65,414 $ 84,747 $ 227,521 $ 84,090 $ 37,560 $ 5,775 $ 39,119 $ 544,226 Ending Balance: individually evaluated for impairment $ 615 $ 1,221 $ 7,233 $ 3,183 $ 921 $ - $ 2,200 $ 15,373 Ending Balance $ 66,029 $ 85,968 $ 234,754 $ 87,273 $ 38,481 $ 5,775 $ 41,319 $ 559,599 |
ACCUMULATED OTHER COMPREHENSI21
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 ended March 31, 2016 and 2015. Three Months Ended March 31, 2016 2015 (In thousands) Beginning balance $ 490 $ 809 Unrealized gain on investment securities available for sale 761 608 Tax benefit (284) (234) Other comprehensive income before reclassification 477 374 Amounts reclassified from accumulated comprehensive income: Realized (gain) loss on investment securities included in net income (22) (85) Tax effect 8 33 Total reclassifications net of tax (14) (52) Net current period other comprehensive income 463 322 Ending balance $ 953 $ 1,131 |
REPURCHASE AGREEMENTS (Tables)
REPURCHASE AGREEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Remaining Contractual Maturity Of The Securities Sold Under Agreements To Repurchase By Class Of Collateral Pledged [Table Text Block] | The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in short-term borrowings as of March 31, 2016 and December 31, 2015 is presented in the following tables. March 31, 2016 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to 30 30-90 Greater than Total Repurchase agreements U.S. government agencies-GSE’s $ 5,004 $ - $ - $ - $ 5,004 Mortgage-backed Securities-GSEs 4,889 - - - 4,889 Total borrowings $ 9,893 $ - $ - $ - $ 9,893 Gross amount of recognized liabilities for repurchase agreements $ 9,893 December 31, 2015 Remaining Contractual Maturity of the Agreements (Dollars in thousands) Overnight and Up to 30 30-90 Greater than Total Repurchase agreements U.S. government agencies-GSE’s $ 4,206 $ - $ - $ - $ 4,206 Mortgage-backed Securities-GSEs 7,943 - - - 7,943 Total borrowings $ 12,149 $ - $ - $ - $ 12,149 Gross amount of recognized liabilities for repurchase agreements $ 12,149 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule Of Real Estate Owned Properties [Table Text Block] | The following table explains changes in other real estate owned during the three months ended March 31, 2016 and 2015 (dollars in thousands): Three Months Twelve Months Ended Ended March 31, December31, 2016 2015 (Dollars in thousands) Beginning balance January 1 $ 1,401 $ 1,585 Sales (39) (635) Writedowns (27) (139) Transfers 553 590 Ending balance $ 1,888 $ 1,401 |
PER SHARE RESULTS (Details)
PER SHARE RESULTS (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted Average Number Of Shares [Line Items] | ||
Weighted average shares used for basic net income per share | 11,583,440 | 11,426,378 |
Effect of dilutive stock options | 43,169 | 83,769 |
Weighted average shares used for diluted net income per share | 11,626,609 | 11,510,147 |
PER SHARE RESULTS (Details Text
PER SHARE RESULTS (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 121,300 | 111,080 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure, Recurring | $ 77,122 | $ 80,709 |
US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 21,243 | 21,226 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 36,729 | 39,536 |
Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 19,150 | 19,947 |
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 | 77,122 | 80,709 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure, Recurring | 21,243 | 21,226 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Assets, Fair Value Disclosure, Recurring | 36,729 | 39,536 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure, Recurring | 19,150 | 19,947 |
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 (Deta27
FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets, Fair Value Disclosure, Nonrecurring | $ 9,328 | $ 8,882 |
Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,594 | 6,635 |
Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 846 | 846 |
Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 1,888 | 1,401 |
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] | Assets held for sale [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] | Assets held for sale [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 | 9,328 | 8,882 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 6,594 | 6,635 |
Fair Value, Inputs, Level 3 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | 846 | 846 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,888 | $ 1,401 |
FAIR VALUE MEASUREMENTS (Deta28
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial assets: | |||
Cash and due from banks | $ 10,795 | $ 12,567 | [1] |
Certificates of deposit | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 56,401 | 49,842 | |
Investment securities available for sale | 77,122 | 80,709 | |
Loans, net | 622,092 | 610,377 | |
Accrued interest receivable | 2,408 | 2,350 | [1] |
Stock in FHLB | 2,318 | 2,112 | [1] |
Other non-marketable securities | 753 | 705 | |
Financial liabilities: | |||
Deposits | 667,654 | 651,161 | [1] |
Short-term debt | 31,218 | 29,673 | [1] |
Long-term debt | 28,559 | 28,703 | [1] |
Accrued interest payable | 252 | 232 | [1] |
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 10,795 | 12,567 | |
Certificates of deposit | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 56,401 | 49,842 | |
Investment securities available for sale | 77,122 | 80,709 | |
Loans, net | 629,596 | 615,754 | |
Accrued interest receivable | 2,408 | 2,350 | |
Stock in FHLB | 2,318 | 2,112 | |
Other non-marketable securities | 753 | 705 | |
Financial liabilities: | |||
Deposits | 668,072 | 651,255 | |
Short-term debt | 31,218 | 29,673 | |
Long-term debt | 23,574 | 23,718 | |
Accrued interest payable | 252 | 232 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 10,795 | 12,567 | |
Certificates of deposit | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 56,401 | 49,842 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in 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 | |
Certificates of deposit | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Investment securities available for sale | 77,122 | 80,709 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Financial liabilities: | |||
Deposits | 668,072 | 651,255 | |
Short-term debt | 31,218 | 29,673 | |
Long-term debt | 23,574 | 23,718 | |
Accrued interest payable | 252 | 232 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Certificates of deposit | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Investment securities available for sale | 0 | 0 | |
Loans, net | 629,596 | 615,754 | |
Accrued interest receivable | 2,408 | 2,350 | |
Stock in FHLB | 2,318 | 2,112 | |
Other non-marketable securities | 753 | 705 | |
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Deta29
FAIR VALUE MEASUREMENTS (Details Textual) | Mar. 31, 2016 |
Minimum [Member] | |
Percentage Of Discount From Impaired Loans | 4.00% |
Maximum [Member] | |
Percentage Of Discount From Impaired Loans | 50.00% |
Fair Value [Member] | Minimum [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 6.00% |
Fair Value [Member] | Maximum [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 10.00% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Securities available for sale: | |||
Amortized cost | $ 75,602 | $ 79,928 | |
Gross unrealized gains | 1,588 | 1,041 | |
Gross unrealized losses | (68) | (260) | |
Fair value | 77,122 | 80,709 | [1] |
U.S. government agencies - GSE’s [Member] | |||
Securities available for sale: | |||
Amortized cost | 21,112 | 21,321 | |
Gross unrealized gains | 157 | 101 | |
Gross unrealized losses | (26) | (196) | |
Fair value | 21,243 | 21,226 | |
Mortgage-backed securities - GSE’s [Member] | |||
Securities available for sale: | |||
Amortized cost | 35,821 | 39,123 | |
Gross unrealized gains | 910 | 475 | |
Gross unrealized losses | (2) | (62) | |
Fair value | 36,729 | 39,536 | |
Municipal bonds [Member] | |||
Securities available for sale: | |||
Amortized cost | 18,669 | 19,484 | |
Gross unrealized gains | 521 | 465 | |
Gross unrealized losses | (40) | (2) | |
Fair value | $ 19,150 | $ 19,947 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized cost, Within 1 year | $ 2,061 | $ 1,361 | |
Gross unrealized gains, Within 1 year | 6 | 6 | |
Gross unrealized losses, Within 1 year | 0 | 0 | |
Fair value, Within 1 year | 2,067 | 1,367 | |
Amortized cost, After 1 year but within 5 years | 47,042 | 52,577 | |
Gross unrealized gains, After 1 year but within 5 years | 1,027 | 628 | |
Gross unrealized losses, After 1 year but within 5 years | (27) | (99) | |
Fair value, After 1 year but within 5 years | 48,042 | 53,106 | |
Amortized cost, After 5 years but within 10 years | 18,666 | 17,297 | |
Gross unrealized gains, After 5 years but within 10 years | 257 | 146 | |
Gross unrealized losses, After 5 years but within 10 years | (5) | (161) | |
Fair value, After 5 years but within 10 years | 18,918 | 17,282 | |
Amortized cost, After 10 years | 7,833 | 8,693 | |
Gross unrealized gains, After 10 years | 298 | 261 | |
Gross unrealized losses, After 10 years | (36) | 0 | |
Fair value, After 10 years | 8,095 | 8,954 | |
Available-for-sale Securities, Amortized cost | 75,602 | 79,928 | |
Available-for-sale Securities, Gross unrealized gains | 1,588 | 1,041 | |
Available-for-sale Securities, Gross unrealized losses | (68) | (260) | |
Available-for-sale Securities, Fair value | $ 77,122 | $ 80,709 | [1] |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Detail32
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
U.S. government agencies - GSE’s [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | $ 1,008 | $ 7,039 |
Less Than 12 Months Unrealized losses | (3) | (70) |
12 Months or More Fair value | 3,306 | 7,615 |
12 Months or More Unrealized losses | (23) | (126) |
Total Fair value | 4,314 | 14,654 |
Total Unrealized losses | (26) | (196) |
Mortgage-backed securities - GSE’s [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 1,049 | 7,916 |
Less Than 12 Months Unrealized losses | (2) | (62) |
12 Months or More Fair value | 0 | 0 |
12 Months or More Unrealized losses | 0 | 0 |
Total Fair value | 1,049 | 7,916 |
Total Unrealized losses | (2) | (62) |
Municipal bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 755 | 111 |
Less Than 12 Months Unrealized losses | (40) | (2) |
12 Months or More Fair value | 0 | 0 |
12 Months or More Unrealized losses | 0 | 0 |
Total Fair value | 755 | 111 |
Total Unrealized losses | (40) | (2) |
Total temporarily impaired securities [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 2,812 | 15,066 |
Less Than 12 Months Unrealized losses | (45) | (134) |
12 Months or More Fair value | 3,306 | 7,615 |
12 Months or More Unrealized losses | (23) | (126) |
Total Fair value | 6,118 | 22,681 |
Total Unrealized losses | $ (68) | $ (260) |
INVESTMENT SECURITIES (Detail33
INVESTMENT SECURITIES (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 1,500 | $ 781 | |
Deferred Income Taxes and Other Liabilities, Noncurrent | 567 | 291 | |
US Government Securities, at Carrying Value | $ 44,800 | $ 45,200 | |
Trading Securities, Description | At March 31, 2016, the Company had three AFS securities with an unrealized loss for twelve or more consecutive months. Three U.S. government agency GSEs had unrealized losses for more than twelve months totaling $23,000 at March 31, 2016. One U.S. government agency GSE, one mortgage-backed GSE, and two municipal bonds had unrealized losses for less than twelve months totaling $45,000 at March 31, 2016. | At December 31, 2015, the Company had five AFS securities with an unrealized loss for twelve or more consecutive months. Five U.S. government agency GSEs had unrealized losses for more than twelve months totaling $126,000 at December 31, 2015. Six U.S. government agency GSEs, one municipal and seven mortgage-backed GSEs had unrealized losses for less than twelve months totaling $134,000 at December 31, 2015. | |
Gain (Loss) on Sale of Securities, Net | $ 22 | $ 85 | |
Proceeds from Sale of Available-for-sale Securities, Total | $ 602 | $ 3,443 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 630,696 | $ 618,388 | ||
Less deferred loan origination fees, net | (1,077) | (990) | ||
Total loans | 629,619 | 617,398 | [1] | $ 559,599 |
Allowance for loan losses | (7,527) | (7,021) | [1] | |
Total loans, net | $ 622,092 | $ 610,377 | [1] | |
Less Percentage of deferred loan origination fees, net | (0.17%) | (0.16%) | ||
Percent of total | 100.00% | 100.00% | ||
1- to- 4 family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 89,476 | $ 87,955 | 87,273 | |
Allowance for loan losses | 0 | |||
Percent of total | 14.21% | 14.25% | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 258,888 | $ 259,259 | 234,754 | |
Percent of total | 41.12% | 41.99% | ||
Multi-family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 42,609 | $ 40,738 | 41,319 | |
Percent of total | 6.77% | 6.60% | ||
Construction Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 111,317 | $ 107,688 | 85,968 | |
Percent of total | 17.68% | 17.44% | ||
Home Equity Line of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 42,017 | $ 42,002 | 38,481 | |
Percent of total | 6.67% | 6.80% | ||
Total real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 544,307 | $ 537,642 | ||
Percent of total | 86.45% | 87.08% | ||
Commercial and industrial Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 77,984 | $ 73,491 | $ 66,029 | |
Percent of total | 12.39% | 11.90% | ||
Loans to individuals Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 8,347 | $ 7,207 | ||
Percent of total | 1.32% | 1.17% | ||
Overdrafts Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 58 | $ 48 | ||
Percent of total | 0.01% | 0.01% | ||
Total other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 86,389 | $ 80,746 | ||
Percent of total | 13.72% | 13.08% | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Deferred loan (fees) cost, net | $ (1,077) | $ (990) | ||
Total Loans | 629,619 | 617,398 | [1] | $ 559,599 |
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 6,594 | 6,635 | ||
Total Past DueTotal Past DueTotal Past Due | 9,438 | 9,136 | ||
Current | 621,258 | 609,252 | ||
Deferred loan (fees) cost, net | (1,077) | (990) | ||
Total Loans | 629,619 | 617,398 | ||
Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 2,844 | 2,501 | ||
Deferred loan (fees) cost, net | 0 | 0 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 77,984 | 73,491 | 66,029 | |
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 41 | 13 | ||
Total Past DueTotal Past DueTotal Past Due | 356 | 468 | ||
Current | 77,628 | 73,023 | ||
Total Loans | 77,984 | 73,491 | ||
Commercial and Industrial [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 315 | 455 | ||
Construction Loans Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 111,317 | 107,688 | 85,968 | |
Construction Loans Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 431 | 523 | ||
Total Past DueTotal Past DueTotal Past Due | 544 | 523 | ||
Current | 110,773 | 107,165 | ||
Total Loans | 111,317 | 107,688 | ||
Construction Loans Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 113 | 0 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 42,609 | 40,738 | 41,319 | |
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 370 | 431 | ||
Total Past DueTotal Past DueTotal Past Due | 395 | 475 | ||
Current | 42,214 | 40,263 | ||
Total Loans | 42,609 | 40,738 | ||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 25 | 44 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 258,888 | 259,259 | 234,754 | |
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 4,448 | 3,711 | ||
Total Past DueTotal Past DueTotal Past Due | 5,340 | 4,925 | ||
Current | 253,548 | 254,334 | ||
Total Loans | 258,888 | 259,259 | ||
Commercial Real Estate [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 892 | 1,214 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 8,405 | 5,775 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 0 | 4 | ||
Total Past DueTotal Past DueTotal Past Due | 5 | 18 | ||
Current | 8,400 | 7,237 | ||
Total Loans | 8,405 | 7,255 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 5 | 14 | ||
Family Residential Real Estate 1 to 4 [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 89,476 | 87,955 | 87,273 | |
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 900 | 1,594 | ||
Total Past DueTotal Past DueTotal Past Due | 2,304 | 2,244 | ||
Current | 87,172 | 85,711 | ||
Total Loans | 89,476 | 87,955 | ||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | 1,404 | 650 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 42,017 | 42,002 | $ 38,481 | |
Home Equity Line of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Non-Accrual Loans | 404 | 359 | ||
Total Past DueTotal Past DueTotal Past Due | 494 | 483 | ||
Current | 41,523 | 41,519 | ||
Total Loans | 42,017 | 42,002 | ||
Home Equity Line of Credit [Member] | Total Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past DueTotal Past DueTotal Past Due | $ 90 | $ 124 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | $ 5,988 | $ 8,486 | |
With no related allowance, Contractual Unpaid Principal Balance | 8,393 | 11,633 | |
With no related allowance, Average Recorded Investment | 7,237 | $ 9,705 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 77 | 153 | |
With an related allowance, Recorded Investment | 3,535 | 1,555 | |
With an related allowance, Contractual Unpaid Principal Balance | 4,184 | 1,621 | |
Related Allowance | 211 | 94 | |
With an related allowance, Average Recorded Investment | 2,517 | 5,803 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 21 | 66 | |
Recorded Investment Total | 9,523 | 10,041 | |
Contractual Unpaid Principal Balance Total | 12,577 | 13,254 | |
Average Recorded Investment Total | 9,754 | 15,508 | |
Interest Income Recognized on impaired Loans Total | 98 | 219 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 62 | 15 | |
Recorded Investment Total | 2,355 | 3,050 | |
Contractual Unpaid Principal Balance Total | 3,051 | 3,824 | |
Average Recorded Investment Total | 2,703 | 3,887 | |
Interest Income Recognized on impaired Loans Total | 32 | 47 | |
Commercial Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 149 | 75 | |
Recorded Investment Total | 7,036 | 6,987 | |
Contractual Unpaid Principal Balance Total | 9,393 | 9,426 | |
Average Recorded Investment Total | 6,933 | 11,621 | |
Interest Income Recognized on impaired Loans Total | 64 | 172 | |
Consumer Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 4 | |
Recorded Investment Total | 132 | 4 | |
Contractual Unpaid Principal Balance Total | 133 | 4 | |
Average Recorded Investment Total | 118 | 0 | |
Interest Income Recognized on impaired Loans Total | 2 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 46 | 105 | |
With no related allowance, Contractual Unpaid Principal Balance | 46 | 106 | |
With no related allowance, Average Recorded Investment | 23 | 541 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 4 | 3 | |
With an related allowance, Recorded Investment | 0 | 13 | |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 13 | |
Related Allowance | 0 | 2 | |
With an related allowance, Average Recorded Investment | 0 | 138 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | |
Construction Loans Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 604 | 615 | |
With no related allowance, Contractual Unpaid Principal Balance | 754 | 764 | |
With no related allowance, Average Recorded Investment | 610 | 1,177 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 4 | 13 | |
With an related allowance, Recorded Investment | 0 | 0 | |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
With an related allowance, Average Recorded Investment | 0 | 166 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 1 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 3,250 | 5,006 | |
With no related allowance, Contractual Unpaid Principal Balance | 4,810 | 7,229 | |
With no related allowance, Average Recorded Investment | 4,128 | 2,712 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 42 | 73 | |
With an related allowance, Recorded Investment | 3,136 | 1,248 | |
With an related allowance, Contractual Unpaid Principal Balance | 3,783 | 1,314 | |
Related Allowance | 149 | 73 | |
With an related allowance, Average Recorded Investment | 2,172 | 4,671 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 14 | 60 | |
Loans to Individuals and Overdrafts [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 132 | ||
With no related allowance, Contractual Unpaid Principal Balance | 133 | ||
With no related allowance, Average Recorded Investment | 118 | ||
With no related allowance, Interest Income Recognized on Impaired Loans | 2 | ||
With an related allowance, Recorded Investment | 4 | ||
With an related allowance, Contractual Unpaid Principal Balance | 4 | ||
Related Allowance | 4 | ||
With an related allowance, Average Recorded Investment | 0 | ||
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | ||
Multi Family Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 0 | ||
With no related allowance, Contractual Unpaid Principal Balance | 0 | ||
With no related allowance, Average Recorded Investment | 2,216 | ||
With no related allowance, Interest Income Recognized on Impaired Loans | 22 | ||
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 693 | 699 | |
With no related allowance, Contractual Unpaid Principal Balance | 864 | 868 | |
With no related allowance, Average Recorded Investment | 696 | 637 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 8 | 11 | |
With an related allowance, Recorded Investment | 48 | 0 | |
With an related allowance, Contractual Unpaid Principal Balance | 50 | 0 | |
Related Allowance | 49 | 0 | |
With an related allowance, Average Recorded Investment | 24 | 283 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 1 | 0 | |
Family Residential Real Estate 1 to 4 [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 1,263 | 2,061 | |
With no related allowance, Contractual Unpaid Principal Balance | 1,786 | 2,666 | |
With no related allowance, Average Recorded Investment | 1,662 | 2,422 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 17 | 31 | |
With an related allowance, Recorded Investment | 351 | 290 | |
With an related allowance, Contractual Unpaid Principal Balance | 351 | 290 | |
Related Allowance | 13 | $ 15 | |
With an related allowance, Average Recorded Investment | 321 | 545 | |
With an related allowance, Interest Income Recognized on Impaired Loans | $ 6 | $ 5 |
LOANS (Details 3)
LOANS (Details 3) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Residential 1 to 4 Family Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Recorded investment | $ 1 | $ 0 |
Below Market Interest Rate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Recorded investment | $ 1 | $ 0 |
Commercial and Inustrial Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 46 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 46 | $ 0 |
Number of loans | 1 | 0 |
Recorded investment | $ 46 | $ 0 |
Commercial Real Estate Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 0 | 2 |
Recorded investment | $ 0 | $ 936 |
Residential 1 to 4 Family Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 0 | 1 |
Recorded investment | $ 0 | $ 38 |
Multi Family Residential Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Recorded investment | $ 373 | $ 0 |
Extended Payment Term [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 46 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 46 | $ 0 |
Number of loans | 2 | 3 |
Recorded investment | $ 419 | $ 974 |
Forgiveness of Principal [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 3 | 3 |
Recorded investment | $ 420 | $ 974 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 629,619 | $ 617,398 | [1] | $ 559,599 |
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 629,619 | 617,398 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 77,984 | 73,491 | 66,029 | |
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 77,984 | 73,491 | ||
Commercial and Industrial [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,076 | 730 | ||
Commercial and Industrial [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,348 | 1,314 | ||
Commercial and Industrial [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 9,029 | 8,241 | ||
Commercial and Industrial [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 26,667 | 25,014 | ||
Commercial and Industrial [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 38,841 | 37,980 | ||
Commercial and Industrial [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 855 | 58 | ||
Commercial and Industrial [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 168 | 154 | ||
Commercial and Industrial [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial and Industrial [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 355 | 355 | ||
Construction Loans [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,429 | 5,827 | ||
Construction Loans [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 18,570 | 19,059 | ||
Construction Loans [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 86,111 | 79,817 | ||
Construction Loans [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 248 | 2,015 | ||
Construction Loans [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 604 | 615 | ||
Construction Loans [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 258,888 | 259,259 | 234,754 | |
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 258,888 | 259,259 | ||
Commercial Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 296 | 114 | ||
Commercial Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 28,874 | 26,538 | ||
Commercial Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 140,460 | 144,717 | ||
Commercial Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 74,946 | 74,169 | ||
Commercial Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 8,201 | 7,657 | ||
Commercial Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 6,111 | 6,064 | ||
Commercial Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 42,609 | 40,738 | 41,319 | |
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 42,609 | 40,738 | ||
Multi Family Residential Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,404 | 0 | ||
Multi Family Residential Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 27,867 | 32,355 | ||
Multi Family Residential Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,703 | 7,685 | ||
Multi Family Residential Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 635 | 698 | ||
Multi Family Residential Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 8,405 | 5,775 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 8,405 | 7,255 | ||
Loans to Individuals and Overdrafts [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 8,391 | 7,236 | ||
Loans to Individuals and Overdrafts [Member] | Non-Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 14 | 19 | ||
Family Residential Real Estate 1 to 4 [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 89,476 | 87,955 | 87,273 | |
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 89,476 | 87,955 | ||
Family Residential Real Estate 1 to 4 [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 82,970 | 80,596 | ||
Family Residential Real Estate 1 to 4 [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,528 | 3,678 | ||
Family Residential Real Estate 1 to 4 [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,978 | 3,681 | ||
Home Equity Line Of Credit [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 42,017 | 42,002 | $ 38,481 | |
Home Equity Line Of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 42,017 | 42,002 | ||
Home Equity Line Of Credit [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 40,758 | 40,770 | ||
Home Equity Line Of Credit [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 424 | 448 | ||
Home Equity Line Of Credit [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 835 | $ 784 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 5)
LOANS (Details 5) $ in Thousands | Mar. 31, 2016USD ($) |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Contractually required payments | $ 24,903 |
Nonaccretable difference | 1,390 |
Cash flows expected to be collected | 23,513 |
Accretable yield | 2,657 |
Fair value | $ 20,856 |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Line Items] | ||
Accretable yield, beginning of period | $ 2,822 | $ 3,762 |
Accretion | (270) | (328) |
Reclassification from nonaccretable difference | 8 | 0 |
Other changes, net | 97 | 0 |
Accretable yield, end of period | $ 2,657 | $ 3,434 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | [1] | $ 7,021 | |||
Allowance for loan losses, Balance, end of period | 7,527 | ||||
Ending Balance: individually evaluated for impairment | 211 | $ 575 | |||
Ending Balance: collectively evaluated for impairment | 7,316 | 6,344 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 621,173 | 544,226 | |||
Ending balance: individually evaluated for impairment | 9,523 | 15,373 | |||
Ending balance | 629,619 | 559,599 | $ 617,398 | [1] | |
Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 7,012 | 6,844 | |||
Provision for loan losses | 352 | 130 | |||
Loans charged-off | (11) | (93) | |||
Recoveries | 165 | 38 | |||
Allowance for loan losses, Balance, end of period | 7,518 | 6,919 | |||
Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 9 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 9 | 0 | |||
Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 7,021 | 6,844 | |||
Provision for loan losses | 352 | 130 | |||
Loans charged-off | (11) | (93) | |||
Recoveries | 165 | 38 | |||
Allowance for loan losses, Balance, end of period | 7,527 | 6,919 | |||
Loans | |||||
Ending balance | 629,619 | 617,398 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 2 | |||
Ending Balance: collectively evaluated for impairment | 1,055 | 980 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 77,938 | 65,414 | |||
Ending balance: individually evaluated for impairment | 46 | 615 | |||
Ending balance | 77,984 | 66,029 | 73,491 | ||
Commercial and Industrial [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 922 | 803 | |||
Provision for loan losses | 132 | 173 | |||
Loans charged-off | (1) | 0 | |||
Recoveries | 2 | 6 | |||
Allowance for loan losses, Balance, end of period | 1,055 | 982 | |||
Commercial and Industrial [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Commercial and Industrial [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 922 | 803 | |||
Provision for loan losses | 132 | 173 | |||
Loans charged-off | (1) | 0 | |||
Recoveries | 2 | 6 | |||
Allowance for loan losses, Balance, end of period | 1,055 | 982 | |||
Loans | |||||
Ending balance | 77,984 | 73,491 | |||
Construction Loans Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 79 | |||
Ending Balance: collectively evaluated for impairment | 1,401 | 1,130 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 110,713 | 84,747 | |||
Ending balance: individually evaluated for impairment | 604 | 1,221 | |||
Ending balance | 111,317 | 85,968 | 107,688 | ||
Construction Loans Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,386 | 1,103 | |||
Provision for loan losses | 9 | 102 | |||
Loans charged-off | (1) | 0 | |||
Recoveries | 7 | 4 | |||
Allowance for loan losses, Balance, end of period | 1,401 | 1,209 | |||
Construction Loans Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Construction Loans Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,386 | 1,103 | |||
Provision for loan losses | 9 | 102 | |||
Loans charged-off | (1) | 0 | |||
Recoveries | 7 | 4 | |||
Allowance for loan losses, Balance, end of period | 1,401 | 1,209 | |||
Loans | |||||
Ending balance | 111,317 | 107,688 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 149 | 354 | |||
Ending Balance: collectively evaluated for impairment | 3,068 | 2,491 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 252,502 | 227,521 | |||
Ending balance: individually evaluated for impairment | 6,386 | 7,233 | |||
Ending balance | 258,888 | 234,754 | 259,259 | ||
Commercial Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 3,005 | 2,914 | |||
Provision for loan losses | 170 | (40) | |||
Loans charged-off | 0 | (29) | |||
Recoveries | 42 | 0 | |||
Allowance for loan losses, Balance, end of period | 3,217 | 2,845 | |||
Commercial Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Commercial Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 3,005 | 2,914 | |||
Provision for loan losses | 170 | (40) | |||
Loans charged-off | 0 | (29) | |||
Recoveries | 42 | 0 | |||
Allowance for loan losses, Balance, end of period | 3,217 | 2,845 | |||
Loans | |||||
Ending balance | 258,888 | 259,259 | |||
Family Residential Real Estate 1 to 4 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, end of period | 0 | ||||
Ending Balance: individually evaluated for impairment | 13 | 90 | |||
Ending Balance: collectively evaluated for impairment | 675 | 516 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 87,862 | 84,090 | |||
Ending balance: individually evaluated for impairment | 1,614 | 3,183 | |||
Ending balance | 89,476 | 87,273 | 87,955 | ||
Family Residential Real Estate 1 to 4 [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 605 | 630 | |||
Provision for loan losses | (13) | (40) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 96 | 16 | |||
Allowance for loan losses, Balance, end of period | 688 | 606 | |||
Family Residential Real Estate 1 to 4 [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | ||||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 605 | 630 | |||
Provision for loan losses | (13) | (40) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 96 | 16 | |||
Allowance for loan losses, Balance, end of period | 688 | 606 | |||
Loans | |||||
Ending balance | 89,476 | 87,955 | |||
Home Equity Line of Credit [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 49 | 50 | |||
Ending Balance: collectively evaluated for impairment | 545 | 801 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 41,276 | 37,560 | |||
Ending balance: individually evaluated for impairment | 741 | 921 | |||
Ending balance | 42,017 | 38,481 | 42,002 | ||
Home Equity Line of Credit [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 564 | 930 | |||
Provision for loan losses | 6 | (42) | |||
Loans charged-off | 0 | (40) | |||
Recoveries | 15 | 3 | |||
Allowance for loan losses, Balance, end of period | 585 | 851 | |||
Home Equity Line of Credit [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 9 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 9 | 0 | |||
Home Equity Line of Credit [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 573 | 930 | |||
Provision for loan losses | 6 | (42) | |||
Loans charged-off | 0 | (40) | |||
Recoveries | 15 | 3 | |||
Allowance for loan losses, Balance, end of period | 594 | 851 | |||
Loans | |||||
Ending balance | 42,017 | 42,002 | |||
Loans to Individuals and Overdrafts [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 150 | 167 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 8,273 | 5,775 | |||
Ending balance: individually evaluated for impairment | 132 | 0 | |||
Ending balance | 8,405 | 5,775 | |||
Loans to Individuals and Overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 137 | 185 | |||
Provision for loan losses | 19 | (3) | |||
Loans charged-off | (9) | (24) | |||
Recoveries | 3 | 9 | |||
Allowance for loan losses, Balance, end of period | 150 | 167 | |||
Loans to Individuals and Overdrafts [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 137 | 185 | |||
Provision for loan losses | 19 | (3) | |||
Loans charged-off | (9) | (24) | |||
Recoveries | 3 | 9 | |||
Allowance for loan losses, Balance, end of period | 150 | 167 | |||
Loans | |||||
Ending balance | 8,405 | 7,255 | |||
Multi Family Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 422 | 259 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 42,609 | 39,119 | |||
Ending balance: individually evaluated for impairment | 0 | 2,200 | |||
Ending balance | 42,609 | 41,319 | 40,738 | ||
Multi Family Residential Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 393 | 279 | |||
Provision for loan losses | 29 | (20) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 422 | 259 | |||
Multi Family Residential Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | |||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 393 | 279 | |||
Provision for loan losses | 29 | (20) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 422 | $ 259 | |||
Loans | |||||
Ending balance | $ 42,609 | $ 40,738 | |||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details Textual)
LOANS (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 9,523,000 | $ 10,041,000 | |
Impaired Loans Required for Specific Reserves | 3,500,000 | 1,600,000 | |
With no related allowance, Recorded Investment | 5,988,000 | 8,486,000 | |
Increase (Decrease) in Finance Receivables | 1,500,000 | $ 1,600,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Financing Receivable, Recorded Investment, Past Due, Total | 143,000 | 142,000 | |
Nonaccrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 6,600,000 | 6,600,000 | |
Accrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,900,000 | $ 3,100,000 | |
Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 4,300,000 | 6,800,000 | |
Troubled Debt Restructuring Accrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,200,000 | 4,000,000 | |
Troubled Debt Restructuring Nonaccrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,100,000 | $ 2,800,000 | |
Unused Lines of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 151,800,000 |
ACCUMULATED OTHER COMPREHENSI43
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Beginning balance | $ 490 | [1] | $ 809 |
Unrealized gain on investment securities available for sale | 761 | 608 | |
Tax benefit | (284) | (234) | |
Other comprehensive income before reclassification | 477 | 374 | |
Amounts reclassified from accumulated comprehensive income: | |||
Realized (gain) loss on investment securities included in net income | (22) | (85) | |
Tax effect | 8 | 33 | |
Total reclassifications net of tax | (14) | (52) | |
Net current period other comprehensive income | 463 | 322 | |
Ending balance | $ 953 | $ 1,131 | |
[1] | Derived from audited consolidated financial statements. |
REPURCHASE AGREEMENTS (Details)
REPURCHASE AGREEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Available-for-sale Securities, Total | $ 77,122 | $ 80,709 | [1] |
Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 9,893 | 12,149 | |
Gross amount of recognized liabilities for repurchase agreements | 9,893 | 12,149 | |
Government agency [Member] | |||
Available-for-sale Securities, Total | 21,243 | 21,226 | |
Government agency [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 5,004 | 4,206 | |
Mortgage Back Securities [Member] | |||
Available-for-sale Securities, Total | 36,729 | 39,536 | |
Mortgage Back Securities [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 4,889 | 7,943 | |
Overnight and continuous [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 9,893 | 12,149 | |
Overnight and continuous [Member] | Government agency [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 5,004 | 4,206 | |
Overnight and continuous [Member] | Mortgage Back Securities [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 4,889 | 7,943 | |
Maturity Less than 30 Days [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity Less than 30 Days [Member] | Government agency [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity Less than 30 Days [Member] | Mortgage Back Securities [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity 30 to 90 Days [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity 30 to 90 Days [Member] | Government agency [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity 30 to 90 Days [Member] | Mortgage Back Securities [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity Greater than 90 Days [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity Greater than 90 Days [Member] | Government agency [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | 0 | 0 | |
Maturity Greater than 90 Days [Member] | Mortgage Back Securities [Member] | Repurchase Agreements [Member] | |||
Available-for-sale Securities, Total | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
REPURCHASE AGREEMENTS (Detail T
REPURCHASE AGREEMENTS (Detail Textual) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Securities Sold under Agreements to Repurchase [Member] | ||
Available For Sale Securities Pledged As Collateral Carrying Value | $ 9.9 | $ 12.1 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | |||
Schedule Of Real Estate Owned Properties [Line Items] | ||||
Beginning balance January 1 | $ 1,401 | [1] | $ 1,585 | |
Sales | (39) | (635) | ||
Write-downs and loss on sales | (27) | (139) | ||
Transfers | 553 | 590 | ||
Ending balance | $ 1,888 | $ 1,401 | [1] | |
[1] | Derived from audited consolidated financial statements. |
OTHER REAL ESTATE OWNED (Deta47
OTHER REAL ESTATE OWNED (Details Textual) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Real Estate Owned Properties [Line Items] | ||||
Real Estate Acquired Through Foreclosure | $ 1,888 | $ 1,401 | [1] | $ 1,585 |
[1] | Derived from audited consolidated financial statements. |