Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Village Bank & Trust Financial Corp. | ||
Entity Central Index Key | 1290476 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $5,114,000 | ||
Entity Common Stock, Shares Outstanding | 350,622 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $25,115 | $15,221 |
Federal funds sold | 23,988 | 24,988 |
Total cash and cash equivalents | 49,103 | 40,209 |
Investment securities available for sale | 39,542 | 57,748 |
Loans held for sale | 9,914 | 8,371 |
Loans | ||
Outstandings | 286,146 | 286,563 |
Allowance for loan losses | -5,729 | -7,239 |
Deferred fees and costs, net | 722 | 683 |
Total loans, net | 281,139 | 280,007 |
Other real estate owned, net of valuation allowance | 12,638 | 16,742 |
Assets held for sale | 13,502 | 13,359 |
Premises and equipment, net | 14,301 | 12,409 |
Bank owned life insurance | 6,947 | 6,765 |
Accrued interest receivable | 1,372 | 1,486 |
Other assets | 5,546 | 7,077 |
Total assets | 434,004 | 444,173 |
Deposits | ||
Noninterest bearing demand | 77,496 | 57,244 |
Interest bearing | 301,364 | 333,384 |
Total deposits | 378,860 | 390,628 |
Federal Home Loan Bank advances | 14,000 | 18,000 |
Long-term debt - trust preferred securities | 8,764 | 8,764 |
Other borrowings | 3,302 | 2,713 |
Accrued interest payable | 1,167 | 1,093 |
Other liabilities | 8,853 | 4,731 |
Total liabilities | 414,946 | 425,929 |
Shareholders' equity | ||
Preferred stock, $4 par value, $1,000 liquidation preference, 1,000,000 shares authorized, 14,738 shares issued and outstanding | 59 | 59 |
Common stock, $4 par value - 10,000,000 shares authorized; 350,622 shares issued and outstanding at December 31, 2014 333,644 shares issued and outstanding at December 31, 2013 | 1,339 | 1,335 |
Additional paid-in capital | 58,188 | 58,072 |
Retained earnings (deficit) | -40,539 | -38,066 |
Common stock warrant | 732 | 732 |
Discount on preferred stock | 0 | -50 |
Stock in directors rabbi trust | -878 | -878 |
Directors deferred fees obligation | 878 | 878 |
Accumulated other comprehensive loss | -721 | -3,838 |
Total shareholders' equity | 19,058 | 18,244 |
Total liabilities and shareholders' equity | $434,004 | $444,173 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Shareholders' equity | ||
Preferred stock, par value (in dollars per share) | $4 | $4 |
Preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 14,738 | 14,738 |
Preferred stock, shares outstanding (in shares) | 14,738 | 14,738 |
Common stock, par value (in dollars per share) | $4 | $4 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 350,622 | 333,644 |
Common stock, shares outstanding (in shares) | 350,622 | 333,644 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income | |||
Loans | $15,309 | $18,444 | $22,939 |
Investment securities | 1,182 | 1,083 | 701 |
Federal funds sold | 87 | 87 | 59 |
Total interest income | 16,578 | 19,614 | 23,699 |
Interest expense | |||
Deposits | 3,006 | 3,666 | 4,932 |
Borrowed funds | 554 | 759 | 1,065 |
Total interest expense | 3,560 | 4,425 | 5,997 |
Net interest income | 13,018 | 15,189 | 17,702 |
Provision for loan losses | 100 | 1,173 | 9,095 |
Net interest income after provision for loan losses | 12,918 | 14,016 | 8,607 |
Noninterest income | |||
Service charges and fees | 2,245 | 2,314 | 2,259 |
Gain on sale of loans | 4,449 | 7,744 | 8,562 |
Gain (loss) on sale of investment securities | -210 | 217 | 1,010 |
Rental income | 965 | 854 | 794 |
Other | 440 | 1,126 | 714 |
Total noninterest income | 7,889 | 12,255 | 13,339 |
Noninterest expense | |||
Salaries and benefits | 10,685 | 11,905 | 11,275 |
Commissions | 1,165 | 2,003 | 2,012 |
Occupancy | 1,690 | 2,064 | 2,213 |
Equipment | 708 | 715 | 807 |
Supplies | 344 | 436 | 431 |
Professional and outside services | 2,550 | 2,420 | 2,779 |
Advertising and marketing | 321 | 249 | 225 |
Expenses related to foreclosed real estate | 1,244 | 7,082 | 4,701 |
FDIC insurance premium | 968 | 1,048 | 1,204 |
Other operating expense | 2,169 | 2,356 | 2,643 |
Total noninterest expense | 21,844 | 30,278 | 28,290 |
Net loss before income taxes | -1,037 | -4,007 | -6,344 |
Income tax expense | 0 | 0 | 4,055 |
Net loss | -1,037 | -4,007 | -10,399 |
Preferred stock dividends and amortization of discount | 1,436 | 886 | 879 |
Net loss available to common shareholders | ($2,473) | ($4,893) | ($11,278) |
Earnings (loss) per share, basic and diluted (in dollars per share) | ($7.39) | ($18.06) | ($42.40) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Statements of Changes in Comprehensive Income (Loss) [Abstract] | |||
Net loss | ($1,037) | ($4,007) | ($10,399) |
Other comprehensive income (loss) | |||
Unrealized holding gains (losses) arising during the period | 4,499 | -5,359 | 756 |
Tax effect | 1,529 | -1,822 | 257 |
Net change in unrealized holding gains (losses) on securities available for sale, net of tax | 2,970 | -3,537 | 499 |
Reclassification adjustment | |||
Reclassification adjustment for (gains) losses realized in net income (loss) | 210 | -217 | -1,010 |
Tax effect | 72 | -74 | -343 |
Reclassification for (gains) losses included in net income (loss), net of tax | 138 | -143 | -667 |
Minimum pension adjustment | 14 | 13 | 13 |
Tax effect | 5 | 5 | 4 |
Minimum pension adjustment, net of tax | 9 | 8 | 9 |
Total other comprehensive income (loss) | 3,117 | -3,672 | -159 |
Total comprehensive income (loss) | $2,080 | ($7,679) | ($10,558) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Warrant [Member] | Discount on Preferred Stock [Member] | Stock in Directors Rabbi Trust [Member] | Directors Deferred Fees Obligation [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
In Thousands, unless otherwise specified | ||||||||||
Balance at Dec. 31, 2011 | $59 | $16,973 | $40,732 | ($21,895) | $732 | ($347) | $0 | $0 | ($7) | $36,247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of preferred stock discount | 0 | 0 | 0 | -148 | 0 | 148 | 0 | 0 | 0 | |
Preferred stock dividend | 0 | 0 | 0 | -731 | 0 | 0 | 0 | 0 | 0 | -731 |
Issuance of common stock | 0 | 34 | -34 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock based compensation | 0 | 0 | 7 | 0 | 0 | 0 | 0 | 0 | 0 | 7 |
Minimum pension adjustment (net of income taxes) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9 | 9 |
Net loss | 0 | 0 | 0 | -10,399 | 0 | 0 | 0 | 0 | 0 | -10,399 |
Change in unrealized gain (loss) on investment securities available-for-sale, net of reclassification and tax effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -168 | -168 |
Balance at Dec. 31, 2012 | 59 | 17,007 | 40,705 | -33,173 | 732 | -199 | 0 | 0 | -166 | 24,965 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of preferred stock discount | 0 | 0 | 0 | -149 | 0 | 149 | 0 | 0 | 0 | |
Preferred stock dividend | 0 | 0 | 0 | -737 | 0 | 0 | 0 | 0 | 0 | -737 |
Issuance of common stock | 0 | 4,346 | -2,662 | 0 | 0 | 0 | 0 | 0 | 0 | 1,684 |
Stock based compensation | 0 | 0 | 11 | 0 | 0 | 0 | 0 | 0 | 0 | 11 |
Minimum pension adjustment (net of income taxes) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8 | 8 |
Net loss | 0 | 0 | 0 | -4,007 | 0 | 0 | 0 | 0 | 0 | -4,007 |
Directors deferred fees | 0 | 0 | 0 | 0 | 0 | 0 | -878 | 878 | 0 | 0 |
Change in unrealized gain (loss) on investment securities available-for-sale, net of reclassification and tax effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -3,680 | -3,680 |
Balance at Dec. 31, 2013 | 59 | 21,353 | 38,054 | -38,066 | 732 | -50 | -878 | 878 | -3,838 | 18,244 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Amortization of preferred stock discount | 0 | 0 | 0 | -50 | 0 | 50 | 0 | |||
Preferred stock dividend | 0 | 0 | 0 | -1,386 | 0 | 0 | 0 | -1,386 | ||
Reverse stock split | -20,019 | 20,019 | 0 | |||||||
Issuance of common stock | 0 | 5 | -16 | 0 | 0 | 0 | 0 | -11 | ||
Stock based compensation | 0 | 0 | 131 | 0 | 0 | 0 | 0 | 131 | ||
Minimum pension adjustment (net of income taxes) | 0 | 0 | 0 | 0 | 0 | 0 | 9 | 9 | ||
Net loss | 0 | 0 | 0 | -1,037 | 0 | 0 | 0 | -1,037 | ||
Change in unrealized gain (loss) on investment securities available-for-sale, net of reclassification and tax effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,108 | 3,108 |
Balance at Dec. 31, 2014 | $59 | $1,339 | $58,188 | ($40,539) | $732 | $0 | ($878) | $878 | ($721) | $19,058 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Minimum pension adjustment, income taxes | $5 | $5 | $4 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net loss | ($1,037) | ($4,007) | ($10,399) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 681 | 1,311 | 1,366 |
Deferred income taxes | -401 | -1,852 | -2,174 |
Valuation allowance on net deferred tax asset | 334 | 1,781 | 6,229 |
Provision for loan losses | 100 | 1,173 | 9,095 |
Valuation allowance on other real estate owned, net | 922 | 4,929 | 623 |
(Gain) Loss on securities sold | 210 | -217 | -1,010 |
Gain on loans sold | -4,449 | -7,744 | -8,562 |
Gain on sale of premises and equipment | -3 | -598 | 0 |
(Gain) Loss on sale of other real estate owned | -142 | 381 | 240 |
Stock compensation expense | 131 | 11 | 7 |
Proceeds from sale of mortgage loans | 162,983 | 285,310 | 304,857 |
Origination of mortgage loans for sale | -160,077 | -261,749 | -304,315 |
Amortization of premiums and accretion of discounts on securities, net | 396 | 417 | 331 |
Decrease in interest receivable | 114 | 190 | 370 |
Increase in bank owned life insurance | -182 | -189 | -510 |
Decrease (increase) in other assets | -138 | 1,110 | 3,491 |
Increase in interest payable | 74 | 181 | 319 |
Increase (decrease) in other liabilities | 2,736 | -2,279 | -1,510 |
Net cash provided by (used in) operating activities | 2,252 | 18,159 | -1,552 |
Cash Flows from Investing Activities | |||
Purchases of available for sale securities | 0 | -54,107 | -70,732 |
Proceeds from the sale or calls of available for sale securities | 22,310 | 15,737 | 76,167 |
Net (increase) decrease in loans | -8,860 | 56,562 | 39,411 |
Proceeds from sale of other real estate owned | 10,952 | 5,301 | 7,281 |
Purchases of premises and equipment | -2,587 | -106 | -355 |
Proceeds from sale of premises and equipment | 17 | 1,681 | 0 |
Net cash provided by investing activities | 21,832 | 25,068 | 51,772 |
Cash Flows from Financing Activities | |||
Issuance of common stock | -11 | 1,684 | 0 |
Net decrease in deposits | -11,768 | -45,695 | -49,198 |
Net decrease in Federal Home Loan Bank Advances | -4,000 | -10,000 | -9,750 |
Net increase (decrease) in other borrowings | 589 | -2,138 | -927 |
Net cash used in financing activities | -15,190 | -56,149 | -59,875 |
Net increase (decrease) in cash and cash equivalents | 8,894 | -12,922 | -9,655 |
Cash and cash equivalents, beginning of period | 40,209 | 53,131 | 62,786 |
Cash and cash equivalents, end of period | 49,103 | 40,209 | 53,131 |
Supplemental Disclosure of Cash Flow Information [Abstract] | |||
Cash payments for interest | 3,486 | 4,244 | 5,678 |
Supplemental Schedule of Non Cash Activities | |||
Real estate owned assets acquired in settlement of loans | 7,628 | 7,149 | 19,171 |
Real estate owned assets transferred to premises and equipment | 0 | 2,241 | 0 |
Dividends on preferred stock accrued | $1,386 | $737 | $731 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary of Significant Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Note 1. | Summary of Significant Accounting Policies |
The accounting and reporting policies of Village Bank and Trust Financial Corp. and subsidiary (the “Company”) conform to accounting principles generally accepted in the United States of America (“GAAP”) and to general practice within the banking industry. The following is a description of the more significant of those policies: | ||
Business | ||
The Company is the holding company of Village Bank (the “Bank”). The Bank opened to the public on December 13, 1999 as a traditional community bank offering deposit and loan services to individuals and businesses in the Richmond, Virginia metropolitan area. Village Bank Mortgage Corporation (“Village Mortgage”) is a full service mortgage banking company wholly-owned by the Bank. | ||
The Bank is subject to regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Bank’s business is susceptible to being affected by state and federal legislation and regulations. | ||
The majority of the Company’s real estate loans are collateralized by properties in markets in the Richmond, Virginia metropolitan area. Accordingly, the ultimate collectability of those loans collateralized by real estate is particularly susceptible to changes in market conditions in the Richmond area. | ||
Basis of presentation and consolidation | ||
The consolidated financial statements include the accounts of the Company, the Bank and Village Mortgage. All material intercompany balances and transactions have been eliminated in consolidation. | ||
Use of estimates | ||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheets dates and revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision, and the estimate of the fair value of assets held for sale. | ||
Investment securities | ||
At the time of purchase, debt securities are classified into the following categories: held to maturity, available for sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost adjusted for amortization of premiums and accretion of discounts on purchase using a method that approximates the effective interest method. Investments classified as trading or available for sale are stated at fair value. Changes in fair value of trading investments are included in current earnings while changes in fair value of available for sale investments are excluded from current earnings and reported, net of taxes, as a separate component of other comprehensive income. Presently, the Company does not maintain a portfolio of trading securities or held to maturity. | ||
The fair value of investment securities held to maturity and available for sale is estimated based on quoted prices for similar assets determined by bid quotations received from independent pricing services. Declines in the fair value of securities below their amortized cost that are other than temporary are reflected in earnings or other comprehensive income, as appropriate. For those debt securities whose fair value is less than their amortized cost basis, we consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. | ||
Interest income is recognized when earned. Realized gains and losses for securities classified as available-for-sale and held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | ||
Loans held for sale | ||
The Company, through the Bank’s mortgage banking subsidiary, Village Bank Mortgage, originates residential mortgage loans for sale in the secondary market. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors. Upon entering into a commitment to originate a loan, the Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist that the investor fails to meet its purchase obligation, however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||
Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Gains on the sale of loans totaling approximately $4,449,000, $7,744,000 and $8,562,000 were realized during the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Once a residential mortgage loan is sold to a permanent investor, the Company has no further involvement or retained interest in the loan. There are limited circumstances in which the permanent investor can contractually require the Company to repurchase the loan. The Company makes no provision for any such recourse related to loans sold as history has shown repurchase of loans under these circumstances has been remote. | ||
The Company, through Village Mortgage, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed rate lock commitments. Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 45 days. The Company protects itself from changes in interest rates during this period by requiring a firm purchase agreement from a permanent investor before a loan can be closed. As a result, the Company is not exposed to losses nor will it realize gains or losses related to its rate lock commitments due to changes in interest rates. | ||
The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts contracts, no significant gains or losses have occurred on the rate lock commitments. | ||
At December 31, 2014, Village Mortgage had rate lock commitments to originate mortgage loans aggregating approximately $9,207,000 and loans held for sale of approximately $9,914,000. Village Mortgage has entered into corresponding commitments with third party investors to sell loans of approximately $19,121,000. Under the best efforts contractual relationship with these investors, Village Mortgage is obligated to sell the loans, and the investor is obligated to purchase the loans, only if the loans close. No other obligation exists. As a result of these best efforts contractual relationships with these investors Village Mortgage is not exposed to losses, nor will it realize gains, related to its rate lock commitments due to changes in interest rates. | ||
Transfers of financial assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2014, 2013 and 2012, and the sale of residential mortgage loans in the secondary market; the extent of which are disclosed in the Consolidated Statements of Cash Flows. | ||
Loans | ||
Loans are stated at the principal amount outstanding, net of unearned income. Loan origination fees and certain direct loan origination costs are deferred and amortized to interest income over the life of the loan as an adjustment to the loan’s yield over the term of the loan. | ||
Interest is accrued on outstanding principal balances, unless the Company considers collection to be doubtful. Commercial and unsecured consumer loans are designated as non-accrual when payment is delinquent 90 days or at the point which the Company considers collection doubtful, if earlier. Mortgage loans and most other types of consumer loans past due 90 days or more may remain on accrual status if management determines that such amounts are collectible. When loans are placed in non-accrual status, previously accrued and unpaid interest is reversed against interest income in the current period and interest is subsequently recognized only to the extent cash is received as long as the remaining recorded investment in the loan is deemed fully collectible. Loans may be placed back on accrual status when, in the opinion of management, the circumstances warrant such action such as a history of timely payments subsequent to being placed on nonaccrual status, additional collateral is obtained or the borrowers cash flows improve. | ||
Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contractual amount of standby letters of credit, whose contract amount represent credit risk was approximately $1,571,000 at December 31, 2014 and approximately $2,192,000 at December 31, 2013. | ||
Allowance for loan losses | ||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. | ||
The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions which may affect a borrower’s ability to repay, overall portfolio quality, and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. | ||
The allowance consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience and risk characteristics (i.e. trends in delinquencies and other non-performing loans, changes in economic conditions on both a local and national level, and changes in the categories of loans comprising the loan portfolio) adjusted for qualitative factors. The specific component relates to loans that we have concluded, based on the value of collateral, guarantees and any other pertinent factors, have known losses. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | ||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | ||
Troubled debt restructurings | ||
A loan or lease is accounted for as a troubled debt restructuring if we, for economic or legal reasons related to the borrower’s financial condition, grant a significant concession to the borrower that we would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or balance of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk, or some combination of these concessions. Troubled debt restructurings generally remain categorized as nonperforming loans and leases until a six-month payment history has been maintained. | ||
In accordance with current accounting guidance, loans modified as troubled debt restructurings are, by definition, considered to be impaired loans. Impairment for these loans is measured on a loan-by-loan basis similar to other impaired loans as described above under Allowance for loan losses. Certain loans modified as troubled debt restructurings may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan is modified as a troubled debt restructuring the allowance will be impacted by the difference between the results of these two measurement methodologies. Loans modified as troubled debt restructurings that subsequently default are factored into the determination of the allowance in the same manner as other defaulted loans. | ||
Real estate acquired in settlement of loans | ||
Real estate acquired through or in lieu of foreclosure is initially recorded at estimated fair value less estimated selling costs. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. If fair value declines subsequent to foreclosure a valuation allowance is recorded through expense. Operating costs after acquisition are expensed as incurred. The valuation allowance at December 31, 2014 was $2,369,000. Costs relating to the development and improvement of such property are capitalized when appropriate, whereas those costs relating to holding the property are expensed. | ||
Asset held for sale | ||
Asset held for sale at December 31, 2014 is the Company’s current headquarters building at the Watkins Centre. It was transferred from premises and equipment to asset held for sale at cost less accumulated depreciation at the date of transfer, December 31, 2013, which was lower than its fair value, adjusted for net selling costs, at that date. | ||
Premises and equipment | ||
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation of buildings and improvements is computed using the straight-line method over the estimated useful lives of the assets of 39 years. Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from 3 to 7 years. Amortization of premises (leasehold improvements) is computed using the straight-line method over the term of the lease or estimated lives of the improvements, whichever is shorter. | ||
Income taxes | ||
Deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The primary temporary differences are the allowance for loan losses and depreciation and amortization. The effect on recorded deferred income taxes of a change in tax laws or rates is recognized in income in the period that includes the enactment date. To the extent that available evidence about the future raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has not identified any material uncertain tax positions. | ||
Consolidated statements of cash flows | ||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Cash flows from loans originated by the Bank and deposits are reported net. The Company paid interest of $3,486,000, $4,244,000 and $5,678,000 in 2014, 2013, and 2012, respectively. The Company did not pay income taxes in 2014, 2013 and 2012. | ||
Comprehensive income | ||
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). The Company’s other comprehensive income (loss) and accumulated other comprehensive income (loss) are comprised of unrealized gains and losses on investment securities available for sale and amortization of the unfunded pension liability. At December 31, 2014 and 2013 the accumulated other comprehensive income was comprised of unrealized losses on securities available for sale of $644,000 and $3,752,000 and unfunded pension liability of $77,000 and $86,000, respectively. | ||
Earnings per common share | ||
Basic earnings (loss) per common share represent net income available to common stockholders, which represents net income (loss) less dividends paid or payable to preferred stock shareholders, divided by the weighted-average number of common shares outstanding during the period. For diluted earnings per common share, net income available to common shareholders is divided by the weighted average number of common shares issued and outstanding for each period plus amounts representing the dilutive effect of stock options and warrants, as well as any adjustment to income that would result from the assumed issuance. The effects of stock options and warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Stock options and warrants are antidilutive if the underlying average market price of the stock that can be purchased for the period is less than the exercise price of the option or warrant. Potential common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. | ||
Stock incentive plan | ||
The Company’s shareholders approved the Company’s stock incentive plan, as amended and restated, which authorizes the issuance of up to 48,750 shares of common stock (after the reverse stock split) to assist the Company in recruiting and retaining key personnel. The incentive plan includes issuances of stock options and awards of 6,830 common shares. The expiration date on options granted is ten years with a three year vesting schedule. See Note 14 for more information on the stock incentive plan. | ||
Fair values of financial instruments | ||
The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact and willing to transact. See Note 17 for the methods and assumptions the Bank uses in estimating fair values of financial instruments. | ||
New accounting pronouncements | ||
In January 2014, the FASB issued ASU 2014-01, “Investments – Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects”. This ASU applies to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in the ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2014. The adoption of this guidance should not have a material effect on the Company’s financial condition or results of operations. | ||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors”. ASU 2014-04 clarifies when a creditor should be considered to have received physical possession of residential real estate property during a foreclosure. ASU 2014-04 establishes a loan receivable should be derecognized and the real estate property recognized upon the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan. The provisions of ASU 2014-04 are effective for annual periods beginning after December 15, 2014. The adoption of this guidance should not have a material effect on the Company’s financial condition or results of operations. | ||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this ASU modify the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The ASU requires that entities apply a specific method to recognize revenue reflecting the consideration expected from customers in exchange for the transfer of goods and services. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. Entities are also required to disclose significant judgments and changes in judgments for determining the satisfaction of performance obligations. Most revenue associated with financial instruments, including interest and loan origination fees, is outside the scope of the guidance. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, with early adoption prohibited. The company is evaluating the effect ASU 2014-09 will have on its consolidated financial statements. |
Investment_securities_availabl
Investment securities available-for-sale | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investment securities available-for-sale [Abstract] | |||||||||||||||||||||||||
Investment securities available-for-sale | Note 2. | Investment securities available for sale | |||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Government agencies | $ | 34,220 | $ | - | $ | (872 | ) | $ | 33,348 | ||||||||||||||||
Mortgage-backed securities | 484 | 2 | (2 | ) | 484 | ||||||||||||||||||||
Municipals | 5,814 | 2 | (106 | ) | 5,710 | ||||||||||||||||||||
$ | 40,518 | $ | 4 | $ | (980 | ) | $ | 39,542 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. Treasuries | $ | 7,825 | $ | - | $ | (615 | ) | 7,210 | |||||||||||||||||
U.S. Government agencies | 37,704 | - | (3,353 | ) | 34,351 | ||||||||||||||||||||
Mortgage-backed securities | 2,792 | 10 | (50 | ) | 2,752 | ||||||||||||||||||||
Municipals | 15,112 | - | (1,677 | ) | 13,435 | ||||||||||||||||||||
$ | 63,433 | $ | 10 | $ | (5,695 | ) | $ | 57,748 | |||||||||||||||||
Investment securities with book values of approximately $17,567,000 and $6,899,000 at December 31, 2014 and 2013, respectively, were pledged to secure deposit repurchase agreements. | |||||||||||||||||||||||||
Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the years ending December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross realized gains | $ | 218 | $ | 217 | $ | 1,037 | |||||||||||||||||||
Gross realized losses | (428 | ) | - | (27 | ) | ||||||||||||||||||||
$ | (210 | ) | $ | 217 | $ | 1,010 | |||||||||||||||||||
In 2014, the Company sold approximately $21 million of investment securities available for sale at a loss of $210,000. The sale of these securities, which had fixed interest rates, allowed the Company to decrease its exposure to the anticipated upward movement in interest rates that would result in unrealized losses being recognized in shareholders’ equity. Approximately $15 million of the proceeds from the sale of these securities were used to purchase rehabilitated student loans that have variable interest rates that will increase as interest rates in general increase. | |||||||||||||||||||||||||
Investment securities available for sale that have an unrealized loss position at December 31, 2014 and December 31, 2013 are detailed below (in thousands): | |||||||||||||||||||||||||
Securities in a loss | Securities in a loss | ||||||||||||||||||||||||
position for less than | position for more than | ||||||||||||||||||||||||
12 Months | 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
US Treasuries | $ | - | $ | - | $ | 33,347 | $ | (872 | ) | $ | 33,347 | $ | (872 | ) | |||||||||||
US Government Agencies | - | - | 363 | (2 | ) | 363 | (2 | ) | |||||||||||||||||
Municipals | - | - | 5,497 | (106 | ) | 5,497 | (106 | ) | |||||||||||||||||
$ | - | $ | - | $ | 39,207 | $ | (980 | ) | $ | 39,207 | $ | (980 | ) | ||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
US Treasuries | $ | 7,210 | $ | (615 | ) | $ | - | $ | - | $ | 7,210 | $ | (615 | ) | |||||||||||
US Government Agencies | 34,350 | (3,353 | ) | - | - | 34,350 | (3,353 | ) | |||||||||||||||||
Municipals | 10,864 | (1,471 | ) | 2,571 | (206 | ) | 13,435 | (1,677 | ) | ||||||||||||||||
Mortgage-backed securities | 1,861 | (50 | ) | - | - | 1,861 | (50 | ) | |||||||||||||||||
$ | 54,285 | $ | (5,489 | ) | $ | 2,571 | $ | (206 | ) | $ | 56,856 | $ | (5,695 | ) | |||||||||||
All of the unrealized losses are attributable to increases in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in market value is attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other than temporarily impaired at December 31, 2014. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2014, by contractual maturity, are as follows (in thousands): | |||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
One to five years | $ | 10,324 | $ | 10,099 | |||||||||||||||||||||
Five to ten years | 25,026 | 24,359 | |||||||||||||||||||||||
More than ten years | 5,168 | 5,084 | |||||||||||||||||||||||
Total | $ | 40,518 | $ | 39,542 |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||
Loans | Note 3. | Loans | |||||||||||||||||||||||||||
Loans classified by type as of December 31, 2014 and 2013 are as follows (in thousands): | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 4,315 | $ | 2,931 | |||||||||||||||||||||||||
Commercial | 25,152 | 28,179 | |||||||||||||||||||||||||||
29,467 | 31,110 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 58,804 | 73,584 | |||||||||||||||||||||||||||
Non-owner occupied | 38,892 | 43,868 | |||||||||||||||||||||||||||
Multifamily | 11,438 | 11,560 | |||||||||||||||||||||||||||
Farmland | 434 | 1,463 | |||||||||||||||||||||||||||
109,568 | 130,475 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 20,082 | 21,246 | |||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 61,837 | 66,873 | |||||||||||||||||||||||||||
Second deed of trust | 7,854 | 8,675 | |||||||||||||||||||||||||||
89,773 | 96,794 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 22,165 | 26,254 | |||||||||||||||||||||||||||
Guaranteed student loans | 33,562 | - | |||||||||||||||||||||||||||
Consumer and other | 1,611 | 1,930 | |||||||||||||||||||||||||||
Total loans | 286,146 | 286,563 | |||||||||||||||||||||||||||
Deferred loan cost, net | 722 | 683 | |||||||||||||||||||||||||||
Less: allowance for loan losses | (5,729 | ) | (7,239 | ) | |||||||||||||||||||||||||
$ | 281,139 | $ | 280,007 | ||||||||||||||||||||||||||
The Bank purchased two portfolios of rehabilitated student loans guaranteed by the Department of Education (“DOE”) totaling approximately $19 million on July 29, 2014 and approximately $14 million on December 30, 2014. The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs. | |||||||||||||||||||||||||||||
The Company had not pledged any loans at December 31, 2014. Loans pledged as collateral with the FHLB as part of their lending arrangements with the Company totaled $70,959,000 at December 31, 2013. | |||||||||||||||||||||||||||||
The following is a summary of loans directly or indirectly with executive officers or directors of the Company for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Beginning balance | $ | 7,929 | $ | 8,593 | |||||||||||||||||||||||||
Additions | 4,888 | 4,833 | |||||||||||||||||||||||||||
Reductions | (4,559 | ) | (5,497 | ) | |||||||||||||||||||||||||
Ending balance | $ | 8,258 | $ | 7,929 | |||||||||||||||||||||||||
Executive officers and directors also had unused credit lines totaling $1,670,000 and $1,731,000 at December 31, 2014 and 2013, respectively. All loans and credit lines to executive officers and directors were made in the ordinary course of business at the Company’s normal credit terms, including interest rate and collateralization prevailing at the time for comparable transactions with other persons. | |||||||||||||||||||||||||||||
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought to current and future payments are reasonably assured. | |||||||||||||||||||||||||||||
Year-end nonaccrual loans segregated by type as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 164 | $ | - | |||||||||||||||||||||||||
Commercial | 217 | 1,811 | |||||||||||||||||||||||||||
381 | 1,811 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 2,316 | 2,704 | |||||||||||||||||||||||||||
Non-owner occupied | - | 3,492 | |||||||||||||||||||||||||||
Farmland | 21 | 117 | |||||||||||||||||||||||||||
2,337 | 6,313 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 1,632 | |||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 2,416 | 7,083 | |||||||||||||||||||||||||||
Second deed of trust | 702 | 934 | |||||||||||||||||||||||||||
3,918 | 9,649 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 819 | 840 | |||||||||||||||||||||||||||
Consumer and other | 23 | 34 | |||||||||||||||||||||||||||
Total loans | $ | 7,478 | $ | 18,647 | |||||||||||||||||||||||||
The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: | |||||||||||||||||||||||||||||
· | Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; | ||||||||||||||||||||||||||||
· | Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention; | ||||||||||||||||||||||||||||
· | Risk rated 6 loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any; and | ||||||||||||||||||||||||||||
· | Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | ||||||||||||||||||||||||||||
The following tables provide information on the risk rating of loans at the dates indicated (in thousands): | |||||||||||||||||||||||||||||
Risk Rated | Risk Rated | Risk Rated | Risk Rated | Total | |||||||||||||||||||||||||
4-Jan | 5 | 6 | 7 | Loans | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 3,946 | $ | 205 | $ | 164 | $ | - | $ | 4,315 | |||||||||||||||||||
Commercial | 20,641 | 1,622 | 2,889 | 25,152 | |||||||||||||||||||||||||
24,587 | 1,827 | 3,053 | - | 29,467 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 47,175 | 5,234 | 6,395 | - | 58,804 | ||||||||||||||||||||||||
Non-owner occupied | 36,439 | 1,811 | 642 | - | 38,892 | ||||||||||||||||||||||||
Multifamily | 10,703 | 735 | - | 11,438 | |||||||||||||||||||||||||
Farmland | 413 | 21 | - | 434 | |||||||||||||||||||||||||
94,730 | 7,780 | 7,058 | - | 109,568 | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 18,107 | 465 | 1,510 | - | 20,082 | ||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 52,513 | 4,763 | 4,561 | - | 61,837 | ||||||||||||||||||||||||
Second deed of trust | 6,456 | 434 | 964 | - | 7,854 | ||||||||||||||||||||||||
77,076 | 5,662 | 7,035 | - | 89,773 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 19,026 | 2,297 | 390 | 452 | 22,165 | ||||||||||||||||||||||||
Guaranteed student loans | 33,562 | 33,562 | |||||||||||||||||||||||||||
Consumer and other | 1,488 | 74 | 49 | - | 1,611 | ||||||||||||||||||||||||
Total loans | $ | 250,469 | $ | 17,640 | $ | 17,585 | $ | 452 | $ | 286,146 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 2,715 | $ | - | $ | 216 | $ | - | $ | 2,931 | |||||||||||||||||||
Commercial | 18,265 | 2,711 | 7,203 | - | 28,179 | ||||||||||||||||||||||||
20,980 | 2,711 | 7,419 | - | 31,110 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 51,810 | 13,214 | 8,560 | - | 73,584 | ||||||||||||||||||||||||
Non-owner occupied | 31,990 | 3,454 | 8,424 | - | 43,868 | ||||||||||||||||||||||||
Multifamily | 10,804 | 756 | - | - | 11,560 | ||||||||||||||||||||||||
Farmland | 1,347 | - | 117 | - | 1,463 | ||||||||||||||||||||||||
95,951 | 17,424 | 17,101 | - | 130,475 | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 17,610 | 727 | 2,909 | - | 21,246 | ||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 49,843 | 6,646 | 10,384 | - | 66,873 | ||||||||||||||||||||||||
Second deed of trust | 6,597 | 212 | 1,865 | - | 8,675 | ||||||||||||||||||||||||
74,050 | 7,585 | 15,158 | - | 96,794 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 19,786 | 1,042 | 5,426 | - | 26,254 | ||||||||||||||||||||||||
Consumer and other | 1,739 | 131 | 60 | - | 1,930 | ||||||||||||||||||||||||
Total loans | $ | 212,506 | $ | 28,893 | $ | 45,164 | $ | - | $ | 286,563 | |||||||||||||||||||
The following tables present the aging of the recorded investment in past due loans as of the dates indicated (in thousands): | |||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Greater | Investment > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Than | Total Past | Total | 90 Days and | ||||||||||||||||||||||||
Past Due | Past Due | 90 Days | Due | Current | Loans | Accruing | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | - | $ | - | $ | - | $ | - | $ | 4,315 | $ | 4,315 | $ | - | |||||||||||||||
Commercial | 92 | 391 | - | 483 | 24,669 | 25,152 | - | ||||||||||||||||||||||
92 | 391 | - | 483 | 28,984 | 29,467 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 715 | - | - | 715 | 58,089 | 58,804 | - | ||||||||||||||||||||||
Non-owner occupied | - | - | - | - | 38,892 | 38,892 | - | ||||||||||||||||||||||
Multifamily | - | - | - | - | 11,438 | 11,438 | - | ||||||||||||||||||||||
Farmland | - | - | - | - | 434 | 434 | - | ||||||||||||||||||||||
715 | - | - | 715 | 108,853 | 109,568 | - | |||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 31 | 139 | - | 170 | 19,912 | 20,082 | - | ||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | - | 153 | - | 153 | 61,684 | 61,837 | - | ||||||||||||||||||||||
Second deed of trust | 56 | - | - | 56 | 7,798 | 7,854 | - | ||||||||||||||||||||||
87 | 292 | - | 379 | 89,394 | 89,773 | - | |||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | - | 47 | - | 47 | 22,118 | 22,165 | - | ||||||||||||||||||||||
Guaranteed student loans | 671 | 392 | 720 | 1,783 | 31,779 | 33,562 | 720 | ||||||||||||||||||||||
Consumer and other | - | 8 | - | 8 | 1,603 | 1,611 | - | ||||||||||||||||||||||
Total loans | $ | 1,565 | $ | 1,130 | $ | 720 | $ | 3,415 | $ | 282,731 | $ | 286,146 | $ | 720 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | - | $ | - | $ | - | $ | - | $ | 2,931 | $ | 2,931 | $ | - | |||||||||||||||
Commercial | - | 116 | - | 116 | 28,063 | 28,179 | - | ||||||||||||||||||||||
- | 116 | - | 116 | 30,994 | 31,110 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 199 | - | - | 199 | 73,385 | 73,584 | - | ||||||||||||||||||||||
Non-owner occupied | - | 346 | - | 346 | 43,522 | 43,868 | - | ||||||||||||||||||||||
Multifamily | 221 | - | - | 221 | 11,339 | 11,560 | - | ||||||||||||||||||||||
Farmland | 194 | - | - | 194 | 1,269 | 1,463 | - | ||||||||||||||||||||||
614 | 346 | - | 960 | 129,515 | 130,475 | - | |||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 98 | 403 | - | 501 | 20,745 | 21,246 | - | ||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 555 | 362 | - | 917 | 65,956 | 66,873 | - | ||||||||||||||||||||||
Second deed of trust | - | 24 | - | 24 | 8,651 | 8,675 | - | ||||||||||||||||||||||
653 | 789 | - | 1,442 | 95,352 | 96,794 | - | |||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 25 | 122 | 60 | 207 | 26,047 | 26,254 | 60 | ||||||||||||||||||||||
Consumer and other | 6 | 15 | - | 21 | 1,909 | 1,930 | - | ||||||||||||||||||||||
Total loans | $ | 1,298 | $ | 1,388 | $ | 60 | $ | 2,746 | $ | 283,817 | $ | 286,563 | $ | 60 | |||||||||||||||
Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 164 | $ | 164 | $ | - | |||||||||||||||||||||||
Commercial | 3,379 | 3,379 | - | ||||||||||||||||||||||||||
3,543 | 3,543 | - | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,686 | 1,686 | |||||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | ||||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | ||||||||||||||||||||||||||
Farmland | 21 | 450 | - | ||||||||||||||||||||||||||
10,622 | 11,051 | - | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 800 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 6,485 | 6,493 | - | ||||||||||||||||||||||||||
Second deed of trust | 1,103 | 1,373 | - | ||||||||||||||||||||||||||
8,388 | 8,666 | - | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 263 | 365 | - | ||||||||||||||||||||||||||
Consumer and other | 23 | 36 | - | ||||||||||||||||||||||||||
22,839 | 23,661 | - | |||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 589 | 589 | 26 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 6,625 | 6,640 | 905 | ||||||||||||||||||||||||||
Non-Owner occupied | |||||||||||||||||||||||||||||
6,625 | 6,640 | 905 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 1,415 | 1,415 | 200 | ||||||||||||||||||||||||||
Second deed of trust | 257 | 257 | 142 | ||||||||||||||||||||||||||
1,672 | 1,672 | 342 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 555 | 555 | 239 | ||||||||||||||||||||||||||
9,441 | 9,456 | 1,512 | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 164 | 164 | - | ||||||||||||||||||||||||||
Commercial | 3,968 | 3,968 | 26 | ||||||||||||||||||||||||||
4,132 | 4,132 | 26 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 8,311 | 8,326 | 905 | ||||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | ||||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | ||||||||||||||||||||||||||
Farmland | 21 | 450 | - | ||||||||||||||||||||||||||
17,247 | 17,691 | 905 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 800 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 7,900 | 7,908 | 200 | ||||||||||||||||||||||||||
Second deed of trust | 1,360 | 1,630 | 142 | ||||||||||||||||||||||||||
10,060 | 10,338 | 342 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 818 | 920 | 239 | ||||||||||||||||||||||||||
Consumer and other | 23 | 36 | - | ||||||||||||||||||||||||||
$ | 32,280 | $ | 33,117 | $ | 1,512 | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 216 | $ | 216 | $ | - | |||||||||||||||||||||||
Commercial | 3,452 | 3,497 | - | ||||||||||||||||||||||||||
3,668 | 3,713 | - | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,919 | 1,969 | |||||||||||||||||||||||||||
Non-owner occupied | 11,769 | 11,928 | - | ||||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | ||||||||||||||||||||||||||
Farmland | 117 | 450 | - | ||||||||||||||||||||||||||
16,178 | 16,720 | - | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 1,630 | 1,685 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 8,177 | 8,319 | - | ||||||||||||||||||||||||||
Second deed of trust | 1,125 | 1,249 | - | ||||||||||||||||||||||||||
10,932 | 11,253 | - | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 809 | 983 | - | ||||||||||||||||||||||||||
Consumer and other | 34 | 34 | - | ||||||||||||||||||||||||||
31,621 | 32,703 | - | |||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 1,753 | 1,753 | 220 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 9,794 | 9,948 | 680 | ||||||||||||||||||||||||||
Non-Owner occupied | 1,297 | 1,297 | 371 | ||||||||||||||||||||||||||
11,091 | 11,245 | 1,051 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 2,184 | 2,870 | 484 | ||||||||||||||||||||||||||
Second deed of trust | 132 | 132 | 32 | ||||||||||||||||||||||||||
2,316 | 3,002 | 516 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 151 | 151 | 43 | ||||||||||||||||||||||||||
15,311 | 16,151 | 1,830 | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 216 | 216 | - | ||||||||||||||||||||||||||
Commercial | 5,205 | 5,250 | 220 | ||||||||||||||||||||||||||
5,421 | 5,466 | 220 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 11,713 | 11,917 | 680 | ||||||||||||||||||||||||||
Non-owner occupied | 13,066 | 13,225 | 371 | ||||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | ||||||||||||||||||||||||||
Farmland | 117 | 450 | - | ||||||||||||||||||||||||||
27,269 | 27,965 | 1,051 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 1,630 | 1,685 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 10,361 | 11,189 | 484 | ||||||||||||||||||||||||||
Second deed of trust | 1,257 | 1,381 | 32 | ||||||||||||||||||||||||||
13,248 | 14,255 | 516 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 960 | 1,134 | 43 | ||||||||||||||||||||||||||
Consumer and other | 34 | 34 | - | ||||||||||||||||||||||||||
$ | 46,932 | $ | 48,854 | $ | 1,830 | ||||||||||||||||||||||||
The following is a summary of average recorded investment in impaired loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 181 | $ | 2 | $ | 179 | $ | 9 | |||||||||||||||||||||
Commercial | 3,642 | 205 | 5,443 | 255 | |||||||||||||||||||||||||
3,823 | 207 | 5,622 | 264 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,705 | 93 | 2,552 | 113 | |||||||||||||||||||||||||
Non-owner occupied | 6,693 | 320 | 11,922 | 599 | |||||||||||||||||||||||||
Multifamily | 2,347 | 141 | 2,396 | 149 | |||||||||||||||||||||||||
Farmland | 21 | - | 117 | - | |||||||||||||||||||||||||
10,766 | 554 | 16,987 | 861 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 27 | 1,632 | 59 | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 6,581 | 352 | 8,707 | 395 | |||||||||||||||||||||||||
Second deed of trust | 1,112 | 51 | 1,186 | 63 | |||||||||||||||||||||||||
8,493 | 430 | 11,525 | 517 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 274 | 15 | 796 | 48 | |||||||||||||||||||||||||
Consumer and other | 26 | 2 | 38 | 2 | |||||||||||||||||||||||||
23,382 | 1,208 | 34,968 | 1,692 | ||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 601 | 33 | 1,820 | 52 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 5,853 | 272 | 8,759 | 513 | |||||||||||||||||||||||||
Non-Owner occupied | - | - | 1,311 | 65 | |||||||||||||||||||||||||
5,853 | 272 | 10,070 | 578 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 1,464 | 45 | 2,355 | 116 | |||||||||||||||||||||||||
Second deed of trust | 263 | 11 | 136 | 4 | |||||||||||||||||||||||||
1,727 | 56 | 2,491 | 120 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 570 | 33 | 154 | 4 | |||||||||||||||||||||||||
8,751 | 394 | 14,535 | 754 | ||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 181 | 2 | 179 | 9 | |||||||||||||||||||||||||
Commercial | 4,243 | 238 | 7,263 | 307 | |||||||||||||||||||||||||
4,424 | 240 | 7,442 | 316 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 7,558 | 365 | 11,311 | 626 | |||||||||||||||||||||||||
Non-owner occupied | 6,693 | 320 | 13,233 | 664 | |||||||||||||||||||||||||
Multifamily | 2,347 | 141 | 2,396 | 149 | |||||||||||||||||||||||||
Farmland | 21 | - | 117 | - | |||||||||||||||||||||||||
16,619 | 826 | 27,057 | 1,439 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 27 | 1,632 | 59 | |||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 8,045 | 397 | 11,062 | 511 | |||||||||||||||||||||||||
Second deed of trust | 1,375 | 62 | 1,322 | 67 | |||||||||||||||||||||||||
10,220 | 486 | 14,016 | 637 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 844 | 48 | 950 | 52 | |||||||||||||||||||||||||
Consumer and other | 26 | 2 | 38 | 2 | |||||||||||||||||||||||||
$ | 32,133 | $ | 1,602 | $ | 49,503 | $ | 2,446 | ||||||||||||||||||||||
As of December 31, 2014, 2013 and 2012, the Company had impaired loans of $7,478,000, $18,647,000 and $25,605,000, respectively, which were on nonaccrual status. These loans had valuation allowances of $1,087,000, $1,189,000 and $1,338,000 as of December 31, 2014, 2013 and 2012, respectively. Cumulative interest income that would have been recorded had nonaccrual loans been performing would have been $224,000, 1,093,000 and $1,592,000 for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||
Included in impaired loans are loans classified as troubled debt restructurings (“TDRs”). A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrowers financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. | |||||||||||||||||||||||||||||
An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment as of December 31, 2014 (dollars in thousands). | |||||||||||||||||||||||||||||
Specific | |||||||||||||||||||||||||||||
Valuation | |||||||||||||||||||||||||||||
Total | Performing | Nonaccrual | Allowance | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 7 | - | $ | 7 | $ | - | ||||||||||||||||||||||
Commercial | 3,895 | 3,751 | 144 | 17 | |||||||||||||||||||||||||
3,902 | 3,751 | 151 | 17 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 6,317 | 5,149 | 1,168 | 325 | |||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | - | |||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | - | |||||||||||||||||||||||||
15,232 | 14,064 | 1,168 | 325 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | - | - | - | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | - | - | - | - | |||||||||||||||||||||||||
First deeds of trust | 6,990 | 5,494 | 1,496 | 200 | |||||||||||||||||||||||||
Second deeds of trust | 762 | 658 | 104 | 5 | |||||||||||||||||||||||||
7,752 | 6,152 | 1,600 | 205 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 239 | - | 239 | 12 | |||||||||||||||||||||||||
Consumer and other | 16 | - | 16 | - | |||||||||||||||||||||||||
$ | 27,141 | $ | 23,967 | $ | 3,174 | $ | 559 | ||||||||||||||||||||||
Number of loans | 107 | 77 | 30 | 21 | |||||||||||||||||||||||||
Specific | |||||||||||||||||||||||||||||
Valuation | |||||||||||||||||||||||||||||
Total | Performing | Nonaccrual | Allowance | ||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 216 | 216 | $ | - | $ | - | ||||||||||||||||||||||
Commercial | 4,922 | 3,394 | 1,528 | 211 | |||||||||||||||||||||||||
5,138 | 3,610 | 1,528 | 211 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 10,377 | 9,010 | 1,367 | 374 | |||||||||||||||||||||||||
Non-owner occupied | 9,973 | 9,568 | 405 | 137 | |||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | - | |||||||||||||||||||||||||
22,723 | 20,951 | 1,772 | 511 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 160 | - | 160 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deeds of trust | 7,296 | 3,231 | 4,065 | 383 | |||||||||||||||||||||||||
Second deeds of trust | 692 | 325 | 367 | - | |||||||||||||||||||||||||
8,148 | 3,556 | 4,592 | 383 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 255 | 120 | 135 | 9 | |||||||||||||||||||||||||
Consumer and other | 21 | - | 21 | - | |||||||||||||||||||||||||
$ | 36,285 | $ | 28,237 | $ | 8,048 | $ | 1,114 | ||||||||||||||||||||||
Number of loans | 115 | 62 | 53 | 23 | |||||||||||||||||||||||||
The following table provides information about TDRs identified during the indicated periods (dollars in thousands). | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||||||||||
Loans | Balance | Balance | Loans | Balance | Balance | ||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | - | $ | - | $ | - | 2 | $ | 216 | $ | 216 | |||||||||||||||||||
Commercial | 1 | 45 | 45 | 11 | 4,036 | 4,036 | |||||||||||||||||||||||
1 | 45 | 45 | 13 | 4,252 | 4,252 | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 7 | 729 | 729 | 6 | 3,095 | 3,095 | |||||||||||||||||||||||
Non-owner occupied | - | - | - | 6 | 1,754 | 1,754 | |||||||||||||||||||||||
7 | 729 | 729 | 12 | 4,849 | 4,849 | ||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | - | - | - | 1 | 160 | 160 | |||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 2 | 727 | 727 | 26 | 2,819 | 2,819 | |||||||||||||||||||||||
Second deed of trust | 2 | 104 | 104 | 6 | 371 | 371 | |||||||||||||||||||||||
4 | 832 | 832 | 33 | 3,350 | 3,350 | ||||||||||||||||||||||||
Consumer and other | - | - | - | 1 | 21 | - | |||||||||||||||||||||||
12 | $ | 1,606 | $ | 1,606 | 59 | $ | 12,472 | $ | 12,451 | ||||||||||||||||||||
The following table provides information about defaults on TDRs for the year ended December 31, 2014 (dollars in thousands). | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | ||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 1 | $ | 7 | 1 | $ | 102 | |||||||||||||||||||||||
Commercial | 5 | 144 | 1 | 40 | |||||||||||||||||||||||||
6 | 151 | 2 | 142 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1 | 160 | - | - | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 14 | 1,037 | 2 | 325 | |||||||||||||||||||||||||
Second deed of trust | 2 | 104 | - | - | |||||||||||||||||||||||||
Total consumer real estate | 16 | 1,141 | 2 | 325 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 2 | 240 | 1 | 117 | |||||||||||||||||||||||||
Total | 25 | $ | 1,692 | 5 | $ | 584 |
Allowance_for_loan_losses
Allowance for loan losses | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Allowance for loan losses [Abstract] | |||||||||||||||||||||||||||||||||
Allowance for loan losses | Note4. | Allowance for loan losses | |||||||||||||||||||||||||||||||
Activity in the allowance for loan losses was as follows for the periods indicated (in thousands): | |||||||||||||||||||||||||||||||||
Beginning | Provision for | Ending | |||||||||||||||||||||||||||||||
Balance | Loan Losses | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 135 | $ | (103 | ) | $ | - | $ | 2 | $ | 34 | ||||||||||||||||||||||
Commercial | 1,274 | (1,016 | ) | (100 | ) | 44 | 202 | ||||||||||||||||||||||||||
1,409 | (1,119 | ) | (100 | ) | 46 | 236 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,199 | 1,268 | (631 | ) | - | 1,836 | |||||||||||||||||||||||||||
Non-owner occupied | 670 | 430 | (518 | ) | 25 | 607 | |||||||||||||||||||||||||||
Multifamily | 20 | 58 | - | - | 78 | ||||||||||||||||||||||||||||
Farmland | 337 | (111 | ) | (96 | ) | - | 130 | ||||||||||||||||||||||||||
2,226 | 1,645 | (1,245 | ) | 25 | 2,651 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 424 | 506 | (476 | ) | 15 | 469 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,992 | (442 | ) | (277 | ) | 72 | 1,345 | ||||||||||||||||||||||||||
Second deed of trust | 394 | (223 | ) | (86 | ) | 190 | 275 | ||||||||||||||||||||||||||
2,810 | (159 | ) | (839 | ) | 277 | 2,089 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 724 | (447 | ) | (172 | ) | 401 | 506 | ||||||||||||||||||||||||||
Student loans | - | 217 | - | - | 217 | ||||||||||||||||||||||||||||
Consumer and other | 70 | (37 | ) | (25 | ) | 22 | 30 | ||||||||||||||||||||||||||
$ | 7,239 | $ | 100 | $ | (2,381 | ) | $ | 771 | $ | 5,729 | |||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 495 | $ | (462 | ) | $ | - | $ | 102 | $ | 135 | ||||||||||||||||||||||
Commercial | 4,611 | (3,482 | ) | (279 | ) | 424 | 1,274 | ||||||||||||||||||||||||||
5,106 | (3,944 | ) | (279 | ) | 526 | 1,409 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,358 | 252 | (454 | ) | 43 | 1,199 | |||||||||||||||||||||||||||
Non-owner occupied | 817 | 452 | (619 | ) | 20 | 670 | |||||||||||||||||||||||||||
Multifamily | 24 | (4 | ) | - | - | 20 | |||||||||||||||||||||||||||
Farmland | - | 1,233 | (896 | ) | - | 337 | |||||||||||||||||||||||||||
2,199 | 1,933 | (1,969 | ) | 63 | 2,226 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 658 | 23 | (266 | ) | 9 | 424 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,358 | 2,493 | (1,953 | ) | 94 | 1,992 | |||||||||||||||||||||||||||
Second deed of trust | 224 | 498 | (367 | ) | 39 | 394 | |||||||||||||||||||||||||||
2,240 | 3,014 | (2,586 | ) | 142 | 2,810 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 1,162 | 145 | (760 | ) | 177 | 724 | |||||||||||||||||||||||||||
Consumer and other | 101 | 25 | (65 | ) | 9 | 70 | |||||||||||||||||||||||||||
$ | 10,808 | $ | 1,173 | $ | (5,659 | ) | $ | 917 | $ | 7,239 | |||||||||||||||||||||||
Beginning | Provision for | Ending | |||||||||||||||||||||||||||||||
Balance | Loan Losses | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 705 | $ | 542 | $ | (797 | ) | $ | 45 | $ | 495 | ||||||||||||||||||||||
Commercial | 6,798 | 3,444 | (5,645 | ) | 14 | 4,611 | |||||||||||||||||||||||||||
7,503 | 3,986 | (6,442 | ) | 59 | 5,106 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,496 | 623 | (961 | ) | 200 | 1,358 | |||||||||||||||||||||||||||
Non-owner occupied | 1,549 | (301 | ) | (431 | ) | - | 817 | ||||||||||||||||||||||||||
Multifamily | 407 | (373 | ) | (10 | ) | - | 24 | ||||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||||||
3,452 | (51 | ) | (1,402 | ) | 200 | 2,199 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 860 | 669 | (884 | ) | 13 | 658 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,881 | 2,611 | (3,220 | ) | 86 | 1,358 | |||||||||||||||||||||||||||
Second deed of trust | 398 | 468 | (663 | ) | 21 | 224 | |||||||||||||||||||||||||||
3,139 | 3,748 | (4,767 | ) | 120 | 2,240 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 1,656 | 1,231 | (1,880 | ) | 155 | 1,162 | |||||||||||||||||||||||||||
Student loans | - | - | - | - | - | ||||||||||||||||||||||||||||
Consumer and other | 321 | 181 | (408 | ) | 7 | 101 | |||||||||||||||||||||||||||
$ | 16,071 | $ | 9,095 | $ | (14,899 | ) | $ | 541 | $ | 10,808 | |||||||||||||||||||||||
The reversal of the provisions for loan losses totaling $1,119,000 and $3,944,000 for the construction and land development loan portfolio during the year ended December 31, 2014 and 2013, respectively, was attributable to changes in our assessment of the general component of the allowance for loan losses as it related to this portfolio. In both years the general component allocated to this portfolio declined primarily as a result of declines in the historical loss experience from 7.81% at December 31, 2012 to 4.82% at December 31, 2013 and to a net recovery of 0.27% at December 31, 2014. Also contributing to the declines in the general component were declines of approximately $1,643,000 and $12,945,000 in the outstanding loan balance of this portfolio at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||
Recorded Investment in Loans | |||||||||||||||||||||||||||||||||
Allowance | Loans | ||||||||||||||||||||||||||||||||
Loans acquired | Loans acquired | ||||||||||||||||||||||||||||||||
Ending | with deteriorated | Ending | with deteriorated | ||||||||||||||||||||||||||||||
Balance | Individually | Collectively | credit quality | Balance | Individually | Collectively | credit quality | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 34 | $ | - | $ | 34 | $ | - | $ | 4,315 | $ | 164 | $ | 4,151 | $ | - | |||||||||||||||||
Commercial | 202 | 26 | 176 | - | 25,152 | 3,968 | 21,184 | - | |||||||||||||||||||||||||
236 | 26 | 210 | - | 29,467 | 4,132 | 25,335 | - | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,837 | 905 | 932 | - | 58,804 | 8,311 | 50,493 | - | |||||||||||||||||||||||||
Non-owner occupied | 607 | - | 607 | - | 38,892 | 6,593 | 32,299 | - | |||||||||||||||||||||||||
Multifamily | 77 | - | 77 | - | 11,438 | 2,322 | 9,116 | - | |||||||||||||||||||||||||
Farmland | 130 | - | 130 | - | 434 | 21 | 413 | - | |||||||||||||||||||||||||
2,651 | 905 | 1,746 | - | 109,568 | 17,247 | 92,321 | - | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 469 | - | 469 | - | 20,082 | 800 | 19,282 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,345 | 200 | 1,145 | - | 61,837 | 7,900 | 53,937 | - | |||||||||||||||||||||||||
Second deed of trust | 275 | 142 | 133 | - | 7,854 | 1,360 | 6,494 | - | |||||||||||||||||||||||||
2,089 | 342 | 1,747 | - | 89,773 | 10,060 | 79,713 | - | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 506 | 239 | 267 | - | 22,165 | 818 | 21,347 | - | |||||||||||||||||||||||||
Student loans | 217 | - | 217 | 33,562 | - | 33,562 | - | ||||||||||||||||||||||||||
Consumer and other | 30 | - | 30 | - | 1,611 | 23 | 1,588 | - | |||||||||||||||||||||||||
$ | 5,729 | $ | 1,512 | $ | 4,217 | $ | - | $ | 286,146 | $ | 32,280 | $ | 253,866 | $ | - | ||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 135 | $ | - | $ | 135 | $ | - | $ | 2,931 | $ | 216 | $ | 2,715 | $ | - | |||||||||||||||||
Commercial | 1,274 | 227 | 1,047 | - | 28,179 | 5,205 | 22,974 | - | |||||||||||||||||||||||||
1,409 | 227 | 1,182 | - | 31,110 | 5,421 | 25,689 | - | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,200 | 673 | 527 | - | 73,584 | 11,713 | 61,871 | - | |||||||||||||||||||||||||
Non-owner occupied | 670 | 371 | 299 | - | 43,868 | 13,066 | 30,802 | - | |||||||||||||||||||||||||
Multifamily | 19 | - | 19 | - | 11,560 | 2,373 | 9,187 | - | |||||||||||||||||||||||||
Farmland | 337 | - | 337 | - | 1,463 | 117 | 1,346 | - | |||||||||||||||||||||||||
2,226 | 1,044 | 1,182 | - | 130,475 | 27,269 | 103,206 | - | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 424 | - | 424 | - | 21,246 | 1,630 | 19,616 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | - | ||||||||||||||||||||||||||||||||
First deed of trust | 1,992 | 484 | 1,508 | - | 66,873 | 10,361 | 56,512 | - | |||||||||||||||||||||||||
Second deed of trust | 394 | 32 | 362 | - | 8,675 | 1,257 | 7,418 | - | |||||||||||||||||||||||||
2,810 | 516 | 2,294 | - | 96,794 | 13,248 | 83,546 | - | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 724 | 43 | 681 | - | 26,254 | 960 | 25,294 | - | |||||||||||||||||||||||||
Consumer and other | 70 | - | 70 | - | 1,930 | 34 | 1,896 | - | |||||||||||||||||||||||||
$ | 7,239 | $ | 1,830 | $ | 5,409 | $ | - | $ | 286,563 | $ | 46,932 | $ | 239,631 | $ | - |
Premises_and_equipment
Premises and equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and equipment [Abstract] | |||||||||
Premises and equipment | Note 5. | Premises and equipment | |||||||
The following is a summary of premises and equipment as of December 31, 2014 and 2013 (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 4,930 | $ | 3,803 | |||||
Buildings and improvements | 9,311 | 6,500 | |||||||
Furniture, fixtures and equipment | 7,395 | 8,772 | |||||||
Total premises and equipment | 21,636 | 19,075 | |||||||
Less: Accumulated depreciation and amortization | (7,335 | ) | (6,666 | ) | |||||
Premises and equipment, net | $ | 14,301 | $ | 12,409 | |||||
Depreciation and amortization of premises and equipment for 2014, 2013 and 2012 amounted to $681,000, $1,311,000 and $1,366,000 respectively. |
Investment_in_bank_owned_life_
Investment in bank owned life insurance | 12 Months Ended | |
Dec. 31, 2014 | ||
Investment in bank owned life insurance [Abstract] | ||
Investment in bank owned life insurance | Note 6. | Investment in bank owned life insurance |
The Bank is owner and designated beneficiary on life insurance policies in the face amount of $14,246,000 covering certain of its directors and executive officers. The earnings from these policies are used to offset expenses related to retirement plans. The cash surrender value of these policies at December 31, 2014 and 2013 was approximately $6,947,000 and $6,765,000, respectively. |
Deposits
Deposits | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Deposits [Abstract] | |||||||||||||
Deposits | Note 7. | Deposits | |||||||||||
Deposits as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Demand accounts | $ | 77,496 | $ | 57,244 | |||||||||
Interest checking accounts | 42,924 | 43,691 | |||||||||||
Money market accounts | 64,987 | 63,357 | |||||||||||
Savings accounts | 20,643 | 20,229 | |||||||||||
Time deposits of $100,000 and over | 75,559 | 94,245 | |||||||||||
Other time deposits | 97,251 | 111,862 | |||||||||||
Total | $ | 378,860 | $ | 390,628 | |||||||||
The following are the scheduled maturities of time deposits as of December 31, 2014 (in thousands): | |||||||||||||
Greater than | |||||||||||||
Less Than | or Equal to | ||||||||||||
Year Ending December 31, | $100,000 | $100,000 | Total | ||||||||||
2015 | $ | 41,779 | $ | 33,610 | $ | 75,389 | |||||||
2016 | 30,437 | 26,450 | 56,887 | ||||||||||
2017 | 10,959 | 8,270 | 19,229 | ||||||||||
2018 | 6,031 | 2,858 | 8,889 | ||||||||||
2019 | 8,045 | 4,371 | 12,416 | ||||||||||
$ | 97,251 | $ | 75,559 | $ | 172,810 | ||||||||
Deposits held at the Company by related parties, which include officers, directors, greater than 5% shareholders and companies in which directors of the board have a significant ownership interest, approximated $7,305,000 and $8,481,000 at December 31, 2014 and 2013, respectively. |
Borrowings
Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Borrowings [Abstract] | |||||||||
Borrowings | Note 8. | Borrowings | |||||||
The Company uses both short-term and long-term borrowings to supplement deposits when they are available at a lower overall cost to the Company or they can be invested at a positive rate of return. | |||||||||
As a member of the Federal Home Loan Bank of Atlanta, the Bank is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. The Company held $1,073,000 in FHLB stock at December 31, 2014 and $1,417,000 at December 31, 2013 which is held at cost and included in other assets. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of U.S. Government agency securities, FHLB stock and qualified single family first mortgage loans. The Company had FHLB advances of approximately $14,000,000 at December 31, 2014 maturing through 2018. At December 31, 2013 approximately $18,000,000 of advances was outstanding. | |||||||||
At December 31, 2014, the contractual maturities of the advances are as follows (in thousands): | |||||||||
Due in 2015 | $ | 8,000 | |||||||
Due in 2016 | 3,600 | ||||||||
Due in 2017 | 1,600 | ||||||||
Due in 2018 | 800 | ||||||||
$ | 14,000 | ||||||||
The Company uses federal funds purchased and repurchase agreements for short-term borrowing needs. Securities sold under agreements to repurchase are classified as borrowings and generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The carrying value of these repurchase agreements was $3,302,000 and $2,713,000 at December 31, 2014 and 2013, respectively. | |||||||||
Information related to borrowings as of December 31, 2014 and 2013 is as follows (dollars in thousands): | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Maximum outstanding during the year FHLB advances | $ | 18,000 | $ | 28,000 | |||||
Balance outstanding at end of year FHLB advances | 14,000 | 18,000 | |||||||
Average amount outstanding during the year FHLB advances | 15,468 | 23,433 | |||||||
Average interest rate during the year FHLB advances | 2.16 | % | 2.19 | % | |||||
Average interest rate at end of year FHLB advances | 2.07 | % | 2.31 | % |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income taxes [Abstract] | |||||||||||||
Income taxes | Note 9. | Income taxes | |||||||||||
The following summarizes the tax effects of temporary differences which comprise net deferred tax assets and liabilities at December 31, 2014 and 2013 (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforward | $ | 8,017 | $ | 5,316 | |||||||||
Allowance for loan losses | 1,948 | 2,461 | |||||||||||
Unrealized loss on available-for-sale securities | 332 | 1,933 | |||||||||||
Interest on nonaccrual loans | 76 | 913 | |||||||||||
Expenses and writedowns related to foreclosed property | 1,095 | 2,225 | |||||||||||
Merger stock options replacement | 90 | 90 | |||||||||||
Stock compensation | 45 | 3 | |||||||||||
Employee benefits | 954 | 845 | |||||||||||
Pension expense | 40 | 44 | |||||||||||
Depreciation | - | 46 | |||||||||||
Other, net | 32 | 70 | |||||||||||
Goodwill | 55 | 27 | |||||||||||
Total deferred tax assets | 12,684 | 13,973 | |||||||||||
Deferred tax liabilities | |||||||||||||
Depreciation | 11 | - | |||||||||||
Amortization of intangibles | 67 | 100 | |||||||||||
Total deferred tax liabilities | 78 | 100 | |||||||||||
Net deferred tax asset prior to valuation allowance | 12,606 | 13,873 | |||||||||||
Less Unrealized gain/(loss) on available-for-sale securities | (332 | ) | (1,933 | ) | |||||||||
Net deferred tax asset subject to valuation allowance | 12,274 | 11,940 | |||||||||||
Less valuation allowance | 12,274 | 11,940 | |||||||||||
Net deferred tax asset | $ | 332 | $ | 1,933 | |||||||||
The net deferred tax asset is included in other assets on the consolidated balance sheet. Accounting Standards Codification Topic 740, Income Taxes, requires that companies assess whether a valuation allowance should be established against their deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. Management considers both positive and negative evidence and analyzes changes in near-term market conditions as well as other factors which may impact future operating results. In making such judgments, significant weight is given to evidence that can be objectively verified. The deferred tax assets are analyzed quarterly for changes affecting realization. Management determined that as of December 31, 2013, the objective negative evidence represented by the Company’s recent losses outweighed the more subjective positive evidence and, as a result, recognized a valuation allowance for all of the net deferred tax asset that is dependent on future earnings of the Company of approximately $11,940,000. At December 31, 2014, management continues to believe that the objective negative evidence represented by the Company’s continued losses outweighed the more subjective positive evidence and, as a result, recognized an addition to the valuation allowance on its net deferred tax asset of approximately $334,000 resulting in a total valuation allowance at December 31, 2014 of $12,274,000. The net operating losses available to offset future taxable income amounted to $23,580,000 at December 31, 2014 and begin expiring in 2028; $1,257,000 of such amount is subject to a limitation by Section 382 of the Internal Revenue Code of 1986, as amended, to $908,000 per year. | |||||||||||||
The income tax expense (benefit) charged to operations for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax expense (benefit) | $ | 67 | $ | 71 | $ | - | |||||||
Deferred tax expense (benefit) | (401 | ) | (1,852 | ) | (2,174 | ) | |||||||
Valuation allowance | 334 | 1,781 | 6,229 | ||||||||||
Provision (benefit) for income taxes | - | $ | - | $ | 4,055 | ||||||||
A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) before income taxes | $ | (1,037 | ) | $ | (4,007 | ) | $ | (6,344 | ) | ||||
Computed "expected" tax benefit | $ | (352 | ) | $ | (1,362 | ) | $ | (2,157 | ) | ||||
Valuation allowance change | 334 | 1,781 | 6,229 | ||||||||||
State taxes, net of fed | 44 | 46 | - | ||||||||||
Cash surrender value of life insurance | (62 | ) | (64 | ) | (65 | ) | |||||||
Other | 36 | (401 | ) | 48 | |||||||||
Provision (benefit) for income taxes | $ | - | $ | - | $ | 4,055 | |||||||
Commercial banking organizations conducting business in Virginia are not subject to Virginia income taxes. Instead, they are subject to a franchise tax based on bank capital. The Company recorded franchise tax expense of $163,000 for 2012, which is included in other operating expenses. Due to the Company’s adjusted capital level we were not subject to franchise tax expense for the years ended December 31, 2014 and 2013. |
Earnings_loss_per_share
Earnings (loss) per share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings (loss) per share [Abstract] | |||||||||||||
Earnings (loss) per share | Note 10. | Earnings (loss) per share | |||||||||||
The following table presents the basic and diluted earnings per share computations (in thousands except per share data): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator | |||||||||||||
Net loss - basic and diluted | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Preferred stock dividend and accretion | 1,436 | 886 | 879 | ||||||||||
Net loss available to common shareholders | $ | (2,473 | ) | $ | (4,893 | ) | $ | (11,278 | ) | ||||
Denominator | |||||||||||||
Weighted average shares outstanding - basic | 334 | 271 | 266 | ||||||||||
Dilutive effect of common stock options and restricted stock awards | - | - | - | ||||||||||
Weighted average shares outstanding - diluted | 334 | 271 | 266 | ||||||||||
Loss per share - basic and diluted | $ | (7.39 | ) | $ | (18.06 | ) | $ | (42.40 | ) | ||||
Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. Stock options for 6,830, 5,338 and 16,008 shares of common stock were not included in computing diluted earnings per share in 2014, 2013 and 2012 respectively, because their effects were anti-dilutive. Restricted stock awards for 14,642, 320 and 644 shares of common stock were not included in computing diluted earnings per share in 2014, 2013 and 2012 respectively because their effects were also anti-dilutive. (see Notes 13 and 14) |
Lease_commitments
Lease commitments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lease commitments [Abstract] | |||||
Lease commitments | Note 11. | Lease commitments | |||
Certain premises and equipment are leased under various operating leases. Total rent expense charged to operations was $439,000, $446,000 and $367,000 in 2014, 2013 and 2012, respectively. At December 31, 2014, the minimum total rental commitment under such non-cancelable operating leases was as follows (in thousands): | |||||
2015 | $ | 434 | |||
2016 | 196 | ||||
2017 | 154 | ||||
2018 | 158 | ||||
2019 | 126 | ||||
$ | 1,068 |
Commitments_and_contingencies
Commitments and contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and contingencies [Abstract] | |||||||||
Commitments and contingencies | Note 12. | Commitments and contingencies | |||||||
Off-balance-sheet risk – The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amounts recognized in the financial statements. The contract amounts of these instruments reflect the extent of involvement that the Company has in particular classes of instruments. | |||||||||
The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, and to potential credit loss associated with letters of credit issued, is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans and other such on-balance sheet instruments. | |||||||||
At December 31, 2014 and 2013, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): | |||||||||
Contract | Contract | ||||||||
Amount | Amount | ||||||||
2014 | 2013 | ||||||||
Undisbursed credit lines | $ | 38,064 | $ | 37,474 | |||||
Commitments to extend or originate credit | 9,207 | 10,581 | |||||||
Standby letters of credit | 1,571 | 2,192 | |||||||
Total commitments to extend credit | $ | 48,842 | $ | 50,247 | |||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require the payment of a fee. Historically, many commitments expire without being drawn upon; therefore, the total commitment amounts shown in the above table are not necessarily indicative of future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include personal or income-producing commercial real estate, accounts receivable, inventory and equipment. | |||||||||
Concentrations of credit risk – Generally the Company’s loans, commitments to extend credit, and standby letters of credit have been granted to customers in the Company’s market area. Although the Company is building a diversified loan portfolio, a substantial portion of its clients’ ability to honor contracts is reliant upon the economic stability of the Richmond, Virginia area, including the real estate markets in the area. The concentrations of credit by type of loan are set forth in Note 3. The distribution of commitments to extend credit approximates the distribution of loans outstanding. | |||||||||
Consent Order – In February 2012, the Bank entered into a Stipulation and Consent to the Issuance of a Consent Order (“Consent Agreement”) with the Federal Deposit Insurance Corporation (the “FDIC”) and the Virginia Bureau of Financial Institutions (the “Supervisory Authorities”), and the Supervisory Authorities have issued the related Consent Order (the “Order”) effective February 3, 2012. The description of the Consent Agreement and the Order are set forth below: | |||||||||
Management.The Order requires that the Bank have and retain qualified management, including at a minimum a chief executive officer, senior lending officer and chief operating officer, with qualifications and experience commensurate with their assigned duties and responsibilities. The Bank was required to retain a bank consultant to develop a written analysis and assessment of the Bank’s management and staffing needs for the purpose of providing qualified management for the Bank. Following receipt of the consultant’s management report, the Bank was required to formulate a written management plan that incorporated the findings of the management report, a plan of action in response to each recommendation contained in the management report, and a timeframe for completing each action. | |||||||||
Capital Requirements. During the life of the Order, the Bank must have Tier 1 capital equal to or greater than 8 percent of its total assets, and total risk-based capital equal to or greater than 11 percent of the Bank’s total risk-weighted assets. The Bank was required to submit a written capital plan to the Supervisory Authorities that included a contingency plan in the event that the Bank fails to maintain the minimum capital ratios required in the Order, submit a capital plan that is acceptable to the Supervisory Authorities, or implement or adhere to the capital plan. | |||||||||
Charge-offs. The Order requires the Bank to eliminate from its books, by charge-off or collection, all assets or portions of assets classified “Loss” and 50 percent of those classified “Doubtful”. If an asset is classified “Doubtful”, the Bank may, in the alternative, charge off the amount that is considered uncollectible in accordance with the Bank’s written analysis of loan or lease impairment. The Order also prevents the Bank from extending, directly or indirectly, any additional credit to, or for the benefit of, any borrower who has a loan or other extension of credit from the Bank that has been charged off or classified, on whole or in part, “loss” or “doubtful” and is uncollected. The Bank may not extend, directly or indirectly, any additional credit to any borrower who has a loan or other extension of credit from the Bank that has been classified “substandard.” These limitations do not apply if the Bank’s failure to extend further credit to a particular borrower would be detrimental to the best interests of the Bank. | |||||||||
Asset Growth. While the Order is in effect, the Bank must notify the Supervisory Authorities at least 60 days prior to undertaking asset growth that exceeds 10% or more per year or initiating material changes in asset or liability composition. The Bank’s asset growth cannot result in noncompliance with the capital maintenance provisions of the Order unless the Bank receives prior written approval from the Supervisory Authorities. | |||||||||
Restriction on Dividends and Other Payments. While the Order is in effect, the Bank cannot declare or pay dividends, pay bonuses, or pay any form of payment outside the ordinary course of business resulting in a reduction of capital without the prior written approval of the Supervisory Authorities. In addition, the Bank cannot make any distributions of interest, principal, or other sums on subordinated debentures without prior written approval of the Supervisory Authorities. | |||||||||
Brokered Deposits. The Order provides that the Bank may not accept, renew, or roll over any brokered deposits unless it is in compliance with the requirements of the FDIC regulations governing brokered deposits. These regulations prohibit undercapitalized institutions from accepting, renewing, or rolling over any brokered deposits and also prohibit undercapitalized institutions from soliciting deposits by offering an effective yield that exceeds by more than 75 basis points the prevailing effective yields on insured deposits of comparable maturity in the institution’s market area. An “adequately capitalized” institution may not accept, renew, or roll over brokered deposits unless it has applied for and been granted a waiver by the FDIC. | |||||||||
Written Plans and Other Material Terms. Under the terms of the Order, the Bank was required to prepare and submit the following written plans or reports to the Supervisory Authorities: | |||||||||
· | Plan to improve liquidity, contingency funding, interest rate risk, and asset liability management; | ||||||||
· | Plan to reduce assets of $250,000 or greater classified “doubtful” and “substandard”; | ||||||||
· | Revised lending and collection policy to provide effective guidance and control over the Bank’s lending and credit administration functions; | ||||||||
· | Effective internal loan review and grading system; | ||||||||
· | Policy for managing the Bank’s other real estate; | ||||||||
· | Business/strategic plan covering the overall operation of the Bank; | ||||||||
· | Plan and comprehensive budget for all categories of income and expense for the year 2011; | ||||||||
· | Policy and procedures for managing interest rate risk; and | ||||||||
· | Assessment of the Bank’s information technology function. | ||||||||
Under the Order, the Bank’s board of directors agreed to increase its participation in the affairs of the Bank, including assuming full responsibility for the approval of policies and objectives for the supervision of all of the Bank’s activities. The Bank was also required to establish a board committee to monitor and coordinate compliance with the Order. | |||||||||
The Order will remain in effect until modified or terminated by the Supervisory Authorities. | |||||||||
While subject to the Consent Order, we expect that our management and board of directors will continue to focus considerable time and attention on taking corrective actions to comply with the terms. In addition, certain provisions of the Order described above will continue to adversely impact the Company’s businesses and results of operations. | |||||||||
Written Agreement – In June 2012, the Company entered into a written agreement (“Written Agreement”) with the Federal Reserve Bank of Richmond (the “Reserve Bank”). Pursuant to the terms of the Written Agreement, the Company developed and submitted to the Reserve Bank written plans to maintain sufficient capital and correct any violations of Section 23A of the Federal Reserve Act and Regulation W. In addition, the Company submitted a written statement of its planned sources and uses of cash for debt service, operation expenses, and other purposes. | |||||||||
The Company also has agreed that it will not, without prior regulatory approval: | |||||||||
· | pay or declare any dividends; | ||||||||
· | take any other form of payment representing a reduction in Bank’s capital; | ||||||||
· | make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities; | ||||||||
· | incur, increase or guarantee any debt; or | ||||||||
· | purchase or redeem any shares of its stock. | ||||||||
Since entering into the Order and the Written Agreement, the Company has taken numerous steps to comply with their terms. As of December 31, 2014, we believe we have complied with all requirements of the Order and the Written Agreement with the exception of the capital requirements in the Order and correction of the Section 23A of the Federal Reserve Act and Regulation W to the Reserve Bank in the Written Agreement. |
Stockholders_equity_and_regula
Stockholders' equity and regulatory matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stockholders' equity and regulatory matters [Abstract] | |||||||||||||||||||||||||
Stockholders' equity and regulatory matters | Note 13. | Stockholders’ equity and regulatory matters | |||||||||||||||||||||||
On May 1, 2009, as part of the Capital Purchase Program (the “TARP Program”) established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008, the Company entered into a Letter Agreement and Securities Purchase Agreement—Standard Terms (collectively, the “Purchase Agreement”) with the Treasury, pursuant to which the Company sold (i) 14,738 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $4.00 per share, having a liquidation preference of $1,000 per share (the “preferred stock”) and (ii) a warrant (the “Warrant”) to purchase 499,029 shares of the Company’s common stock at an initial exercise price of $4.43 per share, subject to certain anti-dilution and other adjustments, for an aggregate purchase price of $14,738,000 in cash. The fair value of the preferred stock was estimated using discounted cash flow methodology at an assumed market equivalent rate of 13%, with 20 quarterly payments over a five year period, and was determined to be $10,208,000. The fair value of the warrant was estimated using the Black-Scholes option pricing model, with assumptions of 25% volatility, a risk-free rate of 2.03%, a yield of 6.162% and an estimated life of 5 years, and was determined to be $534,000. The aggregate fair value for both the preferred stock and common stock warrants was determined to be $10,742,000 with 95% of the aggregate attributable to the preferred stock and 5% attributable to the common stock warrant. Therefore, the $14,738,000 issuance was allocated with $14,006,000 being assigned to the preferred stock and $732,000 being allocated to the common stock warrant. The difference between the $14,738,000 face value of the preferred stock and the amount allocated of $14,006,000 to the preferred stock is being accreted as a discount on the preferred stock using the effective interest rate method over five years. | |||||||||||||||||||||||||
The preferred stock qualifies as Tier 1 capital and accrued cumulative dividends at a rate of 5% until May 1, 2014 and no accrues at a 9% rate, unless the shares are redeemed by the Company. The preferred stock is generally non-voting, other than on certain matters that could adversely affect the preferred stock. | |||||||||||||||||||||||||
The Warrant was immediately exercisable. The Warrant provides for the adjustment of the exercise price and the number of shares of common stock issuable upon exercise pursuant to customary anti-dilution provisions, such as upon stock splits or distributions of securities or other assets to holders of common stock, and upon certain issuances of common stock at or below a specified price relative to the then-current market price of common stock. The Warrant expires ten years from the issuance date. Pursuant to the Purchase Agreement, the Treasury has agreed not to exercise voting power with respect to any shares of common stock issued upon exercise of the Warrant. | |||||||||||||||||||||||||
As required by the Reserve Bank, the Company notified the Treasury in May 2011 that the Company was going to defer the payment of the quarterly cash dividend of $184,225 due on May 16, 2011, and subsequent quarterly payments, on the preferred stock. The total arrearage on such preferred stock as of December 31, 2014 was $3,618,000. This amount has been accrued for and is included in other liabilities in the consolidated balance sheet. | |||||||||||||||||||||||||
In November 2013, the Company participated in a successful auction of the Company’s preferred stock by the Treasury that resulted in the purchase of the preferred stock by private and institutional investors. | |||||||||||||||||||||||||
On December 4, 2013, the Company issued 67,907 new shares of common stock through a private placement to directors and executive officers. The sale raised $1,684,075 in new capital for the Company. The $24.80 sale price for the common shares was the stock’s book value at September 30, 2013, which represented a 30% premium over the closing price of the stock on December 3, 2013. | |||||||||||||||||||||||||
On August 6, 2014, the Company filed Articles of Amendment to its Articles of Incorporation with the Virginia State Corporation Commission to effect a reverse stock split of its outstanding common stock which became effective on August 8, 2014. As a result of the reverse split, every sixteen shares of the Company’s issued and outstanding common stock were consolidated into one issued and outstanding share of common stock. | |||||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under the capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||||||
Quantitative measures are established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 Capital (as defined in the regulations) to risk-weighted assets, and of Tier 1 Capital to average assets (the Leverage ratio). | |||||||||||||||||||||||||
Federal regulatory agencies are required by law to adopt regulations defining five capital tiers: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. The Bank met the ratio criteria to be categorized as a “well capitalized” institution as of December 31, 2014, 2013 and 2012. However, due to the minimum capital ratios required by the Consent Order, the Bank is currently considered adequately capitalized. The Consent Order requires the Bank to maintain a leverage ratio of at least 8% and a total capital to risk-weighted assets ratio of at least 11%. At December 31, 2014, the Banks leverage ratio was 7.18% and the total capital to risk-weighted assets ratio was 12.08%. As required by the Consent Order, the Bank has provided a capital plan to the Supervisory Authorities that demonstrates how the Bank will come into compliance with the required minimum capital ratios set forth in the Consent Order. When capital falls fellow the “well capitalized” requirement, consequences can include: new branch approval could be withheld, more frequent examinations by the FDIC; brokered deposits cannot be renewed without a waiver from the FDIC; and other potential limitation as described in FDIC Rules and Regulations sections 337.6 and 303, and FDIC Act section 29. In addition, the FDIC insurance assessment increases when an institution falls below the “well capitalized” classification. | |||||||||||||||||||||||||
The capital amounts and ratios at December 31, 2014 and 2013 for the Company and the Bank are presented in the table below (dollars in thousands): | |||||||||||||||||||||||||
For Capital | |||||||||||||||||||||||||
Actual | Adequacy Purposes | To be Well Capitalized | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 31,946 | 11.17 | % | $ | 22,875 | 8 | % | $ | 28,594 | 10 | % | |||||||||||||
Village Bank | 34,253 | 12.08 | % | 22,686 | 8 | % | 28,358 | 10 | % | ||||||||||||||||
Tier 1 capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | 21,037 | 7.36 | % | 11,437 | 4 | % | 17,156 | 6 | % | ||||||||||||||||
Village Bank | 30,681 | 10.82 | % | 11,343 | 4 | % | 17,015 | 6 | % | ||||||||||||||||
Leverage ratio (Tier 1 capital to average assets) | |||||||||||||||||||||||||
Consolidated | 21,037 | 4.9 | % | 17,170 | 4 | % | 21,463 | 5 | % | ||||||||||||||||
Village Bank | 30,681 | 7.18 | % | 17,084 | 4 | % | 21,355 | 5 | % | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 34,652 | 10.66 | % | $ | 25,997 | 8 | % | $ | 32,496 | 10 | % | |||||||||||||
Village Bank | 35,192 | 10.9 | % | 25,828 | 8 | % | 32,285 | 10 | % | ||||||||||||||||
Tier 1 capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | 24,027 | 7.39 | % | 12,999 | 4 | % | 19,498 | 6 | % | ||||||||||||||||
Village Bank | 31,117 | 9.64 | % | 12,914 | 4 | % | 19,371 | 6 | % | ||||||||||||||||
Leverage ratio (Tier 1 capital to average assets) | |||||||||||||||||||||||||
Consolidated | 24,027 | 5.32 | % | 18,069 | 4 | % | 22,587 | 5 | % | ||||||||||||||||
Village Bank | 31,117 | 6.92 | % | 17,984 | 4 | % | 22,480 | 5 | % | ||||||||||||||||
-1 | As a result of the Consent Order, the Bank is not considered well capitalized even though it meets the ratio requirements to be classified as such. The Consent Order requires the total capital to risk-weighted assets to be at least 11% and the leverage ratio to be at least 8%. | ||||||||||||||||||||||||
The Company is currently prohibited by its Written Agreement with the Reserve Bank from making dividend or interest payments on the TARP Program preferred stock or trust preferred capital notes without prior regulatory approval. In addition, the Consent Order with the Supervisory Authorities provides that the Bank will not pay any dividends, pay bonuses or make any other form of payment outside the ordinary course of business resulting in a reduction of capital, without regulatory approval. At December 31, 2014, the aggregate amount of all of the Company’s total accrued but deferred dividends payments on the preferred stock was $3,618,000. |
Stock_incentive_plan
Stock incentive plan | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Stock incentive plan [Abstract] | |||||||||||||||||||||||||||||||||
Stock incentive plan | Note 14. | Stock incentive plan | |||||||||||||||||||||||||||||||
In accordance with accounting standards the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award rather than disclosed in the financial statements. | |||||||||||||||||||||||||||||||||
The following table summarizes options outstanding under the stock incentive plan at the indicated dates: | |||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||||||
Exercise | Fair Value | Intrinsic | Exercise | Fair Value | Intrinsic | ||||||||||||||||||||||||||||
Options | Price | Per Share | Value | Options | Price | Per Share | Value | ||||||||||||||||||||||||||
Options outstanding, beginning of period | 6,210 | $ | 99.03 | $ | 64.96 | 15,977 | $ | 155.36 | $ | 74.4 | |||||||||||||||||||||||
Granted | 884 | 25.28 | 15.52 | 1,760 | 25.28 | 9.76 | |||||||||||||||||||||||||||
Forfeited | (264 | ) | 25.28 | 80.33 | (11,527 | ) | 123.2 | 79.84 | |||||||||||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||||||||||
Options outstanding, end of period | 6,830 | $ | 92.34 | $ | 57.97 | $ | - | 6,210 | $ | 99.03 | $ | 64.96 | $ | - | |||||||||||||||||||
Options exercisable, end of period | 5,318 | 4,647 | |||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Exercise | Fair Value | Intrinsic | |||||||||||||||||||||||||||||||
Options | Price | Per Share | Value | ||||||||||||||||||||||||||||||
Options outstanding, beginning of period | 16,561 | $ | 151.68 | $ | 75.2 | ||||||||||||||||||||||||||||
Granted | 313 | 16 | 17.28 | ||||||||||||||||||||||||||||||
Forfeited | (897 | ) | 128.32 | 69.44 | |||||||||||||||||||||||||||||
Exercised | - | - | - | ||||||||||||||||||||||||||||||
Options outstanding, end of period | 15,977 | $ | 155.36 | $ | 74.4 | $ | - | ||||||||||||||||||||||||||
Options exercisable, end of period | 15,664 | ||||||||||||||||||||||||||||||||
The fair value of each option granted is estimated on the date of grant using the Black-Sholes option pricing model with the following assumptions used for grants for the years indicated: | |||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 2.57 | % | |||||||||||||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||||||||||||
Expected weighted average term | 7 years | ||||||||||||||||||||||||||||||||
Volatility | 50 | % | |||||||||||||||||||||||||||||||
The following table summarizes information about stock options outstanding at December 31, 2014: | |||||||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||||||||||||||
Years of | Average | Average | |||||||||||||||||||||||||||||||
Range of | Number of | Contractual | Exercise | Number of | Exercise | ||||||||||||||||||||||||||||
Exercise Prices | Options | Life | Price | Options | Price | ||||||||||||||||||||||||||||
$16.00-$75.28 | 2,929 | 6.3 | $ | 24.47 | 1,417 | $ | 25.46 | ||||||||||||||||||||||||||
$140 - $200 | 3,901 | 0.8 | 143.3 | 3,901 | 143.3 | ||||||||||||||||||||||||||||
6,830 | 3.16 | 92.34 | 5,318 | 111.9 | |||||||||||||||||||||||||||||
During the first and third quarters of 2014, we granted certain officers 4,423, 6,278 and 1,625 restricted shares of common stock with a weighted average fair market value of $21.28, $27.04 and $27.69 at the date of grant respectively. These restricted stock awards have three-year graded vesting. Prior to vesting, these shares are subject to forfeiture to us without consideration upon termination of employment under certain circumstances. The total number of shares underlying non-vested restricted stock was 11,767 at December 31, 2014. | |||||||||||||||||||||||||||||||||
The fair value of the stock is calculated under the same methodology as stock options and the expense is recognized over the vesting period. Unamortized stock-based compensation related to non-vested share based compensation arrangements granted under the Incentive Plan as of December 31, 2014 and 2013 was $329,000 and $88,000, respectively. The time based unamortized compensation of $329,000 is expected to be recognized over a weighted average period of 2.29 years. There were no forfeitures of restricted stock awards in 2014 and 2013. | |||||||||||||||||||||||||||||||||
Stock-based compensation expense was $131,000, $11,000 and $7,000 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Trust_preferred_securities
Trust preferred securities | 12 Months Ended | |
Dec. 31, 2014 | ||
Trust preferred securities [Abstract] | ||
Trust preferred securities | Note 15. | Trust preferred securities |
During the first quarter of 2005, Southern Community Financial Capital Trust I, a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On February 24, 2005, $5.2 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest (three-month LIBOR plus 2.15%) which adjusts, and is payable, quarterly. The interest rate was 2.40% and 2.39% at December 31, 2014 and 2013, respectively. The securities were redeemable at par beginning on March 15, 2010 and each quarter after such date until the securities mature on March 15, 2035. No amounts have been redeemed at December 31, 2014 and there are no plans to do so. The principal asset of the Trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. | ||
During the third quarter of 2007, Village Financial Statutory Trust II, a wholly–owned subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On September 20, 2007, $3.6 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have LIBOR-indexed floating rate of interest (three-month LIBOR plus 1.4%) which adjusts and is also payable quarterly. The interest rate at December 31, 2014 was 1.65%. The securities may be redeemed at par at any time commencing in December 2012 until the securities mature in 2037. The principal asset of the Trust is $3.6 million of the Company’s junior subordinated securities with like maturities and like interest rates to the Trust Preferred Capital Notes. | ||
The Trust Preferred Capital Notes may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. The portion of the Trust Preferred Capital Notes not considered as Tier 1 capital may be included in Tier 2 capital. | ||
The obligations of the Company with respect to the issuance of the Trust Preferred Capital Notes constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the Trust Preferred Capital Notes. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Trust Preferred Capital Notes and require a deferral of common dividends. In consideration of our agreements with our regulators, which require regulatory approval to make interest payments on these securities, the Company has deferred an aggregate of $1,061,000 in interest payments on the junior subordinated debt securities as of December 31, 2014. The Company has been deferring interest payments since June 2011. Although we elected to defer payment of the interest due, the amounts has been accrued in the consolidated balance sheet and included in interest expense in the consolidated statement of operations. |
Retirement_plans
Retirement plans | 12 Months Ended | |
Dec. 31, 2014 | ||
Retirement plans [Abstract] | ||
Retirement plans | Note 16. | Retirement plans |
401K Plan: The Bank provides a qualified 401K plan to all eligible employees which is administered through the Virginia Bankers Association Benefits Corporation. Employees are eligible to participate in the plan after three months of employment. Eligible employees may, subject to statutory limitations, contribute a portion of their salary to the plan through payroll deduction. Due to the recent economic conditions the Bank ceased its matching program in 2009 however beginning January 2013 the Bank reinstituted the 401K match. The Bank provided a matching contribution of $.50 for every $1.00 the participant contributes up to the first 4% of their salary. Participants are fully vested in their own contributions and vest equally over three years of service in the Bank’s matching contributions. Total contributions to the plan for the years ended December 31, 2014 and 2013 were $150,000 and $165,000, respectively. | ||
Supplemental Executive Retirement Plan: The Bank established the Village Bank Supplemental Executive Retirement Plan (the “SERP”) on January 1, 2005 to provide supplemental retirement income to certain executive officers as designated by the Personnel Committee, later replaced by the Compensation Committee, and approved by the board of directors. While we are subject to the regulatory agreements, the respective regulatory agencies also review and approve new participants or changes in benefits under the SERP. The SERP is an unfunded employee pension plan under the provisions of ERISA. An eligible employee, once designated by the Committee and approved by the board of directors in writing to participate in the SERP, becomes a participant in the SERP 60 days following such approval (unless an earlier participation date is approved). There are currently seven executive officers who participate in the SERP. The retirement benefit to be received by a participant is determined by the Committee and approved by the board of directors and is payable in equal monthly installments over the period specified in the SERP for each respective participant, commencing on the first day of the month following a participant’s retirement or termination of employment, provided the participant has been employed by the Bank for a minimum of 10 years (6 years in the case of one participant). The Compensation Committee, in its sole discretion, may choose to treat a participant who has experienced a termination of employment on or after attaining age 65 but prior to completing his service requirement as having completed his service requirement. At December 31, 2014 and 2013, the Bank’s liability under the SERP was $1,840,000 and $1,655,000 respectively, and expense for the years ended December 31, 2014, 2013 and 2012 was $257,000, $462,000 and $141,000 respectively. The increase in cash surrender value of the BOLI related to the participants was $183,000, $189,000 and $191,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Directors’ Deferral Plan: The Bank established the Village Bank Outside Directors Deferral Plan (the “Directors Deferral Plan”) on January 1, 2005 under which non-employee directors of Village Bank have the opportunity to defer receipt of all or a portion of certain compensation until retirement or departure from the board of directors. Deferral of compensation under the Directors Deferral Plan is voluntary by non-employee directors and to participate in the plan a director must file a deferral election as provided in the plan. A director shall become an active participant with respect to a plan year (as defined in the plan) only if he is expected to have compensation during the plan year and he timely files a deferral election. A separate account is established for each participant in the plan and each account shall, in addition to compensation deferred at the election of the participant, be credited with interest on the balance of the account, the rate of such interest to be established by the board of directors in its sole discretion at the beginning of each plan year. For those directors electing to purchase stock, the obligation will only be settled by delivery of the fixed number of shares they purchased. At December 31, 2014 and 2013, the Bank’s liability under the Directors Deferral Plan was $206,000 and $83,000, respectively, and expense for the years ended December 31, 2014, 2013 and 2012 was $123,000, $165,000 and $181,000, respectively. In the fourth quarter of 2013 certain directors electing to purchase common stock with funds from their deferred compensation account causing the December 31, 2013 liability to be lower than the December 31, 2014 liability. A rabbi trust was established to hold the shares. At December 31, 2014 and 2013 the trust held 35,389 shares of Company common stock totaling $877,644. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||
Fair Value | Note 17. | Fair Value | |||||||||||||||||
Effective January 1, 2008, the Company adopted the provisions of FASB Codification Topic 820: Fair Value Measurements which defines fair value, establishes a framework for measuring fair value under U.S GAAP, and expands disclosures about fair value measurements. | |||||||||||||||||||
FASB Codification Topic 820: Fair Value Measurements and Disclosures establishes a hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair values hierarchy is as follows: | |||||||||||||||||||
· | Level 1 Inputs— Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||
· | Level 2 Inputs — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||
· | Level 3 Inputs - Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||
The Company used the following methods to determine the fair value of each type of financial instrument: | |||||||||||||||||||
Securities: Fair values for securities available-for-sale are obtained from an independent pricing service. The prices are not adjusted. The independent pricing service uses industry-standard models to price U.S. Government agency obligations and mortgage backed securities that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Securities of obligations of state and political subdivisions are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. Substantially all assumptions used by the independent pricing service are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace (Levels 1 and 2). | |||||||||||||||||||
Impaired loans: The fair values of impaired loans are measured for impairment using the fair value of the collateral for collateral-dependent loans on a nonrecurring basis. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or when economic or other circumstances dictate a need to obtain an updated appraisal of the property, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Operations. | |||||||||||||||||||
Real estate owned: Real estate owned assets are adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, real estate owned assets are carried at fair value less costs to sell. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. | |||||||||||||||||||
Assets measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below: | |||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||
at December 31, 2014 Using | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Quoted Prices | |||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Financial Assets - Recurring | |||||||||||||||||||
US Government Agencies | $ | 33,348 | - | 33,348 | - | ||||||||||||||
MBS | 484 | - | 484 | - | |||||||||||||||
Municipals | 5,711 | - | 5,711 | - | |||||||||||||||
Residential loans held for sale | 9,914 | - | 9,914 | - | |||||||||||||||
- | |||||||||||||||||||
Financial Assets - Non-Recurring | |||||||||||||||||||
Impaired loans | 32,280 | - | 30,028 | 2,252 | |||||||||||||||
Real estate owned | 12,638 | - | 12,168 | 470 | |||||||||||||||
Fair Value Measurement | |||||||||||||||||||
at December 31, 2013 Using | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Quoted Prices | |||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Financial Assets - Recurring | |||||||||||||||||||
US Treasuries | $ | 7,210 | $ | - | 7,210 | $ | - | ||||||||||||
US Government Agencies | 34,351 | - | 34,351 | - | |||||||||||||||
MBS | 2,752 | - | 2,752 | - | |||||||||||||||
Municipals | 13,435 | - | 13,435 | - | |||||||||||||||
Residential loans held for sale | 8,371 | - | 8,371 | - | |||||||||||||||
- | |||||||||||||||||||
Financial Assets - Non-Recurring | |||||||||||||||||||
Impaired loans | 46,932 | - | 42,679 | 4,253 | |||||||||||||||
Real estate owned | 16,742 | - | 15,405 | 1,337 | |||||||||||||||
The following table presents the changes in the Level 3 fair value category for the years ended December 31, 2014 and 2013. | |||||||||||||||||||
Impaired | Real Estate | ||||||||||||||||||
Loans | Owned | Total Assets | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Balance at December 31, 2012 | $ | 7,759 | $ | 1,529 | $ | 9,288 | |||||||||||||
Total realized and unrealized gains (losses) | |||||||||||||||||||
Included in earnings | - | 241 | 241 | ||||||||||||||||
Included in other comprehensive income | - | - | - | ||||||||||||||||
Net transfers in and/or out of Level 3 | (3,506 | ) | (433 | ) | (3,939 | ) | |||||||||||||
Balance at December 31, 2013 | $ | 4,253 | $ | 1,337 | $ | 5,590 | |||||||||||||
Total realized and unrealized gains (losses) | |||||||||||||||||||
Included in earnings | - | (381 | ) | (381 | ) | ||||||||||||||
Included in other comprehensive income | - | - | - | ||||||||||||||||
Net transfers in and/or out of Level 3 | (1,990 | ) | (486 | ) | (2,476 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 2,263 | $ | 470 | $ | 2,733 | |||||||||||||
In general, fair value of securities is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon market prices determined by an outside, independent entity that primarily uses as inputs, observable market-based parameters. Fair value of loans held for sale is based upon internally developed models that primarily use as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly and or quarter valuation process. | |||||||||||||||||||
Cash and cash equivalents – The carrying amount of cash and cash equivalents approximates fair value. | |||||||||||||||||||
Investment securities – The fair value of investment securities held-to-maturity and available-for-sale is estimated based on quoted prices for similar assets or liabilities determined by bid quotations received from independent pricing services. The carrying amount of other investments approximates fair value. | |||||||||||||||||||
Loans – For variable rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. For all other loans, fair values are calculated by discounting the contractual cash flows using estimated market discount rates which reflect the credit and interest rate risk inherent in the loans, or by using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | |||||||||||||||||||
Deposits – The fair value of deposits with no stated maturity, such as demand, interest checking and money market, and savings accounts, is equal to the amount payable on demand at year-end. The fair value of certificates of deposit is based on the discounted value of contractual cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||
Borrowings – The fair value of borrowings is based on the discounted value of contractual cash flows using the rates currently offered for borrowings of similar remaining maturities. | |||||||||||||||||||
Accrued interest – The carrying amounts of accrued interest receivable and payable approximate fair value. | |||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Level in Fair | |||||||||||||||||||
Value | Carrying | Estimated | Carrying | Estimated | |||||||||||||||
Hierarchy | Value | Fair Value | Value | Fair Value | |||||||||||||||
(In thousands) | |||||||||||||||||||
Financial assets | |||||||||||||||||||
Cash | Level 1 | $ | 25,115 | $ | 25,115 | $ | 15,221 | $ | 15,221 | ||||||||||
Cash equivalents | Level 2 | 23,988 | 23,988 | 24,988 | 24,988 | ||||||||||||||
Investment securities available for sale | Level 2 | 39,542 | 39,542 | 57,748 | 57,748 | ||||||||||||||
Federal Home Loan Bank stock | Level 2 | 1,073 | 1,073 | 1,417 | 1,417 | ||||||||||||||
Loans held for sale | Level 2 | 9,914 | 9,914 | 8,371 | 8,371 | ||||||||||||||
Loans | Level 2 | 253,855 | 249,942 | 233,075 | 236,582 | ||||||||||||||
Impaired loans | Level 2 | 30,028 | 30,028 | 42,679 | 42,679 | ||||||||||||||
Impaired loans | Level 3 | 2,263 | 2,263 | 4,253 | 4,253 | ||||||||||||||
Other real estate owned | Level 2 | 12,168 | 12,168 | 15,405 | 15,405 | ||||||||||||||
Other real estate owned | Level 3 | 470 | 470 | 1,337 | 1,337 | ||||||||||||||
Bank owned life insurance | Level 3 | 6,947 | 6,947 | 6,764 | 6,765 | ||||||||||||||
Accrued interest receivable | Level 2 | 1,372 | 1,372 | 1,486 | 1,486 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Deposits | Level 2 | 378,860 | 379,857 | 390,628 | 391,814 | ||||||||||||||
FHLB borrowings | Level 2 | 14,000 | 14,065 | 18,000 | 18,212 | ||||||||||||||
Trust preferred securities | Level 2 | 8,764 | 7,274 | 8,764 | 7,274 | ||||||||||||||
Other borrowings | Level 2 | 3,302 | 3,303 | 2,713 | 3,289 | ||||||||||||||
Accrued interest payable | Level 2 | 1,167 | 1,167 | 1,093 | 1,093 |
Parent_corporation_only_financ
Parent corporation only financial statements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Parent corporation only financial statements [Abstract] | |||||||||||||
Parent corporation only financial statements | Note 18. | Parent corporation only financial statements | |||||||||||
Village Bank and Trust Financial Corp. | |||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Balance Sheet | |||||||||||||
(in thousands) | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 84 | $ | 460 | |||||||||
Investment in subsidiaries | 30,158 | 27,574 | |||||||||||
Investment in special purpose subsidiary | 264 | 264 | |||||||||||
Prepaid expenses and other assets | 2,062 | 1,823 | |||||||||||
$ | 32,568 | $ | 30,121 | ||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Liabilities | |||||||||||||
Balance due to nonbank subsidiaries | $ | 8,764 | $ | 8,764 | |||||||||
Other liabilities | 4,746 | 3,113 | |||||||||||
Total liabilities | 13,510 | 11,877 | |||||||||||
Shareholders' equity | |||||||||||||
Preferred stock | 59 | 59 | |||||||||||
Warrant surplus | 732 | 732 | |||||||||||
Discount on preferred stock | - | (50 | ) | ||||||||||
791 | 741 | ||||||||||||
Surplus related to preferred stock (CPP) | 14,679 | 14,679 | |||||||||||
Additional paid-in capital | 43,509 | 23,375 | |||||||||||
58,188 | 38,054 | ||||||||||||
Common stock | 1,339 | 21,353 | |||||||||||
Retained earnings (deficit) | (40,539 | ) | (38,066 | ) | |||||||||
Stock in directors rabbi trust | (878 | ) | 878 | ||||||||||
Directors deferred fees obligation | 878 | 878 | |||||||||||
Accumulated other comprehensive loss | (721 | ) | (3,838 | ) | |||||||||
Total stockholders' equity | 19,058 | 18,244 | |||||||||||
$ | 32,568 | $ | 30,121 | ||||||||||
Village Bank and Trust Financial Corp. | |||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Statements of Operations and Comprehensive Loss | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | |||||||||||||
Village Bank money market | $ | 1 | $ | 3 | $ | 8 | |||||||
Interest expense | |||||||||||||
Interest on note TARP | - | 55 | 58 | ||||||||||
Interest on trust preferred securities | 215 | 183 | 346 | ||||||||||
215 | 238 | 404 | |||||||||||
Net interest loss | (214 | ) | (235 | ) | (396 | ) | |||||||
Expenses | |||||||||||||
Equipment | - | 2 | 7 | ||||||||||
Supplies | 54 | 57 | 50 | ||||||||||
Legal | - | 7 | - | ||||||||||
Other outside services | 53 | 47 | 20 | ||||||||||
Other | 52 | 33 | 25 | ||||||||||
Total expenses | 159 | 146 | 102 | ||||||||||
Net loss before undistributed loss of subsidiary | (373 | ) | (381 | ) | (498 | ) | |||||||
Undistributed loss of subsidiary | (664 | ) | (3,626 | ) | (8,489 | ) | |||||||
Net loss before income tax benefit | (1,037 | ) | (4,007 | ) | (8,987 | ) | |||||||
Income tax benefit | - | - | 1,412 | ||||||||||
Net loss | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Total comprehensive Income (loss) | $ | 2,080 | $ | (7,679 | ) | $ | (10,558 | ) | |||||
Village Bank and Trust Financial Corp. | |||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net loss | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Adjustments to reconcile net income to net cash used in by operating activities | |||||||||||||
Depreciation and amortization | - | 2 | 9 | ||||||||||
Undistributed loss of subsidiary | 664 | 3,626 | 8,489 | ||||||||||
(Increase) decrease in other assets | (239 | ) | (8 | ) | 5,015 | ||||||||
Increase (decrease) in other liabilities | 247 | 252 | (3,200 | ) | |||||||||
Net cash used in operations | (365 | ) | (135 | ) | (86 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||||
Payments for investments in and advances to subsidiaries | - | (1,684 | ) | (1,500 | ) | ||||||||
Net cash used in investing activities | - | (1,684 | ) | (1,500 | ) | ||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from issuance of common stock | (11 | ) | 1,684 | - | |||||||||
Net cash provided by (used in) financing activities | (11 | ) | 1,684 | - | |||||||||
Net decrease in cash | (376 | ) | (135 | ) | (1,586 | ) | |||||||
Cash, beginning of year | 460 | 595 | 2,181 | ||||||||||
Cash, end of year | $ | 84 | $ | 460 | $ | 595 |
Subsequent_Event
Subsequent Event | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Event [Abstract] | |||
Subsequent Event | Note19. | Subsequent Event | |
On February 10, 2015, the Company issued a Prospectus distributing to holders of our common stock non-transferable subscription rights to purchase up to an aggregate of 1,051,866 shares of our common stock (the “offering”). Each shareholder will receive one subscription right for each share of common stock owned. Each subscription right entitles the shareholder to purchase three shares of common stock at the subscription price of $13.87 per share. Assuming the offering is fully-subscribed, total gross proceeds of the offering will amount to $14,589,000. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Business | Business |
The Company is the holding company of Village Bank (the “Bank”). The Bank opened to the public on December 13, 1999 as a traditional community bank offering deposit and loan services to individuals and businesses in the Richmond, Virginia metropolitan area. Village Bank Mortgage Corporation (“Village Mortgage”) is a full service mortgage banking company wholly-owned by the Bank. | |
The Bank is subject to regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Bank’s business is susceptible to being affected by state and federal legislation and regulations. | |
The majority of the Company’s real estate loans are collateralized by properties in markets in the Richmond, Virginia metropolitan area. Accordingly, the ultimate collectability of those loans collateralized by real estate is particularly susceptible to changes in market conditions in the Richmond area. | |
Basis of presentation and consolidation | Basis of presentation and consolidation |
The consolidated financial statements include the accounts of the Company, the Bank and Village Mortgage. All material intercompany balances and transactions have been eliminated in consolidation. | |
Use of estimates | Use of estimates |
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the balance sheets dates and revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision, and the estimate of the fair value of assets held for sale. | |
Investment securities | Investment securities |
At the time of purchase, debt securities are classified into the following categories: held to maturity, available for sale or trading. Debt securities that the Company has both the positive intent and ability to hold to maturity are classified as held to maturity. Held to maturity securities are stated at amortized cost adjusted for amortization of premiums and accretion of discounts on purchase using a method that approximates the effective interest method. Investments classified as trading or available for sale are stated at fair value. Changes in fair value of trading investments are included in current earnings while changes in fair value of available for sale investments are excluded from current earnings and reported, net of taxes, as a separate component of other comprehensive income. Presently, the Company does not maintain a portfolio of trading securities or held to maturity. | |
The fair value of investment securities held to maturity and available for sale is estimated based on quoted prices for similar assets determined by bid quotations received from independent pricing services. Declines in the fair value of securities below their amortized cost that are other than temporary are reflected in earnings or other comprehensive income, as appropriate. For those debt securities whose fair value is less than their amortized cost basis, we consider our intent to sell the security, whether it is more likely than not that we will be required to sell the security before recovery and if we do not expect to recover the entire amortized cost basis of the security. In analyzing an issuer’s financial condition, we may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. | |
Interest income is recognized when earned. Realized gains and losses for securities classified as available-for-sale and held-to-maturity are included in earnings and are derived using the specific identification method for determining the cost of securities sold. | |
Loans held for sale | Loans held for sale |
The Company, through the Bank’s mortgage banking subsidiary, Village Bank Mortgage, originates residential mortgage loans for sale in the secondary market. Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors. Upon entering into a commitment to originate a loan, the Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist that the investor fails to meet its purchase obligation, however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | |
Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Gains on the sale of loans totaling approximately $4,449,000, $7,744,000 and $8,562,000 were realized during the years ended December 31, 2014, 2013 and 2012, respectively. | |
Once a residential mortgage loan is sold to a permanent investor, the Company has no further involvement or retained interest in the loan. There are limited circumstances in which the permanent investor can contractually require the Company to repurchase the loan. The Company makes no provision for any such recourse related to loans sold as history has shown repurchase of loans under these circumstances has been remote. | |
The Company, through Village Mortgage, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed rate lock commitments. Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 45 days. The Company protects itself from changes in interest rates during this period by requiring a firm purchase agreement from a permanent investor before a loan can be closed. As a result, the Company is not exposed to losses nor will it realize gains or losses related to its rate lock commitments due to changes in interest rates. | |
The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts contracts, no significant gains or losses have occurred on the rate lock commitments. | |
At December 31, 2014, Village Mortgage had rate lock commitments to originate mortgage loans aggregating approximately $9,207,000 and loans held for sale of approximately $9,914,000. Village Mortgage has entered into corresponding commitments with third party investors to sell loans of approximately $19,121,000. Under the best efforts contractual relationship with these investors, Village Mortgage is obligated to sell the loans, and the investor is obligated to purchase the loans, only if the loans close. No other obligation exists. As a result of these best efforts contractual relationships with these investors Village Mortgage is not exposed to losses, nor will it realize gains, related to its rate lock commitments due to changes in interest rates. | |
Transfers of financial assets | Transfers of financial assets |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Bank and put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Our transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2014, 2013 and 2012, and the sale of residential mortgage loans in the secondary market; the extent of which are disclosed in the Consolidated Statements of Cash Flows. | |
Loans | Loans |
Loans are stated at the principal amount outstanding, net of unearned income. Loan origination fees and certain direct loan origination costs are deferred and amortized to interest income over the life of the loan as an adjustment to the loan’s yield over the term of the loan. | |
Interest is accrued on outstanding principal balances, unless the Company considers collection to be doubtful. Commercial and unsecured consumer loans are designated as non-accrual when payment is delinquent 90 days or at the point which the Company considers collection doubtful, if earlier. Mortgage loans and most other types of consumer loans past due 90 days or more may remain on accrual status if management determines that such amounts are collectible. When loans are placed in non-accrual status, previously accrued and unpaid interest is reversed against interest income in the current period and interest is subsequently recognized only to the extent cash is received as long as the remaining recorded investment in the loan is deemed fully collectible. Loans may be placed back on accrual status when, in the opinion of management, the circumstances warrant such action such as a history of timely payments subsequent to being placed on nonaccrual status, additional collateral is obtained or the borrowers cash flows improve. | |
Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The total contractual amount of standby letters of credit, whose contract amount represent credit risk was approximately $1,571,000 at December 31, 2014 and approximately $2,192,000 at December 31, 2013. | |
Allowance for loan losses | Allowance for loan losses |
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. | |
The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the adequacy of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as changes in the nature and volume of the loan portfolio, current economic conditions which may affect a borrower’s ability to repay, overall portfolio quality, and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. | |
The allowance consists of general and specific components. The general component covers non-classified loans and is based on historical loss experience and risk characteristics (i.e. trends in delinquencies and other non-performing loans, changes in economic conditions on both a local and national level, and changes in the categories of loans comprising the loan portfolio) adjusted for qualitative factors. The specific component relates to loans that we have concluded, based on the value of collateral, guarantees and any other pertinent factors, have known losses. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. | |
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. | |
Troubled debt restructurings | Troubled debt restructurings |
A loan or lease is accounted for as a troubled debt restructuring if we, for economic or legal reasons related to the borrower’s financial condition, grant a significant concession to the borrower that we would not otherwise consider. A troubled debt restructuring may involve the receipt of assets from the debtor in partial or full satisfaction of the loan or lease, or a modification of terms such as a reduction of the stated interest rate or balance of the loan or lease, a reduction of accrued interest, an extension of the maturity date at a stated interest rate lower than the current market rate for a new loan with similar risk, or some combination of these concessions. Troubled debt restructurings generally remain categorized as nonperforming loans and leases until a six-month payment history has been maintained. | |
In accordance with current accounting guidance, loans modified as troubled debt restructurings are, by definition, considered to be impaired loans. Impairment for these loans is measured on a loan-by-loan basis similar to other impaired loans as described above under Allowance for loan losses. Certain loans modified as troubled debt restructurings may have been previously measured for impairment under a general allowance methodology (i.e., pooling), thus at the time the loan is modified as a troubled debt restructuring the allowance will be impacted by the difference between the results of these two measurement methodologies. Loans modified as troubled debt restructurings that subsequently default are factored into the determination of the allowance in the same manner as other defaulted loans. | |
Real estate acquired in settlement of loans | Real estate acquired in settlement of loans |
Real estate acquired through or in lieu of foreclosure is initially recorded at estimated fair value less estimated selling costs. Subsequent to the date of acquisition, it is carried at the lower of cost or fair value, adjusted for net selling costs. If fair value declines subsequent to foreclosure a valuation allowance is recorded through expense. Operating costs after acquisition are expensed as incurred. The valuation allowance at December 31, 2014 was $2,369,000. Costs relating to the development and improvement of such property are capitalized when appropriate, whereas those costs relating to holding the property are expensed. | |
Asset held for sale | Asset held for sale |
Asset held for sale at December 31, 2014 is the Company’s current headquarters building at the Watkins Centre. It was transferred from premises and equipment to asset held for sale at cost less accumulated depreciation at the date of transfer, December 31, 2013, which was lower than its fair value, adjusted for net selling costs, at that date. | |
Premises and equipment | Premises and equipment |
Land is carried at cost. Premises and equipment are carried at cost less accumulated depreciation and amortization. Depreciation of buildings and improvements is computed using the straight-line method over the estimated useful lives of the assets of 39 years. Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets ranging from 3 to 7 years. Amortization of premises (leasehold improvements) is computed using the straight-line method over the term of the lease or estimated lives of the improvements, whichever is shorter. | |
Income taxes | Income taxes |
Deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. The primary temporary differences are the allowance for loan losses and depreciation and amortization. The effect on recorded deferred income taxes of a change in tax laws or rates is recognized in income in the period that includes the enactment date. To the extent that available evidence about the future raises doubt about the realization of a deferred income tax asset, a valuation allowance is established. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company has not identified any material uncertain tax positions. | |
Consolidated statements of cash flows | Consolidated statements of cash flows |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, due from banks (including cash items in process of collection), interest-bearing deposits with banks and federal funds sold. Generally, federal funds are purchased and sold for one-day periods. Cash flows from loans originated by the Bank and deposits are reported net. The Company paid interest of $3,486,000, $4,244,000 and $5,678,000 in 2014, 2013, and 2012, respectively. The Company did not pay income taxes in 2014, 2013 and 2012. | |
Comprehensive income | Comprehensive income |
Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). The Company’s other comprehensive income (loss) and accumulated other comprehensive income (loss) are comprised of unrealized gains and losses on investment securities available for sale and amortization of the unfunded pension liability. At December 31, 2014 and 2013 the accumulated other comprehensive income was comprised of unrealized losses on securities available for sale of $644,000 and $3,752,000 and unfunded pension liability of $77,000 and $86,000, respectively. | |
Earnings per common share | Earnings per common share |
Basic earnings (loss) per common share represent net income available to common stockholders, which represents net income (loss) less dividends paid or payable to preferred stock shareholders, divided by the weighted-average number of common shares outstanding during the period. For diluted earnings per common share, net income available to common shareholders is divided by the weighted average number of common shares issued and outstanding for each period plus amounts representing the dilutive effect of stock options and warrants, as well as any adjustment to income that would result from the assumed issuance. The effects of stock options and warrants are excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Stock options and warrants are antidilutive if the underlying average market price of the stock that can be purchased for the period is less than the exercise price of the option or warrant. Potential common shares that may be issued by the Company relate solely to outstanding stock options and warrants and are determined using the treasury stock method. | |
Stock incentive plan | Stock incentive plan |
The Company’s shareholders approved the Company’s stock incentive plan, as amended and restated, which authorizes the issuance of up to 48,750 shares of common stock (after the reverse stock split) to assist the Company in recruiting and retaining key personnel. The incentive plan includes issuances of stock options and awards of 6,830 common shares. The expiration date on options granted is ten years with a three year vesting schedule. See Note 14 for more information on the stock incentive plan. | |
Fair values of financial instruments | Fair values of financial instruments |
The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are independent, knowledgeable, able to transact and willing to transact. See Note 17 for the methods and assumptions the Bank uses in estimating fair values of financial instruments. | |
New accounting pronouncements | New accounting pronouncements |
In January 2014, the FASB issued ASU 2014-01, “Investments – Equity Method and Joint Ventures: Accounting for Investments in Qualified Affordable Housing Projects”. This ASU applies to all reporting entities that invest in qualified affordable housing projects through limited liability entities that are flow through entities for tax purposes. The amendments in the ASU eliminate the effective yield election and permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Those not electing the proportional amortization method would account for the investment using the equity method or cost method. The amendments in this ASU are effective for public business entities for annual periods beginning after December 15, 2014. The adoption of this guidance should not have a material effect on the Company’s financial condition or results of operations. | |
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors”. ASU 2014-04 clarifies when a creditor should be considered to have received physical possession of residential real estate property during a foreclosure. ASU 2014-04 establishes a loan receivable should be derecognized and the real estate property recognized upon the creditor obtaining legal title to the residential real estate property upon completion of foreclosure or the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan. The provisions of ASU 2014-04 are effective for annual periods beginning after December 15, 2014. The adoption of this guidance should not have a material effect on the Company’s financial condition or results of operations. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The amendments in this ASU modify the guidance companies use to recognize revenue from contracts with customers for transfers of goods or services and transfers of nonfinancial assets, unless those contracts are within the scope of other standards. The ASU requires that entities apply a specific method to recognize revenue reflecting the consideration expected from customers in exchange for the transfer of goods and services. The guidance also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations. Entities are also required to disclose significant judgments and changes in judgments for determining the satisfaction of performance obligations. Most revenue associated with financial instruments, including interest and loan origination fees, is outside the scope of the guidance. This ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016, with early adoption prohibited. The company is evaluating the effect ASU 2014-09 will have on its consolidated financial statements. |
Investment_securities_availabl1
Investment securities available-for-sale (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investment securities available-for-sale [Abstract] | |||||||||||||||||||||||||
Amortized cost and estimated fair value of investment securities available-for-sale | The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
U.S. Government agencies | $ | 34,220 | $ | - | $ | (872 | ) | $ | 33,348 | ||||||||||||||||
Mortgage-backed securities | 484 | 2 | (2 | ) | 484 | ||||||||||||||||||||
Municipals | 5,814 | 2 | (106 | ) | 5,710 | ||||||||||||||||||||
$ | 40,518 | $ | 4 | $ | (980 | ) | $ | 39,542 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
U.S. Treasuries | $ | 7,825 | $ | - | $ | (615 | ) | 7,210 | |||||||||||||||||
U.S. Government agencies | 37,704 | - | (3,353 | ) | 34,351 | ||||||||||||||||||||
Mortgage-backed securities | 2,792 | 10 | (50 | ) | 2,752 | ||||||||||||||||||||
Municipals | 15,112 | - | (1,677 | ) | 13,435 | ||||||||||||||||||||
$ | 63,433 | $ | 10 | $ | (5,695 | ) | $ | 57,748 | |||||||||||||||||
Available for sale securities realized gross gains and losses | Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the years ending December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Gross realized gains | $ | 218 | $ | 217 | $ | 1,037 | |||||||||||||||||||
Gross realized losses | (428 | ) | - | (27 | ) | ||||||||||||||||||||
$ | (210 | ) | $ | 217 | $ | 1,010 | |||||||||||||||||||
Investment securities available for sale with unrealized loss position | Investment securities available for sale that have an unrealized loss position at December 31, 2014 and December 31, 2013 are detailed below (in thousands): | ||||||||||||||||||||||||
Securities in a loss | Securities in a loss | ||||||||||||||||||||||||
position for less than | position for more than | ||||||||||||||||||||||||
12 Months | 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
US Treasuries | $ | - | $ | - | $ | 33,347 | $ | (872 | ) | $ | 33,347 | $ | (872 | ) | |||||||||||
US Government Agencies | - | - | 363 | (2 | ) | 363 | (2 | ) | |||||||||||||||||
Municipals | - | - | 5,497 | (106 | ) | 5,497 | (106 | ) | |||||||||||||||||
$ | - | $ | - | $ | 39,207 | $ | (980 | ) | $ | 39,207 | $ | (980 | ) | ||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
US Treasuries | $ | 7,210 | $ | (615 | ) | $ | - | $ | - | $ | 7,210 | $ | (615 | ) | |||||||||||
US Government Agencies | 34,350 | (3,353 | ) | - | - | 34,350 | (3,353 | ) | |||||||||||||||||
Municipals | 10,864 | (1,471 | ) | 2,571 | (206 | ) | 13,435 | (1,677 | ) | ||||||||||||||||
Mortgage-backed securities | 1,861 | (50 | ) | - | - | 1,861 | (50 | ) | |||||||||||||||||
$ | 54,285 | $ | (5,489 | ) | $ | 2,571 | $ | (206 | ) | $ | 56,856 | $ | (5,695 | ) | |||||||||||
Investments classified by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of December 31, 2014, by contractual maturity, are as follows (in thousands): | ||||||||||||||||||||||||
Amortized | Estimated | ||||||||||||||||||||||||
Cost | Fair Value | ||||||||||||||||||||||||
One to five years | $ | 10,324 | $ | 10,099 | |||||||||||||||||||||
Five to ten years | 25,026 | 24,359 | |||||||||||||||||||||||
More than ten years | 5,168 | 5,084 | |||||||||||||||||||||||
Total | $ | 40,518 | $ | 39,542 |
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||
Loans classified by type | Loans classified by type as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 4,315 | $ | 2,931 | |||||||||||||||||||||||||
Commercial | 25,152 | 28,179 | |||||||||||||||||||||||||||
29,467 | 31,110 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 58,804 | 73,584 | |||||||||||||||||||||||||||
Non-owner occupied | 38,892 | 43,868 | |||||||||||||||||||||||||||
Multifamily | 11,438 | 11,560 | |||||||||||||||||||||||||||
Farmland | 434 | 1,463 | |||||||||||||||||||||||||||
109,568 | 130,475 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 20,082 | 21,246 | |||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 61,837 | 66,873 | |||||||||||||||||||||||||||
Second deed of trust | 7,854 | 8,675 | |||||||||||||||||||||||||||
89,773 | 96,794 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 22,165 | 26,254 | |||||||||||||||||||||||||||
Guaranteed student loans | 33,562 | - | |||||||||||||||||||||||||||
Consumer and other | 1,611 | 1,930 | |||||||||||||||||||||||||||
Total loans | 286,146 | 286,563 | |||||||||||||||||||||||||||
Deferred loan cost, net | 722 | 683 | |||||||||||||||||||||||||||
Less: allowance for loan losses | (5,729 | ) | (7,239 | ) | |||||||||||||||||||||||||
$ | 281,139 | $ | 280,007 | ||||||||||||||||||||||||||
Summary of loans directly or indirectly with executive officers or directors | The following is a summary of loans directly or indirectly with executive officers or directors of the Company for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Beginning balance | $ | 7,929 | $ | 8,593 | |||||||||||||||||||||||||
Additions | 4,888 | 4,833 | |||||||||||||||||||||||||||
Reductions | (4,559 | ) | (5,497 | ) | |||||||||||||||||||||||||
Ending balance | $ | 8,258 | $ | 7,929 | |||||||||||||||||||||||||
Nonaccrual loans, segregated by class of loans | Year-end nonaccrual loans segregated by type as of December 31, 2014 and 2013 were as follows (in thousands): | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 164 | $ | - | |||||||||||||||||||||||||
Commercial | 217 | 1,811 | |||||||||||||||||||||||||||
381 | 1,811 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 2,316 | 2,704 | |||||||||||||||||||||||||||
Non-owner occupied | - | 3,492 | |||||||||||||||||||||||||||
Farmland | 21 | 117 | |||||||||||||||||||||||||||
2,337 | 6,313 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 1,632 | |||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 2,416 | 7,083 | |||||||||||||||||||||||||||
Second deed of trust | 702 | 934 | |||||||||||||||||||||||||||
3,918 | 9,649 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 819 | 840 | |||||||||||||||||||||||||||
Consumer and other | 23 | 34 | |||||||||||||||||||||||||||
Total loans | $ | 7,478 | $ | 18,647 | |||||||||||||||||||||||||
Information on risk rating of loans | The following tables provide information on the risk rating of loans at the dates indicated (in thousands): | ||||||||||||||||||||||||||||
Risk Rated | Risk Rated | Risk Rated | Risk Rated | Total | |||||||||||||||||||||||||
4-Jan | 5 | 6 | 7 | Loans | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 3,946 | $ | 205 | $ | 164 | $ | - | $ | 4,315 | |||||||||||||||||||
Commercial | 20,641 | 1,622 | 2,889 | 25,152 | |||||||||||||||||||||||||
24,587 | 1,827 | 3,053 | - | 29,467 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 47,175 | 5,234 | 6,395 | - | 58,804 | ||||||||||||||||||||||||
Non-owner occupied | 36,439 | 1,811 | 642 | - | 38,892 | ||||||||||||||||||||||||
Multifamily | 10,703 | 735 | - | 11,438 | |||||||||||||||||||||||||
Farmland | 413 | 21 | - | 434 | |||||||||||||||||||||||||
94,730 | 7,780 | 7,058 | - | 109,568 | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 18,107 | 465 | 1,510 | - | 20,082 | ||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 52,513 | 4,763 | 4,561 | - | 61,837 | ||||||||||||||||||||||||
Second deed of trust | 6,456 | 434 | 964 | - | 7,854 | ||||||||||||||||||||||||
77,076 | 5,662 | 7,035 | - | 89,773 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 19,026 | 2,297 | 390 | 452 | 22,165 | ||||||||||||||||||||||||
Guaranteed student loans | 33,562 | 33,562 | |||||||||||||||||||||||||||
Consumer and other | 1,488 | 74 | 49 | - | 1,611 | ||||||||||||||||||||||||
Total loans | $ | 250,469 | $ | 17,640 | $ | 17,585 | $ | 452 | $ | 286,146 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 2,715 | $ | - | $ | 216 | $ | - | $ | 2,931 | |||||||||||||||||||
Commercial | 18,265 | 2,711 | 7,203 | - | 28,179 | ||||||||||||||||||||||||
20,980 | 2,711 | 7,419 | - | 31,110 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 51,810 | 13,214 | 8,560 | - | 73,584 | ||||||||||||||||||||||||
Non-owner occupied | 31,990 | 3,454 | 8,424 | - | 43,868 | ||||||||||||||||||||||||
Multifamily | 10,804 | 756 | - | - | 11,560 | ||||||||||||||||||||||||
Farmland | 1,347 | - | 117 | - | 1,463 | ||||||||||||||||||||||||
95,951 | 17,424 | 17,101 | - | 130,475 | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 17,610 | 727 | 2,909 | - | 21,246 | ||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 49,843 | 6,646 | 10,384 | - | 66,873 | ||||||||||||||||||||||||
Second deed of trust | 6,597 | 212 | 1,865 | - | 8,675 | ||||||||||||||||||||||||
74,050 | 7,585 | 15,158 | - | 96,794 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 19,786 | 1,042 | 5,426 | - | 26,254 | ||||||||||||||||||||||||
Consumer and other | 1,739 | 131 | 60 | - | 1,930 | ||||||||||||||||||||||||
Total loans | $ | 212,506 | $ | 28,893 | $ | 45,164 | $ | - | $ | 286,563 | |||||||||||||||||||
Aging of recorded investment in past due loans and leases | The following tables present the aging of the recorded investment in past due loans as of the dates indicated (in thousands): | ||||||||||||||||||||||||||||
Recorded | |||||||||||||||||||||||||||||
Greater | Investment > | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | Than | Total Past | Total | 90 Days and | ||||||||||||||||||||||||
Past Due | Past Due | 90 Days | Due | Current | Loans | Accruing | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | - | $ | - | $ | - | $ | - | $ | 4,315 | $ | 4,315 | $ | - | |||||||||||||||
Commercial | 92 | 391 | - | 483 | 24,669 | 25,152 | - | ||||||||||||||||||||||
92 | 391 | - | 483 | 28,984 | 29,467 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 715 | - | - | 715 | 58,089 | 58,804 | - | ||||||||||||||||||||||
Non-owner occupied | - | - | - | - | 38,892 | 38,892 | - | ||||||||||||||||||||||
Multifamily | - | - | - | - | 11,438 | 11,438 | - | ||||||||||||||||||||||
Farmland | - | - | - | - | 434 | 434 | - | ||||||||||||||||||||||
715 | - | - | 715 | 108,853 | 109,568 | - | |||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 31 | 139 | - | 170 | 19,912 | 20,082 | - | ||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | - | 153 | - | 153 | 61,684 | 61,837 | - | ||||||||||||||||||||||
Second deed of trust | 56 | - | - | 56 | 7,798 | 7,854 | - | ||||||||||||||||||||||
87 | 292 | - | 379 | 89,394 | 89,773 | - | |||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | - | 47 | - | 47 | 22,118 | 22,165 | - | ||||||||||||||||||||||
Guaranteed student loans | 671 | 392 | 720 | 1,783 | 31,779 | 33,562 | 720 | ||||||||||||||||||||||
Consumer and other | - | 8 | - | 8 | 1,603 | 1,611 | - | ||||||||||||||||||||||
Total loans | $ | 1,565 | $ | 1,130 | $ | 720 | $ | 3,415 | $ | 282,731 | $ | 286,146 | $ | 720 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | - | $ | - | $ | - | $ | - | $ | 2,931 | $ | 2,931 | $ | - | |||||||||||||||
Commercial | - | 116 | - | 116 | 28,063 | 28,179 | - | ||||||||||||||||||||||
- | 116 | - | 116 | 30,994 | 31,110 | - | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 199 | - | - | 199 | 73,385 | 73,584 | - | ||||||||||||||||||||||
Non-owner occupied | - | 346 | - | 346 | 43,522 | 43,868 | - | ||||||||||||||||||||||
Multifamily | 221 | - | - | 221 | 11,339 | 11,560 | - | ||||||||||||||||||||||
Farmland | 194 | - | - | 194 | 1,269 | 1,463 | - | ||||||||||||||||||||||
614 | 346 | - | 960 | 129,515 | 130,475 | - | |||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 98 | 403 | - | 501 | 20,745 | 21,246 | - | ||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 555 | 362 | - | 917 | 65,956 | 66,873 | - | ||||||||||||||||||||||
Second deed of trust | - | 24 | - | 24 | 8,651 | 8,675 | - | ||||||||||||||||||||||
653 | 789 | - | 1,442 | 95,352 | 96,794 | - | |||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 25 | 122 | 60 | 207 | 26,047 | 26,254 | 60 | ||||||||||||||||||||||
Consumer and other | 6 | 15 | - | 21 | 1,909 | 1,930 | - | ||||||||||||||||||||||
Total loans | $ | 1,298 | $ | 1,388 | $ | 60 | $ | 2,746 | $ | 283,817 | $ | 286,563 | $ | 60 | |||||||||||||||
Summary of impaired loans | Impaired loans are set forth in the following table as of the dates indicated (in thousands): | ||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 164 | $ | 164 | $ | - | |||||||||||||||||||||||
Commercial | 3,379 | 3,379 | - | ||||||||||||||||||||||||||
3,543 | 3,543 | - | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,686 | 1,686 | |||||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | ||||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | ||||||||||||||||||||||||||
Farmland | 21 | 450 | - | ||||||||||||||||||||||||||
10,622 | 11,051 | - | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 800 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 6,485 | 6,493 | - | ||||||||||||||||||||||||||
Second deed of trust | 1,103 | 1,373 | - | ||||||||||||||||||||||||||
8,388 | 8,666 | - | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 263 | 365 | - | ||||||||||||||||||||||||||
Consumer and other | 23 | 36 | - | ||||||||||||||||||||||||||
22,839 | 23,661 | - | |||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 589 | 589 | 26 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 6,625 | 6,640 | 905 | ||||||||||||||||||||||||||
Non-Owner occupied | |||||||||||||||||||||||||||||
6,625 | 6,640 | 905 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 1,415 | 1,415 | 200 | ||||||||||||||||||||||||||
Second deed of trust | 257 | 257 | 142 | ||||||||||||||||||||||||||
1,672 | 1,672 | 342 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 555 | 555 | 239 | ||||||||||||||||||||||||||
9,441 | 9,456 | 1,512 | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 164 | 164 | - | ||||||||||||||||||||||||||
Commercial | 3,968 | 3,968 | 26 | ||||||||||||||||||||||||||
4,132 | 4,132 | 26 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 8,311 | 8,326 | 905 | ||||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | ||||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | ||||||||||||||||||||||||||
Farmland | 21 | 450 | - | ||||||||||||||||||||||||||
17,247 | 17,691 | 905 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 800 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 7,900 | 7,908 | 200 | ||||||||||||||||||||||||||
Second deed of trust | 1,360 | 1,630 | 142 | ||||||||||||||||||||||||||
10,060 | 10,338 | 342 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 818 | 920 | 239 | ||||||||||||||||||||||||||
Consumer and other | 23 | 36 | - | ||||||||||||||||||||||||||
$ | 32,280 | $ | 33,117 | $ | 1,512 | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||||||||
Investment | Balance | Allowance | |||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 216 | $ | 216 | $ | - | |||||||||||||||||||||||
Commercial | 3,452 | 3,497 | - | ||||||||||||||||||||||||||
3,668 | 3,713 | - | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,919 | 1,969 | |||||||||||||||||||||||||||
Non-owner occupied | 11,769 | 11,928 | - | ||||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | ||||||||||||||||||||||||||
Farmland | 117 | 450 | - | ||||||||||||||||||||||||||
16,178 | 16,720 | - | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 1,630 | 1,685 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 8,177 | 8,319 | - | ||||||||||||||||||||||||||
Second deed of trust | 1,125 | 1,249 | - | ||||||||||||||||||||||||||
10,932 | 11,253 | - | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 809 | 983 | - | ||||||||||||||||||||||||||
Consumer and other | 34 | 34 | - | ||||||||||||||||||||||||||
31,621 | 32,703 | - | |||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 1,753 | 1,753 | 220 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 9,794 | 9,948 | 680 | ||||||||||||||||||||||||||
Non-Owner occupied | 1,297 | 1,297 | 371 | ||||||||||||||||||||||||||
11,091 | 11,245 | 1,051 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 2,184 | 2,870 | 484 | ||||||||||||||||||||||||||
Second deed of trust | 132 | 132 | 32 | ||||||||||||||||||||||||||
2,316 | 3,002 | 516 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 151 | 151 | 43 | ||||||||||||||||||||||||||
15,311 | 16,151 | 1,830 | |||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 216 | 216 | - | ||||||||||||||||||||||||||
Commercial | 5,205 | 5,250 | 220 | ||||||||||||||||||||||||||
5,421 | 5,466 | 220 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 11,713 | 11,917 | 680 | ||||||||||||||||||||||||||
Non-owner occupied | 13,066 | 13,225 | 371 | ||||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | ||||||||||||||||||||||||||
Farmland | 117 | 450 | - | ||||||||||||||||||||||||||
27,269 | 27,965 | 1,051 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 1,630 | 1,685 | - | ||||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 10,361 | 11,189 | 484 | ||||||||||||||||||||||||||
Second deed of trust | 1,257 | 1,381 | 32 | ||||||||||||||||||||||||||
13,248 | 14,255 | 516 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 960 | 1,134 | 43 | ||||||||||||||||||||||||||
Consumer and other | 34 | 34 | - | ||||||||||||||||||||||||||
$ | 46,932 | $ | 48,854 | $ | 1,830 | ||||||||||||||||||||||||
Summary of average recorded investment in impaired loans | The following is a summary of average recorded investment in impaired loans with and without valuation allowance and interest income recognized on those loans for periods indicated (in thousands): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 181 | $ | 2 | $ | 179 | $ | 9 | |||||||||||||||||||||
Commercial | 3,642 | 205 | 5,443 | 255 | |||||||||||||||||||||||||
3,823 | 207 | 5,622 | 264 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1,705 | 93 | 2,552 | 113 | |||||||||||||||||||||||||
Non-owner occupied | 6,693 | 320 | 11,922 | 599 | |||||||||||||||||||||||||
Multifamily | 2,347 | 141 | 2,396 | 149 | |||||||||||||||||||||||||
Farmland | 21 | - | 117 | - | |||||||||||||||||||||||||
10,766 | 554 | 16,987 | 861 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 27 | 1,632 | 59 | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 6,581 | 352 | 8,707 | 395 | |||||||||||||||||||||||||
Second deed of trust | 1,112 | 51 | 1,186 | 63 | |||||||||||||||||||||||||
8,493 | 430 | 11,525 | 517 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 274 | 15 | 796 | 48 | |||||||||||||||||||||||||
Consumer and other | 26 | 2 | 38 | 2 | |||||||||||||||||||||||||
23,382 | 1,208 | 34,968 | 1,692 | ||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Commercial | 601 | 33 | 1,820 | 52 | |||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 5,853 | 272 | 8,759 | 513 | |||||||||||||||||||||||||
Non-Owner occupied | - | - | 1,311 | 65 | |||||||||||||||||||||||||
5,853 | 272 | 10,070 | 578 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 1,464 | 45 | 2,355 | 116 | |||||||||||||||||||||||||
Second deed of trust | 263 | 11 | 136 | 4 | |||||||||||||||||||||||||
1,727 | 56 | 2,491 | 120 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 570 | 33 | 154 | 4 | |||||||||||||||||||||||||
8,751 | 394 | 14,535 | 754 | ||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 181 | 2 | 179 | 9 | |||||||||||||||||||||||||
Commercial | 4,243 | 238 | 7,263 | 307 | |||||||||||||||||||||||||
4,424 | 240 | 7,442 | 316 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 7,558 | 365 | 11,311 | 626 | |||||||||||||||||||||||||
Non-owner occupied | 6,693 | 320 | 13,233 | 664 | |||||||||||||||||||||||||
Multifamily | 2,347 | 141 | 2,396 | 149 | |||||||||||||||||||||||||
Farmland | 21 | - | 117 | - | |||||||||||||||||||||||||
16,619 | 826 | 27,057 | 1,439 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 800 | 27 | 1,632 | 59 | |||||||||||||||||||||||||
Secured by 1-4 family residential, | |||||||||||||||||||||||||||||
First deed of trust | 8,045 | 397 | 11,062 | 511 | |||||||||||||||||||||||||
Second deed of trust | 1,375 | 62 | 1,322 | 67 | |||||||||||||||||||||||||
10,220 | 486 | 14,016 | 637 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 844 | 48 | 950 | 52 | |||||||||||||||||||||||||
Consumer and other | 26 | 2 | 38 | 2 | |||||||||||||||||||||||||
$ | 32,133 | $ | 1,602 | $ | 49,503 | $ | 2,446 | ||||||||||||||||||||||
Troubled debt restructurings | The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment as of December 31, 2014 (dollars in thousands). | ||||||||||||||||||||||||||||
Specific | |||||||||||||||||||||||||||||
Valuation | |||||||||||||||||||||||||||||
Total | Performing | Nonaccrual | Allowance | ||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 7 | - | $ | 7 | $ | - | ||||||||||||||||||||||
Commercial | 3,895 | 3,751 | 144 | 17 | |||||||||||||||||||||||||
3,902 | 3,751 | 151 | 17 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 6,317 | 5,149 | 1,168 | 325 | |||||||||||||||||||||||||
Non-owner occupied | 6,593 | 6,593 | - | - | |||||||||||||||||||||||||
Multifamily | 2,322 | 2,322 | - | - | |||||||||||||||||||||||||
15,232 | 14,064 | 1,168 | 325 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | - | - | - | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | - | - | - | - | |||||||||||||||||||||||||
First deeds of trust | 6,990 | 5,494 | 1,496 | 200 | |||||||||||||||||||||||||
Second deeds of trust | 762 | 658 | 104 | 5 | |||||||||||||||||||||||||
7,752 | 6,152 | 1,600 | 205 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 239 | - | 239 | 12 | |||||||||||||||||||||||||
Consumer and other | 16 | - | 16 | - | |||||||||||||||||||||||||
$ | 27,141 | $ | 23,967 | $ | 3,174 | $ | 559 | ||||||||||||||||||||||
Number of loans | 107 | 77 | 30 | 21 | |||||||||||||||||||||||||
Specific | |||||||||||||||||||||||||||||
Valuation | |||||||||||||||||||||||||||||
Total | Performing | Nonaccrual | Allowance | ||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | $ | 216 | 216 | $ | - | $ | - | ||||||||||||||||||||||
Commercial | 4,922 | 3,394 | 1,528 | 211 | |||||||||||||||||||||||||
5,138 | 3,610 | 1,528 | 211 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 10,377 | 9,010 | 1,367 | 374 | |||||||||||||||||||||||||
Non-owner occupied | 9,973 | 9,568 | 405 | 137 | |||||||||||||||||||||||||
Multifamily | 2,373 | 2,373 | - | - | |||||||||||||||||||||||||
22,723 | 20,951 | 1,772 | 511 | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | 160 | - | 160 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deeds of trust | 7,296 | 3,231 | 4,065 | 383 | |||||||||||||||||||||||||
Second deeds of trust | 692 | 325 | 367 | - | |||||||||||||||||||||||||
8,148 | 3,556 | 4,592 | 383 | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 255 | 120 | 135 | 9 | |||||||||||||||||||||||||
Consumer and other | 21 | - | 21 | - | |||||||||||||||||||||||||
$ | 36,285 | $ | 28,237 | $ | 8,048 | $ | 1,114 | ||||||||||||||||||||||
Number of loans | 115 | 62 | 53 | 23 | |||||||||||||||||||||||||
The following table provides information about TDRs identified during the indicated periods (dollars in thousands). | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||
Number of | Recorded | Recorded | Number of | Recorded | Recorded | ||||||||||||||||||||||||
Loans | Balance | Balance | Loans | Balance | Balance | ||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | - | $ | - | $ | - | 2 | $ | 216 | $ | 216 | |||||||||||||||||||
Commercial | 1 | 45 | 45 | 11 | 4,036 | 4,036 | |||||||||||||||||||||||
1 | 45 | 45 | 13 | 4,252 | 4,252 | ||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 7 | 729 | 729 | 6 | 3,095 | 3,095 | |||||||||||||||||||||||
Non-owner occupied | - | - | - | 6 | 1,754 | 1,754 | |||||||||||||||||||||||
7 | 729 | 729 | 12 | 4,849 | 4,849 | ||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Home equity lines | - | - | - | 1 | 160 | 160 | |||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 2 | 727 | 727 | 26 | 2,819 | 2,819 | |||||||||||||||||||||||
Second deed of trust | 2 | 104 | 104 | 6 | 371 | 371 | |||||||||||||||||||||||
4 | 832 | 832 | 33 | 3,350 | 3,350 | ||||||||||||||||||||||||
Consumer and other | - | - | - | 1 | 21 | - | |||||||||||||||||||||||
12 | $ | 1,606 | $ | 1,606 | 59 | $ | 12,472 | $ | 12,451 | ||||||||||||||||||||
The following table provides information about defaults on TDRs for the year ended December 31, 2014 (dollars in thousands). | |||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||
Loans | Balance | Loans | Balance | ||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||
Residential | 1 | $ | 7 | 1 | $ | 102 | |||||||||||||||||||||||
Commercial | 5 | 144 | 1 | 40 | |||||||||||||||||||||||||
6 | 151 | 2 | 142 | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner occupied | 1 | 160 | - | - | |||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||
First deed of trust | 14 | 1,037 | 2 | 325 | |||||||||||||||||||||||||
Second deed of trust | 2 | 104 | - | - | |||||||||||||||||||||||||
Total consumer real estate | 16 | 1,141 | 2 | 325 | |||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 2 | 240 | 1 | 117 | |||||||||||||||||||||||||
Total | 25 | $ | 1,692 | 5 | $ | 584 | |||||||||||||||||||||||
Allowance_for_loan_losses_Tabl
Allowance for loan losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Allowance for loan losses [Abstract] | |||||||||||||||||||||||||||||||||
Activity in allowance for loan losses | Activity in the allowance for loan losses was as follows for the periods indicated (in thousands): | ||||||||||||||||||||||||||||||||
Beginning | Provision for | Ending | |||||||||||||||||||||||||||||||
Balance | Loan Losses | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 135 | $ | (103 | ) | $ | - | $ | 2 | $ | 34 | ||||||||||||||||||||||
Commercial | 1,274 | (1,016 | ) | (100 | ) | 44 | 202 | ||||||||||||||||||||||||||
1,409 | (1,119 | ) | (100 | ) | 46 | 236 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,199 | 1,268 | (631 | ) | - | 1,836 | |||||||||||||||||||||||||||
Non-owner occupied | 670 | 430 | (518 | ) | 25 | 607 | |||||||||||||||||||||||||||
Multifamily | 20 | 58 | - | - | 78 | ||||||||||||||||||||||||||||
Farmland | 337 | (111 | ) | (96 | ) | - | 130 | ||||||||||||||||||||||||||
2,226 | 1,645 | (1,245 | ) | 25 | 2,651 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 424 | 506 | (476 | ) | 15 | 469 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,992 | (442 | ) | (277 | ) | 72 | 1,345 | ||||||||||||||||||||||||||
Second deed of trust | 394 | (223 | ) | (86 | ) | 190 | 275 | ||||||||||||||||||||||||||
2,810 | (159 | ) | (839 | ) | 277 | 2,089 | |||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 724 | (447 | ) | (172 | ) | 401 | 506 | ||||||||||||||||||||||||||
Student loans | - | 217 | - | - | 217 | ||||||||||||||||||||||||||||
Consumer and other | 70 | (37 | ) | (25 | ) | 22 | 30 | ||||||||||||||||||||||||||
$ | 7,239 | $ | 100 | $ | (2,381 | ) | $ | 771 | $ | 5,729 | |||||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 495 | $ | (462 | ) | $ | - | $ | 102 | $ | 135 | ||||||||||||||||||||||
Commercial | 4,611 | (3,482 | ) | (279 | ) | 424 | 1,274 | ||||||||||||||||||||||||||
5,106 | (3,944 | ) | (279 | ) | 526 | 1,409 | |||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,358 | 252 | (454 | ) | 43 | 1,199 | |||||||||||||||||||||||||||
Non-owner occupied | 817 | 452 | (619 | ) | 20 | 670 | |||||||||||||||||||||||||||
Multifamily | 24 | (4 | ) | - | - | 20 | |||||||||||||||||||||||||||
Farmland | - | 1,233 | (896 | ) | - | 337 | |||||||||||||||||||||||||||
2,199 | 1,933 | (1,969 | ) | 63 | 2,226 | ||||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 658 | 23 | (266 | ) | 9 | 424 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,358 | 2,493 | (1,953 | ) | 94 | 1,992 | |||||||||||||||||||||||||||
Second deed of trust | 224 | 498 | (367 | ) | 39 | 394 | |||||||||||||||||||||||||||
2,240 | 3,014 | (2,586 | ) | 142 | 2,810 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 1,162 | 145 | (760 | ) | 177 | 724 | |||||||||||||||||||||||||||
Consumer and other | 101 | 25 | (65 | ) | 9 | 70 | |||||||||||||||||||||||||||
$ | 10,808 | $ | 1,173 | $ | (5,659 | ) | $ | 917 | $ | 7,239 | |||||||||||||||||||||||
Beginning | Provision for | Ending | |||||||||||||||||||||||||||||||
Balance | Loan Losses | Charge-offs | Recoveries | Balance | |||||||||||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 705 | $ | 542 | $ | (797 | ) | $ | 45 | $ | 495 | ||||||||||||||||||||||
Commercial | 6,798 | 3,444 | (5,645 | ) | 14 | 4,611 | |||||||||||||||||||||||||||
7,503 | 3,986 | (6,442 | ) | 59 | 5,106 | ||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,496 | 623 | (961 | ) | 200 | 1,358 | |||||||||||||||||||||||||||
Non-owner occupied | 1,549 | (301 | ) | (431 | ) | - | 817 | ||||||||||||||||||||||||||
Multifamily | 407 | (373 | ) | (10 | ) | - | 24 | ||||||||||||||||||||||||||
Farmland | - | - | - | - | - | ||||||||||||||||||||||||||||
3,452 | (51 | ) | (1,402 | ) | 200 | 2,199 | |||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 860 | 669 | (884 | ) | 13 | 658 | |||||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,881 | 2,611 | (3,220 | ) | 86 | 1,358 | |||||||||||||||||||||||||||
Second deed of trust | 398 | 468 | (663 | ) | 21 | 224 | |||||||||||||||||||||||||||
3,139 | 3,748 | (4,767 | ) | 120 | 2,240 | ||||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 1,656 | 1,231 | (1,880 | ) | 155 | 1,162 | |||||||||||||||||||||||||||
Student loans | - | - | - | - | - | ||||||||||||||||||||||||||||
Consumer and other | 321 | 181 | (408 | ) | 7 | 101 | |||||||||||||||||||||||||||
$ | 16,071 | $ | 9,095 | $ | (14,899 | ) | $ | 541 | $ | 10,808 | |||||||||||||||||||||||
Allowances for loans losses and loans evaluated for impairment | Also contributing to the declines in the general component were declines of approximately $1,643,000 and $12,945,000 in the outstanding loan balance of this portfolio at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
Recorded Investment in Loans | |||||||||||||||||||||||||||||||||
Allowance | Loans | ||||||||||||||||||||||||||||||||
Loans acquired | Loans acquired | ||||||||||||||||||||||||||||||||
Ending | with deteriorated | Ending | with deteriorated | ||||||||||||||||||||||||||||||
Balance | Individually | Collectively | credit quality | Balance | Individually | Collectively | credit quality | ||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 34 | $ | - | $ | 34 | $ | - | $ | 4,315 | $ | 164 | $ | 4,151 | $ | - | |||||||||||||||||
Commercial | 202 | 26 | 176 | - | 25,152 | 3,968 | 21,184 | - | |||||||||||||||||||||||||
236 | 26 | 210 | - | 29,467 | 4,132 | 25,335 | - | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,837 | 905 | 932 | - | 58,804 | 8,311 | 50,493 | - | |||||||||||||||||||||||||
Non-owner occupied | 607 | - | 607 | - | 38,892 | 6,593 | 32,299 | - | |||||||||||||||||||||||||
Multifamily | 77 | - | 77 | - | 11,438 | 2,322 | 9,116 | - | |||||||||||||||||||||||||
Farmland | 130 | - | 130 | - | 434 | 21 | 413 | - | |||||||||||||||||||||||||
2,651 | 905 | 1,746 | - | 109,568 | 17,247 | 92,321 | - | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 469 | - | 469 | - | 20,082 | 800 | 19,282 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | |||||||||||||||||||||||||||||||||
First deed of trust | 1,345 | 200 | 1,145 | - | 61,837 | 7,900 | 53,937 | - | |||||||||||||||||||||||||
Second deed of trust | 275 | 142 | 133 | - | 7,854 | 1,360 | 6,494 | - | |||||||||||||||||||||||||
2,089 | 342 | 1,747 | - | 89,773 | 10,060 | 79,713 | - | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 506 | 239 | 267 | - | 22,165 | 818 | 21,347 | - | |||||||||||||||||||||||||
Student loans | 217 | - | 217 | 33,562 | - | 33,562 | - | ||||||||||||||||||||||||||
Consumer and other | 30 | - | 30 | - | 1,611 | 23 | 1,588 | - | |||||||||||||||||||||||||
$ | 5,729 | $ | 1,512 | $ | 4,217 | $ | - | $ | 286,146 | $ | 32,280 | $ | 253,866 | $ | - | ||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||
Construction and land development | |||||||||||||||||||||||||||||||||
Residential | $ | 135 | $ | - | $ | 135 | $ | - | $ | 2,931 | $ | 216 | $ | 2,715 | $ | - | |||||||||||||||||
Commercial | 1,274 | 227 | 1,047 | - | 28,179 | 5,205 | 22,974 | - | |||||||||||||||||||||||||
1,409 | 227 | 1,182 | - | 31,110 | 5,421 | 25,689 | - | ||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||
Owner occupied | 1,200 | 673 | 527 | - | 73,584 | 11,713 | 61,871 | - | |||||||||||||||||||||||||
Non-owner occupied | 670 | 371 | 299 | - | 43,868 | 13,066 | 30,802 | - | |||||||||||||||||||||||||
Multifamily | 19 | - | 19 | - | 11,560 | 2,373 | 9,187 | - | |||||||||||||||||||||||||
Farmland | 337 | - | 337 | - | 1,463 | 117 | 1,346 | - | |||||||||||||||||||||||||
2,226 | 1,044 | 1,182 | - | 130,475 | 27,269 | 103,206 | - | ||||||||||||||||||||||||||
Consumer real estate | |||||||||||||||||||||||||||||||||
Home equity lines | 424 | - | 424 | - | 21,246 | 1,630 | 19,616 | - | |||||||||||||||||||||||||
Secured by 1-4 family residential | - | ||||||||||||||||||||||||||||||||
First deed of trust | 1,992 | 484 | 1,508 | - | 66,873 | 10,361 | 56,512 | - | |||||||||||||||||||||||||
Second deed of trust | 394 | 32 | 362 | - | 8,675 | 1,257 | 7,418 | - | |||||||||||||||||||||||||
2,810 | 516 | 2,294 | - | 96,794 | 13,248 | 83,546 | - | ||||||||||||||||||||||||||
Commercial and industrial loans (except those secured by real estate) | 724 | 43 | 681 | - | 26,254 | 960 | 25,294 | - | |||||||||||||||||||||||||
Consumer and other | 70 | - | 70 | - | 1,930 | 34 | 1,896 | - | |||||||||||||||||||||||||
$ | 7,239 | $ | 1,830 | $ | 5,409 | $ | - | $ | 286,563 | $ | 46,932 | $ | 239,631 | $ | - |
Premises_and_equipment_Tables
Premises and equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Premises and equipment [Abstract] | |||||||||
Schedule of premises and equipment | The following is a summary of premises and equipment as of December 31, 2014 and 2013 (in thousands): | ||||||||
2014 | 2013 | ||||||||
Land | $ | 4,930 | $ | 3,803 | |||||
Buildings and improvements | 9,311 | 6,500 | |||||||
Furniture, fixtures and equipment | 7,395 | 8,772 | |||||||
Total premises and equipment | 21,636 | 19,075 | |||||||
Less: Accumulated depreciation and amortization | (7,335 | ) | (6,666 | ) | |||||
Premises and equipment, net | $ | 14,301 | $ | 12,409 |
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Deposits [Abstract] | |||||||||||||
Summary of deposits | Deposits as of December 31, 2014 and 2013 were as follows (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Demand accounts | $ | 77,496 | $ | 57,244 | |||||||||
Interest checking accounts | 42,924 | 43,691 | |||||||||||
Money market accounts | 64,987 | 63,357 | |||||||||||
Savings accounts | 20,643 | 20,229 | |||||||||||
Time deposits of $100,000 and over | 75,559 | 94,245 | |||||||||||
Other time deposits | 97,251 | 111,862 | |||||||||||
Total | $ | 378,860 | $ | 390,628 | |||||||||
Scheduled maturities of time deposits | The following are the scheduled maturities of time deposits as of December 31, 2014 (in thousands): | ||||||||||||
Greater than | |||||||||||||
Less Than | or Equal to | ||||||||||||
Year Ending December 31, | $100,000 | $100,000 | Total | ||||||||||
2015 | $ | 41,779 | $ | 33,610 | $ | 75,389 | |||||||
2016 | 30,437 | 26,450 | 56,887 | ||||||||||
2017 | 10,959 | 8,270 | 19,229 | ||||||||||
2018 | 6,031 | 2,858 | 8,889 | ||||||||||
2019 | 8,045 | 4,371 | 12,416 | ||||||||||
$ | 97,251 | $ | 75,559 | $ | 172,810 |
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Borrowings [Abstract] | |||||||||
Contractual maturities of the advances | At December 31, 2014, the contractual maturities of the advances are as follows (in thousands): | ||||||||
Due in 2015 | $ | 8,000 | |||||||
Due in 2016 | 3,600 | ||||||||
Due in 2017 | 1,600 | ||||||||
Due in 2018 | 800 | ||||||||
$ | 14,000 | ||||||||
Information related to borrowings | Information related to borrowings as of December 31, 2014 and 2013 is as follows (dollars in thousands): | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Maximum outstanding during the year FHLB advances | $ | 18,000 | $ | 28,000 | |||||
Balance outstanding at end of year FHLB advances | 14,000 | 18,000 | |||||||
Average amount outstanding during the year FHLB advances | 15,468 | 23,433 | |||||||
Average interest rate during the year FHLB advances | 2.16 | % | 2.19 | % | |||||
Average interest rate at end of year FHLB advances | 2.07 | % | 2.31 | % |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income taxes [Abstract] | |||||||||||||
Tax effects of temporary differences, comprise net deferred tax assets and liabilities | The following summarizes the tax effects of temporary differences which comprise net deferred tax assets and liabilities at December 31, 2014 and 2013 (in thousands): | ||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets | |||||||||||||
Net operating loss carryforward | $ | 8,017 | $ | 5,316 | |||||||||
Allowance for loan losses | 1,948 | 2,461 | |||||||||||
Unrealized loss on available-for-sale securities | 332 | 1,933 | |||||||||||
Interest on nonaccrual loans | 76 | 913 | |||||||||||
Expenses and writedowns related to foreclosed property | 1,095 | 2,225 | |||||||||||
Merger stock options replacement | 90 | 90 | |||||||||||
Stock compensation | 45 | 3 | |||||||||||
Employee benefits | 954 | 845 | |||||||||||
Pension expense | 40 | 44 | |||||||||||
Depreciation | - | 46 | |||||||||||
Other, net | 32 | 70 | |||||||||||
Goodwill | 55 | 27 | |||||||||||
Total deferred tax assets | 12,684 | 13,973 | |||||||||||
Deferred tax liabilities | |||||||||||||
Depreciation | 11 | - | |||||||||||
Amortization of intangibles | 67 | 100 | |||||||||||
Total deferred tax liabilities | 78 | 100 | |||||||||||
Net deferred tax asset prior to valuation allowance | 12,606 | 13,873 | |||||||||||
Less Unrealized gain/(loss) on available-for-sale securities | (332 | ) | (1,933 | ) | |||||||||
Net deferred tax asset subject to valuation allowance | 12,274 | 11,940 | |||||||||||
Less valuation allowance | 12,274 | 11,940 | |||||||||||
Net deferred tax asset | $ | 332 | $ | 1,933 | |||||||||
Income tax expense (benefit) charged to operations | The income tax expense (benefit) charged to operations for the years ended December 31, 2014, 2013 and 2012 consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax expense (benefit) | $ | 67 | $ | 71 | $ | - | |||||||
Deferred tax expense (benefit) | (401 | ) | (1,852 | ) | (2,174 | ) | |||||||
Valuation allowance | 334 | 1,781 | 6,229 | ||||||||||
Provision (benefit) for income taxes | - | $ | - | $ | 4,055 | ||||||||
Reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes | A reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes is as follows for the years ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) before income taxes | $ | (1,037 | ) | $ | (4,007 | ) | $ | (6,344 | ) | ||||
Computed "expected" tax benefit | $ | (352 | ) | $ | (1,362 | ) | $ | (2,157 | ) | ||||
Valuation allowance change | 334 | 1,781 | 6,229 | ||||||||||
State taxes, net of fed | 44 | 46 | - | ||||||||||
Cash surrender value of life insurance | (62 | ) | (64 | ) | (65 | ) | |||||||
Other | 36 | (401 | ) | 48 | |||||||||
Provision (benefit) for income taxes | $ | - | $ | - | $ | 4,055 | |||||||
Commercial banking organizations conducting business in Virginia are not subject to Virginia income taxes. Instead, they are subject to a franchise tax based on bank capital. The Company recorded franchise tax expense of $163,000 for 2012, which is included in other operating expenses. Due to the Company’s adjusted capital level we were not subject to franchise tax expense for the years ended December 31, 2014 and 2013. |
Earnings_loss_per_share_Tables
Earnings (loss) per share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings (loss) per share [Abstract] | |||||||||||||
Basic and diluted earnings per share computation | The following table presents the basic and diluted earnings per share computations (in thousands except per share data): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator | |||||||||||||
Net loss - basic and diluted | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Preferred stock dividend and accretion | 1,436 | 886 | 879 | ||||||||||
Net loss available to common shareholders | $ | (2,473 | ) | $ | (4,893 | ) | $ | (11,278 | ) | ||||
Denominator | |||||||||||||
Weighted average shares outstanding - basic | 334 | 271 | 266 | ||||||||||
Dilutive effect of common stock options and restricted stock awards | - | - | - | ||||||||||
Weighted average shares outstanding - diluted | 334 | 271 | 266 | ||||||||||
Loss per share - basic and diluted | $ | (7.39 | ) | $ | (18.06 | ) | $ | (42.40 | ) | ||||
Lease_commitments_Tables
Lease commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Lease commitments [Abstract] | |||||
Schedule of minimum total rental commitment under non-cancelable operating leases | At December 31, 2014, the minimum total rental commitment under such non-cancelable operating leases was as follows (in thousands): | ||||
2015 | $ | 434 | |||
2016 | 196 | ||||
2017 | 154 | ||||
2018 | 158 | ||||
2019 | 126 | ||||
$ | 1,068 |
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and contingencies [Abstract] | |||||||||
Summary of outstanding off-balance sheet financial instruments | At December 31, 2014 and 2013, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): | ||||||||
Contract | Contract | ||||||||
Amount | Amount | ||||||||
2014 | 2013 | ||||||||
Undisbursed credit lines | $ | 38,064 | $ | 37,474 | |||||
Commitments to extend or originate credit | 9,207 | 10,581 | |||||||
Standby letters of credit | 1,571 | 2,192 | |||||||
Total commitments to extend credit | $ | 48,842 | $ | 50,247 |
Stockholders_equity_and_regula1
Stockholders' equity and regulatory matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stockholders' equity and regulatory matters [Abstract] | |||||||||||||||||||||||||
Schedule of capital amounts and ratios | The capital amounts and ratios at December 31, 2014 and 2013 for the Company and the Bank are presented in the table below (dollars in thousands): | ||||||||||||||||||||||||
For Capital | |||||||||||||||||||||||||
Actual | Adequacy Purposes | To be Well Capitalized | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Total capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 31,946 | 11.17 | % | $ | 22,875 | 8 | % | $ | 28,594 | 10 | % | |||||||||||||
Village Bank | 34,253 | 12.08 | % | 22,686 | 8 | % | 28,358 | 10 | % | ||||||||||||||||
Tier 1 capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | 21,037 | 7.36 | % | 11,437 | 4 | % | 17,156 | 6 | % | ||||||||||||||||
Village Bank | 30,681 | 10.82 | % | 11,343 | 4 | % | 17,015 | 6 | % | ||||||||||||||||
Leverage ratio (Tier 1 capital to average assets) | |||||||||||||||||||||||||
Consolidated | 21,037 | 4.9 | % | 17,170 | 4 | % | 21,463 | 5 | % | ||||||||||||||||
Village Bank | 30,681 | 7.18 | % | 17,084 | 4 | % | 21,355 | 5 | % | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Total capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | $ | 34,652 | 10.66 | % | $ | 25,997 | 8 | % | $ | 32,496 | 10 | % | |||||||||||||
Village Bank | 35,192 | 10.9 | % | 25,828 | 8 | % | 32,285 | 10 | % | ||||||||||||||||
Tier 1 capital (to risk- weighted assets) | |||||||||||||||||||||||||
Consolidated | 24,027 | 7.39 | % | 12,999 | 4 | % | 19,498 | 6 | % | ||||||||||||||||
Village Bank | 31,117 | 9.64 | % | 12,914 | 4 | % | 19,371 | 6 | % | ||||||||||||||||
Leverage ratio (Tier 1 capital to average assets) | |||||||||||||||||||||||||
Consolidated | 24,027 | 5.32 | % | 18,069 | 4 | % | 22,587 | 5 | % | ||||||||||||||||
Village Bank | 31,117 | 6.92 | % | 17,984 | 4 | % | 22,480 | 5 | % | ||||||||||||||||
-1 | As a result of the Consent Order, the Bank is not considered well capitalized even though it meets the ratio requirements to be classified as such. The Consent Order requires the total capital to risk-weighted assets to be at least 11% and the leverage ratio to be at least 8%. |
Stock_incentive_plan_Tables
Stock incentive plan (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Stock incentive plan [Abstract] | |||||||||||||||||||||||||||||||||
Summary of stock option outstanding under the stock incentive plan | The following table summarizes options outstanding under the stock incentive plan at the indicated dates: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Weighted | Weighted | ||||||||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||||||
Exercise | Fair Value | Intrinsic | Exercise | Fair Value | Intrinsic | ||||||||||||||||||||||||||||
Options | Price | Per Share | Value | Options | Price | Per Share | Value | ||||||||||||||||||||||||||
Options outstanding, beginning of period | 6,210 | $ | 99.03 | $ | 64.96 | 15,977 | $ | 155.36 | $ | 74.4 | |||||||||||||||||||||||
Granted | 884 | 25.28 | 15.52 | 1,760 | 25.28 | 9.76 | |||||||||||||||||||||||||||
Forfeited | (264 | ) | 25.28 | 80.33 | (11,527 | ) | 123.2 | 79.84 | |||||||||||||||||||||||||
Exercised | - | - | - | - | - | - | |||||||||||||||||||||||||||
Options outstanding, end of period | 6,830 | $ | 92.34 | $ | 57.97 | $ | - | 6,210 | $ | 99.03 | $ | 64.96 | $ | - | |||||||||||||||||||
Options exercisable, end of period | 5,318 | 4,647 | |||||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Exercise | Fair Value | Intrinsic | |||||||||||||||||||||||||||||||
Options | Price | Per Share | Value | ||||||||||||||||||||||||||||||
Options outstanding, beginning of period | 16,561 | $ | 151.68 | $ | 75.2 | ||||||||||||||||||||||||||||
Granted | 313 | 16 | 17.28 | ||||||||||||||||||||||||||||||
Forfeited | (897 | ) | 128.32 | 69.44 | |||||||||||||||||||||||||||||
Exercised | - | - | - | ||||||||||||||||||||||||||||||
Options outstanding, end of period | 15,977 | $ | 155.36 | $ | 74.4 | $ | - | ||||||||||||||||||||||||||
Options exercisable, end of period | 15,664 | ||||||||||||||||||||||||||||||||
Schedule of fair value of option granted estimated on grant date using the Black-Sholes option pricing model | The fair value of each option granted is estimated on the date of grant using the Black-Sholes option pricing model with the following assumptions used for grants for the years indicated: | ||||||||||||||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Risk-free interest rate | 2.57 | % | |||||||||||||||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||||||||||||||
Expected weighted average term | 7 years | ||||||||||||||||||||||||||||||||
Volatility | 50 | % | |||||||||||||||||||||||||||||||
Schedule of stock option by exercise price range | The following table summarizes information about stock options outstanding at December 31, 2014: | ||||||||||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||||||||||
Average | |||||||||||||||||||||||||||||||||
Remaining | Weighted | Weighted | |||||||||||||||||||||||||||||||
Years of | Average | Average | |||||||||||||||||||||||||||||||
Range of | Number of | Contractual | Exercise | Number of | Exercise | ||||||||||||||||||||||||||||
Exercise Prices | Options | Life | Price | Options | Price | ||||||||||||||||||||||||||||
$16.00-$75.28 | 2,929 | 6.3 | $ | 24.47 | 1,417 | $ | 25.46 | ||||||||||||||||||||||||||
$140 - $200 | 3,901 | 0.8 | 143.3 | 3,901 | 143.3 | ||||||||||||||||||||||||||||
6,830 | 3.16 | 92.34 | 5,318 | 111.9 |
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value [Abstract] | |||||||||||||||||||
Fair value of assets and liabilities measured on a recurring and non-recurring basis | Assets measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below: | ||||||||||||||||||
Fair Value Measurement | |||||||||||||||||||
at December 31, 2014 Using | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Quoted Prices | |||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Financial Assets - Recurring | |||||||||||||||||||
US Government Agencies | $ | 33,348 | - | 33,348 | - | ||||||||||||||
MBS | 484 | - | 484 | - | |||||||||||||||
Municipals | 5,711 | - | 5,711 | - | |||||||||||||||
Residential loans held for sale | 9,914 | - | 9,914 | - | |||||||||||||||
- | |||||||||||||||||||
Financial Assets - Non-Recurring | |||||||||||||||||||
Impaired loans | 32,280 | - | 30,028 | 2,252 | |||||||||||||||
Real estate owned | 12,638 | - | 12,168 | 470 | |||||||||||||||
Fair Value Measurement | |||||||||||||||||||
at December 31, 2013 Using | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Quoted Prices | |||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||
Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
Financial Assets - Recurring | |||||||||||||||||||
US Treasuries | $ | 7,210 | $ | - | 7,210 | $ | - | ||||||||||||
US Government Agencies | 34,351 | - | 34,351 | - | |||||||||||||||
MBS | 2,752 | - | 2,752 | - | |||||||||||||||
Municipals | 13,435 | - | 13,435 | - | |||||||||||||||
Residential loans held for sale | 8,371 | - | 8,371 | - | |||||||||||||||
- | |||||||||||||||||||
Financial Assets - Non-Recurring | |||||||||||||||||||
Impaired loans | 46,932 | - | 42,679 | 4,253 | |||||||||||||||
Real estate owned | 16,742 | - | 15,405 | 1,337 | |||||||||||||||
Changes in level 3 fair value | The following table presents the changes in the Level 3 fair value category for the years ended December 31, 2014 and 2013. | ||||||||||||||||||
Impaired | Real Estate | ||||||||||||||||||
Loans | Owned | Total Assets | |||||||||||||||||
(In thousands) | |||||||||||||||||||
Balance at December 31, 2012 | $ | 7,759 | $ | 1,529 | $ | 9,288 | |||||||||||||
Total realized and unrealized gains (losses) | |||||||||||||||||||
Included in earnings | - | 241 | 241 | ||||||||||||||||
Included in other comprehensive income | - | - | - | ||||||||||||||||
Net transfers in and/or out of Level 3 | (3,506 | ) | (433 | ) | (3,939 | ) | |||||||||||||
Balance at December 31, 2013 | $ | 4,253 | $ | 1,337 | $ | 5,590 | |||||||||||||
Total realized and unrealized gains (losses) | |||||||||||||||||||
Included in earnings | - | (381 | ) | (381 | ) | ||||||||||||||
Included in other comprehensive income | - | - | - | ||||||||||||||||
Net transfers in and/or out of Level 3 | (1,990 | ) | (486 | ) | (2,476 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 2,263 | $ | 470 | $ | 2,733 | |||||||||||||
Fair value - financial instruments summary | December 31, | December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Level in Fair | |||||||||||||||||||
Value | Carrying | Estimated | Carrying | Estimated | |||||||||||||||
Hierarchy | Value | Fair Value | Value | Fair Value | |||||||||||||||
(In thousands) | |||||||||||||||||||
Financial assets | |||||||||||||||||||
Cash | Level 1 | $ | 25,115 | $ | 25,115 | $ | 15,221 | $ | 15,221 | ||||||||||
Cash equivalents | Level 2 | 23,988 | 23,988 | 24,988 | 24,988 | ||||||||||||||
Investment securities available for sale | Level 2 | 39,542 | 39,542 | 57,748 | 57,748 | ||||||||||||||
Federal Home Loan Bank stock | Level 2 | 1,073 | 1,073 | 1,417 | 1,417 | ||||||||||||||
Loans held for sale | Level 2 | 9,914 | 9,914 | 8,371 | 8,371 | ||||||||||||||
Loans | Level 2 | 253,855 | 249,942 | 233,075 | 236,582 | ||||||||||||||
Impaired loans | Level 2 | 30,028 | 30,028 | 42,679 | 42,679 | ||||||||||||||
Impaired loans | Level 3 | 2,263 | 2,263 | 4,253 | 4,253 | ||||||||||||||
Other real estate owned | Level 2 | 12,168 | 12,168 | 15,405 | 15,405 | ||||||||||||||
Other real estate owned | Level 3 | 470 | 470 | 1,337 | 1,337 | ||||||||||||||
Bank owned life insurance | Level 3 | 6,947 | 6,947 | 6,764 | 6,765 | ||||||||||||||
Accrued interest receivable | Level 2 | 1,372 | 1,372 | 1,486 | 1,486 | ||||||||||||||
Financial liabilities | |||||||||||||||||||
Deposits | Level 2 | 378,860 | 379,857 | 390,628 | 391,814 | ||||||||||||||
FHLB borrowings | Level 2 | 14,000 | 14,065 | 18,000 | 18,212 | ||||||||||||||
Trust preferred securities | Level 2 | 8,764 | 7,274 | 8,764 | 7,274 | ||||||||||||||
Other borrowings | Level 2 | 3,302 | 3,303 | 2,713 | 3,289 | ||||||||||||||
Accrued interest payable | Level 2 | 1,167 | 1,167 | 1,093 | 1,093 |
Parent_corporation_only_financ1
Parent corporation only financial statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Parent corporation only financial statements [Abstract] | |||||||||||||
Condensed Balance Sheet | Village Bank and Trust Financial Corp. | ||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Balance Sheet | |||||||||||||
(in thousands) | |||||||||||||
December 31, | December 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and due from banks | $ | 84 | $ | 460 | |||||||||
Investment in subsidiaries | 30,158 | 27,574 | |||||||||||
Investment in special purpose subsidiary | 264 | 264 | |||||||||||
Prepaid expenses and other assets | 2,062 | 1,823 | |||||||||||
$ | 32,568 | $ | 30,121 | ||||||||||
Liabilities and Shareholders' Equity | |||||||||||||
Liabilities | |||||||||||||
Balance due to nonbank subsidiaries | $ | 8,764 | $ | 8,764 | |||||||||
Other liabilities | 4,746 | 3,113 | |||||||||||
Total liabilities | 13,510 | 11,877 | |||||||||||
Shareholders' equity | |||||||||||||
Preferred stock | 59 | 59 | |||||||||||
Warrant surplus | 732 | 732 | |||||||||||
Discount on preferred stock | - | (50 | ) | ||||||||||
791 | 741 | ||||||||||||
Surplus related to preferred stock (CPP) | 14,679 | 14,679 | |||||||||||
Additional paid-in capital | 43,509 | 23,375 | |||||||||||
58,188 | 38,054 | ||||||||||||
Common stock | 1,339 | 21,353 | |||||||||||
Retained earnings (deficit) | (40,539 | ) | (38,066 | ) | |||||||||
Stock in directors rabbi trust | (878 | ) | 878 | ||||||||||
Directors deferred fees obligation | 878 | 878 | |||||||||||
Accumulated other comprehensive loss | (721 | ) | (3,838 | ) | |||||||||
Total stockholders' equity | 19,058 | 18,244 | |||||||||||
$ | 32,568 | $ | 30,121 | ||||||||||
Condensed Statements of Operations and Comprehensive Loss | Village Bank and Trust Financial Corp. | ||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Statements of Operations and Comprehensive Loss | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | |||||||||||||
Village Bank money market | $ | 1 | $ | 3 | $ | 8 | |||||||
Interest expense | |||||||||||||
Interest on note TARP | - | 55 | 58 | ||||||||||
Interest on trust preferred securities | 215 | 183 | 346 | ||||||||||
215 | 238 | 404 | |||||||||||
Net interest loss | (214 | ) | (235 | ) | (396 | ) | |||||||
Expenses | |||||||||||||
Equipment | - | 2 | 7 | ||||||||||
Supplies | 54 | 57 | 50 | ||||||||||
Legal | - | 7 | - | ||||||||||
Other outside services | 53 | 47 | 20 | ||||||||||
Other | 52 | 33 | 25 | ||||||||||
Total expenses | 159 | 146 | 102 | ||||||||||
Net loss before undistributed loss of subsidiary | (373 | ) | (381 | ) | (498 | ) | |||||||
Undistributed loss of subsidiary | (664 | ) | (3,626 | ) | (8,489 | ) | |||||||
Net loss before income tax benefit | (1,037 | ) | (4,007 | ) | (8,987 | ) | |||||||
Income tax benefit | - | - | 1,412 | ||||||||||
Net loss | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Total comprehensive Income (loss) | $ | 2,080 | $ | (7,679 | ) | $ | (10,558 | ) | |||||
Condensed Statements of Cash Flows | Village Bank and Trust Financial Corp. | ||||||||||||
(Parent Corporation Only) | |||||||||||||
Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net loss | $ | (1,037 | ) | $ | (4,007 | ) | $ | (10,399 | ) | ||||
Adjustments to reconcile net income to net cash used in by operating activities | |||||||||||||
Depreciation and amortization | - | 2 | 9 | ||||||||||
Undistributed loss of subsidiary | 664 | 3,626 | 8,489 | ||||||||||
(Increase) decrease in other assets | (239 | ) | (8 | ) | 5,015 | ||||||||
Increase (decrease) in other liabilities | 247 | 252 | (3,200 | ) | |||||||||
Net cash used in operations | (365 | ) | (135 | ) | (86 | ) | |||||||
Cash Flows from Investing Activities | |||||||||||||
Payments for investments in and advances to subsidiaries | - | (1,684 | ) | (1,500 | ) | ||||||||
Net cash used in investing activities | - | (1,684 | ) | (1,500 | ) | ||||||||
Cash Flows from Financing Activities | |||||||||||||
Proceeds from issuance of common stock | (11 | ) | 1,684 | - | |||||||||
Net cash provided by (used in) financing activities | (11 | ) | 1,684 | - | |||||||||
Net decrease in cash | (376 | ) | (135 | ) | (1,586 | ) | |||||||
Cash, beginning of year | 460 | 595 | 2,181 | ||||||||||
Cash, end of year | $ | 84 | $ | 460 | $ | 595 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Financing Receivable, Modifications [Line Items] | |||
Gains on sale of loans | $4,449,000 | $7,744,000 | $8,562,000 |
Provision for loan recourse | 0 | ||
Aggregate mortgage loan amount | 9,207,000 | ||
Loans held for sale | 9,914,000 | ||
Loan commitments to third party investors | 19,121,000 | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Loan non accrual period | 90 days | ||
Loan accrual period | 90 days | ||
Letters of credit outstanding | 48,842,000 | 50,247,000 | |
Real estate acquired in settlement of loans [Abstract] | |||
Valuation allowance | 2,369,000 | ||
Consolidated statements of cash flows [Abstract] | |||
Interest paid | 3,486,000 | 4,244,000 | 5,678,000 |
Income tax paid | 0 | 0 | 0 |
Comprehensive income [Abstract] | |||
Unrealized losses on securities available for sale | -644,000 | -3,752,451 | |
Unfunded pension liability | 77,000 | 86,000 | |
Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration term of option | 10 years | ||
Option vesting period | 3 years | ||
Stock Incentive Plan 2000 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized (in shares) | 48,750 | ||
Stock option and award granted (in shares) | 6,830 | ||
Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful Life | 39 years | ||
Standby Letters of Credit [Member] | |||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |||
Letters of credit outstanding | $1,571,000 | $2,192,000 | |
Minimum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period from issuance and closing | 30 days | ||
Property, Plant and Equipment [Line Items] | |||
Estimated useful Life | 3 years | ||
Maximum [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Period from issuance and closing | 45 days | ||
Property, Plant and Equipment [Line Items] | |||
Estimated useful Life | 7 years |
Investment_securities_availabl2
Investment securities available-for-sale (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $40,518,000 | $63,433,000 | |
Gross Unrealized Gains | 4,000 | 10,000 | |
Gross Unrealized Losses | -980,000 | -5,695,000 | |
Estimated Fair Value | 39,542,000 | 57,748,000 | |
Available for sale securities realized gross gains and losses [Abstract] | |||
Gross realized gains | 218,000 | 217,000 | 1,037,000 |
Gross realized losses | -428,000 | 0 | -27,000 |
Realized gain net | -210,000 | 217,000 | 1,010,000 |
Proceeds from sale of investment securities available for sale | 21,000,000 | ||
Purchase of rehabilitated student loans with variable interest rates | 15,000,000 | ||
Investment securities available for sale with unrealized loss position [Abstract] | |||
Securities in a Loss Position for Less Than 12 Months, Fair Value | 0 | 54,285,000 | |
Securities in a Loss Position for Less Than 12 Months, Unrealized Losses | 0 | -5,489,000 | |
Securities in a Loss Position for More Than 12 Months, Fair Value | 39,207,000 | 2,571,000 | |
Securities in a Loss Position for More Than 12 Months, Unrealized Losses | -980,000 | -206,000 | |
Total Fair Value | 39,207,000 | 56,856,000 | |
Total Unrealized Losses | -980,000 | -5,695,000 | |
US Treasuries [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 7,825,000 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | -615,000 | ||
Estimated Fair Value | 7,210,000 | ||
Investment securities available for sale with unrealized loss position [Abstract] | |||
Securities in a Loss Position for Less Than 12 Months, Fair Value | 0 | 7,210,000 | |
Securities in a Loss Position for Less Than 12 Months, Unrealized Losses | 0 | -615,000 | |
Securities in a Loss Position for More Than 12 Months, Fair Value | 33,347,000 | 0 | |
Securities in a Loss Position for More Than 12 Months, Unrealized Losses | -872,000 | 0 | |
Total Fair Value | 33,347,000 | 7,210,000 | |
Total Unrealized Losses | -872,000 | -615,000 | |
U.S. Government agencies [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 34,220,000 | 37,704,000 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | -872,000 | -3,353,000 | |
Estimated Fair Value | 33,348,000 | 34,351,000 | |
Investment securities available for sale with unrealized loss position [Abstract] | |||
Securities in a Loss Position for Less Than 12 Months, Fair Value | 0 | 34,350,000 | |
Securities in a Loss Position for Less Than 12 Months, Unrealized Losses | 0 | -3,353,000 | |
Securities in a Loss Position for More Than 12 Months, Fair Value | 363,000 | 0 | |
Securities in a Loss Position for More Than 12 Months, Unrealized Losses | -2,000 | 0 | |
Total Fair Value | 363,000 | 34,350,000 | |
Total Unrealized Losses | -2,000 | -3,353,000 | |
Mortgage-backed securities [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 484,000 | 2,792,000 | |
Gross Unrealized Gains | 2,000 | 10,000 | |
Gross Unrealized Losses | -2,000 | -50,000 | |
Estimated Fair Value | 484,000 | 2,752,000 | |
Investment securities available for sale with unrealized loss position [Abstract] | |||
Securities in a Loss Position for Less Than 12 Months, Fair Value | 1,861,000 | ||
Securities in a Loss Position for Less Than 12 Months, Unrealized Losses | -50,000 | ||
Securities in a Loss Position for More Than 12 Months, Fair Value | 0 | ||
Securities in a Loss Position for More Than 12 Months, Unrealized Losses | 0 | ||
Total Fair Value | 1,861,000 | ||
Total Unrealized Losses | -50,000 | ||
Municipals [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 5,814,000 | 15,112,000 | |
Gross Unrealized Gains | 2,000 | 0 | |
Gross Unrealized Losses | -106,000 | -1,677,000 | |
Estimated Fair Value | 5,710,000 | 13,435,000 | |
Investment securities were pledged to secure deposit repurchase agreements | 17,567,000 | 6,899,000 | |
Investment securities available for sale with unrealized loss position [Abstract] | |||
Securities in a Loss Position for Less Than 12 Months, Fair Value | 0 | 10,864,000 | |
Securities in a Loss Position for Less Than 12 Months, Unrealized Losses | 0 | -1,471,000 | |
Securities in a Loss Position for More Than 12 Months, Fair Value | 5,497,000 | 2,571,000 | |
Securities in a Loss Position for More Than 12 Months, Unrealized Losses | -106,000 | -206,000 | |
Total Fair Value | 5,497,000 | 13,435,000 | |
Total Unrealized Losses | ($106,000) | ($1,677,000) |
Investment_securities_availabl3
Investment securities available-for-sale, amortized cost and estimated fair value by contractual maturity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost [Abstract] | ||
One to five years | $10,324 | |
Five to ten years | 25,026 | |
More than ten years | 5,168 | |
Amortized Cost | 40,518 | 63,433 |
Estimated Fair Value [Abstract] | ||
One to five years | 10,099 | |
Five to ten years | 24,359 | |
More than ten years | 5,084 | |
Estimated Fair Value | $39,542 | $57,748 |
Loans_Loans_Classified_by_Type
Loans, Loans Classified by Type (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Dec. 30, 2014 | Jul. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Portfolio | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | $286,146,000 | $286,563,000 | ||||
Deferred loan cost, net | 722,000 | 683,000 | ||||
Less: allowance for loan losses | -5,729,000 | -7,239,000 | -10,808,000 | -16,071,000 | ||
Total loans, net | 281,139,000 | 280,007,000 | ||||
Gross loans pledged as collateral | 0 | 70,959,000 | ||||
Construction and Land Development [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 29,467,000 | 31,110,000 | ||||
Less: allowance for loan losses | -236,000 | -1,409,000 | -5,106,000 | -7,503,000 | ||
Residential [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 4,315,000 | 2,931,000 | ||||
Less: allowance for loan losses | -34,000 | -135,000 | -495,000 | -705,000 | ||
Commercial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 25,152,000 | 28,179,000 | ||||
Less: allowance for loan losses | -202,000 | -1,274,000 | -4,611,000 | -6,798,000 | ||
Commercial Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 109,568,000 | 130,475,000 | ||||
Less: allowance for loan losses | -2,651,000 | -2,226,000 | -2,199,000 | -3,452,000 | ||
Owner Occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 58,804,000 | 73,584,000 | ||||
Less: allowance for loan losses | -1,836,000 | -1,199,000 | -1,358,000 | -1,496,000 | ||
Non-Owner Occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 38,892,000 | 43,868,000 | ||||
Less: allowance for loan losses | -607,000 | -670,000 | -817,000 | -1,549,000 | ||
Multifamily [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 11,438,000 | 11,560,000 | ||||
Less: allowance for loan losses | -78,000 | -20,000 | -24,000 | -407,000 | ||
Farmland [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 434,000 | 1,463,000 | ||||
Less: allowance for loan losses | -130,000 | -337,000 | 0 | 0 | ||
Consumer Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 89,773,000 | 96,794,000 | ||||
Less: allowance for loan losses | -2,089,000 | -2,810,000 | -2,240,000 | -3,139,000 | ||
Home Equity Lines [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 20,082,000 | 21,246,000 | ||||
Less: allowance for loan losses | -469,000 | -424,000 | -658,000 | -860,000 | ||
First Deed of Trust [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 61,837,000 | 66,873,000 | ||||
Less: allowance for loan losses | -1,345,000 | -1,992,000 | -1,358,000 | -1,881,000 | ||
Second Deed of Trust [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 7,854,000 | 8,675,000 | ||||
Less: allowance for loan losses | -275,000 | -394,000 | -224,000 | -398,000 | ||
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 22,165,000 | 26,254,000 | ||||
Less: allowance for loan losses | -506,000 | -724,000 | -1,162,000 | -1,656,000 | ||
Guaranteed Student Loans [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 33,562,000 | 0 | ||||
Less: allowance for loan losses | -217,000 | 0 | 0 | 0 | ||
Number of portfolios purchased | 2 | |||||
Payments for loans | 14,000,000 | 19,000,000 | ||||
Percentage of principal and accrued interest covered by guarantee (in hundredths) | 98.00% | |||||
Consumer and Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total loans | 1,611,000 | 1,930,000 | ||||
Less: allowance for loan losses | ($30,000) | ($70,000) | ($101,000) | ($321,000) |
Loans_Loans_with_Related_Parti
Loans, Loans with Related Parties (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loans directly or indirectly with executive officers or directors [Roll Forward] | ||
Beginning balance | $7,929,000 | $8,593,000 |
Additions | 4,888,000 | 4,833,000 |
Reductions | -4,559,000 | -5,497,000 |
Ending balance | 8,258,000 | 7,929,000 |
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unused credit lines to executive officers and directors | $1,670,000 | $1,731,000 |
Loans_Nonaccrual_Loans_Details
Loans, Nonaccrual Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | $7,478,000 | $18,647,000 | $25,605,000 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 381,000 | 1,811,000 | |
Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 164,000 | 0 | |
Commercial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 217,000 | 1,811,000 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 2,337,000 | 6,313,000 | |
Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 2,316,000 | 2,704,000 | |
Non-Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 0 | 3,492,000 | |
Farmland [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 21,000 | 117,000 | |
Consumer Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 3,918,000 | 9,649,000 | |
Home Equity Lines [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 800,000 | 1,632,000 | |
First Deed of Trust [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 2,416,000 | 7,083,000 | |
Second Deed of Trust [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 702,000 | 934,000 | |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | 819,000 | 840,000 | |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | $23,000 | $34,000 |
Loans_Risk_Rating_of_Loans_Det
Loans, Risk Rating of Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $286,146 | $286,563 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 29,467 | 31,110 |
Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,315 | 2,931 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,152 | 28,179 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 109,568 | 130,475 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 58,804 | 73,584 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 38,892 | 43,868 |
Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,438 | 11,560 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 434 | 1,463 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 89,773 | 96,794 |
Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,082 | 21,246 |
First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 61,837 | 66,873 |
Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,854 | 8,675 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22,165 | 26,254 |
Guaranteed Student Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 33,562 | 0 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,611 | 1,930 |
Risk Rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 250,469 | 212,506 |
Risk Rated 1-4 [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,587 | 20,980 |
Risk Rated 1-4 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,946 | 2,715 |
Risk Rated 1-4 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,641 | 18,265 |
Risk Rated 1-4 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 94,730 | 95,951 |
Risk Rated 1-4 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 47,175 | 51,810 |
Risk Rated 1-4 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 36,439 | 31,990 |
Risk Rated 1-4 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,703 | 10,804 |
Risk Rated 1-4 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 413 | 1,347 |
Risk Rated 1-4 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 77,076 | 74,050 |
Risk Rated 1-4 [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,107 | 17,610 |
Risk Rated 1-4 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 52,513 | 49,843 |
Risk Rated 1-4 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,456 | 6,597 |
Risk Rated 1-4 [Member] | Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,026 | 19,786 |
Risk Rated 1-4 [Member] | Guaranteed Student Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 33,562 | |
Risk Rated 1-4 [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,488 | 1,739 |
Risk Rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,640 | 28,893 |
Risk Rated 5 [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,827 | 2,711 |
Risk Rated 5 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 205 | 0 |
Risk Rated 5 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,622 | 2,711 |
Risk Rated 5 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,780 | 17,424 |
Risk Rated 5 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,234 | 13,214 |
Risk Rated 5 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,811 | 3,454 |
Risk Rated 5 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 735 | 756 |
Risk Rated 5 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Risk Rated 5 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,662 | 7,585 |
Risk Rated 5 [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 465 | 727 |
Risk Rated 5 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,763 | 6,646 |
Risk Rated 5 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 434 | 212 |
Risk Rated 5 [Member] | Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,297 | 1,042 |
Risk Rated 5 [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 74 | 131 |
Risk Rate 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 17,585 | 45,164 |
Risk Rate 6 [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,053 | 7,419 |
Risk Rate 6 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 164 | 216 |
Risk Rate 6 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,889 | 7,203 |
Risk Rate 6 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,058 | 17,101 |
Risk Rate 6 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 6,395 | 8,560 |
Risk Rate 6 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 642 | 8,424 |
Risk Rate 6 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Risk Rate 6 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 21 | 117 |
Risk Rate 6 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,035 | 15,158 |
Risk Rate 6 [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,510 | 2,909 |
Risk Rate 6 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,561 | 10,384 |
Risk Rate 6 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 964 | 1,865 |
Risk Rate 6 [Member] | Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 390 | 5,426 |
Risk Rate 6 [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 49 | 60 |
Risk Rated 7 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 452 | 0 |
Risk Rated 7 [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | |
Risk Rated 7 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Risk Rated 7 [Member] | Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 452 | 0 |
Risk Rated 7 [Member] | Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $0 | $0 |
Loans_Aging_of_Past_Due_Loans_
Loans, Aging of Past Due Loans and Leases (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | $1,565 | $1,298 |
60-89 Days Past Due | 1,130 | 1,388 |
Greater Than 90 Days | 720 | 60 |
Total Past Due | 3,415 | 2,746 |
Current | 282,731 | 283,817 |
Total Loans | 286,146 | 286,563 |
Recorded Investment > 90 Days and Accruing | 720 | 60 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 92 | 0 |
60-89 Days Past Due | 391 | 116 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 483 | 116 |
Current | 28,984 | 30,994 |
Total Loans | 29,467 | 31,110 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Residential [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 0 |
Current | 4,315 | 2,931 |
Total Loans | 4,315 | 2,931 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 92 | 0 |
60-89 Days Past Due | 391 | 116 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 483 | 116 |
Current | 24,669 | 28,063 |
Total Loans | 25,152 | 28,179 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 715 | 614 |
60-89 Days Past Due | 0 | 346 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 715 | 960 |
Current | 108,853 | 129,515 |
Total Loans | 109,568 | 130,475 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 715 | 199 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 715 | 199 |
Current | 58,089 | 73,385 |
Total Loans | 58,804 | 73,584 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 0 |
60-89 Days Past Due | 0 | 346 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 346 |
Current | 38,892 | 43,522 |
Total Loans | 38,892 | 43,868 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 221 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 221 |
Current | 11,438 | 11,339 |
Total Loans | 11,438 | 11,560 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 194 |
60-89 Days Past Due | 0 | 0 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 0 | 194 |
Current | 434 | 1,269 |
Total Loans | 434 | 1,463 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 87 | 653 |
60-89 Days Past Due | 292 | 789 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 379 | 1,442 |
Current | 89,394 | 95,352 |
Total Loans | 89,773 | 96,794 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Home Equity Lines [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 31 | 98 |
60-89 Days Past Due | 139 | 403 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 170 | 501 |
Current | 19,912 | 20,745 |
Total Loans | 20,082 | 21,246 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 555 |
60-89 Days Past Due | 153 | 362 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 153 | 917 |
Current | 61,684 | 65,956 |
Total Loans | 61,837 | 66,873 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 56 | 0 |
60-89 Days Past Due | 0 | 24 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 56 | 24 |
Current | 7,798 | 8,651 |
Total Loans | 7,854 | 8,675 |
Recorded Investment > 90 Days and Accruing | 0 | 0 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 25 |
60-89 Days Past Due | 47 | 122 |
Greater Than 90 Days | 0 | 60 |
Total Past Due | 47 | 207 |
Current | 22,118 | 26,047 |
Total Loans | 22,165 | 26,254 |
Recorded Investment > 90 Days and Accruing | 0 | 60 |
Guaranteed Student Loans [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 671 | |
60-89 Days Past Due | 392 | |
Greater Than 90 Days | 720 | |
Total Past Due | 1,783 | |
Current | 31,779 | |
Total Loans | 33,562 | 0 |
Recorded Investment > 90 Days and Accruing | 720 | |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
30-59 Days Past Due | 0 | 6 |
60-89 Days Past Due | 8 | 15 |
Greater Than 90 Days | 0 | 0 |
Total Past Due | 8 | 21 |
Current | 1,603 | 1,909 |
Total Loans | 1,611 | 1,930 |
Recorded Investment > 90 Days and Accruing | $0 | $0 |
Loans_Impaired_Loans_Details
Loans, Impaired Loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | $22,839 | $31,621 |
Unpaid Principal Balance | 23,661 | 32,703 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 9,441 | 15,311 |
Unpaid Principal Balance | 9,456 | 16,151 |
Related Allowance | 1,512 | 1,830 |
Total [Abstract] | ||
Recorded Investment | 32,280 | 46,932 |
Unpaid Principal Balance | 33,117 | 48,854 |
Related Allowance | 1,512 | 1,830 |
Construction and Land Development [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 3,543 | 3,668 |
Unpaid Principal Balance | 3,543 | 3,713 |
With an allowance recorded [Abstract] | ||
Related Allowance | 26 | 220 |
Total [Abstract] | ||
Recorded Investment | 4,132 | 5,421 |
Unpaid Principal Balance | 4,132 | 5,466 |
Related Allowance | 26 | 220 |
Residential [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 164 | 216 |
Unpaid Principal Balance | 164 | 216 |
With an allowance recorded [Abstract] | ||
Related Allowance | 0 | |
Total [Abstract] | ||
Recorded Investment | 164 | 216 |
Unpaid Principal Balance | 164 | 216 |
Related Allowance | 0 | |
Commercial [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 3,379 | 3,452 |
Unpaid Principal Balance | 3,379 | 3,497 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 589 | 1,753 |
Unpaid Principal Balance | 589 | 1,753 |
Related Allowance | 26 | 220 |
Total [Abstract] | ||
Recorded Investment | 3,968 | 5,205 |
Unpaid Principal Balance | 3,968 | 5,250 |
Related Allowance | 26 | 220 |
Commercial Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 10,622 | 16,178 |
Unpaid Principal Balance | 11,051 | 16,720 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 6,625 | 11,091 |
Unpaid Principal Balance | 6,640 | 11,245 |
Related Allowance | 905 | 1,051 |
Total [Abstract] | ||
Recorded Investment | 17,247 | 27,269 |
Unpaid Principal Balance | 17,691 | 27,965 |
Related Allowance | 905 | 1,051 |
Owner Occupied [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 1,686 | 1,919 |
Unpaid Principal Balance | 1,686 | 1,969 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 6,625 | 9,794 |
Unpaid Principal Balance | 6,640 | 9,948 |
Related Allowance | 905 | 680 |
Total [Abstract] | ||
Recorded Investment | 8,311 | 11,713 |
Unpaid Principal Balance | 8,326 | 11,917 |
Related Allowance | 905 | 680 |
Non-Owner Occupied [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 6,593 | 11,769 |
Unpaid Principal Balance | 6,593 | 11,928 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 1,297 | |
Unpaid Principal Balance | 1,297 | |
Related Allowance | 0 | 371 |
Total [Abstract] | ||
Recorded Investment | 6,593 | 13,066 |
Unpaid Principal Balance | 6,593 | 13,225 |
Related Allowance | 0 | 371 |
Multifamily [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 2,322 | 2,373 |
Unpaid Principal Balance | 2,322 | 2,373 |
With an allowance recorded [Abstract] | ||
Related Allowance | 0 | 0 |
Total [Abstract] | ||
Recorded Investment | 2,322 | 2,373 |
Unpaid Principal Balance | 2,322 | 2,373 |
Related Allowance | 0 | 0 |
Farmland [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 21 | 117 |
Unpaid Principal Balance | 450 | 450 |
With an allowance recorded [Abstract] | ||
Related Allowance | 0 | 0 |
Total [Abstract] | ||
Recorded Investment | 21 | 117 |
Unpaid Principal Balance | 450 | 450 |
Related Allowance | 0 | 0 |
Consumer Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 8,388 | 10,932 |
Unpaid Principal Balance | 8,666 | 11,253 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 1,672 | 2,316 |
Unpaid Principal Balance | 1,672 | 3,002 |
Related Allowance | 342 | 516 |
Total [Abstract] | ||
Recorded Investment | 10,060 | 13,248 |
Unpaid Principal Balance | 10,338 | 14,255 |
Related Allowance | 342 | 516 |
Home Equity Lines [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 800 | 1,630 |
Unpaid Principal Balance | 800 | 1,685 |
With an allowance recorded [Abstract] | ||
Related Allowance | 0 | 0 |
Total [Abstract] | ||
Recorded Investment | 800 | 1,630 |
Unpaid Principal Balance | 800 | 1,685 |
Related Allowance | 0 | 0 |
First Deed of Trust [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 6,485 | 8,177 |
Unpaid Principal Balance | 6,493 | 8,319 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 1,415 | 2,184 |
Unpaid Principal Balance | 1,415 | 2,870 |
Related Allowance | 200 | 484 |
Total [Abstract] | ||
Recorded Investment | 7,900 | 10,361 |
Unpaid Principal Balance | 7,908 | 11,189 |
Related Allowance | 200 | 484 |
Second Deed of Trust [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 1,103 | 1,125 |
Unpaid Principal Balance | 1,373 | 1,249 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 257 | 132 |
Unpaid Principal Balance | 257 | 132 |
Related Allowance | 142 | 32 |
Total [Abstract] | ||
Recorded Investment | 1,360 | 1,257 |
Unpaid Principal Balance | 1,630 | 1,381 |
Related Allowance | 142 | 32 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 263 | 809 |
Unpaid Principal Balance | 365 | 983 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 555 | 151 |
Unpaid Principal Balance | 555 | 151 |
Related Allowance | 239 | 43 |
Total [Abstract] | ||
Recorded Investment | 818 | 960 |
Unpaid Principal Balance | 920 | 1,134 |
Related Allowance | 239 | 43 |
Consumer and Other [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 23 | 34 |
Unpaid Principal Balance | 36 | 34 |
With an allowance recorded [Abstract] | ||
Related Allowance | 0 | 0 |
Total [Abstract] | ||
Recorded Investment | 23 | 34 |
Unpaid Principal Balance | 36 | 34 |
Related Allowance | $0 | $0 |
Loans_Impaired_Loans_Average_I
Loans, Impaired Loans, Average Investment Income and Interest Income Recognized (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | $23,382,000 | $34,968,000 | |
Interest Income Recognized | 1,208,000 | 1,692,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 8,751,000 | 14,535,000 | |
Interest Income Recognized | 394,000 | 754,000 | |
Total [Abstract] | |||
Average Recorded Investment | 32,133,000 | 49,503,000 | |
Interest Income Recognized | 1,602,000 | 2,446,000 | |
Nonaccrual loans | 7,478,000 | 18,647,000 | 25,605,000 |
Impaired loan valuation allowance | 1,087,000 | 1,189,000 | 1,338,000 |
Cumulative interest on nonaccrual loans | 224,000 | 1,093,000 | 1,592,000 |
Construction and Land Development [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 3,823,000 | 5,622,000 | |
Interest Income Recognized | 207,000 | 264,000 | |
Total [Abstract] | |||
Average Recorded Investment | 4,424,000 | 7,442,000 | |
Interest Income Recognized | 240,000 | 316,000 | |
Nonaccrual loans | 381,000 | 1,811,000 | |
Residential [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 181,000 | 179,000 | |
Interest Income Recognized | 2,000 | 9,000 | |
Total [Abstract] | |||
Average Recorded Investment | 181,000 | 179,000 | |
Interest Income Recognized | 2,000 | 9,000 | |
Nonaccrual loans | 164,000 | 0 | |
Commercial [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 3,642,000 | 5,443,000 | |
Interest Income Recognized | 205,000 | 255,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 601,000 | 1,820,000 | |
Interest Income Recognized | 33,000 | 52,000 | |
Total [Abstract] | |||
Average Recorded Investment | 4,243,000 | 7,263,000 | |
Interest Income Recognized | 238,000 | 307,000 | |
Nonaccrual loans | 217,000 | 1,811,000 | |
Commercial Real Estate [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 10,766,000 | 16,987,000 | |
Interest Income Recognized | 554,000 | 861,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 5,853,000 | 10,070,000 | |
Interest Income Recognized | 272,000 | 578,000 | |
Total [Abstract] | |||
Average Recorded Investment | 16,619,000 | 27,057,000 | |
Interest Income Recognized | 826,000 | 1,439,000 | |
Nonaccrual loans | 2,337,000 | 6,313,000 | |
Owner Occupied [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 1,705,000 | 2,552,000 | |
Interest Income Recognized | 93,000 | 113,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 5,853,000 | 8,759,000 | |
Interest Income Recognized | 272,000 | 513,000 | |
Total [Abstract] | |||
Average Recorded Investment | 7,558,000 | 11,311,000 | |
Interest Income Recognized | 365,000 | 626,000 | |
Nonaccrual loans | 2,316,000 | 2,704,000 | |
Non-Owner Occupied [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 6,693,000 | 11,922,000 | |
Interest Income Recognized | 320,000 | 599,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 0 | 1,311,000 | |
Interest Income Recognized | 0 | 65,000 | |
Total [Abstract] | |||
Average Recorded Investment | 6,693,000 | 13,233,000 | |
Interest Income Recognized | 320,000 | 664,000 | |
Nonaccrual loans | 0 | 3,492,000 | |
Multifamily [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 2,347,000 | 2,396,000 | |
Interest Income Recognized | 141,000 | 149,000 | |
Total [Abstract] | |||
Average Recorded Investment | 2,347,000 | 2,396,000 | |
Interest Income Recognized | 141,000 | 149,000 | |
Farmland [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 21,000 | 117,000 | |
Interest Income Recognized | 0 | 0 | |
Total [Abstract] | |||
Average Recorded Investment | 21,000 | 117,000 | |
Interest Income Recognized | 0 | 0 | |
Nonaccrual loans | 21,000 | 117,000 | |
Consumer Real Estate [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 8,493,000 | 11,525,000 | |
Interest Income Recognized | 430,000 | 517,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 1,727,000 | 2,491,000 | |
Interest Income Recognized | 56,000 | 120,000 | |
Total [Abstract] | |||
Average Recorded Investment | 10,220,000 | 14,016,000 | |
Interest Income Recognized | 486,000 | 637,000 | |
Nonaccrual loans | 3,918,000 | 9,649,000 | |
Home Equity Lines [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 800,000 | 1,632,000 | |
Interest Income Recognized | 27,000 | 59,000 | |
Total [Abstract] | |||
Average Recorded Investment | 800,000 | 1,632,000 | |
Interest Income Recognized | 27,000 | 59,000 | |
Nonaccrual loans | 800,000 | 1,632,000 | |
First Deed of Trust [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 6,581,000 | 8,707,000 | |
Interest Income Recognized | 352,000 | 395,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 1,464,000 | 2,355,000 | |
Interest Income Recognized | 45,000 | 116,000 | |
Total [Abstract] | |||
Average Recorded Investment | 8,045,000 | 11,062,000 | |
Interest Income Recognized | 397,000 | 511,000 | |
Nonaccrual loans | 2,416,000 | 7,083,000 | |
Second Deed of Trust [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 1,112,000 | 1,186,000 | |
Interest Income Recognized | 51,000 | 63,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 263,000 | 136,000 | |
Interest Income Recognized | 11,000 | 4,000 | |
Total [Abstract] | |||
Average Recorded Investment | 1,375,000 | 1,322,000 | |
Interest Income Recognized | 62,000 | 67,000 | |
Nonaccrual loans | 702,000 | 934,000 | |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 274,000 | 796,000 | |
Interest Income Recognized | 15,000 | 48,000 | |
With an allowance recorded [Abstract] | |||
Average Recorded Investment | 570,000 | 154,000 | |
Interest Income Recognized | 33,000 | 4,000 | |
Total [Abstract] | |||
Average Recorded Investment | 844,000 | 950,000 | |
Interest Income Recognized | 48,000 | 52,000 | |
Nonaccrual loans | 819,000 | 840,000 | |
Consumer and Other [Member] | |||
With no related allowance recorded [Abstract] | |||
Average Recorded Investment | 26,000 | 38,000 | |
Interest Income Recognized | 2,000 | 2,000 | |
Total [Abstract] | |||
Average Recorded Investment | 26,000 | 38,000 | |
Interest Income Recognized | 2,000 | 2,000 | |
Nonaccrual loans | $23,000 | $34,000 |
Loans_Troubled_Debt_Restructur
Loans, Troubled Debt Restructurings (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan | Loan | |
Financing Receivable, Modifications [Line Items] | ||
Minimum sustained period of repayment performance for TDR to return to accrual status | 6 months | |
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | $27,141 | $36,285 |
Number of loans | 107 | 115 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 12 | 59 |
Pre-Modification Recorded Balance | 1,606 | 12,472 |
Post-Modification Recorded Balance | 1,606 | 12,451 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 25 | 5 |
Recorded Balance | 1,692 | 584 |
Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 559 | 1,114 |
Number of loans | 21 | 23 |
Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 23,967 | 28,237 |
Number of loans | 77 | 62 |
Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 3,174 | 8,048 |
Number of loans | 30 | 53 |
Construction and Land Development [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 3,902 | 5,138 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 1 | 13 |
Pre-Modification Recorded Balance | 45 | 4,252 |
Post-Modification Recorded Balance | 45 | 4,252 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 6 | 2 |
Recorded Balance | 151 | 142 |
Construction and Land Development [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 17 | 211 |
Construction and Land Development [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 3,751 | 3,610 |
Construction and Land Development [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 151 | 1,528 |
Residential [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 7 | 216 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 0 | 2 |
Pre-Modification Recorded Balance | 0 | 216 |
Post-Modification Recorded Balance | 0 | 216 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 1 | 1 |
Recorded Balance | 7 | 102 |
Residential [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 0 | 0 |
Residential [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 216 |
Residential [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 7 | 0 |
Commercial [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 3,895 | 4,922 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 1 | 11 |
Pre-Modification Recorded Balance | 45 | 4,036 |
Post-Modification Recorded Balance | 45 | 4,036 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 5 | 1 |
Recorded Balance | 144 | 40 |
Commercial [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 17 | 211 |
Commercial [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 3,751 | 3,394 |
Commercial [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 144 | 1,528 |
Commercial Real Estate [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 15,232 | 22,723 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 7 | 12 |
Pre-Modification Recorded Balance | 729 | 4,849 |
Post-Modification Recorded Balance | 729 | 4,849 |
Commercial Real Estate [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 325 | 511 |
Commercial Real Estate [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 14,064 | 20,951 |
Commercial Real Estate [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 1,168 | 1,772 |
Owner Occupied [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 6,317 | 10,377 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 7 | 6 |
Pre-Modification Recorded Balance | 729 | 3,095 |
Post-Modification Recorded Balance | 729 | 3,095 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 1 | 0 |
Recorded Balance | 160 | 0 |
Owner Occupied [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 325 | 374 |
Owner Occupied [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 5,149 | 9,010 |
Owner Occupied [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 1,168 | 1,367 |
Non-Owner Occupied [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 6,593 | 9,973 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 0 | 6 |
Pre-Modification Recorded Balance | 0 | 1,754 |
Post-Modification Recorded Balance | 0 | 1,754 |
Non-Owner Occupied [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 0 | 137 |
Non-Owner Occupied [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 6,593 | 9,568 |
Non-Owner Occupied [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 405 |
Multifamily [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 2,322 | 2,373 |
Multifamily [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 0 | 0 |
Multifamily [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 2,322 | 2,373 |
Multifamily [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 0 |
Consumer Real Estate [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 7,752 | 8,148 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 4 | 33 |
Pre-Modification Recorded Balance | 832 | 3,350 |
Post-Modification Recorded Balance | 832 | 3,350 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 16 | 2 |
Recorded Balance | 1,141 | 325 |
Consumer Real Estate [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 205 | 383 |
Consumer Real Estate [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 6,152 | 3,556 |
Consumer Real Estate [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 1,600 | 4,592 |
Home Equity Lines [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 160 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 0 | 1 |
Pre-Modification Recorded Balance | 0 | 160 |
Post-Modification Recorded Balance | 0 | 160 |
Home Equity Lines [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 0 | 0 |
Home Equity Lines [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 0 |
Home Equity Lines [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 160 |
First Deed of Trust [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 6,990 | 7,296 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 2 | 26 |
Pre-Modification Recorded Balance | 727 | 2,819 |
Post-Modification Recorded Balance | 727 | 2,819 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 14 | 2 |
Recorded Balance | 1,037 | 325 |
First Deed of Trust [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 200 | 383 |
First Deed of Trust [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 5,494 | 3,231 |
First Deed of Trust [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 1,496 | 4,065 |
Second Deed of Trust [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 762 | 692 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 2 | 6 |
Pre-Modification Recorded Balance | 104 | 371 |
Post-Modification Recorded Balance | 104 | 371 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 2 | 0 |
Recorded Balance | 104 | 0 |
Second Deed of Trust [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 5 | 0 |
Second Deed of Trust [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 658 | 325 |
Second Deed of Trust [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 104 | 367 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 239 | 255 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 0 | 1 |
Pre-Modification Recorded Balance | 0 | 117,813 |
Post-Modification Recorded Balance | 0 | 117,813 |
Defaults on TDRs [Abstract] | ||
Number of Loans | 2 | 1 |
Recorded Balance | 240 | 117 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 12 | 9 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 120 |
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 239 | 135 |
Consumer and Other [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 16 | 21 |
Information about TDRs identified during the period [Abstract] | ||
Number of Loans | 0 | 1 |
Pre-Modification Recorded Balance | 0 | 21 |
Post-Modification Recorded Balance | 0 | 0 |
Consumer and Other [Member] | Specific Valuation Allowance [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Specific Valuation Allowance | 0 | 0 |
Consumer and Other [Member] | Performing [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | 0 | 0 |
Consumer and Other [Member] | Nonaccrual [Member] | ||
Information concerning Troubled Debt Restructurings [Abstract] | ||
Total | $16 | $21 |
Allowance_for_loan_losses_Deta
Allowance for loan losses (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | $7,239,000 | $10,808,000 | $16,071,000 |
Provision for Loan Losses | 100,000 | 1,173,000 | 9,095,000 |
Charge-offs | -2,381,000 | -5,659,000 | -14,899,000 |
Recoveries | 771,000 | 917,000 | 541,000 |
Ending Balance | 5,729,000 | 7,239,000 | 10,808,000 |
Allowance individually evaluated for impairment | 1,512,000 | 1,830,000 | |
Allowance collectively evaluated for impairment | 4,217,000 | 5,409,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 286,146,000 | 286,563,000 | |
Loans individually evaluated for impairment | 32,280,000 | 46,932,000 | |
Loans collectively evaluated for impairment | 253,866,000 | 239,631,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Construction and Land Development [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 1,409,000 | 5,106,000 | 7,503,000 |
Provision for Loan Losses | -1,119,000 | -3,944,000 | 3,986,000 |
Charge-offs | -100,000 | -279,000 | -6,442,000 |
Recoveries | 46,000 | 526,000 | 59,000 |
Ending Balance | 236,000 | 1,409,000 | 5,106,000 |
Percentage of recovery (loss) on portfolio from historical experience (in hundredths) | 0.27% | -4.82% | -7.81% |
Decline in outstanding loan balance | -1,643,000 | -12,945,000 | |
Allowance individually evaluated for impairment | 26,000 | 227,000 | |
Allowance collectively evaluated for impairment | 210,000 | 1,182,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 29,467,000 | 31,110,000 | |
Loans individually evaluated for impairment | 4,132,000 | 5,421,000 | |
Loans collectively evaluated for impairment | 25,335,000 | 25,689,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Residential [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 135,000 | 495,000 | 705,000 |
Provision for Loan Losses | -103,000 | -462,000 | 542,000 |
Charge-offs | 0 | 0 | -797,000 |
Recoveries | 2,000 | 102,000 | 45,000 |
Ending Balance | 34,000 | 135,000 | 495,000 |
Allowance individually evaluated for impairment | 0 | 0 | |
Allowance collectively evaluated for impairment | 34,000 | 135,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 4,315,000 | 2,931,000 | |
Loans individually evaluated for impairment | 164,000 | 216,000 | |
Loans collectively evaluated for impairment | 4,151,000 | 2,715,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Commercial [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 1,274,000 | 4,611,000 | 6,798,000 |
Provision for Loan Losses | -1,016,000 | -3,482,000 | 3,444,000 |
Charge-offs | -100,000 | -279,000 | -5,645,000 |
Recoveries | 44,000 | 424,000 | 14,000 |
Ending Balance | 202,000 | 1,274,000 | 4,611,000 |
Allowance individually evaluated for impairment | 26,000 | 227,000 | |
Allowance collectively evaluated for impairment | 176,000 | 1,047,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 25,152,000 | 28,179,000 | |
Loans individually evaluated for impairment | 3,968,000 | 5,205,000 | |
Loans collectively evaluated for impairment | 21,184,000 | 22,974,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Commercial Real Estate [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 2,226,000 | 2,199,000 | 3,452,000 |
Provision for Loan Losses | 1,645,000 | 1,933,000 | -51,000 |
Charge-offs | -1,245,000 | -1,969,000 | -1,402,000 |
Recoveries | 25,000 | 63,000 | 200,000 |
Ending Balance | 2,651,000 | 2,226,000 | 2,199,000 |
Allowance individually evaluated for impairment | 905,000 | 1,044,000 | |
Allowance collectively evaluated for impairment | 1,746,000 | 1,182,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 109,568,000 | 130,475,000 | |
Loans individually evaluated for impairment | 17,247,000 | 27,269,000 | |
Loans collectively evaluated for impairment | 92,321,000 | 103,206,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Owner Occupied [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 1,199,000 | 1,358,000 | 1,496,000 |
Provision for Loan Losses | 1,268,000 | 252,000 | 623,000 |
Charge-offs | -631,000 | -454,000 | -961,000 |
Recoveries | 0 | 43,000 | 200,000 |
Ending Balance | 1,836,000 | 1,199,000 | 1,358,000 |
Allowance individually evaluated for impairment | 905,000 | 673,000 | |
Allowance collectively evaluated for impairment | 932,000 | 527,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 58,804,000 | 73,584,000 | |
Loans individually evaluated for impairment | 8,311,000 | 11,713,000 | |
Loans collectively evaluated for impairment | 50,493,000 | 61,871,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Non-Owner Occupied [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 670,000 | 817,000 | 1,549,000 |
Provision for Loan Losses | 430,000 | 452,000 | -301,000 |
Charge-offs | -518,000 | -619,000 | -431,000 |
Recoveries | 25,000 | 20,000 | 0 |
Ending Balance | 607,000 | 670,000 | 817,000 |
Allowance individually evaluated for impairment | 0 | 371,000 | |
Allowance collectively evaluated for impairment | 607,000 | 299,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 38,892,000 | 43,868,000 | |
Loans individually evaluated for impairment | 6,593,000 | 13,066,000 | |
Loans collectively evaluated for impairment | 32,299,000 | 30,802,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Multifamily [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 20,000 | 24,000 | 407,000 |
Provision for Loan Losses | 58,000 | -4,000 | -373,000 |
Charge-offs | 0 | 0 | -10,000 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 78,000 | 20,000 | 24,000 |
Allowance individually evaluated for impairment | 0 | 0 | |
Allowance collectively evaluated for impairment | 77,000 | 19,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 11,438,000 | 11,560,000 | |
Loans individually evaluated for impairment | 2,322,000 | 2,373,000 | |
Loans collectively evaluated for impairment | 9,116,000 | 9,187,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Farmland [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 337,000 | 0 | 0 |
Provision for Loan Losses | -111,000 | 1,233,000 | 0 |
Charge-offs | -96,000 | -896,000 | 0 |
Recoveries | 0 | 0 | 0 |
Ending Balance | 130,000 | 337,000 | 0 |
Allowance individually evaluated for impairment | 0 | 0 | |
Allowance collectively evaluated for impairment | 130,000 | 337,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 434,000 | 1,463,000 | |
Loans individually evaluated for impairment | 21,000 | 117,000 | |
Loans collectively evaluated for impairment | 413,000 | 1,346,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Consumer Real Estate [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 2,810,000 | 2,240,000 | 3,139,000 |
Provision for Loan Losses | -159,000 | 3,014,000 | 3,748,000 |
Charge-offs | -839,000 | -2,586,000 | -4,767,000 |
Recoveries | 277,000 | 142,000 | 120,000 |
Ending Balance | 2,089,000 | 2,810,000 | 2,240,000 |
Allowance individually evaluated for impairment | 342,000 | 516,000 | |
Allowance collectively evaluated for impairment | 1,747,000 | 2,294,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 89,773,000 | 96,794,000 | |
Loans individually evaluated for impairment | 10,060,000 | 13,248,000 | |
Loans collectively evaluated for impairment | 79,713,000 | 83,546,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Home Equity Lines [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 424,000 | 658,000 | 860,000 |
Provision for Loan Losses | 506,000 | 23,000 | 669,000 |
Charge-offs | -476,000 | -266,000 | -884,000 |
Recoveries | 15,000 | 9,000 | 13,000 |
Ending Balance | 469,000 | 424,000 | 658,000 |
Allowance individually evaluated for impairment | 0 | 0 | |
Allowance collectively evaluated for impairment | 469,000 | 424,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 20,082,000 | 21,246,000 | |
Loans individually evaluated for impairment | 800,000 | 1,630,000 | |
Loans collectively evaluated for impairment | 19,282,000 | 19,616,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
First Deed of Trust [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 1,992,000 | 1,358,000 | 1,881,000 |
Provision for Loan Losses | -442,000 | 2,493,000 | 2,611,000 |
Charge-offs | -277,000 | -1,953,000 | -3,220,000 |
Recoveries | 72,000 | 94,000 | 86,000 |
Ending Balance | 1,345,000 | 1,992,000 | 1,358,000 |
Allowance individually evaluated for impairment | 200,000 | 484,000 | |
Allowance collectively evaluated for impairment | 1,145,000 | 1,508,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 61,837,000 | 66,873,000 | |
Loans individually evaluated for impairment | 7,900,000 | 10,361,000 | |
Loans collectively evaluated for impairment | 53,937,000 | 56,512,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Second Deed of Trust [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 394,000 | 224,000 | 398,000 |
Provision for Loan Losses | -223,000 | 498,000 | 468,000 |
Charge-offs | -86,000 | -367,000 | -663,000 |
Recoveries | 190,000 | 39,000 | 21,000 |
Ending Balance | 275,000 | 394,000 | 224,000 |
Allowance individually evaluated for impairment | 142,000 | 32,000 | |
Allowance collectively evaluated for impairment | 133,000 | 362,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 7,854,000 | 8,675,000 | |
Loans individually evaluated for impairment | 1,360,000 | 1,257,000 | |
Loans collectively evaluated for impairment | 6,494,000 | 7,418,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Student Loans [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Provision for Loan Losses | 217,000 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending Balance | 217,000 | 0 | |
Allowance individually evaluated for impairment | 0 | ||
Allowance collectively evaluated for impairment | 217,000 | ||
Total Loans | 33,562,000 | 0 | |
Loans individually evaluated for impairment | 0 | ||
Loans collectively evaluated for impairment | 33,562,000 | ||
Loans acquired with deteriorated credit quality | 0 | ||
Commercial and Industrial Loans (Except Those Secured by Real Estate) [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 724,000 | 1,162,000 | 1,656,000 |
Provision for Loan Losses | -447,000 | 145,000 | 1,231,000 |
Charge-offs | -172,000 | -760,000 | -1,880,000 |
Recoveries | 401,000 | 177,000 | 155,000 |
Ending Balance | 506,000 | 724,000 | 1,162,000 |
Allowance individually evaluated for impairment | 239,000 | 43,000 | |
Allowance collectively evaluated for impairment | 267,000 | 681,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 22,165,000 | 26,254,000 | |
Loans individually evaluated for impairment | 818,000 | 960,000 | |
Loans collectively evaluated for impairment | 21,347,000 | 25,294,000 | |
Loans acquired with deteriorated credit quality | 0 | 0 | |
Consumer and Other [Member] | |||
Activity in allowance for loan losses [Roll Forward] | |||
Beginning Balance | 70,000 | 101,000 | 321,000 |
Provision for Loan Losses | -37,000 | 25,000 | 181,000 |
Charge-offs | -25,000 | -65,000 | -408,000 |
Recoveries | 22,000 | 9,000 | 7,000 |
Ending Balance | 30,000 | 70,000 | 101,000 |
Allowance individually evaluated for impairment | 0 | 0 | |
Allowance collectively evaluated for impairment | 30,000 | 70,000 | |
Allowance for Loans acquired with deteriorated credit quality | 0 | 0 | |
Total Loans | 1,611,000 | 1,930,000 | |
Loans individually evaluated for impairment | 23,000 | 34,000 | |
Loans collectively evaluated for impairment | 1,588,000 | 1,896,000 | |
Loans acquired with deteriorated credit quality | $0 | $0 |
Premises_and_equipment_Details
Premises and equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property and equipment [Abstract] | |||
Total premises and equipment | $21,636,000 | $19,075,000 | |
Less: Accumulated depreciation and amortization | -7,335,000 | -6,666,000 | |
Premises and equipment, net | 14,301,000 | 12,409,000 | |
Depreciation and amortization | 681,000 | 1,311,000 | 1,366,000 |
Land [Member] | |||
Property and equipment [Abstract] | |||
Total premises and equipment | 4,930,000 | 3,803,000 | |
Building and Improvements [Member] | |||
Property and equipment [Abstract] | |||
Total premises and equipment | 9,311,000 | 6,500,000 | |
Furniture, Fixtures and Equipments [Member] | |||
Property and equipment [Abstract] | |||
Total premises and equipment | $7,395,000 | $8,772,000 |
Investment_in_bank_owned_life_1
Investment in bank owned life insurance (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Investment in bank owned life insurance [Abstract] | ||
Bank owned life insurance, face amount | $14,246,000 | |
Cash surrender value | $6,947,000 | $6,765,000 |
Deposits_Details
Deposits (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of deposits [Abstract] | ||
Demand accounts | $77,496,000 | $57,244,000 |
Interest checking accounts | 42,924,000 | 43,691,000 |
Money market accounts | 64,987,000 | 63,357,000 |
Savings accounts | 20,643,000 | 20,229,000 |
Time deposits of $100,000 and over | 75,559,000 | 94,245,000 |
Other time deposits | 97,251,000 | 111,862,000 |
Total deposits | 378,860,000 | 390,628,000 |
Time deposit fiscal year maturity [Abstract] | ||
2015 | 75,389,000 | |
2016 | 56,887,000 | |
2017 | 19,229,000 | |
2018 | 8,889,000 | |
2019 | 12,416,000 | |
Time Deposits | 172,810,000 | |
Deposit held by officer and directors (in hundredths) | 5.00% | |
Deposit held by related party | 7,305,000 | 8,481,000 |
Less Than $100,000 [Member] | ||
Time deposit fiscal year maturity [Abstract] | ||
2015 | 41,779,000 | |
2016 | 30,437,000 | |
2017 | 10,959,000 | |
2018 | 6,031,000 | |
2019 | 8,045,000 | |
Time Deposits | 97,251,000 | |
Greater than or Equal to $100,000 [Member] | ||
Time deposit fiscal year maturity [Abstract] | ||
2015 | 33,610,000 | |
2016 | 26,450,000 | |
2017 | 8,270,000 | |
2018 | 2,858,000 | |
2019 | 4,371,000 | |
Time Deposits | $75,559,000 |
Borrowings_Details
Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Borrowings [Abstract] | ||
Federal Home Loan Bank stock | $1,073,000 | $1,417,000 |
Federal Home Loan Bank advances | 14,000,000 | 18,000,000 |
Federal Home Loan Bank, advances, branch of FHLB bank, due date | 2018 | |
Contractual maturities of the advances [Abstract] | ||
Due in 2015 | 8,000,000 | |
Due in 2016 | 3,600,000 | |
Due in 2017 | 1,600,000 | |
Due in 2018 | 800,000 | |
FHLB advances | 14,000,000 | |
Short-term Debt [Line Items] | ||
Carrying value of repurchase agreements | 3,302,000 | 2,713,000 |
Federal Home Loan Banks advances [Member] | ||
Debt Instrument [Line Items] | ||
Maximum outstanding during the year FHLB advances | 18,000,000 | 28,000,000 |
Balance outstanding at end of year FHLB advances | 14,000,000 | 18,000,000 |
Average amount outstanding during the year FHLB advances | $15,468,000 | $23,433,000 |
Average interest rate during the year FHLB advances (in hundredths) | 2.16% | 2.19% |
Average interest rate at end of year FHLB advances (in hundredths) | 2.07% | 2.31% |
Minimum [Member] | ||
Short-term Debt [Line Items] | ||
Securities sold under arrangement maturity period | 1 day | |
Maximum [Member] | ||
Short-term Debt [Line Items] | ||
Securities sold under arrangement maturity period | 4 days |
Income_taxes_Details
Income taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred tax assets [Abstract] | |||
Net operating loss carryforward | $8,017,000 | $5,316,000 | |
Allowance for loan losses | 1,948,000 | 2,461,000 | |
Unrealized loss on available-for-sale securities | 332,000 | 1,933,000 | |
Interest on nonaccrual loans | 76,000 | 913,000 | |
Expenses and writedowns related to foreclosed property | 1,095,000 | 2,225,000 | |
Merger stock options replacement | 90,000 | 90,000 | |
Stock compensation | 45,000 | 3,000 | |
Employee benefits | 954,000 | 845,000 | |
Pension expense | 40,000 | 44,000 | |
Depreciation | 0 | 46,000 | |
Other, net | 32,000 | 70,000 | |
Goodwill | 55,000 | 27,000 | |
Total deferred tax assets | 12,684,000 | 13,973,000 | |
Deferred tax liabilities [Abstract] | |||
Depreciation | 12,000 | 0 | |
Amortization of intangibles | 67,000 | 100,000 | |
Total deferred tax liabilities | 79,000 | 100,000 | |
Net deferred tax asset prior to valuation allowance | 12,606,000 | 13,873,000 | |
Less Unrealized gain/(loss) on available-for-sale securities | -332,000 | -1,933,000 | |
Net deferred tax asset subject to valuation allowance | 12,274,000 | 11,940,000 | |
Less valuation allowance | 12,274,000 | 11,940,000 | |
Net deferred tax asset | 331,000 | 1,933,000 | |
Net operating losses available to offset future taxable income | 23,580,000 | ||
Expiration period | 31-Dec-28 | ||
Operating loss carryforwards subject to a limitation by IRS | 1,257,000 | ||
Operating loss carryforwards subject to limitation by IRS per year | 908,000 | ||
Income tax expense (benefit) charged to operations [Abstract] | |||
Current tax expense (benefit) | 67,000 | 71,000 | 0 |
Deferred tax expense (benefit) | -401,000 | -1,852,000 | -2,174,000 |
Valuation allowance | 334,000 | 1,781,000 | 6,229,000 |
Provision (benefit) for income taxes | 0 | 0 | 4,055,000 |
Reconciliation of income taxes computed at the federal statutory income tax rate to total income taxes [Abstract] | |||
Net income (loss) before income taxes | -1,037,000 | -4,007,000 | -6,344,000 |
Computed "expected" tax benefit | -352,000 | -1,362,000 | -2,157,000 |
Valuation allowance change | 334,000 | 1,781,000 | 6,229,000 |
State taxes, net of fed | 44,000 | 46,000 | 0 |
Cash surrender value of life insurance | -62,000 | -64,000 | -65,000 |
Other | 36,000 | -401,000 | 48,000 |
Provision (benefit) for income taxes | 0 | 0 | 4,055,000 |
Franchise tax expense | $0 | $0 | $163,000 |
Earnings_loss_per_share_Detail
Earnings (loss) per share (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator [Abstract] | |||
Net loss - basic and diluted | ($1,037) | ($4,007) | ($10,399) |
Preferred stock dividend and accretion | 1,436 | 886 | 879 |
Net loss available to common shareholders | ($2,473) | ($4,893) | ($11,278) |
Denominator [Abstract] | |||
Weighted average shares outstanding - basic (in shares) | 334,000 | 271,000 | 266,000 |
Dilutive effect of common stock options and restricted stock awards (in shares) | 0 | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 334,000 | 271,000 | 266,000 |
Loss per share - basic and diluted (in dollars per share) | ($7.39) | ($18.06) | ($42.40) |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 6,830 | 5,338 | 16,008 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 14,642 | 320 | 644 |
Lease_commitments_Details
Lease commitments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Lease commitments [Abstract] | |||
Rent expense charged to operation | $439,000 | $446,000 | $367,000 |
Future minimum operating leases payments due [Abstract] | |||
2015 | 434,000 | ||
2016 | 196,000 | ||
2017 | 154,000 | ||
2018 | 158,000 | ||
2019 | 126,000 | ||
Thereafter | $1,068,000 |
Commitments_and_contingencies_1
Commitments and contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $48,842,000 | $50,247,000 |
Tier one risk based capital requirement (in hundredths) | 8.00% | |
Risk based capital to total risk weighted assets (in hundredths) | 11.00% | |
Policy for charge-offs | The Order requires the Bank to eliminate from its books, by charge-off or collection, all assets or portions of assets classified "Loss" and 50 percent of those classified "Doubtful". | |
Percentage of assets classified "Doubtful" required to be eliminated from books per Consent Order (in hundredths) | 50.00% | |
Number of days required to notify Supervisory Authorities prior to undertaking asset growth | 60 days | |
Percentage of asset growth (in hundredths) | 10.00% | |
Prevailing effective yields on insured deposits (in hundredths) | 0.75% | |
Asset reduction plan | 250,000 | |
Undisbursed Credit Lines [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 38,064,000 | 37,474,000 |
Commitments to Extend or Originate Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 9,207,000 | 10,581,000 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $1,571,000 | $2,192,000 |
Stockholders_equity_and_regula2
Stockholders' equity and regulatory matters (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2013 | 1-May-09 | |||
Payment | |||||||
Class of Stock [Line Items] | |||||||
Shares of Series A preferred stocks sold (in shares) | 14,738 | 14,738 | 14,738 | ||||
Preferred stock, par value (in dollars per share) | $4 | $4 | $4 | ||||
Liquidation preference (in dollars per share) | $1,000 | $1,000 | $1,000 | ||||
Number of securities called by warrant (in shares) | 499,029 | ||||||
Common stocks purchased at initial exercise price per share subject to certain dilution (in dollars per share) | $4.43 | ||||||
Aggregate purchase price | $14,738,000 | ||||||
Fair value of preferred stock estimated using discounted cash flow methodology (in hundredths) | 13.00% | ||||||
Discounted cash flow methodology, number of payments | 20 | ||||||
Discount cash flow methodology, term | 5 years | ||||||
Fair value assumptions, volatility rate (in hundredths) | 25.00% | ||||||
Fair value assumptions, risk-free rate (in hundredths) | 2.03% | ||||||
Fair value assumption, yield (in hundredths) | 6.16% | ||||||
Fair value assumption, estimated life | 5 years | ||||||
Preference stock issued during period value new issues allocated to preferred stock | 14,006,000 | ||||||
Preference stock issued during period value new issues allocated to common stock warrant | 732,000 | ||||||
Accretion amortization of discounts period | 5 years | ||||||
Cumulative dividend rate per annum for first five years (in hundredths) | 5.00% | ||||||
Cumulative dividend rate per annum (in hundredths) | 9.00% | ||||||
Warrants expiration period | 10 years | ||||||
Quarterly cash dividend deferred | 184,225 | ||||||
Aggregate dividend on preferred stock | 3,618,000 | ||||||
Minimum leverage ratio to be maintained as per consent order (in hundredths) | 8.00% | ||||||
Minimum capital to risk weighted assets ratio to be maintained as per consent order (in hundredths) | 11.00% | ||||||
Reverse stock split ratio | 16 | ||||||
Fair value stock | 10,742,000 | ||||||
Common stock issued (in shares) | 350,622 | 333,644 | |||||
Total capital (to risk-weighted assets), Amount [Abstract] | |||||||
Actual Amount | 31,946,000 | 34,652,000 | |||||
For Capital Adequacy Purposes | 22,875,000 | 25,997,000 | |||||
To be Well Capitalized Amount | 28,594,000 | [1] | 32,496,000 | [1] | |||
Total capital (to risk-weighted assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 11.17% | 10.66% | |||||
For Capital Adequacy Purposes (in hundredths) | 8.00% | 8.00% | |||||
To be Well Capitalized (in hundredths) | 10.00% | [1] | 10.00% | [1] | |||
Tier 1 capital (to risk-capital to average assets), Amount [Abstract] | |||||||
Actual Amount | 21,037,000 | 24,027,000 | |||||
For Capital Adequacy Purposes | 11,437,000 | 12,999,000 | |||||
To be Well Capitalized Amount | 17,156,000 | [1] | 19,498,000 | [1] | |||
Tier 1 capital (to risk-capital to average assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 7.36% | 7.39% | |||||
For Capital Adequacy Purposes (in hundredths) | 4.00% | 4.00% | |||||
To be Well Capitalized (in hundredths) | 6.00% | [1] | 6.00% | [1] | |||
Leverage ratio (Tier 1 capital to average assets), Amount [Abstract] | |||||||
Actual Amount | 21,037,000 | 24,027,000 | |||||
For Capital Adequacy Purposes | 17,170,000 | 18,069,000 | |||||
To be Well Capitalized Amount | 21,463,000 | [1] | 22,587,000 | [1] | |||
Leverage ratio (Tier 1 capital to average assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 4.90% | 5.32% | |||||
For Capital Adequacy Purposes (in hundredths) | 4.00% | 4.00% | |||||
To be Well Capitalized (in hundredths) | 5.00% | [1] | 5.00% | [1] | |||
Village Bank [Member] | |||||||
Total capital (to risk-weighted assets), Amount [Abstract] | |||||||
Actual Amount | 34,253,000 | 35,192,000 | |||||
For Capital Adequacy Purposes | 22,686,000 | 25,828,000 | |||||
To be Well Capitalized Amount | 28,358,000 | [1] | 32,285,000 | [1] | |||
Total capital (to risk-weighted assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 12.08% | 10.90% | |||||
For Capital Adequacy Purposes (in hundredths) | 8.00% | 8.00% | |||||
To be Well Capitalized (in hundredths) | 10.00% | [1] | 10.00% | [1] | |||
Tier 1 capital (to risk-capital to average assets), Amount [Abstract] | |||||||
Actual Amount | 30,681,000 | 31,117,000 | |||||
For Capital Adequacy Purposes | 11,343,000 | 12,914,000 | |||||
To be Well Capitalized Amount | 17,015,000 | [1] | 19,371,000 | [1] | |||
Tier 1 capital (to risk-capital to average assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 10.82% | 9.64% | |||||
For Capital Adequacy Purposes (in hundredths) | 4.00% | 4.00% | |||||
To be Well Capitalized (in hundredths) | 6.00% | [1] | 6.00% | [1] | |||
Leverage ratio (Tier 1 capital to average assets), Amount [Abstract] | |||||||
Actual Amount | 30,681,000 | ||||||
For Capital Adequacy Purposes | 17,084,000 | ||||||
To be Well Capitalized Amount | 21,355,000 | [1] | |||||
Leverage ratio (Tier 1 capital to average assets), Ratio [Abstract] | |||||||
Actual Ratio (in hundredths) | 7.18% | ||||||
For Capital Adequacy Purposes (in hundredths) | 4.00% | ||||||
To be Well Capitalized (in hundredths) | 5.00% | [1] | |||||
Directors and Executive Officers [Member] | |||||||
Class of Stock [Line Items] | |||||||
Proceeds from issuance of private placement | 1,684,075 | ||||||
Common shares sale price (in dollars per share) | $24.80 | ||||||
Percentage of premium over closing price (in hundredths) | 30.00% | ||||||
Common stock issued (in shares) | 67,907 | ||||||
Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Fair value stock | 10,208,000 | ||||||
Aggregate fair value attributable percentage (in hundredths) | 95.00% | ||||||
Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Fair value stock | $534,000 | ||||||
Common Stock Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Aggregate fair value attributable percentage (in hundredths) | 5.00% | ||||||
[1] | As a result of the Consent Order, the Bank is not considered well capitalized even though it meets the ratio requirements to be classified as such. The Consent Order requires the total capital to risk-weighted assets to be at least 11% and the leverage ratio to be at least 8% |
Stock_incentive_plan_Details
Stock incentive plan (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Mar. 31, 2014 | |
Schedule of fair value of option granted estimated on grant date using the Black-Sholes option pricing model [Abstract] | |||||
Stock-based compensation expense | $131,000 | $11,000 | $7,000 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Outstanding Number of Options (in shares) | 6,830 | ||||
Outstanding Weighted Average Remaining Years of Contractual Life | 3 years 1 month 28 days | ||||
Outstanding Weighted Average Exercise Price (in dollars per share) | $92.34 | ||||
Exercisable Number of Options (in shares) | 5,318 | ||||
Exercisable Weighted Average Exercise Price (in dollars per share) | $111.90 | ||||
$16.00-$75.28 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Prices, lower range (in dollars per share) | $16 | ||||
Range of Exercise Prices, upper range (in dollars per share) | $75.28 | ||||
Outstanding Number of Options (in shares) | 2,929 | ||||
Outstanding Weighted Average Remaining Years of Contractual Life | 6 years 3 months 18 days | ||||
Outstanding Weighted Average Exercise Price (in dollars per share) | $24.47 | ||||
Exercisable Number of Options (in shares) | 1,417 | ||||
Exercisable Weighted Average Exercise Price (in dollars per share) | $25.46 | ||||
$140 - $200 [Member] | |||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||||
Range of Exercise Prices, lower range (in dollars per share) | $140 | ||||
Range of Exercise Prices, upper range (in dollars per share) | $200 | ||||
Outstanding Number of Options (in shares) | 3,901 | ||||
Outstanding Weighted Average Remaining Years of Contractual Life | 0 years 9 months 18 days | ||||
Outstanding Weighted Average Exercise Price (in dollars per share) | $143.30 | ||||
Exercisable Number of Options (in shares) | 3,901 | ||||
Exercisable Weighted Average Exercise Price (in dollars per share) | $143.30 | ||||
Stock Options [Member] | |||||
Options [Roll Forward] | |||||
Options outstanding, beginning of period (in shares) | 6,210 | 15,977 | 16,561 | 6,210 | |
Granted (in shares) | 884 | 1,760 | 313 | ||
Forfeited (in shares) | -264 | -11,527 | -897 | ||
Exercised (in shares) | 0 | 0 | 0 | ||
Options outstanding, end of period (in shares) | 6,830 | 6,210 | 15,977 | ||
Options exercisable, end of period (in shares) | 5,318 | 4,647 | 15,664 | ||
Weighted Average Exercise Price [Roll Forward] | |||||
Options outstanding, beginning of period (in dollars per share) | $99.03 | $155.36 | $151.68 | $99.03 | |
Granted (in dollars per share) | $25.28 | $25.28 | $16 | ||
Forfeited (in dollars per share) | $25.28 | $123.20 | $128.32 | ||
Exercised (in dollars per share) | $0 | $0 | $0 | ||
Options outstanding, end of period (in dollars per share) | $92.34 | $99.03 | $155.36 | ||
Options outstanding, Fair Value Per Share [Abstract] | |||||
Options outstanding, beginning of period (in dollars per share) | $64.96 | $74.40 | $75.20 | $64.96 | |
Granted (in dollars per share) | $15.52 | $9.76 | $17.28 | ||
Forfeited (in dollars per share) | $80.33 | $79.84 | $69.44 | ||
Exercised (in dollars per share) | $0 | $0 | $0 | ||
Options outstanding, end of period (in dollars per share) | $57.97 | $64.96 | $74.40 | ||
Options outstanding, end of period, Intrinsic Value | 0 | 0 | 0 | ||
Schedule of fair value of option granted estimated on grant date using the Black-Sholes option pricing model [Abstract] | |||||
Risk-free interest rate (in hundredths) | 2.57% | ||||
Dividend yield (in hundredths) | 0.00% | ||||
Expected weighted average term | 7 years | ||||
Volatility (in hundredths) | 50.00% | ||||
Restricted Stock [Member] | |||||
Schedule of fair value of option granted estimated on grant date using the Black-Sholes option pricing model [Abstract] | |||||
Number of shares of common stocks issued at grant date (in shares) | 1,625 | 6,278 | 4,423 | ||
Weighted average fair market value at date of grant (in dollars per share) | $27.69 | $27.04 | $21.28 | ||
Vesting period | 3 years | ||||
Non-vested restricted stock and performance award (in shares) | 11,767 | ||||
Unamortized stock-based compensation related to non-vested share based compensation arrangements | $329,000 | $88,000 | |||
Weighed average period of recognition for time based unamortized compensation | 2 years 3 months 14 days | ||||
Number of stock award forfeited during period (in shares) | 0 | 0 |
Trust_preferred_securities_Det
Trust preferred securities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||
Trust preferred capital notes | $8,764,000 | $8,764,000 |
Percentage of Tier one risk based capital required for capital adequacy (in hundredths) | 25.00% | |
Deferred interest payments on the junior subordinated debt securities | 1,167,000 | 1,093,000 |
Southern Community Financial Capital Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, issuance Date | 24-Feb-05 | |
Trust preferred capital notes | 5,200,000 | |
Debt Instrument, description of variable rate basis | three-month LIBOR plus 2.15% | |
Debt Instrument, variable rate basis (in hundredths) | 2.15% | |
Interest rate (in hundredths) | 2.40% | 2.39% |
Maturity date | 15-Mar-35 | |
Principal assets of trust | 5,200,000 | |
Village Financial Statutory Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, issuance Date | 20-Sep-07 | |
Trust preferred capital notes | 3,600,000 | |
Debt Instrument, description of variable rate basis | three-month LIBOR plus 1.4% | |
Debt Instrument, variable rate basis (in hundredths) | 1.40% | |
Interest rate (in hundredths) | 1.65% | |
Maturity date | 31-Dec-37 | |
Principal assets of trust | 3,600,000 | |
Trust Preferred Securities [Member] | ||
Debt Instrument [Line Items] | ||
Deferred interest payments on the junior subordinated debt securities | $1,061,000 |
Retirement_plans_Details
Retirement plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum duration of employment for eligibility to participate in the plan | 3 months | ||
Retirement plan maximum annual contribution per employee | $0.50 | ||
Retirement plan employee contribution | 1 | ||
Retirement plan employer matching contribution percent (in hundredths) | 4.00% | ||
Retirement plan vesting period | 3 years | ||
Total contributions to the plan | 150,000 | 165,000 | |
Cash surrender value of BOLI | 182,000 | 189,000 | 510,000 |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan participant approval period | 60 days | ||
Number of executive officers participate in plan | 7 | ||
Retire plan minimum service requisite term | 10 years | ||
Retire plan minimum service requisite term in case of one participant | 6 years | ||
Liabilities under retirement plan | 1,840,000 | 1,655,000 | |
Retirement plan recognized expense | 257,000 | 462,000 | 141,000 |
Cash surrender value of BOLI | 183,000 | 189,000 | 191,000 |
Directors' Deferral Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities under retirement plan | 206,000 | 83,000 | |
Retirement plan recognized expense | 123,000 | 165,000 | 181,000 |
Common stock held in rabbi trust | $877,644 | ||
Common Stock, Shares Held in Employee Trust, Shares | 35,389 |
Fair_Value_Details
Fair Value (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value [Member] | Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $30,028 | $42,679 |
Real estate owned | 12,168 | 15,405 |
Carrying Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,263 | 4,253 |
Real estate owned | 470 | 1,337 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Treasuries | 0 | |
US Government Agencies | 0 | 0 |
MBS | 0 | 0 |
Municipals | 0 | 0 |
Residential loans held for sale | 0 | 0 |
Recurring [Member] | Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Treasuries | 7,210 | |
US Government Agencies | 33,348 | 34,351 |
MBS | 484 | 2,752 |
Municipals | 5,711 | 13,435 |
Residential loans held for sale | 9,914 | 8,371 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Treasuries | 0 | |
US Government Agencies | 0 | 0 |
MBS | 0 | 0 |
Municipals | 0 | 0 |
Residential loans held for sale | 0 | 0 |
Recurring [Member] | Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
US Treasuries | 7,210 | |
US Government Agencies | 33,348 | 34,351 |
MBS | 484 | 2,752 |
Municipals | 5,711 | 13,435 |
Residential loans held for sale | 9,914 | 8,371 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Real estate owned | 0 | 0 |
Nonrecurring [Member] | Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 30,028 | 42,679 |
Real estate owned | 12,168 | 15,405 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,252 | 4,253 |
Real estate owned | 470 | 1,337 |
Nonrecurring [Member] | Carrying Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 32,280 | 46,932 |
Real estate owned | $12,638 | $16,742 |
Fair_value_Assets_Measured_on_
Fair value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | $5,590 | $9,288 |
Total realized and unrealized gains (losses) Included in earnings | -381 | 241 |
Included in other comprehensive income | 0 | 0 |
Net transfers in and/or out of Level 3 | -2,476 | -3,939 |
Balance at end of period | 2,733 | 5,590 |
Impaired Loans [Member] | ||
Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | 4,253 | 7,759 |
Total realized and unrealized gains (losses) Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Net transfers in and/or out of Level 3 | -1,990 | -3,506 |
Balance at end of period | 2,263 | 4,253 |
Real Estate Owned [Member] | ||
Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of year | 1,337 | 1,529 |
Total realized and unrealized gains (losses) Included in earnings | -381 | 241 |
Included in other comprehensive income | 0 | 0 |
Net transfers in and/or out of Level 3 | -486 | -433 |
Balance at end of period | $470 | $1,337 |
Fair_Value_Financial_Instrumen
Fair Value, Financial Instruments Summary (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets [Abstract] | ||
Investment securities available for sale | $39,542 | $57,748 |
Carrying Value [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash | 25,115 | 15,221 |
Carrying Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 23,988 | 24,988 |
Investment securities available for sale | 39,542 | 57,748 |
Federal Home Loan Bank stock | 1,073 | 1,417 |
Loans held for sale | 9,914 | 8,371 |
Loans | 253,855 | 233,075 |
Impaired loans | 30,028 | 42,679 |
Other real estate owned | 12,168 | 15,405 |
Accrued interest receivable | 1,372 | 1,486 |
Financial liabilities [Abstract] | ||
Deposits | 378,860 | 390,628 |
FHLB borrowings | 14,000 | 18,000 |
Trust preferred securities | 8,764 | 8,764 |
Other borrowings | 3,302 | 2,713 |
Accrued interest payable | 1,167 | 1,093 |
Carrying Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Impaired loans | 2,263 | 4,253 |
Other real estate owned | 470 | 1,337 |
Bank owned life insurance | 6,947 | 6,764 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash | 25,115 | 15,221 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash equivalents | 23,988 | 24,988 |
Investment securities available for sale | 39,542 | 57,748 |
Federal Home Loan Bank stock | 1,073 | 1,417 |
Loans held for sale | 9,914 | 8,371 |
Loans | 249,942 | 236,582 |
Impaired loans | 30,028 | 42,679 |
Other real estate owned | 12,168 | 15,405 |
Accrued interest receivable | 1,372 | 1,486 |
Financial liabilities [Abstract] | ||
Deposits | 379,857 | 391,814 |
FHLB borrowings | 14,065 | 18,212 |
Trust preferred securities | 7,274 | 7,274 |
Other borrowings | 3,303 | 3,289 |
Accrued interest payable | 1,167 | 1,093 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Financial assets [Abstract] | ||
Impaired loans | 2,263 | 4,253 |
Other real estate owned | 470 | 1,337 |
Bank owned life insurance | $6,947 | $6,765 |
Parent_corporation_only_financ2
Parent corporation only financial statements (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assets [Abstract] | ||||
Cash and due from banks | $25,115,000 | $15,221,000 | ||
Total assets | 434,004,000 | 444,173,000 | ||
Liabilities [Abstract] | ||||
Other liabilities | 8,853,000 | 4,731,000 | ||
Total liabilities | 414,946,000 | 425,929,000 | ||
Shareholders' equity [Abstract] | ||||
Preferred stock | 59,000 | 59,000 | ||
Discount on preferred stock | 0 | -50,000 | ||
Additional paid-in capital including surplus of PS (CPP) | 58,188,000 | 58,072,000 | ||
Common stock | 1,339,000 | 1,335,000 | ||
Retained earnings (deficit) | -40,539,000 | -38,066,000 | ||
Accumulated other comprehensive loss | -721,000 | -3,838,000 | ||
Total shareholders' equity | 19,058,000 | 18,244,000 | 24,965,000 | 36,247,000 |
Total liabilities and shareholders' equity | 434,004,000 | 444,173,000 | ||
Interest expense [Abstract] | ||||
Total interest expense | 3,560,000 | 4,425,000 | 5,997,000 | |
Net interest income | 13,018,000 | 15,189,000 | 17,702,000 | |
Expenses [Abstract] | ||||
Equipment | 708,000 | 715,000 | 807,000 | |
Supplies | 344,000 | 436,000 | 431,000 | |
Other | 2,169,000 | 2,356,000 | 2,643,000 | |
Total noninterest expense | 21,844,000 | 30,278,000 | 28,290,000 | |
Net loss before income tax benefit | -1,037,000 | -4,007,000 | -6,344,000 | |
Income tax benefit | 0 | 0 | 4,055,000 | |
Net loss | -1,037,000 | -4,007,000 | -10,399,000 | |
Total comprehensive Income (loss) | 2,080,000 | -7,679,000 | -10,558,000 | |
Cash Flows from Operating Activities [Abstract] | ||||
Net loss | -1,037,000 | -4,007,000 | -10,399,000 | |
Adjustments to reconcile net income to net cash used in by operating activities | ||||
Depreciation and amortization | 681,000 | 1,311,000 | 1,366,000 | |
(Increase) decrease in other assets | -138,000 | 1,110,000 | 3,491,000 | |
Increase (decrease) in other liabilities | 2,736,000 | -2,279,000 | -1,510,000 | |
Net cash provided by (used in) operating activities | 2,252,000 | 18,159,000 | -1,552,000 | |
Cash Flows from Investing Activities [Abstract] | ||||
Net cash provided by investing activities | 21,832,000 | 25,068,000 | 51,772,000 | |
Cash Flows from Financing Activities [Abstract] | ||||
Proceeds from issuance of common stock | -11,000 | 1,684,000 | 0 | |
Net cash used in financing activities | -15,190,000 | -56,149,000 | -59,875,000 | |
Net increase (decrease) in cash and cash equivalents | 8,894,000 | -12,922,000 | -9,655,000 | |
Cash and cash equivalents, beginning of period | 40,209,000 | 53,131,000 | 62,786,000 | |
Cash and cash equivalents, end of period | 49,103,000 | 40,209,000 | 53,131,000 | |
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash and due from banks | 84,000 | 460,000 | ||
Investment in subsidiaries | 30,158,000 | 27,574,000 | ||
Investment in special purpose subsidiary | 264,000 | 264,000 | ||
Prepaid expenses and other assets | 2,062,000 | 1,823,000 | ||
Total assets | 32,568,000 | 30,121,000 | ||
Liabilities [Abstract] | ||||
Balance due to nonbank subsidiaries | 8,764,000 | 8,764,000 | ||
Other liabilities | 4,746,000 | 3,113,000 | ||
Total liabilities | 13,510,000 | 11,877,000 | ||
Shareholders' equity [Abstract] | ||||
Preferred stock | 59,000 | 59,000 | ||
Warrant surplus | 732,000 | 732,000 | ||
Discount on preferred stock | 0 | -50,000 | ||
Preferred stock after adjustments | 791,000 | 741,000 | ||
Surplus related to preferred stock (CPP) | 14,679,000 | 14,679,000 | ||
Additional paid-in capital | 43,509,000 | 23,375,000 | ||
Additional paid-in capital including surplus of PS (CPP) | 58,188,000 | 38,054,000 | ||
Common stock | 1,339,000 | 21,353,000 | ||
Retained earnings (deficit) | -40,539,000 | -38,066,000 | ||
Stock in directors rabbi trust | -878,000 | 878,000 | ||
Directors deferred fees obligation | 878,000 | 878,000 | ||
Accumulated other comprehensive loss | -721,000 | -3,838,000 | ||
Total shareholders' equity | 19,058,000 | 18,244,000 | ||
Total liabilities and shareholders' equity | 32,568,000 | 30,121,000 | ||
Interest income [Abstract] | ||||
Village Bank money market | 1,000 | 3,000 | 8,000 | |
Interest expense [Abstract] | ||||
Interest on note TARP | 0 | 55,000 | 58,000 | |
Interest on trust preferred securities | 215,000 | 183,000 | 346,000 | |
Total interest expense | 215,000 | 238,000 | 404,000 | |
Net interest income | -214,000 | -235,000 | -396,000 | |
Expenses [Abstract] | ||||
Equipment | 0 | 2,000 | 7,000 | |
Supplies | 54,000 | 57,000 | 50,000 | |
Legal | 0 | 7,000 | 0 | |
Other outside services | 53,000 | 47,000 | 20,000 | |
Other | 52,000 | 33,000 | 25,000 | |
Total noninterest expense | 159,000 | 146,000 | 102,000 | |
Net loss before undistributed loss of subsidiary | -373,000 | -381,000 | -498,000 | |
Undistributed loss of subsidiary | -664,000 | -3,626,000 | -8,489,000 | |
Net loss before income tax benefit | -1,037,000 | -4,007,000 | -8,987,000 | |
Income tax benefit | 0 | 0 | 1,412,000 | |
Net loss | -1,037,000 | -4,007,000 | -10,399,000 | |
Total comprehensive Income (loss) | 2,080,000 | -7,679,000 | -10,558,000 | |
Cash Flows from Operating Activities [Abstract] | ||||
Net loss | -1,037,000 | -4,007,000 | -10,399,000 | |
Adjustments to reconcile net income to net cash used in by operating activities | ||||
Depreciation and amortization | 0 | 2,000 | 9,000 | |
Undistributed loss of subsidiary | 664,000 | 3,626,000 | 8,489,000 | |
(Increase) decrease in other assets | -239,000 | -8,000 | 5,015,000 | |
Increase (decrease) in other liabilities | 247,000 | 252,000 | -3,200,000 | |
Net cash provided by (used in) operating activities | -365,000 | -135,000 | -86,000 | |
Cash Flows from Investing Activities [Abstract] | ||||
Payments for investments in and advances to subsidiaries | 0 | -1,684,000 | -1,500,000 | |
Net cash provided by investing activities | 0 | -1,684,000 | -1,500,000 | |
Cash Flows from Financing Activities [Abstract] | ||||
Proceeds from issuance of common stock | -11,000 | 1,684,000 | 0 | |
Net cash used in financing activities | -11,000 | 1,684,000 | 0 | |
Net increase (decrease) in cash and cash equivalents | -376,000 | -135,000 | -1,586,000 | |
Cash and cash equivalents, beginning of period | 460,000 | 595,000 | 2,181,000 | |
Cash and cash equivalents, end of period | $84,000 | $460,000 | $595,000 |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | |
Feb. 10, 2015 | 1-May-09 | |
Subsequent Event [Line Items] | ||
Number of securities called by subscription rights (in shares) | 499,029 | |
Subscription price (in dollars per share) | $4.43 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of securities called by subscription rights (in shares) | 1,051,866 | |
Number of subscription rights given to each shareholder | 1 | |
Number of shares called by each subscription right (in shares) | 3 | |
Subscription price (in dollars per share) | $13.87 | |
Gross proceeds of offering if fully subscribed | $14,589,000 |