Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 05, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Southern National Bancorp of Virginia Inc | ||
Entity Central Index Key | 1325670 | ||
Trading Symbol | sona | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 12,217,770 | ||
Entity Public Float | $116,704,383 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ||
Cash and due from financial institutions | $5,702 | $2,679 |
Interest-bearing deposits in other financial institutions | 32,618 | 18,177 |
Total cash and cash equivalents | 38,320 | 20,856 |
Securities available for sale, at fair value | 2,285 | 1,993 |
Securities held to maturity, at amortized cost (fair value of $94,093 and $76,193, respectively) | 94,058 | 82,443 |
Total loans | 703,472 | 546,058 |
Less allowance for loan losses | -7,414 | -7,090 |
Net loans | 696,058 | 538,968 |
Stock in Federal Reserve Bank and Federal Home Loan Bank | 5,681 | 5,915 |
Equity investment in mortgage affiliate | 3,631 | |
Preferred investment in mortgage affiliate | 1,805 | |
Bank premises and equipment, net | 9,453 | 6,324 |
Goodwill | 10,514 | 9,160 |
Core deposit intangibles, net | 1,354 | 813 |
FDIC indemnification asset | 3,571 | 5,804 |
Bank-owned life insurance | 20,990 | 18,374 |
Other real estate owned | 13,051 | 11,792 |
Deferred tax assets, net | 10,083 | 8,281 |
Other assets | 5,791 | 5,462 |
Total assets | 916,645 | 716,185 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Noninterest-bearing demand deposits | 69,560 | 44,643 |
Interest-bearing deposits: | ||
NOW accounts | 25,018 | 24,297 |
Money market accounts | 137,297 | 130,855 |
Savings accounts | 44,155 | 16,999 |
Time deposits | 466,395 | 323,565 |
Total interest-bearing deposits | 672,865 | 495,716 |
Total deposits | 742,425 | 540,359 |
Securities sold under agreements to repurchase and other short-term borrowings | 29,044 | 39,795 |
Federal Home Loan Bank (FHLB) advances | 25,000 | 25,000 |
Other liabilities | 6,197 | 4,417 |
Total liabilities | 802,666 | 609,571 |
Commitments and contingencies (see note 14) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value. Authorized 5,000,000 shares; no shares issued and outstanding | ||
Common stock, $.01 par value. Authorized 45,000,000 shares; issued and outstanding, 12,216,669 and 11,590,612 shares at December 31, 2014 and December 31, 2013, respectively | 122 | 116 |
Additional paid in capital | 104,072 | 97,127 |
Retained earnings | 12,805 | 12,561 |
Accumulated other comprehensive loss | -3,020 | -3,190 |
Total stockholders' equity | 113,979 | 106,614 |
Total liabilities and stockholders' equity | 916,645 | 716,185 |
Covered loans | ||
Cash and cash equivalents: | ||
Total loans | 38,496 | 51,701 |
Non-covered loans | ||
Cash and cash equivalents: | ||
Total loans | $664,976 | $494,357 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Securities held to maturity fair value (in dollars) | $94,093 | $76,193 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 12,216,669 | 11,590,612 |
Common stock, shares outstanding | 12,216,669 | 11,590,612 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and dividend income: | |||
Interest and fees on loans | $34,611 | $32,269 | $35,246 |
Interest and dividends on taxable securities | 2,239 | 2,035 | 1,940 |
Interest and dividends on tax exempt securities | 389 | 237 | 16 |
Interest and dividends on other earning assets | 852 | 575 | 359 |
Total interest and dividend income | 38,091 | 35,116 | 37,561 |
Interest expense: | |||
Interest on deposits | 3,976 | 4,047 | 5,036 |
Interest on borrowings | 697 | 621 | 792 |
Total interest expense | 4,673 | 4,668 | 5,828 |
Net interest income | 33,418 | 30,448 | 31,733 |
Provision for loan losses | 3,444 | 3,615 | 6,195 |
Net interest income after provision for loan losses | 29,974 | 26,833 | 25,538 |
Noninterest income: | |||
Account maintenance and deposit service fees | 826 | 793 | 832 |
Income from bank-owned life insurance | 617 | 592 | 797 |
Equity income from mortgage affiliate | 558 | ||
Gain on sale of SBA loans | 657 | ||
Bargain purchase gain on acquisitions | 3,484 | ||
Net gain on other assets | 202 | 13 | 14 |
Gain on sales of available for sale securities | 142 | 274 | |
Total other-than-temporary impairment losses (OTTI) | -41 | -3 | -721 |
Portion of OTTI recognized in other comprehensive income (before taxes) | 4 | ||
Net credit related OTTI recognized in earnings | -41 | -3 | -717 |
Other | 202 | 216 | 254 |
Total noninterest income | 2,364 | 1,753 | 5,595 |
Noninterest expenses: | |||
Salaries and benefits | 10,225 | 9,063 | 7,993 |
Occupancy expenses | 3,165 | 3,063 | 2,778 |
Furniture and equipment expenses | 787 | 724 | 621 |
Amortization of core deposit intangible | 220 | 467 | 893 |
Virginia franchise tax expense | 455 | 471 | 582 |
FDIC assessment | 569 | 823 | 565 |
Data processing expense | 569 | 562 | 634 |
Telephone and communication expense | 751 | 684 | 603 |
Change in FDIC indemnification asset | 1,230 | 483 | 651 |
Net (gain) loss on other real estate owned | -433 | -188 | 2,632 |
Merger expenses | 487 | 35 | 360 |
Other operating expenses | 3,076 | 3,105 | 3,137 |
Total noninterest expenses | 21,101 | 19,292 | 21,449 |
Income before income taxes | 11,237 | 9,294 | 9,684 |
Income tax expense | 3,754 | 3,036 | 3,115 |
Net income | 7,483 | 6,258 | 6,569 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on available for sale securities | 299 | -232 | 8 |
Realized amount on available for sale securities sold, net | -142 | -274 | |
Non-credit component of other-than-temporary impairment on held-to-maturity securities | 35 | 97 | 676 |
Accretion of amounts previously recorded upon transfer to held-to-maturity from available-for sale | -77 | -39 | -105 |
Net unrealized gain (loss) | 257 | -316 | 305 |
Tax effect | 87 | -107 | 104 |
Other comprehensive income (loss) | 170 | -209 | 201 |
Comprehensive income | $7,653 | $6,049 | $6,770 |
Earnings per share, basic and diluted | $0.63 | $0.54 | $0.57 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
In Thousands, unless otherwise specified | |||||
Balance at Dec. 31, 2011 | $116 | $96,645 | $5,472 | ($3,182) | $99,051 |
Comprehensive income | |||||
Net income | 6,569 | 6,569 | |||
Change in unrealized loss on securities available for sale (net of tax, $90, $127, $102 for 2012, 2013, 2014 respectively) | -176 | -176 | |||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $194,$ 20, $15 and accretion, $105,$ 39, $77 and amounts recorded into other comprehensive income at transfer respectively for 2012, 2013 and 2014) | 377 | 377 | |||
Dividends on common stock ($0.25, $0.25 and 0.60 per share respectively for 2012, 2013 and 2014) | -2,840 | -2,840 | |||
Stock-based compensation expense | 195 | 195 | |||
Balance at Dec. 31, 2012 | 116 | 96,840 | 9,201 | -2,981 | 103,176 |
Comprehensive income | |||||
Net income | 6,258 | 6,258 | |||
Change in unrealized loss on securities available for sale (net of tax, $90, $127, $102 for 2012, 2013, 2014 respectively) | -247 | -247 | |||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $194,$ 20, $15 and accretion, $105,$ 39, $77 and amounts recorded into other comprehensive income at transfer respectively for 2012, 2013 and 2014) | 38 | 38 | |||
Dividends on common stock ($0.25, $0.25 and 0.60 per share respectively for 2012, 2013 and 2014) | -2,898 | -2,898 | |||
Issuance of common stock under Stock Incentive Plan (400 shares, 100,200 shares for 2013 and 2014 respectively) | 3 | 3 | |||
Stock-based compensation expense | 284 | 284 | |||
Balance at Dec. 31, 2013 | 116 | 97,127 | 12,561 | -3,190 | 106,614 |
Comprehensive income | |||||
Net income | 7,483 | 7,483 | |||
Change in unrealized loss on securities available for sale (net of tax, $90, $127, $102 for 2012, 2013, 2014 respectively) | 197 | 197 | |||
Change in unrecognized loss on securities held to maturity for which a portion of OTTI has been recognized (net of tax, $194,$ 20, $15 and accretion, $105,$ 39, $77 and amounts recorded into other comprehensive income at transfer respectively for 2012, 2013 and 2014) | -27 | -27 | |||
Dividends on common stock ($0.25, $0.25 and 0.60 per share respectively for 2012, 2013 and 2014) | -7,239 | -7,239 | |||
Issuance of common stock under Stock Incentive Plan (400 shares, 100,200 shares for 2013 and 2014 respectively) | 1 | 885 | 886 | ||
Issuance of common stock in exchange for net assets in acquisition (525,858 shares) | 5 | 5,743 | 5,748 | ||
Stock-based compensation expense | 317 | 317 | |||
Balance at Dec. 31, 2014 | $122 | $104,072 | $12,805 | ($3,020) | $113,979 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Stockholders Equity [Abstract] | |||
Tax on change in unrealized loss on securities available for sale | $102 | $127 | $90 |
Tax on change in unrecognized loss on securities held to maturity, portion of OTTI | 15 | 20 | 194 |
Accretion on change in unrecognized loss on securities held to maturity, portion of OTTI | $77 | $39 | $105 |
Common stock dividends per share (in dollars per share) | $0.60 | $0.25 | $0.25 |
Issuance of common shares under Stock Incentive Plan (in shares) | 100,200 | 400 | |
Issuance of common stock in exchange for net assets in acquisition | 525,858 |
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 |
Operating activities: | |||
Net income | $7,483 | $6,258 | $6,569 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | |||
Depreciation | 764 | 665 | 591 |
Amortization of core deposit intangible | 220 | 467 | 893 |
Other amortization, net | 186 | 344 | 314 |
Accretion of loan discount | -2,616 | -3,507 | -4,127 |
Amortization of FDIC indemnification asset | 1,230 | 483 | 651 |
Provision for loan losses | 3,444 | 3,615 | 6,195 |
Earnings on bank-owned life insurance | -617 | -592 | -797 |
Equity income on mortgage affiliate | -558 | ||
Stock based compensation expense | 317 | 284 | 195 |
Bargain purchase gain on acquisition | -3,484 | ||
Net gain on sale of available for sale securities | -142 | -274 | |
Gain on sale of loans | -657 | ||
Impairment on securities | 41 | 3 | 717 |
Net (gain) loss on other real estate owned | -433 | -188 | 2,632 |
Provision for (benefit from) deferred income taxes | -418 | 102 | -2,022 |
Net (increase) decrease in other assets | 1,161 | -365 | 1,069 |
Net increase (decrease) in other liabilities | 1,281 | -1,581 | 2,372 |
Net cash and cash equivalents provided by operating activities | 11,485 | 5,846 | 10,837 |
Investing activities: | |||
Purchases of available for sale securities | -5,437 | ||
Proceeds from sales of available for sale securities | 159 | 22,914 | |
Proceeds from paydowns, maturities and calls of available for sale securities | 1,318 | ||
Purchases of held to maturity securities | -18,284 | -14,766 | -34,689 |
Proceeds from paydowns, maturities and calls of held to maturity securities | 6,571 | 16,278 | 12,627 |
Loan originations and payments, net | -100,837 | -18,546 | 17,301 |
Proceeds from sale of HarVest loans | 7,568 | ||
Proceeds from sale of SBA loans | 5,713 | ||
Net cash received in HarVest acquisition | 47,257 | ||
Purchase of bank-owned life insurance | -2,000 | ||
Proceeds from cash surrender value of bank-owned life insurance | 395 | ||
Net cash received in PGFSB acquisition | 22,430 | ||
Proceeds from sale of PGFSB loans | 3,499 | ||
Investment in mortgage affiliate | -4,877 | ||
Net decrease in stock in Federal Reserve Bank and Federal Home Loan Bank | 327 | 297 | 1,608 |
Payments received on FDIC indemnification asset | 1,037 | 1,017 | 335 |
Proceeds from sale of other real estate owned | 3,276 | 4,187 | 1,466 |
Purchases of bank premises and equipment | -897 | -437 | -793 |
Net cash and cash equivalents provided by (used in) investing activities | -89,755 | -11,811 | 77,583 |
Financing activities: | |||
Net increase (decrease) in deposits | 112,838 | -10,618 | -50,602 |
Cash dividends paid - common stock | -7,239 | -2,898 | -2,840 |
Issuance of common stock under Stock Incentive Plan (100,200 shares) | 886 | 3 | |
Proceeds from Federal Home Loan Bank advances | 55,250 | ||
Repayment of Federal Home Loan Bank advances | -71,738 | ||
Net increase (decrease) in securities sold under agreement to repurchase and other short-term borrowings | -10,751 | 1,134 | 15,675 |
Net cash and cash equivalents provided by (used in) financing activities | 95,734 | -12,379 | -54,255 |
Increase (decrease) in cash and cash equivalents | 17,464 | -18,344 | 34,165 |
Cash and cash equivalents at beginning of period | 20,856 | 39,200 | 5,035 |
Cash and cash equivalents at end of period | 38,320 | 20,856 | 39,200 |
Cash payments for: | |||
Interest | 4,454 | 4,586 | 5,933 |
Income taxes | 3,283 | 4,598 | 2,708 |
Supplemental schedule of noncash investing and financing activities | |||
Transfer from non-covered loans to other real estate owned | 4,409 | 3,044 | 2,928 |
Transfer from covered loans to other real estate owned | 342 | 4,158 | |
Transfer from covered loans to non-covered loans | 7,344 | ||
Issuance of common stock in exchange for net assets in acquisition | $5,748 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parentheticals) | 12 Months Ended |
Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |
Issuance of common shares under Stock Incentive Plan (in shares) | 100,200 |
ORGANIZATION_AND_SIGNIFICANT_A
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Significant Accounting Policies [Abstract] | |
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES | 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
Southern National Bancorp of Virginia, Inc. (“Southern National” or “SNBV”) is a corporation formed on July 28, 2004 under the laws of the Commonwealth of Virginia and is the holding company for Sonabank (“Sonabank”) a Virginia state chartered bank which commenced operations on April 14, 2005. Sonabank provides a range of financial services to individuals and small and medium sized businesses. Sonabank has fifteen branches in Virginia, located in Fairfax County (Reston, McLean and Fairfax), in Charlottesville, Warrenton (2), Middleburg, Leesburg (2), South Riding, Front Royal, New Market, Haymarket, Richmond and Clifton Forge, and nine branches in Maryland, in Rockville, Shady Grove, Germantown, Frederick, Bethesda, Upper Marlboro, Brandywine, Owings and Huntingtown. | |
The accounting policies and practices of Southern National and subsidiary conform to U. S. generally accepted accounting principles and to general practice within the banking industry. Major policies and practices are described below: | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Southern National and its wholly owned subsidiary. Southern National is a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Sonabank. All material intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | |
The preparation of the consolidated financial statements in conformity with U. S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term include: the determination of the allowance for loan losses, the fair value of investment securities, other than temporary impairment of investment securities, the valuation of goodwill and intangible assets, fair value measurements related to assets acquired and liabilities assumed from business combinations, the FDIC indemnification asset, mortgage servicing rights, other real estate owned and deferred tax assets. | |
Investment Securities | |
Debt securities that Southern National has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. | |
Securities classified as available for sale are those debt and equity securities that may be sold in response to changes in interest rates, liquidity needs or other similar factors. Securities available for sale are carried at fair value, with unrealized gains or losses net of deferred taxes, included in accumulated other comprehensive income (loss) in stockholders’ equity. | |
Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on the sale of securities are recorded on the settlement date and are determined using the specific identification method. | |
Southern National purchases amortizing investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchase premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on like-kind instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored and updated monthly to reflect actual activity and the most recent market projections. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, Southern National compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |
Loans | |
Southern National provides mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by non-residential mortgage loans throughout its market area. The ability of Southern National’s debtors to honor their contracts is in varying degrees dependent upon the real estate market conditions and general economic conditions in this area. | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for the allowance for loan losses, purchase premiums and discounts and any deferred loan fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. | |
As part of the Greater Atlantic acquisition, the Bank and the FDIC entered into a loss sharing agreement on approximately $143.4 million (cost basis) of Greater Atlantic Bank’s assets. The Bank will share in the losses on the loans and foreclosed loan collateral with the FDIC as specified in the loss sharing agreement; we refer to these assets collectively as “covered assets.” The indemnification against losses in the commercial portfolio on the GAB portfolio ended in December 2014. The FDIC indemnification on the GAB residential mortgages and the GAB HELOCS continues for another five years. Loans that are not covered in the loss sharing agreement are referred to as “non-covered loans.” | |
The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal and interest is considered doubtful. | |
All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Most of Southern National’s business activity is with customers located within Virginia and Maryland. Therefore, our exposure to credit risk is significantly affected by changes in the economy in those areas. We are not dependent on any single customer or group of customers whose insolvency would have a material adverse effect on operations. | |
Southern National has purchased, primarily through acquisitions, individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Purchased credit impaired loans are accounted for using the expected cash flow methodology, and purchased performing loans are accounted for using the contractual cash flow methodology. | |
Such purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. Southern National estimates the amount and timing of expected cash flows for each purchased credit impaired loan or pool, and the expected cash flows in excess of fair value are recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loans’ or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). | |
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
In accordance with Accounting Standards Codification 310-30, and based on current information and events, if it becomes probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected, the Bank will recalculate the amount of accretable yield for the acquired loans as the excess of the revised cash flows expected to be collected over the sum of (1) the initial investment in the loans less (2) cash collected less (3) write downs, if any plus (4) the amount of yield accreted to date. The amount of accretable yield will be adjusted by reclassification from non-accretable yield. This adjustment would be accounted for as a change in estimate with the amount of periodic accretion adjusted over the remaining life of the loans. | |
Allowance for Loan and Lease Losses (ALLL) | |
The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the collection of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. | |
Management’s determination of the adequacy of the allowance is based on a three year historical average net loss experience for each portfolio segment adjusted for current industry and economic conditions and estimates of their effect on loan collectability. While management uses available information to estimate losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component provides for estimated losses in unimpaired loans and is based on historical loss experience adjusted for current factors. | |
A loan is considered impaired when, based on current information and events, it is probable that Southern National will be unable to collect the scheduled payments of principal or interest when due according to the terms of the loan. 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 by either the present value of 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. | |
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual net loss history experienced by Southern National over the most recent three years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: owner occupied commercial real estate, non-owner occupied commercial real estate, construction and land development, commercial loans, 1-4 family residential, and other consumer. While underwriting practices in this environment are more stringent, the bank estimates the effect of internal factors on future net loss experience to be negligible. Management’s estimate of the effect of current external economic environmental conditions on future net loss experience is significant in all loan segments and particularly on loans secured by real estate including single family 1-4, non-owner occupied commercial real estate and construction and land development loans. These factors include excess inventory, generally less demand driven in part by fewer qualified borrowers and buyers. These considerations have played a significant role in management’s estimate of the adequacy of the allowance for loan and lease losses. | |
Commercial real estate consists of borrowings secured by owner-occupied and non-owner-occupied commercial real estate. Repayment of these loans is dependent upon rental income or the subsequent sale of the property for loans secured by non-owner-occupied commercial real estate and by cash flows from business operations for owner-occupied commercial real estate. Loans for which the source of repayment is rental income are primarily impacted by local economic conditions which dictate occupancy rates and the amount of rent charged. Commercial real estate loans that are dependent on cash flows from operations can also be adversely affected by current market conditions for their product or service. | |
Construction and land development primarily consist of borrowings to purchase and develop raw land into residential and non-residential properties. Construction loans are extended to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements. Repayment of the loans to real estate developers is dependent upon the sale or lease of properties to third parties in a timely fashion upon completion. Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value which may be absorbed by Southern National. | |
Commercial loans consist of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises. Commercial loans are generally secured by business assets such as equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations. Southern National’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure become necessary. Generally, business assets used or produced in operations do not maintain their value upon foreclosure which may require Southern National to write-down the value significantly to sell. | |
Residential real estate loans consist of loans to individuals for the purchase of primary residences with repayment primarily through wage or other income sources of the individual borrower. Southern National’s loss exposure to these loans is dependent on local market conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination. | |
Other consumer loans are comprised of loans to individuals both unsecured and secured and open-end home equity loans secured by real estate, with repayment dependent on individual wages and other income. The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary. Losses in this portfolio are generally relatively low, however, due to the small individual loan size and the balance outstanding as a percentage of Southern National’s entire portfolio. | |
Transfers of Financial Assets | |
Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from Southern National, 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 Southern National does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Equity Method Investments | |
Southern National’s investment in Southern Trust Mortgage (“STM”) is being accounted for under the equity method. Under the equity method, the carrying value of Southern National’s investment in STM was originally recorded at cost but is adjusted periodically to record Southern National’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. | |
Bank Premises and Equipment | |
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight line method with useful lives of 30 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. | |
Goodwill and Intangible Assets | |
Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Southern National has selected August 31 as the date to perform the annual goodwill impairment assessment. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. | |
Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized over their estimated useful lives, which range from 6 to 15 years. | |
Stock Based Compensation | |
Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Bank-owned Life Insurance | |
Southern National has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |
Other Real Estate Owned | |
Assets acquired through or instead of foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, the direct charge-off method is recorded through expense. Operating costs after acquisition are expensed. | |
Stock in Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) | |
The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. We are also required to own FRB stock with a par value equal to 6% of capital. FHLB stock and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
Impairment of Long-Lived Assets | |
Premises and equipment, core deposit intangible assets, the FDIC indemnification asset and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
FDIC Indemnification Asset | |
The acquisition of Greater Atlantic Bank (GAB) on December 4, 2009 was accounted for under the acquisition method of accounting, and the assets and liabilities were recorded at their estimated fair values. The FDIC indemnification asset was measured separately from each of the covered asset categories as it is not contractually embedded in any of the covered asset categories. The indemnification asset represents the present value of cash flows expected to be received from the FDIC for future losses on covered assets based on the expected credit losses estimated for each covered loan or loan pool and the loss sharing percentages at the acquisition date. Cash flows are discounted at a market-based rate to reflect the uncertainty of the timing of the loss sharing reimbursement from the FDIC. The ultimate collectability of this asset is dependent upon the performance of the underlying covered assets, the passage of time and claims paid by the FDIC. We acquired the Greater Atlantic loans in December 2009 and continuously evaluate our estimates of expected losses on these loans. During 2014, and based on the actual historical losses on the loan pools over the previous 24 month period, expected losses on the acquired Greater Atlantic loans (the covered loans) were lower than previously forecasted which results in a lower expected recovery from the FDIC. As of December 31, 2014, we expect to recover $2.3 million from the FDIC under the indemnification agreement. The difference between the carrying amount of $3.6 million and the estimated recovery is being amortized over the remaining life of the indemnification agreement or the expected life of the loans, whichever is shorter. There were two agreements with the FDIC, one for single family assets which is a 10 year agreement expiring in December 2019, and one for non-single family (commercial) assets which was a 5 year agreement which expired in December 2014. The current overstatement is due to improvements in the loss estimates in the single family covered loans. | |
Retirement Plans | |
Employee 401(k) plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. | |
Loss Contingencies | |
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. | |
Dividend Restriction | |
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. | |
Estimates and Uncertainties | |
Estimates including the fair value of financial instruments, other than temporary impairment, the provision for loan losses, expected loan performance and recoveries from the FDIC, and the evaluation of the recoverability of goodwill and intangible assets involve uncertainties and matters of significant judgment regarding interest rates, credit risk, repayments and prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Operating Segments | |
While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Discrete financial information is not available other than on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. | |
Reclassifications | |
Certain items in the prior year financial statements were reclassified to conform to the current presentation. Gains and losses on OREO have been reclassified from noninterest income to noninterest expenses in the Consolidated Statements of Income and Comprehensive Income. | |
Income Taxes | |
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
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. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals exist as of December 31, 2014. Southern National and its subsidiary file a consolidated U. S. federal tax return; Sonabank files a Maryland state income tax return and Southern National files a Virginia state income tax return. These returns are subject to examination by taxing authorities for all years after 2010. | |
Restrictions on Cash | |
Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements in the amount of $1.5 million and $1.8 million at December 31, 2014 and 2013, respectively. | |
Consolidated Statements of Cash Flows | |
For purposes of reporting cash flows, Southern National defines cash and cash equivalents as cash due from banks and interest-bearing deposits in other banks with maturities less than 90 days. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. | |
Earnings Per Share | |
Basic earnings per share (“EPS”) are computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by SNBV relate solely to outstanding stock options and warrants and are determined using the treasury stock method. | |
Comprehensive Income (Loss) | |
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and the non-credit component of other than temporary impairment of securities held-to-maturity which are also recognized as a separate component of equity. | |
Off Balance Sheet Credit Related Financial Instruments | |
In the ordinary course of business, Southern National has entered into commitments to extend credit and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. | |
Recent Accounting Pronouncements | |
In January 2014, the FASB issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Southern National’s Consolidated Financial Statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). These amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g. insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The ASU allows for either full retrospective or modified retrospective adoption. SNBV is assessing the effects of this ASU, which exclude financial instruments from its scope, but does not anticipate that it will have a material impact on its financial position or results of operations. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of ASU No. 2014-11 is not expected to have a material impact on the Southern National’s Consolidated Financial Statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Management does not anticipate that this ASU will significantly impact SNBV. |
SECURITIES
SECURITIES | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
SECURITIES | 2. SECURITIES | |||||||||||||||||||||||||||||||||
The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) were as follows (in thousands): | ||||||||||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,295 | $ | - | $ | (10 | ) | $ | 2,285 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,302 | $ | - | $ | (309 | ) | $ | 1,993 | |||||||||||||||||||||||||
The amortized cost, unrecognized gains and losses, and fair value of securities held to maturity were as follows (in thousands): | ||||||||||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 22,897 | $ | 708 | $ | (8 | ) | $ | 23,597 | |||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 3,564 | - | (53 | ) | 3,511 | |||||||||||||||||||||||||||||
Government-sponsored agency securities | 44,949 | 294 | (822 | ) | 44,421 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 15,531 | 108 | (145 | ) | 15,494 | |||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 599 | - | - | 599 | ||||||||||||||||||||||||||||||
Trust preferred securities | 6,518 | 1,527 | (1,574 | ) | 6,471 | |||||||||||||||||||||||||||||
$ | 94,058 | $ | 2,637 | $ | (2,602 | ) | $ | 94,093 | ||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 25,609 | $ | 673 | $ | (294 | ) | $ | 25,988 | |||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 4,295 | 2 | (349 | ) | 3,948 | |||||||||||||||||||||||||||||
Government-sponsored agency securities | 29,971 | - | (3,994 | ) | 25,977 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 14,388 | - | (987 | ) | 13,401 | |||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 659 | - | (12 | ) | 647 | |||||||||||||||||||||||||||||
Trust preferred securities | 7,521 | 939 | (2,228 | ) | 6,232 | |||||||||||||||||||||||||||||
$ | 82,443 | $ | 1,614 | $ | (7,864 | ) | $ | 76,193 | ||||||||||||||||||||||||||
The amortized cost amounts are net of recognized other than temporary impairment. | ||||||||||||||||||||||||||||||||||
During 2014, we sold no securities. During 2013, we sold 55 thousand shares of available for sale FHLMC preferred stock resulting in a gain of $142 thousand. During 2012, we sold $8.2 million of available for sale SBA pooled securities acquired in the Greater Atlantic Bank transaction resulting in a gain of $287 thousand and $14.4 million available for sale securities acquired in the HarVest acquisition resulting in a loss of $13 thousand. | ||||||||||||||||||||||||||||||||||
The fair value and amortized cost, if different, of debt securities as of December 31, 2014 by contractual maturity were as follows (in thousands). Securities not due at a single maturity date, primarily mortgage-backed securities and collateralized mortgage obligations, are shown separately. | ||||||||||||||||||||||||||||||||||
Held to Maturity | Available for Sale | |||||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in five to ten years | $ | 12,674 | $ | 12,555 | $ | - | $ | - | ||||||||||||||||||||||||||
Due after ten years | 54,324 | 53,831 | 2,295 | 2,285 | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | 22,897 | 23,597 | - | - | ||||||||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 3,564 | 3,511 | - | - | ||||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 599 | 599 | - | - | ||||||||||||||||||||||||||||||
Total | $ | 94,058 | $ | 94,093 | $ | 2,295 | $ | 2,285 | ||||||||||||||||||||||||||
Securities with a carrying amount of approximately $71.8 million and $65.3 million at December 31, 2014 and 2013, respectively, were pledged to secure public deposits, repurchase agreements and a line of credit for advances from the Federal Home Loan Bank of Atlanta (“FHLB”). | ||||||||||||||||||||||||||||||||||
Southern National monitors the portfolio for indicators of other than temporary impairment. At December 31, 2014 and 2013, certain securities’ fair values were below cost. As outlined in the table below, there were securities with fair values totaling approximately $51.3 million in the portfolio with the carrying value exceeding the estimated fair value that are considered temporarily impaired at December 31, 2014. Because the decline in fair value is attributable to changes in interest rates and market illiquidity, and not credit quality, and because we do not have the intent to sell these securities and it is likely that we will not be required to sell the securities before their anticipated recovery, management does not consider these securities to be other-than-temporarily impaired as of December 31, 2014. The following tables present information regarding securities in a continuous unrealized loss position as of December 31, 2014 and 2013 (in thousands) by duration of time in a loss position: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Available for Sale | Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 485 | $ | (1 | ) | $ | 1,800 | $ | (9 | ) | $ | 2,285 | $ | (10 | ) | |||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Held to Maturity | Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 3,506 | $ | (8 | ) | $ | - | $ | - | $ | 3,506 | $ | (8 | ) | ||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 692 | (3 | ) | 2,819 | (50 | ) | 3,511 | (53 | ) | |||||||||||||||||||||||||
Government-sponsored agency securities | - | - | 29,154 | (822 | ) | 29,154 | (822 | ) | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 485 | (20 | ) | 8,139 | (125 | ) | 8,624 | (145 | ) | |||||||||||||||||||||||||
Trust preferred securities | - | - | 4,233 | (1,574 | ) | 4,233 | (1,574 | ) | ||||||||||||||||||||||||||
$ | 4,683 | $ | (31 | ) | $ | 44,345 | $ | (2,571 | ) | $ | 49,028 | $ | (2,602 | ) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Available for Sale | Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 409 | $ | (78 | ) | $ | 1,584 | $ | (231 | ) | $ | 1,993 | $ | (309 | ) | |||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Held to Maturity | Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 12,644 | $ | (294 | ) | $ | - | $ | - | $ | 12,644 | $ | (294 | ) | ||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 2,984 | (349 | ) | - | - | 2,984 | (349 | ) | ||||||||||||||||||||||||||
Government-sponsored agency securities | 8,733 | (1,250 | ) | 17,244 | (2,744 | ) | 25,977 | (3,994 | ) | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 10,327 | (588 | ) | 3,064 | (399 | ) | 13,391 | (987 | ) | |||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 647 | (12 | ) | - | - | 647 | (12 | ) | ||||||||||||||||||||||||||
Trust preferred securities | - | - | 4,070 | (2,228 | ) | 4,070 | (2,228 | ) | ||||||||||||||||||||||||||
$ | 35,335 | $ | (2,493 | ) | $ | 24,378 | $ | (5,371 | ) | $ | 59,713 | $ | (7,864 | ) | ||||||||||||||||||||
As of December 31, 2014, we owned pooled trust preferred securities as follows (in thousands): | ||||||||||||||||||||||||||||||||||
Previously | ||||||||||||||||||||||||||||||||||
% of Current | Recognized | |||||||||||||||||||||||||||||||||
Defaults and | Cumulative | |||||||||||||||||||||||||||||||||
Ratings | Estimated | Deferrals to | Other | |||||||||||||||||||||||||||||||
Tranche | When Purchased | Current Ratings | Fair | Total | Comprehensive | |||||||||||||||||||||||||||||
Security | Level | Moody’s | Fitch | Moody’s | Fitch | Par Value | Book Value | Value | Collateral | Loss (1) | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||
ALESCO VII A1B | Senior | Aaa | AAA | A3 | BBB | $ | 5,466 | $ | 4,975 | $ | 3,553 | 16 | % | $ | 266 | |||||||||||||||||||
MMCF III B | Senior Sub | A3 | A- | Ba1 | CC | 328 | 323 | 192 | 34 | % | 5 | |||||||||||||||||||||||
5,794 | 5,298 | 3,745 | $ | 271 | ||||||||||||||||||||||||||||||
Cumulative Other | Cumulative | |||||||||||||||||||||||||||||||||
Comprehensive | OTTI Related to | |||||||||||||||||||||||||||||||||
Other Than Temporarily Impaired: | Loss (2) | Credit Loss (2) | ||||||||||||||||||||||||||||||||
TPREF FUNDING II | Mezzanine | A1 | A- | Caa3 | C | 1,500 | 509 | 488 | 39 | % | 591 | $ | 400 | |||||||||||||||||||||
TRAP 2007-XII C1 | Mezzanine | A3 | A | C | C | 2,178 | 57 | 395 | 26 | % | 828 | 1,293 | ||||||||||||||||||||||
TRAP 2007-XIII D | Mezzanine | NR | A- | NR | C | 2,039 | - | 324 | 17 | % | 7 | 2,032 | ||||||||||||||||||||||
MMC FUNDING XVIII | Mezzanine | A3 | A- | Ca | C | 1,095 | 27 | 295 | 21 | % | 377 | 691 | ||||||||||||||||||||||
ALESCO V C1 | Mezzanine | A2 | A | C | C | 2,150 | 475 | 575 | 15 | % | 1,014 | 661 | ||||||||||||||||||||||
ALESCO XV C1 | Mezzanine | A3 | A- | C | C | 3,279 | 31 | 86 | 33 | % | 689 | 2,559 | ||||||||||||||||||||||
ALESCO XVI C | Mezzanine | A3 | A- | C | C | 2,179 | 121 | 563 | 15 | % | 878 | 1,180 | ||||||||||||||||||||||
14,420 | 1,220 | 2,726 | $ | 4,384 | $ | 8,816 | ||||||||||||||||||||||||||||
Total | $ | 20,214 | $ | 6,518 | $ | 6,471 | ||||||||||||||||||||||||||||
(1) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion | ||||||||||||||||||||||||||||||||||
(2) Pre-tax | ||||||||||||||||||||||||||||||||||
Each of these securities has been evaluated for other than temporary impairment (“OTTI”). In performing a detailed cash flow analysis of each security, Sonabank works with independent third parties to estimate expected cash flows and assist with the evaluation of other than temporary impairment. The cash flow analyses performed included the following assumptions: | ||||||||||||||||||||||||||||||||||
● | .5% of the remaining performing collateral will default or defer per annum. | |||||||||||||||||||||||||||||||||
● | Recoveries of 11% with a two year lag on all defaults and deferrals. | |||||||||||||||||||||||||||||||||
● | No prepayments for 10 years and then 1% per annum for the remaining life of the security. | |||||||||||||||||||||||||||||||||
● | Additionally banks with assets over $15 billion will no longer be allowed to count down streamed trust preferred proceeds as Tier 1 capital (although it will still be counted as Tier 2 capital). That will incent the large banks to prepay their trust preferred securities if they can or if it is economically desirable. As a consequence, we have projected in all of our pools that 10% of the collateral issued by banks with assets over $15 billion will prepay in the first year of the forecast, and 15% in the second year. | |||||||||||||||||||||||||||||||||
● | Our securities have been modeled using the above assumptions by independent third parties using the forward LIBOR curve to discount projected cash flows to present values. | |||||||||||||||||||||||||||||||||
We recognized OTTI charges of $41 thousand during 2014 compared to OTTI charges related to credit on the trust preferred securities totaling $3 thousand and $717 thousand for the years ended December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||
The following table presents a roll forward of the credit losses recognized in earnings for the periods ended December 31, 2014, 2013 and 2012 (in thousands): | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Amount of cumulative other-than-temporary impairment related to credit loss prior to January 1 | $ | 8,911 | $ | 8,994 | $ | 8,277 | ||||||||||||||||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | - | - | - | |||||||||||||||||||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was previously recognized | 41 | 3 | 717 | |||||||||||||||||||||||||||||||
Reductions due to realized losses | (3 | ) | (86 | ) | - | |||||||||||||||||||||||||||||
Amount of cumulative other-than-temporary impairment related to credit loss as of December 31 | $ | 8,949 | $ | 8,911 | $ | 8,994 | ||||||||||||||||||||||||||||
Changes in accumulated other comprehensive income by component for the years ended December 31, 2014 and 2013 are shown in the table below. All amounts are net of tax (in thousands). | ||||||||||||||||||||||||||||||||||
Unrealized Holding | ||||||||||||||||||||||||||||||||||
Gains (Losses) on | ||||||||||||||||||||||||||||||||||
For the year ended December 31, 2014 | Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Securities | Securities | Total | ||||||||||||||||||||||||||||||||
Beginning balance | $ | (203 | ) | $ | (2,987 | ) | $ | (3,190 | ) | |||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 197 | (27 | ) | 170 | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | - | - | - | |||||||||||||||||||||||||||||||
Net current-period other comprehensive income/(loss) | 197 | (27 | ) | 170 | ||||||||||||||||||||||||||||||
Ending balance | $ | (6 | ) | $ | (3,014 | ) | $ | (3,020 | ) | |||||||||||||||||||||||||
Unrealized Holding | ||||||||||||||||||||||||||||||||||
Gains (Losses) on | ||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Securities | Securities | Total | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 44 | $ | (3,025 | ) | $ | (2,981 | ) | ||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (153 | ) | 38 | (115 | ) | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | (94 | ) | - | (94 | ) | |||||||||||||||||||||||||||||
Net current-period other comprehensive income/(loss) | (247 | ) | 38 | (209 | ) | |||||||||||||||||||||||||||||
Ending balance | $ | (203 | ) | $ | (2,987 | ) | $ | (3,190 | ) |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||
LOANS | 3. LOANS | ||||||||||||||||||||||||||||||||||||||||
Loans, net of unearned income, consist of the following at year end (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Covered | Non-covered | Total | Covered | Non-covered | Total | ||||||||||||||||||||||||||||||||||||
Loans (1) | Loans | Loans | Loans (1) | Loans | Loans | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | $ | - | $ | 136,597 | $ | 136,597 | $ | 1,603 | $ | 106,225 | $ | 107,828 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | - | 200,517 | 200,517 | 5,829 | 150,008 | 155,837 | |||||||||||||||||||||||||||||||||||
Secured by farmland | - | 612 | 612 | 100 | 508 | 608 | |||||||||||||||||||||||||||||||||||
Construction and land loans | - | 57,938 | 57,938 | 1 | 39,068 | 39,069 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14,837 | 123,233 | 138,070 | 16,631 | 66,482 | 83,113 | |||||||||||||||||||||||||||||||||||
Multi- family residential | - | 21,832 | 21,832 | 585 | 21,496 | 22,081 | |||||||||||||||||||||||||||||||||||
Home equity lines of credit | 23,658 | 9,751 | 33,409 | 25,769 | 6,431 | 32,200 | |||||||||||||||||||||||||||||||||||
Total real estate loans | 38,495 | 550,480 | 588,975 | 50,518 | 390,218 | 440,736 | |||||||||||||||||||||||||||||||||||
Commercial loans | - | 114,714 | 114,714 | 1,097 | 104,284 | 105,381 | |||||||||||||||||||||||||||||||||||
Consumer loans | - | 1,564 | 1,564 | 81 | 1,308 | 1,389 | |||||||||||||||||||||||||||||||||||
Gross loans | 38,495 | 666,758 | 705,253 | 51,696 | 495,810 | 547,506 | |||||||||||||||||||||||||||||||||||
Less deferred fees on loans | 1 | (1,782 | ) | (1,781 | ) | 5 | (1,453 | ) | (1,448 | ) | |||||||||||||||||||||||||||||||
Loans, net of deferred fees | $ | 38,496 | $ | 664,976 | $ | 703,472 | $ | 51,701 | $ | 494,357 | $ | 546,058 | |||||||||||||||||||||||||||||
(1) Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. | |||||||||||||||||||||||||||||||||||||||||
Accounting policy related to the allowance for loan losses is considered a critical policy given the level of estimation, judgment, and uncertainty in the levels of the allowance required to account for the inherent probable losses in the loan portfolio and the material effect such estimation, judgment, and uncertainty can have on the consolidated financial results. | |||||||||||||||||||||||||||||||||||||||||
As part of the Greater Atlantic acquisition, the Bank and the FDIC entered into loss sharing agreements on approximately $143.4 million (contractual basis) of Greater Atlantic Bank’s assets. There were two agreements with the FDIC, one for single family loans which is a 10-year agreement expiring in December 2019, and one for non-single family (commercial) assets which was a 5-year agreement which expired in December 2014. The Bank will share in the losses on the loans and foreclosed loan collateral with the FDIC as specified in the loss sharing agreements; we refer to these assets collectively as “covered assets.” Loans that are not covered in the loss sharing agreement are referred to as “non-covered loans”. As of December 31, 2014, non-covered loans included $34.0 million of loans acquired in the HarVest acquisition and $59.5 million acquired in the PGFSB acquisition. | |||||||||||||||||||||||||||||||||||||||||
Accretable discount on the acquired covered loans, the PGFSB loans and the HarVest loans was $9.3 million and $8.9 million at December 31, 2014 and December 31, 2013 respectively. | |||||||||||||||||||||||||||||||||||||||||
Credit-impaired covered loans are those loans which presented evidence of credit deterioration at the date of acquisition and it is probable that Southern National would not collect all contractually required principal and interest payments. Generally, acquired loans that meet Southern National’s definition for nonaccrual status fell within the definition of credit-impaired covered loans. | |||||||||||||||||||||||||||||||||||||||||
Impaired loans for the covered and non-covered portfolios were as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | |||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment (1) | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 10,394 | $ | 10,394 | $ | - | $ | 10,394 | $ | 10,394 | $ | - | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | 1,859 | 2,118 | - | 1,859 | 2,118 | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 4,998 | 4,999 | - | 4,998 | 4,999 | - | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,740 | 2,053 | - | - | - | - | 1,740 | 2,053 | - | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | 1,740 | $ | 2,053 | $ | - | $ | 17,251 | $ | 17,511 | $ | - | $ | 18,991 | $ | 19,564 | $ | - | |||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 1,609 | $ | 2,231 | $ | 151 | $ | 1,609 | $ | 2,231 | $ | 151 | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 467 | 740 | 120 | 467 | 740 | 120 | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 3,141 | 3,944 | 134 | 3,141 | 3,944 | 134 | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | - | - | - | 1,344 | 1,465 | 300 | 1,344 | 1,465 | 300 | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 6,561 | $ | 8,380 | $ | 705 | $ | 6,561 | $ | 8,380 | $ | 705 | |||||||||||||||||||||||
Grand total | $ | 1,740 | $ | 2,053 | $ | - | $ | 23,812 | $ | 25,891 | $ | 705 | $ | 25,552 | $ | 27,944 | $ | 705 | |||||||||||||||||||||||
(1) Recorded investment is after cumulative prior charge offs of $1.7 million. These loans also have aggregate SBA guarantees of $4.7 million. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) The Bank recognizes loan impairment and may concurrently record a charge off to the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | |||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment (1) | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 745 | $ | 844 | $ | - | $ | 7,476 | $ | 7,476 | $ | - | $ | 8,221 | $ | 8,320 | $ | - | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | 2,145 | 2,486 | - | 359 | 449 | - | 2,504 | 2,935 | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 2,107 | 2,307 | - | 2,107 | 2,307 | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 3,155 | 3,631 | - | 3,155 | 3,631 | - | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,220 | 1,439 | - | 5,358 | 5,358 | - | 6,578 | 6,797 | - | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | 4,110 | $ | 4,769 | $ | - | $ | 18,455 | $ | 19,221 | $ | - | $ | 22,565 | $ | 23,990 | $ | - | |||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 400 | $ | 500 | $ | 192 | $ | 400 | $ | 500 | $ | 192 | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 1,718 | 2,518 | 325 | 1,718 | 2,518 | 325 | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | - | - | - | 2,637 | 2,637 | 200 | 2,637 | 2,637 | 200 | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 4,755 | $ | 5,655 | $ | 717 | $ | 4,755 | $ | 5,655 | $ | 717 | |||||||||||||||||||||||
Grand total | $ | 4,110 | $ | 4,769 | $ | - | $ | 23,210 | $ | 24,876 | $ | 717 | $ | 27,320 | $ | 29,645 | $ | 717 | |||||||||||||||||||||||
(1) Recorded investment is after cumulative prior charge offs of $1.4 million. These loans also have aggregate SBA guarantees of $2.4 million. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) The Bank recognizes loan impairment and may concurrently record a charge off to the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
The following tables present the average recorded investment and interest income for impaired loans recognized by class of loans for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 8,154 | $ | 511 | $ | 8,154 | $ | 511 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 3,632 | 223 | 3,632 | 223 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,251 | 40 | - | - | 1,251 | 40 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,251 | $ | 40 | $ | 11,786 | $ | 734 | $ | 13,037 | $ | 774 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 326 | $ | 14 | $ | 326 | $ | 14 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | 36 | - | 36 | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 2,317 | - | 2,317 | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 464 | - | 464 | - | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 3,143 | $ | 14 | $ | 3,143 | $ | 14 | |||||||||||||||||||||||||||||
Grand total | $ | 1,251 | $ | 40 | $ | 14,929 | $ | 748 | $ | 16,180 | $ | 788 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 770 | $ | 55 | $ | 6,456 | $ | 439 | $ | 7,226 | $ | 494 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,274 | 134 | 370 | 38 | 2,644 | 172 | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | 1,181 | - | 1,181 | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 1,811 | 66 | 1,811 | 66 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,229 | 47 | 5,534 | 347 | 6,763 | 394 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 4,273 | $ | 236 | $ | 15,352 | $ | 890 | $ | 19,625 | $ | 1,126 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 123 | $ | 17 | $ | 123 | $ | 17 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 1,875 | - | 1,875 | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 2,618 | 127 | 2,618 | 127 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 4,616 | $ | 144 | $ | 4,616 | $ | 144 | |||||||||||||||||||||||||||||
Grand total | $ | 4,273 | $ | 236 | $ | 19,968 | $ | 1,034 | $ | 24,241 | $ | 1,270 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/12 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 134 | $ | 19 | $ | 724 | $ | 39 | $ | 858 | $ | 58 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,101 | 62 | 1,942 | 39 | 4,043 | 101 | |||||||||||||||||||||||||||||||||||
Construction and land development | 1,087 | 101 | 3,158 | 95 | 4,245 | 196 | |||||||||||||||||||||||||||||||||||
Commercial loans | 210 | 23 | 3,836 | 132 | 4,046 | 155 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,183 | 29 | 1,230 | 49 | 2,413 | 78 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 4,715 | $ | 234 | $ | 10,890 | $ | 354 | $ | 15,605 | $ | 588 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 270 | $ | 21 | $ | 270 | $ | 21 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | 1,345 | 102 | 1,345 | 102 | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 1,783 | 90 | 1,783 | 90 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 3,398 | $ | 213 | $ | 3,398 | $ | 213 | |||||||||||||||||||||||||||||
Grand total | $ | 4,715 | $ | 234 | $ | 14,288 | $ | 567 | $ | 19,003 | $ | 801 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30 - 59 | 60 - 89 | |||||||||||||||||||||||||||||||||||||||
Days | Days | 90 Days | Total | Nonaccrual | Loans Not | Total | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 10 | 148 | - | 158 | 859 | 37,478 | 38,495 | ||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Total | $ | 10 | $ | 148 | $ | - | $ | 158 | $ | 859 | $ | 37,478 | $ | 38,495 | |||||||||||||||||||||||||||
Non-covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 1,524 | $ | 135,073 | $ | 136,597 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 4,128 | - | - | 4,128 | - | 218,833 | 222,961 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 467 | 57,471 | 57,938 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | 3,140 | 111,574 | 114,714 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 319 | 586 | - | 905 | 521 | 131,558 | 132,984 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 6 | - | - | 6 | - | 1,558 | 1,564 | ||||||||||||||||||||||||||||||||||
Total | $ | 4,453 | $ | 586 | $ | - | $ | 5,039 | $ | 5,652 | $ | 656,067 | $ | 666,758 | |||||||||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | 1,524 | $ | 135,073 | $ | 136,597 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 4,128 | - | - | 4,128 | - | 218,833 | 222,961 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 467 | 57,471 | 57,938 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | 3,140 | 111,574 | 114,714 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 329 | 734 | - | 1,063 | 1,380 | 169,036 | 171,479 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 6 | - | - | 6 | - | 1,558 | 1,564 | ||||||||||||||||||||||||||||||||||
Total | $ | 4,463 | $ | 734 | $ | - | $ | 5,197 | $ | 6,511 | $ | 693,545 | $ | 705,253 | |||||||||||||||||||||||||||
31-Dec-13 | 30 - 59 | 60 - 89 | |||||||||||||||||||||||||||||||||||||||
Days | Days | 90 Days | Total | Nonaccrual | Loans Not | Total | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,603 | $ | 1,603 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 503 | - | - | 503 | 245 | 5,766 | 6,514 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | 1 | 1 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | 1,097 | 1,097 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 41 | - | - | 41 | 1,377 | 40,982 | 42,400 | ||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | 81 | 81 | ||||||||||||||||||||||||||||||||||
Total | $ | 544 | $ | - | $ | - | $ | 544 | $ | 1,622 | $ | 49,530 | $ | 51,696 | |||||||||||||||||||||||||||
Non-covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 708 | $ | 283 | $ | - | $ | 991 | $ | - | $ | 105,234 | $ | 106,225 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 359 | - | - | 359 | - | 171,653 | 172,012 | ||||||||||||||||||||||||||||||||||
Construction and land development | 8 | 3 | - | 11 | 2,107 | 36,950 | 39,068 | ||||||||||||||||||||||||||||||||||
Commercial loans | 522 | 968 | - | 1,490 | 3,070 | 99,724 | 104,284 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 957 | 98 | - | 1,055 | 2,637 | 69,221 | 72,913 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 14 | - | - | 14 | - | 1,294 | 1,308 | ||||||||||||||||||||||||||||||||||
Total | $ | 2,568 | $ | 1,352 | $ | - | $ | 3,920 | $ | 7,814 | $ | 484,076 | $ | 495,810 | |||||||||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 708 | $ | 283 | $ | - | $ | 991 | $ | - | $ | 106,837 | $ | 107,828 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 862 | - | - | 862 | 245 | 177,419 | 178,526 | ||||||||||||||||||||||||||||||||||
Construction and land development | 8 | 3 | - | 11 | 2,107 | 36,951 | 39,069 | ||||||||||||||||||||||||||||||||||
Commercial loans | 522 | 968 | - | 1,490 | 3,070 | 100,821 | 105,381 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 998 | 98 | - | 1,096 | 4,014 | 110,203 | 115,313 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 14 | - | - | 14 | - | 1,375 | 1,389 | ||||||||||||||||||||||||||||||||||
Total | $ | 3,112 | $ | 1,352 | $ | - | $ | 4,464 | $ | 9,436 | $ | 533,606 | $ | 547,506 | |||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for non-covered loan and lease losses by class of loan for the years ended December 31, 2014, 2013 and 2012 is summarized below (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Non-covered loans: | Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | |||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Charge offs | (573 | ) | - | (250 | ) | (1,998 | ) | (449 | ) | - | - | (3,270 | ) | ||||||||||||||||||||||||||||
Recoveries | 10 | 23 | 4 | 125 | 7 | 5 | - | 174 | |||||||||||||||||||||||||||||||||
Provision | 604 | 115 | 822 | 1,139 | 462 | (10 | ) | 318 | 3,450 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 855 | $ | 1,123 | $ | 1,644 | $ | 2,063 | $ | 1,322 | $ | 49 | $ | 337 | $ | 7,393 | |||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 932 | $ | 1,474 | $ | 970 | $ | 2,110 | $ | 1,163 | $ | 33 | $ | 285 | $ | 6,967 | |||||||||||||||||||||||||
Charge offs | - | (199 | ) | (650 | ) | (2,286 | ) | (776 | ) | (144 | ) | - | (4,055 | ) | |||||||||||||||||||||||||||
Recoveries | 13 | 146 | 7 | 204 | 129 | 4 | - | 503 | |||||||||||||||||||||||||||||||||
Provision | (131 | ) | (436 | ) | 741 | 2,769 | 786 | 161 | (266 | ) | 3,624 | ||||||||||||||||||||||||||||||
Ending balance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 627 | $ | 1,011 | $ | 1,367 | $ | 2,227 | $ | 1,021 | $ | 42 | $ | - | $ | 6,295 | |||||||||||||||||||||||||
Charge offs | (250 | ) | (1,081 | ) | (2,119 | ) | (1,676 | ) | (1,071 | ) | (9 | ) | - | (6,206 | ) | ||||||||||||||||||||||||||
Recoveries | - | 261 | 13 | 334 | 85 | 9 | - | 702 | |||||||||||||||||||||||||||||||||
Provision | 555 | 1,283 | 1,709 | 1,225 | 1,128 | (9 | ) | 285 | 6,176 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 932 | $ | 1,474 | $ | 970 | $ | 2,110 | $ | 1,163 | $ | 33 | $ | 285 | $ | 6,967 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for covered loan and lease losses by class of loan for the years ended December 31, 2014, 2013 and 2012 is summarized below (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Covered loans: | Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | |||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Occupied | Occupied (1) | Development | Loans | Residential (3) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | (36 | ) | - | - | 14 | (2 | ) | - | (24 | ) | ||||||||||||||||||||||||||||||
Provision | - | (9 | ) | - | - | 3 | - | - | (6 | ) | |||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | 4 | $ | - | $ | 21 | |||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | 45 | $ | - | $ | 43 | $ | - | $ | 11 | $ | - | $ | 99 | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | - | - | (35 | ) | - | (4 | ) | - | (39 | ) | ||||||||||||||||||||||||||||||
Provision | - | - | - | (8 | ) | - | (1 | ) | - | (9 | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | 36 | - | 35 | - | 9 | - | 80 | |||||||||||||||||||||||||||||||||
Provision | - | 9 | - | 8 | - | 2 | - | 19 | |||||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | 45 | $ | - | $ | 43 | $ | - | $ | 11 | $ | - | $ | 99 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Represents the portion of increased expected losses which is covered by the loss sharing agreement with the FDIC. | |||||||||||||||||||||||||||||||||||||||||
(3) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the balance in the allowance for non-covered loan losses and the recorded investment in non-covered loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | ||||||||||||||||||||||||||||||||||||
Non-covered loans: | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 151 | $ | - | $ | 120 | $ | 134 | $ | 300 | $ | - | $ | - | $ | 705 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 704 | 1,123 | 1,524 | 1,929 | 1,022 | 49 | 337 | 6,688 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | 855 | $ | 1,123 | $ | 1,644 | $ | 2,063 | $ | 1,322 | $ | 49 | $ | 337 | $ | 7,393 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,003 | $ | 1,859 | $ | 467 | $ | 8,139 | $ | 1,344 | $ | - | $ | - | $ | 23,812 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 124,594 | 221,102 | 57,471 | 106,575 | 131,640 | 1,564 | - | 642,946 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 136,597 | $ | 222,961 | $ | 57,938 | $ | 114,714 | $ | 132,984 | $ | 1,564 | $ | - | $ | 666,758 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 192 | $ | - | $ | - | $ | 325 | $ | 200 | $ | - | $ | - | $ | 717 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 622 | 985 | 1,068 | 2,472 | 1,102 | 54 | 19 | 6,322 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,876 | $ | 359 | $ | 2,107 | $ | 4,873 | $ | 7,995 | $ | - | $ | - | $ | 23,210 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 98,349 | 171,653 | 36,961 | 99,411 | 64,918 | 1,308 | - | 472,600 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 106,225 | $ | 172,012 | $ | 39,068 | $ | 104,284 | $ | 72,913 | $ | 1,308 | $ | - | $ | 495,810 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the balance in the allowance for covered loan losses and the recorded investment in covered loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | ||||||||||||||||||||||||||||||||||||
Covered loans: | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Collectively evaluated for impairment | - | - | - | - | 17 | 4 | - | 21 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | 4 | $ | - | $ | 21 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | 1,740 | $ | - | $ | - | $ | 1,740 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 36,755 | - | 36,755 | ||||||||||||||||||||||||||||||||||||||
Total ending loan balances | $ | - | $ | - | $ | - | $ | - | $ | 38,495 | $ | - | $ | - | $ | 38,495 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Collectively evaluated for impairment | - | 45 | - | - | - | 6 | - | 51 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 745 | $ | 2,145 | $ | - | $ | - | $ | 1,220 | $ | - | $ | - | $ | 4,110 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 858 | 4,369 | 1 | 1,097 | 41,180 | 81 | - | 47,586 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 1,603 | $ | 6,514 | $ | 1 | $ | 1,097 | $ | 42,400 | $ | 81 | $ | - | $ | 51,696 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||||||||
A modification is classified as a troubled debt restructuring (“TDR”) if both of the following exist: (1) the borrower is experiencing financial difficulty and (2) the Bank has granted a concession to the borrower. The Bank determines that a borrower may be experiencing financial difficulty if the borrower is currently delinquent on any of its debt, or if the Bank is concerned that the borrower may not be able to perform in accordance with the current terms of the loan agreement in the foreseeable future. Many aspects of the borrower’s financial situation are assessed when determining whether they are experiencing financial difficulty, particularly as it relates to commercial borrowers due to the complex nature of the loan structure, business/industry risk and borrower/guarantor structures. Concessions may include the reduction of an interest rate at a rate lower than current market rate for a new loan with similar risk, extension of the maturity date, reduction of accrued interest, or principal forgiveness. When evaluating whether a concession has been granted, the Bank also considers whether the borrower has provided additional collateral or guarantors and whether such additions adequately compensate the Bank for the restructured terms, or if the revised terms are consistent with those currently being offered to new loan customers. The assessments of whether a borrower is experiencing (or is likely to experience) financial difficulty and whether a concession has been granted is subjective in nature and management’s judgment is required when determining whether a modification is a TDR. | |||||||||||||||||||||||||||||||||||||||||
Although each occurrence is unique to the borrower and is evaluated separately, for all portfolio segments, TDRs are typically modified through reduction in interest rates, reductions in payments, changing the payment terms from principal and interest to interest only, and/or extensions in term maturity. | |||||||||||||||||||||||||||||||||||||||||
During the year ending December 31, 2014, there were no loans modified in troubled debt restructurings. No TDRs defaulted during the year ending December 31, 2014, which had been modified in the previous 12 months. | |||||||||||||||||||||||||||||||||||||||||
During 2013, we refinanced 15 loans to one borrower totaling $5.9 million secured by single family 1-4 residential properties with a loan in the amount of $5.2 million secured by a first deed of trust on the properties and a loan in the amount of $663 thousand secured by a second deed of trust on the properties which was charged off as of December 31, 2013. There is no commitment to lend additional funds to this borrower. During 2013, we modified one commercial real estate owner-occupied loan in a troubled debt restructuring with an unpaid principal balance of $708 thousand which was restructured by reducing the principal portion of the contractual principal and interest payment without modifying the interest rate. There is no additional commitment to lend to this borrower. | |||||||||||||||||||||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||||||||||
Through its system of internal controls Southern National evaluates and segments loan portfolio credit quality on a quarterly basis using regulatory definitions for Special Mention, Substandard and Doubtful. Special Mention loans are considered to be criticized. Substandard and Doubtful loans are considered to be classified. Southern National has no loans classified Doubtful. | |||||||||||||||||||||||||||||||||||||||||
Special Mention loans are loans that have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position. | |||||||||||||||||||||||||||||||||||||||||
Substandard loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||||||||||
Doubtful loans have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | |||||||||||||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, and based on the most recent analysis performed, the risk category of loans by class of loans was as follows (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Classified/ | Special | Classified/ | |||||||||||||||||||||||||||||||||||||||
Criticized (1) | Pass | Total | Mention | Substandard (3) | Pass | Total | Criticized | Pass | Total | ||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 917 | $ | 12,003 | $ | 123,677 | $ | 136,597 | $ | 12,920 | $ | 123,677 | $ | 136,597 | |||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | 234 | - | 222,727 | 222,961 | 234 | 222,727 | 222,961 | |||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 593 | 467 | 56,878 | 57,938 | 1,060 | 56,878 | 57,938 | |||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 30 | 8,139 | 106,545 | 114,714 | 8,169 | 106,545 | 114,714 | |||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,740 | 36,755 | 38,495 | 584 | 1,344 | 131,056 | 132,984 | 3,668 | 167,811 | 171,479 | |||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | 1,564 | 1,564 | - | 1,564 | 1,564 | |||||||||||||||||||||||||||||||
Total | $ | 1,740 | $ | 36,755 | $ | 38,495 | $ | 2,358 | $ | 21,953 | $ | 642,447 | $ | 666,758 | $ | 26,051 | $ | 679,202 | $ | 705,253 | |||||||||||||||||||||
31-Dec-13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Classified/ | Special | Classified/ | |||||||||||||||||||||||||||||||||||||||
Criticized (1) | Pass | Total | Mention | Substandard (3) | Pass | Total | Criticized | Pass | Total | ||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 745 | $ | 858 | $ | 1,603 | $ | 802 | $ | 7,876 | $ | 97,547 | $ | 106,225 | $ | 9,423 | $ | 98,405 | $ | 107,828 | |||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | 2,145 | 4,369 | 6,514 | - | 359 | 171,653 | 172,012 | 2,504 | 176,022 | 178,526 | |||||||||||||||||||||||||||||||
Construction and land development | - | 1 | 1 | 618 | 2,107 | 36,343 | 39,068 | 2,725 | 36,344 | 39,069 | |||||||||||||||||||||||||||||||
Commercial loans | - | 1,097 | 1,097 | 31 | 4,873 | 99,380 | 104,284 | 4,904 | 100,477 | 105,381 | |||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,220 | 41,180 | 42,400 | 176 | 7,995 | 64,742 | 72,913 | 9,391 | 105,922 | 115,313 | |||||||||||||||||||||||||||||||
Other consumer loans | - | 81 | 81 | - | - | 1,308 | 1,308 | - | 1,389 | 1,389 | |||||||||||||||||||||||||||||||
Total | $ | 4,110 | $ | 47,586 | $ | 51,696 | $ | 1,627 | $ | 23,210 | $ | 470,973 | $ | 495,810 | $ | 28,947 | $ | 518,559 | $ | 547,506 | |||||||||||||||||||||
(1) Credit quality is enhanced by a loss sharing agreement with the FDIC in the covered portfolio. The same credit quality indicators used in the non-covered portfolio are combined. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) Includes SBA guarantees of $4.7 million and $2.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Purchased Loans | |||||||||||||||||||||||||||||||||||||||||
The following table presents the carrying amount of purchased impaired and non-impaired loans from the GAB acquisition as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,280 | $ | 5,290 | $ | 6,570 | $ | 1,315 | $ | 6,802 | $ | 8,117 | |||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 1 | 1 | |||||||||||||||||||||||||||||||||||
Commercial loans | 200 | 497 | 697 | 207 | 890 | 1,097 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | - | 38,495 | 38,495 | - | 42,400 | 42,400 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | 72 | 72 | - | 81 | 81 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,480 | $ | 44,354 | $ | 45,834 | $ | 1,522 | $ | 50,174 | $ | 51,696 | |||||||||||||||||||||||||||||
The indemnification against losses in the non-single family portfolio on the GAB portfolio ended in December 2014. The FDIC indemnification on the GAB residential mortgages and home equity lines of credit continue for another five years. | |||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the Greater Atlantic acquisition were as follows for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 1,522 | $ | 6,854 | $ | 50,174 | $ | - | $ | 3,297 | $ | 8,001 | $ | 68,024 | |||||||||||||||||||||||||
Additions | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Accretion | - | - | (1,928 | ) | 1,928 | - | - | (1,656 | ) | 1,656 | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | 296 | - | - | - | 521 | - | |||||||||||||||||||||||||||||||||
Adjustment-transfer to OREO | - | (31 | ) | (375 | ) | - | (1,654 | ) | (12 | ) | (2,327 | ) | |||||||||||||||||||||||||||||
Payments received | - | - | (5,893 | ) | - | (121 | ) | - | (17,179 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,522 | $ | 5,191 | $ | 45,834 | $ | - | $ | 1,522 | $ | 6,854 | $ | 50,174 | |||||||||||||||||||||||||
The following table presents the carrying amount of purchased impaired and non-impaired loans from the HarVest acquisition as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 323 | $ | 14,224 | $ | 14,547 | $ | 358 | $ | 15,285 | $ | 15,643 | |||||||||||||||||||||||||||||
Construction and land development | 593 | 3,234 | 3,827 | 629 | 5,312 | 5,941 | |||||||||||||||||||||||||||||||||||
Commercial loans | - | 3,492 | 3,492 | - | 4,362 | 4,362 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 855 | 11,277 | 12,132 | 870 | 12,045 | 12,915 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | 3 | 3 | - | 8 | 8 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,771 | $ | 32,230 | $ | 34,001 | $ | 1,857 | $ | 37,012 | $ | 38,869 | |||||||||||||||||||||||||||||
Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the HarVest acquisition were as follows for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 1,857 | $ | 2,087 | $ | 37,012 | $ | - | $ | 1,912 | $ | 3,659 | $ | 50,090 | |||||||||||||||||||||||||
Additions | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Accretion | - | - | (869 | ) | 869 | - | - | (1,533 | ) | 1,533 | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustment-short sale | - | - | (39 | ) | 39 | ||||||||||||||||||||||||||||||||||||
Payments received | - | (86 | ) | - | (5,651 | ) | - | (55 | ) | - | (14,650 | ) | |||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,771 | $ | 1,218 | $ | 32,230 | $ | - | $ | 1,857 | $ | 2,087 | $ | 37,012 | |||||||||||||||||||||||||
The following table presents the carrying amount of purchased impaired and non-impaired loans from the Prince George’s Federal Savings Bank (PGFSB) acquisition as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 371 | $ | 3,306 | $ | 3,677 | |||||||||||||||||||||||||||||||||||
Construction and land development | 649 | 1,168 | 1,817 | ||||||||||||||||||||||||||||||||||||||
Commercial loans | - | 204 | 204 | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | - | 53,860 | 53,860 | ||||||||||||||||||||||||||||||||||||||
Other consumer loans | - | 225 | 225 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,020 | $ | 58,763 | $ | 59,783 | |||||||||||||||||||||||||||||||||||
Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the PGFSB acquisition were as follows for the year ended December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Additions | - | 642 | 3,121 | 61,190 | |||||||||||||||||||||||||||||||||||||
Accretion | - | - | (213 | ) | 213 | ||||||||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Disbursements | - | 388 | - | - | |||||||||||||||||||||||||||||||||||||
Adjustment-transfer to OREO | - | - | - | (285 | ) | ||||||||||||||||||||||||||||||||||||
Payments received | - | (10 | ) | - | (2,355 | ) | |||||||||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,020 | $ | 2,908 | $ | 58,763 |
FAIR_VALUE
FAIR VALUE | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
FAIR VALUE | 4. FAIR VALUE | ||||||||||||||||||||
ASC 820-10 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1: 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: 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: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability | |||||||||||||||||||||
The following is a description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: | |||||||||||||||||||||
Assets Measured on a Recurring Basis | |||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||
Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities would include U. S. agency securities, mortgage-backed securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of Southern National’s available-for-sale debt securities are considered to be Level 2 securities. | |||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,285 | $ | - | $ | 2,285 | $ | - | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,993 | $ | - | $ | 1,993 | $ | - | |||||||||||||
Assets and Liabilities Measured on a Non-recurring Basis: | |||||||||||||||||||||
Trust Preferred Securities Classified as Held-to-Maturity | |||||||||||||||||||||
The base input in calculating fair value is a Bloomberg Fair Value Index yield curve for single issuer trust preferred securities which correspond to the ratings of the securities we own. We also use composite rating indices to fill in the gaps where the bank rating indices did not correspond to the ratings in our portfolio. When a bank index that matches the rating of our security is not available, we used the bank index that most closely matches the rating, adjusted by the spread between the composite index that most closely matches the security’s rating and the composite index with a rating that matches the bank index used. Then, we use the adjusted index yield, which is further adjusted by a liquidity premium, as the discount rate to be used in the calculation of the present value of the same cash flows used to evaluate the securities for OTTI. The liquidity premiums were derived in consultation with a securities advisor. The liquidity premiums we used ranged from 2% to 5%, and the adjusted discount rates ranged from 8.91% to 13.95% at December 31, 2014. The liquidity premiums we used ranged from 2% to 5%, and the adjusted discount rates ranged from 10.97% to 14.97% at December 31, 2013. Due to current market conditions as well as the limited trading activity of these securities, the market value of the securities is highly sensitive to assumption changes and market volatility. We have determined that our trust preferred securities are classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||
Other Residential Collateralized Mortgage Obligation Classified as Held-to Maturity | |||||||||||||||||||||
The fair value was estimated within Level 2 fair value hierarchy, as the fair value is based on either pricing models, quoted market prices of securities with similar characteristics, or discounted cash flows. We have evaluated this security for potential impairment and, based on our review of the trustee report, shock analysis and current information regarding delinquencies, nonperforming loans and credit support, it has been determined that no OTTI charge for credit exists for the year ended December 31, 2014. The assumptions used in the analysis included a 6.3% prepayment speed, 1.4% default rate, a 72% loss severity and an accounting yield of 2.39%. | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Generally, we measure the impairment for impaired loans considering the fair value of the loan’s collateral (if the loan is collateral dependent). Fair value of the loan’s collateral is determined by an independent appraisal or evaluation less estimated costs related to selling the collateral. In some cases appraised value is net of costs to sell. Estimated selling costs range from 6% to 10% of collateral valuation at December 31, 2014 and 2013. Fair value is classified as Level 3 in the fair value hierarchy. Non-covered loans identified as impaired totaled $23.8 million (including SBA guarantees of $4.7 million and HarVest loans of $1.1 million) as of December 31, 2014 with an allocated allowance for loan losses totaling $705 thousand compared to a carrying amount of $23.2 million (including SBA guarantees of $2.4 million) with an allocated allowance for loan losses totaling $717 thousand at December 31, 2013. | |||||||||||||||||||||
Other Real Estate Owned (OREO) | |||||||||||||||||||||
OREO is evaluated at the time of acquisition and recorded at fair value as determined by independent appraisal or evaluation less cost to sell. In some cases appraised value is net of costs to sell. Selling costs have been in the range from 6% to 7.6% of collateral valuation at December 31, 2014 and December 31, 2013. Fair value is classified as Level 3 in the fair value hierarchy. OREO is further evaluated quarterly for any additional impairment. At December 31, 2014, the total amount of OREO was $13.1 million, all of which was non-covered. | |||||||||||||||||||||
At December 31, 2013, the total amount of OREO was $11.8 million, of which $9.6 million was non-covered and $2.2 million was covered. | |||||||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Impaired non-covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | $ | 11,852 | $ | 11,852 | |||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,859 | 1,859 | |||||||||||||||||||
Construction and land development | 347 | 347 | |||||||||||||||||||
Commercial loans | 8,005 | 8,005 | |||||||||||||||||||
Residential 1-4 family | 1,044 | 1,044 | |||||||||||||||||||
Impaired covered loans: | |||||||||||||||||||||
Residential 1-4 family | 1,740 | 1,740 | |||||||||||||||||||
Non-covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 461 | 461 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,792 | 1,792 | |||||||||||||||||||
Construction and land development | 6,818 | 6,818 | |||||||||||||||||||
Residential 1-4 family | 3,980 | 3,980 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Impaired non-covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | $ | 7,684 | $ | 7,684 | |||||||||||||||||
Commercial real estate - non-owner occupied (1) | 359 | 359 | |||||||||||||||||||
Construction and land development | 2,107 | 2,107 | |||||||||||||||||||
Commercial loans | 4,548 | 4,548 | |||||||||||||||||||
Residential 1-4 family | 7,795 | 7,795 | |||||||||||||||||||
Impaired covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | 745 | 745 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,145 | 2,145 | |||||||||||||||||||
Residential 1-4 family | 1,220 | 1,220 | |||||||||||||||||||
Non-covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 461 | 461 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,342 | 1,342 | |||||||||||||||||||
Construction and land development | 6,066 | 6,066 | |||||||||||||||||||
Residential 1-4 family | 1,710 | 1,710 | |||||||||||||||||||
Covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 557 | 557 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,450 | 1,450 | |||||||||||||||||||
Commercial | 79 | 79 | |||||||||||||||||||
Residential 1-4 family | 127 | 127 | |||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The carrying amount, estimated fair values and fair value hierarchy levels (previously defined) of financial instruments were as follows (in thousands): | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Hierarchy Level | Amount | Value | Amount | Value | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 38,320 | $ | 38,320 | $ | 20,856 | $ | 20,856 | ||||||||||||
Securities available for sale | See previous table | 2,285 | 2,285 | 1,993 | 1,993 | ||||||||||||||||
Securities held to maturity | Level 2 & Level 3 | 94,058 | 94,093 | 82,443 | 76,193 | ||||||||||||||||
Stock in Federal Reserve Bank and Federal | |||||||||||||||||||||
Home Loan Bank | n/a | 5,681 | n/a | 5,915 | n/a | ||||||||||||||||
Equity investment in mortgage affiliate | Level 3 | 3,631 | 3,631 | - | - | ||||||||||||||||
Preferred investment in mortgage affiliate | Level 3 | 1,805 | 1,805 | - | - | ||||||||||||||||
Net non-covered loans | Level 3 | 657,583 | 666,621 | 487,318 | 493,472 | ||||||||||||||||
Net covered loans | Level 3 | 38,475 | 43,663 | 51,650 | 57,564 | ||||||||||||||||
Accrued interest receivable | Level 2 & Level 3 | 2,904 | 2,904 | 2,186 | 2,186 | ||||||||||||||||
FDIC indemnification asset | Level 3 | 3,571 | 2,261 | 5,804 | 4,220 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Demand deposits | Level 1 | 94,578 | 94,578 | 68,940 | 68,940 | ||||||||||||||||
Money market and savings accounts | Level 1 | 181,452 | 181,452 | 147,854 | 147,854 | ||||||||||||||||
Certificates of deposit | Level 3 | 466,395 | 466,391 | 323,565 | 324,733 | ||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | Level 1 | 29,044 | 29,044 | 34,545 | 34,545 | ||||||||||||||||
FHLB advances | Level 3 | 25,000 | 25,526 | 30,250 | 31,168 | ||||||||||||||||
Accrued interest payable | Level 1 & Level 3 | 560 | 560 | 341 | 341 | ||||||||||||||||
Carrying amount is the estimated fair value for cash and cash equivalents, accrued interest receivable and payable, demand deposits, savings accounts, money market accounts, short-term debt, and variable rate loans that reprice frequently and fully. For fixed rate loans or deposits and for variable rate loans with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life. A discount for liquidity risk was not considered necessary in estimating the fair value of loans. It was not practicable to determine the fair value of Federal Reserve Bank and Federal Home Loan Bank stock due to restrictions placed on its transferability. Fair value of long-term debt is based on current rates for similar financing. The fair value of the FDIC indemnification asset was determined by discounting estimated future cash flows using the long-term risk free rate plus a premium and represents the present value of our current expectation for recoveries from the FDIC on covered loans. The fair value of off-balance-sheet items is not considered material. The fair value of loans is not presented on an exit price basis. |
BANK_PREMISES_AND_EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
BANK PREMISES AND EQUIPMENT | 5. BANK PREMISES AND EQUIPMENT | ||||||||
Bank premises and equipment as of December 31, 2014 and 2013 were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
Land | $ | 2,261 | $ | 1,520 | |||||
Building and improvements | 5,811 | 3,347 | |||||||
Leasehold improvements | 2,394 | 2,167 | |||||||
Furniture and equipment | 3,948 | 3,536 | |||||||
14,414 | 10,570 | ||||||||
Less accumulated depreciation and amortization | 4,961 | 4,246 | |||||||
Bank premises and equipment, net | $ | 9,453 | $ | 6,324 | |||||
Future minimum rental payments required under non-cancelable operating leases for bank premises that have initial or remaining terms in excess of one year as of December 31, 2014 are as follows (in thousands): | |||||||||
2015 | $ | 1,723 | |||||||
2016 | 1,021 | ||||||||
2017 | 982 | ||||||||
2018 | 720 | ||||||||
2019 | 452 | ||||||||
Thereafter | 742 | ||||||||
$ | 5,640 | ||||||||
The leases contain options to extend for periods of 2 to 6 years. Rental expense for 2014, 2013 and 2012 was $2.0 million, $2.0 million and $1.9 million, respectively. |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 6. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||
Goodwill | |||||||||||||
Goodwill is evaluated for impairment on an annual basis or more frequently if events or circumstances warrant. Goodwill is primarily related to the 2006 acquisition of 1st Service Bank. The acquisition of PGFSB in 2014 increased goodwill by $1.4 million. Our annual assessment timing is during the third calendar quarter. For the 2014 assessment, we performed a qualitative assessment to determine if it was more likely than not that the fair value of our single reporting unit is less than its carrying amount. We concluded that the fair value of our single reporting unit exceeded its carrying amount and that it was not necessary to perform the two-step test pursuant to ASC 350-20. Our qualitative assessment considered many factors including, but not limited to, our actual and projected operating performance and profitability, as well as consideration of recent bank merger and acquisition transaction metrics. No impairment was indicated in 2014 or 2013. | |||||||||||||
The changes in goodwill are presented in the following table (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of January 1 | $ | 9,160 | $ | 9,160 | |||||||||
PGFSB acquisition | 1,354 | - | |||||||||||
Balance as of December 31 | $ | 10,514 | $ | 9,160 | |||||||||
Acquired Intangible Assets | |||||||||||||
Acquired intangible assets were as follows at year end (in thousands): | |||||||||||||
31-Dec-14 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
Amortizable core deposit intangibles | $ | 7,477 | $ | (6,123 | ) | $ | 1,354 | ||||||
31-Dec-13 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
Amortizable core deposit intangibles | $ | 6,715 | $ | (5,902 | ) | $ | 813 | ||||||
Estimated amortization expense of intangibles for the years ended December 31 follows (in thousands): | |||||||||||||
2015 | $ | 262 | |||||||||||
2016 | 219 | ||||||||||||
2017 | 194 | ||||||||||||
2018 | 184 | ||||||||||||
2019 | 173 | ||||||||||||
Thereafter | 322 | ||||||||||||
$ | 1,354 |
FDIC_INDEMNIFICATION_ASSET
FDIC INDEMNIFICATION ASSET | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fdic Indemnification Asset [Abstract] | |||||||||
FDIC INDEMNIFICATION ASSET | 7. | FDIC INDEMNIFICATION ASSET | |||||||
The indemnification asset represents our estimate of future expected recoveries under the FDIC loss sharing arrangement for covered loans acquired in the Greater Atlantic Bank acquisition in 2009. The estimated fair value of the indemnification asset was $8.8 million at December 4, 2009, the date of acquisition. The following table presents changes in the indemnification asset for the periods indicated (in thousands): | |||||||||
2014 | 2013 | ||||||||
Balance as of January 1 | $ | 5,804 | $ | 6,735 | |||||
Payments from FDIC | (1,037 | ) | (1,017 | ) | |||||
Reforecasting adjustment (1) | 34 | 569 | |||||||
Accretion (amortization) | (1,230 | ) | (483 | ) | |||||
Balance as of December 31 | $ | 3,571 | $ | 5,804 | |||||
(1) Represents an increase in the carrying value of the indemnification asset resulting from increased reforecasted losses in individual covered loans and covered loan pools. | |||||||||
During 2014, and based on the actual historical losses on the loan pools over the previous 24 month period, expected losses on the acquired Greater Atlantic loans (the covered loans) were lower than previously forecasted which results in a lower expected recovery from the FDIC. As of December 31, 2014, we expect to recover $2.3 million from the FDIC under the indemnification agreement. The difference between the carrying amount of $3.6 million and the estimated recovery is being amortized over the remaining life of the indemnification agreement or the expected life of the loans, whichever is shorter. | |||||||||
There were two agreements with the FDIC, one for single family assets which is a 10 year agreement expiring in December 2019, and one for non-single family (commercial) assets which was a 5 year agreement which expired in December 2014. The current overstatement is due to improvements in the loss estimates in the single family covered loans. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||
DEPOSITS | 8. | DEPOSITS | |||||||||||||||||
The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2014 and 2013 was $69.4 million and $41.1 million, respectively. At December 31, 2014, the scheduled maturities of time deposits are as follows (in thousands): | |||||||||||||||||||
2015 | $ | 225,002 | |||||||||||||||||
2016 | 125,803 | ||||||||||||||||||
2017 | 63,585 | ||||||||||||||||||
2018 | 21,834 | ||||||||||||||||||
2019 | 29,971 | ||||||||||||||||||
Thereafter | 200 | ||||||||||||||||||
$ | 466,395 | ||||||||||||||||||
The following table sets forth the maturities of certificates of deposit of $250 thousand and over as of December 31, 2014 (in thousands): | |||||||||||||||||||
Within | 3 to 6 | 6 to 12 | Over 12 | ||||||||||||||||
3 Months | Months | Months | Months | Total | |||||||||||||||
$ | 7,871 | $ | 4,003 | $ | 8,813 | $ | 48,744 | $ | 69,431 | ||||||||||
As of December 31, 2014, we had brokered certificates of deposit in the amount of $77.0 million and brokered money market deposits of $10.2 million. At December 31, 2013, we had brokered certificates of deposit in the amount of $30.0 million, and we had brokered money market deposits of $10.2 million. |
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Abstract] | |||||||||||||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | 9 | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS | |||||||||||
Other short-term borrowings can consist of Federal Home Loan Bank (FHLB) overnight advances, other FHLB advances maturing within one year, federal funds purchased and securities sold under agreements to repurchase that mature within one year, which are secured transactions with customers or broker/dealers. Other short-term borrowings consist of the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
FHLB overnight advances | $ | 15,250 | $ | - | $ | - | |||||||
Other short-term FHLB advances maturing 1/14/2013 | - | - | 20,000 | ||||||||||
Other short-term FHLB advances maturing 1/27/2014 | 20,000 | - | |||||||||||
Other short-term FHLB advances maturing 7/25/2014 | 5,250 | - | |||||||||||
Securities sold under agreements to repurchase | 13,794 | 14,545 | 13,411 | ||||||||||
Total | $ | 29,044 | $ | 39,795 | $ | 33,411 | |||||||
Weighted average interest rate at year end | 0.65 | % | 0.38 | % | 0.37 | % | |||||||
For the periods ended December 31, 2014, 2013 and 2012: | |||||||||||||
Average outstanding balance | $ | 37,810 | $ | 17,259 | $ | 20,353 | |||||||
Average interest rate during the year | 0.51 | % | 0.6 | % | 0.59 | % | |||||||
Maximum month-end outstanding balance | $ | 66,852 | $ | 39,795 | $ | 33,411 | |||||||
Investment securities in the amount of $20.8 million and $23.3 million were pledged as collateral for securities sold under agreements to repurchase at December 31, 2014 and 2013, respectively. |
FEDERAL_HOME_LOAN_BANK_ADVANCE
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Advances From Federal Home Loan Banks [Abstract] | |||||||||
FEDERAL HOME LOAN BANK ADVANCES | 10. | FEDERAL HOME LOAN BANK ADVANCES | |||||||
At year end, advances from the Federal Home Loan Bank were as follows (in thousands): | |||||||||
2014 | 2013 | ||||||||
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 2.08% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 2.03% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2017 with a rate of 2.26% | 5,000 | 5,000 | |||||||
Total FHLB advances | $ | 25,000 | $ | 25,000 | |||||
Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances paid off earlier than maturity. Residential 1-4 family mortgage loans in the amount of approximately $39.0 million and $45.1 million were pledged as collateral for Federal Home Loan Bank of Atlanta (“FHLB”) advances as of December 31, 2014 and 2013, respectively. Home equity lines of credit (HELOCs) in the amount of approximately $24.3 million and $27.8 million were pledged as collateral for FHLB advances at December 31, 2014 and 2013, respectively. Commercial mortgage loans in the amount of approximately $134.9 million and $107.2 million were pledged as collateral for FHLB advances as of December 31, 2014 and 2013, respectively. Investment securities in the amount of $50.5 million and $35.8 million were pledged as collateral for FHLB advances at December 31, 2014 and 2013, respectively. | |||||||||
At December 31, 2014, Sonabank had available collateral to borrow an additional $143.0 million from the FHLB. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
INCOME TAXES | 11. | INCOME TAXES | |||||||||||
Net deferred tax assets consist of the following components as of December 31, 2014 and 2013 (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,570 | $ | 2,453 | |||||||||
Organization costs | 127 | 154 | |||||||||||
Unearned loan fees and other | 617 | 501 | |||||||||||
Net operating loss carryover | - | 92 | |||||||||||
Other real estate owned write-downs | 942 | 1,009 | |||||||||||
FDIC assisted transactions timing difference | 1,721 | 2,613 | |||||||||||
Other than temporary impairment charge | 2,454 | 2,435 | |||||||||||
Net unrealized loss on securities available for sale | 1,549 | 1,636 | |||||||||||
Purchase accounting | 1,340 | - | |||||||||||
Other | 745 | 630 | |||||||||||
Total deferred tax assets | 12,065 | 11,523 | |||||||||||
Deferred tax liabilities: | |||||||||||||
FDIC indemnification asset | 1,238 | 2,008 | |||||||||||
FDIC gain | - | 443 | |||||||||||
Purchase accounting | - | 562 | |||||||||||
Depreciation | 744 | 229 | |||||||||||
Total deferred tax liabilities | 1,982 | 3,242 | |||||||||||
Net deferred tax assets | $ | 10,083 | $ | 8,281 | |||||||||
No valuation allowance was deemed necessary on deferred tax assets in 2014 and 2013. Management believes that the realization of the deferred tax assets is more likely than not based on the expectation that Southern National will generate the necessary taxable income in future periods. | |||||||||||||
We have no unrecognized tax benefits and do not anticipate any increase in unrecognized benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals existed as of December 31, 2014 and 2013. Southern National and its subsidiary file a consolidated U. S. federal tax return, and Southern National files a Virginia state income tax return. Sonabank files a Maryland state income tax return. These returns are subject to examination by taxing authorities for all years after 2010. | |||||||||||||
The provision for income taxes consists of the following for the years ended December 31, 2014, 2013 and 2012 (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax expense | |||||||||||||
Federal | $ | 4,047 | $ | 2,852 | $ | 5,016 | |||||||
State | 125 | 82 | 121 | ||||||||||
Total current tax expense | 4,172 | 2,934 | 5,137 | ||||||||||
Deferred tax benefit | |||||||||||||
Federal | (394 | ) | 102 | (1,965 | ) | ||||||||
State | (24 | ) | - | (57 | ) | ||||||||
Total deferred tax expense (benefit) | (418 | ) | 102 | (2,022 | ) | ||||||||
Total income tax expense | $ | 3,754 | $ | 3,036 | $ | 3,115 | |||||||
The income tax expense differed from the amount of income tax determined by applying the U.S. Federal income tax rate of 34% to pretax income for the years ended December 31, 2014, 2013 and 2012 due to the following (in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed expected tax expense at statutory rate | $ | 3,821 | $ | 3,160 | $ | 3,293 | |||||||
Reduction in tax expense resulting from: | |||||||||||||
Income from bank-owned life insurance | (210 | ) | (202 | ) | (271 | ) | |||||||
Other, net | 143 | 78 | 93 | ||||||||||
Income tax expense | $ | 3,754 | $ | 3,036 | $ | 3,115 |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | |
Dec. 31, 2014 | ||
Compensation and Retirement Disclosure [Abstract] | ||
EMPLOYEE BENEFITS | 12. | EMPLOYEE BENEFITS |
Southern National has a 401(k) plan that allows employees to make pre-tax contributions for retirement. The 401(k) plan provides for discretionary matching contributions by Southern National. Expense for 2014, 2013 and 2012 was $102 thousand, $115 thousand and $78 thousand, respectively. | ||
A deferred compensation plan that covers two executive officers was established in 2007. Under the plan, the Bank pays each participant, or their beneficiary, the amount of compensation deferred plus accrued interest over 10 years, beginning with the individual’s retirement. A liability is accrued for the obligation under these plans. The expense incurred for the deferred compensation in 2014, 2013 and 2012 was $340 thousand, $225 thousand and $234 thousand, respectively. The deferred compensation liability was $1.6 million and $1.3 million as of December 31, 2014 and 2013, respectively. |
STOCK_BASED_COMPENSATION
STOCK- BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||
STOCK-BASED COMPENSATION | 13. | STOCK-BASED COMPENSATION | |||||||||||||||
In 2004, the Board of Directors adopted a stock option plan that authorized the reservation of up to 302,500 shares of common stock and provided for the granting of stock options to certain directors, officers and employees. The 2010 Stock Awards and Incentive Plan was approved by the Board of Directors in January 2010 and approved by the stockholders at the Annual Meeting in April 2010. The 2010 plan authorized the reservation of an additional 700,000 shares of common stock for the granting of stock awards. The options granted to officers and employees are incentive stock options and the options granted to non-employee directors are non-qualified stock options. The purpose of the plan is to afford key employees an incentive to remain in the employ of Southern National and to assist in the attracting and retaining of non-employee directors by affording them an opportunity to share in Southern National’s future success. Under the plan, the option’s price cannot be less than the fair market value of the stock on the grant date. The maximum term of the options is ten years and options granted may be subject to a graded vesting schedule. | |||||||||||||||||
Southern National granted 104,750 options during 2014. The fair value of each option granted is estimated on the date of grant using the Black-Scholes options-pricing model. The following weighted-average assumptions were used to value options granted in the years indicated: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life | 10 years | 10 years | 10 years | ||||||||||||||
Expected volatility | 29.3 | % | 34.21 | % | 35.64 | % | |||||||||||
Risk-free interest rate | 2.48 | % | 2.42 | % | 1.65 | % | |||||||||||
Weighted average fair value per option granted | $ | 2.88 | $ | 3.58 | $ | 3.63 | |||||||||||
Dividend yield | 2.55 | % | 1.29 | % | 0 | % | |||||||||||
The risk-free interest rate was developed using the U. S. Treasury yield curve for periods equal to the expected life of the options on the grant date. An increase in the risk-free interest rate will increase stock compensation expense on future option grants. The dividend yield has had a de minimis impact on the fair value of the awards given the recent initiation of the dividend and the amount. | |||||||||||||||||
A summary of the activity in the stock option plan for 2014 follows: | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Shares | Price | Term | (in thousands) | ||||||||||||||
Options outstanding, beginning of period | 631,075 | $ | 8.21 | ||||||||||||||
Granted | 104,750 | 10.47 | |||||||||||||||
Forfeited | (14,575 | ) | 8.38 | ||||||||||||||
Exercised | (100,200 | ) | 8.84 | ||||||||||||||
Options outstanding, end of period | 621,050 | $ | 8.49 | 6.4 | $ | 1,781 | |||||||||||
Vested or expected to vest | 621,050 | $ | 8.49 | 6.4 | $ | 1,781 | |||||||||||
Exercisable at end of period | 320,290 | $ | 7.98 | 4.8 | $ | 1,088 | |||||||||||
Stock-based compensation expense was $317 thousand, $284 thousand and $195 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
As of December 31, 2014, unrecognized compensation expense associated with stock options was $900 thousand which is expected to be recognized over a weighted average period of 3.3 years. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended | |
Dec. 31, 2014 | ||
Financial Instruments With Off Balance Sheet Risk [Abstract] | ||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 14 | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK |
Southern National is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve elements of credit and funding risk in excess of the amount recognized in the consolidated balance sheet. Letters of credit are written conditional commitments issued by Southern National 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. We had letters of credit outstanding totaling $8.4 million and $6.9 million as of December 31, 2014 and 2013, respectively. | ||
Our exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and letters of credit is based on the contractual amount of these instruments. We use the same credit policies in making commitments and conditional obligations as we do for on-balance sheet instruments. Unless noted otherwise, we do not require collateral or other security to support financial instruments with credit risk. | ||
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 are made predominately for adjustable rate loans, and generally have fixed expiration dates of up to three months or other termination clauses and usually require payment of a fee. Since many of the commitments may expire without being completely drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. | ||
At December 31, 2014 and 2013, we had unfunded lines of credit and undisbursed construction loan funds totaling $113.3 million and $105.8 million, respectively. We had no approved loan commitments as of December 31, 2014 and 2013. Virtually all of our unfunded lines of credit, undisbursed construction loan funds and approved loan commitments are variable rate. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
EARNINGS PER SHARE | 15 | EARNINGS PER SHARE | |||||||||||
The following is a reconciliation of the denominators of the basic and diluted EPS computations for 2014, 2013 and 2012 (in thousands, except per share data): | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Income | Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
For the year ended December 31, 2014 | |||||||||||||
Basic EPS | $ | 7,483 | 11,846 | $ | 0.63 | ||||||||
Effect of dilutive stock options and warrants | 81 | - | |||||||||||
Diluted EPS | $ | 7,483 | 11,927 | $ | 0.63 | ||||||||
For the year ended December 31, 2013 | |||||||||||||
Basic EPS | $ | 6,258 | 11,590 | $ | 0.54 | ||||||||
Effect of dilutive stock options and warrants | 37 | - | |||||||||||
Diluted EPS | $ | 6,258 | 11,627 | $ | 0.54 | ||||||||
For the year ended December 31, 2012 | |||||||||||||
Basic EPS | $ | 6,569 | 11,590 | $ | 0.57 | ||||||||
Effect of dilutive stock options and warrants | - | 6 | - | ||||||||||
Diluted EPS | $ | 6,569 | 11,596 | $ | 0.57 | ||||||||
There were 622,593 anti-dilutive options and warrants during 2014. There were 676,463 anti-dilutive options and warrants during 2013, and there were 589,361 anti-dilutive options and warrants during 2012. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||
REGULATORY MATTERS | 16 | REGULATORY MATTERS | |||||||||||||||||||||||
Southern National and its subsidiary bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory - and possibly additional discretionary - actions by regulators that, if undertaken, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action (PCA), we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. At December 31, 2014 and 2013, the most recent regulatory notifications categorized the Bank as well capitalized under regulatory framework for prompt corrective action. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require Southern National to maintain minimum amounts and ratios of Total and Tier I capital (as defined in the regulations) to average assets (as defined). Management believes, as of December 31, 2014, that Southern National meets all capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
The capital amounts and ratios for Southern National and Sonabank at year end are presented in the following table (in thousands): | |||||||||||||||||||||||||
Required | |||||||||||||||||||||||||
For Capital | To Be Categorized as | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Well Capitalized | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Southern National | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 105,107 | 15.19 | % | $ | 27,671 | 4 | % | $ | 41,507 | 6 | % | |||||||||||||
Total risk-based capital ratio | 112,521 | 16.27 | % | 55,343 | 8 | % | 69,179 | 10 | % | ||||||||||||||||
Leverage ratio | 105,107 | 11.8 | % | 35,623 | 4 | % | 44,529 | 5 | % | ||||||||||||||||
Sonabank | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 104,007 | 15.04 | % | $ | 27,658 | 4 | % | $ | 41,487 | 6 | % | |||||||||||||
Total risk-based capital ratio | 111,421 | 16.11 | % | 55,316 | 8 | % | 69,145 | 10 | % | ||||||||||||||||
Leverage ratio | 104,007 | 11.68 | % | 35,609 | 4 | % | 44,511 | 5 | % | ||||||||||||||||
2013 | |||||||||||||||||||||||||
Southern National | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 99,700 | 18.56 | % | $ | 21,489 | 4 | % | $ | 32,234 | 6 | % | |||||||||||||
Total risk-based capital ratio | 106,406 | 19.81 | % | 42,978 | 8 | % | 53,723 | 10 | % | ||||||||||||||||
Leverage ratio | 99,700 | 14.22 | % | 28,038 | 4 | % | 35,048 | 5 | % | ||||||||||||||||
Sonabank | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 98,958 | 18.43 | % | $ | 21,478 | 4 | % | $ | 32,217 | 6 | % | |||||||||||||
Total risk-based capital ratio | 105,660 | 19.68 | % | 42,956 | 8 | % | 53,695 | 10 | % | ||||||||||||||||
Leverage ratio | 98,958 | 14.12 | % | 28,027 | 4 | % | 35,034 | 5 | % | ||||||||||||||||
Southern National’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. During 2015, the Bank could, without prior approval, declare dividends of approximately $14.0 million plus any 2015 net profits retained to the date of the dividend declaration. |
FDICASSISTED_ACQUISITION
FDIC-ASSISTED ACQUISITION | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
FDIC-ASSISTED ACQUISITION | 17. FDIC-ASSISTED ACQUISITION | ||||
On April 27, 2012, Sonabank entered into an agreement with the Federal Deposit Insurance Corporation (“FDIC”) to assume all of the deposits and certain assets of HarVest Bank of Maryland (“HarVest”) a state chartered non-Federal Reserve member commercial bank. HarVest operated four branches – North Rockville, Frederick, Germantown and Bethesda (all located in Maryland). | |||||
The assets and liabilities were recorded at their estimated fair values as of the April 27, 2012 acquisition date. A summary of the net assets acquired from the FDIC is as follows (in thousands): | |||||
Assets | |||||
Cash and cash equivalents | $ | 21,704 | |||
Consideration from the FDIC | 25,553 | ||||
Investment securities | 38,379 | ||||
Loans | 64,966 | ||||
Loans held for sale | 7,568 | ||||
Federal Home Loan Bank stock | 1,167 | ||||
Other real estate owned | 750 | ||||
Core deposit intangible | 179 | ||||
Other assets | 576 | ||||
Total assets acquired | $ | 160,842 | |||
Liabilities | |||||
Deposits | $ | 140,484 | |||
FHLB advances | 16,738 | ||||
Other liabilities | 136 | ||||
Total liabilities | $ | 157,358 | |||
Net assets acquired (bargain purchase gain) | $ | 3,484 | |||
A valuation of the acquired loans and core deposit intangible was performed with the assistance of a third-party valuation consultant. The unpaid principal balance and fair value of performing loans was $67.4 million and $63.0 million, respectively. The discount of $4.4 million will be accreted through interest income over the life of the loans in accordance with Accounting Standards Codification (ASC) Topic 310-20. The unpaid principal balance and estimated fair value of acquired and retained non-performing loans was $5.3 million and $1.9 million, respectively. In accordance with ASC 310-30, the discount of $3.4 million for these credit impaired loans will not be accreted. | |||||
Because HarVest was a distressed financial institution that was seized by the FDIC, certain historical operating information is not available to us and the preparation of pro forma operating disclosures is not practicable. | |||||
The application of the acquisition method of accounting resulted in the recognition of a bargain purchase gain of $3.5 million, and the bargain purchase gain is equal to the amount by which the fair value of the net assets acquired exceeded the consideration transferred and is influenced significantly by the FDIC-assisted transaction process. However, the acquired loans in the HarVest transaction are not covered by an indemnification agreement with the FDIC. |
ACQUISTIONS
ACQUISTIONS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
ACQUISTIONS | 18. ACQUISTIONS | ||||
The merger with Prince George’s Federal Savings Bank (PGFSB) was completed on August 1, 2014, and allowed Southern National to expand its presence in Maryland. Southern National acquired PGFSB in a cash and stock transaction. PGFSB was founded in 1931 and is headquartered in Upper Marlboro, which is the County Seat of Prince George’s County, Maryland. Prince George’s FSB has four offices, all of which are in Maryland, including a main office in Upper Marlboro and three branch offices in Dunkirk, Brandywine and Huntingtown. Prince George’s FSB has an excellent core deposit base reflecting its tenure in the communities it serves, and its lending activities have historically been focused on residential mortgages which make up the vast majority of loans acquired. | |||||
The acquisition was accounted for under the acquisition method of accounting. The assets and liabilities were recorded at their estimated fair values as of the August 1, 2014 acquisition date. Total consideration for the acquisition included cash paid to PGFSB shareholders of $5.749 million and 525,858 shares of Southern National common stock in the amount of $5.748 million. A summary of the net assets acquired is as follows (in thousands): | |||||
Total purchase price | $ | 11,497 | |||
Fair value of assets acquired: | |||||
Cash on hand and in banks | $ | 28,179 | |||
Loans | 61,832 | ||||
Loans held for sale | 3,499 | ||||
Land and buildings | 3,023 | ||||
Deferred tax asset | 1,877 | ||||
Other assets | 1,022 | ||||
Core deposit intangible | 761 | ||||
Total assets acquired | $ | 100,193 | |||
Fair value of liabilities assumed: | |||||
Noninterest-bearing deposits | $ | 19,233 | |||
Interest-bearing deposits | 69,995 | ||||
Other liabilities | 822 | ||||
Total liabilities assumed | $ | 90,050 | |||
Net assets acquired | $ | 10,143 | |||
Goodwill | 1,354 | ||||
$ | 11,497 | ||||
A valuation of the acquired loans and core deposit intangible was performed with the assistance of a third-party valuation consultant. The unpaid principal balance and fair value of performing loans was $64.2 million and $61.2 million, respectively. The discount of $3.0 million will be accreted through interest income over the life of the loans in accordance with Accounting Standards Codification (ASC) topic 310-20. The unpaid principal balance and estimated fair value of acquired and retained non-performing loans was $1.5 million and $682 thousand, respectively. The discount of $790 thousand for these credit impaired loans will not be accreted in accordance with ASC 310-30. We also acquired nonperforming loans with an unpaid principal balance of $5.5 million and a fair value of $3.5 million which were sold immediately after acquisition for the fair value amount. | |||||
Merger costs related to the PGFSB acquisition were $445 thousand, consisting primarily of legal, investment banking and data processing expenses. We recorded goodwill in the amount of $1.4 million which is the difference between the total purchase price and the net assets acquired and is not deductible for income tax purposes. | |||||
Loan related interest income generated from PGFSB was approximately $1.5 million for the year to date period or 5 months since the acquisition. | |||||
The PGFSB branches have been integrated into the Sonabank branch system. | |||||
On May 15, 2014, Southern National Bancorp of Virginia Inc., Jerry Flowers of Southern Trust Mortgage (STM), and Eastern Virginia Bankshares (EVB), the holding company for EVB, completed the purchase of the 62 percent of STM previously owned by Middleburg Bank. Jerry Flowers and other STM executives now own 51.1 percent of STM, Sonabank owns 44 percent and EVB owns 4.9 percent. | |||||
Sonabank’s equity method investment in STM totaled $3.2 million. Sonabank also acquired 1.8 million shares of preferred stock in the amount of $1.8 million in STM with an annual dividend yield of 7.5%. |
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION | 19. PARENT COMPANY FINANCIAL INFORMATION | ||||||||||||
Condensed financial information of Southern National Bancorp of Virginia, Inc. follows (in thousands): | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Cash | $ | 769 | $ | 465 | |||||||||
Investment in subsidiary | 112,879 | 105,872 | |||||||||||
Other assets | 331 | 277 | |||||||||||
Total assets | $ | 113,979 | $ | 106,614 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Stockholders’ equity: | |||||||||||||
Common stock | $ | 122 | $ | 116 | |||||||||
Additional paid in capital | 104,072 | 97,127 | |||||||||||
Retained earnings | 12,805 | 12,561 | |||||||||||
Accumulated other comprehensive loss | (3,020 | ) | (3,190 | ) | |||||||||
Total stockholders’ equity | 113,979 | 106,614 | |||||||||||
Total liabilities and stockholders’ equity | $ | 113,979 | $ | 106,614 | |||||||||
CONDENSED STATEMENTS OF INCOME | |||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||||
(in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equity in undistributed net income of subsidiary | $ | 7,590 | $ | 6,370 | $ | 6,680 | |||||||
Other operating expenses | 162 | 170 | 168 | ||||||||||
Income before income taxes | 7,428 | 6,200 | 6,512 | ||||||||||
Income tax benefit | (55 | ) | (58 | ) | (57 | ) | |||||||
Net income | $ | 7,483 | $ | 6,258 | $ | 6,569 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||||
( in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating activities: | |||||||||||||
Net income | $ | 7,483 | $ | 6,258 | $ | 6,569 | |||||||
Adjustments to reconcile net income to net cash and | |||||||||||||
cash equivalents provided by operating activities: | |||||||||||||
Equity in undistributed net income of subsidiary | (7,590 | ) | (6,370 | ) | (6,680 | ) | |||||||
Other, net | 264 | 277 | 142 | ||||||||||
Net cash and cash equivalents provided by operating activities | 157 | 165 | 31 | ||||||||||
Investing activities: | |||||||||||||
Dividend from bank subsidiary | 6,500 | 2,680 | - | ||||||||||
Net cash and cash equivalents provided by investing activities | 6,500 | 2,680 | - | ||||||||||
Financing activities: | |||||||||||||
Issuance of common stock | 886 | 3 | - | ||||||||||
Dividend payment on common stock | (7,239 | ) | (2,898 | ) | (2,840 | ) | |||||||
Net cash and cash equivalents used in financing activities | (6,353 | ) | (2,895 | ) | (2,840 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 304 | (50 | ) | (2,809 | ) | ||||||||
Cash and cash equivalents at beginning of period | 465 | 515 | 3,324 | ||||||||||
Cash and cash equivalents at end of period | $ | 769 | $ | 465 | $ | 515 |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statement Of Other Comprehensive Income [Abstract] | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 20. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
The following is a summary of the accumulated other comprehensive loss balances, net of tax (in thousands): | |||||||||||||
Balance at | Current Period | Balance at | |||||||||||
31-Dec-13 | Change | 31-Dec-14 | |||||||||||
Unrealized gains (losses) on securities available for sale | $ | (203 | ) | $ | 197 | $ | (6 | ) | |||||
Unrecognized loss on securities held to maturity for which other than | |||||||||||||
temporary impairment charges have been taken | (2,535 | ) | 23 | (2,512 | ) | ||||||||
Unrealized loss on securities available for sale transferred to held to maturity | (452 | ) | (50 | ) | (502 | ) | |||||||
. | |||||||||||||
Total | $ | (3,190 | ) | $ | 170 | $ | (3,020 | ) |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
QUARTERLY FINANCIAL DATA (UNAUDITED) | 21. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||
Interest | Net Interest | Income | Net | Earnings Per Share | |||||||||||||||||||||
Income | Income | Before Taxes | Income | Basic | Diluted | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
First quarter | $ | 8,641 | $ | 7,587 | $ | 2,434 | $ | 1,642 | $ | 0.14 | $ | 0.14 | |||||||||||||
Second quarter | 8,926 | 7,859 | 2,733 | 1,772 | 0.15 | 0.15 | |||||||||||||||||||
Third quarter | 9,984 | 8,812 | 3,157 | 2,108 | 0.18 | 0.17 | |||||||||||||||||||
Fourth quarter | 10,541 | 9,160 | 2,914 | 1,961 | 0.16 | 0.16 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
First quarter | $ | 9,023 | $ | 7,770 | $ | 2,262 | $ | 1,526 | $ | 0.13 | $ | 0.13 | |||||||||||||
Second quarter | 8,549 | 7,374 | 2,299 | 1,555 | 0.13 | 0.13 | |||||||||||||||||||
Third quarter | 8,847 | 7,724 | 2,641 | 1,780 | 0.15 | 0.15 | |||||||||||||||||||
Fourth quarter | 8,697 | 7,580 | 2,092 | 1,397 | 0.12 | 0.12 |
ORGANIZATION_AND_SIGNIFICANT_A1
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The consolidated financial statements include the accounts of Southern National and its wholly owned subsidiary. Southern National is a bank holding company that owns all of the outstanding common stock of its banking subsidiary, Sonabank. 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 U. S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Material estimates that are particularly susceptible to significant change in the near term include: the determination of the allowance for loan losses, the fair value of investment securities, other than temporary impairment of investment securities, the valuation of goodwill and intangible assets, fair value measurements related to assets acquired and liabilities assumed from business combinations, the FDIC indemnification asset, mortgage servicing rights, other real estate owned and deferred tax assets. | |
Investment Securities | Investment Securities |
Debt securities that Southern National has the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at amortized cost. | |
Securities classified as available for sale are those debt and equity securities that may be sold in response to changes in interest rates, liquidity needs or other similar factors. Securities available for sale are carried at fair value, with unrealized gains or losses net of deferred taxes, included in accumulated other comprehensive income (loss) in stockholders’ equity. | |
Purchased premiums and discounts are recognized in interest income using the interest method over the terms of the securities without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on the sale of securities are recorded on the settlement date and are determined using the specific identification method. | |
Southern National purchases amortizing investment securities in which the underlying assets are residential mortgage loans subject to prepayments. The actual principal reduction on these assets varies from the expected contractual principal reduction due to principal prepayments resulting from the borrowers’ election to refinance the underlying mortgage based on market and other conditions. The purchase premiums and discounts associated with these assets are amortized or accreted to interest income over the estimated life of the related assets. The estimated life is calculated by projecting future prepayments and the resulting principal cash flows until maturity. Prepayment rate projections utilize actual prepayment speed experience and available market information on like-kind instruments. The prepayment rates form the basis for income recognition of premiums and discounts on the related assets. Changes in prepayment estimates may cause the earnings recognized on these assets to vary over the term that the assets are held, creating volatility in the net interest margin. Prepayment rate assumptions are monitored and updated monthly to reflect actual activity and the most recent market projections. | |
Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | |
In order to determine OTTI for purchased beneficial interests that, on the purchase date, were not highly rated, Southern National compares the present value of the remaining cash flows as estimated at the preceding evaluation date to the current expected remaining cash flows. OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. | |
Loans | Loans |
Southern National provides mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by non-residential mortgage loans throughout its market area. The ability of Southern National’s debtors to honor their contracts is in varying degrees dependent upon the real estate market conditions and general economic conditions in this area. | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for the allowance for loan losses, purchase premiums and discounts and any deferred loan fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method without anticipating prepayments. | |
As part of the Greater Atlantic acquisition, the Bank and the FDIC entered into a loss sharing agreement on approximately $143.4 million (cost basis) of Greater Atlantic Bank’s assets. The Bank will share in the losses on the loans and foreclosed loan collateral with the FDIC as specified in the loss sharing agreement; we refer to these assets collectively as “covered assets.” The indemnification against losses in the commercial portfolio on the GAB portfolio ended in December 2014. The FDIC indemnification on the GAB residential mortgages and the GAB HELOCS continues for another five years. Loans that are not covered in the loss sharing agreement are referred to as “non-covered loans.” | |
The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in process of collection. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal and interest is considered doubtful. | |
All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Most of Southern National’s business activity is with customers located within Virginia and Maryland. Therefore, our exposure to credit risk is significantly affected by changes in the economy in those areas. We are not dependent on any single customer or group of customers whose insolvency would have a material adverse effect on operations. | |
Southern National has purchased, primarily through acquisitions, individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased loans are recorded at fair value such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Purchased credit impaired loans are accounted for using the expected cash flow methodology, and purchased performing loans are accounted for using the contractual cash flow methodology. | |
Such purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. Southern National estimates the amount and timing of expected cash flows for each purchased credit impaired loan or pool, and the expected cash flows in excess of fair value are recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loans’ or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). | |
Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. | |
In accordance with Accounting Standards Codification 310-30, and based on current information and events, if it becomes probable that there is a significant increase in cash flows previously expected to be collected or if actual cash flows are significantly greater than cash flows previously expected, the Bank will recalculate the amount of accretable yield for the acquired loans as the excess of the revised cash flows expected to be collected over the sum of (1) the initial investment in the loans less (2) cash collected less (3) write downs, if any plus (4) the amount of yield accreted to date. The amount of accretable yield will be adjusted by reclassification from non-accretable yield. This adjustment would be accounted for as a change in estimate with the amount of periodic accretion adjusted over the remaining life of the loans. | |
Allowance for Loan and Lease Losses (ALLL) | Allowance for Loan and Lease Losses (ALLL) |
The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the collection of the principal is unlikely. Recoveries of amounts previously charged-off are credited to the allowance. | |
Management’s determination of the adequacy of the allowance is based on a three year historical average net loss experience for each portfolio segment adjusted for current industry and economic conditions and estimates of their effect on loan collectability. While management uses available information to estimate losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, particularly those affecting real estate values. | |
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component provides for estimated losses in unimpaired loans and is based on historical loss experience adjusted for current factors. | |
A loan is considered impaired when, based on current information and events, it is probable that Southern National will be unable to collect the scheduled payments of principal or interest when due according to the terms of the loan. 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 by either the present value of 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. | |
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual net loss history experienced by Southern National over the most recent three years. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: owner occupied commercial real estate, non-owner occupied commercial real estate, construction and land development, commercial loans, 1-4 family residential, and other consumer. While underwriting practices in this environment are more stringent, the bank estimates the effect of internal factors on future net loss experience to be negligible. Management’s estimate of the effect of current external economic environmental conditions on future net loss experience is significant in all loan segments and particularly on loans secured by real estate including single family 1-4, non-owner occupied commercial real estate and construction and land development loans. These factors include excess inventory, generally less demand driven in part by fewer qualified borrowers and buyers. These considerations have played a significant role in management’s estimate of the adequacy of the allowance for loan and lease losses. | |
Commercial real estate consists of borrowings secured by owner-occupied and non-owner-occupied commercial real estate. Repayment of these loans is dependent upon rental income or the subsequent sale of the property for loans secured by non-owner-occupied commercial real estate and by cash flows from business operations for owner-occupied commercial real estate. Loans for which the source of repayment is rental income are primarily impacted by local economic conditions which dictate occupancy rates and the amount of rent charged. Commercial real estate loans that are dependent on cash flows from operations can also be adversely affected by current market conditions for their product or service. | |
Construction and land development primarily consist of borrowings to purchase and develop raw land into residential and non-residential properties. Construction loans are extended to individuals as well as corporations for the construction of an individual or multiple properties and are secured by raw land and the subsequent improvements. Repayment of the loans to real estate developers is dependent upon the sale or lease of properties to third parties in a timely fashion upon completion. Should there be delays in construction or a downturn in the market for those properties, there may be significant erosion in value which may be absorbed by Southern National. | |
Commercial loans consist of borrowings for commercial purposes to individuals, corporations, partnerships, sole proprietorships, and other business enterprises. Commercial loans are generally secured by business assets such as equipment, accounts receivable, inventory, or any other asset excluding real estate and generally made to finance capital expenditures or operations. Southern National’s risk exposure is related to deterioration in the value of collateral securing the loan should foreclosure become necessary. Generally, business assets used or produced in operations do not maintain their value upon foreclosure which may require Southern National to write-down the value significantly to sell. | |
Residential real estate loans consist of loans to individuals for the purchase of primary residences with repayment primarily through wage or other income sources of the individual borrower. Southern National’s loss exposure to these loans is dependent on local market conditions for residential properties as loan amounts are determined, in part, by the fair value of the property at origination. | |
Other consumer loans are comprised of loans to individuals both unsecured and secured and open-end home equity loans secured by real estate, with repayment dependent on individual wages and other income. The risk of loss on consumer loans is elevated as the collateral securing these loans, if any, rapidly depreciate in value or may be worthless and/or difficult to locate if repossession is necessary. Losses in this portfolio are generally relatively low, however, due to the small individual loan size and the balance outstanding as a percentage of Southern National’s entire portfolio. | |
Transfers of Financial Assets | Transfers of Financial Assets |
Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from Southern National, 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 Southern National does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Equity Method Investments | Equity Method Investments |
Southern National’s investment in Southern Trust Mortgage (“STM”) is being accounted for under the equity method. Under the equity method, the carrying value of Southern National’s investment in STM was originally recorded at cost but is adjusted periodically to record Southern National’s proportionate share of STM’s earnings or losses through noninterest income and decreased by the amount of cash dividends or similar distributions received from STM. | |
Bank Premises and Equipment | Bank Premises and Equipment |
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Buildings and related components are depreciated using the straight line method with useful lives of 30 years. Furniture, fixtures and equipment are depreciated using the straight-line method with useful lives ranging from 3 to 10 years. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term. | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets |
Goodwill resulting from business combinations prior to January 1, 2009 represents the excess of the purchase price over the fair value of the net assets of businesses acquired. Goodwill resulting from business combinations after January 1, 2009, is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. Southern National has selected August 31 as the date to perform the annual goodwill impairment assessment. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. | |
Other intangible assets consist of core deposit intangible assets arising from whole bank and branch acquisitions and are amortized over their estimated useful lives, which range from 6 to 15 years. | |
Stock Based Compensation | Stock Based Compensation |
Compensation cost is recognized for stock options issued to employees, based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. | |
Bank-owned Life Insurance | Bank-owned Life Insurance |
Southern National has purchased life insurance policies on certain key executives. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |
Other Real Estate Owned | Other Real Estate Owned |
Assets acquired through or instead of foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, the direct charge-off method is recorded through expense. Operating costs after acquisition are expensed. | |
Stock in Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) | Stock in Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) |
The Bank is a member of the FHLB system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. We are also required to own FRB stock with a par value equal to 6% of capital. FHLB stock and FRB stock are carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Premises and equipment, core deposit intangible assets, the FDIC indemnification asset and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. | |
FDIC Indemnification Asset | FDIC Indemnification Asset |
The acquisition of Greater Atlantic Bank (GAB) on December 4, 2009 was accounted for under the acquisition method of accounting, and the assets and liabilities were recorded at their estimated fair values. The FDIC indemnification asset was measured separately from each of the covered asset categories as it is not contractually embedded in any of the covered asset categories. The indemnification asset represents the present value of cash flows expected to be received from the FDIC for future losses on covered assets based on the expected credit losses estimated for each covered loan or loan pool and the loss sharing percentages at the acquisition date. Cash flows are discounted at a market-based rate to reflect the uncertainty of the timing of the loss sharing reimbursement from the FDIC. The ultimate collectability of this asset is dependent upon the performance of the underlying covered assets, the passage of time and claims paid by the FDIC. We acquired the Greater Atlantic loans in December 2009 and continuously evaluate our estimates of expected losses on these loans. During 2014, and based on the actual historical losses on the loan pools over the previous 24 month period, expected losses on the acquired Greater Atlantic loans (the covered loans) were lower than previously forecasted which results in a lower expected recovery from the FDIC. As of December 31, 2014, we expect to recover $2.3 million from the FDIC under the indemnification agreement. The difference between the carrying amount of $3.6 million and the estimated recovery is being amortized over the remaining life of the indemnification agreement or the expected life of the loans, whichever is shorter. There were two agreements with the FDIC, one for single family assets which is a 10 year agreement expiring in December 2019, and one for non-single family (commercial) assets which was a 5 year agreement which expired in December 2014. The current overstatement is due to improvements in the loss estimates in the single family covered loans. | |
Retirement Plans | Retirement Plans |
Employee 401(k) plan expense is the amount of matching contributions. Supplemental retirement plan expense allocates the benefits over years of service. | |
Loss Contingencies | Loss Contingencies |
Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements. | |
Dividend Restriction | Dividend Restriction |
Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. | |
Estimates and Uncertainties | Estimates and Uncertainties |
Estimates including the fair value of financial instruments, other than temporary impairment, the provision for loan losses, expected loan performance and recoveries from the FDIC, and the evaluation of the recoverability of goodwill and intangible assets involve uncertainties and matters of significant judgment regarding interest rates, credit risk, repayments and prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Operating Segments | Operating Segments |
While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Discrete financial information is not available other than on a company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. | |
Reclassifications | Reclassifications |
Certain items in the prior year financial statements were reclassified to conform to the current presentation. Gains and losses on OREO have been reclassified from noninterest income to noninterest expenses in the Consolidated Statements of Income and Comprehensive Income. | |
Income Taxes | Income Taxes |
Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |
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. We have no unrecognized tax benefits and do not anticipate any increase in unrecognized benefits during the next twelve months. Should the accrual of any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to record such accruals in our income tax accounts; no such accruals exist as of December 31, 2014. Southern National and its subsidiary file a consolidated U. S. federal tax return; Sonabank files a Maryland state income tax return and Southern National files a Virginia state income tax return. These returns are subject to examination by taxing authorities for all years after 2010. | |
Restrictions on Cash | Restrictions on Cash |
Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements in the amount of $1.5 million and $1.8 million at December 31, 2014 and 2013, respectively. | |
Consolidated Statements of Cash Flows | Consolidated Statements of Cash Flows |
For purposes of reporting cash flows, Southern National defines cash and cash equivalents as cash due from banks and interest-bearing deposits in other banks with maturities less than 90 days. Net cash flows are reported for customer loan and deposit transactions and short-term borrowings. | |
Earnings Per Share | Earnings Per Share |
Basic earnings per share (“EPS”) are computed by dividing net income by the weighted average number of common shares outstanding during the year. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by SNBV relate solely to outstanding stock options and warrants and are determined using the treasury stock method. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) |
Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and the non-credit component of other than temporary impairment of securities held-to-maturity which are also recognized as a separate component of equity. | |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments |
In the ordinary course of business, Southern National has entered into commitments to extend credit and standby letters of credit. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In January 2014, the FASB issued ASU No. 2014-04, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” The objective of this guidance is to clarify when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU No. 2014-04 states that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, ASU No. 2014-04 requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU No. 2014-04 is effective for interim and annual reporting periods beginning after December 15, 2014. The adoption of ASU No. 2014-04 is not expected to have a material impact on the Southern National’s Consolidated Financial Statements. | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). These amendments affect any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (e.g. insurance contracts or lease contracts). This ASU will supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance, and creates a Topic 606, Revenue from Contracts with Customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU will be effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The ASU allows for either full retrospective or modified retrospective adoption. SNBV is assessing the effects of this ASU, which exclude financial instruments from its scope, but does not anticipate that it will have a material impact on its financial position or results of operations. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.” This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of ASU No. 2014-11 is not expected to have a material impact on the Southern National’s Consolidated Financial Statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved After the Requisite Service Period. The amendments clarify the proper method of accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Management does not anticipate that this ASU will significantly impact SNBV. |
SECURITIES_Tables
SECURITIES (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||
Schedule of amortized cost and fair value of securities available-for-sale | ||||||||||||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,295 | $ | - | $ | (10 | ) | $ | 2,285 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,302 | $ | - | $ | (309 | ) | $ | 1,993 | |||||||||||||||||||||||||
Schedule of amortized cost, unrecognized gains and losses, and fair value of held to maturity securities | ||||||||||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-14 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 22,897 | $ | 708 | $ | (8 | ) | $ | 23,597 | |||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 3,564 | - | (53 | ) | 3,511 | |||||||||||||||||||||||||||||
Government-sponsored agency securities | 44,949 | 294 | (822 | ) | 44,421 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 15,531 | 108 | (145 | ) | 15,494 | |||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 599 | - | - | 599 | ||||||||||||||||||||||||||||||
Trust preferred securities | 6,518 | 1,527 | (1,574 | ) | 6,471 | |||||||||||||||||||||||||||||
$ | 94,058 | $ | 2,637 | $ | (2,602 | ) | $ | 94,093 | ||||||||||||||||||||||||||
Amortized | Gross Unrecognized | Fair | ||||||||||||||||||||||||||||||||
31-Dec-13 | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 25,609 | $ | 673 | $ | (294 | ) | $ | 25,988 | |||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 4,295 | 2 | (349 | ) | 3,948 | |||||||||||||||||||||||||||||
Government-sponsored agency securities | 29,971 | - | (3,994 | ) | 25,977 | |||||||||||||||||||||||||||||
Obligations of states and political subdivisions | 14,388 | - | (987 | ) | 13,401 | |||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 659 | - | (12 | ) | 647 | |||||||||||||||||||||||||||||
Trust preferred securities | 7,521 | 939 | (2,228 | ) | 6,232 | |||||||||||||||||||||||||||||
$ | 82,443 | $ | 1,614 | $ | (7,864 | ) | $ | 76,193 | ||||||||||||||||||||||||||
Schedule of fair value and carrying amount, if different, of debt securities, by contractual maturity | ||||||||||||||||||||||||||||||||||
Held to Maturity | Available for Sale | |||||||||||||||||||||||||||||||||
Amortized | Amortized | |||||||||||||||||||||||||||||||||
Cost | Fair Value | Cost | Fair Value | |||||||||||||||||||||||||||||||
Due in five to ten years | $ | 12,674 | $ | 12,555 | $ | - | $ | - | ||||||||||||||||||||||||||
Due after ten years | 54,324 | 53,831 | 2,295 | 2,285 | ||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | 22,897 | 23,597 | - | - | ||||||||||||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 3,564 | 3,511 | - | - | ||||||||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 599 | 599 | - | - | ||||||||||||||||||||||||||||||
Total | $ | 94,058 | $ | 94,093 | $ | 2,295 | $ | 2,285 | ||||||||||||||||||||||||||
Schedule of present information regarding securities in a continuous unrealized loss position by duration of time in a loss position | ||||||||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Available for Sale | Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 485 | $ | (1 | ) | $ | 1,800 | $ | (9 | ) | $ | 2,285 | $ | (10 | ) | |||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Held to Maturity | Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 3,506 | $ | (8 | ) | $ | - | $ | - | $ | 3,506 | $ | (8 | ) | ||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 692 | (3 | ) | 2,819 | (50 | ) | 3,511 | (53 | ) | |||||||||||||||||||||||||
Government-sponsored agency securities | - | - | 29,154 | (822 | ) | 29,154 | (822 | ) | ||||||||||||||||||||||||||
Obligations of states and political subdivisions | 485 | (20 | ) | 8,139 | (125 | ) | 8,624 | (145 | ) | |||||||||||||||||||||||||
Trust preferred securities | - | - | 4,233 | (1,574 | ) | 4,233 | (1,574 | ) | ||||||||||||||||||||||||||
$ | 4,683 | $ | (31 | ) | $ | 44,345 | $ | (2,571 | ) | $ | 49,028 | $ | (2,602 | ) | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Available for Sale | Fair value | Unrealized | Fair value | Unrealized | Fair value | Unrealized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 409 | $ | (78 | ) | $ | 1,584 | $ | (231 | ) | $ | 1,993 | $ | (309 | ) | |||||||||||||||||||
Less than 12 months | 12 Months or More | Total | ||||||||||||||||||||||||||||||||
Held to Maturity | Fair value | Unrecognized | Fair value | Unrecognized | Fair value | Unrecognized | ||||||||||||||||||||||||||||
Losses | Losses | Losses | ||||||||||||||||||||||||||||||||
Residential government-sponsored mortgage-backed securities | $ | 12,644 | $ | (294 | ) | $ | - | $ | - | $ | 12,644 | $ | (294 | ) | ||||||||||||||||||||
Residential government-sponsored collateralized mortgage obligations | 2,984 | (349 | ) | - | - | 2,984 | (349 | ) | ||||||||||||||||||||||||||
Government-sponsored agency securities | 8,733 | (1,250 | ) | 17,244 | (2,744 | ) | 25,977 | (3,994 | ) | |||||||||||||||||||||||||
Obligations of states and political subdivisions | 10,327 | (588 | ) | 3,064 | (399 | ) | 13,391 | (987 | ) | |||||||||||||||||||||||||
Other residential collateralized mortgage obligations | 647 | (12 | ) | - | - | 647 | (12 | ) | ||||||||||||||||||||||||||
Trust preferred securities | - | - | 4,070 | (2,228 | ) | 4,070 | (2,228 | ) | ||||||||||||||||||||||||||
$ | 35,335 | $ | (2,493 | ) | $ | 24,378 | $ | (5,371 | ) | $ | 59,713 | $ | (7,864 | ) | ||||||||||||||||||||
Schedule of owned pooled trust preferred securities | ||||||||||||||||||||||||||||||||||
Previously | ||||||||||||||||||||||||||||||||||
% of Current | Recognized | |||||||||||||||||||||||||||||||||
Defaults and | Cumulative | |||||||||||||||||||||||||||||||||
Ratings | Estimated | Deferrals to | Other | |||||||||||||||||||||||||||||||
Tranche | When Purchased | Current Ratings | Fair | Total | Comprehensive | |||||||||||||||||||||||||||||
Security | Level | Moody’s | Fitch | Moody’s | Fitch | Par Value | Book Value | Value | Collateral | Loss (1) | ||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||
ALESCO VII A1B | Senior | Aaa | AAA | A3 | BBB | $ | 5,466 | $ | 4,975 | $ | 3,553 | 16 | % | $ | 266 | |||||||||||||||||||
MMCF III B | Senior Sub | A3 | A- | Ba1 | CC | 328 | 323 | 192 | 34 | % | 5 | |||||||||||||||||||||||
5,794 | 5,298 | 3,745 | $ | 271 | ||||||||||||||||||||||||||||||
Cumulative Other | Cumulative | |||||||||||||||||||||||||||||||||
Comprehensive | OTTI Related to | |||||||||||||||||||||||||||||||||
Other Than Temporarily Impaired: | Loss (2) | Credit Loss (2) | ||||||||||||||||||||||||||||||||
TPREF FUNDING II | Mezzanine | A1 | A- | Caa3 | C | 1,500 | 509 | 488 | 39 | % | 591 | $ | 400 | |||||||||||||||||||||
TRAP 2007-XII C1 | Mezzanine | A3 | A | C | C | 2,178 | 57 | 395 | 26 | % | 828 | 1,293 | ||||||||||||||||||||||
TRAP 2007-XIII D | Mezzanine | NR | A- | NR | C | 2,039 | - | 324 | 17 | % | 7 | 2,032 | ||||||||||||||||||||||
MMC FUNDING XVIII | Mezzanine | A3 | A- | Ca | C | 1,095 | 27 | 295 | 21 | % | 377 | 691 | ||||||||||||||||||||||
ALESCO V C1 | Mezzanine | A2 | A | C | C | 2,150 | 475 | 575 | 15 | % | 1,014 | 661 | ||||||||||||||||||||||
ALESCO XV C1 | Mezzanine | A3 | A- | C | C | 3,279 | 31 | 86 | 33 | % | 689 | 2,559 | ||||||||||||||||||||||
ALESCO XVI C | Mezzanine | A3 | A- | C | C | 2,179 | 121 | 563 | 15 | % | 878 | 1,180 | ||||||||||||||||||||||
14,420 | 1,220 | 2,726 | $ | 4,384 | $ | 8,816 | ||||||||||||||||||||||||||||
Total | $ | 20,214 | $ | 6,518 | $ | 6,471 | ||||||||||||||||||||||||||||
(1) Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion | ||||||||||||||||||||||||||||||||||
(2) Pre-tax | ||||||||||||||||||||||||||||||||||
Schedule of credit losses recognized in earnings | ||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Amount of cumulative other-than-temporary impairment related to credit loss prior to January 1 | $ | 8,911 | $ | 8,994 | $ | 8,277 | ||||||||||||||||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | - | - | - | |||||||||||||||||||||||||||||||
Amounts related to credit loss for which an other-than-temporary impairment was previously recognized | 41 | 3 | 717 | |||||||||||||||||||||||||||||||
Reductions due to realized losses | (3 | ) | (86 | ) | - | |||||||||||||||||||||||||||||
Amount of cumulative other-than-temporary impairment related to credit loss as of December 31 | $ | 8,949 | $ | 8,911 | $ | 8,994 | ||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income by component | ||||||||||||||||||||||||||||||||||
Unrealized Holding | ||||||||||||||||||||||||||||||||||
Gains (Losses) on | ||||||||||||||||||||||||||||||||||
For the year ended December 31, 2014 | Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Securities | Securities | Total | ||||||||||||||||||||||||||||||||
Beginning balance | $ | (203 | ) | $ | (2,987 | ) | $ | (3,190 | ) | |||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | 197 | (27 | ) | 170 | ||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | - | - | - | |||||||||||||||||||||||||||||||
Net current-period other comprehensive income/(loss) | 197 | (27 | ) | 170 | ||||||||||||||||||||||||||||||
Ending balance | $ | (6 | ) | $ | (3,014 | ) | $ | (3,020 | ) | |||||||||||||||||||||||||
Unrealized Holding | ||||||||||||||||||||||||||||||||||
Gains (Losses) on | ||||||||||||||||||||||||||||||||||
For the year ended December 31, 2013 | Available for Sale | Held to Maturity | ||||||||||||||||||||||||||||||||
Securities | Securities | Total | ||||||||||||||||||||||||||||||||
Beginning balance | $ | 44 | $ | (3,025 | ) | $ | (2,981 | ) | ||||||||||||||||||||||||||
Other comprehensive income/(loss) before reclassifications | (153 | ) | 38 | (115 | ) | |||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss) | (94 | ) | - | (94 | ) | |||||||||||||||||||||||||||||
Net current-period other comprehensive income/(loss) | (247 | ) | 38 | (209 | ) | |||||||||||||||||||||||||||||
Ending balance | $ | (203 | ) | $ | (2,987 | ) | $ | (3,190 | ) |
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of loans, net of unearned income | |||||||||||||||||||||||||||||||||||||||||
Covered | Non-covered | Total | Covered | Non-covered | Total | ||||||||||||||||||||||||||||||||||||
Loans (1) | Loans | Loans | Loans (1) | Loans | Loans | ||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner-occupied | $ | - | $ | 136,597 | $ | 136,597 | $ | 1,603 | $ | 106,225 | $ | 107,828 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner-occupied | - | 200,517 | 200,517 | 5,829 | 150,008 | 155,837 | |||||||||||||||||||||||||||||||||||
Secured by farmland | - | 612 | 612 | 100 | 508 | 608 | |||||||||||||||||||||||||||||||||||
Construction and land loans | - | 57,938 | 57,938 | 1 | 39,068 | 39,069 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 14,837 | 123,233 | 138,070 | 16,631 | 66,482 | 83,113 | |||||||||||||||||||||||||||||||||||
Multi- family residential | - | 21,832 | 21,832 | 585 | 21,496 | 22,081 | |||||||||||||||||||||||||||||||||||
Home equity lines of credit | 23,658 | 9,751 | 33,409 | 25,769 | 6,431 | 32,200 | |||||||||||||||||||||||||||||||||||
Total real estate loans | 38,495 | 550,480 | 588,975 | 50,518 | 390,218 | 440,736 | |||||||||||||||||||||||||||||||||||
Commercial loans | - | 114,714 | 114,714 | 1,097 | 104,284 | 105,381 | |||||||||||||||||||||||||||||||||||
Consumer loans | - | 1,564 | 1,564 | 81 | 1,308 | 1,389 | |||||||||||||||||||||||||||||||||||
Gross loans | 38,495 | 666,758 | 705,253 | 51,696 | 495,810 | 547,506 | |||||||||||||||||||||||||||||||||||
Less deferred fees on loans | 1 | (1,782 | ) | (1,781 | ) | 5 | (1,453 | ) | (1,448 | ) | |||||||||||||||||||||||||||||||
Loans, net of deferred fees | $ | 38,496 | $ | 664,976 | $ | 703,472 | $ | 51,701 | $ | 494,357 | $ | 546,058 | |||||||||||||||||||||||||||||
(1) Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. | |||||||||||||||||||||||||||||||||||||||||
Schedule of summary of impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | |||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment (1) | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 10,394 | $ | 10,394 | $ | - | $ | 10,394 | $ | 10,394 | $ | - | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | 1,859 | 2,118 | - | 1,859 | 2,118 | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 4,998 | 4,999 | - | 4,998 | 4,999 | - | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,740 | 2,053 | - | - | - | - | 1,740 | 2,053 | - | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | 1,740 | $ | 2,053 | $ | - | $ | 17,251 | $ | 17,511 | $ | - | $ | 18,991 | $ | 19,564 | $ | - | |||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 1,609 | $ | 2,231 | $ | 151 | $ | 1,609 | $ | 2,231 | $ | 151 | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 467 | 740 | 120 | 467 | 740 | 120 | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 3,141 | 3,944 | 134 | 3,141 | 3,944 | 134 | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | - | - | - | 1,344 | 1,465 | 300 | 1,344 | 1,465 | 300 | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 6,561 | $ | 8,380 | $ | 705 | $ | 6,561 | $ | 8,380 | $ | 705 | |||||||||||||||||||||||
Grand total | $ | 1,740 | $ | 2,053 | $ | - | $ | 23,812 | $ | 25,891 | $ | 705 | $ | 25,552 | $ | 27,944 | $ | 705 | |||||||||||||||||||||||
(1) Recorded investment is after cumulative prior charge offs of $1.7 million. These loans also have aggregate SBA guarantees of $4.7 million. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) The Bank recognizes loan impairment and may concurrently record a charge off to the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Unpaid | Unpaid | Unpaid | |||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | Recorded | Principal | Related | |||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment (1) | Balance | Allowance | Investment | Balance | Allowance | |||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 745 | $ | 844 | $ | - | $ | 7,476 | $ | 7,476 | $ | - | $ | 8,221 | $ | 8,320 | $ | - | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | 2,145 | 2,486 | - | 359 | 449 | - | 2,504 | 2,935 | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 2,107 | 2,307 | - | 2,107 | 2,307 | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 3,155 | 3,631 | - | 3,155 | 3,631 | - | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,220 | 1,439 | - | 5,358 | 5,358 | - | 6,578 | 6,797 | - | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | 4,110 | $ | 4,769 | $ | - | $ | 18,455 | $ | 19,221 | $ | - | $ | 22,565 | $ | 23,990 | $ | - | |||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 400 | $ | 500 | $ | 192 | $ | 400 | $ | 500 | $ | 192 | |||||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 1,718 | 2,518 | 325 | 1,718 | 2,518 | 325 | ||||||||||||||||||||||||||||||||
Residential 1-4 family (4) | - | - | - | 2,637 | 2,637 | 200 | 2,637 | 2,637 | 200 | ||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | - | $ | 4,755 | $ | 5,655 | $ | 717 | $ | 4,755 | $ | 5,655 | $ | 717 | |||||||||||||||||||||||
Grand total | $ | 4,110 | $ | 4,769 | $ | - | $ | 23,210 | $ | 24,876 | $ | 717 | $ | 27,320 | $ | 29,645 | $ | 717 | |||||||||||||||||||||||
(1) Recorded investment is after cumulative prior charge offs of $1.4 million. These loans also have aggregate SBA guarantees of $2.4 million. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) The Bank recognizes loan impairment and may concurrently record a charge off to the allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Schedule of details of average recorded investment and interest income for impaired loans recognized by class of loans | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 8,154 | $ | 511 | $ | 8,154 | $ | 511 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 3,632 | 223 | 3,632 | 223 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,251 | 40 | - | - | 1,251 | 40 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 1,251 | $ | 40 | $ | 11,786 | $ | 734 | $ | 13,037 | $ | 774 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 326 | $ | 14 | $ | 326 | $ | 14 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | 36 | - | 36 | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 2,317 | - | 2,317 | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 464 | - | 464 | - | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 3,143 | $ | 14 | $ | 3,143 | $ | 14 | |||||||||||||||||||||||||||||
Grand total | $ | 1,251 | $ | 40 | $ | 14,929 | $ | 748 | $ | 16,180 | $ | 788 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 770 | $ | 55 | $ | 6,456 | $ | 439 | $ | 7,226 | $ | 494 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,274 | 134 | 370 | 38 | 2,644 | 172 | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | 1,181 | - | 1,181 | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 1,811 | 66 | 1,811 | 66 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,229 | 47 | 5,534 | 347 | 6,763 | 394 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 4,273 | $ | 236 | $ | 15,352 | $ | 890 | $ | 19,625 | $ | 1,126 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 123 | $ | 17 | $ | 123 | $ | 17 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | 1,875 | - | 1,875 | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 2,618 | 127 | 2,618 | 127 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 4,616 | $ | 144 | $ | 4,616 | $ | 144 | |||||||||||||||||||||||||||||
Grand total | $ | 4,273 | $ | 236 | $ | 19,968 | $ | 1,034 | $ | 24,241 | $ | 1,270 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Year ended 12/31/12 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 134 | $ | 19 | $ | 724 | $ | 39 | $ | 858 | $ | 58 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,101 | 62 | 1,942 | 39 | 4,043 | 101 | |||||||||||||||||||||||||||||||||||
Construction and land development | 1,087 | 101 | 3,158 | 95 | 4,245 | 196 | |||||||||||||||||||||||||||||||||||
Commercial loans | 210 | 23 | 3,836 | 132 | 4,046 | 155 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 1,183 | 29 | 1,230 | 49 | 2,413 | 78 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | 4,715 | $ | 234 | $ | 10,890 | $ | 354 | $ | 15,605 | $ | 588 | |||||||||||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | 270 | $ | 21 | $ | 270 | $ | 21 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | 1,345 | 102 | 1,345 | 102 | |||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | - | - | 1,783 | 90 | 1,783 | 90 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Total | $ | - | $ | - | $ | 3,398 | $ | 213 | $ | 3,398 | $ | 213 | |||||||||||||||||||||||||||||
Grand total | $ | 4,715 | $ | 234 | $ | 14,288 | $ | 567 | $ | 19,003 | $ | 801 | |||||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Schedule of details of aging of the recorded investment in past due loans by class of loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30 - 59 | 60 - 89 | |||||||||||||||||||||||||||||||||||||||
Days | Days | 90 Days | Total | Nonaccrual | Loans Not | Total | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 10 | 148 | - | 158 | 859 | 37,478 | 38,495 | ||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Total | $ | 10 | $ | 148 | $ | - | $ | 158 | $ | 859 | $ | 37,478 | $ | 38,495 | |||||||||||||||||||||||||||
Non-covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 1,524 | $ | 135,073 | $ | 136,597 | |||||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 4,128 | - | - | 4,128 | - | 218,833 | 222,961 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 467 | 57,471 | 57,938 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | 3,140 | 111,574 | 114,714 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 319 | 586 | - | 905 | 521 | 131,558 | 132,984 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 6 | - | - | 6 | - | 1,558 | 1,564 | ||||||||||||||||||||||||||||||||||
Total | $ | 4,453 | $ | 586 | $ | - | $ | 5,039 | $ | 5,652 | $ | 656,067 | $ | 666,758 | |||||||||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | 1,524 | $ | 135,073 | $ | 136,597 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 4,128 | - | - | 4,128 | - | 218,833 | 222,961 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 467 | 57,471 | 57,938 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | 3,140 | 111,574 | 114,714 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 329 | 734 | - | 1,063 | 1,380 | 169,036 | 171,479 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 6 | - | - | 6 | - | 1,558 | 1,564 | ||||||||||||||||||||||||||||||||||
Total | $ | 4,463 | $ | 734 | $ | - | $ | 5,197 | $ | 6,511 | $ | 693,545 | $ | 705,253 | |||||||||||||||||||||||||||
31-Dec-13 | 30 - 59 | 60 - 89 | |||||||||||||||||||||||||||||||||||||||
Days | Days | 90 Days | Total | Nonaccrual | Loans Not | Total | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 1,603 | $ | 1,603 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 503 | - | - | 503 | 245 | 5,766 | 6,514 | ||||||||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | - | 1 | 1 | ||||||||||||||||||||||||||||||||||
Commercial loans | - | - | - | - | - | 1,097 | 1,097 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 41 | - | - | 41 | 1,377 | 40,982 | 42,400 | ||||||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | 81 | 81 | ||||||||||||||||||||||||||||||||||
Total | $ | 544 | $ | - | $ | - | $ | 544 | $ | 1,622 | $ | 49,530 | $ | 51,696 | |||||||||||||||||||||||||||
Non-covered loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 708 | $ | 283 | $ | - | $ | 991 | $ | - | $ | 105,234 | $ | 106,225 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 359 | - | - | 359 | - | 171,653 | 172,012 | ||||||||||||||||||||||||||||||||||
Construction and land development | 8 | 3 | - | 11 | 2,107 | 36,950 | 39,068 | ||||||||||||||||||||||||||||||||||
Commercial loans | 522 | 968 | - | 1,490 | 3,070 | 99,724 | 104,284 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 957 | 98 | - | 1,055 | 2,637 | 69,221 | 72,913 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 14 | - | - | 14 | - | 1,294 | 1,308 | ||||||||||||||||||||||||||||||||||
Total | $ | 2,568 | $ | 1,352 | $ | - | $ | 3,920 | $ | 7,814 | $ | 484,076 | $ | 495,810 | |||||||||||||||||||||||||||
Total loans: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 708 | $ | 283 | $ | - | $ | 991 | $ | - | $ | 106,837 | $ | 107,828 | |||||||||||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 862 | - | - | 862 | 245 | 177,419 | 178,526 | ||||||||||||||||||||||||||||||||||
Construction and land development | 8 | 3 | - | 11 | 2,107 | 36,951 | 39,069 | ||||||||||||||||||||||||||||||||||
Commercial loans | 522 | 968 | - | 1,490 | 3,070 | 100,821 | 105,381 | ||||||||||||||||||||||||||||||||||
Residential 1-4 family (2) | 998 | 98 | - | 1,096 | 4,014 | 110,203 | 115,313 | ||||||||||||||||||||||||||||||||||
Other consumer loans | 14 | - | - | 14 | - | 1,375 | 1,389 | ||||||||||||||||||||||||||||||||||
Total | $ | 3,112 | $ | 1,352 | $ | - | $ | 4,464 | $ | 9,436 | $ | 533,606 | $ | 547,506 | |||||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Schedule of activity in the allowance for non-covered and covered loan and lease losses by class of loan | Activity in the allowance for non-covered loan and lease losses by class of loan for the years ended December 31, 2014, 2013 and 2012 is summarized below (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Non-covered loans: | Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | |||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Charge offs | (573 | ) | - | (250 | ) | (1,998 | ) | (449 | ) | - | - | (3,270 | ) | ||||||||||||||||||||||||||||
Recoveries | 10 | 23 | 4 | 125 | 7 | 5 | - | 174 | |||||||||||||||||||||||||||||||||
Provision | 604 | 115 | 822 | 1,139 | 462 | (10 | ) | 318 | 3,450 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 855 | $ | 1,123 | $ | 1,644 | $ | 2,063 | $ | 1,322 | $ | 49 | $ | 337 | $ | 7,393 | |||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 932 | $ | 1,474 | $ | 970 | $ | 2,110 | $ | 1,163 | $ | 33 | $ | 285 | $ | 6,967 | |||||||||||||||||||||||||
Charge offs | - | (199 | ) | (650 | ) | (2,286 | ) | (776 | ) | (144 | ) | - | (4,055 | ) | |||||||||||||||||||||||||||
Recoveries | 13 | 146 | 7 | 204 | 129 | 4 | - | 503 | |||||||||||||||||||||||||||||||||
Provision | (131 | ) | (436 | ) | 741 | 2,769 | 786 | 161 | (266 | ) | 3,624 | ||||||||||||||||||||||||||||||
Ending balance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 627 | $ | 1,011 | $ | 1,367 | $ | 2,227 | $ | 1,021 | $ | 42 | $ | - | $ | 6,295 | |||||||||||||||||||||||||
Charge offs | (250 | ) | (1,081 | ) | (2,119 | ) | (1,676 | ) | (1,071 | ) | (9 | ) | - | (6,206 | ) | ||||||||||||||||||||||||||
Recoveries | - | 261 | 13 | 334 | 85 | 9 | - | 702 | |||||||||||||||||||||||||||||||||
Provision | 555 | 1,283 | 1,709 | 1,225 | 1,128 | (9 | ) | 285 | 6,176 | ||||||||||||||||||||||||||||||||
Ending balance | $ | 932 | $ | 1,474 | $ | 970 | $ | 2,110 | $ | 1,163 | $ | 33 | $ | 285 | $ | 6,967 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for covered loan and lease losses by class of loan for the years ended December 31, 2014, 2013 and 2012 is summarized below (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Covered loans: | Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | |||||||||||||||||||||||||||||||||||
Year ended December 31, 2014 | Occupied | Occupied (1) | Development | Loans | Residential (3) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | (36 | ) | - | - | 14 | (2 | ) | - | (24 | ) | ||||||||||||||||||||||||||||||
Provision | - | (9 | ) | - | - | 3 | - | - | (6 | ) | |||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | 4 | $ | - | $ | 21 | |||||||||||||||||||||||||
Year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | 45 | $ | - | $ | 43 | $ | - | $ | 11 | $ | - | $ | 99 | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | - | - | (35 | ) | - | (4 | ) | - | (39 | ) | ||||||||||||||||||||||||||||||
Provision | - | - | - | (8 | ) | - | (1 | ) | - | (9 | ) | ||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Charge offs | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Recoveries | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustments (2) | - | 36 | - | 35 | - | 9 | - | 80 | |||||||||||||||||||||||||||||||||
Provision | - | 9 | - | 8 | - | 2 | - | 19 | |||||||||||||||||||||||||||||||||
Ending balance | $ | - | $ | 45 | $ | - | $ | 43 | $ | - | $ | 11 | $ | - | $ | 99 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Represents the portion of increased expected losses which is covered by the loss sharing agreement with the FDIC. | |||||||||||||||||||||||||||||||||||||||||
(3) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Schedule of allowance for non-covered loan and covered loan losses and the recorded investment by portfolio segment | The following table presents the balance in the allowance for non-covered loan losses and the recorded investment in non-covered loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | ||||||||||||||||||||||||||||||||||||
Non-covered loans: | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 151 | $ | - | $ | 120 | $ | 134 | $ | 300 | $ | - | $ | - | $ | 705 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 704 | 1,123 | 1,524 | 1,929 | 1,022 | 49 | 337 | 6,688 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | 855 | $ | 1,123 | $ | 1,644 | $ | 2,063 | $ | 1,322 | $ | 49 | $ | 337 | $ | 7,393 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,003 | $ | 1,859 | $ | 467 | $ | 8,139 | $ | 1,344 | $ | - | $ | - | $ | 23,812 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 124,594 | 221,102 | 57,471 | 106,575 | 131,640 | 1,564 | - | 642,946 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 136,597 | $ | 222,961 | $ | 57,938 | $ | 114,714 | $ | 132,984 | $ | 1,564 | $ | - | $ | 666,758 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 192 | $ | - | $ | - | $ | 325 | $ | 200 | $ | - | $ | - | $ | 717 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 622 | 985 | 1,068 | 2,472 | 1,102 | 54 | 19 | 6,322 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | 814 | $ | 985 | $ | 1,068 | $ | 2,797 | $ | 1,302 | $ | 54 | $ | 19 | $ | 7,039 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,876 | $ | 359 | $ | 2,107 | $ | 4,873 | $ | 7,995 | $ | - | $ | - | $ | 23,210 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 98,349 | 171,653 | 36,961 | 99,411 | 64,918 | 1,308 | - | 472,600 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 106,225 | $ | 172,012 | $ | 39,068 | $ | 104,284 | $ | 72,913 | $ | 1,308 | $ | - | $ | 495,810 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the balance in the allowance for covered loan losses and the recorded investment in covered loans by portfolio segment and based on impairment method as of December 31, 2014 and 2013 (in thousands). | |||||||||||||||||||||||||||||||||||||||||
Commercial | Commercial | ||||||||||||||||||||||||||||||||||||||||
Real Estate | Real Estate | Construction | Other | ||||||||||||||||||||||||||||||||||||||
Owner | Non-owner | and Land | Commercial | 1-4 Family | Consumer | ||||||||||||||||||||||||||||||||||||
Covered loans: | Occupied | Occupied (1) | Development | Loans | Residential (2) | Loans | Unallocated | Total | |||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Collectively evaluated for impairment | - | - | - | - | 17 | 4 | - | 21 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | - | $ | - | $ | - | $ | - | $ | 17 | $ | 4 | $ | - | $ | 21 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | 1,740 | $ | - | $ | - | $ | 1,740 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 36,755 | - | 36,755 | ||||||||||||||||||||||||||||||||||||||
Total ending loan balances | $ | - | $ | - | $ | - | $ | - | $ | 38,495 | $ | - | $ | - | $ | 38,495 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||
Collectively evaluated for impairment | - | 45 | - | - | - | 6 | - | 51 | |||||||||||||||||||||||||||||||||
Total ending allowance | $ | - | $ | 45 | $ | - | $ | - | $ | - | $ | 6 | $ | - | $ | 51 | |||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 745 | $ | 2,145 | $ | - | $ | - | $ | 1,220 | $ | - | $ | - | $ | 4,110 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 858 | 4,369 | 1 | 1,097 | 41,180 | 81 | - | 47,586 | |||||||||||||||||||||||||||||||||
Total ending loan balances | $ | 1,603 | $ | 6,514 | $ | 1 | $ | 1,097 | $ | 42,400 | $ | 81 | $ | - | $ | 51,696 | |||||||||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Schedule of the risk category of loans by class of loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Classified/ | Special | Classified/ | |||||||||||||||||||||||||||||||||||||||
Criticized (1) | Pass | Total | Mention | Substandard (3) | Pass | Total | Criticized | Pass | Total | ||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | - | $ | - | $ | - | $ | 917 | $ | 12,003 | $ | 123,677 | $ | 136,597 | $ | 12,920 | $ | 123,677 | $ | 136,597 | |||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | - | - | - | 234 | - | 222,727 | 222,961 | 234 | 222,727 | 222,961 | |||||||||||||||||||||||||||||||
Construction and land development | - | - | - | 593 | 467 | 56,878 | 57,938 | 1,060 | 56,878 | 57,938 | |||||||||||||||||||||||||||||||
Commercial loans | - | - | - | 30 | 8,139 | 106,545 | 114,714 | 8,169 | 106,545 | 114,714 | |||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,740 | 36,755 | 38,495 | 584 | 1,344 | 131,056 | 132,984 | 3,668 | 167,811 | 171,479 | |||||||||||||||||||||||||||||||
Other consumer loans | - | - | - | - | - | 1,564 | 1,564 | - | 1,564 | 1,564 | |||||||||||||||||||||||||||||||
Total | $ | 1,740 | $ | 36,755 | $ | 38,495 | $ | 2,358 | $ | 21,953 | $ | 642,447 | $ | 666,758 | $ | 26,051 | $ | 679,202 | $ | 705,253 | |||||||||||||||||||||
31-Dec-13 | Covered Loans | Non-covered Loans | Total Loans | ||||||||||||||||||||||||||||||||||||||
Classified/ | Special | Classified/ | |||||||||||||||||||||||||||||||||||||||
Criticized (1) | Pass | Total | Mention | Substandard (3) | Pass | Total | Criticized | Pass | Total | ||||||||||||||||||||||||||||||||
Commercial real estate - owner occupied | $ | 745 | $ | 858 | $ | 1,603 | $ | 802 | $ | 7,876 | $ | 97,547 | $ | 106,225 | $ | 9,423 | $ | 98,405 | $ | 107,828 | |||||||||||||||||||||
Commercial real estate - non-owner occupied (2) | 2,145 | 4,369 | 6,514 | - | 359 | 171,653 | 172,012 | 2,504 | 176,022 | 178,526 | |||||||||||||||||||||||||||||||
Construction and land development | - | 1 | 1 | 618 | 2,107 | 36,343 | 39,068 | 2,725 | 36,344 | 39,069 | |||||||||||||||||||||||||||||||
Commercial loans | - | 1,097 | 1,097 | 31 | 4,873 | 99,380 | 104,284 | 4,904 | 100,477 | 105,381 | |||||||||||||||||||||||||||||||
Residential 1-4 family (4) | 1,220 | 41,180 | 42,400 | 176 | 7,995 | 64,742 | 72,913 | 9,391 | 105,922 | 115,313 | |||||||||||||||||||||||||||||||
Other consumer loans | - | 81 | 81 | - | - | 1,308 | 1,308 | - | 1,389 | 1,389 | |||||||||||||||||||||||||||||||
Total | $ | 4,110 | $ | 47,586 | $ | 51,696 | $ | 1,627 | $ | 23,210 | $ | 470,973 | $ | 495,810 | $ | 28,947 | $ | 518,559 | $ | 547,506 | |||||||||||||||||||||
(1) Credit quality is enhanced by a loss sharing agreement with the FDIC in the covered portfolio. The same credit quality indicators used in the non-covered portfolio are combined. | |||||||||||||||||||||||||||||||||||||||||
(2) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||||||||||||||||||||||
(3) Includes SBA guarantees of $4.7 million and $2.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
(4) Includes home equity lines of credit. | |||||||||||||||||||||||||||||||||||||||||
Greater Atlantic Bank | |||||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount of covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,280 | $ | 5,290 | $ | 6,570 | $ | 1,315 | $ | 6,802 | $ | 8,117 | |||||||||||||||||||||||||||||
Construction and land development | - | - | - | - | 1 | 1 | |||||||||||||||||||||||||||||||||||
Commercial loans | 200 | 497 | 697 | 207 | 890 | 1,097 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | - | 38,495 | 38,495 | - | 42,400 | 42,400 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | 72 | 72 | - | 81 | 81 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,480 | $ | 44,354 | $ | 45,834 | $ | 1,522 | $ | 50,174 | $ | 51,696 | |||||||||||||||||||||||||||||
Schedule of carrying amount and accretable yield for covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 1,522 | $ | 6,854 | $ | 50,174 | $ | - | $ | 3,297 | $ | 8,001 | $ | 68,024 | |||||||||||||||||||||||||
Additions | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Accretion | - | - | (1,928 | ) | 1,928 | - | - | (1,656 | ) | 1,656 | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | 296 | - | - | - | 521 | - | |||||||||||||||||||||||||||||||||
Adjustment-transfer to OREO | - | (31 | ) | (375 | ) | - | (1,654 | ) | (12 | ) | (2,327 | ) | |||||||||||||||||||||||||||||
Payments received | - | - | (5,893 | ) | - | (121 | ) | - | (17,179 | ) | |||||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,522 | $ | 5,191 | $ | 45,834 | $ | - | $ | 1,522 | $ | 6,854 | $ | 50,174 | |||||||||||||||||||||||||
HarVest Bank of Maryland | |||||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount of covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | Loans | Loans | Total | ||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 323 | $ | 14,224 | $ | 14,547 | $ | 358 | $ | 15,285 | $ | 15,643 | |||||||||||||||||||||||||||||
Construction and land development | 593 | 3,234 | 3,827 | 629 | 5,312 | 5,941 | |||||||||||||||||||||||||||||||||||
Commercial loans | - | 3,492 | 3,492 | - | 4,362 | 4,362 | |||||||||||||||||||||||||||||||||||
Residential 1-4 family | 855 | 11,277 | 12,132 | 870 | 12,045 | 12,915 | |||||||||||||||||||||||||||||||||||
Other consumer loans | - | 3 | 3 | - | 8 | 8 | |||||||||||||||||||||||||||||||||||
Total | $ | 1,771 | $ | 32,230 | $ | 34,001 | $ | 1,857 | $ | 37,012 | $ | 38,869 | |||||||||||||||||||||||||||||
Schedule of carrying amount and accretable yield for covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | 1,857 | $ | 2,087 | $ | 37,012 | $ | - | $ | 1,912 | $ | 3,659 | $ | 50,090 | |||||||||||||||||||||||||
Additions | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Accretion | - | - | (869 | ) | 869 | - | - | (1,533 | ) | 1,533 | |||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Adjustment-short sale | - | - | (39 | ) | 39 | ||||||||||||||||||||||||||||||||||||
Payments received | - | (86 | ) | - | (5,651 | ) | - | (55 | ) | - | (14,650 | ) | |||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,771 | $ | 1,218 | $ | 32,230 | $ | - | $ | 1,857 | $ | 2,087 | $ | 37,012 | |||||||||||||||||||||||||
Prince George's Federal Savings Bank | |||||||||||||||||||||||||||||||||||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||
Schedule of carrying amount of covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Purchased | Purchased | ||||||||||||||||||||||||||||||||||||||||
Impaired | Non-impaired | ||||||||||||||||||||||||||||||||||||||||
Loans | Loans | Total | |||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 371 | $ | 3,306 | $ | 3,677 | |||||||||||||||||||||||||||||||||||
Construction and land development | 649 | 1,168 | 1,817 | ||||||||||||||||||||||||||||||||||||||
Commercial loans | - | 204 | 204 | ||||||||||||||||||||||||||||||||||||||
Residential 1-4 family | - | 53,860 | 53,860 | ||||||||||||||||||||||||||||||||||||||
Other consumer loans | - | 225 | 225 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 1,020 | $ | 58,763 | $ | 59,783 | |||||||||||||||||||||||||||||||||||
Schedule of carrying amount and accretable yield for covered purchased impaired and non-impaired loans | |||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||||||
Purchased Impaired | Purchased Non-impaired | ||||||||||||||||||||||||||||||||||||||||
Carrying | Carrying | ||||||||||||||||||||||||||||||||||||||||
Accretable | Amount | Accretable | Amount | ||||||||||||||||||||||||||||||||||||||
Yield | of Loans | Yield | of Loans | ||||||||||||||||||||||||||||||||||||||
Balance at beginning of period | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||
Additions | - | 642 | 3,121 | 61,190 | |||||||||||||||||||||||||||||||||||||
Accretion | - | - | (213 | ) | 213 | ||||||||||||||||||||||||||||||||||||
Reclassifications from nonaccretable balance | - | - | - | - | |||||||||||||||||||||||||||||||||||||
Disbursements | - | 388 | - | - | |||||||||||||||||||||||||||||||||||||
Adjustment-transfer to OREO | - | - | - | (285 | ) | ||||||||||||||||||||||||||||||||||||
Payments received | - | (10 | ) | - | (2,355 | ) | |||||||||||||||||||||||||||||||||||
Balance at end of period | $ | - | $ | 1,020 | $ | 2,908 | $ | 58,763 |
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Schedule of assets measured at fair value on a recurring basis | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
Obligations of states and political subdivisions | $ | 2,285 | $ | - | $ | 2,285 | $ | - | |||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,993 | $ | - | $ | 1,993 | $ | - | |||||||||||||
Schedule of assets measured at fair value on non recurring basis | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-14 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Impaired non-covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | $ | 11,852 | $ | 11,852 | |||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,859 | 1,859 | |||||||||||||||||||
Construction and land development | 347 | 347 | |||||||||||||||||||
Commercial loans | 8,005 | 8,005 | |||||||||||||||||||
Residential 1-4 family | 1,044 | 1,044 | |||||||||||||||||||
Impaired covered loans: | |||||||||||||||||||||
Residential 1-4 family | 1,740 | 1,740 | |||||||||||||||||||
Non-covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 461 | 461 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,792 | 1,792 | |||||||||||||||||||
Construction and land development | 6,818 | 6,818 | |||||||||||||||||||
Residential 1-4 family | 3,980 | 3,980 | |||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Significant | |||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||
Total at | Identical Assets | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | 31-Dec-13 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||
Impaired non-covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | $ | 7,684 | $ | 7,684 | |||||||||||||||||
Commercial real estate - non-owner occupied (1) | 359 | 359 | |||||||||||||||||||
Construction and land development | 2,107 | 2,107 | |||||||||||||||||||
Commercial loans | 4,548 | 4,548 | |||||||||||||||||||
Residential 1-4 family | 7,795 | 7,795 | |||||||||||||||||||
Impaired covered loans: | |||||||||||||||||||||
Commercial real estate - owner occupied | 745 | 745 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 2,145 | 2,145 | |||||||||||||||||||
Residential 1-4 family | 1,220 | 1,220 | |||||||||||||||||||
Non-covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 461 | 461 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,342 | 1,342 | |||||||||||||||||||
Construction and land development | 6,066 | 6,066 | |||||||||||||||||||
Residential 1-4 family | 1,710 | 1,710 | |||||||||||||||||||
Covered other real estate owned: | |||||||||||||||||||||
Commercial real estate - owner occupied | 557 | 557 | |||||||||||||||||||
Commercial real estate - non-owner occupied (1) | 1,450 | 1,450 | |||||||||||||||||||
Commercial | 79 | 79 | |||||||||||||||||||
Residential 1-4 family | 127 | 127 | |||||||||||||||||||
(1) Includes loans secured by farmland and multi-family residential loans. | |||||||||||||||||||||
Schedule of estimated fair values and fair value hierarchy levels of financial instruments | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||
Fair Value | Carrying | Fair | Carrying | Fair | |||||||||||||||||
Hierarchy Level | Amount | Value | Amount | Value | |||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 38,320 | $ | 38,320 | $ | 20,856 | $ | 20,856 | ||||||||||||
Securities available for sale | See previous table | 2,285 | 2,285 | 1,993 | 1,993 | ||||||||||||||||
Securities held to maturity | Level 2 & Level 3 | 94,058 | 94,093 | 82,443 | 76,193 | ||||||||||||||||
Stock in Federal Reserve Bank and Federal | |||||||||||||||||||||
Home Loan Bank | n/a | 5,681 | n/a | 5,915 | n/a | ||||||||||||||||
Equity investment in mortgage affiliate | Level 3 | 3,631 | 3,631 | - | - | ||||||||||||||||
Preferred investment in mortgage affiliate | Level 3 | 1,805 | 1,805 | - | - | ||||||||||||||||
Net non-covered loans | Level 3 | 657,583 | 666,621 | 487,318 | 493,472 | ||||||||||||||||
Net covered loans | Level 3 | 38,475 | 43,663 | 51,650 | 57,564 | ||||||||||||||||
Accrued interest receivable | Level 2 & Level 3 | 2,904 | 2,904 | 2,186 | 2,186 | ||||||||||||||||
FDIC indemnification asset | Level 3 | 3,571 | 2,261 | 5,804 | 4,220 | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Demand deposits | Level 1 | 94,578 | 94,578 | 68,940 | 68,940 | ||||||||||||||||
Money market and savings accounts | Level 1 | 181,452 | 181,452 | 147,854 | 147,854 | ||||||||||||||||
Certificates of deposit | Level 3 | 466,395 | 466,391 | 323,565 | 324,733 | ||||||||||||||||
Securities sold under agreements to repurchase and other short-term borrowings | Level 1 | 29,044 | 29,044 | 34,545 | 34,545 | ||||||||||||||||
FHLB advances | Level 3 | 25,000 | 25,526 | 30,250 | 31,168 | ||||||||||||||||
Accrued interest payable | Level 1 & Level 3 | 560 | 560 | 341 | 341 |
BANK_PREMISES_AND_EQUIPMENT_Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of bank premises and equipment | |||||||||
2014 | 2013 | ||||||||
Land | $ | 2,261 | $ | 1,520 | |||||
Building and improvements | 5,811 | 3,347 | |||||||
Leasehold improvements | 2,394 | 2,167 | |||||||
Furniture and equipment | 3,948 | 3,536 | |||||||
14,414 | 10,570 | ||||||||
Less accumulated depreciation and amortization | 4,961 | 4,246 | |||||||
Bank premises and equipment, net | $ | 9,453 | $ | 6,324 | |||||
Schedule of future minimum rental payments required under non-cancelable operating leases for bank premises | |||||||||
2015 | $ | 1,723 | |||||||
2016 | 1,021 | ||||||||
2017 | 982 | ||||||||
2018 | 720 | ||||||||
2019 | 452 | ||||||||
Thereafter | 742 | ||||||||
$ | 5,640 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of changes in goodwill | |||||||||||||
2014 | 2013 | ||||||||||||
Balance as of January 1 | $ | 9,160 | $ | 9,160 | |||||||||
PGFSB acquisition | 1,354 | - | |||||||||||
Balance as of December 31 | $ | 10,514 | $ | 9,160 | |||||||||
Schedule of acquired intangible assets | |||||||||||||
31-Dec-14 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
Amortizable core deposit intangibles | $ | 7,477 | $ | (6,123 | ) | $ | 1,354 | ||||||
31-Dec-13 | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
Amortizable core deposit intangibles | $ | 6,715 | $ | (5,902 | ) | $ | 813 | ||||||
Schedule of estimated amortization expense of intangibles | |||||||||||||
2015 | $ | 262 | |||||||||||
2016 | 219 | ||||||||||||
2017 | 194 | ||||||||||||
2018 | 184 | ||||||||||||
2019 | 173 | ||||||||||||
Thereafter | 322 | ||||||||||||
$ | 1,354 |
FDIC_INDEMNIFICATION_ASSET_Tab
FDIC INDEMNIFICATION ASSET (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fdic Indemnification Asset [Abstract] | |||||||||
Schedule of changes in the indemnification asset | |||||||||
2014 | 2013 | ||||||||
Balance as of January 1 | $ | 5,804 | $ | 6,735 | |||||
Payments from FDIC | (1,037 | ) | (1,017 | ) | |||||
Reforecasting adjustment (1) | 34 | 569 | |||||||
Accretion (amortization) | (1,230 | ) | (483 | ) | |||||
Balance as of December 31 | $ | 3,571 | $ | 5,804 | |||||
(1) Represents an increase in the carrying value of the indemnification asset resulting from increased reforecasted losses in individual covered loans and covered loan pools. | |||||||||
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Deposits [Abstract] | |||||||||||||||||||
Schedule of scheduled maturities of time deposits | |||||||||||||||||||
2015 | $ | 225,002 | |||||||||||||||||
2016 | 125,803 | ||||||||||||||||||
2017 | 63,585 | ||||||||||||||||||
2018 | 21,834 | ||||||||||||||||||
2019 | 29,971 | ||||||||||||||||||
Thereafter | 200 | ||||||||||||||||||
$ | 466,395 | ||||||||||||||||||
Schedule of maturities of certificates of deposit | |||||||||||||||||||
Within | 3 to 6 | 6 to 12 | Over 12 | ||||||||||||||||
3 Months | Months | Months | Months | Total | |||||||||||||||
$ | 7,871 | $ | 4,003 | $ | 8,813 | $ | 48,744 | $ | 69,431 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Securities Sold Under Agreements To Repurchase And Other Short Term Borrowings [Abstract] | |||||||||||||
Schedule of other short-term borrowings | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
FHLB overnight advances | $ | 15,250 | $ | - | $ | - | |||||||
Other short-term FHLB advances maturing 1/14/2013 | - | - | 20,000 | ||||||||||
Other short-term FHLB advances maturing 1/27/2014 | 20,000 | - | |||||||||||
Other short-term FHLB advances maturing 7/25/2014 | 5,250 | - | |||||||||||
Securities sold under agreements to repurchase | 13,794 | 14,545 | 13,411 | ||||||||||
Total | $ | 29,044 | $ | 39,795 | $ | 33,411 | |||||||
Weighted average interest rate at year end | 0.65 | % | 0.38 | % | 0.37 | % | |||||||
For the periods ended December 31, 2014, 2013 and 2012: | |||||||||||||
Average outstanding balance | $ | 37,810 | $ | 17,259 | $ | 20,353 | |||||||
Average interest rate during the year | 0.51 | % | 0.6 | % | 0.59 | % | |||||||
Maximum month-end outstanding balance | $ | 66,852 | $ | 39,795 | $ | 33,411 |
FEDERAL_HOME_LOAN_BANK_ADVANCE1
FEDERAL HOME LOAN BANK ADVANCES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Advances From Federal Home Loan Banks [Abstract] | |||||||||
Schedule of advances from the Federal Home Loan Bank | |||||||||
2014 | 2013 | ||||||||
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 2.08% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2016 with a rate of 2.03% | 5,000 | 5,000 | |||||||
FHLB fixed rate advance maturing June 2017 with a rate of 2.26% | 5,000 | 5,000 | |||||||
Total FHLB advances | $ | 25,000 | $ | 25,000 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of net deferred tax assets | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,570 | $ | 2,453 | |||||||||
Organization costs | 127 | 154 | |||||||||||
Unearned loan fees and other | 617 | 501 | |||||||||||
Net operating loss carryover | - | 92 | |||||||||||
Other real estate owned write-downs | 942 | 1,009 | |||||||||||
FDIC assisted transactions timing difference | 1,721 | 2,613 | |||||||||||
Other than temporary impairment charge | 2,454 | 2,435 | |||||||||||
Net unrealized loss on securities available for sale | 1,549 | 1,636 | |||||||||||
Purchase accounting | 1,340 | - | |||||||||||
Other | 745 | 630 | |||||||||||
Total deferred tax assets | 12,065 | 11,523 | |||||||||||
Deferred tax liabilities: | |||||||||||||
FDIC indemnification asset | 1,238 | 2,008 | |||||||||||
FDIC gain | - | 443 | |||||||||||
Purchase accounting | - | 562 | |||||||||||
Depreciation | 744 | 229 | |||||||||||
Total deferred tax liabilities | 1,982 | 3,242 | |||||||||||
Net deferred tax assets | $ | 10,083 | $ | 8,281 | |||||||||
Schedule of provision for income taxes | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current tax expense | |||||||||||||
Federal | $ | 4,047 | $ | 2,852 | $ | 5,016 | |||||||
State | 125 | 82 | 121 | ||||||||||
Total current tax expense | 4,172 | 2,934 | 5,137 | ||||||||||
Deferred tax benefit | |||||||||||||
Federal | (394 | ) | 102 | (1,965 | ) | ||||||||
State | (24 | ) | - | (57 | ) | ||||||||
Total deferred tax expense (benefit) | (418 | ) | 102 | (2,022 | ) | ||||||||
Total income tax expense | $ | 3,754 | $ | 3,036 | $ | 3,115 | |||||||
Schedule of income tax expense determined by applying the U.S. Federal income tax rate | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Computed expected tax expense at statutory rate | $ | 3,821 | $ | 3,160 | $ | 3,293 | |||||||
Reduction in tax expense resulting from: | |||||||||||||
Income from bank-owned life insurance | (210 | ) | (202 | ) | (271 | ) | |||||||
Other, net | 143 | 78 | 93 | ||||||||||
Income tax expense | $ | 3,754 | $ | 3,036 | $ | 3,115 |
STOCK_BASED_COMPENSATION_Table
STOCK- BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||
Schedule of weighted-average assumptions used to value options | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Expected life | 10 years | 10 years | 10 years | ||||||||||||||
Expected volatility | 29.3 | % | 34.21 | % | 35.64 | % | |||||||||||
Risk-free interest rate | 2.48 | % | 2.42 | % | 1.65 | % | |||||||||||
Weighted average fair value per option granted | $ | 2.88 | $ | 3.58 | $ | 3.63 | |||||||||||
Dividend yield | 2.55 | % | 1.29 | % | 0 | % | |||||||||||
Schedule of activity in the stock option plan | |||||||||||||||||
Weighted | |||||||||||||||||
Weighted | Average | Aggregate | |||||||||||||||
Average | Remaining | Intrinsic | |||||||||||||||
Exercise | Contractual | Value | |||||||||||||||
Shares | Price | Term | (in thousands) | ||||||||||||||
Options outstanding, beginning of period | 631,075 | $ | 8.21 | ||||||||||||||
Granted | 104,750 | 10.47 | |||||||||||||||
Forfeited | (14,575 | ) | 8.38 | ||||||||||||||
Exercised | (100,200 | ) | 8.84 | ||||||||||||||
Options outstanding, end of period | 621,050 | $ | 8.49 | 6.4 | $ | 1,781 | |||||||||||
Vested or expected to vest | 621,050 | $ | 8.49 | 6.4 | $ | 1,781 | |||||||||||
Exercisable at end of period | 320,290 | $ | 7.98 | 4.8 | $ | 1,088 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of reconciliation of the denominators of the basic and diluted earnings per share | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Income | Shares | Per Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
For the year ended December 31, 2014 | |||||||||||||
Basic EPS | $ | 7,483 | 11,846 | $ | 0.63 | ||||||||
Effect of dilutive stock options and warrants | 81 | - | |||||||||||
Diluted EPS | $ | 7,483 | 11,927 | $ | 0.63 | ||||||||
For the year ended December 31, 2013 | |||||||||||||
Basic EPS | $ | 6,258 | 11,590 | $ | 0.54 | ||||||||
Effect of dilutive stock options and warrants | 37 | - | |||||||||||
Diluted EPS | $ | 6,258 | 11,627 | $ | 0.54 | ||||||||
For the year ended December 31, 2012 | |||||||||||||
Basic EPS | $ | 6,569 | 11,590 | $ | 0.57 | ||||||||
Effect of dilutive stock options and warrants | - | 6 | - | ||||||||||
Diluted EPS | $ | 6,569 | 11,596 | $ | 0.57 |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||
Schedule of capital amounts and ratios for southern national and sonabank | |||||||||||||||||||||||||
Required | |||||||||||||||||||||||||
For Capital | To Be Categorized as | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Well Capitalized | |||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
2014 | |||||||||||||||||||||||||
Southern National | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 105,107 | 15.19 | % | $ | 27,671 | 4 | % | $ | 41,507 | 6 | % | |||||||||||||
Total risk-based capital ratio | 112,521 | 16.27 | % | 55,343 | 8 | % | 69,179 | 10 | % | ||||||||||||||||
Leverage ratio | 105,107 | 11.8 | % | 35,623 | 4 | % | 44,529 | 5 | % | ||||||||||||||||
Sonabank | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 104,007 | 15.04 | % | $ | 27,658 | 4 | % | $ | 41,487 | 6 | % | |||||||||||||
Total risk-based capital ratio | 111,421 | 16.11 | % | 55,316 | 8 | % | 69,145 | 10 | % | ||||||||||||||||
Leverage ratio | 104,007 | 11.68 | % | 35,609 | 4 | % | 44,511 | 5 | % | ||||||||||||||||
2013 | |||||||||||||||||||||||||
Southern National | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 99,700 | 18.56 | % | $ | 21,489 | 4 | % | $ | 32,234 | 6 | % | |||||||||||||
Total risk-based capital ratio | 106,406 | 19.81 | % | 42,978 | 8 | % | 53,723 | 10 | % | ||||||||||||||||
Leverage ratio | 99,700 | 14.22 | % | 28,038 | 4 | % | 35,048 | 5 | % | ||||||||||||||||
Sonabank | |||||||||||||||||||||||||
Tier 1 risk-based capital ratio | $ | 98,958 | 18.43 | % | $ | 21,478 | 4 | % | $ | 32,217 | 6 | % | |||||||||||||
Total risk-based capital ratio | 105,660 | 19.68 | % | 42,956 | 8 | % | 53,695 | 10 | % | ||||||||||||||||
Leverage ratio | 98,958 | 14.12 | % | 28,027 | 4 | % | 35,034 | 5 | % |
FDICASSISTED_ACQUISITION_Table
FDIC-ASSISTED ACQUISITION (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Schedule of net assets acquired from the FDIC | |||||
Assets | |||||
Cash and cash equivalents | $ | 21,704 | |||
Consideration from the FDIC | 25,553 | ||||
Investment securities | 38,379 | ||||
Loans | 64,966 | ||||
Loans held for sale | 7,568 | ||||
Federal Home Loan Bank stock | 1,167 | ||||
Other real estate owned | 750 | ||||
Core deposit intangible | 179 | ||||
Other assets | 576 | ||||
Total assets acquired | $ | 160,842 | |||
Liabilities | |||||
Deposits | $ | 140,484 | |||
FHLB advances | 16,738 | ||||
Other liabilities | 136 | ||||
Total liabilities | $ | 157,358 | |||
Net assets acquired (bargain purchase gain) | $ | 3,484 |
ACQUISTIONS_Tables
ACQUISTIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Schedule of summary of the net assets acquired | |||||
Total purchase price | $ | 11,497 | |||
Fair value of assets acquired: | |||||
Cash on hand and in banks | $ | 28,179 | |||
Loans | 61,832 | ||||
Loans held for sale | 3,499 | ||||
Land and buildings | 3,023 | ||||
Deferred tax asset | 1,877 | ||||
Other assets | 1,022 | ||||
Core deposit intangible | 761 | ||||
Total assets acquired | $ | 100,193 | |||
Fair value of liabilities assumed: | |||||
Noninterest-bearing deposits | $ | 19,233 | |||
Interest-bearing deposits | 69,995 | ||||
Other liabilities | 822 | ||||
Total liabilities assumed | $ | 90,050 | |||
Net assets acquired | $ | 10,143 | |||
Goodwill | 1,354 | ||||
$ | 11,497 |
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule of condensed balance sheet of Southern National Bancorp of Virginia, Inc. | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Cash | $ | 769 | $ | 465 | |||||||||
Investment in subsidiary | 112,879 | 105,872 | |||||||||||
Other assets | 331 | 277 | |||||||||||
Total assets | $ | 113,979 | $ | 106,614 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Stockholders’ equity: | |||||||||||||
Common stock | $ | 122 | $ | 116 | |||||||||
Additional paid in capital | 104,072 | 97,127 | |||||||||||
Retained earnings | 12,805 | 12,561 | |||||||||||
Accumulated other comprehensive loss | (3,020 | ) | (3,190 | ) | |||||||||
Total stockholders’ equity | 113,979 | 106,614 | |||||||||||
Total liabilities and stockholders’ equity | $ | 113,979 | $ | 106,614 | |||||||||
Schedule of condensed statements of income of Southern National Bancorp of Virginia, Inc. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Equity in undistributed net income of subsidiary | $ | 7,590 | $ | 6,370 | $ | 6,680 | |||||||
Other operating expenses | 162 | 170 | 168 | ||||||||||
Income before income taxes | 7,428 | 6,200 | 6,512 | ||||||||||
Income tax benefit | (55 | ) | (58 | ) | (57 | ) | |||||||
Net income | $ | 7,483 | $ | 6,258 | $ | 6,569 | |||||||
Schedule of condensed statements of cash flows information of Southern National Bancorp of Virginia, Inc. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Operating activities: | |||||||||||||
Net income | $ | 7,483 | $ | 6,258 | $ | 6,569 | |||||||
Adjustments to reconcile net income to net cash and | |||||||||||||
cash equivalents provided by operating activities: | |||||||||||||
Equity in undistributed net income of subsidiary | (7,590 | ) | (6,370 | ) | (6,680 | ) | |||||||
Other, net | 264 | 277 | 142 | ||||||||||
Net cash and cash equivalents provided by operating activities | 157 | 165 | 31 | ||||||||||
Investing activities: | |||||||||||||
Dividend from bank subsidiary | 6,500 | 2,680 | - | ||||||||||
Net cash and cash equivalents provided by investing activities | 6,500 | 2,680 | - | ||||||||||
Financing activities: | |||||||||||||
Issuance of common stock | 886 | 3 | - | ||||||||||
Dividend payment on common stock | (7,239 | ) | (2,898 | ) | (2,840 | ) | |||||||
Net cash and cash equivalents used in financing activities | (6,353 | ) | (2,895 | ) | (2,840 | ) | |||||||
Increase (decrease) in cash and cash equivalents | 304 | (50 | ) | (2,809 | ) | ||||||||
Cash and cash equivalents at beginning of period | 465 | 515 | 3,324 | ||||||||||
Cash and cash equivalents at end of period | $ | 769 | $ | 465 | $ | 515 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Statement Of Other Comprehensive Income [Abstract] | |||||||||||||
Schedule of the accumulated other comprehensive loss balances, net of tax | |||||||||||||
Balance at | Current Period | Balance at | |||||||||||
31-Dec-13 | Change | 31-Dec-14 | |||||||||||
Unrealized gains (losses) on securities available for sale | $ | (203 | ) | $ | 197 | $ | (6 | ) | |||||
Unrecognized loss on securities held to maturity for which other than | |||||||||||||
temporary impairment charges have been taken | (2,535 | ) | 23 | (2,512 | ) | ||||||||
Unrealized loss on securities available for sale transferred to held to maturity | (452 | ) | (50 | ) | (502 | ) | |||||||
. | |||||||||||||
Total | $ | (3,190 | ) | $ | 170 | $ | (3,020 | ) |
QUARTERLY_FINANCIAL_DATA_UNAUD1
QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of income statement information (unaudited) | |||||||||||||||||||||||||
Interest | Net Interest | Income | Net | Earnings Per Share | |||||||||||||||||||||
Income | Income | Before Taxes | Income | Basic | Diluted | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||
First quarter | $ | 8,641 | $ | 7,587 | $ | 2,434 | $ | 1,642 | $ | 0.14 | $ | 0.14 | |||||||||||||
Second quarter | 8,926 | 7,859 | 2,733 | 1,772 | 0.15 | 0.15 | |||||||||||||||||||
Third quarter | 9,984 | 8,812 | 3,157 | 2,108 | 0.18 | 0.17 | |||||||||||||||||||
Fourth quarter | 10,541 | 9,160 | 2,914 | 1,961 | 0.16 | 0.16 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||
First quarter | $ | 9,023 | $ | 7,770 | $ | 2,262 | $ | 1,526 | $ | 0.13 | $ | 0.13 | |||||||||||||
Second quarter | 8,549 | 7,374 | 2,299 | 1,555 | 0.13 | 0.13 | |||||||||||||||||||
Third quarter | 8,847 | 7,724 | 2,641 | 1,780 | 0.15 | 0.15 | |||||||||||||||||||
Fourth quarter | 8,697 | 7,580 | 2,092 | 1,397 | 0.12 | 0.12 |
ORGANIZATION_AND_SIGNIFICANT_A2
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Greater Atlantic Bank | |
Organization And Significant Accounting Policies [Line Items] | |
Loss sharing agreement | $143.40 |
FDIC indemnification asset term | 5 years |
Sonabank | Virginia | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 15 |
Sonabank | Warrenton | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 2 |
Sonabank | Maryland | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 9 |
Sonabank | Maryland | Rockville | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Shady Grove | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Germantown | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Frederick | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Bethesda | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Upper Marlboro | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Brandywine | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Owings | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Maryland | Huntingtown | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | South Riding | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Front Royal | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | New Market | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Richmond | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Haymarket | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Clifton Forge | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 1 |
Sonabank | Middleburg and Leesburg | |
Organization And Significant Accounting Policies [Line Items] | |
Number of branches | 2 |
ORGANIZATION_AND_SIGNIFICANT_A3
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 1) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings and related components | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Estimated useful lives | 30 years |
Furniture, fixtures and equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciation method | straight-line method |
Estimated useful lives | 3 to 10 years |
ORGANIZATION_AND_SIGNIFICANT_A4
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 2) (Core Deposits) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 6 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives of intangible assets | 15 years |
ORGANIZATION_AND_SIGNIFICANT_A5
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Agreement | |||
Organization And Significant Accounting Policies Line Items [Line Items] | |||
Percentage of capital, par value FRB stock required to own | 6.00% | ||
FDIC indemnification asset | $3,571,000 | $5,804,000 | $6,735,000 |
Amount to be recover from FDIC under indemnification agreement | 2,300,000 | ||
Number of agreement with FDIC | 2 | ||
Number of reportable segment | 1 | ||
Restricted cash on hand or on deposit with Federal Reserve Bank | $1,500,000 | $1,800,000 | |
Single Family Assets | |||
Organization And Significant Accounting Policies Line Items [Line Items] | |||
Term of FDIC agreement | 10 years | ||
Non-Single Family (Commercial) Assets | |||
Organization And Significant Accounting Policies Line Items [Line Items] | |||
Term of FDIC agreement | 5 years |
SECURITIES_Amortized_cost_and_
SECURITIES - Amortized cost and fair value of securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Fair Value | $2,285 | $1,993 |
Obligations of states and political subdivisions | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 2,295 | 2,302 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | -10 | -309 |
Fair Value | 2,285 | 1,993 |
FHLMC preferred stock | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Gross Unrealized Gains | $142 |
SECURITIES_Carrying_amount_and
SECURITIES - Carrying amount and fair value of securities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | $94,058 | $82,443 |
Gross Unrecognized Gains | 2,637 | 1,614 |
Gross Unrecognized Losses | -2,602 | -7,864 |
Fair Value | 94,093 | 76,193 |
Residential government-sponsored mortgage-backed securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 22,897 | 25,609 |
Gross Unrecognized Gains | 708 | 673 |
Gross Unrecognized Losses | -8 | -294 |
Fair Value | 23,597 | 25,988 |
Residential government-sponsored collateralized mortgage obligations | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 3,564 | 4,295 |
Gross Unrecognized Gains | 2 | |
Gross Unrecognized Losses | -53 | -349 |
Fair Value | 3,511 | 3,948 |
Government-sponsored agency securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 44,949 | 29,971 |
Gross Unrecognized Gains | 294 | |
Gross Unrecognized Losses | -822 | -3,994 |
Fair Value | 44,421 | 25,977 |
Obligations of states and political subdivisions | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 15,531 | 14,388 |
Gross Unrecognized Gains | 108 | |
Gross Unrecognized Losses | -145 | -987 |
Fair Value | 15,494 | 13,401 |
Other residential collateralized mortgage obligations | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 599 | 659 |
Gross Unrecognized Gains | ||
Gross Unrecognized Losses | -12 | |
Fair Value | 599 | 647 |
Trust preferred securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Amortized Cost | 6,518 | 7,521 |
Gross Unrecognized Gains | 1,527 | 939 |
Gross Unrecognized Losses | -1,574 | -2,228 |
Fair Value | $6,471 | $6,232 |
SECURITIES_Contractual_maturit
SECURITIES - Contractual maturity (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Held to Maturity, due in five to ten years, amortized cost | $12,674 |
Held to Maturity, due in five to ten years, fair value | 12,555 |
Available for Sale, due in five to ten years, amortized cost | |
Available for Sale, due in five to ten years, fair value | |
Held to maturity, due after ten years, amortized cost | 54,324 |
Held to maturity, due after ten years, fair value | 53,831 |
Available for sale, due after ten years, amortized cost | 2,295 |
Available for sale, due after ten years, fair value | 2,285 |
Held to maturity, amortized cost | 94,058 |
Held to maturity, fair value | 94,093 |
Available for sale, amortized cost | 2,295 |
Available for sale, fair value | 2,285 |
Residential government-sponsored mortgage-backed securities | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Held to maturity, amortized cost | 22,897 |
Held to maturity, fair value | 23,597 |
Available for sale, amortized cost | |
Available for sale, fair value | |
Residential government-sponsored collateralized mortgage obligations | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Held to maturity, amortized cost | 3,564 |
Held to maturity, fair value | 3,511 |
Available for sale, amortized cost | |
Available for sale, fair value | |
Other residential collateralized mortgage obligations | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Held to maturity, amortized cost | 599 |
Held to maturity, fair value | 599 |
Available for sale, amortized cost | |
Available for sale, fair value |
SECURITIES_Securities_in_conti
SECURITIES - Securities in continuous unrealized loss position (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | $4,683 | $35,335 |
Held to Maturity, less than 12 months unrecognized losses | -31 | -2,493 |
Held to Maturity, 12 months or more, fair value | 44,345 | 24,378 |
Held to Maturity, 12 months or more, unrecognized losses | -2,571 | -5,371 |
Held to maturity, total fair value | 49,028 | 59,713 |
Held to maturity, total unrecognized losses | -2,602 | -7,864 |
Obligations of states and political subdivisions | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Available for sale, less than 12 months, fair value | 485 | 409 |
Available for sale, less than 12 months, unrealized losses | -1 | -78 |
Available for sale, 12 months or more, fair value | 1,800 | 1,584 |
Available for sale, 12 months or more, unrealized losses | -9 | -231 |
Available for sale, total fair value | 2,285 | 1,993 |
Available for sale, total unrealized losses | -10 | -309 |
Held to maturity, less than 12 months, fair value | 485 | 10,327 |
Held to Maturity, less than 12 months unrecognized losses | -20 | -588 |
Held to Maturity, 12 months or more, fair value | 8,139 | 3,064 |
Held to Maturity, 12 months or more, unrecognized losses | -125 | -399 |
Held to maturity, total fair value | 8,624 | 13,391 |
Held to maturity, total unrecognized losses | -145 | -987 |
Residential government-sponsored mortgage-backed securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | 3,506 | 12,644 |
Held to Maturity, less than 12 months unrecognized losses | -8 | -294 |
Held to Maturity, 12 months or more, fair value | ||
Held to Maturity, 12 months or more, unrecognized losses | ||
Held to maturity, total fair value | 3,506 | 12,644 |
Held to maturity, total unrecognized losses | -8 | -294 |
Residential government-sponsored collateralized mortgage obligations | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | 692 | 2,984 |
Held to Maturity, less than 12 months unrecognized losses | -3 | -394 |
Held to Maturity, 12 months or more, fair value | 2,819 | |
Held to Maturity, 12 months or more, unrecognized losses | -50 | |
Held to maturity, total fair value | 3,511 | 2,984 |
Held to maturity, total unrecognized losses | -53 | -394 |
Government-Sponsored Agency Securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | 8,733 | |
Held to Maturity, less than 12 months unrecognized losses | -1,250 | |
Held to Maturity, 12 months or more, fair value | 29,154 | 17,244 |
Held to Maturity, 12 months or more, unrecognized losses | -822 | -2,744 |
Held to maturity, total fair value | 29,154 | 25,977 |
Held to maturity, total unrecognized losses | -822 | -3,994 |
Other residential collateralized mortgage obligations | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | 647 | |
Held to Maturity, less than 12 months unrecognized losses | -12 | |
Held to Maturity, 12 months or more, fair value | ||
Held to Maturity, 12 months or more, unrecognized losses | ||
Held to maturity, total fair value | 647 | |
Held to maturity, total unrecognized losses | -12 | |
Trust preferred securities | ||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | ||
Held to maturity, less than 12 months, fair value | ||
Held to Maturity, less than 12 months unrecognized losses | ||
Held to Maturity, 12 months or more, fair value | 4,233 | 4,070 |
Held to Maturity, 12 months or more, unrecognized losses | -1,574 | -2,228 |
Held to maturity, total fair value | 4,233 | 4,070 |
Held to maturity, total unrecognized losses | ($1,574) | ($2,228) |
SECURITIES_Owned_pooled_trust_
SECURITIES - Owned pooled trust preferred securities (Details 4) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other than temporarily impaired | ||||
Cumulative Other Comprehensive Loss | ($4) | |||
Cumulative OTTI Related to Credit Loss | ||||
Estimated fair value | 94,093 | 76,193 | ||
Trust preferred securities | ||||
Security | ||||
Par value - security | 5,794 | |||
Book value - security | 5,298 | |||
Estimated fair value - security | 3,745 | |||
Previously Recognized Cumulative Other Comprehensive Loss | 271 | [1] | ||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 14,420 | |||
Book value - other than temporarily impaired | 1,220 | |||
Estimated fair value - other than temporarily impaired | 2,726 | |||
Cumulative Other Comprehensive Loss | 4,384 | [2] | ||
Cumulative OTTI Related to Credit Loss | 8,816 | [2] | ||
Par value | 20,214 | |||
Book value | 6,518 | |||
Estimated fair value | 6,471 | 6,232 | ||
Trust preferred securities | ALESCO VII A1B Senior | Rating Of Moody AAA Fitch AAA When Purchased and Current Moody Baa3 Fitch BBB | ||||
Security | ||||
Par value - security | 5,466 | |||
Book value - security | 4,975 | |||
Estimated fair value - security | 3,553 | |||
Current Deferrals and Defaults - Security | 16.00% | |||
Previously Recognized Cumulative Other Comprehensive Loss | 266 | [1] | ||
Trust preferred securities | MMCF III B Senior Sub | Rating Of Moody A3 Fitch A- When Purchased and Current Moody Ba1 Fitch CC | ||||
Security | ||||
Par value - security | 328 | |||
Book value - security | 323 | |||
Estimated fair value - security | 192 | |||
Current Deferrals and Defaults - Security | 34.00% | |||
Previously Recognized Cumulative Other Comprehensive Loss | 5 | [1] | ||
Trust preferred securities | TPREF FUNDING II Mezzanine | Rating Of Moody A1 Fitch A- When Purchased and Current Moody Caa3 Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 1,500 | |||
Book value - other than temporarily impaired | 509 | |||
Estimated fair value - other than temporarily impaired | 488 | |||
Current Deferrals and Defaults - other than temporarily impaired | 39.00% | |||
Cumulative Other Comprehensive Loss | 591 | [2] | ||
Cumulative OTTI Related to Credit Loss | 400 | [2] | ||
Trust preferred securities | TRAP 2007-XII C1 Mezzanine | Rating Of Moody A3 Fitch A When Purchased and Current Moody C Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 2,178 | |||
Book value - other than temporarily impaired | 57 | |||
Estimated fair value - other than temporarily impaired | 395 | |||
Current Deferrals and Defaults - other than temporarily impaired | 26.00% | |||
Cumulative Other Comprehensive Loss | 828 | [2] | ||
Cumulative OTTI Related to Credit Loss | 1,293 | [2] | ||
Trust preferred securities | TRAP 2007-XIII D Mezzanine | Rating Of Fitch A- When Purchased and Current Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 2,039 | |||
Book value - other than temporarily impaired | ||||
Estimated fair value - other than temporarily impaired | 324 | |||
Current Deferrals and Defaults - other than temporarily impaired | 17.00% | |||
Cumulative Other Comprehensive Loss | 7 | [2] | ||
Cumulative OTTI Related to Credit Loss | 2,032 | [2] | ||
Trust preferred securities | MMC FUNDING XVIII Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody Ca Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 1,095 | |||
Book value - other than temporarily impaired | 27 | |||
Estimated fair value - other than temporarily impaired | 295 | |||
Current Deferrals and Defaults - other than temporarily impaired | 21.00% | |||
Cumulative Other Comprehensive Loss | 377 | [2] | ||
Cumulative OTTI Related to Credit Loss | 691 | [2] | ||
Trust preferred securities | ALESCO V C1 Mezzanine | Rating Of Moody A2 Fitch A When Purchased and Current Moody C Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 2,150 | |||
Book value - other than temporarily impaired | 475 | |||
Estimated fair value - other than temporarily impaired | 575 | |||
Current Deferrals and Defaults - other than temporarily impaired | 15.00% | |||
Cumulative Other Comprehensive Loss | 1,014 | [2] | ||
Cumulative OTTI Related to Credit Loss | 661 | [2] | ||
Trust preferred securities | ALESCO XV C1Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody C Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 3,279 | |||
Book value - other than temporarily impaired | 31 | |||
Estimated fair value - other than temporarily impaired | 86 | |||
Current Deferrals and Defaults - other than temporarily impaired | 33.00% | |||
Cumulative Other Comprehensive Loss | 689 | [2] | ||
Cumulative OTTI Related to Credit Loss | 2,559 | [2] | ||
Trust preferred securities | ALESCO XVI C Mezzanine | Rating Of Moody A3 Fitch A- When Purchased and Current Moody C Fitch C | ||||
Other than temporarily impaired | ||||
Par value - other than temporarily impaired | 2,179 | |||
Book value - other than temporarily impaired | 121 | |||
Estimated fair value - other than temporarily impaired | 563 | |||
Current Deferrals and Defaults - other than temporarily impaired | 15.00% | |||
Cumulative Other Comprehensive Loss | 878 | |||
Cumulative OTTI Related to Credit Loss | $1,180 | |||
[1] | Pre-tax, and represents unrealized losses at date of transfer from available-for-sale to held-to-maturity, net of accretion | |||
[2] | Pre-tax |
SECURITIES_Roll_forward_of_cre
SECURITIES - Roll forward of credit losses (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Amount of cumulative other-than-temporary impairment related to credit loss prior to January 1 | $8,911 | $8,994 | $8,277 |
Amounts related to credit loss for which an other-than-temporary impairment was not previously recognized | |||
Amounts related to credit loss for which an other-than-temporary impairment was previously recognized | 41 | 3 | 717 |
Reductions due to realized losses | -3 | -86 | |
Amount of cumulative other-than-temporary impairment related to credit loss as of December 31 | $8,949 | $8,911 | $8,994 |
SECURITIES_Changes_in_accumula
SECURITIES - Changes in accumulated other comprehensive income by component (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | ($3,190) | ($2,981) | |
Other comprehensive income/(loss) before reclassifications | 170 | -115 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | -94 | ||
Net current-period other comprehensive income/(loss) | 170 | -209 | 201 |
Ending balance | -3,020 | -3,190 | -2,981 |
Unrealized Holding Gains (Losses) on Available for Sale Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -203 | 44 | |
Other comprehensive income/(loss) before reclassifications | 197 | -153 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | -94 | ||
Net current-period other comprehensive income/(loss) | 197 | -247 | |
Ending balance | -6 | -203 | |
Held to Maturity Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning balance | -2,987 | -3,025 | |
Other comprehensive income/(loss) before reclassifications | -27 | 38 | |
Amounts reclassified from accumulated other comprehensive income/(loss) | |||
Net current-period other comprehensive income/(loss) | -27 | 38 | |
Ending balance | ($3,014) | ($2,987) |
SECURITIES_Detail_Textuals
SECURITIES (Detail Textuals) (USD $) | 12 Months Ended | ||
Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | $159,000 | $22,914,000 | |
Temporarily impaired securities | 41,000 | 3,000 | 717,000 |
FHLMC preferred stock | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Number of preferred stock sold | 55 | ||
Amount of gains resulting in transaction | 142,000 | ||
SBA guaranteed | HarVest Bank of Maryland | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Sale of investment available-for-sale | 14,400,000 | ||
Amount of losses resulting in transaction | -13,000 | ||
SBA guaranteed | Greater Atlantic Bank | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Amount of gains resulting in transaction | 287,000 | ||
Sale of investment available-for-sale | 8,200,000 | ||
Federal Home Loan Bank of Atlanta | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Securities with a carrying amount were pledged to secure public deposits | 71,800,000 | 65,300,000 | |
Temporarily impaired securities | $51,300,000 |
SECURITIES_Detail_Textuals_1
SECURITIES (Detail Textuals 1) (USD $) | 12 Months Ended |
In Billions, unless otherwise specified | Dec. 31, 2014 |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Other than temporary impairment performing collateral will default or defer per annum | 0.50% |
Recoveries ranging | 11.00% |
Period of no prepayments for security | 10 years |
Percentage of prepayments for remaining life of the security | 1.00% |
SBA guaranteed | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Prepay collateral issued by banks with assets over $15 billion in 2014 | 10.00% |
Percentage of collateral issued by banks in second year | 15.00% |
Trust preferred securities | |
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |
Average assets with bank | 15 |
SECURITIES_Detail_Textuals_2
SECURITIES (Detail Textuals 2) (Trust preferred securities, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trust preferred securities | |||
Schedule Of Available For Sale and Held To Maturity Securities [Line Items] | |||
OTTI charges related to credit | $41 | $3 | $717 |
LOANS_Summary_Details
LOANS - Summary (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans, net of deferred fees | $696,058 | $538,968 | ||
Total Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 136,597 | 107,828 | ||
Commercial real estate - non-owner-occupied | 200,517 | 155,837 | ||
Secured by farmland | 612 | 608 | ||
Construction and land development | 57,938 | 39,069 | ||
Residential 1-4 family | 138,070 | 83,113 | ||
Multi- family residential | 21,832 | 22,081 | ||
Home equity lines of credit | 33,409 | 32,200 | ||
Total real estate loans | 588,975 | 440,736 | ||
Commercial loans | 114,714 | 105,381 | ||
Consumer loans | 1,564 | 1,389 | ||
Gross loans | 705,253 | 547,506 | ||
Less deferred fees on loans | -1,781 | -1,448 | ||
Loans, net of deferred fees | 703,472 | 546,058 | ||
Total Loans | Covered loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | [1] | 1,603 | [1] | |
Commercial real estate - non-owner-occupied | [1] | 5,829 | [1] | |
Secured by farmland | [1] | 100 | [1] | |
Construction and land development | [1] | 1 | [1] | |
Residential 1-4 family | 14,837 | [1] | 16,631 | [1] |
Multi- family residential | [1] | 585 | [1] | |
Home equity lines of credit | 23,658 | [1] | 25,769 | [1] |
Total real estate loans | 38,495 | [1] | 50,518 | [1] |
Commercial loans | [1] | 1,097 | [1] | |
Consumer loans | [1] | 81 | [1] | |
Gross loans | 38,495 | [1] | 51,696 | [1] |
Less deferred fees on loans | 1 | [1] | 5 | [1] |
Loans, net of deferred fees | 38,496 | [1] | 51,701 | [1] |
Total Loans | Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 136,597 | 106,225 | ||
Commercial real estate - non-owner-occupied | 200,517 | 150,008 | ||
Secured by farmland | 612 | 508 | ||
Construction and land development | 57,938 | 39,068 | ||
Residential 1-4 family | 123,233 | 66,482 | ||
Multi- family residential | 21,832 | 21,496 | ||
Home equity lines of credit | 9,751 | 6,431 | ||
Total real estate loans | 550,480 | 390,218 | ||
Commercial loans | 114,714 | 104,284 | ||
Consumer loans | 1,564 | 1,308 | ||
Gross loans | 666,758 | 495,810 | ||
Less deferred fees on loans | -1,782 | -1,453 | ||
Loans, net of deferred fees | $664,976 | $494,357 | ||
[1] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. |
LOANS_Impaired_loans_Details_1
LOANS - Impaired loans (Details 1) (Total Loans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | $18,991 | $22,565 | ||
With no related allowance recorded - Unpaid Principal Balance | 19,564 | 23,990 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 6,561 | 4,755 | ||
With an allowance recorded - Unpaid Principal Balance | 8,380 | 5,655 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 705 | 717 | ||
Recorded Investment, Grand total | 25,552 | 27,320 | ||
Unpaid Principal Balance, Grand total | 27,944 | 29,645 | ||
Related Allowance, Grand total | 705 | 717 | ||
Commercial real estate - owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 10,394 | 8,221 | ||
With no related allowance recorded - Unpaid Principal Balance | 10,394 | 8,320 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 1,609 | 400 | ||
With an allowance recorded - Unpaid Principal Balance | 2,231 | 500 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 151 | 192 | ||
Commercial real estate - non-owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 1,859 | [1] | 2,504 | [1] |
With no related allowance recorded - Unpaid Principal Balance | 2,118 | [1] | 2,935 | [1] |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | [1] | [1] | ||
With an allowance recorded - Unpaid Principal Balance | [1] | [1] | ||
With an allowance recorded - Allowance for Loan Losses Allocated | [1] | [1] | ||
Construction and land development | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 2,107 | |||
With no related allowance recorded - Unpaid Principal Balance | 2,307 | |||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 467 | |||
With an allowance recorded - Unpaid Principal Balance | 740 | |||
With an allowance recorded - Allowance for Loan Losses Allocated | 120 | |||
Commercial loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 4,998 | 3,155 | ||
With no related allowance recorded - Unpaid Principal Balance | 4,999 | 3,631 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 3,141 | 1,718 | ||
With an allowance recorded - Unpaid Principal Balance | 3,944 | 2,518 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 134 | 325 | ||
Residential 1-4 family | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 1,740 | [2] | 6,578 | [2] |
With no related allowance recorded - Unpaid Principal Balance | 2,053 | [2] | 6,797 | [2] |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 1,344 | [2] | 2,637 | [2] |
With an allowance recorded - Unpaid Principal Balance | 1,465 | [2] | 2,637 | [2] |
With an allowance recorded - Allowance for Loan Losses Allocated | 300 | [2] | 200 | [2] |
Other consumer loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | ||||
With no related allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Covered loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 1,740 | 4,110 | ||
With no related allowance recorded - Unpaid Principal Balance | 2,053 | 4,769 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Recorded Investment, Grand total | 1,740 | 4,110 | ||
Unpaid Principal Balance, Grand total | 2,053 | 4,769 | ||
Related Allowance, Grand total | ||||
Covered loans | Commercial real estate - owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 745 | |||
With no related allowance recorded - Unpaid Principal Balance | 844 | |||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Covered loans | Commercial real estate - non-owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | [1] | 2,145 | [1] | |
With no related allowance recorded - Unpaid Principal Balance | [1] | 2,486 | [1] | |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | [1] | [1] | ||
With an allowance recorded - Unpaid Principal Balance | [1] | [1] | ||
With an allowance recorded - Allowance for Loan Losses Allocated | [1] | |||
Covered loans | Construction and land development | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | ||||
With no related allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Covered loans | Commercial loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | ||||
With no related allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Covered loans | Residential 1-4 family | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 1,740 | [2] | 1,220 | [2] |
With no related allowance recorded - Unpaid Principal Balance | 2,053 | [2] | 1,439 | [2] |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | [2] | [2] | ||
With an allowance recorded - Unpaid Principal Balance | [2] | [2] | ||
With an allowance recorded - Allowance for Loan Losses Allocated | [2] | |||
Covered loans | Other consumer loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | ||||
With no related allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | ||||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
Non-covered Loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 17,251 | [3] | 18,455 | [3] |
With no related allowance recorded - Unpaid Principal Balance | 17,511 | 19,221 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 6,561 | [3] | 4,755 | [3] |
With an allowance recorded - Unpaid Principal Balance | 8,380 | 5,655 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 705 | 717 | ||
Recorded Investment, Grand total | 23,812 | [3] | 23,210 | [3] |
Unpaid Principal Balance, Grand total | 25,891 | 24,876 | ||
Related Allowance, Grand total | 705 | 717 | ||
Non-covered Loans | Commercial real estate - owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 10,394 | [3] | 7,476 | [3] |
With no related allowance recorded - Unpaid Principal Balance | 10,394 | 7,476 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 1,609 | [3] | 400 | [3] |
With an allowance recorded - Unpaid Principal Balance | 2,231 | 500 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 151 | 192 | ||
Non-covered Loans | Commercial real estate - non-owner occupied | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 1,859 | [1],[3] | 359 | [1],[3] |
With no related allowance recorded - Unpaid Principal Balance | 2,118 | [1] | 449 | [1] |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | [1] | [1],[3] | ||
With an allowance recorded - Unpaid Principal Balance | [1] | [1] | ||
With an allowance recorded - Allowance for Loan Losses Allocated | [1] | [1] | ||
Non-covered Loans | Construction and land development | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | [3] | 2,107 | [3] | |
With no related allowance recorded - Unpaid Principal Balance | 2,307 | |||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 467 | [3] | [3] | |
With an allowance recorded - Unpaid Principal Balance | 740 | |||
With an allowance recorded - Allowance for Loan Losses Allocated | 120 | |||
Non-covered Loans | Commercial loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | 4,998 | [3] | 3,155 | [3] |
With no related allowance recorded - Unpaid Principal Balance | 4,999 | 3,631 | ||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 3,141 | [3] | 1,718 | [3] |
With an allowance recorded - Unpaid Principal Balance | 3,944 | 2,518 | ||
With an allowance recorded - Allowance for Loan Losses Allocated | 134 | 325 | ||
Non-covered Loans | Residential 1-4 family | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | [2],[3] | 5,358 | [2],[3] | |
With no related allowance recorded - Unpaid Principal Balance | [2] | 5,358 | [2] | |
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | 1,344 | [2],[3] | 2,637 | [2],[3] |
With an allowance recorded - Unpaid Principal Balance | 1,465 | [2] | 2,637 | [2] |
With an allowance recorded - Allowance for Loan Losses Allocated | 300 | [2] | 200 | [2] |
Non-covered Loans | Other consumer loans | ||||
With no related allowance recorded | ||||
With no related allowance recorded - Recorded Investment | [3] | [3] | ||
With no related allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded | ||||
With an allowance recorded - Recorded Investment | [3] | [3] | ||
With an allowance recorded - Unpaid Principal Balance | ||||
With an allowance recorded - Allowance for Loan Losses Allocated | ||||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||
[2] | Includes home equity lines of credit. | |||
[3] | Recorded investment is after cumulative prior charge offs of $1.7 million. These loans also have aggregate SBA guarantees of $4.7 million. |
LOANS_Average_recorded_investm
LOANS - Average recorded investment and interest income for impaired loans (Details 2) (Total Loans, USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | $13,037 | $19,625 | $15,605 | |||
With no related allowance recorded, Interest Income Recognized | 774 | 1,126 | 588 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 3,143 | 4,616 | 3,398 | |||
With an allowance recorded, Interest IncomeRecognized | 14 | 144 | 213 | |||
Average Recorded Investment, Grand total | 16,180 | 24,241 | 19,003 | |||
Interest Income Recognized, Grand total | 788 | 1,270 | 801 | |||
Commercial real estate - owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 8,154 | 7,226 | 858 | |||
With no related allowance recorded, Interest Income Recognized | 511 | 494 | 58 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 326 | 123 | 270 | |||
With an allowance recorded, Interest IncomeRecognized | 14 | 17 | 21 | |||
Commercial real estate - non-owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | [1] | 2,644 | [1] | 4,043 | [1] | |
With no related allowance recorded, Interest Income Recognized | [1] | 172 | [1] | 101 | [1] | |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | [1] | [1] | 1,345 | [1] | ||
With an allowance recorded, Interest IncomeRecognized | [1] | [1] | 102 | [1] | ||
Construction and land development | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,181 | 4,245 | ||||
With no related allowance recorded, Interest Income Recognized | 196 | |||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 36 | |||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Commercial loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 3,632 | 1,811 | 4,046 | |||
With no related allowance recorded, Interest Income Recognized | 223 | 66 | 155 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 2,317 | 1,875 | ||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Residential 1-4 family | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,251 | [2] | 6,763 | [2] | 2,413 | [2] |
With no related allowance recorded, Interest Income Recognized | 40 | [2] | 394 | [2] | 78 | [2] |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 464 | [2] | 2,618 | [2] | 1,783 | [2] |
With an allowance recorded, Interest IncomeRecognized | [2] | 127 | [2] | 90 | [2] | |
Other consumer loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | ||||||
With no related allowance recorded, Interest Income Recognized | ||||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Covered loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,251 | 4,273 | 4,715 | |||
With no related allowance recorded, Interest Income Recognized | 40 | 236 | 234 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Average Recorded Investment, Grand total | 1,251 | 4,273 | 4,715 | |||
Interest Income Recognized, Grand total | 40 | 236 | 234 | |||
Covered loans | Commercial real estate - owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 770 | 134 | ||||
With no related allowance recorded, Interest Income Recognized | 55 | 19 | ||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Covered loans | Commercial real estate - non-owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | [1] | 2,274 | [1] | 2,101 | [1] | |
With no related allowance recorded, Interest Income Recognized | [1] | 134 | [1] | 62 | [1] | |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | [1] | [1] | [1] | |||
With an allowance recorded, Interest IncomeRecognized | [1] | [1] | [1] | |||
Covered loans | Construction and land development | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,087 | |||||
With no related allowance recorded, Interest Income Recognized | 101 | |||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Covered loans | Commercial loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 210 | |||||
With no related allowance recorded, Interest Income Recognized | 23 | |||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Covered loans | Residential 1-4 family | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,251 | [2] | 1,229 | [2] | 1,183 | [2] |
With no related allowance recorded, Interest Income Recognized | 40 | [2] | 47 | [2] | 29 | [2] |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | [2] | [2] | [2] | |||
With an allowance recorded, Interest IncomeRecognized | [2] | [2] | [2] | |||
Covered loans | Other consumer loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | ||||||
With no related allowance recorded, Interest Income Recognized | ||||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Non-covered Loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 11,786 | 15,352 | 10,890 | |||
With no related allowance recorded, Interest Income Recognized | 734 | 890 | 354 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 3,143 | 4,616 | 3,398 | |||
With an allowance recorded, Interest IncomeRecognized | 14 | 144 | 213 | |||
Average Recorded Investment, Grand total | 14,929 | 19,968 | 14,288 | |||
Interest Income Recognized, Grand total | 748 | 1,034 | 567 | |||
Non-covered Loans | Commercial real estate - owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 8,154 | 6,456 | 724 | |||
With no related allowance recorded, Interest Income Recognized | 511 | 439 | 39 | |||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 326 | 123 | 270 | |||
With an allowance recorded, Interest IncomeRecognized | 14 | 17 | 21 | |||
Non-covered Loans | Commercial real estate - non-owner occupied | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | [1] | 370 | [1] | 1,942 | [1] | |
With no related allowance recorded, Interest Income Recognized | [1] | 38 | [1] | 39 | [1] | |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | [1] | [1] | 1,345 | [1] | ||
With an allowance recorded, Interest IncomeRecognized | [1] | [1] | 102 | [1] | ||
Non-covered Loans | Construction and land development | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 1,181 | 3,158 | ||||
With no related allowance recorded, Interest Income Recognized | 95 | |||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 36 | |||||
With an allowance recorded, Interest IncomeRecognized | ||||||
Non-covered Loans | Commercial loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | 3,632 | 1,811 | 3,836 | [2] | ||
With no related allowance recorded, Interest Income Recognized | 223 | 66 | 132 | [2] | ||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 2,317 | 1,875 | [2] | |||
With an allowance recorded, Interest IncomeRecognized | [2] | |||||
Non-covered Loans | Residential 1-4 family | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | [2] | 5,534 | [2] | 1,230 | [2] | |
With no related allowance recorded, Interest Income Recognized | [2] | 347 | [2] | 49 | [2] | |
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | 464 | [2] | 2,618 | [2] | 1,783 | [2] |
With an allowance recorded, Interest IncomeRecognized | [2] | 127 | [2] | 90 | [2] | |
Non-covered Loans | Other consumer loans | ||||||
With no related allowance recorded | ||||||
With no related allowance recorded, Average Recorded Investment | ||||||
With no related allowance recorded, Interest Income Recognized | ||||||
With an allowance recorded | ||||||
With an allowance recorded, Average Recorded Investment | ||||||
With an allowance recorded, Interest IncomeRecognized | ||||||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||||
[2] | Includes home equity lines of credit. |
LOANS_Aging_of_recorded_invest
LOANS - Aging of recorded investment (Details 3) (Total Loans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | $4,463 | $3,112 | ||
Recorded Investment, 60 - 89 Days Past Due | 734 | 1,352 | ||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 5,197 | 4,464 | ||
Recorded Investment, Nonaccrual Loans | 6,511 | 9,436 | ||
Recorded Investment, Loans Not Past Due | 693,545 | 533,606 | ||
Gross loans | 705,253 | 547,506 | ||
Commercial real estate - owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 708 | |||
Recorded Investment, 60 - 89 Days Past Due | 283 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 991 | |||
Recorded Investment, Nonaccrual Loans | 1,524 | |||
Recorded Investment, Loans Not Past Due | 135,073 | 106,837 | ||
Gross loans | 136,597 | 107,828 | ||
Commercial real estate - non-owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 4,128 | [1] | 862 | [1] |
Recorded Investment, 60 - 89 Days Past Due | [1] | [1] | ||
Recorded Investment, 90 Days or More | [1] | [1] | ||
Recorded Investment, Total Past Due | 4,128 | [1] | 862 | [1] |
Recorded Investment, Nonaccrual Loans | [1] | 245 | [1] | |
Recorded Investment, Loans Not Past Due | 218,833 | [1] | 177,419 | [1] |
Gross loans | 222,961 | [1] | 178,526 | [1] |
Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 8 | |||
Recorded Investment, 60 - 89 Days Past Due | 3 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 11 | |||
Recorded Investment, Nonaccrual Loans | 467 | 2,107 | ||
Recorded Investment, Loans Not Past Due | 57,471 | 36,951 | ||
Gross loans | 57,938 | 39,069 | ||
Commercial loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 522 | |||
Recorded Investment, 60 - 89 Days Past Due | 968 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 1,490 | |||
Recorded Investment, Nonaccrual Loans | 3,140 | 3,070 | ||
Recorded Investment, Loans Not Past Due | 111,574 | 100,821 | ||
Gross loans | 114,714 | 105,381 | ||
Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 329 | [2] | 998 | [2] |
Recorded Investment, 60 - 89 Days Past Due | 734 | [2] | 98 | [2] |
Recorded Investment, 90 Days or More | [2] | [2] | ||
Recorded Investment, Total Past Due | 1,063 | [2] | 1,096 | [2] |
Recorded Investment, Nonaccrual Loans | 1,380 | [2] | 4,014 | [2] |
Recorded Investment, Loans Not Past Due | 169,036 | [2] | 110,203 | [2] |
Gross loans | 171,479 | [2] | 115,313 | [2] |
Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 6 | 14 | ||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 6 | 14 | ||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 1,558 | 1,375 | ||
Gross loans | 1,564 | 1,389 | ||
Covered loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 10 | 544 | ||
Recorded Investment, 60 - 89 Days Past Due | 148 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 158 | 544 | ||
Recorded Investment, Nonaccrual Loans | 859 | 1,622 | ||
Recorded Investment, Loans Not Past Due | 37,478 | 49,530 | ||
Gross loans | 38,495 | [3] | 51,696 | [3] |
Covered loans | Commercial real estate - owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | ||||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | ||||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 1,603 | |||
Gross loans | 1,603 | |||
Covered loans | Commercial real estate - non-owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | [1] | 503 | [1] | |
Recorded Investment, 60 - 89 Days Past Due | [1] | [1] | ||
Recorded Investment, 90 Days or More | [1] | [1] | ||
Recorded Investment, Total Past Due | [1] | 503 | [1] | |
Recorded Investment, Nonaccrual Loans | [1] | 245 | [1] | |
Recorded Investment, Loans Not Past Due | [1] | 5,766 | [1] | |
Gross loans | [1] | 6,514 | [1] | |
Covered loans | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | ||||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | ||||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 1 | |||
Gross loans | 1 | |||
Covered loans | Commercial loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | ||||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | ||||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 1,097 | |||
Gross loans | 1,097 | |||
Covered loans | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 10 | [2] | 41 | [2] |
Recorded Investment, 60 - 89 Days Past Due | 148 | [2] | [2] | |
Recorded Investment, 90 Days or More | 0 | [2] | [2] | |
Recorded Investment, Total Past Due | 158 | [2] | 41 | [2] |
Recorded Investment, Nonaccrual Loans | 859 | [2] | 1,377 | [2] |
Recorded Investment, Loans Not Past Due | 37,478 | [2] | 40,982 | [2] |
Gross loans | 38,495 | [2] | 42,400 | [2] |
Covered loans | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | ||||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | ||||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 81 | |||
Gross loans | 81 | |||
Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 4,453 | 2,568 | ||
Recorded Investment, 60 - 89 Days Past Due | 586 | 1,352 | ||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 5,039 | 3,920 | ||
Recorded Investment, Nonaccrual Loans | 5,652 | 7,814 | ||
Recorded Investment, Loans Not Past Due | 656,067 | 484,076 | ||
Gross loans | 666,758 | 495,810 | ||
Non-covered Loans | Commercial real estate - owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 708 | |||
Recorded Investment, 60 - 89 Days Past Due | 283 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 991 | |||
Recorded Investment, Nonaccrual Loans | 1,524 | |||
Recorded Investment, Loans Not Past Due | 135,073 | 105,234 | ||
Gross loans | 136,597 | 106,225 | ||
Non-covered Loans | Commercial real estate - non-owner occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 4,128 | [1] | 359 | [1] |
Recorded Investment, 60 - 89 Days Past Due | [1] | [1] | ||
Recorded Investment, 90 Days or More | [1] | [1] | ||
Recorded Investment, Total Past Due | 4,128 | [1] | 359 | [1] |
Recorded Investment, Nonaccrual Loans | [1] | [1] | ||
Recorded Investment, Loans Not Past Due | 218,833 | [1] | 171,653 | [1] |
Gross loans | 222,961 | [1] | 172,012 | [1] |
Non-covered Loans | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 8 | |||
Recorded Investment, 60 - 89 Days Past Due | 3 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 11 | |||
Recorded Investment, Nonaccrual Loans | 467 | 2,107 | ||
Recorded Investment, Loans Not Past Due | 57,471 | 36,950 | ||
Gross loans | 57,938 | 39,068 | ||
Non-covered Loans | Commercial loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 522 | |||
Recorded Investment, 60 - 89 Days Past Due | 968 | |||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 1,490 | |||
Recorded Investment, Nonaccrual Loans | 3,140 | 3,070 | ||
Recorded Investment, Loans Not Past Due | 111,574 | 99,724 | ||
Gross loans | 114,714 | 104,284 | ||
Non-covered Loans | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 319 | [2] | 957 | [2] |
Recorded Investment, 60 - 89 Days Past Due | 586 | [2] | 98 | [2] |
Recorded Investment, 90 Days or More | [2] | [2] | ||
Recorded Investment, Total Past Due | 905 | [2] | 1,055 | [2] |
Recorded Investment, Nonaccrual Loans | 521 | [2] | 2,637 | [2] |
Recorded Investment, Loans Not Past Due | 131,558 | [2] | 69,221 | [2] |
Gross loans | 132,984 | [2] | 72,913 | [2] |
Non-covered Loans | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Recorded Investment, 30 to 59 Days Past Due | 6 | 14 | ||
Recorded Investment, 60 - 89 Days Past Due | ||||
Recorded Investment, 90 Days or More | ||||
Recorded Investment, Total Past Due | 6 | 14 | ||
Recorded Investment, Nonaccrual Loans | ||||
Recorded Investment, Loans Not Past Due | 1,558 | 1,294 | ||
Gross loans | $1,564 | $1,308 | ||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||
[2] | Includes home equity lines of credit. | |||
[3] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. |
LOANS_Allowance_for_loan_and_l
LOANS - Allowance for loan and lease losses (Details 4) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $7,090 | |||||
Provision for loan losses | 3,444 | 3,615 | 6,195 | |||
Ending balance | 7,414 | 7,090 | ||||
Total Loans | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 7,039 | 6,967 | 6,295 | |||
Charge offs | -3,270 | -4,055 | -6,206 | |||
Recoveries | 174 | 503 | 702 | |||
Provision for loan losses | 3,450 | 3,624 | 6,176 | |||
Ending balance | 7,393 | 7,039 | 6,967 | |||
Total Loans | Commercial real estate - owner occupied | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 814 | 932 | 627 | |||
Charge offs | -573 | -250 | ||||
Recoveries | 10 | 13 | ||||
Provision for loan losses | 604 | -131 | 555 | |||
Ending balance | 855 | 814 | 932 | |||
Total Loans | Commercial Real Estate Non-owner Occupied | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 985 | [1] | 1,474 | [1] | 1,011 | [1] |
Charge offs | [1] | -199 | [1] | -1,081 | [1] | |
Recoveries | 23 | [1] | 146 | [1] | 261 | [1] |
Provision for loan losses | 115 | [1] | -436 | [1] | 1,283 | [1] |
Ending balance | 1,123 | [1] | 985 | [1] | 1,474 | [1] |
Total Loans | Construction and Land Loans | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,068 | 970 | 1,367 | |||
Charge offs | -20 | -650 | -2,119 | |||
Recoveries | 4 | 7 | 13 | |||
Provision for loan losses | 822 | 741 | 1,709 | |||
Ending balance | 1,644 | 1,068 | 970 | |||
Total Loans | Commercial loans | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 2,797 | 2,110 | 2,227 | |||
Charge offs | -1,998 | -2,286 | -1,676 | |||
Recoveries | 125 | 204 | 334 | |||
Provision for loan losses | 1,139 | 2,769 | 1,225 | |||
Ending balance | 2,063 | 2,797 | 2,110 | |||
Total Loans | 1-4 Family Residential | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 1,302 | [2] | 1,163 | [2] | 1,021 | [2] |
Charge offs | -449 | [2] | -776 | [2] | -1,071 | [2] |
Recoveries | 7 | [2] | 129 | [2] | 85 | [2] |
Provision for loan losses | 462 | [2] | 786 | [2] | 1,128 | [2] |
Ending balance | 1,322 | [2] | 1,302 | [2] | 1,163 | [2] |
Total Loans | Other consumer loans | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 54 | 33 | 42 | |||
Charge offs | -144 | -9 | ||||
Recoveries | 5 | 4 | 9 | |||
Provision for loan losses | -10 | 161 | -9 | |||
Ending balance | 49 | 54 | 33 | |||
Total Loans | Unallocated | Non-covered Loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 19 | 285 | ||||
Charge offs | ||||||
Recoveries | ||||||
Provision for loan losses | 318 | -266 | 285 | |||
Ending balance | $337 | $19 | $285 | |||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||||
[2] | Includes home equity lines of credit. |
LOANS_Activity_in_allowance_fo
LOANS - Activity in allowance for covered loan and lease losses by class of loan (Details 5) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | $7,090 | |||||
Provision for loan losses | 3,444 | 3,615 | 6,195 | |||
Ending balance | 7,414 | 7,090 | ||||
Loans Receivable | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 51 | 99 | ||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | -24 | [1] | -39 | [1] | 80 | [1] |
Provision for loan losses | -6 | -9 | 19 | |||
Ending balance | 21 | 51 | 99 | |||
Loans Receivable | Commercial real estate - owner occupied | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | ||||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | [1] | [1] | [1] | |||
Provision for loan losses | ||||||
Ending balance | ||||||
Loans Receivable | Commercial Real Estate Non-owner Occupied | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 45 | [2] | 45 | [2] | [2] | |
Charge offs | [2] | [2] | [2] | |||
Recoveries | [2] | [2] | [2] | |||
Adjustments | -36 | [1],[2] | [1],[2] | 36 | [1],[2] | |
Provision for loan losses | -9 | [2] | [2] | 9 | [2] | |
Ending balance | [2] | 45 | [2] | 45 | [2] | |
Loans Receivable | Construction and Land Loans | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | ||||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | [1] | [1] | [1] | |||
Provision for loan losses | ||||||
Ending balance | ||||||
Loans Receivable | Commercial loans | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 43 | |||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | [1] | -35 | [1] | 35 | [1] | |
Provision for loan losses | -8 | 8 | ||||
Ending balance | 43 | |||||
Loans Receivable | 1-4 Family Residential | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | [3] | [3] | [3] | |||
Charge offs | [3] | [3] | [3] | |||
Recoveries | [3] | [3] | [3] | |||
Adjustments | 14 | [1],[3] | [1],[3] | [1],[3] | ||
Provision for loan losses | 3 | [3] | [3] | [3] | ||
Ending balance | 17 | [3] | [3] | [3] | ||
Loans Receivable | Other consumer loans | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | 6 | 11 | ||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | -2 | [1] | -4 | [1] | 9 | [1] |
Provision for loan losses | -1 | 2 | ||||
Ending balance | 4 | 6 | 11 | |||
Loans Receivable | Unallocated | Covered loans | ||||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||||
Beginning balance | ||||||
Charge offs | ||||||
Recoveries | ||||||
Adjustments | [1] | [1] | [1] | |||
Provision for loan losses | ||||||
Ending balance | ||||||
[1] | Represents the portion of increased expected losses which is covered by the loss sharing agreement with the FDIC. | |||||
[2] | Includes loans secured by farmland and multi-family residential loans. | |||||
[3] | Includes home equity lines of credit. |
LOANS_Allowance_for_loan_losse
LOANS -Allowance for loan losses and recorded investment in non covered loans by portfolio segment (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
In Thousands, unless otherwise specified | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Total ending allowance | $7,414 | $7,090 | ||||||
Total Loans | ||||||||
Loans: | ||||||||
Total ending loan balances | 705,253 | 547,506 | ||||||
Total Loans | Commercial real estate - owner occupied | ||||||||
Loans: | ||||||||
Total ending loan balances | 136,597 | 107,828 | ||||||
Total Loans | Commercial real estate - non-owner occupied | ||||||||
Loans: | ||||||||
Total ending loan balances | 222,961 | [1] | 178,526 | [1] | ||||
Total Loans | Construction and land development | ||||||||
Loans: | ||||||||
Total ending loan balances | 57,938 | 39,069 | ||||||
Total Loans | Commercial loans | ||||||||
Loans: | ||||||||
Total ending loan balances | 114,714 | 105,381 | ||||||
Total Loans | Residential 1-4 family | ||||||||
Loans: | ||||||||
Total ending loan balances | 171,479 | [2] | 115,313 | [2] | ||||
Total Loans | Other consumer loans | ||||||||
Loans: | ||||||||
Total ending loan balances | 1,564 | 1,389 | ||||||
Total Loans | Non-covered Loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | 705 | 717 | ||||||
Collectively evaluated for impairment | 6,688 | 6,322 | ||||||
Total ending allowance | 7,393 | 7,039 | 6,967 | 6,295 | ||||
Loans: | ||||||||
Individually evaluated for impairment | 23,812 | 23,210 | ||||||
Collectively evaluated for impairment | 642,946 | 472,600 | ||||||
Total ending loan balances | 666,758 | 495,810 | ||||||
Total Loans | Non-covered Loans | Commercial real estate - owner occupied | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | 151 | 192 | ||||||
Collectively evaluated for impairment | 704 | 622 | ||||||
Total ending allowance | 855 | 814 | 932 | 627 | ||||
Loans: | ||||||||
Individually evaluated for impairment | 12,003 | 7,876 | ||||||
Collectively evaluated for impairment | 124,594 | 98,349 | ||||||
Total ending loan balances | 136,597 | 106,225 | ||||||
Total Loans | Non-covered Loans | Commercial real estate - non-owner occupied | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | [1] | [1] | ||||||
Collectively evaluated for impairment | 1,123 | [1] | 985 | [1] | ||||
Total ending allowance | 1,123 | [1] | 985 | [1] | 1,474 | [1] | 1,011 | [1] |
Loans: | ||||||||
Individually evaluated for impairment | 1,859 | [1] | 359 | [1] | ||||
Collectively evaluated for impairment | 221,102 | [1] | 171,653 | [1] | ||||
Total ending loan balances | 222,961 | [1] | 172,012 | [1] | ||||
Total Loans | Non-covered Loans | Construction and land development | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | 120 | |||||||
Collectively evaluated for impairment | 1,524 | 1,068 | ||||||
Total ending allowance | 1,644 | 1,068 | 970 | 1,367 | ||||
Loans: | ||||||||
Individually evaluated for impairment | 467 | 2,107 | ||||||
Collectively evaluated for impairment | 57,471 | 36,961 | ||||||
Total ending loan balances | 57,938 | 39,068 | ||||||
Total Loans | Non-covered Loans | Commercial loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | 134 | 325 | ||||||
Collectively evaluated for impairment | 1,929 | 2,472 | ||||||
Total ending allowance | 2,063 | 2,797 | 2,110 | 2,227 | ||||
Loans: | ||||||||
Individually evaluated for impairment | 8,139 | 4,873 | ||||||
Collectively evaluated for impairment | 106,575 | 99,411 | ||||||
Total ending loan balances | 114,714 | 104,284 | ||||||
Total Loans | Non-covered Loans | Residential 1-4 family | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | 300 | [2] | 200 | [2] | ||||
Collectively evaluated for impairment | 1,022 | [2] | 1,102 | [2] | ||||
Total ending allowance | 1,322 | [2] | 1,302 | [2] | 1,163 | [2] | 1,021 | [2] |
Loans: | ||||||||
Individually evaluated for impairment | 1,344 | [2] | 7,995 | [2] | ||||
Collectively evaluated for impairment | 131,640 | [2] | 64,918 | [2] | ||||
Total ending loan balances | 132,984 | [2] | 72,913 | [2] | ||||
Total Loans | Non-covered Loans | Other consumer loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 49 | 54 | ||||||
Total ending allowance | 49 | 54 | 33 | 42 | ||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 1,564 | 1,308 | ||||||
Total ending loan balances | 1,564 | 1,308 | ||||||
Total Loans | Non-covered Loans | Unallocated Loan | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 337 | 19 | ||||||
Total ending allowance | 337 | 19 | 285 | |||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Total ending loan balances | ||||||||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||||||
[2] | Includes home equity lines of credit. |
LOANS_Balance_in_allowance_for
LOANS - Balance in allowance for covered loan losses and recorded investment in covered loans by portfolio segment and based on impairment method (Details 7) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
In Thousands, unless otherwise specified | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Less allowance for loan losses | $7,414 | $7,090 | ||||||
Loans Receivable | ||||||||
Loans: | ||||||||
Total loans | 705,253 | 547,506 | ||||||
Loans Receivable | Commercial real estate - owner occupied | ||||||||
Loans: | ||||||||
Total loans | 136,597 | 107,828 | ||||||
Loans Receivable | Commercial real estate - non-owner occupied | ||||||||
Loans: | ||||||||
Total loans | 222,961 | [1] | 178,526 | [1] | ||||
Loans Receivable | Construction and land development | ||||||||
Loans: | ||||||||
Total loans | 57,938 | 39,069 | ||||||
Loans Receivable | Commercial loans | ||||||||
Loans: | ||||||||
Total loans | 114,714 | 105,381 | ||||||
Loans Receivable | Residential 1-4 family | ||||||||
Loans: | ||||||||
Total loans | 171,479 | [2] | 115,313 | [2] | ||||
Loans Receivable | Other consumer loans | ||||||||
Loans: | ||||||||
Total loans | 1,564 | 1,389 | ||||||
Loans Receivable | Covered loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 21 | 51 | ||||||
Less allowance for loan losses | 21 | 51 | 99 | |||||
Loans: | ||||||||
Individually evaluated for impairment | 1,740 | 4,110 | ||||||
Collectively evaluated for impairment | 36,755 | 47,586 | ||||||
Total loans | 38,495 | [3] | 51,696 | [3] | ||||
Loans Receivable | Covered loans | Commercial real estate - owner occupied | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Less allowance for loan losses | ||||||||
Loans: | ||||||||
Individually evaluated for impairment | 745 | |||||||
Collectively evaluated for impairment | 858 | |||||||
Total loans | 1,603 | |||||||
Loans Receivable | Covered loans | Commercial real estate - non-owner occupied | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | [1] | [1] | ||||||
Collectively evaluated for impairment | [1] | 45 | [1] | |||||
Less allowance for loan losses | [1] | 45 | [1] | 45 | [1] | [1] | ||
Loans: | ||||||||
Individually evaluated for impairment | [1] | 2,145 | [1] | |||||
Collectively evaluated for impairment | [1] | 4,369 | [1] | |||||
Total loans | [1] | 6,514 | [1] | |||||
Loans Receivable | Covered loans | Construction and land development | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Less allowance for loan losses | ||||||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 1 | |||||||
Total loans | 1 | |||||||
Loans Receivable | Covered loans | Commercial loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Less allowance for loan losses | 43 | |||||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 1,097 | |||||||
Total loans | 1,097 | |||||||
Loans Receivable | Covered loans | Residential 1-4 family | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | [2] | [2] | ||||||
Collectively evaluated for impairment | 17 | [2] | [2] | |||||
Less allowance for loan losses | 17 | [2] | [2] | [2] | [2] | |||
Loans: | ||||||||
Individually evaluated for impairment | 1,740 | [2] | 1,220 | [2] | ||||
Collectively evaluated for impairment | 36,755 | [2] | 41,180 | [2] | ||||
Total loans | 38,495 | [2] | 42,400 | [2] | ||||
Loans Receivable | Covered loans | Other consumer loans | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 4 | 6 | ||||||
Less allowance for loan losses | 4 | 6 | 11 | |||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | 81 | |||||||
Total loans | 81 | |||||||
Loans Receivable | Covered loans | Unallocated Loan | ||||||||
Ending allowance balance attributable to loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Less allowance for loan losses | ||||||||
Loans: | ||||||||
Individually evaluated for impairment | ||||||||
Collectively evaluated for impairment | ||||||||
Total loans | ||||||||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||||||
[2] | Includes home equity lines of credit. | |||||||
[3] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. |
LOANS_Risk_category_of_loans_b
LOANS - Risk category of loans by class of loans (Details 8) (Total Loans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | $136,597 | $107,828 | ||
Commercial real estate - non-owner occupied | 222,961 | [1] | 178,526 | [1] |
Construction and land development | 57,938 | 39,069 | ||
Commercial loans | 114,714 | 105,381 | ||
Residential 1-4 family | 171,479 | [2] | 115,313 | [2] |
Consumer loans | 1,564 | 1,389 | ||
Total loans | 705,253 | 547,506 | ||
Classified/Criticized | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 12,920 | 9,423 | ||
Commercial real estate - non-owner occupied | 234 | [1] | 2,504 | [1] |
Construction and land development | 1,060 | 2,725 | ||
Commercial loans | 8,169 | 4,904 | ||
Residential 1-4 family | 3,668 | [2] | 9,391 | [2] |
Consumer loans | ||||
Total loans | 26,051 | 28,947 | ||
Pass | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 123,677 | 98,405 | ||
Commercial real estate - non-owner occupied | 222,727 | [1] | 176,022 | [1] |
Construction and land development | 56,878 | 36,344 | ||
Commercial loans | 106,545 | 100,477 | ||
Residential 1-4 family | 167,811 | [2] | 105,922 | [2] |
Consumer loans | 1,564 | 1,389 | ||
Total loans | 679,202 | 518,559 | ||
Covered loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | [3] | 1,603 | [3] | |
Commercial real estate - non-owner occupied | [1] | 6,514 | [1] | |
Construction and land development | [3] | 1 | [3] | |
Commercial loans | [3] | 1,097 | [3] | |
Residential 1-4 family | 38,495 | [2] | 42,400 | [2] |
Consumer loans | [3] | 81 | [3] | |
Total loans | 38,495 | [3] | 51,696 | [3] |
Covered loans | Classified/Criticized | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | [4] | 745 | [4] | |
Commercial real estate - non-owner occupied | [1],[4] | 2,145 | [1],[4] | |
Construction and land development | [4] | [4] | ||
Commercial loans | [4] | [4] | ||
Residential 1-4 family | 1,740 | [2],[4] | 1,220 | [2],[4] |
Consumer loans | [4] | [4] | ||
Total loans | 1,740 | [4] | 4,110 | [4] |
Covered loans | Pass | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 858 | |||
Commercial real estate - non-owner occupied | [1] | 4,369 | [1] | |
Construction and land development | 1 | |||
Commercial loans | 1,097 | |||
Residential 1-4 family | 36,755 | [2] | 41,180 | [2] |
Consumer loans | 81 | |||
Total loans | 36,755 | 47,586 | ||
Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 136,597 | 106,225 | ||
Commercial real estate - non-owner occupied | 222,961 | [1] | 172,012 | [1] |
Construction and land development | 57,938 | 39,068 | ||
Commercial loans | 114,714 | 104,284 | ||
Residential 1-4 family | 132,984 | [2] | 72,913 | [2] |
Consumer loans | 1,564 | 1,308 | ||
Total loans | 666,758 | 495,810 | ||
Non-covered Loans | Special Mention | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 917 | 802 | ||
Commercial real estate - non-owner occupied | 234 | [1] | [1] | |
Construction and land development | 593 | 618 | ||
Commercial loans | 30 | 31 | ||
Residential 1-4 family | 584 | [2] | 176 | [2] |
Consumer loans | ||||
Total loans | 2,358 | 1,627 | ||
Non-covered Loans | Substandard | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 12,003 | [5] | 7,876 | [5] |
Commercial real estate - non-owner occupied | [1],[5] | 359 | [1],[5] | |
Construction and land development | 467 | [5] | 2,107 | [5] |
Commercial loans | 8,139 | [5] | 4,873 | [5] |
Residential 1-4 family | 1,344 | [2],[5] | 7,995 | [2],[5] |
Consumer loans | [5] | [5] | ||
Total loans | 21,953 | [5] | 23,210 | [5] |
Non-covered Loans | Pass | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Commercial real estate - owner-occupied | 123,677 | 97,547 | ||
Commercial real estate - non-owner occupied | 222,727 | [1] | 171,653 | [1] |
Construction and land development | 56,878 | 36,343 | ||
Commercial loans | 106,545 | 99,380 | ||
Residential 1-4 family | 131,056 | [2] | 64,742 | [2] |
Consumer loans | 1,564 | 1,308 | ||
Total loans | $642,447 | $470,973 | ||
[1] | Includes loans secured by farmland and multi-family residential loans. | |||
[2] | Includes home equity lines of credit. | |||
[3] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. | |||
[4] | Credit quality is enhanced by a loss sharing agreement with the FDIC in the covered portfolio. The same credit quality indicators used in the non-covered portfolio are combined. | |||
[5] | Includes SBA guarantees of $4.7 million and $2.4 million as of December 31, 2014 and 2013, respectively. |
LOANS_Covered_purchased_impair
LOANS - Covered purchased impaired and non-impaired loans (Details 9) (Loans Receivable, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | $705,253 | $547,506 | |||
Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 57,938 | 39,069 | |||
Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 114,714 | 105,381 | |||
Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 171,479 | [1] | 115,313 | [1] | |
Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,564 | 1,389 | |||
Covered loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 38,495 | [2] | 51,696 | [2] | |
Covered loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1 | ||||
Covered loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,097 | ||||
Covered loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 38,495 | [1] | 42,400 | [1] | |
Covered loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 81 | ||||
Greater Atlantic Bank | Covered purchased impaired | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,480 | 1,522 | 3,297 | ||
Greater Atlantic Bank | Covered purchased impaired | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,280 | 1,315 | |||
Greater Atlantic Bank | Covered purchased impaired | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | |||||
Greater Atlantic Bank | Covered purchased impaired | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 200 | 207 | |||
Greater Atlantic Bank | Covered purchased impaired | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | |||||
Greater Atlantic Bank | Covered purchased impaired | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | |||||
Greater Atlantic Bank | Covered purchased non impaired loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 45,834 | 50,174 | 68,024 | ||
Greater Atlantic Bank | Covered purchased non impaired loans | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 5,290 | 6,802 | |||
Greater Atlantic Bank | Covered purchased non impaired loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1 | ||||
Greater Atlantic Bank | Covered purchased non impaired loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 497 | 890 | |||
Greater Atlantic Bank | Covered purchased non impaired loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 38,495 | 42,400 | |||
Greater Atlantic Bank | Covered purchased non impaired loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 72 | 81 | |||
Greater Atlantic Bank | Covered loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 45,834 | 51,696 | |||
Greater Atlantic Bank | Covered loans | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 6,570 | 8,117 | |||
Greater Atlantic Bank | Covered loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1 | ||||
Greater Atlantic Bank | Covered loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 697 | 1,097 | |||
Greater Atlantic Bank | Covered loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 38,495 | 42,400 | |||
Greater Atlantic Bank | Covered loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | $72 | $81 | |||
[1] | Includes home equity lines of credit. | ||||
[2] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. |
LOANS_Carrying_amount_and_accr
LOANS - Carrying amount and accretable yield for covered purchased impaired and non-impaired loans (Details 10) (Loans Receivable, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at end of period | $705,253 | $547,506 |
Greater Atlantic Bank | Covered purchased impaired | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | ||
Additions | ||
Accretion | ||
Reclassifications from nonaccretable balance | ||
Adjustment-transfer to OREO | ||
Payments received | ||
Balance at end of period | ||
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 1,522 | 3,297 |
Additions | ||
Accretion | ||
Reclassifications from nonaccretable balance | ||
Adjustment-transfer to OREO | -1,654 | |
Payments received | -121 | |
Balance at end of period | 1,480 | 1,522 |
Greater Atlantic Bank | Covered purchased non impaired loans | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | 6,854 | 8,001 |
Additions | ||
Accretion | -1,928 | -1,656 |
Reclassifications from nonaccretable balance | 296 | 521 |
Adjustment-transfer to OREO | -31 | -12 |
Payments received | ||
Balance at end of period | 5,191 | 6,854 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 50,174 | 68,024 |
Additions | ||
Accretion | 1,928 | 1,656 |
Reclassifications from nonaccretable balance | ||
Adjustment-transfer to OREO | -375 | -2,327 |
Payments received | -5,893 | -17,179 |
Balance at end of period | $45,834 | $50,174 |
LOANS_Carrying_amount_of_nonco
LOANS - Carrying amount of non-covered purchased impaired and non-impaired loans (Details 11) (Loans Receivable, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | $705,253 | $547,506 | |||
Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 57,938 | 39,069 | |||
Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 114,714 | 105,381 | |||
Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 171,479 | [1] | 115,313 | [1] | |
Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,564 | 1,389 | |||
Non-covered Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 666,758 | 495,810 | |||
Non-covered Loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 57,938 | 39,068 | |||
Non-covered Loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 114,714 | 104,284 | |||
Non-covered Loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 132,984 | [1] | 72,913 | [1] | |
Non-covered Loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,564 | 1,308 | |||
HarVest Bank of Maryland | Non covered purchased impaired | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 1,771 | 1,857 | 1,912 | ||
HarVest Bank of Maryland | Non covered purchased impaired | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 323 | 358 | |||
HarVest Bank of Maryland | Non covered purchased impaired | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 593 | 629 | |||
HarVest Bank of Maryland | Non covered purchased impaired | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | |||||
HarVest Bank of Maryland | Non covered purchased impaired | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 855 | 870 | |||
HarVest Bank of Maryland | Non covered purchased impaired | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | |||||
HarVest Bank of Maryland | Non covered purchased non impaired loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 32,230 | 37,012 | 50,090 | ||
HarVest Bank of Maryland | Non covered purchased non impaired loans | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 14,224 | 15,285 | |||
HarVest Bank of Maryland | Non covered purchased non impaired loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 3,234 | 5,312 | |||
HarVest Bank of Maryland | Non covered purchased non impaired loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 3,492 | 4,362 | |||
HarVest Bank of Maryland | Non covered purchased non impaired loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 11,277 | 12,045 | |||
HarVest Bank of Maryland | Non covered purchased non impaired loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 3 | 8 | |||
HarVest Bank of Maryland | Non-covered Loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 34,001 | 38,869 | |||
HarVest Bank of Maryland | Non-covered Loans | Commercial real estate | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 14,547 | 15,643 | |||
HarVest Bank of Maryland | Non-covered Loans | Construction and land development | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 3,827 | 5,941 | |||
HarVest Bank of Maryland | Non-covered Loans | Commercial loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 3,492 | 4,362 | |||
HarVest Bank of Maryland | Non-covered Loans | Residential 1-4 family | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | 12,132 | 12,915 | |||
HarVest Bank of Maryland | Non-covered Loans | Other consumer loans | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Total loans | $3 | $8 | |||
[1] | Includes home equity lines of credit. |
LOANS_Carrying_amount_and_accr1
LOANS - Carrying amount and accretable yield for non-covered purchased impaired and non-impaired loans (Details 12) (Loans Receivable, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at end of period | $705,253 | $547,506 |
HarVest Bank of Maryland | Non covered purchased impaired | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | ||
Additions | ||
Accretion | ||
Reclassifications from nonaccretable balance | ||
Adjustment-short sale | ||
Payments received | ||
Balance at end of period | ||
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 1,857 | 1,912 |
Additions | ||
Accretion | ||
Reclassifications from nonaccretable balance | ||
Adjustment-short sale | ||
Payments received | -86 | -55 |
Balance at end of period | 1,771 | 1,857 |
HarVest Bank of Maryland | Non covered purchased non impaired loans | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | 2,087 | 3,659 |
Additions | ||
Accretion | -869 | -1,533 |
Reclassifications from nonaccretable balance | ||
Adjustment-short sale | -39 | |
Payments received | ||
Balance at end of period | 1,218 | 2,087 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | 37,012 | 50,090 |
Additions | ||
Accretion | 869 | 1,533 |
Reclassifications from nonaccretable balance | ||
Adjustment-short sale | 39 | |
Payments received | -5,651 | -14,650 |
Balance at end of period | $32,230 | $37,012 |
LOANS_Details_13
LOANS (Details 13) (Loans Receivable, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | $705,253 | $547,506 | ||
Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 57,938 | 39,069 | ||
Commercial mortgage loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 114,714 | 105,381 | ||
Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 171,479 | [1] | 115,313 | [1] |
Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 1,564 | 1,389 | ||
Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 666,758 | 495,810 | ||
Non-covered Loans | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 57,938 | 39,068 | ||
Non-covered Loans | Commercial mortgage loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 114,714 | 104,284 | ||
Non-covered Loans | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 132,984 | [1] | 72,913 | [1] |
Non-covered Loans | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 1,564 | 1,308 | ||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 1,020 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | Commercial real estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 371 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 649 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | Commercial mortgage loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | ||||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | ||||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | ||||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 58,763 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | Commercial real estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 3,306 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 1,168 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | Commercial mortgage loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 204 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 53,860 | |||
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 225 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 59,783 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | Commercial real estate | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 3,677 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | Construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 1,817 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | Commercial mortgage loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 204 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | Residential 1-4 family | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | 53,860 | |||
Prince George's Federal Savings Bank (PGFSB) | Non-covered Loans | Other consumer loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total ending loan balances | $225 | |||
[1] | Includes home equity lines of credit. |
LOANS_Details_14
LOANS (Details 14) (Loans Receivable, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Balance at beginning of period | $547,506 | |
Balance at end of period | 705,253 | 547,506 |
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased impaired | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | ||
Additions | ||
Accretion | ||
Reclassifications from nonaccretable balance | ||
Disbursements | ||
Adjustment-transfer to OREO | ||
Payments received | ||
Balance at end of period | ||
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Additions | 642 | |
Accretion | ||
Reclassifications from nonaccretable balance | ||
Disbursements | 388 | |
Adjustment-transfer to OREO | ||
Payments received | -10 | |
Balance at end of period | 1,020 | |
Prince George's Federal Savings Bank (PGFSB) | Non covered purchased non impaired loans | ||
Loans and Leases Receivable Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | ||
Additions | 3,121 | |
Accretion | -213 | |
Reclassifications from nonaccretable balance | ||
Disbursements | ||
Adjustment-transfer to OREO | ||
Payments received | ||
Balance at end of period | 2,908 | |
Loan and Leases Receivable Recorded Investment Schedule [Roll Forward] | ||
Additions | 61,190 | |
Accretion | 213 | |
Reclassifications from nonaccretable balance | ||
Disbursements | ||
Adjustment-transfer to OREO | -285 | |
Payments received | -2,355 | |
Balance at end of period | $58,763 |
LOANS_Details_Textuals
LOANS (Details Textuals) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Agreement | ||||
FDIC | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of agreements | 2 | |||
Greater Atlantic Bank | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loss sharing agreement | 143,400,000 | |||
Single family loans | FDIC | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Term loan agreement expiring | 10 years | |||
Non-Single Family (Commercial) | FDIC | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Term loan agreement expiring | 5 years | |||
Loans Receivable | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 705,253,000 | 547,506,000 | ||
Loans Receivable | Covered loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 38,495,000 | [1] | 51,696,000 | [1] |
Loans Receivable | Covered loans | Greater Atlantic Bank | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loss sharing agreement | 143,400,000 | |||
Total loans | 45,834,000 | 51,696,000 | ||
Loans Receivable | Covered loans | HarVest Bank of Maryland | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accretable discount on the acquired covered loans | 9,300,000 | 8,900,000 | ||
Loans Receivable | Covered loans | Prince George's Federal Savings Bank (PGFSB) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Accretable discount on the acquired covered loans | 8,900,000 | |||
Loans Receivable | Non-covered Loans | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 666,758,000 | 495,810,000 | ||
Loans Receivable | Non-covered Loans | HarVest Bank of Maryland | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 34,001,000 | 38,869,000 | ||
Loans Receivable | Non-covered Loans | Prince George's Federal Savings Bank (PGFSB) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Total loans | 59,783,000 | |||
Accretable discount on the acquired covered loans | 9,300,000 | |||
[1] | Covered Loans were acquired in the Greater Atlantic transaction and are covered under an FDIC loss-share agreement. The agreement covering non-single family loans expired in December 2014. |
LOANS_Details_Textuals_1
LOANS (Details Textuals 1) (SBA guaranteed, Loans Receivable [Member], Non-covered Loans, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
SBA guaranteed | Loans Receivable [Member] | Non-covered Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Charge off on Recorded investment | $1.70 | $1.40 |
SBA guarantees | $4.70 | $2.40 |
LOANS_Details_Textuals_2
LOANS (Details Textuals 2) (Loans Receivable, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Loan | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amount of loan secured | $547,506 | $705,253 |
Commercial real estate - owner occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amount of loan secured | 107,828 | 136,597 |
Number of modified loan | 1 | |
Amount of modified unpaid principal balances | 708 | |
Single family 1-4 residential properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of refinanced loan | 15 | |
Amount of loan secured | 5,900 | |
First deed of trust on the properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amount of loan secured | 5,200 | |
Second deed of trust on the properties | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Amount of loan secured | $663 |
FAIR_VALUE_Assets_measured_at_
FAIR VALUE - Assets measured at fair value on recurring basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available for sale securities | ||
Fair value | $2,285 | $1,993 |
Fair Value, Measurements, Recurring | Total | Obligations of states and political subdivisions | ||
Available for sale securities | ||
Fair value | 2,285 | 1,993 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of states and political subdivisions | ||
Available for sale securities | ||
Fair value | ||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Available for sale securities | ||
Fair value | 2,285 | 1,993 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Obligations of states and political subdivisions | ||
Available for sale securities | ||
Fair value |
FAIR_VALUE_Assets_measured_at_1
FAIR VALUE - Assets measured at fair value on non-recurring basis (Details 1) (Fair Value, Measurements, Nonrecurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Total | Commercial real estate - owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | $11,852 | $7,684 | ||
Impaired covered loans: | ||||
Impaired covered loans | 745 | |||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 461 | 461 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | 557 | |||
Total | Commercial real estate - non-owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 1,859 | [1] | 359 | [1] |
Impaired covered loans: | ||||
Impaired covered loans | 2,145 | [1] | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 1,792 | [1] | 1,342 | [1] |
Covered other real estate owned: | ||||
Covered other real estate owned | 1,450 | [1] | ||
Total | Construction and land development | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 347 | 2,107 | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 6,818 | 6,066 | ||
Total | Commercial loans | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 8,005 | 4,548 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | 79 | |||
Total | Residential 1-4 family | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 1,044 | 7,795 | ||
Impaired covered loans: | ||||
Impaired covered loans | 1,740 | 1,220 | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 3,980 | 1,710 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | 127 | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate - owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Impaired covered loans: | ||||
Impaired covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate - non-owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | [1] | [1] | ||
Impaired covered loans: | ||||
Impaired covered loans | [1] | |||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | [1] | [1] | ||
Covered other real estate owned: | ||||
Covered other real estate owned | [1] | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Construction and land development | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial loans | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential 1-4 family | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Impaired covered loans: | ||||
Impaired covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Significant Other Observable Inputs (Level 2) | Commercial real estate - owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Impaired covered loans: | ||||
Impaired covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Significant Other Observable Inputs (Level 2) | Commercial real estate - non-owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | [1] | [1] | ||
Impaired covered loans: | ||||
Impaired covered loans | [1] | |||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | [1] | [1] | ||
Covered other real estate owned: | ||||
Covered other real estate owned | [1] | |||
Significant Other Observable Inputs (Level 2) | Construction and land development | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Significant Other Observable Inputs (Level 2) | Commercial loans | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Significant Other Observable Inputs (Level 2) | Residential 1-4 family | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | ||||
Impaired covered loans: | ||||
Impaired covered loans | ||||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | ||||
Covered other real estate owned: | ||||
Covered other real estate owned | ||||
Significant Unobservable Inputs (Level 3) | Commercial real estate - owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 11,852 | 7,684 | ||
Impaired covered loans: | ||||
Impaired covered loans | 745 | |||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 461 | 461 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | 557 | |||
Significant Unobservable Inputs (Level 3) | Commercial real estate - non-owner occupied | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 1,859 | [1] | 359 | [1] |
Impaired covered loans: | ||||
Impaired covered loans | 2,145 | [1] | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 1,792 | [1] | 1,342 | [1] |
Covered other real estate owned: | ||||
Covered other real estate owned | 1,450 | [1] | ||
Significant Unobservable Inputs (Level 3) | Construction and land development | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 347 | 2,107 | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 6,818 | 6,066 | ||
Significant Unobservable Inputs (Level 3) | Commercial loans | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 8,005 | 4,548 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | 79 | |||
Significant Unobservable Inputs (Level 3) | Residential 1-4 family | ||||
Impaired non-covered loans: | ||||
Impaired non-covered loans | 1,044 | 7,795 | ||
Impaired covered loans: | ||||
Impaired covered loans | 1,740 | 1,220 | ||
Non covered other real estate owned: | ||||
Non-covered other real estate owned | 3,980 | 1,710 | ||
Covered other real estate owned: | ||||
Covered other real estate owned | $127 | |||
[1] | Includes loans secured by farmland and multi-family residential loans. |
FAIR_VALUE_Fair_Value_of_Finan
FAIR VALUE - Fair Value of Financial Instruments (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ||||
Cash and cash equivalents | $38,320 | $20,856 | $39,200 | $5,035 |
Securities available for sale | 2,285 | 1,993 | ||
Securities held to maturity | 94,058 | 82,443 | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 5,681 | 5,915 | ||
Equity investment in mortgage affiliate | 3,631 | |||
Preferred investment in mortgage affiliate | 1,805 | |||
FDIC indemnification asset | 3,571 | 5,804 | 6,735 | |
Financial liabilities: | ||||
Certificates of deposit | 466,395 | 323,565 | ||
Securities sold under agreements to repurchase and other short-term borrowings | 29,044 | 39,795 | 33,411 | |
FHLB advances | 25,000 | 25,000 | ||
Carrying Amount | ||||
Financial assets: | ||||
Cash and cash equivalents | 38,320 | 20,856 | ||
Securities available for sale | 2,285 | 1,993 | ||
Securities held to maturity | 94,058 | 82,443 | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | 5,681 | 5,915 | ||
Equity investment in mortgage affiliate | 3,631 | |||
Preferred investment in mortgage affiliate | 1,805 | |||
Net non-covered loans | 657,583 | 487,318 | ||
Net covered loans | 38,475 | 51,650 | ||
Accrued interest receivable | 2,904 | 2,186 | ||
FDIC indemnification asset | 3,571 | 5,804 | ||
Financial liabilities: | ||||
Demand deposits | 94,578 | 68,940 | ||
Money market and savings accounts | 181,452 | 147,854 | ||
Certificates of deposit | 466,395 | 323,565 | ||
Securities sold under agreements to repurchase and other short-term borrowings | 29,044 | 34,545 | ||
FHLB advances | 25,000 | 30,250 | ||
Accrued interest payable | 560 | 341 | ||
Fair Value | ||||
Financial assets: | ||||
Cash and cash equivalents | 38,320 | 20,856 | ||
Securities available for sale | 2,285 | 1,993 | ||
Securities held to maturity | 94,093 | 76,193 | ||
Stock in Federal Reserve Bank and Federal Home Loan Bank | ||||
Equity investment in mortgage affiliate | 3,631 | |||
Preferred investment in mortgage affiliate | 1,805 | |||
Net non-covered loans | 666,621 | 493,472 | ||
Net covered loans | 43,663 | 57,564 | ||
Accrued interest receivable | 2,904 | 2,186 | ||
FDIC indemnification asset | 2,261 | 4,220 | ||
Financial liabilities: | ||||
Demand deposits | 94,578 | 68,940 | ||
Money market and savings accounts | 181,452 | 147,854 | ||
Certificates of deposit | 466,391 | 324,733 | ||
Securities sold under agreements to repurchase and other short-term borrowings | 29,044 | 34,545 | ||
FHLB advances | 25,526 | 31,168 | ||
Accrued interest payable | $560 | $341 |
FAIR_VALUE_Details_Textuals
FAIR VALUE (Details Textuals) (Trust Preferred Securities) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Minimum / Maximum Liquidity Premiums | 2.00% | 2.00% |
Minimum / Maximum Adjusted discount rates | 8.91% | 10.97% |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Minimum / Maximum Liquidity Premiums | 5.00% | 5.00% |
Minimum / Maximum Adjusted discount rates | 13.95% | 14.97% |
FAIR_VALUE_Details_Textuals_1
FAIR VALUE (Details Textuals 1) (Fair Value, Measurements, Nonrecurring, Other Residential Collateralized Mortgage Obligation Classified as Held-to Maturity) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value, Measurements, Nonrecurring | Other Residential Collateralized Mortgage Obligation Classified as Held-to Maturity | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Prepayment speed | 6.30% |
Default rate | 1.40% |
Loss severity | 72.00% |
Accounting yield | 2.39% |
FAIR_VALUE_Details_Textuals_2
FAIR VALUE (Details Textuals 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Notes And Loans Receivable [Line Items] | ||
Allowances for loan losses | 7,414,000 | 7,090,000 |
Minimum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value of estimated costs related to selling the collateral | 6.00% | 6.00% |
Maximum | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Fair value of estimated costs related to selling the collateral | 10.00% | 10.00% |
Non-covered Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Non covered Impaired loans | 23,800,000 | 23,200,000 |
Allowances for loan losses | 705,000 | 717,000 |
HarVest Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
HarVest loans | 1,100,000 | |
SBA guaranteed | ||
Accounts Notes And Loans Receivable [Line Items] | ||
SBA guarantees | 4,700,000 | 2,400,000 |
FAIR_VALUE_Details_Textuals_3
FAIR VALUE (Details Textuals 3) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Description of other real estate owned loan collateral liquidation expenses | Fair value is classified as Level 3 in the fair value hierarchy. OREO is further evaluated quarterly for any additional impairment. | |
Minimum | ||
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of discount rate on other real estate owned | 6.00% | 6.00% |
Maximum | ||
Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Percentage of discount rate on other real estate owned | 7.60% | 7.60% |
FAIR_VALUE_Details_Textuals_4
FAIR VALUE (Details Textuals 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Other real estate owned | $13,051,000 | $11,792,000 |
Significant Unobservable Inputs (Level 3) | Non-covered Loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Non covered other real estate owned | 9,600,000 | |
Significant Unobservable Inputs (Level 3) | Covered loans | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Covered other real estate owned | $2,200,000 |
BANK_PREMISES_AND_EQUIPMENT_Su
BANK PREMISES AND EQUIPMENT - Summary of Bank premises and equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $14,414 | $10,570 |
Less accumulated depreciation and amortization | 4,961 | 4,246 |
Bank premises and equipment, net | 9,453 | 6,324 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 2,261 | 1,520 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 5,811 | 3,347 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | 2,394 | 2,167 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross | $3,948 | $3,536 |
BANK_PREMISES_AND_EQUIPMENT_Su1
BANK PREMISES AND EQUIPMENT - Summary of Future minimum rental payments (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | |
2015 | $1,723 |
2016 | 1,021 |
2017 | 982 |
2018 | 720 |
2019 | 452 |
Thereafter | 742 |
Future minimum rental payments, total | $5,640 |
BANK_PREMISES_AND_EQUIPMENT_De
BANK PREMISES AND EQUIPMENT (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Rental expense | $2 | $2 | $1.90 |
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Lease term | 2 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Lease term | 6 years |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS - changes in goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ||
Balance as of January 1 | $9,160 | $9,160 |
PGFSB acquisition | 1,354 | |
Balance as of December 31 | $10,514 | $9,160 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS - Acquired intangible assets (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortizable core deposit intangibles, gross carrying value | $7,477 | $6,715 |
Accumulated Amortization | -6,123 | -5,902 |
Amortizable core deposit intangibles, net carrying value | $1,354 | $813 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense of intangibles (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $262 | |
2016 | 219 | |
2017 | 194 | |
2018 | 184 | |
2019 | 173 | |
Thereafter | 322 | |
Core deposit intangibles, net | $1,354 | $813 |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS (Detail Textuals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Increase in goodwill | $1,354 | |
PGFSB | ||
Goodwill [Line Items] | ||
Increase in goodwill | $1,400 |
FDIC_INDEMNIFICATION_ASSET_Cha
FDIC INDEMNIFICATION ASSET - Changes in the indemnification asset for the periods (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
FDIC Indemnification Asset [Roll Forward] | ||||
Balance as of January 1 | $5,804 | $6,735 | ||
Payments from FDIC | -1,037 | -1,017 | ||
Reforecasting adjustment | 34 | [1] | 569 | [1] |
Accretion (amortization) | -1,230 | -483 | ||
Balance as of December 31 | $3,571 | $5,804 | ||
[1] | Represents an increase in the carrying value of the indemnification asset resulting from increased reforecasted losses in individual covered loans and covered loan pools. |
FDIC_INDEMNIFICATION_ASSET_Det
FDIC INDEMNIFICATION ASSET (Detail Textuals) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 04, 2009 | |
Agreement | ||||
Indemnity [Line Items] | ||||
Estimated fair value of the indemnification asset | $8,800,000 | |||
Amount to be recover from FDIC under indemnification agreement | 2,300,000 | |||
FDIC indemnification asset carrying amount | $3,571,000 | $5,804,000 | $6,735,000 | |
Number of agreement with FDIC | 2 | |||
Single Family Assets | ||||
Indemnity [Line Items] | ||||
Term of FDIC agreement | 10 years | |||
Non-Single Family (Commercial) Assets | ||||
Indemnity [Line Items] | ||||
Term of FDIC agreement | 5 years |
DEPOSITS_Scheduled_maturities_
DEPOSITS - Scheduled maturities of time deposits (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Deposits [Abstract] | |
2015 | $225,002 |
2016 | 125,803 |
2017 | 63,585 |
2018 | 21,834 |
2019 | 29,971 |
Thereafter | 200 |
Time deposits, total | $466,395 |
DEPOSITS_Scheduled_maturities_1
DEPOSITS - Scheduled maturities of certificates of deposits (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Within 3 Months | $7,871 | |
3 to 6 Months | 4,003 | |
6 to 12 Months | 8,813 | |
Over 12 Months | 48,744 | |
Total | $69,431 | $41,100 |
DEPOSITS_Detail_Textual
DEPOSITS (Detail Textual) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits [Abstract] | ||
Aggregate amount of time deposits in denominations of $100,000 or more | $69,431,000 | $41,100,000 |
Money market deposits | 10,200,000 | 10,200,000 |
Brokered certificate of deposits | $77,000,000 | $30,000,000 |
SECURITIES_SOLD_UNDER_AGREEMEN2
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS - Summary of Other short-term borrowings (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Banking and Thrift [Abstract] | |||
FHLB overnight advances | $15,250 | ||
Other short-term FHLB advances maturing 1/14/2013 | 20,000 | ||
Other short-term FHLB advances maturing 1/27/2014 | 20,000 | ||
Other short-term FHLB advances maturing 7/25/2014 | 5,250 | ||
Securities sold under agreements to repurchase | 13,794 | 14,545 | 13,411 |
Total | 29,044 | 39,795 | 33,411 |
Weighted average interest rate at year end | 0.65% | 0.38% | 0.37% |
Average outstanding balance | 37,810 | 17,259 | 20,353 |
Average interest rate during the year | 0.51% | 0.60% | 0.59% |
Maximum month-end outstanding balance | $66,852 | $39,795 | $33,411 |
SECURITIES_SOLD_UNDER_AGREEMEN3
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND OTHER SHORT-TERM BORROWINGS (Detail Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Investment securities pledged as collateral for securities sold under agreements to repurchase | $20.80 | $23.30 |
FEDERAL_HOME_LOAN_BANK_ADVANCE2
FEDERAL HOME LOAN BANK ADVANCES - Advances from the Federal Home Loan Bank (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | $25,000 | $25,000 |
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | 5,000 | 5,000 |
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | 5,000 | 5,000 |
FHLB fixed rate advance maturing June 2016 with a rate of 2.08% | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | 5,000 | 5,000 |
FHLB fixed rate advance maturing June 2016 with a rate of 2.03% | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | 5,000 | 5,000 |
FHLB fixed rate advance maturing June 2017 with a rate of 2.26% | ||
Federal Home Loan Bank Advances [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | $5,000 | $5,000 |
FEDERAL_HOME_LOAN_BANK_ADVANCE3
FEDERAL HOME LOAN BANK ADVANCES - Parentheticals (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Federal Home Loan Bank Advances [Line Items] | ||
Interest rate type | Fixed | Fixed |
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB fixed rate advance, interest rate | 1.78% | 1.78% |
Maturity date of FHLB fixed rate advance | 2016-06 | 2016-06 |
FHLB fixed rate advance maturing June 2016 with a rate of 1.78% | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB fixed rate advance, interest rate | 1.78% | 1.78% |
Maturity date of FHLB fixed rate advance | 2016-06 | 2016-06 |
FHLB fixed rate advance maturing June 2016 with a rate of 2.08% | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB fixed rate advance, interest rate | 2.08% | 2.08% |
Maturity date of FHLB fixed rate advance | 2016-06 | 2016-06 |
FHLB fixed rate advance maturing June 2016 with a rate of 2.03% | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB fixed rate advance, interest rate | 2.03% | 2.03% |
Maturity date of FHLB fixed rate advance | 2016-06 | 2016-06 |
FHLB fixed rate advance maturing June 2017 with a rate of 2.26% | ||
Federal Home Loan Bank Advances [Line Items] | ||
FHLB fixed rate advance, interest rate | 2.26% | 2.26% |
Maturity date of FHLB fixed rate advance | 2017-06 | 2017-06 |
FEDERAL_HOME_LOAN_BANK_ADVANCE4
FEDERAL HOME LOAN BANK ADVANCES (Detail Textuals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
Available collateral to borrow an additional amount from FHLB | $143 | |
Home equity lines of credit (HELOCs) | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
FHLB advances, pledged as collateral | 24.3 | 27.8 |
Commercial mortgage loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
FHLB advances, pledged as collateral | 134.9 | 107.2 |
Investment securities | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
FHLB advances, pledged as collateral | 50.5 | 35.8 |
Federal Home Loan Bank of Atlanta | Residential 1-4 family mortgage loans | ||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ||
FHLB advances, pledged as collateral | $39 | $45.10 |
INCOME_TAXES_Net_deferred_tax_
INCOME TAXES - Net deferred tax assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $2,570 | $2,453 |
Organization costs | 127 | 154 |
Unearned loan fees and other | 617 | 501 |
Net operating loss carryover | 92 | |
Other real estate owned write-downs | 942 | 1,009 |
FDIC assisted transactions timing difference | 1,721 | 2,613 |
Other than temporary impairment charge | 2,454 | 2,435 |
Net unrealized loss on securities available for sale | 1,549 | 1,636 |
Purchase accounting | 1,340 | |
Other | 745 | 630 |
Total deferred tax assets | 12,065 | 11,523 |
Deferred tax liabilities: | ||
FDIC indemnification asset | 1,238 | 2,008 |
FDIC gain | 443 | |
Purchase accounting | 562 | |
Depreciation | 744 | 229 |
Total deferred tax liabilities | 1,982 | 3,242 |
Net deferred tax assets | $10,083 | $8,281 |
INCOME_TAXES_Provision_for_inc
INCOME TAXES - Provision for income taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense | |||
Federal | $4,047 | $2,852 | $5,016 |
State | 125 | 82 | 121 |
Total current tax expense | 4,172 | 2,934 | 5,137 |
Deferred tax benefit | |||
Federal | -394 | 102 | -1,965 |
State | -24 | -57 | |
Total deferred tax expense (benefit) | -418 | 102 | -2,022 |
Total income tax expense | $3,754 | $3,036 | $3,115 |
INCOME_TAXES_Income_tax_expens
INCOME TAXES - Income tax expense (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense at statutory rate | $3,821 | $3,160 | $3,293 |
Reduction in tax expense resulting from: | |||
Income from bank-owned life insurance | -210 | -202 | -271 |
Other, net | 143 | 78 | 93 |
Total income tax expense | $3,754 | $3,036 | $3,115 |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
U.S. Federal income tax rate | 34.00% | 34.00% | 34.00% |
EMPLOYEE_BENEFITS_Detail_Textu
EMPLOYEE BENEFITS (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Employer discretionary matching contributions in 401(k) plan | $102,000 | $115,000 | $78,000 |
Executive Officer | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Number of officers | 2 | ||
Term of deffered compensation arrangement | 10 years | ||
Deferred compensation expense | 340,000 | 225,000 | 234,000 |
Deferred compensation liability | $1,600,000 | $1,300,000 |
STOCK_BASED_COMPENSATION_Weigh
STOCK- BASED COMPENSATION - Weighted-average assumptions (Details) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 10 years | 10 years | 10 years |
Expected volatility | 29.30% | 34.21% | 35.64% |
Risk-free interest rate | 2.48% | 2.42% | 1.65% |
Weighted average fair value per option granted | $2.88 | $3.58 | $3.63 |
Dividend yield | 2.55% | 1.29% | 0.00% |
STOCK_BASED_COMPENSATION_Activ
STOCK- BASED COMPENSATION - Activity in stock option plan (Details 1) (Stock Options, USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Options outstanding, beginning of period (in shares) | 631,075 |
Granted (in shares) | 104,750 |
Forfeited (in shares) | -14,575 |
Exercised (in shares) | -100,200 |
Options outstanding, end of period (in shares) | 621,050 |
Vested or expected to vest (in shares) | 621,050 |
Exercisable at end of period (in shares) | 320,290 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |
Options outstanding, beginning of period - Weighted Average Exercise Price | $8.21 |
Granted Weighted Average Exercise Price | $10.47 |
Forfeited Weighted Average Exercise Price | $8.38 |
Exercised Exercises in Period, Weighted Average Exercise Price | $8.84 |
Options outstanding, end of period - Weighted Average Exercise Price | $8.49 |
Vested or expected to vest - Weighted Average Exercise Price | $8.49 |
Exercisable at end of period - Weighted Average Exercise Price | $7.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |
Options outstanding, end of period - Weighted Average Remaining Contractual Term | 6 years 4 months 24 days |
Vested or expected to vest - Weighted Average Remaining Contractual Term | 6 years 4 months 24 days |
Exercisable at end of period - Weighted Average Remaining Contractual Term | 6 years 4 months 24 days |
Options outstanding, end of period - Aggregate Intrinsic Value | $1,781 |
Vested or expected to vest - Aggregate Intrinsic Value | 1,781 |
Exercisable at end of period - Aggregate Intrinsic Value | $1,088 |
STOCK_BASED_COMPENSATION_Detai
STOCK- BASED COMPENSATION (Detail Textuals) (USD $) | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2004 | Apr. 30, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $317 | $284 | $195 | ||
Unrecognized compensation expense associated with the stock options | $900 | ||||
Unrecognized compensation cost weighted average recognition period | 3 years 3 months 18 days | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Granted (in shares) | 104,750 | ||||
Method used for fair value of each option granted | Black-Scholes options-pricing model | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term of options | 10 years | ||||
Stock Options | 2004 Stock Option Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for reservation (in shares) | 302,500 | ||||
Stock Options | 2010 Stock Awards and Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized for reservation (in shares) | 700,000 |
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Detail Textuals) (Letter of Credit, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of credit outstanding | $8.40 | $6.90 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Detail Textuals 1) (Unfunded Lines Of Credit and Undisbursed Construction Loan Funds, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Unfunded Lines Of Credit and Undisbursed Construction Loan Funds | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Unfunded lines of credit and undisbursed construction loan funds | $113,300 | $105,800 |
EARNINGS_PER_SHARE_Reconciliat
EARNINGS PER SHARE - Reconciliation of the denominators of the basic and diluted EPS computations (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Basic EPS - Income (Numerator) (in dollars) | $7,483 | $6,258 | $6,569 | ||||||||
Effect of dilutive stock options and warrants - Income (Numerator) (in dollars) | |||||||||||
Diluted EPS - Income (Numerator) | $1,961 | $2,108 | $1,772 | $1,642 | $1,397 | $1,780 | $1,555 | $1,526 | $7,483 | $6,258 | $6,569 |
Basic EPS- Weighted Average Shares (Denominator) (in shares) | 11,846 | 11,590 | 11,590 | ||||||||
Effect of dilutive stock options and warrants- Weighted Average Shares (Denominator) (in shares) | 81 | 37 | 6 | ||||||||
Diluted EPS- Weighted Average Shares (Denominator) (in shares) | 11,927 | 11,627 | 11,596 | ||||||||
Basic EPS - Per Share Amount (in dollars per share) | $0.16 | $0.18 | $0.15 | $0.14 | $0.12 | $0.15 | $0.13 | $0.13 | $0.63 | $0.54 | $0.57 |
Effect of dilutive stock options and warrants- Per Share Amount (in dollars per share) | |||||||||||
Diluted EPS- Per Share Amount (in dollars per share) | $0.16 | $0.17 | $0.15 | $0.14 | $0.12 | $0.15 | $0.13 | $0.13 | $0.63 | $0.54 | $0.57 |
EARNINGS_PER_SHARE_Detail_Text
EARNINGS PER SHARE (Detail Textuals) (Stock Options and Warrants) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options and Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive options and warrants (in shares) | 622,593 | 676,463 | 589,361 |
REGULATORY_MATTERS_Capital_amo
REGULATORY MATTERS - Capital amounts and ratios for Southern National and Sonabank at year end (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Southern National | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 risk-based capital ratio, Actual Amount | $105,107 | $99,700 |
Tier 1 risk-based capital ratio, Actual Ratio | 15.19% | 18.56% |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 27,671 | 21,489 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | 41,507 | 32,234 |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 6.00% | 6.00% |
Total risk-based capital ratio, Actual Amount | 112,521 | 106,406 |
Total risk-based capital ratio, Actual Ratio | 16.27% | 19.81% |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 55,343 | 42,978 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | 69,179 | 53,723 |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 10.00% | 10.00% |
Leverage ratio, Actual Amount | 105,107 | 99,700 |
Leverage ratio, Actual Ratio | 11.80% | 14.22% |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 35,623 | 28,038 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Leverage ratio, To Be Categorized as Well Capitalized, Amount | 44,529 | 35,048 |
Leverage ratio, To Be Categorized as Well Capitalized, Ratio | 5.00% | 5.00% |
Sonabank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 risk-based capital ratio, Actual Amount | 104,007 | 98,958 |
Tier 1 risk-based capital ratio, Actual Ratio | 15.04% | 18.43% |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 27,658 | 21,478 |
Tier 1 risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | 41,487 | 32,217 |
Tier 1 risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 6.00% | 6.00% |
Total risk-based capital ratio, Actual Amount | 111,421 | 105,660 |
Total risk-based capital ratio, Actual Ratio | 16.11% | 19.68% |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 55,316 | 42,956 |
Total risk-based capital ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Amount | 69,145 | 53,695 |
Total risk-based capital ratio, To Be Categorized as Well Capitalized, Ratio | 10.00% | 10.00% |
Leverage ratio, Actual Amount | 104,007 | 98,958 |
Leverage ratio, Actual Ratio | 11.68% | 14.12% |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Amount | 35,609 | 28,027 |
Leverage ratio, Actual Ratio Required For Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Leverage ratio, To Be Categorized as Well Capitalized, Amount | $44,511 | $35,034 |
Leverage ratio, To Be Categorized as Well Capitalized, Ratio | 5.00% | 5.00% |
REGULATORY_MATTERS_Detail_Text
REGULATORY MATTERS (Detail Textuals) (Forecast, USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Forecast | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |
Dividends declared | $14 |
FDICASSISTED_ACQUISITION_Summa
FDIC-ASSISTED ACQUISITION - Summary of the net assets acquired from the FDIC (Details) (HarVest Bank of Maryland, USD $) | Apr. 27, 2012 |
In Thousands, unless otherwise specified | |
HarVest Bank of Maryland | |
Assets | |
Cash and cash equivalents | $21,704 |
Consideration from the FDIC | 25,553 |
Investment securities | 38,379 |
Loans | 64,966 |
Loans held for sale | 7,568 |
Federal Home Loan Bank stock | 1,167 |
Other real estate owned | 750 |
Core deposit intangible | 179 |
Other assets | 576 |
Total assets acquired | 160,842 |
Liabilities | |
Deposits | 140,484 |
FHLB advances | 16,738 |
Other liabilities | 136 |
Total liabilities | 157,358 |
Net assets acquired (bargain purchase gain) | $3,484 |
FDIC_ASSISTED_ACQUISITION_Deta
FDIC- ASSISTED ACQUISITION (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 27, 2012 | |
Branch | ||||
Business Acquisition [Line Items] | ||||
Bargain purchase gain on acquisitions | $3,484,000 | |||
HarVest Bank of Maryland | ||||
Business Acquisition [Line Items] | ||||
Number of branches | 4 | |||
Unpaid principal balance of performing loans | 67,400,000 | |||
Fair value of performing loans | 63,000,000 | |||
Discount accreted through interest income over the life of the loans | 4,400,000 | |||
Unpaid principal balance of non-performing loans | 5,300,000 | |||
Fair value of non-performing loans | 1,900,000 | |||
Non accreted discount for credit impaired loans | 3,400,000 | |||
Bargain purchase gain on acquisitions | $3,500,000 |
ACQUISTIONS_Summary_of_net_ass
ACQUISTIONS - Summary of net assets acquired (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2014 |
In Thousands, unless otherwise specified | ||||
Fair value of liabilities assumed: | ||||
Goodwill | $10,514 | $9,160 | $9,160 | |
Prince George's Federal Savings Bank (PGFSB) | ||||
Business Acquisition [Line Items] | ||||
Total purchase price | 11,497 | |||
Assets | ||||
Cash on hand and in banks | 28,179 | |||
Loans | 61,832 | |||
Loans held for sale | 3,499 | |||
Land and buildings | 3,023 | |||
Deferred tax asset | 1,877 | |||
Other assets | 1,022 | |||
Core deposit intangible | 761 | |||
Total assets acquired | 100,193 | |||
Fair value of liabilities assumed: | ||||
Noninterest-bearing deposits | 19,233 | |||
Interest-bearing deposits | 69,995 | |||
Other liabilities | 822 | |||
Total liabilities | 90,050 | |||
Net assets acquired | 10,143 | |||
Goodwill | 1,354 | |||
Net assets acquired (bargain purchase gain) | $11,497 |
ACQUISTIONS_Detail_Textuals
ACQUISTIONS (Detail Textuals) (USD $) | 0 Months Ended | ||||
15-May-14 | Aug. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business Acquisition [Line Items] | |||||
Goodwill | $10,514,000 | $9,160,000 | $9,160,000 | ||
Southern National Bancorp Of Virginia | |||||
Business Acquisition [Line Items] | |||||
Percentage of common stock hold by entity | 44.00% | ||||
Southern Trust Mortgage LLC (STM) | |||||
Business Acquisition [Line Items] | |||||
Percentage of common stock hold by entity | 51.10% | ||||
Value of investment owned | 5,000,000 | ||||
Equity method investment | 3,200,000 | ||||
Value of preferred shares owned as the investment | 1,800,000 | ||||
Annual dividend yield | 7.50% | ||||
EVB | |||||
Business Acquisition [Line Items] | |||||
Percentage of common stock hold by entity | 4.90% | ||||
Middleburg Bank | Southern National Bancorp Of Virginia | |||||
Business Acquisition [Line Items] | |||||
Percentage of common stock purchase by entity | 62.00% | ||||
Prince George's Federal Savings Bank (PGFSB) | |||||
Business Acquisition [Line Items] | |||||
Total cash paid for acquisition | 5,749,000 | ||||
Number of shares issued for acquistion | 525,858 | ||||
Value of common stock issued for acquisition | 5,748,000 | ||||
Unpaid principal balance of performing loans | 64,200,000 | ||||
Fair value of performing loans | 61,200,000 | ||||
Discount accreted through interest income over the life of the loans | 3,000,000 | ||||
Unpaid principal balance of non-performing loans | 1,500,000 | ||||
Fair value of non-performing loans | 682,000 | ||||
Non accreted discount for credit impaired loans | 790,000 | ||||
Acquired non performing loans with unpaid principal balance | 5,500,000 | ||||
Fair value of nonperforming loans sold after acquisition | 3,500,000 | ||||
Merger related costs | 445,000 | ||||
Goodwill | 1,354,000 | ||||
Loan related interest income | $1,500,000 | ||||
Number of Preferred stock shares acquired | 1,800,000 | ||||
Prince George's Federal Savings Bank (PGFSB) | Maryland | |||||
Business Acquisition [Line Items] | |||||
Number of offices | 4 | ||||
Prince George's Federal Savings Bank (PGFSB) | Dunkirk, Brandywine And Huntingtown | |||||
Business Acquisition [Line Items] | |||||
Number of branches | 3 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED BALANCE SHEETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
ASSETS | ||||
Cash | $38,320 | $20,856 | $39,200 | $5,035 |
Other assets | 5,791 | 5,462 | ||
Total assets | 916,645 | 716,185 | ||
Stockholders' equity: | ||||
Retained earnings | 12,805 | 12,561 | ||
Accumulated other comprehensive loss | -3,020 | -3,190 | -2,981 | |
Total stockholders' equity | 113,979 | 106,614 | 103,176 | 99,051 |
Total liabilities and stockholders' equity | 916,645 | 716,185 | ||
Southern National Bancorp of Virginia, Inc | ||||
ASSETS | ||||
Cash | 769 | 465 | 515 | 3,324 |
Investment in subsidiary | 112,879 | 105,872 | ||
Other assets | 331 | 277 | ||
Total assets | 113,979 | 106,614 | ||
Stockholders' equity: | ||||
Common stock | 122 | 116 | ||
Additional paid in capital | 104,072 | 97,127 | ||
Retained earnings | 12,805 | 12,561 | ||
Accumulated other comprehensive loss | -3,020 | -3,190 | ||
Total stockholders' equity | 113,979 | 106,614 | ||
Total liabilities and stockholders' equity | $113,979 | $106,614 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF INCOME (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Other operating expenses | $3,076 | $3,105 | $3,137 | ||||||||
Income before income taxes | 2,914 | 3,157 | 2,733 | 2,434 | 2,092 | 2,641 | 2,299 | 2,262 | 11,237 | 9,294 | 9,684 |
Income tax benefit | 3,754 | 3,036 | 3,115 | ||||||||
Net income | 1,961 | 2,108 | 1,772 | 1,642 | 1,397 | 1,780 | 1,555 | 1,526 | 7,483 | 6,258 | 6,569 |
Southern National Bancorp of Virginia, Inc | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Equity in undistributed net income of subsidiary | 7,590 | 6,370 | 6,680 | ||||||||
Other operating expenses | 162 | 170 | 168 | ||||||||
Income before income taxes | 7,428 | 6,200 | 6,512 | ||||||||
Income tax benefit | -55 | -58 | -57 | ||||||||
Net income | $7,483 | $6,258 | $6,569 |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION - CONDENSED STATEMENTS OF CASH FLOWS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income | $7,483 | $6,258 | $6,569 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | |||
Other, net | -1,161 | 365 | -1,069 |
Net cash and cash equivalents provided by (used in) operating activities | 11,485 | 5,846 | 10,837 |
Investing activities: | |||
Net cash and cash equivalents provided by investing activities | -89,755 | -11,811 | 77,583 |
Financing activities: | |||
Issuance of common stock | 886 | 3 | |
Dividend payment on common stock | -7,239 | -2,898 | -2,840 |
Net cash and cash equivalents used in financing activities | 95,734 | -12,379 | -54,255 |
Increase (decrease) in cash and cash equivalents | 17,464 | -18,344 | 34,165 |
Cash and cash equivalents at beginning of period | 20,856 | 39,200 | 5,035 |
Cash and cash equivalents at end of period | 38,320 | 20,856 | 39,200 |
Southern National Bancorp of Virginia, Inc | |||
Operating activities: | |||
Net income | 7,483 | 6,258 | 6,569 |
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities: | |||
Equity in undistributed net income of subsidiary | -7,590 | -6,370 | -6,680 |
Other, net | 264 | 277 | 142 |
Net cash and cash equivalents provided by (used in) operating activities | 157 | 165 | 31 |
Investing activities: | |||
Dividend from bank subsidiary | 6,500 | 2,680 | |
Net cash and cash equivalents provided by investing activities | 6,500 | 2,680 | |
Financing activities: | |||
Issuance of common stock | 886 | 3 | |
Dividend payment on common stock | -7,239 | -2,898 | -2,840 |
Net cash and cash equivalents used in financing activities | -6,353 | -2,895 | -2,840 |
Increase (decrease) in cash and cash equivalents | 304 | -50 | -2,809 |
Cash and cash equivalents at beginning of period | 465 | 515 | 3,324 |
Cash and cash equivalents at end of period | $769 | $465 | $515 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Summary of the accumulated other comprehensive loss balances, net of tax (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | ($3,190) | ($2,981) | |
Current Period Change | 170 | -209 | 201 |
Ending balance | -3,020 | -3,190 | -2,981 |
Unrealized gains (losses) on securities available for sale | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -203 | 44 | |
Current Period Change | 197 | -247 | |
Ending balance | -6 | -203 | |
Unrecognized loss on securities held to maturity for which other than temporary impairment charges have been taken | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -2,535 | ||
Current Period Change | 23 | ||
Ending balance | -2,512 | ||
Unrealized loss on securities available for sale transferred to held to maturity | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | -452 | ||
Current Period Change | -50 | ||
Ending balance | ($502) |
QUARTERLY_FINANCIAL_DATA_UNAUD2
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest Income | $10,541 | $9,984 | $8,926 | $8,641 | $8,697 | $8,847 | $8,549 | $9,023 | $38,091 | $35,116 | $37,561 |
Net Interest Income | 9,160 | 8,812 | 7,859 | 7,587 | 7,580 | 7,724 | 7,374 | 7,770 | 33,418 | 30,448 | 31,733 |
Income Before Taxes | 2,914 | 3,157 | 2,733 | 2,434 | 2,092 | 2,641 | 2,299 | 2,262 | 11,237 | 9,294 | 9,684 |
Net income | $1,961 | $2,108 | $1,772 | $1,642 | $1,397 | $1,780 | $1,555 | $1,526 | $7,483 | $6,258 | $6,569 |
Earnings Per Share, Basic (in dollars per share) | $0.16 | $0.18 | $0.15 | $0.14 | $0.12 | $0.15 | $0.13 | $0.13 | $0.63 | $0.54 | $0.57 |
Earnings Per Share, Diluted (in dollars per share) | $0.16 | $0.17 | $0.15 | $0.14 | $0.12 | $0.15 | $0.13 | $0.13 | $0.63 | $0.54 | $0.57 |