Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||
Mar. 31, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | |
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Mar-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | Q1 | ||
Trading Symbol | PBIB | ||
Entity Registrant Name | PORTER BANCORP, INC. | ||
Entity Central Index Key | 1358356 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 19,205,495 | ||
Nonvoting Common Stock | |||
Common stock, shares outstanding | 6,458,000 | 6,458,000 | 0 |
Unaudited_Consolidated_Balance
Unaudited Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $7,899 | $14,169 |
Interest bearing deposits in banks | 101,872 | 66,011 |
Cash and cash equivalents | 109,771 | 80,180 |
Securities available for sale | 157,290 | 190,791 |
Securities held to maturity (fair value of $44,895 and $44,498, respectively) | 42,263 | 42,325 |
Loans held for sale | 8,926 | |
Loans, net of allowance of $18,597 and $19,364, respectively | 613,831 | 605,635 |
Premises and equipment, net | 19,323 | 19,507 |
Other real estate owned | 43,618 | 46,197 |
Federal Home Loan Bank stock | 7,323 | 7,323 |
Bank owned life insurance | 9,231 | 9,167 |
Accrued interest receivable and other assets | 7,056 | 7,938 |
Total assets | 1,009,706 | 1,017,989 |
Deposits | ||
Non-interest bearing | 108,011 | 114,910 |
Interest bearing | 822,498 | 811,931 |
Total deposits | 930,509 | 926,841 |
Repurchase agreements | 1,145 | 1,341 |
Federal Home Loan Bank advances | 3,597 | 15,752 |
Accrued interest payable and other liabilities | 10,758 | 10,640 |
Subordinated capital note | 4,725 | 4,950 |
Junior subordinated debentures | 25,000 | 25,000 |
Total liabilities | 975,734 | 984,524 |
Stockholders' equity | ||
Total preferred stockholders' equity | 2,771 | 8,552 |
Common stock, no par, 86,000,000 shares authorized, 19,205,495 and 14,890,514 voting, and 6,458,000 and 0 non-voting shares issued and outstanding, respectively | 119,019 | 113,238 |
Additional paid-in capital | 21,491 | 21,442 |
Retained deficit | -107,001 | -107,595 |
Accumulated other comprehensive income (loss) | -2,308 | -2,172 |
Total common stockholders' equity | 31,201 | 24,913 |
Total stockholders' equity | 33,972 | 33,465 |
Total liabilities and stockholders' equity | 1,009,706 | 1,017,989 |
Preferred stock Series B | ||
Stockholders' equity | ||
Preferred stock | 2,229 | |
Total stockholders' equity | 2,229 | |
Preferred stock Series D | ||
Stockholders' equity | ||
Preferred stock | 3,552 | |
Total stockholders' equity | 3,552 | |
Preferred stock Series E | ||
Stockholders' equity | ||
Preferred stock | 1,644 | 1,644 |
Total stockholders' equity | 1,644 | 1,644 |
Preferred stock Series F | ||
Stockholders' equity | ||
Preferred stock | 1,127 | 1,127 |
Total stockholders' equity | $1,127 | $1,127 |
Unaudited_Consolidated_Balance1
Unaudited Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Securities held to maturity, fair value | 44,895,000 | 44,498,000 |
Loans, allowance | 18,597,000 | 19,364,000 |
Preferred stock, no par | ||
Common stock, no par | ||
Common stock, shares authorized | 86,000,000 | 86,000,000 |
Preferred stock Series B | ||
Preferred stock, issued | 0 | 40,536 |
Preferred stock, outstanding | 0 | 40,536 |
Preferred stock Series D | ||
Preferred stock, issued | 0 | 64,580 |
Preferred stock, outstanding | 0 | 64,580 |
Preferred stock Series E | ||
Preferred stock, issued | 6,198 | 6,198 |
Preferred stock, outstanding | 6,198 | 6,198 |
Preferred stock, Liquidation preference | 6,200,000 | 6,200,000 |
Preferred stock Series F | ||
Preferred stock, issued | 4,304 | 4,304 |
Preferred stock, outstanding | 4,304 | 4,304 |
Preferred stock, Liquidation preference | 4,300,000 | 4,300,000 |
Voting Common Stock | ||
Common stock, shares issued | 19,205,495 | 14,890,514 |
Common stock, shares outstanding | 19,205,495 | 14,890,514 |
Nonvoting Common Stock | ||
Common stock, shares issued | 6,458,000 | 0 |
Common stock, shares outstanding | 6,458,000 | 0 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest income | ||
Loans, including fees | $7,755 | $8,321 |
Taxable securities | 1,126 | 1,173 |
Tax exempt securities | 203 | 241 |
Federal funds sold and other | 119 | 162 |
Interest and Dividend Income, Operating, Total | 9,203 | 9,897 |
Interest expense | ||
Deposits | 1,692 | 2,361 |
Junior subordinated debentures | 152 | 152 |
Subordinated capital note | 42 | 50 |
Federal Home Loan Bank advances | 27 | 33 |
Federal funds purchased and other | 1 | |
Interest Expense, Total | 1,913 | 2,597 |
Net interest income | 7,290 | 7,300 |
Provision for loan losses | 0 | 0 |
Net interest income after provision for loan losses | 7,290 | 7,300 |
Non-interest income | ||
Service charges on deposit accounts | 409 | 468 |
Bank card interchange fees | 203 | 161 |
Other real estate owned rental income | 357 | 7 |
Net gain on sales of securities | 1,497 | 44 |
Other | 230 | 235 |
Noninterest Income, Total | 2,696 | 915 |
Non-interest expense | ||
Salaries and employee benefits | 3,847 | 3,741 |
Occupancy and equipment | 870 | 892 |
Professional fees | 979 | 289 |
FDIC insurance | 570 | 540 |
Data processing expense | 304 | 269 |
State franchise and deposit tax | 285 | 425 |
Other real estate owned expense | 733 | 662 |
Loan collection expense | 283 | 539 |
Other | 1,521 | 1,145 |
Noninterest Expense, Total | 9,392 | 8,502 |
Income (loss) before income taxes | 594 | -287 |
Income tax expense (benefit) | 0 | 0 |
Net income (loss) | 594 | -287 |
Less: | ||
Dividends and accretion on preferred stock | 786 | |
Earnings (loss) allocated to participating securities | 185 | -97 |
Net income (loss) attributable to common shareholders | $409 | ($976) |
Basic and diluted earnings (loss) per common share | $0.02 | ($0.08) |
Unaudited_Consolidated_Stateme1
Unaudited Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net income (loss) | $594 | ($287) |
Unrealized gain (loss) on securities: | ||
Unrealized gain (loss) arising during the period | -1,633 | 1,589 |
Reclassification adjustment for losses (gains) included in net income | -1,497 | -44 |
Net unrealized gain/(loss) recognized in comprehensive income | -136 | 1,633 |
Tax effect | 0 | 0 |
Other comprehensive income (loss) | -136 | 1,663 |
Comprehensive income | $458 | $1,346 |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Voting Common Stock | Nonvoting Common Stock | Series B Preferred Stock | Series D Preferred Stock | non-voting noncumulative non-convertible Series E perpetual preferred stock | non-voting noncumulative non-convertible Series F perpetual preferred stock | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||
Beginning Balances at Dec. 31, 2014 | $33,465 | $2,229 | $3,552 | $1,644 | $1,127 | $113,238 | $21,442 | ($107,595) | ($2,172) | ||
Beginning Balances (in shares) at Dec. 31, 2014 | 14,890,514 | 40,536 | 64,580 | 6,198 | 4,304 | 14,890,514 | |||||
Issuance of unvested stock | 800,000 | 800,000 | |||||||||
Terminated stock | 538,479 | -538,479 | -538,479 | ||||||||
Forfeited unvested stock | -140 | -140 | |||||||||
Stock-based compensation expense | 49 | 49 | |||||||||
Net income | 594 | 594 | |||||||||
Net change in accumulated other comprehensive income, net of taxes | -136 | -136 | |||||||||
Conversion of preferred stock to common and non-voting common (in shares) | 4,053,600 | 6,458,000 | -40,536 | -64,580 | 10,511,600 | ||||||
Conversion of preferred stock to common and non-voting common | -2,229 | -3,552 | 5,781 | ||||||||
Ending Balances at Mar. 31, 2015 | $33,972 | $1,644 | $1,127 | $119,019 | $21,491 | ($107,001) | ($2,308) | ||||
Ending Balances (in shares) at Mar. 31, 2015 | 19,205,495 | 6,458,000 | 6,198 | 4,304 | 25,663,495 |
Unaudited_Consolidated_Stateme3
Unaudited Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Cash flows from operating activities | |||
Net income (loss) | $594 | ($287) | ($11,200) |
Adjustments to reconcile net loss to net cash from operating activities | |||
Depreciation and amortization | 422 | 418 | |
Provision for loan losses | 0 | 0 | 7,100 |
Net amortization on securities | 354 | 400 | |
Stock-based compensation expense | 49 | 133 | |
Net loss (gain) on sales of loans held for sale | 281 | -24 | |
Loans originated for sale | -433 | -872 | |
Proceeds from sales of loans held for sale | 9,078 | 1,045 | |
Net (gain) loss on sales of other real estate owned | -3 | ||
Net write-down of other real estate owned | 300 | 250 | |
Net realized gain on sales of investment securities | -1,497 | -44 | |
Earnings on bank owned life insurance, net of premium expense | -64 | -70 | |
Net change in accrued interest receivable and other assets | 783 | -879 | |
Net change in accrued interest payable and other liabilities | 118 | -349 | |
Net cash from operating activities | 9,982 | -279 | |
Cash flows from investing activities | |||
Purchases of available for sale securities | -4,927 | -6,183 | |
Sales of available for sale securities | 34,138 | 329 | |
Maturities and prepayments of available for sale securities | 5,358 | 3,808 | |
Proceeds from mandatory redemption of Federal Home Loan Bank stock | 2,749 | ||
Proceeds from sale of other real estate owned | 2,629 | 2,075 | |
Loan originations and payments, net | -8,618 | 6,608 | |
Purchases of premises and equipment, net | -63 | -72 | |
Net cash from investing activities | 28,517 | 9,314 | |
Cash flows from financing activities | |||
Net change in deposits | 3,668 | -12,832 | |
Net change in repurchase agreements | -196 | -230 | |
Repayment of Federal Home Loan Bank advances | -17,155 | -172 | |
Advances from Federal Home Loan Bank | 5,000 | 25 | |
Repayment of subordinated capital note | -225 | -225 | |
Net cash from financing activities | -8,908 | -13,434 | |
Net change in cash and cash equivalents | 29,591 | -4,399 | |
Beginning cash and cash equivalents | 80,180 | 111,134 | 111,134 |
Ending cash and cash equivalents | 109,771 | 106,735 | 80,180 |
Supplemental cash flow information: | |||
Interest paid | 1,906 | 2,491 | |
Income taxes paid (refunded) | 0 | 0 | |
Supplemental non-cash disclosure: | |||
Transfer from loans to other real estate | $347 | $17,351 |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 1 – Basis of Presentation and Summary of Significant Accounting Policies |
Basis of Presentation – The consolidated financial statements include Porter Bancorp, Inc. (Company) and its subsidiary, PBI Bank (Bank). The Company owns a 100% interest in the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire year. A description of other significant accounting policies is presented in the notes to the Consolidated Financial Statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K. | |
Use of Estimates – To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. | |
Reclassifications – Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications did not impact net income (loss) or stockholders’ equity. |
Going_Concern_Considerations_a
Going Concern Considerations and Future Plans | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Going Concern Considerations and Future Plans | Note 2 – Going Concern Considerations and Future Plans | |||
The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the foreseeable future. However, the events and circumstances described in this Note create substantial doubt about the Company’s ability to continue as a going concern. | ||||
During the first three months of 2015, we reported net income attributable to common shareholders of $409,000, compared with net loss attributable to common shareholders of $976,000 for the first three months of 2014. The increase in 2015 compared to 2014 is primarily attributable to an increase in non-interest income, specifically gains on sales of securities and other real estate owned (OREO) income. | ||||
At March 31, 2015, we continued to be involved in various legal proceedings in which we dispute the material factual allegations against us. After conferring with our legal advisors, we believe we have meritorious grounds on which to prevail. If we do not prevail, the ultimate outcome of any one of these matters could have a material adverse effect on our financial condition, results of operations, or cash flows. These matters are more fully described in Note 13 – “Contingencies”. | ||||
For the year ended December 31, 2014, we reported a net loss of $11.2 million. This loss was attributable primarily to loan loss provision of $7.1 million, OREO expense of $5.8 million resulting from fair value write-downs driven by new appraisals and reduced marketing prices, and ongoing operating expense, along with $3.0 million in loan collection expenses. We also had lower net interest margin due to lower average loans outstanding, loans re-pricing at lower rates, and the level of non-performing loans in our portfolio. After deductions for dividends and accretion on preferred stock of $2.4 million, allocating losses to participating securities of $3.2 million, and the effect of the exchange of preferred stock for common stock of $36.1 million, net income attributable to common shareholders was $19.4 million for the year ended December 31, 2014, compared with a net loss attributable to common shareholders of $3.4 million for the year ended December 31, 2013. | ||||
In June 2011, the Bank agreed to a Consent Order with the FDIC and KDFI in which the Bank agreed, among other things, to improve asset quality, reduce loan concentrations, and maintain a minimum Tier 1 leverage ratio of 9% and a minimum total risk based capital ratio of 12%. In October 2012, the Bank entered into a revised Consent Order with the FDIC and KDFI again agreeing to maintain a minimum Tier 1 leverage ratio of 9% and a minimum total risk based capital ratio of 12%. The Bank also agreed that if it should be unable to reach the required capital levels, and if directed in writing by the FDIC, then the Bank would within 30 days develop, adopt and implement a written plan to sell or merge itself into another federally insured financial institution or otherwise immediately obtain a sufficient capital investment into the Bank to fully meet the capital requirements. | ||||
We expect to continue to work with our regulators toward capital ratio compliance. The revised Consent Order also requires the Bank to continue to adhere to the plans implemented in response to the June 2011 Consent Order, and includes the substantive provisions of the June 2011 Consent Order. The revised Consent Order was included in our Current Report on 8-K filed on September 19, 2012. As of March 31, 2015, the capital ratios required by the Consent Order were not met. | ||||
In order to meet these capital requirements, the Board of Directors and management are continuing to evaluate strategies to achieve the following objectives: | ||||
• | Increasing capital through the issuance of common stock to new and existing shareholders. | |||
• | Continuing to operate the Company and Bank in a safe and sound manner. We have reduced our lending concentrations, and the size of our balance sheet while continuing to remediate non-performing loans, and reduce other noninterest expense through the disposition of OREO. | |||
• | Evaluating and implementing improvements to our internal processes and procedures, distribution of labor, and work-flow to ensure we have adequately and appropriately deployed resources in an efficient manner in the current environment. | |||
• | Executing on our commitment to improve credit quality and reduce loan concentrations and balance sheet risk. | |||
• | We have reduced the size of our loan portfolio significantly from $1.3 billion at December 31, 2010 to $632.4 million at March 31, 2015. | |||
• | We have reduced our construction and development loans to less than 75% of total risk-based capital at March 31, 2015. | |||
• | We have reduced our non-owner occupied commercial real estate loans, construction and development loans, and multi-family residential real estate loans. These loans represented 243% of total risk-based capital at March 31, 2015, down from 262% at December 31, 2014. | |||
• | Executing on our commitment to sell OREO and reinvest in quality income producing assets. | |||
• | Our acquisition of real estate assets through the loan remediation process increased during 2014, as we acquired $32.3 million of OREO in 2014 compared with $20.6 million during 2013. We acquired $347,000 in the first three months of 2015. Additionally, nonaccrual loans totaled $36.5 million at March 31, 2015, and we expect to resolve many of these loans by foreclosure which could result in further additions to our OREO portfolio. | |||
• | We incurred OREO losses totaling $297,000 during the first three months of 2015, comprised of $300,000 in fair value write-downs to reflect declines in appraisal valuations and changes in our pricing strategies, offset by $3,000 in net gain on sales of OREO. | |||
• | To ensure we maximize the value we receive upon the sale of OREO, we continually evaluate sales opportunities. Proceeds from the sale of OREO totaled $2.6 million for the three months ended March 31, 2015, and $2.1 million for the three months ended March 31, 2014. | |||
• | Real estate construction represents 42% of the OREO portfolio at March 31, 2015 compared with 40% at December 31, 2014. Commercial real estate represents 33% of the OREO portfolio at March 31, 2015 compared with 31% at December 31, 2014, and 1-4 family residential properties represent 14% of the portfolio at March 31, 2015 compared with 17% at December 31, 2014. | |||
Bank regulatory agencies can exercise discretion when an institution does not meet the terms of a consent order. Based on individual circumstances, the agencies may issue mandatory directives, impose monetary penalties, initiate changes in management, or take more serious adverse actions such as directing a bank to seek a buyer or taking a bank into receivership. | ||||
The Company’s liquid assets were $1.6 million at March 31, 2015. Since the Bank is unlikely to be in a position to pay dividends to the parent company for the foreseeable future, cash inflows for the parent are limited to earnings on investment securities, sales of investment securities, interest on deposits with the Bank, the issuance of new debt, or the issuance of capital securities. Ongoing operating expenses of the parent company are forecasted at approximately $1.0 million for 2015. | ||||
Effective with the fourth quarter of 2011, we began deferring interest payments on the junior subordinated debentures relating to our trust preferred securities. Deferring interest payments on the junior subordinated debentures resulted in a deferral of distributions on our trust preferred securities. If we defer distributions on our trust preferred securities for 20 consecutive quarters, we must pay all deferred distributions in full or we will be in default. Our deferral period expires in the third quarter of 2016. Deferred distributions on our trust preferred securities, which totaled $2.3 million as of March 31, 2015, are cumulative, and unpaid distributions accrue and compound on each subsequent payment date. If as a result of a default we become subject to any liquidation, dissolution or winding up, holders of the trust preferred securities will be entitled to receive the liquidation amounts to which they are entitled, including all accrued and unpaid distributions, before any distribution can be made to our shareholders. In addition, the holders of our Series E and Series F Preferred Shares will be entitled to receive liquidation distributions totaling $10.5 million before any distribution can be made to the holders of our common shares. |
Securities
Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Securities | Note 3 – Securities | ||||||||||||||||||||||||
The 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: | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 30,073 | $ | 235 | $ | (283 | ) | $ | 30,025 | ||||||||||||||||
Agency mortgage-backed: residential | 104,912 | 2,136 | (92 | ) | 106,956 | ||||||||||||||||||||
State and municipal | 7,118 | 408 | — | 7,526 | |||||||||||||||||||||
Corporate bonds | 12,052 | 258 | (192 | ) | 12,118 | ||||||||||||||||||||
Other debt securities | 572 | 93 | — | 665 | |||||||||||||||||||||
Total available for sale | $ | 154,727 | $ | 3,130 | $ | (567 | ) | $ | 157,290 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
State and municipal | $ | 42,263 | $ | 2,632 | $ | — | $ | 44,895 | |||||||||||||||||
Total held to maturity | $ | 42,263 | $ | 2,632 | $ | — | $ | 44,895 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 35,725 | $ | 308 | $ | (590 | ) | $ | 35,443 | ||||||||||||||||
Agency mortgage-backed: residential | 121,985 | 1,970 | (357 | ) | 123,598 | ||||||||||||||||||||
State and municipal | 11,690 | 722 | (8 | ) | 12,404 | ||||||||||||||||||||
Corporate bonds | 18,087 | 853 | (252 | ) | 18,688 | ||||||||||||||||||||
Other debt securities | 572 | 86 | — | 658 | |||||||||||||||||||||
Total available for sale | $ | 188,059 | $ | 3,939 | $ | (1,207 | ) | $ | 190,791 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
State and municipal | $ | 42,325 | $ | 2,173 | $ | — | $ | 44,498 | |||||||||||||||||
Total held to maturity | $ | 42,325 | $ | 2,173 | $ | — | $ | 44,498 | |||||||||||||||||
Sales and calls of available for sale securities were as follows: | |||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Proceeds | $ | 34,138 | $ | 329 | |||||||||||||||||||||
Gross gains | 1,551 | 44 | |||||||||||||||||||||||
Gross losses | 54 | — | |||||||||||||||||||||||
The amortized cost and fair value of the debt investment securities portfolio are shown by contractual maturity. Contractual maturities may differ from actual maturities if issuers have the right to call or prepay obligations with or without call or prepayment penalties. Mortgage-backed securities not due at a single maturity date are detailed separately. | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
Within one year | $ | 15,002 | $ | 15,102 | |||||||||||||||||||||
One to five years | 7,466 | 7,802 | |||||||||||||||||||||||
Five to ten years | 26,775 | 26,765 | |||||||||||||||||||||||
Beyond ten years | 572 | 665 | |||||||||||||||||||||||
Agency mortgage-backed: residential | 104,912 | 106,956 | |||||||||||||||||||||||
Total | $ | 154,727 | $ | 157,290 | |||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
One to five years | $ | 10,840 | $ | 11,377 | |||||||||||||||||||||
Five to ten years | 27,867 | 29,641 | |||||||||||||||||||||||
Beyond ten years | 3,556 | 3,877 | |||||||||||||||||||||||
Total | $ | 42,263 | $ | 44,895 | |||||||||||||||||||||
Securities pledged at March 31, 2015 and December 31, 2014 had carrying values of approximately $62.1 million and $80.8 million, respectively, and were pledged to secure public deposits and repurchase agreements. | |||||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, we held securities issued by the Commonwealth of Kentucky or municipalities in the Commonwealth of Kentucky having a book value of $18.2 million and $19.1 million, respectively. Additionally, at March 31, 2015 and December 31, 2014, we held securities issued by the State of Texas or municipalities in the State of Texas having a book value of $4.4 million at each period end. At March 31, 2015 and December 31, 2014, there were no other holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of stockholders’ equity. | |||||||||||||||||||||||||
Securities with unrealized losses at March 31, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, are as follows: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 2,576 | $ | (5 | ) | $ | 15,550 | $ | (278 | ) | $ | 18,126 | $ | (283 | ) | ||||||||||
Agency mortgage-backed: residential | — | — | 4,190 | (92 | ) | 4,190 | (92 | ) | |||||||||||||||||
Corporate bonds | 2,299 | (145 | ) | 1,750 | (47 | ) | 4,049 | (192 | ) | ||||||||||||||||
Total temporarily impaired | $ | 4,875 | $ | (150 | ) | $ | 21,490 | $ | (417 | ) | $ | 26,365 | $ | (567 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 7,778 | $ | (60 | ) | $ | 18,681 | $ | (530 | ) | $ | 26,459 | $ | (590 | ) | ||||||||||
Agency mortgage-backed: residential | 6,960 | (12 | ) | 17,938 | (345 | ) | 24,898 | (357 | ) | ||||||||||||||||
State and municipal | 569 | (8 | ) | — | — | 569 | (8 | ) | |||||||||||||||||
Corporate bonds | 4,884 | (119 | ) | 1,660 | (133 | ) | 6,544 | (252 | ) | ||||||||||||||||
Total temporarily impaired | $ | 20,191 | $ | (199 | ) | $ | 38,279 | $ | (1,008 | ) | $ | 58,470 | $ | (1,207 | ) | ||||||||||
There were no held to maturity securities in an unrealized loss position at March 31, 2015 or December 31, 2014. | |||||||||||||||||||||||||
The Company evaluates securities for other than temporary impairment (OTTI) on a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, underlying credit quality of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company may consider whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the sector or industry trends and cycles affecting the issuer, and the results of reviews of the issuer’s financial condition. Management currently intends to hold all securities with unrealized losses until recovery, which for fixed income securities may be at maturity. As of March 31, 2015, management does not believe securities within our portfolio with unrealized losses should be classified as other than temporarily impaired. |
Loans
Loans | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Loans | Note 4 – Loans | ||||||||||||||||||||||||||||
Loans were as follows: | |||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 76,954 | $ | 60,936 | |||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 36,793 | 33,173 | |||||||||||||||||||||||||||
Farmland | 77,948 | 77,419 | |||||||||||||||||||||||||||
Nonfarm nonresidential | 159,276 | 175,452 | |||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 43,150 | 41,891 | |||||||||||||||||||||||||||
1-4 Family | 197,583 | 197,278 | |||||||||||||||||||||||||||
Consumer | 10,831 | 11,347 | |||||||||||||||||||||||||||
Agriculture | 28,673 | 26,966 | |||||||||||||||||||||||||||
Other | 1,220 | 537 | |||||||||||||||||||||||||||
Subtotal | 632,428 | 624,999 | |||||||||||||||||||||||||||
Less: Allowance for loan losses | (18,597 | ) | (19,364 | ) | |||||||||||||||||||||||||
Loans, net | $ | 613,831 | $ | 605,635 | |||||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,046 | $ | 10,931 | $ | 5,787 | $ | 274 | $ | 319 | $ | 7 | $ | 19,364 | |||||||||||||||
Provision for loan losses | 269 | 7 | (384 | ) | 12 | 104 | (8 | ) | — | ||||||||||||||||||||
Loans charged off | (375 | ) | (369 | ) | (482 | ) | (68 | ) | (33 | ) | — | (1,327 | ) | ||||||||||||||||
Recoveries | 106 | 111 | 300 | 26 | 1 | 16 | 560 | ||||||||||||||||||||||
Ending balance | $ | 2,046 | $ | 10,680 | $ | 5,221 | $ | 244 | $ | 391 | $ | 15 | $ | 18,597 | |||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,221 | $ | 16,414 | $ | 7,762 | $ | 416 | $ | 305 | $ | 6 | $ | 28,124 | |||||||||||||||
Provision for loan losses | 445 | (1,127 | ) | 534 | 19 | 113 | 16 | — | |||||||||||||||||||||
Loans charged off | (146 | ) | (1,474 | ) | (1,308 | ) | (128 | ) | (9 | ) | (17 | ) | (3,082 | ) | |||||||||||||||
Recoveries | 88 | 116 | 83 | 76 | 6 | 4 | 373 | ||||||||||||||||||||||
Ending balance | $ | 3,608 | $ | 13,929 | $ | 7,071 | $ | 383 | $ | 415 | $ | 9 | $ | 25,415 | |||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of March 31, 2015: | |||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2 | $ | 51 | $ | 200 | $ | 1 | $ | — | $ | — | $ | 254 | |||||||||||||||
Collectively evaluated for impairment | 2,044 | 10,629 | 5,021 | 243 | 391 | 15 | 18,343 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,046 | $ | 10,680 | $ | 5,221 | $ | 244 | $ | 391 | $ | 15 | $ | 18,597 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,677 | $ | 32,731 | $ | 20,504 | $ | 32 | $ | 232 | $ | 123 | $ | 55,299 | |||||||||||||||
Loans collectively evaluated for impairment | 75,277 | 241,286 | 220,229 | 10,799 | 28,441 | 1,097 | 577,129 | ||||||||||||||||||||||
Total ending loans balance | $ | 76,954 | $ | 274,017 | $ | 240,733 | $ | 10,831 | $ | 28,673 | $ | 1,220 | $ | 632,428 | |||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of December 31, 2014: | |||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 33 | $ | 491 | $ | 227 | $ | 1 | $ | — | $ | — | $ | 752 | |||||||||||||||
Collectively evaluated for impairment | 2,013 | 10,440 | 5,560 | 273 | 319 | 7 | 18,612 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,046 | $ | 10,931 | $ | 5,787 | $ | 274 | $ | 319 | $ | 7 | $ | 19,364 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,022 | $ | 48,141 | $ | 21,384 | $ | 61 | $ | 263 | $ | 122 | $ | 71,993 | |||||||||||||||
Loans collectively evaluated for impairment | 58,914 | 237,903 | 217,785 | 11,286 | 26,703 | 415 | 553,006 | ||||||||||||||||||||||
Total ending loans balance | $ | 60,936 | $ | 286,044 | $ | 239,169 | $ | 11,347 | $ | 26,966 | $ | 537 | $ | 624,999 | |||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Impaired loans include restructured loans and loans on nonaccrual or classified as doubtful, whereby collection of the total amount is improbable, or loss, whereby all or a portion of the loan has been written off or a specific allowance for loss has been provided. | |||||||||||||||||||||||||||||
The following tables present information related to loans individually evaluated for impairment by class of loans as of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014: | |||||||||||||||||||||||||||||
As of March 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Interest | Cash | ||||||||||||||||||||||||
Principal | Investment | For Loan | Recorded | Income | Basis | ||||||||||||||||||||||||
Balance | Losses | Investment | Recognized | Income | |||||||||||||||||||||||||
Allocated | Recognized | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | $ | 2,109 | $ | 1,664 | $ | — | $ | 1,821 | $ | — | $ | — | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | 4,514 | 3,938 | — | 4,019 | 4 | 1 | |||||||||||||||||||||||
Farmland | 7,064 | 4,870 | — | 4,804 | 23 | 23 | |||||||||||||||||||||||
Nonfarm nonresidential | 34,805 | 23,421 | — | 22,920 | 65 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | — | — | — | 40 | — | — | |||||||||||||||||||||||
1-4 Family | 16,813 | 14,570 | — | 14,918 | 134 | 47 | |||||||||||||||||||||||
Consumer | 90 | 24 | — | 27 | — | — | |||||||||||||||||||||||
Agriculture | 273 | 232 | — | 247 | — | — | |||||||||||||||||||||||
Other | 368 | 123 | — | 123 | 2 | 2 | |||||||||||||||||||||||
Subtotal | 66,036 | 48,842 | — | 48,919 | 228 | 73 | |||||||||||||||||||||||
With An Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | 13 | 13 | 2 | 29 | — | — | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||||||
Farmland | — | — | — | 157 | — | — | |||||||||||||||||||||||
Nonfarm nonresidential | 586 | 502 | 51 | 8,535 | 6 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 4,250 | 4,250 | 84 | 4,258 | 47 | — | |||||||||||||||||||||||
1-4 Family | 1,684 | 1,684 | 116 | 1,727 | 25 | — | |||||||||||||||||||||||
Consumer | 8 | 8 | 1 | 20 | — | — | |||||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||
Subtotal | 6,541 | 6,457 | 254 | 14,726 | 78 | — | |||||||||||||||||||||||
Total | $ | 72,577 | $ | 55,299 | $ | 254 | $ | 63,645 | $ | 306 | $ | 73 | |||||||||||||||||
As of December 31, 2014 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Interest | Cash | ||||||||||||||||||||||||
Principal | Investment | For Loan | Recorded | Income | Basis | ||||||||||||||||||||||||
Balance | Losses | Investment | Recognized | Income | |||||||||||||||||||||||||
Allocated | Recognized | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | $ | 2,546 | $ | 1,978 | $ | — | $ | 2,679 | $ | 1 | $ | 1 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | 4,714 | 4,100 | — | 7,433 | 3 | — | |||||||||||||||||||||||
Farmland | 6,636 | 4,739 | — | 7,322 | 17 | 17 | |||||||||||||||||||||||
Other | 34,437 | 22,418 | — | 58,027 | 182 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 81 | 81 | — | 4,036 | — | — | |||||||||||||||||||||||
1-4 Family | 18,496 | 15,266 | — | 29,053 | 286 | 169 | |||||||||||||||||||||||
Consumer | 93 | 29 | — | 4 | — | — | |||||||||||||||||||||||
Agriculture | 276 | 263 | — | 310 | 3 | 3 | |||||||||||||||||||||||
Other | 367 | 122 | — | 408 | 7 | 7 | |||||||||||||||||||||||
Subtotal | 67,646 | 48,996 | — | 109,272 | 499 | 197 | |||||||||||||||||||||||
With An Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | 145 | 44 | 33 | 2,218 | 18 | — | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 1,117 | 6 | — | |||||||||||||||||||||||
Farmland | 658 | 315 | 38 | 124 | — | — | |||||||||||||||||||||||
Other | 19,454 | 16,569 | 453 | 16,564 | 109 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 4,266 | 4,266 | 91 | 4,659 | 37 | — | |||||||||||||||||||||||
1-4 Family | 1,791 | 1,771 | 136 | 2,001 | 19 | — | |||||||||||||||||||||||
Consumer | 32 | 32 | 1 | 65 | 1 | — | |||||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||
Subtotal | 26,346 | 22,997 | 752 | 26,748 | 190 | — | |||||||||||||||||||||||
Total | $ | 93,992 | $ | 71,993 | $ | 752 | $ | 136,020 | $ | 689 | $ | 197 | |||||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||
A troubled debt restructuring (TDR) occurs when the Company has agreed to a loan modification in the form of a concession for a borrower who is experiencing financial difficulty. The majority of the Company’s TDRs involve a reduction in interest rate, a deferral of principal for a stated period of time, or an interest only period. All TDRs are considered impaired and the Company has allocated reserves for these loans to reflect the present value of the concessionary terms granted to the borrower. | |||||||||||||||||||||||||||||
The following table presents the types of TDR loan modifications by portfolio segment outstanding as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
TDRs | TDRs Not | Total | |||||||||||||||||||||||||||
Performing to | Performing to | TDRs | |||||||||||||||||||||||||||
Modified | Modified | ||||||||||||||||||||||||||||
Terms | Terms | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Rate reduction | $ | 13 | $ | 69 | $ | 82 | |||||||||||||||||||||||
Principal deferral | — | 869 | 869 | ||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Rate reduction | 267 | 3,237 | 3,504 | ||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Principal deferral | — | 2,365 | 2,365 | ||||||||||||||||||||||||||
Nonfarm nonresidential | |||||||||||||||||||||||||||||
Rate reduction | 5,543 | 12,462 | 18,005 | ||||||||||||||||||||||||||
Principal deferral | 660 | — | 660 | ||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Rate reduction | 4,250 | — | 4,250 | ||||||||||||||||||||||||||
1-4 Family | |||||||||||||||||||||||||||||
Rate reduction | 8,057 | — | 8,057 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Rate reduction | 8 | — | 8 | ||||||||||||||||||||||||||
Total TDRs | $ | 18,798 | $ | 19,002 | $ | 37,800 | |||||||||||||||||||||||
TDRs | TDRs Not | Total | |||||||||||||||||||||||||||
Performing to | Performing to | TDRs | |||||||||||||||||||||||||||
Modified Terms | Modified Terms | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Rate reduction | $ | 14 | $ | — | $ | 14 | |||||||||||||||||||||||
Principal deferral | — | 869 | 869 | ||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Rate reduction | 268 | 3,379 | 3,647 | ||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Principal deferral | — | 2,365 | 2,365 | ||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Rate reduction | 8,622 | 13,894 | 22,516 | ||||||||||||||||||||||||||
Principal deferral | 671 | — | 671 | ||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Rate reduction | 4,266 | — | 4,266 | ||||||||||||||||||||||||||
1-4 Family | |||||||||||||||||||||||||||||
Rate reduction | 8,112 | — | 8,112 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Rate reduction | 32 | — | 32 | ||||||||||||||||||||||||||
Total TDRs | $ | 21,985 | $ | 20,507 | $ | 42,492 | |||||||||||||||||||||||
At March 31, 2015 and December 31, 2014, 50% and 52%, respectively, of the Company’s TDRs were performing according to their modified terms. The Company allocated $253,000 and $579,000 in reserves to borrowers whose loan terms have been modified in TDRs as of March 31, 2015, and December 31, 2014, respectively. The Company has committed to lend no additional amounts to customers as of March 31, 2015 and December 31, 2014 to borrowers with outstanding loans classified as TDRs. | |||||||||||||||||||||||||||||
Management periodically reviews renewals/modifications of previously identified TDRs, for which there was no principal forgiveness, to consider if it is appropriate to remove the TDR classification. If the borrower is no longer experiencing financial difficulty and the renewal/modification did not contain a concessionary interest rate or other concessionary terms, management considers the potential removal of the TDR classification. If deemed appropriate, the TDR classification is removed as the borrower has complied with the terms of the loan at the date of renewal/modification and there was a reasonable expectation that the borrower would continue to comply with the terms of the loan subsequent to the date of the renewal/modification. In this instance, the TDR was originally considered a restructuring in a prior year as a result of a modification with an interest rate that was not commensurate with the risk of the underlying loan. Additionally, TDR classification can be removed in circumstances in which the Company performs a non-concessionary re-modification of the loan at terms that were considered to be at market for loans with comparable risk. Management expects the borrower will continue to perform under the re-modified terms based on the borrower’s past history of performance. | |||||||||||||||||||||||||||||
No TDR loan modifications occurred during the three months ended March 31, 2015 or March 31, 2014. During the first three months of 2015 and 2014, no TDRs defaulted on their restructured loan within the 12 month period following the loan modification. A default is considered to have occurred once the TDR is past due 90 days or more or it has been placed on nonaccrual. | |||||||||||||||||||||||||||||
Nonperforming Loans | |||||||||||||||||||||||||||||
Nonperforming loans include impaired loans not on accrual and smaller balance homogeneous loans, such as residential mortgage and consumer loans, that are collectively evaluated for impairment. | |||||||||||||||||||||||||||||
The following table presents the recorded investment in nonaccrual and loans past due 90 days and still on accrual by class of loan as of March 31, 2015, and December 31, 2014: | |||||||||||||||||||||||||||||
Nonaccrual | Loans Past Due 90 Days | ||||||||||||||||||||||||||||
And Over Still Accruing | |||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 1,663 | $ | 1,978 | $ | — | $ | — | |||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 3,671 | 3,831 | — | — | |||||||||||||||||||||||||
Farmland | 4,871 | 5,054 | — | — | |||||||||||||||||||||||||
Nonfarm nonresidential | 17,719 | 26,892 | — | — | |||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | 80 | — | — | |||||||||||||||||||||||||
1-4 Family | 8,197 | 8,925 | — | 151 | |||||||||||||||||||||||||
Consumer | 24 | 30 | 18 | — | |||||||||||||||||||||||||
Agriculture | 232 | 263 | — | — | |||||||||||||||||||||||||
Other | 123 | 122 | — | — | |||||||||||||||||||||||||
Total | $ | 36,500 | $ | 47,175 | $ | 18 | $ | 151 | |||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | 90 Days | Nonaccrual | Total | |||||||||||||||||||||||||
Days | Days | And Over | Past Due | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due | And | ||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | $ | 465 | $ | 4 | $ | — | $ | 1,663 | $ | 2,132 | |||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 3,671 | 3,671 | ||||||||||||||||||||||||
Farmland | 343 | 230 | — | 4,871 | 5,444 | ||||||||||||||||||||||||
Nonfarm nonresidential | 356 | 221 | — | 17,719 | 18,296 | ||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | 42 | — | — | 42 | ||||||||||||||||||||||||
1-4 Family | 2,959 | 1,267 | — | 8,197 | 12,423 | ||||||||||||||||||||||||
Consumer | 156 | 5 | 18 | 24 | 203 | ||||||||||||||||||||||||
Agriculture | 91 | — | — | 232 | 323 | ||||||||||||||||||||||||
Other | — | — | — | 123 | 123 | ||||||||||||||||||||||||
Total | $ | 4,370 | $ | 1,769 | $ | 18 | $ | 36,500 | $ | 42,657 | |||||||||||||||||||
30 – 59 | 60 – 89 | 90 Days | Nonaccrual | Total | |||||||||||||||||||||||||
Days | Days | And Over | Past Due | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due | And | ||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | $ | 86 | $ | — | $ | — | $ | 1,978 | $ | 2,064 | |||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 3,831 | 3,831 | ||||||||||||||||||||||||
Farmland | 400 | 14 | — | 5,054 | 5,468 | ||||||||||||||||||||||||
Nonfarm nonresidential | 241 | 318 | — | 26,892 | 27,451 | ||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | — | — | 80 | 80 | ||||||||||||||||||||||||
1-4 Family | 3,124 | 601 | 151 | 8,925 | 12,801 | ||||||||||||||||||||||||
Consumer | 109 | 47 | — | 30 | 186 | ||||||||||||||||||||||||
Agriculture | — | — | — | 263 | 263 | ||||||||||||||||||||||||
Other | — | — | — | 122 | 122 | ||||||||||||||||||||||||
Total | $ | 3,960 | $ | 980 | $ | 151 | $ | 47,175 | $ | 52,266 | |||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||
We categorize all loans into risk categories at origination based upon original underwriting. Thereafter, we categorize loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends. Additionally, loans are analyzed continuously through our internal and external loan review processes. Borrower relationships in excess of $500,000 are routinely analyzed through our credit administration processes which classify the loans as to credit risk. The following definitions are used for risk ratings: | |||||||||||||||||||||||||||||
Watch – Loans classified as watch are those loans which have experienced a potentially adverse development which necessitates increased monitoring. | |||||||||||||||||||||||||||||
Special Mention – Loans classified as special mention do not have all of the characteristics of substandard or doubtful loans. They have one or more deficiencies which warrant special attention and which corrective action, such as accelerated collection practices, may remedy. | |||||||||||||||||||||||||||||
Substandard – Loans classified as substandard are those loans with clear and defined weaknesses such as a highly leveraged position, unfavorable financial ratios, uncertain repayment sources or poor financial condition which may jeopardize the repayment of the debt as contractually agreed. They are characterized by the distinct possibility we will sustain some losses if the deficiencies are not corrected. | |||||||||||||||||||||||||||||
Doubtful – Loans classified as doubtful are those loans which have characteristics similar to substandard loans but with an increased risk that collection or liquidation in full is highly questionable and improbable. | |||||||||||||||||||||||||||||
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “Pass” rated loans. As of March 31, 2015, and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | |||||||||||||||||||||||||||||
Pass | Watch | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | $ | 67,239 | $ | 4,422 | $ | — | $ | 5,293 | $ | — | $ | 76,954 | |||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 27,975 | 3,787 | — | 5,031 | — | 36,793 | |||||||||||||||||||||||
Farmland | 63,761 | 6,834 | — | 7,353 | — | 77,948 | |||||||||||||||||||||||
Nonfarm nonresidential | 107,808 | 26,755 | 797 | 23,916 | — | 159,276 | |||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 34,093 | 5,090 | — | 3,967 | — | 43,150 | |||||||||||||||||||||||
1-4 Family | 150,241 | 19,869 | 12 | 27,461 | — | 197,583 | |||||||||||||||||||||||
Consumer | 9,805 | 370 | 301 | 355 | — | 10,831 | |||||||||||||||||||||||
Agriculture | 18,526 | 9,749 | — | 398 | — | 28,673 | |||||||||||||||||||||||
Other | 1,097 | — | — | 123 | — | 1,220 | |||||||||||||||||||||||
Total | $ | 480,545 | $ | 76,876 | $ | 1,110 | $ | 73,897 | $ | — | $ | 632,428 | |||||||||||||||||
Pass | Watch | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | $ | 49,440 | $ | 5,063 | $ | — | $ | 6,433 | $ | — | $ | 60,936 | |||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 25,266 | 2,990 | — | 4,917 | — | 33,173 | |||||||||||||||||||||||
Farmland | 61,672 | 7,922 | — | 7,825 | — | 77,419 | |||||||||||||||||||||||
Nonfarm nonresidential | 111,426 | 21,017 | 3,747 | 39,262 | — | 175,452 | |||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 31,526 | 6,039 | — | 4,326 | — | 41,891 | |||||||||||||||||||||||
1-4 Family | 145,450 | 23,928 | 131 | 27,769 | — | 197,278 | |||||||||||||||||||||||
Consumer | 10,115 | 537 | 311 | 384 | — | 11,347 | |||||||||||||||||||||||
Agriculture | 25,816 | 704 | — | 446 | — | 26,966 | |||||||||||||||||||||||
Other | 415 | — | — | 122 | — | 537 | |||||||||||||||||||||||
Total | $ | 461,126 | $ | 68,200 | $ | 4,189 | $ | 91,484 | $ | — | $ | 624,999 | |||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Real Estate Owned | Note 5 – Other Real Estate Owned | ||||||||
Other real estate owned (OREO) is real estate acquired as a result of foreclosure or by deed in lieu of foreclosure. It is classified as real estate owned until such time as it is sold. When property is acquired as a result of foreclosure or by deed in lieu of foreclosure, it is recorded at its fair market value less cost to sell. Any write-down of the property at the time of acquisition is charged to the allowance for loan losses. Costs incurred in order to perfect the lien prior to foreclosure may be capitalized if the fair value less the cost to sell exceeds the balance of the loan at the time of transfer to OREO. Examples of eligible costs to be capitalized are payments of delinquent property taxes to clear tax liens or payments to contractors and subcontractors to clear mechanics’ liens. Subsequent reductions in fair value are recorded as non-interest expense. | |||||||||
To determine the fair value of OREO for smaller dollar single family homes, we consult with internal real estate sales staff and external realtors, investors, and appraisers. If the internally evaluated market price is below our underlying investment in the property, appropriate write-downs are taken. For larger dollar residential and commercial real estate properties, we obtain a new appraisal of the subject property or have staff from our special assets group or in our centralized appraisal department evaluate the latest in-file appraisal in connection with the transfer to other real estate owned. We typically obtain updated appraisals within five quarters of the anniversary date of ownership unless a sale is imminent. | |||||||||
The following table presents the major categories of OREO at the period-ends indicated: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Commercial Real Estate: | |||||||||
Construction, land development, and other land | $ | 18,319 | $ | 18,748 | |||||
Farmland | 256 | 669 | |||||||
Nonfarm nonresidential | 14,592 | 14,860 | |||||||
Residential Real Estate: | |||||||||
Multi-family | 4,700 | 4,988 | |||||||
1-4 Family | 6,243 | 7,998 | |||||||
44,110 | 47,263 | ||||||||
Valuation allowance | (492 | ) | (1,066 | ) | |||||
$ | 43,618 | $ | 46,197 | ||||||
For the Three | |||||||||
Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
OREO Valuation Allowance Activity: | |||||||||
Beginning balance | $ | 1,066 | $ | 230 | |||||
Provision to allowance | 300 | 250 | |||||||
Write-downs | (874 | ) | (272 | ) | |||||
Ending balance | $ | 492 | $ | 208 | |||||
Residential loans secured by 1-4 family residential properties in the process of foreclosure totaled $2.6 million and $3.6 million at March 31, 2015 and December 31, 2014, respectively. | |||||||||
Net activity relating to other real estate owned during the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
For the Three | |||||||||
Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
OREO Activity | |||||||||
OREO as of January 1 | $ | 46,197 | $ | 30,892 | |||||
Real estate acquired | 347 | 17,351 | |||||||
Valuation adjustment writedowns | (300 | ) | (250 | ) | |||||
Gain/(loss) on sale | 3 | — | |||||||
Proceeds from sale of properties | (2,629 | ) | (2,075 | ) | |||||
OREO as of March 31 | $ | 43,618 | $ | 45,918 | |||||
Expenses related to other real estate owned include: | |||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Net (gain) loss on sales | $ | (3 | ) | $ | — | ||||
Provision to allowance | 300 | 250 | |||||||
Operating expense | 436 | 412 | |||||||
Total | $ | 733 | $ | 662 | |||||
Deposits
Deposits | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deposits | Note 6 – Deposits | ||||||||
The following table shows ending deposit balances by category as of: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Non-interest bearing | $ | 108,011 | $ | 114,910 | |||||
Interest checking | 86,614 | 91,086 | |||||||
Money market | 102,349 | 109,734 | |||||||
Savings | 36,418 | 36,430 | |||||||
Certificates of deposit | 597,117 | 574,681 | |||||||
Total | $ | 930,509 | $ | 926,841 | |||||
Time deposits of $250,000 or more were $36.7 million and $34.4 million at March 31, 2015 and December 31, 2014, respectively. | |||||||||
Scheduled maturities of all time deposits at March 31, 2015 were as follows (in thousands): | |||||||||
Year 1 | $ | 371,065 | |||||||
Year 2 | 161,220 | ||||||||
Year 3 | 11,268 | ||||||||
Year 4 | 11,505 | ||||||||
Year 5 | 42,058 | ||||||||
Thereafter | 1 | ||||||||
$ | 597,117 | ||||||||
Advances_from_the_Federal_Home
Advances from the Federal Home Loan Bank | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Advances from the Federal Home Loan Bank | Note 7 – Advances from the Federal Home Loan Bank | ||||||||
Advances from the Federal Home Loan Bank were as follows: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Monthly amortizing advances with fixed rates from 0.00% to 5.25% and maturities ranging from 2017 through 2033, averaging 2.85% at March 31, 2015 and 1.02% at December 31, 2014 | $ | 3,597 | $ | 15,752 | |||||
Each advance is payable based upon the terms on agreement, with a prepayment penalty. New advances are limited to a one year maturity or less. No prepayment penalties were incurred during 2015 or 2014. The advances are collateralized by first mortgage loans. The borrowing capacity is based on the market value of the underlying pledged loans. At March 31, 2015, our additional borrowing capacity with the FHLB was $23.4 million. The availability of our borrowing capacity could be affected by our financial condition and the FHLB could require additional collateral or, among other things, exercise its right to deny a funding request, at its discretion. |
Fair_Values_Measurement
Fair Values Measurement | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Values Measurement | Note 8 – Fair Values Measurement | ||||||||||||||||||||
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use various valuation techniques to determine fair value, including market, income and cost approaches. There are three levels of inputs that may be used to measure fair values: | |||||||||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets an entity has the ability to access as of the measurement date, or observable inputs. | |||||||||||||||||||||
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, and other inputs that are observable or can be corroborated by observable market data. | |||||||||||||||||||||
Level 3: Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | |||||||||||||||||||||
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. When that occurs, we classify the fair value hierarchy on the lowest level of input that is significant to the fair value measurement. We used the following methods and significant assumptions to estimate fair value. | |||||||||||||||||||||
Securities: The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges, if available. This valuation method is classified as Level 1 in the fair value hierarchy. For securities where quoted prices are not available, fair values are calculated on market prices of similar securities, or matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities. Matrix pricing relies on the securities’ relationship to similarly traded securities, benchmark curves, and the benchmarking of like securities. Matrix pricing utilizes observable market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic events. In instances where broker quotes are used, these quotes are obtained from market makers or broker-dealers recognized to be market participants. This valuation method is classified as Level 2 in the fair value hierarchy. For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators. This valuation method is classified as Level 3 in the fair value hierarchy. Discounted cash flows are calculated using spread to swap and LIBOR curves that are updated to incorporate loss severities, volatility, credit spread and optionality. During times when trading is more liquid, broker quotes are used (if available) to validate the model. Rating agency and industry research reports as well as defaults and deferrals on individual securities are reviewed and incorporated into the calculations. | |||||||||||||||||||||
Impaired Loans: An impaired loan is evaluated at the time the loan is identified as impaired and is recorded at fair value less costs to sell. Fair value is measured based on the value of the collateral securing the loan and is classified as Level 3 in the fair value hierarchy. Fair value is determined using several methods. Generally, the fair value of real estate is determined based on appraisals by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. | |||||||||||||||||||||
Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. These routine adjustments are made to adjust the value of a specific property relative to comparable properties for variations in qualities such as location, size, and income production capacity relative to the subject property of the appraisal. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||||||
We routinely apply an internal discount to the value of appraisals used in the fair value evaluation of our impaired loans. The deductions to the appraisal take into account changing business factors and market conditions, as well as potential value impairment in cases where our appraisal date predates a likely change in market conditions. These deductions range from 10% for routine real estate collateral to 25% for real estate that is determined (1) to have a thin trading market or (2) to be specialized collateral. This is in addition to estimated discounts for cost to sell of six to ten percent. | |||||||||||||||||||||
We also apply discounts to the expected fair value of collateral for impaired loans where the likely resolution involves litigation or foreclosure. Resolution of this nature generally results in receiving lower values for real estate collateral in a more aggressive sales environment. We have utilized discounts ranging from 10% to 33% in our impairment evaluations when applicable. | |||||||||||||||||||||
Impaired loans are evaluated quarterly for additional impairment. We obtain updated appraisals on properties securing our loans when circumstances are warranted such as at the time of renewal or when market conditions have significantly changed. This determination is made on a property-by-property basis in light of circumstances in the broader economic climate and our assessment of deterioration of real estate values in the market in which the property is located. The first stage of our assessment involves management’s inspection of the property in question. Management also engages in conversations with local real estate professionals, investors, and market participants to determine the likely marketing time and value range for the property. The second stage involves an assessment of current trends in the regional market. After thorough consideration of these factors, management will either internally evaluate fair value or order a new appraisal. | |||||||||||||||||||||
Other Real Estate Owned (OREO): OREO is evaluated at the time of acquisition and recorded at fair value as determined by independent appraisal or internal evaluation less cost to sell. Our quarterly evaluations of OREO for impairment are driven by property type. For smaller dollar single family homes, we consult with internal real estate sales staff and external realtors, investors, and appraisers. Based on these consultations, we determine asking prices for OREO properties we are marketing for sale. If the internally evaluated fair value is below our recorded investment in the property, appropriate write-downs are taken. | |||||||||||||||||||||
For larger dollar commercial real estate properties, we obtain a new appraisal of the subject property or have staff in our special assets group or centralized appraisal department evaluate the latest in-file appraisal in connection with the transfer to other real estate owned. In some of these circumstances, an appraisal is in process at quarter end, and we must make our best estimate of the fair value of the underlying collateral based on our internal evaluation of the property, review of the most recent appraisal, and discussions with the currently engaged appraiser. We generally obtain updated appraisals within five quarters of the anniversary date of ownership unless a sale is imminent. | |||||||||||||||||||||
We routinely apply an internal discount to the value of appraisals used in the fair value evaluation of our OREO. The deductions to the appraisal take into account changing business factors and market conditions, as well as potential value impairment in cases where our appraisal date predates a likely change in market conditions. These deductions range from 10% for routine real estate collateral to 25% for real estate that is determined (1) to have a thin trading market or (2) to be specialized collateral. This is in addition to estimated discounts for cost to sell of six to ten percent. | |||||||||||||||||||||
Financial assets measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 are summarized below: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
U.S. Government and federal agency | $ | 30,025 | $ | — | $ | 30,025 | $ | — | |||||||||||||
Agency mortgage-backed: residential | 106,956 | — | 106,956 | — | |||||||||||||||||
State and municipal | 7,526 | — | 7,526 | — | |||||||||||||||||
Corporate bonds | 12,118 | — | 12,118 | — | |||||||||||||||||
Other debt securities | 665 | — | — | 665 | |||||||||||||||||
Total | $ | 157,290 | $ | — | $ | 156,625 | $ | 665 | |||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
U.S. Government and federal agency | $ | 35,443 | $ | — | $ | 35,443 | $ | — | |||||||||||||
Agency mortgage-backed: residential | 123,598 | — | 123,598 | — | |||||||||||||||||
State and municipal | 12,404 | — | 12,404 | — | |||||||||||||||||
Corporate bonds | 18,688 | — | 18,688 | — | |||||||||||||||||
Other debt securities | 658 | — | — | 658 | |||||||||||||||||
Total | $ | 190,791 | $ | — | $ | 190,133 | $ | 658 | |||||||||||||
There were no transfers between Level 1 and Level 2 during 2015 or 2014. | |||||||||||||||||||||
The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods ended March 31, 2015 and 2014: | |||||||||||||||||||||
Other Debt | |||||||||||||||||||||
Securities | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balances of recurring Level 3 assets at January 1 | $ | 658 | $ | 632 | |||||||||||||||||
Total gain (loss) for the period: | |||||||||||||||||||||
Included in other comprehensive income (loss) | 7 | 12 | |||||||||||||||||||
Balance of recurring Level 3 assets at March 31 | $ | 665 | $ | 644 | |||||||||||||||||
Our other debt security valuation is determined internally by calculating discounted cash flows using the security’s coupon rate of 6.5% and an estimated current market rate of 8.0% based upon the current yield curve plus spreads that adjust for volatility, credit risk, and optionality. We also consider the issuer’s publicly filed financial information as well as assumptions regarding the likelihood of deferrals and defaults. | |||||||||||||||||||||
Financial assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||
Farmland | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 162 | — | — | 162 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||
1-4 Family | 1,568 | — | — | 1,568 | |||||||||||||||||
Consumer | 8 | — | — | 8 | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Other real estate owned, net: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | 18,114 | — | — | 18,114 | |||||||||||||||||
Farmland | 253 | — | — | 253 | |||||||||||||||||
Nonfarm nonresidential | 14,429 | — | — | 14,429 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | 4,648 | — | — | 4,648 | |||||||||||||||||
1-4 Family | 6,174 | — | — | 6,174 | |||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 12 | $ | — | $ | — | $ | 12 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||
Farmland | 278 | — | — | 278 | |||||||||||||||||
Other | 15,825 | — | — | 15,825 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||
1-4 Family | 1,635 | — | — | 1,635 | |||||||||||||||||
Consumer | 31 | — | — | 31 | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Other real estate owned, net: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | 18,325 | — | — | 18,325 | |||||||||||||||||
Farmland | 654 | — | — | 654 | |||||||||||||||||
Other | 14,525 | — | — | 14,525 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | 4,875 | — | — | 4,875 | |||||||||||||||||
1-4 Family | 7,818 | — | — | 7,818 | |||||||||||||||||
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $1.9 million at March 31, 2015 with a valuation allowance of $254,000, resulting in no additional provision for loan losses for the three months ended March 31, 2015. Impaired loans had a carrying amount of $15.6 million with a valuation allowance of $2.5 million, and no additional provision for the three months ended March 31, 2014. At December 31, 2014, impaired loans had a carrying amount of $18.4 million, with a valuation allowance of $752,000. | |||||||||||||||||||||
OREO, which is measured at the lower of carrying or fair value less estimated costs to sell, had a net carrying amount of $43.6 million as of March 31, 2015, compared with $45.9 million at March 31, 2014 and $46.2 million at December 31, 2014. Fair value write-downs of $300,000 and $250,000 were recorded on OREO for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||
The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2015: | |||||||||||||||||||||
Fair Value | Valuation | Unobservable Input(s) | Range (Weighted | ||||||||||||||||||
Technique(s) | Average) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans – Commercial | $ | 11 | Market value approach | Adjustment for receivables and inventory discounts | 16% - 32% (24%) | ||||||||||||||||
Impaired loans – Commercial real estate | $ | 162 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 62% (16%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 9% (8%) | |||||||||||||||||||
Impaired loans – Residential real estate | $ | 1,568 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 39% (11%) | ||||||||||||||||
Other real estate owned – Commercial real estate | $ | 32,796 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 45% (18%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 20% (13%) | |||||||||||||||||||
Other real estate owned – Residential real estate | $ | 10,822 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 10% (5%) | ||||||||||||||||
The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014: | |||||||||||||||||||||
Fair Value | Valuation | Unobservable Input(s) | Range (Weighted | ||||||||||||||||||
Technique(s) | Average) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans – Commercial | $ | 12 | Market value approach | Adjustment for receivables and inventory discounts | 16% -32% (24%) | ||||||||||||||||
Impaired loans – Commercial real estate | $ | 16,103 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 62% (14%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 9% (8%) | |||||||||||||||||||
Impaired loans – Residential real estate | $ | 1,635 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 39% (11%) | ||||||||||||||||
Other real estate owned – Commercial real estate | $ | 33,504 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 45% (18%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 9% - 20% (13%) | |||||||||||||||||||
Other real estate owned – Residential real estate | $ | 12,693 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 15% (6%) | ||||||||||||||||
Carrying amount and estimated fair values of financial instruments were as follows for the periods indicated: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Using | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 109,771 | $ | 96,168 | $ | 13,603 | $ | — | $ | 109,771 | |||||||||||
Securities available for sale | 157,290 | — | 156,625 | 665 | 157,290 | ||||||||||||||||
Securities held to maturity | 42,263 | — | 44,895 | — | 44,895 | ||||||||||||||||
Federal Home Loan Bank stock | 7,323 | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | — | — | — | — | — | ||||||||||||||||
Loans, net | 613,831 | — | — | 622,241 | 622,241 | ||||||||||||||||
Accrued interest receivable | 3,036 | — | 1,072 | 1,964 | 3,036 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | $ | 930,509 | $ | 108,011 | $ | 817,396 | $ | — | $ | 925,407 | |||||||||||
Securities sold under agreements to repurchase | 1,145 | — | 1,145 | — | 1,145 | ||||||||||||||||
Federal Home Loan Bank advances | 3,597 | — | 3,604 | — | 3,604 | ||||||||||||||||
Subordinated capital notes | 4,725 | — | — | 4,558 | 4,558 | ||||||||||||||||
Junior subordinated debentures | 25,000 | — | — | 14,433 | 14,433 | ||||||||||||||||
Accrued interest payable | 2,864 | — | 606 | 2,258 | 2,864 | ||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 80,180 | $ | 49,007 | $ | 31,173 | $ | — | $ | 80,180 | |||||||||||
Securities available for sale | 190,791 | — | 190,133 | 658 | 190,791 | ||||||||||||||||
Securities held to maturity | 42,325 | — | 44,498 | — | 44,498 | ||||||||||||||||
Federal Home Loan Bank stock | 7,323 | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | 8,926 | — | 8,926 | — | 8,926 | ||||||||||||||||
Loans, net | 605,635 | — | — | 615,914 | 615,914 | ||||||||||||||||
Accrued interest receivable | 3,503 | — | 1,389 | 2,114 | 3,503 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | $ | 926,841 | $ | 114,910 | $ | 804,508 | $ | — | $ | 919,418 | |||||||||||
Securities sold under agreements to repurchase | 1,341 | — | 1,341 | — | 1,341 | ||||||||||||||||
Federal Home Loan Bank advances | 15,752 | — | 15,758 | — | 15,758 | ||||||||||||||||
Subordinated capital notes | 4,950 | — | — | 4,765 | 4,765 | ||||||||||||||||
Junior subordinated debentures | 25,000 | — | — | 14,214 | 14,214 | ||||||||||||||||
Accrued interest payable | 2,858 | — | 751 | 2,107 | 2,858 | ||||||||||||||||
The methods and assumptions, not previously presented, used to estimate fair values are described as follows: | |||||||||||||||||||||
(a) Cash and Cash Equivalents | |||||||||||||||||||||
The carrying amounts of cash and short-term instruments approximate fair values and are classified as either Level 1 or Level 2. Non-interest bearing deposits are Level 1 whereas interest bearing due from bank accounts and fed funds sold are Level 2. | |||||||||||||||||||||
(b) FHLB Stock | |||||||||||||||||||||
It is not practical to determine the fair value of FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||||||
(c) Loans, Net | |||||||||||||||||||||
Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||||||
(d) Loans Held for Sale | |||||||||||||||||||||
The fair value of loans held for sale is estimated based upon binding contracts and and/or quotes from third party investors resulting in a Level 2 classification. | |||||||||||||||||||||
(e) Deposits | |||||||||||||||||||||
The fair values disclosed for non-interest bearing deposits are, by definition, equal to the amount payable on demand at the reporting date resulting in a Level 1 classification. The carrying amounts of variable rate interest bearing deposits approximate their fair values at the reporting date resulting in a Level 2 classification. Fair values for fixed rate interest bearing deposits are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | |||||||||||||||||||||
(f) Securities Sold Under Agreements to Repurchase | |||||||||||||||||||||
The carrying amounts of borrowings under repurchase agreements approximate their fair values resulting in a Level 2 classification. | |||||||||||||||||||||
(g) Other Borrowings | |||||||||||||||||||||
The fair values of the Company’s FHLB advances are estimated using discounted cash flow analyses based on the current borrowing rates resulting in a Level 2 classification. | |||||||||||||||||||||
The fair values of the Company’s subordinated capital notes and junior subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. | |||||||||||||||||||||
(h) Accrued Interest Receivable/Payable | |||||||||||||||||||||
The carrying amounts of accrued interest approximate fair value resulting in a Level 2 or Level 3 classification based on the level of the asset or liability with which the accrual is associated. |
Income_Taxes
Income Taxes | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income Taxes | Note 9 – Income Taxes | ||||||||
Deferred tax assets and liabilities were due to the following as of: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Deferred tax assets: | |||||||||
Net operating loss carry-forward | $ | 32,067 | $ | 32,111 | |||||
Allowance for loan losses | 6,509 | 6,777 | |||||||
Other real estate owned write-down | 9,899 | 10,000 | |||||||
Alternative minimum tax credit carry-forward | 692 | 692 | |||||||
Net assets from acquisitions | 670 | 668 | |||||||
Other than temporary impairment on securities | 46 | 46 | |||||||
New market tax credit carry-forward | 208 | 208 | |||||||
Nonaccrual loan interest | 847 | 958 | |||||||
Amortization of non-compete agreements | 13 | 14 | |||||||
Other | 1,873 | 1,371 | |||||||
52,824 | 52,845 | ||||||||
Deferred tax liabilities: | |||||||||
FHLB stock dividends | 928 | 928 | |||||||
Fixed assets | 248 | 264 | |||||||
Originated mortgage servicing rights | 48 | 53 | |||||||
Net unrealized gain on securities | 530 | 579 | |||||||
Other | 668 | 373 | |||||||
2,422 | 2,197 | ||||||||
Net deferred tax assets before valuation allowance | 50,402 | 50,648 | |||||||
Valuation allowance | (50,402 | ) | (50,648 | ) | |||||
Net deferred tax asset | $ | — | $ | — | |||||
Our estimate of the realizability of the deferred tax asset is dependent on our estimate of projected future levels of taxable income. In analyzing future taxable income levels, we considered all evidence currently available, both positive and negative. Based on our analysis, we established a valuation allowance for all deferred tax assets as of December 31, 2011. The valuation allowance remains in effect as of March 31, 2015. | |||||||||
The calculation for the income tax provision or benefit generally does not consider the tax effects of changes in other comprehensive income, or OCI, which is a component of stockholders’ equity on the balance sheet. However, an exception is provided in certain circumstances, such as when there is a full valuation allowance against net deferred tax assets, there is a loss from continuing operations and there is income in other components of the financial statements. In such a case, pre-tax income from other categories, such as changes in OCI, must be considered in determining a tax benefit to be allocated to the loss from continuing operations. For the year ended December 31, 2014, this resulted in $1.6 million of income tax benefit allocated to continuing operations. The December 31, 2014 tax benefit is entirely due to gains in other comprehensive income that are presented in current operations in accordance with applicable accounting standards. No tax benefit or expense was recognized for the three months ended March 31, 2015 or the three months ended March 31, 2014. | |||||||||
The Company does not have any beginning and ending unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. There were no interest and penalties recorded in the income statement or accrued for the three months ended March 31, 2015 or March 31, 2014 related to unrecognized tax benefits. | |||||||||
The Company and its subsidiaries are subject to U.S. federal income tax and the Company is subject to income tax in the Commonwealth of Kentucky. The Company is no longer subject to examination by taxing authorities for years before 2011. |
Stock_Plans_and_Stock_Based_Co
Stock Plans and Stock Based Compensation | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stock Plans and Stock Based Compensation | Note 10 – Stock Plans and Stock Based Compensation | ||||||||||||||||
The Company has two stock incentive plans. The Porter Bancorp, Inc. 2006 Stock Incentive Plan permits the issuance of up to 1,563,050 shares of the Company’s common stock upon the grant of stock awards. As of March 31, 2015, the Company had issued and outstanding 1,056,243 unvested shares net of forfeitures and vesting under the stock incentive plan. Shares issued under the plan vest annually on the anniversary date of the grant over three to ten years. The Company has 271,890 shares remaining available for issue under the plan. | |||||||||||||||||
The Porter Bancorp, Inc. 2006 Non-Employee Directors Stock Ownership Incentive Plan permits the issuance of up to 700,000 shares of the Company’s voting common stock upon the grant of stock awards. The Plan awards restricted shares having a fair market value of $25,000 annually to each non-employee director. Unvested shares are granted automatically under the plan at fair market value on the date of grant and vest on December 31 in the year of grant. To date, the Company has issued and outstanding 5,052 unvested shares, net of forfeitures and vesting, to non-employee directors. At March 31, 2015, 301,512 shares remain available for issuance under this plan. | |||||||||||||||||
Upon the sale of our Series A preferred shares by the U.S. Treasury at a discount to face amount on December 4, 2014, restricted shares previously granted to senior executives became subject to permanent transfer restrictions. On March 25, 2015, the Compensation Committee modified the equity compensation arrangements with our four named executive officers to restore the incentive that was intended by including equity grants in their employment agreements. The Compensation Committee and the named executive officers mutually agreed to terminate 538,479 restricted shares that were subject to permanent restrictions on transfer. We then awarded 800,000 new service-based restricted shares to our named executive officers. The new awards are accounted for as a modification and vest over four years, with one-third of the shares vesting on each of the second, third and fourth anniversaries of the date of grant. The modification results in incremental compensation expense of approximately $233,000 and will be amortized in accordance with the vesting schedule. | |||||||||||||||||
The fair value of the 2015 unvested shares issued to employees was $712,000, or $0.89 per weighted-average share. The Company recorded $49,000 and $133,000 of stock-based compensation during the first three months of 2015 and 2014, respectively, to salaries and employee benefits. We expect substantially all of the unvested shares outstanding at the end of the period will vest according to the vesting schedule. No deferred tax benefit was recognized related to this expense for either period. | |||||||||||||||||
The following table summarizes unvested share activity as of and for the periods indicated for the Stock Incentive Plan: | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant | Grant | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding, beginning | 770,440 | $ | 1.33 | 787,426 | $ | 1.56 | |||||||||||
Granted | 800,000 | 0.89 | 122,220 | 0.93 | |||||||||||||
Vested | (63,063 | ) | 2 | (133,227 | ) | 2.2 | |||||||||||
Terminated | (450,994 | ) | 1.25 | — | — | ||||||||||||
Forfeited | (140 | ) | 22.03 | (5,979 | ) | 4.21 | |||||||||||
Outstanding, ending | 1,056,243 | $ | 0.99 | 770,440 | $ | 1.33 | |||||||||||
The following table summarizes unvested share activity as of and for the periods indicated for the Non-Employee Directors Stock Ownership Incentive Plan: | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant | Grant | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding, beginning | 5,052 | $ | 1.65 | 47,428 | $ | 1.69 | |||||||||||
Granted | — | — | 166,668 | 0.9 | |||||||||||||
Vested | — | — | (154,222 | ) | 0.98 | ||||||||||||
Forfeited | — | — | (54,822 | ) | 1.29 | ||||||||||||
Outstanding, ending | 5,052 | $ | 1.65 | 5,052 | $ | 1.65 | |||||||||||
Unrecognized stock based compensation expense related to unvested shares for the remainder of 2015 and beyond is estimated as follows (in thousands): | |||||||||||||||||
April 2015 – December 2015 | $ | 282 | |||||||||||||||
2016 | 263 | ||||||||||||||||
2017 | 158 | ||||||||||||||||
2018 | 149 | ||||||||||||||||
2019 & thereafter | — |
Earnings_Loss_per_Share
Earnings (Loss) per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings (Loss) per Share | Note 11 – Earnings (Loss) per Share | ||||||||
The factors used in the basic and diluted earnings per share computations follow: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, except share and | |||||||||
per share data) | |||||||||
Net income (loss) | $ | 594 | $ | (287 | ) | ||||
Less: | |||||||||
Preferred stock dividends | — | 786 | |||||||
Earnings (loss) allocated to unvested shares | 21 | (70 | ) | ||||||
Earnings (loss) attributable to participating preferred shares | 164 | (27 | ) | ||||||
Net income (loss) attributable to common shareholders, basic and diluted | $ | 409 | $ | (976 | ) | ||||
Basic | |||||||||
Weighted average common shares including unvested common shares outstanding | 25,419,523 | 13,210,930 | |||||||
Less: | |||||||||
Weighted average unvested common shares | 918,393 | 856,723 | |||||||
Weighted average Series B preferred shares | 2,702,400 | — | |||||||
Weighted average Series C preferred shares | — | 332,894 | |||||||
Weighted average Series D preferred shares | 4,305,333 | — | |||||||
Weighted average common shares outstanding | 17,493,397 | 12,021,313 | |||||||
Basic income (loss) per common share | $ | 0.02 | $ | (0.08 | ) | ||||
Diluted | |||||||||
Add: Dilutive effects of assumed exercises of common stock warrants | — | — | |||||||
Weighted average common shares and potential common shares | 17,493,397 | 12,021,313 | |||||||
Diluted loss per common share | $ | 0.02 | $ | (0.08 | ) | ||||
The Company had no outstanding stock options at March 31, 2015 or 2014. A warrant for the purchase of 330,561 shares of the Company’s common stock at an exercise price of $15.88 was outstanding at March 31, 2015 and 2014 but was not included in the diluted EPS computation as inclusion would have been anti-dilutive. Additionally, warrants for the purchase of 650,544 and 1,449,459 shares of non-voting common stock at an exercise price of $10.95 per share were outstanding at March 31, 2015 and 2014, respectively, but were not included in the diluted EPS computation as inclusion would have been anti-dilutive. |
Capital_Requirements_and_Restr
Capital Requirements and Restrictions on Retained Earnings | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Capital Requirements and Restrictions on Retained Earnings | Note 12 – Capital Requirements and Restrictions on Retained Earnings | ||||||||||||||||
Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. | |||||||||||||||||
The Basel III regulatory capital reforms became effective for the Company and Bank on January 1, 2015, and include new minimum risk-based capital and leverage ratios. These rules refine the definition of what constitutes “capital” for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. The final rules allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company and the Bank opted out of this requirement. | |||||||||||||||||
On June 24, 2011, the Bank entered into a Consent Order with the FDIC and the Kentucky Department of Financial Institutions. The consent order required the Bank to complete a management study, to maintain Tier 1 capital as a percentage of total assets of at least 9% and a total risk based capital ratio of at least 12%, to develop a plan to reduce our risk position in each substandard asset in excess of $1 million, to complete board review of the adequacy of the allowance for loan losses prior to quarterly Call Report submissions, to adopt procedures which strengthen the loan review function and ensure timely and accurate grading of credit relationships, to charge-off all assets classified as loss, to develop a plan to reduce concentrations of construction and development loans to not more than 75% of total risk based capital and non-owner occupied commercial real estate loans to not more than 250% of total risk based capital, to limit asset growth to no more than 5% in any quarter or 10% annually, not to extend additional credit to any borrower classified substandard unless the board of directors first adopts a detailed statement why the extension is in the best interest of the bank, and not to declare or pay any dividend without the prior consent of our regulators. We are also restricted from accepting, renewing, or rolling-over brokered deposits without the prior receipt of a waiver on a case-by-case basis from our regulators. | |||||||||||||||||
On September 21, 2011, we entered into a Written Agreement with the Federal Reserve Bank of St. Louis in which we made formal commitments to use our financial and management resources to serve as a source of strength for the Bank and to assist the Bank in addressing weaknesses identified by the FDIC and the KDFI, to pay no dividends without prior written approval, to pay no interest or principal on subordinated debentures or trust preferred securities without prior written approval, and to submit an acceptable plan to maintain sufficient capital. | |||||||||||||||||
In October 2012, the Bank entered into a revised Consent Order with the FDIC and KDFI again agreeing to maintain a minimum Tier 1 leverage ratio of 9% and a minimum total risk based capital ratio of 12%. The Bank cannot be considered well-capitalized while under the Consent Order. The Bank also agreed that if it should be unable to reach the required capital levels, and if directed in writing by the FDIC, then the Bank would within 30 days develop, adopt and implement a written plan to sell or merge itself into another federally insured financial institution or otherwise immediately obtain a capital investment into the Bank sufficient to fully meet the capital requirements. We have not been directed by the FDIC to implement such a plan. | |||||||||||||||||
The revised Consent Order also requires the Bank to continue to adhere to the plans implemented in response to the June 2011 Consent Order, and includes the substantive provisions of the June 2011 Consent Order. As of March 31, 2015, the capital ratios required by the Consent Order were not met. | |||||||||||||||||
The following table shows the ratios and amounts of Common Equity Tier 1, Tier 1 capital and total capital to risk-adjusted assets and the leverage ratios for Porter Bancorp, Inc. and the Bank at the dates indicated (dollars in thousands): | |||||||||||||||||
Actual | For Capital Adequacy Purposes | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
As of March 31, 2015: | |||||||||||||||||
Total risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | $ | 70,949 | 10.05 | % | $ | 56,459 | 8 | % | |||||||||
Bank | 72,335 | 10.25 | 56,435 | 8 | |||||||||||||
Total common equity Tier I risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 33,232 | 4.71 | 31,758 | 4.5 | |||||||||||||
Bank | 58,672 | 8.32 | 31,745 | 4.5 | |||||||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 41,513 | 5.88 | 42,344 | 6 | |||||||||||||
Bank | 58,672 | 8.32 | 42,326 | 6 | |||||||||||||
Tier I capital (to average assets) | |||||||||||||||||
Consolidated | 41,513 | 4.13 | 40,209 | 4 | |||||||||||||
Bank | 58,672 | 5.84 | 40,212 | 4 | |||||||||||||
Actual | For Capital Adequacy Purposes | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
As of December 31, 2014: | |||||||||||||||||
Total risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | $ | 73,595 | 10.61 | % | $ | 55,483 | 8 | % | |||||||||
Bank | 73,174 | 10.57 | 55,383 | 8 | |||||||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 46,459 | 6.7 | 27,741 | 4 | |||||||||||||
Bank | 59,438 | 8.59 | 27,691 | 4 | |||||||||||||
Tier I capital (to average assets) | |||||||||||||||||
Consolidated | 46,459 | 4.51 | 41,193 | 4 | |||||||||||||
Bank | 59,438 | 5.78 | 41,143 | 4 | |||||||||||||
The Consent Order requires the Bank to achieve the minimum capital ratios presented below: | |||||||||||||||||
Actual as of March 31, 2015 | Ratio Required by Consent Order | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
Total capital to risk-weighted assets | $ | 72,335 | 10.25 | % | $ | 84,652 | 12 | % | |||||||||
Tier I capital to average assets | 58,672 | 5.84 | 90,476 | 9 | |||||||||||||
At March 31, 2015, the Bank’s Tier 1 leverage ratio was 5.84%, and its total risk-based capital ratio was 10.25%, which are below the 9% and 12% minimum capital ratios required by the Consent Order. Bank regulatory agencies can exercise discretion when an institution does not meet the terms of a Consent Order. Based on individual circumstances, the agencies may issue mandatory directives, impose monetary penalties, initiate changes in management, or take more serious adverse actions. | |||||||||||||||||
Kentucky banking laws limit the amount of dividends that may be paid to a holding company by its subsidiary banks without prior approval. These laws limit the amount of dividends that may be paid in any calendar year to current year’s net income, as defined in the laws, combined with the retained net income of the preceding two years, less any dividends declared during those periods. PBI Bank has agreed with its primary regulators to obtain their written consent prior to declaring or paying any future dividends. As a practical matter, PBI Bank cannot pay dividends to Porter Bancorp for the foreseeable future. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Contingencies | Note 13 – Contingencies |
We are defendants in various legal proceedings. Litigation is subject to inherent uncertainties and unfavorable rulings could occur. We record contingent liabilities resulting from claims against us when a loss is assessed to be probable and the amount of the loss is reasonably estimable. Assessing probability of loss and estimating probable losses requires analysis of multiple factors, including in some cases judgments about the potential actions of third party claimants and courts. Recorded contingent liabilities are based on the best information available and actual losses in any future period are inherently uncertain. Currently, we have accrued approximately $2.2 million related to ongoing litigation matters for which we believe liability is probable and reasonably estimable. Accruals are not made in cases where liability is not probable or the amount cannot be reasonably estimated. We disclose legal matters when we believe liability is reasonably possible and may be material to our consolidated financial statements. | |
Signature Point Litigation. On June 18, 2010, three real estate development companies filed suit in Kentucky state court against the Bank and Managed Assets of Kentucky (“MAKY”). Signature Point Condominiums LLC, et al. v. PBI Bank, et al., Jefferson Circuit Court, Case No 10-CI-04295. On July 16, 2013, a jury in Louisville, Kentucky returned a verdict against the Bank, awarding the plaintiffs compensatory damages of $1,515,000 and punitive damages of $5,500,000. The case arose from a settlement in which the Bank agreed to release the plaintiffs and guarantors from obligations of more than $26 million related to a real estate project in Louisville. The plaintiffs were granted a right of first refusal to repurchase a tract of land within the project. In exchange, the plaintiffs conveyed the real estate securing the loans to the Bank. After plaintiffs declined to exercise their right of first refusal, the Bank sold the tract to the third party. Plaintiffs alleged the Bank had knowledge of the third party offer before the conveyance of the land by the Plaintiffs to the Bank. Plaintiffs asserted claims of fraud, breach of fiduciary duty, breach of the duty of good faith and fair dealing, tortious interference with prospective business advantage and conspiracy to commit fraud, negligence, and conspiracy against the Bank. | |
After conferring with its legal advisors, the Bank believes the findings and damages are excessive and contrary to law, and that it has meritorious grounds on which it has moved to appeal. The Bank’s Notice of Appeal was filed on October 25, 2013. After a number of procedural issues were resolved, the Bank filed its appellate brief on September 30, 2014. Appellee’s brief was filed on December 1, 2014. We will continue to defend this matter vigorously. Although we have made provisions in our consolidated financial statements for this self-insured matter, the amount of our legal accrual is less than the original amount of the damages awarded, plus accrued interest. The ultimate outcome of this matter could have a material adverse effect on our financial condition, results of operations or cash flows. | |
SBAV LP Litigation. On December 17, 2012, SBAV LP filed a lawsuit against the Company, the Bank, J. Chester Porter and Maria L. Bouvette in New York state court. The proceeding was removed to New York federal district court on January 16, 2013, and on February 27, 2013, SBAV LP filed an Amended Complaint. On July 10, 2013, the New York federal district court granted the defendants’ motion to transfer the case to federal district court in Kentucky. SBAV LP v. Porter Bancorp, et. al., Civ. Action 3:13-CV-710 (W.D.KY). The Amended Complaint alleges a violation of the Kentucky Securities Act and negligent misrepresentation against all named defendants, and breach of contract against Porter Bancorp alone. The plaintiff seeks damages in an amount in excess of $4,500,000, or the difference between the $5,000,016 purchase price and the value of the securities when sold by the plaintiff, plus interest at the applicable statutory rate, costs and reasonable attorneys’ fees. On September 13, 2013, defendants filed a motion to dismiss all claims in the complaint for pleading failures and for failure to state a claim upon which relief may be granted. On March 25, 2014, the judge ruled that SBAV had failed to state a claim against the Bank and dismissed the Bank from the case. The claims against the Company, the Estate of J. Chester Porter and Ms. Bouvette remain and have proceeded to discovery. On April 21, 2014, the Company filed a third-party complaint for contribution against SBAV’s investment adviser, the Clinton Group, Inc. On September 16, 2014, the Court dismissed the Third-Party Complaint, but held that, if proven, Clinton’s errors in conducting due diligence may lessen any recovery available to SBAV. Discovery is continuing. At the joint request of the parties, the Court vacated the previous schedule and trial date of October 20, 2015 in order to provide additional time for discovery and motion practice in the case. We dispute the material factual allegations made in SBAV’s complaint and intend to defend against SBAV’s claims vigorously. | |
Miller’s Health System Inc. Employee Stock Ownership Plan. On December 26, 2013, the United States Department of Labor (“DOL”) filed a lawsuit against the Bank in U.S. District Court for the Northern District of Indiana. Thomas E. Perez, Secretary of the United States Department of Labor v. PBI Bank, Inc. (Civ. Action 3:13-CV-1400-PPS). The complaint alleges that in 2007 the Bank, in the capacity of trustee for the Miller’s Health System’s Inc. Employee Stock Ownership Plan, authorized the alleged imprudent and disloyal purchase of the stock of Miller’s Health Systems, Inc. (“Miller’s Health”) in 2007 for $40 million, a price allegedly far in excess of the stock’s fair market value. The suit also alleges, among other things, that the Bank approved 100% seller financing for the transaction at an excessive rate of interest. On March 31, 2014, the Bank filed its answer, disputing the material factual allegations of the complaint. On April 10, 2014, the Bank filed a third-party complaint against Miller’s Health seeking to enforce its indemnity rights, as well as third party claims for contribution against named directors and officers of Miller’s Health. On March 12, 2015, the parties agreed to settle the litigation, subject to the execution of a written settlement agreement. The Bank has agreed to a settlement payment, which has either been previously reserved for or will be paid from insurance proceeds. We do not anticipate the settlement of this litigation will have a material adverse effect on the Company’s financial condition or operating results. | |
AIT Laboratories Employee Stock Ownership Plan. On August 29, 2014, the United States Department of Labor (“DOL”) filed a lawsuit against the Bank and Michael A. Evans in the U.S. District Court for the Southern District of Indiana. Thomas E. Perez, Secretary of the United States Department of Labor v. PBI Bank, Inc. and Michael A. Evans (Case No. 1:14-CV-01429-SEB-MJD). The complaint alleges that in 2009, the Bank, in the capacity of trustee for the AIT Laboratories Employee Stock Ownership Plan, authorized the alleged imprudent and disloyal purchase of the stock of AIT Holdings, Inc. in 2009 for $90 million, a price allegedly far in excess of the stock’s fair market value. The Bank’s responsive pleading was filed on November 4, 2014, disputing the material factual allegations that have been made by the DOL. Discovery is in the early stages. A trial date has been set for November 7, 2016. We intend to defend against DOL’s claims vigorously. | |
United States Department of Justice Investigation. On October 17, 2014, the United States Department of Justice (the “DOJ”) notified the Bank that the Bank was the subject of an investigation into possible violations of federal laws, including, among other things, possible violations related to false bank entries, bank fraud and securities fraud. The investigation concerns allegations that Bank personnel engaged in practices intended to delay or avoid disclosure of the Bank’s asset quality at the time of and following the United States Treasury’s purchase of preferred stock from the Company in November 2008. The Bank will respond to and cooperate with any requests for information from DOJ. At this time the investigation is ongoing, and DOJ has made no determination whether to pursue any action in the matter. |
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Basis of Presentation | Basis of Presentation – The consolidated financial statements include Porter Bancorp, Inc. (Company) and its subsidiary, PBI Bank (Bank). The Company owns a 100% interest in the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation. |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire year. A description of other significant accounting policies is presented in the notes to the Consolidated Financial Statements for the year ended December 31, 2014 included in the Company’s Annual Report on Form 10-K. | |
Use of Estimates | Use of Estimates – To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. |
Reclassifications | Reclassifications – Some items in the prior year financial statements were reclassified to conform to the current presentation. The reclassifications did not impact net income (loss) or stockholders’ equity. |
Securities_Tables
Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value of Available for Sale Securities and Related Gross Unrealized Gains and Losses | The 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: | ||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 30,073 | $ | 235 | $ | (283 | ) | $ | 30,025 | ||||||||||||||||
Agency mortgage-backed: residential | 104,912 | 2,136 | (92 | ) | 106,956 | ||||||||||||||||||||
State and municipal | 7,118 | 408 | — | 7,526 | |||||||||||||||||||||
Corporate bonds | 12,052 | 258 | (192 | ) | 12,118 | ||||||||||||||||||||
Other debt securities | 572 | 93 | — | 665 | |||||||||||||||||||||
Total available for sale | $ | 154,727 | $ | 3,130 | $ | (567 | ) | $ | 157,290 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
State and municipal | $ | 42,263 | $ | 2,632 | $ | — | $ | 44,895 | |||||||||||||||||
Total held to maturity | $ | 42,263 | $ | 2,632 | $ | — | $ | 44,895 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 35,725 | $ | 308 | $ | (590 | ) | $ | 35,443 | ||||||||||||||||
Agency mortgage-backed: residential | 121,985 | 1,970 | (357 | ) | 123,598 | ||||||||||||||||||||
State and municipal | 11,690 | 722 | (8 | ) | 12,404 | ||||||||||||||||||||
Corporate bonds | 18,087 | 853 | (252 | ) | 18,688 | ||||||||||||||||||||
Other debt securities | 572 | 86 | — | 658 | |||||||||||||||||||||
Total available for sale | $ | 188,059 | $ | 3,939 | $ | (1,207 | ) | $ | 190,791 | ||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
State and municipal | $ | 42,325 | $ | 2,173 | $ | — | $ | 44,498 | |||||||||||||||||
Total held to maturity | $ | 42,325 | $ | 2,173 | $ | — | $ | 44,498 | |||||||||||||||||
Sales and Calls of Available for Sale Securities | Sales and calls of available for sale securities were as follows: | ||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Proceeds | $ | 34,138 | $ | 329 | |||||||||||||||||||||
Gross gains | 1,551 | 44 | |||||||||||||||||||||||
Gross losses | 54 | — | |||||||||||||||||||||||
Amortized Cost and Fair Value of Debt Investment Securities Portfolio by Contractual Maturity | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Maturity | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
Within one year | $ | 15,002 | $ | 15,102 | |||||||||||||||||||||
One to five years | 7,466 | 7,802 | |||||||||||||||||||||||
Five to ten years | 26,775 | 26,765 | |||||||||||||||||||||||
Beyond ten years | 572 | 665 | |||||||||||||||||||||||
Agency mortgage-backed: residential | 104,912 | 106,956 | |||||||||||||||||||||||
Total | $ | 154,727 | $ | 157,290 | |||||||||||||||||||||
Held to maturity | |||||||||||||||||||||||||
One to five years | $ | 10,840 | $ | 11,377 | |||||||||||||||||||||
Five to ten years | 27,867 | 29,641 | |||||||||||||||||||||||
Beyond ten years | 3,556 | 3,877 | |||||||||||||||||||||||
Total | $ | 42,263 | $ | 44,895 | |||||||||||||||||||||
Securities with Unrealized Losses | Securities with unrealized losses at March 31, 2015 and December 31, 2014, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position, are as follows: | ||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Description of Securities | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Loss | Value | Loss | Value | Loss | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 2,576 | $ | (5 | ) | $ | 15,550 | $ | (278 | ) | $ | 18,126 | $ | (283 | ) | ||||||||||
Agency mortgage-backed: residential | — | — | 4,190 | (92 | ) | 4,190 | (92 | ) | |||||||||||||||||
Corporate bonds | 2,299 | (145 | ) | 1,750 | (47 | ) | 4,049 | (192 | ) | ||||||||||||||||
Total temporarily impaired | $ | 4,875 | $ | (150 | ) | $ | 21,490 | $ | (417 | ) | $ | 26,365 | $ | (567 | ) | ||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Available for sale | |||||||||||||||||||||||||
U.S. Government and federal agency | $ | 7,778 | $ | (60 | ) | $ | 18,681 | $ | (530 | ) | $ | 26,459 | $ | (590 | ) | ||||||||||
Agency mortgage-backed: residential | 6,960 | (12 | ) | 17,938 | (345 | ) | 24,898 | (357 | ) | ||||||||||||||||
State and municipal | 569 | (8 | ) | — | — | 569 | (8 | ) | |||||||||||||||||
Corporate bonds | 4,884 | (119 | ) | 1,660 | (133 | ) | 6,544 | (252 | ) | ||||||||||||||||
Total temporarily impaired | $ | 20,191 | $ | (199 | ) | $ | 38,279 | $ | (1,008 | ) | $ | 58,470 | $ | (1,207 | ) | ||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Loans | Loans were as follows: | ||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 76,954 | $ | 60,936 | |||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 36,793 | 33,173 | |||||||||||||||||||||||||||
Farmland | 77,948 | 77,419 | |||||||||||||||||||||||||||
Nonfarm nonresidential | 159,276 | 175,452 | |||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 43,150 | 41,891 | |||||||||||||||||||||||||||
1-4 Family | 197,583 | 197,278 | |||||||||||||||||||||||||||
Consumer | 10,831 | 11,347 | |||||||||||||||||||||||||||
Agriculture | 28,673 | 26,966 | |||||||||||||||||||||||||||
Other | 1,220 | 537 | |||||||||||||||||||||||||||
Subtotal | 632,428 | 624,999 | |||||||||||||||||||||||||||
Less: Allowance for loan losses | (18,597 | ) | (19,364 | ) | |||||||||||||||||||||||||
Loans, net | $ | 613,831 | $ | 605,635 | |||||||||||||||||||||||||
Activity in Allowance for Loan Losses by Portfolio Segment | The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,046 | $ | 10,931 | $ | 5,787 | $ | 274 | $ | 319 | $ | 7 | $ | 19,364 | |||||||||||||||
Provision for loan losses | 269 | 7 | (384 | ) | 12 | 104 | (8 | ) | — | ||||||||||||||||||||
Loans charged off | (375 | ) | (369 | ) | (482 | ) | (68 | ) | (33 | ) | — | (1,327 | ) | ||||||||||||||||
Recoveries | 106 | 111 | 300 | 26 | 1 | 16 | 560 | ||||||||||||||||||||||
Ending balance | $ | 2,046 | $ | 10,680 | $ | 5,221 | $ | 244 | $ | 391 | $ | 15 | $ | 18,597 | |||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,221 | $ | 16,414 | $ | 7,762 | $ | 416 | $ | 305 | $ | 6 | $ | 28,124 | |||||||||||||||
Provision for loan losses | 445 | (1,127 | ) | 534 | 19 | 113 | 16 | — | |||||||||||||||||||||
Loans charged off | (146 | ) | (1,474 | ) | (1,308 | ) | (128 | ) | (9 | ) | (17 | ) | (3,082 | ) | |||||||||||||||
Recoveries | 88 | 116 | 83 | 76 | 6 | 4 | 373 | ||||||||||||||||||||||
Ending balance | $ | 3,608 | $ | 13,929 | $ | 7,071 | $ | 383 | $ | 415 | $ | 9 | $ | 25,415 | |||||||||||||||
Balance in Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of March 31, 2015: | ||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2 | $ | 51 | $ | 200 | $ | 1 | $ | — | $ | — | $ | 254 | |||||||||||||||
Collectively evaluated for impairment | 2,044 | 10,629 | 5,021 | 243 | 391 | 15 | 18,343 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,046 | $ | 10,680 | $ | 5,221 | $ | 244 | $ | 391 | $ | 15 | $ | 18,597 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,677 | $ | 32,731 | $ | 20,504 | $ | 32 | $ | 232 | $ | 123 | $ | 55,299 | |||||||||||||||
Loans collectively evaluated for impairment | 75,277 | 241,286 | 220,229 | 10,799 | 28,441 | 1,097 | 577,129 | ||||||||||||||||||||||
Total ending loans balance | $ | 76,954 | $ | 274,017 | $ | 240,733 | $ | 10,831 | $ | 28,673 | $ | 1,220 | $ | 632,428 | |||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method as of December 31, 2014: | |||||||||||||||||||||||||||||
Commercial | Commercial | Residential | Consumer | Agriculture | Other | Total | |||||||||||||||||||||||
Real Estate | Real Estate | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 33 | $ | 491 | $ | 227 | $ | 1 | $ | — | $ | — | $ | 752 | |||||||||||||||
Collectively evaluated for impairment | 2,013 | 10,440 | 5,560 | 273 | 319 | 7 | 18,612 | ||||||||||||||||||||||
Total ending allowance balance | $ | 2,046 | $ | 10,931 | $ | 5,787 | $ | 274 | $ | 319 | $ | 7 | $ | 19,364 | |||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 2,022 | $ | 48,141 | $ | 21,384 | $ | 61 | $ | 263 | $ | 122 | $ | 71,993 | |||||||||||||||
Loans collectively evaluated for impairment | 58,914 | 237,903 | 217,785 | 11,286 | 26,703 | 415 | 553,006 | ||||||||||||||||||||||
Total ending loans balance | $ | 60,936 | $ | 286,044 | $ | 239,169 | $ | 11,347 | $ | 26,966 | $ | 537 | $ | 624,999 | |||||||||||||||
Loans Individually Evaluated for Impairment by Class of Loans | The following tables present information related to loans individually evaluated for impairment by class of loans as of March 31, 2015 and December 31, 2014 and for the three months ended March 31, 2015 and 2014: | ||||||||||||||||||||||||||||
As of March 31, 2015 | Three Months Ended March 31, 2015 | ||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Interest | Cash | ||||||||||||||||||||||||
Principal | Investment | For Loan | Recorded | Income | Basis | ||||||||||||||||||||||||
Balance | Losses | Investment | Recognized | Income | |||||||||||||||||||||||||
Allocated | Recognized | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | $ | 2,109 | $ | 1,664 | $ | — | $ | 1,821 | $ | — | $ | — | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | 4,514 | 3,938 | — | 4,019 | 4 | 1 | |||||||||||||||||||||||
Farmland | 7,064 | 4,870 | — | 4,804 | 23 | 23 | |||||||||||||||||||||||
Nonfarm nonresidential | 34,805 | 23,421 | — | 22,920 | 65 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | — | — | — | 40 | — | — | |||||||||||||||||||||||
1-4 Family | 16,813 | 14,570 | — | 14,918 | 134 | 47 | |||||||||||||||||||||||
Consumer | 90 | 24 | — | 27 | — | — | |||||||||||||||||||||||
Agriculture | 273 | 232 | — | 247 | — | — | |||||||||||||||||||||||
Other | 368 | 123 | — | 123 | 2 | 2 | |||||||||||||||||||||||
Subtotal | 66,036 | 48,842 | — | 48,919 | 228 | 73 | |||||||||||||||||||||||
With An Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | 13 | 13 | 2 | 29 | — | — | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | — | — | — | |||||||||||||||||||||||
Farmland | — | — | — | 157 | — | — | |||||||||||||||||||||||
Nonfarm nonresidential | 586 | 502 | 51 | 8,535 | 6 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 4,250 | 4,250 | 84 | 4,258 | 47 | — | |||||||||||||||||||||||
1-4 Family | 1,684 | 1,684 | 116 | 1,727 | 25 | — | |||||||||||||||||||||||
Consumer | 8 | 8 | 1 | 20 | — | — | |||||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||
Subtotal | 6,541 | 6,457 | 254 | 14,726 | 78 | — | |||||||||||||||||||||||
Total | $ | 72,577 | $ | 55,299 | $ | 254 | $ | 63,645 | $ | 306 | $ | 73 | |||||||||||||||||
As of December 31, 2014 | Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||
Unpaid | Recorded | Allowance | Average | Interest | Cash | ||||||||||||||||||||||||
Principal | Investment | For Loan | Recorded | Income | Basis | ||||||||||||||||||||||||
Balance | Losses | Investment | Recognized | Income | |||||||||||||||||||||||||
Allocated | Recognized | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
With No Related Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | $ | 2,546 | $ | 1,978 | $ | — | $ | 2,679 | $ | 1 | $ | 1 | |||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | 4,714 | 4,100 | — | 7,433 | 3 | — | |||||||||||||||||||||||
Farmland | 6,636 | 4,739 | — | 7,322 | 17 | 17 | |||||||||||||||||||||||
Other | 34,437 | 22,418 | — | 58,027 | 182 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 81 | 81 | — | 4,036 | — | — | |||||||||||||||||||||||
1-4 Family | 18,496 | 15,266 | — | 29,053 | 286 | 169 | |||||||||||||||||||||||
Consumer | 93 | 29 | — | 4 | — | — | |||||||||||||||||||||||
Agriculture | 276 | 263 | — | 310 | 3 | 3 | |||||||||||||||||||||||
Other | 367 | 122 | — | 408 | 7 | 7 | |||||||||||||||||||||||
Subtotal | 67,646 | 48,996 | — | 109,272 | 499 | 197 | |||||||||||||||||||||||
With An Allowance Recorded: | |||||||||||||||||||||||||||||
Commercial | 145 | 44 | 33 | 2,218 | 18 | — | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 1,117 | 6 | — | |||||||||||||||||||||||
Farmland | 658 | 315 | 38 | 124 | — | — | |||||||||||||||||||||||
Other | 19,454 | 16,569 | 453 | 16,564 | 109 | — | |||||||||||||||||||||||
Residential real estate: | |||||||||||||||||||||||||||||
Multi-family | 4,266 | 4,266 | 91 | 4,659 | 37 | — | |||||||||||||||||||||||
1-4 Family | 1,791 | 1,771 | 136 | 2,001 | 19 | — | |||||||||||||||||||||||
Consumer | 32 | 32 | 1 | 65 | 1 | — | |||||||||||||||||||||||
Agriculture | — | — | — | — | — | — | |||||||||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||||||||
Subtotal | 26,346 | 22,997 | 752 | 26,748 | 190 | — | |||||||||||||||||||||||
Total | $ | 93,992 | $ | 71,993 | $ | 752 | $ | 136,020 | $ | 689 | $ | 197 | |||||||||||||||||
Types of Troubled Debt Restructuring Loan Modification by Portfolio Segment Outstanding | The following table presents the types of TDR loan modifications by portfolio segment outstanding as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||||||||||||
TDRs | TDRs Not | Total | |||||||||||||||||||||||||||
Performing to | Performing to | TDRs | |||||||||||||||||||||||||||
Modified | Modified | ||||||||||||||||||||||||||||
Terms | Terms | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Rate reduction | $ | 13 | $ | 69 | $ | 82 | |||||||||||||||||||||||
Principal deferral | — | 869 | 869 | ||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Rate reduction | 267 | 3,237 | 3,504 | ||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Principal deferral | — | 2,365 | 2,365 | ||||||||||||||||||||||||||
Nonfarm nonresidential | |||||||||||||||||||||||||||||
Rate reduction | 5,543 | 12,462 | 18,005 | ||||||||||||||||||||||||||
Principal deferral | 660 | — | 660 | ||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Rate reduction | 4,250 | — | 4,250 | ||||||||||||||||||||||||||
1-4 Family | |||||||||||||||||||||||||||||
Rate reduction | 8,057 | — | 8,057 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Rate reduction | 8 | — | 8 | ||||||||||||||||||||||||||
Total TDRs | $ | 18,798 | $ | 19,002 | $ | 37,800 | |||||||||||||||||||||||
TDRs | TDRs Not | Total | |||||||||||||||||||||||||||
Performing to | Performing to | TDRs | |||||||||||||||||||||||||||
Modified Terms | Modified Terms | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Rate reduction | $ | 14 | $ | — | $ | 14 | |||||||||||||||||||||||
Principal deferral | — | 869 | 869 | ||||||||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | |||||||||||||||||||||||||||||
Rate reduction | 268 | 3,379 | 3,647 | ||||||||||||||||||||||||||
Farmland | |||||||||||||||||||||||||||||
Principal deferral | — | 2,365 | 2,365 | ||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||
Rate reduction | 8,622 | 13,894 | 22,516 | ||||||||||||||||||||||||||
Principal deferral | 671 | — | 671 | ||||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | |||||||||||||||||||||||||||||
Rate reduction | 4,266 | — | 4,266 | ||||||||||||||||||||||||||
1-4 Family | |||||||||||||||||||||||||||||
Rate reduction | 8,112 | — | 8,112 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Rate reduction | 32 | — | 32 | ||||||||||||||||||||||||||
Total TDRs | $ | 21,985 | $ | 20,507 | $ | 42,492 | |||||||||||||||||||||||
Nonperforming Loans | The following table presents the recorded investment in nonaccrual and loans past due 90 days and still on accrual by class of loan as of March 31, 2015, and December 31, 2014: | ||||||||||||||||||||||||||||
Nonaccrual | Loans Past Due 90 Days | ||||||||||||||||||||||||||||
And Over Still Accruing | |||||||||||||||||||||||||||||
March 31, | December 31, | March 31, | December 31, | ||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 1,663 | $ | 1,978 | $ | — | $ | — | |||||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 3,671 | 3,831 | — | — | |||||||||||||||||||||||||
Farmland | 4,871 | 5,054 | — | — | |||||||||||||||||||||||||
Nonfarm nonresidential | 17,719 | 26,892 | — | — | |||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | 80 | — | — | |||||||||||||||||||||||||
1-4 Family | 8,197 | 8,925 | — | 151 | |||||||||||||||||||||||||
Consumer | 24 | 30 | 18 | — | |||||||||||||||||||||||||
Agriculture | 232 | 263 | — | — | |||||||||||||||||||||||||
Other | 123 | 122 | — | — | |||||||||||||||||||||||||
Total | $ | 36,500 | $ | 47,175 | $ | 18 | $ | 151 | |||||||||||||||||||||
The following table presents the aging of the recorded investment in past due loans as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||||
30 – 59 | 60 – 89 | 90 Days | Nonaccrual | Total | |||||||||||||||||||||||||
Days | Days | And Over | Past Due | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due | And | ||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | $ | 465 | $ | 4 | $ | — | $ | 1,663 | $ | 2,132 | |||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 3,671 | 3,671 | ||||||||||||||||||||||||
Farmland | 343 | 230 | — | 4,871 | 5,444 | ||||||||||||||||||||||||
Nonfarm nonresidential | 356 | 221 | — | 17,719 | 18,296 | ||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | 42 | — | — | 42 | ||||||||||||||||||||||||
1-4 Family | 2,959 | 1,267 | — | 8,197 | 12,423 | ||||||||||||||||||||||||
Consumer | 156 | 5 | 18 | 24 | 203 | ||||||||||||||||||||||||
Agriculture | 91 | — | — | 232 | 323 | ||||||||||||||||||||||||
Other | — | — | — | 123 | 123 | ||||||||||||||||||||||||
Total | $ | 4,370 | $ | 1,769 | $ | 18 | $ | 36,500 | $ | 42,657 | |||||||||||||||||||
30 – 59 | 60 – 89 | 90 Days | Nonaccrual | Total | |||||||||||||||||||||||||
Days | Days | And Over | Past Due | ||||||||||||||||||||||||||
Past Due | Past Due | Past Due | And | ||||||||||||||||||||||||||
Nonaccrual | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | $ | 86 | $ | — | $ | — | $ | 1,978 | $ | 2,064 | |||||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | — | — | — | 3,831 | 3,831 | ||||||||||||||||||||||||
Farmland | 400 | 14 | — | 5,054 | 5,468 | ||||||||||||||||||||||||
Nonfarm nonresidential | 241 | 318 | — | 26,892 | 27,451 | ||||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | — | — | — | 80 | 80 | ||||||||||||||||||||||||
1-4 Family | 3,124 | 601 | 151 | 8,925 | 12,801 | ||||||||||||||||||||||||
Consumer | 109 | 47 | — | 30 | 186 | ||||||||||||||||||||||||
Agriculture | — | — | — | 263 | 263 | ||||||||||||||||||||||||
Other | — | — | — | 122 | 122 | ||||||||||||||||||||||||
Total | $ | 3,960 | $ | 980 | $ | 151 | $ | 47,175 | $ | 52,266 | |||||||||||||||||||
Risk Category of Loans by Class of Loans | As of March 31, 2015, and December 31, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: | ||||||||||||||||||||||||||||
Pass | Watch | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
Commercial | $ | 67,239 | $ | 4,422 | $ | — | $ | 5,293 | $ | — | $ | 76,954 | |||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 27,975 | 3,787 | — | 5,031 | — | 36,793 | |||||||||||||||||||||||
Farmland | 63,761 | 6,834 | — | 7,353 | — | 77,948 | |||||||||||||||||||||||
Nonfarm nonresidential | 107,808 | 26,755 | 797 | 23,916 | — | 159,276 | |||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 34,093 | 5,090 | — | 3,967 | — | 43,150 | |||||||||||||||||||||||
1-4 Family | 150,241 | 19,869 | 12 | 27,461 | — | 197,583 | |||||||||||||||||||||||
Consumer | 9,805 | 370 | 301 | 355 | — | 10,831 | |||||||||||||||||||||||
Agriculture | 18,526 | 9,749 | — | 398 | — | 28,673 | |||||||||||||||||||||||
Other | 1,097 | — | — | 123 | — | 1,220 | |||||||||||||||||||||||
Total | $ | 480,545 | $ | 76,876 | $ | 1,110 | $ | 73,897 | $ | — | $ | 632,428 | |||||||||||||||||
Pass | Watch | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
Commercial | $ | 49,440 | $ | 5,063 | $ | — | $ | 6,433 | $ | — | $ | 60,936 | |||||||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||
Construction | 25,266 | 2,990 | — | 4,917 | — | 33,173 | |||||||||||||||||||||||
Farmland | 61,672 | 7,922 | — | 7,825 | — | 77,419 | |||||||||||||||||||||||
Nonfarm nonresidential | 111,426 | 21,017 | 3,747 | 39,262 | — | 175,452 | |||||||||||||||||||||||
Residential Real Estate: | |||||||||||||||||||||||||||||
Multi-family | 31,526 | 6,039 | — | 4,326 | — | 41,891 | |||||||||||||||||||||||
1-4 Family | 145,450 | 23,928 | 131 | 27,769 | — | 197,278 | |||||||||||||||||||||||
Consumer | 10,115 | 537 | 311 | 384 | — | 11,347 | |||||||||||||||||||||||
Agriculture | 25,816 | 704 | — | 446 | — | 26,966 | |||||||||||||||||||||||
Other | 415 | — | — | 122 | — | 537 | |||||||||||||||||||||||
Total | $ | 461,126 | $ | 68,200 | $ | 4,189 | $ | 91,484 | $ | — | $ | 624,999 | |||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Major Categories of Other Real Estate Owned | The following table presents the major categories of OREO at the period-ends indicated: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Commercial Real Estate: | |||||||||
Construction, land development, and other land | $ | 18,319 | $ | 18,748 | |||||
Farmland | 256 | 669 | |||||||
Nonfarm nonresidential | 14,592 | 14,860 | |||||||
Residential Real Estate: | |||||||||
Multi-family | 4,700 | 4,988 | |||||||
1-4 Family | 6,243 | 7,998 | |||||||
44,110 | 47,263 | ||||||||
Valuation allowance | (492 | ) | (1,066 | ) | |||||
$ | 43,618 | $ | 46,197 | ||||||
Other Real Estate Owned Valuation Allowance Activity | |||||||||
For the Three | |||||||||
Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
OREO Valuation Allowance Activity: | |||||||||
Beginning balance | $ | 1,066 | $ | 230 | |||||
Provision to allowance | 300 | 250 | |||||||
Write-downs | (874 | ) | (272 | ) | |||||
Ending balance | $ | 492 | $ | 208 | |||||
Residential loans secured by 1-4 family residential properties in the process of foreclosure totaled $2.6 million and $3.6 million at March 31, 2015 and December 31, 2014, respectively. | |||||||||
Net activity relating to other real estate owned during the three months ended March 31, 2015 and 2014 is as follows: | |||||||||
For the Three | |||||||||
Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
OREO Activity | |||||||||
OREO as of January 1 | $ | 46,197 | $ | 30,892 | |||||
Real estate acquired | 347 | 17,351 | |||||||
Valuation adjustment writedowns | (300 | ) | (250 | ) | |||||
Gain/(loss) on sale | 3 | — | |||||||
Proceeds from sale of properties | (2,629 | ) | (2,075 | ) | |||||
OREO as of March 31 | $ | 43,618 | $ | 45,918 | |||||
Expenses Related to Other Real Estate Owned | Expenses related to other real estate owned include: | ||||||||
For the Three Months | |||||||||
Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Net (gain) loss on sales | $ | (3 | ) | $ | — | ||||
Provision to allowance | 300 | 250 | |||||||
Operating expense | 436 | 412 | |||||||
Total | $ | 733 | $ | 662 | |||||
Deposits_Tables
Deposits (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Schedule of Deposit Balances by Category | The following table shows ending deposit balances by category as of: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Non-interest bearing | $ | 108,011 | $ | 114,910 | |||||
Interest checking | 86,614 | 91,086 | |||||||
Money market | 102,349 | 109,734 | |||||||
Savings | 36,418 | 36,430 | |||||||
Certificates of deposit | 597,117 | 574,681 | |||||||
Total | $ | 930,509 | $ | 926,841 | |||||
Scheduled Maturities of All Time Deposits | Scheduled maturities of all time deposits at March 31, 2015 were as follows (in thousands): | ||||||||
Year 1 | $ | 371,065 | |||||||
Year 2 | 161,220 | ||||||||
Year 3 | 11,268 | ||||||||
Year 4 | 11,505 | ||||||||
Year 5 | 42,058 | ||||||||
Thereafter | 1 | ||||||||
$ | 597,117 | ||||||||
Advances_from_the_Federal_Home1
Advances from the Federal Home Loan Bank (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Advances from Federal Home Loan Bank | Advances from the Federal Home Loan Bank were as follows: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Monthly amortizing advances with fixed rates from 0.00% to 5.25% and maturities ranging from 2017 through 2033, averaging 2.85% at March 31, 2015 and 1.02% at December 31, 2014 | $ | 3,597 | $ | 15,752 | |||||
Fair_Values_Measurement_Tables
Fair Values Measurement (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Financial Assets Measured at Fair Value on Recurring and Non Recurring Basis | Financial assets measured at fair value on a recurring basis at March 31, 2015 and December 31, 2014 are summarized below: | ||||||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
U.S. Government and federal agency | $ | 30,025 | $ | — | $ | 30,025 | $ | — | |||||||||||||
Agency mortgage-backed: residential | 106,956 | — | 106,956 | — | |||||||||||||||||
State and municipal | 7,526 | — | 7,526 | — | |||||||||||||||||
Corporate bonds | 12,118 | — | 12,118 | — | |||||||||||||||||
Other debt securities | 665 | — | — | 665 | |||||||||||||||||
Total | $ | 157,290 | $ | — | $ | 156,625 | $ | 665 | |||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Available for sale securities | |||||||||||||||||||||
U.S. Government and federal agency | $ | 35,443 | $ | — | $ | 35,443 | $ | — | |||||||||||||
Agency mortgage-backed: residential | 123,598 | — | 123,598 | — | |||||||||||||||||
State and municipal | 12,404 | — | 12,404 | — | |||||||||||||||||
Corporate bonds | 18,688 | — | 18,688 | — | |||||||||||||||||
Other debt securities | 658 | — | — | 658 | |||||||||||||||||
Total | $ | 190,791 | $ | — | $ | 190,133 | $ | 658 | |||||||||||||
Financial assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 11 | $ | — | $ | — | $ | 11 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||
Farmland | — | — | — | — | |||||||||||||||||
Nonfarm nonresidential | 162 | — | — | 162 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||
1-4 Family | 1,568 | — | — | 1,568 | |||||||||||||||||
Consumer | 8 | — | — | 8 | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Other real estate owned, net: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | 18,114 | — | — | 18,114 | |||||||||||||||||
Farmland | 253 | — | — | 253 | |||||||||||||||||
Nonfarm nonresidential | 14,429 | — | — | 14,429 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | 4,648 | — | — | 4,648 | |||||||||||||||||
1-4 Family | 6,174 | — | — | 6,174 | |||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Carrying | Quoted Prices In | Significant Other | Significant | |||||||||||||||||
Value | Active Markets for | Observable Inputs | Unobservable | ||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 12 | $ | — | $ | — | $ | 12 | |||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | — | — | — | — | |||||||||||||||||
Farmland | 278 | — | — | 278 | |||||||||||||||||
Other | 15,825 | — | — | 15,825 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||
1-4 Family | 1,635 | — | — | 1,635 | |||||||||||||||||
Consumer | 31 | — | — | 31 | |||||||||||||||||
Other | — | — | — | — | |||||||||||||||||
Other real estate owned, net: | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||
Construction | 18,325 | — | — | 18,325 | |||||||||||||||||
Farmland | 654 | — | — | 654 | |||||||||||||||||
Other | 14,525 | — | — | 14,525 | |||||||||||||||||
Residential real estate: | |||||||||||||||||||||
Multi-family | 4,875 | — | — | 4,875 | |||||||||||||||||
1-4 Family | 7,818 | — | — | 7,818 | |||||||||||||||||
Reconciliation of all Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level 3 | The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the periods ended March 31, 2015 and 2014: | ||||||||||||||||||||
Other Debt | |||||||||||||||||||||
Securities | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balances of recurring Level 3 assets at January 1 | $ | 658 | $ | 632 | |||||||||||||||||
Total gain (loss) for the period: | |||||||||||||||||||||
Included in other comprehensive income (loss) | 7 | 12 | |||||||||||||||||||
Balance of recurring Level 3 assets at March 31 | $ | 665 | $ | 644 | |||||||||||||||||
Qualitative Information About Level Three Fair Value Measurements for Financial Instruments Measured at Fair Value on Non-Recurring Basis | The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at March 31, 2015: | ||||||||||||||||||||
Fair Value | Valuation | Unobservable Input(s) | Range (Weighted | ||||||||||||||||||
Technique(s) | Average) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans – Commercial | $ | 11 | Market value approach | Adjustment for receivables and inventory discounts | 16% - 32% (24%) | ||||||||||||||||
Impaired loans – Commercial real estate | $ | 162 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 62% (16%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 9% (8%) | |||||||||||||||||||
Impaired loans – Residential real estate | $ | 1,568 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 39% (11%) | ||||||||||||||||
Other real estate owned – Commercial real estate | $ | 32,796 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 45% (18%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 20% (13%) | |||||||||||||||||||
Other real estate owned – Residential real estate | $ | 10,822 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 10% (5%) | ||||||||||||||||
The following table presents qualitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014: | |||||||||||||||||||||
Fair Value | Valuation | Unobservable Input(s) | Range (Weighted | ||||||||||||||||||
Technique(s) | Average) | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Impaired loans – Commercial | $ | 12 | Market value approach | Adjustment for receivables and inventory discounts | 16% -32% (24%) | ||||||||||||||||
Impaired loans – Commercial real estate | $ | 16,103 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 62% (14%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 8% - 9% (8%) | |||||||||||||||||||
Impaired loans – Residential real estate | $ | 1,635 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 39% (11%) | ||||||||||||||||
Other real estate owned – Commercial real estate | $ | 33,504 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 45% (18%) | ||||||||||||||||
Income approach | Discount or capitalization rate | 9% - 20% (13%) | |||||||||||||||||||
Other real estate owned – Residential real estate | $ | 12,693 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% - 15% (6%) | ||||||||||||||||
Carrying Amount and Estimated Fair Values of Financial Instruments | Carrying amount and estimated fair values of financial instruments were as follows for the periods indicated: | ||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Using | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 109,771 | $ | 96,168 | $ | 13,603 | $ | — | $ | 109,771 | |||||||||||
Securities available for sale | 157,290 | — | 156,625 | 665 | 157,290 | ||||||||||||||||
Securities held to maturity | 42,263 | — | 44,895 | — | 44,895 | ||||||||||||||||
Federal Home Loan Bank stock | 7,323 | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | — | — | — | — | — | ||||||||||||||||
Loans, net | 613,831 | — | — | 622,241 | 622,241 | ||||||||||||||||
Accrued interest receivable | 3,036 | — | 1,072 | 1,964 | 3,036 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | $ | 930,509 | $ | 108,011 | $ | 817,396 | $ | — | $ | 925,407 | |||||||||||
Securities sold under agreements to repurchase | 1,145 | — | 1,145 | — | 1,145 | ||||||||||||||||
Federal Home Loan Bank advances | 3,597 | — | 3,604 | — | 3,604 | ||||||||||||||||
Subordinated capital notes | 4,725 | — | — | 4,558 | 4,558 | ||||||||||||||||
Junior subordinated debentures | 25,000 | — | — | 14,433 | 14,433 | ||||||||||||||||
Accrued interest payable | 2,864 | — | 606 | 2,258 | 2,864 | ||||||||||||||||
Fair Value Measurements at December 31, 2014 Using | |||||||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Amount | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 80,180 | $ | 49,007 | $ | 31,173 | $ | — | $ | 80,180 | |||||||||||
Securities available for sale | 190,791 | — | 190,133 | 658 | 190,791 | ||||||||||||||||
Securities held to maturity | 42,325 | — | 44,498 | — | 44,498 | ||||||||||||||||
Federal Home Loan Bank stock | 7,323 | N/A | N/A | N/A | N/A | ||||||||||||||||
Loans held for sale | 8,926 | — | 8,926 | — | 8,926 | ||||||||||||||||
Loans, net | 605,635 | — | — | 615,914 | 615,914 | ||||||||||||||||
Accrued interest receivable | 3,503 | — | 1,389 | 2,114 | 3,503 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Deposits | $ | 926,841 | $ | 114,910 | $ | 804,508 | $ | — | $ | 919,418 | |||||||||||
Securities sold under agreements to repurchase | 1,341 | — | 1,341 | — | 1,341 | ||||||||||||||||
Federal Home Loan Bank advances | 15,752 | — | 15,758 | — | 15,758 | ||||||||||||||||
Subordinated capital notes | 4,950 | — | — | 4,765 | 4,765 | ||||||||||||||||
Junior subordinated debentures | 25,000 | — | — | 14,214 | 14,214 | ||||||||||||||||
Accrued interest payable | 2,858 | — | 751 | 2,107 | 2,858 |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities were due to the following as of: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Deferred tax assets: | |||||||||
Net operating loss carry-forward | $ | 32,067 | $ | 32,111 | |||||
Allowance for loan losses | 6,509 | 6,777 | |||||||
Other real estate owned write-down | 9,899 | 10,000 | |||||||
Alternative minimum tax credit carry-forward | 692 | 692 | |||||||
Net assets from acquisitions | 670 | 668 | |||||||
Other than temporary impairment on securities | 46 | 46 | |||||||
New market tax credit carry-forward | 208 | 208 | |||||||
Nonaccrual loan interest | 847 | 958 | |||||||
Amortization of non-compete agreements | 13 | 14 | |||||||
Other | 1,873 | 1,371 | |||||||
52,824 | 52,845 | ||||||||
Deferred tax liabilities: | |||||||||
FHLB stock dividends | 928 | 928 | |||||||
Fixed assets | 248 | 264 | |||||||
Originated mortgage servicing rights | 48 | 53 | |||||||
Net unrealized gain on securities | 530 | 579 | |||||||
Other | 668 | 373 | |||||||
2,422 | 2,197 | ||||||||
Net deferred tax assets before valuation allowance | 50,402 | 50,648 | |||||||
Valuation allowance | (50,402 | ) | (50,648 | ) | |||||
Net deferred tax asset | $ | — | $ | — | |||||
Stock_Plans_and_Stock_Based_Co1
Stock Plans and Stock Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Summary of Unvested Share Activity | The following table summarizes unvested share activity as of and for the periods indicated for the Stock Incentive Plan: | ||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant | Grant | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding, beginning | 770,440 | $ | 1.33 | 787,426 | $ | 1.56 | |||||||||||
Granted | 800,000 | 0.89 | 122,220 | 0.93 | |||||||||||||
Vested | (63,063 | ) | 2 | (133,227 | ) | 2.2 | |||||||||||
Terminated | (450,994 | ) | 1.25 | — | — | ||||||||||||
Forfeited | (140 | ) | 22.03 | (5,979 | ) | 4.21 | |||||||||||
Outstanding, ending | 1,056,243 | $ | 0.99 | 770,440 | $ | 1.33 | |||||||||||
Summary of Unvested Share Activity for Non-Employee Directors | The following table summarizes unvested share activity as of and for the periods indicated for the Non-Employee Directors Stock Ownership Incentive Plan: | ||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||
Average | Average | ||||||||||||||||
Grant | Grant | ||||||||||||||||
Price | Price | ||||||||||||||||
Outstanding, beginning | 5,052 | $ | 1.65 | 47,428 | $ | 1.69 | |||||||||||
Granted | — | — | 166,668 | 0.9 | |||||||||||||
Vested | — | — | (154,222 | ) | 0.98 | ||||||||||||
Forfeited | — | — | (54,822 | ) | 1.29 | ||||||||||||
Outstanding, ending | 5,052 | $ | 1.65 | 5,052 | $ | 1.65 | |||||||||||
Unrecognized Stock Based Compensation Expense Related to Unvested Shares | Unrecognized stock based compensation expense related to unvested shares for the remainder of 2015 and beyond is estimated as follows (in thousands): | ||||||||||||||||
April 2015 – December 2015 | $ | 282 | |||||||||||||||
2016 | 263 | ||||||||||||||||
2017 | 158 | ||||||||||||||||
2018 | 149 | ||||||||||||||||
2019 & thereafter | — |
Earnings_Loss_per_Share_Tables
Earnings (Loss) per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Computation of Basic and Diluted Earnings Per Share | The factors used in the basic and diluted earnings per share computations follow: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands, except share and | |||||||||
per share data) | |||||||||
Net income (loss) | $ | 594 | $ | (287 | ) | ||||
Less: | |||||||||
Preferred stock dividends | — | 786 | |||||||
Earnings (loss) allocated to unvested shares | 21 | (70 | ) | ||||||
Earnings (loss) attributable to participating preferred shares | 164 | (27 | ) | ||||||
Net income (loss) attributable to common shareholders, basic and diluted | $ | 409 | $ | (976 | ) | ||||
Basic | |||||||||
Weighted average common shares including unvested common shares outstanding | 25,419,523 | 13,210,930 | |||||||
Less: | |||||||||
Weighted average unvested common shares | 918,393 | 856,723 | |||||||
Weighted average Series B preferred shares | 2,702,400 | — | |||||||
Weighted average Series C preferred shares | — | 332,894 | |||||||
Weighted average Series D preferred shares | 4,305,333 | — | |||||||
Weighted average common shares outstanding | 17,493,397 | 12,021,313 | |||||||
Basic income (loss) per common share | $ | 0.02 | $ | (0.08 | ) | ||||
Diluted | |||||||||
Add: Dilutive effects of assumed exercises of common stock warrants | — | — | |||||||
Weighted average common shares and potential common shares | 17,493,397 | 12,021,313 | |||||||
Diluted loss per common share | $ | 0.02 | $ | (0.08 | ) | ||||
Capital_Requirements_and_Restr1
Capital Requirements and Restrictions on Retained Earnings (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Ratios and Amounts of Common Equity Tier One, Tier One Capital and Total Capital to Risk-Adjusted Assets and Leverage Ratios | The following table shows the ratios and amounts of Common Equity Tier 1, Tier 1 capital and total capital to risk-adjusted assets and the leverage ratios for Porter Bancorp, Inc. and the Bank at the dates indicated (dollars in thousands): | ||||||||||||||||
Actual | For Capital Adequacy Purposes | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
As of March 31, 2015: | |||||||||||||||||
Total risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | $ | 70,949 | 10.05 | % | $ | 56,459 | 8 | % | |||||||||
Bank | 72,335 | 10.25 | 56,435 | 8 | |||||||||||||
Total common equity Tier I risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 33,232 | 4.71 | 31,758 | 4.5 | |||||||||||||
Bank | 58,672 | 8.32 | 31,745 | 4.5 | |||||||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 41,513 | 5.88 | 42,344 | 6 | |||||||||||||
Bank | 58,672 | 8.32 | 42,326 | 6 | |||||||||||||
Tier I capital (to average assets) | |||||||||||||||||
Consolidated | 41,513 | 4.13 | 40,209 | 4 | |||||||||||||
Bank | 58,672 | 5.84 | 40,212 | 4 | |||||||||||||
Actual | For Capital Adequacy Purposes | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
As of December 31, 2014: | |||||||||||||||||
Total risk-based capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | $ | 73,595 | 10.61 | % | $ | 55,483 | 8 | % | |||||||||
Bank | 73,174 | 10.57 | 55,383 | 8 | |||||||||||||
Tier I capital (to risk-weighted assets) | |||||||||||||||||
Consolidated | 46,459 | 6.7 | 27,741 | 4 | |||||||||||||
Bank | 59,438 | 8.59 | 27,691 | 4 | |||||||||||||
Tier I capital (to average assets) | |||||||||||||||||
Consolidated | 46,459 | 4.51 | 41,193 | 4 | |||||||||||||
Bank | 59,438 | 5.78 | 41,143 | 4 | |||||||||||||
Consent Order to Achieve the Minimum Capital Ratios | The Consent Order requires the Bank to achieve the minimum capital ratios presented below: | ||||||||||||||||
Actual as of March 31, 2015 | Ratio Required by Consent Order | ||||||||||||||||
Amount | Ratio | Amount | Ratio | ||||||||||||||
Total capital to risk-weighted assets | $ | 72,335 | 10.25 | % | $ | 84,652 | 12 | % | |||||||||
Tier I capital to average assets | 58,672 | 5.84 | 90,476 | 9 |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 31, 2015 |
Significant Accounting Policies [Line Items] | |
Ownership Interest in PBI Bank | 100.00% |
Going_Concern_Considerations_a1
Going Concern Considerations and Future Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Oct. 31, 2012 | Jun. 24, 2011 | |
Recent Developments [Line Items] | |||||||
Net income (loss) attributable to common shareholders, basic and diluted | $409,000 | ($976,000) | $19,400,000 | ($3,400,000) | |||
Net loss | 594,000 | -287,000 | -11,200,000 | ||||
Provision for loan losses | 0 | 0 | 7,100,000 | ||||
Other real estate owned expense | 733,000 | 662,000 | 5,800,000 | ||||
Loan collection expenses | 283,000 | 539,000 | 3,000,000 | ||||
Dividends and accretion on preferred stock | 786,000 | 2,400,000 | |||||
(Earnings) loss allocated to participating securities | 185,000 | -97,000 | 3,200,000 | ||||
Effect of preferred stock exchange | 36,100,000 | ||||||
Tier I leverage ratio, regulatory minimum | 4.00% | 4.00% | |||||
Total risk-based capital, regulatory minimum | 8.00% | 8.00% | |||||
Gross loans | 632,428,000 | 624,999,000 | 1,300,000,000 | ||||
OREO acquired during the period | 347,000 | 32,300,000 | 20,600,000 | ||||
Nonaccrual loans | 36,500,000 | 47,175,000 | |||||
Net write-down of other real estate owned | 300,000 | 250,000 | |||||
Gain (loss) on sale of OREO | 3,000 | ||||||
Proceeds from sale of OREO | 2,600,000 | 2,100,000 | |||||
Liquid assets | 1,600,000 | ||||||
Junior subordinated debentures | |||||||
Recent Developments [Line Items] | |||||||
Maximum number of consecutive quarters the company has the option to defer interest payments | 20 | ||||||
Deferred distributions on our trust preferred securities | 2,300,000 | ||||||
Parent | Scenario, Forecast | |||||||
Recent Developments [Line Items] | |||||||
Operating expenses for 2015 | 1,000,000 | ||||||
Real estate construction | Other real estate owned, net | |||||||
Recent Developments [Line Items] | |||||||
Percentage of OREO portfolio | 42.00% | 40.00% | |||||
Commercial Real Estate | |||||||
Recent Developments [Line Items] | |||||||
Provision for loan losses | 7,000 | -1,127,000 | |||||
Gross loans | 274,017,000 | 286,044,000 | |||||
Commercial Real Estate | Other real estate owned, net | |||||||
Recent Developments [Line Items] | |||||||
Percentage of OREO portfolio | 33.00% | 31.00% | |||||
Pricing Strategy Change | |||||||
Recent Developments [Line Items] | |||||||
Fair value adjustments and loss on sale of OREO | 297,000 | ||||||
Net write-down of other real estate owned | 300,000 | ||||||
Gain (loss) on sale of OREO | 3,000 | ||||||
Series E Preferred Stock And Series F Preferred Stock | |||||||
Recent Developments [Line Items] | |||||||
Preferred stock, Liquidation preference | $10,500,000 | ||||||
1-4 Family | Other real estate owned, net | |||||||
Recent Developments [Line Items] | |||||||
Percentage of OREO portfolio | 14.00% | 17.00% | |||||
Consent order | |||||||
Recent Developments [Line Items] | |||||||
Tier I leverage ratio, regulatory minimum | 9.00% | 9.00% | |||||
Total risk-based capital, regulatory minimum | 12.00% | 12.00% | |||||
Consent order | Construction and development loans | |||||||
Recent Developments [Line Items] | |||||||
Maximum concentration of loans to total risk based capital | 75.00% | 75.00% | |||||
Consent order | Non-owner occupied commercial real estate loans | |||||||
Recent Developments [Line Items] | |||||||
Maximum concentration of loans to total risk based capital | 250.00% | ||||||
Concentration of loans to total risk based capital | 243.00% | 262.00% |
Fair_Value_of_Available_for_Sa
Fair Value of Available for Sale Securities, Held to Maturity Securities and Related Gross Unrealized Gains and Losses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | $154,727 | $188,059 |
Available for sale, Gross Unrealized Gains | 3,130 | 3,939 |
Available for sale, Gross Unrealized Losses | -567 | -1,207 |
Available for sale, Fair Value | 157,290 | 190,791 |
Held to maturity, Amortized Cost | 42,263 | 42,325 |
Held to maturity, Gross Unrealized Gains | 2,632 | 2,173 |
Held to maturity, Gross Unrealized Losses | 0 | 0 |
Held to maturity, Fair Value | 44,895 | 44,498 |
State and municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held to maturity, Amortized Cost | 42,263 | 42,325 |
Held to maturity, Gross Unrealized Gains | 2,632 | 2,173 |
Held to maturity, Gross Unrealized Losses | 0 | 0 |
Held to maturity, Fair Value | 44,895 | 44,498 |
State and municipal | Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 7,118 | 11,690 |
Available for sale, Gross Unrealized Gains | 408 | 722 |
Available for sale, Gross Unrealized Losses | -8 | |
Available for sale, Fair Value | 7,526 | 12,404 |
U.S. Government and federal agency | Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 30,073 | 35,725 |
Available for sale, Gross Unrealized Gains | 235 | 308 |
Available for sale, Gross Unrealized Losses | -283 | -590 |
Available for sale, Fair Value | 30,025 | 35,443 |
Agency mortgage-backed: residential | Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 104,912 | 121,985 |
Available for sale, Gross Unrealized Gains | 2,136 | 1,970 |
Available for sale, Gross Unrealized Losses | -92 | -357 |
Available for sale, Fair Value | 106,956 | 123,598 |
Corporate bonds | Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 12,052 | 18,087 |
Available for sale, Gross Unrealized Gains | 258 | 853 |
Available for sale, Gross Unrealized Losses | -192 | -252 |
Available for sale, Fair Value | 12,118 | 18,688 |
Other | Debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, Amortized Cost | 572 | 572 |
Available for sale, Gross Unrealized Gains | 93 | 86 |
Available for sale, Fair Value | $665 | $658 |
Sales_and_Calls_of_Available_f
Sales and Calls of Available for Sale Securities (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Gain (Loss) on Investments [Line Items] | ||
Proceeds | $34,138 | $329 |
Gross gains | 1,551 | 44 |
Gross losses | $54 |
Amortized_Cost_and_Fair_Value_
Amortized Cost and Fair Value of Debt Investment Securities Portfolio by Contractual Maturity (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Available for sale, amortized Cost | ||
Available for sale, within one year | $15,002 | |
Available for sale, one to five years | 7,466 | |
Available for sale, five to ten years | 26,775 | |
Available for sale, beyond ten years | 572 | |
Available for sale, agency mortgage-backed: residential | 104,912 | |
Total | 154,727 | |
Held to maturity, amortized Cost | ||
Held to maturity, one to five years | 10,840 | |
Five to ten years | 27,867 | |
Beyond ten years | 3,556 | |
Total | 42,263 | 42,325 |
Available for sale, fair value | ||
Available for sale, within one year | 15,102 | |
Available for sale, one to five years | 7,802 | |
Available for sale, five to ten years | 26,765 | |
Available for sale, beyond ten years | 665 | |
Available for sale, agency mortgage-backed: residential | 106,956 | |
Total | 157,290 | |
Held to maturity, fair value | ||
Held to maturity, one to five years | 11,377 | |
Five to ten years | 29,641 | |
Beyond ten years | 3,877 | |
Total | $44,895 | $44,498 |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Entity | Entity | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities pledged, carrying values | $62,100,000 | $80,800,000 |
Available for sale securities | 157,290,000 | |
Number of issuer of holdings of securities other than U.S. Government and its agencies greater than 10% of stockholders' equity | 0 | 0 |
Held to maturity securities | 0 | 0 |
KENTUCKY | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities | 18,200,000 | 19,100,000 |
TEXAS | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities | $4,400,000 | $4,400,000 |
Securities_with_Unrealized_Los
Securities with Unrealized Losses (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available for sale Fair value, less than 12 months | $4,875 | $20,191 |
Available for sale Unrealized loss, less than 12 months | -150 | -199 |
Available for sale Fair value, 12 months or more | 21,490 | 38,279 |
Available for sale Unrealized loss, 12 months or more | -417 | -1,008 |
Available for sale Fair value, total | 26,365 | 58,470 |
Available for sale Unrealized loss, total | -567 | -1,207 |
Debt securities | U.S. Government and federal agency | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available for sale Fair value, less than 12 months | 2,576 | 7,778 |
Available for sale Unrealized loss, less than 12 months | -5 | -60 |
Available for sale Fair value, 12 months or more | 15,550 | 18,681 |
Available for sale Unrealized loss, 12 months or more | -278 | -530 |
Available for sale Fair value, total | 18,126 | 26,459 |
Available for sale Unrealized loss, total | -283 | -590 |
Debt securities | Agency mortgage-backed: residential | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available for sale Fair value, less than 12 months | 6,960 | |
Available for sale Unrealized loss, less than 12 months | -12 | |
Available for sale Fair value, 12 months or more | 4,190 | 17,938 |
Available for sale Unrealized loss, 12 months or more | -92 | -345 |
Available for sale Fair value, total | 4,190 | 24,898 |
Available for sale Unrealized loss, total | -92 | -357 |
Debt securities | State and municipal | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available for sale Fair value, less than 12 months | 569 | |
Available for sale Unrealized loss, less than 12 months | -8 | |
Available for sale Fair value, total | 569 | |
Available for sale Unrealized loss, total | -8 | |
Debt securities | Corporate bonds | ||
Investments, Unrealized Loss Position [Line Items] | ||
Available for sale Fair value, less than 12 months | 2,299 | 4,884 |
Available for sale Unrealized loss, less than 12 months | -145 | -119 |
Available for sale Fair value, 12 months or more | 1,750 | 1,660 |
Available for sale Unrealized loss, 12 months or more | -47 | -133 |
Available for sale Fair value, total | 4,049 | 6,544 |
Available for sale Unrealized loss, total | ($192) | ($252) |
Loans_Detail
Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $632,428 | $624,999 | $1,300,000 |
Less: Allowance for loan losses | -18,597 | -19,364 | |
Loans, net | 613,831 | 605,635 | |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 76,954 | 60,936 | |
Less: Allowance for loan losses | -2,046 | -2,046 | |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 274,017 | 286,044 | |
Less: Allowance for loan losses | -10,680 | -10,931 | |
Commercial Real Estate | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 36,793 | 33,173 | |
Commercial Real Estate | Farmland | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 77,948 | 77,419 | |
Commercial Real Estate | Nonfarm nonresidential | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 159,276 | 175,452 | |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 240,733 | 239,169 | |
Less: Allowance for loan losses | -5,221 | -5,787 | |
Residential Real Estate | Multi-Family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 43,150 | 41,891 | |
Residential Real Estate | 1-4 Family | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 197,583 | 197,278 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 10,831 | 11,347 | |
Less: Allowance for loan losses | -244 | -274 | |
Agriculture | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 28,673 | 26,966 | |
Less: Allowance for loan losses | -391 | -319 | |
Other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 1,220 | 537 | |
Less: Allowance for loan losses | ($15) | ($7) |
Activity_in_Allowance_for_Loan
Activity in Allowance for Loan Losses by Portfolio Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | $19,364 | $28,124 | $28,124 |
Provision for loan losses | 0 | 0 | 7,100 |
Loans charged off | -1,327 | -3,082 | |
Recoveries | 560 | 373 | |
Ending balance | 18,597 | 25,415 | 19,364 |
Commercial | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 2,046 | 3,221 | 3,221 |
Provision for loan losses | 269 | 445 | |
Loans charged off | -375 | -146 | |
Recoveries | 106 | 88 | |
Ending balance | 2,046 | 3,608 | |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 10,931 | 16,414 | 16,414 |
Provision for loan losses | 7 | -1,127 | |
Loans charged off | -369 | -1,474 | |
Recoveries | 111 | 116 | |
Ending balance | 10,680 | 13,929 | |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 5,787 | 7,762 | 7,762 |
Provision for loan losses | -384 | 534 | |
Loans charged off | -482 | -1,308 | |
Recoveries | 300 | 83 | |
Ending balance | 5,221 | 7,071 | |
Consumer | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 274 | 416 | 416 |
Provision for loan losses | 12 | 19 | |
Loans charged off | -68 | -128 | |
Recoveries | 26 | 76 | |
Ending balance | 244 | 383 | |
Agriculture | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 319 | 305 | 305 |
Provision for loan losses | 104 | 113 | |
Loans charged off | -33 | -9 | |
Recoveries | 1 | 6 | |
Ending balance | 391 | 415 | |
Other | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning balance | 7 | 6 | 6 |
Provision for loan losses | -8 | 16 | |
Loans charged off | -17 | ||
Recoveries | 16 | 4 | |
Ending balance | $15 | $9 |
Balance_in_Allowance_for_Loan_
Balance in Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | $254 | $752 | |
Collectively evaluated for impairment | 18,343 | 18,612 | |
Total ending allowance balance | 18,597 | 19,364 | |
Loans: | |||
Loans individually evaluated for impairment | 55,299 | 71,993 | |
Loans collectively evaluated for impairment | 577,129 | 553,006 | |
Total ending loans balance | 632,428 | 624,999 | 1,300,000 |
Commercial | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 2 | 33 | |
Collectively evaluated for impairment | 2,044 | 2,013 | |
Total ending allowance balance | 2,046 | 2,046 | |
Loans: | |||
Loans individually evaluated for impairment | 1,677 | 2,022 | |
Loans collectively evaluated for impairment | 75,277 | 58,914 | |
Total ending loans balance | 76,954 | 60,936 | |
Commercial Real Estate | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 51 | 491 | |
Collectively evaluated for impairment | 10,629 | 10,440 | |
Total ending allowance balance | 10,680 | 10,931 | |
Loans: | |||
Loans individually evaluated for impairment | 32,731 | 48,141 | |
Loans collectively evaluated for impairment | 241,286 | 237,903 | |
Total ending loans balance | 274,017 | 286,044 | |
Residential Real Estate | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 200 | 227 | |
Collectively evaluated for impairment | 5,021 | 5,560 | |
Total ending allowance balance | 5,221 | 5,787 | |
Loans: | |||
Loans individually evaluated for impairment | 20,504 | 21,384 | |
Loans collectively evaluated for impairment | 220,229 | 217,785 | |
Total ending loans balance | 240,733 | 239,169 | |
Consumer | |||
Allowance for loan losses: | |||
Individually evaluated for impairment | 1 | 1 | |
Collectively evaluated for impairment | 243 | 273 | |
Total ending allowance balance | 244 | 274 | |
Loans: | |||
Loans individually evaluated for impairment | 32 | 61 | |
Loans collectively evaluated for impairment | 10,799 | 11,286 | |
Total ending loans balance | 10,831 | 11,347 | |
Agriculture | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 391 | 319 | |
Total ending allowance balance | 391 | 319 | |
Loans: | |||
Loans individually evaluated for impairment | 232 | 263 | |
Loans collectively evaluated for impairment | 28,441 | 26,703 | |
Total ending loans balance | 28,673 | 26,966 | |
Other | |||
Allowance for loan losses: | |||
Collectively evaluated for impairment | 15 | 7 | |
Total ending allowance balance | 15 | 7 | |
Loans: | |||
Loans individually evaluated for impairment | 123 | 122 | |
Loans collectively evaluated for impairment | 1,097 | 415 | |
Total ending loans balance | $1,220 | $537 |
Loans_Individually_Evaluated_f
Loans Individually Evaluated for Impairment by Class of Loans (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $72,577 | $93,992 | |
Recorded Investment | 55,299 | 71,993 | |
Allowance For Loan Losses Allocated | 254 | 752 | 2,500 |
Average Recorded Investment | 63,645 | 136,020 | |
Interest Income Recognized | 306 | 689 | |
Cash Basis Income Recognized | 73 | 197 | |
Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 1,677 | 2,022 | |
Commercial Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 32,731 | 48,141 | |
Residential Real Estate | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 20,504 | 21,384 | |
Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 32 | 61 | |
Agriculture | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 232 | 263 | |
Other | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded Investment | 123 | 122 | |
Impaired Financing Receivables with No Related Allowance | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 66,036 | 67,646 | |
Recorded Investment | 48,842 | 48,996 | |
Average Recorded Investment | 48,919 | 109,272 | |
Interest Income Recognized | 228 | 499 | |
Cash Basis Income Recognized | 73 | 197 | |
Impaired Financing Receivables with No Related Allowance | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 2,109 | 2,546 | |
Recorded Investment | 1,664 | 1,978 | |
Average Recorded Investment | 1,821 | 2,679 | |
Interest Income Recognized | 1 | ||
Cash Basis Income Recognized | 1 | ||
Impaired Financing Receivables with No Related Allowance | Commercial Real Estate | Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 4,514 | 4,714 | |
Recorded Investment | 3,938 | 4,100 | |
Average Recorded Investment | 4,019 | 7,433 | |
Interest Income Recognized | 4 | 3 | |
Cash Basis Income Recognized | 1 | ||
Impaired Financing Receivables with No Related Allowance | Commercial Real Estate | Farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 7,064 | 6,636 | |
Recorded Investment | 4,870 | 4,739 | |
Average Recorded Investment | 4,804 | 7,322 | |
Interest Income Recognized | 23 | 17 | |
Cash Basis Income Recognized | 23 | 17 | |
Impaired Financing Receivables with No Related Allowance | Commercial Real Estate | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 34,437 | ||
Recorded Investment | 22,418 | ||
Average Recorded Investment | 58,027 | ||
Interest Income Recognized | 182 | ||
Impaired Financing Receivables with No Related Allowance | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 34,805 | ||
Recorded Investment | 23,421 | ||
Average Recorded Investment | 22,920 | ||
Interest Income Recognized | 65 | ||
Impaired Financing Receivables with No Related Allowance | Residential Real Estate | Multi-Family | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 81 | ||
Recorded Investment | 81 | ||
Average Recorded Investment | 40 | 4,036 | |
Impaired Financing Receivables with No Related Allowance | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 16,813 | 18,496 | |
Recorded Investment | 14,570 | 15,266 | |
Average Recorded Investment | 14,918 | 29,053 | |
Interest Income Recognized | 134 | 286 | |
Cash Basis Income Recognized | 47 | 169 | |
Impaired Financing Receivables with No Related Allowance | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 90 | 93 | |
Recorded Investment | 24 | 29 | |
Average Recorded Investment | 27 | 4 | |
Impaired Financing Receivables with No Related Allowance | Agriculture | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 273 | 276 | |
Recorded Investment | 232 | 263 | |
Average Recorded Investment | 247 | 310 | |
Interest Income Recognized | 3 | ||
Cash Basis Income Recognized | 3 | ||
Impaired Financing Receivables with No Related Allowance | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 368 | 367 | |
Recorded Investment | 123 | 122 | |
Average Recorded Investment | 123 | 408 | |
Interest Income Recognized | 2 | 7 | |
Cash Basis Income Recognized | 2 | 7 | |
Impaired Financing Receivables with An Allowance Recorded | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 6,541 | 26,346 | |
Recorded Investment | 6,457 | 22,997 | |
Allowance For Loan Losses Allocated | 254 | 752 | |
Average Recorded Investment | 14,726 | 26,748 | |
Interest Income Recognized | 78 | 190 | |
Impaired Financing Receivables with An Allowance Recorded | Commercial | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 13 | 145 | |
Recorded Investment | 13 | 44 | |
Allowance For Loan Losses Allocated | 2 | 33 | |
Average Recorded Investment | 29 | 2,218 | |
Interest Income Recognized | 18 | ||
Impaired Financing Receivables with An Allowance Recorded | Commercial Real Estate | Construction | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment | 1,117 | ||
Interest Income Recognized | 6 | ||
Impaired Financing Receivables with An Allowance Recorded | Commercial Real Estate | Farmland | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 658 | ||
Recorded Investment | 315 | ||
Allowance For Loan Losses Allocated | 38 | ||
Average Recorded Investment | 157 | 124 | |
Impaired Financing Receivables with An Allowance Recorded | Commercial Real Estate | Other | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 19,454 | ||
Recorded Investment | 16,569 | ||
Allowance For Loan Losses Allocated | 453 | ||
Average Recorded Investment | 16,564 | ||
Interest Income Recognized | 109 | ||
Impaired Financing Receivables with An Allowance Recorded | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 586 | ||
Recorded Investment | 502 | ||
Allowance For Loan Losses Allocated | 51 | ||
Average Recorded Investment | 8,535 | ||
Interest Income Recognized | 6 | ||
Impaired Financing Receivables with An Allowance Recorded | Residential Real Estate | Multi-Family | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 4,250 | 4,266 | |
Recorded Investment | 4,250 | 4,266 | |
Allowance For Loan Losses Allocated | 84 | 91 | |
Average Recorded Investment | 4,258 | 4,659 | |
Interest Income Recognized | 47 | 37 | |
Impaired Financing Receivables with An Allowance Recorded | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 1,684 | 1,791 | |
Recorded Investment | 1,684 | 1,771 | |
Allowance For Loan Losses Allocated | 116 | 136 | |
Average Recorded Investment | 1,727 | 2,001 | |
Interest Income Recognized | 25 | 19 | |
Impaired Financing Receivables with An Allowance Recorded | Consumer | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 8 | 32 | |
Recorded Investment | 8 | 32 | |
Allowance For Loan Losses Allocated | 1 | 1 | |
Average Recorded Investment | 20 | 65 | |
Interest Income Recognized | $1 |
Types_of_Troubled_Debt_Restruc
Types of Troubled Debt Restructuring Loan Modification by Portfolio Segment Outstanding (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | $37,800 | $42,492 |
Commercial | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 82 | 14 |
Commercial | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 869 | 869 |
Commercial Real Estate | Construction | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 3,504 | 3,647 |
Commercial Real Estate | Farmland | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 2,365 | 2,365 |
Commercial Real Estate | Other | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 22,516 | |
Commercial Real Estate | Other | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 671 | |
Commercial Real Estate | Nonfarm nonresidential | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 18,005 | |
Commercial Real Estate | Nonfarm nonresidential | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 660 | |
Residential Real Estate | Multi-Family | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 4,250 | 4,266 |
Residential Real Estate | 1-4 Family | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 8,057 | 8,112 |
Consumer | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 8 | 32 |
TDRs Performing to Modified Terms | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 18,798 | 21,985 |
TDRs Performing to Modified Terms | Commercial | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 13 | 14 |
TDRs Performing to Modified Terms | Commercial Real Estate | Construction | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 267 | 268 |
TDRs Performing to Modified Terms | Commercial Real Estate | Other | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 8,622 | |
TDRs Performing to Modified Terms | Commercial Real Estate | Other | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 671 | |
TDRs Performing to Modified Terms | Commercial Real Estate | Nonfarm nonresidential | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 5,543 | |
TDRs Performing to Modified Terms | Commercial Real Estate | Nonfarm nonresidential | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 660 | |
TDRs Performing to Modified Terms | Residential Real Estate | Multi-Family | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 4,250 | 4,266 |
TDRs Performing to Modified Terms | Residential Real Estate | 1-4 Family | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 8,057 | 8,112 |
TDRs Performing to Modified Terms | Consumer | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 8 | 32 |
TDRs Not Performing to Modified Terms | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 19,002 | 20,507 |
TDRs Not Performing to Modified Terms | Commercial | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 69 | |
TDRs Not Performing to Modified Terms | Commercial | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 869 | 869 |
TDRs Not Performing to Modified Terms | Commercial Real Estate | Construction | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 3,237 | 3,379 |
TDRs Not Performing to Modified Terms | Commercial Real Estate | Farmland | Principal Deferral | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 2,365 | 2,365 |
TDRs Not Performing to Modified Terms | Commercial Real Estate | Other | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | 13,894 | |
TDRs Not Performing to Modified Terms | Commercial Real Estate | Nonfarm nonresidential | Rate Reduction | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructuring | $12,462 |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDR loan modifications | $0 | $0 | |
TDRs defaulted on restructured loan amount | 0 | 0 | |
Minimum outstanding loan balance for credit risk analysis | 500,000 | ||
Troubled Debt Restructurings Term Modification One | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of Company's TDRs that were performing according to modified terms | 50.00% | 52.00% | |
Reserves to customers whose loan terms have been modified in TDRs outstanding | 253,000 | 579,000 | |
Commitment to lend additional amount to customers with outstanding loans classified as TDRs | $0 | $0 |
Recorded_Investment_in_Nonaccr
Recorded Investment in Nonaccrual and Loans Past due 90 Days and Still on Accrual by Class of Loan (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $36,500 | $47,175 |
Loans Past Due 90 Day And Over Still Accruing | 18 | 151 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,663 | 1,978 |
Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3,671 | 3,831 |
Commercial Real Estate | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 4,871 | 5,054 |
Commercial Real Estate | Nonfarm nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 17,719 | 26,892 |
Residential Real Estate | Multi-Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 80 | |
Residential Real Estate | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 8,197 | 8,925 |
Loans Past Due 90 Day And Over Still Accruing | 151 | |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 24 | 30 |
Loans Past Due 90 Day And Over Still Accruing | 18 | |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 232 | 263 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $123 | $122 |
Aging_of_Recorded_Investment_i
Aging of Recorded Investment in Past Due Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | $4,370 | $3,960 |
60 - 89 Days Past Due | 1,769 | 980 |
90 Days And Over Past Due | 18 | 151 |
Nonaccrual | 36,500 | 47,175 |
Total Past Due And Nonaccrual | 42,657 | 52,266 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 465 | 86 |
60 - 89 Days Past Due | 4 | |
Nonaccrual | 1,663 | 1,978 |
Total Past Due And Nonaccrual | 2,132 | 2,064 |
Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 3,671 | 3,831 |
Total Past Due And Nonaccrual | 3,671 | 3,831 |
Commercial Real Estate | Farmland | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 343 | 400 |
60 - 89 Days Past Due | 230 | 14 |
Nonaccrual | 4,871 | 5,054 |
Total Past Due And Nonaccrual | 5,444 | 5,468 |
Commercial Real Estate | Nonfarm nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 356 | 241 |
60 - 89 Days Past Due | 221 | 318 |
Nonaccrual | 17,719 | 26,892 |
Total Past Due And Nonaccrual | 18,296 | 27,451 |
Residential Real Estate | Multi-Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
60 - 89 Days Past Due | 42 | |
Nonaccrual | 80 | |
Total Past Due And Nonaccrual | 42 | 80 |
Residential Real Estate | 1-4 Family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 2,959 | 3,124 |
60 - 89 Days Past Due | 1,267 | 601 |
90 Days And Over Past Due | 151 | |
Nonaccrual | 8,197 | 8,925 |
Total Past Due And Nonaccrual | 12,423 | 12,801 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 156 | 109 |
60 - 89 Days Past Due | 5 | 47 |
90 Days And Over Past Due | 18 | |
Nonaccrual | 24 | 30 |
Total Past Due And Nonaccrual | 203 | 186 |
Agriculture | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days Past Due | 91 | |
Nonaccrual | 232 | 263 |
Total Past Due And Nonaccrual | 323 | 263 |
Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 123 | 122 |
Total Past Due And Nonaccrual | $123 | $122 |
Risk_Category_of_Loans_by_Clas
Risk Category of Loans by Class of Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | $632,428 | $624,999 | $1,300,000 |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 76,954 | 60,936 | |
Commercial Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 274,017 | 286,044 | |
Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 36,793 | 33,173 | |
Commercial Real Estate | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 77,948 | 77,419 | |
Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 159,276 | 175,452 | |
Residential Real Estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 240,733 | 239,169 | |
Residential Real Estate | Multi-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 43,150 | 41,891 | |
Residential Real Estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 197,583 | 197,278 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 10,831 | 11,347 | |
Agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 28,673 | 26,966 | |
Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 1,220 | 537 | |
Pass | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 480,545 | 461,126 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 67,239 | 49,440 | |
Pass | Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 27,975 | 25,266 | |
Pass | Commercial Real Estate | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 63,761 | 61,672 | |
Pass | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 107,808 | 111,426 | |
Pass | Residential Real Estate | Multi-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 34,093 | 31,526 | |
Pass | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 150,241 | 145,450 | |
Pass | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 9,805 | 10,115 | |
Pass | Agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 18,526 | 25,816 | |
Pass | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 1,097 | 415 | |
Watch | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 76,876 | 68,200 | |
Watch | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 4,422 | 5,063 | |
Watch | Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 3,787 | 2,990 | |
Watch | Commercial Real Estate | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 6,834 | 7,922 | |
Watch | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 26,755 | 21,017 | |
Watch | Residential Real Estate | Multi-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 5,090 | 6,039 | |
Watch | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 19,869 | 23,928 | |
Watch | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 370 | 537 | |
Watch | Agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 9,749 | 704 | |
Special Mention | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 1,110 | 4,189 | |
Special Mention | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 797 | 3,747 | |
Special Mention | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 12 | 131 | |
Special Mention | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 301 | 311 | |
Substandard | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 73,897 | 91,484 | |
Substandard | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 5,293 | 6,433 | |
Substandard | Commercial Real Estate | Construction | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 5,031 | 4,917 | |
Substandard | Commercial Real Estate | Farmland | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 7,353 | 7,825 | |
Substandard | Commercial Real Estate | Nonfarm nonresidential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 23,916 | 39,262 | |
Substandard | Residential Real Estate | Multi-Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 3,967 | 4,326 | |
Substandard | Residential Real Estate | 1-4 Family | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 27,461 | 27,769 | |
Substandard | Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 355 | 384 | |
Substandard | Agriculture | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | 398 | 446 | |
Substandard | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross loans | $123 | $122 |
Major_Categories_of_Other_Real
Major Categories of Other Real Estate Owned (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | $44,110 | $47,263 | ||
Valuation allowance | -492 | -1,066 | -208 | -230 |
Other real estate owned | 43,618 | 46,197 | 45,918 | 30,892 |
Commercial Real Estate | Construction, Land Development and Other Land | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | 18,319 | 18,748 | ||
Commercial Real Estate | Farmland | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | 256 | 669 | ||
Commercial Real Estate | Nonfarm nonresidential | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | 14,592 | 14,860 | ||
Residential Real Estate | Multi-Family | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | 4,700 | 4,988 | ||
Residential Real Estate | 1-4 Family | ||||
Real Estate Properties [Line Items] | ||||
Other Real Estate Owned, Gross | $6,243 | $7,998 |
Other_Real_Estate_Owned_Valuat
Other Real Estate Owned Valuation Allowance Activity (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
SEC Schedule III, Real Estate, Write-down or Reserve [Line Items] | ||
Beginning balance | $1,066 | $230 |
Provision to allowance | 300 | 250 |
Write-downs | -874 | -272 |
Ending balance | $492 | $208 |
Other_Real_Estate_Owned_Additi
Other Real Estate Owned - Additional Information (Detail) (Residential Real Estate, 1-4 Family, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Residential Real Estate | 1-4 Family | ||
Real Estate Properties [Line Items] | ||
Properties in the process of foreclosure | $2.60 | $3.60 |
Net_Activity_Relating_to_Other
Net Activity Relating to Other Real Estate Owned Activity (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Real Estate Properties [Line Items] | ||
OREO as of January 1 | $46,197,000 | $30,892,000 |
Real estate acquired | 347,000 | 17,351,000 |
Valuation adjustment | -300,000 | -250,000 |
Gain/(loss) on sale | 3,000 | |
Proceeds from sale of properties | -2,629,000 | -2,075,000 |
OREO as of March 31 | 43,618,000 | 45,918,000 |
Writedowns | ||
Real Estate Properties [Line Items] | ||
Valuation adjustment | ($300,000) | ($250,000) |
Expenses_Related_to_Other_Real
Expenses Related to Other Real Estate Owned (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Real Estate Properties [Line Items] | |||
Net (gain) loss on sales | ($3) | ||
Provision to allowance | 300 | 250 | |
Operating expense | 436 | 412 | |
Total | $733 | $662 | $5,800 |
Schedule_of_Deposit_Balances_b
Schedule of Deposit Balances by Category (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deposits [Line Items] | ||
Non-interest bearing | $108,011 | $114,910 |
Interest checking | 86,614 | 91,086 |
Money market | 102,349 | 109,734 |
Savings | 36,418 | 36,430 |
Certificates of deposit | 597,117 | 574,681 |
Total deposits | $930,509 | $926,841 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Deposit Liabilities [Line Items] | ||
Time deposits of $250,000 or more | $36.70 | $34.40 |
Scheduled_Maturities_of_All_Ti
Scheduled Maturities of All Time Deposits (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Deposit Liabilities [Line Items] | |
Year 1 | $371,065 |
Year 2 | 161,220 |
Year 3 | 11,268 |
Year 4 | 11,505 |
Year 5 | 42,058 |
Thereafter | 1 |
Time Deposits, Total | $597,117 |
Advances_from_Federal_Home_Loa
Advances from Federal Home Loan Bank (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Monthly amortizing advances with fixed rates from 0.00% to 5.25% and maturities ranging from 2017 through 2033, averaging 2.85% at March 31, 2015 and 1.02% at December 31, 2014 | $3,597 | $15,752 |
Advances_from_Federal_Home_Loa1
Advances from Federal Home Loan Bank (Parenthetical) (Detail) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Advances from federal home loan bank, fixed rate from | 0.00% | |
Advances from federal home loan bank, fixed rate to | 5.25% | |
Advances from federal home loan bank, average rate | 2.85% | 1.02% |
Advances from federal home loan bank, maturities from | 2017 | |
Advances from federal home loan bank, maturities through | 2033 |
Advances_from_Federal_Home_Loa2
Advances from Federal Home Loan Bank - Additional Information (Detail) (Federal Home Loan Bank Advances, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Prepayment Penalty | $0 | $0 |
Additional borrowing capacity with the Federal Home Loan Bank | $23,400,000 | |
Maximum | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
New advances maturity period | 1 year |
Fair_Values_Measurement_Additi
Fair Values Measurement - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value Measurements [Line Items] | |||
Other debt security valuation, coupon rate | 6.50% | ||
Other debt security valuation, estimated current market rate | 8.00% | ||
Impaired loans, carrying amount | $1,900,000 | $15,600,000 | $18,400,000 |
Impaired loans, valuation allowance | 254,000 | 2,500,000 | 752,000 |
Impaired loans, additional provision for loan loss | 0 | 0 | |
Other real estate owned, net carrying amount | 43,600,000 | 45,900,000 | 46,200,000 |
Other real estate owned, write-downs | $300,000 | $250,000 | |
Other real estate owned, net | Routine Real Estate Collateral | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 10.00% | ||
Other real estate owned, net | Thin Trading Market or Specialized Collateral | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 25.00% | ||
Other real estate owned, net | Minimum | |||
Fair Value Measurements [Line Items] | |||
Estimated discounts for cost to sell | 6.00% | ||
Other real estate owned, net | Maximum | |||
Fair Value Measurements [Line Items] | |||
Estimated discounts for cost to sell | 10.00% | ||
Impaired Loans | Routine Real Estate Collateral | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 10.00% | ||
Impaired Loans | Thin Trading Market or Specialized Collateral | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 25.00% | ||
Impaired Loans | Minimum | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 10.00% | ||
Estimated discounts for cost to sell | 6.00% | ||
Impaired Loans | Maximum | |||
Fair Value Measurements [Line Items] | |||
Internal discount rate used in fair value evaluation | 33.00% | ||
Estimated discounts for cost to sell | 10.00% |
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value on Recurring and Non Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $157,290 | $190,791 |
U.S. Government and federal agency | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,025 | 35,443 |
Agency mortgage-backed: residential | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 106,956 | 123,598 |
State and municipal | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,526 | 12,404 |
Corporate bonds | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,118 | 18,688 |
Other | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 665 | 658 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 156,625 | 190,133 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 665 | 658 |
Loans fair value | 622,241 | 615,914 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 157,290 | 190,791 |
Fair Value, Measurements, Recurring | U.S. Government and federal agency | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,025 | 35,443 |
Fair Value, Measurements, Recurring | Agency mortgage-backed: residential | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 106,956 | 123,598 |
Fair Value, Measurements, Recurring | State and municipal | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,526 | 12,404 |
Fair Value, Measurements, Recurring | Corporate bonds | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,118 | 18,688 |
Fair Value, Measurements, Recurring | Other | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 665 | 658 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 156,625 | 190,133 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government and federal agency | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 30,025 | 35,443 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Agency mortgage-backed: residential | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 106,956 | 123,598 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | State and municipal | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 7,526 | 12,404 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Corporate bonds | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 12,118 | 18,688 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 665 | 658 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Other | Debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 665 | 658 |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Commercial Real Estate | Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 18,114 | 18,325 |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Commercial Real Estate | Farmland | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 253 | 654 |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Commercial Real Estate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 14,525 | |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Commercial Real Estate | Nonfarm nonresidential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 14,429 | |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Residential Real Estate | Multi-Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 4,648 | 4,875 |
Fair Value, Measurements, Nonrecurring | Other real estate owned, net | Residential Real Estate | 1-4 Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 6,174 | 7,818 |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 11 | 12 |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Commercial Real Estate | Farmland | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 278 | |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Commercial Real Estate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 15,825 | |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Commercial Real Estate | Nonfarm nonresidential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 162 | |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Residential Real Estate | 1-4 Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 1,568 | 1,635 |
Fair Value, Measurements, Nonrecurring | Impaired Loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 8 | 31 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Commercial Real Estate | Construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 18,114 | 18,325 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Commercial Real Estate | Farmland | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 253 | 654 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Commercial Real Estate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 14,525 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Commercial Real Estate | Nonfarm nonresidential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 14,429 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Residential Real Estate | Multi-Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 4,648 | 4,875 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Other real estate owned, net | Residential Real Estate | 1-4 Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned | 6,174 | 7,818 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 11 | 12 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Commercial Real Estate | Farmland | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 278 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Commercial Real Estate | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 15,825 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Commercial Real Estate | Nonfarm nonresidential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 162 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Residential Real Estate | 1-4 Family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | 1,568 | 1,635 |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Impaired Loans | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans fair value | $8 | $31 |
Reconciliation_of_all_Assets_M
Reconciliation of all Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level 3 (Detail) (Other, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balances of recurring Level 3 assets at January 1 | $658 | $632 |
Included in other comprehensive income (loss) | 7 | 12 |
Balance of recurring Level 3 assets at March 31 | $665 | $644 |
Qualitative_Information_About_
Qualitative Information About Level Three Fair Value Measurements for Financial Instruments Measured at Fair Value on Non-Recurring Basis (Detail) (Fair Value, Measurements, Nonrecurring, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Impaired Loans | Commercial | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $11 | $12 |
Valuation Technique(s) | Market value approach | |
Unobservable Input(s) | Adjustment for receivables and inventory discounts | |
Discount or capitalization rate | 24.00% | 24.00% |
Impaired Loans | Commercial | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount or capitalization rate | 16.00% | 16.00% |
Impaired Loans | Commercial | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Discount or capitalization rate | 32.00% | 32.00% |
Impaired Loans | Commercial Real Estate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 162 | 16,103 |
Adjustment for differences between the comparable sales | 16.00% | 14.00% |
Valuation Technique(s) | Sales comparison approach | |
Unobservable Input(s) | Adjustment for differences between the comparable sales | |
Discount or capitalization rate | 8.00% | 8.00% |
Impaired Loans | Commercial Real Estate | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique(s) | Income approach | |
Unobservable Input(s) | Discount or capitalization rate | |
Impaired Loans | Commercial Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 0.00% | 0.00% |
Discount or capitalization rate | 8.00% | 8.00% |
Impaired Loans | Commercial Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 62.00% | 62.00% |
Discount or capitalization rate | 9.00% | 9.00% |
Impaired Loans | Residential Real Estate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 1,568 | 1,635 |
Adjustment for differences between the comparable sales | 11.00% | 11.00% |
Valuation Technique(s) | Sales comparison approach | |
Unobservable Input(s) | Adjustment for differences between the comparable sales | |
Impaired Loans | Residential Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 0.00% | 0.00% |
Impaired Loans | Residential Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 39.00% | 39.00% |
Other real estate owned, net | Commercial Real Estate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | 32,796 | 33,504 |
Adjustment for differences between the comparable sales | 18.00% | 18.00% |
Valuation Technique(s) | Sales comparison approach | |
Unobservable Input(s) | Adjustment for differences between the comparable sales | |
Discount or capitalization rate | 13.00% | 13.00% |
Other real estate owned, net | Commercial Real Estate | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique(s) | Income approach | |
Unobservable Input(s) | Discount or capitalization rate | |
Other real estate owned, net | Commercial Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 0.00% | 0.00% |
Discount or capitalization rate | 8.00% | 9.00% |
Other real estate owned, net | Commercial Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 45.00% | 45.00% |
Discount or capitalization rate | 20.00% | 20.00% |
Other real estate owned, net | Residential Real Estate | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value | $10,822 | $12,693 |
Adjustment for differences between the comparable sales | 5.00% | 6.00% |
Valuation Technique(s) | Sales comparison approach | |
Unobservable Input(s) | Adjustment for differences between the comparable sales | |
Other real estate owned, net | Residential Real Estate | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 0.00% | 0.00% |
Other real estate owned, net | Residential Real Estate | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Adjustment for differences between the comparable sales | 10.00% | 15.00% |
Carrying_Amount_and_Estimated_
Carrying Amount and Estimated Fair Values of Financial Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Securities available for sale | $157,290 | $190,791 |
Securities held to maturity | 44,895 | 44,498 |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Financial assets | ||
Cash and cash equivalents | 96,168 | 49,007 |
Financial liabilities | ||
Deposits | 108,011 | 114,910 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets | ||
Cash and cash equivalents | 13,603 | 31,173 |
Securities available for sale | 156,625 | 190,133 |
Securities held to maturity | 44,895 | 44,498 |
Loans held for sale | 8,926 | |
Accrued interest receivable | 1,072 | 1,389 |
Financial liabilities | ||
Deposits | 817,396 | 804,508 |
Securities sold under agreements to repurchase | 1,145 | 1,341 |
Federal Home Loan Bank advances | 3,604 | 15,758 |
Accrued interest payable | 606 | 751 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets | ||
Securities available for sale | 665 | 658 |
Loans, net | 622,241 | 615,914 |
Accrued interest receivable | 1,964 | 2,114 |
Financial liabilities | ||
Accrued interest payable | 2,258 | 2,107 |
Significant Unobservable Inputs (Level 3) | Subordinated capital notes | ||
Financial liabilities | ||
Subordinated capital notes | 4,558 | 4,765 |
Significant Unobservable Inputs (Level 3) | Junior subordinated debentures | ||
Financial liabilities | ||
Subordinated capital notes | 14,433 | 14,214 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 109,771 | 80,180 |
Securities available for sale | 157,290 | 190,791 |
Securities held to maturity | 42,263 | 42,325 |
Federal Home Loan Bank stock | 7,323 | 7,323 |
Loans held for sale | 8,926 | |
Loans, net | 613,831 | 605,635 |
Accrued interest receivable | 3,036 | 3,503 |
Financial liabilities | ||
Deposits | 930,509 | 926,841 |
Securities sold under agreements to repurchase | 1,145 | 1,341 |
Federal Home Loan Bank advances | 3,597 | 15,752 |
Accrued interest payable | 2,864 | 2,858 |
Carrying Amount | Subordinated capital notes | ||
Financial liabilities | ||
Subordinated capital notes | 4,725 | 4,950 |
Carrying Amount | Junior subordinated debentures | ||
Financial liabilities | ||
Subordinated capital notes | 25,000 | 25,000 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 109,771 | 80,180 |
Securities available for sale | 157,290 | 190,791 |
Securities held to maturity | 44,895 | 44,498 |
Loans held for sale | 8,926 | |
Loans, net | 622,241 | 615,914 |
Accrued interest receivable | 3,036 | 3,503 |
Financial liabilities | ||
Deposits | 925,407 | 919,418 |
Securities sold under agreements to repurchase | 1,145 | 1,341 |
Federal Home Loan Bank advances | 3,604 | 15,758 |
Accrued interest payable | 2,864 | 2,858 |
Fair Value | Subordinated capital notes | ||
Financial liabilities | ||
Subordinated capital notes | 4,558 | 4,765 |
Fair Value | Junior subordinated debentures | ||
Financial liabilities | ||
Subordinated capital notes | $14,433 | $14,214 |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carry-forward | $32,067 | $32,111 |
Allowance for loan losses | 6,509 | 6,777 |
Other real estate owned write-down | 9,899 | 10,000 |
Alternative minimum tax credit carry-forward | 692 | 692 |
Net assets from acquisitions | 670 | 668 |
Other than temporary impairment on securities | 46 | 46 |
New market tax credit carry-forward | 208 | 208 |
Nonaccrual loan interest | 847 | 958 |
Amortization of non-compete agreements | 13 | 14 |
Other | 1,873 | 1,371 |
Deferred Tax Assets, Gross, Total | 52,824 | 52,845 |
Deferred tax liabilities: | ||
FHLB stock dividends | 928 | 928 |
Fixed assets | 248 | 264 |
Originated mortgage servicing rights | 48 | 53 |
Net unrealized gain on securities | 530 | 579 |
Other | 668 | 373 |
Deferred Tax Liabilities, Net, Total | 2,422 | 2,197 |
Net deferred tax assets before valuation allowance | 50,402 | 50,648 |
Valuation allowance | -50,402 | -50,648 |
Net deferred tax asset | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Income tax benefit | $0 | $0 | $1,600,000 |
Interest and penalties | $0 | $0 |
Stock_Plans_and_Stock_Based_Co2
Stock Plans and Stock Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted shares terminated | 538,479 | |
Stock-based compensation | $49,000 | $133,000 |
Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 49,000 | |
Unvested Shares | Employee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of unvested shares issued | 712,000 | |
Fair value of unvested shares issued per weighted-average share | $0.89 | |
Service Based Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
New service-based restricted shares issued | 800,000 | |
Incremental compensation expense after modification | 233,000 | |
2006 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 1,563,050 | |
Unvested shares issued, net of forfeitures and vesting | 1,056,243 | |
Shares remaining available for issue | 271,890 | |
2006 Stock Incentive Plan | Unvested Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years | |
2006 Stock Incentive Plan | Unvested Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 10 years | |
2006 Non-Employee Directors Stock Ownership Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unvested shares issued, net of forfeitures and vesting | 5,052 | |
Shares remaining available for issue | 301,512 | |
Restricted shares award, fair market value | $25,000 | |
Unvested shares issued, net of forfeitures and vesting, issued | 5,052 | |
2006 Non-Employee Directors Stock Ownership Incentive Plan | Amendment | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares authorized | 700,000 |
Summary_of_Unvested_Share_Acti
Summary of Unvested Share Activity (Detail) (Unvested Shares, Stock Incentive Plan, USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Unvested Shares | Stock Incentive Plan | ||
Shares | ||
Outstanding, beginning | 770,440 | 787,426 |
Granted | 800,000 | 122,220 |
Vested | -63,063 | -133,227 |
Terminated | -450,994 | |
Forfeited | -140 | -5,979 |
Outstanding, ending | 1,056,243 | 770,440 |
Weighted Average Grant Price | ||
Outstanding, beginning | $1.33 | $1.56 |
Granted | $0.89 | $0.93 |
Vested | $2 | $2.20 |
Terminated | $1.25 | |
Forfeited | $22.03 | $4.21 |
Outstanding, ending | $0.99 | $1.33 |
Summary_of_Unvested_Share_Acti1
Summary of Unvested Share Activity for Non-Employee Directors (Detail) (Unvested Shares, Non Employee Director, USD $) | 12 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2015 | |
Unvested Shares | Non Employee Director | ||
Shares | ||
Outstanding, beginning | 47,428 | 5,052 |
Granted | 166,668 | |
Vested | -154,222 | |
Forfeited | -54,822 | |
Outstanding, ending | 5,052 | 5,052 |
Weighted Average Exercise Price | ||
Outstanding, beginning | $1.69 | $1.65 |
Granted | $0.90 | |
Vested | $0.98 | |
Forfeited | $1.29 | |
Outstanding, ending | $1.65 | $1.65 |
Unrecognized_Stock_Based_Compe
Unrecognized Stock Based Compensation Expense Related to Unvested Shares (Detail) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
April 2015 - December 2015 | $282 |
2016 | 263 |
2017 | 158 |
2018 | 149 |
2019 & thereafter | $0 |
Computation_of_Basic_and_Dilut
Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income (loss) | $594 | ($287) | ($11,200) | |
Less: | ||||
Earnings (loss) allocated to unvested shares | 185 | -97 | 3,200 | |
Net income (loss) attributable to common shareholders | 409 | -976 | 19,400 | -3,400 |
Basic | ||||
Weighted average common shares outstanding | 17,493,397 | 12,021,313 | ||
Basic income (loss) per common share | $0.02 | ($0.08) | ||
Diluted | ||||
Add: Dilutive effects of assumed exercises of common stock warrants | 0 | 0 | ||
Weighted average common shares and potential common shares | 17,493,397 | 12,021,313 | ||
Diluted loss per common share | $0.02 | ($0.08) | ||
Unvested Shares | ||||
Less: | ||||
Earnings (loss) allocated to unvested shares | 21 | -70 | ||
Basic | ||||
Weighted average common shares including unvested common shares outstanding | 25,419,523 | 13,210,930 | ||
Weighted average common shares outstanding | 918,393 | 856,723 | ||
Preferred Stock Dividends | ||||
Less: | ||||
Preferred stock dividends | 786 | |||
Series B Preferred Stock | ||||
Basic | ||||
Weighted average common shares outstanding | 2,702,400 | |||
Series C Preferred Stock | ||||
Basic | ||||
Weighted average common shares outstanding | 332,894 | |||
Series D Preferred Stock | ||||
Basic | ||||
Weighted average common shares outstanding | 4,305,333 | |||
Preferred Stock | ||||
Less: | ||||
Earnings (loss) allocated to unvested shares | 164 | -27 | ||
Common Stock | ||||
Less: | ||||
Net income (loss) attributable to common shareholders | $409 | ($976) |
Earnings_Loss_per_Share_Additi
Earnings (Loss) per Share - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Common Stock | ||
Earnings Per Share Disclosure [Line Items] | ||
Warrant exercise price | $15.88 | $15.88 |
Nonvoting Common Stock | ||
Earnings Per Share Disclosure [Line Items] | ||
Warrant exercise price | $10.95 | $10.95 |
Warrant | Common Stock | ||
Earnings Per Share Disclosure [Line Items] | ||
Shares/warrants of common stock not considered in computing diluted earnings per share | 330,561 | 330,561 |
Warrant | Nonvoting Common Stock | ||
Earnings Per Share Disclosure [Line Items] | ||
Shares/warrants of common stock not considered in computing diluted earnings per share | 650,544 | 1,449,459 |
Capital_Requirements_and_Restr2
Capital Requirements and Restrictions on Retained Earnings - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Oct. 31, 2012 | Jun. 24, 2011 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Maximum asset for opt-out requirement in capital calculation | $250,000,000,000 | |||
Tier I leverage ratio, regulatory minimum | 4.00% | 4.00% | ||
Total risk-based capital, regulatory minimum | 8.00% | 8.00% | ||
Tier 1 leverage ratio | 4.13% | 4.51% | ||
Total risk-based capital | 10.05% | 10.61% | ||
PBI Bank | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier I leverage ratio, regulatory minimum | 4.00% | 4.00% | ||
Tier 1 leverage ratio | 5.84% | 5.78% | ||
Total risk-based capital | 10.25% | |||
Consent order | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Tier I leverage ratio, regulatory minimum | 9.00% | 9.00% | ||
Total risk-based capital, regulatory minimum | 12.00% | 12.00% | ||
Minimum substandard asset subject to risk position reduction | $1,000,000 | |||
Maximum asset growth rate, quarterly | 5.00% | |||
Maximum asset growth rate, annually | 10.00% | |||
Consent order | Construction and development loans | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Maximum concentration of loans to total risk based capital | 75.00% | 75.00% | ||
Consent order | Non-owner occupied commercial real estate loans | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Maximum concentration of loans to total risk based capital | 250.00% |
Ratios_and_Amounts_of_Common_E
Ratios and Amounts of Common Equity Tier One, Tier One Capital and Total Capital to Risk-Adjusted Assets and Leverage Ratios (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, actual amount | $70,949 | $73,595 |
Total common equity tier I risk-based capital to risk-weighted assets, actual amount | 33,232 | |
Tier I capital to risk-weighted assets, actual amount | 41,513 | 46,459 |
Tier I capital to average assets, actual amount | 41,513 | 46,459 |
Total risk-based capital to risk-weighted assets, actual ratio | 10.05% | 10.61% |
Total common equity tier I risk-based capital to risk-weighted assets, actual ratio | 4.71% | |
Tier I capital to risk-weighted assets, actual ratio | 5.88% | 6.70% |
Tier I capital to average assets, actual ratio | 4.13% | 4.51% |
Total risk-based capital to risk-weighted assets, for capital adequacy purposes, amount | 56,459 | 55,483 |
Total common equity tier I risk-based capital to risk-weighted assets, for capital adequacy purposes, amount | 31,758 | |
Tier I capital to risk-weighted assets, for capital adequacy purposes, amount | 42,344 | 27,741 |
Tier I capital to average assets, for capital adequacy purposes, amount | 40,209 | 41,193 |
Total risk-based capital to risk-weighted assets, for capital adequacy purposes, ratio | 8.00% | 8.00% |
Total common equity tier I risk-based capital to risk-weighted assets, for capital adequacy purposes, ratio | 4.50% | |
Tier I capital to risk-weighted assets, for capital adequacy purposes, ratio | 6.00% | 4.00% |
Tier I capital to average assets, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Porter Bancorp and PBI Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, actual amount | 72,335 | 73,174 |
Total common equity tier I risk-based capital to risk-weighted assets, actual amount | 58,672 | |
Total risk-based capital to risk-weighted assets, actual ratio | 10.25% | 10.57% |
Total common equity tier I risk-based capital to risk-weighted assets, actual ratio | 8.32% | |
Total risk-based capital to risk-weighted assets, for capital adequacy purposes, amount | 56,435 | 55,383 |
Total common equity tier I risk-based capital to risk-weighted assets, for capital adequacy purposes, amount | 31,745 | |
Total risk-based capital to risk-weighted assets, for capital adequacy purposes, ratio | 8.00% | 8.00% |
Total common equity tier I risk-based capital to risk-weighted assets, for capital adequacy purposes, ratio | 4.50% | |
Porter Bancorp | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier I capital to risk-weighted assets, actual amount | 58,672 | 59,438 |
Tier I capital to risk-weighted assets, actual ratio | 8.32% | 8.59% |
Tier I capital to risk-weighted assets, for capital adequacy purposes, amount | 42,326 | 27,691 |
Tier I capital to risk-weighted assets, for capital adequacy purposes, ratio | 6.00% | 4.00% |
PBI Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total risk-based capital to risk-weighted assets, actual amount | 72,335 | |
Tier I capital to average assets, actual amount | 58,672 | 59,438 |
Total risk-based capital to risk-weighted assets, actual ratio | 10.25% | |
Tier I capital to average assets, actual ratio | 5.84% | 5.78% |
Tier I capital to average assets, for capital adequacy purposes, amount | $40,212 | $41,143 |
Tier I capital to average assets, for capital adequacy purposes, ratio | 4.00% | 4.00% |
Consent_Order_to_Achieve_the_M
Consent Order to Achieve the Minimum Capital Ratios (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Reconciliation of Stockholders' Equity to Regulatory Capital [Line Items] | ||
Total capital to risk-weighted assets | $70,949 | $73,595 |
Total capital to risk-weighted assets | 10.05% | 10.61% |
Tier I capital to average assets | 4.13% | 4.51% |
PBI Bank | ||
Reconciliation of Stockholders' Equity to Regulatory Capital [Line Items] | ||
Total capital to risk-weighted assets | 72,335 | |
Tier I capital to average assets | 58,672 | |
Total capital to risk-weighted assets | 10.25% | |
Tier I capital to average assets | 5.84% | 5.78% |
Total capital to risk-weighted assets | 84,652 | |
Tier I capital to average assets | $90,476 | |
Total capital to risk-weighted assets | 12.00% | |
Tier I capital to average assets | 9.00% | |
PBI Bank | Tier I | ||
Reconciliation of Stockholders' Equity to Regulatory Capital [Line Items] | ||
Tier I capital to average assets | 5.84% |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |
Dec. 26, 2013 | Jun. 18, 2010 | Mar. 31, 2015 | Jul. 16, 2013 | Jun. 30, 2009 | Dec. 31, 2012 | |
Plaintiff | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Accrued contingent liabilities | $2,200,000 | |||||
Laws affected | Plaintiffs asserted claims of fraud, breach of fiduciary duty, breach of the duty of good faith and fair dealing, tortious interference with prospective business advantage and conspiracy to commit fraud, negligence, and conspiracy against the Bank. | |||||
Number of Plaintiffs | 3 | |||||
Original release of obligations | 26,000,000 | |||||
Loss Contingency damage sought by plaintiff, description | The plaintiff seeks damages in an amount in excess of $4,500,000, or the difference between the $5,000,016 purchase price and the value of the securities when sold by the plaintiff, plus interest at the applicable statutory rate, costs and reasonable attorneys' fees. | |||||
Alleged imprudent and disloyal purchase of company stock | 40,000,000 | |||||
Alleged approved seller financing percentage | 100.00% | |||||
Compensatory Damages | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Damages awarded to plaintiffs | 1,515,000 | |||||
Punitive Damages | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Damages awarded to plaintiffs | 5,500,000 | |||||
AIT Laboratories Employee Stock Ownership Plan | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
ESOP purchase of all stock of AIT Holding Company | 90,000,000 | |||||
Minimum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Loss contingency damage sought by plaintiff | 4,500,000 | |||||
Maximum | ||||||
Commitments and Contingencies Disclosure [Line Items] | ||||||
Loss contingency damage sought by plaintiff | $5,000,016 |