Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'BCAR | ' |
Entity Registrant Name | 'Bank of the Carolinas CORP | ' |
Entity Central Index Key | '0001365997 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 3,895,840 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, except Share data, unless otherwise specified | |||
Assets: | ' | ' | |
Cash and due from banks, noninterest-bearing | $12,846 | $12,778 | [1] |
Interest-bearing deposits in banks | 2,209 | 2,064 | [1] |
Cash and cash equivalents | 15,055 | 14,842 | [1] |
Federal funds sold | 24,755 | 19,580 | [1] |
Investment securities | 90,558 | 90,315 | [1] |
Loans receivable | 277,869 | 278,510 | [1] |
Less: Allowance for loan losses | -7,111 | -6,015 | [1] |
Loans, net | 270,758 | 272,495 | [1] |
Premises and equipment | 11,190 | 11,274 | [1] |
Other real estate owned | 2,092 | 1,233 | [1] |
Bank owned life insurance | 10,973 | 10,888 | [1] |
Deferred tax assets | ' | ' | [1] |
Accrued interest receivable | 1,092 | 1,156 | [1] |
Other assets | 1,574 | 1,867 | [1] |
Total Assets | 428,047 | 423,650 | [1] |
Deposits: | ' | ' | |
Noninterest-bearing demand deposits | 33,914 | 35,243 | [1] |
Interest-checking deposits | 42,651 | 40,939 | [1] |
Savings and money market deposits | 112,080 | 109,419 | [1] |
Time deposits | 181,045 | 180,549 | [1] |
Total deposits | 369,690 | 366,150 | [1] |
Securities sold under agreements to repurchase | 45,722 | 45,388 | [1] |
Subordinated debt | 7,855 | 7,855 | [1] |
Other liabilities | 2,791 | 2,509 | [1] |
Total Liabilities | 426,058 | 421,902 | [1] |
Commitments and contingencies (Note 6) | ' | ' | [1] |
Stockholders' Equity: | ' | ' | |
Preferred stock, no par value | 13,179 | 13,179 | [1] |
Discount on preferred stock | -16 | -100 | [1] |
Common stock, $5 per share par value | 19,479 | 19,479 | [1] |
Additional paid-in capital | 12,991 | 12,991 | [1] |
Retained deficit | -40,028 | -38,422 | [1] |
Accumulated other comprehensive loss | -3,616 | -5,379 | [1] |
Total Stockholders' Equity | 1,989 | 1,748 | [1] |
Total Liabilities and Stockholders' Equity | 428,047 | 423,650 | [1] |
Preferred shares authorized | 3,000,000 | 3,000,000 | [1] |
Preferred shares issued | 13,179 | 13,179 | [1] |
Preferred shares outstanding | 13,179 | 13,179 | [1] |
Unaccrued preferred stock dividend | $2,059 | $1,894 | [1] |
Common shares authorized | 15,000,000 | 15,000,000 | [1] |
Common shares issued | 3,895,840 | 3,895,840 | [1] |
Common shares outstanding | 3,895,840 | 3,895,840 | [1] |
[1] | Derived from audited consolidated financial statements. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
Preferred stock, par value | ' | ' | [1] |
Common stock, par value | $5 | $5 | [1] |
[1] | Derived from audited consolidated financial statements. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income | ' | ' |
Interest and fees on loans | $3,193 | $3,216 |
Interest on securities | 538 | 589 |
Other interest income | 18 | 14 |
Total interest income | 3,749 | 3,819 |
Interest expense | ' | ' |
Interest on deposits | 527 | 621 |
Interest on borrowed funds | 557 | 557 |
Total interest expense | 1,084 | 1,178 |
Net interest income | 2,665 | 2,641 |
Provision for loan losses | 1,062 | -1,146 |
Net interest income after provision for loan losses | 1,603 | 3,787 |
Noninterest income | ' | ' |
Customer service fees | 291 | 281 |
Increase in value of bank owned life insurance | 85 | 87 |
Gains on sales of investment securities | ' | ' |
Other income (loss) | 14 | -2 |
Total noninterest income | 390 | 366 |
Noninterest expense | ' | ' |
Salaries and benefits | 1,590 | 1,598 |
Occupancy and equipment | 472 | 452 |
FDIC insurance assessments | 363 | 367 |
Data processing services | 261 | 269 |
Valuation provisions and net operating costs associated with foreclosed real estate | 39 | 365 |
Other | 790 | 668 |
Total noninterest expense | 3,515 | 3,719 |
Income (loss) before income taxes | -1,522 | 434 |
Provision for income taxes | ' | 297 |
Net income (loss) | -1,522 | 137 |
Dividends and accretion on preferred stock | -249 | -243 |
Net loss available to common stockholders | ($1,771) | ($106) |
Loss per common share: | ' | ' |
Basic | ($0.45) | ($0.03) |
Diluted | ($0.45) | ($0.03) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Net income (loss) | ($1,522) | $137 |
Other comprehensive income (loss): | ' | ' |
Unrealized holding gains (losses) on securities available for sale | 1,763 | -380 |
Reclassification adjustment for gains realized in net income (loss) | ' | ' |
Income tax effect | ' | 146 |
Total other comprehensive income (loss), net of income tax effect | 1,763 | -234 |
Total comprehensive income (loss) | $241 | ($97) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | ($1,522) | $137 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | |
Provision for loan losses | 1,062 | -1,146 | |
Deferred tax expense | ' | 297 | |
Depreciation and amortization | 168 | 174 | |
Change in valuation allowance on other real estate owned | ' | 349 | |
(Gain) loss on sale of other real estate owned | 11 | -47 | |
Loss on disposal of premises and equipment | ' | 8 | |
Increase in bank owned life insurance | -85 | -87 | |
Net amortization/accretion of premiums and discounts on investments | 95 | 143 | |
Net change in other assets | 218 | 502 | |
Net change in other liabilities | 281 | -42 | |
Net cash provided by operating activities | 228 | 288 | |
Cash flows from investing activities: | ' | ' | |
Net change in federal funds sold | -5,175 | 2,440 | |
Purchases of premises and equipment | -84 | -22 | |
Proceeds from sales, calls, maturities and principal repayments of securities available for sale | 1,425 | 6,742 | |
Redemption of FHLB stock | 140 | 205 | |
Proceeds from sales of other real estate owned | 202 | 1,116 | |
Net (increase) decrease in loans | -397 | 1,832 | |
Net cash provided (used) by investing activities | -3,889 | 12,313 | |
Cash flows from financing activities: | ' | ' | |
Net increase (decrease) in deposits | 3,540 | -6,505 | |
Net increase in repurchase agreements | 334 | 1,138 | |
Cash dividends paid on preferred stock | ' | ' | |
Net cash provided (used) by financing activities | 3,874 | -5,367 | |
Net increase in cash and cash equivalents | 213 | 7,234 | |
Cash and cash equivalents at beginning of period | 14,842 | [1] | 7,786 |
Cash and cash equivalents at end of period | 15,055 | 15,020 | |
Supplemental disclosure of cash flow information: | ' | ' | |
Cash paid during the period for interest | 1,021 | 1,123 | |
Noncash investing and financing activities: | ' | ' | |
Change in fair value of securities available for sale | 1,764 | -380 | |
Transfer from loans to other real estate owned | $1,072 | $326 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Preferred Stock | Discount on Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Deficit | Accumulated Other Comprehensive Income (Loss) | |
In Thousands, except Share data | ||||||||
Beginning Balance at Dec. 31, 2012 | $9,065 | $13,179 | ($419) | $19,479 | $12,991 | ($36,748) | $583 | |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 13,179 | ' | 3,895,840 | ' | ' | ' | |
Net income | 137 | ' | ' | ' | ' | 137 | ' | |
Other comprehensive income (loss) | -234 | ' | ' | ' | ' | ' | -234 | |
Discount accretion on preferred stock | ' | ' | 78 | ' | ' | -78 | ' | |
Dividends accrued on preferred stock | ' | ' | ' | ' | ' | ' | ' | |
Ending Balance at Mar. 31, 2013 | 8,968 | 13,179 | -341 | 19,479 | 12,991 | -36,689 | 349 | |
Ending Balance (in shares) at Mar. 31, 2013 | ' | 13,179 | ' | 3,895,840 | ' | ' | ' | |
Beginning Balance at Dec. 31, 2013 | 1,748 | [1] | 13,179 | -100 | 19,479 | 12,991 | -38,422 | -5,379 |
Beginning Balance (in shares) at Dec. 31, 2013 | ' | 13,179 | ' | 3,895,840 | ' | ' | ' | |
Net income | -1,522 | ' | ' | ' | ' | -1,522 | ' | |
Other comprehensive income (loss) | 1,763 | ' | ' | ' | ' | ' | 1,763 | |
Discount accretion on preferred stock | ' | ' | 84 | ' | ' | -84 | ' | |
Dividends accrued on preferred stock | ' | ' | ' | ' | ' | ' | ' | |
Ending Balance at Mar. 31, 2014 | $1,989 | $13,179 | ($16) | $19,479 | $12,991 | ($40,028) | ($3,616) | |
Ending Balance (in shares) at Mar. 31, 2014 | ' | 13,179 | ' | 3,895,840 | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2014 | |
BASIS OF PRESENTATION | ' |
NOTE 1. BASIS OF PRESENTATION | |
In the opinion of management, the financial information included in these unaudited financial statements reflects all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial information as of March 31, 2014 and December 31, 2013 and for the three-month periods ended March 31, 2014 and 2013, in conformity with accounting principles generally accepted in the United States of America. | |
The preparation of financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the amounts of income and expense during the reporting period. Actual results could differ from those estimates. Operating results for the three-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. | |
The results presented here are for Bank of the Carolinas Corporation (“the Company”), the parent company of Bank of the Carolinas (“the Bank”). The organization and business of the Company, accounting policies followed by the Company and other relevant information are contained in the notes to the financial statements filed as part of the Company’s annual report on Form 10-K for the year ended December 31, 2013. This quarterly report should be read in conjunction with the annual report. Because the Company has no separate operations and conducts no business on its own other than owning the Bank, this discussion concerns primarily the business of the Bank. However, because the financial statements are presented on a consolidated basis, the Company and the Bank are collectively referred to as “the Company” unless otherwise noted. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
EARNINGS PER SHARE | ' | ||||||||
NOTE 2. EARNINGS PER SHARE | |||||||||
Basic earnings (loss) per share represents income (loss) available to common stockholders divided by the weighted average number of common shares outstanding during the period. When applicable, the weighted average shares outstanding for the diluted earnings per share computations are adjusted to reflect the assumed conversion of shares available under stock options using the treasury stock method. | |||||||||
Earnings (loss) per share have been computed based on the following (dollars in thousands): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net loss applicable to common stockholders | $ | (1,771 | ) | $ | (106 | ) | |||
Weighted average number of common shares outstanding | 3,895,840 | 3,895,840 | |||||||
Weighted average number of diluted common shares outstanding | 3,895,840 | 3,895,840 | |||||||
Common stock options and common stock warrants - anti-dilutive | 497,605 | 497,605 | |||||||
The common stock warrants referred to above were issued to the United States Treasury in connection with the Company’s April 17, 2009 participation in the Capital Purchase Program, which was authorized as a part of the TARP legislation passed by Congress during 2008. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||
NOTE 3. INVESTMENT SECURITIES | |||||||||||||||||||||||||
The amortized cost, estimated fair values and carrying values of the investment securities portfolios at the indicated dates are summarized as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Carrying | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Government agencies securities | $ | 43,749 | $ | 70 | $ | 2,267 | $ | 41,552 | $ | 41,552 | |||||||||||||||
State and municipal bonds | 11,143 | 6 | 604 | 10,545 | 10,545 | ||||||||||||||||||||
Mortgage-backed securities | 38,282 | 44 | 865 | 37,461 | 37,461 | ||||||||||||||||||||
Total investment securities available for sale | 93,174 | 120 | 3,736 | 89,558 | 89,558 | ||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||
Corporate securities | 1,000 | — | 180 | 820 | 1,000 | ||||||||||||||||||||
Total investment securities | $ | 94,174 | $ | 120 | $ | 3,916 | $ | 90,378 | $ | 90,558 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Carrying | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Government agencies securities | $ | 44,077 | $ | 87 | $ | 3,234 | $ | 40,930 | $ | 40,930 | |||||||||||||||
State and municipal bonds | 11,159 | — | 978 | 10,181 | 10,181 | ||||||||||||||||||||
Mortgage-backed securities | 39,458 | 34 | 1,288 | 38,204 | 38,204 | ||||||||||||||||||||
Total investment securities available for sale | 94,694 | 121 | 5,500 | 89,315 | 89,315 | ||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||
Corporate securities | 1,000 | — | 180 | 820 | 1,000 | ||||||||||||||||||||
Total investment securities | $ | 95,694 | $ | 121 | $ | 5,680 | $ | 90,135 | $ | 90,315 | |||||||||||||||
Management of the Bank believes all unrealized losses on available for sale securities as of March 31, 2014 represent temporary impairments related to market fluctuations. The unrealized losses on our securities are a nominal portion of the total value of the portfolio. The Bank has no intention of selling these securities before their maturity and has the appropriate sources of liquidity to hold these securities until maturity in order to minimize the likelihood that recognized losses will occur. | |||||||||||||||||||||||||
The fair values of securities with unrealized losses at March 31, 2014 and December 31, 2013 are as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Temporarily impaired securities: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
U.S. Government agency securities | $ | 36,457 | $ | 1,893 | $ | 3,612 | $ | 374 | $ | 40,069 | $ | 2,267 | |||||||||||||
State and municipal bonds | 6,582 | 421 | 2,846 | 183 | 9,428 | 604 | |||||||||||||||||||
Mortgage-backed securities | 32,437 | 865 | — | — | 32,437 | 865 | |||||||||||||||||||
Corporate securities | — | — | 820 | 180 | 820 | 180 | |||||||||||||||||||
Total | $ | 75,476 | $ | 3,179 | $ | 7,278 | $ | 737 | $ | 82,754 | $ | 3,916 | |||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Temporarily impaired securities: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
U.S. Government agency securities | $ | 35,679 | $ | 2,731 | $ | 3,482 | $ | 503 | $ | 39,161 | $ | 3,234 | |||||||||||||
State and municipal bonds | 7,835 | 723 | 2,346 | 255 | 10,181 | 978 | |||||||||||||||||||
Mortgage-backed securities | 34,564 | 1,287 | 528 | 1 | 35,092 | 1,288 | |||||||||||||||||||
Corporate securities | — | — | 820 | 180 | 820 | 180 | |||||||||||||||||||
Total | $ | 78,078 | $ | 4,741 | $ | 7,176 | $ | 939 | $ | 85,254 | $ | 5,680 | |||||||||||||
LOANS
LOANS | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 4. LOANS | |||||||||||||||||||||||||||||||||||||||||
The loan portfolio as of the dates indicated is summarized below (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential, 1-4 family | $ | 87,034 | $ | 84,855 | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 116,027 | 117,463 | |||||||||||||||||||||||||||||||||||||||
Construction and development | 22,744 | 27,049 | |||||||||||||||||||||||||||||||||||||||
Home equity | 27,541 | 28,217 | |||||||||||||||||||||||||||||||||||||||
Total real estate loans | 253,346 | 257,584 | |||||||||||||||||||||||||||||||||||||||
Commercial business and other loans | 20,605 | 17,428 | |||||||||||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||||||||||
Installment | 3,010 | 2,554 | |||||||||||||||||||||||||||||||||||||||
Other | 908 | 944 | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | 3,918 | 3,498 | |||||||||||||||||||||||||||||||||||||||
Gross loans receivable | 277,869 | 278,510 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (7,111 | ) | (6,015 | ) | |||||||||||||||||||||||||||||||||||||
Loans, net | $ | 270,758 | $ | 272,495 | |||||||||||||||||||||||||||||||||||||
Impaired loans, segregated by class of loans, are summarized as follows as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||
Balance | Investment | Recognized | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 979 | $ | 1,175 | $ | — | $ | 1,205 | $ | 17 | $ | 1,099 | $ | 1,305 | $ | — | $ | 1,384 | $ | 79 | |||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 2,431 | 2,738 | — | 2,819 | 37 | 3,480 | 4,062 | — | 4,365 | 239 | |||||||||||||||||||||||||||||||
Income producing | 3,534 | 3,701 | — | 3,713 | 42 | 3,734 | 3,887 | — | 3,938 | 183 | |||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other | 1,512 | 1,852 | — | 1,868 | 26 | 1,545 | 1,881 | — | 1,981 | 112 | |||||||||||||||||||||||||||||||
Farmland | 135 | 156 | — | 193 | 4 | 252 | 273 | — | 340 | 26 | |||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 147 | 153 | — | 153 | 2 | 95 | 101 | — | 105 | 3 | |||||||||||||||||||||||||||||||
1 - 4 Family | 4,674 | 5,088 | — | 5,393 | 64 | 5,632 | 6,198 | — | 6,281 | 322 | |||||||||||||||||||||||||||||||
Junior Liens | 193 | 216 | — | 217 | 3 | 196 | 218 | — | 223 | 12 | |||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 67 | 67 | — | 68 | 1 | 68 | 68 | — | 70 | 4 | |||||||||||||||||||||||||||||||
Total loans with no allowance | $ | 13,672 | $ | 15,146 | $ | — | $ | 15,629 | $ | 196 | $ | 16,101 | $ | 17,993 | $ | — | $ | 18,687 | $ | 980 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 1,242 | $ | 1,242 | $ | 24 | $ | 1,260 | $ | 11 | $ | 1,205 | $ | 1,205 | $ | 25 | $ | 1,282 | $ | 45 | |||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 3,796 | 3,796 | 92 | 3,807 | 39 | 3,666 | 3,666 | 77 | 3,727 | 166 | |||||||||||||||||||||||||||||||
Income producing | 7,231 | 7,286 | 750 | 7,318 | 92 | 7,287 | 7,343 | 126 | 7,465 | 382 | |||||||||||||||||||||||||||||||
Multifamily | 1,215 | 1,248 | 82 | 1,255 | 11 | 1,226 | 1,259 | 12 | 1,273 | 45 | |||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 357 | 363 | 7 | 365 | 5 | 360 | 366 | 8 | 371 | 19 | |||||||||||||||||||||||||||||||
Other | 3,170 | 3,170 | 732 | 3,175 | 28 | 3,176 | 3,181 | 107 | 3,224 | 118 | |||||||||||||||||||||||||||||||
Farmland | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
1 - 4 Family | 7,019 | 7,037 | 211 | 7,062 | 71 | 6,778 | 6,795 | 204 | 6,893 | 279 | |||||||||||||||||||||||||||||||
Junior Liens | 336 | 338 | 3 | 339 | 5 | 339 | 341 | 4 | 345 | 19 | |||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 7 | 7 | — | 8 | — | 8 | 8 | — | 11 | — | |||||||||||||||||||||||||||||||
Total loans with an allowance | $ | 24,373 | $ | 24,487 | $ | 1,901 | $ | 24,589 | $ | 262 | $ | 24,045 | $ | 24,164 | $ | 563 | $ | 24,591 | $ | 1,073 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 2,221 | $ | 2,417 | $ | 24 | $ | 2,465 | $ | 28 | $ | 2,304 | $ | 2,510 | $ | 25 | $ | 2,666 | $ | 124 | |||||||||||||||||||||
Commercial Real Estate | $ | 18,207 | $ | 18,769 | $ | 924 | $ | 18,912 | $ | 221 | $ | 19,393 | $ | 20,217 | $ | 215 | $ | 20,768 | $ | 1,015 | |||||||||||||||||||||
Construction & Development | $ | 5,174 | $ | 5,541 | $ | 739 | $ | 5,601 | $ | 63 | $ | 5,333 | $ | 5,701 | $ | 115 | $ | 5,916 | $ | 275 | |||||||||||||||||||||
Residential | $ | 12,369 | $ | 12,832 | $ | 214 | $ | 13,164 | $ | 145 | $ | 13,040 | $ | 13,653 | $ | 208 | $ | 13,847 | $ | 635 | |||||||||||||||||||||
Consumer - Non Real Estate | $ | 74 | $ | 74 | $ | — | $ | 76 | $ | 1 | $ | 76 | $ | 76 | $ | — | $ | 81 | $ | 4 | |||||||||||||||||||||
Totals | $ | 38,045 | $ | 39,633 | $ | 1,901 | $ | 40,218 | $ | 458 | $ | 40,146 | $ | 42,157 | $ | 563 | $ | 43,278 | $ | 2,053 | |||||||||||||||||||||
Impaired loans include loans whose contractual terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties. Troubled debt restructurings (TDRs) are a subset of impaired loans and totaled $36.0 million at March 31, 2014 and $37.5 million at December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
The following tables illustrate TDR information for the three months ended March 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | Number of | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | 1 | $ | 61 | $ | 61 | ||||||||||||||||||||||||||||||||||||
Commercial - Real Estate | 1 | 22 | 22 | ||||||||||||||||||||||||||||||||||||||
Construction & Development | — | — | — | ||||||||||||||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | — | — | — | ||||||||||||||||||||||||||||||||||||||
Totals | 2 | $ | 83 | $ | 83 | ||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | Number of | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | 1 | $ | 32 | $ | 32 | ||||||||||||||||||||||||||||||||||||
Commercial - Real Estate | 1 | 238 | 238 | ||||||||||||||||||||||||||||||||||||||
Construction & Development | — | — | — | ||||||||||||||||||||||||||||||||||||||
Residential | 2 | 293 | 293 | ||||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | — | — | — | ||||||||||||||||||||||||||||||||||||||
Totals | 4 | $ | 563 | $ | 563 | ||||||||||||||||||||||||||||||||||||
For the purposes of this report, default is defined as being 90-days past due or on non-accrual status without performance. There were no loans restructured in the twelve months prior to March 31, 2014 and 2013 that went into default during the three-month periods ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||||||||||
Some loan modifications classified as TDRs may not ultimately result in the full collection of principal and interest, as modified, and may result in potential incremental losses. These potential incremental losses have been factored into our overall allowance for loan losses estimate. The level of any re-defaults will likely be affected by future economic conditions. Once a loan becomes a TDR, it will continue to be reported as a TDR until it is ultimately repaid in full, reclassified to loans held for sale, or foreclosed and sold. Included in the allowance for loan losses at March 31, 2014 and 2013 was an impairment reserve for TDRs in the amount of $1.2 million and $746,000, respectively. | |||||||||||||||||||||||||||||||||||||||||
Non-accrual loans and an age analysis of past due loans, segregated by class of loans, were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days | Total | Current | Total | 90 Days | Non-accrual | ||||||||||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | and Still | ||||||||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 218 | $ | — | $ | 105 | $ | 323 | $ | 20,282 | $ | 20,605 | $ | — | $ | 291 | |||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 104 | — | — | 104 | 56,630 | 56,734 | — | 629 | |||||||||||||||||||||||||||||||||
Income producing | — | — | 325 | 325 | 51,338 | 51,663 | — | 325 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 7,630 | 7,630 | — | — | |||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | 1,761 | 1,761 | — | — | |||||||||||||||||||||||||||||||||
Other | 2,433 | — | 240 | 2,673 | 17,899 | 20,572 | — | 2,999 | |||||||||||||||||||||||||||||||||
Farmland | — | — | 136 | 136 | 275 | 411 | — | 136 | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 168 | — | 75 | 243 | 27,298 | 27,541 | — | 147 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 175 | — | 173 | 348 | 85,633 | 85,981 | — | 772 | |||||||||||||||||||||||||||||||||
Junior Liens | — | — | 26 | 26 | 1,027 | 1,053 | — | 52 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 16 | 3 | — | 19 | 2,991 | 3,010 | — | 6 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | 908 | 908 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 3,114 | $ | 3 | $ | 1,080 | $ | 4,197 | $ | 273,672 | $ | 277,869 | $ | — | $ | 5,357 | |||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days | Total | Current | Total | 90 Days | Non-accrual | ||||||||||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | and Still | ||||||||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 46 | $ | — | $ | 154 | $ | 200 | $ | 17,228 | $ | 17,428 | $ | — | $ | 463 | |||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | — | 77 | 684 | 761 | 57,154 | 57,915 | — | 1,689 | |||||||||||||||||||||||||||||||||
Income producing | — | — | 503 | 503 | 51,297 | 51,800 | — | 503 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 7,748 | 7,748 | — | — | |||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | 1,745 | 1,745 | — | — | |||||||||||||||||||||||||||||||||
Other | 158 | — | 240 | 398 | 24,375 | 24,773 | — | 599 | |||||||||||||||||||||||||||||||||
Farmland | — | — | 252 | 252 | 279 | 531 | — | 252 | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 75 | 9 | — | 84 | 28,133 | 28,217 | — | 95 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 157 | 242 | 355 | 754 | 82,995 | 83,749 | — | 1,128 | |||||||||||||||||||||||||||||||||
Junior Liens | — | — | 26 | 26 | 1,080 | 1,106 | — | 53 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 1 | 2 | — | 3 | 2,551 | 2,554 | — | 6 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | 944 | 944 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 437 | $ | 330 | $ | 2,214 | $ | 2,981 | $ | 275,529 | $ | 278,510 | $ | — | $ | 4,788 | |||||||||||||||||||||||||
The Bank categorizes loans and leases 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, among other factors. This categorization is made on all commercial, commercial real estate, and construction and development loans. The Bank uses the following definitions for risk ratings: | |||||||||||||||||||||||||||||||||||||||||
Pass – Loans and leases classified as pass should be performing relatively close to expectations, with adequate evidence that the borrower is continuing to generate adequate cash flow to service debt. There should be no significant departure from the intended source and timing of repayment, and there should be no undue reliance on secondary sources of repayment. To the extent that some variance exists in one or more criteria being measured, it may be offset by the relative strength of other factors and/or collateral pledged to secure the transaction. | |||||||||||||||||||||||||||||||||||||||||
Special Mention - Loans and leases classified as special mention, while still adequately protected by the borrower’s capital adequacy and payment capability, exhibit distinct weakening trends and/or elevated levels of exposure to external conditions. If left unchecked or uncorrected, these potential weaknesses may result in deteriorated prospects of repayment. These exposures require management’s close attention so as to avoid becoming undue or unwarranted credit exposures. | |||||||||||||||||||||||||||||||||||||||||
Substandard - Loans and leases classified as substandard are inadequately protected by the borrower’s current financial condition and payment capability or of the collateral pledged, if any. Loans and leases so classified have a well-defined weakness or weaknesses that jeopardize the orderly repayment of debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||||||||||
Doubtful - Loans and leases classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or orderly repayment in full, on the basis of current existing facts, conditions and values, highly questionable and improbable. Possibility of loss is extremely high, but because of certain important and reasonably specific factors that may work to the advantage and strengthening of the exposure, its classification as an estimated loss is deferred until its more exact status may be determined. The Company’s practice is to charge-off the portion of the loan amount determined to be doubtful in the quarter that the determination is made if the repayment of the loan is collateral dependent. | |||||||||||||||||||||||||||||||||||||||||
Loss - Loans and leases classified as loss are considered to be non-collectible and of such little value that their continuance as bankable assets is not warranted. This does not mean the loan has absolutely no recovery value, but rather it is neither practical nor desirable to defer writing off the loan, even though partial recovery may be obtained in the future. Losses are taken in the period in which they surface as uncollectible. | |||||||||||||||||||||||||||||||||||||||||
Commercial loans that do not require individual analysis as part of the above described process are considered to be pass-rated loans. As of March 31, 2014 and December 31, 2013, and based on the most recent analysis performed, the loans and leases were categorized as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating Grades | Pass | Special | Substandard | Doubtful | Loss | ||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 16,715 | $ | 3,004 | $ | 886 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 47,957 | 4,325 | 4,452 | — | — | ||||||||||||||||||||||||||||||||||||
Income producing | 34,048 | 11,705 | 5,910 | — | — | ||||||||||||||||||||||||||||||||||||
Multifamily | 5,827 | 1,803 | — | — | — | ||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 1,159 | 245 | 357 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 14,320 | 1,936 | 4,316 | — | — | ||||||||||||||||||||||||||||||||||||
Farmland | 275 | — | 136 | — | — | ||||||||||||||||||||||||||||||||||||
Totals | $ | 120,301 | $ | 23,018 | $ | 16,057 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 16,715 | $ | 3,004 | $ | 886 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 87,832 | $ | 17,833 | $ | 10,362 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Construction & Development | $ | 15,754 | $ | 2,181 | $ | 4,809 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Totals | $ | 120,301 | $ | 23,018 | $ | 16,057 | $ | — | $ | — | |||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating Grades | Pass | Special | Substandard | Doubtful | Loss | ||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 13,289 | $ | 3,157 | $ | 982 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 47,207 | 6,009 | 4,699 | — | — | ||||||||||||||||||||||||||||||||||||
Income producing | 33,875 | 10,501 | 7,424 | — | — | ||||||||||||||||||||||||||||||||||||
Multifamily | 5,925 | 1,823 | — | — | — | ||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 1,133 | 252 | 360 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 17,122 | 3,265 | 4,386 | — | — | ||||||||||||||||||||||||||||||||||||
Farmland | 279 | — | 252 | — | — | ||||||||||||||||||||||||||||||||||||
Totals | $ | 118,830 | $ | 25,007 | $ | 18,103 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 13,289 | $ | 3,157 | $ | 982 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 87,007 | $ | 18,333 | $ | 12,123 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Construction & Development | $ | 18,534 | $ | 3,517 | $ | 4,998 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Totals | $ | 118,830 | $ | 25,007 | $ | 18,103 | $ | — | $ | — | |||||||||||||||||||||||||||||||
All consumer-related loans, including residential real estate and non-real estate, are evaluated and monitored based upon payment activity. Once a consumer-related loan becomes past due on a recurring basis, the Company will pull that loan out of the homogenized pool and evaluate it individually for impairment. At this time, the consumer-related loan may be placed on the Company’s internal watch list and risk rated either special mention or substandard, depending upon the individual circumstances. Consumer-related loans at March 31, 2014 and December 31, 2013, segregated by class of loans, were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Risk Based on Payment Activity | Performing | Non- | Performing | Non- | |||||||||||||||||||||||||||||||||||||
Performing | Performing | ||||||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | $ | 27,394 | $ | 147 | $ | 28,122 | $ | 95 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 85,518 | 463 | 83,092 | 657 | |||||||||||||||||||||||||||||||||||||
Junior Liens | 1,027 | 26 | 1,080 | 26 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | |||||||||||||||||||||||||||||||||||||||||
Credit Cards | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | 3,004 | 6 | 2,548 | 6 | |||||||||||||||||||||||||||||||||||||
Totals | $ | 116,943 | $ | 642 | $ | 114,842 | $ | 784 | |||||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Residential | $ | 113,939 | $ | 636 | $ | 112,294 | $ | 778 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | $ | 3,004 | $ | 6 | $ | 2,548 | $ | 6 | |||||||||||||||||||||||||||||||||
Totals | $ | 116,943 | $ | 642 | $ | 114,842 | $ | 784 | |||||||||||||||||||||||||||||||||
ALLOWANCE_FOR_LOAN_LOSSES
ALLOWANCE FOR LOAN LOSSES | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 5. ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||||||||||||||
The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance is necessary to reserve for, in the judgment of management, estimated loan losses and risks inherent in the loan portfolio. The Company’s allowance for loan loss methodology includes allowance allocations calculated in accordance with ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Accordingly, the methodology is based on historical loss experience by type of credit and internal risk grade, specific homogeneous risk pools and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the allowance for loan losses is designed to account for credit deterioration as it occurs. The provision for loan losses reflects loan quality trends, including the levels of and trends related to non-accrual loans, past due loans, potential problem loans, criticized loans and net charge-offs or recoveries, among other factors. The provision for loan losses also reflects the totality of actions taken on all loans for a particular period. In other words, the amount of the provision reflects not only the necessary increases in the allowance for loan losses related to newly identified criticized loans, but it also reflects actions taken related to other loans including, among other things, any necessary increases or decreases in required allowances for specific loans. | |||||||||||||||||||||||||||||||||||||||||
The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including, among other things, the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. | |||||||||||||||||||||||||||||||||||||||||
The Company’s allowance for loan losses consists of three elements: (i) specific valuation allowances determined in accordance with accounting principles regarding receivables based on probable losses on specific loans; (ii) historical valuation allowances determined in accordance with accounting principles regarding contingencies based on historical loan loss experience for similar loans with similar characteristics and trends, adjusted, as necessary, to reflect the impact of current conditions; and (iii) general valuation allowances determined in accordance with accounting principles regarding contingencies based on general economic conditions and other qualitative risk factors both internal and external to the Company. | |||||||||||||||||||||||||||||||||||||||||
Historical valuation allowances are calculated based on the historical loss experience of specific types of loans at the time they were charged-off. The Company calculates historical loss ratios for pools of similar loans with similar characteristics based on the proportion of actual charge-offs experienced to the total population of loans in the pool. The historical loss ratios are periodically updated based on actual charge-off experience. A historical valuation allowance is established for each pool of similar loans based upon the product of the historical loss ratio and the total dollar amount of the loans in the pool. The Company’s pools of similar loans include commercial and industrial loans, commercial real estate loans, construction and development loans, residential real estate loans, and consumer and other loans. General valuation allowances are based on general economic conditions and other qualitative risk factors both internal and external to the Company. In general, such valuation allowances are determined by evaluating, among other things: (i) levels and trends in delinquencies and impaired loans; (ii) levels of and trends in charge-offs and recoveries; (iii) levels of non-impaired substandard loans; (iv) trends in volume and terms of loans; (v) effects of changes in risk selection and underwriting practices; (vi) experience, ability, and depth of lending management and staff; (vii) national and local economic trends and conditions; (viii) industry conditions; and (ix) effect of changes in credit concentrations. Management evaluates the degree of risk that each one of these components has on the quality of the loan portfolio on a quarterly basis. Loans identified as losses by management, internal loan review and/or regulatory examiners are charged-off. | |||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment, since their respective year-end, are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Beginning | Chargeoffs | Recoveries | Provision | Ending | Beginning | Chargeoffs | Recoveries | Provision | Ending | ||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 176 | $ | (48 | ) | $ | 80 | $ | (8 | ) | $ | 200 | $ | 1,209 | $ | (9 | ) | $ | 1,290 | $ | (1,855 | ) | $ | 635 | |||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 1,224 | — | 4 | (49 | ) | 1,179 | 1,359 | (216 | ) | 12 | 325 | 1,480 | |||||||||||||||||||||||||||||
Income producing | 831 | — | — | 626 | 1,457 | 773 | (21 | ) | 20 | (1 | ) | 771 | |||||||||||||||||||||||||||||
Multifamily | 50 | — | — | 69 | 119 | 78 | — | — | (9 | ) | 69 | ||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 52 | — | — | (16 | ) | 36 | 78 | (5 | ) | — | 8 | 81 | |||||||||||||||||||||||||||||
Other | 580 | — | 2 | 526 | 1,108 | 728 | — | 2 | (61 | ) | 669 | ||||||||||||||||||||||||||||||
Farmland | 3 | — | — | — | 3 | — | (8 | ) | — | 9 | 1 | ||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 332 | (59 | ) | 2 | (9 | ) | 266 | 314 | (198 | ) | 10 | 238 | 364 | ||||||||||||||||||||||||||||
1 - 4 Family | 1,218 | (8 | ) | 62 | (72 | ) | 1,200 | 1,267 | (126 | ) | 3 | 93 | 1,237 | ||||||||||||||||||||||||||||
Consumer - Non Real Estate | 44 | (8 | ) | 7 | 8 | 51 | 98 | (11 | ) | 11 | (6 | ) | 92 | ||||||||||||||||||||||||||||
Unallocated | 1,505 | — | — | (13 | ) | 1,492 | 986 | — | — | 113 | 1,099 | ||||||||||||||||||||||||||||||
Total | $ | 6,015 | $ | (123 | ) | $ | 157 | $ | 1,062 | $ | 7,111 | $ | 6,890 | $ | (594 | ) | $ | 1,348 | $ | (1,146 | ) | $ | 6,498 | ||||||||||||||||||
As of March 31, 2014 and December 31, 2013, loans were evaluated for impairment as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Allowance | Total Loans | Allowance | Total Loans | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 24 | $ | 2,221 | $ | 25 | $ | 2,304 | |||||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 92 | 6,227 | 77 | 7,146 | |||||||||||||||||||||||||||||||||||||
Income producing | 750 | 10,765 | 126 | 11,021 | |||||||||||||||||||||||||||||||||||||
Multifamily | 82 | 1,215 | 12 | 1,226 | |||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 7 | 357 | 8 | 360 | |||||||||||||||||||||||||||||||||||||
Other | 732 | 4,682 | 107 | 4,721 | |||||||||||||||||||||||||||||||||||||
Farmland | — | 135 | — | 252 | |||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | — | 147 | — | 95 | |||||||||||||||||||||||||||||||||||||
1 - 4 Family | 211 | 11,693 | 208 | 12,945 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 3 | 529 | — | 76 | |||||||||||||||||||||||||||||||||||||
Unallocated | — | 74 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,901 | $ | 38,045 | $ | 563 | $ | 40,146 | |||||||||||||||||||||||||||||||||
Collectively Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Allowance | Total Loans | Allowance | Total Loans | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 176 | $ | 18,384 | $ | 151 | $ | 15,124 | |||||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 1,087 | 50,507 | 1,147 | 50,769 | |||||||||||||||||||||||||||||||||||||
Income producing | 707 | 40,898 | 705 | 40,779 | |||||||||||||||||||||||||||||||||||||
Multifamily | 37 | 6,415 | 38 | 6,522 | |||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 29 | 1,404 | 44 | 1,385 | |||||||||||||||||||||||||||||||||||||
Other | 376 | 15,890 | 473 | 20,052 | |||||||||||||||||||||||||||||||||||||
Farmland | 3 | 276 | 3 | 279 | |||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 266 | 27,394 | 332 | 28,122 | |||||||||||||||||||||||||||||||||||||
1 - 4 Family | 989 | 75,341 | 1,010 | 71,910 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 48 | 2,481 | 44 | 2,478 | |||||||||||||||||||||||||||||||||||||
Unallocated | 1,492 | 834 | 1,505 | 944 | |||||||||||||||||||||||||||||||||||||
Total | $ | 5,210 | $ | 239,824 | $ | 5,452 | $ | 238,364 | |||||||||||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
NOTE 6. COMMITMENTS AND CONTINGENCIES | |||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements. | |||||
The Company’s risk of loss related to unfunded loan commitments and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Company uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The following table presents a summary of outstanding financial instruments whose contract amounts represent credit risk as of March 31, 2014 (dollars in thousands): | |||||
Unfunded loan commitments | $ | 31,682 | |||
Financial standby letters of credit | 121 | ||||
Total unused commitments | $ | 31,803 | |||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2014 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
NOTE 7. RECENT ACCOUNTING PRONOUNCEMENTS | |
In January 2013, the FASB issued Accounting Standards Update 2013-01, Balance Sheet (Topic 210). The amendments in this Update affect entities that have derivatives accounted for in accordance with Topic 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in Update 2011-11. The amendments clarify the intended scope of the disclosures required by Section 210-20-50. The FASB concluded that the clarified scope will reduce significantly the operability concerns expressed by preparers while still providing decision-useful information about certain transactions involving master netting arrangements. The amendments provide a user of financial statements with comparable information as it relates to certain reconciling differences between financial statements prepared in accordance with U.S. GAAP and those financial statements prepared in accordance with International Financial Reporting Standards (IFRS). An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11. The amendments have not had a significant impact on the Company. | |
In February 2013, the FASB issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220). The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. Substantially all of the information that this Update requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. However, the new requirement about presenting information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income will present, in one place, information about significant amounts reclassified and, in some cases, cross-references to related footnote disclosures. Currently, this information is presented in different places throughout the financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The amendments have not had a significant impact on the Company. | |
In February 2013, the FASB issued Accounting Standards Update 2013-03, Financial Instruments (Topic 825). The amendments clarify that the requirement to disclose “the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)” does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position but for which fair value is disclosed. The amendments have not had a significant impact on the Company. | |
In April 2013, the FASB issued Accounting Standards Update 2013-07, Presentation of Financial Statements (Topic 205). The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. | |
The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). | |
An entity should recognize and measure its liabilities in accordance with U.S. GAAP that otherwise applies to those liabilities. The entity should not anticipate that it will be legally released from being the primary obligor under those liabilities, either judicially or by creditor(s). The entity also is required to accrue and separately present the costs that it expects to incur and the income that it expects to earn during the expected duration of the liquidation, including any costs associated with sale or settlement of those assets and liabilities. | |
Additionally, the amendments require disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The amendments are not expected to have a significant impact on the Company. | |
In July 2013, the FASB issued Accounting Standards Update 2013-11, Income Taxes (Topic 740). An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. | |
The amendments in this Update do not require new recurring disclosures. The amendments are not expected to have a significant impact on the Company. | |
In January 2014, the FASB issued Accounting Standards Update 2014-02, Intangibles – Goodwill and Other (Topic 350). The amendments in this Update allow an accounting alternative for the subsequent measurement of goodwill. An entity within the scope of the amendments that elects the accounting alternative in this Update should amortize goodwill on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. An entity that elects the accounting alternative is further required to make an accounting policy election to test goodwill for impairment at either the entity level or the reporting unit level. Goodwill should be tested for impairment when a triggering event occurs that indicates that the fair value of an entity (or a reporting unit) may be below its carrying amount. When a triggering event occurs, an entity has the option to first assess qualitative factors to determine whether the quantitative impairment test is necessary. If that qualitative assessment indicates that it is more likely than not that goodwill is impaired, the entity must perform the quantitative test to compare the entity’s fair value with its carrying amount, including goodwill (or the fair value of the reporting unit with the carrying amount, including goodwill, of the reporting unit). If the qualitative assessment indicates that it is not more likely than not that goodwill is impaired, further testing is unnecessary. | |
The goodwill impairment loss, if any, represents the excess of the carrying amount of the entity over its fair value (or the excess of the carrying amount of the reporting unit over the fair value of the reporting unit). The goodwill impairment loss cannot exceed the entity’s (or the reporting unit’s) carrying amount of goodwill. The disclosures required under this alternative are similar to existing U.S. generally accepted accounting principles (GAAP). However, an entity that elects the accounting alternative is not required to present changes in goodwill in a tabular reconciliation. | |
The accounting alternative, if elected, should be applied prospectively to goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted, including application to any period for which the entity’s annual or interim financial statements have not yet been made available for issuance. The amendments are not expected to have a significant impact on the Company. | |
In January 2014, the FASB issued Accounting Standards Update 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. | |
The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The amendments are not expected to have a significant impact on the Company. | |
From time to time the FASB issues Proposed Accounting Standards Updates. Such proposed updates are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as Accounting Standards Updates. Management considers the effect of the proposed updates on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of proposed updates. |
FAIR_VALUE
FAIR VALUE | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
FAIR VALUE | ' | ||||||||||||||||
NOTE 8. FAIR VALUE | |||||||||||||||||
Accounting principles generally accepted in the United States of America require that companies measure and record certain assets and liabilities at fair value and record any adjustments to the fair value of those assets. Securities are recorded at fair value on a recurring basis while other assets, such as impaired loans, are recorded at fair value on a non-recurring basis. | |||||||||||||||||
The Company uses three levels of measurement to group those assets measured at fair value. These groupings are made based on the markets the assets are traded in and the reliability of the assumptions used to determine fair value. The groupings include: | |||||||||||||||||
• | Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 – observable inputs other than the quoted prices included in Level 1. | ||||||||||||||||
• | Level 3 – unobservable inputs. | ||||||||||||||||
Investment Securities – The Company’s investment securities are measured on a recurring basis through a model used by our bond agent. All of our bond price adjustments meet level 2 criteria. Prices are derived from a model which uses actively quoted rates, prepayment models and other underlying credit and collateral data. | |||||||||||||||||
Impaired Loans – The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Impaired loans are recorded at fair value less estimated selling costs. Once a loan is identified as individually impaired, the Company measures impairment. Fair values of impaired loans are generally estimated using one of several methods, including collateral value, liquidation value, discounted cash flows and, in rare cases, the market value of the note. Those impaired loans not requiring an allowance represent loans for which the net present value of the expected cash flows or fair value of the collateral less costs to sell exceed the recorded investments in such loans. At March 31, 2014 and December 31, 2013, a majority of the total impaired loans were evaluated based on the fair value of the collateral. When the fair value of the collateral is based on an executed sales contract with an independent third party, the Company records the impaired loans as nonrecurring Level 1. If the collateral is based on another observable market price or a current appraised value, the Company records the impaired loans as nonrecurring Level 2. When an appraised value is not available or the Company determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. Impaired loans can also be evaluated for impairment using the present value of expected future cash flows discounted at the loan’s effective interest rate. The measurement of impaired loans using future cash flows discounted at the loan’s effective interest rate rather than the market rate of interest is not a fair value measurement and is therefore excluded from fair value disclosure requirements. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly. | |||||||||||||||||
Other Real Estate Owned – Properties acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying value or the new fair value less estimated selling costs. Fair value is generally based upon current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for selling costs. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the asset as nonrecurring Level 2. However, the Company also considers other factors or recent developments which could result in adjustments to the collateral value estimates indicated in the appraisals such as changes in absorption rates or market conditions from the time of valuation. In situations where an appraisal less estimated selling costs is used to determine fair value, management adjustments are significant to the fair value measurements, or other means are used to estimate fair value in the absence of an appraisal, the Company records the impaired loan as nonrecurring Level 3 within the valuation hierarchy. | |||||||||||||||||
The following table summarizes the Company’s assets measured at fair value at the dates indicated (dollars in thousands): | |||||||||||||||||
At March 31, 2014 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets valued on a recurring basis | |||||||||||||||||
Investment securities: | |||||||||||||||||
U.S. government and agency | $ | 41,552 | $ | — | $ | 41,552 | $ | — | |||||||||
State and municipals | 10,545 | — | 10,545 | — | |||||||||||||
Mortgage-backed | 37,461 | — | 37,461 | — | |||||||||||||
Assets valued on a non-recurring basis | |||||||||||||||||
Impaired loans | 36,144 | — | — | 36,144 | |||||||||||||
Other real estate owned | 2,092 | — | — | 2,092 | |||||||||||||
Total | $ | 127,794 | $ | — | $ | 89,558 | $ | 38,236 | |||||||||
At December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets valued on a recurring basis | |||||||||||||||||
Investment securities: | |||||||||||||||||
U.S. government and agency | $ | 40,930 | $ | — | $ | 40,930 | $ | — | |||||||||
State and municipals | 10,181 | — | 10,181 | — | |||||||||||||
Mortgage-backed | 38,204 | — | 38,204 | — | |||||||||||||
Assets valued on a non-recurring basis | |||||||||||||||||
Impaired loans | 39,583 | — | — | 39,583 | |||||||||||||
Other real estate owned | 1,233 | — | — | 1,233 | |||||||||||||
Total | $ | 130,131 | $ | — | $ | 89,315 | $ | 40,816 | |||||||||
BORROWED_FUNDS
BORROWED FUNDS | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
BORROWED FUNDS | ' | ||||||||||||||||||||
NOTE 9. BORROWED FUNDS | |||||||||||||||||||||
A summary of the Company’s outstanding borrowings and the annual rate of interest currently payable on each category is presented in the following table at the dates indicated (dollars in thousands): | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Outstanding | Annual | Outstanding | Annual | ||||||||||||||||||
Balance | Interest Rate | Balance | Interest Rate | ||||||||||||||||||
Securities sold under overnight repurchase agreements | $ | 722 | 0.15 | % | $ | 388 | 0.14 | % | |||||||||||||
Securities sold under term repurchase agreements | 45,000 | 4.38 | 45,000 | 4.38 | |||||||||||||||||
Trust preferred securities | 5,155 | 3.2 | 5,155 | 3.19 | |||||||||||||||||
Subordinated debt | 2,700 | 4 | 2,700 | 4 | |||||||||||||||||
Total borrowed funds | $ | 53,577 | 4.19 | % | $ | 53,243 | 4.21 | % | |||||||||||||
The Bank engages from time-to-time in federal funds purchases from upstream correspondent institutions to meet temporary funding needs. There were none of these transactions outstanding at the close of either period presented in the above table. | |||||||||||||||||||||
The Bank had a total of $45.0 million of borrowings in the form of securities sold under term repurchase agreements that were entered into during 2008. These borrowings are secured by marketable investment securities equal to approximately 109.5% of the principal balances outstanding plus accrued interest and the value of an imbedded interest rate cap. The following table contains certain pertinent information with respect to these agreements at March 31, 2014 (dollars in thousands): | |||||||||||||||||||||
Outstanding | Annual | Final | Beginning | Collateral | |||||||||||||||||
Principal | Effective | Maturity | Quarterly | Requirement | |||||||||||||||||
Balance | Interest Rate | Date | Call Dates | ||||||||||||||||||
Agreement dated 7/8/2008 | $ | 25,000 | 4.85 | % | 7/8/18 | 7/8/13 | $ | 6,761 | |||||||||||||
Agreement dated 8/20/2008 | 20,000 | 3.78 | 8/20/15 | 8/20/11 | 3,447 | ||||||||||||||||
Total | $ | 45,000 | 4.38 | % | $ | 10,208 | |||||||||||||||
The Bank utilizes borrowings from the Federal Home Loan Bank (“FHLB”) as a source of liquidity. At March 31, 2014, the Bank had immediately available credit of $7.3 million. There were no advances from the FHLB at quarter-end. | |||||||||||||||||||||
During 2008, the Company issued $5.2 million of junior subordinated debentures to its wholly owned capital trust, Bank of the Carolinas Trust I (the “Trust”), which, in turn, issued $5.0 million in trust preferred securities having a like liquidation amount and $155,000 in common securities (all common securities are owned by the Company). The Company has fully and unconditionally guaranteed the Trust’s obligations related to the trust preferred securities. The Trust has the right to redeem the trust preferred securities in whole or in part at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest. | |||||||||||||||||||||
In addition, the Trust may redeem the trust preferred securities in whole (but not in part) at any time within 90 days following the occurrence of a tax event, an investment company event, or a capital treatment event at a special redemption price (as defined in the debenture). Interest is payable quarterly on the trust preferred securities at the annual rate of 90-day LIBOR plus 300 basis points. In February 2011, the Company announced its election to defer its regularly scheduled interest payments on the junior subordinated debentures related to the trust preferred securities. Furthermore, the Company is party to a written agreement with the Federal Reserve, which restricts the Company’s ability to make interest payments on subordinated debt, as described below. | |||||||||||||||||||||
The Company also has issued $2.7 million of subordinated debt in a private transaction with another financial institution. This subordinated note has a floating interest rate equal to 75 basis points over the Prime Rate published by Wall Street Journal and a maturity date of August 13, 2018. This debt can be repaid in full at any time with no penalty. | |||||||||||||||||||||
Under the terms of a written agreement between the Company and the Federal Reserve Bank of Richmond, the Company and the Trust may not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Federal Reserve Bank of Richmond and the Director of the Division of Banking Supervision and Regulation of the Federal Reserve Board of Governors. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2014 | |
STOCKHOLDERS' EQUITY | ' |
NOTE 10. STOCKHOLDERS’ EQUITY | |
Preferred Stock: | |
The Company has 3.0 million shares of preferred stock authorized. There were 13,179 shares of preferred stock issued and outstanding with a $1,000 per share liquidation preference on March 31, 2014 and December 31, 2013. All of the shares were issued on April 17, 2009 in connection with the Company’s participation in the U.S. Treasury’s TARP Capital Purchase Program. | |
In February 2011, the Company notified the Treasury of its intent to defer the payment of its regular quarterly cash dividend on its Series A Preferred Stock sold to the Treasury. In addition, the Company has entered into a written agreement with the Federal Reserve Bank of Richmond, which prohibits the Company’s payment of any dividends without the prior approval of the Federal Reserve Bank of Richmond and the Director of the Division of Banking Supervision and Regulation of the Federal Reserve Board of Governors. | |
At March 31, 2014 and December 31, 2012, the cumulative amount of dividends in arrears not declared was $2.1 million and $1.9 million, respectively. | |
Common Stock: | |
The Company has 15.0 million shares of $5 par value common stock authorized. There were 3,895,840 shares of common stock issued and outstanding at March 31, 2014 and December 31, 2013, respectively. | |
Warrants: | |
In connection with the issuance of the preferred shares under the U.S. Treasury’s TARP Capital Purchase Program, the Company issued the U.S. Treasury a warrant to purchase 475,204 shares of its common stock for $4.16 per share. The warrant expires April 17, 2019. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
INCOME TAXES | ' |
NOTE 11. INCOME TAXES | |
The Company utilizes the liability method of computing income taxes. Under the liability method, deferred tax liabilities and assets are established for future tax return effects of the temporary differences between the stated value of assets and liabilities for financial reporting purposes and their tax bases. The focus is on accruing the appropriate balance sheet deferred tax amount, with the statement of income effect being the result of the changes in the balance sheet amounts from period to period. The current portion of income tax expense is provided based upon the actual tax liability incurred for tax return purposes. | |
An evaluation of the probability of being able to realize the future benefits of deferred tax assets is made. A valuation allowance is provided for the deferred tax asset when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Management has established a deferred tax asset valuation allowance of $17.6 million and $17.7 as of March 31, 2014 and December 31, 2013, respectively. The valuation allowance has been established because management believes current overall credit trends, as well as actual and forecasted performance, raise significant concern over the ability of the Company to realize the components of its deferred tax assets relating to net operating losses and the allowances for losses on loans and OREO. |
GOING_CONCERN
GOING CONCERN | 3 Months Ended |
Mar. 31, 2014 | |
GOING CONCERN | ' |
NOTE 12. GOING CONCERN | |
Going Concern Considerations | |
The consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. It is the responsibility of management to assess the Company’s ability to continue as a going concern. In making this assessment, the Company has taken into account all available information about the future, which is at least, but is not limited to, twelve months from the balance sheet date of March 31, 2014. The Company had a history of profitable operations prior to 2008 and sufficient sources of liquidity to meet its short-term and long-term funding needs. | |
The effects of the 2007 – 2009 recession were felt across many industries, with financial services and real estate being particularly hard-hit. The Bank, with a loan portfolio consisting of a concentration in commercial real estate loans, including residential construction and development loans, saw a decline in the value of the collateral securing its portfolio as well as rapid deterioration in its borrowers’ cash flow and ability to repay their outstanding loans to the Bank. As a result, the Bank’s level of nonperforming assets increased substantially during 2010 and 2011. During 2012, 2013, and continuing into 2014, the Bank saw significant improvement in levels of nonperforming assets. The significant losses from 2010 through the three months of 2014, which were primarily related to credit losses and the valuation allowance on deferred tax asset, reduced the Company’s capital levels. In order to again become well capitalized under federal banking agencies’ guidelines, management believes that the Company will need to raise additional capital to recapitalize the Bank and to absorb the potential future credit losses associated with the disposition of its nonperforming assets. Accordingly, management is in the process of evaluating various alternatives to increase tangible common equity and regulatory capital through the issuance of additional equity in public or private offerings. Management is actively evaluating a number of potential capital sources, asset reductions, and other balance sheet management strategies with the goal of increasing its level of regulatory capital to support its balance sheet long-term. Management is currently reducing and otherwise restructuring its balance sheet to improve capital ratios. | |
The Company’s financial condition and a depressed stock price are significant barriers to the success of any plan to issue additional equity in public or private offerings. An equity financing transaction would result in substantial dilution to the Company’s current stockholders and could adversely affect the market price of the Company’s common stock. There can be no assurance as to whether these efforts will be successful, either on a short-term or long-term basis. Should these efforts be unsuccessful, due to existing regulatory restrictions on cash payments and dividends between the Bank and the holding company, the Company may be unable to discharge its liabilities in the normal course of business. There can be no assurance that the Company will be successful in any efforts to raise additional capital during 2014. | |
Both the Company and the Bank actively manage liquidity and cash flow needs. The Bank is prohibited from declaring or paying dividends without prior approval of the FDIC or the Commissioner and the Company is prohibited from declaring or paying dividends without the prior approval from the Federal Reserve. Even if these requirements were not in place, the Company does not intend to declare or pay dividends to shareholders at any time in the foreseeable future. At March 31, 2014, the Company had $15.1 million of cash and cash equivalents. The Company has no long-term debt maturing in 2014. | |
Based on current capital levels and continued operating losses management believes the Company will require additional capital to be able to remain viable. Management has implemented various strategies to provide this needed capital. In spite of management’s best efforts, there is no guarantee management will be successful in raising the additional capital. The accompanying consolidated financial statements for the Company have been prepared on a going concern basis, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future, and does not include any adjustments to reflect the possible future effects on the recoverability or classification of assets. | |
Management’s Plans and Intentions | |
The Company incurred significant net losses in 2011 and 2012 primarily from the higher provisions for loan losses due to the significant level of nonperforming assets and increases in foreclosed real estate. While conditions improved in 2013 and into the first three months of 2014, the Company’s expenses are still at an excessive level due to the term repurchase agreements, FDIC insurance premiums, and costs related to foreclosed real estate. The FDIC and the Commissioner issued the Consent Order in April 2011. The Company entered into a written agreement with the FRB in August 2011. The Company’s independent registered public accounting firm issued a report with respect to the Company’s audited financial statements for the fiscal year ended December 31, 2013, which contained an explanatory paragraph indicating that there is substantial doubt about the Company’s ability to continue as a going concern. The following strategies to improve the Company’s financial condition have been or are being implemented: | |
Deferring Preferred Stock and Trust Preferred Securities Payments – The Company began deferring the payment of cash dividends on its outstanding Fixed Rate Cumulative Perpetual Preferred Stock, Series A, beginning in February 2011, as well as the payment of interest on the outstanding junior subordinated notes related to its trust preferred securities to enhance the Company’s liquidity. The expense associated with trust preferred securities continues to accrue and is reflected in the Company’s Consolidated Statements of Operations. The dividends on preferred stock are shown as an increase to net loss to derive net loss to common shareholders in the Consolidated Statements of Operations. | |
Balance Sheet Reduction – Management currently is implementing strategies to improve capital ratios through the reduction of assets and off-balance sheet commitments. At March 31, 2014, risk-weighted assets had been reduced by $49.1 million since December 31, 2011. Reductions occurred primarily in the commercial loan portfolio. Management expects future reductions in risk-weighted assets to be moderate and occur primarily in the loan portfolio. To offset the majority of asset reductions, liabilities declined primarily through reductions in brokered and institutional CDs by $34.7 million. | |
Earnings – In June 2011, the Bank retired $10.0 million in FHLB advances and paid an early redemption penalty of $273,000 to the FHLB for the retirement of these advances. In November 2011, the Bank retired an additional advance of $10.0 million due to the FHLB and paid an early redemption penalty of $7,000. The advances had a remaining average life of 1.0 year and an average interest rate of 1.21%. The Bank is prohibited from accepting or rolling over any brokered certificates of deposits. Since April 2011, the brokered certificates of deposit had maturities ranging from 2 months to 27 months with interest rates ranging from 0.75% to 2.40%. As these matured and continue to mature, the Bank replaced and will continue to replace these funds with institutional certificates of deposit with average interest rates of 0.55%. In 2012, 2013 and continuing into 2014, the Bank was able to return loans, previously in a non-accrual status, to accrual status after six months of payment performance. As a result of these changes, the Bank expects a positive impact on its net interest margin. | |
Additional Capital – The Company has engaged investment banking firms and is working to secure investors in a capital raise plan that may include issuing common stock, preferred stock or a combination of both, debt, or other financing alternatives that may be treated as capital for capital adequacy ratio purposes. Currently, the Company is working diligently to raise additional capital in the next few months; however, there are no assurances that an offering will be completed or that the Company will succeed in this endeavor. In addition, a transaction would more likely than not involve equity financing, resulting in substantial dilution to current shareholders and an adverse effect on the price of the Company’s common stock. The Company’s ability to raise capital is contingent on the current capital markets and on its financial performance. Available capital markets may not be favorable, and the Company cannot be certain of its ability to raise capital on any terms. |
RECENT_ACCOUNTING_PRONOUNCEMEN1
RECENT ACCOUNTING PRONOUNCEMENTS (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Balance Sheet | ' |
In January 2013, the FASB issued Accounting Standards Update 2013-01, Balance Sheet (Topic 210). The amendments in this Update affect entities that have derivatives accounted for in accordance with Topic 815, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. Entities with other types of financial assets and financial liabilities subject to a master netting arrangement or similar agreement also are affected because these amendments make them no longer subject to the disclosure requirements in Update 2011-11. The amendments clarify the intended scope of the disclosures required by Section 210-20-50. The FASB concluded that the clarified scope will reduce significantly the operability concerns expressed by preparers while still providing decision-useful information about certain transactions involving master netting arrangements. The amendments provide a user of financial statements with comparable information as it relates to certain reconciling differences between financial statements prepared in accordance with U.S. GAAP and those financial statements prepared in accordance with International Financial Reporting Standards (IFRS). An entity is required to apply the amendments for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of Update 2011-11. The amendments have not had a significant impact on the Company. | |
Comprehensive Income | ' |
In February 2013, the FASB issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220). The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. Substantially all of the information that this Update requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. However, the new requirement about presenting information about amounts reclassified out of accumulated other comprehensive income and their corresponding effect on net income will present, in one place, information about significant amounts reclassified and, in some cases, cross-references to related footnote disclosures. Currently, this information is presented in different places throughout the financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. For nonpublic entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013. Early adoption is permitted. The amendments have not had a significant impact on the Company. | |
Financial Instruments | ' |
In February 2013, the FASB issued Accounting Standards Update 2013-03, Financial Instruments (Topic 825). The amendments clarify that the requirement to disclose “the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)” does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position but for which fair value is disclosed. The amendments have not had a significant impact on the Company. | |
Presentation of Financial Statements | ' |
In April 2013, the FASB issued Accounting Standards Update 2013-07, Presentation of Financial Statements (Topic 205). The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entity’s governing documents from the entity’s inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entity’s inception. | |
The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). | |
An entity should recognize and measure its liabilities in accordance with U.S. GAAP that otherwise applies to those liabilities. The entity should not anticipate that it will be legally released from being the primary obligor under those liabilities, either judicially or by creditor(s). The entity also is required to accrue and separately present the costs that it expects to incur and the income that it expects to earn during the expected duration of the liquidation, including any costs associated with sale or settlement of those assets and liabilities. | |
Additionally, the amendments require disclosures about an entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The amendments are not expected to have a significant impact on the Company. | |
Income Taxes | ' |
In July 2013, the FASB issued Accounting Standards Update 2013-11, Income Taxes (Topic 740). An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For example, an entity should not evaluate whether the deferred tax asset expires before the statute of limitations on the tax position or whether the deferred tax asset may be used prior to the unrecognized tax benefit being settled. | |
The amendments in this Update do not require new recurring disclosures. The amendments are not expected to have a significant impact on the Company. | |
Intangibles - Goodwill and Other | ' |
In January 2014, the FASB issued Accounting Standards Update 2014-02, Intangibles – Goodwill and Other (Topic 350). The amendments in this Update allow an accounting alternative for the subsequent measurement of goodwill. An entity within the scope of the amendments that elects the accounting alternative in this Update should amortize goodwill on a straight-line basis over 10 years, or less than 10 years if the entity demonstrates that another useful life is more appropriate. An entity that elects the accounting alternative is further required to make an accounting policy election to test goodwill for impairment at either the entity level or the reporting unit level. Goodwill should be tested for impairment when a triggering event occurs that indicates that the fair value of an entity (or a reporting unit) may be below its carrying amount. When a triggering event occurs, an entity has the option to first assess qualitative factors to determine whether the quantitative impairment test is necessary. If that qualitative assessment indicates that it is more likely than not that goodwill is impaired, the entity must perform the quantitative test to compare the entity’s fair value with its carrying amount, including goodwill (or the fair value of the reporting unit with the carrying amount, including goodwill, of the reporting unit). If the qualitative assessment indicates that it is not more likely than not that goodwill is impaired, further testing is unnecessary. | |
The goodwill impairment loss, if any, represents the excess of the carrying amount of the entity over its fair value (or the excess of the carrying amount of the reporting unit over the fair value of the reporting unit). The goodwill impairment loss cannot exceed the entity’s (or the reporting unit’s) carrying amount of goodwill. The disclosures required under this alternative are similar to existing U.S. generally accepted accounting principles (GAAP). However, an entity that elects the accounting alternative is not required to present changes in goodwill in a tabular reconciliation. | |
The accounting alternative, if elected, should be applied prospectively to goodwill existing as of the beginning of the period of adoption and new goodwill recognized in annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. Early application is permitted, including application to any period for which the entity’s annual or interim financial statements have not yet been made available for issuance. The amendments are not expected to have a significant impact on the Company. | |
Receivables - Troubled Debt Restructurings by Creditors | ' |
In January 2014, the FASB issued Accounting Standards Update 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. | |
The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For entities other than public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. The amendments are not expected to have a significant impact on the Company. | |
From time to time the FASB issues Proposed Accounting Standards Updates. Such proposed updates are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as Accounting Standards Updates. Management considers the effect of the proposed updates on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of proposed updates. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Computation of Earnings (Loss) Per Share | ' | ||||||||
Earnings (loss) per share have been computed based on the following (dollars in thousands): | |||||||||
Three months ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Net loss applicable to common stockholders | $ | (1,771 | ) | $ | (106 | ) | |||
Weighted average number of common shares outstanding | 3,895,840 | 3,895,840 | |||||||
Weighted average number of diluted common shares outstanding | 3,895,840 | 3,895,840 | |||||||
Common stock options and common stock warrants - anti-dilutive | 497,605 | 497,605 | |||||||
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Amortized Cost, Estimated Fair Values and Carrying Values of Investment Securities Portfolios | ' | ||||||||||||||||||||||||
The amortized cost, estimated fair values and carrying values of the investment securities portfolios at the indicated dates are summarized as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Carrying | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Government agencies securities | $ | 43,749 | $ | 70 | $ | 2,267 | $ | 41,552 | $ | 41,552 | |||||||||||||||
State and municipal bonds | 11,143 | 6 | 604 | 10,545 | 10,545 | ||||||||||||||||||||
Mortgage-backed securities | 38,282 | 44 | 865 | 37,461 | 37,461 | ||||||||||||||||||||
Total investment securities available for sale | 93,174 | 120 | 3,736 | 89,558 | 89,558 | ||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||
Corporate securities | 1,000 | — | 180 | 820 | 1,000 | ||||||||||||||||||||
Total investment securities | $ | 94,174 | $ | 120 | $ | 3,916 | $ | 90,378 | $ | 90,558 | |||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated | Carrying | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||
U.S. Government agencies securities | $ | 44,077 | $ | 87 | $ | 3,234 | $ | 40,930 | $ | 40,930 | |||||||||||||||
State and municipal bonds | 11,159 | — | 978 | 10,181 | 10,181 | ||||||||||||||||||||
Mortgage-backed securities | 39,458 | 34 | 1,288 | 38,204 | 38,204 | ||||||||||||||||||||
Total investment securities available for sale | 94,694 | 121 | 5,500 | 89,315 | 89,315 | ||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||
Corporate securities | 1,000 | — | 180 | 820 | 1,000 | ||||||||||||||||||||
Total investment securities | $ | 95,694 | $ | 121 | $ | 5,680 | $ | 90,135 | $ | 90,315 | |||||||||||||||
Fair Values of Securities with Unrealized Losses | ' | ||||||||||||||||||||||||
The fair values of securities with unrealized losses at March 31, 2014 and December 31, 2013 are as follows (dollars in thousands): | |||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Temporarily impaired securities: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
U.S. Government agency securities | $ | 36,457 | $ | 1,893 | $ | 3,612 | $ | 374 | $ | 40,069 | $ | 2,267 | |||||||||||||
State and municipal bonds | 6,582 | 421 | 2,846 | 183 | 9,428 | 604 | |||||||||||||||||||
Mortgage-backed securities | 32,437 | 865 | — | — | 32,437 | 865 | |||||||||||||||||||
Corporate securities | — | — | 820 | 180 | 820 | 180 | |||||||||||||||||||
Total | $ | 75,476 | $ | 3,179 | $ | 7,278 | $ | 737 | $ | 82,754 | $ | 3,916 | |||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
Temporarily impaired securities: | Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
U.S. Government agency securities | $ | 35,679 | $ | 2,731 | $ | 3,482 | $ | 503 | $ | 39,161 | $ | 3,234 | |||||||||||||
State and municipal bonds | 7,835 | 723 | 2,346 | 255 | 10,181 | 978 | |||||||||||||||||||
Mortgage-backed securities | 34,564 | 1,287 | 528 | 1 | 35,092 | 1,288 | |||||||||||||||||||
Corporate securities | — | — | 820 | 180 | 820 | 180 | |||||||||||||||||||
Total | $ | 78,078 | $ | 4,741 | $ | 7,176 | $ | 939 | $ | 85,254 | $ | 5,680 | |||||||||||||
LOANS_Tables
LOANS (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Loan Portfolio | ' | ||||||||||||||||||||||||||||||||||||||||
The loan portfolio as of the dates indicated is summarized below (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||||||||||
Residential, 1-4 family | $ | 87,034 | $ | 84,855 | |||||||||||||||||||||||||||||||||||||
Commercial real estate | 116,027 | 117,463 | |||||||||||||||||||||||||||||||||||||||
Construction and development | 22,744 | 27,049 | |||||||||||||||||||||||||||||||||||||||
Home equity | 27,541 | 28,217 | |||||||||||||||||||||||||||||||||||||||
Total real estate loans | 253,346 | 257,584 | |||||||||||||||||||||||||||||||||||||||
Commercial business and other loans | 20,605 | 17,428 | |||||||||||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||||||||||
Installment | 3,010 | 2,554 | |||||||||||||||||||||||||||||||||||||||
Other | 908 | 944 | |||||||||||||||||||||||||||||||||||||||
Total consumer loans | 3,918 | 3,498 | |||||||||||||||||||||||||||||||||||||||
Gross loans receivable | 277,869 | 278,510 | |||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (7,111 | ) | (6,015 | ) | |||||||||||||||||||||||||||||||||||||
Loans, net | $ | 270,758 | $ | 272,495 | |||||||||||||||||||||||||||||||||||||
Impaired Loans, Segregated by Class of Loans | ' | ||||||||||||||||||||||||||||||||||||||||
Impaired loans, segregated by class of loans, are summarized as follows as of the dates indicated (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||||||||||
Balance | Investment | Recognized | Balance | Investment | Recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 979 | $ | 1,175 | $ | — | $ | 1,205 | $ | 17 | $ | 1,099 | $ | 1,305 | $ | — | $ | 1,384 | $ | 79 | |||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 2,431 | 2,738 | — | 2,819 | 37 | 3,480 | 4,062 | — | 4,365 | 239 | |||||||||||||||||||||||||||||||
Income producing | 3,534 | 3,701 | — | 3,713 | 42 | 3,734 | 3,887 | — | 3,938 | 183 | |||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other | 1,512 | 1,852 | — | 1,868 | 26 | 1,545 | 1,881 | — | 1,981 | 112 | |||||||||||||||||||||||||||||||
Farmland | 135 | 156 | — | 193 | 4 | 252 | 273 | — | 340 | 26 | |||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 147 | 153 | — | 153 | 2 | 95 | 101 | — | 105 | 3 | |||||||||||||||||||||||||||||||
1 - 4 Family | 4,674 | 5,088 | — | 5,393 | 64 | 5,632 | 6,198 | — | 6,281 | 322 | |||||||||||||||||||||||||||||||
Junior Liens | 193 | 216 | — | 217 | 3 | 196 | 218 | — | 223 | 12 | |||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 67 | 67 | — | 68 | 1 | 68 | 68 | — | 70 | 4 | |||||||||||||||||||||||||||||||
Total loans with no allowance | $ | 13,672 | $ | 15,146 | $ | — | $ | 15,629 | $ | 196 | $ | 16,101 | $ | 17,993 | $ | — | $ | 18,687 | $ | 980 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 1,242 | $ | 1,242 | $ | 24 | $ | 1,260 | $ | 11 | $ | 1,205 | $ | 1,205 | $ | 25 | $ | 1,282 | $ | 45 | |||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 3,796 | 3,796 | 92 | 3,807 | 39 | 3,666 | 3,666 | 77 | 3,727 | 166 | |||||||||||||||||||||||||||||||
Income producing | 7,231 | 7,286 | 750 | 7,318 | 92 | 7,287 | 7,343 | 126 | 7,465 | 382 | |||||||||||||||||||||||||||||||
Multifamily | 1,215 | 1,248 | 82 | 1,255 | 11 | 1,226 | 1,259 | 12 | 1,273 | 45 | |||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 357 | 363 | 7 | 365 | 5 | 360 | 366 | 8 | 371 | 19 | |||||||||||||||||||||||||||||||
Other | 3,170 | 3,170 | 732 | 3,175 | 28 | 3,176 | 3,181 | 107 | 3,224 | 118 | |||||||||||||||||||||||||||||||
Farmland | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
1 - 4 Family | 7,019 | 7,037 | 211 | 7,062 | 71 | 6,778 | 6,795 | 204 | 6,893 | 279 | |||||||||||||||||||||||||||||||
Junior Liens | 336 | 338 | 3 | 339 | 5 | 339 | 341 | 4 | 345 | 19 | |||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 7 | 7 | — | 8 | — | 8 | 8 | — | 11 | — | |||||||||||||||||||||||||||||||
Total loans with an allowance | $ | 24,373 | $ | 24,487 | $ | 1,901 | $ | 24,589 | $ | 262 | $ | 24,045 | $ | 24,164 | $ | 563 | $ | 24,591 | $ | 1,073 | |||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 2,221 | $ | 2,417 | $ | 24 | $ | 2,465 | $ | 28 | $ | 2,304 | $ | 2,510 | $ | 25 | $ | 2,666 | $ | 124 | |||||||||||||||||||||
Commercial Real Estate | $ | 18,207 | $ | 18,769 | $ | 924 | $ | 18,912 | $ | 221 | $ | 19,393 | $ | 20,217 | $ | 215 | $ | 20,768 | $ | 1,015 | |||||||||||||||||||||
Construction & Development | $ | 5,174 | $ | 5,541 | $ | 739 | $ | 5,601 | $ | 63 | $ | 5,333 | $ | 5,701 | $ | 115 | $ | 5,916 | $ | 275 | |||||||||||||||||||||
Residential | $ | 12,369 | $ | 12,832 | $ | 214 | $ | 13,164 | $ | 145 | $ | 13,040 | $ | 13,653 | $ | 208 | $ | 13,847 | $ | 635 | |||||||||||||||||||||
Consumer - Non Real Estate | $ | 74 | $ | 74 | $ | — | $ | 76 | $ | 1 | $ | 76 | $ | 76 | $ | — | $ | 81 | $ | 4 | |||||||||||||||||||||
Totals | $ | 38,045 | $ | 39,633 | $ | 1,901 | $ | 40,218 | $ | 458 | $ | 40,146 | $ | 42,157 | $ | 563 | $ | 43,278 | $ | 2,053 | |||||||||||||||||||||
Troubled Debt Restructuring | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables illustrate TDR information for the three months ended March 31, 2014 and 2013 (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | Number of | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | 1 | $ | 61 | $ | 61 | ||||||||||||||||||||||||||||||||||||
Commercial - Real Estate | 1 | 22 | 22 | ||||||||||||||||||||||||||||||||||||||
Construction & Development | — | — | — | ||||||||||||||||||||||||||||||||||||||
Residential | — | — | — | ||||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | — | — | — | ||||||||||||||||||||||||||||||||||||||
Totals | 2 | $ | 83 | $ | 83 | ||||||||||||||||||||||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Troubled Debt Restructuring | Number of | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||||||||||
Contracts | Recorded | Recorded | |||||||||||||||||||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | 1 | $ | 32 | $ | 32 | ||||||||||||||||||||||||||||||||||||
Commercial - Real Estate | 1 | 238 | 238 | ||||||||||||||||||||||||||||||||||||||
Construction & Development | — | — | — | ||||||||||||||||||||||||||||||||||||||
Residential | 2 | 293 | 293 | ||||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | — | — | — | ||||||||||||||||||||||||||||||||||||||
Totals | 4 | $ | 563 | $ | 563 | ||||||||||||||||||||||||||||||||||||
Non-Accrual Loans and Age Analysis of Past Due Loans, Segregated by Class of Loans | ' | ||||||||||||||||||||||||||||||||||||||||
Non-accrual loans and an age analysis of past due loans, segregated by class of loans, were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days | Total | Current | Total | 90 Days | Non-accrual | ||||||||||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | and Still | ||||||||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 218 | $ | — | $ | 105 | $ | 323 | $ | 20,282 | $ | 20,605 | $ | — | $ | 291 | |||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 104 | — | — | 104 | 56,630 | 56,734 | — | 629 | |||||||||||||||||||||||||||||||||
Income producing | — | — | 325 | 325 | 51,338 | 51,663 | — | 325 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 7,630 | 7,630 | — | — | |||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | 1,761 | 1,761 | — | — | |||||||||||||||||||||||||||||||||
Other | 2,433 | — | 240 | 2,673 | 17,899 | 20,572 | — | 2,999 | |||||||||||||||||||||||||||||||||
Farmland | — | — | 136 | 136 | 275 | 411 | — | 136 | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 168 | — | 75 | 243 | 27,298 | 27,541 | — | 147 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 175 | — | 173 | 348 | 85,633 | 85,981 | — | 772 | |||||||||||||||||||||||||||||||||
Junior Liens | — | — | 26 | 26 | 1,027 | 1,053 | — | 52 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 16 | 3 | — | 19 | 2,991 | 3,010 | — | 6 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | 908 | 908 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 3,114 | $ | 3 | $ | 1,080 | $ | 4,197 | $ | 273,672 | $ | 277,869 | $ | — | $ | 5,357 | |||||||||||||||||||||||||
30 - 59 | 60 - 89 | 90 Days | Total | Current | Total | 90 Days | Non-accrual | ||||||||||||||||||||||||||||||||||
Days | Days | or More | Past Due | Loans | Past Due | Loans | |||||||||||||||||||||||||||||||||||
Past Due | Past Due | Past Due | and Still | ||||||||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 46 | $ | — | $ | 154 | $ | 200 | $ | 17,228 | $ | 17,428 | $ | — | $ | 463 | |||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | — | 77 | 684 | 761 | 57,154 | 57,915 | — | 1,689 | |||||||||||||||||||||||||||||||||
Income producing | — | — | 503 | 503 | 51,297 | 51,800 | — | 503 | |||||||||||||||||||||||||||||||||
Multifamily | — | — | — | — | 7,748 | 7,748 | — | — | |||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | — | — | — | — | 1,745 | 1,745 | — | — | |||||||||||||||||||||||||||||||||
Other | 158 | — | 240 | 398 | 24,375 | 24,773 | — | 599 | |||||||||||||||||||||||||||||||||
Farmland | — | — | 252 | 252 | 279 | 531 | — | 252 | |||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 75 | 9 | — | 84 | 28,133 | 28,217 | — | 95 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 157 | 242 | 355 | 754 | 82,995 | 83,749 | — | 1,128 | |||||||||||||||||||||||||||||||||
Junior Liens | — | — | 26 | 26 | 1,080 | 1,106 | — | 53 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 1 | 2 | — | 3 | 2,551 | 2,554 | — | 6 | |||||||||||||||||||||||||||||||||
Other | — | — | — | — | 944 | 944 | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 437 | $ | 330 | $ | 2,214 | $ | 2,981 | $ | 275,529 | $ | 278,510 | $ | — | $ | 4,788 | |||||||||||||||||||||||||
Risk Category of Loans and Leases | ' | ||||||||||||||||||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, and based on the most recent analysis performed, the loans and leases were categorized as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating Grades | Pass | Special | Substandard | Doubtful | Loss | ||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 16,715 | $ | 3,004 | $ | 886 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 47,957 | 4,325 | 4,452 | — | — | ||||||||||||||||||||||||||||||||||||
Income producing | 34,048 | 11,705 | 5,910 | — | — | ||||||||||||||||||||||||||||||||||||
Multifamily | 5,827 | 1,803 | — | — | — | ||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 1,159 | 245 | 357 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 14,320 | 1,936 | 4,316 | — | — | ||||||||||||||||||||||||||||||||||||
Farmland | 275 | — | 136 | — | — | ||||||||||||||||||||||||||||||||||||
Totals | $ | 120,301 | $ | 23,018 | $ | 16,057 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 16,715 | $ | 3,004 | $ | 886 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 87,832 | $ | 17,833 | $ | 10,362 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Construction & Development | $ | 15,754 | $ | 2,181 | $ | 4,809 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Totals | $ | 120,301 | $ | 23,018 | $ | 16,057 | $ | — | $ | — | |||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||
Internal Risk Rating Grades | Pass | Special | Substandard | Doubtful | Loss | ||||||||||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 13,289 | $ | 3,157 | $ | 982 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 47,207 | 6,009 | 4,699 | — | — | ||||||||||||||||||||||||||||||||||||
Income producing | 33,875 | 10,501 | 7,424 | — | — | ||||||||||||||||||||||||||||||||||||
Multifamily | 5,925 | 1,823 | — | — | — | ||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 1,133 | 252 | 360 | — | — | ||||||||||||||||||||||||||||||||||||
Other | 17,122 | 3,265 | 4,386 | — | — | ||||||||||||||||||||||||||||||||||||
Farmland | 279 | — | 252 | — | — | ||||||||||||||||||||||||||||||||||||
Totals | $ | 118,830 | $ | 25,007 | $ | 18,103 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 13,289 | $ | 3,157 | $ | 982 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commercial Real Estate | $ | 87,007 | $ | 18,333 | $ | 12,123 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Construction & Development | $ | 18,534 | $ | 3,517 | $ | 4,998 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Totals | $ | 118,830 | $ | 25,007 | $ | 18,103 | $ | — | $ | — | |||||||||||||||||||||||||||||||
Consumer Related Loans, Segregated by Class of Loans | ' | ||||||||||||||||||||||||||||||||||||||||
Consumer-related loans at March 31, 2014 and December 31, 2013, segregated by class of loans, were as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Risk Based on Payment Activity | Performing | Non- | Performing | Non- | |||||||||||||||||||||||||||||||||||||
Performing | Performing | ||||||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | $ | 27,394 | $ | 147 | $ | 28,122 | $ | 95 | |||||||||||||||||||||||||||||||||
1 - 4 Family | 85,518 | 463 | 83,092 | 657 | |||||||||||||||||||||||||||||||||||||
Junior Liens | 1,027 | 26 | 1,080 | 26 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | |||||||||||||||||||||||||||||||||||||||||
Credit Cards | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other | 3,004 | 6 | 2,548 | 6 | |||||||||||||||||||||||||||||||||||||
Totals | $ | 116,943 | $ | 642 | $ | 114,842 | $ | 784 | |||||||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||||||
Residential | $ | 113,939 | $ | 636 | $ | 112,294 | $ | 778 | |||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | $ | 3,004 | $ | 6 | $ | 2,548 | $ | 6 | |||||||||||||||||||||||||||||||||
Totals | $ | 116,943 | $ | 642 | $ | 114,842 | $ | 784 | |||||||||||||||||||||||||||||||||
ALLOWANCE_FOR_LOAN_LOSSES_Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Allowance for Loan Losses by Segment | ' | ||||||||||||||||||||||||||||||||||||||||
Changes in the allowance for loan losses by segment, since their respective year-end, are as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Beginning | Chargeoffs | Recoveries | Provision | Ending | Beginning | Chargeoffs | Recoveries | Provision | Ending | ||||||||||||||||||||||||||||||||
Balance | Balance | Balance | Balance | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 176 | $ | (48 | ) | $ | 80 | $ | (8 | ) | $ | 200 | $ | 1,209 | $ | (9 | ) | $ | 1,290 | $ | (1,855 | ) | $ | 635 | |||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 1,224 | — | 4 | (49 | ) | 1,179 | 1,359 | (216 | ) | 12 | 325 | 1,480 | |||||||||||||||||||||||||||||
Income producing | 831 | — | — | 626 | 1,457 | 773 | (21 | ) | 20 | (1 | ) | 771 | |||||||||||||||||||||||||||||
Multifamily | 50 | — | — | 69 | 119 | 78 | — | — | (9 | ) | 69 | ||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 52 | — | — | (16 | ) | 36 | 78 | (5 | ) | — | 8 | 81 | |||||||||||||||||||||||||||||
Other | 580 | — | 2 | 526 | 1,108 | 728 | — | 2 | (61 | ) | 669 | ||||||||||||||||||||||||||||||
Farmland | 3 | — | — | — | 3 | — | (8 | ) | — | 9 | 1 | ||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 332 | (59 | ) | 2 | (9 | ) | 266 | 314 | (198 | ) | 10 | 238 | 364 | ||||||||||||||||||||||||||||
1 - 4 Family | 1,218 | (8 | ) | 62 | (72 | ) | 1,200 | 1,267 | (126 | ) | 3 | 93 | 1,237 | ||||||||||||||||||||||||||||
Consumer - Non Real Estate | 44 | (8 | ) | 7 | 8 | 51 | 98 | (11 | ) | 11 | (6 | ) | 92 | ||||||||||||||||||||||||||||
Unallocated | 1,505 | — | — | (13 | ) | 1,492 | 986 | — | — | 113 | 1,099 | ||||||||||||||||||||||||||||||
Total | $ | 6,015 | $ | (123 | ) | $ | 157 | $ | 1,062 | $ | 7,111 | $ | 6,890 | $ | (594 | ) | $ | 1,348 | $ | (1,146 | ) | $ | 6,498 | ||||||||||||||||||
Schedule of Loans Individually Evaluated for Impairment | ' | ||||||||||||||||||||||||||||||||||||||||
As of March 31, 2014 and December 31, 2013, loans were evaluated for impairment as follows (dollars in thousands): | |||||||||||||||||||||||||||||||||||||||||
Individually Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||
Allowance | Total Loans | Allowance | Total Loans | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 24 | $ | 2,221 | $ | 25 | $ | 2,304 | |||||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 92 | 6,227 | 77 | 7,146 | |||||||||||||||||||||||||||||||||||||
Income producing | 750 | 10,765 | 126 | 11,021 | |||||||||||||||||||||||||||||||||||||
Multifamily | 82 | 1,215 | 12 | 1,226 | |||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 7 | 357 | 8 | 360 | |||||||||||||||||||||||||||||||||||||
Other | 732 | 4,682 | 107 | 4,721 | |||||||||||||||||||||||||||||||||||||
Farmland | — | 135 | — | 252 | |||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | — | 147 | — | 95 | |||||||||||||||||||||||||||||||||||||
1 - 4 Family | 211 | 11,693 | 208 | 12,945 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 3 | 529 | — | 76 | |||||||||||||||||||||||||||||||||||||
Unallocated | — | 74 | — | — | |||||||||||||||||||||||||||||||||||||
Total | $ | 1,901 | $ | 38,045 | $ | 563 | $ | 40,146 | |||||||||||||||||||||||||||||||||
Collectively Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Allowance | Total Loans | Allowance | Total Loans | ||||||||||||||||||||||||||||||||||||||
Commercial - Non Real Estate | $ | 176 | $ | 18,384 | $ | 151 | $ | 15,124 | |||||||||||||||||||||||||||||||||
Commercial Real Estate | |||||||||||||||||||||||||||||||||||||||||
Owner occupied | 1,087 | 50,507 | 1,147 | 50,769 | |||||||||||||||||||||||||||||||||||||
Income producing | 707 | 40,898 | 705 | 40,779 | |||||||||||||||||||||||||||||||||||||
Multifamily | 37 | 6,415 | 38 | 6,522 | |||||||||||||||||||||||||||||||||||||
Construction & Development | |||||||||||||||||||||||||||||||||||||||||
1 - 4 Family | 29 | 1,404 | 44 | 1,385 | |||||||||||||||||||||||||||||||||||||
Other | 376 | 15,890 | 473 | 20,052 | |||||||||||||||||||||||||||||||||||||
Farmland | 3 | 276 | 3 | 279 | |||||||||||||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||||||||||
Equity Lines | 266 | 27,394 | 332 | 28,122 | |||||||||||||||||||||||||||||||||||||
1 - 4 Family | 989 | 75,341 | 1,010 | 71,910 | |||||||||||||||||||||||||||||||||||||
Consumer - Non Real Estate | 48 | 2,481 | 44 | 2,478 | |||||||||||||||||||||||||||||||||||||
Unallocated | 1,492 | 834 | 1,505 | 944 | |||||||||||||||||||||||||||||||||||||
Total | $ | 5,210 | $ | 239,824 | $ | 5,452 | $ | 238,364 | |||||||||||||||||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Summary of Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk | ' | ||||
The following table presents a summary of outstanding financial instruments whose contract amounts represent credit risk as of March 31, 2014 (dollars in thousands): | |||||
Unfunded loan commitments | $ | 31,682 | |||
Financial standby letters of credit | 121 | ||||
Total unused commitments | $ | 31,803 | |||
FAIR_VALUE_Tables
FAIR VALUE (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Assets Measured on Recurring Basis | ' | ||||||||||||||||
The following table summarizes the Company’s assets measured at fair value at the dates indicated (dollars in thousands): | |||||||||||||||||
At March 31, 2014 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets valued on a recurring basis | |||||||||||||||||
Investment securities: | |||||||||||||||||
U.S. government and agency | $ | 41,552 | $ | — | $ | 41,552 | $ | — | |||||||||
State and municipals | 10,545 | — | 10,545 | — | |||||||||||||
Mortgage-backed | 37,461 | — | 37,461 | — | |||||||||||||
Assets valued on a non-recurring basis | |||||||||||||||||
Impaired loans | 36,144 | — | — | 36,144 | |||||||||||||
Other real estate owned | 2,092 | — | — | 2,092 | |||||||||||||
Total | $ | 127,794 | $ | — | $ | 89,558 | $ | 38,236 | |||||||||
At December 31, 2013 | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets valued on a recurring basis | |||||||||||||||||
Investment securities: | |||||||||||||||||
U.S. government and agency | $ | 40,930 | $ | — | $ | 40,930 | $ | — | |||||||||
State and municipals | 10,181 | — | 10,181 | — | |||||||||||||
Mortgage-backed | 38,204 | — | 38,204 | — | |||||||||||||
Assets valued on a non-recurring basis | |||||||||||||||||
Impaired loans | 39,583 | — | — | 39,583 | |||||||||||||
Other real estate owned | 1,233 | — | — | 1,233 | |||||||||||||
Total | $ | 130,131 | $ | — | $ | 89,315 | $ | 40,816 | |||||||||
BORROWED_FUNDS_Tables
BORROWED FUNDS (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Outstanding Borrowings and Annual Rate of Interest | ' | ||||||||||||||||||||
A summary of the Company’s outstanding borrowings and the annual rate of interest currently payable on each category is presented in the following table at the dates indicated (dollars in thousands): | |||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Outstanding | Annual | Outstanding | Annual | ||||||||||||||||||
Balance | Interest Rate | Balance | Interest Rate | ||||||||||||||||||
Securities sold under overnight repurchase agreements | $ | 722 | 0.15 | % | $ | 388 | 0.14 | % | |||||||||||||
Securities sold under term repurchase agreements | 45,000 | 4.38 | 45,000 | 4.38 | |||||||||||||||||
Trust preferred securities | 5,155 | 3.2 | 5,155 | 3.19 | |||||||||||||||||
Subordinated debt | 2,700 | 4 | 2,700 | 4 | |||||||||||||||||
Total borrowed funds | $ | 53,577 | 4.19 | % | $ | 53,243 | 4.21 | % | |||||||||||||
Securities Sold Under Term Repurchase Agreements | ' | ||||||||||||||||||||
The following table contains certain pertinent information with respect to these agreements at March 31, 2014 (dollars in thousands): | |||||||||||||||||||||
Outstanding | Annual | Final | Beginning | Collateral | |||||||||||||||||
Principal | Effective | Maturity | Quarterly | Requirement | |||||||||||||||||
Balance | Interest Rate | Date | Call Dates | ||||||||||||||||||
Agreement dated 7/8/2008 | $ | 25,000 | 4.85 | % | 7/8/18 | 7/8/13 | $ | 6,761 | |||||||||||||
Agreement dated 8/20/2008 | 20,000 | 3.78 | 8/20/15 | 8/20/11 | 3,447 | ||||||||||||||||
Total | $ | 45,000 | 4.38 | % | $ | 10,208 | |||||||||||||||
Computation_of_Earnings_Loss_P
Computation of Earnings (Loss) Per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Earnings Per Share [Line Items] | ' | ' |
Net loss applicable to common stockholders | ($1,771) | ($106) |
Weighted average number of common shares outstanding | 3,895,840 | 3,895,840 |
Weighted average number of diluted common shares outstanding | 3,895,840 | 3,895,840 |
Common stock options and common stock warrants - anti-dilutive | 497,605 | 497,605 |
Amortized_Cost_Estimated_Fair_
Amortized Cost, Estimated Fair Values and Carrying Values of Investment Securities Portfolios (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment [Line Items] | ' | ' |
Investment securities available for sale, Amortized Cost | $93,174 | $94,694 |
Investment securities available for sale, Gross Unrealized Gains | 120 | 121 |
Investment securities available for sale, Gross Unrealized Losses | 3,736 | 5,500 |
Investment securities available for sale, Estimated Fair Value | 89,558 | 89,315 |
Investment securities available for sale, Carrying Value | 89,558 | 89,315 |
Investment securities held to maturity, Gross Unrealized Gains | ' | ' |
Total Investment Securities, Amortized Cost | 94,174 | 95,694 |
Total Investment Securities, Gross Unrealized Gains | 120 | 121 |
Total Investment Securities, Gross Unrealized Losses | 3,916 | 5,680 |
Total Investment Securities, Estimated Fair Value | 90,378 | 90,135 |
Total Investment Securities, Carrying Value | 90,558 | 90,315 |
U.S. Government agency securities | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities available for sale, Amortized Cost | 43,749 | 44,077 |
Investment securities available for sale, Gross Unrealized Gains | 70 | 87 |
Investment securities available for sale, Gross Unrealized Losses | 2,267 | 3,234 |
Investment securities available for sale, Estimated Fair Value | 41,552 | 40,930 |
Investment securities available for sale, Carrying Value | 41,552 | 40,930 |
State and municipal bonds | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities available for sale, Amortized Cost | 11,143 | 11,159 |
Investment securities available for sale, Gross Unrealized Gains | 6 | ' |
Investment securities available for sale, Gross Unrealized Losses | 604 | 978 |
Investment securities available for sale, Estimated Fair Value | 10,545 | 10,181 |
Investment securities available for sale, Carrying Value | 10,545 | 10,181 |
Mortgage-backed securities | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities available for sale, Amortized Cost | 38,282 | 39,458 |
Investment securities available for sale, Gross Unrealized Gains | 44 | 34 |
Investment securities available for sale, Gross Unrealized Losses | 865 | 1,288 |
Investment securities available for sale, Estimated Fair Value | 37,461 | 38,204 |
Investment securities available for sale, Carrying Value | 37,461 | 38,204 |
Corporate securities | ' | ' |
Investment [Line Items] | ' | ' |
Investment securities held to maturity, Amortized Cost | 1,000 | 1,000 |
Investment securities held to maturity, Gross Unrealized Gains | ' | ' |
Investment securities held to maturity, Gross Unrealized Losses | 180 | 180 |
Investment securities held to maturity, Estimated Fair Value | 820 | 820 |
Investment securities held to maturity, Carrying Value | $1,000 | $1,000 |
Fair_Values_of_Securities_with
Fair Values of Securities with Unrealized Losses (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Estimated Fair Value | $75,476 | $78,078 |
Less than 12 Months, Unrealized Losses | 3,179 | 4,741 |
12 Months or More, Estimated Fair Value | 7,278 | 7,176 |
12 Months or More, Unrealized Losses | 737 | 939 |
Total, Estimated Fair Value | 82,754 | 85,254 |
Total, Unrealized Losses | 3,916 | 5,680 |
U.S. Government agency securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Estimated Fair Value | 36,457 | 35,679 |
Less than 12 Months, Unrealized Losses | 1,893 | 2,731 |
12 Months or More, Estimated Fair Value | 3,612 | 3,482 |
12 Months or More, Unrealized Losses | 374 | 503 |
Total, Estimated Fair Value | 40,069 | 39,161 |
Total, Unrealized Losses | 2,267 | 3,234 |
State and municipal bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Estimated Fair Value | 6,582 | 7,835 |
Less than 12 Months, Unrealized Losses | 421 | 723 |
12 Months or More, Estimated Fair Value | 2,846 | 2,346 |
12 Months or More, Unrealized Losses | 183 | 255 |
Total, Estimated Fair Value | 9,428 | 10,181 |
Total, Unrealized Losses | 604 | 978 |
Mortgage-backed securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Less than 12 Months, Estimated Fair Value | 32,437 | 34,564 |
Less than 12 Months, Unrealized Losses | 865 | 1,287 |
12 Months or More, Estimated Fair Value | ' | 528 |
12 Months or More, Unrealized Losses | ' | 1 |
Total, Estimated Fair Value | 32,437 | 35,092 |
Total, Unrealized Losses | 865 | 1,288 |
Corporate securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
12 Months or More, Estimated Fair Value | 820 | 820 |
12 Months or More, Unrealized Losses | 180 | 180 |
Total, Estimated Fair Value | 820 | 820 |
Total, Unrealized Losses | $180 | $180 |
Loan_Portfolio_Detail
Loan Portfolio (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Total real estate loans | $253,346 | $257,584 | ' | ' | |
Commercial business and other loans | 20,605 | 17,428 | ' | ' | |
Total consumer loans | 3,918 | 3,498 | ' | ' | |
Gross loans receivable | 277,869 | 278,510 | ' | ' | |
Allowance for loan losses | -7,111 | -6,015 | [1] | -6,498 | -6,890 |
Loans, net | 270,758 | 272,495 | [1] | ' | ' |
1-4 Family Residential | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Total real estate loans | 87,034 | 84,855 | ' | ' | |
Commercial Real Estate | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Total real estate loans | 116,027 | 117,463 | ' | ' | |
Construction & Development | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Total real estate loans | 22,744 | 27,049 | ' | ' | |
Equity Lines | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Total real estate loans | 27,541 | 28,217 | ' | ' | |
Consumer Loans - Installment | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Installment | 3,010 | 2,554 | ' | ' | |
Consumer Loans Other | ' | ' | ' | ' | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | |
Other | $908 | $944 | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
Impaired_Loans_Segregated_by_C
Impaired Loans, Segregated by Class of Loans (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | $13,672 | $16,101 |
With No Related Allowance, Unpaid Principal Balance | 15,146 | 17,993 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 15,629 | 18,687 |
With No Related Allowance, Interest Income Recognized | 196 | 980 |
With Related Allowance, Recorded Investment | 24,373 | 24,045 |
With Related Allowance, Unpaid Principal Balance | 24,487 | 24,164 |
With Related Allowance, Related Allowance | 1,901 | 563 |
With Related Allowance, Average Recorded Investment | 24,589 | 24,591 |
With Related Allowance, Interest Income Recognized | 262 | 1,073 |
Recorded Investment, Total | 38,045 | 40,146 |
Unpaid Principal Balance, Total | 39,633 | 42,157 |
Related Allowance, Total | 1,901 | 563 |
Average Recorded Investment, Total | 40,218 | 43,278 |
Interest Income Recognized, Total | 458 | 2,053 |
Consumer - Non Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 67 | 68 |
With No Related Allowance, Unpaid Principal Balance | 67 | 68 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 68 | 70 |
With No Related Allowance, Interest Income Recognized | 1 | 4 |
With Related Allowance, Recorded Investment | 7 | 8 |
With Related Allowance, Unpaid Principal Balance | 7 | 8 |
With Related Allowance, Average Recorded Investment | 8 | 11 |
Recorded Investment, Total | 74 | 76 |
Unpaid Principal Balance, Total | 74 | 76 |
Average Recorded Investment, Total | 76 | 81 |
Interest Income Recognized, Total | 1 | 4 |
Commercial - Non Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 979 | 1,099 |
With No Related Allowance, Unpaid Principal Balance | 1,175 | 1,305 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 1,205 | 1,384 |
With No Related Allowance, Interest Income Recognized | 17 | 79 |
With Related Allowance, Recorded Investment | 1,242 | 1,205 |
With Related Allowance, Unpaid Principal Balance | 1,242 | 1,205 |
With Related Allowance, Related Allowance | 24 | 25 |
With Related Allowance, Average Recorded Investment | 1,260 | 1,282 |
With Related Allowance, Interest Income Recognized | 11 | 45 |
Recorded Investment, Total | 2,221 | 2,304 |
Unpaid Principal Balance, Total | 2,417 | 2,510 |
Related Allowance, Total | 24 | 25 |
Average Recorded Investment, Total | 2,465 | 2,666 |
Interest Income Recognized, Total | 28 | 124 |
Commercial Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, Total | 18,207 | 19,393 |
Unpaid Principal Balance, Total | 18,769 | 20,217 |
Related Allowance, Total | 924 | 215 |
Average Recorded Investment, Total | 18,912 | 20,768 |
Interest Income Recognized, Total | 221 | 1,015 |
Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 2,431 | 3,480 |
With No Related Allowance, Unpaid Principal Balance | 2,738 | 4,062 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 2,819 | 4,365 |
With No Related Allowance, Interest Income Recognized | 37 | 239 |
With Related Allowance, Recorded Investment | 3,796 | 3,666 |
With Related Allowance, Unpaid Principal Balance | 3,796 | 3,666 |
With Related Allowance, Related Allowance | 92 | 77 |
With Related Allowance, Average Recorded Investment | 3,807 | 3,727 |
With Related Allowance, Interest Income Recognized | 39 | 166 |
Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 3,534 | 3,734 |
With No Related Allowance, Unpaid Principal Balance | 3,701 | 3,887 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 3,713 | 3,938 |
With No Related Allowance, Interest Income Recognized | 42 | 183 |
With Related Allowance, Recorded Investment | 7,231 | 7,287 |
With Related Allowance, Unpaid Principal Balance | 7,286 | 7,343 |
With Related Allowance, Related Allowance | 750 | 126 |
With Related Allowance, Average Recorded Investment | 7,318 | 7,465 |
With Related Allowance, Interest Income Recognized | 92 | 382 |
Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Related Allowance | ' | ' |
With Related Allowance, Recorded Investment | 1,215 | 1,226 |
With Related Allowance, Unpaid Principal Balance | 1,248 | 1,259 |
With Related Allowance, Related Allowance | 82 | 12 |
With Related Allowance, Average Recorded Investment | 1,255 | 1,273 |
With Related Allowance, Interest Income Recognized | 11 | 45 |
Construction & Development | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, Total | 5,174 | 5,333 |
Unpaid Principal Balance, Total | 5,541 | 5,701 |
Related Allowance, Total | 739 | 115 |
Average Recorded Investment, Total | 5,601 | 5,916 |
Interest Income Recognized, Total | 63 | 275 |
Construction & Development | 1-4 Family Residential | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Related Allowance | ' | ' |
With Related Allowance, Recorded Investment | 357 | 360 |
With Related Allowance, Unpaid Principal Balance | 363 | 366 |
With Related Allowance, Related Allowance | 7 | 8 |
With Related Allowance, Average Recorded Investment | 365 | 371 |
With Related Allowance, Interest Income Recognized | 5 | 19 |
Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 1,512 | 1,545 |
With No Related Allowance, Unpaid Principal Balance | 1,852 | 1,881 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 1,868 | 1,981 |
With No Related Allowance, Interest Income Recognized | 26 | 112 |
With Related Allowance, Recorded Investment | 3,170 | 3,176 |
With Related Allowance, Unpaid Principal Balance | 3,170 | 3,181 |
With Related Allowance, Related Allowance | 732 | 107 |
With Related Allowance, Average Recorded Investment | 3,175 | 3,224 |
With Related Allowance, Interest Income Recognized | 28 | 118 |
Construction & Development | Farmland | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 135 | 252 |
With No Related Allowance, Unpaid Principal Balance | 156 | 273 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 193 | 340 |
With No Related Allowance, Interest Income Recognized | 4 | 26 |
Residential | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Recorded Investment, Total | 12,369 | 13,040 |
Unpaid Principal Balance, Total | 12,832 | 13,653 |
Related Allowance, Total | 214 | 208 |
Average Recorded Investment, Total | 13,164 | 13,847 |
Interest Income Recognized, Total | 145 | 635 |
Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 4,674 | 5,632 |
With No Related Allowance, Unpaid Principal Balance | 5,088 | 6,198 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 5,393 | 6,281 |
With No Related Allowance, Interest Income Recognized | 64 | 322 |
With Related Allowance, Recorded Investment | 7,019 | 6,778 |
With Related Allowance, Unpaid Principal Balance | 7,037 | 6,795 |
With Related Allowance, Related Allowance | 211 | 204 |
With Related Allowance, Average Recorded Investment | 7,062 | 6,893 |
With Related Allowance, Interest Income Recognized | 71 | 279 |
Residential | Equity Lines | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 147 | 95 |
With No Related Allowance, Unpaid Principal Balance | 153 | 101 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 153 | 105 |
With No Related Allowance, Interest Income Recognized | 2 | 3 |
Residential | Junior Liens | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
With No Related Allowance, Recorded Investment | 193 | 196 |
With No Related Allowance, Unpaid Principal Balance | 216 | 218 |
With No Related Allowance, Related Allowance | ' | ' |
With No Related Allowance, Average Recorded Investment | 217 | 223 |
With No Related Allowance, Interest Income Recognized | 3 | 12 |
With Related Allowance, Recorded Investment | 336 | 339 |
With Related Allowance, Unpaid Principal Balance | 338 | 341 |
With Related Allowance, Related Allowance | 3 | 4 |
With Related Allowance, Average Recorded Investment | 339 | 345 |
With Related Allowance, Interest Income Recognized | $5 | $19 |
Loans_Receivable_Additional_In
Loans Receivable - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Financing Receivable Modifications Recorded Investment | $36,000,000 | $37,500,000 | ' |
Impairment reserve for troubled debt restructurings | $1,200,000 | ' | $746,000 |
Troubled_Debt_Restructuring_De
Troubled Debt Restructuring (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructuring, Number of Contracts | 2 | 4 |
Troubled Debt Restructuring, Pre-Modification Recorded Investment | $83 | $563 |
Troubled Debt Restructuring, Post- Modification Recorded Investment | 83 | 563 |
Commercial - Non Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructuring, Number of Contracts | 1 | 1 |
Troubled Debt Restructuring, Pre-Modification Recorded Investment | 61 | 32 |
Troubled Debt Restructuring, Post- Modification Recorded Investment | 61 | 32 |
Commercial Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructuring, Number of Contracts | 1 | 1 |
Troubled Debt Restructuring, Pre-Modification Recorded Investment | 22 | 238 |
Troubled Debt Restructuring, Post- Modification Recorded Investment | 22 | 238 |
Residential | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled Debt Restructuring, Number of Contracts | ' | 2 |
Troubled Debt Restructuring, Pre-Modification Recorded Investment | ' | 293 |
Troubled Debt Restructuring, Post- Modification Recorded Investment | ' | $293 |
Nonaccrual_Loans_and_Age_Analy
Non-accrual Loans and Age Analysis of Past Due Loans, Segregated by Class of Loans (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | $3,114 | $437 |
60 - 89 Days Past Due | 3 | 330 |
Equal to Greater than 90 Days Past Due | 1,080 | 2,214 |
Past Due | 4,197 | 2,981 |
Current | 273,672 | 275,529 |
Gross loans receivable | 277,869 | 278,510 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 5,357 | 4,788 |
Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 16 | 1 |
60 - 89 Days Past Due | 3 | 2 |
Past Due | 19 | 3 |
Current | 2,991 | 2,551 |
Gross loans receivable | 3,010 | 2,554 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 6 | 6 |
Commercial - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 218 | 46 |
Equal to Greater than 90 Days Past Due | 105 | 154 |
Past Due | 323 | 200 |
Current | 20,282 | 17,228 |
Gross loans receivable | 20,605 | 17,428 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 291 | 463 |
Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 104 | ' |
60 - 89 Days Past Due | ' | 77 |
Equal to Greater than 90 Days Past Due | ' | 684 |
Past Due | 104 | 761 |
Current | 56,630 | 57,154 |
Gross loans receivable | 56,734 | 57,915 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 629 | 1,689 |
Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Equal to Greater than 90 Days Past Due | 325 | 503 |
Past Due | 325 | 503 |
Current | 51,338 | 51,297 |
Gross loans receivable | 51,663 | 51,800 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 325 | 503 |
Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 7,630 | 7,748 |
Gross loans receivable | 7,630 | 7,748 |
90 Days Past Due and Still Accruing | ' | ' |
Construction & Development | 1-4 Family Residential | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 1,761 | 1,745 |
Gross loans receivable | 1,761 | 1,745 |
90 Days Past Due and Still Accruing | ' | ' |
Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 2,433 | 158 |
Equal to Greater than 90 Days Past Due | 240 | 240 |
Past Due | 2,673 | 398 |
Current | 17,899 | 24,375 |
Gross loans receivable | 20,572 | 24,773 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 2,999 | 599 |
Construction & Development | Farmland | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Equal to Greater than 90 Days Past Due | 136 | 252 |
Past Due | 136 | 252 |
Current | 275 | 279 |
Gross loans receivable | 411 | 531 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 136 | 252 |
Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 175 | 157 |
60 - 89 Days Past Due | ' | 242 |
Equal to Greater than 90 Days Past Due | 173 | 355 |
Past Due | 348 | 754 |
Current | 85,633 | 82,995 |
Gross loans receivable | 85,981 | 83,749 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 772 | 1,128 |
Residential | Equity Lines | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 to 59 Days Past Due | 168 | 75 |
60 - 89 Days Past Due | ' | 9 |
Equal to Greater than 90 Days Past Due | 75 | ' |
Past Due | 243 | 84 |
Current | 27,298 | 28,133 |
Gross loans receivable | 27,541 | 28,217 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 147 | 95 |
Residential | Junior Liens | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Equal to Greater than 90 Days Past Due | 26 | 26 |
Past Due | 26 | 26 |
Current | 1,027 | 1,080 |
Gross loans receivable | 1,053 | 1,106 |
90 Days Past Due and Still Accruing | ' | ' |
Non-accrual Status | 52 | 53 |
Others | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 908 | 944 |
Gross loans receivable | 908 | 944 |
90 Days Past Due and Still Accruing | ' | ' |
Risk_Category_of_Loans_and_Lea
Risk Category of Loans and Leases (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | $277,869 | $278,510 |
Commercial - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 20,605 | 17,428 |
Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 56,734 | 57,915 |
Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 51,663 | 51,800 |
Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 7,630 | 7,748 |
Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 20,572 | 24,773 |
Construction & Development | Farmland | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 411 | 531 |
Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 120,301 | 118,830 |
Pass | Commercial - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 16,715 | 13,289 |
Pass | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 87,832 | 87,007 |
Pass | Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 47,957 | 47,207 |
Pass | Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 34,048 | 33,875 |
Pass | Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 5,827 | 5,925 |
Pass | Construction & Development | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 15,754 | 18,534 |
Pass | Construction & Development | 1-4 Family | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 1,159 | 1,133 |
Pass | Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 14,320 | 17,122 |
Pass | Construction & Development | Farmland | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 275 | 279 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 23,018 | 25,007 |
Special Mention | Commercial - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 3,004 | 3,157 |
Special Mention | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 17,833 | 18,333 |
Special Mention | Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 4,325 | 6,009 |
Special Mention | Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 11,705 | 10,501 |
Special Mention | Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 1,803 | 1,823 |
Special Mention | Construction & Development | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 2,181 | 3,517 |
Special Mention | Construction & Development | 1-4 Family | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 245 | 252 |
Special Mention | Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 1,936 | 3,265 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 16,057 | 18,103 |
Substandard | Commercial - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 886 | 982 |
Substandard | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 10,362 | 12,123 |
Substandard | Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 4,452 | 4,699 |
Substandard | Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 5,910 | 7,424 |
Substandard | Construction & Development | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 4,809 | 4,998 |
Substandard | Construction & Development | 1-4 Family | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 357 | 360 |
Substandard | Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 4,316 | 4,386 |
Substandard | Construction & Development | Farmland | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | $136 | $252 |
Consumer_Related_Loans_Segrega
Consumer Related Loans, Segregated by Class of Loans (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | $277,869 | $278,510 |
Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 3,010 | 2,554 |
Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 85,981 | 83,749 |
Residential | Junior Liens | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 1,053 | 1,106 |
Performing Financing Receivable | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 116,943 | 114,842 |
Performing Financing Receivable | Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 3,004 | 2,548 |
Performing Financing Receivable | Consumer Other Financing Receivable | Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 3,004 | 2,548 |
Performing Financing Receivable | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 113,939 | 112,294 |
Performing Financing Receivable | Residential | Equity Lines | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 27,394 | 28,122 |
Performing Financing Receivable | Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 85,518 | 83,092 |
Performing Financing Receivable | Residential | Junior Liens | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 1,027 | 1,080 |
Nonperforming Financing Receivable | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 642 | 784 |
Nonperforming Financing Receivable | Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 6 | 6 |
Nonperforming Financing Receivable | Consumer Other Financing Receivable | Consumer - Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 6 | 6 |
Nonperforming Financing Receivable | Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 636 | 778 |
Nonperforming Financing Receivable | Residential | Equity Lines | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 147 | 95 |
Nonperforming Financing Receivable | Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | 463 | 657 |
Nonperforming Financing Receivable | Residential | Junior Liens | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Totals | $26 | $26 |
Changes_in_Allowance_for_Loan_
Changes in Allowance for Loan Losses by Segment (Detail) (USD $) | 3 Months Ended | 3 Months Ended | ||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Consumer - Non Real Estate | Consumer - Non Real Estate | Commercial - Non Real Estate | Commercial - Non Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Construction & Development | Construction & Development | Construction & Development | Construction & Development | Construction & Development | Construction & Development | Construction & Development | Residential | Residential | Residential | Residential | Unallocated | Unallocated | ||||
Owner occupied | Owner occupied | Income Producing | Income Producing | Multifamily | Multifamily | 1-4 Family Residential | 1-4 Family Residential | Construction & Development, Other | Construction & Development, Other | Farmland | Farmland | Farmland | 1-4 Family Residential | 1-4 Family Residential | Equity Lines | Equity Lines | ||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Beginning Balance | $6,015 | [1] | $6,890 | $44 | $98 | $176 | $1,209 | $1,224 | $1,359 | $831 | $773 | $50 | $78 | $52 | $78 | $580 | $728 | ' | $3 | $3 | $1,218 | $1,267 | $332 | $314 | $1,505 | $986 |
Charge offs | -123 | -594 | -8 | -11 | -48 | -9 | ' | -216 | ' | -21 | ' | ' | ' | -5 | ' | ' | -8 | ' | ' | -8 | -126 | -59 | -198 | ' | ' | |
Recoveries | 157 | 1,348 | 7 | 11 | 80 | 1,290 | 4 | 12 | ' | 20 | ' | ' | ' | ' | 2 | 2 | ' | ' | ' | 62 | 3 | 2 | 10 | ' | ' | |
Provision | 1,062 | -1,146 | 8 | -6 | -8 | -1,855 | -49 | 325 | 626 | -1 | 69 | -9 | -16 | 8 | 526 | -61 | 9 | ' | ' | -72 | 93 | -9 | 238 | -13 | 113 | |
Ending Balance | $7,111 | $6,498 | $51 | $92 | $200 | $635 | $1,179 | $1,480 | $1,457 | $771 | $119 | $69 | $36 | $81 | $1,108 | $669 | $1 | $3 | $3 | $1,200 | $1,237 | $266 | $364 | $1,492 | $1,099 | |
[1] | Derived from audited consolidated financial statements. |
Individually_Evaluated_for_Imp
Individually Evaluated for Impairment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Individually Evaluated for Impairment, Allowance | $1,901 | $563 |
Individually Evaluated for Impairment, Total Loans | 38,045 | 40,146 |
Consumer - Non Real Estate | ' | ' |
Individually Evaluated for Impairment, Allowance | 3 | ' |
Individually Evaluated for Impairment, Total Loans | 529 | 76 |
Commercial - Non Real Estate | ' | ' |
Individually Evaluated for Impairment, Allowance | 24 | 25 |
Individually Evaluated for Impairment, Total Loans | 2,221 | 2,304 |
Commercial Real Estate | Owner occupied | ' | ' |
Individually Evaluated for Impairment, Allowance | 92 | 77 |
Individually Evaluated for Impairment, Total Loans | 6,227 | 7,146 |
Commercial Real Estate | Income Producing | ' | ' |
Individually Evaluated for Impairment, Allowance | 750 | 126 |
Individually Evaluated for Impairment, Total Loans | 10,765 | 11,021 |
Commercial Real Estate | Multifamily | ' | ' |
Individually Evaluated for Impairment, Allowance | 82 | 12 |
Individually Evaluated for Impairment, Total Loans | 1,215 | 1,226 |
Construction & Development | 1-4 Family Residential | ' | ' |
Individually Evaluated for Impairment, Allowance | 7 | 8 |
Individually Evaluated for Impairment, Total Loans | 357 | 360 |
Construction & Development | Construction & Development, Other | ' | ' |
Individually Evaluated for Impairment, Allowance | 732 | 107 |
Individually Evaluated for Impairment, Total Loans | 4,682 | 4,721 |
Construction & Development | Farmland | ' | ' |
Individually Evaluated for Impairment, Total Loans | 135 | 252 |
Residential | 1-4 Family Residential | ' | ' |
Individually Evaluated for Impairment, Allowance | 211 | 208 |
Individually Evaluated for Impairment, Total Loans | 11,693 | 12,945 |
Residential | Equity Lines | ' | ' |
Individually Evaluated for Impairment, Total Loans | 147 | 95 |
Unallocated | ' | ' |
Individually Evaluated for Impairment, Total Loans | $74 | ' |
Collectively_Evaluated_for_Imp
Collectively Evaluated for Impairment (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | $5,210 | $5,452 |
Collectively Evaluated for Impairment, Total Loans | 239,824 | 238,364 |
Consumer - Non Real Estate | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 48 | 44 |
Collectively Evaluated for Impairment, Total Loans | 2,481 | 2,478 |
Commercial - Non Real Estate | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 176 | 151 |
Collectively Evaluated for Impairment, Total Loans | 18,384 | 15,124 |
Commercial Real Estate | Owner occupied | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 1,087 | 1,147 |
Collectively Evaluated for Impairment, Total Loans | 50,507 | 50,769 |
Commercial Real Estate | Income Producing | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 707 | 705 |
Collectively Evaluated for Impairment, Total Loans | 40,898 | 40,779 |
Commercial Real Estate | Multifamily | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 37 | 38 |
Collectively Evaluated for Impairment, Total Loans | 6,415 | 6,522 |
Construction & Development | 1-4 Family Residential | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 29 | 44 |
Collectively Evaluated for Impairment, Total Loans | 1,404 | 1,385 |
Construction & Development | Construction & Development, Other | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 376 | 473 |
Collectively Evaluated for Impairment, Total Loans | 15,890 | 20,052 |
Construction & Development | Farmland | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 3 | 3 |
Collectively Evaluated for Impairment, Total Loans | 276 | 279 |
Residential | 1-4 Family Residential | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 989 | 1,010 |
Collectively Evaluated for Impairment, Total Loans | 75,341 | 71,910 |
Residential | Equity Lines | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 266 | 332 |
Collectively Evaluated for Impairment, Total Loans | 27,394 | 28,122 |
Unallocated | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Collectively Evaluated for Impairment, Allowance | 1,492 | 1,505 |
Collectively Evaluated for Impairment, Total Loans | $834 | $944 |
Summary_of_Outstanding_Financi
Summary of Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) (Commitments, USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Loss Contingencies [Line Items] | ' |
Commitments | $31,803 |
Unfunded loan commitments | ' |
Loss Contingencies [Line Items] | ' |
Commitments | 31,682 |
Financial standby letters of credit | ' |
Loss Contingencies [Line Items] | ' |
Commitments | $121 |
Assets_Measured_on_Recurring_a
Assets Measured on Recurring and Non-recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | $127,794 | $130,131 |
U.S. Government agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 41,552 | 40,930 |
State and municipal bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 10,545 | 10,181 |
Mortgage-backed | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 37,461 | 38,204 |
Impaired Loans | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a non-recurring basis | 36,144 | 39,583 |
Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a non-recurring basis | 2,092 | 1,233 |
Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 89,558 | 89,315 |
Level 2 | U.S. Government agency securities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 41,552 | 40,930 |
Level 2 | State and municipal bonds | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 10,545 | 10,181 |
Level 2 | Mortgage-backed | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a recurring basis | 37,461 | 38,204 |
Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 38,236 | 40,816 |
Level 3 | Impaired Loans | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a non-recurring basis | 36,144 | 39,583 |
Level 3 | Other real estate owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets valued on a non-recurring basis | $2,092 | $1,233 |
Outstanding_Borrowings_and_Ann
Outstanding Borrowings and Annual Rate of Interest (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Outstanding Balance | $53,577 | $53,243 |
Annual Interest Rate | 4.19% | 4.21% |
Securities sold under overnight repurchase agreements | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Outstanding Balance | 722 | 388 |
Annual Interest Rate | 0.15% | 0.14% |
Securities sold under term repurchase agreements | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Outstanding Balance | 45,000 | 45,000 |
Annual Interest Rate | 4.38% | 4.38% |
Trust preferred securities | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Outstanding Balance | 5,155 | 5,155 |
Annual Interest Rate | 3.20% | 3.19% |
Subordinated debt | ' | ' |
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' |
Outstanding Balance | $2,700 | $2,700 |
Annual Interest Rate | 4.00% | 4.00% |
Borrowed_Funds_Additional_Info
Borrowed Funds - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ' | ' | |
Securities sold under agreements to repurchase | $45,722,000 | $45,388,000 | [1] |
Borrowings in the form of securities sold | 53,577,000 | 53,243,000 | |
Issued trust preferred securities | 90,558,000 | 90,315,000 | [1] |
Securities sold under term repurchase agreements | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Securities sold under agreements to repurchase | 45,000,000 | ' | |
Percentage of marketable investment securities used to secure borrowings | 109.50% | ' | |
Borrowings in the form of securities sold | 45,000,000 | 45,000,000 | |
Federal Home Loan Bank Advances | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Immediately available credit | 7,300,000 | ' | |
Junior Subordinated Debt | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Borrowings in the form of securities sold | 5,200,000 | ' | |
Trust preferred securities | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Borrowings in the form of securities sold | 5,155,000 | 5,155,000 | |
Preferred securities, liquidation amount | 155,000 | ' | |
Trust preferred securities redemption price percentage | 100.00% | ' | |
Trust preferred security frequency of payment | 'Interest is payable quarterly on the trust preferred securities at the annual rate of 90-day LIBOR plus 300 basis points | ' | |
Subordinated debt floating rate spread | 3.00% | ' | |
Trust preferred securities | Bank of Carolinas Trust I | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Issued trust preferred securities | 5,000,000 | ' | |
Subordinated debt | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Borrowings in the form of securities sold | $2,700,000 | $2,700,000 | |
Subordinated debt floating rate spread | 0.75% | ' | |
Subordinated debt Maturity Date | 13-Aug-18 | ' | |
[1] | Derived from audited consolidated financial statements. |
Securities_Sold_Under_Term_Rep
Securities Sold Under Term Repurchase Agreements (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
In Thousands, unless otherwise specified | Securities sold under term repurchase agreements | Securities sold under term repurchase agreements | Securities sold under term repurchase agreements | |||
Agreement dated 7/8/2008 | Agreement dated 8/20/2008 | |||||
Assets Sold under Agreements to Repurchase [Line Items] | ' | ' | ' | ' | ' | |
Outstanding Principal Balance | $45,722 | $45,388 | [1] | $45,000 | $25,000 | $20,000 |
Annual Effective Interest Rate | ' | ' | 4.38% | 4.85% | 3.78% | |
Final Maturity Date | ' | ' | ' | 8-Jul-18 | 20-Aug-15 | |
Beginning Quarterly Call Dates | ' | ' | ' | 8-Jul-13 | 20-Aug-11 | |
Collateral Requirement | ' | ' | $10,208 | $6,761 | $3,447 | |
[1] | Derived from audited consolidated financial statements. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
In Millions, except Share data, unless otherwise specified | US Treasury Securities | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | |
Preferred stock authorized | 3,000,000 | 3,000,000 | [1] | ' | ' |
Preferred shares issued | 13,179 | 13,179 | [1] | ' | ' |
Preferred shares outstanding | 13,179 | 13,179 | [1] | ' | ' |
Preferred shares, liquidation preference | $1,000 | $1,000 | ' | ' | |
Cumulative amount of dividends in arrears, not declared | $2.10 | ' | $1.90 | ' | |
Common stock authorized | 15,000,000 | 15,000,000 | [1] | ' | ' |
Common stock par value | $5 | $5 | [1] | ' | ' |
Common shares issued | 3,895,840 | 3,895,840 | [1] | ' | ' |
Common shares outstanding | 3,895,840 | 3,895,840 | [1] | ' | ' |
Company issued the U.S. Treasury a warrant to purchase common shares | ' | ' | ' | 475,204 | |
Common stock par value | ' | ' | ' | 4.16 | |
Warrant, expiration date | ' | ' | ' | 17-Apr-19 | |
[1] | Derived from audited consolidated financial statements. |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax [Line Items] | ' | ' |
Valuation allowance established against deferred tax asset | $17.60 | $17.70 |
Going_Concern_Considerations_A
Going Concern Considerations - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | |||||
Nov. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | |
Cash and cash equivalents | ' | ' | $15,055,000 | $14,842,000 | [1] | $15,020,000 | $7,786,000 |
Long term debt maturity in 2014 | ' | ' | 0 | ' | ' | ' | |
Reduction of risk-weighted assets | ' | ' | 49,100,000 | ' | ' | ' | |
Reductions in other borrowings | ' | ' | 34,700,000 | ' | ' | ' | |
Retired advances in FHLB | 10,000,000 | 10,000,000 | ' | ' | ' | ' | |
Early redemption penalty paid | $7,000 | $273,000 | ' | ' | ' | ' | |
Remaining average life of advances | ' | ' | '1 year | ' | ' | ' | |
Average interest rate of Advances | ' | ' | 1.21% | ' | ' | ' | |
Average interest rates, institutional certificates of deposit | ' | ' | 0.55% | ' | ' | ' | |
Minimum | ' | ' | ' | ' | ' | ' | |
Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | |
Brokered certificates of deposit, maturities range | ' | ' | '2 months | ' | ' | ' | |
Brokered certificates of deposit, Interest rate range | ' | ' | 0.75% | ' | ' | ' | |
Maximum | ' | ' | ' | ' | ' | ' | |
Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | |
Brokered certificates of deposit, maturities range | ' | ' | '27 months | ' | ' | ' | |
Brokered certificates of deposit, Interest rate range | ' | ' | 2.40% | ' | ' | ' | |
[1] | Derived from audited consolidated financial statements. |