Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 21, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | '1st Century Bancshares, Inc. | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 9,957,536 | ' |
Entity Public Float | ' | ' | $51,400,000 |
Amendment Flag | 'false | ' | ' |
Entity Central Index Key | '0001420525 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $6,648 | $6,967 |
Interest-earning deposits at other financial institutions | 38,040 | 43,588 |
Total cash and cash equivalents | 44,688 | 50,555 |
Investment securities — Available for Sale (“AFSâ€), at estimated fair value | 106,272 | 181,225 |
Loans, net of allowance for loan losses of $7,236 and $6,015 at December 31, 2013 and 2012, respectively | 376,312 | 260,656 |
Premises and equipment, net | 1,285 | 1,020 |
Federal Home Loan Bank (“FHLBâ€) and Federal Reserve Bank (“FRBâ€) stock | 4,632 | 3,778 |
Accrued interest and other assets | 4,956 | 1,939 |
Total Assets | 538,145 | 499,173 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Non-interest bearing demand deposits | 236,869 | 196,026 |
Interest bearing deposits: | ' | ' |
Interest bearing checking (“NOWâ€) | 21,005 | 23,233 |
Money market deposits and savings | 151,879 | 152,094 |
Certificates of deposit less than $100 | 870 | 1,341 |
Certificates of deposit of $100 or greater | 42,143 | 43,987 |
Total deposits | 452,766 | 416,681 |
Other borrowings | 27,500 | 29,475 |
Accrued interest and other liabilities | 2,491 | 3,844 |
Total Liabilities | 482,757 | 450,000 |
Commitments and contingencies (Note 10) | 0 | 0 |
Stockholders’ Equity: | ' | ' |
Preferred stock, $0.01 par value — 10,000,000 shares authorized, none issued and outstanding at December 31, 2013 and 2012, respectively | 0 | 0 |
Common stock, $0.01 par value — 50,000,000 shares authorized, 11,378,710 and 10,965,560 issued at December 31, 2013 and 2012, respectively | 114 | 110 |
Additional paid-in capital | 67,231 | 65,038 |
Accumulated deficit | -4,036 | -10,899 |
Accumulated other comprehensive income | 52 | 2,436 |
Treasury stock at cost — 1,897,902 and 1,828,432 shares at December 31, 2013 and 2012, respectively | -7,973 | -7,512 |
Total Stockholders’ Equity | 55,388 | 49,173 |
Total Liabilities and Stockholders’ Equity | $538,145 | $499,173 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for Loan Losses (in Dollars) | $7,236 | $6,015 |
Preferred Stock, Par Value (in Dollars per share) | $0.01 | $0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value (in Dollars per share) | $0.01 | $0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 11,378,710 | 10,965,560 |
Treasury Stock, Shares | 1,897,902 | 1,828,432 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and fee income on: | ' | ' |
Loans | $14,014 | $11,378 |
Investments | 2,709 | 3,429 |
Other | 293 | 232 |
Total interest and fee income | 17,016 | 15,039 |
Interest expense on: | ' | ' |
Deposits | 483 | 665 |
Borrowings | 325 | 301 |
Total interest expense | 808 | 966 |
Net interest income | 16,208 | 14,073 |
Provision for loan losses | 100 | ' |
Net interest income after provision for loan losses | 16,108 | 14,073 |
Non-interest income | 1,793 | 1,986 |
Non-interest expenses: | ' | ' |
Compensation and benefits | 8,173 | 6,944 |
Occupancy | 1,456 | 1,288 |
Professional fees | 833 | 698 |
Technology | 739 | 691 |
Marketing | 335 | 328 |
FDIC assessments | 274 | 325 |
Other operating expenses | 2,287 | 2,732 |
Total non-interest expenses | 14,097 | 13,006 |
Income before income taxes | 3,804 | 3,053 |
Income tax provision | -3,059 | 111 |
Net income | 6,863 | 2,942 |
Other Comprehensive Income: | ' | ' |
Net change in unrealized gains on AFS investments, net of tax | -2,384 | 869 |
Comprehensive Income | $4,479 | $3,811 |
Basic earnings per share (in Dollars per share) | $0.79 | $0.35 |
Diluted earnings per share (in Dollars per share) | $0.76 | $0.33 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
In Thousands, except Share data | ||||||
Ending Balance at Dec. 31, 2011 | $108 | $64,488 | ($13,841) | $1,567 | ($7,271) | $45,051 |
Ending Balance (in Shares) at Dec. 31, 2011 | 10,841,033 | ' | ' | ' | -1,769,248 | ' |
Restricted stock issued | 3 | -3 | ' | ' | ' | ' |
Restricted stock issued (in Shares) | 164,152 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock (in Shares) | -39,625 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock | -1 | -69 | ' | ' | ' | -70 |
Compensation expense associated with restricted stock awards, net | ' | 622 | ' | ' | ' | 622 |
Shares surrendered to pay taxes on vesting of restricted stock | ' | ' | ' | ' | -75 | -75 |
Shares surrendered to pay taxes on vesting of restricted stock (in Shares) | ' | ' | ' | ' | -15,337 | ' |
Common stock repurchased | ' | ' | ' | ' | -166 | -166 |
Common stock repurchased (in Shares) | ' | ' | ' | ' | -43,847 | ' |
Net income | ' | ' | 2,942 | ' | ' | 2,942 |
Other comprehensive income | ' | ' | ' | 869 | ' | 869 |
Balance at December 31, 2013 at Dec. 31, 2012 | 110 | 65,038 | -10,899 | 2,436 | -7,512 | 49,173 |
Balance at December 31, 2013 (in Shares) at Dec. 31, 2012 | 10,965,560 | ' | ' | ' | -1,828,432 | ' |
Restricted stock issued | 1 | -1 | ' | ' | ' | ' |
Restricted stock issued (in Shares) | 138,500 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock (in Shares) | -12,250 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock | 0 | -24 | ' | ' | ' | -24 |
Exercise of stock option | 3 | 1,432 | ' | ' | ' | 1,435 |
Exercise of stock option (in Shares) | 286,900 | ' | ' | ' | ' | ' |
Compensation expense associated with restricted stock awards, net | ' | 786 | ' | ' | ' | 786 |
Shares surrendered to pay taxes on vesting of restricted stock | ' | ' | ' | ' | -461 | -461 |
Shares surrendered to pay taxes on vesting of restricted stock (in Shares) | ' | ' | ' | ' | -69,365 | ' |
Common stock repurchased | ' | ' | ' | ' | 0 | ' |
Common stock repurchased (in Shares) | ' | ' | ' | ' | -105 | ' |
Net income | ' | ' | 6,863 | ' | ' | 6,863 |
Other comprehensive income | ' | ' | ' | -2,384 | ' | -2,384 |
Balance at December 31, 2013 at Dec. 31, 2013 | $114 | $67,231 | ($4,036) | $52 | ($7,973) | $55,388 |
Balance at December 31, 2013 (in Shares) at Dec. 31, 2013 | 11,378,710 | ' | ' | ' | -1,897,902 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | ' | ' |
Net income | $6,863,000 | $2,942,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of premises and equipment | 508,000 | 459,000 |
Amortization of premiums on investment securities, net | 1,623,000 | 1,597,000 |
Provision for loan losses | 100,000 | ' |
Deferred income tax benefit | -3,175,000 | ' |
Accretion of deferred loan fees and costs, net | -23,000 | -78,000 |
Gain on sale of AFS investment securities | -822,000 | ' |
Non-cash stock compensation, net of forfeitures | 762,000 | 552,000 |
Loss on sale of OREO | ' | 21,000 |
Decrease (increase) in accrued interest and other assets | 122,000 | -185,000 |
Increase in accrued interest and other liabilities | 350,000 | 467,000 |
Net cash provided by operating activities | 6,308,000 | 5,775,000 |
Activity in AFS investment securities: | ' | ' |
Purchases | -5,943,000 | -90,778,000 |
Maturities and principal reductions | 40,132,000 | 39,339,000 |
Proceeds from sale of securities | 35,912,000 | ' |
Proceeds from sale of OREO | ' | 29,000 |
Increase in loans, net | -115,733,000 | -32,997,000 |
Purchase of premises and equipment | -773,000 | -384,000 |
Purchase of FRB stock and FHLB stock | -854,000 | -816,000 |
Net cash used in investing activities | -47,259,000 | -85,607,000 |
Cash flows from financing activities: | ' | ' |
Net increase in deposits | 36,085,000 | 84,227,000 |
Net repayments of short-term borrowings | -4,475,000 | ' |
Proceeds from other long-term borrowings | 5,000,000 | 4,475,000 |
Repayment of other long-term borrowings | -2,500,000 | ' |
Proceeds from exercise of stock options | 1,435,000 | ' |
Purchase of treasury stock | ' | -166,000 |
Shares surrendered to pay taxes on vesting of restricted stock | -461,000 | -75,000 |
Net cash provided by financing activities | 35,084,000 | 88,461,000 |
(Decrease) increase in cash and cash equivalents | -5,867,000 | 8,629,000 |
Cash and cash equivalents, beginning of year | 50,555,000 | 41,926,000 |
Cash and cash equivalents, end of year | 44,688,000 | 50,555,000 |
Cash paid during the year for: | ' | ' |
Interest | 936,000 | 936,000 |
Income taxes | 193,000 | 151,000 |
Supplemental disclosure of non-cash investing activity: | ' | ' |
Transfer of commercial real estate to OREO | ' | $140,000 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
(1) Summary of Significant Accounting Policies | |||||||||
Nature of Operations | |||||||||
1st Century Bancshares, Inc., a Delaware corporation (“Bancshares”) is a bank holding company with one subsidiary, 1st Century Bank, National Association (the “Bank”). The Bank commenced operations on March 1, 2004 in the State of California operating under the laws of a National Association (“N.A.”) regulated by the Office of the Comptroller of the Currency (the “OCC”). The Bank is a commercial bank that focuses on closely held and family owned businesses and their employees, professional service firms, real estate professionals and investors, the legal, accounting and medical professions, and small and medium-sized businesses and individuals principally in Los Angeles County. The Bank provides a wide range of banking services to meet the financial needs of the local residential community, with an orientation primarily directed toward owners and employees of the Bank’s business client base. The Bank is subject to both the regulations of and periodic examinations by the OCC, which is the Bank’s federal regulatory agency. Bancshares and the Bank are collectively referred to herein as “the Company.” | |||||||||
Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of Bancshares and the Bank. All inter-company accounts and transactions have been eliminated in consolidation. | |||||||||
Certain items in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. | |||||||||
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. A summary of the significant accounting and reporting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: | |||||||||
Use of Estimates | |||||||||
Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant assumptions and estimates used by management in preparation of the consolidated financial statements include assumptions and assessments made in connection with calculating the allowance for loan losses and determining the realizability of the Company’s deferred tax assets. It is at least reasonably possible that certain assumptions and estimates could prove to be incorrect and cause actual results to differ materially and adversely from the amounts reported in the consolidated financial statements included herewith. | |||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents include cash and due from banks, interest earning deposits at other financial institutions with original maturities less than 90 days and all highly liquid investments with original maturities of less than 90 days. | |||||||||
Cash Flows | |||||||||
Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. | |||||||||
Investment Securities | |||||||||
Investment securities are classified in three categories. Debt securities that management has a positive intent and ability to hold to maturity are classified as “Held to Maturity” or “HTM” and are recorded at amortized cost. Debt and equity securities bought and held principally for the purpose of selling in the near term are classified as “Trading” securities and are measured at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as “Held to Maturity” or “Trading” with readily determinable fair values are classified as “Available for Sale” or “AFS” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company uses estimates from third parties in arriving at fair value determinations which are derived in accordance with fair value measurement standards. | |||||||||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of investment securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income provided that management does not have the intent to sell the securities and it is more likely than not that management will not have to sell the security before recovery of its cost basis. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||||||
Federal Reserve Bank Stock and Federal Home Loan Bank Stock | |||||||||
The Bank is a member of the Federal Reserve System (“Fed” or “FRB”). FRB stock is carried at cost and is considered a nonmarketable equity security. Cash dividends from the FRB are reported as interest income on an accrual basis. | |||||||||
The Bank is a member and stockholder of the capital stock of the Federal Home Loan Bank of San Francisco (“FHLB of San Francisco” or “FHLB”). Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB of San Francisco stock is carried at cost and is considered a nonmarketable equity security. Both cash and stock dividends are reported as interest income. | |||||||||
Loans | |||||||||
Loans, net, are stated at the unpaid principal balances less the allowance for loan losses and unamortized deferred fees and costs. Loan origination fees, net of related direct costs, are deferred and accreted to interest income as an adjustment to yield over the respective maturities of the loans using the effective interest method. | |||||||||
Interest on loans is accrued as earned on a daily basis, except where reasonable doubt exists as to the collection of interest and principal, in which case the accrual of interest is discontinued and the loan is placed on non-accrual status. Loans are placed on non-accrual at the time principal or interest is 90 days delinquent unless well secured and in the process of collection. Interest on non-accrual loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual status. In order for a loan to return to accrual status, all principal and interest amounts owed must be brought current and future payments must be reasonably assured. | |||||||||
A loan is charged-off at any time the loan is determined to be uncollectible. Collateral dependent loans, which generally include commercial real estate loans, residential loans, and construction and land loans, are typically charged down to their fair value of collateral less selling costs when a loan is impaired or on non-accrual status. All other loans are typically charged-off when, based upon current available facts and circumstances, it’s determined that either: (1) a loan is uncollectible, (2) repayment is determined to be protracted beyond a reasonable time frame, or (3) the loan is classified as a loss determined by either the Bank’s internal review process or by external examiners. | |||||||||
Loans are considered impaired when, based upon current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the original contractual terms of the loan agreement on a timely basis. The Company evaluates impairment on a loan-by-loan basis. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or by using the loan’s most recent market value or the fair value of the collateral if the loan is collateral dependent. Loans that experience insignificant payment delays or payment shortfalls are generally not considered to be impaired. | |||||||||
When the measurement of an impaired loan is less than the recorded amount of the loan, a valuation allowance is established by recording a charge to the provision for loan losses. Subsequent increases or decreases in the valuation allowance for impaired loans are recorded by adjusting the existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses. The Company’s policy for recognizing interest income on impaired loans is the same as that for non-accrual loans. | |||||||||
Troubled Debt Restructurings | |||||||||
In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before their loan reaches nonaccrual status. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Effective July 1, 2011, the Company adopted the provisions of Accounting Standards Update (“ASU”) 2012-02, Receivables (“Topic 310”) - A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring (“ASU 11-02”). | |||||||||
Allowance for Loan Losses | |||||||||
The allowance for loan losses is established through a provision for loan losses charged to operations and represents an estimate of credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. Loan losses are charged against the allowance when management believes that principal is uncollectible. Subsequent repayments or recoveries, if any, are credited to the allowance. Management periodically assesses the adequacy of the allowance for loan losses by reference to many quantitative and qualitative factors that may be weighted differently at various times depending on prevailing conditions. The provisions reflect management’s evaluation of the adequacy of the allowance based, in part, upon the historical loss experience of the loan portfolio, as well as estimates from historical peer group loan loss data and the loss experience of other financial institutions, augmented by management judgment. During this process, loans are separated into the following portfolio segments: commercial loans, commercial real estate, residential, land and construction, and consumer and other loans. The relative significance of risk considerations vary by portfolio segment. For commercial loans, commercial real estate loans and land and construction, the primary risk consideration is a borrower’s ability to generate sufficient cash flows to repay their loan. Secondary considerations include the creditworthiness of guarantors and the valuation of collateral. In addition to the creditworthiness of a borrower, the type and location of real estate collateral is an important risk factor for commercial real estate and land and construction loans. The primary risk consideration for residential loans and consumer loans are a borrower’s personal cash flow and liquidity, as well as collateral value. | |||||||||
Loss ratios for all portfolio segments are evaluated on a quarterly basis. Loss ratios associated with historical loss experience are determined based on a rolling migration analysis of each portfolio segment within the portfolio. This migration analysis estimates loss factors based on the performance of each portfolio segment over a four and a half year time period. These loss ratios are then adjusted, if determined necessary, based on other factors including, but not limited to, historical peer group loan loss data and the loss experience of other financial institutions. Management carefully monitors changing economic conditions, the concentrations of loan categories, values of collateral, the financial condition of the borrowers, the history of the loan portfolio, and historical peer group loan loss data to determine the adequacy of the allowance for loan losses. As a part of this process, management typically focuses on loan-to-value (“LTV”) percentages to assess the adequacy of loss ratios of collateral dependent loans within each portfolio segment discussed above, trends within each portfolio segment, as well as general economic and real estate market conditions where the collateral and borrower are located. For loans that are not collateral dependent, which generally consist of commercial and consumer and other loans, management typically focuses on general business conditions where the borrower operates, trends within the portfolio, and other external factors to evaluate the severity of loss factors. The allowance is based on estimates and actual losses may vary from the estimates. | |||||||||
In addition, regulatory agencies, as a part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. No assurance can be given that adverse future economic conditions will not lead to increased delinquent loans, and increases in the provision for loan losses and/or charge-offs. Management believes that the allowance as of December 31, 2013 and 2012 was adequate to absorb probable incurred credit losses inherent in the loan portfolio. | |||||||||
Other Real Estate Owned | |||||||||
OREO represents real estate acquired through or in lieu of foreclosure. OREO is held for sale and is initially recorded at fair value less estimated costs of disposition at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or estimated fair value less costs of disposition. OREO is included in accrued interest and other assets within the Consolidated Balance Sheets and the net operating results, if any, from OREO are recognized as non-interest expense within the Consolidated Statements of Operations and Comprehensive Income. | |||||||||
Furniture, Fixtures and Equipment, net | |||||||||
Leasehold improvements and furniture, fixtures and equipment are carried at cost, less depreciation and amortization. Furniture, fixtures and equipment are depreciated using the straight-line method over the estimated useful life of the asset (three to ten years). Leasehold improvements are depreciated using the straight-line method over the terms of the related leases or the estimated lives of the improvements, whichever is shorter. | |||||||||
Advertising Costs | |||||||||
Advertising costs are expensed as incurred. | |||||||||
Income Taxes | |||||||||
The Company files consolidated federal and combined state income tax returns. Income tax expense or benefit is the total of the current year income tax payable or refundable and the change in the deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. | |||||||||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in the rates and laws. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company records a valuation allowance if it believes, based on all available evidence, that it is “more likely than not” that the future tax assets will not be realized. This assessment requires management to evaluate the Company’s ability to generate sufficient future taxable income or use eligible tax carrybacks, if any, to determine the need for a valuation allowance. | |||||||||
During the year ended December 31, 2009, management established a full valuation allowance against the Company’s deferred tax assets after we determined that it was “more likely than not” that the Company would not be able to realize the benefit of the deferred tax asset. During the year ended December 31, 2013, management reassessed the need for this valuation allowance and concluded that a valuation allowance was no longer appropriate and that it is more likely than not that these assets will be realized. As a result, management reversed the valuation allowance as an income tax benefit in the Consolidated Statements of Operations and Comprehensive Income. In making this determination, management analyzed, among other things, the Company’s recent history of earnings and cash flows, forecasts of future earnings, improvements in the credit quality of the Company’s loan portfolio, the nature and timing of future deductions and benefits represented by the deferred tax assets and our cumulative earnings for the 12 quarters preceding the reversal of this valuation allowance. | |||||||||
At December 31, 2013, the Company had a net deferred tax asset of approximately $3.1 million, compared to net deferred tax liability for net unrealized gains on investment securities of $1.7 million at December 31, 2012. The net deferred tax asset at December 31, 2013, primarily consists of deferred tax assets related to federal and state net operating loss carryforwards and the allowance for loan losses. | |||||||||
At December 31, 2013 and 2012, the Company did not have any tax benefits disallowed under accounting standards for uncertainties in income taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. If applicable, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. | |||||||||
See Note 16 “Income Taxes” for further discussion regarding the Company’s tax positions at December 31, 2013 and 2012. | |||||||||
Comprehensive Income | |||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on Available for Sale securities, are reported as a separate component of the stockholders’ equity section of the Consolidated Balance Sheets and, along with net income, are components of comprehensive income. | |||||||||
Earnings per Share | |||||||||
The Company reports both basic and diluted earnings per share. Basic earnings per share is determined by dividing net income by the average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net income by the average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. Potential dilutive common shares related to outstanding stock options and restricted stock are determined using the treasury stock method. For the years ended December 31, 2013 and 2012, there were 370,073 and 1,179,373, respectively, of stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the years ended December 31, 2013 and 2012, there were 91,660 and 164,152, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. | |||||||||
Years ended December 31, | |||||||||
(dollars in thousands) | 2012 | ||||||||
2013 | |||||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Average number of common shares outstanding | 8,660,641 | 8,520,420 | |||||||
Effect of dilution of stock options | 161,046 | — | |||||||
Effect of dilution of restricted stock | 257,955 | 265,144 | |||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,079,642 | 8,785,564 | |||||||
Fair Value of Financial Instruments | |||||||||
The Company is required to make certain disclosures about its use of fair value measurements in the preparation of its financial statements. These standards establish a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. | |||||||||
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. | ||||||||
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. | ||||||||
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||||||||
Stock-Based Compensation | |||||||||
The Company has granted restricted stock awards to directors, employees, and a vendor under the 1st Century Bancshares 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”). The restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. | |||||||||
Recent Accounting Pronouncements | |||||||||
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (“Topic 210”) – Disclosures about Offsetting Assets and Liabilities (“ASU 11-11”). This ASU amends Topic 210, “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to a master netting arrangement or similar agreement. ASU 11-11 was effective for annual and interim periods beginning on January 1, 2013. The adoption of this ASU did not have a significant impact on the Company’s financial position, results of operations, or cash flows. | |||||||||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (“Topic 220”) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 13-02”). This ASU requires 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 GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. ASU 13-02 was effective prospectively for annual and interim periods beginning after December 15, 2012. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, or cash flows. | |||||||||
In December 2013, the FASB issued ASU 2013-12, Definition of a Public Business Entity - An Addition to the Master Glossary (“ASU 2013-12”). This ASU amends the Master Glossary of the FASB Accounting Standards Codification to include one definition of public business entity for future use in U.S. GAAP and identifies the types of business entities that are excluded from the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies. ASU 2013-12 did not have a significant impact on the Company’s financial position, results of operations, or cash flows. |
Note_2_Investment_Securities
Note 2 - Investment Securities | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Investment [Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
(2) Investment Securities | |||||||||||||||||||||||||||||||||||||||||
The following is a summary of the investments categorized as Available for Sale at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Corporate Notes | 3,074 | 34 | — | 3,108 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 103,109 | 959 | (904 | ) | 103,164 | ||||||||||||||||||||||||||||||||||||
Total | $ | 106,183 | $ | 993 | $ | (904 | ) | $ | 106,272 | ||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Gov’t Treasuries | $ | 2,136 | $ | 71 | $ | — | $ | 2,207 | |||||||||||||||||||||||||||||||||
Corporate Notes | 34,534 | 741 | — | 35,275 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 140,416 | 3,345 | (18 | ) | 143,743 | ||||||||||||||||||||||||||||||||||||
Total | $ | 177,086 | $ | 4,157 | $ | (18 | ) | $ | 181,225 | ||||||||||||||||||||||||||||||||
The Company did not have any investment securities categorized as “Held to Maturity” or “Trading” at December 31, 2013 or 2012. At December 31, 2013 and 2012, there were no holdings of securities of any one issuer other than the U.S. government or its agencies, in an amount greater than 10% of shareholders’ equity. | |||||||||||||||||||||||||||||||||||||||||
Additionally, at December 31, 2013 and 2012, the carrying amount of securities pledged to the State of California Treasurer’s Office to secure their deposits was $45.4 million and $47.7 million, respectively. Deposits from the State of California were $38.0 million and $34.0 million at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||||||
The following table summarizes the fair value of AFS securities and the weighted average yield of investment securities by contractual maturity at December 31, 2013. Residential mortgage-backed securities are included in maturity categories based on their stated maturity date. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. The weighted average life of these securities was 3.78 years at December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | 1 Year or | Weighted | After 1 | Weighted | After 5 | Weighted | After 10 | Weighted | Total | Weighted | |||||||||||||||||||||||||||||||
Less | Average | Through 5 | Average | Through | Average | Years | Average | Average | |||||||||||||||||||||||||||||||||
Yield | Years | Yield | 10 Years | Yield | Yield | Yield | |||||||||||||||||||||||||||||||||||
Corporate Notes | $ | 502 | 1.12 | % | $ | 2,606 | 1.35 | % | $ | — | — | % | $ | — | — | % | $ | 3,108 | 1.31 | % | |||||||||||||||||||||
Residential Mortgage-Backed Securities | — | — | — | — | 54,317 | 1.84 | 48,847 | 2.42 | 103,164 | 2.12 | |||||||||||||||||||||||||||||||
Total | $ | 502 | 1.12 | % | $ | 2,606 | 1.35 | % | $ | 54,317 | 1.84 | % | $ | 48,847 | 2.42 | % | $ | 106,272 | 2.09 | % | |||||||||||||||||||||
A total of 36 and four securities had unrealized losses at December 31, 2013 and 2012, respectively. Information pertaining to securities with gross unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: | |||||||||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or More | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Fair Value | Gross | Fair Value | |||||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (904 | ) | $ | 51,847 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (18 | ) | $ | 7,584 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
The Company’s assessment that it has the ability to continue to hold impaired investment securities along with its evaluation of their future performance provide the basis for it to conclude that its impaired securities are not other-than-temporarily impaired. In assessing whether it is more likely than not that the Company will be required to sell any impaired security before its anticipated recovery, which may be at their maturity, it considers the significance of each investment, the amount of impairment, as well as the Company’s liquidity position and the impact on the Company’s capital position. As a result of its analyses, the Company determined at December 31, 2013 and 2012 that the unrealized losses on its securities portfolio on which impairments had not been recognized are temporary. |
Note_3_Loans_Allowance_for_Loa
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||||||||||||||||||
(3) Loans, Allowance for Loan Losses, and Non-Performing Assets | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, total loans outstanding totaled $383.5 million and $266.7 million, respectively. The categories of loans listed below are grouped in accordance with the primary purpose of the loans, but in the aggregate 86.9% and 84.5% of all loans are secured by real estate at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||||||
Outstanding | of Total | Outstanding | of Total | ||||||||||||||||||||||
Commercial (1) | $ | 76,397 | 19.9 | % | $ | 58,769 | 22 | % | |||||||||||||||||
Commercial real estate | 167,419 | 43.7 | % | 110,031 | 41.3 | % | |||||||||||||||||||
Residential | 82,795 | 21.6 | % | 53,162 | 19.9 | % | |||||||||||||||||||
Land and construction | 30,102 | 7.8 | % | 19,080 | 7.2 | % | |||||||||||||||||||
Consumer and other (2) | 26,787 | 7 | % | 25,584 | 9.6 | % | |||||||||||||||||||
Loans, gross | 383,500 | 100 | % | 266,626 | 100 | % | |||||||||||||||||||
Net deferred costs | 48 | 45 | |||||||||||||||||||||||
Less — allowance for loan losses | (7,236 | ) | (6,015 | ) | |||||||||||||||||||||
Loans, net | $ | 376,312 | $ | 260,656 | |||||||||||||||||||||
-1 | Unsecured commercial loan balances were $13.2 million and $10.0 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
-2 | Unsecured consumer and other loan balances were $2.3 million and $901,000 at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, substantially all of the Company’s loan customers were located in Southern California. | |||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | |||||||||||||||||||||||||
The following is a summary of activities for the allowance for loan losses and recorded investment in loans as of December 31, 2013 and 2012, respectively: | |||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | Total | |||||||||||||||||||
Real Estate | Construction | and Other | |||||||||||||||||||||||
For the Year Ended December 31, 2013: | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
Provision for loan losses | (1,765 | ) | 1,210 | 250 | 400 | 5 | 100 | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||
Recoveries | 1,071 | — | — | — | 50 | 1,121 | |||||||||||||||||||
Ending balance | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 35 | $ | — | $ | — | $ | — | $ | — | $ | 35 | |||||||||||||
Ending balance: collectively evaluated for impairment | 1,548 | 3,660 | 758 | 811 | 424 | 7,201 | |||||||||||||||||||
Total | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | |||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 924 | $ | — | $ | — | $ | — | $ | 29 | $ | 953 | |||||||||||||
Ending balance: collectively evaluated for impairment | 75,473 | 167,419 | 82,795 | 30,102 | 26,758 | 382,547 | |||||||||||||||||||
Total | $ | 76,397 | $ | 167,419 | $ | 82,795 | $ | 30,102 | $ | 26,787 | $ | 383,500 | |||||||||||||
For the Year Ended December 31, 2012: | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | |||||||||||||
Provision for loan losses | (305 | ) | 485 | (75 | ) | (100 | ) | (5 | ) | — | |||||||||||||||
Charge-offs | (26 | ) | (400 | ) | — | (5 | ) | — | (431 | ) | |||||||||||||||
Recoveries | 24 | 1,113 | — | — | 25 | 1,162 | |||||||||||||||||||
Ending balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 500 | $ | — | $ | — | $ | — | $ | — | $ | 500 | |||||||||||||
Ending balance: collectively evaluated for impairment | 1,777 | 2,450 | 508 | 411 | 369 | 5,515 | |||||||||||||||||||
Total | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,799 | $ | — | $ | — | $ | — | $ | 345 | $ | 2,144 | |||||||||||||
Ending balance: collectively evaluated for impairment | 56,970 | 110,031 | 53,162 | 19,080 | 25,239 | 264,482 | |||||||||||||||||||
Total | $ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | $ | 266,626 | |||||||||||||
There were no loans acquired with deteriorated credit quality as of December 31, 2013 and 2012. | |||||||||||||||||||||||||
In addition to the allowance for loan losses, the Company also estimates probable losses related to unfunded lending commitments. Unfunded lending commitments are subject to individual reviews and are analyzed and segregated by product type. These classifications, in conjunction with an analysis of historical loss experience, current economic conditions, performance trends within specific portfolio segments and any other pertinent information, result in the estimation of the reserve for unfunded lending commitments. Provision for credit losses related to unfunded lending commitments is reported in other operating expenses in the Consolidated Statements of Operations and Comprehensive Income. The allowance held for unfunded lending commitments is reported in accrued interest and other liabilities within the accompanying Consolidated Balance Sheets, and not as part of the allowance for loan losses in the above tables. As of December 31, 2013 and 2012, the allowance for unfunded lending commitments was $270,000 and $203,000, respectively and is primarily related to $104.3 million and $74.2 million in commitments to extend credit to customers and $2.6 million and $1.9 million in standby/commercial letters of credit at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Non-Performing Assets | |||||||||||||||||||||||||
The following table presents an aging analysis of the recorded investment of past due loans as of December 31, 2013 and 2012. Payment activity is reviewed by management on a monthly basis to determine the performance of each loan. Loans are considered to be non-performing when a loan is greater than 90 days delinquent. Loans that are 90 days or more past due may still accrue interest if they are well-secured and in the process of collection. Total additions to non-performing loans during the years ended December 31, 2013 and 2012 were $198,000 and none, respectively. Non-performing loans represented 0.2% and 0.7% of total loans at December 31, 2013 and 2012, respectively. There were no accruing loans past due 90 days or more at December 31, 2013. At December 31, 2012, there was one accruing residential loan totaling $2.3 million that was past due 90 days or more. This loan continued to accrue interest because it was well secured and in the process of collection. | |||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | > 90 Days | Total | Current | Total | |||||||||||||||||||
Days Past | Days Past | Past Due | Past Due | ||||||||||||||||||||||
Due | Due | ||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Commercial | $ | 187 | $ | — | $ | 706 | $ | 893 | $ | 75,504 | $ | 76,397 | |||||||||||||
Commercial real estate | — | — | — | — | 167,419 | 167,419 | |||||||||||||||||||
Residential | — | — | — | — | 82,795 | 82,795 | |||||||||||||||||||
Land and construction | — | — | — | — | 30,102 | 30,102 | |||||||||||||||||||
Consumer and other | — | — | 29 | 29 | 26,758 | 26,787 | |||||||||||||||||||
Totals | $ | 187 | $ | — | $ | 735 | $ | 922 | $ | 382,578 | $ | 383,500 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Commercial | $ | 599 | $ | 577 | $ | 812 | $ | 1,988 | $ | 56,781 | $ | 58,769 | |||||||||||||
Commercial real estate | 4,828 | — | 2,300 | 7,128 | 102,903 | 110,031 | |||||||||||||||||||
Residential | — | — | — | — | 53,162 | 53,162 | |||||||||||||||||||
Land and construction | — | — | — | — | 19,080 | 19,080 | |||||||||||||||||||
Consumer and other | — | — | 345 | 345 | 25,239 | 25,584 | |||||||||||||||||||
Totals | $ | 5,427 | $ | 577 | $ | 3,457 | $ | 9,461 | $ | 257,165 | $ | 266,626 | |||||||||||||
The following table sets forth non-accrual loans and other real estate owned at December 31, 2013 and 2012: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||
Commercial | $ | 706 | $ | 1,509 | |||||||||||||||||||||
Commercial real estate | — | — | |||||||||||||||||||||||
Land and construction | — | — | |||||||||||||||||||||||
Consumer and other | 29 | 345 | |||||||||||||||||||||||
Total non-accrual loans | 735 | 1,854 | |||||||||||||||||||||||
OREO | 90 | 90 | |||||||||||||||||||||||
Total non-performing assets | $ | 825 | $ | 1,944 | |||||||||||||||||||||
Non-performing assets to gross loans and OREO | 0.22 | % | 0.73 | % | |||||||||||||||||||||
Non-performing assets to total assets | 0.15 | % | 0.39 | % | |||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||
The following table represents the credit exposure by internally assigned grades at December 31, 2013 and 2012. This grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements in accordance with the loan terms. The Company’s internal credit risk grading system is based on management’s experiences with similarly graded loans. Credit risk grades are reassessed each quarter based on any recent developments potentially impacting the creditworthiness of the borrower, as well as other external statistics and factors, which may affect the risk characteristics of the respective loan. | |||||||||||||||||||||||||
The Company’s internally assigned grades are as follows: | |||||||||||||||||||||||||
Pass – Strong credit with no existing or known potential weaknesses deserving of management’s close attention. | |||||||||||||||||||||||||
Special Mention – Potential weaknesses that deserve management’s close attention. Borrower and guarantor’s capacity to meet all financial obligations is marginally adequate or deteriorating. | |||||||||||||||||||||||||
Substandard – Inadequately protected by the paying capacity of the Borrower and/or collateral pledged. The borrower or guarantor is unwilling or unable to meet loan terms or loan covenants for the foreseeable future. | |||||||||||||||||||||||||
Doubtful – All the weakness inherent in one classified as Substandard with the added characteristic that those weaknesses in place make the collection or liquidation in full, on the basis of current conditions, highly questionable and improbable. | |||||||||||||||||||||||||
Loss – Considered uncollectible or no longer a bankable asset. This classification does not mean that the asset has absolutely no recoverable value. In fact, a certain salvage value is inherent in these loans. Nevertheless, it is not practical or desirable to defer writing off a portion or whole of a perceived asset even though partial recovery may be collected in the future. | |||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | ||||||||||||||||||||
Real Estate | Construction | and Other | |||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 73,824 | $ | 166,828 | $ | 82,795 | $ | 26,801 | $ | 26,503 | |||||||||||||||
Special Mention | 1,149 | — | — | 3,301 | 206 | ||||||||||||||||||||
Substandard | 1,424 | 591 | — | — | 78 | ||||||||||||||||||||
Total | $ | 76,397 | $ | 167,419 | $ | 82,795 | $ | 30,102 | $ | 26,787 | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 49,717 | $ | 109,397 | $ | 53,162 | $ | 19,080 | $ | 25,190 | |||||||||||||||
Special Mention | 6,609 | — | — | — | — | ||||||||||||||||||||
Substandard | 2,443 | 634 | — | — | 394 | ||||||||||||||||||||
Total | $ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | |||||||||||||||
There were no loans assigned to the Doubtful or Loss grade as of December 31, 2013 and 2012. | |||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
The following table includes the recorded investment and unpaid principal balances for impaired loans with the associated allowance amount, if applicable. Management determined the specific allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the specific allowance recorded. Also presented in the table below are the average recorded investments in the impaired loans and the related amount of interest recognized during the time within the period that the impaired loans were impaired. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on non-accrual status, contractual interest is credited to interest income when received, under the cash basis method. The average balances are calculated based on the month-end balances of the loans of the period reported. | |||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||
As of and for the year ended December 31, 2013: | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 789 | $ | 1,065 | $ | — | $ | 841 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | 29 | 29 | — | 240 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 135 | $ | 142 | $ | 35 | $ | 155 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | — | — | — | — | |||||||||||||||||||||
Totals: | |||||||||||||||||||||||||
Commercial | $ | 924 | $ | 1,207 | $ | 35 | $ | 996 | |||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Consumer and other | $ | 29 | $ | 29 | $ | — | $ | 240 | |||||||||||||||||
As of and for the year ended December 31, 2012: | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 988 | $ | 1,303 | $ | — | $ | 1,098 | |||||||||||||||||
Commercial real estate | — | — | — | 3,113 | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | 1,155 | |||||||||||||||||||||
Consumer and other | 345 | 345 | — | 345 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 811 | $ | 1,990 | $ | 500 | $ | 1,084 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | — | — | — | — | |||||||||||||||||||||
Totals: | |||||||||||||||||||||||||
Commercial | $ | 1,799 | $ | 3,293 | $ | 500 | $ | 2,182 | |||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | 3,113 | |||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | 1,155 | |||||||||||||||||
Consumer and other | $ | 345 | $ | 345 | $ | — | $ | 345 | |||||||||||||||||
During the years ended December 31, 2013 and 2012, the average balance of impaired loans was $1.2 million and $6.8 million, respectively. As of December 31, 2013 and 2012, there was $735,000 and $1.9 million, respectively, of impaired loans on non-accrual status. During the year ended December 31, 2013 and 2012, interest income recognized on impaired loans subsequent to their classification as impaired was $9,000 and $12,000, respectively. The Company stops accruing interest on these loans on the date they are classified as non-accrual and reverses any uncollected interest that had been previously accrued as income. The Company may begin recognizing interest income on these loans as cash interest payments are received, if collection of principal is reasonably assured. | |||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
Troubled debt restructurings for the years ended December 31, 2013 and 2012 are set forth in the following table. | |||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(dollars in thousands) | Number | Pre | Post | Number | Pre | Post | |||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial | — | $ | — | $ | — | 3 | $ | 988 | $ | 988 | |||||||||||||||
The modifications in connection with the troubled debt restructurings during the year ended December 31, 2012 were primarily related to extending the amortization period of these loans. The impact on the Company’s determination of the allowance for loan losses related to these troubled debt restructurings was not material and resulted in no charge-offs during the year ended December 31, 2013 and 2012. During the year ended December 31, 2013, there was one commercial loan, with a recorded investment of $572,000 at December 31, 2013, that defaulted within twelve months of its modification date. As of December 31, 2012, there had been no defaults on any loans that were modified as troubled debt restructurings during the preceding twelve months. A troubled debt restructuring is considered to be in default once it becomes 60 days or more past due following a modification. |
Note_4_Derivative_Financial_In
Note 4 - Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | ' | ||||||||||||||||
(4) Derivative Financial Instruments | |||||||||||||||||
The fair value of derivative positions outstanding is included in accrued interest receivable and other assets and accrued interest payable and other liabilities in the accompanying Consolidated Balance Sheets and in the net change in each of these financial statement line items in the accompanying Consolidated Statements of Cash Flows. | |||||||||||||||||
Interest Rate Derivatives. The Company utilizes interest rate swaps to facilitate the needs of its customers. The Company has entered into interest rate swaps that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows the Company’s customer to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations. | |||||||||||||||||
The notional amounts and estimated fair values of interest rate derivative contracts outstanding at December 31, 2013 and 2012 are presented in the following table. The Company obtains dealer quotations to value its interest rate derivative contracts. | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(in thousands) | Notional | Estimated | Notional | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||
Commercial loan interest rate swaps | $ | 2,706 | $ | 15 | $ | 2,800 | $ | 107 | |||||||||
Commercial loan interest rate swaps | $ | (2,706 | ) | $ | (15 | ) | $ | (2,800 | ) | $ | (107 | ) | |||||
The weighted-average rates paid and received for interest rate swaps outstanding at December 31, 2013 and 2012 were as follows: | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||
Interest | Interest | Interest | Interest | ||||||||||||||
Rate | Rate | Rate | Rate | ||||||||||||||
Paid | Received | Paid | Received | ||||||||||||||
Non-hedging interest rate swaps | 3.37 | % | 4.85 | % | 3.41 | % | 4.85 | % | |||||||||
Non-hedging interest rate swaps | 4.85 | % | 3.37 | % | 4.85 | % | 3.41 | % | |||||||||
Gains, Losses and Derivative Cash Flows. For non-hedging derivative instruments, gains and losses due to changes in fair value and all cash flows are included in other non-interest income and other non-interest expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. | |||||||||||||||||
As stated above, the Company enters into non-hedge related derivative positions primarily to accommodate the business needs of its customers. Upon the origination of a derivative contract with a customer, the Company simultaneously enters into an offsetting derivative contract with a third party. The Company recognizes immediate income based upon the difference in the bid/ask spread of the underlying transactions with its customers and the third party. Because the Company acts only as an intermediary for its customer, subsequent changes in the fair value of the underlying derivative contracts for the most part offset each other and do not significantly impact the Company’s results of operations. |
Note_5_Comprehensive_Income
Note 5 - Comprehensive Income | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||
(5) Comprehensive Income | |||||||||
Comprehensive income, which includes net income, the net change in unrealized gains on investment securities available for sale and the reclassification of net gains included in earnings, is presented below: | |||||||||
For the Years Ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Other comprehensive income: | |||||||||
Increase in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($1,327) and $608, respectively | (1,900 | ) | 869 | ||||||
Reclassification for net gains included in earnings, net of tax expense of $338 and none, respectively | (484 | ) | — | ||||||
Comprehensive income | $ | 4,479 | $ | 3,811 | |||||
Activity of investment securities available for sale included in accumulated other comprehensive income, net of tax, is as follows: | |||||||||
For the Years Ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Beginning balance | $ | 2,436 | $ | 1,567 | |||||
Other comprehensive income (loss) before reclassifications | (1,900 | ) | 869 | ||||||
Amounts reclassified from accumulated other comprehensive income | (484 | ) | — | ||||||
Net other comprehensive income (loss) during the year | (2,384 | ) | 869 | ||||||
Ending balance | $ | 52 | $ | 2,436 | |||||
Note_6_Related_Party_Transacti
Note 6 - Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
(6) Related Party Transactions | |||||||||
In the normal course of business, the Company may make loans to officers and directors, as well as loans to companies and individuals affiliated with or guaranteed by officers and directors of the Company. Gross loan commitments for officers and directors of the Company at December 31, 2013 and 2012 were $3.1 million and $1.4 million, respectively. The outstanding balances for these loans were $1.5 million and $792,000 at December 31, 2013 and 2012, respectively. | |||||||||
The following is a summary of related party loan activities for the years ended December 31, 2013 and 2012: | |||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Beginning balance | $ | 792 | $ | 987 | |||||
Credits granted | 1,265 | 23 | |||||||
Repayments | (543 | ) | (218 | ) | |||||
Ending balance | $ | 1,514 | $ | 792 | |||||
Deposits by officers and directors of the Company at December 31, 2013 and 2012 totaled approximately $6.0 million and $10.8 million, respectively. |
Note_7_Premises_and_Equipment
Note 7 - Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
(7) Premises and Equipment | |||||||||
Premises and equipment are stated at cost less accumulated depreciation and amortization. The depreciation and amortization are computed on a straight line basis over the lesser of the lease term, or the estimated useful lives of the assets, generally three to ten years. | |||||||||
Premises and equipment at December 31, 2013 and 2012 are comprised of the following: | |||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Leasehold improvements | $ | 1,316 | $ | 973 | |||||
Furniture & equipment | 2,515 | 2,191 | |||||||
Software | 767 | 661 | |||||||
Total | 4,598 | 3,825 | |||||||
Accumulated depreciation | (3,313 | ) | (2,805 | ) | |||||
Premises and equipment, net | $ | 1,285 | $ | 1,020 | |||||
Depreciation and amortization included in occupancy expense for the years ended December 31, 2013 and 2012 amounted to $508,000 and $459,000, respectively. |
Note_8_Deposits
Note 8 - Deposits | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Deposit Liabilities Disclosures [Text Block] | ' | ||||||||||||||||
(8) Deposits | |||||||||||||||||
The following table reflects the summary of deposit categories by dollar and percentage at December 31, 2013 and 2012: | |||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(dollars in thousands) | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||
Non-interest bearing demand deposits | $ | 236,869 | 52.3 | % | $ | 196,026 | 47 | % | |||||||||
Interest bearing demand deposits | 21,005 | 4.6 | % | 23,233 | 5.6 | % | |||||||||||
Money market deposits and savings | 151,879 | 33.6 | % | 152,094 | 36.5 | % | |||||||||||
Certificates of deposit | 43,013 | 9.5 | % | 45,328 | 10.9 | % | |||||||||||
Total | $ | 452,766 | 100 | % | $ | 416,681 | 100 | % | |||||||||
At December 31, 2013, the Company had four certificates of deposits with the State of California Treasures’s Office for a total of $38.0 million that represented 8.4% of total deposits. Each of these deposits are scheduled to mature in the first quarter of 2014. The Company intends to renew each of these deposits at maturity. However, there can be no assurance that the State of California Treasurer’s Office will continue to maintain deposit accounts with the Company. At December 31, 2012, the Company had three certificate of deposit accounts with the State of California Treasurer’s Office for a total of $34.0 million that represented 8.2% of total deposits. The Company was required to pledge $41.8 million and $37.4 million of agency mortgage-backed securities at December 31, 2013 and 2012, respectively, in connection with these certificates of deposit. | |||||||||||||||||
At December 31, 2013, the Company had $2.1 million of Certificate of Deposit Accounts Registry Service (“CDARS”) reciprocal deposits, which represented 0.5% of total deposits. At December 31, 2012, the Company had $5.2 million of CDARS reciprocal deposits, which represented 1.3% of total deposits. | |||||||||||||||||
The aggregate amount of certificates of deposit of $100,000 or greater at December 31, 2013 and 2012 was $42.1 million and $44.0 million, respectively. At December 31, 2013, the maturity distribution of certificates of deposit of $100,000 or greater, including deposit accounts with the State of California Treasurer’s Office and CDARS, was as follows: $41.3 million maturing in six months or less, $806,000 maturing in six months to one year and none maturing in more than one year. | |||||||||||||||||
The table below sets forth the range of interest rates, amount and remaining maturities of the certificates of deposit at December 31, 2013. | |||||||||||||||||
(dollars in thousands) | Six months | Greater than | Greater than | ||||||||||||||
and less | six months | one year | |||||||||||||||
through one year | |||||||||||||||||
0.00% | to | 0.99% | $ | 42,007 | $ | 966 | $ | — | |||||||||
1.00% | to | 1.99% | — | — | 40 | ||||||||||||
Total | $ | 42,007 | $ | 966 | $ | 40 | |||||||||||
Note_9_Other_Borrowings
Note 9 - Other Borrowings | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ||||||||||||
Other Liabilities Disclosure [Text Block] | ' | ||||||||||||
(9) Other Borrowings | |||||||||||||
At December 31, 2013 and 2012, the Company had a borrowing/credit facility secured by a blanket lien on eligible loans at the FHLB of $169.9 million and $105.1 million, respectively. The Company had $27.5 million and $25.0 million of long-term borrowings outstanding under this borrowing/credit facility with the FHLB at December 31, 2013 and 2012, respectively. The Company had no overnight borrowings outstanding under this borrowing/credit facility at December 31, 2013 and 2012. | |||||||||||||
The following table summarizes the outstanding long-term borrowings under the borrowing/credit facility secured by a blanket lien on eligible loans at the FHLB at December 31, 2013 and 2012 (dollars in thousands): | |||||||||||||
December 31, | |||||||||||||
Maturity Date | Interest Rate | 2013 | 2012 | ||||||||||
23-May-13 | 0.63% | $ | — | $ | 2,500 | ||||||||
23-May-14 | 1.14% | 2,500 | 2,500 | ||||||||||
29-Dec-14 | 0.83% | 5,000 | 5,000 | ||||||||||
30-Dec-14 | 0.74% | 2,500 | 2,500 | ||||||||||
26-May-15 | 1.65% | 2,500 | 2,500 | ||||||||||
23-May-16 | 2.07% | 2,500 | 2,500 | ||||||||||
29-Dec-16 | 1.38% | 5,000 | 5,000 | ||||||||||
30-Dec-16 | 1.25% | 2,500 | 2,500 | ||||||||||
2-May-18 | 0.93% | 5,000 | — | ||||||||||
Total | $ | 27,500 | $ | 25,000 | |||||||||
At December 31, 2013, the Company also had $27.0 million in Federal fund lines of credit available with other correspondent banks that could be used to disburse loan commitments and to satisfy demands for deposit withdrawals. Each of these lines of credit is subject to conditions that the Company may not be able to meet at the time when additional liquidity is needed. The Company did not have any borrowings outstanding under these lines of credit at December 31, 2013. At December 31, 2012, there was a $4.5 million short-term overnight borrowing outstanding under these credit facilities at an interest rate of 1.09%. This borrowing was repaid on January 2, 2013. The Company did not incur any material interest expense charges in connection with this borrowing and there were no further borrowings under these facilities during the year ended December 31, 2013. As of December 31, 2013 and 2012, the Company had pledged $3.1 million of corporate notes related to these lines of credit. |
Note_10_Commitments_and_Contin
Note 10 - Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
(10) Commitments and Contingencies | |||||
Commitments to Extend Credit | |||||
The Company is 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, standby/commercial letters of credit and guarantees on revolving credit card limits. These instruments involve various levels and elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated financial statements. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company had $104.3 million and $74.2 million in commitments to extend credit to customers and $2.6 million and $1.9 million in standby/commercial letters of credit at December 31, 2013 and 2012, respectively. The Company also guarantees the outstanding balance on credit cards offered at the Company, but underwritten by another financial institution. The outstanding balances on these credit cards were $73,000 and $67,000 as of December 31, 2013 and 2012, respectively. | |||||
Lease Commitments | |||||
The Company leases office premises under two operating leases that will expire in December 2018 and June 2024, respectively. Rental expense, which is included in occupancy expense was $739,000 and $562,000 for the years ended December 31, 2013 and 2012, respectively. | |||||
The projected minimum rental payments under the term of the leases at December 31, 2013 are as follows (in thousands): | |||||
Years ending December 31, | |||||
2014 | $ | 738 | |||
2015 | 752 | ||||
2016 | 775 | ||||
2017 | 799 | ||||
2018 | 823 | ||||
Thereafter | 4,339 | ||||
Total | $ | 8,226 | |||
Litigation | |||||
The Company from time to time is party to lawsuits, which arise out of the normal course of business. At December 31, 2013 and 2012, the Company did not have any litigation that management believes will have a material impact on the Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Income. | |||||
Restricted Stock | |||||
The following table sets forth the Company’s future restricted stock expense, net of estimated forfeitures (in thousands): | |||||
Years ending December 31, | |||||
2014 | $ | 602 | |||
2015 | 349 | ||||
2016 | 165 | ||||
2017 | 54 | ||||
2018 | 10 | ||||
Total | $ | 1,180 | |||
Note_11_Fair_Value_Measurement
Note 11 - Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Note 11 - Fair Value Measurements [Line Items] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
(11) Fair Value Measurements | |||||||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and non-recurring basis as of December 31, 2013 and 2012, and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. | |||||||||||||||||||||
Assets and Liabilities Measured on a Recurring Basis | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in | Other Observable | Significant | |||||||||||||||||
Active Markets for | Inputs (Level 2) | Unobservable | |||||||||||||||||||
Identical Assets | Inputs (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
Corporate Notes | $ | 3,108 | $ | — | $ | 3,108 | $ | — | |||||||||||||
Residential Mortgage-Backed Securities | 103,164 | — | 103,164 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 15 | — | 15 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 15 | — | 15 | — | |||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
U.S. Gov’t treasuries | $ | 2,207 | $ | 2,207 | $ | — | $ | — | |||||||||||||
Corporate Notes | 35,275 | — | 35,275 | — | |||||||||||||||||
Residential Mortgage-Backed Securities | 143,743 | — | 143,743 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 107 | — | 107 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 107 | — | 107 | — | |||||||||||||||||
AFS securities — As of December 31, 2013 and 2012, the Level 2 fair value of the Company’s residential mortgage-backed securities was $103.2 million and $143.7 million, respectively. These securities consist primarily of agency mortgage-backed securities issued by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The underlying loans for these securities are residential mortgages that were primarily originated beginning in the year of 2003 through the current period. These loans are geographically dispersed throughout the United States. At December 31, 2013 and 2012, the weighted average rate and weighed average life of these securities were 2.12% and 1.95%, respectively, and 3.85 years and 2.92 years, respectively. | |||||||||||||||||||||
The valuation for investment securities utilizing Level 2 inputs were primarily determined by quotes received from an independent pricing service using matrix pricing, which is a mathematical technique widely used in the industry to value securities without relying exclusively on quoted market prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. There were no transfers into or out of Level 1 and 2 measurements during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
Assets Measured on a Non-Recurring Basis | |||||||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in | Other Observable | Significant | |||||||||||||||||
Active Markets for | Inputs (Level 2) | Unobservable Inputs | |||||||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 672 | $ | — | $ | — | $ | 672 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 762 | $ | — | $ | — | $ | 762 | |||||||||||||
At December 31, 2012: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 889 | $ | — | $ | — | $ | 889 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 979 | $ | — | $ | — | $ | 979 | |||||||||||||
Impaired loans — At the time a loan is considered impaired, it is valued at the lower of cost or fair value. The fair value of impaired loans that are collateral dependent is determined using various valuation techniques which are not readily observable in the market place, including consideration of appraised values and other pertinent real estate market data. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. The Company recorded net recoveries of $1.1 million and $731,000 on impaired loans during the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||||||
Other real estate owned — OREO represents real estate acquired through or in lieu of foreclosure. OREO is held for sale and is initially recorded at fair value less estimated costs of disposition at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or estimated fair value less costs of disposition. The fair value of OREO is determined using various valuation techniques which are not readily observable in the market place, including consideration of appraised values and other pertinent real estate market data. | |||||||||||||||||||||
Estimate of Fair Value Measurement [Member] | ' | ||||||||||||||||||||
Note 11 - Fair Value Measurements [Line Items] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
(12) Estimated Fair Value Information | |||||||||||||||||||||
The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Estimated fair value amounts have been determined by using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented are not necessarily indicative of the amounts the Company could realize in a current market exchange. | |||||||||||||||||||||
The methods and assumptions used to estimate the fair value of each class of financial instruments for which it is practicable to estimate the value are explained below. | |||||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||||
The carrying amounts are considered to be their estimated fair values and are classified as Level 1 because of the short-term maturity of these instruments which includes Federal funds sold and interest-earning deposits at other financial institutions. | |||||||||||||||||||||
Investment securities | |||||||||||||||||||||
AFS investment securities are carried at fair value, which are based on quoted prices of exact or similar securities, or on inputs that are observable, either directly or indirectly. The Company obtains quoted prices through third party brokers. Investment securities are classified as Level 1 to the extent that they are based on quoted prices for identical instrument traded in active markets. Investment securities are classified as Level 2 for valuations based on quotes prices for similar securities or inputs that are observable, either directly or indirectly. | |||||||||||||||||||||
FRB and FHLB stock | |||||||||||||||||||||
It is not practical to determine the fair value of FRB and FHLB stock due to restrictions placed on its transferability. | |||||||||||||||||||||
Loans, net | |||||||||||||||||||||
For loans, the fair value is estimated using market quotes for similar assets or the present value of future cash flows, discounted using the current rate at which similar loans would be made to borrowers with similar credit ratings and for the same maturities and giving consideration to estimated prepayment risk and credit risk. The fair value of loans is determined utilizing estimates resulting in a Level 3 classification. | |||||||||||||||||||||
Impaired loans are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate, except that as a practical expedient, the Company may measure impairment based on a loan’s observable market price, or the fair value of the collateral (net of estimated costs to sell) if the loan is collateral dependent. The fair value of impaired loans is determined utilizing estimates resulting in a Level 3 classification. | |||||||||||||||||||||
Off-balance sheet credit-related instruments | |||||||||||||||||||||
The fair values of commitments, which include standby letters of credit and commercial letters of credit, are based upon fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The related fees are not considered material to the Company’s financial statements as a whole and the fair market value of the Company’s off-balance sheet credit-related instruments cannot be readily determined. The fair value of these items is determined utilizing estimates resulting in a Level 3 classification. | |||||||||||||||||||||
Derivatives | |||||||||||||||||||||
The fair value of derivatives is based on valuation models using observable market data as of the measurement date and is classified as Level 2. | |||||||||||||||||||||
Deposits | |||||||||||||||||||||
For demand deposits, the carrying amount approximates fair value. The fair values of interest bearing checking, savings, and money market deposits are estimated by discounting future cash flows using the interest rates currently offered for deposits of similar products. Because of the short-term maturity of these deposits, the carrying amounts are considered to be their estimated fair values and are classified as Level 1. | |||||||||||||||||||||
The fair values of the certificates of deposit are estimated by discounting future cash flows based on the rates currently offered for certificates of deposit with similar interest rates and remaining maturities. The fair value of certificates of deposit is determined utilizing estimates resulting in a Level 2 classification. | |||||||||||||||||||||
Other borrowings | |||||||||||||||||||||
The fair values of long term FHLB advances are estimated based on the rates currently offered by the FHLB for advances with similar interest rates and remaining maturities. The fair value of other borrowings is determined utilizing estimates resulting in a Level 2 classification. | |||||||||||||||||||||
Accrued interest | |||||||||||||||||||||
The estimated fair value for both accrued interest receivable and accrued interest payable are considered to be equivalent to the carrying amounts, resulting in a Level 1 classification. | |||||||||||||||||||||
The estimated fair value and carrying amounts of the financial instruments at December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||
Carrying | Fair Value Measurements Using: | ||||||||||||||||||||
(dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 44,688 | $ | 44,688 | $ | — | $ | — | $ | 44,688 | |||||||||||
Investment securities | 106,272 | — | 106,272 | — | 106,272 | ||||||||||||||||
FRB stock | 1,570 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 3,062 | — | — | — | N/A | ||||||||||||||||
Loans, net | 376,312 | — | — | 376,249 | 376,249 | ||||||||||||||||
Non-hedging interest rate swaps | 15 | — | 15 | — | 15 | ||||||||||||||||
Accrued interest receivable | 1,132 | 1,132 | — | — | 1,132 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 236,869 | $ | 236,869 | $ | — | $ | — | $ | 236,869 | |||||||||||
Interest bearing deposits | 215,897 | 172,884 | 43,013 | — | 215,897 | ||||||||||||||||
Other borrowings | 27,500 | — | 27,562 | — | 27,562 | ||||||||||||||||
Non-hedging interest rate swaps | 15 | — | 15 | — | 15 | ||||||||||||||||
Accrued interest payable | 29 | 29 | — | — | 29 | ||||||||||||||||
Carrying | Fair Value Measurements Using: | ||||||||||||||||||||
(dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 50,555 | $ | 50,555 | $ | — | $ | — | $ | 50,555 | |||||||||||
Investment securities | 181,225 | 2,207 | 179,018 | — | 181,225 | ||||||||||||||||
FRB stock | 1,363 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 2,415 | — | — | — | N/A | ||||||||||||||||
Loans, net | 260,656 | — | — | 260,482 | 260,482 | ||||||||||||||||
Non-hedging interest rate swaps | 107 | — | 107 | — | 107 | ||||||||||||||||
Accrued interest receivable | 1,322 | 1,322 | — | — | 1,322 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 196,026 | $ | 196,026 | $ | — | $ | — | $ | 196,026 | |||||||||||
Interest bearing deposits | 220,655 | 175,327 | 45,328 | — | 220,655 | ||||||||||||||||
Other borrowings | 29,475 | — | 29,885 | — | 29,885 | ||||||||||||||||
Non-hedging interest rate swaps | 107 | — | 107 | — | 107 | ||||||||||||||||
Accrued interest payable | 157 | 157 | — | — | 157 | ||||||||||||||||
Note_13_NonInterest_Income
Note 13 - Non-Interest Income | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Note 13 - Non-Interest Income [Line Items] | ' | ||||||||
Other Income and Other Expense Disclosure [Text Block] | ' | ||||||||
(13) Non-Interest Income | |||||||||
The following table summarizes the information regarding non-interest income for the years ended December 31, 2013 and 2012, respectively: | |||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Loan arrangement fees | $ | 667 | $ | 1,461 | |||||
Gain on sale of AFS investment securities | 822 | — | |||||||
Service charges and other operating income | 304 | 525 | |||||||
Total non-interest income | $ | 1,793 | $ | 1,986 | |||||
Other Operating Expense [Member] | ' | ||||||||
Note 13 - Non-Interest Income [Line Items] | ' | ||||||||
Other Income and Other Expense Disclosure [Text Block] | ' | ||||||||
(14) Other Operating Expenses | |||||||||
The following table summarizes the information regarding other operating expenses for the years ended December 31, 2013, and 2012, respectively: | |||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Loan expenses | $ | 413 | $ | 1,012 | |||||
Board of Directors fees/non-cash stock expenses | 362 | 261 | |||||||
OCC assessments | 135 | 120 | |||||||
Branch/customer expense | 525 | 451 | |||||||
Stationery and supplies | 89 | 74 | |||||||
Insurance | 87 | 76 | |||||||
Dues, memberships and subscriptions | 123 | 129 | |||||||
Stockholders expense | 136 | 74 | |||||||
Telephone | 122 | 76 | |||||||
Delaware Franchise Tax | 107 | 64 | |||||||
Provision for unfunded lending commitments | 67 | — | |||||||
Other expenses | 121 | 395 | |||||||
Total other operating expenses | $ | 2,287 | $ | 2,732 | |||||
Note_15_StockBased_Compensatio
Note 15 - Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
(15) Stock-Based Compensation | |||||||||||||||||
On May 8, 2013, the shareholders of the Company approved the Company’s 2013 Equity Incentive Plan (the “Plan”), which provides for the grant of up to 750,000 shares of Common Stock to employees, including officers and directors, non-employee directors and consultants. Stock options, stock appreciation rights, restricted stock and other stock awards, and restricted stock units are all available for grant pursuant to the terms and conditions of the Plan. As a result of shareholder approval of the Plan, no further grants will be made under the 2004 Founder Stock Option Plan, the Director and Employee Stock Option Plan or the 2005 Equity Incentive Plan, however these plans shall remain in effect with respect to options and restricted stock awards previously granted. As of December 31, 2013, there have been no awards granted under the Plan. | |||||||||||||||||
Prior to the approval of the Plan, the Company granted restricted stock awards to directors and employees under the 2005 Equity Incentive Plan. Restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the requisite service period. On April 30, 2013, the Company granted 138,500 restricted stock awards to employees with various vesting periods as follows: 50% or 69,250 awards that vest in three years, 25% or 34,625 awards that vest in four years, and 25% or 34,625 awards that vest in five years. On May 15, 2012, the Company granted 145,000 restricted stock awards to employees with various vesting periods as follows: 50% or 72,500 awards that vest in three years, 25% or 36,250 awards that vest in four years, and 25% or 36,250 awards that vest in five years. | |||||||||||||||||
Non-cash stock compensation expense recognized in the Consolidated Statements of Operations and Comprehensive Income related to the restricted stock awards, net of estimated forfeitures, was $749,000 and $552,000 for the years ended December 31, 2013 and 2012, respectively. The fair value of restricted stock awards that vested during the years ended December 31, 2013, and 2012 was $686,000 and $414,000, respectively. | |||||||||||||||||
The following table reflects the activities related to restricted stock awards outstanding for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Restricted Shares | Number | Weighted Avg | Number | Weighted Avg | |||||||||||||
of | Fair Value at | of | Fair Value at | ||||||||||||||
Shares | Grant Date | Shares | Grant Date | ||||||||||||||
Beginning balance | 563,516 | $ | 4.23 | 536,733 | $ | 4.03 | |||||||||||
Granted | 138,500 | 5.82 | 164,152 | 4.83 | |||||||||||||
Vested | (160,237 | ) | 4.28 | (97,744 | ) | 4.23 | |||||||||||
Forfeited and surrendered | (12,250 | ) | 4.56 | (39,625 | ) | 4.05 | |||||||||||
Ending balance | 529,529 | $ | 4.62 | 563,516 | $ | 4.23 | |||||||||||
The Company recognizes compensation expense for stock options by amortizing the fair value at the grant date over the service, or vesting period. | |||||||||||||||||
During the year ended December 31, 2013 and 2012, there were 41,900 and none, respectively, options exercised under the 2004 Founder Stock Option Plan at a weighted average exercise price of $5.00 per share. There have been no options granted or cancelled under the 2004 Founder Stock Option Plan for the year ended December 31, 2013 or 2012. The remaining contractual life of the 2004 Founder Stock Options outstanding was 0.15 years and 1.15 years at December 31, 2013 and 2012, respectively. All options under the 2004 Founder Stock Option Plan were exercisable at Decemer 31, 2013 and 2012. There were 91,800 and 133,700 shares outstanding at December 31, 2013 and 2012, respectively, with a weighted average exercise price of $5.00. | |||||||||||||||||
There have been no options granted or cancelled under the Director and Employee Stock Option Plan for the years ended December 31, 2013 or 2012. During the years ended December 31, 2012 and 2013 there were 245,000 and none options exercised under this plan. The remaining contractual life of the Director and Employee Stock Options outstanding was 0.79 years and 1.64 years at December 31, 2013 and 2012, respectively. All options under the Directors and Employee Stock Option Plan were exercisable at December 31, 2013 and 2012. At December 31, 2013 and 2012, there were 800,673 and 1,045,673, respectively, of shares outstanding under the Director and Employee Stock Option Plan with weighted average exercise prices of $6.37 and $6.05, respectively. | |||||||||||||||||
The following tables detail the amount of shares authorized and available under all stock plans as of December 31, 2013: | |||||||||||||||||
Shares Reserved | Less Shares Previously | Less Shares | Total Shares | ||||||||||||||
Exercised/Vested | Outstanding | Available for | |||||||||||||||
Future Issuance | |||||||||||||||||
2004 Founder Stock Option Plan | 150,000 | 49,900 | 91,800 | — | |||||||||||||
Director and Employee Stock Option Plan | 1,434,000 | 461,924 | 800,673 | — | |||||||||||||
2005 Equity Incentive Plan | 1,200,000 | 657,744 | 529,529 | — | |||||||||||||
2013 Equity Incentive Plan | 750,000 | — | — | 750,000 | |||||||||||||
Note_16_Income_Taxes
Note 16 - Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||||||
(16) Income Taxes | |||||||||||||||||
The income tax (benefit) provision consists of the following for the years ended December 31, 2013 and 2012: | |||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 92 | $ | 84 | |||||||||||||
State | 24 | 27 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | 1,003 | 1,169 | |||||||||||||||
State | 130 | 212 | |||||||||||||||
1,249 | 1,492 | ||||||||||||||||
Valuation allowance | (4,308 | ) | (1,381 | ) | |||||||||||||
Income tax (benefit) provision | $ | (3,059 | ) | $ | 111 | ||||||||||||
A reconciliation of the amounts computed by applying the federal statutory rate of 34% for 2013 and 2012 to the loss before income tax provision and the effective tax rate are as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
(dollars in thousands) | Amount | Percent of | Amount | Percent of | |||||||||||||
Pretax | Pretax | ||||||||||||||||
Federal income tax provision at statutory rate | $ | 1,293 | 34 | % | $ | 1,038 | 34 | % | |||||||||
Changes due to: | |||||||||||||||||
State franchise tax, net of federal income tax | 272 | 7 | % | 218 | 7 | % | |||||||||||
Alternative minimum tax | (86 | ) | (2 | )% | 111 | 4 | % | ||||||||||
Valuation allowance | (4,308 | ) | (113 | )% | (1,381 | ) | (45 | )% | |||||||||
Other, net | (230 | ) | (6 | )% | 125 | 4 | % | ||||||||||
Total income tax (benefit) provision | $ | (3,059 | ) | (80 | )% | $ | 111 | 4 | % | ||||||||
The major components of the net deferred tax assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||
Deferred tax assets: | |||||||||||||||||
Net operating losses | $ | 399 | $ | 1,883 | |||||||||||||
Allowance for loan losses | 1,295 | 1,254 | |||||||||||||||
Equity compensation | 594 | 562 | |||||||||||||||
Depreciation | 118 | 180 | |||||||||||||||
Accrued compensation | 394 | 278 | |||||||||||||||
Other | 471 | 269 | |||||||||||||||
Valuation allowance | — | (4,308 | ) | ||||||||||||||
Total deferred tax assets | 3,271 | 118 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | 39 | 61 | |||||||||||||||
Federal Home Loan Bank stock dividends | 57 | 57 | |||||||||||||||
Net unrealized gains on investment securities | 88 | 1,704 | |||||||||||||||
Total deferred tax liabilities | 184 | 1,822 | |||||||||||||||
Net deferred tax liabilities | $ | 3,087 | $ | (1,704 | ) | ||||||||||||
A valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including historic financial performance, the forecasts of future income, existence of feasible tax planning strategies, length of statutory carryforward periods, and assessments of the current and future economic and business conditions. Management evaluates the positive and negative evidence and determines the realizability of the deferred tax asset on a quarterly basis. | |||||||||||||||||
During the year ended December 31, 2009, management established a full valuation allowance against the Company’s deferred tax assets after it was determined that it was “more likely than not” that the Company would not be able to realize the benefit of the deferred tax asset. During the year ended December 31, 2013, management reassessed the need for this valuation allowance and concluded that a valuation allowance was no longer appropriate and that it is more likely than not that these assets will be realized. As a result, management reversed the valuation allowance as an income tax benefit in the Consolidated Statements of Operations and Comprehensive Income. In making this determination, management analyzed, among other things, the Company’s recent history of earnings and cash flows, forecasts of future earnings, improvements in the credit quality of the Company’s loan portfolio, the nature and timing of future deductions and benefits represented by the deferred tax assets and our cumulative earnings for the 12 quarters preceding the reversal of this valuation allowance. | |||||||||||||||||
At December 31, 2013, the Company had a net deferred tax asset of approximately $3.1 million, compared to net deferred tax liability for net unrealized gains on investment securities of $1.7 million at December 31, 2012. The net deferred tax asset at December 31, 2013, primarily consists of deferred tax assets related to federal and state net operating loss carryforwards and the allowance for loan losses. | |||||||||||||||||
As of December 31, 2013, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $378,000 and $2.5 million, respectively. As of December 31, 2012, the Company had federal and state net operating loss (“NOL”) carryforwards of approximately $4.1 million and $6.8 million, respectively. For federal and California tax purposes, the Company’s NOL carryforwards expire beginning in 2029. | |||||||||||||||||
No uncertain tax positions were identified as of December 31, 2013 and 2012, and the Company had no tax reserve for uncertain tax positions at December 31, 2013 and 2012. The Company does not anticipate providing a reserve for uncertain tax positions in the next twelve months. Furthermore, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. At December 31, 2013 and 2012, the Company did not have an accrual for interest and/or penalties associated with uncertain tax positions. | |||||||||||||||||
The Company files income tax returns in the U.S. federal and California jurisdictions. The Company is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2010 and 2009, respectively. |
Note_17_Employee_Benefit_Plan
Note 17 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
(17) Employee Benefit Plan | |
The Company has a 401(k) plan for all employees and permits voluntary contributions of their salaries on a pre-tax basis, subject to statutory and Internal Revenue Service guidelines. The contributions to the 401(k) plan are invested at the directions of the participants. The Company matches 100% of the employee’s contribution up to the first 3% of the employee’s salary and 50% of the employee’s contribution up to the next 2% of the employee’s salary. The Company’s expense relating to the contributions made to the 401(k) plan for the benefit of the employees for the years ended December 31, 2013 and 2012 was $182,000 and $151,000, respectively. |
Note_18_Regulatory_Matters
Note 18 - Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | ' | ||||||||||||||||||||||||||||||||
(18) Regulatory Matters | |||||||||||||||||||||||||||||||||
Capital | |||||||||||||||||||||||||||||||||
Bancshares and the Bank are subject to the various regulatory capital requirements administered by federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Bancshares and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company. | |||||||||||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulation) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that as of December 31, 2013 and 2012, the Company and the Bank met all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||||||||||
At December 31, 2013, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios. There are no conditions or events since the notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||||||||||
The Company’s and the Bank’s capital ratios as of December 31, 2013 and 2012 are presented in the table below: | |||||||||||||||||||||||||||||||||
Company | Bank | For Capital Adequacy | For the Bank to be Well | ||||||||||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Measures | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 58,620 | 14.18 | % | $ | 56,555 | 13.69 | % | $ | 33,062 | 8 | % | $ | 41,326 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 53,425 | 12.93 | % | $ | 51,361 | 12.43 | % | $ | 16,531 | 4 | % | $ | 24,796 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 53,425 | 9.7 | % | $ | 51,361 | 9.32 | % | $ | 22,025 | 4 | % | $ | 27,541 | 5 | % | |||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 50,823 | 15.65 | % | $ | 49,635 | 15.29 | % | $ | 25,977 | 8 | % | $ | 32,470 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 46,738 | 14.39 | % | $ | 45,549 | 14.03 | % | $ | 12,988 | 4 | % | $ | 19,482 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 46,738 | 9.47 | % | $ | 45,549 | 9.22 | % | $ | 19,748 | 4 | % | $ | 24,696 | 5 | % | |||||||||||||||||
On July 2, 2013, the Federal Reserve approved the final rules implementing the Basel Committee on Banking Supervision's (“BCBS”) capital guidelines for U.S. banks. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Company. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The final rules also raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and require a minimum leverage ratio of 4.0%. The final rules also implement strict eligibility criteria for regulatory capital instruments. On July 9, 2013, the FDIC and OCC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. The FDIC and OCC's rules are identical in substance to the final rules issued by the FRB. | |||||||||||||||||||||||||||||||||
The phase-in period for the final rules will begin for the Company and the Bank on January 1, 2015, with full compliance with all of the final rule's requirements phased in over a multi-year schedule. Management is currently evaluating the provisions of the final rules and their expected impact. | |||||||||||||||||||||||||||||||||
Dividends | |||||||||||||||||||||||||||||||||
In the ordinary course of business, Bancshares is dependent upon dividends from the Bank to provide funds for the payment of dividends to shareholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared exceed the net profits for that year combined with the retained net profits for the preceding two years. Currently, the Bank is prohibited from paying dividends to Bancshares until such time as the accumulated deficit is eliminated. | |||||||||||||||||||||||||||||||||
To date, Bancshares has not paid any cash dividends. Payment of stock or cash dividends in the future will depend upon earnings and financial condition and other factors deemed relevant by Bancshares’ Board of Directors, as well as Bancshares’ legal ability to pay dividends. Accordingly, no assurance can be given that any cash dividends will be declared in the foreseeable future. | |||||||||||||||||||||||||||||||||
Consent Order | |||||||||||||||||||||||||||||||||
On September 11, 2013, the Board of Directors of the Bank entered into a stipulation and consent to the issuance of a consent order with the OCC consenting to the issuance of a consent order (the “Consent Order”) by the OCC, effective as of that date. The Consent Order requires the Bank to take corrective action to enhance its program and procedures for compliance with the Bank Secrecy Act (“BSA”) and other anti-money laundering regulations (“AML”). |
Note_19_Parent_Company_Only_Co
Note 19 - Parent Company Only Condensed Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | ||||||||
(19) Parent Company Only Condensed Financial Information | |||||||||
The condensed financial statements of 1st Century Bancshares, Inc. as of and for the years ended December 31, 2013 and 2012 are presented below: | |||||||||
Condensed Balance Sheets | |||||||||
(in thousands) | 31-Dec-13 | 31-Dec-12 | |||||||
Assets | |||||||||
Cash and due from banks | $ | 2,082 | $ | 1,206 | |||||
Investment in subsidiary bank | 53,324 | 47,985 | |||||||
Total Assets | $ | 55,406 | $ | 49,191 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Other liabilities | $ | 18 | $ | 18 | |||||
Common stock | 114 | 110 | |||||||
Additional paid-in capital | 67,231 | 65,038 | |||||||
Accumulated deficit | (4,036 | ) | (10,899 | ) | |||||
Accumulated other comprehensive income | 52 | 2,436 | |||||||
Treasury stock at cost | (7,973 | ) | (7,512 | ) | |||||
Total Stockholders’ Equity | 55,388 | 49,173 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 55,406 | $ | 49,191 | |||||
Condensed Statements of Operations and Comprehensive Income | |||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Interest income | $ | — | $ | — | |||||
Interest expense | — | — | |||||||
Net interest income | — | — | |||||||
Compensation and benefits | (35 | ) | (32 | ) | |||||
Other operating expenses | (63 | ) | (58 | ) | |||||
Loss before taxes | (98 | ) | (90 | ) | |||||
Income tax provision | — | — | |||||||
Loss before equity in undistributed income of subsidiary bank | (98 | ) | (90 | ) | |||||
Equity in undistributed income of subsidiary bank | 6,961 | 3,032 | |||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Comprehensive income | $ | 4,479 | $ | 3,811 | |||||
Condensed Statements of Cash Flows | |||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Adjustments to reconcile net income to net cash used in operations: | |||||||||
Equity in undistributed net income of subsidiary bank | (6,961 | ) | (3,032 | ) | |||||
Decrease in other liabilities | — | (40 | ) | ||||||
Net cash used in operating activities | (98 | ) | (130 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from exercise of stock options | 1,435 | — | |||||||
Purchase of treasury stock | — | (166 | ) | ||||||
Shares surrendered to pay taxes on vesting of restricted stock | (461 | ) | (75 | ) | |||||
Net cash provided by (used in) financing activities | 974 | (241 | ) | ||||||
Net change in cash and cash equivalents | 876 | (371 | ) | ||||||
Cash and cash equivalents, beginning of year | 1,206 | 1,577 | |||||||
Cash and cash equivalents, end of year | $ | 2,082 | $ | 1,206 | |||||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Nature of Operations [Text Block] | ' | ||||||||
Nature of Operations | |||||||||
1st Century Bancshares, Inc., a Delaware corporation (“Bancshares”) is a bank holding company with one subsidiary, 1st Century Bank, National Association (the “Bank”). The Bank commenced operations on March 1, 2004 in the State of California operating under the laws of a National Association (“N.A.”) regulated by the Office of the Comptroller of the Currency (the “OCC”). The Bank is a commercial bank that focuses on closely held and family owned businesses and their employees, professional service firms, real estate professionals and investors, the legal, accounting and medical professions, and small and medium-sized businesses and individuals principally in Los Angeles County. The Bank provides a wide range of banking services to meet the financial needs of the local residential community, with an orientation primarily directed toward owners and employees of the Bank’s business client base. The Bank is subject to both the regulations of and periodic examinations by the OCC, which is the Bank’s federal regulatory agency. Bancshares and the Bank are collectively referred to herein as “the Company.” | |||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ||||||||
Basis of Presentation | |||||||||
The consolidated financial statements include the accounts of Bancshares and the Bank. All inter-company accounts and transactions have been eliminated in consolidation. | |||||||||
Certain items in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. | |||||||||
The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and to general practices within the banking industry. A summary of the significant accounting and reporting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: | |||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||
Use of Estimates | |||||||||
Management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant assumptions and estimates used by management in preparation of the consolidated financial statements include assumptions and assessments made in connection with calculating the allowance for loan losses and determining the realizability of the Company’s deferred tax assets. It is at least reasonably possible that certain assumptions and estimates could prove to be incorrect and cause actual results to differ materially and adversely from the amounts reported in the consolidated financial statements included herewith. | |||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||||||
Cash and Cash Equivalents | |||||||||
Cash and cash equivalents include cash and due from banks, interest earning deposits at other financial institutions with original maturities less than 90 days and all highly liquid investments with original maturities of less than 90 days. | |||||||||
Cash Flows | |||||||||
Cash and cash equivalents include cash, deposits with other financial institutions with maturities fewer than 90 days, and federal funds sold. Net cash flows are reported for loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. | |||||||||
Marketable Securities, Policy [Policy Text Block] | ' | ||||||||
Investment Securities | |||||||||
Investment securities are classified in three categories. Debt securities that management has a positive intent and ability to hold to maturity are classified as “Held to Maturity” or “HTM” and are recorded at amortized cost. Debt and equity securities bought and held principally for the purpose of selling in the near term are classified as “Trading” securities and are measured at fair value, with unrealized gains and losses included in earnings. Debt and equity securities not classified as “Held to Maturity” or “Trading” with readily determinable fair values are classified as “Available for Sale” or “AFS” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. The Company uses estimates from third parties in arriving at fair value determinations which are derived in accordance with fair value measurement standards. | |||||||||
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of investment securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income provided that management does not have the intent to sell the securities and it is more likely than not that management will not have to sell the security before recovery of its cost basis. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |||||||||
Federal Reserve Bank Stock and Federal Home Loan Bank Stock [Policy Text Block] | ' | ||||||||
Federal Reserve Bank Stock and Federal Home Loan Bank Stock | |||||||||
The Bank is a member of the Federal Reserve System (“Fed” or “FRB”). FRB stock is carried at cost and is considered a nonmarketable equity security. Cash dividends from the FRB are reported as interest income on an accrual basis. | |||||||||
The Bank is a member and stockholder of the capital stock of the Federal Home Loan Bank of San Francisco (“FHLB of San Francisco” or “FHLB”). Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB of San Francisco stock is carried at cost and is considered a nonmarketable equity security. Both cash and stock dividends are reported as interest income. | |||||||||
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' | ||||||||
Loans | |||||||||
Loans, net, are stated at the unpaid principal balances less the allowance for loan losses and unamortized deferred fees and costs. Loan origination fees, net of related direct costs, are deferred and accreted to interest income as an adjustment to yield over the respective maturities of the loans using the effective interest method. | |||||||||
Interest on loans is accrued as earned on a daily basis, except where reasonable doubt exists as to the collection of interest and principal, in which case the accrual of interest is discontinued and the loan is placed on non-accrual status. Loans are placed on non-accrual at the time principal or interest is 90 days delinquent unless well secured and in the process of collection. Interest on non-accrual loans is accounted for on a cash-basis or cost-recovery method, until qualifying for return to accrual status. In order for a loan to return to accrual status, all principal and interest amounts owed must be brought current and future payments must be reasonably assured. | |||||||||
A loan is charged-off at any time the loan is determined to be uncollectible. Collateral dependent loans, which generally include commercial real estate loans, residential loans, and construction and land loans, are typically charged down to their fair value of collateral less selling costs when a loan is impaired or on non-accrual status. All other loans are typically charged-off when, based upon current available facts and circumstances, it’s determined that either: (1) a loan is uncollectible, (2) repayment is determined to be protracted beyond a reasonable time frame, or (3) the loan is classified as a loss determined by either the Bank’s internal review process or by external examiners. | |||||||||
Loans are considered impaired when, based upon current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the original contractual terms of the loan agreement on a timely basis. The Company evaluates impairment on a loan-by-loan basis. Once a loan is determined to be impaired, the impairment is measured based on the present value of the expected future cash flows discounted at the loan’s effective interest rate or by using the loan’s most recent market value or the fair value of the collateral if the loan is collateral dependent. Loans that experience insignificant payment delays or payment shortfalls are generally not considered to be impaired. | |||||||||
When the measurement of an impaired loan is less than the recorded amount of the loan, a valuation allowance is established by recording a charge to the provision for loan losses. Subsequent increases or decreases in the valuation allowance for impaired loans are recorded by adjusting the existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses. The Company’s policy for recognizing interest income on impaired loans is the same as that for non-accrual loans. | |||||||||
Loans and Leases Receivable, Troubled Debt Restructuring Policy [Policy Text Block] | ' | ||||||||
Troubled Debt Restructurings | |||||||||
In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and work with them to modify their loans to more affordable terms before their loan reaches nonaccrual status. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Effective July 1, 2011, the Company adopted the provisions of Accounting Standards Update (“ASU”) 2012-02, Receivables (“Topic 310”) - A Creditor’s Determination of Whether a Restructuring Is a Troubled Debt Restructuring (“ASU 11-02”). | |||||||||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||||||||
Allowance for Loan Losses | |||||||||
The allowance for loan losses is established through a provision for loan losses charged to operations and represents an estimate of credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. Loan losses are charged against the allowance when management believes that principal is uncollectible. Subsequent repayments or recoveries, if any, are credited to the allowance. Management periodically assesses the adequacy of the allowance for loan losses by reference to many quantitative and qualitative factors that may be weighted differently at various times depending on prevailing conditions. The provisions reflect management’s evaluation of the adequacy of the allowance based, in part, upon the historical loss experience of the loan portfolio, as well as estimates from historical peer group loan loss data and the loss experience of other financial institutions, augmented by management judgment. During this process, loans are separated into the following portfolio segments: commercial loans, commercial real estate, residential, land and construction, and consumer and other loans. The relative significance of risk considerations vary by portfolio segment. For commercial loans, commercial real estate loans and land and construction, the primary risk consideration is a borrower’s ability to generate sufficient cash flows to repay their loan. Secondary considerations include the creditworthiness of guarantors and the valuation of collateral. In addition to the creditworthiness of a borrower, the type and location of real estate collateral is an important risk factor for commercial real estate and land and construction loans. The primary risk consideration for residential loans and consumer loans are a borrower’s personal cash flow and liquidity, as well as collateral value. | |||||||||
Loss ratios for all portfolio segments are evaluated on a quarterly basis. Loss ratios associated with historical loss experience are determined based on a rolling migration analysis of each portfolio segment within the portfolio. This migration analysis estimates loss factors based on the performance of each portfolio segment over a four and a half year time period. These loss ratios are then adjusted, if determined necessary, based on other factors including, but not limited to, historical peer group loan loss data and the loss experience of other financial institutions. Management carefully monitors changing economic conditions, the concentrations of loan categories, values of collateral, the financial condition of the borrowers, the history of the loan portfolio, and historical peer group loan loss data to determine the adequacy of the allowance for loan losses. As a part of this process, management typically focuses on loan-to-value (“LTV”) percentages to assess the adequacy of loss ratios of collateral dependent loans within each portfolio segment discussed above, trends within each portfolio segment, as well as general economic and real estate market conditions where the collateral and borrower are located. For loans that are not collateral dependent, which generally consist of commercial and consumer and other loans, management typically focuses on general business conditions where the borrower operates, trends within the portfolio, and other external factors to evaluate the severity of loss factors. The allowance is based on estimates and actual losses may vary from the estimates. | |||||||||
In addition, regulatory agencies, as a part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. No assurance can be given that adverse future economic conditions will not lead to increased delinquent loans, and increases in the provision for loan losses and/or charge-offs. Management believes that the allowance as of December 31, 2013 and 2012 was adequate to absorb probable incurred credit losses inherent in the loan portfolio. | |||||||||
Real Estate Owned, Valuation Allowance, Policy [Policy Text Block] | ' | ||||||||
Other Real Estate Owned | |||||||||
OREO represents real estate acquired through or in lieu of foreclosure. OREO is held for sale and is initially recorded at fair value less estimated costs of disposition at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of cost or estimated fair value less costs of disposition. OREO is included in accrued interest and other assets within the Consolidated Balance Sheets and the net operating results, if any, from OREO are recognized as non-interest expense within the Consolidated Statements of Operations and Comprehensive Income. | |||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||||||
Furniture, Fixtures and Equipment, net | |||||||||
Leasehold improvements and furniture, fixtures and equipment are carried at cost, less depreciation and amortization. Furniture, fixtures and equipment are depreciated using the straight-line method over the estimated useful life of the asset (three to ten years). Leasehold improvements are depreciated using the straight-line method over the terms of the related leases or the estimated lives of the improvements, whichever is shorter. | |||||||||
Advertising Cost, Policy, Expensed Advertising Cost [Policy Text Block] | ' | ||||||||
Advertising Costs | |||||||||
Advertising costs are expensed as incurred. | |||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||
Income Taxes | |||||||||
The Company files consolidated federal and combined state income tax returns. Income tax expense or benefit is the total of the current year income tax payable or refundable and the change in the deferred tax assets and liabilities (excluding deferred tax assets and liabilities related to components of other comprehensive income). Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. | |||||||||
Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in the rates and laws. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Company records a valuation allowance if it believes, based on all available evidence, that it is “more likely than not” that the future tax assets will not be realized. This assessment requires management to evaluate the Company’s ability to generate sufficient future taxable income or use eligible tax carrybacks, if any, to determine the need for a valuation allowance. | |||||||||
During the year ended December 31, 2009, management established a full valuation allowance against the Company’s deferred tax assets after we determined that it was “more likely than not” that the Company would not be able to realize the benefit of the deferred tax asset. During the year ended December 31, 2013, management reassessed the need for this valuation allowance and concluded that a valuation allowance was no longer appropriate and that it is more likely than not that these assets will be realized. As a result, management reversed the valuation allowance as an income tax benefit in the Consolidated Statements of Operations and Comprehensive Income. In making this determination, management analyzed, among other things, the Company’s recent history of earnings and cash flows, forecasts of future earnings, improvements in the credit quality of the Company’s loan portfolio, the nature and timing of future deductions and benefits represented by the deferred tax assets and our cumulative earnings for the 12 quarters preceding the reversal of this valuation allowance. | |||||||||
At December 31, 2013, the Company had a net deferred tax asset of approximately $3.1 million, compared to net deferred tax liability for net unrealized gains on investment securities of $1.7 million at December 31, 2012. The net deferred tax asset at December 31, 2013, primarily consists of deferred tax assets related to federal and state net operating loss carryforwards and the allowance for loan losses. | |||||||||
At December 31, 2013 and 2012, the Company did not have any tax benefits disallowed under accounting standards for uncertainties in income taxes. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. If applicable, the Company has elected to record interest accrued and penalties related to unrecognized tax benefits in tax expense. | |||||||||
See Note 16 “Income Taxes” for further discussion regarding the Company’s tax positions at December 31, 2013 and 2012. | |||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | ||||||||
Comprehensive Income | |||||||||
Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. However, certain changes in assets and liabilities, such as unrealized gains and losses on Available for Sale securities, are reported as a separate component of the stockholders’ equity section of the Consolidated Balance Sheets and, along with net income, are components of comprehensive income. | |||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||
Earnings per Share | |||||||||
The Company reports both basic and diluted earnings per share. Basic earnings per share is determined by dividing net income by the average number of shares of common stock outstanding, while diluted earnings per share is determined by dividing net income by the average number of shares of common stock outstanding adjusted for the dilutive effect of common stock equivalents. Potential dilutive common shares related to outstanding stock options and restricted stock are determined using the treasury stock method. For the years ended December 31, 2013 and 2012, there were 370,073 and 1,179,373, respectively, of stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the years ended December 31, 2013 and 2012, there were 91,660 and 164,152, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. | |||||||||
Years ended December 31, | |||||||||
(dollars in thousands) | 2012 | ||||||||
2013 | |||||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Average number of common shares outstanding | 8,660,641 | 8,520,420 | |||||||
Effect of dilution of stock options | 161,046 | — | |||||||
Effect of dilution of restricted stock | 257,955 | 265,144 | |||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,079,642 | 8,785,564 | |||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||
Fair Value of Financial Instruments | |||||||||
The Company is required to make certain disclosures about its use of fair value measurements in the preparation of its financial statements. These standards establish a three-level hierarchy for disclosure of assets and liabilities recorded at fair value. The classification of assets and liabilities within the hierarchy is based on whether the inputs to the valuation methodology used for measurement are observable or unobservable. Observable inputs reflect market-derived or market-based information obtained from independent sources, while unobservable inputs reflect management’s estimates about market data. | |||||||||
Level 1 | Valuation is based upon quoted prices for identical instruments traded in active markets. Level 1 instruments include securities traded on active exchange markets, such as the New York Stock Exchange, as well as U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. | ||||||||
Level 2 | Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 2 instruments include securities traded in less active dealer or broker markets. | ||||||||
Level 3 | Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | ||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company has granted restricted stock awards to directors, employees, and a vendor under the 1st Century Bancshares 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”). The restricted stock awards are considered fixed awards as the number of shares and fair value is known at the date of grant and the fair value at the grant date is amortized over the vesting and/or service period. | |||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||
Recent Accounting Pronouncements | |||||||||
In December 2011, the FASB issued ASU 2011-11, Balance Sheet (“Topic 210”) – Disclosures about Offsetting Assets and Liabilities (“ASU 11-11”). This ASU amends Topic 210, “Balance Sheet,” to require an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to a master netting arrangement or similar agreement. ASU 11-11 was effective for annual and interim periods beginning on January 1, 2013. The adoption of this ASU did not have a significant impact on the Company’s financial position, results of operations, or cash flows. | |||||||||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (“Topic 220”) – Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 13-02”). This ASU requires 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 GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts. ASU 13-02 was effective prospectively for annual and interim periods beginning after December 15, 2012. The adoption of this ASU did not have a material impact on the Company’s financial position, results of operations, or cash flows. | |||||||||
In December 2013, the FASB issued ASU 2013-12, Definition of a Public Business Entity - An Addition to the Master Glossary (“ASU 2013-12”). This ASU amends the Master Glossary of the FASB Accounting Standards Codification to include one definition of public business entity for future use in U.S. GAAP and identifies the types of business entities that are excluded from the scope of the Private Company Decision-Making Framework: A Guide for Evaluating Financial Accounting and Reporting for Private Companies. ASU 2013-12 did not have a significant impact on the Company’s financial position, results of operations, or cash flows. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Years ended December 31, | |||||||||
(dollars in thousands) | 2012 | ||||||||
2013 | |||||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Average number of common shares outstanding | 8,660,641 | 8,520,420 | |||||||
Effect of dilution of stock options | 161,046 | — | |||||||
Effect of dilution of restricted stock | 257,955 | 265,144 | |||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,079,642 | 8,785,564 |
Note_2_Investment_Securities_T
Note 2 - Investment Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Corporate Notes | 3,074 | 34 | — | 3,108 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 103,109 | 959 | (904 | ) | 103,164 | ||||||||||||||||||||||||||||||||||||
Total | $ | 106,183 | $ | 993 | $ | (904 | ) | $ | 106,272 | ||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Gov’t Treasuries | $ | 2,136 | $ | 71 | $ | — | $ | 2,207 | |||||||||||||||||||||||||||||||||
Corporate Notes | 34,534 | 741 | — | 35,275 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 140,416 | 3,345 | (18 | ) | 143,743 | ||||||||||||||||||||||||||||||||||||
Total | $ | 177,086 | $ | 4,157 | $ | (18 | ) | $ | 181,225 | ||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | 1 Year or | Weighted | After 1 | Weighted | After 5 | Weighted | After 10 | Weighted | Total | Weighted | |||||||||||||||||||||||||||||||
Less | Average | Through 5 | Average | Through | Average | Years | Average | Average | |||||||||||||||||||||||||||||||||
Yield | Years | Yield | 10 Years | Yield | Yield | Yield | |||||||||||||||||||||||||||||||||||
Corporate Notes | $ | 502 | 1.12 | % | $ | 2,606 | 1.35 | % | $ | — | — | % | $ | — | — | % | $ | 3,108 | 1.31 | % | |||||||||||||||||||||
Residential Mortgage-Backed Securities | — | — | — | — | 54,317 | 1.84 | 48,847 | 2.42 | 103,164 | 2.12 | |||||||||||||||||||||||||||||||
Total | $ | 502 | 1.12 | % | $ | 2,606 | 1.35 | % | $ | 54,317 | 1.84 | % | $ | 48,847 | 2.42 | % | $ | 106,272 | 2.09 | % | |||||||||||||||||||||
Unrealized Gain (Loss) on Investments [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or More | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Gross | Fair Value | Gross | Fair Value | |||||||||||||||||||||||||||||||||||||
Unrealized | Unrealized | ||||||||||||||||||||||||||||||||||||||||
Losses | Losses | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (904 | ) | $ | 51,847 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (18 | ) | $ | 7,584 | $ | — | $ | — |
Note_3_Loans_Allowance_for_Loa1
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(dollars in thousands) | Amount | Percent | Amount | Percent | |||||||||||||||||||||
Outstanding | of Total | Outstanding | of Total | ||||||||||||||||||||||
Commercial (1) | $ | 76,397 | 19.9 | % | $ | 58,769 | 22 | % | |||||||||||||||||
Commercial real estate | 167,419 | 43.7 | % | 110,031 | 41.3 | % | |||||||||||||||||||
Residential | 82,795 | 21.6 | % | 53,162 | 19.9 | % | |||||||||||||||||||
Land and construction | 30,102 | 7.8 | % | 19,080 | 7.2 | % | |||||||||||||||||||
Consumer and other (2) | 26,787 | 7 | % | 25,584 | 9.6 | % | |||||||||||||||||||
Loans, gross | 383,500 | 100 | % | 266,626 | 100 | % | |||||||||||||||||||
Net deferred costs | 48 | 45 | |||||||||||||||||||||||
Less — allowance for loan losses | (7,236 | ) | (6,015 | ) | |||||||||||||||||||||
Loans, net | $ | 376,312 | $ | 260,656 | |||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | Total | |||||||||||||||||||
Real Estate | Construction | and Other | |||||||||||||||||||||||
For the Year Ended December 31, 2013: | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
Provision for loan losses | (1,765 | ) | 1,210 | 250 | 400 | 5 | 100 | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||
Recoveries | 1,071 | — | — | — | 50 | 1,121 | |||||||||||||||||||
Ending balance | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | |||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 35 | $ | — | $ | — | $ | — | $ | — | $ | 35 | |||||||||||||
Ending balance: collectively evaluated for impairment | 1,548 | 3,660 | 758 | 811 | 424 | 7,201 | |||||||||||||||||||
Total | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | |||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 924 | $ | — | $ | — | $ | — | $ | 29 | $ | 953 | |||||||||||||
Ending balance: collectively evaluated for impairment | 75,473 | 167,419 | 82,795 | 30,102 | 26,758 | 382,547 | |||||||||||||||||||
Total | $ | 76,397 | $ | 167,419 | $ | 82,795 | $ | 30,102 | $ | 26,787 | $ | 383,500 | |||||||||||||
For the Year Ended December 31, 2012: | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 2,584 | $ | 1,252 | $ | 583 | $ | 516 | $ | 349 | $ | 5,284 | |||||||||||||
Provision for loan losses | (305 | ) | 485 | (75 | ) | (100 | ) | (5 | ) | — | |||||||||||||||
Charge-offs | (26 | ) | (400 | ) | — | (5 | ) | — | (431 | ) | |||||||||||||||
Recoveries | 24 | 1,113 | — | — | 25 | 1,162 | |||||||||||||||||||
Ending balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 500 | $ | — | $ | — | $ | — | $ | — | $ | 500 | |||||||||||||
Ending balance: collectively evaluated for impairment | 1,777 | 2,450 | 508 | 411 | 369 | 5,515 | |||||||||||||||||||
Total | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | |||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,799 | $ | — | $ | — | $ | — | $ | 345 | $ | 2,144 | |||||||||||||
Ending balance: collectively evaluated for impairment | 56,970 | 110,031 | 53,162 | 19,080 | 25,239 | 264,482 | |||||||||||||||||||
Total | $ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | $ | 266,626 | |||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | > 90 Days | Total | Current | Total | |||||||||||||||||||
Days Past | Days Past | Past Due | Past Due | ||||||||||||||||||||||
Due | Due | ||||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Commercial | $ | 187 | $ | — | $ | 706 | $ | 893 | $ | 75,504 | $ | 76,397 | |||||||||||||
Commercial real estate | — | — | — | — | 167,419 | 167,419 | |||||||||||||||||||
Residential | — | — | — | — | 82,795 | 82,795 | |||||||||||||||||||
Land and construction | — | — | — | — | 30,102 | 30,102 | |||||||||||||||||||
Consumer and other | — | — | 29 | 29 | 26,758 | 26,787 | |||||||||||||||||||
Totals | $ | 187 | $ | — | $ | 735 | $ | 922 | $ | 382,578 | $ | 383,500 | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Commercial | $ | 599 | $ | 577 | $ | 812 | $ | 1,988 | $ | 56,781 | $ | 58,769 | |||||||||||||
Commercial real estate | 4,828 | — | 2,300 | 7,128 | 102,903 | 110,031 | |||||||||||||||||||
Residential | — | — | — | — | 53,162 | 53,162 | |||||||||||||||||||
Land and construction | — | — | — | — | 19,080 | 19,080 | |||||||||||||||||||
Consumer and other | — | — | 345 | 345 | 25,239 | 25,584 | |||||||||||||||||||
Totals | $ | 5,427 | $ | 577 | $ | 3,457 | $ | 9,461 | $ | 257,165 | $ | 266,626 | |||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | ||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||
As of and for the year ended December 31, 2013: | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 789 | $ | 1,065 | $ | — | $ | 841 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | 29 | 29 | — | 240 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 135 | $ | 142 | $ | 35 | $ | 155 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | — | — | — | — | |||||||||||||||||||||
Totals: | |||||||||||||||||||||||||
Commercial | $ | 924 | $ | 1,207 | $ | 35 | $ | 996 | |||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Consumer and other | $ | 29 | $ | 29 | $ | — | $ | 240 | |||||||||||||||||
As of and for the year ended December 31, 2012: | |||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 988 | $ | 1,303 | $ | — | $ | 1,098 | |||||||||||||||||
Commercial real estate | — | — | — | 3,113 | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | 1,155 | |||||||||||||||||||||
Consumer and other | 345 | 345 | — | 345 | |||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 811 | $ | 1,990 | $ | 500 | $ | 1,084 | |||||||||||||||||
Commercial real estate | — | — | — | — | |||||||||||||||||||||
Residential | — | — | — | — | |||||||||||||||||||||
Land and construction | — | — | — | — | |||||||||||||||||||||
Consumer and other | — | — | — | — | |||||||||||||||||||||
Totals: | |||||||||||||||||||||||||
Commercial | $ | 1,799 | $ | 3,293 | $ | 500 | $ | 2,182 | |||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | 3,113 | |||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | 1,155 | |||||||||||||||||
Consumer and other | $ | 345 | $ | 345 | $ | — | $ | 345 | |||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | ' | ||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | ||||||||||||||||||||
Real Estate | Construction | and Other | |||||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 73,824 | $ | 166,828 | $ | 82,795 | $ | 26,801 | $ | 26,503 | |||||||||||||||
Special Mention | 1,149 | — | — | 3,301 | 206 | ||||||||||||||||||||
Substandard | 1,424 | 591 | — | — | 78 | ||||||||||||||||||||
Total | $ | 76,397 | $ | 167,419 | $ | 82,795 | $ | 30,102 | $ | 26,787 | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||
Pass | $ | 49,717 | $ | 109,397 | $ | 53,162 | $ | 19,080 | $ | 25,190 | |||||||||||||||
Special Mention | 6,609 | — | — | — | — | ||||||||||||||||||||
Substandard | 2,443 | 634 | — | — | 394 | ||||||||||||||||||||
Total | $ | 58,769 | $ | 110,031 | $ | 53,162 | $ | 19,080 | $ | 25,584 | |||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(dollars in thousands) | Number | Pre | Post | Number | Pre | Post | |||||||||||||||||||
of | Modification | Modification | of | Modification | Modification | ||||||||||||||||||||
Loans | Outstanding | Outstanding | Loans | Outstanding | Outstanding | ||||||||||||||||||||
Recorded | Recorded | Recorded | Recorded | ||||||||||||||||||||||
Investment | Investment | Investment | Investment | ||||||||||||||||||||||
Troubled Debt Restructurings: | |||||||||||||||||||||||||
Commercial | — | $ | — | $ | — | 3 | $ | 988 | $ | 988 | |||||||||||||||
Nonaccrual Loans [Member] | ' | ||||||||||||||||||||||||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(dollars in thousands) | 2013 | 2012 | |||||||||||||||||||||||
Non-accrual loans: | |||||||||||||||||||||||||
Commercial | $ | 706 | $ | 1,509 | |||||||||||||||||||||
Commercial real estate | — | — | |||||||||||||||||||||||
Land and construction | — | — | |||||||||||||||||||||||
Consumer and other | 29 | 345 | |||||||||||||||||||||||
Total non-accrual loans | 735 | 1,854 | |||||||||||||||||||||||
OREO | 90 | 90 | |||||||||||||||||||||||
Total non-performing assets | $ | 825 | $ | 1,944 | |||||||||||||||||||||
Non-performing assets to gross loans and OREO | 0.22 | % | 0.73 | % | |||||||||||||||||||||
Non-performing assets to total assets | 0.15 | % | 0.39 | % |
Note_4_Derivative_Financial_In1
Note 4 - Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(in thousands) | Notional | Estimated | Notional | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||
Commercial loan interest rate swaps | $ | 2,706 | $ | 15 | $ | 2,800 | $ | 107 | |||||||||
Commercial loan interest rate swaps | $ | (2,706 | ) | $ | (15 | ) | $ | (2,800 | ) | $ | (107 | ) | |||||
Non-Hedging Interest Rate Swaps [Member] | ' | ||||||||||||||||
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||
Interest | Interest | Interest | Interest | ||||||||||||||
Rate | Rate | Rate | Rate | ||||||||||||||
Paid | Received | Paid | Received | ||||||||||||||
Non-hedging interest rate swaps | 3.37 | % | 4.85 | % | 3.41 | % | 4.85 | % | |||||||||
Non-hedging interest rate swaps | 4.85 | % | 3.37 | % | 4.85 | % | 3.41 | % |
Note_5_Comprehensive_Income_Ta
Note 5 - Comprehensive Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Note 5 - Comprehensive Income (Tables) [Line Items] | ' | ||||||||
Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||
For the Years Ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Other comprehensive income: | |||||||||
Increase in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($1,327) and $608, respectively | (1,900 | ) | 869 | ||||||
Reclassification for net gains included in earnings, net of tax expense of $338 and none, respectively | (484 | ) | — | ||||||
Comprehensive income | $ | 4,479 | $ | 3,811 | |||||
Available-for-sale Securities [Member] | ' | ||||||||
Note 5 - Comprehensive Income (Tables) [Line Items] | ' | ||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||
For the Years Ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Beginning balance | $ | 2,436 | $ | 1,567 | |||||
Other comprehensive income (loss) before reclassifications | (1,900 | ) | 869 | ||||||
Amounts reclassified from accumulated other comprehensive income | (484 | ) | — | ||||||
Net other comprehensive income (loss) during the year | (2,384 | ) | 869 | ||||||
Ending balance | $ | 52 | $ | 2,436 |
Note_6_Related_Party_Transacti1
Note 6 - Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Related Party Debt [Table Text Block] | ' | ||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Beginning balance | $ | 792 | $ | 987 | |||||
Credits granted | 1,265 | 23 | |||||||
Repayments | (543 | ) | (218 | ) | |||||
Ending balance | $ | 1,514 | $ | 792 |
Note_7_Premises_and_Equipment_
Note 7 - Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Leasehold improvements | $ | 1,316 | $ | 973 | |||||
Furniture & equipment | 2,515 | 2,191 | |||||||
Software | 767 | 661 | |||||||
Total | 4,598 | 3,825 | |||||||
Accumulated depreciation | (3,313 | ) | (2,805 | ) | |||||
Premises and equipment, net | $ | 1,285 | $ | 1,020 |
Note_8_Deposits_Tables
Note 8 - Deposits (Tables) | Dec. 31, 2013 | ||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Deposits [Table Text Block] | ' | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||
(dollars in thousands) | Amount | Percent of Total | Amount | Percent of Total | |||||||||||||
Non-interest bearing demand deposits | $ | 236,869 | 52.3 | % | $ | 196,026 | 47 | % | |||||||||
Interest bearing demand deposits | 21,005 | 4.6 | % | 23,233 | 5.6 | % | |||||||||||
Money market deposits and savings | 151,879 | 33.6 | % | 152,094 | 36.5 | % | |||||||||||
Certificates of deposit | 43,013 | 9.5 | % | 45,328 | 10.9 | % | |||||||||||
Total | $ | 452,766 | 100 | % | $ | 416,681 | 100 | % | |||||||||
Schedule of Certificates of Deposit [Table Text Block] | ' | ||||||||||||||||
(dollars in thousands) | Six months | Greater than | Greater than | ||||||||||||||
and less | six months | one year | |||||||||||||||
through one year | |||||||||||||||||
0.00% | to | 0.99% | $ | 42,007 | $ | 966 | $ | — | |||||||||
1.00% | to | 1.99% | — | — | 40 | ||||||||||||
Total | $ | 42,007 | $ | 966 | $ | 40 | |||||||||||
Note_9_Other_Borrowings_Tables
Note 9 - Other Borrowings (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||
December 31, | |||||||||||||
Maturity Date | Interest Rate | 2013 | 2012 | ||||||||||
23-May-13 | 0.63% | $ | — | $ | 2,500 | ||||||||
23-May-14 | 1.14% | 2,500 | 2,500 | ||||||||||
29-Dec-14 | 0.83% | 5,000 | 5,000 | ||||||||||
30-Dec-14 | 0.74% | 2,500 | 2,500 | ||||||||||
26-May-15 | 1.65% | 2,500 | 2,500 | ||||||||||
23-May-16 | 2.07% | 2,500 | 2,500 | ||||||||||
29-Dec-16 | 1.38% | 5,000 | 5,000 | ||||||||||
30-Dec-16 | 1.25% | 2,500 | 2,500 | ||||||||||
2-May-18 | 0.93% | 5,000 | — | ||||||||||
Total | $ | 27,500 | $ | 25,000 |
Note_10_Commitments_and_Contin1
Note 10 - Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Years ending December 31, | |||||
2014 | $ | 738 | |||
2015 | 752 | ||||
2016 | 775 | ||||
2017 | 799 | ||||
2018 | 823 | ||||
Thereafter | 4,339 | ||||
Total | $ | 8,226 | |||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | ' | ||||
Years ending December 31, | |||||
2014 | $ | 602 | |||
2015 | 349 | ||||
2016 | 165 | ||||
2017 | 54 | ||||
2018 | 10 | ||||
Total | $ | 1,180 |
Note_11_Fair_Value_Measurement1
Note 11 - Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in | Other Observable | Significant | |||||||||||||||||
Active Markets for | Inputs (Level 2) | Unobservable | |||||||||||||||||||
Identical Assets | Inputs (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
Corporate Notes | $ | 3,108 | $ | — | $ | 3,108 | $ | — | |||||||||||||
Residential Mortgage-Backed Securities | 103,164 | — | 103,164 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 15 | — | 15 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 15 | — | 15 | — | |||||||||||||||||
At December 31, 2012: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
U.S. Gov’t treasuries | $ | 2,207 | $ | 2,207 | $ | — | $ | — | |||||||||||||
Corporate Notes | 35,275 | — | 35,275 | — | |||||||||||||||||
Residential Mortgage-Backed Securities | 143,743 | — | 143,743 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 107 | — | 107 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 107 | — | 107 | — | |||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in | Other Observable | Significant | |||||||||||||||||
Active Markets for | Inputs (Level 2) | Unobservable Inputs | |||||||||||||||||||
Identical Assets | (Level 3) | ||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 672 | $ | — | $ | — | $ | 672 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 762 | $ | — | $ | — | $ | 762 | |||||||||||||
At December 31, 2012: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 889 | $ | — | $ | — | $ | 889 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 979 | $ | — | $ | — | $ | 979 | |||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||||||
Carrying | Fair Value Measurements Using: | ||||||||||||||||||||
(dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 44,688 | $ | 44,688 | $ | — | $ | — | $ | 44,688 | |||||||||||
Investment securities | 106,272 | — | 106,272 | — | 106,272 | ||||||||||||||||
FRB stock | 1,570 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 3,062 | — | — | — | N/A | ||||||||||||||||
Loans, net | 376,312 | — | — | 376,249 | 376,249 | ||||||||||||||||
Non-hedging interest rate swaps | 15 | — | 15 | — | 15 | ||||||||||||||||
Accrued interest receivable | 1,132 | 1,132 | — | — | 1,132 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 236,869 | $ | 236,869 | $ | — | $ | — | $ | 236,869 | |||||||||||
Interest bearing deposits | 215,897 | 172,884 | 43,013 | — | 215,897 | ||||||||||||||||
Other borrowings | 27,500 | — | 27,562 | — | 27,562 | ||||||||||||||||
Non-hedging interest rate swaps | 15 | — | 15 | — | 15 | ||||||||||||||||
Accrued interest payable | 29 | 29 | — | — | 29 | ||||||||||||||||
Carrying | Fair Value Measurements Using: | ||||||||||||||||||||
(dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 50,555 | $ | 50,555 | $ | — | $ | — | $ | 50,555 | |||||||||||
Investment securities | 181,225 | 2,207 | 179,018 | — | 181,225 | ||||||||||||||||
FRB stock | 1,363 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 2,415 | — | — | — | N/A | ||||||||||||||||
Loans, net | 260,656 | — | — | 260,482 | 260,482 | ||||||||||||||||
Non-hedging interest rate swaps | 107 | — | 107 | — | 107 | ||||||||||||||||
Accrued interest receivable | 1,322 | 1,322 | — | — | 1,322 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 196,026 | $ | 196,026 | $ | — | $ | — | $ | 196,026 | |||||||||||
Interest bearing deposits | 220,655 | 175,327 | 45,328 | — | 220,655 | ||||||||||||||||
Other borrowings | 29,475 | — | 29,885 | — | 29,885 | ||||||||||||||||
Non-hedging interest rate swaps | 107 | — | 107 | — | 107 | ||||||||||||||||
Accrued interest payable | 157 | 157 | — | — | 157 |
Note_13_NonInterest_Income_Tab
Note 13 - Non-Interest Income (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Income and Expenses [Abstract] | ' | ||||||||
Schedule of Non-Interest Income Table Text Block | ' | ||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Loan arrangement fees | $ | 667 | $ | 1,461 | |||||
Gain on sale of AFS investment securities | 822 | — | |||||||
Service charges and other operating income | 304 | 525 | |||||||
Total non-interest income | $ | 1,793 | $ | 1,986 | |||||
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | ' | ||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Loan expenses | $ | 413 | $ | 1,012 | |||||
Board of Directors fees/non-cash stock expenses | 362 | 261 | |||||||
OCC assessments | 135 | 120 | |||||||
Branch/customer expense | 525 | 451 | |||||||
Stationery and supplies | 89 | 74 | |||||||
Insurance | 87 | 76 | |||||||
Dues, memberships and subscriptions | 123 | 129 | |||||||
Stockholders expense | 136 | 74 | |||||||
Telephone | 122 | 76 | |||||||
Delaware Franchise Tax | 107 | 64 | |||||||
Provision for unfunded lending commitments | 67 | — | |||||||
Other expenses | 121 | 395 | |||||||
Total other operating expenses | $ | 2,287 | $ | 2,732 |
Note_15_StockBased_Compensatio1
Note 15 - Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Restricted Shares | Number | Weighted Avg | Number | Weighted Avg | |||||||||||||
of | Fair Value at | of | Fair Value at | ||||||||||||||
Shares | Grant Date | Shares | Grant Date | ||||||||||||||
Beginning balance | 563,516 | $ | 4.23 | 536,733 | $ | 4.03 | |||||||||||
Granted | 138,500 | 5.82 | 164,152 | 4.83 | |||||||||||||
Vested | (160,237 | ) | 4.28 | (97,744 | ) | 4.23 | |||||||||||
Forfeited and surrendered | (12,250 | ) | 4.56 | (39,625 | ) | 4.05 | |||||||||||
Ending balance | 529,529 | $ | 4.62 | 563,516 | $ | 4.23 | |||||||||||
Schedule of Share-Based Compensation, Shares Authorized Under Stock Option Plans | ' | ||||||||||||||||
Shares Reserved | Less Shares Previously | Less Shares | Total Shares | ||||||||||||||
Exercised/Vested | Outstanding | Available for | |||||||||||||||
Future Issuance | |||||||||||||||||
2004 Founder Stock Option Plan | 150,000 | 49,900 | 91,800 | — | |||||||||||||
Director and Employee Stock Option Plan | 1,434,000 | 461,924 | 800,673 | — | |||||||||||||
2005 Equity Incentive Plan | 1,200,000 | 657,744 | 529,529 | — | |||||||||||||
2013 Equity Incentive Plan | 750,000 | — | — | 750,000 |
Note_16_Income_Taxes_Tables
Note 16 - Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 92 | $ | 84 | |||||||||||||
State | 24 | 27 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | 1,003 | 1,169 | |||||||||||||||
State | 130 | 212 | |||||||||||||||
1,249 | 1,492 | ||||||||||||||||
Valuation allowance | (4,308 | ) | (1,381 | ) | |||||||||||||
Income tax (benefit) provision | $ | (3,059 | ) | $ | 111 | ||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
(dollars in thousands) | Amount | Percent of | Amount | Percent of | |||||||||||||
Pretax | Pretax | ||||||||||||||||
Federal income tax provision at statutory rate | $ | 1,293 | 34 | % | $ | 1,038 | 34 | % | |||||||||
Changes due to: | |||||||||||||||||
State franchise tax, net of federal income tax | 272 | 7 | % | 218 | 7 | % | |||||||||||
Alternative minimum tax | (86 | ) | (2 | )% | 111 | 4 | % | ||||||||||
Valuation allowance | (4,308 | ) | (113 | )% | (1,381 | ) | (45 | )% | |||||||||
Other, net | (230 | ) | (6 | )% | 125 | 4 | % | ||||||||||
Total income tax (benefit) provision | $ | (3,059 | ) | (80 | )% | $ | 111 | 4 | % | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||||||||
(in thousands) | 2013 | 2012 | |||||||||||||||
Deferred tax assets: | |||||||||||||||||
Net operating losses | $ | 399 | $ | 1,883 | |||||||||||||
Allowance for loan losses | 1,295 | 1,254 | |||||||||||||||
Equity compensation | 594 | 562 | |||||||||||||||
Depreciation | 118 | 180 | |||||||||||||||
Accrued compensation | 394 | 278 | |||||||||||||||
Other | 471 | 269 | |||||||||||||||
Valuation allowance | — | (4,308 | ) | ||||||||||||||
Total deferred tax assets | 3,271 | 118 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Prepaid expenses | 39 | 61 | |||||||||||||||
Federal Home Loan Bank stock dividends | 57 | 57 | |||||||||||||||
Net unrealized gains on investment securities | 88 | 1,704 | |||||||||||||||
Total deferred tax liabilities | 184 | 1,822 | |||||||||||||||
Net deferred tax liabilities | $ | 3,087 | $ | (1,704 | ) |
Note_18_Regulatory_Matters_Tab
Note 18 - Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Company | Bank | For Capital Adequacy | For the Bank to be Well | ||||||||||||||||||||||||||||||
Purposes | Capitalized Under | ||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Measures | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 58,620 | 14.18 | % | $ | 56,555 | 13.69 | % | $ | 33,062 | 8 | % | $ | 41,326 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 53,425 | 12.93 | % | $ | 51,361 | 12.43 | % | $ | 16,531 | 4 | % | $ | 24,796 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 53,425 | 9.7 | % | $ | 51,361 | 9.32 | % | $ | 22,025 | 4 | % | $ | 27,541 | 5 | % | |||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 50,823 | 15.65 | % | $ | 49,635 | 15.29 | % | $ | 25,977 | 8 | % | $ | 32,470 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 46,738 | 14.39 | % | $ | 45,549 | 14.03 | % | $ | 12,988 | 4 | % | $ | 19,482 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 46,738 | 9.47 | % | $ | 45,549 | 9.22 | % | $ | 19,748 | 4 | % | $ | 24,696 | 5 | % |
Note_19_Parent_Company_Only_Co1
Note 19 - Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||
Condensed Balance Sheet [Table Text Block] | ' | ||||||||
(in thousands) | 31-Dec-13 | 31-Dec-12 | |||||||
Assets | |||||||||
Cash and due from banks | $ | 2,082 | $ | 1,206 | |||||
Investment in subsidiary bank | 53,324 | 47,985 | |||||||
Total Assets | $ | 55,406 | $ | 49,191 | |||||
Liabilities and Stockholders’ Equity | |||||||||
Other liabilities | $ | 18 | $ | 18 | |||||
Common stock | 114 | 110 | |||||||
Additional paid-in capital | 67,231 | 65,038 | |||||||
Accumulated deficit | (4,036 | ) | (10,899 | ) | |||||
Accumulated other comprehensive income | 52 | 2,436 | |||||||
Treasury stock at cost | (7,973 | ) | (7,512 | ) | |||||
Total Stockholders’ Equity | 55,388 | 49,173 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 55,406 | $ | 49,191 | |||||
Condensed Income Statement [Table Text Block] | ' | ||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Interest income | $ | — | $ | — | |||||
Interest expense | — | — | |||||||
Net interest income | — | — | |||||||
Compensation and benefits | (35 | ) | (32 | ) | |||||
Other operating expenses | (63 | ) | (58 | ) | |||||
Loss before taxes | (98 | ) | (90 | ) | |||||
Income tax provision | — | — | |||||||
Loss before equity in undistributed income of subsidiary bank | (98 | ) | (90 | ) | |||||
Equity in undistributed income of subsidiary bank | 6,961 | 3,032 | |||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Comprehensive income | $ | 4,479 | $ | 3,811 | |||||
Condensed Cash Flow Statement [Table Text Block] | ' | ||||||||
Years ended December 31, | |||||||||
(in thousands) | 2013 | 2012 | |||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 6,863 | $ | 2,942 | |||||
Adjustments to reconcile net income to net cash used in operations: | |||||||||
Equity in undistributed net income of subsidiary bank | (6,961 | ) | (3,032 | ) | |||||
Decrease in other liabilities | — | (40 | ) | ||||||
Net cash used in operating activities | (98 | ) | (130 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from exercise of stock options | 1,435 | — | |||||||
Purchase of treasury stock | — | (166 | ) | ||||||
Shares surrendered to pay taxes on vesting of restricted stock | (461 | ) | (75 | ) | |||||
Net cash provided by (used in) financing activities | 974 | (241 | ) | ||||||
Net change in cash and cash equivalents | 876 | (371 | ) | ||||||
Cash and cash equivalents, beginning of year | 1,206 | 1,577 | |||||||
Cash and cash equivalents, end of year | $ | 2,082 | $ | 1,206 |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Deferred Tax Liabilities, Unrealized Gains on Investment Securities (in Dollars) | 3.1 | 1.7 |
Employee Stock Option [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 370,073 | 1,179,373 |
Restricted Stock [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 91,660 | 164,152 |
Minimum [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'three | ' |
Maximum [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'ten | ' |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' |
Net income (in Dollars) | $6,863 | $2,942 |
Average number of common shares outstanding | 8,660,641 | 8,520,420 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,079,642 | 8,785,564 |
Employee Stock Option [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' |
Effect of dilution of stock | 161,046 | ' |
Restricted Stock [Member] | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' |
Effect of dilution of stock | 257,955 | 265,144 |
Note_2_Investment_Securities_D
Note 2 - Investment Securities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 2 - Investment Securities (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | $43,013,000 | $45,328,000 |
Securities Weighted Average Life | 3.78 | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 36 | 4 |
From California Treasurer's Office [Member] | ' | ' |
Note 2 - Investment Securities (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | 38,000,000 | 34,000,000 |
To California Treasurer's Office [Member] | ' | ' |
Note 2 - Investment Securities (Details) [Line Items] | ' | ' |
Available-for-sale Securities Pledged as Collateral | $45,400,000 | $47,700,000 |
Note_2_Investment_Securities_D1
Note 2 - Investment Securities (Details) - Investments Categorized as Available for Sale (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investments — Available for Sale | ' | ' |
Amortized Cost | $106,183 | $177,086 |
Gross Unrealized Gains | 993 | 4,157 |
Gross Unrealized Losses | -904 | -18 |
Fair Value | 106,272 | 181,225 |
Corporate Note Securities [Member] | ' | ' |
Investments — Available for Sale | ' | ' |
Amortized Cost | 3,074 | 34,534 |
Gross Unrealized Gains | 34 | 741 |
Fair Value | 3,108 | 35,275 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Investments — Available for Sale | ' | ' |
Amortized Cost | 103,109 | 140,416 |
Gross Unrealized Gains | 959 | 3,345 |
Gross Unrealized Losses | -904 | -18 |
Fair Value | 103,164 | 143,743 |
US Treasury Securities [Member] | ' | ' |
Investments — Available for Sale | ' | ' |
Amortized Cost | ' | 2,136 |
Gross Unrealized Gains | ' | 71 |
Gross Unrealized Losses | ' | 0 |
Fair Value | ' | $2,207 |
Note_2_Investment_Securities_D2
Note 2 - Investment Securities (Details) - Fair Value of AFS Securities and the Weighted Average Yield of Investment Securities by Contractual Maturity (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
1 Year or Less (in Dollars) | $502 | ' |
Weighted Average Yield | 2.09% | ' |
After 1 Through 5 Years (in Dollars) | 2,606 | ' |
After 5 Through 10 Years (in Dollars) | 54,317 | ' |
After 10 Years (in Dollars) | 48,847 | ' |
Total (in Dollars) | 106,272 | 181,225 |
One Year or Less [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.12% | ' |
After One Through Five Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.35% | ' |
After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.84% | ' |
After Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.42% | ' |
Corporate Note Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
1 Year or Less (in Dollars) | 502 | ' |
Weighted Average Yield | 1.31% | ' |
After 1 Through 5 Years (in Dollars) | 2,606 | ' |
After 5 Through 10 Years (in Dollars) | 0 | ' |
After 10 Years (in Dollars) | 0 | ' |
Total (in Dollars) | 3,108 | 35,275 |
Corporate Note Securities [Member] | One Year or Less [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.12% | ' |
Corporate Note Securities [Member] | After One Through Five Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.35% | ' |
Corporate Note Securities [Member] | After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 0.00% | ' |
Corporate Note Securities [Member] | After Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 0.00% | ' |
Residential Mortgage Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.12% | ' |
After 5 Through 10 Years (in Dollars) | 54,317 | ' |
After 10 Years (in Dollars) | 48,847 | ' |
Total (in Dollars) | $103,164 | $143,743 |
Residential Mortgage Backed Securities [Member] | After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.84% | ' |
Residential Mortgage Backed Securities [Member] | After Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.42% | ' |
Note_2_Investment_Securities_D3
Note 2 - Investment Securities (Details) - Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time that Individual Securities Have Been in a Continuous Loss Position (Residential Mortgage Backed Securities [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Less Than Twelve Months Gross Unrealized Losses | ($904) | ($18) |
Less than Twelve Months Fair Value | 51,847 | 7,584 |
Twelve Months or More Gross Unrealized Losses | 0 | 0 |
Twelve Month or More Fair Value | $0 | $0 |
Note_3_Loans_Allowance_for_Loa2
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Loans and Leases Receivable, Gross | $383,500,000 | $266,626,000 | ||
Loans and Leases Receivable Total | ' | 266,700,000 | ||
Percentage of Loan Portfolio Secured By Real Estate | 86.90% | 84.50% | ||
Unsecured Commercial Loan Balances | 13,200,000 | 10,000,000 | ||
Unsecured Consumer and Other Loan Balances | 2,300,000 | 901,000 | ||
Financing Receivable, Acquired with Deteriorated Credit Quality | 0 | 0 | ||
Nonperforming Loans to Gross Loans | 0.20% | 0.70% | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | ' | ||
Impaired Financing Receivable, Average Recorded Investment | 1,200,000 | 6,800,000 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 9,000 | 12,000 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | ' | 0 | ||
Impaired Loans [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 735,000 | 1,900,000 | ||
Increse (Decrease) [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Additions to Non-Performing Loans | 198,000 | ' | ||
Residential [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Loans and Leases Receivable, Gross | 82,795,000 | 53,162,000 | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | ' | 2,300,000 | ||
Impaired Financing Receivable, Average Recorded Investment | 0 | 0 | ||
Commercial [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Loans and Leases Receivable, Gross | 76,397,000 | [1] | 58,769,000 | [1] |
Impaired Financing Receivable, Average Recorded Investment | 996,000 | 2,182,000 | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 1 | ' | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | 572,000 | ' | ||
Commitments to Extend Credit [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Other Commitment | 104,300,000 | 74,200,000 | ||
Standby Letters of Credit [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Other Commitment | 2,600,000 | 1,900,000 | ||
Unfunded Lending Commitments [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Unfunded Lending Commitments, Allowance | 270,000 | 203,000 | ||
Doubtful [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Loans and Leases Receivable, Gross | 0 | 0 | ||
Loss [Member] | ' | ' | ||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ||
Loans and Leases Receivable, Gross | $0 | $0 | ||
[1] | Unsecured commercial loan balances were $13.2 million and $10.0 million at December 31, 2013 and 2012, respectively. |
Note_3_Loans_Allowance_for_Loa3
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Loans Outstanding (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | $383,500,000 | $266,626,000 | ' | ||
Net deferred costs | 48,000 | 45,000 | ' | ||
Less — allowance for loan losses | -7,236,000 | -6,015,000 | -5,284,000 | ||
Loans, net | 376,312,000 | 260,656,000 | ' | ||
Commercial [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | 76,397,000 | [1] | 58,769,000 | [1] | ' |
Loan Category Percent | 19.90% | [1] | 22.00% | [1] | ' |
Less — allowance for loan losses | -1,583,000 | -2,277,000 | -2,584,000 | ||
Commercial Real Estate Loans [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | 167,419,000 | 110,031,000 | ' | ||
Loan Category Percent | 43.70% | 41.30% | ' | ||
Less — allowance for loan losses | -3,660,000 | -2,450,000 | -1,252,000 | ||
Residential [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | 82,795,000 | 53,162,000 | ' | ||
Loan Category Percent | 21.60% | 19.90% | ' | ||
Less — allowance for loan losses | -758,000 | -508,000 | -583,000 | ||
Land and Construction [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | 30,102,000 | 19,080,000 | ' | ||
Loan Category Percent | 7.80% | 7.20% | ' | ||
Less — allowance for loan losses | -811,000 | -411,000 | -516,000 | ||
Consumer and Other [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | 26,787,000 | [2] | 25,584,000 | [2] | ' |
Loan Category Percent | 7.00% | [2] | 9.60% | [2] | ' |
Less — allowance for loan losses | -424,000 | -369,000 | -349,000 | ||
Loans Outstanding Total [Member] | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Loan Category Amount Outstanding | $383,500,000 | $266,626,000 | ' | ||
Loan Category Percent | 100.00% | 100.00% | ' | ||
[1] | Unsecured commercial loan balances were $13.2 million and $10.0 million at December 31, 2013 and 2012, respectively. | ||||
[2] | Unsecured consumer and other loan balances were $2.3 million and $901,000 at December 31, 2013 and 2012, respectively. |
Note_3_Loans_Allowance_for_Loa4
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Recorded Investment in Loans and Allowance for Loan Losses (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for loan losses: | ' | ' | ||
Beginning balance | $6,015,000 | $5,284,000 | ||
Allowance for loan losses ending balance | 7,236,000 | 6,015,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: individually evaluated for impairment | 35,000 | 500,000 | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 7,201,000 | 5,515,000 | ||
Loans: | ' | ' | ||
Loans ending balance: individually evaluated for impairment | 953,000 | 2,144,000 | ||
Loans losses ending balance: collectively evaluated for impairment | 382,547,000 | 264,482,000 | ||
Loans ending balance | 383,500,000 | 266,626,000 | ||
Provision for loan losses | 100,000 | ' | ||
Charge-offs | ' | -431,000 | ||
Recoveries | 1,121,000 | 1,162,000 | ||
Commercial [Member] | ' | ' | ||
Allowance for loan losses: | ' | ' | ||
Beginning balance | 2,277,000 | 2,584,000 | ||
Allowance for loan losses ending balance | 1,583,000 | 2,277,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: individually evaluated for impairment | 35,000 | 500,000 | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 1,548,000 | 1,777,000 | ||
Loans: | ' | ' | ||
Loans ending balance: individually evaluated for impairment | 924,000 | 1,799,000 | ||
Loans losses ending balance: collectively evaluated for impairment | 75,473,000 | 56,970,000 | ||
Loans ending balance | 76,397,000 | [1] | 58,769,000 | [1] |
Provision for loan losses | -1,765,000 | -305,000 | ||
Charge-offs | ' | -26,000 | ||
Recoveries | 1,071,000 | 24,000 | ||
Commercial Real Estate Loans [Member] | ' | ' | ||
Allowance for loan losses: | ' | ' | ||
Beginning balance | 2,450,000 | 1,252,000 | ||
Allowance for loan losses ending balance | 3,660,000 | 2,450,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 3,660,000 | 2,450,000 | ||
Loans: | ' | ' | ||
Loans losses ending balance: collectively evaluated for impairment | 167,419,000 | 110,031,000 | ||
Loans ending balance | 167,419,000 | 110,031,000 | ||
Provision for loan losses | 1,210,000 | 485,000 | ||
Charge-offs | ' | -400,000 | ||
Recoveries | ' | 1,113,000 | ||
Residential [Member] | ' | ' | ||
Allowance for loan losses: | ' | ' | ||
Beginning balance | 508,000 | 583,000 | ||
Allowance for loan losses ending balance | 758,000 | 508,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 758,000 | 508,000 | ||
Loans: | ' | ' | ||
Loans losses ending balance: collectively evaluated for impairment | 82,795,000 | 53,162,000 | ||
Loans ending balance | 82,795,000 | 53,162,000 | ||
Provision for loan losses | 250,000 | -75,000 | ||
Land and Construction [Member] | ' | ' | ||
Allowance for loan losses: | ' | ' | ||
Beginning balance | 411,000 | 516,000 | ||
Allowance for loan losses ending balance | 811,000 | 411,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 811,000 | 411,000 | ||
Loans: | ' | ' | ||
Loans losses ending balance: collectively evaluated for impairment | 30,102,000 | 19,080,000 | ||
Loans ending balance | 30,102,000 | 19,080,000 | ||
Provision for loan losses | 400,000 | -100,000 | ||
Charge-offs | ' | -5,000 | ||
Consumer and Other [Member] | ' | ' | ||
Allowance for loan losses: | ' | ' | ||
Beginning balance | 369,000 | 349,000 | ||
Allowance for loan losses ending balance | 424,000 | 369,000 | ||
As of December 31, 2013: | ' | ' | ||
Allowance for loan losses ending balance: collectively evaluated for impairment | 424,000 | 369,000 | ||
Loans: | ' | ' | ||
Loans ending balance: individually evaluated for impairment | 29,000 | 345,000 | ||
Loans losses ending balance: collectively evaluated for impairment | 26,758,000 | 25,239,000 | ||
Loans ending balance | 26,787,000 | [2] | 25,584,000 | [2] |
Provision for loan losses | 5,000 | -5,000 | ||
Recoveries | $50,000 | $25,000 | ||
[1] | Unsecured commercial loan balances were $13.2 million and $10.0 million at December 31, 2013 and 2012, respectively. | |||
[2] | Unsecured consumer and other loan balances were $2.3 million and $901,000 at December 31, 2013 and 2012, respectively. |
Note_3_Loans_Allowance_for_Loa5
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Aging Analysis of Past Due Loans (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Total | $383,500,000 | $266,626,000 |
Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 187,000 | 599,000 |
60-89 Days Past Due | ' | 577,000 |
> 90 Days Past Due | 706,000 | 812,000 |
Total Past Due | 893,000 | 1,988,000 |
Current | 75,504,000 | 56,781,000 |
Total | 76,397,000 | 58,769,000 |
Commercial Real Estate Loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | ' | 4,828,000 |
> 90 Days Past Due | ' | 2,300,000 |
Total Past Due | ' | 7,128,000 |
Current | 167,419,000 | 102,903,000 |
Total | 167,419,000 | 110,031,000 |
Residential [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 82,795,000 | 53,162,000 |
Total | 82,795,000 | 53,162,000 |
Land and Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Current | 30,102,000 | 19,080,000 |
Total | 30,102,000 | 19,080,000 |
Consumer and Other [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
> 90 Days Past Due | 29,000 | 345,000 |
Total Past Due | 29,000 | 345,000 |
Current | 26,758,000 | 25,239,000 |
Total | 26,787,000 | 25,584,000 |
Total [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30-59 Days Past Due | 187,000 | 5,427,000 |
60-89 Days Past Due | ' | 577,000 |
> 90 Days Past Due | 735,000 | 3,457,000 |
Total Past Due | 922,000 | 9,461,000 |
Current | 382,578,000 | 257,165,000 |
Total | $383,500,000 | $266,626,000 |
Note_3_Loans_Allowance_for_Loa6
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Nonaccrual Loans and Other Real Estate Owned (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Non-accrual loans: | ' | ' |
OREO | $90,000 | $90,000 |
Total non-performing assets | 825,000 | 1,944,000 |
Non-performing assets to gross loans and OREO | 0.22% | 0.73% |
Non-performing assets to total assets | 0.15% | 0.39% |
Commercial [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 706,000 | 1,509,000 |
Commercial Real Estate Loans [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 0 | 0 |
Land and Construction [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 0 | 0 |
Consumer and Other [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 29,000 | 345,000 |
Total Nonaccrual Loans [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | $735,000 | $1,854,000 |
Note_3_Loans_Allowance_for_Loa7
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Credit Exposure by Internally Assigned Grades (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Grade: | ' | ' |
Internal Credit Grade | $383,500,000 | $266,626,000 |
Commercial [Member] | Pass [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 73,824,000 | 49,717,000 |
Commercial [Member] | Special Mention [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 1,149,000 | 6,609,000 |
Commercial [Member] | Substandard [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 1,424,000 | 2,443,000 |
Commercial [Member] | Total [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 76,397,000 | 58,769,000 |
Commercial [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 76,397,000 | 58,769,000 |
Commercial Real Estate Loans [Member] | Pass [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 166,828,000 | 109,397,000 |
Commercial Real Estate Loans [Member] | Special Mention [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 0 | 0 |
Commercial Real Estate Loans [Member] | Substandard [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 591,000 | 634,000 |
Commercial Real Estate Loans [Member] | Total [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 167,419,000 | 110,031,000 |
Commercial Real Estate Loans [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 167,419,000 | 110,031,000 |
Residential [Member] | Pass [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 82,795,000 | 53,162,000 |
Residential [Member] | Special Mention [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 0 | 0 |
Residential [Member] | Substandard [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 0 | 0 |
Residential [Member] | Total [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 82,795,000 | 53,162,000 |
Residential [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 82,795,000 | 53,162,000 |
Land and Construction [Member] | Pass [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 26,801,000 | 19,080,000 |
Land and Construction [Member] | Special Mention [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 3,301,000 | 0 |
Land and Construction [Member] | Substandard [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 0 | 0 |
Land and Construction [Member] | Total [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 30,102,000 | 19,080,000 |
Land and Construction [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 30,102,000 | 19,080,000 |
Consumer and Other [Member] | Pass [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 26,503,000 | 25,190,000 |
Consumer and Other [Member] | Special Mention [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 206,000 | 0 |
Consumer and Other [Member] | Substandard [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 78,000 | 394,000 |
Consumer and Other [Member] | Total [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | 26,787,000 | 25,584,000 |
Consumer and Other [Member] | ' | ' |
Grade: | ' | ' |
Internal Credit Grade | $26,787,000 | $25,584,000 |
Note_3_Loans_Allowance_for_Loa8
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Impaired Loans (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
With an allowance recorded: | ' | ' |
Impaired Loans Total - Recorded Investment | $825 | $1,944 |
Impaired Loans Total - Average Recorded Investment | 1,200 | 6,800 |
Commercial [Member] | ' | ' |
With no related allowance recorded: | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | 789 | 988 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | 1,065 | 1,303 |
Impaired Loans No Related Allowance - Average Recorded Investment | 841 | 1,098 |
With an allowance recorded: | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | 135 | 811 |
Impaired Loans Related Allowance - Unpaid Principal Balance | 142 | 1,990 |
Impaired Loans Related Allowance - Related Allowance | 35 | 500 |
Impaired Loans Related Allowance - Average Recorded Investment | 155 | 1,084 |
Impaired Loans Total - Recorded Investment | 924 | 1,799 |
Impaired Loans Total - Unpaid Principal Balance | 1,207 | 3,293 |
Impaired Loans Total - Related Allowance | 35 | 500 |
Impaired Loans Total - Average Recorded Investment | 996 | 2,182 |
Commercial Real Estate [Member] | ' | ' |
With no related allowance recorded: | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans No Related Allowance - Average Recorded Investment | 0 | 3,113 |
With an allowance recorded: | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Related Allowance - Related Allowance | 0 | 0 |
Impaired Loans Related Allowance - Average Recorded Investment | 0 | 0 |
Impaired Loans Total - Recorded Investment | 0 | 0 |
Impaired Loans Total - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Total - Related Allowance | 0 | 0 |
Impaired Loans Total - Average Recorded Investment | 0 | 3,113 |
Residential [Member] | ' | ' |
With no related allowance recorded: | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans No Related Allowance - Average Recorded Investment | 0 | 0 |
With an allowance recorded: | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Related Allowance - Related Allowance | 0 | 0 |
Impaired Loans Related Allowance - Average Recorded Investment | 0 | 0 |
Impaired Loans Total - Recorded Investment | 0 | 0 |
Impaired Loans Total - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Total - Related Allowance | 0 | 0 |
Impaired Loans Total - Average Recorded Investment | 0 | 0 |
Land and Construction [Member] | ' | ' |
With no related allowance recorded: | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans No Related Allowance - Average Recorded Investment | 0 | 1,155 |
With an allowance recorded: | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Related Allowance - Related Allowance | 0 | 0 |
Impaired Loans Related Allowance - Average Recorded Investment | 0 | 0 |
Impaired Loans Total - Recorded Investment | 0 | 0 |
Impaired Loans Total - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Total - Related Allowance | 0 | 0 |
Impaired Loans Total - Average Recorded Investment | 0 | 1,155 |
Consumer and Other [Member] | ' | ' |
With no related allowance recorded: | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | 29 | 345 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | 29 | 345 |
Impaired Loans No Related Allowance - Average Recorded Investment | 240 | 345 |
With an allowance recorded: | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | 0 | 0 |
Impaired Loans Related Allowance - Unpaid Principal Balance | 0 | 0 |
Impaired Loans Related Allowance - Related Allowance | 0 | 0 |
Impaired Loans Related Allowance - Average Recorded Investment | 0 | 0 |
Impaired Loans Total - Recorded Investment | 29 | 345 |
Impaired Loans Total - Unpaid Principal Balance | 29 | 345 |
Impaired Loans Total - Related Allowance | 0 | 0 |
Impaired Loans Total - Average Recorded Investment | $240 | $345 |
Note_3_Loans_Allowance_for_Loa9
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Troubled Debt Restructurings (Commercial [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial [Member] | ' | ' |
Troubled Debt Restructurings: | ' | ' |
Commercial | 0 | 3 |
Commercial | $0 | $988 |
Commercial | $0 | $988 |
Note_4_Derivative_Financial_In2
Note 4 - Derivative Financial Instruments (Details) - Interest Rate Derivative Contracts (Commercial Loan Interest Rate Swaps [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commercial Loan Interest Rate Swaps [Member] | ' | ' |
Non-hedging interest rate derivatives: | ' | ' |
Commercial loan interest rate swaps | $2,706 | $2,800 |
Commercial loan interest rate swaps | 15 | 107 |
Commercial loan interest rate swaps | -2,706 | -2,800 |
Commercial loan interest rate swaps | ($15) | ($107) |
Note_4_Derivative_Financial_In3
Note 4 - Derivative Financial Instruments (Details) - Weighted Average Interest Rates on Interest Rate Swaps | Dec. 31, 2013 | Dec. 31, 2012 |
Non-Hedging Interest Rate Swap 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative interest rate paid | 3.37% | 3.41% |
Derivative interest rate received | 4.85% | 4.85% |
Non-Hedging Interest Rate Swap 2 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative interest rate paid | 4.85% | 4.85% |
Derivative interest rate received | 3.37% | 3.41% |
Note_5_Comprehensive_Income_De
Note 5 - Comprehensive Income (Details) - Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income [Abstract] | ' | ' |
Net income | $6,863 | $2,942 |
Increase in net unrealized (losses) gains on investment securities available for sale, net of tax (benefit) expense of ($1,327) and $608, respectively | -1,900 | 869 |
Reclassification for net gains included in earnings, net of tax expense of $338 and none, respectively | -484 | ' |
Comprehensive income | $4,479 | $3,811 |
Note_5_Comprehensive_Income_De1
Note 5 - Comprehensive Income (Details) - Comprehensive Income (Parentheticals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income [Abstract] | ' | ' |
Tax on net unrealized gains on investment securities available for sale | ($1,327) | $608 |
Tax on reclassification for net gains included in earnings | $338 | $0 |
Note_5_Comprehensive_Income_De2
Note 5 - Comprehensive Income (Details) - Activity of Investment Securities Available for Sale Included in Accumulated Other Comprehensive Incomeinc (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Activity of Investment Securities Available for Sale Included in Accumulated Other Comprehensive Incomeinc [Abstract] | ' | ' |
Beginning balance | $2,436 | $1,567 |
Other comprehensive income (loss) before reclassifications | -1,900 | 869 |
Amounts reclassified from accumulated other comprehensive income | -484 | ' |
Net other comprehensive income (loss) during the year | -2,384 | 869 |
Ending balance | $52 | $2,436 |
Note_6_Related_Party_Transacti2
Note 6 - Related Party Transactions (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' |
Deposits | $452,766,000 | $416,681,000 |
Officers and Directors [Member] | ' | ' |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' |
Due to Related Parties | 1,500,000 | 792,000 |
Deposits | 6,000,000 | 10,800,000 |
Loan Commitments to Officers and Directors [Member] | ' | ' |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' |
Other Commitment | $3,100,000 | $1,400,000 |
Note_6_Related_Party_Transacti3
Note 6 - Related Party Transactions (Details) - Related Party Loan Activities (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Loan Activities [Abstract] | ' | ' |
Beginning balance | $792 | $987 |
Credits granted | 1,265 | 23 |
Repayments | -543 | -218 |
Ending balance | $1,514 | $792 |
Note_7_Premises_and_Equipment_1
Note 7 - Premises and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 7 - Premises and Equipment (Details) [Line Items] | ' | ' |
Depreciation, Depletion and Amortization (in Dollars) | $508,000 | $459,000 |
Minimum [Member] | ' | ' |
Note 7 - Premises and Equipment (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'three | ' |
Maximum [Member] | ' | ' |
Note 7 - Premises and Equipment (Details) [Line Items] | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | 'ten | ' |
Note_7_Premises_and_Equipment_2
Note 7 - Premises and Equipment (Details) - Premises and Equipment (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Premises and Equipment [Abstract] | ' | ' |
Leasehold improvements | $1,316 | $973 |
Furniture & equipment | 2,515 | 2,191 |
Software | 767 | 661 |
Total | 4,598 | 3,825 |
Accumulated depreciation | -3,313 | -2,805 |
Premises and equipment, net | $1,285 | $1,020 |
Note_8_Deposits_Details
Note 8 - Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Note 8 - Deposits (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | $43,013,000 | $45,328,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 9.50% | 10.90% |
Time Deposits, $100,000 or More | 42,143,000 | 43,987,000 |
Contractual Maturities, Time Deposits, $100,000 or More, Six Months or Less | 41,300,000 | ' |
Contractual Maturities, Time Deposits, $100,000 or More, Six Months Through 12 Months | 806,000 | ' |
Certificates of Deposit- State of California [Member] | ' | ' |
Note 8 - Deposits (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | 38,000,000 | 34,000,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 8.40% | 8.20% |
Available-for-sale Securities Pledged as Collateral | 41,800,000 | 37,400,000 |
CDARS Deposit [Member] | ' | ' |
Note 8 - Deposits (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | $2,100,000 | $5,200,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Brokered | 0.50% | 1.30% |
Note_8_Deposits_Details_Deposi
Note 8 - Deposits (Details) - Deposits by Category (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits by Category [Abstract] | ' | ' |
Non-interest bearing demand deposits (in Dollars) | $236,869 | $196,026 |
Non-interest bearing demand deposits | 52.30% | 47.00% |
Interest bearing demand deposits (in Dollars) | 21,005 | 23,233 |
Interest bearing demand deposits | 4.60% | 5.60% |
Money market deposits and savings (in Dollars) | 151,879 | 152,094 |
Money market deposits and savings | 33.60% | 36.50% |
Certificates of deposit (in Dollars) | 43,013 | 45,328 |
Certificates of deposit | 9.50% | 10.90% |
Total (in Dollars) | $452,766 | $416,681 |
Total | 100.00% | 100.00% |
Note_8_Deposits_Details_Certif
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | $43,013 | $45,328 |
Zero-.99 Percent [Member] | Six Months and Less [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | 42,007 | ' |
Zero-.99 Percent [Member] | Greater Than Six Months Through One Year [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | 966 | ' |
Zero-.99 Percent [Member] | Minimum [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit interest rate | 0.00% | ' |
Zero-.99 Percent [Member] | Maximum [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit interest rate | 0.99% | ' |
One-1.99 Percent [Member] | Greater Than One Year [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | 40 | ' |
One-1.99 Percent [Member] | Minimum [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit interest rate | 1.00% | ' |
One-1.99 Percent [Member] | Maximum [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit interest rate | 1.99% | ' |
Six Months and Less [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | 42,007 | ' |
Greater Than Six Months Through One Year [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | 966 | ' |
Greater Than One Year [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit | $40 | ' |
Minimum [Member] | ' | ' |
Note 8 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Certificates of deposit interest rate | ' | ' |
Note_9_Other_Borrowings_Detail
Note 9 - Other Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Short-Term Overnight Borrowing [Member] | ' | ' |
Note 9 - Other Borrowings (Details) [Line Items] | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | $4,500,000 |
FHLB [Member] | ' | ' |
Note 9 - Other Borrowings (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 169,900,000 | 105,100,000 |
Line of Credit Facility, Amount Outstanding | 27,500,000 | 25,000,000 |
Federal Line of Credit [Member] | ' | ' |
Note 9 - Other Borrowings (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 27,000,000 | ' |
Line of Credit Facility, Interest Rate During Period | ' | 1.09% |
Proceeds from Lines of Credit | 0 | ' |
Available-for-sale Securities Pledged as Collateral | $3,100,000 | $3,100,000 |
Note_9_Other_Borrowings_Detail1
Note 9 - Other Borrowings (Details) - Long Term Borrowings (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Federal Home Loan Bank Advances | $27,500 | $25,000 |
May 23, 2013 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 0.63% | ' |
Federal Home Loan Bank Advances | ' | 2,500 |
May 23, 2014 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 1.14% | ' |
Federal Home Loan Bank Advances | 2,500 | 2,500 |
December 29, 2014 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 0.83% | ' |
Federal Home Loan Bank Advances | 5,000 | 5,000 |
December 30, 2014 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 0.74% | ' |
Federal Home Loan Bank Advances | 2,500 | 2,500 |
May 26, 2015 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 1.65% | ' |
Federal Home Loan Bank Advances | 2,500 | 2,500 |
May 23, 2016 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 2.07% | ' |
Federal Home Loan Bank Advances | 2,500 | 2,500 |
December 29, 2016 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 1.38% | ' |
Federal Home Loan Bank Advances | 5,000 | 5,000 |
December 30, 2016 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 1.25% | ' |
Federal Home Loan Bank Advances | 2,500 | 2,500 |
May 2, 2018 [Member] | ' | ' |
Note 9 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
Interest Rate | 0.93% | ' |
Federal Home Loan Bank Advances | $5,000 | ' |
Note_10_Commitments_and_Contin2
Note 10 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Operating Leases, Rent Expense | $739,000 | $562,000 |
Credit Cards [Member] | ' | ' |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Other Commitment | 73,000 | 67,000 |
Commitments to Extend Credit [Member] | ' | ' |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Other Commitment | 104,300,000 | 74,200,000 |
Standby Letters of Credit [Member] | ' | ' |
Note 10 - Commitments and Contingencies (Details) [Line Items] | ' | ' |
Other Commitment | $2,600,000 | $1,900,000 |
Note_10_Commitments_and_Contin3
Note 10 - Commitments and Contingencies (Details) - Minimum Future Rental Payments (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Minimum Future Rental Payments [Abstract] | ' |
2014 | $738 |
2015 | 752 |
2016 | 775 |
2017 | 799 |
2018 | 823 |
Thereafter | 4,339 |
Total | $8,226 |
Note_10_Commitments_and_Contin4
Note 10 - Commitments and Contingencies (Details) - Future Restricted Stock Expense (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future Restricted Stock Expense [Abstract] | ' |
2014 | $602 |
2015 | 349 |
2016 | 165 |
2017 | 54 |
2018 | 10 |
Total | $1,180 |
Note_11_Fair_Value_Measurement2
Note 11 - Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 11 - Fair Value Measurements (Details) [Line Items] | ' | ' |
Available-for-sale Securities (in Dollars) | $106,272,000 | $181,225,000 |
Available for Sale Securities, Weighted Average Interest Rate | 2.12% | 1.95% |
Available for Sale Securities, Weighted Average Life | 3.85 | 2.92 |
Financing Receivable, Allowance for Credit Losses, Recovery (in Dollars) | 1,121,000 | 1,162,000 |
Residential [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) [Line Items] | ' | ' |
Available-for-sale Securities (in Dollars) | 103,200,000 | 143,700,000 |
Net [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) [Line Items] | ' | ' |
Financing Receivable, Allowance for Credit Losses, Recovery (in Dollars) | $1,100,000 | $731,000 |
Note_11_Fair_Value_Measurement3
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Total [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Derivative Assets – Interest Rate Swaps | $15 | $107 |
Derivative Liabilities – Interest Rate Swaps | 15 | 107 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Derivative Assets – Interest Rate Swaps | 15 | 107 |
Derivative Liabilities – Interest Rate Swaps | 15 | 107 |
Corporate Notes [Member] | Total [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | 3,108 | 35,275 |
Corporate Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | 3,108 | 35,275 |
Residential Mortgage Backed Securities [Member] | Total [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | 103,164 | 143,743 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | 103,164 | 143,743 |
US Gov't Treasuries [Member] | Total [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | ' | 2,207 |
US Gov't Treasuries [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' |
Investments-Available for Sale | ' | ' |
Investments - Available for Sale | ' | $2,207 |
Note_11_Fair_Value_Measurement4
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired Loans [Member] | Commercial Real Estate Loans [Member] | Total [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | $672 | ' |
Impaired Loans [Member] | Commercial Real Estate Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | 672 | ' |
Impaired Loans [Member] | Commercial [Member] | Total [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | ' | 889 |
Impaired Loans [Member] | Commercial [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | ' | 889 |
Land and Construction [Member] | Other Real Estate Owned [Member] | Total [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | 90 | 90 |
Land and Construction [Member] | Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | 90 | 90 |
Total [Member] | Total [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | 762 | 979 |
Total [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 11 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset Measured on a nonrecurring basis | $762 | $979 |
Note_12_Estimated_Fair_Value_I
Note 12 - Estimated Fair Value Information (Details) - Fair Value and Carrying Amount of Financial Instruments (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and cash equivalents | $44,688 | $50,555 | $41,926 |
Cash and cash equivalents | 44,688 | 50,555 | ' |
Investment securities | 106,272 | 181,225 | ' |
Investment securities | 106,272 | 181,225 | ' |
FRB stock | 1,570 | 1,363 | ' |
FRB stock | ' | ' | ' |
FHLB stock | 3,062 | 2,415 | ' |
FHLB stock | ' | ' | ' |
Loans, net | 376,312 | 260,656 | ' |
Loans, net | 376,249 | 260,482 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Accrued interest receivable | 1,132 | 1,322 | ' |
Liabilities | ' | ' | ' |
Deposits | 452,766 | 416,681 | ' |
Other borrowings | 27,500 | 29,475 | ' |
Other borrowings | 27,562 | 29,885 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Accrued interest payable | 29 | 157 | ' |
Non-Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Liabilities | ' | ' | ' |
Deposits, fair value | 236,869 | 196,026 | ' |
Non-Interest Bearing Deposit Liabilities [Member] | ' | ' | ' |
Liabilities | ' | ' | ' |
Deposits | 236,869 | 196,026 | ' |
Deposits, fair value | 236,869 | 196,026 | ' |
Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Liabilities | ' | ' | ' |
Deposits, fair value | 172,884 | 175,327 | ' |
Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Liabilities | ' | ' | ' |
Deposits, fair value | 43,013 | 45,328 | ' |
Interest Bearing Deposit Liabilities [Member] | ' | ' | ' |
Liabilities | ' | ' | ' |
Deposits | 215,897 | 220,655 | ' |
Deposits, fair value | 215,897 | 220,655 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents | 44,688 | 50,555 | ' |
Investment securities | ' | 2,207 | ' |
Accrued interest receivable | 1,132 | 1,322 | ' |
Liabilities | ' | ' | ' |
Accrued interest payable | 29 | 157 | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Investment securities | 106,272 | 179,018 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Liabilities | ' | ' | ' |
Other borrowings | 27,562 | 29,885 | ' |
Non-hedging interest rate swaps | 15 | 107 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Loans, net | $376,249 | $260,482 | ' |
Note_13_NonInterest_Income_Det
Note 13 - Non-Interest Income (Details) - Non-Interest Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Note 13 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' |
Other Income | $1,793 | $1,986 |
Total non-interest income | 1,793 | 1,986 |
Gain on sale of AFS investment securities | 822 | ' |
Loan Arrangement Fees [Member] | ' | ' |
Note 13 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' |
Other Income | 667 | 1,461 |
Service Charges and Other Operating Income [Member] | ' | ' |
Note 13 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' |
Other Income | $304 | $525 |
Note_14_Other_Operating_Expens
Note 14 - Other Operating Expenses (Details) - Other Operating Expenses (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Operating Expenses [Abstract] | ' | ' |
Loan expenses | $413 | $1,012 |
Board of Directors fees/non-cash stock expenses | 362 | 261 |
OCC assessments | 135 | 120 |
Branch/customer expense | 525 | 451 |
Stationery and supplies | 89 | 74 |
Insurance | 87 | 76 |
Dues, memberships and subscriptions | 123 | 129 |
Stockholders expense | 136 | 74 |
Telephone | 122 | 76 |
Delaware Franchise Tax | 107 | 64 |
Provision for unfunded lending commitments | 67 | ' |
Other expenses | 121 | 395 |
Total other operating expenses | $2,287 | $2,732 |
Note_15_StockBased_Compensatio2
Note 15 - Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
15-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | 8-May-13 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Apr. 30, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 15-May-12 | 15-May-12 | 15-May-12 | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Equity Incentive Plan 1 [Member] | Equity Incentive Plan 1 [Member] | Equity Incentive Plan 1 [Member] | Founder 2004 [Member] | Founder 2004 [Member] | Director and Employee Stock Option Plan [Member] | Director and Employee Stock Option Plan [Member] | Three Year Period [Member] | Four Year Period [Member] | Five Year Period [Member] | |||||
Equity Incentive Plan 1 [Member] | Three Year Period [Member] | Four Year Period [Member] | Five Year Period [Member] | ||||||||||||||
Note 15 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | 138,500 | 164,152 | ' | 138,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | 50.00% | 25.00% | 25.00% | ' | ' | ' | ' | 50.00% | 25.00% | 25.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights | ' | ' | ' | ' | ' | ' | ' | '69,250 | '34,625 | '34,625 | ' | ' | ' | ' | '72,500 | '36,250 | '36,250 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | '3 years | '4 years | '5 years | ' | ' | ' | ' | '3 years | '4 years | '5 years |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock or Unit Expense (in Dollars) | ' | $749,000 | $552,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars) | ' | ' | ' | ' | ' | $686,000 | $414,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 41,900 | 0 | 0 | 245,000 | ' | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '54 days | '1 year 54 days | '288 days | '1 year 233 days | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,800 | 133,700 | 800,673 | 1,045,673 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $5 | $6.37 | $6.05 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' |
Note_15_StockBased_Compensatio3
Note 15 - Stock-Based Compensation (Details) - Activities Related to Restricted Stock Awards Outstanding (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Activities Related to Restricted Stock Awards Outstanding [Abstract] | ' | ' |
Beginning balance | 563,516 | 536,733 |
Beginning balance (in Dollars per share) | $4.23 | $4.03 |
Ending balance | 529,529 | 563,516 |
Ending balance (in Dollars per share) | $4.62 | $4.23 |
Granted | 138,500 | 164,152 |
Granted (in Dollars per share) | $5.82 | $4.83 |
Vested | -160,237 | -97,744 |
Vested (in Dollars per share) | $4.28 | $4.23 |
Forfeited and surrendered | -12,250 | -39,625 |
Forfeited and surrendered (in Dollars per share) | $4.56 | $4.05 |
Note_15_StockBased_Compensatio4
Note 15 - Stock-Based Compensation (Details) - Amount of Shares Authorized and Available Under all Stock Plans | 8-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Founder Stock Option Plan 2004 [Member] | Director and Employee Stock Option Plan [Member] | 2005 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | ||
Note 15 - Stock-Based Compensation (Details) - Amount of Shares Authorized and Available Under all Stock Plans [Line Items] | ' | ' | ' | ' | ' |
Equity Incentive Plans, Shares Reserved | 750,000 | 150,000 | 1,434,000 | 1,200,000 | 750,000 |
Equity Incentive Plans, Less Shares Previously Exercised/Vested | ' | 49,900 | 461,924 | 657,744 | ' |
Equity Incentive Plans, Less Shares Outstanding | ' | 91,800 | 800,673 | 529,529 | ' |
Equity Incentive Plans, Total Shares Available for Issuance | ' | ' | ' | ' | 750,000 |
Note_16_Income_Taxes_Details
Note 16 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 16 - Income Taxes (Details) [Line Items] | ' | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Deferred Tax Assets, Net | $3,087,000 | ($1,704,000) |
Deferred Tax Liabilities, Net | ' | 1,700,000 |
Internal Revenue Service (IRS) [Member] | ' | ' |
Note 16 - Income Taxes (Details) [Line Items] | ' | ' |
Operating Loss Carryforwards | 378,000 | 4,100,000 |
State and Local Jurisdiction [Member] | ' | ' |
Note 16 - Income Taxes (Details) [Line Items] | ' | ' |
Operating Loss Carryforwards | $2,500,000 | $6,800,000 |
Note_16_Income_Taxes_Details_I
Note 16 - Income Taxes (Details) - Income Tax Provision (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | ' | ' |
Federal | $92 | $84 |
State | 24 | 27 |
Deferred: | ' | ' |
Federal | 1,003 | 1,169 |
State | 130 | 212 |
1,249 | 1,492 | |
Valuation allowance | -4,308 | -1,381 |
Income tax (benefit) provision | ($3,059) | $111 |
Note_16_Income_Taxes_Details_R
Note 16 - Income Taxes (Details) - Reconciliation of the Income Tax Rate to Statutory Rate (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the Income Tax Rate to Statutory Rate [Abstract] | ' | ' |
Federal income tax provision at statutory rate (in Dollars) | $1,293 | $1,038 |
Federal income tax provision at statutory rate | 34.00% | 34.00% |
Changes due to: | ' | ' |
State franchise tax, net of federal income tax (in Dollars) | 272 | 218 |
State franchise tax, net of federal income tax | 7.00% | 7.00% |
Alternative minimum tax (in Dollars) | -86 | 111 |
Alternative minimum tax | -2.00% | 4.00% |
Valuation allowance (in Dollars) | -4,308 | -1,381 |
Valuation allowance | -113.00% | -45.00% |
Other, net (in Dollars) | -230 | 125 |
Other, net | -6.00% | 4.00% |
Total income tax (benefit) provision (in Dollars) | ($3,059) | $111 |
Total income tax (benefit) provision | -80.00% | 4.00% |
Note_16_Income_Taxes_Details_M
Note 16 - Income Taxes (Details) - Major Components of the Net Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating losses | $399 | $1,883 |
Allowance for loan losses | 1,295 | 1,254 |
Equity compensation | 594 | 562 |
Depreciation | 118 | 180 |
Accrued compensation | 394 | 278 |
Other | 471 | 269 |
Valuation allowance | ' | -4,308 |
Total deferred tax assets | 3,271 | 118 |
Deferred tax liabilities: | ' | ' |
Prepaid expenses | 39 | 61 |
Federal Home Loan Bank stock dividends | 57 | 57 |
Net unrealized gains on investment securities | 88 | 1,704 |
Total deferred tax liabilities | 184 | 1,822 |
Net deferred tax liabilities | $3,087 | ($1,704) |
Note_17_Employee_Benefit_Plan_
Note 17 - Employee Benefit Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ' | ' |
Defined Contribution Plan, Cost Recognized (in Dollars) | $182,000 | $151,000 |
First Three Percent of Employee's Salary [Member] | ' | ' |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | ' |
Matched at 100% [Member] | ' | ' |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% | ' |
Next Two Percent of Employee's Salary [Member] | ' | ' |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 50.00% | ' |
Matched at 50% [Member] | ' | ' |
Note 17 - Employee Benefit Plan (Details) [Line Items] | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 2.00% | ' |
Note_18_Regulatory_Matters_Det
Note 18 - Regulatory Matters (Details) | Dec. 31, 2013 | Jul. 02, 2013 | Dec. 31, 2012 |
Note 18 - Regulatory Matters (Details) [Line Items] | ' | ' | ' |
Tier One Risk Based Capital to Risk Weighted Assets | ' | 4.50% | ' |
Tier 1 Capital Conservation Buffer | ' | 2.50% | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | ' | 4.00% |
Minimum [Member] | ' | ' | ' |
Note 18 - Regulatory Matters (Details) [Line Items] | ' | ' | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 18 - Regulatory Matters (Details) [Line Items] | ' | ' | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ' | ' |
Note_18_Regulatory_Matters_Det1
Note 18 - Regulatory Matters (Details) - The Company’s and the Bank’s Capital Ratios (USD $) | Dec. 31, 2013 | Jul. 02, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
For Capital Adequacy, Amount (in Dollars) | $33,062 | ' | $25,977 |
For Capital Adequacy, Ratio | 8.00% | ' | 8.00% |
To Be Well Capitalized, Amount (in Dollars) | 41,326 | ' | 32,470 |
To Be Well Capitalized | 10.00% | ' | 10.00% |
Ratio | ' | 4.50% | ' |
For Capital Adequacy, Amount (in Dollars) | 16,531 | ' | 12,988 |
For Capital Adequacy, Ratio | 4.00% | ' | 4.00% |
To Be Well Capitalized, Amount (in Dollars) | 24,796 | ' | 19,482 |
To Be Well Capitalized, Ratio | 6.00% | ' | 6.00% |
For Capital Adequacy, Amount (in Dollars) | 22,025 | ' | 19,748 |
For Capital Adequacy, Ratio | 4.00% | ' | 4.00% |
To Be Well Capitalized, Amount (in Dollars) | 27,541 | ' | 24,696 |
To Be Well Capitalized, Ratio | 5.00% | ' | 5.00% |
Company [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Amount (in Dollars) | 58,620 | ' | 50,823 |
Ratio | 14.18% | ' | 15.65% |
Amount (in Dollars) | 53,425 | ' | 46,738 |
Ratio | 12.93% | ' | 14.39% |
Amount (in Dollars) | 53,425 | ' | 46,738 |
Ratio | 9.70% | ' | 9.47% |
Bank [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Amount (in Dollars) | 56,555 | ' | 49,635 |
Ratio | 13.69% | ' | 15.29% |
Amount (in Dollars) | 51,361 | ' | 45,549 |
Ratio | 12.43% | ' | 14.03% |
Amount (in Dollars) | $51,361 | ' | $45,549 |
Ratio | 9.32% | ' | 9.22% |
Note_19_Parent_Company_Only_Co2
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | ' |
Cash and due from banks | $6,648 | $6,967 | ' |
Total Assets | 538,145 | 499,173 | ' |
Liabilities and Stockholders’ Equity | ' | ' | ' |
Other liabilities | 2,491 | 3,844 | ' |
Common stock | 114 | 110 | ' |
Additional paid-in capital | 67,231 | 65,038 | ' |
Accumulated deficit | -4,036 | -10,899 | ' |
Accumulated other comprehensive income | 52 | 2,436 | ' |
Treasury stock at cost | 7,973 | 7,512 | ' |
Total Stockholders’ Equity | 55,388 | 49,173 | 45,051 |
Total Liabilities and Stockholders’ Equity | 538,145 | 499,173 | ' |
Parent Company [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash and due from banks | 2,082 | 1,206 | ' |
Investment in subsidiary bank | 53,324 | 47,985 | ' |
Total Assets | 55,406 | 49,191 | ' |
Liabilities and Stockholders’ Equity | ' | ' | ' |
Other liabilities | 18 | 18 | ' |
Common stock | 114 | 110 | ' |
Additional paid-in capital | 67,231 | 65,038 | ' |
Accumulated deficit | -4,036 | -10,899 | ' |
Accumulated other comprehensive income | 52 | 2,436 | ' |
Treasury stock at cost | -7,973 | -7,512 | ' |
Total Stockholders’ Equity | 55,388 | 49,173 | ' |
Total Liabilities and Stockholders’ Equity | $55,406 | $49,191 | ' |
Note_19_Parent_Company_Only_Co3
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Interest income | $17,016 | $15,039 |
Interest expense | 808 | 966 |
Net interest income | 16,208 | 14,073 |
Income tax provision | -3,059 | 111 |
Net income | 6,863 | 2,942 |
Comprehensive income | 4,479 | 3,811 |
Parent Company [Member] | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' |
Interest income | 0 | 0 |
Interest expense | 0 | 0 |
Net interest income | 0 | 0 |
Compensation and benefits | -35 | -32 |
Other operating expenses | -63 | -58 |
Loss before taxes | -98 | -90 |
Income tax provision | 0 | 0 |
Loss before equity in undistributed income of subsidiary bank | -98 | -90 |
Equity in undistributed income of subsidiary bank | 6,961 | 3,032 |
Net income | 6,863 | 2,942 |
Comprehensive income | $4,479 | $3,811 |
Note_19_Parent_Company_Only_Co4
Note 19 - Parent Company Only Condensed Financial Information (Details) - Condensed Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $6,863 | $2,942 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of stock options | 1,435 | ' |
Purchase of treasury stock | ' | -166 |
Shares surrendered to pay taxes on vesting of restricted stock | -461 | -75 |
Net cash provided by (used in) financing activities | 35,084 | 88,461 |
Net change in cash and cash equivalents | -5,867 | 8,629 |
Cash and cash equivalents | 44,688 | 50,555 |
Parent Company [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | 6,863 | 2,942 |
Adjustments to reconcile net income to net cash used in operations: | ' | ' |
Equity in undistributed net income of subsidiary bank | -6,961 | -3,032 |
Decrease in other liabilities | ' | -40 |
Net cash used in operating activities | -98 | -130 |
Cash flows from financing activities: | ' | ' |
Proceeds from exercise of stock options | 1,435 | ' |
Purchase of treasury stock | ' | -166 |
Shares surrendered to pay taxes on vesting of restricted stock | -461 | -75 |
Net cash provided by (used in) financing activities | 974 | -241 |
Net change in cash and cash equivalents | 876 | -371 |
Parent Company [Member] | Beginning of Year [Member] | ' | ' |
Cash flows from financing activities: | ' | ' |
Cash and cash equivalents | 1,206 | 1,577 |
Parent Company [Member] | End of Year [Member] | ' | ' |
Cash flows from financing activities: | ' | ' |
Cash and cash equivalents | $2,082 | $1,206 |