Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | '1st Century Bancshares, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 10,146,078 |
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 | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $10,392 | $6,648 |
Interest earning deposits at other financial institutions | 49,906 | 38,040 |
Total cash and cash equivalents | 60,298 | 44,688 |
Investment securities — Available for Sale (“AFSâ€), at estimated fair value | 78,060 | 106,272 |
Loans, net of allowance for loan losses of $7,367 and $7,236 at June 30, 2014 and December 31, 2013, respectively | 405,346 | 376,312 |
Premises and equipment, net | 1,230 | 1,285 |
Federal Home Loan Bank (“FHLBâ€) and Federal Reserve Bank (“FRBâ€) stock | 4,767 | 4,632 |
Accrued interest and other assets | 4,712 | 4,956 |
Total Assets | 554,413 | 538,145 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Non-interest bearing demand deposits | 261,987 | 236,869 |
Interest bearing deposits: | ' | ' |
Interest bearing checking (“NOWâ€) | 23,594 | 21,005 |
Money market deposits and savings | 140,830 | 151,879 |
Certificates of deposit less than $100 | 806 | 870 |
Certificates of deposit of $100 or greater | 40,555 | 42,143 |
Total deposits | 467,772 | 452,766 |
Other borrowings | 25,000 | 27,500 |
Accrued interest and other liabilities | 2,481 | 2,491 |
Total Liabilities | 495,253 | 482,757 |
Commitments and contingencies (Note 9) | 0 | 0 |
Stockholders’ Equity: | ' | ' |
Preferred stock, $0.01 par value — 10,000,000 shares authorized, none issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 0 | 0 |
Common stock, $0.01 par value — 50,000,000 shares authorized, 12,109,310 and 11,378,710 issued at June 30, 2014 and December 31, 2013, respectively | 121 | 114 |
Additional paid-in capital | 70,158 | 67,231 |
Accumulated deficit | -2,855 | -4,036 |
Accumulated other comprehensive income | 227 | 52 |
Treasury stock at cost — 1,967,262 and 1,897,902 shares at June 30, 2014 and December 31, 2013, respectively | -8,491 | -7,973 |
Total Stockholders’ Equity | 59,160 | 55,388 |
Total Liabilities and Stockholders’ Equity | $554,413 | $538,145 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for Loan Losses (in Dollars) | $7,367 | $7,236 |
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 | 12,109,310 | 11,378,710 |
Treasury Stock, Shares | 1,967,262 | 1,897,902 |
Unaudited_Consolidated_Stateme
Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Interest and fee income on: | ' | ' | ' | ' |
Loans | $4,082 | $3,307 | $7,950 | $6,565 |
Investments | 508 | 714 | 1,069 | 1,493 |
Other | 106 | 54 | 215 | 105 |
Total interest and fee income | 4,696 | 4,075 | 9,234 | 8,163 |
Interest expense on: | ' | ' | ' | ' |
Deposits | 107 | 124 | 217 | 254 |
Borrowings | 80 | 83 | 162 | 157 |
Total interest expense | 187 | 207 | 379 | 411 |
Net interest income | 4,509 | 3,868 | 8,855 | 7,752 |
Provision for (reduction of) loan losses | 100 | ' | 100 | -500 |
Net interest income after provision for (reduction of) loan losses | 4,409 | 3,868 | 8,755 | 8,252 |
Non-interest income | ' | ' | ' | ' |
Gain on sale of AFS investment securities | 533 | 535 | 786 | 535 |
Other operating income | 190 | 302 | 302 | 661 |
Total non-interest income | 723 | 837 | 1,088 | 1,196 |
Non-interest expenses: | ' | ' | ' | ' |
Compensation and benefits | 2,218 | 1,970 | 4,677 | 3,952 |
Occupancy | 404 | 379 | 776 | 736 |
Professional fees | 159 | 191 | 312 | 316 |
Technology | 201 | 191 | 394 | 370 |
Marketing | 86 | 79 | 162 | 142 |
FDIC assessments | 108 | 55 | 185 | 143 |
Other operating expenses | 612 | 655 | 1,281 | 1,124 |
Total non-interest expenses | 3,788 | 3,520 | 7,787 | 6,783 |
Income before income taxes | 1,344 | 1,185 | 2,056 | 2,665 |
Income tax provision (benefit) | 565 | -3,216 | 875 | -3,178 |
Net income | 779 | 4,401 | 1,181 | 5,843 |
Other Comprehensive Income: | ' | ' | ' | ' |
Net change in unrealized gains (losses) on AFS investments, net of tax | 63 | -1,767 | 175 | -1,930 |
Comprehensive Income | $842 | $2,634 | $1,356 | $3,913 |
Basic earnings per share (in Dollars per share) | $0.08 | $0.51 | $0.13 | $0.68 |
Diluted earnings per share (in Dollars per share) | $0.08 | $0.49 | $0.12 | $0.65 |
Unaudited_Consolidated_Stateme1
Unaudited 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 | ||||||
Beginning Balance at Dec. 31, 2012 | $110 | $65,038 | ($10,899) | $2,436 | ($7,512) | $49,173 |
Beginning Balance (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) | -4,750 | ' | ' | ' | ' | ' |
Forfeiture of restricted stock | ' | -11 | ' | ' | ' | -11 |
Compensation expense associated with restricted stock awards, net | ' | 404 | ' | ' | ' | 404 |
Shares surrendered to pay taxes on stock based compensation | ' | ' | ' | ' | -138 | -138 |
Shares surrendered to pay taxes on stock based compensation (in Shares) | ' | ' | ' | ' | -23,270 | ' |
Common stock repurchased (in Shares) | ' | ' | ' | ' | -105 | ' |
Net income | ' | ' | 5,843 | ' | ' | 5,843 |
Other comprehensive loss/income | ' | ' | ' | -1,930 | ' | -1,930 |
Ending Balance at Jun. 30, 2013 | 111 | 65,430 | -5,056 | 506 | -7,650 | 53,341 |
Ending Balance (in Shares) at Jun. 30, 2013 | 11,099,310 | ' | ' | ' | -1,851,807 | ' |
Beginning Balance at Dec. 31, 2013 | 114 | 67,231 | -4,036 | 52 | -7,973 | 55,388 |
Beginning Balance (in Shares) at Dec. 31, 2013 | 11,378,710 | ' | ' | ' | -1,897,902 | ' |
Restricted stock issued | 2 | -2 | ' | ' | ' | ' |
Restricted stock issued (in Shares) | 228,000 | ' | ' | ' | ' | ' |
Exercise of stock options | 5 | 2,508 | ' | ' | ' | 2,513 |
Exercise of stock options (in Shares) | 502,600 | ' | ' | ' | ' | ' |
Compensation expense associated with restricted stock awards, net | ' | 421 | ' | ' | ' | 421 |
Shares surrendered to pay taxes on stock based compensation | ' | ' | ' | ' | -518 | -518 |
Shares surrendered to pay taxes on stock based compensation (in Shares) | ' | ' | ' | ' | -69,360 | ' |
Net income | ' | ' | 1,181 | ' | ' | 1,181 |
Other comprehensive loss/income | ' | ' | ' | 175 | ' | 175 |
Ending Balance at Jun. 30, 2014 | $121 | $70,158 | ($2,855) | $227 | ($8,491) | $59,160 |
Ending Balance (in Shares) at Jun. 30, 2014 | 12,109,310 | ' | ' | ' | -1,967,262 | ' |
Unaudited_Consolidated_Stateme2
Unaudited Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $1,181,000 | $5,843,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of premises and equipment | 244,000 | 253,000 |
Amortization of premiums on investment securities, net | 447,000 | 980,000 |
Provision for (reduction of) loan losses | 100,000 | -500,000 |
Deferred income tax expense (benefit) | 290,000 | -3,249,000 |
Amortization of deferred loan cost, net of fees | 4,000 | 1,000 |
Gain on sale of AFS investment securities | -786,000 | -535,000 |
Gain on sale of OREO | -47,000 | ' |
Non-cash stock compensation, net of forfeitures | 421,000 | 393,000 |
(Increase) decrease in accrued interest and other assets | -259,000 | 88,000 |
Decrease in accrued interest and other liabilities | -10,000 | -512,000 |
Net cash provided by operating activities | 1,585,000 | 2,762,000 |
Activities in AFS investment securities: | ' | ' |
Purchases | -24,865,000 | ' |
Maturities and principal reductions | 9,515,000 | 22,983,000 |
Proceeds from sale of securities | 44,199,000 | 10,840,000 |
Increase in loans, net | -29,138,000 | -44,574,000 |
Proceeds from sale of OREO | 137,000 | ' |
Purchase of premises and equipment | -189,000 | -83,000 |
Purchase of FRB stock and FHLB stock | -135,000 | -724,000 |
Net cash used in investing activities | -476,000 | -11,558,000 |
Cash flows from financing activities: | ' | ' |
Net increase (decrease) in deposits | 15,006,000 | -9,820,000 |
Net repayment of short-term borrowings | ' | -4,475,000 |
Repayment of other long-term borrowings | -2,500,000 | -2,500,000 |
Proceeds from exercise of stock options | 2,513,000 | 5,000,000 |
Shares surrendered to pay taxes on vesting of stock based compensation | -518,000 | -138,000 |
Net cash provided by (used in) financing activities | 14,501,000 | -11,933,000 |
Increase (decrease) in cash and cash equivalents | 15,610,000 | -20,729,000 |
Cash and cash equivalents, beginning of period | 44,688,000 | 50,555,000 |
Cash and cash equivalents, end of period | 60,298,000 | 29,826,000 |
Cash paid during the period for: | ' | ' |
Interest | 383,000 | 528,000 |
Income taxes | $405,000 | $79,000 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim period presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2013, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC, under the Securities and Exchange Act of 1934, (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of Bancshares and the Bank. All intercompany accounts and transactions have been eliminated. | |||||||||||||||||
The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2014. | |||||||||||||||||
The Company’s accounting and reporting policies conform to 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 unaudited 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 net realizable value 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. | |||||||||||||||||
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. | |||||||||||||||||
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 unaudited 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, the Company established a full valuation allowance against the deferred tax assets due to the uncertainty regarding its realizability. 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 unaudited Consolidated Statements of Operations and Comprehensive Income. This reversal occurred during the quarter ended June 30, 2013. In making this determination, management analyzed, among other things, our 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 June 30, 2014 and December 31, 2013, we had a net deferred tax asset of approximately $2.7 million and $3.1 million, respectively. Our net deferred tax asset primarily consists of deferred tax assets related to federal and state net operating loss carryforwards and the allowance for loan losses. | |||||||||||||||||
At June 30, 2014 and December 31, 2013, 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. | |||||||||||||||||
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 both the three and six months ended June 30, 2014, there were 350,073 of weighted average stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the three and six months ended June 30, 2013, there were 370,073 weighted average stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the quarter and six months ended June 30, 2014, there were none and 97,860, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the three and six months ended June 30, 2013, there were 94,363 and 47,442, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. | |||||||||||||||||
Three Months Ended June 30, | Six months Ended June 30, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 779 | $ | 4,401 | $ | 1,181 | $ | 5,843 | |||||||||
Average number of common shares outstanding | 9,448,548 | 8,619,056 | 9,370,900 | 8,596,282 | |||||||||||||
Effect of dilution of stock options | 3,351 | 114,211 | 27,653 | 70,835 | |||||||||||||
Effect of dilution of restricted stock | 277,605 | 269,076 | 274,513 | 278,873 | |||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,729,504 | 9,002,343 | 9,673,066 | 8,945,990 | |||||||||||||
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 Company’s 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”) and the 2013 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 January 2014, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (ASU 2014-04). The amendments of ASU are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. This ASU is effective for annual periods beginning after December 15, 2014 and interim periods beginning after December 15, 2015. The Company is currently evaluating the effect of ASU 2014-04 on its financial statements and disclosures, if any. | |||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations and improve related disclosures. This ASU also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance. ASU 2014-08 will be effective for annual financial statements with fiscal years beginning on or after December 31, 2014 and interim periods thereafter. The Company is currently evaluating the effects ASU 2014-08 will have on its financial statements and disclosures, if any. | |||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The amendments in ASU 2014-9 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. The Company is currently evaluating the effects of ASU 2014-04 on its financial statements and disclosures, if any. |
Note_2_Investments
Note 2 - Investments | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Investment [Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
-2 | Investments | ||||||||||||||||||||||||||||||||||||||||
The following is a summary of the investments categorized as Available for Sale at June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | 5,959 | $ | 5 | $ | (3 | ) | $ | 5,961 | ||||||||||||||||||||||||||||||||
Corporate Notes | 2,551 | 24 | — | 2,575 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 69,164 | 659 | (299 | ) | 69,524 | ||||||||||||||||||||||||||||||||||||
Total | $ | 77,674 | $ | 688 | $ | (302 | ) | $ | 78,060 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
The Company did not have any investment securities categorized as “Held to Maturity” or “Trading” at June 30, 2014 or December 31, 2013. At June 30, 2014 and December 31, 2013, 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 June 30, 2014 and December 31, 2013, the fair value of securities pledged to the State of California Treasurer’s Office to secure their deposits was $47.9 million and $45.4 million, respectively. Deposits from the State of California were $38.0 million at both June 30, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
The following table summarizes the fair value of AFS securities and the weighted average yield of investment securities by contractual maturity at June 30, 2014. 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 4.42 years at June 30, 2014. | |||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Available for Sale | 1 Year or | Weighted Average | After 1 Through 5 Years | Weighted Average | After 5 Through 10 Years | Weighted Average | After 10 | Weighted Average | Total | Weighted Average Yield | |||||||||||||||||||||||||||||||
Less | Yield | Yield | Yield | Years | Yield | ||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | — | — | % | $ | — | — | % | $ | 5,961 | 2.13 | % | $ | — | — | % | $ | 5,961 | 2.13 | % | |||||||||||||||||||||
Corporate Notes | 510 | 1.53 | 2,065 | 1.31 | — | — | — | — | 2,575 | 1.35 | |||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | — | — | — | — | 33,706 | 1.74 | 35,818 | 2.34 | 69,524 | 2.05 | |||||||||||||||||||||||||||||||
Total | $ | 510 | 1.53 | % | $ | 2,065 | 1.31 | % | $ | 39,667 | 1.8 | % | $ | 35,818 | 2.34 | % | $ | 78,060 | 2.03 | % | |||||||||||||||||||||
A total of 26 and 36 securities had unrealized losses at June 30, 2014 and December 31, 2013, 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 June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | (3 | ) | $ | 1,928 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | (34 | ) | 11,013 | (265 | ) | 23,189 | |||||||||||||||||||||||||||||||||||
Total | $ | (37 | ) | $ | 12,941 | $ | (265 | ) | $ | 23,189 | |||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (904 | ) | $ | 51,847 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
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 June 30, 2014 and December 31, 2013 that the unrealized losses on its securities portfolio on which impairments had not been recognized are temporary. | |||||||||||||||||||||||||||||||||||||||||
During the three and six months ended June 30, 2014, the Company sold available for sale investment securities with an amortized cost of $28.6 million and $43.4 million, respectively. These securities consisted entirely of residential mortgage-backed securities and resulted in realized gains of $533,000 and $786,000, respectively, which were recorded in non-interest income within the unaudited Consolidated Statement of Operations and Comprehensive Income. During the three and six months ended June 30, 2013 the Company sold a total of $10.8 million of available for sale securities resulting in a realized gain of $535,000. |
Note_3_Loans_Allowance_for_Loa
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||||||||||||||||||||
-3 | Loans, Allowance for Loan Losses, and Non-Performing Assets | |||||||||||||||||||||||||
Loans | ||||||||||||||||||||||||||
The categories of loans listed below are grouped in accordance with the primary purpose of the loans, but in the aggregate 87.7% and 86.9% of all loans are secured by real estate at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||||||||||||
(dollars in thousands) | Outstanding | of Total | Outstanding | of Total | ||||||||||||||||||||||
Commercial (1) | $ | 78,455 | 19 | % | $ | 76,397 | 19.9 | % | ||||||||||||||||||
Commercial real estate | 178,576 | 43.3 | % | 167,419 | 43.7 | % | ||||||||||||||||||||
Residential | 102,149 | 24.8 | % | 82,795 | 21.6 | % | ||||||||||||||||||||
Land and construction | 29,423 | 7.1 | % | 30,102 | 7.8 | % | ||||||||||||||||||||
Consumer and other (2) | 23,989 | 5.8 | % | 26,787 | 7 | % | ||||||||||||||||||||
Loans, gross | 412,592 | 100 | % | 383,500 | 100 | % | ||||||||||||||||||||
Net deferred costs | 121 | 48 | ||||||||||||||||||||||||
Less — allowance for loan losses | (7,367 | ) | (7,236 | ) | ||||||||||||||||||||||
Loans, net | $ | 405,346 | $ | 376,312 | ||||||||||||||||||||||
-1 | Unsecured commercial loan balances were $11.9 million and $13.2 million at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
-2 | Unsecured consumer and other loan balances were $2.2 million and $2.3 million at June 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
As of June 30, 2014 and December 31, 2013, 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 and for the three and six months ended June 30, 2014 and 2013: | ||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | Total | ||||||||||||||||||||
Real Estate | Construction | and Other | ||||||||||||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,579 | $ | 3,660 | $ | 778 | $ | 811 | $ | 424 | $ | 7,252 | ||||||||||||||
Provision for loan losses | 10 | 140 | 110 | (120 | ) | (40 | ) | 100 | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 15 | — | — | — | — | 15 | ||||||||||||||||||||
Ending balance | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
Six Months Ended June 30, 2014: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | ||||||||||||||
Provision for loan losses | (10 | ) | 140 | 130 | (120 | ) | (40 | ) | 100 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 31 | — | — | — | — | 31 | ||||||||||||||||||||
Ending balance | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
As of June 30, 2014: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 35 | $ | — | $ | — | $ | — | $ | — | $ | 35 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 1,569 | 3,800 | 888 | 691 | 384 | 7,332 | ||||||||||||||||||||
Total | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 899 | $ | — | $ | — | $ | — | $ | 29 | $ | 928 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 77,556 | 178,576 | 102,149 | 29,423 | 23,960 | 411,664 | ||||||||||||||||||||
Total | $ | 78,455 | $ | 178,576 | $ | 102,149 | $ | 29,423 | $ | 23,989 | $ | 412,592 | ||||||||||||||
Three Months Ended June 30, 2013: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,631 | $ | 3,200 | $ | 698 | $ | 741 | $ | 349 | $ | 6,619 | ||||||||||||||
Provision for loan losses | (100 | ) | (25 | ) | 50 | 25 | 50 | — | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 1 | — | — | — | — | 1 | ||||||||||||||||||||
Ending balance | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
Six Months Ended June 30, 2013: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | ||||||||||||||
Provision for (reduction of) loan losses | (1,800 | ) | 725 | 240 | 355 | (20 | ) | (500 | ) | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 1,055 | — | — | — | 50 | 1,105 | ||||||||||||||||||||
Ending balance | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
As of June 30, 2013: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | 50 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 1,482 | 3,175 | 748 | 766 | 399 | 6,570 | ||||||||||||||||||||
Total | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,023 | $ | — | $ | — | $ | — | $ | 345 | $ | 1,368 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 62,614 | 126,309 | 70,006 | 30,343 | 21,657 | 310,929 | ||||||||||||||||||||
Total | $ | 63,637 | $ | 126,309 | $ | 70,006 | $ | 30,343 | $ | 22,002 | $ | 312,297 | ||||||||||||||
The following is a summary of the allowance for loan losses and recorded investment in loans as of December 31, 2013 | ||||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and Construction | Consumer | Total | ||||||||||||||||||||
Real Estate | and Other | |||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
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 | ||||||||||||||
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 unaudited 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 June 30, 2014 and December 31, 2013, the allowance for unfunded lending commitments was $270,000, and is primarily related to $125.6 million and $104.3 million in commitments to extend credit to customers and $2.4 million and $2.6 million in standby/commercial letters of credit at June 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||
Non-Performing Assets | ||||||||||||||||||||||||||
The following table presents an aging analysis of the recorded investment of past due loans as of June 30, 2014 and December 31, 2013. 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. There were no additions to non-performing loans during the six months ended June 30, 2014 and 2013. Non-performing loans represented 0.18% and 0.19% of total loans at June 30, 2014 and December 31, 2013, respectively. There were no accruing loans past due 90 days or more at June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||
(in thousands) | 30-59 | 60-89 | > 90 Days | Total | Current | Total | ||||||||||||||||||||
Days Past | Days Past | Past Due | Past Due | |||||||||||||||||||||||
Due | Due | |||||||||||||||||||||||||
As of June 30, 2014: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 572 | $ | 572 | $ | 77,883 | $ | 78,455 | ||||||||||||||
Commercial real estate | — | — | — | — | 178,576 | 178,576 | ||||||||||||||||||||
Residential | — | — | — | — | 102,149 | 102,149 | ||||||||||||||||||||
Land and construction | — | — | — | — | 29,423 | 29,423 | ||||||||||||||||||||
Consumer and other | — | — | 29 | 29 | 23,960 | 23,989 | ||||||||||||||||||||
Totals | $ | — | $ | — | $ | 601 | $ | 601 | $ | 411,991 | $ | 412,592 | ||||||||||||||
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 | ||||||||||||||
The following table sets forth non-accrual loans and other real estate owned at June 30, 2014 and December 31, 2013: | ||||||||||||||||||||||||||
(dollars in thousands) | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
Non-accrual loans: | ||||||||||||||||||||||||||
Commercial | $ | 702 | $ | 706 | ||||||||||||||||||||||
Consumer and other | 29 | 29 | ||||||||||||||||||||||||
Total non-accrual loans | 731 | 735 | ||||||||||||||||||||||||
OREO | — | 90 | ||||||||||||||||||||||||
Total non-performing assets | $ | 731 | $ | 825 | ||||||||||||||||||||||
Non-performing assets to gross loans and OREO | 0.18 | % | 0.22 | % | ||||||||||||||||||||||
Non-performing assets to total assets | 0.13 | % | 0.15 | % | ||||||||||||||||||||||
Credit Quality Indicators | ||||||||||||||||||||||||||
The following table represents the credit exposure by internally assigned grades at June 30, 2014 and December 31, 2013. 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 Construction | Consumer | |||||||||||||||||||||
Real Estate | and Other | |||||||||||||||||||||||||
As of June 30, 2014: | ||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
Pass | $ | 76,782 | $ | 178,006 | $ | 102,149 | $ | 29,423 | $ | 23,911 | ||||||||||||||||
Special Mention | 152 | — | — | — | — | |||||||||||||||||||||
Substandard | 1,521 | 570 | — | — | 78 | |||||||||||||||||||||
Total | $ | 78,455 | $ | 178,576 | $ | 102,149 | $ | 29,423 | $ | 23,989 | ||||||||||||||||
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 | ||||||||||||||||
There were no loans assigned to the Doubtful or Loss grade as of June 30, 2014 and December 31, 2013. | ||||||||||||||||||||||||||
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 six months ended June 30, 2014: | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | 769 | $ | 1,045 | $ | — | $ | 783 | ||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
Residential | — | — | — | — | ||||||||||||||||||||||
Land and construction | — | — | — | — | ||||||||||||||||||||||
Consumer and other | 29 | 29 | — | 29 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | 130 | $ | 142 | $ | 35 | $ | 134 | ||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
Residential | — | — | — | — | ||||||||||||||||||||||
Land and construction | — | — | — | — | ||||||||||||||||||||||
Consumer and other | — | — | — | — | ||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | 899 | $ | 1,187 | $ | 35 | $ | 917 | ||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Consumer and other | $ | 29 | $ | 29 | $ | — | $ | 29 | ||||||||||||||||||
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 | ||||||||||||||||||
During the three and six months ended June 30, 2014, the average balance of impaired loans was $939,000 and $946,000, respectively. As of June 30, 2014 and December 31, 2013, there were $731,000 and $735,000, respectively, of impaired loans on non-accrual status. During the three and six months ended June 30, 2014, interest income recognized on impaired loans subsequent to their classification as impaired was $3,000 and $5,000, 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 | ||||||||||||||||||||||||||
There were no troubled debt restructurings during the three and six months ended June 30, 2014. The impact on the Company’s determination of the allowance for loan losses related to troubled debt restructurings was not material and resulted in no charge-offs during the three and six months ended June 30, 2014. During the three and six months ended June 30, 2014, there were no defaults recorded on any loans that were modified as troubled debt restructurings during the preceding twelve months. During the three months ended June 30, 2013, there were no defaults recorded on any loans that were modified as troubled debt restructurings. During the six months ended June 30, 2013, there was one commercial loan with a recorded investment of $572,000 at June 30, 2013, that defaulted within twelve months of its modification date. 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 unaudited 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 June 30, 2014 and December 31, 2013 are presented in the following table. The Company obtains dealer quotations to value its interest rate derivative contracts. | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | Notional | Estimated | Notional | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||
Commercial loan interest rate swaps | $ | 2,676 | $ | (21 | ) | $ | 2,706 | $ | 15 | ||||||||
Commercial loan interest rate swaps | $ | (2,676 | ) | $ | 21 | $ | (2,706 | ) | $ | (15 | ) | ||||||
The weighted-average rates paid and received for interest rate swaps outstanding at June 30, 2014 and December 31, 2013 were as follow: | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||
Interest Rate | Interest | Interest Rate | Interest | ||||||||||||||
Paid | Rate | Paid | Rate | ||||||||||||||
Received | Received | ||||||||||||||||
Non-hedging interest rate swaps | 3.35 | % | 4.85 | % | 3.37 | % | 4.85 | % | |||||||||
Non-hedging interest rate swaps | 4.85 | % | 3.35 | % | 4.85 | % | 3.37 | % | |||||||||
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 unaudited 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 | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||||||||
-5 | Comprehensive Income | ||||||||||||||||
Comprehensive income, which includes net income and the net change in unrealized gains on investment securities available for sale, is presented below: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 779 | $ | 4,401 | $ | 1,181 | $ | 5,843 | |||||||||
Other comprehensive income: | |||||||||||||||||
Increase (decrease) in net unrealized gains on investment securities available for sale, net of tax (expense) benefit of ($263) and ($445) for the three and six months ended June 30, 2014, respectively, and $1,016 and $1,129 for the three and six months ended June 30, 2013, respectively | 377 | (1,452 | ) | 638 | (1,615 | ) | |||||||||||
Reclassification for net gains included in earnings, net of tax expense of $219 and $323 for the three and six months ended June 30, 2014, respectively, and $220 for the three and six months ended June 30, 2013 | (314 | ) | (315 | ) | (463 | ) | (315 | ) | |||||||||
Comprehensive income | $ | 842 | $ | 2,634 | $ | 1,356 | $ | 3,913 | |||||||||
Reclassification adjustments of $533,000 and $786,000 for the three and six months ended June 30, 2014, respectively, and $535,000 for both the three and six months ended June 30, 2013, are included in non-interest income within the unaudited Consolidated Statements of Operations and Comprehensive Income. Income tax expense associated with these reclassification adjustments for the three and six months ended June 30, 2014 was $219,000 and $323,000, respectively, and $220,000 for the three and six months ended June 30, 2013, and is included in income tax provision within the unaudited Consolidated Statements of Operations and Comprehensive Income. | |||||||||||||||||
Activity of investment securities available for sale included in accumulated other comprehensive income, net of tax, is as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 164 | $ | 2,273 | $ | 52 | $ | 2,436 | |||||||||
Other comprehensive income (loss) before reclassifications | 377 | (1,452 | ) | 638 | (1,615 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (314 | ) | (315 | ) | (463 | ) | (315 | ) | |||||||||
Net other comprehensive income (loss) | 63 | (1,767 | ) | 175 | (1,930 | ) | |||||||||||
Ending balance | $ | 227 | $ | 506 | $ | 227 | $ | 506 | |||||||||
Note_6_Premises_and_Equipment
Note 6 - Premises and Equipment | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
-6 | Premises and Equipment | ||||||||
Premises and equipment are stated at cost less accumulated depreciation and amortization. Premises and equipment at June 30, 2014 and December 31, 2013 are comprised of the following: | |||||||||
(in thousands) | 30-Jun-14 | 31-Dec-13 | |||||||
Leasehold improvements | $ | 1,353 | $ | 1,316 | |||||
Furniture & equipment | 2,614 | 2,515 | |||||||
Software | 743 | 767 | |||||||
Total | 4,710 | 4,598 | |||||||
Accumulated depreciation | (3,480 | ) | (3,313 | ) | |||||
Premises and equipment, net | $ | 1,230 | $ | 1,285 | |||||
Depreciation and amortization included in occupancy expense was $121,000 and $244,000 for the three and six months ended June 30, 2014, respectively, and $121,000 and $253,000 for the three and six months ended June 30, 2013, respectively. |
Note_7_Deposits
Note 7 - Deposits | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Deposit Liabilities Disclosures [Text Block] | ' | ||||||||||||||||
-7 | Deposits | ||||||||||||||||
The following table reflects the summary of deposit categories by dollar and percentage at June 30, 2014 and December 31, 2013: | |||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(dollars in thousands) | Amount | % of Total | Amount | % of Total | |||||||||||||
Non-interest bearing demand deposits | $ | 261,987 | 56 | % | $ | 236,869 | 52.3 | % | |||||||||
Interest bearing checking | 23,594 | 5.1 | % | 21,005 | 4.6 | % | |||||||||||
Money market deposits and savings | 140,830 | 30.1 | % | 151,879 | 33.6 | % | |||||||||||
Certificates of deposit | 41,361 | 8.8 | % | 43,013 | 9.5 | % | |||||||||||
Total | $ | 467,772 | 100 | % | $ | 452,766 | 100 | % | |||||||||
At June 30, 2014, the Company had two certificates of deposit with the State of California Treasurer’s Office for a total of $38.0 million, which represented 8.1% of total deposits. The deposits outstanding at June 30, 2014 are scheduled to mature in the third 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, 2013, the Company had four certificates of deposit with the State of California Treasurer’s Office for a total of $38.0 million, which represented 8.4% of total deposits. The Company was required to pledge $41.8 million of agency mortgage-backed securities at both June 30, 2014 and December 31, 2013, in connection with these certificates of deposit. | |||||||||||||||||
The aggregate amount of certificates of deposit of $100,000 or greater at June 30, 2014 and December 31, 2013 was $40.6 million and $42.1 million, respectively. At June 30, 2014, 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: $40.4 million maturing in six months or less, $147,000 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 June 30, 2014. | |||||||||||||||||
(in thousands) | Six months | Greater than six months through | Greater than | ||||||||||||||
and less | one year | one year | |||||||||||||||
0.00% to 0.99% | $ | 40,853 | $ | 370 | $ | 98 | |||||||||||
1.00% to 1.99% | — | — | 40 | ||||||||||||||
Total | $ | 40,853 | $ | 370 | $ | 138 | |||||||||||
Note_8_Other_Borrowings
Note 8 - Other Borrowings | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ||||||||||||
Other Liabilities Disclosure [Text Block] | ' | ||||||||||||
-8 | Other Borrowings | ||||||||||||
At June 30, 2014 and December 31, 2013, the Company had a borrowing/credit facility secured by a blanket lien on eligible loans at the FHLB of $186.1 million and $169.9 million, respectively. The Company had $25.0 million and $27.5 million of long-term borrowings outstanding under this borrowing/credit facility with the FHLB at June 30, 2014 and December 31, 2013, respectively. The Company had no overnight borrowings outstanding under this borrowing/credit facility at June 30, 2014 and December 31, 2013. | |||||||||||||
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 June 30, 2014 and December 31, 2013 (dollars in thousands): | |||||||||||||
Maturity Date | Interest Rate | 30-Jun-14 | 31-Dec-13 | ||||||||||
23-May-14 | 1.14% | — | 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 | 5,000 | ||||||||||
Total | $ | 25,000 | $ | 27,500 | |||||||||
At June 30, 2014 and 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. As of June 30, 2014 and December 31, 2013, the Company had pledged $2.6 million and $3.1 million, respectively, of corporate notes related to these lines of credit. |
Note_9_Commitments_and_Conting
Note 9 - Commitments and Contingencies | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
-9 | 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 $125.6 million and $104.3 million in commitments to extend credit to customers and $2.4 million and $2.6 million in standby/commercial letters of credit at June 30, 2014 and December 31, 2013, 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 $62,000 and $73,000 as of June 30, 2014 and December 31, 2013, respectively. | |||||
Lease Commitments | |||||
The Company leases office premises under three operating leases that will expire in December 2018, May 2019 and June 2024, respectively. Rental expense, which is included in occupancy expense and is reduced for any sublease income earned during the period, was $220,000 and $417,000 for the three and six months ended June 30, 2014, respectively, and $190,000 and $358,000 for the three and six months ended June 30, 2013, respectively. On April 1, 2013, the Company ended its sublease agreement. | |||||
The projected minimum rental payments under the term of the leases at June 30, 2014 are as follows (in thousands): | |||||
Years ending December 31, | |||||
2014 (July – December) | $ | 470 | |||
2015 | 956 | ||||
2016 | 985 | ||||
2017 | 1,015 | ||||
2018 | 1,047 | ||||
Thereafter | 4,433 | ||||
Total | $ | 8,906 | |||
Litigation | |||||
The Company from time to time is party to lawsuits, which arise out of the normal course of business. At June 30, 2014 and December 31, 2013, the Company did not have any litigation that management believes will have a material impact on the Consolidated Balance Sheets or unaudited 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 (July-December) | $ | 458 | |||
2015 | 554 | ||||
2016 | 359 | ||||
2017 | 202 | ||||
2018 | 129 | ||||
Thereafter | 227 | ||||
Total | $ | 1,929 | |||
Note_10_Fair_Value_Measurement
Note 10 - Fair Value Measurements | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
Note 10 - Fair Value Measurements [Line Items] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
-10 | 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 June 30, 2014 and December 31, 2013, 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 Active Markets for Identical Assets | Other Observable Inputs (Level 2) | Significant Unobservable | |||||||||||||||||
(Level 1) | Inputs (Level 3) | ||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
U.S. Government Agencies | $ | 5,961 | $ | — | $ | 5,961 | $ | — | |||||||||||||
Corporate Notes | 2,575 | — | 2,575 | — | |||||||||||||||||
Residential Mortgage-Backed Securities | 69,524 | — | 69,524 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 21 | — | 21 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 21 | — | 21 | — | |||||||||||||||||
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 | — | |||||||||||||||||
AFS securities— As of June 30, 2014 and December 31, 2013, the Level 2 fair value of the Company’s residential mortgage-backed securities was $69.5 million and $103.2 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 June 30, 2014 and December 31, 2013, the weighted average yield and weighed average life of these securities were 2.05% and 2.12%, respectively, and 4.42 years and 3.85 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 or 2 measurements during the three and six months ended June 30, 2014 and 2013. | |||||||||||||||||||||
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 Active Markets for Identical Assets (Level 1) | Other Observable Inputs | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
(Level 2) | |||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 667 | $ | — | $ | — | $ | 667 | |||||||||||||
Total | $ | 667 | $ | — | $ | — | $ | 667 | |||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 672 | $ | — | $ | — | $ | 672 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 762 | $ | — | $ | — | $ | 762 | |||||||||||||
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. | |||||||||||||||||||||
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 10 - Fair Value Measurements [Line Items] | ' | ||||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||||||
-11 | 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 June 30, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
Carrying | Fair Value Measurements Using: | ||||||||||||||||||||
(dollars in thousands) | Amount | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
As of June 30, 2014 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 60,298 | $ | 60,298 | $ | — | $ | — | $ | 60,298 | |||||||||||
Investment securities | 78,060 | — | 78,060 | — | 78,060 | ||||||||||||||||
FRB stock | 1,600 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 3,167 | — | — | — | N/A | ||||||||||||||||
Loans, net | 405,346 | — | — | 404,213 | 404,213 | ||||||||||||||||
Non-hedging interest rate swaps | 21 | — | 21 | — | 21 | ||||||||||||||||
Accrued interest receivable | 1,209 | 1,209 | — | — | 1,209 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 261,987 | $ | 261,987 | $ | — | $ | — | $ | 261,987 | |||||||||||
Interest bearing deposits | 205,785 | 164,424 | 41,361 | — | 205,785 | ||||||||||||||||
Other borrowings | 25,000 | — | 25,102 | — | 25,102 | ||||||||||||||||
Non-hedging interest rate swaps | 21 | — | 21 | — | 21 | ||||||||||||||||
Accrued interest payable | 24 | 24 | — | — | 24 | ||||||||||||||||
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 | ||||||||||||||||
Note_12_NonInterest_Income
Note 12 - Non-Interest Income | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Other Income and Other Expense Disclosure [Text Block] | ' | ||||||||||||||||
-12 | Non-Interest Income | ||||||||||||||||
The following table summarizes the information regarding non-interest income for the three months and six ended June 30, 2014 and 2013, respectively: | |||||||||||||||||
Three Months Ended June 30, | Six months Ended June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Loan arrangement fees | $ | — | $ | 308 | $ | — | $ | 544 | |||||||||
Gain on sale of AFS investment securities | 533 | 535 | 786 | 535 | |||||||||||||
Service charges and other operating income | 190 | (6 | ) | 302 | 117 | ||||||||||||
Total non-interest income | $ | 723 | $ | 837 | $ | 1,088 | $ | 1,196 | |||||||||
Note_13_StockBased_Compensatio
Note 13 - Stock-Based Compensation | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
-13 | 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. The Plan was established to consolidate and replace all other previous stock plans and the remaining shares available for grant under these previous plans were cancelled. | |||||||||||||||||
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. | |||||||||||||||||
Non-cash stock compensation expense recognized in the unaudited Consolidated Statements of Operations and Comprehensive Income related to the restricted stock awards, net of estimated forfeitures, was $235,000 and $421,000 for the three and six months ended June 30, 2014, respectively, and $205,000 and $393,000 for the three and six months ended June 30, 2013, respectively. The fair value of restricted stock awards that vested was $388,000 and $400,000 for the three and six months ended June 30, 2014, respectively, and $511,000 and $534,000 for the three and six months ended June 30, 2013, respectively. | |||||||||||||||||
The following table reflects a combined summary of the activities related to restricted stock awards outstanding for the six months ended June 30, 2014 and 2013, respectively. | |||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted Shares | Number | Weighted Avg | Number | Weighted Avg | |||||||||||||
of | Fair Value at | of | Fair Value at | ||||||||||||||
Shares | Grant Date | Shares | Grant Date | ||||||||||||||
Beginning balance | 529,529 | $ | 4.62 | 563,516 | $ | 4.23 | |||||||||||
Granted | 228,000 | 7.63 | 138,500 | 5.82 | |||||||||||||
Vested | (93,750 | ) | 4.01 | (124,047 | ) | 4.31 | |||||||||||
Forfeited and surrendered | — | — | (4,750 | ) | 4.03 | ||||||||||||
Ending balance | 663,779 | $ | 5.74 | 573,219 | $ | 4.6 | |||||||||||
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 six months ended June 30, 2014 and 2013, there were 72,000 and none, respectively, options exercised under the 2004 Founder Stock Option Plan at a weighted average exercise price of $5.00 per share. During the six months ended June 30, 2014, the remaining 19,800 of unexercised options under the plan expired and were automatically cancelled. The weighted average exercise price of the cancelled options was $5.00 per share. There were no options cancelled under the plan for the six months ended June 30, 2013. As of June 30, 2014, there was no remaining options outstanding related to the plan. The remaining contractual life of the 2004 Founder Stock Options outstanding was 0.65 years at June 30, 2013. All options under the 2004 Founder Stock Option Plan were exercisable at June 30 2013. At June 30, 2013, the weighted average exercise price of the 133,700 shares outstanding under the 2004 Founder Stock Option Plan was $5.00. | |||||||||||||||||
There have been no options granted, or cancelled under the Director and Employee Stock Option Plan for the six months ended June 30, 2014 or 2013. There have been 430,600 and none options exercised during the six months ended June 30, 2014 and 2013, respectively, at a weighted average price of $5.00 per share. The remaining contractual life of the Director and Employee Stock Options outstanding was 1.03 years and 1.14 years at June 30, 2014 and 2013, respectively. All options under the Directors and Employee Stock Option Plan were exercisable at June 30, 2014 and 2013. At June 30, 2014 and 2013, the weighted average exercise price of the 370,073 and 1,045,673 shares, respectively, outstanding under the Director and Employee Stock Option Plan was $7.97 and $6.05, respectively. | |||||||||||||||||
The following tables detail the amount of shares authorized and available under all stock plans as of June 30, 2014: | |||||||||||||||||
Shares Reserved | Less Shares Previously | Less Shares | Total Shares | ||||||||||||||
Exercised/Vested | Outstanding | Available for | |||||||||||||||
Future Issuance | |||||||||||||||||
2004 Founder Stock Option Plan | 150,000 | 121,900 | — | — | |||||||||||||
Director and Employee Stock Option Plan | 1,434,000 | 892,524 | 370,073 | — | |||||||||||||
2005 Equity Incentive Plan | 1,200,000 | 751,494 | 435,779 | — | |||||||||||||
2013 Equity Incentive Plan | 750,000 | — | 228,000 | 522,000 | |||||||||||||
Note_14_Regulatory_Matters
Note 14 - Regulatory Matters | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Regulatory Capital Requirements under Banking Regulations [Text Block] | ' | ||||||||||||||||||||||||||||||||
-14 | 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 June 30, 2014 and December 31, 2013, 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 generally be categorized as a “well-capitalized” financial institution, 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 categorization. | |||||||||||||||||||||||||||||||||
The Company’s and the Bank’s capital ratios as of June 30, 2014 and December 31, 2013 are presented in the table below: | |||||||||||||||||||||||||||||||||
Company | Bank | For Capital | For the Bank to be | ||||||||||||||||||||||||||||||
Adequacy Purposes | “Well-Capitalized” Under | ||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Measures | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
June 30, 2014: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 63,479 | 14.38 | % | $ | 59,469 | 13.47 | % | $ | 35,323 | 8 | % | $ | 44,153 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 57,934 | 13.12 | % | $ | 53,923 | 12.21 | % | $ | 17,661 | 4 | % | $ | 26,492 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 57,934 | 10.58 | % | $ | 53,923 | 9.84 | % | $ | 21,907 | 4 | % | $ | 27,402 | 5 | % | |||||||||||||||||
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 | % | |||||||||||||||||
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%. The new rules also require a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets over each of the required capital ratios that will be phased in from 2016 to 2019 and must be met to avoid limitations the ability of the Bank to pay dividends, repurchase shares or pay discretionary bonuses. 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, excluding trust preferred securities, mortgage servicing rights and certain deferred tax assets, and including unrealized gains and losses on available for sale debt and equity securities. 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 stockholders 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 and other anti-money laundering regulations. Failure to comply with the Consent Order may result in additional regulatory action, including restrictions on our operations, civil money penalties against the Bank and its officers and directors or enforcement of the Consent Order through court proceedings. | |||||||||||||||||||||||||||||||||
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 and other anti-money laundering regulations. Failure to comply with the Consent Order may result in additional regulatory action, including restrictions on our operations, civil money penalties against the Bank and its officers and directors or enforcement of the Consent Order through court proceedings. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
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 accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all footnotes as would be necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows in conformity with accounting principles generally accepted in the United States of America (“GAAP”). However, these interim unaudited consolidated financial statements reflect all adjustments (consisting solely of normal recurring adjustments and accruals) which, in the opinion of management, are necessary for a fair presentation of financial position, results of operations and comprehensive income, changes in stockholders’ equity and cash flows for the interim period presented. These unaudited consolidated financial statements have been prepared on a basis consistent with, and should be read in conjunction with, the audited consolidated financial statements as of and for the year ended December 31, 2013, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC, under the Securities and Exchange Act of 1934, (the “Exchange Act”). The unaudited consolidated financial statements include the accounts of Bancshares and the Bank. All intercompany accounts and transactions have been eliminated. | |||||||||||||||||
The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results of operations that may be expected for any other interim period or for the year ending December 31, 2014. | |||||||||||||||||
The Company’s accounting and reporting policies conform to 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 unaudited 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 net realizable value 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. | |||||||||||||||||
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. | |||||||||||||||||
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 unaudited 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, the Company established a full valuation allowance against the deferred tax assets due to the uncertainty regarding its realizability. 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 unaudited Consolidated Statements of Operations and Comprehensive Income. This reversal occurred during the quarter ended June 30, 2013. In making this determination, management analyzed, among other things, our 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 June 30, 2014 and December 31, 2013, we had a net deferred tax asset of approximately $2.7 million and $3.1 million, respectively. Our net deferred tax asset primarily consists of deferred tax assets related to federal and state net operating loss carryforwards and the allowance for loan losses. | |||||||||||||||||
At June 30, 2014 and December 31, 2013, 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. | |||||||||||||||||
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 both the three and six months ended June 30, 2014, there were 350,073 of weighted average stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the three and six months ended June 30, 2013, there were 370,073 weighted average stock options that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the quarter and six months ended June 30, 2014, there were none and 97,860, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. For the three and six months ended June 30, 2013, there were 94,363 and 47,442, respectively, of weighted average restricted shares that were excluded from the diluted earnings per share calculation due to their antidilutive impact. | |||||||||||||||||
Three Months Ended June 30, | Six months Ended June 30, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 779 | $ | 4,401 | $ | 1,181 | $ | 5,843 | |||||||||
Average number of common shares outstanding | 9,448,548 | 8,619,056 | 9,370,900 | 8,596,282 | |||||||||||||
Effect of dilution of stock options | 3,351 | 114,211 | 27,653 | 70,835 | |||||||||||||
Effect of dilution of restricted stock | 277,605 | 269,076 | 274,513 | 278,873 | |||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,729,504 | 9,002,343 | 9,673,066 | 8,945,990 | |||||||||||||
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 Company’s 2005 Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”) and the 2013 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 January 2014, the Financial Accounting Standard Board (FASB) issued Accounting Standard Update (ASU) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40) – Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (ASU 2014-04). The amendments of ASU are intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. This ASU is effective for annual periods beginning after December 15, 2014 and interim periods beginning after December 15, 2015. The Company is currently evaluating the effect of ASU 2014-04 on its financial statements and disclosures, if any. | |||||||||||||||||
In April 2014, the FASB issued ASU No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) – Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (ASU 2014-08). The amendments in ASU 2014-08 change the criteria for reporting discontinued operations and improve related disclosures. This ASU also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance. ASU 2014-08 will be effective for annual financial statements with fiscal years beginning on or after December 31, 2014 and interim periods thereafter. The Company is currently evaluating the effects ASU 2014-08 will have on its financial statements and disclosures, if any. | |||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). This update to the ASC is the culmination of efforts by the FASB and the International Accounting Standards Board (IASB) to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (IFRS). ASU 2014-09 supersedes Topic 605 – Revenue Recognition and most industry-specific guidance. The core principal of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance in ASU 2014-09 describes a 5-step process entities can apply to achieve the core principle of revenue recognition and requires disclosures sufficient to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers and the significant judgments used in determining that information. The amendments in ASU 2014-9 are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not allowed. The Company is currently evaluating the effects of ASU 2014-04 on its financial statements and disclosures, if any. |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended June 30, | Six months Ended June 30, | ||||||||||||||||
(dollars in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 779 | $ | 4,401 | $ | 1,181 | $ | 5,843 | |||||||||
Average number of common shares outstanding | 9,448,548 | 8,619,056 | 9,370,900 | 8,596,282 | |||||||||||||
Effect of dilution of stock options | 3,351 | 114,211 | 27,653 | 70,835 | |||||||||||||
Effect of dilution of restricted stock | 277,605 | 269,076 | 274,513 | 278,873 | |||||||||||||
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,729,504 | 9,002,343 | 9,673,066 | 8,945,990 |
Note_2_Investments_Tables
Note 2 - Investments (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||||||||||
Investments Schedule [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||||||
(in thousands) | Cost | Gains | Losses | Value | |||||||||||||||||||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
Investments — Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | 5,959 | $ | 5 | $ | (3 | ) | $ | 5,961 | ||||||||||||||||||||||||||||||||
Corporate Notes | 2,551 | 24 | — | 2,575 | |||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | 69,164 | 659 | (299 | ) | 69,524 | ||||||||||||||||||||||||||||||||||||
Total | $ | 77,674 | $ | 688 | $ | (302 | ) | $ | 78,060 | ||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||||||||
Available for Sale | 1 Year or | Weighted Average | After 1 Through 5 Years | Weighted Average | After 5 Through 10 Years | Weighted Average | After 10 | Weighted Average | Total | Weighted Average Yield | |||||||||||||||||||||||||||||||
Less | Yield | Yield | Yield | Years | Yield | ||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | — | — | % | $ | — | — | % | $ | 5,961 | 2.13 | % | $ | — | — | % | $ | 5,961 | 2.13 | % | |||||||||||||||||||||
Corporate Notes | 510 | 1.53 | 2,065 | 1.31 | — | — | — | — | 2,575 | 1.35 | |||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | — | — | — | — | 33,706 | 1.74 | 35,818 | 2.34 | 69,524 | 2.05 | |||||||||||||||||||||||||||||||
Total | $ | 510 | 1.53 | % | $ | 2,065 | 1.31 | % | $ | 39,667 | 1.8 | % | $ | 35,818 | 2.34 | % | $ | 78,060 | 2.03 | % | |||||||||||||||||||||
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 June 30, 2014: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
U.S. Government Agencies | $ | (3 | ) | $ | 1,928 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | (34 | ) | 11,013 | (265 | ) | 23,189 | |||||||||||||||||||||||||||||||||||
Total | $ | (37 | ) | $ | 12,941 | $ | (265 | ) | $ | 23,189 | |||||||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||||||||||||||||||||||
Residential Mortgage-Backed Securities | $ | (904 | ) | $ | 51,847 | $ | — | $ | — |
Note_3_Loans_Allowance_for_Loa1
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||||||
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] | ' | |||||||||||||||||||||||||
30-Jun-14 | 31-Dec-13 | |||||||||||||||||||||||||
Amount | Percent | Amount | Percent | |||||||||||||||||||||||
(dollars in thousands) | Outstanding | of Total | Outstanding | of Total | ||||||||||||||||||||||
Commercial (1) | $ | 78,455 | 19 | % | $ | 76,397 | 19.9 | % | ||||||||||||||||||
Commercial real estate | 178,576 | 43.3 | % | 167,419 | 43.7 | % | ||||||||||||||||||||
Residential | 102,149 | 24.8 | % | 82,795 | 21.6 | % | ||||||||||||||||||||
Land and construction | 29,423 | 7.1 | % | 30,102 | 7.8 | % | ||||||||||||||||||||
Consumer and other (2) | 23,989 | 5.8 | % | 26,787 | 7 | % | ||||||||||||||||||||
Loans, gross | 412,592 | 100 | % | 383,500 | 100 | % | ||||||||||||||||||||
Net deferred costs | 121 | 48 | ||||||||||||||||||||||||
Less — allowance for loan losses | (7,367 | ) | (7,236 | ) | ||||||||||||||||||||||
Loans, net | $ | 405,346 | $ | 376,312 | ||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and | Consumer | Total | ||||||||||||||||||||
Real Estate | Construction | and Other | ||||||||||||||||||||||||
Three Months Ended June 30, 2014: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,579 | $ | 3,660 | $ | 778 | $ | 811 | $ | 424 | $ | 7,252 | ||||||||||||||
Provision for loan losses | 10 | 140 | 110 | (120 | ) | (40 | ) | 100 | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 15 | — | — | — | — | 15 | ||||||||||||||||||||
Ending balance | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
Six Months Ended June 30, 2014: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,583 | $ | 3,660 | $ | 758 | $ | 811 | $ | 424 | $ | 7,236 | ||||||||||||||
Provision for loan losses | (10 | ) | 140 | 130 | (120 | ) | (40 | ) | 100 | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 31 | — | — | — | — | 31 | ||||||||||||||||||||
Ending balance | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
As of June 30, 2014: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 35 | $ | — | $ | — | $ | — | $ | — | $ | 35 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 1,569 | 3,800 | 888 | 691 | 384 | 7,332 | ||||||||||||||||||||
Total | $ | 1,604 | $ | 3,800 | $ | 888 | $ | 691 | $ | 384 | $ | 7,367 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 899 | $ | — | $ | — | $ | — | $ | 29 | $ | 928 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 77,556 | 178,576 | 102,149 | 29,423 | 23,960 | 411,664 | ||||||||||||||||||||
Total | $ | 78,455 | $ | 178,576 | $ | 102,149 | $ | 29,423 | $ | 23,989 | $ | 412,592 | ||||||||||||||
Three Months Ended June 30, 2013: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 1,631 | $ | 3,200 | $ | 698 | $ | 741 | $ | 349 | $ | 6,619 | ||||||||||||||
Provision for loan losses | (100 | ) | (25 | ) | 50 | 25 | 50 | — | ||||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 1 | — | — | — | — | 1 | ||||||||||||||||||||
Ending balance | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
Six Months Ended June 30, 2013: | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Beginning balance | $ | 2,277 | $ | 2,450 | $ | 508 | $ | 411 | $ | 369 | $ | 6,015 | ||||||||||||||
Provision for (reduction of) loan losses | (1,800 | ) | 725 | 240 | 355 | (20 | ) | (500 | ) | |||||||||||||||||
Charge-offs | — | — | — | — | — | — | ||||||||||||||||||||
Recoveries | 1,055 | — | — | — | 50 | 1,105 | ||||||||||||||||||||
Ending balance | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
As of June 30, 2013: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 50 | $ | — | $ | — | $ | — | $ | — | $ | 50 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 1,482 | 3,175 | 748 | 766 | 399 | 6,570 | ||||||||||||||||||||
Total | $ | 1,532 | $ | 3,175 | $ | 748 | $ | 766 | $ | 399 | $ | 6,620 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,023 | $ | — | $ | — | $ | — | $ | 345 | $ | 1,368 | ||||||||||||||
Ending balance: collectively evaluated for impairment | 62,614 | 126,309 | 70,006 | 30,343 | 21,657 | 310,929 | ||||||||||||||||||||
Total | $ | 63,637 | $ | 126,309 | $ | 70,006 | $ | 30,343 | $ | 22,002 | $ | 312,297 | ||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and Construction | Consumer | Total | ||||||||||||||||||||
Real Estate | and Other | |||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
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 | ||||||||||||||
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 June 30, 2014: | ||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 572 | $ | 572 | $ | 77,883 | $ | 78,455 | ||||||||||||||
Commercial real estate | — | — | — | — | 178,576 | 178,576 | ||||||||||||||||||||
Residential | — | — | — | — | 102,149 | 102,149 | ||||||||||||||||||||
Land and construction | — | — | — | — | 29,423 | 29,423 | ||||||||||||||||||||
Consumer and other | — | — | 29 | 29 | 23,960 | 23,989 | ||||||||||||||||||||
Totals | $ | — | $ | — | $ | 601 | $ | 601 | $ | 411,991 | $ | 412,592 | ||||||||||||||
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 | ||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
(in thousands) | Recorded | Unpaid | Related | Average | ||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | |||||||||||||||||||||||
Balance | Investment | |||||||||||||||||||||||||
As of and for the six months ended June 30, 2014: | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | 769 | $ | 1,045 | $ | — | $ | 783 | ||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
Residential | — | — | — | — | ||||||||||||||||||||||
Land and construction | — | — | — | — | ||||||||||||||||||||||
Consumer and other | 29 | 29 | — | 29 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||
Commercial | $ | 130 | $ | 142 | $ | 35 | $ | 134 | ||||||||||||||||||
Commercial real estate | — | — | — | — | ||||||||||||||||||||||
Residential | — | — | — | — | ||||||||||||||||||||||
Land and construction | — | — | — | — | ||||||||||||||||||||||
Consumer and other | — | — | — | — | ||||||||||||||||||||||
Totals: | ||||||||||||||||||||||||||
Commercial | $ | 899 | $ | 1,187 | $ | 35 | $ | 917 | ||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Residential | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Land and construction | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
Consumer and other | $ | 29 | $ | 29 | $ | — | $ | 29 | ||||||||||||||||||
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 | ||||||||||||||||||
Financing Receivable Credit Quality Indicators [Table Text Block] | ' | |||||||||||||||||||||||||
(in thousands) | Commercial | Commercial | Residential | Land and Construction | Consumer | |||||||||||||||||||||
Real Estate | and Other | |||||||||||||||||||||||||
As of June 30, 2014: | ||||||||||||||||||||||||||
Grade: | ||||||||||||||||||||||||||
Pass | $ | 76,782 | $ | 178,006 | $ | 102,149 | $ | 29,423 | $ | 23,911 | ||||||||||||||||
Special Mention | 152 | — | — | — | — | |||||||||||||||||||||
Substandard | 1,521 | 570 | — | — | 78 | |||||||||||||||||||||
Total | $ | 78,455 | $ | 178,576 | $ | 102,149 | $ | 29,423 | $ | 23,989 | ||||||||||||||||
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 | ||||||||||||||||
Nonaccrual Loans [Member] | ' | |||||||||||||||||||||||||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Tables) [Line Items] | ' | |||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | |||||||||||||||||||||||||
(dollars in thousands) | 30-Jun-14 | 31-Dec-13 | ||||||||||||||||||||||||
Non-accrual loans: | ||||||||||||||||||||||||||
Commercial | $ | 702 | $ | 706 | ||||||||||||||||||||||
Consumer and other | 29 | 29 | ||||||||||||||||||||||||
Total non-accrual loans | 731 | 735 | ||||||||||||||||||||||||
OREO | — | 90 | ||||||||||||||||||||||||
Total non-performing assets | $ | 731 | $ | 825 | ||||||||||||||||||||||
Non-performing assets to gross loans and OREO | 0.18 | % | 0.22 | % | ||||||||||||||||||||||
Non-performing assets to total assets | 0.13 | % | 0.15 | % |
Note_4_Derivative_Financial_In1
Note 4 - Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | Notional | Estimated | Notional | Estimated | |||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Non-hedging interest rate derivatives: | |||||||||||||||||
Commercial loan interest rate swaps | $ | 2,676 | $ | (21 | ) | $ | 2,706 | $ | 15 | ||||||||
Commercial loan interest rate swaps | $ | (2,676 | ) | $ | 21 | $ | (2,706 | ) | $ | (15 | ) | ||||||
Non-Hedging Interest Rate Swaps [Member] | ' | ||||||||||||||||
Note 4 - Derivative Financial Instruments (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Derivative Instruments [Table Text Block] | ' | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
Weighted-Average | Weighted-Average | ||||||||||||||||
Interest Rate | Interest | Interest Rate | Interest | ||||||||||||||
Paid | Rate | Paid | Rate | ||||||||||||||
Received | Received | ||||||||||||||||
Non-hedging interest rate swaps | 3.35 | % | 4.85 | % | 3.37 | % | 4.85 | % | |||||||||
Non-hedging interest rate swaps | 4.85 | % | 3.35 | % | 4.85 | % | 3.37 | % |
Note_5_Comprehensive_Income_Ta
Note 5 - Comprehensive Income (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Note 5 - Comprehensive Income (Tables) [Line Items] | ' | ||||||||||||||||
Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 779 | $ | 4,401 | $ | 1,181 | $ | 5,843 | |||||||||
Other comprehensive income: | |||||||||||||||||
Increase (decrease) in net unrealized gains on investment securities available for sale, net of tax (expense) benefit of ($263) and ($445) for the three and six months ended June 30, 2014, respectively, and $1,016 and $1,129 for the three and six months ended June 30, 2013, respectively | 377 | (1,452 | ) | 638 | (1,615 | ) | |||||||||||
Reclassification for net gains included in earnings, net of tax expense of $219 and $323 for the three and six months ended June 30, 2014, respectively, and $220 for the three and six months ended June 30, 2013 | (314 | ) | (315 | ) | (463 | ) | (315 | ) | |||||||||
Comprehensive income | $ | 842 | $ | 2,634 | $ | 1,356 | $ | 3,913 | |||||||||
Available-for-sale Securities [Member] | ' | ||||||||||||||||
Note 5 - Comprehensive Income (Tables) [Line Items] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
June 30, | June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 164 | $ | 2,273 | $ | 52 | $ | 2,436 | |||||||||
Other comprehensive income (loss) before reclassifications | 377 | (1,452 | ) | 638 | (1,615 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | (314 | ) | (315 | ) | (463 | ) | (315 | ) | |||||||||
Net other comprehensive income (loss) | 63 | (1,767 | ) | 175 | (1,930 | ) | |||||||||||
Ending balance | $ | 227 | $ | 506 | $ | 227 | $ | 506 |
Note_6_Premises_and_Equipment_
Note 6 - Premises and Equipment (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | ' | ||||||||
(in thousands) | 30-Jun-14 | 31-Dec-13 | |||||||
Leasehold improvements | $ | 1,353 | $ | 1,316 | |||||
Furniture & equipment | 2,614 | 2,515 | |||||||
Software | 743 | 767 | |||||||
Total | 4,710 | 4,598 | |||||||
Accumulated depreciation | (3,480 | ) | (3,313 | ) | |||||
Premises and equipment, net | $ | 1,230 | $ | 1,285 |
Note_7_Deposits_Tables
Note 7 - Deposits (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||
Schedule of Deposits [Table Text Block] | ' | ||||||||||||||||
30-Jun-14 | 31-Dec-13 | ||||||||||||||||
(dollars in thousands) | Amount | % of Total | Amount | % of Total | |||||||||||||
Non-interest bearing demand deposits | $ | 261,987 | 56 | % | $ | 236,869 | 52.3 | % | |||||||||
Interest bearing checking | 23,594 | 5.1 | % | 21,005 | 4.6 | % | |||||||||||
Money market deposits and savings | 140,830 | 30.1 | % | 151,879 | 33.6 | % | |||||||||||
Certificates of deposit | 41,361 | 8.8 | % | 43,013 | 9.5 | % | |||||||||||
Total | $ | 467,772 | 100 | % | $ | 452,766 | 100 | % | |||||||||
Schedule of Certificates of Deposit [Table Text Block] | ' | ||||||||||||||||
(in thousands) | Six months | Greater than six months through | Greater than | ||||||||||||||
and less | one year | one year | |||||||||||||||
0.00% to 0.99% | $ | 40,853 | $ | 370 | $ | 98 | |||||||||||
1.00% to 1.99% | — | — | 40 | ||||||||||||||
Total | $ | 40,853 | $ | 370 | $ | 138 |
Note_8_Other_Borrowings_Tables
Note 8 - Other Borrowings (Tables) | 6 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Other Liabilities and Financial Instruments Subject to Mandatory Redemption [Abstract] | ' | ||||||||||||
Schedule of Debt [Table Text Block] | ' | ||||||||||||
Maturity Date | Interest Rate | 30-Jun-14 | 31-Dec-13 | ||||||||||
23-May-14 | 1.14% | — | 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 | 5,000 | ||||||||||
Total | $ | 25,000 | $ | 27,500 |
Note_9_Commitments_and_Conting1
Note 9 - Commitments and Contingencies (Tables) | 6 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Years ending December 31, | |||||
2014 (July – December) | $ | 470 | |||
2015 | 956 | ||||
2016 | 985 | ||||
2017 | 1,015 | ||||
2018 | 1,047 | ||||
Thereafter | 4,433 | ||||
Total | $ | 8,906 | |||
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 (July-December) | $ | 458 | |||
2015 | 554 | ||||
2016 | 359 | ||||
2017 | 202 | ||||
2018 | 129 | ||||
Thereafter | 227 | ||||
Total | $ | 1,929 |
Note_10_Fair_Value_Measurement1
Note 10 - Fair Value Measurements (Tables) | 6 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||
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 Active Markets for Identical Assets | Other Observable Inputs (Level 2) | Significant Unobservable | |||||||||||||||||
(Level 1) | Inputs (Level 3) | ||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||
Investments-Available for Sale | |||||||||||||||||||||
U.S. Government Agencies | $ | 5,961 | $ | — | $ | 5,961 | $ | — | |||||||||||||
Corporate Notes | 2,575 | — | 2,575 | — | |||||||||||||||||
Residential Mortgage-Backed Securities | 69,524 | — | 69,524 | — | |||||||||||||||||
Derivative Assets – Interest Rate Swaps | 21 | — | 21 | — | |||||||||||||||||
Derivative Liabilities – Interest Rate Swaps | 21 | — | 21 | — | |||||||||||||||||
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 | — | |||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
(in thousands) | Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Observable Inputs | Significant Unobservable Inputs (Level 3) | |||||||||||||||||
(Level 2) | |||||||||||||||||||||
At June 30, 2014: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 667 | $ | — | $ | — | $ | 667 | |||||||||||||
Total | $ | 667 | $ | — | $ | — | $ | 667 | |||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Impaired loans | |||||||||||||||||||||
Commercial | $ | 672 | $ | — | $ | — | $ | 672 | |||||||||||||
OREO | |||||||||||||||||||||
Land and construction | 90 | — | — | 90 | |||||||||||||||||
Total | $ | 762 | $ | — | $ | — | $ | 762 | |||||||||||||
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 June 30, 2014 | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 60,298 | $ | 60,298 | $ | — | $ | — | $ | 60,298 | |||||||||||
Investment securities | 78,060 | — | 78,060 | — | 78,060 | ||||||||||||||||
FRB stock | 1,600 | — | — | — | N/A | ||||||||||||||||
FHLB stock | 3,167 | — | — | — | N/A | ||||||||||||||||
Loans, net | 405,346 | — | — | 404,213 | 404,213 | ||||||||||||||||
Non-hedging interest rate swaps | 21 | — | 21 | — | 21 | ||||||||||||||||
Accrued interest receivable | 1,209 | 1,209 | — | — | 1,209 | ||||||||||||||||
Liabilities | |||||||||||||||||||||
Non-interest bearing deposits | $ | 261,987 | $ | 261,987 | $ | — | $ | — | $ | 261,987 | |||||||||||
Interest bearing deposits | 205,785 | 164,424 | 41,361 | — | 205,785 | ||||||||||||||||
Other borrowings | 25,000 | — | 25,102 | — | 25,102 | ||||||||||||||||
Non-hedging interest rate swaps | 21 | — | 21 | — | 21 | ||||||||||||||||
Accrued interest payable | 24 | 24 | — | — | 24 | ||||||||||||||||
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 |
Note_12_NonInterest_Income_Tab
Note 12 - Non-Interest Income (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||||||
Schedule of Non-Interest Income Table Text Block | ' | ||||||||||||||||
Three Months Ended June 30, | Six months Ended June 30, | ||||||||||||||||
(in thousands) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Loan arrangement fees | $ | — | $ | 308 | $ | — | $ | 544 | |||||||||
Gain on sale of AFS investment securities | 533 | 535 | 786 | 535 | |||||||||||||
Service charges and other operating income | 190 | (6 | ) | 302 | 117 | ||||||||||||
Total non-interest income | $ | 723 | $ | 837 | $ | 1,088 | $ | 1,196 |
Note_13_StockBased_Compensatio1
Note 13 - Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | ' | ||||||||||||||||
Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Restricted Shares | Number | Weighted Avg | Number | Weighted Avg | |||||||||||||
of | Fair Value at | of | Fair Value at | ||||||||||||||
Shares | Grant Date | Shares | Grant Date | ||||||||||||||
Beginning balance | 529,529 | $ | 4.62 | 563,516 | $ | 4.23 | |||||||||||
Granted | 228,000 | 7.63 | 138,500 | 5.82 | |||||||||||||
Vested | (93,750 | ) | 4.01 | (124,047 | ) | 4.31 | |||||||||||
Forfeited and surrendered | — | — | (4,750 | ) | 4.03 | ||||||||||||
Ending balance | 663,779 | $ | 5.74 | 573,219 | $ | 4.6 | |||||||||||
Schedule of Share-Based Compensation, Shares Authorized Under Stock Option Plans [Table Text Block] | ' | ||||||||||||||||
Shares Reserved | Less Shares Previously | Less Shares | Total Shares | ||||||||||||||
Exercised/Vested | Outstanding | Available for | |||||||||||||||
Future Issuance | |||||||||||||||||
2004 Founder Stock Option Plan | 150,000 | 121,900 | — | — | |||||||||||||
Director and Employee Stock Option Plan | 1,434,000 | 892,524 | 370,073 | — | |||||||||||||
2005 Equity Incentive Plan | 1,200,000 | 751,494 | 435,779 | — | |||||||||||||
2013 Equity Incentive Plan | 750,000 | — | 228,000 | 522,000 |
Note_14_Regulatory_Matters_Tab
Note 14 - Regulatory Matters (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Company | Bank | For Capital | For the Bank to be | ||||||||||||||||||||||||||||||
Adequacy Purposes | “Well-Capitalized” Under | ||||||||||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||||||||||
Measures | |||||||||||||||||||||||||||||||||
(dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
June 30, 2014: | |||||||||||||||||||||||||||||||||
Total Risk-Based Capital Ratio | $ | 63,479 | 14.38 | % | $ | 59,469 | 13.47 | % | $ | 35,323 | 8 | % | $ | 44,153 | 10 | % | |||||||||||||||||
Tier 1 Risk-Based Capital Ratio | $ | 57,934 | 13.12 | % | $ | 53,923 | 12.21 | % | $ | 17,661 | 4 | % | $ | 26,492 | 6 | % | |||||||||||||||||
Tier 1 Leverage Ratio | $ | 57,934 | 10.58 | % | $ | 53,923 | 9.84 | % | $ | 21,907 | 4 | % | $ | 27,402 | 5 | % | |||||||||||||||||
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 | % |
Note_1_Summary_of_Significant_2
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 |
In Millions, except Share data, unless otherwise specified | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Minimum [Member] | Maximum [Member] | ||
Note 1 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'three | 'ten |
Deferred Tax Assets, Net (in Dollars) | $2.70 | $3.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 350,073 | 370,073 | 350,073 | 370,073 | 0 | 94,363 | 97,860 | 47,442 | ' | ' |
Note_1_Summary_of_Significant_3
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' | ' | ' |
Net income (in Dollars) | $779 | $4,401 | $1,181 | $5,843 |
Average number of common shares outstanding | 9,448,548 | 8,619,056 | 9,370,900 | 8,596,282 |
Average number of common shares outstanding used to calculate diluted earnings per common share | 9,729,504 | 9,002,343 | 9,673,066 | 8,945,990 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' | ' | ' |
Effect of dilution of stock | 3,351 | 114,211 | 27,653 | 70,835 |
Restricted Stock [Member] | ' | ' | ' | ' |
Note 1 - Summary of Significant Accounting Policies (Details) - Earnings Per Share [Line Items] | ' | ' | ' | ' |
Effect of dilution of stock | 277,605 | 269,076 | 274,513 | 278,873 |
Note_2_Investments_Details
Note 2 - Investments (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | |
Note 2 - Investments (Details) [Line Items] | ' | ' | ' | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | $41,361,000 | ' | $41,361,000 | ' | $43,013,000 |
Securities Weighted Average Life | ' | ' | '4 years 153 days | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 26 | ' | 26 | ' | 36 |
Available for Sale Securities, Sold During Period, Amortized Cost | 28,600,000 | 10,800,000 | 43,400,000 | 10,800,000 | ' |
Available-for-sale Securities, Gross Realized Gains | 533,000 | 535,000 | 786,000 | 535,000 | ' |
From California Treasurer's Office [Member] | ' | ' | ' | ' | ' |
Note 2 - Investments (Details) [Line Items] | ' | ' | ' | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | 38,000,000 | ' | 38,000,000 | ' | 38,000,000 |
To California Treasurer's Office [Member] | ' | ' | ' | ' | ' |
Note 2 - Investments (Details) [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale Securities Pledged as Collateral | $47,900,000 | ' | $47,900,000 | ' | $45,400,000 |
Note_2_Investments_Details_Inv
Note 2 - Investments (Details) - Investments Categorized as Available for Sale (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 2 - Investments (Details) - Investments Categorized as Available for Sale [Line Items] | ' | ' |
Amortized Cost | $77,674 | $106,183 |
Gross Unrealized Gains | 688 | 993 |
Gross Unrealized Losses | -302 | -904 |
Fair Value | 78,060 | 106,272 |
US Government Agencies Debt Securities [Member] | ' | ' |
Note 2 - Investments (Details) - Investments Categorized as Available for Sale [Line Items] | ' | ' |
Amortized Cost | 5,959 | ' |
Gross Unrealized Gains | 5 | ' |
Gross Unrealized Losses | -3 | ' |
Fair Value | 5,961 | ' |
Corporate Note Securities [Member] | ' | ' |
Note 2 - Investments (Details) - Investments Categorized as Available for Sale [Line Items] | ' | ' |
Amortized Cost | 2,551 | 3,074 |
Gross Unrealized Gains | 24 | 34 |
Fair Value | 2,575 | 3,108 |
Residential Mortgage Backed Securities [Member] | ' | ' |
Note 2 - Investments (Details) - Investments Categorized as Available for Sale [Line Items] | ' | ' |
Amortized Cost | 69,164 | 103,109 |
Gross Unrealized Gains | 659 | 959 |
Gross Unrealized Losses | -299 | -904 |
Fair Value | $69,524 | $103,164 |
Note_2_Investments_Details_Fai
Note 2 - Investments (Details) - Fair Value of AFS Securities and the Weighted Average Yield of Investment Securities by Contractual Maturity (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
1 Year or Less | $510 | ' |
Weighted Average Yield | 2.03% | ' |
After 1 Through 5 Years | 2,065 | ' |
After 5 Through 10 Years | 39,667 | ' |
After 10 Years | 35,818 | ' |
Total | 78,060 | 106,272 |
One Year or Less [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.53% | ' |
After One Through Five Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.31% | ' |
After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.80% | ' |
After Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.34% | ' |
US Government Agencies Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.13% | ' |
After 5 Through 10 Years | 5,961 | ' |
Total | 5,961 | ' |
US Government Agencies Debt Securities [Member] | After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.13% | ' |
Corporate Note Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
1 Year or Less | 510 | ' |
Weighted Average Yield | 1.35% | ' |
After 1 Through 5 Years | 2,065 | ' |
After 5 Through 10 Years | 0 | ' |
After 10 Years | 0 | ' |
Total | 2,575 | 3,108 |
Corporate Note Securities [Member] | One Year or Less [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.53% | ' |
Corporate Note Securities [Member] | After One Through Five Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.31% | ' |
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 | 2.05% | ' |
After 5 Through 10 Years | 33,706 | ' |
After 10 Years | 35,818 | ' |
Total | $69,524 | $103,164 |
Residential Mortgage Backed Securities [Member] | After Five Through Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 1.74% | ' |
Residential Mortgage Backed Securities [Member] | After Ten Years [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Weighted Average Yield | 2.34% | ' |
Note_2_Investments_Details_Sec
Note 2 - Investments (Details) - Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in a Continuous Loss Position (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 2 - Investments (Details) - Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in a Continuous Loss Position [Line Items] | ' | ' |
Available for sale securities-Gross Unrealized Losses | ($37) | ' |
Available for sale securities-Fair Value | 12,941 | ' |
Available for sale securities-Gross Unrealized Losses | -265 | ' |
Available for sale securities-Fair Value | 23,189 | ' |
US Government Agencies Debt Securities [Member] | ' | ' |
Note 2 - Investments (Details) - Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in a Continuous Loss Position [Line Items] | ' | ' |
Available for sale securities-Gross Unrealized Losses | -3 | ' |
Available for sale securities-Fair Value | 1,928 | ' |
Residential Mortgage Backed Securities [Member] | ' | ' |
Note 2 - Investments (Details) - Securities with Gross Unrealized Losses Aggregated by Investment Category and Length of Time That Individual Securities Have Been in a Continuous Loss Position [Line Items] | ' | ' |
Available for sale securities-Gross Unrealized Losses | -34 | -904 |
Available for sale securities-Fair Value | 11,013 | 51,847 |
Available for sale securities-Gross Unrealized Losses | -265 | ' |
Available for sale securities-Fair Value | $23,189 | ' |
Note_3_Loans_Allowance_for_Loa2
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |||
Commercial [Member] | Commercial [Member] | Commercial [Member] | Commitments to Extend Credit [Member] | Commitments to Extend Credit [Member] | Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | Impaired Loans [Member] | Impaired Loans [Member] | Unfunded Lending Commitments [Member] | Unfunded Lending Commitments [Member] | Doubtful [Member] | Doubtful [Member] | Loss [Member] | Loss [Member] | ||||||||
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of Loan Portfolio Secured By Real Estate | 87.70% | ' | 87.70% | ' | 86.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unsecured Commercial Loan Balances | $11,900,000 | ' | $11,900,000 | ' | $13,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unsecured Consumer And Other Loan Balances | 2,200,000 | ' | 2,200,000 | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unfunded Lending Commitments, Allowance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270,000 | 270,000 | ' | ' | ' | ' | ||
Other Commitment | ' | ' | ' | ' | ' | ' | ' | ' | 125,600,000 | 104,300,000 | 2,400,000 | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Additions to Non-Performing Loans | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Nonperforming Loans to Gross Loans | 0.18% | ' | 0.18% | ' | 0.19% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loans and Leases Receivable, Gross | 412,592,000 | 312,297,000 | 412,592,000 | 312,297,000 | 383,500,000 | 78,455,000 | [1] | 63,637,000 | 76,397,000 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment | 939,000 | ' | 946,000 | ' | ' | 917,000 | ' | 996,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 731,000 | 735,000 | ' | ' | ' | ' | ' | ' | ||
Impaired Financing Receivable, Interest Income, Accrual Method | 3,000 | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Modifications, Number of Contracts | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 | 0 | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | ' | ' | ' | ' | ' | ' | $572,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Unsecured commercial loan balances were $11.9 million and $13.2 million at June 30, 2014 and December 31, 2013, respectively. |
Note_3_Loans_Allowance_for_Loa3
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Loans Outstanding (USD $) | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | $412,592,000 | ' | $383,500,000 | $312,297,000 | ' | ' | ||
Net deferred costs | 121,000 | ' | 48,000 | ' | ' | ' | ||
Less — allowance for loan losses | -7,367,000 | -7,252,000 | -7,236,000 | -6,620,000 | -6,619,000 | -6,015,000 | ||
Loans, net | 405,346,000 | ' | 376,312,000 | ' | ' | ' | ||
Commercial [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | 78,455,000 | [1] | ' | 76,397,000 | [1] | 63,637,000 | ' | ' |
Loan Category Percent | 19.00% | [1] | ' | 19.90% | [1] | ' | ' | ' |
Less — allowance for loan losses | -1,604,000 | -1,579,000 | -1,583,000 | -1,532,000 | -1,631,000 | -2,277,000 | ||
Commercial Real Estate Loans [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | 178,576,000 | ' | 167,419,000 | 126,309,000 | ' | ' | ||
Loan Category Percent | 43.30% | ' | 43.70% | ' | ' | ' | ||
Less — allowance for loan losses | -3,800,000 | -3,660,000 | -3,660,000 | -3,175,000 | -3,200,000 | -2,450,000 | ||
Residential [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | 102,149,000 | ' | 82,795,000 | 70,006,000 | ' | ' | ||
Loan Category Percent | 24.80% | ' | 21.60% | ' | ' | ' | ||
Less — allowance for loan losses | -888,000 | -778,000 | -758,000 | -748,000 | -698,000 | -508,000 | ||
Land and Construction [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | 29,423,000 | ' | 30,102,000 | 30,343,000 | ' | ' | ||
Loan Category Percent | 7.10% | ' | 7.80% | ' | ' | ' | ||
Less — allowance for loan losses | -691,000 | -811,000 | -811,000 | -766,000 | -741,000 | -411,000 | ||
Consumer and Other [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | 23,989,000 | [2] | ' | 26,787,000 | [2] | 22,002,000 | ' | ' |
Loan Category Percent | 5.80% | [2] | ' | 7.00% | [2] | ' | ' | ' |
Less — allowance for loan losses | -384,000 | -424,000 | -424,000 | -399,000 | -349,000 | -369,000 | ||
Loans Outstanding Total [Member] | ' | ' | ' | ' | ' | ' | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ||
Loan Category Amount Outstanding | $412,592,000 | ' | $383,500,000 | ' | ' | ' | ||
Loan Category Percent | 100.00% | ' | 100.00% | ' | ' | ' | ||
[1] | Unsecured commercial loan balances were $11.9 million and $13.2 million at June 30, 2014 and December 31, 2013, respectively. | |||||||
[2] | Unsecured consumer and other loan balances were $2.2 million and $2.3 million at June 30, 2014 and December 31, 2013, 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 $) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | ||||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | $7,252,000 | $6,619,000 | $7,236,000 | $6,015,000 | ' | |||
Provision for loan losses | 100,000 | ' | 100,000 | -500,000 | ' | |||
Recoveries | 15,000 | 1,000 | 31,000 | 1,105,000 | ' | |||
Alllowance for loan losses ending balance | 7,367,000 | 6,620,000 | 7,367,000 | 6,620,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loans ending balance: individually evaluated for impairment | 35,000 | 50,000 | 35,000 | 50,000 | 35,000 | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 7,332,000 | 6,570,000 | 7,332,000 | 6,570,000 | 7,201,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loan losses ending balance: individually evaluated for impairment | 928,000 | 1,368,000 | 928,000 | 1,368,000 | 953,000 | |||
Loans ending balance: collectively evaluated for impairment | 411,664,000 | 310,929,000 | 411,664,000 | 310,929,000 | 382,547,000 | |||
Loans ending balance | 412,592,000 | 312,297,000 | 412,592,000 | 312,297,000 | 383,500,000 | |||
Commercial [Member] | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | 1,579,000 | 1,631,000 | 1,583,000 | 2,277,000 | ' | |||
Provision for loan losses | 10,000 | -100,000 | -10,000 | -1,800,000 | ' | |||
Recoveries | 15,000 | 1,000 | 31,000 | 1,055,000 | ' | |||
Alllowance for loan losses ending balance | 1,604,000 | 1,532,000 | 1,604,000 | 1,532,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loans ending balance: individually evaluated for impairment | 35,000 | 50,000 | 35,000 | 50,000 | 35,000 | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 1,569,000 | 1,482,000 | 1,569,000 | 1,482,000 | 1,548,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loan losses ending balance: individually evaluated for impairment | 899,000 | 1,023,000 | 899,000 | 1,023,000 | 924,000 | |||
Loans ending balance: collectively evaluated for impairment | 77,556,000 | 62,614,000 | 77,556,000 | 62,614,000 | 75,473,000 | |||
Loans ending balance | 78,455,000 | [1] | 63,637,000 | 78,455,000 | [1] | 63,637,000 | 76,397,000 | [1] |
Commercial Real Estate Loans [Member] | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | 3,660,000 | 3,200,000 | 3,660,000 | 2,450,000 | ' | |||
Provision for loan losses | 140,000 | -25,000 | 140,000 | 725,000 | ' | |||
Alllowance for loan losses ending balance | 3,800,000 | 3,175,000 | 3,800,000 | 3,175,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 3,800,000 | 3,175,000 | 3,800,000 | 3,175,000 | 3,660,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loans ending balance: collectively evaluated for impairment | 178,576,000 | 126,309,000 | 178,576,000 | 126,309,000 | 167,419,000 | |||
Loans ending balance | 178,576,000 | 126,309,000 | 178,576,000 | 126,309,000 | 167,419,000 | |||
Residential [Member] | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | 778,000 | 698,000 | 758,000 | 508,000 | ' | |||
Provision for loan losses | 110,000 | 50,000 | 130,000 | 240,000 | ' | |||
Alllowance for loan losses ending balance | 888,000 | 748,000 | 888,000 | 748,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 888,000 | 748,000 | 888,000 | 748,000 | 758,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loans ending balance: collectively evaluated for impairment | 102,149,000 | 70,006,000 | 102,149,000 | 70,006,000 | 82,795,000 | |||
Loans ending balance | 102,149,000 | 70,006,000 | 102,149,000 | 70,006,000 | 82,795,000 | |||
Land and Construction [Member] | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | 811,000 | 741,000 | 811,000 | 411,000 | ' | |||
Provision for loan losses | -120,000 | 25,000 | -120,000 | 355,000 | ' | |||
Alllowance for loan losses ending balance | 691,000 | 766,000 | 691,000 | 766,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 691,000 | 766,000 | 691,000 | 766,000 | 811,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loans ending balance: collectively evaluated for impairment | 29,423,000 | 30,343,000 | 29,423,000 | 30,343,000 | 30,102,000 | |||
Loans ending balance | 29,423,000 | 30,343,000 | 29,423,000 | 30,343,000 | 30,102,000 | |||
Consumer and Other [Member] | ' | ' | ' | ' | ' | |||
Allowance for loan losses: | ' | ' | ' | ' | ' | |||
Allowance for loan losses beginning balance | 424,000 | 349,000 | 424,000 | 369,000 | ' | |||
Provision for loan losses | -40,000 | 50,000 | -40,000 | -20,000 | ' | |||
Recoveries | ' | ' | ' | 50,000 | ' | |||
Alllowance for loan losses ending balance | 384,000 | 399,000 | 384,000 | 399,000 | ' | |||
As of June 30, 2014: | ' | ' | ' | ' | ' | |||
Allowance for loan losses ending balance: collectively evaluated for impairment | 384,000 | 399,000 | 384,000 | 399,000 | 424,000 | |||
Loans: | ' | ' | ' | ' | ' | |||
Loan losses ending balance: individually evaluated for impairment | 29,000 | 345,000 | 29,000 | 345,000 | 29,000 | |||
Loans ending balance: collectively evaluated for impairment | 23,960,000 | 21,657,000 | 23,960,000 | 21,657,000 | 26,758,000 | |||
Loans ending balance | $23,989,000 | [2] | $22,002,000 | $23,989,000 | [2] | $22,002,000 | $26,787,000 | [2] |
[1] | Unsecured commercial loan balances were $11.9 million and $13.2 million at June 30, 2014 and December 31, 2013, respectively. | |||||||
[2] | Unsecured consumer and other loan balances were $2.2 million and $2.3 million at June 30, 2014 and December 31, 2013, 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 $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Total | $412,592,000 | $383,500,000 | $312,297,000 |
Commercial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | ' | 187,000 | ' |
> 90 Days Past Due | 572,000 | 706,000 | ' |
Total Past Due | 572,000 | 893,000 | ' |
Current | 77,883,000 | 75,504,000 | ' |
Total | 78,455,000 | 76,397,000 | ' |
Commercial Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Current | 178,576,000 | 167,419,000 | ' |
Total | 178,576,000 | 167,419,000 | ' |
Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Current | 102,149,000 | 82,795,000 | ' |
Total | 102,149,000 | 82,795,000 | ' |
Land and Construction [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Current | 29,423,000 | 30,102,000 | ' |
Total | 29,423,000 | 30,102,000 | ' |
Consumer and Other [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
> 90 Days Past Due | 29,000 | 29,000 | ' |
Total Past Due | 29,000 | 29,000 | ' |
Current | 23,960,000 | 26,758,000 | ' |
Total | 23,989,000 | 26,787,000 | ' |
Total [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | ' | 187,000 | ' |
> 90 Days Past Due | 601,000 | 735,000 | ' |
Total Past Due | 601,000 | 922,000 | ' |
Current | 411,991,000 | 382,578,000 | ' |
Total | $412,592,000 | $383,500,000 | ' |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 |
Non-accrual loans: | ' | ' |
OREO | ' | $90,000 |
Total non-performing assets | 731,000 | 825,000 |
Non-performing assets to gross loans and OREO | 0.18% | 0.22% |
Non-performing assets to total assets | 0.13% | 0.15% |
Commercial [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 702,000 | 706,000 |
Consumer and Other [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | 29,000 | 29,000 |
Total Nonaccrual Loans [Member] | ' | ' |
Non-accrual loans: | ' | ' |
Nonaccrual loans | $731,000 | $735,000 |
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 $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
Grade: | ' | ' | ' |
Internal Credit Grade | $412,592,000 | $383,500,000 | $312,297,000 |
Commercial [Member] | Pass [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 76,782,000 | 73,824,000 | ' |
Commercial [Member] | Special Mention [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 152,000 | 1,149,000 | ' |
Commercial [Member] | Substandard [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 1,521,000 | 1,424,000 | ' |
Commercial [Member] | Total [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 78,455,000 | 76,397,000 | ' |
Commercial [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 78,455,000 | 76,397,000 | ' |
Commercial Real Estate Loans [Member] | Pass [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 178,006,000 | 166,828,000 | ' |
Commercial Real Estate Loans [Member] | Substandard [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 570,000 | 591,000 | ' |
Commercial Real Estate Loans [Member] | Total [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 178,576,000 | 167,419,000 | ' |
Commercial Real Estate Loans [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 178,576,000 | 167,419,000 | ' |
Residential [Member] | Pass [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 102,149,000 | 82,795,000 | ' |
Residential [Member] | Total [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 102,149,000 | 82,795,000 | ' |
Residential [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 102,149,000 | 82,795,000 | ' |
Land and Construction [Member] | Pass [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 29,423,000 | 26,801,000 | ' |
Land and Construction [Member] | Special Mention [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | ' | 3,301,000 | ' |
Land and Construction [Member] | Total [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 29,423,000 | 30,102,000 | ' |
Land and Construction [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 29,423,000 | 30,102,000 | ' |
Consumer and Other [Member] | Pass [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 23,911,000 | 26,503,000 | ' |
Consumer and Other [Member] | Special Mention [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | ' | 206,000 | ' |
Consumer and Other [Member] | Substandard [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 78,000 | 78,000 | ' |
Consumer and Other [Member] | Total [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | 23,989,000 | 26,787,000 | ' |
Consumer and Other [Member] | ' | ' | ' |
Grade: | ' | ' | ' |
Internal Credit Grade | $23,989,000 | $26,787,000 | ' |
Note_3_Loans_Allowance_for_Loa8
Note 3 - Loans, Allowance for Loan Losses, and Non-Performing Assets (Details) - Impaired Loans (USD $) | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Commercial [Member] | Commercial [Member] | Commercial Real Estate Loans [Member] | Commercial Real Estate Loans [Member] | Residential [Member] | Residential [Member] | Land and Construction [Member] | Land and Construction [Member] | Consumer and Other [Member] | Consumer and Other [Member] | ||||
With no related allowance recorded: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Loans No Related Allowance - Recorded Investment | ' | ' | ' | $769,000 | $789,000 | $0 | $0 | $0 | $0 | $0 | $0 | $29,000 | $29,000 |
Impaired Loans No Related Allowance - Unpaid Principal Balance | ' | ' | ' | 1,045,000 | 1,065,000 | 0 | 0 | 0 | 0 | 0 | 0 | 29,000 | 29,000 |
Impaired Loans No Related Allowance - Average Recorded Investment | ' | ' | ' | 783,000 | 841,000 | 0 | 0 | 0 | 0 | 0 | 0 | 29,000 | 240,000 |
With an allowance recorded: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Loans Related Allowance - Recorded Investment | ' | ' | ' | 130,000 | 135,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Impaired Loans Related Allowance - Unpaid Principal Balance | ' | ' | ' | 142,000 | 142,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Impaired Loans Related Allowance - Related Allowance | ' | ' | ' | 35,000 | 35,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Impaired Loans Related Allowance - Average Recorded Investment | ' | ' | ' | 134,000 | 155,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Totals: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired Loans Total - Recorded Investment | 731,000 | 731,000 | 825,000 | 899,000 | 924,000 | 0 | 0 | 0 | 0 | 0 | 0 | 29,000 | 29,000 |
Impaired Loans Total - Unpaid Principal Balance | ' | ' | ' | 1,187,000 | 1,207,000 | 0 | 0 | 0 | 0 | 0 | 0 | 29,000 | 29,000 |
Impaired Loans Total - Related Allowance | ' | ' | ' | 35,000 | 35,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Impaired Loans Total - Average Recorded Investment | $939,000 | $946,000 | ' | $917,000 | $996,000 | $0 | $0 | $0 | $0 | $0 | $0 | $29,000 | $240,000 |
Note_4_Derivative_Financial_In2
Note 4 - Derivative Financial Instruments (Details) - Interest Rate Derivative Contracts (Commercial Loan Interest Rate Swaps [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial Loan Interest Rate Swaps [Member] | ' | ' |
Non-hedging interest rate derivatives: | ' | ' |
Commercial loan interest rate swaps | $2,676 | $2,706 |
Commercial loan interest rate swaps | -21 | 15 |
Commercial loan interest rate swaps | -2,676 | -2,706 |
Commercial loan interest rate swaps | $21 | ($15) |
Note_4_Derivative_Financial_In3
Note 4 - Derivative Financial Instruments (Details) - Weighted Average Interest Rates on Interest Rate Swaps | Jun. 30, 2014 | Dec. 31, 2013 |
Non-Hedging Interest Rate Swap 1 [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative interest rate paid | 3.35% | 3.37% |
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 | 3.35% | 3.37% |
Note_5_Comprehensive_Income_De
Note 5 - Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Non Interest Income [Member] | ' | ' | ' | ' |
Note 5 - Comprehensive Income (Details) [Line Items] | ' | ' | ' | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $533,000 | $535,000 | $786,000 | $535,000 |
Income Tax Provision [Member] | ' | ' | ' | ' |
Note 5 - Comprehensive Income (Details) [Line Items] | ' | ' | ' | ' |
Other Comprehensive Income (Loss), Tax | $219,000 | $220,000 | $323,000 | $220,000 |
Note_5_Comprehensive_Income_De1
Note 5 - Comprehensive Income (Details) - Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $779 | $4,401 | $1,181 | $5,843 |
Increase (decrease) in net unrealized gains on investment securities available for sale, net of tax (expense) benefit of ($263) and ($445) for the three and six months ended June 30, 2014, respectively, and $1,016 and $1,129 for the three and six months ended June 30, 2013, respectively | 377 | -1,452 | 638 | -1,615 |
Reclassification for net gains included in earnings, net of tax expense of $219 and $323 for the three and six months ended June 30, 2014, respectively, and $220 for the three and six months ended June 30, 2013 | -314 | -315 | -463 | -315 |
Comprehensive income | $842 | $2,634 | $1,356 | $3,913 |
Note_5_Comprehensive_Income_De2
Note 5 - Comprehensive Income (Details) - Comprehensive Income (Parentheticals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Comprehensive Income [Abstract] | ' | ' | ' | ' |
Tax on net unrealized gains on investment securities available for sale | ($263) | $1,016 | ($445) | $1,129 |
Tax on reclassification for net gains included in earnings | $219 | $220 | $323 | $220 |
Note_5_Comprehensive_Income_De3
Note 5 - Comprehensive Income (Details) - Activity of Investment Securities Available for Sale Included in Accumulated Other Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Activity of Investment Securities Available for Sale Included in Accumulated Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Beginning balance | $164 | $2,273 | $52 | $2,436 |
Other comprehensive income (loss) before reclassifications | 377 | -1,452 | 638 | -1,615 |
Amounts reclassified from accumulated other comprehensive income | -314 | -315 | -463 | -315 |
Net other comprehensive income (loss) | 63 | -1,767 | 175 | -1,930 |
Ending balance | $227 | $506 | $227 | $506 |
Note_6_Premises_and_Equipment_1
Note 6 - Premises and Equipment (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation, Depletion and Amortization | $121,000 | $121,000 | $244,000 | $253,000 |
Note_6_Premises_and_Equipment_2
Note 6 - Premises and Equipment (Details) - Premises and Equipment (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment gross | $4,710 | $4,598 |
Accumulated depreciation | -3,480 | -3,313 |
Premises and equipment, net | 1,230 | 1,285 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment gross | 1,353 | 1,316 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment gross | 2,614 | 2,515 |
Software and Software Development Costs [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment gross | $743 | $767 |
Note_7_Deposits_Details
Note 7 - Deposits (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Note 7 - Deposits (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | $41,361,000 | $43,013,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 8.80% | 9.50% |
Time Deposits, $100,000 or More | 40,555,000 | 42,143,000 |
Contractual Maturities, Time Deposits, $100,000 or More, Six Months or Less | 40,400,000 | ' |
Contractual Maturities, Time Deposits, $100,000 or More, Six Months Through 12 Months | 147,000 | ' |
Certificates of Deposit- State of California [Member] | ' | ' |
Note 7 - Deposits (Details) [Line Items] | ' | ' |
Interest-bearing Domestic Deposit, Certificates of Deposits | 38,000,000 | 38,000,000 |
Percentage of Interest-bearing Domestic Deposits to Deposits, Certificates of Deposit | 8.10% | 8.40% |
Available-for-sale Securities Pledged as Collateral | $41,800,000 | $41,800,000 |
Note_7_Deposits_Details_Deposi
Note 7 - Deposits (Details) - Deposits by Category (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits by Category [Abstract] | ' | ' |
Non-interest bearing demand deposits | $261,987 | $236,869 |
Non-interest bearing demand deposits | 56.00% | 52.30% |
Interest bearing checking | 23,594 | 21,005 |
Interest bearing checking | 5.10% | 4.60% |
Money market deposits and savings | 140,830 | 151,879 |
Money market deposits and savings | 30.10% | 33.60% |
Certificates of deposit | 41,361 | 43,013 |
Certificates of deposit | 8.80% | 9.50% |
Total | $467,772 | $452,766 |
Total | 100.00% | 100.00% |
Note_7_Deposits_Details_Certif
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | $41,361 | $43,013 |
Range 1 [Member] | Minimum [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Weighted average certificates of deposit | 0.00% | ' |
Range 1 [Member] | Maximum [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Weighted average certificates of deposit | 0.99% | ' |
Range 1 [Member] | Six Months and Less [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 40,853 | ' |
Range 1 [Member] | Greater Than Six Months Through One Year [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 370 | ' |
Range 1 [Member] | Greater Than One Year [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 98 | ' |
Range 2 [Member] | Minimum [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Weighted average certificates of deposit | 1.00% | ' |
Range 2 [Member] | Maximum [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Weighted average certificates of deposit | 1.99% | ' |
Range 2 [Member] | Greater Than One Year [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 40 | ' |
Six Months and Less [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 40,853 | ' |
Greater Than Six Months Through One Year [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | 370 | ' |
Greater Than One Year [Member] | ' | ' |
Note 7 - Deposits (Details) - Certificates of Deposit by Interest Rate and Maturity [Line Items] | ' | ' |
Interest bearing certificates of deposit | $138 | ' |
Note_8_Other_Borrowings_Detail
Note 8 - Other Borrowings (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
FHLB [Member] | ' | ' |
Note 8 - Other Borrowings (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $186.10 | $169.90 |
Long-term Federal Home Loan Bank Advances, Noncurrent | 25 | 27.5 |
Federal Line of Credit [Member] | ' | ' |
Note 8 - Other Borrowings (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 27 | 27 |
Available-for-sale Securities Pledged as Collateral | $2.60 | $3.10 |
Note_8_Other_Borrowings_Detail1
Note 8 - Other Borrowings (Details) - Long Term Borrowings (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB outstanding balance | $25,000 | $27,500 |
May 23, 2014 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 1.14% | ' |
FHLB outstanding balance | ' | 2,500 |
December 29, 2014 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 0.83% | ' |
FHLB outstanding balance | 5,000 | 5,000 |
December 30, 2014 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 0.74% | ' |
FHLB outstanding balance | 2,500 | 2,500 |
May 26, 2015 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 1.65% | ' |
FHLB outstanding balance | 2,500 | 2,500 |
May 23, 2016 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 2.07% | ' |
FHLB outstanding balance | 2,500 | 2,500 |
December 29, 2016 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 1.38% | ' |
FHLB outstanding balance | 5,000 | 5,000 |
December 30, 2016 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 1.25% | ' |
FHLB outstanding balance | 2,500 | 2,500 |
May 2, 2018 [Member] | ' | ' |
Note 8 - Other Borrowings (Details) - Long Term Borrowings [Line Items] | ' | ' |
FHLB interest rate | 0.93% | ' |
FHLB outstanding balance | $5,000 | $5,000 |
Note_9_Commitments_and_Conting2
Note 9 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | |
Commitments to Extend Credit [Member] | Commitments to Extend Credit [Member] | Credit Cards [Member] | Credit Cards [Member] | Standby Letters of Credit [Member] | Standby Letters of Credit [Member] | |||||
Note 9 - Commitments and Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Commitment | ' | ' | ' | ' | $125,600,000 | $104,300,000 | $62,000 | $73,000 | $2,400,000 | $2,600,000 |
Operating Leases, Rent Expense | $220,000 | $190,000 | $417,000 | $358,000 | ' | ' | ' | ' | ' | ' |
Note_9_Commitments_and_Conting3
Note 9 - Commitments and Contingencies (Details) - Minimum Future Rental Payments (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Minimum Future Rental Payments [Abstract] | ' |
2014 (July – December) | $470 |
2015 | 956 |
2016 | 985 |
2017 | 1,015 |
2018 | 1,047 |
Thereafter | 4,433 |
Total | $8,906 |
Note_9_Commitments_and_Conting4
Note 9 - Commitments and Contingencies (Details) - Future Restricted Stock Expense (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Future Restricted Stock Expense [Abstract] | ' |
2014 (July-December) | $458 |
2015 | 554 |
2016 | 359 |
2017 | 202 |
2018 | 129 |
Thereafter | 227 |
Total | $1,929 |
Note_10_Fair_Value_Measurement2
Note 10 - Fair Value Measurements (Details) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2013 |
Note 10 - Fair Value Measurements (Details) [Line Items] | ' | ' |
Available-for-sale Securities | $78,060 | $106,272 |
Available for Sale Securities, Weighted Average Interest Rate | 2.05% | 2.12% |
Available for Sale Securities, Weighted Average Life | '4 years 153 days | '3 years 310 days |
Residential [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) [Line Items] | ' | ' |
Available-for-sale Securities | $69,500 | $103,200 |
Note_10_Fair_Value_Measurement3
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Derivative Assets – Interest Rate Swaps | $21 | $15 |
Derivative Liabilities – Interest Rate Swaps | 21 | 15 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Derivative Assets – Interest Rate Swaps | 21 | 15 |
Derivative Liabilities – Interest Rate Swaps | 21 | 15 |
US Government Agencies Debt Securities [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | 5,961 | ' |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | 5,961 | ' |
Corporate Notes [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | 2,575 | 3,108 |
Corporate Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | 2,575 | 3,108 |
Residential Mortgage Backed Securities [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | 69,524 | 103,164 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Recurring Basis [Line Items] | ' | ' |
Investments - Available for Sale | $69,524 | $103,164 |
Note_10_Fair_Value_Measurement4
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis (Impaired Loans [Member], USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commercial [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | $667 | ' |
Commercial [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | 667 | ' |
Total [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | 667 | 762 |
Total [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | 667 | 762 |
Commercial Real Estate Loans [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | ' | 672 |
Commercial Real Estate Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | ' | 672 |
Land and Construction [Member] | Total [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | ' | 90 |
Land and Construction [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' |
Note 10 - Fair Value Measurements (Details) - Fair Value of Assets Measured on Non-Recurring Basis [Line Items] | ' | ' |
Asset measured on a nonrecurring basis | ' | $90 |
Note_11_Estimated_Fair_Value_I
Note 11 - Estimated Fair Value Information (Details) - Fair Value and Carrying Amount of Financial Instruments (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $60,298 | $44,688 | $29,826 | $50,555 |
Cash and cash equivalents | 60,298 | 44,688 | ' | ' |
Investment securities | 78,060 | 106,272 | ' | ' |
FRB stock | 1,600 | 1,570 | ' | ' |
FRB stock | ' | ' | ' | ' |
FHLB stock | 3,167 | 3,062 | ' | ' |
FHLB stock | ' | ' | ' | ' |
Loans, net | 405,346 | 376,312 | ' | ' |
Loans, net | 404,213 | 376,249 | ' | ' |
Non-hedging interest rate swaps | 21 | 15 | ' | ' |
Non-hedging interest rate swaps | 21 | 15 | ' | ' |
Accrued interest receivable | 1,209 | 1,132 | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 467,772 | 452,766 | ' | ' |
Other borrowings | 25,000 | 27,500 | ' | ' |
Other borrowings | 25,102 | 27,562 | ' | ' |
Accrued interest payable | 24 | 29 | ' | ' |
Non-Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 261,987 | 236,869 | ' | ' |
Non-Interest Bearing Deposit Liabilities [Member] | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 261,987 | 236,869 | ' | ' |
Deposits | 261,987 | 236,869 | ' | ' |
Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 164,424 | 172,884 | ' | ' |
Interest Bearing Deposit Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 41,361 | 43,013 | ' | ' |
Interest Bearing Deposit Liabilities [Member] | ' | ' | ' | ' |
Liabilities | ' | ' | ' | ' |
Deposits | 205,785 | 215,897 | ' | ' |
Deposits | 205,785 | 215,897 | ' | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 60,298 | 44,688 | ' | ' |
Accrued interest receivable | 1,209 | 1,132 | ' | ' |
Liabilities | ' | ' | ' | ' |
Accrued interest payable | 24 | 29 | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investment securities | 78,060 | 106,272 | ' | ' |
Non-hedging interest rate swaps | 21 | 15 | ' | ' |
Liabilities | ' | ' | ' | ' |
Other borrowings | 25,102 | 27,562 | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Loans, net | $404,213 | $376,249 | ' | ' |
Note_12_NonInterest_Income_Det
Note 12 - Non-Interest Income (Details) - Non-Interest Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Note 12 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' | ' | ' |
Other Income | $190 | $302 | $302 | $661 |
Total non-interest income | 723 | 837 | 1,088 | 1,196 |
Gain on sale of AFS investment securities | 533 | 535 | 786 | 535 |
Loan Arrangement Fees [Member] | ' | ' | ' | ' |
Note 12 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' | ' | ' |
Other Income | ' | 308 | ' | 544 |
Service Charges and Other Operating Income [Member] | ' | ' | ' | ' |
Note 12 - Non-Interest Income (Details) - Non-Interest Income [Line Items] | ' | ' | ' | ' |
Other Income | $190 | ($6) | $302 | $117 |
Note_13_StockBased_Compensatio2
Note 13 - Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 8-May-13 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Founder 2004 [Member] | Founder 2004 [Member] | Founder 2004 [Member] | Director and Employee Stock Option Plan [Member] | Director and Employee Stock Option Plan [Member] | ||||||
Note 13 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted Stock or Unit Expense (in Dollars) | $235,000 | $205,000 | $421,000 | $393,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars) | ' | ' | ' | ' | ' | $388,000 | $511,000 | $400,000 | $534,000 | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,000 | 0 | ' | 430,600 | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | $5 | ' | $5 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,800 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 133,700 | ' | 370,073 | 1,045,673 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '237 days | ' | '1 year 10 days | '1 year 51 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ' | $7.97 | $6.05 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Note_13_StockBased_Compensatio3
Note 13 - Stock-Based Compensation (Details) - Activities Related to Restricted Stock Awards Outstanding (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Activities Related to Restricted Stock Awards Outstanding [Abstract] | ' | ' |
Beginning balance | 529,529 | 563,516 |
Beginning balance | $4.62 | $4.23 |
Ending balance | 663,779 | 573,219 |
Ending balance | $5.74 | $4.60 |
Granted | 228,000 | 138,500 |
Granted | $7.63 | $5.82 |
Vested | -93,750 | -124,047 |
Vested | $4.01 | $4.31 |
Forfeited and surrendered | ' | -4,750 |
Forfeited and surrendered | ' | $4.03 |
Note_13_StockBased_Compensatio4
Note 13 - Stock-Based Compensation (Details) - Amount of Shares Authorized and Available Under all Stock Plans | 8-May-13 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Founder Stock Option Plan 2004 [Member] | Director and Employee Stock Option Plan [Member] | 2005 Equity Incentive Plan [Member] | 2013 Equity Incentive Plan [Member] | ||
Note 13 - 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 | ' | 121,900 | 892,524 | 751,494 | ' |
Equity Incentive Plans, Less Shares Outstanding | ' | ' | 370,073 | 435,779 | 228,000 |
Equity Incentive Plans, Total Shares Available for Issuance | ' | ' | ' | ' | 522,000 |
Note_14_Regulatory_Matters_Det
Note 14 - Regulatory Matters (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 02, 2013 |
Note 14 - 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 14 - Regulatory Matters (Details) [Line Items] | ' | ' | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | ' | ' |
Maximum [Member] | ' | ' | ' |
Note 14 - Regulatory Matters (Details) [Line Items] | ' | ' | ' |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | ' | ' |
Note_14_Regulatory_Matters_Det1
Note 14 - Regulatory Matters (Details) - The Company’s and the Bank’s Capital Ratios (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jul. 02, 2013 |
In Thousands, unless otherwise specified | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
For Capital Adequacy, Amount | $35,323 | $33,062 | ' |
For Capital Adequacy, Ratio | 8.00% | 8.00% | ' |
To Be Well Capitalized, Amount | 44,153 | 41,326 | ' |
To Be Well Capitalized | 10.00% | 10.00% | ' |
Ratio | ' | ' | 4.50% |
For Capital Adequacy, Amount | 17,661 | 16,531 | ' |
For Capital Adequacy, Ratio | 4.00% | 4.00% | ' |
To Be Well Capitalized, Amount | 26,492 | 24,796 | ' |
To Be Well Capitalized, Ratio | 6.00% | 6.00% | ' |
For Capital Adequacy, Amount | 21,907 | 22,025 | ' |
For Capital Adequacy, Ratio | 4.00% | 4.00% | ' |
To Be Well Capitalized, Amount | 27,402 | 27,541 | ' |
To Be Well Capitalized, Ratio | 5.00% | 5.00% | ' |
Company [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Amount | 63,479 | 58,620 | ' |
Ratio | 14.38% | 14.18% | ' |
Amount | 57,934 | 53,425 | ' |
Ratio | 13.12% | 12.93% | ' |
Amount | 57,934 | 53,425 | ' |
Ratio | 10.58% | 9.70% | ' |
Bank [Member] | ' | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' | ' |
Amount | 59,469 | 56,555 | ' |
Ratio | 13.47% | 13.69% | ' |
Amount | 53,923 | 51,361 | ' |
Ratio | 12.21% | 12.43% | ' |
Amount | $53,923 | $51,361 | ' |
Ratio | 9.84% | 9.32% | ' |