Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 27, 2015 | Jun. 30, 2014 |
Document And Entity Information | |||
Entity Registrant Name | ENTEGRA FINANCIAL CORP. | ||
Entity Central Index Key | 1522327 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $0 | ||
Entity Common Stock, Shares Outstanding | 6,546,375 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $7,860 | $9,045 |
Interest-earning deposits | 51,122 | 25,236 |
Cash and cash equivalents | 58,982 | 34,281 |
Investments - available for sale | 219,859 | 155,484 |
Investments - held to maturity (fair value of $30,890 and $20,098 at December 31, 2014 and 2013, respectively) | 29,285 | 20,988 |
Other investments, at cost | 4,908 | 3,659 |
Loans held for sale | 10,761 | 5,688 |
Loans receivable | 540,479 | 521,874 |
Allowance for loan losses | -11,072 | -14,251 |
Fixed assets, net | 13,004 | 13,006 |
Real estate owned | 4,425 | 10,506 |
Interest receivable | 2,925 | 2,673 |
Bank owned life insurance | 20,417 | 19,961 |
Net deferred tax asset | 2,089 | 4,210 |
Real estate held for investment | 2,489 | 2,489 |
Loan servicing rights | 2,187 | 1,883 |
Other assets | 2,910 | 2,442 |
Total assets | 903,648 | 784,893 |
Liabilities: | ||
Deposits | 703,117 | 684,226 |
Federal Home Loan Bank advances | 60,000 | 40,000 |
Junior subordinated notes | 14,433 | 14,433 |
Post employment benefits | 9,759 | 10,199 |
Accrued interest payable | 323 | 2,023 |
Other liabilities | 8,697 | 1,494 |
Total liabilities | 796,329 | 752,375 |
Commitments and contingencies (Notes 8 and 23) | ||
Equity: | ||
Preferred stock - no par value, 10,000,000 shares authorized; none issued and outstanding | ||
Common stock - no par value, 50,000,000 shares authorized; 6,546,375 and 0 shares issued and outstanding as of December 31, 2014 and 2013, respectively | ||
Additional paid in capital | 63,651 | |
Retained earnings | 45,937 | 39,994 |
Accumulated other comprehensive loss | -2,269 | -7,476 |
Total equity | 107,319 | 32,518 |
Total liabilities and equity | $903,648 | $784,893 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Investment - held to maturity at fair value | $30,890 | $20,098 |
Preferred stock, par value | $0 | $0 |
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 | $0 | $0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 6,546,375 | 0 |
Common stock, shares outstanding | 6,546,375 | 0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Interest and fees on loans | $27,597 | $27,468 | $30,804 |
Interest on tax exempt loans | 68 | 67 | 84 |
Taxable securities | 4,139 | 3,445 | 2,926 |
Tax-exempt securities | 347 | 370 | 636 |
Interest-earning deposits | 95 | 31 | 21 |
Other | 199 | 70 | 96 |
Total interest and dividend income | 32,445 | 31,451 | 34,567 |
Interest expense: | |||
Deposits | 5,361 | 5,826 | 7,883 |
Federal Home Loan Bank advances | 703 | 672 | 1,238 |
Junior subordinated notes | 509 | 490 | 514 |
Total interest expense | 6,573 | 6,988 | 9,635 |
Net interest income | 25,872 | 24,463 | 24,932 |
Provision for loan losses | 33 | 4,358 | 7,878 |
Net interest income after provision for loan losses | 25,839 | 20,105 | 17,054 |
Noninterest income: | |||
Servicing income (expense), net | 565 | -126 | -84 |
Mortgage banking | 800 | 2,149 | 1,005 |
Gain on sale of SBA loans | 629 | 258 | |
Gain on sale of investments, net | 657 | 358 | 3,294 |
Other than temporary impairment on cost method investment | -76 | ||
Service charges on deposit accounts | 1,203 | 1,303 | 1,604 |
Interchange fees | 1,126 | 1,009 | 967 |
Bank owned life insurance | 520 | 543 | 595 |
Other | 699 | 701 | 545 |
Total noninterest income | 6,123 | 6,195 | 7,926 |
Noninterest expenses: | |||
Compensation and employee benefits | 11,877 | 11,238 | 10,111 |
Net occupancy | 2,690 | 2,507 | 2,342 |
Federal deposit insurance | 1,265 | 1,700 | 1,652 |
Professional and advisory | 722 | 547 | 1,000 |
Data processing | 1,082 | 893 | 751 |
Net cost of operation of real estate owned | 2,970 | 5,612 | 5,448 |
Other | 3,205 | 3,743 | 3,754 |
Total noninterest expenses | 23,811 | 26,240 | 25,058 |
Income (loss) before taxes | 8,151 | 60 | -78 |
Income tax expense (benefit) | 2,208 | 475 | -1,011 |
Net income (loss) | $5,943 | ($415) | $933 |
Earnings per share - basic and diluted | $0.91 | ||
Average shares outstanding - basic and diluted | 6,546,375 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $5,943 | ($415) | $933 |
Other comprehensive income (loss): | |||
Change in unrealized holding gains and losses on securities available for sale | 5,665 | -9,431 | 1,134 |
Reclassification adjustment for securities gains realized in net income | -657 | -358 | -3,294 |
Amortization of unrealized loss on securities transferred to held to maturity | 199 | 34 | |
Change in deferred tax valuation allowance attributable to unrealized gains and losses on investment securities available for sale | 1,992 | -3,479 | -816 |
Other comprehensive income (loss), before tax | 7,199 | -13,234 | -2,976 |
Income tax effect related to items of other comprehensive income (loss) | -1,992 | 3,873 | 853 |
Other comprehensive income (loss), after tax | 5,207 | -9,361 | -2,123 |
Comprehensive income (loss) | $11,150 | ($9,776) | ($1,190) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2011 | $39,476 | $4,008 | $43,484 | ||
Beginning Balance (in shares) at Dec. 31, 2011 | |||||
Net income (loss) | 933 | 933 | |||
Other comprehensive income, net of tax | -2,123 | -2,123 | |||
Ending Balance at Dec. 31, 2012 | 40,409 | 1,885 | 42,294 | ||
Ending Balance (in shares) at Dec. 31, 2012 | |||||
Net income (loss) | -415 | -415 | |||
Other comprehensive income, net of tax | -9,361 | -9,361 | |||
Ending Balance at Dec. 31, 2013 | 39,994 | -7,476 | 32,518 | ||
Ending Balance (in shares) at Dec. 31, 2013 | |||||
Net income (loss) | 5,943 | 5,943 | |||
Other comprehensive income, net of tax | 5,207 | 5,207 | |||
Issuance of common stock | 65,464 | 65,464 | |||
Issuance of common stock (in shares) | 6,546,375 | ||||
Common stock issuance costs | -1,813 | -1,813 | |||
Ending Balance at Dec. 31, 2014 | $63,651 | $45,937 | ($2,269) | $107,319 | |
Ending Balance (in shares) at Dec. 31, 2014 | 6,546,375 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities: | |||
Net income (loss) | $5,943 | ($415) | $933 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and leasehold amortization | 875 | 848 | 805 |
Security amortization, net | -1,159 | -1,506 | -1,972 |
Provision for loan losses | 33 | 4,358 | 7,878 |
Provision for real estate owned | 2,349 | 4,093 | 2,089 |
Deferred income tax expense | 2,121 | 429 | -440 |
Net increase (decrease) in deferred loan fees | -237 | -232 | 132 |
Gain on sales of securities available for sale | -657 | -358 | -3,294 |
Other than temporary impairment on cost method investment | 76 | ||
Loss on disposal of fixed assets | 8 | ||
Income on bank owned life insurance, net | -456 | -482 | -536 |
Mortgage banking income, net | -800 | -2,149 | -1,005 |
Gain on sale of SBA loans | 629 | 258 | |
Net realized loss on sale of real estate owned | -49 | -163 | -1,203 |
Loans originated for sale | 31,939 | 65,635 | 40,815 |
Proceeds from sale of loans originated for sale | 28,295 | 63,099 | 41,075 |
Net change in operating assets and liabilities: | |||
Interest receivable | -252 | -9 | 505 |
Loan servicing rights | -304 | -25 | 406 |
Other assets | -544 | -168 | -2,252 |
Postemployment benefits | -440 | -669 | -669 |
Accrued interest payable | -1,700 | 559 | 157 |
Other liabilities | 18 | 373 | 69 |
Current income taxes | -179 | ||
Net cash provided by operating activities | 3,442 | 5,432 | 12,538 |
Activity for investments available for sale: | |||
Purchases | 115,617 | 113,810 | 118,361 |
Maturities/calls and principal repayments | 30,484 | 21,122 | 29,389 |
Sales | 19,170 | 36,404 | 147,826 |
Net (increase) decrease in loans | -17,477 | -28,041 | -26,872 |
Proceeds from sale of real estate owned | 4,355 | 8,671 | 13,245 |
Real estate cost capitalized | -68 | -118 | 1,355 |
Purchase of fixed assets | -881 | -642 | -312 |
Purchase of other investments, at cost | 1,462 | -287 | |
Redemptions of other investments, at cost | 213 | 4,053 | |
Net cash used in investing activities | -81,283 | -20,619 | 101,357 |
Financing activities: | |||
Net increase (decrease) in deposits | 18,855 | 9,128 | -75,358 |
Net increase in escrow deposits | 36 | -22 | -376 |
Proceeds from FHLB advances | 20,000 | 15,000 | |
Repayment of FHLB advances | -27,400 | ||
Proceeds from sale of common stock | 63,651 | ||
Net cash provided by financing activities | 102,542 | 24,106 | -103,134 |
Increase in cash and cash equivalents | 24,701 | 8,919 | 10,761 |
Cash and cash equivalents, beginning of period | 34,281 | 25,362 | 14,601 |
Cash and cash equivalents, end of period | 58,982 | 34,281 | 25,362 |
Cash paid during the year for: | |||
Interest on deposits and other borrowings | 8,273 | 6,429 | 9,987 |
Income taxes | 150 | 43 | |
Noncash investing and financing activities: | |||
Real estate acquired in satisfaction of mortgage loans | 2,200 | 8,651 | 21,295 |
Loans originated for disposition of real estate owned | 1,596 | 2,591 | 3,188 |
Transfer of investment securities available for sale to held to maturity | 4,473 | 23,000 | |
Purchased loans and investments to be settled | 7,185 | ||
Transfer of real estate owned to real estate held for investment | $2,500 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | NOTE 1. ORGANIZATION |
Entegra Financial Corp. (the “Company”) was incorporated on May 31, 2011 and became the holding company for Macon Bank, Inc. (the “Bank”) on September 30, 2014 upon the completion of Macon Bancorp’s merger with and into the Company, pursuant to which Macon Bancorp converted from the mutual to stock form of organization. The Company’s primary operation is its investment in the Bank. The Company also owns 100% of the common stock of Macon Capital Trust I (the “Trust”), a Delaware statutory trust formed in 2003 to facilitate the issuance of trust preferred securities. The Bank is a North Carolina state-chartered savings bank and has a wholly owned subsidiary, Macon Services, Inc., which owns a real estate investment property. The consolidated financials are presented in these financial statements. | |
The Bank operates as a community-focused retail bank, originating primarily real estate based mortgage, consumer and commercial loans and accepting deposits from consumers and small businesses. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
The accounting and reporting policies of the Company conform, in all material respects, to U.S. generally accepted accounting principles, or GAAP, and to general practices within the banking industry. The following summarizes the more significant of these policies and practices. | |||
Estimates – The preparation of consolidated financial statements requires management 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||
Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties. | |||
Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated. | |||
Reclassification – Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition. | |||
Cash and Cash Equivalents – Cash and cash equivalents as presented in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows include vault cash and demand deposits at other institutions including the Federal Home Loan Bank (FHLB) and the Federal Reserve Bank (FRB). Depository institutions are required to maintain reserve and clearing balances with the FRB. The Company’s required reserve balances with the FRB were $0.6 million and $0.4 million at December 31, 2014 and 2013, respectively, and were satisfied entirely through vault cash balances. | |||
Securities – We determine the appropriate classification of securities at the time of purchase. Available for sale securities represent those securities that that we intend to hold for an indefinite period of time, but that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Such securities are carried at fair value with net unrealized gains and losses deemed to be temporary, reported as a component of accumulated other comprehensive income, net of tax. | |||
Held to maturity securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. | |||
Realized gains and losses on the sale of securities and other-than-temporary impairment (OTTI) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. | |||
We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery. | |||
The Company reclassified certain of its securities from available for sale to held to maturity during the years ended December 31, 2014 and 2013 in an effort to minimize the impact of future interest rate changes on Accumulated Other Comprehensive Income (Loss). The difference between the book values and fair values at the date of the transfer will continue to be reported in a separate component of Accumulated Other Comprehensive Income (Loss), and will be amortized into income over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of a premium. Concurrently, the revised book values of the transferred securities (represented by the market value on the date of transfer) are being amortized back to their par values over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of a discount. | |||
Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. Net unrealized losses are recognized by charges to Mortgage Banking income. When a loan is placed in the held-for-sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the cost basis of the loan at the time it is sold. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Operations in Mortgage Banking income for residential loans and Gains on sale of SBA loans for Small Business Administration Loans. Loans held for sale primarily represent loans on one-to-four family dwellings, including construction loans and the portion of Small Business Administration loans intended to be sold. | |||
Loans Receivable – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances less any charge-offs and adjusted for the allowance for loan losses, unamortized premiums and discounts, and any net deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of interest income over the respective lives of the loans using the interest method without consideration of anticipated prepayments. | |||
Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time from when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. | |||
The Company began originating and selling the guaranteed portion of small business administration (SBA) loans into the secondary market during the year ended December 31, 2013. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. | |||
Nonaccrual Loans – The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent or when it becomes impaired, whichever occurs first, unless the loan is well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual is reversed against interest income. Interest payments received on nonaccrual loans are generally applied as a direct reduction to the principal outstanding until qualifying for return to accrual status. Interest payments received on nonaccrual loans may be recognized as income on a cash basis if recovery of the remaining principal is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Interest payments applied to principal while the loan was on nonaccrual may be recognized in income over the remaining life of the loan after the loan is returned to accrual status. | |||
For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. | |||
Troubled Debt Restructurings (TDR) – In situations where, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession to the borrower, for other than an insignificant period of time, that we would not otherwise grant, the related loan is classified as a TDR. We strive to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates, periods of interest only payments, and principal deferment. While unusual, there may be instances of loan principal forgiveness. We also may have borrowers classified as a TDR wherein their debt obligation has been discharged by a chapter 7 bankruptcy without reaffirmation of debt. We individually evaluate all substandard loans that experienced a modification of terms to determine if a TDR has occurred. | |||
All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement | |||
Allowance for Loan Losses (ALL) – The ALL reflects our estimates of probable losses inherent in the loan portfolio at the balance sheet date. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The methodology for determining the ALL has two main components: the evaluation of individual loans for impairment and the evaluation of certain groups of homogeneous loans with similar risk characteristics. | |||
A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. | |||
The allowance for homogenous loans consists of a base historical loss reserve and a qualitative reserve. The base historical loss reserve utilizes a weighted average historical loss rate of the last 16 quarters, with the most recent four quarters weighted more heavily than the oldest four quarters. The loss rates for the base loss reserve are segmented into 13 loan categories and contain loss rates ranging from approximately 0% to 14%. | |||
The qualitative reserve adjusts the weighted average loss rates utilized in the base loss reserve for trends in the following internal and external factors: | |||
· | Non-accrual and classified loans | ||
· | Collateral values | ||
· | Loan concentrations | ||
· | Economic conditions – including unemployment rates, building permits, and a regional economic index. | ||
Qualitative reserve adjustment factors as a percentage of historical loss rates range from -10% for a favorable trend to +30% for a highly unfavorable trend. These factors are subject to adjustment as economic conditions change. | |||
Fixed Assets – Land is stated at cost. Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes over the estimated useful lives of the assets ranging from 4 to 30 years. The cost of maintenance and repairs is charged to expense as incurred while expenditures greater than $1,000 that increase a property’s life are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. Leasehold improvements are amortized over the shorter of the asset’s useful life or the remaining lease term, including renewal periods when reasonably assured. | |||
Real Estate Owned – Real estate properties acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan or fair value less costs to sell. Losses arising from the initial foreclosure of property are charged against the ALL. | |||
Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than annually, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. | |||
Federal Home Loan Bank Stock (FHLB) – FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon on the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. | |||
Bank Owned Life Insurance (BOLI) – BOLI is recorded at its net cash surrender value. Changes in net cash surrender value are recognized in noninterest income in the Consolidated Statements of Operations. | |||
Real Estate Held for Investment – Real estate held for investment is initially recorded at fair value. Subsequently, the property is depreciated over its estimated useful life. Costs relating to development and improvement of properties are capitalized, whereas holding costs are expensed as incurred. | |||
Loan Servicing Rights (LSR) – Effective January 1, 2012, the Company adopted the fair value method for accounting for its LSR’s. This change represented a change in accounting principle and has been accounted for retrospectively by reflecting prior amortization as change in fair value. Because fair value was less than amortized cost and had been properly reserved through a valuation allowance, there was no cumulative impact of adopting the fair value option. | |||
The value of LSR’s are initially recognized as part of the fair value measurement of a derivative loan commitment. However, a separate LSR asset or liability is not recognized until the servicing rights have been contractually separated from the underlying loan by sale of the loan with servicing retained. The LSR is established at estimated fair value, which represents the present value of estimated future net servicing cash flows, considering expected loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on assumptions that a market participant would utilize. The expected rate of loan prepayments is the most significant factor driving the value of LSRs. Increases in mortgage loan prepayments reduce estimated future net servicing cash flows because the life of the underlying loan is reduced. In determining the estimated fair value of LSRs, interest rates, which are used to determine prepayment rates, are held constant over the estimated life of the portfolio. The Company periodically adjusts the recorded amount of its LSR’s to fair value as determined by a third party appraisal. | |||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSR’s are netted against loan servicing fee income and reported as Servicing income (expense), net in the Consolidated Statements of Operations. | |||
Derivative Financial Instruments – Interest Rate Lock Commitments and Forward Sale Contracts – In the normal course of business, we sell originated mortgage loans into the secondary mortgage loan market. We also offer interest rate lock commitments to potential borrowers. The commitments guarantee a specified interest rate for a loan if underwriting standards are met, but the commitment does not obligate the potential borrower to close on the loan. Accordingly, some commitments expire prior to becoming loans. We can encounter pricing risks if interest rates rise significantly before the loan can be closed and sold. As a result, forward sale contracts are utilized in order to mitigate this pricing risk. Whenever a customer desires an interest rate lock commitment, a mortgage originator quotes a secondary market rate guaranteed for that day by the investor. The interest rate lock is executed between the mortgagee and the Company and in turn a forward sale contract may be executed between the Company and an investor (generally FNMA). Both the interest rate lock commitment with the customer and the corresponding forward sale contract with the investor are considered derivatives, but are not accounted for using hedge accounting. As such, changes in the estimated fair value of the derivatives during the commitment period are recorded in current earnings and included in Mortgage banking income in the Consolidated Statements of Operations. The fair value of the interest rate lock commitments and forward sale contracts are recorded as assets or liabilities and included in Other assets and Other liabilities in the Consolidated Balance Sheets. | |||
Advertising Expense – Advertising costs are expensed as incurred. The Company’s advertising expenses were $0.3 million for each of the years ended December 31, 2014, 2013, and 2012. | |||
Income Taxes – We estimate income tax expense based on amounts expected to be owed to the tax jurisdictions where we conduct business. On a quarterly basis, management assesses the reasonableness of our effective tax rate based upon our current estimate of the amount and components of net income, tax credits and the applicable statutory tax rates expected for the full year. | |||
Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on management’s judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considered the following sources of taxable income: | |||
· | Future reversals of existing taxable temporary differences | ||
· | Future taxable income exclusive of reversing temporary differences and carry forwards | ||
· | Taxable income in prior carryback years | ||
· | Tax planning strategies that would, if necessary, be implemented | ||
As a result of the analysis above, the Company concluded that a valuation allowance was necessary as of December 31, 2014 and 2013, after consideration of certain tax planning strategies. | |||
Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current period’s income tax expense and can be significant to our operating results. | |||
Tax positions are 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 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||
Allowance for Unfunded Commitments – In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that we use for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The reserve is calculated by applying historical loss rates from our ALL model to the estimated future utilization of our unfunded commitments. The allowance for unfunded commitments is included in Other liabilities in the Consolidated Balance Sheets. | |||
Junior Subordinated Notes – The Trust is considered to be a variable interest entity since its common equity is not at risk. The Company does not hold a variable interest in the Trust, and therefore, is not considered to be the Trust’s primary beneficiary. As a result, the Company accounts for the junior subordinated notes issued to the Trust and its equity investment in the Trust on an unconsolidated basis. Debt issuance costs of the junior subordinated notes are being amortized over the term of the debt and amounted to $0.1 million as of December 31, 2014 and 2013. | |||
Segments – The Company operates and manages itself within one retail banking segment and has, therefore, not provided segment disclosures. | |||
Recently Issued Accounting Standards | |||
In January 2014, the Financial Accounting Standards Board (“FASB”) amended Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (OREO). In addition, the amendments require a creditor reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments will be effective for public companies for annual periods, and interim periods within those annual periods beginning after December 15, 2014, with early implementation of the guidance permitted. However, as an emerging growth company, the amendments will be effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company will apply the amendments prospectively. The Company does not expect these amendments to have a material effect on its financial statements. | |||
In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2016. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. | |||
In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from U.S. GAAP. Existing U.S. GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. | |||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
STOCK_CONVERSION_AND_CHANGE_IN
STOCK CONVERSION AND CHANGE IN CORPORATE FORM | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Equity [Abstract] | |||||
STOCK CONVERSION AND CHANGE IN CORPORATE FORM | NOTE 3. STOCK CONVERSION AND CHANGE IN CORPORATE FORM | ||||
On January 23, 2014, the Board of Directors of Macon Bancorp adopted a Plan of Conversion (the “Plan of Conversion”) which provided for the reorganization of Macon Bancorp from a North Carolina chartered mutual holding company into a stock holding company, Entegra Financial Corp., incorporated under the laws of the State of North Carolina (the “Conversion”). | |||||
In connection with the Conversion, the Company sold 6,546,375 shares of common stock at an offering price of $10.00 per share and received gross sales proceeds of $65.5 million. The Company recognized $1.8 million in reorganization and stock issuance costs which have been deducted from the gross sales proceeds. Of the $63.7 million in net sales proceeds, $44.6 million, or approximately 70%, was contributed to the capital of the Bank upon completion of the Conversion on September 30, 2014. | |||||
Common Stock Offering Summary | |||||
(Dollars in thousands) | |||||
Gross proceeds | $ | 65,464 | |||
Issuance costs | (1,813 | ) | |||
Net proceeds | $ | 63,651 | |||
Contributed to the Bank | $ | 44,581 | |||
Retained by the Company | 19,070 | ||||
$ | 63,651 | ||||
On September 30, 2014, liquidation accounts were established by the Company and the Bank for the benefit of eligible depositors of the Bank as defined in the Plan of Conversion. Each eligible depositor will have a pro rata interest in the liquidation accounts for each of his or her deposit accounts based upon the proportion that the balance of each such account bears to the balance of all deposit accounts of the Bank as of the dates specified in the Plan of Conversion. The liquidation accounts will be maintained for the benefit of eligible depositors who continue to maintain their deposit accounts in the Bank. The liquidation accounts will be reduced annually to the extent that eligible depositors reduce their qualifying deposits. In the unlikely event of a complete liquidation of the Bank or the Company or both, and only in such event, eligible depositors who continue to maintain accounts will be entitled to receive a distribution from the liquidation accounts before any distribution may be made with respect to common stock. Neither the Company nor the Bank may declare or pay a cash dividend if the effect thereof would cause its equity to be reduced below either the amount required for the liquidation accounts or the regulatory capital requirements imposed by the Company’s or the Bank’s regulators. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
INVESTMENT SECURITIES | NOTE 4. INVESTMENT SECURITIES | ||||||||||||||||||||||||
The amortized cost and estimated fair values of securities available for sale are summarized as follows: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 39,540 | $ | 65 | $ | (123 | ) | $ | 39,482 | ||||||||||||||||
Municipal securities | 25,483 | 225 | (150 | ) | 25,558 | ||||||||||||||||||||
Mortgage-backed securities | 153,128 | 643 | (1,053 | ) | 152,718 | ||||||||||||||||||||
U.S. Treasury securities | 1,500 | 10 | — | 1,510 | |||||||||||||||||||||
Mutual funds | 590 | 1 | — | 591 | |||||||||||||||||||||
$ | 220,241 | $ | 944 | $ | (1,326 | ) | $ | 219,859 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 22,977 | $ | — | $ | (1,078 | ) | $ | 21,899 | ||||||||||||||||
Municipal securities | 26,963 | 114 | (1,475 | ) | 25,602 | ||||||||||||||||||||
Mortgage-backed securities | 110,431 | 574 | (3,590 | ) | 107,415 | ||||||||||||||||||||
Mutual funds | 576 | — | (8 | ) | 568 | ||||||||||||||||||||
$ | 160,947 | $ | 688 | $ | (6,151 | ) | $ | 155,484 | |||||||||||||||||
The amortized cost and estimated fair values of securities held to maturity (“HTM”) are summarized as follows: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 23,193 | $ | 1,420 | $ | (5 | ) | $ | 24,608 | ||||||||||||||||
Municipal securities | 4,392 | 190 | — | 4,582 | |||||||||||||||||||||
Trust preferred securities | 1,000 | — | — | 1,000 | |||||||||||||||||||||
Corporate debt securities | 700 | — | — | 700 | |||||||||||||||||||||
$ | 29,285 | $ | 1,610 | $ | (5 | ) | $ | 30,890 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 20,988 | $ | — | $ | (890 | ) | $ | 20,098 | ||||||||||||||||
During the years ended December 31, 2014 and 2013, the Company transferred the following investment securities from available for sale to held to maturity: | |||||||||||||||||||||||||
At Date of Transfer | |||||||||||||||||||||||||
During the Year Ended | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Book value | $ | 4,473 | |||||||||||||||||||||||
Market value | 4,399 | ||||||||||||||||||||||||
Unrealized loss | $ | 74 | |||||||||||||||||||||||
At Date of Transfer | |||||||||||||||||||||||||
During the Year Ended | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Book value | $ | 23,000 | |||||||||||||||||||||||
Market value | 20,954 | ||||||||||||||||||||||||
Unrealized loss | $ | 2,046 | |||||||||||||||||||||||
Information pertaining to the activity of unrealized losses related to HTM securities previously recognized in other comprehensive income (“OCI”) is summarized below: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning unrealized loss in OCI related to HTM securities previously recognized in OCI | $ | 2,012 | $ | — | $ | — | |||||||||||||||||||
Additions for transfers to HTM | 74 | 2,046 | — | ||||||||||||||||||||||
Amortization of unrealized losses on HTM securities previously recognized in OCI | (199 | ) | (34 | ) | — | ||||||||||||||||||||
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI | $ | 1,887 | $ | 2,012 | $ | — | |||||||||||||||||||
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: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
U.S. government agencies | $ | 1,995 | $ | 5 | $ | — | $ | — | $ | 1,995 | $ | 5 | |||||||||||||
$ | 1,995 | $ | 5 | $ | — | $ | — | $ | 1,995 | $ | 5 | ||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | 14,472 | $ | 15 | $ | 7,893 | $ | 108 | $ | 22,365 | $ | 123 | |||||||||||||
Municipal securities | 4,306 | 49 | 8,409 | 101 | 12,715 | 150 | |||||||||||||||||||
Mortgage-backed securities | 38,563 | 217 | 46,204 | 836 | 84,767 | 1,053 | |||||||||||||||||||
$ | 57,341 | $ | 281 | $ | 62,506 | $ | 1,045 | $ | 119,847 | $ | 1,326 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
U.S. government agencies | $ | 20,098 | $ | 890 | $ | — | $ | — | $ | 20,098 | $ | 890 | |||||||||||||
$ | 20,098 | $ | 890 | $ | — | $ | — | $ | 20,098 | $ | 890 | ||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,899 | $ | 1,078 | $ | — | $ | — | $ | 21,899 | $ | 1,078 | |||||||||||||
Municipal securities | 18,653 | 1,201 | 2,409 | 274 | 21,062 | 1,475 | |||||||||||||||||||
Mortgage-backed securities | 73,836 | 2,655 | 9,926 | 935 | 83,762 | 3,590 | |||||||||||||||||||
Mutual funds | 568 | 8 | — | — | 568 | 8 | |||||||||||||||||||
$ | 114,956 | $ | 4,942 | $ | 12,335 | $ | 1,209 | $ | 127,291 | $ | 6,151 | ||||||||||||||
Information pertaining to the number of securities with unrealized losses is detailed in the table below. Management of the Company believes all unrealized losses as of December 31, 2014 and 2013 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
U.S. government agencies | 11 | 3 | 14 | ||||||||||||||||||||||
Municipal securities | 9 | 19 | 28 | ||||||||||||||||||||||
Mortgage-backed securities | 26 | 27 | 53 | ||||||||||||||||||||||
46 | 49 | 95 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
U.S. government agencies | 17 | — | 17 | ||||||||||||||||||||||
Municipal securities | 43 | 5 | 48 | ||||||||||||||||||||||
Mortgage-backed securities | 40 | 8 | 48 | ||||||||||||||||||||||
Mutual funds | 1 | — | 1 | ||||||||||||||||||||||
101 | 13 | 114 | |||||||||||||||||||||||
The Company received proceeds from sales of securities available for sale and corresponding gross realized gains and losses as follows: | |||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Gross proceeds | $ | 19,170 | $ | 36,404 | $ | 147,826 | |||||||||||||||||||
Gross realized gains | 680 | 522 | 3,321 | ||||||||||||||||||||||
Gross realized losses | — | 164 | 27 | ||||||||||||||||||||||
The Company had securities pledged against deposits of approximately $10.7 million and $6.8 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The amortized cost and estimated fair value of investments in debt securities at December 31, 2014, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Over 1 year through 5 years | $ | 26,233 | $ | 26,214 | |||||||||||||||||||||
After 5 years through 10 years | 20,543 | 20,472 | |||||||||||||||||||||||
Over 10 years | 20,337 | 20,455 | |||||||||||||||||||||||
67,113 | 67,141 | ||||||||||||||||||||||||
Mortgage-backed securities | 153,128 | 152,718 | |||||||||||||||||||||||
Total | $ | 220,241 | $ | 219,859 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
After 5 years through 10 years | $ | 2,909 | $ | 2,913 | |||||||||||||||||||||
Over 10 years | 26,376 | 27,977 | |||||||||||||||||||||||
Total | $ | 29,285 | $ | 30,890 |
LOANS_RECEIVABLE
LOANS RECEIVABLE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Receivables [Abstract] | |||||||||||||
LOANS RECEIVABLE | NOTE 5. LOANS RECEIVABLE | ||||||||||||
Loans receivable balances are summarized as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Real estate mortgage loans: | |||||||||||||
One-to four-family residential | $ | 227,209 | $ | 225,520 | |||||||||
Commercial real estate | 179,435 | 155,633 | |||||||||||
Home equity loans and lines of credit | 56,561 | 56,836 | |||||||||||
Residential construction | 7,823 | 8,952 | |||||||||||
Other construction and land | 50,298 | 64,927 | |||||||||||
Total real estate loans | 521,326 | 511,868 | |||||||||||
Commercial and industrial | 19,135 | 8,285 | |||||||||||
Consumer | 3,200 | 3,654 | |||||||||||
Total commercial and consumer | 22,335 | 11,939 | |||||||||||
Loans receivable, gross | 543,661 | 523,807 | |||||||||||
Less: Net deferred loan fees | (1,695 | ) | (1,933 | ) | |||||||||
Unamortized discount | (1,487 | ) | — | ||||||||||
Loans receivable, net | $ | 540,479 | $ | 521,874 | |||||||||
The Bank had $117.9 million and $107.1 million of loans pledged as collateral to secure funding with the Federal Home Loan Bank of Atlanta (“FHLB”) at December 31, 2014 and 2013, respectively. The Bank also had $92.8 million and $97.7 million of loans pledged as collateral to secure funding with the Federal Reserve Bank (“FRB”) Discount Window at December 31, 2014 and 2013, respectively. | |||||||||||||
During January 2014, the Bank purchased the remaining participation balance of certain commercial real estate loans from the Federal Deposit Insurance Corporation (“FDIC”). The Bank had previously purchased a 50% participation in the loans from an institution that was subsequently taken into receivership by the FDIC. At the date of purchase, the outstanding loan balance purchased was $9.3 million and the loans were purchased at a total discount of $2.6 million. The loans were not deemed to be impaired at the time of purchase. Subsequent to the transaction, $2.8 million of the participation balance purchased was repaid, resulting in the Bank recognizing approximately $0.6 million of the initial discount, in addition to recognizing $0.3 million of previously collected but deferred interest. In addition, the Bank restructured a $1.8 million loan in the second quarter of 2014 and recognized $0.2 million of the discount in interest income. | |||||||||||||
The following table presents the activity related to the discount on purchased loans: | |||||||||||||
For the Year Ended December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Discount on purchased loans, beginning of period | $ | — | $ | — | $ | — | |||||||
Additional discount for new purchases | 2,607 | — | — | ||||||||||
Accretion | (365 | ) | — | ||||||||||
Interest income recognized for repayments and restructurings | (755 | ) | — | — | |||||||||
Discount on purchased loans, end of period | $ | 1,487 | $ | — | $ | — | |||||||
The aggregate amount of extensions of credit to executive officers and directors made in the ordinary course of business as of and for the years ended December 31 is detailed in the table below: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning of year | $ | 9,827 | $ | 10,565 | |||||||||
New loans | 1,695 | 1,122 | |||||||||||
Repayments | (2,215 | ) | (1,860 | ) | |||||||||
End of year | $ | 9,307 | $ | 9,827 |
ALLOWANCE_FOR_LOAN_LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | NOTE 6. ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||||||||||||
The following tables present, by portfolio segment, the activity in the allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | |||||||||||||||||||
Provision | (201 | ) | 408 | 310 | 9 | (232 | ) | (58 | ) | (203 | ) | 33 | |||||||||||||||||||||||
Charge-offs | 702 | 2,415 | 598 | — | 566 | 133 | 140 | 4,554 | |||||||||||||||||||||||||||
Recoveries | 193 | 364 | 41 | — | 218 | 163 | 363 | 1,342 | |||||||||||||||||||||||||||
Ending balance | $ | 2,983 | $ | 2,717 | $ | 1,333 | $ | 510 | $ | 2,936 | $ | 308 | $ | 285 | $ | 11,072 | |||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,620 | $ | 2,973 | $ | 2,002 | $ | 429 | $ | 4,059 | $ | 379 | $ | 412 | $ | 14,874 | |||||||||||||||||||
Provision | (77 | ) | 3,471 | 316 | 154 | 430 | (57 | ) | 121 | 4,358 | |||||||||||||||||||||||||
Charge-offs | 1,283 | 2,209 | 760 | 193 | 1,512 | 17 | 675 | 6,649 | |||||||||||||||||||||||||||
Recoveries | 433 | 125 | 22 | 111 | 539 | 31 | 407 | 1,668 | |||||||||||||||||||||||||||
Ending balance | $ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | |||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,571 | $ | 4,338 | $ | 1,562 | $ | 397 | $ | 5,456 | $ | 300 | $ | 86 | $ | 16,710 | |||||||||||||||||||
Provision | 2,081 | 236 | 1,950 | 372 | 2,112 | 250 | 877 | 7,878 | |||||||||||||||||||||||||||
Charge-offs | 2,511 | 1,850 | 1,617 | 391 | 4,151 | 295 | 821 | 11,636 | |||||||||||||||||||||||||||
Recoveries | 479 | 249 | 107 | 51 | 642 | 124 | 270 | 1,922 | |||||||||||||||||||||||||||
Ending balance | $ | 4,620 | $ | 2,973 | $ | 2,002 | $ | 429 | $ | 4,059 | $ | 379 | $ | 412 | $ | 14,874 | |||||||||||||||||||
The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: | |||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 719 | $ | 235 | $ | 14 | $ | — | $ | 705 | $ | 3 | $ | — | $ | 1,676 | |||||||||||||||||||
Collectively evaluated for impairment | 2,264 | 2,482 | 1,319 | 510 | 2,231 | 305 | 285 | 9,396 | |||||||||||||||||||||||||||
$ | 2,983 | $ | 2,717 | $ | 1,333 | $ | 510 | $ | 2,936 | $ | 308 | $ | 285 | $ | 11,072 | ||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 9,912 | $ | 17,828 | $ | 1,686 | $ | — | $ | 3,911 | $ | 328 | $ | — | $ | 33,665 | |||||||||||||||||||
Collectively evaluated for impairment | 217,297 | 161,607 | 54,875 | 7,823 | 46,387 | 18,807 | 3,200 | 509,996 | |||||||||||||||||||||||||||
$ | 227,209 | $ | 179,435 | $ | 56,561 | $ | 7,823 | $ | 50,298 | $ | 19,135 | $ | 3,200 | $ | 543,661 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,152 | $ | 2,329 | $ | 168 | $ | — | $ | 318 | $ | 101 | $ | — | $ | 4,068 | |||||||||||||||||||
Collectively evaluated for impairment | 2,541 | 2,031 | 1,412 | 501 | 3,198 | 235 | 265 | 10,183 | |||||||||||||||||||||||||||
$ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | ||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 9,865 | $ | 20,943 | $ | 1,612 | $ | — | $ | 7,119 | $ | 531 | $ | — | $ | 40,070 | |||||||||||||||||||
Collectively evaluated for impairment | 215,655 | 134,690 | 55,224 | 8,952 | 57,808 | 7,754 | 3,654 | 483,737 | |||||||||||||||||||||||||||
$ | 225,520 | $ | 155,633 | $ | 56,836 | $ | 8,952 | $ | 64,927 | $ | 8,285 | $ | 3,654 | $ | 523,807 | ||||||||||||||||||||
Portfolio Quality Indicators | |||||||||||||||||||||||||||||||||||
The Company’s portfolio grading analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled. The Company’s internal credit risk grading system is based on experiences with similarly graded loans, industry best practices, and regulatory guidance. Credit risk grades are refreshed each quarter, at which time management analyzes the resulting information, as well as other external statistics and factors, to track loan performance. | |||||||||||||||||||||||||||||||||||
The Company’s internally assigned grades pursuant to the Board-approved lending policy are as follows: | |||||||||||||||||||||||||||||||||||
· Pass (1-5) – Acceptable loans with any identifiable weaknesses appropriately mitigated. | |||||||||||||||||||||||||||||||||||
· Special Mention (6) – Potential weakness or identifiable weakness present without appropriate mitigating factors; however, loan continues to perform satisfactorily with no material delinquency noted. This may include some deterioration in repayment capacity and/or loan-to-value of securing collateral. | |||||||||||||||||||||||||||||||||||
· Substandard (7) – Significant weakness that remains unmitigated, most likely due to diminished repayment capacity, serious delinquency, and/or marginal performance based upon restructured loan terms. | |||||||||||||||||||||||||||||||||||
· Doubtful (8) – Significant weakness that remains unmitigated and collection in full is highly questionable or improbable. | |||||||||||||||||||||||||||||||||||
· Loss (9) – Collectability is unlikely resulting in immediate charge-off. | |||||||||||||||||||||||||||||||||||
Description of segment and class risks | |||||||||||||||||||||||||||||||||||
Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. | |||||||||||||||||||||||||||||||||||
One-to four family residential | |||||||||||||||||||||||||||||||||||
We centrally underwrite each of our one-to four family residential loans using credit scoring and analytical tools consistent with the Board-approved lending policy and internal procedures based upon industry best practices and regulatory directives. Loans to be sold to secondary market investors must also adhere to investor guidelines. We also evaluate the value and marketability of that collateral. Common risks to each class of non-commercial loans, including one-to-four family residential, include risks that are not specific to individual transactions such as general economic conditions within our markets, particularly unemployment and potential declines in real estate values. Personal events such as death, disability or change in marital status also add risk to non-commercial loans. | |||||||||||||||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||||||||
Commercial mortgage loans are primarily dependent on the ability of our customers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customer’s business results are significantly unfavorable versus the original projections, the ability for our loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans are secured by real property and possibly other business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in our customer having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans are highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. | |||||||||||||||||||||||||||||||||||
Home equity and lines of credit | |||||||||||||||||||||||||||||||||||
Home equity loans are often secured by first or second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render our second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lienholders that may further weaken our collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. | |||||||||||||||||||||||||||||||||||
Residential construction and other construction and land | |||||||||||||||||||||||||||||||||||
Residential mortgage construction loans are typically secured by undeveloped or partially developed land with funds to be disbursed as home construction is completed contingent upon receipt and satisfactory review of invoices and inspections. Declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the collateral’s current market value. Non-commercial construction and land development loans can experience delays in completion and/or cost overruns that exceed the borrower’s financial ability to complete the project. Cost overruns can result in foreclosure of partially completed collateral with unrealized value and diminished marketability. Commercial construction and land development loans are dependent on the supply and demand for commercial real estate in the markets we serve as well as the demand for newly constructed residential homes and building lots. Deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for our customers. | |||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||
We centrally underwrite each of our commercial loans based primarily upon the customer’s ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. We strive to gain a complete understanding of our borrower’s businesses including the experience and background of the principals. To the extent that the loan is secured by collateral, which is a predominant feature of the majority of our commercial loans, or other assets including accounts receivable and inventory, we gain an understanding of the likely value of the collateral and what level of strength it brings to the loan transaction. To the extent that the principals or other parties are obligated under the note or guaranty agreements, we analyze the relative financial strength and liquidity of each guarantor. Common risks to each class of commercial loans include risks that are not specific to individual transactions such as general economic conditions within our markets, as well as risks that are specific to each transaction including volatility or seasonality of cash flows, changing demand for products and services, personal events such as death, disability or change in marital status, and reductions in the value of our collateral. | |||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||
The consumer loan portfolio includes loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. | |||||||||||||||||||||||||||||||||||
The following tables present the recorded investment in gross loans by loan grade: | |||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
Loan Grade | One-to Four-Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
1 | $ | — | $ | 68 | $ | — | $ | — | $ | — | $ | 2,511 | $ | 20 | $ | 2,599 | |||||||||||||||||||
2 | — | — | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||
3 | 63,065 | 14,356 | 5,978 | 690 | 5,154 | 483 | 454 | 90,180 | |||||||||||||||||||||||||||
4 | 58,948 | 37,349 | 10,424 | 2,327 | 9,027 | 2,917 | 419 | 121,411 | |||||||||||||||||||||||||||
5 | 44,445 | 90,397 | 10,486 | 3,048 | 21,024 | 6,399 | 179 | 175,978 | |||||||||||||||||||||||||||
6 | 5,714 | 21,232 | 882 | 574 | 2,451 | 429 | 1 | 31,283 | |||||||||||||||||||||||||||
7 | 7,400 | 14,139 | 1,568 | — | 5,404 | 555 | — | 29,066 | |||||||||||||||||||||||||||
$ | 179,572 | $ | 177,541 | $ | 29,338 | $ | 6,639 | $ | 43,060 | $ | 13,394 | $ | 1,073 | $ | 450,617 | ||||||||||||||||||||
Ungraded Loan Exposure: | |||||||||||||||||||||||||||||||||||
Performing | $ | 46,247 | $ | 1,736 | $ | 26,864 | $ | 1,119 | $ | 7,073 | $ | 5,741 | $ | 2,125 | $ | 90,905 | |||||||||||||||||||
Nonperforming | 1,390 | 158 | 359 | 65 | 165 | — | 2 | 2,139 | |||||||||||||||||||||||||||
Subtotal | $ | 47,637 | $ | 1,894 | $ | 27,223 | $ | 1,184 | $ | 7,238 | $ | 5,741 | $ | 2,127 | $ | 93,044 | |||||||||||||||||||
Total | $ | 227,209 | $ | 179,435 | $ | 56,561 | $ | 7,823 | $ | 50,298 | $ | 19,135 | $ | 3,200 | $ | 543,661 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Loan Grade | One-to Four-Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 176 | $ | — | $ | 176 | |||||||||||||||||||
2 | — | — | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||
3 | 73,574 | 11,960 | 6,720 | 607 | 6,241 | 598 | 477 | 100,177 | |||||||||||||||||||||||||||
4 | 64,548 | 28,164 | 12,250 | 2,670 | 14,489 | 1,000 | 231 | 123,352 | |||||||||||||||||||||||||||
5 | 41,272 | 72,975 | 11,625 | 1,555 | 25,926 | 4,232 | 855 | 158,440 | |||||||||||||||||||||||||||
6 | 10,362 | 18,167 | 1,578 | 1,723 | 4,331 | 1,495 | 14 | 37,670 | |||||||||||||||||||||||||||
7 | 10,503 | 24,346 | 1,953 | — | 9,626 | 590 | 1 | 47,019 | |||||||||||||||||||||||||||
$ | 200,259 | $ | 155,612 | $ | 34,126 | $ | 6,555 | $ | 60,613 | $ | 8,191 | $ | 1,578 | $ | 466,934 | ||||||||||||||||||||
Ungraded Loan Exposure: | |||||||||||||||||||||||||||||||||||
Performing | $ | 25,261 | $ | 21 | $ | 22,710 | $ | 2,397 | $ | 4,314 | $ | 94 | $ | 2,076 | $ | 56,873 | |||||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal | $ | 25,261 | $ | 21 | $ | 22,710 | $ | 2,397 | $ | 4,314 | $ | 94 | $ | 2,076 | $ | 56,873 | |||||||||||||||||||
Total | $ | 225,520 | $ | 155,633 | $ | 56,836 | $ | 8,952 | $ | 64,927 | $ | 8,285 | $ | 3,654 | $ | 523,807 | |||||||||||||||||||
Delinquency Analysis of Loans by Class | |||||||||||||||||||||||||||||||||||
The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. | |||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 6,298 | $ | 448 | $ | 2,669 | $ | 9,415 | $ | 217,794 | $ | 227,209 | |||||||||||||||||||||||
Commercial real estate | 2,136 | 909 | 1,006 | 4,051 | 175,384 | 179,435 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 557 | 528 | 759 | 1,844 | 54,717 | 56,561 | |||||||||||||||||||||||||||||
Residential construction | — | — | 65 | 65 | 7,758 | 7,823 | |||||||||||||||||||||||||||||
Other construction and land | 1,530 | 964 | 473 | 2,967 | 47,331 | 50,298 | |||||||||||||||||||||||||||||
Commercial | — | 22 | — | 22 | 19,113 | 19,135 | |||||||||||||||||||||||||||||
Consumer | 247 | 4 | 1 | 252 | 2,948 | 3,200 | |||||||||||||||||||||||||||||
Total | $ | 10,768 | $ | 2,875 | $ | 4,973 | $ | 18,616 | $ | 525,045 | $ | 543,661 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,539 | $ | 669 | $ | 2,587 | $ | 8,795 | $ | 216,725 | $ | 225,520 | |||||||||||||||||||||||
Commercial real estate | 4,746 | 53 | 722 | 5,521 | 150,112 | 155,633 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 313 | 29 | 350 | 692 | 56,144 | 56,836 | |||||||||||||||||||||||||||||
Residential construction | 120 | — | — | 120 | 8,832 | 8,952 | |||||||||||||||||||||||||||||
Other construction and land | 499 | 185 | 970 | 1,654 | 63,273 | 64,927 | |||||||||||||||||||||||||||||
Commercial | — | 35 | — | 35 | 8,250 | 8,285 | |||||||||||||||||||||||||||||
Consumer | 18 | 9 | — | 27 | 3,627 | 3,654 | |||||||||||||||||||||||||||||
Total | $ | 11,235 | $ | 980 | $ | 4,629 | $ | 16,844 | $ | 506,963 | $ | 523,807 | |||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||||
The following table presents investments in loans considered to be impaired and related information on those impaired loans: | |||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Recorded Balance | Unpaid Principal Balance | Specific Allowance | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loans without a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,943 | $ | 6,096 | $ | — | $ | 4,158 | $ | 4,539 | $ | — | |||||||||||||||||||||||
Commercial real estate | 14,231 | 16,515 | — | 8,567 | 9,518 | — | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,537 | 1,912 | — | 1,102 | 1,262 | — | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 1,901 | 2,579 | — | 5,455 | 6,464 | — | |||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||||
$ | 23,612 | $ | 27,102 | $ | — | $ | 19,282 | $ | 21,783 | $ | — | ||||||||||||||||||||||||
Loans with a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 3,969 | $ | 4,028 | $ | 719 | $ | 5,707 | $ | 5,707 | $ | 1,152 | |||||||||||||||||||||||
Commercial real estate | 3,597 | 3,745 | 235 | 12,376 | 12,376 | 2,329 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 149 | 149 | 14 | 510 | 510 | 168 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 2,010 | 2,010 | 705 | 1,664 | 1,664 | 318 | |||||||||||||||||||||||||||||
Commercial | 328 | 328 | 3 | 531 | 531 | 101 | |||||||||||||||||||||||||||||
$ | 10,053 | $ | 10,260 | $ | 1,676 | $ | 20,788 | $ | 20,788 | $ | 4,068 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 9,912 | $ | 10,124 | $ | 719 | $ | 9,865 | $ | 10,246 | $ | 1,152 | |||||||||||||||||||||||
Commercial real estate | 17,828 | 20,260 | 235 | 20,943 | 21,894 | 2,329 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,686 | 2,061 | 14 | 1,612 | 1,772 | 168 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 3,911 | 4,589 | 705 | 7,119 | 8,128 | 318 | |||||||||||||||||||||||||||||
Commercial | 328 | 328 | 3 | 531 | 531 | 101 | |||||||||||||||||||||||||||||
$ | 33,665 | $ | 37,362 | $ | 1,676 | $ | 40,070 | $ | 42,571 | $ | 4,068 | ||||||||||||||||||||||||
The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loans without a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 6,079 | $ | 242 | $ | 4,586 | $ | 160 | $ | 1,856 | $ | 69 | |||||||||||||||||||||||
Commercial real estate | 14,255 | 664 | 9,610 | 527 | 6,653 | 318 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,728 | 53 | 1,255 | 46 | 1,267 | 46 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 740 | 25 | |||||||||||||||||||||||||||||
Other construction and land | 2,332 | 70 | 6,490 | 528 | 7,607 | 110 | |||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||||
$ | 24,394 | $ | 1,029 | $ | 21,941 | $ | 1,261 | $ | 18,123 | $ | 568 | ||||||||||||||||||||||||
Loans with a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 4,048 | $ | 137 | $ | 5,664 | $ | 221 | $ | 7,516 | $ | 276 | |||||||||||||||||||||||
Commercial real estate | 3,715 | 152 | 3,660 | 161 | 9,552 | 796 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 149 | 6 | 511 | 19 | 248 | 12 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 2,042 | 81 | 937 | 40 | 2,550 | 111 | |||||||||||||||||||||||||||||
Commercial | 334 | 20 | 347 | 21 | 359 | 22 | |||||||||||||||||||||||||||||
$ | 10,288 | $ | 396 | $ | 11,119 | $ | 462 | $ | 20,225 | $ | 1,217 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 10,127 | $ | 379 | $ | 10,250 | $ | 381 | $ | 9,372 | $ | 345 | |||||||||||||||||||||||
Commercial real estate | 17,970 | 816 | 13,270 | 688 | 16,205 | 1,114 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,877 | 59 | 1,766 | 65 | 1,515 | 58 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 740 | 25 | |||||||||||||||||||||||||||||
Other construction and land | 4,374 | 151 | 7,427 | 568 | 10,157 | 221 | |||||||||||||||||||||||||||||
Commercial | 334 | 20 | 347 | 21 | 359 | 22 | |||||||||||||||||||||||||||||
$ | 34,682 | $ | 1,425 | $ | 33,060 | $ | 1,723 | $ | 38,348 | $ | 1,785 | ||||||||||||||||||||||||
Nonperforming Loans | |||||||||||||||||||||||||||||||||||
The following table summarizes the balances of nonperforming loans. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. | |||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,661 | $ | 2,794 | |||||||||||||||||||||||||||||||
Commercial real estate | 7,011 | 10,212 | |||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 1,347 | 350 | |||||||||||||||||||||||||||||||||
Residential construction | 65 | — | |||||||||||||||||||||||||||||||||
Other construction and land | 2,679 | 2,068 | |||||||||||||||||||||||||||||||||
Commercial | 15 | 190 | |||||||||||||||||||||||||||||||||
Consumer | 2 | 13 | |||||||||||||||||||||||||||||||||
Non-performing loans | $ | 16,780 | $ | 15,627 | |||||||||||||||||||||||||||||||
Troubled Debt Restructurings (TDR) | |||||||||||||||||||||||||||||||||||
The following tables summarize TDR loans as of the dates indicated: | |||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||||||||
TDR’s | TDR’s | TDR’s | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to-four family residential | $ | 5,760 | $ | 715 | $ | 6,475 | |||||||||||||||||||||||||||||
Commercial real estate | 10,710 | 3,797 | 14,507 | ||||||||||||||||||||||||||||||||
Home equity and lines of credit | 443 | — | 443 | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||||||||||||||||
Other construction and land | 1,519 | 672 | 2,191 | ||||||||||||||||||||||||||||||||
Commercial | 328 | 16 | 344 | ||||||||||||||||||||||||||||||||
$ | 18,760 | $ | 5,200 | $ | 23,960 | ||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||||||||
TDR’s | TDR’s | TDR’s | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to-four family residential | $ | 5,786 | $ | 643 | $ | 6,429 | |||||||||||||||||||||||||||||
Commercial real estate | 10,690 | 694 | 11,384 | ||||||||||||||||||||||||||||||||
Home equity and lines of credit | 510 | — | 510 | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||||||||||||||||
Other construction and land | 5,688 | 638 | 6,326 | ||||||||||||||||||||||||||||||||
Commercial | 341 | — | 341 | ||||||||||||||||||||||||||||||||
$ | 23,015 | $ | 1,975 | $ | 24,990 | ||||||||||||||||||||||||||||||
Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to-four family residential | 3 | $ | 487 | $ | 404 | ||||||||||||||||||||||||||||||
Commercial real estate | 1 | 280 | 280 | ||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 1 | 50 | 40 | ||||||||||||||||||||||||||||||||
Other construction and land | 1 | 151 | 151 | ||||||||||||||||||||||||||||||||
6 | $ | 968 | $ | 875 | |||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
Other construction and land | 2 | $ | 720 | 596 | |||||||||||||||||||||||||||||||
Commercial real estate | 7 | 6,770 | 5,332 | ||||||||||||||||||||||||||||||||
Commercial | 1 | 18 | 12 | ||||||||||||||||||||||||||||||||
10 | $ | 7,508 | $ | 5,940 | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to four-family residential | 3 | $ | 486 | $ | 397 | ||||||||||||||||||||||||||||||
Commercial real estate | 2 | 1,802 | 1,609 | ||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 2 | 263 | 144 | ||||||||||||||||||||||||||||||||
7 | $ | 2,551 | $ | 2,150 | |||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
One-to four-family residential | 1 | $ | 199 | $ | 157 | ||||||||||||||||||||||||||||||
Commercial real estate | 1 | 478 | 215 | ||||||||||||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||||||||||||
2 | $ | 677 | $ | 372 | |||||||||||||||||||||||||||||||
The following table summarizes TDRs that defaulted during the years ended December 31, 2014 and 2013 and which were modified as TDRs within the previous 12 months. | |||||||||||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to-four family residential | 1 | $ | 135 | — | $ | — | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1 | 50 | — | — | |||||||||||||||||||||||||||||||
Other construction and land | — | — | 1 | 364 | |||||||||||||||||||||||||||||||
2 | $ | 185 | 1 | $ | 364 | ||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 215 | — | $ | — |
CONCENTRATIONS_OF_CREDIT_RISK
CONCENTRATIONS OF CREDIT RISK | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Risks and Uncertainties [Abstract] | |||||||||
CONCENTRATIONS OF CREDIT RISK | NOTE 7. CONCENTRATIONS OF CREDIT RISK | ||||||||
A substantial portion of the Company’s loan portfolio is represented by loans in western North Carolina, northern Georgia, and upstate South Carolina. The capacity and willingness of the Company’s debtors to honor their contractual obligations is dependent upon general economic conditions and the health of the real estate market within its general lending area. The majority of the Company’s loans, commitments, and lines of credit have been granted to customers in its primary market area and substantially all of these instruments are collateralized by real estate or other assets. | |||||||||
The Company, as a matter of policy, does not extend credit to any single borrower or group of related borrowers in excess of its legal lending limit which was $17.5 million at December 31, 2014 and $10.4 million at December 31, 2013. | |||||||||
The Company’s loans were concentrated in the following categories: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
One-to four-family residential | 41.8 | % | 43 | % | |||||
Commercial real estate | 33 | 29.7 | |||||||
Home equity and lines of credit | 10.4 | 10.9 | |||||||
Residential construction | 1.4 | 1.7 | |||||||
Other construction and land | 9.3 | 12.4 | |||||||
Commercial | 3.5 | 1.6 | |||||||
Consumer | 0.6 | 0.7 | |||||||
Total loans | 100 | % | 100 | % |
FIXED_ASSETS
FIXED ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
FIXED ASSETS | NOTE 8. FIXED ASSETS | ||||||||
Fixed assets are summarized as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and improvements | $ | 7,035 | $ | 7,032 | |||||
Buildings | 13,079 | 12,756 | |||||||
Furniture, fixtures, and equipment | 7,643 | 7,571 | |||||||
Construction in process | 63 | 102 | |||||||
Total fixed assets | 27,820 | 27,461 | |||||||
Less accumulated depreciation | (14,816 | ) | (14,455 | ) | |||||
Fixed assets, net | $ | 13,004 | $ | 13,006 | |||||
Depreciation and leasehold amortization expense was $0.9 million, $0.8 million, and $0.8 million for the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||
The Bank has entered into operating leases in connection with its retail branch operations. These leases expire at various dates through April, 2017. Total rental expense was approximately $0.1 million for the each of the years ended December 31, 2014, 2013 and 2012. | |||||||||
Following is a schedule of approximate annual future minimum lease payments under operating leases that have initial or remaining lease terms in excess of one year: | |||||||||
2015 | $ | 128 | |||||||
2016 | 58 | ||||||||
2017 | 16 | ||||||||
Total minimum lease commitments | $ | 202 |
REAL_ESTATE_OWNED
REAL ESTATE OWNED | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Banking and Thrift [Abstract] | |||||||||||||
REAL ESTATE OWNED | NOTE 9. REAL ESTATE OWNED | ||||||||||||
The following tables summarizes real estate owned and changes in the valuation allowance for real estate owned as of and for the periods indicated: | |||||||||||||
As of December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||
Real estate owned, gross | $ | 6,185 | $ | 16,066 | |||||||||
Less: Valuation allowance | 1,760 | 5,560 | |||||||||||
Real estate owned, net | $ | 4,425 | $ | 10,506 | |||||||||
Year Ended December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Valuation allowance, beginning | $ | 5,560 | $ | 3,635 | $ | 4,523 | |||||||
Provision charged to expense | 2,349 | 4,093 | 2,089 | ||||||||||
Reduction due to disposal | (6,149 | ) | (2,168 | ) | (2,977 | ) | |||||||
Valuation allowance, ending | $ | 1,760 | $ | 5,560 | $ | 3,635 |
INTEREST_RECEIVABLE
INTEREST RECEIVABLE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Income and Expenses [Abstract] | |||||||||
INTEREST RECEIVABLE | NOTE 10. INTEREST RECEIVABLE | ||||||||
Interest receivable consists of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Loans receivable | $ | 1,825 | $ | 1,876 | |||||
Investments | 1,100 | 797 | |||||||
Total interest receivable | $ | 2,925 | $ | 2,673 |
BANK_OWNED_LIFE_INSURANCE_BOLI
BANK OWNED LIFE INSURANCE (BOLI) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Investments, All Other Investments [Abstract] | |||||||||
BANK OWNED LIFE INSURANCE (BOLI) | NOTE 11. BANK OWNED LIFE INSURANCE (BOLI) | ||||||||
The following table summarizes the composition of our BOLI: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Separate account | $ | 12,194 | $ | 11,983 | |||||
General account | 7,410 | 7,188 | |||||||
Hybrid | 813 | 790 | |||||||
Total | $ | 20,417 | $ | 19,961 | |||||
The assets of the separate account BOLI are invested in the PIMCO Mortgage-backed Securities Account which is composed primarily of Treasury and Agency mortgage-backed securities with a rating of Aaa and repurchase agreements with a rating of P-1. |
REAL_ESTATE_HELD_FOR_INVESTMEN
REAL ESTATE HELD FOR INVESTMENT | 12 Months Ended |
Dec. 31, 2014 | |
Real Estate [Abstract] | |
REAL ESTATE HELD FOR INVESTMENT | NOTE 12. REAL ESTATE HELD FOR INVESTMENT |
The Company had $2.5 million in real estate held for investment at December 31, 2014 and 2013. The real estate is comprised primarily of an investment in the land and buildings of a commercial real estate property which was acquired through foreclosure, and is being leased over a term of 51 months to an investor. The property, which is being depreciated, produced net losses of $56 thousand and $17 thousand for the years ended December 31, 2014 and 2013, respectively. |
LOAN_SERVICING
LOAN SERVICING | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Transfers and Servicing [Abstract] | |||||||||||||
LOAN SERVICING | NOTE 13. LOAN SERVICING | ||||||||||||
Loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others is detailed below. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
$ | 246,348 | $ | 255,475 | $ | 255,462 | ||||||||
The following summarizes the activity in the balance of loan servicing rights: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loan servicing rights, beginning of period | $ | 1,883 | $ | 1,908 | $ | 2,319 | |||||||
Capitalization from loans sold | 385 | 736 | 461 | ||||||||||
Fair value adjustment | (81 | ) | (761 | ) | (872 | ) | |||||||
Loan servicing rights, end of period | $ | 2,187 | $ | 1,883 | $ | 1,908 | |||||||
The Company held custodial escrow deposits of $0.6 million for loan servicing accounts at December 31, 2014 and 2013. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
DEPOSITS | NOTE 14. DEPOSITS | ||||||||||||||||||||||||
The following table summarizes deposit balances and the related interest expense by type of deposit: | |||||||||||||||||||||||||
As of and for the Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | Balance | Interest Expense | Balance | Interest Expense | Balance | Interest Expense | |||||||||||||||||||
Noninterest-bearing demand | $ | 86,110 | $ | — | $ | 70,127 | $ | — | $ | 59,578 | $ | — | |||||||||||||
Interest-bearing demand | 92,877 | 149 | 81,645 | 134 | 76,134 | 127 | |||||||||||||||||||
Money market | 178,320 | 983 | 183,504 | 1,122 | 184,224 | 1,393 | |||||||||||||||||||
Savings | 27,591 | 36 | 25,593 | 36 | 25,183 | 49 | |||||||||||||||||||
Time deposits | 318,219 | 4,193 | 323,357 | 4,534 | 329,979 | 6,314 | |||||||||||||||||||
$ | 703,117 | $ | 5,361 | $ | 684,226 | $ | 5,826 | $ | 675,098 | $ | 7,883 | ||||||||||||||
Contractual maturities of time deposit accounts are summarized as follows: | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2015 | $ | 166,728 | |||||||||||||||||||||||
2016 | 61,357 | ||||||||||||||||||||||||
2017 | 44,972 | ||||||||||||||||||||||||
2018 | 29,991 | ||||||||||||||||||||||||
2019 | 9,120 | ||||||||||||||||||||||||
Thereafter | 6,051 | ||||||||||||||||||||||||
$ | 318,219 | ||||||||||||||||||||||||
The Company had time deposit accounts in amounts of $250 thousand or more of $39.5 million and $34.7 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The Company held approximately $9.2 million and $11.5 million at December 31, 2014 and 2013, respectively, in brokered deposits with maturities ranging through June 2015. | |||||||||||||||||||||||||
The Company had deposits from related parties of $1.8 million and $3.6 million at December 31, 2014 and 2013, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||
BORROWINGS | NOTE 15. BORROWINGS | ||||||||||||||
The Company has total credit availability with the FHLB of up to 30% of assets, subject to the availability of qualified collateral. The Company pledges as collateral for these borrowings certain investment securities, its FHLB stock, and its entire loan portfolio of qualifying mortgages (as defined) under a blanket collateral agreement with the FHLB. At December 31, 2014, the Company had unused borrowing capacity with the FHLB of $42.2 million. | |||||||||||||||
The following tables summarize the outstanding FHLB advances as of the dates indicated: | |||||||||||||||
31-Dec-14 | |||||||||||||||
Balance | Type | Rate | Maturity | ||||||||||||
(Dollars in thousands) | |||||||||||||||
$ | 10,000 | Fixed | 0.23 | % | 3 | /30/2015 | |||||||||
5,000 | Fixed | 0.37 | % | 6 | /30/2015 | ||||||||||
5,000 | Fixed | 0.5 | % | 12 | /30/2015 | ||||||||||
5,000 | Fixed | 0.69 | % | 6 | /30/2016 | ||||||||||
5,000 | Fixed | 0.98 | % | 12 | /30/2016 | ||||||||||
5,000 | Fixed | 1.38 | % | 12 | /29/2017 | ||||||||||
10,000 | Fixed | 1.83 | % | 4 | /10/2019 | ||||||||||
15,000 | Variable | 2.79 | % | 4 | /10/2020 | ||||||||||
$ | 60,000 | 1.37 | % | ||||||||||||
31-Dec-13 | |||||||||||||||
Balance | Type | Rate | Maturity | ||||||||||||
(Dollars in thousands) | |||||||||||||||
$ | 5,000 | Fixed | 0.37 | % | 6 | /30/2015 | |||||||||
5,000 | Fixed | 0.5 | % | 12 | /30/2015 | ||||||||||
5,000 | Fixed | 0.98 | % | 12 | /30/2016 | ||||||||||
10,000 | Fixed | 1.83 | % | 4 | /10/2019 | ||||||||||
15,000 | Variable | 2.8 | % | 4 | /10/2020 | ||||||||||
$ | 40,000 | 1.74 | % | ||||||||||||
The scheduled maturities of FHLB advances and respective weighted average rates, are as follows: | |||||||||||||||
31-Dec-14 | |||||||||||||||
Year | Balance | Weighted Average Rate | |||||||||||||
(Dollars in thousands) | |||||||||||||||
2015 | $ | 20,000 | 0.33 | % | |||||||||||
2016 | 10,000 | 0.84 | % | ||||||||||||
2017 | 5,000 | 1.38 | % | ||||||||||||
2019 | 10,000 | 1.83 | % | ||||||||||||
2020 | 15,000 | 2.79 | % | ||||||||||||
$ | 60,000 | 1.37 | % | ||||||||||||
The Company also maintained approximately $51.2 million in borrowing capacity with the Federal Reserve discount window as of December 31, 2014. The Company had no Federal Reserve discount window borrowings outstanding at December 31, 2014 or 2013. The rate charged on discount window borrowings is currently the Fed Funds target rate plus 0.50% (0.75% as of December 31, 2014). |
JUNIOR_SUBORDINATED_DEBT
JUNIOR SUBORDINATED DEBT | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
JUNIOR SUBORDINATED DEBT | NOTE 16. JUNIOR SUBORDINATED DEBT |
The Company issued $14.4 million of junior subordinated notes to its wholly owned subsidiary, Macon Capital Trust I, to fully and unconditionally guarantee the trust preferred securities issued by the Trust. These notes qualify as Tier I capital for the Company. The notes accrue and pay interest quarterly at a rate per annum, reset quarterly, equal to 90-day LIBOR plus 2.80% (3.05% at December 31, 2014). The notes mature on March 30, 2034. | |
The Company has the right to redeem the notes, in whole or in part, on or after March 30, 2009 at a price equal to 100% of the principal amount plus accrued and unpaid interest. In addition, the Company may redeem the notes in whole (but not in part) upon the occurrence of a capital disqualification event, an investment company event, or a tax event at a specified redemption price as defined in the indenture. | |
The Company also may, at its option, defer the payment of interest on the notes for a period up to 20 consecutive quarters, provided that interest will also accrue on the deferred payments of interest. The Company had previously deferred interest on the notes since December 31, 2010. As of December 31, 2014, the Company had paid all previously deferred interest and the interest payment due on December 30, 2014. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT PLANS | NOTE 17. EMPLOYEE BENEFIT PLANS |
The Company maintains an employee savings plan under Section 401(k) of the Internal Revenue Code. This plan covers substantially all full-time employees who have attained the age of twenty-one. Employees may contribute a percentage of their annual gross salary as limited by the federal tax laws. The Company matches employee contributions based on the plan guidelines. The Company contribution totaled $0.2 million for the each of the years ended December 31, 2014, 2013, and 2012. | |
The Company has a compensated expense policy that allows employees to accrue paid time off for vacation, sick or other unexcused absences up to a specified number of days each year. Employees may sell back a limited amount of unused time at the end of each year or convert the time to an accrued sick time account which is forfeited if unused at termination, but no carry-over or payout of unused time is permitted. |
POSTEMPLOYMENT_BENEFITS
POST-EMPLOYMENT BENEFITS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Postemployment Benefits [Abstract] | |||||||||
POST-EMPLOYMENT BENEFITS | NOTE 18. POST-EMPLOYMENT BENEFITS | ||||||||
The Company has established several nonqualified deferred compensation and post-employment programs providing benefits to certain directors and key management employees. No new participants have been admitted to any of the plans since 2009 and existing benefit levels have been frozen. | |||||||||
A summary of the key terms and accounting for each plan are as follows: | |||||||||
· | Supplemental Executive Retirement Plan (SERP) – provides a post-retirement income stream to several current and former executives. The estimated present value of the future benefits to be paid during a post-retirement period of 216 months is accrued over the period from the effective date of the agreement to the expected date of retirement using a discount rate of 7%. | ||||||||
· | CAP Equity Plan – provides a post-retirement benefit payable in cash. Interest of 8% is accrued on a participant’s unpaid balances after termination from the Company, subject to the terms of the Plan. | ||||||||
· | Director Consultation Plan – provides a post-retirement monthly benefit for continuing to provide consulting services as needed. The gross amounts of the future payments are accrued. | ||||||||
· | Deferred Compensation Plan – allowed certain officers and directors to defer compensation and fees into a Rabbi Trust. The plan was frozen in 2009, and no longer accrues interest. | ||||||||
· | Life Insurance Plan – provides an endorsement split dollar benefit to several current and former executives, under which the Company has agreed to maintain an insurance policy during the executive’s retirement and to provide the executive with a death benefit. The estimated cost of insurance for the portion of the policy expected to be paid as a split dollar death benefit in each post-retirement year is measured for the period between expected retirement age and the earlier of (a) expected mortality and (b) age 95. The resulting amount is then allocated on a present value basis to the period ending on the participant’s full eligibility date. A discount rate of 6% and life expectancy based on the 2001 Valuation Basic Table has been assumed. | ||||||||
The following table summarizes the liabilities for each plan as of the dates indicated: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
SERP | $ | 3,653 | $ | 3,673 | |||||
Cap Equity | 4,919 | 5,357 | |||||||
Director Consultation | 225 | 228 | |||||||
Deferred Compensation | 389 | 389 | |||||||
Life Insurance | 573 | 552 | |||||||
$ | 9,759 | $ | 10,199 | ||||||
The expense related to the plans noted above totaled $0.6 million for each of the years ended December 31, 2014, 2013, and 2012, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||
INCOME TAXES | NOTE 19. INCOME TAXES | ||||||||||||||
Income tax expense (benefit) is summarized as follows: | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Current | |||||||||||||||
Federal | $ | 112 | $ | 46 | $ | (571 | ) | ||||||||
State | (25 | ) | — | — | |||||||||||
Deferred | 2,852 | 782 | (404 | ) | |||||||||||
Change in valuation allowance | (731 | ) | (353 | ) | (36 | ) | |||||||||
Total income tax expense (benefit) | $ | 2,208 | $ | 475 | $ | (1,011 | ) | ||||||||
The differences between actual income tax expense and the amount computed by applying the federal statutory income tax rate of 35% to income before income taxes for the periods indicated is reconciled as follows: | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Computed income tax expense (benefit) | $ | 2,853 | $ | 21 | $ | (27 | ) | ||||||||
Deferred tax valuation allowance | (731 | ) | (353 | ) | (36 | ) | |||||||||
State income tax, net of federal benefit | 271 | 76 | — | ||||||||||||
Nontaxable municipal security income | (115 | ) | (123 | ) | (232 | ) | |||||||||
Nontaxable BOLI income | (182 | ) | (190 | ) | (188 | ) | |||||||||
Other | (112 | ) | 1,044 | (528 | ) | ||||||||||
Actual income tax expense (benefit) | $ | 2,208 | $ | 475 | $ | (1,011 | ) | ||||||||
Effective tax rate | 27.1 | % | 791.7 | % | 1,296.50 | % | |||||||||
108 | |||||||||||||||
ENTEGRA FINANCIAL CORP. AND SUBSIDIARY | |||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||
The components of net deferred taxes as of the periods indicated are summarized as follows: | |||||||||||||||
As of December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Deferred tax assets: | |||||||||||||||
Allowance for loan losses | $ | 4,235 | $ | 5,451 | |||||||||||
Deferred compensation and post employment benefits | 3,514 | 3,752 | |||||||||||||
Non-accrual interest | 202 | 356 | |||||||||||||
Valuation reserve for other real estate | 673 | 2,127 | |||||||||||||
North Carolina NOL carryover | 1,404 | 1,381 | |||||||||||||
Federal NOL carryover | 12,392 | 11,947 | |||||||||||||
Unrealized losses on securities | 867 | 2,860 | |||||||||||||
Other | 393 | 389 | |||||||||||||
Gross deferred tax assets | 23,680 | 28,263 | |||||||||||||
Less: valuation allowance | (19,810 | ) | (22,556 | ) | |||||||||||
Total deferred tax assets | 3,870 | 5,707 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Fixed assets | 461 | 448 | |||||||||||||
Loan servicing rights | 813 | 720 | |||||||||||||
Deferred loan costs | 413 | 205 | |||||||||||||
Prepaid expenses | 94 | 124 | |||||||||||||
Total deferred tax liabilities | 1,781 | 1,497 | |||||||||||||
Net deferred tax asset | $ | 2,089 | $ | 4,210 | |||||||||||
As of December 31, 2014 and 2013, the Company has determined that a valuation allowance is necessary for a portion of its net deferred tax assets. As of each of these dates, the Company has determined that it is not able to reasonably predict future taxable income and has exhausted its taxable income in prior carryback years. As a result, the Company has limited the recognition of its net deferred tax asset to the amount of tax planning strategies that would, if necessary, be implemented. | |||||||||||||||
The following table summarizes the activity in the valuation allowance for deferred tax assets, as well as the corresponding accounting: | |||||||||||||||
109 | |||||||||||||||
ENTEGRA FINANCIAL CORP. AND SUBSIDIARY | |||||||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||||
For the Year Ended December 31, | |||||||||||||||
Accounting | 2014 | 2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Beginning of year | $ | 22,556 | $ | 19,430 | $ | 18,650 | |||||||||
Change in unrealized losses (gains) on securities | Other Comprehensive Income | (1,992 | ) | 3,479 | 816 | ||||||||||
Change in unrealized losses (gains) on securities | Income tax expense (benefit) | — | 429 | — | |||||||||||
Change in tax planning strategies | Income tax expense (benefit) | 2,121 | — | — | |||||||||||
Change in deferred taxes | Income tax expense (benefit) | (2,852 | ) | (782 | ) | (36 | ) | ||||||||
Other | Income tax expense (benefit) | (23 | ) | — | — | ||||||||||
End of year | $ | 19,810 | $ | 22,556 | $ | 19,430 | |||||||||
The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: | |||||||||||||||
As of December 31, 2014 | |||||||||||||||
(Dollars in thousands) | Amount | Expiration Dates | |||||||||||||
Federal | $ | 35,406 | 2032 - 2033 | ||||||||||||
North Carolina | $ | 43,203 | 2025 - 2028 | ||||||||||||
During the year ended December 31, 2013, the Company recognized a reduction in its net deferred tax assets of approximately $0.9 million as a result of a reduction in the expected North Carolina income tax rate from 6.9% to 5%. This reduction was offset by a corresponding decrease in the valuation allowance. | |||||||||||||||
The Company is subject to examination for federal and state purposes for the tax years 2011 through 2014. As of December 31, 2014 and 2013, the Company does not have any material Unrecognized Tax Positions. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Earnings Per Share [Abstract] | |||||
EARNINGS PER SHARE | NOTE 20. EARNINGS PER SHARE | ||||
The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: | |||||
(Dollars in thousands, except per share amounts) | For the Year Ended December 31, 2014 | ||||
Numerator: | |||||
Net income | $ | 5,943 | |||
Denominator: | |||||
Weighted-average common shares outstanding - basic | 6,546,375 | ||||
Effect of dilutive shares | — | ||||
Weighted-average common shares outstanding - diluted | 6,546,375 | ||||
Earnings per share - basic | $ | 0.91 | |||
Earnings per share - diluted | $ | 0.91 | |||
Average shares outstanding for the year ended December 31, 2014 is calculated as if the 6,546,375 shares raised in the initial public offering were issued as of the beginning of the year. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 21. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
The following table summarizes the components of accumulated other comprehensive income (loss) and changes in those components as of and for the years ended December 31: | |||||||||||||||||
Held to Maturity | Deferred Tax | ||||||||||||||||
Available | Securities | Valuation | |||||||||||||||
for Sale | Transferred | Allowance | |||||||||||||||
(Dollars in thousands) | Securities | from AFS | on AFS | Total | |||||||||||||
Balance, December 31, 2011 | $ | 2,573 | $ | — | $ | 1,435 | $ | 4,008 | |||||||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | (816 | ) | (816 | ) | |||||||||||
Change in unrealized holding gains (losses) on securities available for sale | 1,134 | — | — | 1,134 | |||||||||||||
Reclassification adjustment for net securities gains included in net income | (3,294 | ) | — | — | (3,294 | ) | |||||||||||
Income tax expense (benefit) | 853 | — | — | 853 | |||||||||||||
Balance, December 31, 2012 | $ | 1,266 | $ | — | $ | 619 | $ | 1,885 | |||||||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | (3,479 | ) | (3,479 | ) | |||||||||||
Change in unrealized holding gains (losses) on securities available for sale, net of income taxes | (9,431 | ) | — | — | (9,431 | ) | |||||||||||
Reclassification adjustment for net securities gains included in net income | (358 | ) | — | — | (358 | ) | |||||||||||
Transfer of net unrealized loss from available for sale to held to maturity | 1,263 | (1,263 | ) | — | — | ||||||||||||
Amortization of unrealized losses on securities transferred to held to maturity | — | 34 | — | 34 | |||||||||||||
Income tax expense (benefit) | 3,886 | (13 | ) | — | 3,873 | ||||||||||||
Balance, December 31, 2013 | $ | (3,374 | ) | $ | (1,242 | ) | $ | (2,860 | ) | $ | (7,476 | ) | |||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | 1,992 | 1,992 | |||||||||||||
Change in unrealized holding gains (losses) on securities available for sale, net of income taxes | 5,665 | — | — | 5,665 | |||||||||||||
Reclassification adjustment for net securities gains included in net income | (657 | ) | — | — | (657 | ) | |||||||||||
Transfer of net unrealized loss from available for sale to held to maturity | 74 | (74 | ) | — | — | ||||||||||||
Amortization of unrealized losses on securities transferred to held to maturity | — | 199 | — | 199 | |||||||||||||
Income tax expense (benefit) | (1,944 | ) | (48 | ) | — | (1,992 | ) | ||||||||||
Balance, December 31, 2014 | $ | (236 | ) | $ | (1,165 | ) | $ | (868 | ) | $ | (2,269 | ) | |||||
The following table shows the line items in the consolidated Statements of Operations affected by amounts reclassified from accumulated other comprehensive income (loss): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Gain on sale of investments, net | $ | 657 | $ | 358 | $ | 3,294 | |||||||||||
Tax effect | — | — | — | ||||||||||||||
Impact, net of tax | 657 | 358 | 3,294 | ||||||||||||||
Interest income on taxable securities | 199 | 34 | — | ||||||||||||||
Tax effect | — | — | — | ||||||||||||||
Impact, net of tax | 199 | 34 | — | ||||||||||||||
Total reclassifications, net of tax | $ | 856 | $ | 392 | $ | 3,294 |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
REGULATORY MATTERS | NOTE 22. REGULATORY MATTERS | ||||||||||||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by their respective federal and state banking regulators. Failure to satisfy minimum capital requirements may result in certain mandatory and additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. | |||||||||||||||||||||||||
On April 21, 2014, the Bank entered into a memorandum of understanding (the “Bank MOU”) with the FDIC and the North Carolina Commissioner of Banks (the “Commissioner,” and together with the FDIC, the “Bank Supervisory Authorities”), which replaced the consent order entered into in 2012. The Bank MOU seeks to enhance the Bank’s existing practices and procedures in the areas of credit risk management, interest rate risk management, capital levels, and Board oversight. With respect to capital, the Memorandum of Understanding requires the Bank to maintain a Tier 1 capital to average assets (leverage) ratio of at least 8% and a total risk-based capital to total risk-weighted assets ratio of at least 11%. | |||||||||||||||||||||||||
The Company entered into a memorandum of understanding (the “Company MOU”) with the Federal Reserve Bank of Richmond in December 2014 which replaced the written agreement entered into in 2012. The Company MOU requires, among other things, obtaining written approval from the Reserve Bank prior to the payment of dividends by the Company or interest on the Company’s trust preferred securities. In addition, the Company must obtain approval from the Reserve Bank prior to purchasing or redeeming shares of its common stock or incurring any additional indebtedness. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital to average assets (as defined). | |||||||||||||||||||||||||
Following are the required and actual capital amounts and ratios for the Bank: | |||||||||||||||||||||||||
To meet the | |||||||||||||||||||||||||
For Capital | Requirements of the | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Memorandum of Understanding | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier 1 Leverage Capital | $ | 105,556 | 11.91 | % | $ | 35,440 | >4% | $ | 70,880 | >8% | |||||||||||||||
Tier 1 Risk-based Capital | $ | 105,556 | 19.89 | % | $ | 21,231 | >4% | N/A | N/A | ||||||||||||||||
Total Risk-based Capital | $ | 112,246 | 21.15 | % | $ | 42,462 | >8% | $ | 58,386 | >11% | |||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier 1 Leverage Capital | $ | 54,775 | 7.02 | % | $ | 31,190 | >4% | $ | 62,380 | >8% | |||||||||||||||
Tier 1 Risk-based Capital | $ | 54,775 | 10.7 | % | $ | 20,484 | >4% | N/A | N/A | ||||||||||||||||
Total Risk-based Capital | $ | 61,274 | 11.97 | % | $ | 40,968 | >8% | $ | 56,331 | >11% | |||||||||||||||
Following are the required and actual capital amounts and ratios for the Company: | |||||||||||||||||||||||||
For Capital | |||||||||||||||||||||||||
Actual | Adequacy Purposes | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier I Leverage Capital | $ | 123,377 | 13.94 | % | $ | 35,398 | >4% | ||||||||||||||||||
Tier I Risk-based Capital | $ | 123,377 | 23.24 | % | $ | 21,236 | >4% | ||||||||||||||||||
Total Risk Based Capital | $ | 130,067 | 24.5 | % | $ | 42,472 | >8% | ||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier I Leverage Capital | $ | 53,806 | 6.9 | % | $ | 31,190 | >4% | ||||||||||||||||||
Tier I Risk-based Capital | $ | 53,806 | 10.52 | % | $ | 20,459 | >4% | ||||||||||||||||||
Total Risk Based Capital | $ | 60,297 | 11.79 | % | $ | 40,917 | >8% |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
COMMITMENTS AND CONTINGENCIES | NOTE 23. COMMITMENTS AND CONTINGENCIES | ||||||||||
To accommodate the financial needs of its customers, the Company makes commitments under various terms to lend funds. These commitments include revolving credit agreements, term loan commitments and short-term borrowing agreements. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held includes first and second mortgages on one-to-four family dwellings, accounts receivable, inventory, and commercial real estate. Certain lines of credit are unsecured. | |||||||||||
The following summarizes the Company’s approximate commitments to fund lines of credit: | |||||||||||
30-Sep-14 | |||||||||||
(Dollars in thousands) | |||||||||||
Home equity lines | $ | 62,992 | |||||||||
Consumer and other lines | 2,507 | ||||||||||
$ | 65,499 | ||||||||||
The Company had outstanding commitments to originate mortgage loans as follows: | |||||||||||
31-Dec-14 | |||||||||||
Amount | Range of Rates | ||||||||||
(Dollar in thousands) | |||||||||||
Fixed | $ | 1,947 | 3.500% to 4.500% | ||||||||
Variable | 333 | 3.125% to 5.875% | |||||||||
$ | 2,280 | ||||||||||
The allowance for unfunded commitments was $0.1 million at December 31, 2014 and 2013. | |||||||||||
The Company is exposed to loss as a result of its obligation for representations and warranties on loans sold to Fannie Mae and maintained a reserve of $0.3 million as of December 31, 2014 and 2013. | |||||||||||
In the normal course of business, the Company is periodically involved in litigation. In the opinion of the Company’s management, none of this litigation is expected to have a material adverse effect on the accompanying consolidated financial statements. |
FAIR_VALUE_DISCLOSURES
FAIR VALUE DISCLOSURES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
FAIR VALUE DISCLOSURES | NOTE 24. FAIR VALUE DISCLOSURES | ||||||||||||||||||||||||
We use fair value measurements when recording and disclosing certain financial assets and liabilities. Securities available-for-sale, loan servicing rights and mortgage derivatives are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other assets at fair value on a nonrecurring basis, such as loans held for sale, impaired loans and real estate owned. | |||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which is developed, based on market data we have obtained from independent sources. Unobservable inputs reflect our estimate of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. | |||||||||||||||||||||||||
The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: | |||||||||||||||||||||||||
· | Level 1: valuation is based upon unadjusted quoted market prices for identical instruments traded in active markets. | ||||||||||||||||||||||||
· | Level 2: valuation is based upon quoted market prices for similar instruments traded in active markets, quoted market prices for identical or similar instruments traded in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by market data. | ||||||||||||||||||||||||
· | Level 3: valuation is derived from other valuation methodologies, including discounted cash flow models and similar techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in determining fair value. | ||||||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||||||
Fair value estimates are made at a specific point of time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale the Company’s entire holdings of a particular financial instrument. Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, current interest rates and prepayment trends, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in any of these assumptions used in calculating fair value also would affect significantly the estimates. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of these estimates. | |||||||||||||||||||||||||
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis: | |||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
We obtain fair values for debt securities from a third-party pricing service, which utilizes several sources for valuing fixed-income securities. The market evaluation sources for debt securities include observable inputs rather than significant unobservable inputs and are classified as Level 2. The service provider utilizes pricing models that vary by asset class and include available trade, bid and other market information. Generally, the methodologies include broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. | |||||||||||||||||||||||||
Included in securities are investments in an exchange traded bond fund and U.S. Treasury bonds which are valued by reference to quoted market prices and considered a Level 1 security. | |||||||||||||||||||||||||
Loan Servicing Rights | |||||||||||||||||||||||||
Loan servicing rights are carried at fair value as determined by a third party valuation firm. The valuation model utilizes a discounted cash flow analysis using discount rates and prepayment speed assumptions used by market participants. The Company classifies loan servicing rights fair value measurements as Level 3. | |||||||||||||||||||||||||
Derivative Instruments | |||||||||||||||||||||||||
Derivative instruments include interest rate lock commitments and forward sale commitments. These instruments are valued based on the change in the value of the underlying loan between the commitment date and the end of the period. The Company classifies these instruments as Level 3. | |||||||||||||||||||||||||
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a nonrecurring basis: | |||||||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||||||
Loans held for sale are carried at the lower of cost or fair value. The fair value of loans held for sale is based on what secondary markets are currently offering for portfolios with similar characteristics. Loans held for sale carried at fair value are classified as Level 2. | |||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
Impaired loans are carried at the lower of recorded investment or fair value. The fair value of collateral dependent impaired loans is estimated using the value of the collateral less selling costs if repayment is expected from liquidation of the collateral. Appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or our knowledge of the borrower and the borrower’s business. Impaired loans carried at fair value are classified as Level 3. Impaired loans measured using the present value of expected future cash flows are not deemed to be measured at fair value. | |||||||||||||||||||||||||
Real Estate Owned | |||||||||||||||||||||||||
Real estate owned, obtained in partial or total satisfaction of a loan is recorded at the lower of recorded investment in the loan or fair value less cost to sell. Subsequent to foreclosure, these assets are carried at the lower of the amount recorded at acquisition date or fair value less cost to sell. Accordingly, it may be necessary to record nonrecurring fair value adjustments. Fair value, when recorded, is generally based upon appraisals by approved, independent, state certified appraisers. Like impaired loans, appraisals may be discounted based on our historical knowledge, changes in market conditions from the time of appraisal or other information available to us. Real estate owned carried at fair value is classified as Level 3. | |||||||||||||||||||||||||
In addition to financial instruments recorded at fair value in our financial statements, fair value accounting guidance requires disclosure of the fair value of all of an entity’s assets and liabilities that are considered financial instruments. The majority of our assets and liabilities are considered financial instruments. Many of these instruments lack an available trading market as characterized by a willing buyer and willing seller engaged in an exchange transaction. Also, it is our general practice and intent to hold our financial instruments to maturity and to not engage in trading or sales activities. For fair value disclosure purposes, we substantially utilize the fair value measurement criteria as required and explained above. In cases where quoted fair values are not available, we use present value methods to determine the fair value of our financial instruments. | |||||||||||||||||||||||||
Following is a description of valuation methodologies used for the disclosure of the fair value of financial instruments not carried at fair value: | |||||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||||
The carrying amount of such instruments is deemed to be a reasonable estimate of fair value. | |||||||||||||||||||||||||
Loans | |||||||||||||||||||||||||
The fair value of variable rate performing loans is based on carrying values adjusted for credit risk. The fair value of fixed rate performing loans is estimated using discounted cash flow analyses, utilizing interest rates currently being offered for loans with similar terms, adjusted for credit risk. The fair value of nonperforming loans is based on their carrying values less any specific reserve. A prepayment assumption is used to estimate the portion of loans that will be repaid prior to their scheduled maturity. No adjustment has been made for the illiquidity in the market for loans as there is no active market for many of the Company’s loans on which to reasonably base this estimate. | |||||||||||||||||||||||||
Bank Owned Life Insurance | |||||||||||||||||||||||||
Fair values approximate net cash surrender values. | |||||||||||||||||||||||||
Other Investments, at cost | |||||||||||||||||||||||||
No ready market exists for this stock and it has no quoted market value. However, redemption of this stock has historically been at par value. Accordingly, the carrying amount is deemed to be a reasonable estimate of fair value. | |||||||||||||||||||||||||
Deposits | |||||||||||||||||||||||||
The fair values disclosed for demand deposits are equal to the amounts payable on demand at the reporting date. The fair value of certificates of deposit are estimated by discounting the amounts payable at the certificate rates using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||||||
Advances from the FHLB | |||||||||||||||||||||||||
The fair values disclosed for fixed rate long-term borrowings are determined by discounting their contractual cash flows using current interest rates for long-term borrowings of similar remaining maturities. The carrying amounts of variable rate long-term borrowings approximate their fair values. | |||||||||||||||||||||||||
Junior Subordinated Notes | |||||||||||||||||||||||||
The carrying amount approximates fair value because the debt is variable rate tied to LIBOR. | |||||||||||||||||||||||||
Accrued Interest Receivable and Payable | |||||||||||||||||||||||||
Since these financial instruments will typically be received or paid within three months, the carrying amounts of such instruments are deemed to be a reasonable estimate of fair value. | |||||||||||||||||||||||||
Loan Commitments | |||||||||||||||||||||||||
Estimates of the fair value of these off-balance sheet items are not made because of the short-term nature of these arrangements and the credit standing of the counterparties. | |||||||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | 39,482 | $ | — | $ | 39,482 | |||||||||||||||||
Municipal securities | — | 25,558 | — | 25,558 | |||||||||||||||||||||
Mortgage-backed securities | — | 152,718 | — | 152,718 | |||||||||||||||||||||
U.S. Treasury securities | 1,510 | — | — | 1,510 | |||||||||||||||||||||
Mutual funds | 591 | — | — | 591 | |||||||||||||||||||||
2,101 | 217,758 | — | 219,859 | ||||||||||||||||||||||
Loan servicing rights | — | — | 2,187 | 2,187 | |||||||||||||||||||||
Forward sales commitments | — | — | 9 | 9 | |||||||||||||||||||||
Interest rate lock commitments | — | — | 52 | 52 | |||||||||||||||||||||
Total assets | $ | 2,101 | $ | 217,758 | $ | 2,248 | $ | 222,107 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | 21,899 | $ | — | $ | 21,899 | |||||||||||||||||
Municipal securities | — | 25,602 | — | 25,602 | |||||||||||||||||||||
Mortgage-backed securities | — | 107,415 | — | 107,415 | |||||||||||||||||||||
Mutual fund | 568 | — | — | 568 | |||||||||||||||||||||
568 | 154,916 | — | 155,484 | ||||||||||||||||||||||
Loan servicing rights | — | — | 1,883 | 1,883 | |||||||||||||||||||||
Forward sales commitments | — | — | 12 | 12 | |||||||||||||||||||||
Total assets | $ | 568 | $ | 154,916 | $ | 1,895 | $ | 157,379 | |||||||||||||||||
Interest rate lock commitments | $ | — | $ | — | $ | 7 | $ | 7 | |||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 7 | $ | 7 | |||||||||||||||||
There were no liabilities measured at fair value on a recurring basis as of December 31, 2014. | |||||||||||||||||||||||||
The following table presents the changes in assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 1,888 | $ | 1,908 | $ | 2,319 | |||||||||||||||||||
Loan servicing right activity, included in servicing income, net | |||||||||||||||||||||||||
Capitalization from loans sold | 385 | 736 | 461 | ||||||||||||||||||||||
Fair value adjustment | (81 | ) | (761 | ) | (872 | ) | |||||||||||||||||||
Mortgage derivative gains included in Other income | 56 | 5 | — | ||||||||||||||||||||||
Balance at end of year | $ | 2,248 | $ | 1,888 | $ | 1,908 | |||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||||||
The table below presents information about certain assets and liabilities measured at fair value on a nonrecurring basis. There were no loans held for sale carried at fair value at either December 31, 2014 or 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||
One-to four family residential | $ | — | $ | — | $ | 6,407 | $ | 6,407 | |||||||||||||||||
Commercial real estate | — | — | 14,551 | 14,551 | |||||||||||||||||||||
Home equity loans and lines of credit | — | — | 1,456 | 1,456 | |||||||||||||||||||||
Other construction and land | — | — | 2,227 | 2,227 | |||||||||||||||||||||
Real estate owned: | |||||||||||||||||||||||||
One-to four family residential | — | — | 220 | 220 | |||||||||||||||||||||
Commercial real estate | — | — | 774 | 774 | |||||||||||||||||||||
Residential contruction | — | — | — | — | |||||||||||||||||||||
Other construction and land | — | — | 3,431 | 3,431 | |||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 29,066 | $ | 29,066 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||
One-to four family residential | $ | — | $ | — | $ | 4,663 | $ | 4,663 | |||||||||||||||||
Commercial real estate | — | — | 15,939 | 15,939 | |||||||||||||||||||||
Home equity loans and lines of credit | — | — | 1,444 | 1,444 | |||||||||||||||||||||
Other construction and land | — | — | 5,116 | 5,116 | |||||||||||||||||||||
Real estate owned: | |||||||||||||||||||||||||
One-to four family residential | — | — | 1,076 | 1,076 | |||||||||||||||||||||
Commercial real estate | — | — | 2,988 | 2,988 | |||||||||||||||||||||
Residential contruction | — | — | 210 | 210 | |||||||||||||||||||||
Other construction and land | — | — | 6,232 | 6,232 | |||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 37,668 | $ | 37,668 | |||||||||||||||||
There were no liabilities measured at fair value on a nonrecurring basis as of December 31, 2014 or 2013. | |||||||||||||||||||||||||
Impaired loans totaling $9.0 million at December 31, 2014 and $12.9 million at December 31, 2013, were measured using the present value of expected future cash flows. These impaired loans were not deemed to be measured at fair value on a nonrecurring basis. | |||||||||||||||||||||||||
The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2014. | |||||||||||||||||||||||||
Valuation Technique | Unobservable Input | General Range | |||||||||||||||||||||||
Impaired loans | Discounted Appraisals | Collateral discounts and estimated selling cost | 0 – 30% | ||||||||||||||||||||||
Real estate owned | Discounted Appraisals | Collateral discounts and estimated selling cost | 0 – 30% | ||||||||||||||||||||||
Loan servicing rights | Discounted Cash Flows | Prepayment speed | 6 – 25% | ||||||||||||||||||||||
Discount rate | 8 - 14% | ||||||||||||||||||||||||
Forward sales commitments and interest rate lock commitments | Change in market price of underlying loan | Value of underlying loan | 101 - 107% | ||||||||||||||||||||||
The approximate carrying and estimated fair value of financial instruments are summarized below: | |||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||||||
Carrying | |||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and equivalents | $ | 58,982 | $ | 58,982 | $ | 58,982 | $ | — | $ | — | |||||||||||||||
Securities available for sale | 219,859 | 219,859 | 2,101 | 217,758 | — | ||||||||||||||||||||
Securities held to maturity | 29,285 | 30,890 | — | 30,890 | — | ||||||||||||||||||||
Loans held for sale | 10,761 | 11,501 | — | 11,501 | — | ||||||||||||||||||||
Loans receivable, net | 529,407 | 546,450 | — | — | 546,450 | ||||||||||||||||||||
Other investments, at cost | 4,908 | 4,908 | — | 4,908 | — | ||||||||||||||||||||
Interest receivable | 2,925 | 2,925 | — | 2,925 | |||||||||||||||||||||
Bank owned life insurance | 20,417 | 20,417 | — | 20,417 | — | ||||||||||||||||||||
Loan servicing rights | 2,187 | 2,187 | — | — | 2,187 | ||||||||||||||||||||
Forward sales commitments | 9 | 9 | — | — | 9 | ||||||||||||||||||||
Interest rate lock commitments | 52 | 52 | — | — | 52 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Demand deposits | $ | 384,898 | $ | 384,898 | $ | — | $ | 384,898 | $ | — | |||||||||||||||
Time deposits | 318,219 | 321,491 | — | — | 321,491 | ||||||||||||||||||||
Federal Home Loan Bank advances | 60,000 | 62,108 | — | 62,108 | — | ||||||||||||||||||||
Junior subordinated debentures | 14,433 | 14,433 | — | 14,433 | — | ||||||||||||||||||||
Accrued interest payable | 323 | 323 | — | 323 | — | ||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Carrying | |||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and equivalents | $ | 34,316 | $ | 34,316 | $ | 34,316 | $ | — | $ | — | |||||||||||||||
Securities available for sale | 155,484 | 155,484 | 568 | 154,916 | — | ||||||||||||||||||||
Securities held to maturity | 20,988 | 20,098 | — | 20,098 | — | ||||||||||||||||||||
Loans held for sale | 5,688 | 6,151 | — | 6,151 | — | ||||||||||||||||||||
Loans receivable, net | 507,623 | 520,244 | — | — | 520,244 | ||||||||||||||||||||
Other investments, at cost | 3,659 | 3,659 | — | 3,659 | — | ||||||||||||||||||||
Interest receivable | 2,673 | 2,673 | — | 2,673 | — | ||||||||||||||||||||
Bank owned life insurance | 19,961 | 19,961 | — | 19,961 | — | ||||||||||||||||||||
Loan servicing rights | 1,883 | 1,883 | — | — | 1,883 | ||||||||||||||||||||
Forward sales commitments | 12 | 12 | — | — | 12 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Demand deposits | $ | 360,869 | $ | 360,869 | $ | — | $ | 360,869 | $ | — | |||||||||||||||
Time deposits | 323,357 | 327,280 | — | — | 327,280 | ||||||||||||||||||||
Federal Home Loan Bank advances | 40,000 | 41,845 | — | 41,845 | — | ||||||||||||||||||||
Junior subordinated debentures | 14,433 | 14,433 | — | 14,433 | — | ||||||||||||||||||||
Accrued interest payable | 2,023 | 2,023 | — | 2,023 | — | ||||||||||||||||||||
Interest rate lock commitments | 7 | 7 | — | — | 7 |
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
PARENT COMPANY FINANCIAL INFORMATION | NOTE 25. PARENT COMPANY FINANCIAL INFORMATION | ||||||||
Following is condensed financial information of Entegra Financial Corp. (parent company only): | |||||||||
Condensed Balance Sheets | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 17,652 | $ | 475 | |||||
Equity investment in subsidiary | 103,498 | 47,487 | |||||||
Equity investment in trust | 433 | 433 | |||||||
Other assets | 169 | 123 | |||||||
Total assets | $ | 121,752 | $ | 48,518 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Junior Subordinated Debentures | $ | 14,433 | $ | 14,433 | |||||
Accrued Interest Payable | — | 1,567 | |||||||
Shareholders’ Equity | 107,319 | 32,518 | |||||||
Total liabilities and shareholders’ equity | $ | 121,752 | $ | 48,518 | |||||
Condensed Statements of Operations | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Income | |||||||||
Interest income | $ | 78 | $ | — | |||||
Dividends from subsidiary | — | — | |||||||
78 | — | ||||||||
Expenses | |||||||||
Interest | 509 | 490 | |||||||
Other | 29 | 38 | |||||||
538 | 528 | ||||||||
Loss before income taxes and equity in undistributed income of subsidiary | (460 | ) | (528 | ) | |||||
Income tax benefit allocated from consolidated income tax return | 180 | 172 | |||||||
Loss before equity in undistributed income (loss) of subsidiary | (280 | ) | (356 | ) | |||||
Equity in undistributed income (loss) of subsidiary | 6,223 | (59 | ) | ||||||
Net income (loss) | $ | 5,943 | $ | (415 | ) | ||||
Condensed Statements of Cash Flows | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Operating activities: | |||||||||
Net income (loss) | $ | 5,943 | $ | (415 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Equity in undistributed earnings of subsdiary | (6,223 | ) | 59 | ||||||
Increase (decrease) in other assets | (46 | ) | 6 | ||||||
(Decrease) increase in other liabilities | (1,567 | ) | 484 | ||||||
Net cash provided (used in) by operating activities | $ | (1,893 | ) | $ | 134 | ||||
Investing activities: | |||||||||
Investment in subsidiary | $ | (44,581 | ) | $ | — | ||||
Net cash used in investing activities | $ | (44,581 | ) | $ | — | ||||
Financing activities: | |||||||||
Proceeds from sale of common stock | $ | 63,651 | $ | — | |||||
Net cash provided by financing activities | $ | 63,651 | $ | — | |||||
Increase in cash and cash equivalents | 17,177 | 134 | |||||||
Cash and cash equivalents, beginning of year | 475 | 341 | |||||||
Cash and cash equivalents, end of year | $ | 17,652 | $ | 475 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 26. SUBSEQUENT EVENTS |
On February 12, 2015, the Company received notice that the Federal Reserve Bank of Richmond had terminated a Written Agreement put in place on July 20, 2012. The termination of the Written Agreement was effective as of November 13, 2014. The Written Agreement was replaced with an informal supervisory agreement that requires, among other things, obtaining written approval from the FRB prior to the payment of dividends by the Company or interest on the Company’s trust preferred securities. In addition, the Company must obtain approval from the FRB prior to purchasing or redeeming shares of its common stock or incurring any additional indebtedness. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Summary Of Significant Accounting Policies Policies | |||
Estimates | Estimates – The preparation of consolidated financial statements requires management 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 financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
Material estimates that are particularly susceptible to significant change, in the near term, relate to the determination of the allowance for loan losses and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans. In connection with the determination of the allowance for loan losses and the valuation of foreclosed real estate, management obtains independent appraisals for significant properties. | |||
Principles of Consolidation | Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Company, the Bank, and its wholly owned subsidiary. The accounts of the Trust are not consolidated with the Company. In consolidation all significant intercompany accounts and transactions have been eliminated. | ||
Reclassification | Reclassification – Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year’s presentation. The reclassifications had no significant effect on our results of operations or financial condition. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents as presented in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows include vault cash and demand deposits at other institutions including the Federal Home Loan Bank (FHLB) and the Federal Reserve Bank (FRB). Depository institutions are required to maintain reserve and clearing balances with the FRB. The Company’s required reserve balances with the FRB were $0.6 million and $0.4 million at December 31, 2014 and 2013, respectively, and were satisfied entirely through vault cash balances. | ||
Securities | Securities – We determine the appropriate classification of securities at the time of purchase. Available for sale securities represent those securities that that we intend to hold for an indefinite period of time, but that may be sold in response to changes in interest rates, prepayment risk, liquidity needs or other factors. Such securities are carried at fair value with net unrealized gains and losses deemed to be temporary, reported as a component of accumulated other comprehensive income, net of tax. | ||
Held to maturity securities represent those securities that we have the positive intent and ability to hold to maturity and are carried at amortized cost. | |||
Realized gains and losses on the sale of securities and other-than-temporary impairment (OTTI) charges are recorded as a component of noninterest income in the Consolidated Statements of Operations. Realized gains and losses on the sale of securities are determined using the specific-identification method. Bond premiums are amortized to the call date and bond discounts are accreted to the maturity date, both on a level yield basis. | |||
We perform a quarterly review of our securities to identify those that may indicate OTTI. Our policy for OTTI within the debt securities portfolio is based upon a number of factors, including, but not limited to, the length of time and extent to which the estimated fair value has been less than cost, the financial condition of the underlying issuer and the ability of the issuer to meet contractual obligations. Other factors include the likelihood of the security’s ability to recover any decline in its estimated fair value and whether management intends to sell the security, or if it is more likely than not that management will be required to sell the investment security prior to the security’s recovery. | |||
The Company reclassified certain of its securities from available for sale to held to maturity during the years ended December 31, 2014 and 2013 in an effort to minimize the impact of future interest rate changes on Accumulated Other Comprehensive Income (Loss). The difference between the book values and fair values at the date of the transfer will continue to be reported in a separate component of Accumulated Other Comprehensive Income (Loss), and will be amortized into income over the remaining life of the securities as an adjustment of yield in a manner consistent with the amortization of a premium. Concurrently, the revised book values of the transferred securities (represented by the market value on the date of transfer) are being amortized back to their par values over the remaining life of the security as an adjustment of yield in a manner consistent with the amortization of a discount. | |||
Loans Held for Sale | Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value. Net unrealized losses are recognized by charges to Mortgage Banking income. When a loan is placed in the held-for-sale category, we stop amortizing the related deferred fees and costs. The remaining unamortized fees and costs are recognized as part of the cost basis of the loan at the time it is sold. Gains and losses on sales of loans held for sale are included in the Consolidated Statements of Operations in Mortgage Banking income for residential loans and Gains on sale of SBA loans for Small Business Administration Loans. Loans held for sale primarily represent loans on one-to-four family dwellings, including construction loans and the portion of Small Business Administration loans intended to be sold. | ||
Loans Receivable | Loans Receivable – Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances less any charge-offs and adjusted for the allowance for loan losses, unamortized premiums and discounts, and any net deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of interest income over the respective lives of the loans using the interest method without consideration of anticipated prepayments. | ||
Generally, consumer loans are charged down to their estimated collateral value after reaching 90 days past due. The number of days past due is determined by the amount of time from when the payment was due based on contractual terms. Commercial loans are charged off as management becomes aware of facts and circumstances that raise doubt as to the collectability of all or a portion of the principal and when we believe a confirmed loss exists. | |||
The Company began originating and selling the guaranteed portion of small business administration (SBA) loans into the secondary market during the year ended December 31, 2013. When the Company retains the right to service a sold SBA loan, the previous carrying amount is allocated between the guaranteed portion of the loan sold, the unguaranteed portion of the loan retained and the retained SBA servicing right based on their relative fair values on the date of transfer. | |||
Nonaccrual Loans | Nonaccrual Loans – The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent or when it becomes impaired, whichever occurs first, unless the loan is well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual is reversed against interest income. Interest payments received on nonaccrual loans are generally applied as a direct reduction to the principal outstanding until qualifying for return to accrual status. Interest payments received on nonaccrual loans may be recognized as income on a cash basis if recovery of the remaining principal is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Interest payments applied to principal while the loan was on nonaccrual may be recognized in income over the remaining life of the loan after the loan is returned to accrual status. | ||
For loans modified in a troubled debt restructuring, the loan is generally placed on non-accrual until there is a period of satisfactory payment performance by the borrower (either immediately before or after the restructuring), generally defined as six months, and the ultimate collectability of all amounts contractually due is not in doubt. | |||
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (TDR) – In situations where, for economic or legal reasons related to a borrower’s financial difficulties, we grant a concession to the borrower, for other than an insignificant period of time, that we would not otherwise grant, the related loan is classified as a TDR. We strive to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms generally include extensions of maturity dates at a stated interest rate lower than the current market rate for a new loan with similar risk characteristics, reductions in contractual interest rates, periods of interest only payments, and principal deferment. While unusual, there may be instances of loan principal forgiveness. We also may have borrowers classified as a TDR wherein their debt obligation has been discharged by a chapter 7 bankruptcy without reaffirmation of debt. We individually evaluate all substandard loans that experienced a modification of terms to determine if a TDR has occurred. | ||
All TDRs are considered to be impaired loans and will be reported as an impaired loan for the remaining life of the loan, unless the restructuring agreement specifies an interest rate equal to or greater than the rate that would be accepted at the time of the restructuring for a new loan with comparable risk and it is fully expected that the remaining principal and interest will be collected according to the restructured agreement | |||
Allowance for Loan Losses (ALL) | Allowance for Loan Losses (ALL) – The ALL reflects our estimates of probable losses inherent in the loan portfolio at the balance sheet date. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The methodology for determining the ALL has two main components: the evaluation of individual loans for impairment and the evaluation of certain groups of homogeneous loans with similar risk characteristics. | ||
A loan is considered impaired when it is probable that we will be unable to collect all principal and interest payments due according to the original contractual terms of the loan agreement. We individually evaluate all loans classified as substandard or nonaccrual greater than $350,000 for impairment. If the impaired loan is considered collateral dependent, a charge-off is taken based upon the appraised value of the property (less an estimate of selling costs if foreclosure is anticipated). If the impaired loan is not collateral dependent, a specific reserve is established based upon an estimate of the future discounted cash flows after consideration of modifications and the likelihood of future default and prepayment. | |||
The allowance for homogenous loans consists of a base historical loss reserve and a qualitative reserve. The base historical loss reserve utilizes a weighted average historical loss rate of the last 16 quarters, with the most recent four quarters weighted more heavily than the oldest four quarters. The loss rates for the base loss reserve are segmented into 13 loan categories and contain loss rates ranging from approximately 0% to 14%. | |||
The qualitative reserve adjusts the weighted average loss rates utilized in the base loss reserve for trends in the following internal and external factors: | |||
· | Non-accrual and classified loans | ||
· | Collateral values | ||
· | Loan concentrations | ||
· | Economic conditions – including unemployment rates, building permits, and a regional economic index. | ||
Qualitative reserve adjustment factors as a percentage of historical loss rates range from -10% for a favorable trend to +30% for a highly unfavorable trend. These factors are subject to adjustment as economic conditions change. | |||
Fixed Assets | Fixed Assets – Land is stated at cost. Office properties and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method for financial reporting purposes and accelerated methods for income tax purposes over the estimated useful lives of the assets ranging from 4 to 30 years. The cost of maintenance and repairs is charged to expense as incurred while expenditures greater than $1,000 that increase a property’s life are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in income. Leasehold improvements are amortized over the shorter of the asset’s useful life or the remaining lease term, including renewal periods when reasonably assured. | ||
Real Estate Owned | Real Estate Owned – Real estate properties acquired through loan foreclosure are initially recorded at the lower of the recorded investment in the loan or fair value less costs to sell. Losses arising from the initial foreclosure of property are charged against the ALL. | ||
Subsequent to foreclosure, real estate owned is recorded at the lower of carrying amount or fair value less estimated costs to sell. Valuations are periodically performed by management, but not less than annually, and an additional allowance for losses is established by a charge to Net Cost of Operation of Real Estate Owned in the Consolidated Statements of Operations, if necessary. | |||
Federal Home Loan Bank Stock (FHLB) | Federal Home Loan Bank Stock (FHLB) – FHLB stock is carried at cost and evaluated for impairment based on the ultimate recoverability of the par value. The Company has evaluated its FHLB stock and concluded that it is not impaired because the FHLB Atlanta is currently paying cash dividends and redeeming stock at par. The FHLB requires members to purchase and hold a specified level of stock based upon on the members asset value, level of borrowings and participation in other programs offered. Stock in the FHLB is non-marketable and is redeemable at the discretion of the FHLB. Members do not purchase stock in the FHLB for the same reasons that traditional equity investors acquire stock in an investor-owned enterprise. Rather, members purchase stock to obtain access to the low-cost products and services offered by the FHLB. Unlike equity securities of traditional for-profit enterprises, the stock of the FHLB does not provide its holders with an opportunity for capital appreciation because, by regulation, FHLB stock can only be purchased, redeemed and transferred at par value. Both cash and stock dividends are reported as Other interest income in the Consolidated Statements of Operations. | ||
Bank Owned Life Insurance (BOLI) | Bank Owned Life Insurance (BOLI) – BOLI is recorded at its net cash surrender value. Changes in net cash surrender value are recognized in noninterest income in the Consolidated Statements of Operations. | ||
Real Estate Held for Investment | Real Estate Held for Investment – Real estate held for investment is initially recorded at fair value. Subsequently, the property is depreciated over its estimated useful life. Costs relating to development and improvement of properties are capitalized, whereas holding costs are expensed as incurred. | ||
Loan Servicing Rights (LSR) | Loan Servicing Rights (LSR) – Effective January 1, 2012, the Company adopted the fair value method for accounting for its LSR’s. This change represented a change in accounting principle and has been accounted for retrospectively by reflecting prior amortization as change in fair value. Because fair value was less than amortized cost and had been properly reserved through a valuation allowance, there was no cumulative impact of adopting the fair value option. | ||
The value of LSR’s are initially recognized as part of the fair value measurement of a derivative loan commitment. However, a separate LSR asset or liability is not recognized until the servicing rights have been contractually separated from the underlying loan by sale of the loan with servicing retained. The LSR is established at estimated fair value, which represents the present value of estimated future net servicing cash flows, considering expected loan prepayment rates, discount rates, servicing costs and other economic factors, which are determined based on assumptions that a market participant would utilize. The expected rate of loan prepayments is the most significant factor driving the value of LSRs. Increases in mortgage loan prepayments reduce estimated future net servicing cash flows because the life of the underlying loan is reduced. In determining the estimated fair value of LSRs, interest rates, which are used to determine prepayment rates, are held constant over the estimated life of the portfolio. The Company periodically adjusts the recorded amount of its LSR’s to fair value as determined by a third party appraisal. | |||
Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal (generally 25 basis points for residential mortgage loans and 100 basis points for SBA loans) or a fixed amount per loan, and are recorded as income when earned. Changes in fair value of LSR’s are netted against loan servicing fee income and reported as Servicing income (expense), net in the Consolidated Statements of Operations. | |||
Derivative Financial Instruments - Interest Rate Lock Commitments and Forward Sale Contracts | Derivative Financial Instruments – Interest Rate Lock Commitments and Forward Sale Contracts – In the normal course of business, we sell originated mortgage loans into the secondary mortgage loan market. We also offer interest rate lock commitments to potential borrowers. The commitments guarantee a specified interest rate for a loan if underwriting standards are met, but the commitment does not obligate the potential borrower to close on the loan. Accordingly, some commitments expire prior to becoming loans. We can encounter pricing risks if interest rates rise significantly before the loan can be closed and sold. As a result, forward sale contracts are utilized in order to mitigate this pricing risk. Whenever a customer desires an interest rate lock commitment, a mortgage originator quotes a secondary market rate guaranteed for that day by the investor. The interest rate lock is executed between the mortgagee and the Company and in turn a forward sale contract may be executed between the Company and an investor (generally FNMA). Both the interest rate lock commitment with the customer and the corresponding forward sale contract with the investor are considered derivatives, but are not accounted for using hedge accounting. As such, changes in the estimated fair value of the derivatives during the commitment period are recorded in current earnings and included in Mortgage banking income in the Consolidated Statements of Operations. The fair value of the interest rate lock commitments and forward sale contracts are recorded as assets or liabilities and included in Other assets and Other liabilities in the Consolidated Balance Sheets. | ||
Advertising Expense | Advertising Expense – Advertising costs are expensed as incurred. The Company’s advertising expenses were $0.3 million for each of the years ended December 31, 2014, 2013, and 2012. | ||
Income Taxes | Income Taxes – We estimate income tax expense based on amounts expected to be owed to the tax jurisdictions where we conduct business. On a quarterly basis, management assesses the reasonableness of our effective tax rate based upon our current estimate of the amount and components of net income, tax credits and the applicable statutory tax rates expected for the full year. | ||
Deferred income tax assets and liabilities are determined using the asset and liability method and are reported net in the Consolidated Balance Sheets. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities and recognizes enacted changes in tax rate and laws. When deferred tax assets are recognized, they are subject to a valuation allowance based on management’s judgment as to whether realization is more likely than not. In determining the need for a valuation allowance, the Company considered the following sources of taxable income: | |||
· | Future reversals of existing taxable temporary differences | ||
· | Future taxable income exclusive of reversing temporary differences and carry forwards | ||
· | Taxable income in prior carryback years | ||
· | Tax planning strategies that would, if necessary, be implemented | ||
As a result of the analysis above, the Company concluded that a valuation allowance was necessary as of December 31, 2014 and 2013, after consideration of certain tax planning strategies. | |||
Accrued taxes represent the net estimated amount due to taxing jurisdictions and are reported in other assets or other liabilities, as appropriate, in the Consolidated Balance Sheets. We evaluate and assess the relative risks and appropriate tax treatment of transactions and filing positions after considering statutes, regulations, judicial precedent and other information and maintain tax accruals consistent with the evaluation of these relative risks and merits. Changes to the estimate of accrued taxes occur periodically due to changes in tax rates, interpretations of tax laws, the status of examinations being conducted by taxing authorities and changes to statutory, judicial and regulatory guidance. These changes, when they occur, can affect deferred taxes and accrued taxes, as well as the current period’s income tax expense and can be significant to our operating results. | |||
Tax positions are 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 percent likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||
Allowance for Unfunded Commitments | Allowance for Unfunded Commitments – In the normal course of business, we offer off-balance sheet credit arrangements to enable our customers to meet their financing objectives. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the financial statements. Our exposure to credit loss, in the event the customer does not satisfy the terms of the agreement, equals the contractual amount of the obligation less the value of any collateral. We apply the same credit policies in making commitments and standby letters of credit that we use for the underwriting of loans to customers. Commitments generally have fixed expiration dates, annual renewals or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The reserve is calculated by applying historical loss rates from our ALL model to the estimated future utilization of our unfunded commitments. The allowance for unfunded commitments is included in Other liabilities in the Consolidated Balance Sheets. | ||
Junior Subordinated Notes | Junior Subordinated Notes – The Trust is considered to be a variable interest entity since its common equity is not at risk. The Company does not hold a variable interest in the Trust, and therefore, is not considered to be the Trust’s primary beneficiary. As a result, the Company accounts for the junior subordinated notes issued to the Trust and its equity investment in the Trust on an unconsolidated basis. Debt issuance costs of the junior subordinated notes are being amortized over the term of the debt and amounted to $0.1 million as of December 31, 2014 and 2013. | ||
Segments | Segments – The Company operates and manages itself within one retail banking segment and has, therefore, not provided segment disclosures. | ||
Recently Issued Accounting Standards | Recently Issued Accounting Standards | ||
In January 2014, the Financial Accounting Standards Board (“FASB”) amended Receivables topic of the Accounting Standards Codification. The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (OREO). In addition, the amendments require a creditor reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments will be effective for public companies for annual periods, and interim periods within those annual periods beginning after December 15, 2014, with early implementation of the guidance permitted. However, as an emerging growth company, the amendments will be effective for the Company for annual periods beginning after December 15, 2014, and interim periods within annual periods beginning after December 15, 2015. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company will apply the amendments prospectively. The Company does not expect these amendments to have a material effect on its financial statements. | |||
In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2016. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. | |||
In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from U.S. GAAP. Existing U.S. GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. | |||
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
STOCK_CONVERSION_AND_CHANGE_IN1
STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Stock Conversion And Change In Corporate Form Tables | |||||
Proceeds From Common Stock Offering Summary | Common Stock Offering Summary | ||||
(Dollars in thousands) | |||||
Gross proceeds | $ | 65,464 | |||
Issuance costs | (1,813 | ) | |||
Net proceeds | $ | 63,651 | |||
Contributed to the Bank | $ | 44,581 | |||
Retained by the Company | 19,070 | ||||
$ | 63,651 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investment Securities Tables | |||||||||||||||||||||||||
Schedule of investment securities available for sale | The amortized cost and estimated fair values of securities available for sale are summarized as follows: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 39,540 | $ | 65 | $ | (123 | ) | $ | 39,482 | ||||||||||||||||
Municipal securities | 25,483 | 225 | (150 | ) | 25,558 | ||||||||||||||||||||
Mortgage-backed securities | 153,128 | 643 | (1,053 | ) | 152,718 | ||||||||||||||||||||
U.S. Treasury securities | 1,500 | 10 | — | 1,510 | |||||||||||||||||||||
Mutual funds | 590 | 1 | — | 591 | |||||||||||||||||||||
$ | 220,241 | $ | 944 | $ | (1,326 | ) | $ | 219,859 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 22,977 | $ | — | $ | (1,078 | ) | $ | 21,899 | ||||||||||||||||
Municipal securities | 26,963 | 114 | (1,475 | ) | 25,602 | ||||||||||||||||||||
Mortgage-backed securities | 110,431 | 574 | (3,590 | ) | 107,415 | ||||||||||||||||||||
Mutual funds | 576 | — | (8 | ) | 568 | ||||||||||||||||||||
$ | 160,947 | $ | 688 | $ | (6,151 | ) | $ | 155,484 | |||||||||||||||||
Schedule of investment securities held to maturity | The amortized cost and estimated fair values of securities held to maturity (“HTM”) are summarized as follows: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 23,193 | $ | 1,420 | $ | (5 | ) | $ | 24,608 | ||||||||||||||||
Municipal securities | 4,392 | 190 | — | 4,582 | |||||||||||||||||||||
Trust preferred securities | 1,000 | — | — | 1,000 | |||||||||||||||||||||
Corporate debt securities | 700 | — | — | 700 | |||||||||||||||||||||
$ | 29,285 | $ | 1,610 | $ | (5 | ) | $ | 30,890 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
U.S. government agencies | $ | 20,988 | $ | — | $ | (890 | ) | $ | 20,098 | ||||||||||||||||
Transfer of Investment Securities from Available for Sale to Held to Maturity | During the years ended December 31, 2014 and 2013, the Company transferred the following investment securities from available for sale to held to maturity: | ||||||||||||||||||||||||
At Date of Transfer | |||||||||||||||||||||||||
During the Year Ended | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Book value | $ | 4,473 | |||||||||||||||||||||||
Market value | 4,399 | ||||||||||||||||||||||||
Unrealized loss | $ | 74 | |||||||||||||||||||||||
At Date of Transfer | |||||||||||||||||||||||||
During the Year Ended | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Book value | $ | 23,000 | |||||||||||||||||||||||
Market value | 20,954 | ||||||||||||||||||||||||
Unrealized loss | $ | 2,046 | |||||||||||||||||||||||
Unrealized Losses Related to Held to Maturity Securities Previously Recognized in Other Comprehensive Income | Information pertaining to the activity of unrealized losses related to HTM securities previously recognized in other comprehensive income (“OCI”) is summarized below: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Beginning unrealized loss in OCI related to HTM securities previously recognized in OCI | $ | 2,012 | $ | — | $ | — | |||||||||||||||||||
Additions for transfers to HTM | 74 | 2,046 | — | ||||||||||||||||||||||
Amortization of unrealized losses on HTM securities previously recognized in OCI | (199 | ) | (34 | ) | — | ||||||||||||||||||||
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI | $ | 1,887 | $ | 2,012 | $ | — | |||||||||||||||||||
Securities Gross Unrealized Losses Position | 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: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
U.S. government agencies | $ | 1,995 | $ | 5 | $ | — | $ | — | $ | 1,995 | $ | 5 | |||||||||||||
$ | 1,995 | $ | 5 | $ | — | $ | — | $ | 1,995 | $ | 5 | ||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | 14,472 | $ | 15 | $ | 7,893 | $ | 108 | $ | 22,365 | $ | 123 | |||||||||||||
Municipal securities | 4,306 | 49 | 8,409 | 101 | 12,715 | 150 | |||||||||||||||||||
Mortgage-backed securities | 38,563 | 217 | 46,204 | 836 | 84,767 | 1,053 | |||||||||||||||||||
$ | 57,341 | $ | 281 | $ | 62,506 | $ | 1,045 | $ | 119,847 | $ | 1,326 | ||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Held to Maturity: | |||||||||||||||||||||||||
U.S. government agencies | $ | 20,098 | $ | 890 | $ | — | $ | — | $ | 20,098 | $ | 890 | |||||||||||||
$ | 20,098 | $ | 890 | $ | — | $ | — | $ | 20,098 | $ | 890 | ||||||||||||||
Available for Sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,899 | $ | 1,078 | $ | — | $ | — | $ | 21,899 | $ | 1,078 | |||||||||||||
Municipal securities | 18,653 | 1,201 | 2,409 | 274 | 21,062 | 1,475 | |||||||||||||||||||
Mortgage-backed securities | 73,836 | 2,655 | 9,926 | 935 | 83,762 | 3,590 | |||||||||||||||||||
Mutual funds | 568 | 8 | — | — | 568 | 8 | |||||||||||||||||||
$ | 114,956 | $ | 4,942 | $ | 12,335 | $ | 1,209 | $ | 127,291 | $ | 6,151 | ||||||||||||||
Information pertaining to the number of securities with unrealized losses is detailed in the table below. Management of the Company believes all unrealized losses as of December 31, 2014 and 2013 represent temporary impairment. The unrealized losses have resulted from temporary changes in the interest rate market and not as a result of credit deterioration. We do not intend to sell and it is not likely that we will be required to sell any of the securities referenced in the table below before recovery of their amortized cost. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
U.S. government agencies | 11 | 3 | 14 | ||||||||||||||||||||||
Municipal securities | 9 | 19 | 28 | ||||||||||||||||||||||
Mortgage-backed securities | 26 | 27 | 53 | ||||||||||||||||||||||
46 | 49 | 95 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Less Than 12 Months | More Than 12 Months | Total | |||||||||||||||||||||||
U.S. government agencies | 17 | — | 17 | ||||||||||||||||||||||
Municipal securities | 43 | 5 | 48 | ||||||||||||||||||||||
Mortgage-backed securities | 40 | 8 | 48 | ||||||||||||||||||||||
Mutual funds | 1 | — | 1 | ||||||||||||||||||||||
101 | 13 | 114 | |||||||||||||||||||||||
Proceeds from Sales of Securities Available For Sale and Their Corresponding Gross Realized Gains and Losses | The Company received proceeds from sales of securities available for sale and corresponding gross realized gains and losses as follows: | ||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Gross proceeds | $ | 19,170 | $ | 36,404 | $ | 147,826 | |||||||||||||||||||
Gross realized gains | 680 | 522 | 3,321 | ||||||||||||||||||||||
Gross realized losses | — | 164 | 27 | ||||||||||||||||||||||
Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity | The amortized cost and estimated fair value of investments in debt securities at December 31, 2014, by contractual maturity, is shown below. Mortgage-backed securities have not been scheduled because expected maturities will differ from contractual maturities when borrowers have the right to prepay the obligations. | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Over 1 year through 5 years | $ | 26,233 | $ | 26,214 | |||||||||||||||||||||
After 5 years through 10 years | 20,543 | 20,472 | |||||||||||||||||||||||
Over 10 years | 20,337 | 20,455 | |||||||||||||||||||||||
67,113 | 67,141 | ||||||||||||||||||||||||
Mortgage-backed securities | 153,128 | 152,718 | |||||||||||||||||||||||
Total | $ | 220,241 | $ | 219,859 | |||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
After 5 years through 10 years | $ | 2,909 | $ | 2,913 | |||||||||||||||||||||
Over 10 years | 26,376 | 27,977 | |||||||||||||||||||||||
Total | $ | 29,285 | $ | 30,890 |
LOANS_RECEIVABLE_Tables
LOANS RECEIVABLE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loans Receivable Tables | |||||||||||||
Loan Receivable | Loans receivable balances are summarized as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(Dollars in thousands) | |||||||||||||
Real estate mortgage loans: | |||||||||||||
One-to four-family residential | $ | 227,209 | $ | 225,520 | |||||||||
Commercial real estate | 179,435 | 155,633 | |||||||||||
Home equity loans and lines of credit | 56,561 | 56,836 | |||||||||||
Residential construction | 7,823 | 8,952 | |||||||||||
Other construction and land | 50,298 | 64,927 | |||||||||||
Total real estate loans | 521,326 | 511,868 | |||||||||||
Commercial and industrial | 19,135 | 8,285 | |||||||||||
Consumer | 3,200 | 3,654 | |||||||||||
Total commercial and consumer | 22,335 | 11,939 | |||||||||||
Loans receivable, gross | 543,661 | 523,807 | |||||||||||
Less: Net deferred loan fees | (1,695 | ) | (1,933 | ) | |||||||||
Unamortized discount | (1,487 | ) | — | ||||||||||
Loans receivable, net | $ | 540,479 | $ | 521,874 | |||||||||
Activity Related to Discount on Purchased Loans | The following table presents the activity related to the discount on purchased loans: | ||||||||||||
For the Year Ended December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Discount on purchased loans, beginning of period | $ | — | $ | — | $ | — | |||||||
Additional discount for new purchases | 2,607 | — | — | ||||||||||
Accretion | (365 | ) | — | ||||||||||
Interest income recognized for repayments and restructurings | (755 | ) | — | — | |||||||||
Discount on purchased loans, end of period | $ | 1,487 | $ | — | $ | — | |||||||
Aggregate amount of extensions of credit to executive officers and directors | The aggregate amount of extensions of credit to executive officers and directors made in the ordinary course of business as of and for the years ended December 31 is detailed in the table below: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Beginning of year | $ | 9,827 | $ | 10,565 | |||||||||
New loans | 1,695 | 1,122 | |||||||||||
Repayments | (2,215 | ) | (1,860 | ) | |||||||||
End of year | $ | 9,307 | $ | 9,827 |
ALLOWANCE_FOR_LOAN_LOSSES_Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
Allowance For Loan Losses Tables | |||||||||||||||||||||||||||||||||||
Changes in Allowance for Loan Losses | The following tables present, by portfolio segment, the activity in the allowance for loan losses: | ||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | |||||||||||||||||||
Provision | (201 | ) | 408 | 310 | 9 | (232 | ) | (58 | ) | (203 | ) | 33 | |||||||||||||||||||||||
Charge-offs | 702 | 2,415 | 598 | — | 566 | 133 | 140 | 4,554 | |||||||||||||||||||||||||||
Recoveries | 193 | 364 | 41 | — | 218 | 163 | 363 | 1,342 | |||||||||||||||||||||||||||
Ending balance | $ | 2,983 | $ | 2,717 | $ | 1,333 | $ | 510 | $ | 2,936 | $ | 308 | $ | 285 | $ | 11,072 | |||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,620 | $ | 2,973 | $ | 2,002 | $ | 429 | $ | 4,059 | $ | 379 | $ | 412 | $ | 14,874 | |||||||||||||||||||
Provision | (77 | ) | 3,471 | 316 | 154 | 430 | (57 | ) | 121 | 4,358 | |||||||||||||||||||||||||
Charge-offs | 1,283 | 2,209 | 760 | 193 | 1,512 | 17 | 675 | 6,649 | |||||||||||||||||||||||||||
Recoveries | 433 | 125 | 22 | 111 | 539 | 31 | 407 | 1,668 | |||||||||||||||||||||||||||
Ending balance | $ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | |||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 4,571 | $ | 4,338 | $ | 1,562 | $ | 397 | $ | 5,456 | $ | 300 | $ | 86 | $ | 16,710 | |||||||||||||||||||
Provision | 2,081 | 236 | 1,950 | 372 | 2,112 | 250 | 877 | 7,878 | |||||||||||||||||||||||||||
Charge-offs | 2,511 | 1,850 | 1,617 | 391 | 4,151 | 295 | 821 | 11,636 | |||||||||||||||||||||||||||
Recoveries | 479 | 249 | 107 | 51 | 642 | 124 | 270 | 1,922 | |||||||||||||||||||||||||||
Ending balance | $ | 4,620 | $ | 2,973 | $ | 2,002 | $ | 429 | $ | 4,059 | $ | 379 | $ | 412 | $ | 14,874 | |||||||||||||||||||
Investment in Loans by Portfolio Segment | The following tables present, by portfolio segment and reserving methodology, the allocation of the allowance for loan losses and the gross investment in loans: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 719 | $ | 235 | $ | 14 | $ | — | $ | 705 | $ | 3 | $ | — | $ | 1,676 | |||||||||||||||||||
Collectively evaluated for impairment | 2,264 | 2,482 | 1,319 | 510 | 2,231 | 305 | 285 | 9,396 | |||||||||||||||||||||||||||
$ | 2,983 | $ | 2,717 | $ | 1,333 | $ | 510 | $ | 2,936 | $ | 308 | $ | 285 | $ | 11,072 | ||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 9,912 | $ | 17,828 | $ | 1,686 | $ | — | $ | 3,911 | $ | 328 | $ | — | $ | 33,665 | |||||||||||||||||||
Collectively evaluated for impairment | 217,297 | 161,607 | 54,875 | 7,823 | 46,387 | 18,807 | 3,200 | 509,996 | |||||||||||||||||||||||||||
$ | 227,209 | $ | 179,435 | $ | 56,561 | $ | 7,823 | $ | 50,298 | $ | 19,135 | $ | 3,200 | $ | 543,661 | ||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
One-to four Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,152 | $ | 2,329 | $ | 168 | $ | — | $ | 318 | $ | 101 | $ | — | $ | 4,068 | |||||||||||||||||||
Collectively evaluated for impairment | 2,541 | 2,031 | 1,412 | 501 | 3,198 | 235 | 265 | 10,183 | |||||||||||||||||||||||||||
$ | 3,693 | $ | 4,360 | $ | 1,580 | $ | 501 | $ | 3,516 | $ | 336 | $ | 265 | $ | 14,251 | ||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 9,865 | $ | 20,943 | $ | 1,612 | $ | — | $ | 7,119 | $ | 531 | $ | — | $ | 40,070 | |||||||||||||||||||
Collectively evaluated for impairment | 215,655 | 134,690 | 55,224 | 8,952 | 57,808 | 7,754 | 3,654 | 483,737 | |||||||||||||||||||||||||||
$ | 225,520 | $ | 155,633 | $ | 56,836 | $ | 8,952 | $ | 64,927 | $ | 8,285 | $ | 3,654 | $ | 523,807 | ||||||||||||||||||||
Credit Risk Profile by Rating | The following tables present the recorded investment in gross loans by loan grade: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
Loan Grade | One-to Four-Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
1 | $ | — | $ | 68 | $ | — | $ | — | $ | — | $ | 2,511 | $ | 20 | $ | 2,599 | |||||||||||||||||||
2 | — | — | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||
3 | 63,065 | 14,356 | 5,978 | 690 | 5,154 | 483 | 454 | 90,180 | |||||||||||||||||||||||||||
4 | 58,948 | 37,349 | 10,424 | 2,327 | 9,027 | 2,917 | 419 | 121,411 | |||||||||||||||||||||||||||
5 | 44,445 | 90,397 | 10,486 | 3,048 | 21,024 | 6,399 | 179 | 175,978 | |||||||||||||||||||||||||||
6 | 5,714 | 21,232 | 882 | 574 | 2,451 | 429 | 1 | 31,283 | |||||||||||||||||||||||||||
7 | 7,400 | 14,139 | 1,568 | — | 5,404 | 555 | — | 29,066 | |||||||||||||||||||||||||||
$ | 179,572 | $ | 177,541 | $ | 29,338 | $ | 6,639 | $ | 43,060 | $ | 13,394 | $ | 1,073 | $ | 450,617 | ||||||||||||||||||||
Ungraded Loan Exposure: | |||||||||||||||||||||||||||||||||||
Performing | $ | 46,247 | $ | 1,736 | $ | 26,864 | $ | 1,119 | $ | 7,073 | $ | 5,741 | $ | 2,125 | $ | 90,905 | |||||||||||||||||||
Nonperforming | 1,390 | 158 | 359 | 65 | 165 | — | 2 | 2,139 | |||||||||||||||||||||||||||
Subtotal | $ | 47,637 | $ | 1,894 | $ | 27,223 | $ | 1,184 | $ | 7,238 | $ | 5,741 | $ | 2,127 | $ | 93,044 | |||||||||||||||||||
Total | $ | 227,209 | $ | 179,435 | $ | 56,561 | $ | 7,823 | $ | 50,298 | $ | 19,135 | $ | 3,200 | $ | 543,661 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Loan Grade | One-to Four-Family Residential | Commercial Real Estate | Home Equity and Lines of Credit | Residential Construction | Other Construction and Land | Commercial | Consumer | Total | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 176 | $ | — | $ | 176 | |||||||||||||||||||
2 | — | — | — | — | — | 100 | — | 100 | |||||||||||||||||||||||||||
3 | 73,574 | 11,960 | 6,720 | 607 | 6,241 | 598 | 477 | 100,177 | |||||||||||||||||||||||||||
4 | 64,548 | 28,164 | 12,250 | 2,670 | 14,489 | 1,000 | 231 | 123,352 | |||||||||||||||||||||||||||
5 | 41,272 | 72,975 | 11,625 | 1,555 | 25,926 | 4,232 | 855 | 158,440 | |||||||||||||||||||||||||||
6 | 10,362 | 18,167 | 1,578 | 1,723 | 4,331 | 1,495 | 14 | 37,670 | |||||||||||||||||||||||||||
7 | 10,503 | 24,346 | 1,953 | — | 9,626 | 590 | 1 | 47,019 | |||||||||||||||||||||||||||
$ | 200,259 | $ | 155,612 | $ | 34,126 | $ | 6,555 | $ | 60,613 | $ | 8,191 | $ | 1,578 | $ | 466,934 | ||||||||||||||||||||
Ungraded Loan Exposure: | |||||||||||||||||||||||||||||||||||
Performing | $ | 25,261 | $ | 21 | $ | 22,710 | $ | 2,397 | $ | 4,314 | $ | 94 | $ | 2,076 | $ | 56,873 | |||||||||||||||||||
Nonperforming | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Subtotal | $ | 25,261 | $ | 21 | $ | 22,710 | $ | 2,397 | $ | 4,314 | $ | 94 | $ | 2,076 | $ | 56,873 | |||||||||||||||||||
Total | $ | 225,520 | $ | 155,633 | $ | 56,836 | $ | 8,952 | $ | 64,927 | $ | 8,285 | $ | 3,654 | $ | 523,807 | |||||||||||||||||||
Aging Analysis of Recorded Investment of Past-Due Financing Receivables | The following tables include an aging analysis of the recorded investment of past-due financing receivables by class. The Company does not accrue interest on loans greater than 90 days past due. | ||||||||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 6,298 | $ | 448 | $ | 2,669 | $ | 9,415 | $ | 217,794 | $ | 227,209 | |||||||||||||||||||||||
Commercial real estate | 2,136 | 909 | 1,006 | 4,051 | 175,384 | 179,435 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 557 | 528 | 759 | 1,844 | 54,717 | 56,561 | |||||||||||||||||||||||||||||
Residential construction | — | — | 65 | 65 | 7,758 | 7,823 | |||||||||||||||||||||||||||||
Other construction and land | 1,530 | 964 | 473 | 2,967 | 47,331 | 50,298 | |||||||||||||||||||||||||||||
Commercial | — | 22 | — | 22 | 19,113 | 19,135 | |||||||||||||||||||||||||||||
Consumer | 247 | 4 | 1 | 252 | 2,948 | 3,200 | |||||||||||||||||||||||||||||
Total | $ | 10,768 | $ | 2,875 | $ | 4,973 | $ | 18,616 | $ | 525,045 | $ | 543,661 | |||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days and Over Past Due | Total Past Due | Current | Total Loans Receivable | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,539 | $ | 669 | $ | 2,587 | $ | 8,795 | $ | 216,725 | $ | 225,520 | |||||||||||||||||||||||
Commercial real estate | 4,746 | 53 | 722 | 5,521 | 150,112 | 155,633 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 313 | 29 | 350 | 692 | 56,144 | 56,836 | |||||||||||||||||||||||||||||
Residential construction | 120 | — | — | 120 | 8,832 | 8,952 | |||||||||||||||||||||||||||||
Other construction and land | 499 | 185 | 970 | 1,654 | 63,273 | 64,927 | |||||||||||||||||||||||||||||
Commercial | — | 35 | — | 35 | 8,250 | 8,285 | |||||||||||||||||||||||||||||
Consumer | 18 | 9 | — | 27 | 3,627 | 3,654 | |||||||||||||||||||||||||||||
Total | $ | 11,235 | $ | 980 | $ | 4,629 | $ | 16,844 | $ | 506,963 | $ | 523,807 | |||||||||||||||||||||||
Summary of Average Impaired Loans | The following table presents investments in loans considered to be impaired and related information on those impaired loans: | ||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Recorded Balance | Unpaid Principal Balance | Specific Allowance | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loans without a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,943 | $ | 6,096 | $ | — | $ | 4,158 | $ | 4,539 | $ | — | |||||||||||||||||||||||
Commercial real estate | 14,231 | 16,515 | — | 8,567 | 9,518 | — | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,537 | 1,912 | — | 1,102 | 1,262 | — | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 1,901 | 2,579 | — | 5,455 | 6,464 | — | |||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||||
$ | 23,612 | $ | 27,102 | $ | — | $ | 19,282 | $ | 21,783 | $ | — | ||||||||||||||||||||||||
Loans with a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 3,969 | $ | 4,028 | $ | 719 | $ | 5,707 | $ | 5,707 | $ | 1,152 | |||||||||||||||||||||||
Commercial real estate | 3,597 | 3,745 | 235 | 12,376 | 12,376 | 2,329 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 149 | 149 | 14 | 510 | 510 | 168 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 2,010 | 2,010 | 705 | 1,664 | 1,664 | 318 | |||||||||||||||||||||||||||||
Commercial | 328 | 328 | 3 | 531 | 531 | 101 | |||||||||||||||||||||||||||||
$ | 10,053 | $ | 10,260 | $ | 1,676 | $ | 20,788 | $ | 20,788 | $ | 4,068 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 9,912 | $ | 10,124 | $ | 719 | $ | 9,865 | $ | 10,246 | $ | 1,152 | |||||||||||||||||||||||
Commercial real estate | 17,828 | 20,260 | 235 | 20,943 | 21,894 | 2,329 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,686 | 2,061 | 14 | 1,612 | 1,772 | 168 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 3,911 | 4,589 | 705 | 7,119 | 8,128 | 318 | |||||||||||||||||||||||||||||
Commercial | 328 | 328 | 3 | 531 | 531 | 101 | |||||||||||||||||||||||||||||
$ | 33,665 | $ | 37,362 | $ | 1,676 | $ | 40,070 | $ | 42,571 | $ | 4,068 | ||||||||||||||||||||||||
The following table presents average impaired loans and interest income recognized on those impaired loans, by class segment, for the periods indicated: | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Loans without a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 6,079 | $ | 242 | $ | 4,586 | $ | 160 | $ | 1,856 | $ | 69 | |||||||||||||||||||||||
Commercial real estate | 14,255 | 664 | 9,610 | 527 | 6,653 | 318 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,728 | 53 | 1,255 | 46 | 1,267 | 46 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 740 | 25 | |||||||||||||||||||||||||||||
Other construction and land | 2,332 | 70 | 6,490 | 528 | 7,607 | 110 | |||||||||||||||||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||||||||||||||||
$ | 24,394 | $ | 1,029 | $ | 21,941 | $ | 1,261 | $ | 18,123 | $ | 568 | ||||||||||||||||||||||||
Loans with a valuation allowance | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 4,048 | $ | 137 | $ | 5,664 | $ | 221 | $ | 7,516 | $ | 276 | |||||||||||||||||||||||
Commercial real estate | 3,715 | 152 | 3,660 | 161 | 9,552 | 796 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 149 | 6 | 511 | 19 | 248 | 12 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Other construction and land | 2,042 | 81 | 937 | 40 | 2,550 | 111 | |||||||||||||||||||||||||||||
Commercial | 334 | 20 | 347 | 21 | 359 | 22 | |||||||||||||||||||||||||||||
$ | 10,288 | $ | 396 | $ | 11,119 | $ | 462 | $ | 20,225 | $ | 1,217 | ||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 10,127 | $ | 379 | $ | 10,250 | $ | 381 | $ | 9,372 | $ | 345 | |||||||||||||||||||||||
Commercial real estate | 17,970 | 816 | 13,270 | 688 | 16,205 | 1,114 | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1,877 | 59 | 1,766 | 65 | 1,515 | 58 | |||||||||||||||||||||||||||||
Residential construction | — | — | — | — | 740 | 25 | |||||||||||||||||||||||||||||
Other construction and land | 4,374 | 151 | 7,427 | 568 | 10,157 | 221 | |||||||||||||||||||||||||||||
Commercial | 334 | 20 | 347 | 21 | 359 | 22 | |||||||||||||||||||||||||||||
$ | 34,682 | $ | 1,425 | $ | 33,060 | $ | 1,723 | $ | 38,348 | $ | 1,785 | ||||||||||||||||||||||||
Financing Receivables on Nonaccrual Status | The following table summarizes the balances of nonperforming loans. Certain loans classified as Troubled Debt Restructurings (“TDRs”) and impaired loans may be on non-accrual status even though they are not contractually delinquent. | ||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to four-family residential | $ | 5,661 | $ | 2,794 | |||||||||||||||||||||||||||||||
Commercial real estate | 7,011 | 10,212 | |||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 1,347 | 350 | |||||||||||||||||||||||||||||||||
Residential construction | 65 | — | |||||||||||||||||||||||||||||||||
Other construction and land | 2,679 | 2,068 | |||||||||||||||||||||||||||||||||
Commercial | 15 | 190 | |||||||||||||||||||||||||||||||||
Consumer | 2 | 13 | |||||||||||||||||||||||||||||||||
Non-performing loans | $ | 16,780 | $ | 15,627 | |||||||||||||||||||||||||||||||
Summary of TDR Loans | The following tables summarize TDR loans as of the dates indicated: | ||||||||||||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||||||||
TDR’s | TDR’s | TDR’s | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to-four family residential | $ | 5,760 | $ | 715 | $ | 6,475 | |||||||||||||||||||||||||||||
Commercial real estate | 10,710 | 3,797 | 14,507 | ||||||||||||||||||||||||||||||||
Home equity and lines of credit | 443 | — | 443 | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||||||||||||||||
Other construction and land | 1,519 | 672 | 2,191 | ||||||||||||||||||||||||||||||||
Commercial | 328 | 16 | 344 | ||||||||||||||||||||||||||||||||
$ | 18,760 | $ | 5,200 | $ | 23,960 | ||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||
Performing | Nonperforming | Total | |||||||||||||||||||||||||||||||||
TDR’s | TDR’s | TDR’s | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
One-to-four family residential | $ | 5,786 | $ | 643 | $ | 6,429 | |||||||||||||||||||||||||||||
Commercial real estate | 10,690 | 694 | 11,384 | ||||||||||||||||||||||||||||||||
Home equity and lines of credit | 510 | — | 510 | ||||||||||||||||||||||||||||||||
Residential construction | — | — | — | ||||||||||||||||||||||||||||||||
Other construction and land | 5,688 | 638 | 6,326 | ||||||||||||||||||||||||||||||||
Commercial | 341 | — | 341 | ||||||||||||||||||||||||||||||||
$ | 23,015 | $ | 1,975 | $ | 24,990 | ||||||||||||||||||||||||||||||
Loan modifications that were deemed TDRs at the time of the modification during the period presented are summarized in the tables below: | |||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to-four family residential | 3 | $ | 487 | $ | 404 | ||||||||||||||||||||||||||||||
Commercial real estate | 1 | 280 | 280 | ||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 1 | 50 | 40 | ||||||||||||||||||||||||||||||||
Other construction and land | 1 | 151 | 151 | ||||||||||||||||||||||||||||||||
6 | $ | 968 | $ | 875 | |||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
Other construction and land | 2 | $ | 720 | 596 | |||||||||||||||||||||||||||||||
Commercial real estate | 7 | 6,770 | 5,332 | ||||||||||||||||||||||||||||||||
Commercial | 1 | 18 | 12 | ||||||||||||||||||||||||||||||||
10 | $ | 7,508 | $ | 5,940 | |||||||||||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of Loans | Pre-modification Outstanding Recorded Investment | Post-modification Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to four-family residential | 3 | $ | 486 | $ | 397 | ||||||||||||||||||||||||||||||
Commercial real estate | 2 | 1,802 | 1,609 | ||||||||||||||||||||||||||||||||
Home equity loans and lines of credit | 2 | 263 | 144 | ||||||||||||||||||||||||||||||||
7 | $ | 2,551 | $ | 2,150 | |||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
One-to four-family residential | 1 | $ | 199 | $ | 157 | ||||||||||||||||||||||||||||||
Commercial real estate | 1 | 478 | 215 | ||||||||||||||||||||||||||||||||
Commercial | — | — | — | ||||||||||||||||||||||||||||||||
2 | $ | 677 | $ | 372 | |||||||||||||||||||||||||||||||
The following table summarizes TDRs that defaulted during the years ended December 31, 2014 and 2013 and which were modified as TDRs within the previous 12 months. | |||||||||||||||||||||||||||||||||||
For the Year Ended | For the Year Ended | ||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||
Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Below market interest rate: | |||||||||||||||||||||||||||||||||||
One-to-four family residential | 1 | $ | 135 | — | $ | — | |||||||||||||||||||||||||||||
Home equity and lines of credit | 1 | 50 | — | — | |||||||||||||||||||||||||||||||
Other construction and land | — | — | 1 | 364 | |||||||||||||||||||||||||||||||
2 | $ | 185 | 1 | $ | 364 | ||||||||||||||||||||||||||||||
Extended payment terms: | |||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 215 | — | $ | — |
CONCENTRATIONS_OF_CREDIT_RISK_
CONCENTRATIONS OF CREDIT RISK (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Concentrations Of Credit Risk Tables | |||||||||
Concentration of Company loan | The Company’s loans were concentrated in the following categories: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
One-to four-family residential | 41.8 | % | 43 | % | |||||
Commercial real estate | 33 | 29.7 | |||||||
Home equity and lines of credit | 10.4 | 10.9 | |||||||
Residential construction | 1.4 | 1.7 | |||||||
Other construction and land | 9.3 | 12.4 | |||||||
Commercial | 3.5 | 1.6 | |||||||
Consumer | 0.6 | 0.7 | |||||||
Total loans | 100 | % | 100 | % |
FIXED_ASSETS_Tables
FIXED ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Fixed Assets Tables | |||||||||
Schedule of Fixed Assets | Fixed assets are summarized as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Land and improvements | $ | 7,035 | $ | 7,032 | |||||
Buildings | 13,079 | 12,756 | |||||||
Furniture, fixtures, and equipment | 7,643 | 7,571 | |||||||
Construction in process | 63 | 102 | |||||||
Total fixed assets | 27,820 | 27,461 | |||||||
Less accumulated depreciation | (14,816 | ) | (14,455 | ) | |||||
Fixed assets, net | $ | 13,004 | $ | 13,006 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases | Following is a schedule of approximate annual future minimum lease payments under operating leases that have initial or remaining lease terms in excess of one year: | ||||||||
2015 | $ | 128 | |||||||
2016 | 58 | ||||||||
2017 | 16 | ||||||||
Total minimum lease commitments | $ | 202 |
REAL_ESTATE_OWNED_Tables
REAL ESTATE OWNED (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Real Estate Owned Tables | |||||||||||||
Summary of Real Estate Owned and Changes in the Valuation Allowances | The following tables summarizes real estate owned and changes in the valuation allowance for real estate owned as of and for the periods indicated: | ||||||||||||
As of December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | |||||||||||
Real estate owned, gross | $ | 6,185 | $ | 16,066 | |||||||||
Less: Valuation allowance | 1,760 | 5,560 | |||||||||||
Real estate owned, net | $ | 4,425 | $ | 10,506 | |||||||||
Year Ended December 31, | |||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | ||||||||||
Valuation allowance, beginning | $ | 5,560 | $ | 3,635 | $ | 4,523 | |||||||
Provision charged to expense | 2,349 | 4,093 | 2,089 | ||||||||||
Reduction due to disposal | (6,149 | ) | (2,168 | ) | (2,977 | ) | |||||||
Valuation allowance, ending | $ | 1,760 | $ | 5,560 | $ | 3,635 |
INTEREST_RECEIVABLE_Tables
INTEREST RECEIVABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Interest Receivable Tables | |||||||||
Schedule of Interest Receivable | Interest receivable consists of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Loans receivable | $ | 1,825 | $ | 1,876 | |||||
Investments | 1,100 | 797 | |||||||
Total interest receivable | $ | 2,925 | $ | 2,673 |
BANK_OWNED_LIFE_INSURANCE_BOLI1
BANK OWNED LIFE INSURANCE (BOLI) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Bank Owned Life Insurance Boli Tables | |||||||||
Schedule of composition of Bank Owned Life Insurance | The following table summarizes the composition of our BOLI: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
Separate account | $ | 12,194 | $ | 11,983 | |||||
General account | 7,410 | 7,188 | |||||||
Hybrid | 813 | 790 | |||||||
Total | $ | 20,417 | $ | 19,961 |
LOAN_SERVICING_Tables
LOAN SERVICING (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Loan Servicing Tables | |||||||||||||
Summary of Unpaid Principal Mortgage and Other Loans | The unpaid principal balances of mortgage and other loans serviced for others is detailed below. | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
$ | 246,348 | $ | 255,475 | $ | 255,462 | ||||||||
Loan Servicing Rights | The following summarizes the activity in the balance of loan servicing rights: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | |||||||||||||
Loan servicing rights, beginning of period | $ | 1,883 | $ | 1,908 | $ | 2,319 | |||||||
Capitalization from loans sold | 385 | 736 | 461 | ||||||||||
Fair value adjustment | (81 | ) | (761 | ) | (872 | ) | |||||||
Loan servicing rights, end of period | $ | 2,187 | $ | 1,883 | $ | 1,908 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Deposits Tables | |||||||||||||||||||||||||
Summary of Deposit Balances and Interest Expenses | The following table summarizes deposit balances and the related interest expense by type of deposit: | ||||||||||||||||||||||||
As of and for the Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | Balance | Interest Expense | Balance | Interest Expense | Balance | Interest Expense | |||||||||||||||||||
Noninterest-bearing demand | $ | 86,110 | $ | — | $ | 70,127 | $ | — | $ | 59,578 | $ | — | |||||||||||||
Interest-bearing demand | 92,877 | 149 | 81,645 | 134 | 76,134 | 127 | |||||||||||||||||||
Money market | 178,320 | 983 | 183,504 | 1,122 | 184,224 | 1,393 | |||||||||||||||||||
Savings | 27,591 | 36 | 25,593 | 36 | 25,183 | 49 | |||||||||||||||||||
Time deposits | 318,219 | 4,193 | 323,357 | 4,534 | 329,979 | 6,314 | |||||||||||||||||||
$ | 703,117 | $ | 5,361 | $ | 684,226 | $ | 5,826 | $ | 675,098 | $ | 7,883 | ||||||||||||||
Schedule Of Certificates Of Deposit, By Contractual Maturity | Contractual maturities of time deposit accounts are summarized as follows: | ||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
2015 | $ | 166,728 | |||||||||||||||||||||||
2016 | 61,357 | ||||||||||||||||||||||||
2017 | 44,972 | ||||||||||||||||||||||||
2018 | 29,991 | ||||||||||||||||||||||||
2019 | 9,120 | ||||||||||||||||||||||||
Thereafter | 6,051 | ||||||||||||||||||||||||
$ | 318,219 |
BORROWINGS_Tables
BORROWINGS (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Borrowings Tables | |||||||||||||||
Schedule of Outstanding FHLB advances | The following tables summarize the outstanding FHLB advances as of the dates indicated: | ||||||||||||||
31-Dec-14 | |||||||||||||||
Balance | Type | Rate | Maturity | ||||||||||||
(Dollars in thousands) | |||||||||||||||
$ | 10,000 | Fixed | 0.23 | % | 3 | /30/2015 | |||||||||
5,000 | Fixed | 0.37 | % | 6 | /30/2015 | ||||||||||
5,000 | Fixed | 0.5 | % | 12 | /30/2015 | ||||||||||
5,000 | Fixed | 0.69 | % | 6 | /30/2016 | ||||||||||
5,000 | Fixed | 0.98 | % | 12 | /30/2016 | ||||||||||
5,000 | Fixed | 1.38 | % | 12 | /29/2017 | ||||||||||
10,000 | Fixed | 1.83 | % | 4 | /10/2019 | ||||||||||
15,000 | Variable | 2.79 | % | 4 | /10/2020 | ||||||||||
$ | 60,000 | 1.37 | % | ||||||||||||
31-Dec-13 | |||||||||||||||
Balance | Type | Rate | Maturity | ||||||||||||
(Dollars in thousands) | |||||||||||||||
$ | 5,000 | Fixed | 0.37 | % | 6 | /30/2015 | |||||||||
5,000 | Fixed | 0.5 | % | 12 | /30/2015 | ||||||||||
5,000 | Fixed | 0.98 | % | 12 | /30/2016 | ||||||||||
10,000 | Fixed | 1.83 | % | 4 | /10/2019 | ||||||||||
15,000 | Variable | 2.8 | % | 4 | /10/2020 | ||||||||||
$ | 40,000 | 1.74 | % | ||||||||||||
Scheduled maturities of FHLB advances and respective weighted average rates | The scheduled maturities of FHLB advances and respective weighted average rates, are as follows: | ||||||||||||||
31-Dec-14 | |||||||||||||||
Year | Balance | Weighted Average Rate | |||||||||||||
(Dollars in thousands) | |||||||||||||||
2015 | $ | 20,000 | 0.33 | % | |||||||||||
2016 | 10,000 | 0.84 | % | ||||||||||||
2017 | 5,000 | 1.38 | % | ||||||||||||
2019 | 10,000 | 1.83 | % | ||||||||||||
2020 | 15,000 | 2.79 | % | ||||||||||||
$ | 60,000 | 1.37 | % |
POSTEMPLOYMENT_BENEFITS_Tables
POST-EMPLOYMENT BENEFITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Post-employment Benefits Tables | |||||||||
Schedule of liabilities for each plan | The following table summarizes the liabilities for each plan as of the dates indicated: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
(Dollars in thousands) | |||||||||
SERP | $ | 3,653 | $ | 3,673 | |||||
Cap Equity | 4,919 | 5,357 | |||||||
Director Consultation | 225 | 228 | |||||||
Deferred Compensation | 389 | 389 | |||||||
Life Insurance | 573 | 552 | |||||||
$ | 9,759 | $ | 10,199 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Income Taxes Tables | |||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) is summarized as follows: | ||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Current | |||||||||||||||
Federal | $ | 112 | $ | 46 | $ | (571 | ) | ||||||||
State | (25 | ) | — | — | |||||||||||
Deferred | 2,852 | 782 | (404 | ) | |||||||||||
Change in valuation allowance | (731 | ) | (353 | ) | (36 | ) | |||||||||
Total income tax expense (benefit) | $ | 2,208 | $ | 475 | $ | (1,011 | ) | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | The differences between actual income tax expense and the amount computed by applying the federal statutory income tax rate of 35% to income before income taxes for the periods indicated is reconciled as follows: | ||||||||||||||
For the Year Ended December 31, | |||||||||||||||
2014 | 2013 | 2012 | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Computed income tax expense (benefit) | $ | 2,853 | $ | 21 | $ | (27 | ) | ||||||||
Deferred tax valuation allowance | (731 | ) | (353 | ) | (36 | ) | |||||||||
State income tax, net of federal benefit | 271 | 76 | — | ||||||||||||
Nontaxable municipal security income | (115 | ) | (123 | ) | (232 | ) | |||||||||
Nontaxable BOLI income | (182 | ) | (190 | ) | (188 | ) | |||||||||
Other | (112 | ) | 1,044 | (528 | ) | ||||||||||
Actual income tax expense (benefit) | $ | 2,208 | $ | 475 | $ | (1,011 | ) | ||||||||
Effective tax rate | 27.1 | % | 791.7 | % | 1,296.50 | % | |||||||||
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred taxes as of the periods indicated are summarized as follows: | ||||||||||||||
As of December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||
Deferred tax assets: | |||||||||||||||
Allowance for loan losses | $ | 4,235 | $ | 5,451 | |||||||||||
Deferred compensation and post employment benefits | 3,514 | 3,752 | |||||||||||||
Non-accrual interest | 202 | 356 | |||||||||||||
Valuation reserve for other real estate | 673 | 2,127 | |||||||||||||
North Carolina NOL carryover | 1,404 | 1,381 | |||||||||||||
Federal NOL carryover | 12,392 | 11,947 | |||||||||||||
Unrealized losses on securities | 867 | 2,860 | |||||||||||||
Other | 393 | 389 | |||||||||||||
Gross deferred tax assets | 23,680 | 28,263 | |||||||||||||
Less: valuation allowance | (19,810 | ) | (22,556 | ) | |||||||||||
Total deferred tax assets | 3,870 | 5,707 | |||||||||||||
Deferred tax liabilities: | |||||||||||||||
Fixed assets | 461 | 448 | |||||||||||||
Loan servicing rights | 813 | 720 | |||||||||||||
Deferred loan costs | 413 | 205 | |||||||||||||
Prepaid expenses | 94 | 124 | |||||||||||||
Total deferred tax liabilities | 1,781 | 1,497 | |||||||||||||
Net deferred tax asset | $ | 2,089 | $ | 4,210 | |||||||||||
Schedule of valuation allowance for deferred tax assets | The following table summarizes the activity in the valuation allowance for deferred tax assets, as well as the corresponding accounting: | ||||||||||||||
For the Year Ended December 31, | |||||||||||||||
Accounting | 2014 | 2013 | 2012 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Beginning of year | $ | 22,556 | $ | 19,430 | $ | 18,650 | |||||||||
Change in unrealized losses (gains) on securities | Other Comprehensive Income | (1,992 | ) | 3,479 | 816 | ||||||||||
Change in unrealized losses (gains) on securities | Income tax expense (benefit) | — | 429 | — | |||||||||||
Change in tax planning strategies | Income tax expense (benefit) | 2,121 | — | — | |||||||||||
Change in deferred taxes | Income tax expense (benefit) | (2,852 | ) | (782 | ) | (36 | ) | ||||||||
Other | Income tax expense (benefit) | (23 | ) | — | — | ||||||||||
End of year | $ | 19,810 | $ | 22,556 | $ | 19,430 | |||||||||
Schedule of Unused net operating losses and expiration dates | The following table summarizes the amount and expiration dates of the Company’s unused net operating losses: | ||||||||||||||
As of December 31, 2014 | |||||||||||||||
(Dollars in thousands) | Amount | Expiration Dates | |||||||||||||
Federal | $ | 35,406 | 2032 - 2033 | ||||||||||||
North Carolina | $ | 43,203 | 2025 - 2028 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Earnings Per Share Tables | |||||
Schedule of reconciliation of average shares outstanding | The following is a reconciliation of the numerator and denominator of basic and diluted net income per share of common stock: | ||||
(Dollars in thousands, except per share amounts) | For the Year Ended December 31, 2014 | ||||
Numerator: | |||||
Net income | $ | 5,943 | |||
Denominator: | |||||
Weighted-average common shares outstanding - basic | 6,546,375 | ||||
Effect of dilutive shares | — | ||||
Weighted-average common shares outstanding - diluted | 6,546,375 | ||||
Earnings per share - basic | $ | 0.91 | |||
Earnings per share - diluted | $ | 0.91 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Income Loss Tables | |||||||||||||||||
Schedule of Accumulated other comprehensive income (loss) | The following table summarizes the components of accumulated other comprehensive income (loss) and changes in those components as of and for the years ended December 31: | ||||||||||||||||
Held to Maturity | Deferred Tax | ||||||||||||||||
Available | Securities | Valuation | |||||||||||||||
for Sale | Transferred | Allowance | |||||||||||||||
(Dollars in thousands) | Securities | from AFS | on AFS | Total | |||||||||||||
Balance, December 31, 2011 | $ | 2,573 | $ | — | $ | 1,435 | $ | 4,008 | |||||||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | (816 | ) | (816 | ) | |||||||||||
Change in unrealized holding gains (losses) on securities available for sale | 1,134 | — | — | 1,134 | |||||||||||||
Reclassification adjustment for net securities gains included in net income | (3,294 | ) | — | — | (3,294 | ) | |||||||||||
Income tax expense (benefit) | 853 | — | — | 853 | |||||||||||||
Balance, December 31, 2012 | $ | 1,266 | $ | — | $ | 619 | $ | 1,885 | |||||||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | (3,479 | ) | (3,479 | ) | |||||||||||
Change in unrealized holding gains (losses) on securities available for sale, net of income taxes | (9,431 | ) | — | — | (9,431 | ) | |||||||||||
Reclassification adjustment for net securities gains included in net income | (358 | ) | — | — | (358 | ) | |||||||||||
Transfer of net unrealized loss from available for sale to held to maturity | 1,263 | (1,263 | ) | — | — | ||||||||||||
Amortization of unrealized losses on securities transferred to held to maturity | — | 34 | — | 34 | |||||||||||||
Income tax expense (benefit) | 3,886 | (13 | ) | — | 3,873 | ||||||||||||
Balance, December 31, 2013 | $ | (3,374 | ) | $ | (1,242 | ) | $ | (2,860 | ) | $ | (7,476 | ) | |||||
Change in deferred tax valuation allowance attributable to unrealized gains (losses) on investment securities available for sale | — | — | 1,992 | 1,992 | |||||||||||||
Change in unrealized holding gains (losses) on securities available for sale, net of income taxes | 5,665 | — | — | 5,665 | |||||||||||||
Reclassification adjustment for net securities gains included in net income | (657 | ) | — | — | (657 | ) | |||||||||||
Transfer of net unrealized loss from available for sale to held to maturity | 74 | (74 | ) | — | — | ||||||||||||
Amortization of unrealized losses on securities transferred to held to maturity | — | 199 | — | 199 | |||||||||||||
Income tax expense (benefit) | (1,944 | ) | (48 | ) | — | (1,992 | ) | ||||||||||
Balance, December 31, 2014 | $ | (236 | ) | $ | (1,165 | ) | $ | (868 | ) | $ | (2,269 | ) |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulatory Matters Tables | |||||||||||||||||||||||||
Schedule of actual and required capital amounts and ratios | Following are the required and actual capital amounts and ratios for the Bank: | ||||||||||||||||||||||||
To meet the | |||||||||||||||||||||||||
For Capital | Requirements of the | ||||||||||||||||||||||||
Actual | Adequacy Purposes | Memorandum of Understanding | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier 1 Leverage Capital | $ | 105,556 | 11.91 | % | $ | 35,440 | >4% | $ | 70,880 | >8% | |||||||||||||||
Tier 1 Risk-based Capital | $ | 105,556 | 19.89 | % | $ | 21,231 | >4% | N/A | N/A | ||||||||||||||||
Total Risk-based Capital | $ | 112,246 | 21.15 | % | $ | 42,462 | >8% | $ | 58,386 | >11% | |||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier 1 Leverage Capital | $ | 54,775 | 7.02 | % | $ | 31,190 | >4% | $ | 62,380 | >8% | |||||||||||||||
Tier 1 Risk-based Capital | $ | 54,775 | 10.7 | % | $ | 20,484 | >4% | N/A | N/A | ||||||||||||||||
Total Risk-based Capital | $ | 61,274 | 11.97 | % | $ | 40,968 | >8% | $ | 56,331 | >11% | |||||||||||||||
Following are the required and actual capital amounts and ratios for the Company: | |||||||||||||||||||||||||
For Capital | |||||||||||||||||||||||||
Actual | Adequacy Purposes | ||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier I Leverage Capital | $ | 123,377 | 13.94 | % | $ | 35,398 | >4% | ||||||||||||||||||
Tier I Risk-based Capital | $ | 123,377 | 23.24 | % | $ | 21,236 | >4% | ||||||||||||||||||
Total Risk Based Capital | $ | 130,067 | 24.5 | % | $ | 42,472 | >8% | ||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier I Leverage Capital | $ | 53,806 | 6.9 | % | $ | 31,190 | >4% | ||||||||||||||||||
Tier I Risk-based Capital | $ | 53,806 | 10.52 | % | $ | 20,459 | >4% | ||||||||||||||||||
Total Risk Based Capital | $ | 60,297 | 11.79 | % | $ | 40,917 | >8% | ||||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments And Contingencies Tables | |||||||||||
Schedule of commitments to fund lines of credit | The following summarizes the Company’s approximate commitments to fund lines of credit: | ||||||||||
30-Sep-14 | |||||||||||
(Dollars in thousands) | |||||||||||
Home equity lines | $ | 62,992 | |||||||||
Consumer and other lines | 2,507 | ||||||||||
$ | 65,499 | ||||||||||
Schedule of Outstanding commitments to originate mortgage loans | The Company had outstanding commitments to originate mortgage loans as follows: | ||||||||||
31-Dec-14 | |||||||||||
Amount | Range of Rates | ||||||||||
(Dollar in thousands) | |||||||||||
Fixed | $ | 1,947 | 3.500% to 4.500% | ||||||||
Variable | 333 | 3.125% to 5.875% | |||||||||
$ | 2,280 |
FAIR_VALUE_DISCLOSURES_Tables
FAIR VALUE DISCLOSURES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Fair Value Disclosures Tables | |||||||||||||||||||||||||
Summary of assets and liabilities measured at fair value on a recurring basis | Assets and Liabilities Recorded at Fair Value on a Recurring Basis | ||||||||||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | 39,482 | $ | — | $ | 39,482 | |||||||||||||||||
Municipal securities | — | 25,558 | — | 25,558 | |||||||||||||||||||||
Mortgage-backed securities | — | 152,718 | — | 152,718 | |||||||||||||||||||||
U.S. Treasury securities | 1,510 | — | — | 1,510 | |||||||||||||||||||||
Mutual funds | 591 | — | — | 591 | |||||||||||||||||||||
2,101 | 217,758 | — | 219,859 | ||||||||||||||||||||||
Loan servicing rights | — | — | 2,187 | 2,187 | |||||||||||||||||||||
Forward sales commitments | — | — | 9 | 9 | |||||||||||||||||||||
Interest rate lock commitments | — | — | 52 | 52 | |||||||||||||||||||||
Total assets | $ | 2,101 | $ | 217,758 | $ | 2,248 | $ | 222,107 | |||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||||||
U.S. government agencies | $ | — | $ | 21,899 | $ | — | $ | 21,899 | |||||||||||||||||
Municipal securities | — | 25,602 | — | 25,602 | |||||||||||||||||||||
Mortgage-backed securities | — | 107,415 | — | 107,415 | |||||||||||||||||||||
Mutual fund | 568 | — | — | 568 | |||||||||||||||||||||
568 | 154,916 | — | 155,484 | ||||||||||||||||||||||
Loan servicing rights | — | — | 1,883 | 1,883 | |||||||||||||||||||||
Forward sales commitments | — | — | 12 | 12 | |||||||||||||||||||||
Total assets | $ | 568 | $ | 154,916 | $ | 1,895 | $ | 157,379 | |||||||||||||||||
Interest rate lock commitments | $ | — | $ | — | $ | 7 | $ | 7 | |||||||||||||||||
Total liabilities | $ | — | $ | — | $ | 7 | $ | 7 | |||||||||||||||||
Schedule of changes in assets measured at fair value on a recurring basis | The following table presents the changes in assets measured at fair value on a recurring basis for which we have utilized Level 3 inputs to determine fair value: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Balance at beginning of year | $ | 1,888 | $ | 1,908 | $ | 2,319 | |||||||||||||||||||
Loan servicing right activity, included in servicing income, net | |||||||||||||||||||||||||
Capitalization from loans sold | 385 | 736 | 461 | ||||||||||||||||||||||
Fair value adjustment | (81 | ) | (761 | ) | (872 | ) | |||||||||||||||||||
Mortgage derivative gains included in Other income | 56 | 5 | — | ||||||||||||||||||||||
Balance at end of year | $ | 2,248 | $ | 1,888 | $ | 1,908 | |||||||||||||||||||
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis | ||||||||||||||||||||||||
The table below presents information about certain assets and liabilities measured at fair value on a nonrecurring basis. There were no loans held for sale carried at fair value at either December 31, 2014 or 2013. | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||
One-to four family residential | $ | — | $ | — | $ | 6,407 | $ | 6,407 | |||||||||||||||||
Commercial real estate | — | — | 14,551 | 14,551 | |||||||||||||||||||||
Home equity loans and lines of credit | — | — | 1,456 | 1,456 | |||||||||||||||||||||
Other construction and land | — | — | 2,227 | 2,227 | |||||||||||||||||||||
Real estate owned: | |||||||||||||||||||||||||
One-to four family residential | — | — | 220 | 220 | |||||||||||||||||||||
Commercial real estate | — | — | 774 | 774 | |||||||||||||||||||||
Residential contruction | — | — | — | — | |||||||||||||||||||||
Other construction and land | — | — | 3,431 | 3,431 | |||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 29,066 | $ | 29,066 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Collateral dependent impaired loans: | |||||||||||||||||||||||||
One-to four family residential | $ | — | $ | — | $ | 4,663 | $ | 4,663 | |||||||||||||||||
Commercial real estate | — | — | 15,939 | 15,939 | |||||||||||||||||||||
Home equity loans and lines of credit | — | — | 1,444 | 1,444 | |||||||||||||||||||||
Other construction and land | — | — | 5,116 | 5,116 | |||||||||||||||||||||
Real estate owned: | |||||||||||||||||||||||||
One-to four family residential | — | — | 1,076 | 1,076 | |||||||||||||||||||||
Commercial real estate | — | — | 2,988 | 2,988 | |||||||||||||||||||||
Residential contruction | — | — | 210 | 210 | |||||||||||||||||||||
Other construction and land | — | — | 6,232 | 6,232 | |||||||||||||||||||||
Total assets | $ | — | $ | — | $ | 37,668 | $ | 37,668 | |||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurements | The following table provides information describing the unobservable inputs used in Level 3 fair value measurements at December 31, 2014. | ||||||||||||||||||||||||
Valuation Technique | Unobservable Input | General Range | |||||||||||||||||||||||
Impaired loans | Discounted Appraisals | Collateral discounts and estimated selling cost | 0 – 30% | ||||||||||||||||||||||
Real estate owned | Discounted Appraisals | Collateral discounts and estimated selling cost | 0 – 30% | ||||||||||||||||||||||
Loan servicing rights | Discounted Cash Flows | Prepayment speed | 6 – 25% | ||||||||||||||||||||||
Discount rate | 8 - 14% | ||||||||||||||||||||||||
Forward sales commitments and interest rate lock commitments | Change in market price of underlying loan | Value of underlying loan | 101 - 107% | ||||||||||||||||||||||
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The approximate carrying and estimated fair value of financial instruments are summarized below: | ||||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||||||
Carrying | |||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and equivalents | $ | 58,982 | $ | 58,982 | $ | 58,982 | $ | — | $ | — | |||||||||||||||
Securities available for sale | 219,859 | 219,859 | 2,101 | 217,758 | — | ||||||||||||||||||||
Securities held to maturity | 29,285 | 30,890 | — | 30,890 | — | ||||||||||||||||||||
Loans held for sale | 10,761 | 11,501 | — | 11,501 | — | ||||||||||||||||||||
Loans receivable, net | 529,407 | 546,450 | — | — | 546,450 | ||||||||||||||||||||
Other investments, at cost | 4,908 | 4,908 | — | 4,908 | — | ||||||||||||||||||||
Interest receivable | 2,925 | 2,925 | — | 2,925 | |||||||||||||||||||||
Bank owned life insurance | 20,417 | 20,417 | — | 20,417 | — | ||||||||||||||||||||
Loan servicing rights | 2,187 | 2,187 | — | — | 2,187 | ||||||||||||||||||||
Forward sales commitments | 9 | 9 | — | — | 9 | ||||||||||||||||||||
Interest rate lock commitments | 52 | 52 | — | — | 52 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Demand deposits | $ | 384,898 | $ | 384,898 | $ | — | $ | 384,898 | $ | — | |||||||||||||||
Time deposits | 318,219 | 321,491 | — | — | 321,491 | ||||||||||||||||||||
Federal Home Loan Bank advances | 60,000 | 62,108 | — | 62,108 | — | ||||||||||||||||||||
Junior subordinated debentures | 14,433 | 14,433 | — | 14,433 | — | ||||||||||||||||||||
Accrued interest payable | 323 | 323 | — | 323 | — | ||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||||||
Carrying | |||||||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||
Cash and equivalents | $ | 34,316 | $ | 34,316 | $ | 34,316 | $ | — | $ | — | |||||||||||||||
Securities available for sale | 155,484 | 155,484 | 568 | 154,916 | — | ||||||||||||||||||||
Securities held to maturity | 20,988 | 20,098 | — | 20,098 | — | ||||||||||||||||||||
Loans held for sale | 5,688 | 6,151 | — | 6,151 | — | ||||||||||||||||||||
Loans receivable, net | 507,623 | 520,244 | — | — | 520,244 | ||||||||||||||||||||
Other investments, at cost | 3,659 | 3,659 | — | 3,659 | — | ||||||||||||||||||||
Interest receivable | 2,673 | 2,673 | — | 2,673 | — | ||||||||||||||||||||
Bank owned life insurance | 19,961 | 19,961 | — | 19,961 | — | ||||||||||||||||||||
Loan servicing rights | 1,883 | 1,883 | — | — | 1,883 | ||||||||||||||||||||
Forward sales commitments | 12 | 12 | — | — | 12 | ||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||
Demand deposits | $ | 360,869 | $ | 360,869 | $ | — | $ | 360,869 | $ | — | |||||||||||||||
Time deposits | 323,357 | 327,280 | — | — | 327,280 | ||||||||||||||||||||
Federal Home Loan Bank advances | 40,000 | 41,845 | — | 41,845 | — | ||||||||||||||||||||
Junior subordinated debentures | 14,433 | 14,433 | — | 14,433 | — | ||||||||||||||||||||
Accrued interest payable | 2,023 | 2,023 | — | 2,023 | — | ||||||||||||||||||||
Interest rate lock commitments | 7 | 7 | — | — | 7 |
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Parent Company Financial Information Tables | |||||||||
Schedule of Condensed Balance Sheet | Condensed Balance Sheets | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 17,652 | $ | 475 | |||||
Equity investment in subsidiary | 103,498 | 47,487 | |||||||
Equity investment in trust | 433 | 433 | |||||||
Other assets | 169 | 123 | |||||||
Total assets | $ | 121,752 | $ | 48,518 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Junior Subordinated Debentures | $ | 14,433 | $ | 14,433 | |||||
Accrued Interest Payable | — | 1,567 | |||||||
Shareholders’ Equity | 107,319 | 32,518 | |||||||
Total liabilities and shareholders’ equity | $ | 121,752 | $ | 48,518 | |||||
Schedule of Condensed Income Statement | Condensed Statements of Operations | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Income | |||||||||
Interest income | $ | 78 | $ | — | |||||
Dividends from subsidiary | — | — | |||||||
78 | — | ||||||||
Expenses | |||||||||
Interest | 509 | 490 | |||||||
Other | 29 | 38 | |||||||
538 | 528 | ||||||||
Loss before income taxes and equity in undistributed income of subsidiary | (460 | ) | (528 | ) | |||||
Income tax benefit allocated from consolidated income tax return | 180 | 172 | |||||||
Loss before equity in undistributed income (loss) of subsidiary | (280 | ) | (356 | ) | |||||
Equity in undistributed income (loss) of subsidiary | 6,223 | (59 | ) | ||||||
Net income (loss) | $ | 5,943 | $ | (415 | ) | ||||
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Operating activities: | |||||||||
Net income (loss) | $ | 5,943 | $ | (415 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Equity in undistributed earnings of subsdiary | (6,223 | ) | 59 | ||||||
Increase (decrease) in other assets | (46 | ) | 6 | ||||||
(Decrease) increase in other liabilities | (1,567 | ) | 484 | ||||||
Net cash provided (used in) by operating activities | $ | (1,893 | ) | $ | 134 | ||||
Investing activities: | |||||||||
Investment in subsidiary | $ | (44,581 | ) | $ | — | ||||
Net cash used in investing activities | $ | (44,581 | ) | $ | — | ||||
Financing activities: | |||||||||
Proceeds from sale of common stock | $ | 63,651 | $ | — | |||||
Net cash provided by financing activities | $ | 63,651 | $ | — | |||||
Increase in cash and cash equivalents | 17,177 | 134 | |||||||
Cash and cash equivalents, beginning of year | 475 | 341 | |||||||
Cash and cash equivalents, end of year | $ | 17,652 | $ | 475 |
ORGANIZATION_Details_Narrative
ORGANIZATION (Details Narrative) | Dec. 31, 2014 |
Organization Details Narrative | |
Ownership percentage in Macon Capital Trust I | 100.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash with Federal Reserve Bank | $600 | $400 | |
Advertising Expense | 300 | 300 | 300 |
Debt issuance costs of the Junior Subordinated Notes | $100 | $100 | |
Minimum [Member] | |||
Estimated useful lives of the assets | 4 years | ||
Maximum [Member] | |||
Estimated useful lives of the assets | 30 years |
STOCK_CONVERSION_AND_CHANGE_IN2
STOCK CONVERSION AND CHANGE IN CORPORATE FORM (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Conversion And Change In Corporate Form Details | |||
Common stock, shares, issued | 6,546,375 | 0 | |
Common stock price per share | $10 | ||
Proceeds from issuance of common stock, gross | $65,464 | ||
Stock issuance costs | -1,813 | ||
Proceeds from issuance of common stock, net | 63,651 | ||
Amount contributed to the capital of the bank from stock conversion | 44,581 | ||
Amount Retained by the Company from stock conversion | $19,070 | ||
Amount contributed to the capital of the bank from stock conversion, percentage | 70.00% |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | $220,241 | $160,947 |
Gross Unrealized Gains | 944 | 688 |
Gross Unrealized Losses | -1,326 | -6,151 |
Estimated fair value | 219,859 | 155,484 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 39,540 | 22,977 |
Gross Unrealized Gains | 65 | |
Gross Unrealized Losses | -123 | -1,078 |
Estimated fair value | 39,482 | 21,899 |
Municipal Securities [Member] | ||
Amortized Cost | 25,483 | 26,963 |
Gross Unrealized Gains | 225 | 114 |
Gross Unrealized Losses | -150 | -1,475 |
Estimated fair value | 25,558 | 25,602 |
Mortgage-backed Securities [Member] | ||
Amortized Cost | 153,128 | 110,431 |
Gross Unrealized Gains | 643 | 574 |
Gross Unrealized Losses | -1,053 | -3,590 |
Estimated fair value | 152,718 | 107,415 |
U.S. Treasury securities [Member] | ||
Amortized Cost | 1,500 | |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | ||
Estimated fair value | 1,510 | |
Mutual funds [Member] | ||
Amortized Cost | 590 | 576 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | -8 | |
Estimated fair value | $591 | $568 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost | $29,285 | $20,988 |
Gross Unrealized Gains | 1,610 | |
Gross Unrealized Losses | -5 | |
Estimated Fair Value | 30,890 | 20,098 |
U.S. Government Agencies [Member] | ||
Amortized Cost | 23,193 | 20,988 |
Gross Unrealized Gains | 1,420 | |
Gross Unrealized Losses | -5 | -890 |
Estimated Fair Value | 24,608 | 20,098 |
Municipal Securities [Member] | ||
Amortized Cost | 4,392 | |
Gross Unrealized Gains | 190 | |
Gross Unrealized Losses | ||
Estimated Fair Value | 4,582 | |
Trust preferred securities [Member] | ||
Amortized Cost | 1,000 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Estimated Fair Value | 1,000 | |
Corporate debt securities [Member] | ||
Amortized Cost | 700 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Estimated Fair Value | $700 |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities Details 3 | |||
Book value | $4,473 | $23,000 | |
Market value | 4,399 | 20,954 | |
Unrealized loss | $74 | $2,046 |
INVESTMENT_SECURITIES_Details_2
INVESTMENT SECURITIES (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities Details 3 | |||
Beginning unrealized loss related to HTM securities previously recognized in OCI | $2,012 | ||
Additions for transfers to HTM | 74 | 2,046 | |
Amortization of unrealized losses on HTM securities previously recognized in OCI | -199 | -34 | |
Ending unrealized loss in OCI related to HTM securities previously recognized in OCI | $1,887 | $2,012 |
INVESTMENT_SECURITIES_Details_3
INVESTMENT SECURITIES (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Held to maturity, Less Than 12 Months Fair Value | $1,995 | $20,098 |
Held to maturity, Less Than 12 Months Unrealized Losses | 5 | 890 |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | 1,995 | 20,098 |
Held to maturity, Unrealized Losses | 5 | 890 |
Available for sale, Less Than 12 Months Fair Value | 57,341 | 114,956 |
Available for sale, Less Than 12 Months Unrealized Losses | 281 | 4,942 |
Available for sale, Over 12 Months Fair Value | 62,506 | 12,335 |
Available for sale, Over 12 Months Unrealized Losses | 1,045 | 1,209 |
Available for sale, Fair Value | 119,847 | 127,291 |
Available for sale, Unrealized Losses | 1,326 | 6,151 |
U.S. Government Agencies [Member] | ||
Held to maturity, Less Than 12 Months Fair Value | 1,995 | 20,098 |
Held to maturity, Less Than 12 Months Unrealized Losses | 5 | 890 |
Held to maturity, Over 12 Months Fair Value | ||
Held to maturity, Over 12 Months Unrealized Losses | ||
Held to maturity, Fair Value | 1,995 | 20,098 |
Held to maturity, Unrealized Losses | 5 | 890 |
Available for sale, Less Than 12 Months Fair Value | 14,472 | 21,899 |
Available for sale, Less Than 12 Months Unrealized Losses | 15 | 1,078 |
Available for sale, Over 12 Months Fair Value | 7,893 | |
Available for sale, Over 12 Months Unrealized Losses | 108 | |
Available for sale, Fair Value | 22,365 | 21,899 |
Available for sale, Unrealized Losses | 123 | 1,078 |
Municipal Securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 4,306 | 18,653 |
Available for sale, Less Than 12 Months Unrealized Losses | 49 | 1,201 |
Available for sale, Over 12 Months Fair Value | 8,409 | 2,409 |
Available for sale, Over 12 Months Unrealized Losses | 101 | 274 |
Available for sale, Fair Value | 12,715 | 21,062 |
Available for sale, Unrealized Losses | 150 | 1,475 |
Mortgage-backed Securities [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 38,563 | 73,836 |
Available for sale, Less Than 12 Months Unrealized Losses | 217 | 2,655 |
Available for sale, Over 12 Months Fair Value | 46,204 | 9,926 |
Available for sale, Over 12 Months Unrealized Losses | 836 | 935 |
Available for sale, Fair Value | 84,767 | 83,762 |
Available for sale, Unrealized Losses | 1,053 | 3,590 |
Mutual funds [Member] | ||
Available for sale, Less Than 12 Months Fair Value | 568 | |
Available for sale, Less Than 12 Months Unrealized Losses | 8 | |
Available for sale, Over 12 Months Fair Value | ||
Available for sale, Over 12 Months Unrealized Losses | ||
Available for sale, Fair Value | 568 | |
Available for sale, Unrealized Losses | $8 |
INVESTMENT_SECURITIES_Details_4
INVESTMENT SECURITIES (Details 6) | Dec. 31, 2014 | Dec. 31, 2013 |
Securities | Securities | |
Number of securities less than 12 months | 46 | 101 |
Number of securities more than 12 months | 49 | 13 |
Number of securities | 95 | 114 |
U.S. Government Agencies [Member] | ||
Number of securities less than 12 months | 11 | 17 |
Number of securities more than 12 months | 3 | |
Number of securities | 14 | 17 |
Municipal Securities [Member] | ||
Number of securities less than 12 months | 9 | 43 |
Number of securities more than 12 months | 19 | 5 |
Number of securities | 28 | 48 |
Mortgage-backed Securities [Member] | ||
Number of securities less than 12 months | 26 | 40 |
Number of securities more than 12 months | 27 | 8 |
Number of securities | 53 | 48 |
Mutual funds [Member] | ||
Number of securities less than 12 months | 1 | |
Number of securities more than 12 months | ||
Number of securities | 1 |
INVESTMENT_SECURITIES_Details_5
INVESTMENT SECURITIES (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities Details 7 | |||
Gross proceeds | $19,170 | $36,404 | $147,826 |
Gross realized gains | 680 | 522 | 3,321 |
Gross realized losses | 164 | 27 | |
Securities pledged against deposits | $10,700 | $6,800 |
INVESTMENT_SECURITIES_Details_6
INVESTMENT SECURITIES (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment Securities Details 7 | ||
Available for sale, Over 1 year through 5 years, Amortized Cost | $26,233 | |
Available for sale, After 5 years through 10 years, Amortized Cost | 20,543 | |
Available for sale, Over 10 years, Amortized Cost | 20,337 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Amortized Cost | 67,113 | |
Available for sale, Mortgage-backed securities, Amortized Cost | 153,128 | |
Available for sale, Total, Amortized Cost | 220,241 | |
Available for Sale, Over 1 year through 5 years, Fair Value | 26,214 | |
Available for Sale, After 5 years through 10 years, Fair Value | 20,472 | |
Available for Sale, Over 10 years, Fair Value | 20,455 | |
Available for sale, Before Amortized Cost Available for sale, Mortgage-backed securities, Fair Value | 67,141 | |
Available for Sale, Mortgage-backed securities, Fair Value | 152,718 | |
Available for Sale, Total, Fair Value | 219,859 | |
Held to Maturity, After 5 years through 10 years, Amortized Cost | 2,909 | |
Held to Maturity, Over 10 years, Amortized Cost | 26,376 | |
Held to Maturity, Total, Amortized Cost | 29,285 | 20,988 |
Held to Maturity, After 5 years through 10 years, Fair Value | 2,913 | |
Held to Maturity, Over 10 years, Fair Value | 27,977 | |
Held to Maturity, Total, Fair Value | $30,890 | $20,098 |
LOANS_RECEIVABLE_Details
LOANS RECEIVABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $543,661 | $523,807 |
Less: Net deferred loan fees | -1,695 | -1,933 |
Unamortized discount | -1,487 | |
Loans receivable, net | 540,479 | 521,874 |
One To Four Family Residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 227,209 | 225,520 |
Commercial Real Estate Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 179,435 | 155,633 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 56,561 | 56,836 |
Residential Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 7,823 | 8,952 |
Other Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 50,298 | 64,927 |
Real Estate Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 521,326 | 511,868 |
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 19,135 | 8,285 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | 3,200 | 3,654 |
Commercial and Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable, gross | $22,335 | $11,939 |
LOANS_RECEIVABLE_Detail_Narrat
LOANS RECEIVABLE (Detail Narrative) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Restructuring of loan | $23,960 | $24,990 | |||
Federal Deposit Insurance Corporation [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Originated loans and purchased percentage | 50.00% | ||||
Outstanding loan balance purchased | 9,300 | ||||
Discount on loans purchased | 2,600 | 2,607 | |||
Repayment for loan purchased | 2,800 | ||||
Discount on payments | 600 | ||||
Deferred interest income recognized | 300 | ||||
Restructuring of loan | 1,800 | ||||
Interest income recognized for repayments and restructurings | 200 | 755 | |||
Federal Reserve Bank Advances [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral to secure funding amount | 92,800 | 97,700 | |||
Federal Home Loan Bank of Atlanta [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans pledged as collateral to secure funding amount | $117,900 | $107,100 |
LOANS_RECEIVABLE_Details_2
LOANS RECEIVABLE (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Discount on purchased loans, end of period | $1,695 | $1,933 | |||
Federal Deposit Insurance Corporation [Member] | |||||
Discount on purchased loans, beginning of period | |||||
Additional discount for new purchases | 2,600 | 2,607 | |||
Accretion | -365 | ||||
Interest income recognized for repayments and restructurings | -200 | -755 | |||
Discount on purchased loans, end of period | $1,487 |
LOANS_RECEIVABLE_Details_3
LOANS RECEIVABLE (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loans Receivable Details 3 | ||
Balance at beginning of year | $9,827 | $10,565 |
New loans | 1,695 | 1,122 |
Repayments | -2,215 | -1,860 |
Balance at end of year | $9,307 | $9,827 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta
ALLOWANCE FOR LOAN LOSSES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $14,251 | $14,874 | $16,710 |
Provision | 33 | 4,358 | 7,878 |
Charge-offs | 4,554 | 6,649 | 11,636 |
Recoveries | 1,342 | 1,668 | 1,922 |
Balance, end of period | 11,072 | 14,251 | 14,874 |
One To Four Family Residential [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 3,693 | 4,620 | 4,571 |
Provision | -201 | -77 | 2,081 |
Charge-offs | 702 | 1,283 | 2,511 |
Recoveries | 193 | 433 | 479 |
Balance, end of period | 2,983 | 3,693 | 4,620 |
Commercial Real Estate Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 4,360 | 2,973 | 4,338 |
Provision | 408 | 3,471 | 236 |
Charge-offs | 2,415 | 2,209 | 1,850 |
Recoveries | 364 | 125 | 249 |
Balance, end of period | 2,717 | 4,360 | 2,973 |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,580 | 2,002 | 1,562 |
Provision | 310 | 316 | 1,950 |
Charge-offs | 598 | 760 | 1,617 |
Recoveries | 41 | 22 | 107 |
Balance, end of period | 1,333 | 1,580 | 2,002 |
Residential Construction [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 501 | 429 | 397 |
Provision | 9 | 154 | 372 |
Charge-offs | 193 | 391 | |
Recoveries | 111 | 51 | |
Balance, end of period | 510 | 501 | 429 |
Other Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 3,516 | 4,059 | 5,456 |
Provision | -232 | 430 | 2,112 |
Charge-offs | 566 | 1,512 | 4,151 |
Recoveries | 218 | 539 | 642 |
Balance, end of period | 2,936 | 3,516 | 4,059 |
Commercial Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 336 | 379 | 300 |
Provision | -58 | -57 | 250 |
Charge-offs | 133 | 17 | 295 |
Recoveries | 163 | 31 | 124 |
Balance, end of period | 308 | 336 | 379 |
Consumer Portfolio Segment [Member] | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 265 | 412 | 86 |
Provision | -203 | 121 | 877 |
Charge-offs | 140 | 675 | 821 |
Recoveries | 363 | 407 | 270 |
Balance, end of period | $285 | $265 | $412 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta1
ALLOWANCE FOR LOAN LOSSES (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | $1,676 | $4,068 | ||
Collectively evaluated for impairment | 9,396 | 10,183 | ||
Balance, end of period | 11,072 | 14,251 | 14,874 | 16,710 |
Loans Receivable | ||||
Individually evaluated for impairment | 33,665 | 40,070 | ||
Collectively evaluated for impairment | 509,996 | 483,737 | ||
Total Loans Receivable | 543,661 | 523,807 | ||
One To Four Family Residential [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 719 | 1,152 | ||
Collectively evaluated for impairment | 2,264 | 2,541 | ||
Balance, end of period | 2,983 | 3,693 | 4,620 | 4,571 |
Loans Receivable | ||||
Individually evaluated for impairment | 9,912 | 9,865 | ||
Collectively evaluated for impairment | 217,297 | 215,655 | ||
Total Loans Receivable | 227,209 | 225,520 | ||
Commercial Real Estate Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 235 | 2,329 | ||
Collectively evaluated for impairment | 2,482 | 2,031 | ||
Balance, end of period | 2,717 | 4,360 | 2,973 | 4,338 |
Loans Receivable | ||||
Individually evaluated for impairment | 17,828 | 20,943 | ||
Collectively evaluated for impairment | 161,607 | 134,690 | ||
Total Loans Receivable | 179,435 | 155,633 | ||
Home Equity Line of Credit [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 14 | 168 | ||
Collectively evaluated for impairment | 1,319 | 1,412 | ||
Balance, end of period | 1,333 | 1,580 | 2,002 | 1,562 |
Loans Receivable | ||||
Individually evaluated for impairment | 1,686 | 1,612 | ||
Collectively evaluated for impairment | 54,875 | 55,224 | ||
Total Loans Receivable | 56,561 | 56,836 | ||
Residential Construction [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 510 | 501 | ||
Balance, end of period | 510 | 501 | 429 | 397 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 7,823 | 8,952 | ||
Total Loans Receivable | 7,823 | 8,952 | ||
Other Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 705 | 318 | ||
Collectively evaluated for impairment | 2,231 | 3,198 | ||
Balance, end of period | 2,936 | 3,516 | 4,059 | 5,456 |
Loans Receivable | ||||
Individually evaluated for impairment | 3,911 | 7,119 | ||
Collectively evaluated for impairment | 46,387 | 57,808 | ||
Total Loans Receivable | 50,298 | 64,927 | ||
Commercial Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | 3 | 101 | ||
Collectively evaluated for impairment | 305 | 235 | ||
Balance, end of period | 308 | 336 | 379 | 300 |
Loans Receivable | ||||
Individually evaluated for impairment | 328 | 531 | ||
Collectively evaluated for impairment | 18,807 | 7,754 | ||
Total Loans Receivable | 19,135 | 8,285 | ||
Consumer Portfolio Segment [Member] | ||||
Allowance for loan losses | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 285 | 265 | ||
Balance, end of period | 285 | 265 | 412 | 86 |
Loans Receivable | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 3,200 | 3,654 | ||
Total Loans Receivable | $3,200 | $3,654 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta2
ALLOWANCE FOR LOAN LOSSES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Reported amount | $543,661 | $523,807 |
One To Four Family Residential [Member] | ||
Loans Reported amount | 227,209 | 225,520 |
Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 19,135 | 8,285 |
Home Equity Line of Credit [Member] | ||
Loans Reported amount | 56,561 | 56,836 |
Residential Construction [Member] | ||
Loans Reported amount | 7,823 | 8,952 |
Other Portfolio Segment [Member] | ||
Loans Reported amount | 50,298 | 64,927 |
Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 179,435 | 155,633 |
Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 3,200 | 3,654 |
Graded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 179,572 | 200,259 |
Graded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 13,394 | 8,191 |
Graded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 29,338 | 34,126 |
Graded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 6,639 | 6,555 |
Graded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 43,060 | 60,613 |
Graded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 177,541 | 155,612 |
Graded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 1,073 | 1,578 |
Graded Loan [Member] | Loan Grade One [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 2,511 | 176 |
Graded Loan [Member] | Loan Grade One [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade One [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 68 | |
Graded Loan [Member] | Loan Grade One [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 20 | |
Graded Loan [Member] | Loan Grade Two [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 100 | 100 |
Graded Loan [Member] | Loan Grade Two [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Two [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Three [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 63,065 | 73,574 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 483 | 598 |
Graded Loan [Member] | Loan Grade Three [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 5,978 | 6,720 |
Graded Loan [Member] | Loan Grade Three [Member] | Residential Construction [Member] | ||
Loans Reported amount | 690 | 607 |
Graded Loan [Member] | Loan Grade Three [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 5,154 | 6,241 |
Graded Loan [Member] | Loan Grade Three [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 14,356 | 11,960 |
Graded Loan [Member] | Loan Grade Three [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 454 | 477 |
Graded Loan [Member] | Loan Grade Four [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 58,948 | 64,548 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 2,917 | 1,000 |
Graded Loan [Member] | Loan Grade Four [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 10,424 | 12,250 |
Graded Loan [Member] | Loan Grade Four [Member] | Residential Construction [Member] | ||
Loans Reported amount | 2,327 | 2,670 |
Graded Loan [Member] | Loan Grade Four [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 9,027 | 14,489 |
Graded Loan [Member] | Loan Grade Four [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 37,349 | 28,164 |
Graded Loan [Member] | Loan Grade Four [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 419 | 231 |
Graded Loan [Member] | Loan Grade Five [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 44,445 | 41,272 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 6,399 | 4,232 |
Graded Loan [Member] | Loan Grade Five [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 10,486 | 11,625 |
Graded Loan [Member] | Loan Grade Five [Member] | Residential Construction [Member] | ||
Loans Reported amount | 3,048 | 1,555 |
Graded Loan [Member] | Loan Grade Five [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 21,024 | 25,926 |
Graded Loan [Member] | Loan Grade Five [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 90,397 | 72,975 |
Graded Loan [Member] | Loan Grade Five [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 179 | 855 |
Graded Loan [Member] | Loan Grade Six [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 5,714 | 10,362 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 429 | 1,495 |
Graded Loan [Member] | Loan Grade Six [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 882 | 1,578 |
Graded Loan [Member] | Loan Grade Six [Member] | Residential Construction [Member] | ||
Loans Reported amount | 574 | 1,723 |
Graded Loan [Member] | Loan Grade Six [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 2,451 | 4,331 |
Graded Loan [Member] | Loan Grade Six [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 21,232 | 18,167 |
Graded Loan [Member] | Loan Grade Six [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 1 | 14 |
Graded Loan [Member] | Loan Grade Seven [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 7,400 | 10,503 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 555 | 590 |
Graded Loan [Member] | Loan Grade Seven [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 1,568 | 1,953 |
Graded Loan [Member] | Loan Grade Seven [Member] | Residential Construction [Member] | ||
Loans Reported amount | ||
Graded Loan [Member] | Loan Grade Seven [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 5,404 | 9,626 |
Graded Loan [Member] | Loan Grade Seven [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 14,139 | 24,346 |
Graded Loan [Member] | Loan Grade Seven [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 1 | |
UnGraded Loan [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 47,637 | 25,261 |
UnGraded Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 5,741 | 94 |
UnGraded Loan [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 27,223 | 22,710 |
UnGraded Loan [Member] | Residential Construction [Member] | ||
Loans Reported amount | 1,184 | 2,397 |
UnGraded Loan [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 7,238 | 4,314 |
UnGraded Loan [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 1,894 | 21 |
UnGraded Loan [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 2,127 | 2,076 |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 1,390 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | ||
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 359 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 65 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 165 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 158 | |
UnGraded Loan [Member] | Nonperforming Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | 2 | |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | One To Four Family Residential [Member] | ||
Loans Reported amount | 46,247 | 25,261 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Portfolio Segment [Member] | ||
Loans Reported amount | 5,741 | 94 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Home Equity Line of Credit [Member] | ||
Loans Reported amount | 26,864 | 22,710 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Residential Construction [Member] | ||
Loans Reported amount | 1,119 | 2,397 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Other Portfolio Segment [Member] | ||
Loans Reported amount | 7,073 | 4,314 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Loans Reported amount | 1,736 | 21 |
UnGraded Loan [Member] | Performing Financing Receivable [Member] | Consumer Portfolio Segment [Member] | ||
Loans Reported amount | $2,125 | $2,076 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta3
ALLOWANCE FOR LOAN LOSSES (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | $10,768 | $11,235 |
60-89 Days Past | 2,875 | 980 |
90 Days and Over Past Due | 4,973 | 4,629 |
Total Past Due | 18,616 | 16,844 |
Current | 525,045 | 506,963 |
Total Loans Receivable | 543,661 | 523,807 |
One To Four Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 6,298 | 5,539 |
60-89 Days Past | 448 | 669 |
90 Days and Over Past Due | 2,669 | 2,587 |
Total Past Due | 9,415 | 8,795 |
Current | 217,794 | 216,725 |
Total Loans Receivable | 227,209 | 225,520 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 2,136 | 4,746 |
60-89 Days Past | 909 | 53 |
90 Days and Over Past Due | 1,006 | 722 |
Total Past Due | 4,051 | 5,521 |
Current | 175,384 | 150,112 |
Total Loans Receivable | 179,435 | 155,633 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 557 | 313 |
60-89 Days Past | 528 | 29 |
90 Days and Over Past Due | 759 | 350 |
Total Past Due | 1,844 | 692 |
Current | 54,717 | 56,144 |
Total Loans Receivable | 56,561 | 56,836 |
Residential Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 120 | |
60-89 Days Past | ||
90 Days and Over Past Due | 65 | |
Total Past Due | 65 | 120 |
Current | 7,758 | 8,832 |
Total Loans Receivable | 7,823 | 8,952 |
Other Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 1,530 | 499 |
60-89 Days Past | 964 | 185 |
90 Days and Over Past Due | 473 | 970 |
Total Past Due | 2,967 | 1,654 |
Current | 47,331 | 63,273 |
Total Loans Receivable | 50,298 | 64,927 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | ||
60-89 Days Past | 22 | 35 |
90 Days and Over Past Due | ||
Total Past Due | 22 | 35 |
Current | 19,113 | 8,250 |
Total Loans Receivable | 19,135 | 8,285 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30-59 Days Past Due | 247 | 18 |
60-89 Days Past | 4 | 9 |
90 Days and Over Past Due | 1 | |
Total Past Due | 252 | 27 |
Current | 2,948 | 3,627 |
Total Loans Receivable | $3,200 | $3,654 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta4
ALLOWANCE FOR LOAN LOSSES (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | $23,612 | $19,282 |
Unpaid Principal Balance, without a valuation allowance | 27,102 | 21,783 |
Recorded Balance, Recorded Balance, with a valuation allowance | 10,053 | 20,788 |
Unpaid Principal Balance, with a valuation allowance | 10,260 | 20,788 |
Recorded Balance | 33,665 | 40,070 |
Unpaid Principal Balance | 37,362 | 42,571 |
Specific Allowance | 1,676 | 4,068 |
One To Four Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 5,943 | 4,158 |
Unpaid Principal Balance, without a valuation allowance | 6,096 | 4,539 |
Recorded Balance, Recorded Balance, with a valuation allowance | 3,969 | 5,707 |
Unpaid Principal Balance, with a valuation allowance | 4,028 | 5,707 |
Recorded Balance | 9,912 | 9,865 |
Unpaid Principal Balance | 10,124 | 10,246 |
Specific Allowance | 719 | 1,152 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 14,231 | 8,567 |
Unpaid Principal Balance, without a valuation allowance | 16,515 | 9,518 |
Recorded Balance, Recorded Balance, with a valuation allowance | 3,597 | 12,376 |
Unpaid Principal Balance, with a valuation allowance | 3,745 | 12,376 |
Recorded Balance | 17,828 | 20,943 |
Unpaid Principal Balance | 20,260 | 21,894 |
Specific Allowance | 235 | 2,329 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 1,537 | 1,102 |
Unpaid Principal Balance, without a valuation allowance | 1,912 | 1,262 |
Recorded Balance, Recorded Balance, with a valuation allowance | 149 | 510 |
Unpaid Principal Balance, with a valuation allowance | 149 | 510 |
Recorded Balance | 1,686 | 1,612 |
Unpaid Principal Balance | 2,061 | 1,772 |
Specific Allowance | 14 | 168 |
Residential Construction [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Recorded Balance, Recorded Balance, with a valuation allowance | ||
Unpaid Principal Balance, with a valuation allowance | ||
Recorded Balance | ||
Unpaid Principal Balance | ||
Specific Allowance | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | 1,901 | 5,455 |
Unpaid Principal Balance, without a valuation allowance | 2,579 | 6,464 |
Recorded Balance, Recorded Balance, with a valuation allowance | 2,010 | 1,664 |
Unpaid Principal Balance, with a valuation allowance | 2,010 | 1,664 |
Recorded Balance | 3,911 | 7,119 |
Unpaid Principal Balance | 4,589 | 8,128 |
Specific Allowance | 705 | 318 |
Commercial and Consumer Loan [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Recorded Balance, Recorded Balance, with a valuation allowance | 328 | |
Unpaid Principal Balance, with a valuation allowance | 328 | |
Recorded Balance | 328 | |
Unpaid Principal Balance | 328 | |
Specific Allowance | 3 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Balance, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Recorded Balance, Recorded Balance, with a valuation allowance | 531 | |
Unpaid Principal Balance, with a valuation allowance | 531 | |
Recorded Balance | 531 | |
Unpaid Principal Balance | 531 | |
Specific Allowance | $101 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta5
ALLOWANCE FOR LOAN LOSSES (Details 6) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Average Investment in Impaired Loans, without a valuation allowance | $24,394 | $21,941 | $18,123 |
Interest Income Recognized, without a valuation allowance | 1,029 | 1,261 | 568 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 10,288 | 11,119 | 20,225 |
Interest Income Recognized, with a valuation allowance | 396 | 462 | 1,217 |
Average Investment in Impaired Loans | 34,682 | 33,060 | 38,348 |
Interest Income Recognized | 1,425 | 1,723 | 1,785 |
One To Four Family Residential [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 6,079 | 4,586 | 1,856 |
Interest Income Recognized, without a valuation allowance | 242 | 160 | 69 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 4,048 | 5,664 | 7,516 |
Interest Income Recognized, with a valuation allowance | 137 | 221 | 276 |
Average Investment in Impaired Loans | 10,127 | 10,250 | 9,372 |
Interest Income Recognized | 379 | 381 | 345 |
Commercial Real Estate Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 14,255 | 6,653 | 9,610 |
Interest Income Recognized, without a valuation allowance | 664 | 318 | 527 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 3,715 | 9,552 | 3,660 |
Interest Income Recognized, with a valuation allowance | 152 | 796 | 161 |
Average Investment in Impaired Loans | 17,970 | 16,205 | 13,270 |
Interest Income Recognized | 816 | 1,114 | 688 |
Home Equity Line of Credit [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 1,728 | 1,255 | 1,267 |
Interest Income Recognized, without a valuation allowance | 53 | 46 | 46 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 149 | 511 | 248 |
Interest Income Recognized, with a valuation allowance | 6 | 19 | 12 |
Average Investment in Impaired Loans | 1,877 | 1,766 | 1,515 |
Interest Income Recognized | 59 | 65 | 58 |
Residential Construction [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 740 | ||
Interest Income Recognized, without a valuation allowance | 25 | ||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | |||
Interest Income Recognized, with a valuation allowance | |||
Average Investment in Impaired Loans | 740 | ||
Interest Income Recognized | 25 | ||
Other Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | 2,332 | 6,490 | 7,607 |
Interest Income Recognized, without a valuation allowance | 70 | 528 | 110 |
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 2,042 | 937 | 2,550 |
Interest Income Recognized, with a valuation allowance | 81 | 40 | 111 |
Average Investment in Impaired Loans | 4,374 | 7,427 | 10,157 |
Interest Income Recognized | 151 | 568 | 221 |
Consumer Portfolio Segment [Member] | |||
Average Investment in Impaired Loans, without a valuation allowance | |||
Interest Income Recognized, without a valuation allowance | |||
Average Investment in Impaired Loans, Interest Income Recognized, with a valuation allowance | 334 | 347 | 359 |
Interest Income Recognized, with a valuation allowance | 20 | 21 | 22 |
Average Investment in Impaired Loans | 334 | 347 | 359 |
Interest Income Recognized | $20 | $21 | $22 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta6
ALLOWANCE FOR LOAN LOSSES (Details 7) (Nonperforming Financing Receivable [Member], Loans [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $16,780 | $15,627 |
One To Four Family Residential [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 5,661 | 2,794 |
Commercial Real Estate Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 7,011 | 10,212 |
Home Equity Line of Credit [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 1,347 | 350 |
Residential Construction [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 65 | |
Other Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 2,679 | 2,068 |
Commercial Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | 15 | 190 |
Consumer Portfolio Segment [Member] | ||
Non Performing Loan Receivables and Other Assets [Line Items] | ||
Finance receivable, non-accrual | $2 | $13 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta7
ALLOWANCE FOR LOAN LOSSES (Details 8) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $23,960 | $24,990 |
Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 18,760 | 23,015 |
Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 5,200 | 1,975 |
One To Four Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 6,475 | 6,429 |
One To Four Family Residential [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 5,760 | 5,786 |
One To Four Family Residential [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 715 | 643 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 14,507 | 11,384 |
Commercial Real Estate Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 10,710 | 10,690 |
Commercial Real Estate Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 3,797 | 694 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 443 | 510 |
Home Equity Line of Credit [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 443 | 510 |
Home Equity Line of Credit [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Residential Construction [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | ||
Other Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 2,191 | 6,326 |
Other Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 1,519 | 5,688 |
Other Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 672 | 638 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 344 | 341 |
Commercial Portfolio Segment [Member] | Performing Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | 328 | 341 |
Commercial Portfolio Segment [Member] | Nonperforming Financing Receivable [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
TDR loans | $16 |
ALLOWANCE_FOR_LOAN_LOSSES_Deta8
ALLOWANCE FOR LOAN LOSSES (Details 9) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
LoansModifications | LoansModifications | |
Below Market Interest Rate [Member] | ||
Number of Loans | 6 | 7 |
Pre-modification Outstanding Recorded Investment | $968 | $2,551 |
Post-modification Outstanding Recorded Investment | 875 | 2,150 |
Modification Outstanding Recorded Investment | 2 | 1 |
Modification Outstanding Recorded Investment | 185 | 364 |
Below Market Interest Rate [Member] | One To Four Family Residential [Member] | ||
Number of Loans | 3 | 3 |
Pre-modification Outstanding Recorded Investment | 487 | 486 |
Post-modification Outstanding Recorded Investment | 404 | 397 |
Modification Outstanding Recorded Investment | 1 | |
Modification Outstanding Recorded Investment | 135 | |
Below Market Interest Rate [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | 1 | 2 |
Pre-modification Outstanding Recorded Investment | 280 | 1,802 |
Post-modification Outstanding Recorded Investment | 280 | 1,609 |
Below Market Interest Rate [Member] | Home Equity Line of Credit [Member] | ||
Number of Loans | 1 | 2 |
Pre-modification Outstanding Recorded Investment | 50 | 263 |
Post-modification Outstanding Recorded Investment | 40 | 263 |
Modification Outstanding Recorded Investment | 1 | |
Modification Outstanding Recorded Investment | 50 | |
Below Market Interest Rate [Member] | Other Portfolio Segment [Member] | ||
Number of Loans | 1 | |
Pre-modification Outstanding Recorded Investment | 151 | |
Post-modification Outstanding Recorded Investment | 151 | |
Modification Outstanding Recorded Investment | 1 | |
Modification Outstanding Recorded Investment | 364 | |
Extended Payment Term [Member] | ||
Number of Loans | 10 | 2 |
Pre-modification Outstanding Recorded Investment | 7,508 | 677 |
Post-modification Outstanding Recorded Investment | 5,940 | 372 |
Extended Payment Term [Member] | One To Four Family Residential [Member] | ||
Number of Loans | 1 | |
Pre-modification Outstanding Recorded Investment | 199 | |
Post-modification Outstanding Recorded Investment | 157 | |
Extended Payment Term [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Number of Loans | 7 | 1 |
Pre-modification Outstanding Recorded Investment | 6,770 | 478 |
Post-modification Outstanding Recorded Investment | 5,332 | 215 |
Modification Outstanding Recorded Investment | 1 | |
Modification Outstanding Recorded Investment | 215 | |
Extended Payment Term [Member] | Other Portfolio Segment [Member] | ||
Number of Loans | 2 | |
Pre-modification Outstanding Recorded Investment | 720 | |
Post-modification Outstanding Recorded Investment | 596 | |
Extended Payment Term [Member] | Commercial Portfolio Segment [Member] | ||
Number of Loans | 1 | |
Pre-modification Outstanding Recorded Investment | 18 | |
Post-modification Outstanding Recorded Investment | $12 |
CONCENTRATIONS_OF_CREDIT_RISK_1
CONCENTRATIONS OF CREDIT RISK (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Maximum legal lending limits | $17,500 | $10,400 |
Percentage of Total Loan | 100.00% | 100.00% |
One To Four Family Residential [Member] | ||
Percentage of Total Loan | 41.80% | 43.00% |
Commercial Real Estate Portfolio Segment [Member] | ||
Percentage of Total Loan | 33.00% | 29.70% |
Home Equity Line of Credit [Member] | ||
Percentage of Total Loan | 10.40% | 10.90% |
Residential Construction [Member] | ||
Percentage of Total Loan | 1.40% | 1.70% |
Other Portfolio Segment [Member] | ||
Percentage of Total Loan | 9.30% | 12.40% |
Commercial Portfolio Segment [Member] | ||
Percentage of Total Loan | 3.50% | 1.60% |
Consumer Portfolio Segment [Member] | ||
Percentage of Total Loan | 0.60% | 0.70% |
FIXED_ASSETS_Details
FIXED ASSETS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total premises and equipment | $27,820 | $27,461 | |
Less: Accumulated depreciation | -14,816 | -14,455 | |
Premises and equipment, net | 13,004 | 13,006 | |
Depreciation and leasehold amortization expense | 900 | 800 | 800 |
Land [Member] | |||
Total premises and equipment | 7,035 | 7,032 | |
Building [Member] | |||
Total premises and equipment | 13,079 | 12,756 | |
Furniture and Fixtures [Member] | |||
Total premises and equipment | 7,643 | 7,571 | |
Construction in Progress [Member] | |||
Total premises and equipment | $63 | $102 |
FIXED_ASSETS_Details_2
FIXED ASSETS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed Assets Details 2 | |||
2015 | $128 | ||
2016 | 58 | ||
2017 | 16 | ||
Total | 202 | ||
Rental Expense | $100 | $100 | $100 |
REAL_ESTATE_OWNED_Details
REAL ESTATE OWNED (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Real Estate Owned Details | ||||
Real estate owned, gross | $6,185 | $16,066 | ||
Less: Valuation allowance | 1,760 | 5,560 | 3,635 | 4,523 |
Real estate owned, net | $4,425 | $10,506 |
REAL_ESTATE_OWNED_Details_2
REAL ESTATE OWNED (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Owned Details 2 | |||
Valuation allowance, beginning | $5,560 | $3,635 | $4,523 |
Provision charged to expense | 2,349 | 4,093 | 2,089 |
Reduction due to disposal | -6,149 | -2,168 | -2,977 |
Valuation allowance, ending | $1,760 | $5,560 | $3,635 |
INTEREST_RECEIVABLE_Details
INTEREST RECEIVABLE (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest Receivable Details | ||
Loans receivable | $1,825 | $1,876 |
Investments | 1,100 | 797 |
Total interest receivable | $2,925 | $2,673 |
BANK_OWNED_LIFE_INSURANCE_BOLI2
BANK OWNED LIFE INSURANCE (BOLI) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Bank Owned Life Insurance Boli Details | ||
Separate account | $12,194 | $11,983 |
General account | 7,410 | 7,188 |
Hybrid | 813 | 790 |
Bank owned life insurance | $20,417 | $19,961 |
REAL_ESTATE_HELD_FOR_INVESTMEN1
REAL ESTATE HELD FOR INVESTMENT (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Held For Investment Details Narrative | ||
Real estate held for investment | $2,489 | $2,489 |
Net loss from property | $56 | $17 |
LOAN_SERVICING_Details
LOAN SERVICING (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Loan Servicing Details | |||
Unpaid principal balance of mortgage loans serviced for others | $246,348 | $255,475 | $255,462 |
LOAN_SERVICING_Details_2
LOAN SERVICING (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loan Servicing Details 2 | |||
Loan servicing rights, beginning of period | $1,883 | $1,908 | $2,319 |
Capitalization from loans sold | 385 | 736 | 461 |
Fair value adjustment | -81 | -761 | -872 |
Loan servicing rights, end of period | 2,187 | 1,883 | 1,908 |
Escrow deposits | $600 | $600 |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deposits By Type [Line Items] | |||
Balance | $703,117 | $684,226 | $675,098 |
Interest Expense | 5,361 | 5,826 | 7,883 |
Interest-bearing Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 92,877 | 81,645 | 76,134 |
Interest Expense | 149 | 134 | 127 |
Money Market Funds [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 178,320 | 183,504 | 184,224 |
Interest Expense | 983 | 1,122 | 1,393 |
Savings Deposits [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 27,591 | 25,593 | 25,183 |
Interest Expense | 36 | 36 | 49 |
Time deposit [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 318,219 | 323,357 | 329,979 |
Interest Expense | 4,193 | 4,534 | 6,314 |
Noninterest-bearing demand [Member] | |||
Deposits By Type [Line Items] | |||
Balance | 86,110 | 70,127 | 59,578 |
Interest Expense |
DEPOSITS_Details_2
DEPOSITS (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Deposits Details 2 | |
2015 | $166,728 |
2016 | 61,357 |
2017 | 44,972 |
2018 | 29,991 |
2019 | 9,120 |
Thereafter | 6,051 |
Deposits | $318,219 |
DEPOSITS_Details_Narrative
DEPOSITS (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits Details Narrative | ||
Time Deposits, $250,000 or More | $39,500 | $34,700 |
Brokered Deposits | 9,200 | 11,500 |
Deposits from Related Parties | $1,800 | $3,600 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Balance | $60,000 | $40,000 |
Rate | 1.37% | 1.74% |
Maturity 3/30/2015 [Member] | ||
Balance | 10,000 | |
Type | Fixed | |
Rate | 0.23% | |
Maturity 6/30/2015 [Member] | ||
Balance | 5,000 | 5,000 |
Type | Fixed | Fixed |
Rate | 0.37% | 0.37% |
Maturity 12/30/2015 [Member] | ||
Balance | 5,000 | 5,000 |
Type | Fixed | Fixed |
Rate | 0.50% | 0.50% |
Maturity 6/30/2016 [Member] | ||
Balance | 5,000 | |
Type | Fixed | |
Rate | 0.69% | |
Maturity 12/30/2016 [Member] | ||
Balance | 5,000 | 5,000 |
Type | Fixed | Fixed |
Rate | 0.98% | 0.98% |
Maturity 12/29/2017 [Member] | ||
Balance | 5,000 | |
Type | Fixed | |
Rate | 1.38% | |
Maturity 04/10/2019 [Member] | ||
Balance | 10,000 | 10,000 |
Type | Fixed | Fixed |
Rate | 1.83% | 1.83% |
Maturity 04/10/2020 [Member] | ||
Balance | $15,000 | $15,000 |
Type | Floating | Floating |
Rate | 2.79% | 2.80% |
BORROWINGS_Details_2
BORROWINGS (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank, Advances [Abstract] | ||
2015 | $20,000 | |
2016 | 15,000 | |
2017 | 5,000 | |
2019 | 10,000 | |
2020 | 10,000 | |
Total | 60,000 | 40,000 |
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
2015 | 0.33% | |
2016 | 0.84% | |
2017 | 1.38% | |
2019 | 1.83% | |
2020 | 2.79% | |
Total | 1.37% | 1.74% |
Federal Reserve Bank Advances [Member] | ||
Federal Home Loan Bank, Advances, Weighted Average Rate [Abstract] | ||
Borrowing Capacity with the Federal Reserve Discount Window | $51,200 |
JUNIOR_SUBORDINATED_DEBT_Detai
JUNIOR SUBORDINATED DEBT (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Junior subordinated notes | $14,433 | $14,433 |
Junior Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Junior subordinated notes | $14,433 | |
Debt instrument, interest rate | 3.05% | |
Debt instrument, maturity date | 30-Mar-34 | |
Debt redemption price percentage | 100.00% | |
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, interest rate | 2.80% |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Employee Benefit Plans Details Narrative | |||
Defined Contribution Plan, Contributions by Employer | $200 | $200 | $200 |
EMPLOYEE_BENEFIT_PLANS_Details1
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Liabilities | $9,759 | $10,199 | |
Expense related to Defined Benefit Plan | 600 | 600 | 600 |
Supplemental Employee Retirement Plan [Member] | |||
Defined Benefit Plan, Liabilities | 3,653 | 3,673 | |
Cap Equity [Member] | |||
Defined Benefit Plan, Liabilities | 4,919 | 5,357 | |
Director Consultation [Member] | |||
Defined Benefit Plan, Liabilities | 225 | 228 | |
Deferred Compensation [Member] | |||
Defined Benefit Plan, Liabilities | 389 | 389 | |
Life Insurance [Member] | |||
Defined Benefit Plan, Liabilities | $573 | $552 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Details | |||
Federal | $112 | $46 | ($571) |
State | -25 | ||
Deferred | 2,852 | 782 | -404 |
Change in valuation allowance | -731 | -353 | -36 |
Income tax expense (benefit) | $2,208 | $475 | ($1,011) |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Details | |||
Computed income tax expense (benefit) | $2,853 | $21 | ($27) |
Deferred tax valuation allowance | -731 | -353 | -36 |
State income tax, net of federal benefit | 271 | 76 | |
Nontaxable municipal security income | -115 | -123 | -232 |
Nontaxable BOLI income | -182 | -190 | -188 |
Other | 112 | 1,044 | -528 |
Actual income tax expense (benefit) | $2,208 | $475 | ($1,011) |
Effective tax rate | 27.10% | 791.70% | 1296.50% |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets: | ||||
Allowance for loan losses | $4,235 | $5,451 | ||
Deferred compensation and post employment benefits | 3,514 | 3,752 | ||
Non-accrual interest | 202 | 356 | ||
Valuation reserve for other real estate | 673 | 2,127 | ||
North Carolina NOL carryover | 1,404 | 1,381 | ||
Federal NOL carryover | 12,392 | 11,947 | ||
Unrealized losses on securities | 867 | 2,860 | ||
Other | 393 | 389 | ||
Gross deferred tax assets | 23,680 | 28,263 | ||
Less: valuation allowance | -19,810 | -22,556 | -19,430 | -18,650 |
Total deferred tax assets | 3,870 | 5,707 | ||
Fixed assets | 461 | 448 | ||
Loan servicing rights | 813 | 720 | ||
Deferred loan costs | 413 | 205 | ||
Prepaid expenses | 94 | 124 | ||
Total deferred tax liabilities | 1,781 | 1,497 | ||
Net deferred tax asset | $2,089 | $4,210 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Details | |||
Beginning of year | $22,556 | $19,430 | $18,650 |
Change in unrealized losses (gains) on securities | -1,992 | 3,479 | 816 |
Change in unrealized losses (gains) on securities | 429 | ||
Change in tax planning strategies | 2,121 | ||
Change in deferred taxes | -2,852 | -782 | -36 |
Other | -23 | ||
End of year | $19,810 | $22,556 | $19,430 |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Federal [Member] | |
Unused Net Operating Losses | 35,406 |
Federal [Member] | Minimum [Member] | |
Expiration Dates | 2032 |
Federal [Member] | Maximum [Member] | |
Expiration Dates | 2033 |
North Carolina [Member] | |
Unused Net Operating Losses | 43,203 |
North Carolina [Member] | Minimum [Member] | |
Expiration Dates | 2025 |
North Carolina [Member] | Maximum [Member] | |
Expiration Dates | 2028 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share Details | |||
Net income | $5,943 | ($415) | $933 |
Weighted average shares outstanding | 6,546,375 | ||
Effect of dilutive securities | |||
Average shares outstanding | 6,546,375 | ||
Earnings per share - basic | $0.91 | ||
Earnings per share - diluted | $0.91 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Balance, beginning of period | ($7,476) | $1,885 | $4,008 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 1,992 | -3,479 | -816 |
Change in unrealized holding gain (loss) on securities available for sale | 5,665 | -9,431 | 1,134 |
Reclassification adjustment for net securities gains realized in net income | -657 | -358 | -3,294 |
Transfer of net unrealized loss from available for sale to held to maturity | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | 199 | 34 | |
Income tax benefit (expense) | -1,992 | 3,873 | 853 |
Balance, end of period | -2,269 | -7,476 | 1,885 |
Available-for-sale Securities [Member] | |||
Balance, beginning of period | -3,374 | 1,266 | 2,573 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | |||
Change in unrealized holding gain (loss) on securities available for sale | 5,665 | -9,431 | 1,134 |
Reclassification adjustment for net securities gains realized in net income | -657 | -358 | -3,294 |
Transfer of net unrealized loss from available for sale to held to maturity | 74 | ||
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Income tax benefit (expense) | -1,944 | 3,886 | 853 |
Balance, end of period | -236 | -3,374 | 1,266 |
Held-to-maturity Securities [Member] | |||
Balance, beginning of period | -1,242 | ||
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | |||
Change in unrealized holding gain (loss) on securities available for sale | |||
Reclassification adjustment for net securities gains realized in net income | |||
Transfer of net unrealized loss from available for sale to held to maturity | -74 | ||
Amortization of unrealized gains and losses on securities transferred to held to maturity | 199 | 34 | |
Income tax benefit (expense) | -48 | -13 | |
Balance, end of period | -1,165 | -1,242 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Balance, beginning of period | -2,860 | 619 | 1,435 |
Change in deferred tax valuation allowance attributable to unrealized (gain) loss on investment securities available for sale | 1,992 | -3,479 | -816 |
Change in unrealized holding gain (loss) on securities available for sale | |||
Reclassification adjustment for net securities gains realized in net income | |||
Transfer of net unrealized loss from available for sale to held to maturity | |||
Amortization of unrealized gains and losses on securities transferred to held to maturity | |||
Income tax benefit (expense) | |||
Balance, end of period | ($868) | ($2,860) | $619 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (Reclassification out of Accumulated Other Comprehensive Income [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Impact, net of tax | $856 | $392 | $3,294 |
Gain on sale of investments, net [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before tax | 657 | 358 | 3,294 |
Tax effect | |||
Impact, net of tax | 657 | 358 | 3,294 |
Investment Income (Expense) [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Before tax | 199 | 34 | |
Tax effect | |||
Impact, net of tax | $199 | $34 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Bank [Member] | ||
Tier I capital to risk-weighted assets, Actual Amount | $105,556 | $54,775 |
Tier I capital to risk-weighted assets, Actual Percent | 19.89% | 10.70% |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | 21,231 | 20,484 |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 4.00% | 4.00% |
Total Capital to risk-weighted assets, Actual Amount | 112,246 | 61,274 |
Total Capital to risk-weighted assets, Actual Percent | 21.15% | 11.97% |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | 42,462 | 40,968 |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 8.00% | 8.00% |
Total Capital to risk-weighted assets, Required to meet Memorandum of Understanding, Amount | 58,386 | 56,331 |
Total Capital to risk-weighted assets, Required to meet Memorandum of Understanding, Percent | 11.00% | 11.00% |
Tier I capital to total average assets, Actual Amount | 105,556 | 54,775 |
Tier I capital to total average assets, Actual Percent | 11.91% | 7.02% |
Tier I capital to total average assets, Minimum capital adequacy Amount | 35,440 | 31,190 |
Tier I capital to total average assets, Minimum capital adequacy Percent | 4.00% | 4.00% |
Tier I capital to total average assets, Required to meet Memorandum of Understanding, Amount | 70,880 | 62,380 |
Tier I capital to total average assets, Required to meet Memorandum of Understanding, Percent | 8.00% | 8.00% |
Parent Company [Member] | ||
Tier I capital to risk-weighted assets, Actual Amount | 123,377 | 53,806 |
Tier I capital to risk-weighted assets, Actual Percent | 23.24% | 10.52% |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | 21,236 | 20,459 |
Tier I capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 4.00% | 4.00% |
Total Capital to risk-weighted assets, Actual Amount | 130,067 | 60,297 |
Total Capital to risk-weighted assets, Actual Percent | 24.50% | 11.79% |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Amount | 42,472 | 40,917 |
Total Capital to risk-weighted assets, Required to be Categorized Adequately Capitalized, Percent | 8.00% | 8.00% |
Tier I capital to total average assets, Actual Amount | 123,377 | 53,806 |
Tier I capital to total average assets, Actual Percent | 13.94% | 6.90% |
Tier I capital to total average assets, Minimum capital adequacy Amount | $35,398 | $31,190 |
Tier I capital to total average assets, Minimum capital adequacy Percent | 4.00% | 4.00% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $65,499 |
Home Equity Line of Credit [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | 62,992 |
Consumer and Other Loans [Member] | |
Other Commitments [Line Items] | |
Commitments to fund lines of credit | $2,507 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details 2) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Fixed | $1,947 |
Variable | 333 |
Total | $2,280 |
Minimum [Member] | |
Fixed | 3.50% |
Variable | 3.13% |
Maximum [Member] | |
Fixed | 4.50% |
Variable | 5.88% |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage Loans Sold to Federal National Mortgage Association[Member] | ||
Loss Contingencies [Line Items] | ||
Obligation for representations and warranties, reserve | $300 | $300 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Allowance for unfunded commitments | $100 | $100 |
FAIR_VALUE_DISCLOSURES_Details
FAIR VALUE DISCLOSURES (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $222,107 | $157,379 |
Liabilities measured at fair value on recurring basis | 7 | |
Loan Servicing Rights[Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,187 | 1,883 |
Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 9 | 12 |
Interest Rate Lock Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 52 | |
Liabilities measured at fair value on recurring basis | 7 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,101 | 568 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 217,758 | 154,916 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,248 | 1,895 |
Liabilities measured at fair value on recurring basis | 7 | |
Fair Value, Inputs, Level 3 [Member] | Loan Servicing Rights[Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,187 | 1,883 |
Fair Value, Inputs, Level 3 [Member] | Forward Sales Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 9 | 12 |
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 52 | |
Liabilities measured at fair value on recurring basis | 7 | |
Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 219,859 | 155,484 |
Available-for-sale Securities [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 591 | 568 |
Available-for-sale Securities [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 25,558 | 25,602 |
Available-for-sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 152,718 | 107,415 |
Available-for-sale Securities [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 39,482 | 21,899 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 2,101 | 568 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 591 | 568 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. Treasury securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 1,510 | |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 217,758 | 154,916 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 25,558 | 25,602 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | 152,718 | 107,415 |
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | US Government Corporations and Agencies Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on recurring basis | $39,482 | $21,899 |
FAIR_VALUE_DISCLOSURES_Details1
FAIR VALUE DISCLOSURES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures Details 2 | |||
Balance at beginning of period | $1,888 | $1,908 | $2,319 |
Capitalization from loans sold | 385 | 736 | 461 |
Fair value adjustment | -81 | -761 | -872 |
Mortgage derivative gains included in Other income | 56 | 5 | |
Balance at end of period | $2,248 | $1,888 | $1,908 |
FAIR_VALUE_DISCLOSURES_Details2
FAIR VALUE DISCLOSURES (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets measured at fair value on nonrecurring basis | $29,066 | $37,668 |
Impaired loans measured at present value | 9,000 | 12,900 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets measured at fair value on nonrecurring basis | 29,066 | 37,668 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 6,407 | 4,663 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 14,551 | 15,939 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,456 | 1,444 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,227 | 5,116 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 6,407 | 4,663 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 14,551 | 15,939 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Home Equity Line of Credit [Member] | ||
Assets measured at fair value on nonrecurring basis | 1,456 | 1,444 |
Fair Value, Measurements, Nonrecurring [Member] | Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 2,227 | 5,116 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 220 | 1,076 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 774 | 2,988 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Residential Construction [Member] | ||
Assets measured at fair value on nonrecurring basis | 210 | |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 3,431 | 6,232 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | One To Four Family Residential [Member] | ||
Assets measured at fair value on nonrecurring basis | 220 | 1,076 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | 774 | 2,988 |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Construction [Member] | ||
Assets measured at fair value on nonrecurring basis | 210 | |
Fair Value, Measurements, Nonrecurring [Member] | Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Other Portfolio Segment [Member] | ||
Assets measured at fair value on nonrecurring basis | $3,431 | $6,232 |
FAIR_VALUE_DISCLOSURES_Details3
FAIR VALUE DISCLOSURES (Details 4) | 12 Months Ended |
Dec. 31, 2014 | |
Impaired Loans [Member] | Discounted Appraised Value [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Unobservable Input | Discounted Appraisals |
Impaired Loans [Member] | Discounted Appraised Value [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Impaired Loans [Member] | Discounted Appraised Value [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Real Estate Owned [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Collateral discounts and estimated selling cost |
Unobservable Input | Discounted Appraisals |
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 0.00% |
Real Estate Owned [Member] | Discounted Appraised Value [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Collateral discounts and estimated selling cost | 30.00% |
Loan Servicing Rights[Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Discounted Cash Flows |
Loan Servicing Rights[Member] | Discounted Cash Flow Method [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Prepayment Speed | 6.00% |
Discount rate | 8.00% |
Loan Servicing Rights[Member] | Discounted Cash Flow Method [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Prepayment Speed | 25.00% |
Discount rate | 14.00% |
Forward Sales Commitments [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Unobservable Input | Value of underlying loan |
Unobservable Input | Change in market price of underlying loan |
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Minimum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Value of underlying loan rate | 101.00% |
Forward Sales Commitments [Member] | Change in Market Price of Underling Loan [Member] | Maximum [Member] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Value of underlying loan rate | 107.00% |
FAIR_VALUE_DISCLOSURES_Details4
FAIR VALUE DISCLOSURES (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and equivalents | $58,982 | $34,281 | $25,362 | $14,601 |
Securities available for sale | 219,859 | 155,484 | ||
Securities held to maturity | 29,285 | 20,988 | ||
Loans held for sale | 10,761 | 5,688 | ||
Real estate owned | 4,425 | 10,506 | ||
Other investments, at cost | 4,908 | 3,659 | ||
Interest receivable | 2,925 | 2,673 | ||
Bank owned life insurance | 20,417 | 19,961 | ||
Loan servicing rights | 2,187 | 1,883 | 1,908 | 2,319 |
Liabilities: | ||||
Certificate deposits | 318,219 | |||
Federal Home Loan Bank advances | 60,000 | 40,000 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 323 | 2,023 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 58,982 | 34,316 | ||
Securities available for sale | 219,859 | 155,484 | ||
Securities held to maturity | 29,285 | 20,988 | ||
Loans held for sale | 10,761 | 5,688 | ||
Loans receivable, net | 529,407 | 507,623 | ||
Real estate owned | 4,908 | |||
Other investments, at cost | 3,659 | |||
Interest receivable | 2,925 | 2,673 | ||
Bank owned life insurance | 20,417 | 19,961 | ||
Loan servicing rights | 2,187 | 1,883 | ||
Liabilities: | ||||
Demand deposits | 384,898 | 360,869 | ||
Certificate deposits | 318,219 | 323,357 | ||
Federal Home Loan Bank advances | 60,000 | 40,000 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 323 | 2,023 | ||
Reported Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 9 | 12 | ||
Reported Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 52 | |||
Liabilities: | ||||
Commitments | 7 | |||
Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 58,982 | 34,316 | ||
Securities available for sale | 219,859 | 155,484 | ||
Securities held to maturity | 30,890 | 20,098 | ||
Loans held for sale | 11,501 | 6,151 | ||
Loans receivable, net | 546,450 | 526,395 | ||
Real estate owned | 4,908 | |||
Other investments, at cost | 3,659 | |||
Interest receivable | 2,925 | 2,673 | ||
Bank owned life insurance | 20,417 | 19,961 | ||
Loan servicing rights | 2,187 | 1,883 | ||
Liabilities: | ||||
Demand deposits | 384,898 | 360,869 | ||
Certificate deposits | 321,491 | 327,280 | ||
Federal Home Loan Bank advances | 62,108 | 41,845 | ||
Junior subordinated debentures | 14,433 | 14,433 | ||
Accrued interest payable | 323 | 2,023 | ||
Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 9 | 12 | ||
Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 52 | |||
Liabilities: | ||||
Commitments | 7 | |||
Fair Value, Inputs, Level 1 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Cash and equivalents | 58,982 | 34,316 | ||
Securities available for sale | 2,101 | 568 | ||
Securities held to maturity | ||||
Loans held for sale | ||||
Loans receivable, net | ||||
Real estate owned | ||||
Interest receivable | ||||
Bank owned life insurance | ||||
Loan servicing rights | ||||
Liabilities: | ||||
Demand deposits | ||||
Certificate deposits | ||||
Federal Home Loan Bank advances | ||||
Junior subordinated debentures | ||||
Accrued interest payable | ||||
Fair Value, Inputs, Level 2 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Securities available for sale | 217,758 | 154,916 | ||
Securities held to maturity | 30,890 | 20,098 | ||
Loans held for sale | 11,501 | 6,151 | ||
Loans receivable, net | ||||
Real estate owned | 4,908 | |||
Other investments, at cost | 3,659 | |||
Interest receivable | 2,925 | |||
Bank owned life insurance | 20,417 | |||
Loan servicing rights | ||||
Liabilities: | ||||
Demand deposits | 384,898 | |||
Certificate deposits | ||||
Federal Home Loan Bank advances | 62,108 | |||
Junior subordinated debentures | 14,433 | |||
Accrued interest payable | 323 | |||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | ||||
Assets: | ||||
Securities available for sale | ||||
Securities held to maturity | ||||
Loans held for sale | ||||
Loans receivable, net | 546,450 | 526,395 | ||
Real estate owned | ||||
Interest receivable | 2,673 | |||
Bank owned life insurance | 19,961 | |||
Loan servicing rights | 2,187 | 1,883 | ||
Liabilities: | ||||
Demand deposits | 360,869 | |||
Certificate deposits | 321,491 | 327,280 | ||
Federal Home Loan Bank advances | 41,845 | |||
Junior subordinated debentures | 14,433 | |||
Accrued interest payable | 2,023 | |||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Forward Sales Commitments [Member] | ||||
Assets: | ||||
Commitments | 9 | 12 | ||
Fair Value, Inputs, Level 3 [Member] | Portion at Fair Value Measurement [Member] | Interest Rate Lock Commitments [Member] | ||||
Assets: | ||||
Commitments | 52 | |||
Liabilities: | ||||
Commitments | $7 |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Financial Condition (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets: | ||||
Cash and cash equivalents | $58,982 | $34,281 | $25,362 | $14,601 |
Other assets | 2,910 | 2,442 | ||
Total assets | 903,648 | 784,893 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | 14,433 | ||
Accrued interest payable | 323 | 2,023 | ||
Stockholders equity | 107,319 | 32,518 | 42,294 | 43,484 |
Total liabilities and stockholders' equity | 903,648 | 784,893 | ||
Parent Company [Member] | ||||
Assets: | ||||
Cash and cash equivalents | 17,652 | 475 | ||
Equity investment in subsidiary | 103,498 | 47,487 | ||
Equity investment in trust | 433 | 433 | ||
Other assets | 169 | 123 | ||
Total assets | 121,752 | 48,518 | ||
Liabilities and stockholders' equity: | ||||
Junior subordinated notes | 14,433 | 14,433 | ||
Accrued interest payable | 1,567 | |||
Stockholders equity | 107,319 | 32,518 | ||
Total liabilities and stockholders' equity | $121,752 | $48,518 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Operations (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Total income | $32,445 | $31,451 | $34,567 |
Interest expense | 6,573 | 6,988 | 9,635 |
Loss before income taxes and equity in undistributed income of subsidiary | 8,151 | 60 | -78 |
Income tax benefit allocated from consolidated income tax return | 2,208 | 475 | -1,011 |
Net income (loss) | 5,943 | -415 | 933 |
Parent Company [Member] | |||
Interest income | 78 | ||
Dividends from subsidiary | |||
Total income | 78 | ||
Interest expense | 509 | 490 | |
Other | 29 | 38 | |
Total expenses | 538 | 528 | |
Loss before income taxes and equity in undistributed income of subsidiary | -460 | -528 | |
Income tax benefit allocated from consolidated income tax return | 180 | 172 | |
Loss before equity in undistributed income (loss) of subsidiary | -280 | -356 | |
Equity in undistributed income (loss) of subsidiary | 6,223 | -59 | |
Net income (loss) | $5,943 | ($415) |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $5,943 | ($415) | $933 |
Investing activities: | |||
Net cash used in investing activities | -81,283 | -20,619 | 101,357 |
Cash flows from financing activities: | |||
Proceeds from sale of common stock | 63,651 | ||
Net cash used in financing activities | 102,542 | 24,106 | -103,134 |
Increase in cash and cash equivalents | 24,701 | 8,919 | 10,761 |
Parent Company [Member] | |||
Cash flows from operating activities: | |||
Net income | 5,943 | -415 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings in subsidiaries | -6,223 | 59 | |
(Increase) decrease in other assets | -46 | 6 | |
Increase (decrease) in other liabilities | -1,567 | 484 | |
Net cash provided by operating activities | -1,893 | 134 | |
Investing activities: | |||
Investment in subsidiary | -44,581 | ||
Net cash used in investing activities | -44,581 | ||
Cash flows from financing activities: | |||
Proceeds from sale of common stock | 63,651 | ||
Net cash used in financing activities | 63,651 | ||
Increase in cash and cash equivalents | 17,177 | 134 | |
Cash and cash equivalents, beginning of year | 475 | 341 | |
Cash and cash equivalents, end of year | $17,652 | $475 |