Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 14, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Entity Registrant Name | Virginia National Bankshares Corp | ||
Entity Central Index Key | 1572334 | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 2,688,781 | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $58,831,849 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $12,834 | $12,871 |
Federal funds sold | 41,273 | 27,201 |
Securities: | ||
Available for sale, at fair value | 141,816 | 133,027 |
Restricted securities, at cost | 1,565 | 1,645 |
Total securities | 143,381 | 134,672 |
Total loans | 313,254 | 300,034 |
Allowance for loan losses | -3,164 | -3,360 |
Total loans, net | 310,090 | 296,674 |
Premises and equipment, net | 9,465 | 9,824 |
Other real estate owned, net of valuation allowance | 1,177 | 2,372 |
Bank owned life insurance | 13,034 | 12,595 |
Accrued interest receivable and other assets | 5,799 | 16,785 |
Total assets | 537,053 | 512,994 |
Demand deposits: | ||
Noninterest-bearing | 152,107 | 140,911 |
Interest-bearing | 93,208 | 80,832 |
Money market deposit accounts | 94,310 | 84,555 |
Certificates of deposit and other time deposits | 117,094 | 124,162 |
Total deposits | 456,719 | 430,460 |
Securities sold under agreements to repurchase | 17,995 | 16,297 |
Accrued interest payable and other liabilities | 1,707 | 8,206 |
Total liabilities | 476,421 | 454,963 |
Shareholders' equity: | ||
Preferred stock, $2.50 par value, 2,000,000 shares authorized, no shares outstanding | ||
Common stock, $2.50 par value, 10,000,000 shares authorized; 2,688,336 and 2,690,320 shares issued and outstanding in 2014 and 2013 (including 288 non-vested shares at December 31, 2013) | 6,721 | 6,725 |
Capital surplus | 27,889 | 27,915 |
Retained earnings | 25,978 | 24,822 |
Accumulated other comprehensive income (loss) | 44 | -1,431 |
Total shareholders' equity | 60,632 | 58,031 |
Total liabilities and shareholders' equity | $537,053 | $512,994 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Preferred stock, par value per share | $2.50 | $2.50 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding | ||
Common stock, par value per share | $2.50 | $2.50 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,688,336 | 2,690,320 |
Common stock, shares outstanding | 2,688,336 | 2,690,320 |
Common stock issued and outstanding, non-vested shares | 288 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest and dividend income: | ||
Loans, including fees | $12,548 | $12,998 |
Federal funds sold | 90 | 74 |
Investment securities: | ||
Taxable | 2,165 | 1,836 |
Tax exempt | 477 | 447 |
Dividends | 83 | 78 |
Other | 19 | 13 |
Total interest and dividend income | 15,382 | 15,446 |
Interest expense: | ||
Demand and savings deposits | 205 | 222 |
Certificates and other time deposits | 686 | 758 |
Federal funds purchased and securities sold under agreements to repurchase | 37 | 17 |
Total interest expense | 928 | 997 |
Net interest income | 14,454 | 14,449 |
Provision for loan losses | 306 | 160 |
Net interest income after provision for loan losses | 14,148 | 14,289 |
Noninterest income: | ||
Trust income | 2,367 | 14,981 |
Customer service fees | 894 | 921 |
Debit/credit card and ATM fees | 742 | 729 |
Earnings/increase in value of bank owned life insurance | 439 | 445 |
Gains on sales of assets | 44 | 304 |
Gains on sales of securities | 24 | 50 |
Royalty income | 593 | |
Other | 494 | 424 |
Total noninterest income | 5,597 | 17,854 |
Noninterest expense: | ||
Salaries and employee benefits | 9,305 | 13,746 |
Net occupancy | 1,954 | 2,104 |
Equipment | 531 | 686 |
Other | 5,601 | 5,499 |
Total noninterest expense | 17,391 | 22,035 |
Income before income taxes | 2,354 | 10,108 |
Provision for income taxes | 456 | 3,212 |
Net income | $1,898 | $6,896 |
Net income per share, basic | $0.70 | $2.56 |
Net income per share, diluted | $0.70 | $2.56 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $1,898 | $6,896 |
Other comprehensive income (loss) | ||
Unrealized gains (losses) on securities, net of tax of $769 and ($1,326) for the years ended December 31, 2014 and December 31, 2013 | 1,491 | -2,572 |
Adjustment to unrealized income on securities due to the transfer of held-to-maturity securities to available-for-sale, net of tax of $12 for year ended December 31, 2013 | 22 | |
Reclassification adjustment net of tax of ($8) and ($17) for the years ended December 31, 2014 and December 31, 2013 | -16 | -33 |
Total other comprehensive income (loss) | 1,475 | -2,583 |
Total comprehensive income | $3,373 | $4,313 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Change in unrealized losses on available-for-sale securities, tax | $769 | ($1,326) |
Transfer of held-to-maturity securities to available-for-sale, tax | 12 | |
Reclassification adjustment, tax | ($8) | ($17) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | |||||
Balance, previously reported at Dec. 31, 2011 | |||||
Adjustment to retained earnings for prior years due to change in accounting method | $75 | $75 | |||
Balance, as adjusted at Dec. 31, 2012 | 54,014 | 6,724 | 27,809 | 18,329 | 1,152 |
Balance, previously reported at Dec. 31, 2012 | 53,939 | 6,724 | 27,809 | 18,254 | 1,152 |
Stock options exercised or expired | 1 | 1 | |||
Cash dividend ($0.15 and $0.275 per share for 2013 and 2014 respectively) | -403 | -403 | |||
Vested stock grants | 1 | -1 | |||
Stock option/grant expense | 106 | 106 | |||
Net income | 6,896 | 6,896 | |||
Other comprehensive income (loss) | -2,583 | -2,583 | |||
Balance at Dec. 31, 2013 | 58,031 | 6,725 | 27,915 | 24,822 | -1,431 |
Stock options exercised or expired | 180 | 24 | 156 | ||
Cash dividend ($0.15 and $0.275 per share for 2013 and 2014 respectively) | -742 | -742 | |||
Stock purchased under stock repurchase plan | -262 | -29 | -233 | ||
Vested stock grants | 1 | -1 | |||
Stock option/grant expense | 52 | 52 | |||
Net income | 1,898 | 1,898 | |||
Other comprehensive income (loss) | 1,475 | 1,475 | |||
Balance at Dec. 31, 2014 | $60,632 | $6,721 | $27,889 | $25,978 | $44 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Abstract] | ||
Cash dividend, per share | $0.28 | $0.15 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $1,898 | $6,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 306 | 160 |
Net amortization and accretion of securities | 739 | 815 |
Gains on sales of securities | -24 | -50 |
Earnings/increase in value of bank owned life insurance | -439 | -445 |
Depreciation and amortization | 1,151 | 1,274 |
Net gain on sale of assets | -44 | -304 |
Deferred tax benefit | -61 | -292 |
Stock option/stock grant expense | 52 | 106 |
Writedown of other real estate owned | 277 | 178 |
Losses on sale of other real estate owned | 27 | |
Decrease (increase) in accrued interest receivable and other assets | 10,330 | -3,748 |
(Decrease) increase in accrued interest payable and other liabilities | -6,499 | 4,036 |
Net cash provided by operating activities | 7,713 | 8,626 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of held to maturity securities | ||
Purchases of available for sale securities | -44,278 | -66,610 |
Net decrease in restricted investments | 80 | 84 |
Proceeds from maturities, calls and principal payments of held to maturity securities | 1,275 | |
Proceeds from maturities, calls and principal payments of available for sale securities | 29,512 | 27,619 |
Proceeds from sale of held to maturity securities | 2,012 | |
Proceeds from sale of available for sale securities | 7,498 | 14,842 |
Net increase in loans | -13,966 | -16,045 |
Proceeds from sale of other real estate owned | 1,135 | |
Proceeds from sale of bank premises and equipment | 11 | 20 |
Purchase of bank premises and equipment | -803 | -462 |
Net cash used in investing activities | -20,811 | -37,265 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase (decrease) in demand deposits, NOW accounts, and money market accounts | 33,327 | -8,981 |
Net decrease in certificates of deposit and other time deposits | -7,068 | -5,981 |
Net increase in securities sold under agreements to repurchase | 1,698 | 12,297 |
Common stock repurchased | -262 | |
Proceeds from stock options exercised | 180 | 1 |
Cash dividends | -742 | -403 |
Net cash provided by (used in) financing activities | 27,133 | -3,067 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 14,035 | -31,706 |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 40,072 | 71,778 |
End of period | 54,107 | 40,072 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash payments for interest | 936 | 1,026 |
Cash payments for taxes | 2,488 | 2,778 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized gain (loss) on available for sale securities | 2,236 | -3,914 |
Transfer of held-to-maturity securities to available-for-sale | 2,699 | |
Transfer of loans to other real estate owned | $244 | $804 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 – Summary of Significant Accounting Policies: |
Organization and Principles of Consolidation | |
Virginia National Bankshares Corporation (the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Virginia. On June 19, 2013, the shareholders of Virginia National Bank (the “Bank”) approved a Reorganization Agreement and Plan of Share Exchange (“Reorganization”) whereby the Bank would reorganize into a holding company structure. The Plan of Share Exchange called for each outstanding share of Bank common stock to be automatically converted into and exchanged for one share of the Company common stock, and the common shareholders of the Bank would become the common shareholders of the Company on the effective date of the Reorganization. The Company is authorized to issue 10,000,000 shares of common stock with a par value of $2.50 per share. Additionally, the Company is authorized to issue 2,000,000 shares of preferred stock at a par value $2.50 per share. There is currently no preferred stock outstanding. There are no plans currently nor does the Board of Directors of the Company anticipate any need in the foreseeable future to issue shares of preferred stock. | |
On December 16, 2013, the Reorganization became effective, and the Bank became a wholly-owned subsidiary of the Company. The holding company is regulated under the Bank Holding Company Act of 1956, as amended (“BHC Act”) and is subject to inspection, examination, and supervision by the Federal Reserve Board. | |
On September 22, 2014, the Company issued a press release and filed a Form 8-K with the Securities and Exchange Commission to announce the approval by its Board of Directors of a stock repurchase program authorizing repurchase of up to 400,000 shares of the Company's common shares through the open market or in privately negotiated transactions. The repurchase program is authorized through September 18, 2015. | |
Virginia National Bank was organized in 1998 under federal law as a national banking association to engage in a general commercial and retail banking business. The Bank is headquartered in Charlottesville, Virginia and serves the Virginia communities in and around the City of Charlottesville, Albemarle County, Orange County and the City of Winchester. The Bank continues to be subject to the supervision, examination and regulation of the Office of the Comptroller of the Currency (“OCC”) following the Reorganization. | |
On May 1, 2007, the OCC granted conditional approval to the Bank's application to establish a new national trust bank with the title VNBTrust, National Association which now trades under the name VNB Wealth Management (“VNBTrust”, “VNB Wealth” or “VNB Wealth Management”). VNBTrust operates as a wholly-owned subsidiary of the Bank. Additionally, the OCC approved the Bank's application for VNBTrust to create a wholly owned operating subsidiary, VNB Investment Management Company, LLC, a Delaware limited liability corporation. In January, 2010, VNB Investment Management Company changed its name to Swift Run Capital Management, LLC (“SRCM”). SRCM served as the general partner of Swift Run Capital, L.P. (the “Fund), a private investment fund. | |
The consolidated financial statements include the accounts of the Company, its subsidiary the Bank, and the Bank's subsidiary, VNBTrust (together, subsidiaries). All significant intercompany balances and transactions have been eliminated in consolidation. | |
On July 18, 2013 (the “Closing Date”), VNBTrust completed the sale of all of the membership interests of SRCM to SRCM Holdings LLC (“SRCM Holdings”) pursuant to a purchase and sale agreement dated June 27, 2013 among SRCM Holdings, VNBTrust, SRCM and the Bank (the “Sale Agreement”). A former officer of VNBTrust is the principal owner of SRCM Holdings. Swift Run Capital LP (the “Fund”), for which SRCM acted as general partner, represented less than 7 percent of the total assets managed by VNBTrust and its subsidiary on the Closing Date. Under the terms of the Sale Agreement, SRCM Holdings agreed to pay VNBTrust, quarterly during the ten-year period beginning January 1, 2014 and ending December 31, 2023 (the “Term”), (a) ongoing acquisition royalty payments equal to (i) 20% of the management and performance fee revenue received by SRCM from limited partners of the Fund as of the Closing Date and (ii) 20% of the management and performance fee revenue received by SRCM from VNBTrust clients that opened accounts with SRCM within 30 days of the Closing Date, and (b) ongoing referral payments equal to 20% of the management and performance fee revenue received by SRCM from clients referred by the Company and its affiliates to SRCM during the Term. The Company recognized $302 thousand as gain from the sale of SRCM in 2013, which amount included an estimate of the present value of the portion of the acquisition royalty payments to be received from management fees during the Term. Each quarter, as the Company receives royalty payments from SRCM, a portion of the payment is applied to write down the contingent asset established for this estimated value. The remaining amount of the payment is applied to noninterest income as royalty income. | |
Summary of Significant Accounting Policies | |
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to the reporting guidelines prescribed by regulatory authorities. The following is a description of the more significant of those policies and practices. | |
Principles of consolidation – The consolidated financial statements include the accounts of the Company, the Bank, and VNBTrust. All significant intercompany balances and transactions have been eliminated in consolidation. | |
Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, deferred tax assets, valuation of other real estate owned, and fair value measurements. | |
Cash flow reporting – For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on hand, funds due from banks, and federal funds sold. | |
Securities sold under agreements to repurchase – The Company sells certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset accounts. | |
Securities – Unrestricted investments are to be classified in two categories as described below. | |
Securities held to maturity – Securities classified as held to maturity are those debt and equity securities the Company has both the positive intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. During the third quarter of 2013, the Company reclassified held to maturity securities as available for sale. Management determined that it no longer had the positive intent to hold the securities classified as held to maturity for an indefinite period of time because of Management's desire to have more flexibility in managing the investment portfolio. | |
Securities available for sale – Securities classified as available for sale are those debt and equity securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities available for sale are carried at fair value. Unrealized gains or losses are reported as a separate component of other comprehensive income. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. | |
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities or to “call” dates, whichever occurs first. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (1) the Company intends to sell the security or (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that the Company will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. | |
Restricted securities – As members of the Federal Reserve Bank of Richmond (“FRB”) and the Federal Home Loan Bank of Atlanta (“FHLB”), the Company is required to maintain certain minimum investments in the common stock of the FRB and FHLB. Required levels of investments are based upon the Bank's capital and a percentage of qualifying assets. Additionally, the Company has purchased common stock in CBB Financial Corp. (“CBBFC”), the holding company for Community Bankers Bank. Common Stock from the FRB, FHLB, and CBB are classified as restricted securities which are carried at cost | |
Loans – Loans are reported at the principal balance outstanding net of unearned discounts and of the allowance for loan losses. Interest income on loans is reported on the level-yield method and includes amortization of deferred loan fees and costs over the loan term. Further information regarding the Company's accounting policies related to past due loans, non-accrual loans, impaired loans and troubled-debt restructurings is presented in Note 3 - Loans. | |
Allowance for loan losses – The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management's best estimate of probable losses that have been incurred within the existing loan portfolio. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses inherent in the loan portfolio. The allowance for loan losses includes allowance allocations calculated in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Further information regarding the Company's policies and methodology used to estimate the allowance for loan losses is presented in Note 4 – Allowance for Loan Losses. | |
Transfers of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company or its subsidiaries – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company or its subsidiaries does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. | |
Premises and equipment – Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method based on the estimated useful lives of assets, which range from 3 to 20 years. Expenditures for repairs and maintenance are charged to expense as incurred. The costs of major renewals and betterments are capitalized and depreciated over their estimated useful lives. Upon disposition, the asset and related accumulated depreciation are removed from the books and any resulting gain or loss is charged to income. More information regarding premises and equipment is presented in Note 6 – Premises and Equipment. | |
Other real estate owned – Assets acquired through, or in lieu of, loan foreclosures are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses for foreclosed assets. More information regarding other real estate owned is presented in Note 5 – Other Real Estate Owned. | |
Bank owned life insurance – The Company has purchased life insurance on certain key employees. These policies are recorded at their cash surrender value on the Consolidated Balance Sheets. Income generated from polices is recorded as noninterest income. | |
Fair value measurements – ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon internally developed models that primarily use, as inputs, observable market-based parameters. Any such valuation adjustments are applied consistently over time. Additional information on fair value measurements is presented in Note 14 – Fair Value Measurements. | |
Stock-based compensation – The Company accounts for all plans under recognition and measurement accounting principles which require that the compensation cost relating to stock-based payment transactions be recognized in the financial statements. Stock-based compensation arrangements include stock options and restricted stock. Stock-based compensation is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value. The model employs the following assumptions: | |
Dividend yield - calculated as the ratio of historical cash dividends paid per share of common stock to the stock price on the date of grant; | |
Expected life (term of the option) - based on the average of the contractual life and vesting schedule for the respective option; | |
Expected volatility - based on the monthly historical volatility of the Company's stock price over the expected life of the options; | |
Risk-free interest rate - based upon the U.S. Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | |
The Company is required to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will impact the amount of estimated unamortized compensation expense to be recognized in future periods. Further information on stock-based compensation is presented in Note 17 – Stock Incentive Plans. | |
Earnings per common share – Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Additional information on earnings per share is presented in Note 18 – Earnings per Share. | |
Comprehensive income – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Further information on the Company's other comprehensive income is presented in Note 19 – Other Comprehensive Income. | |
Advertising costs – The Company follows the policy of charging the costs of advertising to expense as they are incurred. | |
Income taxes – Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss carry forwards, and tax credit carry forwards. Deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |
When tax returns are filed, it is highly probable that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |
Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. Further information on the Company's accounting policies for income taxes is presented in Note 8 – Income Taxes. | |
VNBTrust – Securities and other property held by VNBTrust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. | |
Reclassifications – Certain reclassifications have been made to prior periods to conform to current year presentation. The results of the reclassifications are not considered material. | |
In 2014, the Company elected to change its method for recording audit fees. Prior to 2014, the Bank accrued, in the current year, costs related to audit engagements for the current year, even if the remaining audit work was performed the following year. Management decided to change to an equally acceptable methodology that calls for recording audit expenses in the year the services are performed. The retrospective application of this change in methodology is reflected in the consolidated financial statements. The change in accounting method required a $75 thousand increase to retained earnings as of January 1, 2013. The offsetting decrease to other liabilities for the years ended December 31, 2013 and December 31, 2014 consisted of a decrease of approximately $113 thousand in reserve for accrued and unpaid expenses, netted against an increase in income tax payable of $38 thousand. The new method is preferable to the old method as audit fee expense would be recognized in the period in which the expense was incurred. | |
Adoption of New Accounting Standards | |
Recent accounting pronouncements | |
In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Management does not expect the adoption of ASU 2014-04 to have a material impact on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The Company is currently assessing the impact that ASU 2014-11 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. The amendments in this ASU apply to creditors that hold government-guaranteed mortgage loans and are intended to eliminate the diversity in practice related to the classification of these guaranteed loans upon foreclosure. The new guidance stipulates that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if (1) the loan has a government guarantee that is not separable from the loan prior to foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the other receivable should be measured on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. Entities may adopt the amendments on a prospective basis or modified retrospective basis as of the beginning of the annual period of adoption; however, the entity must apply the same method of transition as elected under ASU 2014-04. Early adoption is permitted provided the entity has already adopted ASU 2014-04. The Company is currently assessing the impact that ASU 2014-14 will have on its consolidated financial statements. | |
Newly issued not yet effective standards | |
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” This update is intended to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. |
Securities
Securities | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Securities [Abstract] | ||||||||||||||||||||||||||||
Securities | Note 2 – Securities | |||||||||||||||||||||||||||
The amortized cost and fair values of securities available for sale as of December 31, 2014 and December 31, 2013 are as follows: | ||||||||||||||||||||||||||||
31-Dec-14 | Amortized | Gross Unrealized | Gross Unrealized | Fair | ||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
U.S. Government agencies | $ | 31,189 | $ | 395 | $ | -56 | $ | 31,528 | ||||||||||||||||||||
Corporate bonds | 21,373 | 21 | -118 | 21,276 | ||||||||||||||||||||||||
Asset-backed securities | 2,133 | - | -28 | 2,105 | ||||||||||||||||||||||||
Mortgage-backed securities/CMOs | 63,327 | 297 | -404 | 63,220 | ||||||||||||||||||||||||
Municipal bonds | 23,727 | 157 | -197 | 23,687 | ||||||||||||||||||||||||
$ | 141,749 | $ | 870 | $ | -803 | $ | 141,816 | |||||||||||||||||||||
31-Dec-13 | Amortized | Gross Unrealized | Gross Unrealized | Fair | ||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
U.S. Government agencies | $ | 43,268 | $ | 828 | $ | -91 | $ | 44,005 | ||||||||||||||||||||
Corporate bonds | 9,066 | 37 | -50 | 9,053 | ||||||||||||||||||||||||
Asset-backed securities | 2,151 | - | -51 | 2,100 | ||||||||||||||||||||||||
Mortgage-backed securities/CMOs | 56,815 | 34 | -1,252 | 55,597 | ||||||||||||||||||||||||
Municipal bonds | 23,896 | 5 | -1,629 | 22,272 | ||||||||||||||||||||||||
$ | 135,196 | $ | 904 | $ | -3,073 | $ | 133,027 | |||||||||||||||||||||
All mortgage-backed securities included in the above tables were issued by U.S. government agencies and corporations. At December 31, 2014, the securities issued by political subdivisions or agencies were highly rated with 83% of the municipal bonds having AA or higher ratings. Approximately 79% of the municipal bonds are general obligation bonds with issuers that are geographically diverse. | ||||||||||||||||||||||||||||
Restricted securities are securities with limited marketability and consist of stock in the FRB, FHLB, and CBBFC totaling $1.565 million as of December 31, 2014 and $1.645 million as of December 31, 2013. These restricted securities are carried at cost as they are not permitted to be traded. | ||||||||||||||||||||||||||||
For the year ended December 31, 2014, proceeds from the sales of securities amounted to $7.498 million and gross net realized gains on these securities were $24 thousand. For the year ended December 31, 2013, proceeds from the sales of securities amounted to $16.854 million and gross net realized gains on these securities were $50 thousand. | ||||||||||||||||||||||||||||
During the third quarter of 2013, the Company reclassified held to maturity securities as available for sale. Management determined that it no longer had the positive intent to hold the securities classified as held to maturity for an indefinite period of time because of management's desire to have more flexibility in managing the investment portfolio. As of June 30, 2013, the Company had three corporate and municipal securities designated as held to maturity recorded at an amortized cost of $2.699 million The fair value of these securities was $2.733 million, reflecting an unrealized gross gain of $34 thousand. The unrealized gross gain of $34 thousand, net of taxes, was recorded as other comprehensive income at the time of the transfer. As a result of this transfer, there were no securities classified as held to maturity as of December 31, 2014 or December 31, 2013. | ||||||||||||||||||||||||||||
Securities pledged to secure deposits, and for other purposes required by law, had carrying values of $23.799 million at December 31, 2014 and $17.547 million at December 31, 2013. The increase in the amount of pledged securities during 2013 resulted from increased customer participation in the overnight repurchase agreement program. | ||||||||||||||||||||||||||||
Year-end securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, were as follows: | ||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | ||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||||||
Fair | Fair | Fair | ||||||||||||||||||||||||||
Value | (Losses) | Value | (Losses) | Value | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 6,375 | $ | -21 | $ | 966 | $ | -35 | $ | 7,341 | $ | -56 | ||||||||||||||||
Corporate bonds | 13,213 | -102 | 3,032 | -16 | 16,245 | -118 | ||||||||||||||||||||||
Asset-backed securities | 98 | - | 2,007 | -28 | 2,105 | -28 | ||||||||||||||||||||||
Mortgage-backed/CMOs | 6,276 | -35 | 25,081 | -369 | 31,357 | -404 | ||||||||||||||||||||||
Municipal bonds | 1,769 | -19 | 10,330 | -178 | 12,099 | -197 | ||||||||||||||||||||||
$ | 27,731 | $ | -177 | $ | 41,416 | $ | -626 | $ | 69,147 | $ | -803 | |||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||||||
Fair | Fair | Fair | ||||||||||||||||||||||||||
Value | (Losses) | Value | (Losses) | Value | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 2,889 | $ | -39 | $ | 948 | $ | -52 | $ | 3,837 | $ | -91 | ||||||||||||||||
Corporate bonds | 5,016 | -50 | - | - | 5,016 | -50 | ||||||||||||||||||||||
Asset-backed securities | 960 | -36 | 1,140 | -15 | 2,100 | -51 | ||||||||||||||||||||||
Mortgage-backed/CMOs | 39,061 | -1,079 | 8,609 | -173 | 47,670 | -1,252 | ||||||||||||||||||||||
Municipal bonds | 18,433 | -1,451 | 2,280 | -178 | 20,713 | -1,629 | ||||||||||||||||||||||
$ | 66,359 | $ | -2,655 | $ | 12,977 | $ | -418 | $ | 79,336 | $ | -3,073 | |||||||||||||||||
As of December 31, 2014, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. As of December 31, 2014, there were $69.1 million, or 74 issues, of individual securities in a loss position. These securities have an unrealized loss of $803 thousand and consisted of 26 mortgage-backed/CMOs, 25 municipal bonds, 15 corporate bonds, and 8 other security issues. | ||||||||||||||||||||||||||||
The Company's securities portfolio is primarily made up of fixed rate bonds, whose prices move inversely with interest rates. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. Accordingly, as of December 31, 2014, management believes the impairments detailed in the table above are temporary, and no impairment loss has been realized in the Company's consolidated income statement. | ||||||||||||||||||||||||||||
The amortized cost and fair value of available for sale securities at December 31, 2014 are presented below based upon contractual maturities, by major investment categories. Expected maturities may differ from contractual maturities because issuers have the right to call or prepay obligations. | ||||||||||||||||||||||||||||
Amortized Cost | Fair Value | |||||||||||||||||||||||||||
U.S. Government agencies | ||||||||||||||||||||||||||||
One year or less | $ | 13,090 | $ | 13,218 | ||||||||||||||||||||||||
After one year to five years | 8,941 | 9,089 | ||||||||||||||||||||||||||
After five years to ten years | 8,172 | 8,220 | ||||||||||||||||||||||||||
After ten years | 986 | 1,001 | ||||||||||||||||||||||||||
$ | 31,189 | $ | 31,528 | |||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||
After one year to five years | $ | 9,077 | $ | 9,049 | ||||||||||||||||||||||||
After five years to ten years | 12,296 | 12,227 | ||||||||||||||||||||||||||
$ | 21,373 | $ | 21,276 | |||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||
After five years to ten years | $ | 975 | $ | 952 | ||||||||||||||||||||||||
Ten years or more | 1,158 | 1,153 | ||||||||||||||||||||||||||
$ | 2,133 | $ | 2,105 | |||||||||||||||||||||||||
Mortgage-backed securities/CMOs | ||||||||||||||||||||||||||||
After five years to ten years | $ | 18,933 | $ | 18,985 | ||||||||||||||||||||||||
Ten years or more | 44,394 | 44,235 | ||||||||||||||||||||||||||
$ | 63,327 | $ | 63,220 | |||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||
After one year to five years | $ | 1,700 | $ | 1,704 | ||||||||||||||||||||||||
After five years to ten years | 9,852 | 9,882 | ||||||||||||||||||||||||||
Ten years or more | 12,175 | 12,101 | ||||||||||||||||||||||||||
$ | 23,727 | $ | 23,687 | |||||||||||||||||||||||||
Total Securities Available for Sale | $ | 141,749 | $ | 141,816 |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Loans | Note 3 – Loans | ||||||||||||||||||||||||||||||||||||||||||||||
The composition of the loan portfolio by loan classification year-end appears below. | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 46,125 | $ | 48,060 | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - syndicated | 14,815 | - | |||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 60,940 | 48,060 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | 337 | 794 | |||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 11,575 | 17,667 | |||||||||||||||||||||||||||||||||||||||||||||
Total construction and land | 11,912 | 18,461 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 60,162 | 54,300 | |||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 25,498 | 29,612 | |||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 26,462 | 22,560 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | 60,868 | 58,802 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | 54,012 | 54,635 | |||||||||||||||||||||||||||||||||||||||||||||
Total real estate mortgage | 227,002 | 219,909 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | 3,428 | 2,254 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 9,972 | 11,350 | |||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 13,400 | 13,604 | |||||||||||||||||||||||||||||||||||||||||||||
Total loans | 313,254 | 300,034 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Allowance for loan losses | -3,164 | -3,360 | |||||||||||||||||||||||||||||||||||||||||||||
Net loans | $ | 310,090 | $ | 296,674 | |||||||||||||||||||||||||||||||||||||||||||
Loan origination/risk management. The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and the Board of Directors approve lending policies on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions. Underwriting standards are designed to promote relationship banking rather than transactional banking. | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans are underwritten after evaluating and understanding the borrower's ability to operate profitably and prudently expand its business. The Company's management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable, inventory or marketable securities and may incorporate personal guaranties; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||||||||||||||||||||||||||||||||
The Company identifies commercial and industrial loans by classifying them into two classes. Organic loans are originated by the Bank's commercial lenders. Syndicated loans are purchased from national lending correspondents. Both organic and syndicated loans are underwritten according to the Bank's loan policy. | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. As a general rule, the Company avoids financing single-purpose projects unless other underwriting factors are present to help mitigate risk. At December 31, 2014, commercial real estate loans, including multifamily mortgages, totaled $141.3 million or 62.2% of the Company's outstanding balances of real estate loans. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Of the $141.3 million in commercial real estate loans outstanding at December 31, 2014, $60.9 million or 43.1% were owner-occupied properties. | |||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages for 1-to-4 family properties and home equity loans have underwriting standards that are heavily influenced by statutory requirements, which include, but are not limited to, documentation requirements, limits on maximum loan-to-value percentages, and collection remedies. The Company typically originates residential mortgages with the intention of retaining in its portfolio shorter-term fixed-rate loans and adjustable-rate mortgages. The Company also originates longer-term, fixed rates loans, which are sold to secondary mortgage market correspondents. At December 31, 2014, residential and home equity loans outstanding totaled $85.7 million or 37.8% of real estate mortgage loans. | |||||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land loans consist primarily of loans for the purchase or refinance of unimproved lots or raw land. Additionally, the Company finances the construction of real estate projects typically where the permanent mortgage will remain with the Company. Specific underwriting guidelines are delineated in the loan policy. At December 31, 2014, real estate construction and land loans totaled $11.9 million, or 3.8% of total loans. | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans are generally small loans spread across many borrowers and are underwritten after determining the ability of the consumer borrower to repay their obligations as agreed. The underwriting standards are heavily influenced by statutory requirements, which include, but are not limited to, documentation requirements and collection remedies. Consumer loans may be secured or unsecured and are comprised of revolving lines, installment loans and other consumer loans. At December 31, 2014, consumer loans totaled $13.4 million, or 4.3% of total loans. Deposit account overdrafts are included in the consumer loan balances and totaled $53 thousand and $51 thousand at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||
Independent loan review is performed by an independent loan review firm that reviews and validates the credit risk program on a periodic basis. Results of these reviews are presented to management and the Audit and Compliance Committee of the Board. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company's policies and procedures. | |||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of credit. Most of the Companys lending activity occurs within the Commonwealth of Virginia, primarily in the Company's primary markets and surrounding areas. The majority of the Company's loan portfolio consists of commercial and industrial and commercial real estate loans. As of December 31, 2014, there were no concentrations of loans related to any single industry in excess of 20% of total loans. | |||||||||||||||||||||||||||||||||||||||||||||||
Related party loans. In the ordinary course of business, the Company has granted loans to certain directors, executive officers and their affiliates (collectively referred to as “related parties”). Activity in related party loans during 2014 and 2013 is presented in the following table. | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding at beginning of year | $ | 6,526 | $ | 6,401 | |||||||||||||||||||||||||||||||||||||||||||
Principal additions | 8,043 | 4,574 | |||||||||||||||||||||||||||||||||||||||||||||
Principal reductions | (3,728 | ) | -4,449 | ||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding at end of year | $ | 10,841 | $ | 6,526 | |||||||||||||||||||||||||||||||||||||||||||
Past due, non-accrual and charged-off loans. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on non-accrual status when, in management's opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Smaller, unsecured consumer loans are typically charged-off when management judges the loan to be uncollectable or the borrower files for bankruptcy and are generally not placed in non-accrual status prior to charge-off. In determining whether or not a borrower may be unable to meet payment obligations for each class of loans, the Company considers the borrower's debt service capacity through the analysis of current financial information, if available, and/or current information with regards to the Company's collateral position. | |||||||||||||||||||||||||||||||||||||||||||||||
Regulatory provisions would typically require a loan to be charged-off or placed on non-accrual status if (i) principal or interest has been in default for a period of 90 days or more unless the loan is both well secured and in the process of collection or (ii) full payment of principal and interest is not expected. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income on non-accrual loans is recognized only to the extent that cash payments are received in excess of principal due. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. | |||||||||||||||||||||||||||||||||||||||||||||||
Non-accrual loans are shown below by class: | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 69 | $ | 77 | |||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 149 | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | - | 230 | |||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 218 | $ | 367 | |||||||||||||||||||||||||||||||||||||||||||
The following tables show the aging of past due loans as of December 31, 2014 and December 31, 2013. Also included are loans that are 90 or more days past due but still accruing, because they are well secured and in the process of collection. As of December 31, 2014, the Company had no loans that were 90 days or more past due. As of December 31, 2013, the Company had two loans that were 90 or more days past due but still accruing for a balance of $178 thousand. | |||||||||||||||||||||||||||||||||||||||||||||||
Past Due Aging as of | 90 Days | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30-59 | 60-89 | 90 Days or | Past Due | |||||||||||||||||||||||||||||||||||||||||||
Days Past | Days Past | More Past | Total Past | Total | and Still | ||||||||||||||||||||||||||||||||||||||||||
Due | Due | Due | Due | Current | Loans | Accruing | |||||||||||||||||||||||||||||||||||||||||
Commercial loans | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 6 | $ | - | $ | - | $ | 6 | $ | 46,119 | $ | 46,125 | $ | - | |||||||||||||||||||||||||||||||||
Commercial and industrial - syndicated | - | - | - | - | 14,815 | 14,815 | - | ||||||||||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | 337 | 337 | - | ||||||||||||||||||||||||||||||||||||||||
Other construction and land | - | - | - | - | 11,575 | 11,575 | - | ||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | - | 24 | - | 24 | 60,138 | 60,162 | - | ||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | - | - | - | - | 25,498 | 25,498 | - | ||||||||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 26,462 | 26,462 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | - | - | - | - | 60,868 | 60,868 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | - | - | - | - | 54,012 | 54,012 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | 1 | - | - | 1 | 3,427 | 3,428 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 12 | 30 | - | 42 | 9,930 | 9,972 | - | ||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 19 | $ | 54 | $ | - | $ | 73 | $ | 313,181 | $ | 313,254 | $ | - | |||||||||||||||||||||||||||||||||
Past Due Aging as of | 90 Days | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 30-59 | 60-89 | 90 Days or | Past Due | |||||||||||||||||||||||||||||||||||||||||||
Days Past | Days Past | More Past | Total Past | Total | and Still | ||||||||||||||||||||||||||||||||||||||||||
Due | Due | Due | Due | Current | Loans | Accruing | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 123 | $ | 35 | $ | - | $ | 158 | $ | 47,902 | $ | 48,060 | $ | - | |||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | 794 | 794 | - | ||||||||||||||||||||||||||||||||||||||||
Other construction and land | 34 | - | 29 | 63 | 17,604 | 17,667 | 29 | ||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 60 | 26 | 149 | 235 | 54,065 | 54,300 | 149 | ||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | - | - | - | - | 29,612 | 29,612 | - | ||||||||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 22,560 | 22,560 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | - | - | - | - | 58,802 | 58,802 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | - | 139 | 91 | 230 | 54,405 | 54,635 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | - | - | - | - | 2,254 | 2,254 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 93 | 30 | - | 123 | 11,227 | 11,350 | - | ||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 310 | $ | 230 | $ | 269 | $ | 809 | $ | 299,225 | $ | 300,034 | $ | 178 | |||||||||||||||||||||||||||||||||
Impaired loans. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||||||||||||||||||||||||||||||||||||||
Regulatory guidelines require the Company to reevaluate the fair value of collateral supporting impaired collateral dependent loans on at least an annual basis. While the Company's policy is to comply with the regulatory guidelines, the Company's general practice is to reevaluate the fair value of collateral supporting impaired collateral dependent loans on a quarterly basis. | |||||||||||||||||||||||||||||||||||||||||||||||
The following tables provide a breakdown by class of the loans classified as impaired loans as of December 31, 2014 and December 31, 2013. These loans are reported at their recorded investment, which is the carrying amount of the loan as reflected on the Company's balance sheet, net of charge-offs and other amounts applied to reduce the net book balance. Average recorded investment in impaired loans is computed using an average of month-end balances for these loans for the twelve months ended December 31, 2014 and December 31, 2013. Interest income recognized is for the years ended December 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | Unpaid | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Associated | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 69 | $ | 109 | $ | - | $ | 79 | $ | 1 | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 525 | 545 | - | 437 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credits | - | - | - | 50 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1,103 | 1,103 | - | 1,124 | 60 | ||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | - | - | - | 46 | - | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 1,697 | $ | 1,757 | $ | - | $ | 1,736 | $ | 80 | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Unpaid | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Associated | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 77 | $ | 110 | $ | - | $ | 81 | $ | - | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 285 | 380 | - | 293 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1,144 | 1,144 | - | 1,414 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | 230 | 274 | - | 202 | - | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 1,736 | $ | 1,908 | $ | - | $ | 1,990 | $ | 61 | |||||||||||||||||||||||||||||||||||||
Troubled debt restructurings (“TDRs”) are also considered impaired loans. TDRs occur when the Bank agrees to modify the original terms of a loan by granting a concession that it would not otherwise consider due to the deterioration in the financial condition of the borrower. These concessions are done in an attempt to improve the paying capacity of the borrower, and in some cases to avoid foreclosure, and are made with the intent to restore the loan to a performing status once sufficient payment history can be demonstrated. These concessions could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. | |||||||||||||||||||||||||||||||||||||||||||||||
The following provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed in non-accrual status, which are considered to be nonperforming. | |||||||||||||||||||||||||||||||||||||||||||||||
Troubled debt restructuring (TDRs) | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||
No. of | Recorded | No. of | Recorded | ||||||||||||||||||||||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||||||||||||||||||||||
Performing TDRs | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 2 | $ | 376 | 1 | $ | 225 | |||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1 | 1,103 | 1 | 1,144 | |||||||||||||||||||||||||||||||||||||||||||
Total performing TDRs | 3 | $ | 1,479 | 2 | $ | 1,369 | |||||||||||||||||||||||||||||||||||||||||
Nonperforming TDRs | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 1 | $ | 39 | - | $ | - | |||||||||||||||||||||||||||||||||||||||||
Total TDRs | 4 | $ | 1,518 | 2 | $ | 1,369 | |||||||||||||||||||||||||||||||||||||||||
A summary of loans that were modified as TDRs during the years ended December 31, 2014 and 2013 is shown below by class. The Post-Modification Recorded Balance reflects any interest or fees from the original loan which may have been added to the principal balance on the new note as a condition of the TDR. Additionally, the Post-Modification Recorded Balance is reported below at the period end balances, inclusive of all partial principal pay downs and principal charge-offs since the modification date. Loans modified as TDRs that were fully paid down, charged-off, or foreclosed upon by period end are not reported. | |||||||||||||||||||||||||||||||||||||||||||||||
Loans modified at below market rates | During year ended | During year ended | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||||||||||||||||
Number | Modification | Modification | Modification | Modification | |||||||||||||||||||||||||||||||||||||||||||
of | Recorded | Recorded | Number | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||
Loans | Balance | Balance | of Loans | Balance | Balance | ||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 1 | $ | 40 | $ | 39 | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgage | 1 | 156 | 155 | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Total loans modified during the period | 2 | $ | 196 | $ | 194 | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||||
The following tables present, by class of loans, information related to loans modified as TDRs that subsequently defaulted during the years ended December 31, 2014 and 2013 and were modified as TDRs during the twelve months prior to default: | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
No. of | Recorded | No. of | Recorded | ||||||||||||||||||||||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | - | $ | - | 1 | $ | 65 | |||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | - | - | 1 | 183 | |||||||||||||||||||||||||||||||||||||||||||
Total | - | $ | - | 2 | $ | 248 |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||
Allowance for Loan Losses | Note 4 – Allowance for Loan Losses | ||||||||||||||||||||||||||||
A summary of the transactions in the allowance for loan losses for the years ended December 31, 2014 and 2013 appears below: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Balance, beginning of period | $ | 3,360 | $ | 3,267 | |||||||||||||||||||||||||
Loans charged off | -551 | -161 | |||||||||||||||||||||||||||
Recoveries | 49 | 94 | |||||||||||||||||||||||||||
Net charge-offs | -502 | -67 | |||||||||||||||||||||||||||
Provision for loan losses | 306 | 160 | |||||||||||||||||||||||||||
Balance, December 31 | $ | 3,164 | $ | 3,360 | |||||||||||||||||||||||||
Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Within these segments, the Company has sub-segmented its portfolio by classes, based on the associated risks within these classes. | |||||||||||||||||||||||||||||
LOAN CLASSES BY SEGMENTS | |||||||||||||||||||||||||||||
Commercial loan segment: | |||||||||||||||||||||||||||||
Commercial and industrial - organic | |||||||||||||||||||||||||||||
Commercial and industrial - syndicated | |||||||||||||||||||||||||||||
Real estate construction and land loan segment: | |||||||||||||||||||||||||||||
Residential construction | |||||||||||||||||||||||||||||
Other construction and land | |||||||||||||||||||||||||||||
Real estate mortgage loan segment: | |||||||||||||||||||||||||||||
1-4 family residential | |||||||||||||||||||||||||||||
Home equity lines of credit | |||||||||||||||||||||||||||||
Multifamily | |||||||||||||||||||||||||||||
Commercial owner occupied | |||||||||||||||||||||||||||||
Commercial non-owner occupied | |||||||||||||||||||||||||||||
Consumer loan segment: | |||||||||||||||||||||||||||||
Consumer revolving credit | |||||||||||||||||||||||||||||
Consumer all other credit | |||||||||||||||||||||||||||||
Based upon the internal risk ratings assigned to each credit, a historical loss factor is assigned to the principal balances for each loan class. The historical loss factor is calculated by averaging the actual loan losses, for each loan class, from the previous twelve quarters. | |||||||||||||||||||||||||||||
The Company's internal creditworthiness grading system is based on experiences with similarly graded loans. Category ratings are reviewed quarterly by experienced senior lenders based on each borrower's situation. Additionally, internal and external monitoring and review of credits are conducted on an annual basis. | |||||||||||||||||||||||||||||
Loans that trend upward toward more positive risk ratings generally have a lower risk factor associated. Conversely, loans that migrate toward more negative ratings generally will result in a higher risk factor being applied to those related loan balances. | |||||||||||||||||||||||||||||
Risk Ratings And Historical Loss Factor Applied | |||||||||||||||||||||||||||||
Excellent | |||||||||||||||||||||||||||||
0% applied, as these loans are secured by cash and represent a minimal risk. The Company has never experienced a loss for this category. | |||||||||||||||||||||||||||||
Good | |||||||||||||||||||||||||||||
0% applied, as these loans are secured by marketable securities within margin and represent a low risk. The Company has never experienced a loss for this category. | |||||||||||||||||||||||||||||
Pass | |||||||||||||||||||||||||||||
Historical loss factor for loans rated “pass” is applied to current balances of like-rated loans, pooled by class. Loans with the following risk ratings are pooled by class and considered together as “pass”: | |||||||||||||||||||||||||||||
Satisfactory - modest risk loans where the borrower has strong and liquid financial statement and more than adequate cash flow | |||||||||||||||||||||||||||||
Average – average risk loans where the borrower has reasonable debt service capacity | |||||||||||||||||||||||||||||
Marginal – acceptable risk loans where the borrower has an acceptable financial statement but is leveraged | |||||||||||||||||||||||||||||
Watch – acceptable risk loans which require more attention than normal servicing | |||||||||||||||||||||||||||||
Special Mention | |||||||||||||||||||||||||||||
These potential problem loans are currently protected but are potentially weak. Historical loss factor for loans rated “special mention” is applied to current balances of like-rated loans pooled by class. | |||||||||||||||||||||||||||||
Substandard | |||||||||||||||||||||||||||||
These problem loans are inadequately protected by the sound worth and paying capacity of the borrower and/or the value of any collateral pledged. These loans may be considered impaired and evaluated on an individual basis. Otherwise, an historical loss factor for loans rated “substandard” is applied to current balances of all other “substandard” loans pooled by class. | |||||||||||||||||||||||||||||
Doubtful | |||||||||||||||||||||||||||||
Loans with this rating have significant deterioration in the sound worth and paying capacity of the borrower and/or the value of any collateral pledged, making collection or liquidation of the loan in full highly questionable. These loans would be considered impaired and evaluated on an individual basis. | |||||||||||||||||||||||||||||
The following represents the loan portfolio designated by the internal risk ratings assigned to each credit at year-end: | |||||||||||||||||||||||||||||
Internal Risk Rating Grades | Special | Sub- | |||||||||||||||||||||||||||
31-Dec-14 | Excellent | Good | Pass | Mention | standard | Doubtful | TOTAL | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 3,579 | $ | 23,261 | $ | 18,487 | $ | 64 | $ | 734 | $ | - | $ | 46,125 | |||||||||||||||
Commercial and industrial - syndicated | - | - | 14,815 | - | - | - | 14,815 | ||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||
Residential construction | - | - | 337 | - | - | - | 337 | ||||||||||||||||||||||
Other construction and land | - | - | 10,903 | 507 | 165 | - | 11,575 | ||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||
1-4 family residential | - | 1,910 | 56,968 | 455 | 829 | - | 60,162 | ||||||||||||||||||||||
Home equity lines of credit | - | - | 25,411 | - | 87 | - | 25,498 | ||||||||||||||||||||||
Multifamily | - | - | 26,462 | - | - | - | 26,462 | ||||||||||||||||||||||
Commercial owner occupied | - | - | 58,890 | - | 1,978 | - | 60,868 | ||||||||||||||||||||||
Commercial non-owner occupied | - | - | 54,012 | - | - | - | 54,012 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Consumer revolving credit | 34 | 3,054 | 332 | - | 8 | - | 3,428 | ||||||||||||||||||||||
Consumer all other credit | 200 | 7,856 | 1,867 | - | 49 | - | 9,972 | ||||||||||||||||||||||
Total Loans | $ | 3,813 | $ | 36,081 | $ | 268,484 | $ | 1,026 | $ | 3,850 | $ | - | $ | 313,254 | |||||||||||||||
Internal Risk Rating Grades | Special | Sub- | |||||||||||||||||||||||||||
31-Dec-13 | Excellent | Good | Pass | Mention | standard | Doubtful | TOTAL | ||||||||||||||||||||||
Commercial and industrial - organic | $ | 4,056 | $ | 19,464 | $ | 24,015 | $ | 5 | $ | 520 | $ | - | $ | 48,060 | |||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||
Residential construction | - | - | 794 | - | - | - | 794 | ||||||||||||||||||||||
Other construction and land | - | - | 17,031 | 530 | 106 | - | 17,667 | ||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||
1-4 family residential | - | 1,934 | 50,945 | 593 | 828 | - | 54,300 | ||||||||||||||||||||||
Home equity lines of credit | - | - | 29,367 | - | 245 | - | 29,612 | ||||||||||||||||||||||
Multifamily | - | - | 22,560 | - | - | - | 22,560 | ||||||||||||||||||||||
Commercial owner occupied | - | - | 56,668 | - | 2,134 | - | 58,802 | ||||||||||||||||||||||
Commercial non-owner occupied | - | - | 51,884 | 567 | 2,184 | - | 54,635 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Consumer revolving credit | - | 1,926 | 319 | - | 9 | - | 2,254 | ||||||||||||||||||||||
Consumer all other credit | 371 | 8,772 | 2,153 | - | 54 | - | 11,350 | ||||||||||||||||||||||
Total Loans | $ | 4,427 | $ | 32,096 | $ | 255,736 | $ | 1,695 | $ | 6,080 | $ | - | $ | 300,034 | |||||||||||||||
In addition to the historical factors, the adequacy of the Company's allowance for loan losses is evaluated through reference to eight qualitative factors, listed below and ranked in order of importance: | |||||||||||||||||||||||||||||
1) | Changes in national and local economic conditions, including the condition of various market segments | ||||||||||||||||||||||||||||
2) | Changes in the value of underlying collateral | ||||||||||||||||||||||||||||
3) | Changes in volume of classified assets, measured as a percentage of capital | ||||||||||||||||||||||||||||
4) | Changes in volume of delinquent loans | ||||||||||||||||||||||||||||
5) | The existence and effect of any concentrations of credit and changes in the level of such concentrations | ||||||||||||||||||||||||||||
6) | Changes in lending policies and procedures, including underwriting standards | ||||||||||||||||||||||||||||
7) | Changes in the experience, ability and depth of lending management and staff | ||||||||||||||||||||||||||||
8) | Changes in the level of policy exceptions | ||||||||||||||||||||||||||||
It has been the Company's experience that the first four factors drive losses to a much greater extent than the last four factors; therefore, the first four factors are weighted more heavily. | |||||||||||||||||||||||||||||
Historical factors and qualitative factors are not assessed against loans rated “excellent” or rated “good,” since these are fully collateralized by cash or readily marketable securities. | |||||||||||||||||||||||||||||
For each segment and class of loans, management must exercise significant judgment to determine the estimation method that fits the credit risk characteristics of its various segments. Although this evaluation is inherently subjective, qualified management utilizes its significant knowledge and experience related to both the market and history of the Company's loan losses. | |||||||||||||||||||||||||||||
During these evaluations, particular characteristics associated with a segment of the loan portfolio are also considered. These characteristics are detailed below: | |||||||||||||||||||||||||||||
Commercial loans not secured by real estate carry risks associated with the successful operation of a business, and the repayments of these loans depend on the profitability and cash flows of the business. Additional risk relates to the value of collateral where depreciation occurs and the valuation is less precise. | |||||||||||||||||||||||||||||
Commercial loans purchased from the syndicated loan market generally represent shared national credits,which are participations in loans or loan commitments that are shared by three or more banks. Included in the Company's shared national credit portfolio are purchased participations and assignments in leveraged lending transactions. Leveraged lending transactions are generally used to support a merger- or acquisition-related transaction, to back a recapitalization of a company's balance sheet or to refinance debt. When considering a participation in the leveraged lending market, the Company participates only in first lien senior secured term loans. To further minimize risk, the Company has developed policies to limit overall credit exposure to the syndicated market as a whole and to each borrower. | |||||||||||||||||||||||||||||
Loans secured by commercial real estate also carry risks associated with the success of the business and the ability to generate a positive cash flow sufficient to service debts. Real estate security diminishes risks only to the extent that a market exists for the subject collateral. | |||||||||||||||||||||||||||||
Consumer loans carry risks associated with the continued creditworthiness of the borrower and the value of the collateral, such as automobiles which may depreciate more rapidly than other assets. In addition, these loans may be unsecured. Consumer loans are more likely than real estate loans to be immediately affected in an adverse manner by job loss, divorce, illness or personal bankruptcy. Consumer loans are further segmented into consumer revolving lines and all other consumer loans. | |||||||||||||||||||||||||||||
Real estate secured construction loans carry risks that a project will not be completed as scheduled and budgeted and that the value of the collateral may, at any point, be less than the principal amount of the loan. Additional risks may occur if the general contractor, who may not be a loan customer, is unable to finish the project as planned due to financial pressures unrelated to the project. | |||||||||||||||||||||||||||||
Residential real estate loans carry risks associated with the continued creditworthiness of the borrower and changes in the value of the collateral. | |||||||||||||||||||||||||||||
Impaired loans are individually evaluated and, if deemed appropriate, a specific allocation is made for these loans. In reviewing the six loans in the amount of $1.697 million classified as impaired loans at December 31, 2014, there was no valuation allowance on any of these loans after consideration was given for each borrowing as to the fair value of the collateral on the loan or the present value of expected future cash flows from the customer. | |||||||||||||||||||||||||||||
Allowance for Loan Losses Rollforward by Portfolio Segment | |||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Commercial | Construction and | Real Estate | Consumer | ||||||||||||||||||||||||||
Loans | Land | Mortgages | Loans | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 340 | $ | 198 | $ | 2,788 | $ | 34 | $ | 3,360 | |||||||||||||||||||
Charge-offs | (286 | ) | - | (262 | ) | (3 | ) | (551 | ) | ||||||||||||||||||||
Recoveries | 32 | - | 10 | 7 | 49 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 588 | (96 | ) | (176 | ) | (10 | ) | 306 | |||||||||||||||||||||
Ending Balance | $ | 674 | $ | 102 | $ | 2,360 | $ | 28 | $ | 3,164 | |||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Collectively evaluated for impairment | 674 | 102 | 2,360 | 28 | 3,164 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 69 | $ | 1,628 | $ | - | $ | 1,697 | |||||||||||||||||||
Collectively evaluated for impairment | 60,940 | 11,843 | 225,374 | 13,400 | 311,557 | ||||||||||||||||||||||||
Ending Balance: | $ | 60,940 | $ | 11,912 | $ | 227,002 | $ | 13,400 | $ | 313,254 | |||||||||||||||||||
Allowance for Loan Losses Rollforward by Portfolio Segment | |||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Commercial | Construction and | Real Estate | Consumer | ||||||||||||||||||||||||||
Loans | Land | Mortgages | Loans | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 303 | $ | 168 | $ | 2,750 | $ | 46 | $ | 3,267 | |||||||||||||||||||
Charge-offs | (22 | ) | - | (139 | ) | - | (161 | ) | |||||||||||||||||||||
Recoveries | 22 | - | 48 | 24 | 94 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 37 | 30 | 129 | (36 | ) | 160 | |||||||||||||||||||||||
Ending Balance | $ | 340 | $ | 198 | $ | 2,788 | $ | 34 | $ | 3,360 | |||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Collectively evaluated for impairment | 340 | 198 | 2,788 | 34 | 3,360 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 77 | $ | 1,659 | $ | - | $ | 1,736 | |||||||||||||||||||
Collectively evaluated for impairment | 48,060 | 18,384 | 218,250 | 13,604 | 298,298 | ||||||||||||||||||||||||
Ending Balance: | $ | 48,060 | $ | 18,461 | $ | 219,909 | $ | 13,604 | $ | 300,034 |
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Real Estate Owned [Abstract] | ||||||||||||
Other Real Estate Owned | Note 5 – Other Real Estate Owned (OREO) | |||||||||||
At December 31, 2014, OREO was carried at $1.177 million and was comprised of one residential property. At December 31, 2013, OREO was carried at $2.372 million. | ||||||||||||
Changes in the balance for OREO are as follows: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Balance at beginning of year, gross | $ | 3,133 | $ | 2,329 | ||||||||
Transfer from loans | 244 | 804 | ||||||||||
Previously recognized impairment losses on disposition | -101 | - | ||||||||||
Net loss on sale of property | -27 | - | ||||||||||
Sales proceeds | -1,135 | - | ||||||||||
Balance at end of year, gross | $ | 2,114 | $ | 3,133 | ||||||||
Less: valuation allowance | -937 | -761 | ||||||||||
Balance at end of year, net | $ | 1,177 | $ | 2,372 | ||||||||
Changes in the valuation allowance for OREO are as follows: | ||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||
Balance at beginning of year | $ | 761 | $ | 583 | ||||||||
Valuation allowance | 277 | 178 | ||||||||||
Charge-offs | -101 | - | ||||||||||
Balance at end of year | $ | 937 | $ | 761 | ||||||||
Expenses applicable to OREO, other than the valuation allowance and net losses on sale, were $59 thousand for the year ended December 31, 2014 and $107 thousand for the year ended December 31, 2013. | ||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment [Abstract] | ||||||||
Premises and Equipment | Note 6 – Premises and Equipment | |||||||
Premises and equipment are summarized as follows: | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Leasehold improvements | $ | 15,703 | $ | 15,439 | ||||
Building and land | 1,215 | 1,207 | ||||||
Construction and fixed assets in progress | 110 | 3 | ||||||
Furniture and equipment | 5,683 | 5,368 | ||||||
Computer software | 1,875 | 1,848 | ||||||
$ | 24,586 | $ | 23,865 | |||||
Less: accumulated depreciation | ||||||||
and amortization | 15,121 | 14,041 | ||||||
$ | 9,465 | $ | 9,824 | |||||
At December 31, 2014, the Company had leased certain of its banking and operations offices under operating lease agreements on terms ranging from 1 to 20 years with renewal options. Rent expense charged to operations under operating lease agreements totaled $940 thousand in 2014 and $1.010 million in 2013. | ||||||||
The following is a schedule of future minimum rental payments required under non-cancelable operating leases that have initial or remaining terms in excess of one year as of December 31, 2014: | ||||||||
2015 | $ | 834 | ||||||
2016 | 772 | |||||||
2017 | 705 | |||||||
2018 | 619 | |||||||
2019 | 425 | |||||||
Thereafter | 2,626 | |||||||
$ | 5,981 | |||||||
Deposits
Deposits | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Deposits | Note 7 – Deposits | |||
The aggregate amount of time deposits with a minimum balance of $250 thousand was $38.959 million at December 31, 2014 and $32.738 million at December 31, 2013. | ||||
Brokered deposits totaled $18.693 million and $25.045 million at December 31, 2014 and 2013, respectively. These brokered deposits represent reciprocal relationships established under the Certificate of Deposit Account Registry Service (CDARS™), whereby depositors can obtain FDIC insurance on deposits up to at least $50 million or more. | ||||
At December 31, 2014, the scheduled maturities of time deposits are as follows: | ||||
2015 | $ | 107,199 | ||
2016 | 5,341 | |||
2017 | 2,787 | |||
2018 | 927 | |||
2019 | 840 | |||
$ | 117,094 | |||
Deposit account overdrafts reported as loans totaled $53 thousand and $51 thousand at December 31, 2014 and December 31, 2013, respectively. | ||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income Taxes | Note 8 – Income Taxes | ||||||||||||
The Company files tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal tax examinations by tax authorities for years prior to 2011. | |||||||||||||
The Commonwealth of Virginia assesses a Bank Franchise Tax on banks instead of a state income tax. The Bank Franchise Tax expense is reported in noninterest expense and the tax's calculation is unrelated to taxable income. | |||||||||||||
For the tax year 2013, the Company and the Bank filed separate federal income tax returns. The Company will file a consolidated federal income tax return beginning in 2014 and for the foreseeable future. The tax provision and liability shown below reflects the tax position of the Company on a consolidated basis. | |||||||||||||
Net deferred tax assets consist of the following components as of year-end: | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 970 | $ | 1,025 | |||||||||
Non-accrual loan interest | 5 | 7 | |||||||||||
Stock option/grant expense | 316 | 337 | |||||||||||
Start-up expenses | 60 | 1 | |||||||||||
Home equity closing costs | 66 | 63 | |||||||||||
OREO valuation allowance | 319 | 315 | |||||||||||
Deferred compensation expense | 14 | 12 | |||||||||||
Securities available for sale unrealized losses | - | 737 | |||||||||||
Depreciation | 696 | 585 | |||||||||||
$ | 2,446 | $ | 3,082 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Securities available for sale unrealized gains | $ | 23 | $ | - | |||||||||
Deferred loan costs | 57 | 17 | |||||||||||
80 | 17 | ||||||||||||
Net deferred tax assets | $ | 2,366 | $ | 3,065 | |||||||||
The provision for income taxes charged to operations for years ended December 31, 2014 and 2013 consists of the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Current tax expense | $ | 517 | $ | 3,504 | |||||||||
Deferred tax benefit | -61 | -292 | |||||||||||
Provision for income taxes | $ | 456 | $ | 3,212 | |||||||||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2014 and 2013 due to the following: | |||||||||||||
2014 | 2013 | ||||||||||||
Federal statutory rate | 34% | 34% | |||||||||||
Computed statutory tax expense | $ | 800 | $ | 3,501 | |||||||||
Increase (decrease) in tax resulting from: | |||||||||||||
Tax-exempt interest income | -169 | -169 | |||||||||||
Tax-exempt income from Bank | |||||||||||||
Owned Life Insurance (BOLI) | -149 | -151 | |||||||||||
Stock option expense | 14 | 14 | |||||||||||
Other | -40 | 17 | |||||||||||
Provision for income taxes | $ | 456 | $ | 3,212 | |||||||||
Commitments_and_Contingent_Lia
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Note 9 – Commitments and Contingent Liabilities |
In the normal course of business, there are various outstanding commitments and contingent liabilities, which are not reflected in the accompanying consolidated financial statements. The Company does not anticipate any material loss as a result of these transactions. | |
As a member of the Federal Reserve System, the Company is required to maintain certain average clearing balances. Those balances include amounts on deposit with the Federal Reserve. For the final weekly reporting period in the years ended December 31, 2014 and December 31, 2013, no daily average required balances were required for either year. | |
Financial_Instruments_With_Off
Financial Instruments With Off-Balance Sheet Risk and Credit Risk | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments With Off-Balance Sheet Risk and Credit Risk [Abstract] | ||||||||
Financial Instruments With Off-Balance Sheet Risk and Credit Risk | Note 10 – Financial Instruments with Off-Balance Sheet Risk and Credit Risk | |||||||
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit and standby letters of credit. In addition to the amounts shown below, the Company has extended commitment letters at December 31, 2014 in the amount of $23.280 million to various borrowers. At December 31, 2013, commitment letters totaled $12.364 million. Commitment letters are done in the normal course of business and typically expire after 120 days. All of these off-balance-sheet instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet, although material losses are not anticipated. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. | ||||||||
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | ||||||||
The totals for financial instruments whose contract amount represents credit risk are shown below: | ||||||||
Notional Amount | ||||||||
31-Dec-14 | 31-Dec-13 | |||||||
Unfunded lines-of-credit | $ | 80,589 | $ | 79,519 | ||||
ACH | 16,316 | 14,287 | ||||||
Letters of credit | 5,034 | 5,364 | ||||||
Total | $ | 101,939 | $ | 99,170 | ||||
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 on a case-by-case basis. The amount of collateral, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral normally consists of real property. | ||||||||
Standby letters of credit are conditional commitments by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions.The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds real estate and bank deposits as collateral supporting those commitments for which collateral is deemed necessary. | ||||||||
The Company has approximately $100 thousand in deposits in other financial institutions in excess of amounts insured by the FDIC at December 31, 2014. | ||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 11 – Related Party Transactions |
From time to time, the Company and its subsidiaries have business dealings with companies owned by directors and beneficial shareholders of the Company. Payments made to these companies that exceeded the disclosure threshold of $120 thousand in 2014 are reported below. | |
In 2014, rental expenditures of $453 thousand (including reimbursements for taxes, insurance, and other expenses) were paid to an entity owned by a director of the Company. Additionally, the Bank paid $318,000 for assistance with the Bank's marketing and advertising programs to a marketing and advertising agency of which a Bank director is an owner. Some portion of the payments to this agency was used, in turn, to pay third parties for legitimate business expenses incurred on behalf of the Bank. | |
SRCM Holdings LLC (“SRCM Holdings”) and Swift Run Capital Management, LLC (“SRCM”) are part of a group (collectively, the “SRCM Group”) that have shared voting and shared dispositive power over 9% of the outstanding Company common stock as of March 6, 2014. As discussed in the section titled Organization and Principles of Consolidation in Note 1 – Summary of Significant Accounting Policies, the Sale Agreement entered into on June 27, 2013 provides for VNBTrust to receive ongoing royalty payments from SRCM Holdings and/or SRCM. A former officer of VNBTrust is the principal owner of SRCM Holdings. From March 6, 2014 through December 31, 2014, the Company and its affiliates received cash payments from SRCM Holdings and/or SRCM of $651 thousand, of which $593 thousand was recorded as royalty income. | |
Capital_Requirements
Capital Requirements | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Capital Requirements [Abstract] | ||||||||||||||||||||||||||||||
Capital Requirements | Note 12 – Capital Requirements | |||||||||||||||||||||||||||||
The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's and the Bank's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | ||||||||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2014 and 2013, that the Company and the Bank met all capital adequacy requirements to which they are subject. | ||||||||||||||||||||||||||||||
The Bank's capital ratios remain above the levels designated by bank regulators as “well capitalized” at December 31, 2014. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the institution's category. | ||||||||||||||||||||||||||||||
The Company's and the Bank's actual capital amounts and ratios are presented in the following tables: | ||||||||||||||||||||||||||||||
31-Dec-14 | Minimum | |||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||
Minimum Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||
Actual | Requirement | Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 63,752 | 17.87 | % | $ | 28,538 | 8 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 52,505 | 15.63 | % | $ | 28,490 | 8 | % | $ | 35,612 | 10 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 60,588 | 16.98 | % | $ | 14,269 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 55,669 | 14.74 | % | $ | 14,245 | 4 | % | $ | 21,367 | 6 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Average Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 60,588 | 11.38 | % | $ | 21,305 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 55,669 | 9.86 | % | $ | 21,296 | 4 | % | $ | 26,620 | 5 | % | ||||||||||||||||||
31-Dec-13 | Minimum | |||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||
Minimum Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||
Actual | Requirement | Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 62,747 | 18 | % | $ | 27,889 | 8 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 54,434 | 15.62 | % | $ | 27,886 | 8 | % | $ | 34,857 | 10 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 59,387 | 17.03 | % | $ | 13,945 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 51,074 | 14.65 | % | $ | 13,943 | 4 | % | $ | 20,914 | 6 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Average Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 59,387 | 11.86 | % | $ | 20,026 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 51,074 | 10.2 | % | $ | 20,026 | 4 | % | $ | 25,033 | 5 | % |
Dividend_Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2014 | |
Dividend Restrictions [Abstract] | |
Dividend Restrictions | Note 13 – Dividend Restrictions |
The primary source of funds for the dividends paid by the Company to shareholders is dividends received from the Bank. Federal regulations limit the amount of dividends which the Bank can pay to the Company without obtaining prior approval. The amount of cash dividends that the Bank may pay is limited to current year earnings plus retained net profits for the two preceding years. In addition, dividends paid by the Bank would be prohibited if the effect thereof would cause the Bank's capital to be reduced below applicable minimum capital requirements. Notwithstanding the regulatory limitations on cash dividends, the Bank's Board of Directors approved a cash dividend payment policy that, once combined with any previous cash dividends paid within the last 12 months, the total of which will not exceed 50% of the Bank's after-tax earnings, excluding any extraordinary items, for the preceding 12 months. If the previous 3 quarterly dividends are not within the preceding 12 months, then only the amounts of dividends paid in the previous 12 months, plus the proposed dividend, in total will not exceed 60% of the Bank's after-tax earnings. | |
At December 31, 2014, the maximum amount of retained earnings available to the Bank for cash dividends to the Company was $4.584 million. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||
Fair Value Measurements | Note 14 – Fair Value Measurements | ||||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” topic of FASB ASC 825, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. | |||||||||||||||||||||||
The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. | |||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||
In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||||||||
Level 1 – | Valuation is based on quoted prices in active markets for identical assets and liabilities. | ||||||||||||||||||||||
Level 2 – | Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. | ||||||||||||||||||||||
Level 3 – | Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market | ||||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: | |||||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). | |||||||||||||||||||||||
The following tables present the balances measured at fair value on a recurring basis: | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | |||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. Government agencies | $ | 31,528 | $ | - | $ | 31,528 | $ | - | |||||||||||||||
Corporate bonds | 21,276 | - | 21,276 | - | |||||||||||||||||||
Asset-backed securities | 2,105 | - | 2,105 | - | |||||||||||||||||||
Mortgage-backed securities/CMOs | 63,220 | - | 63,220 | - | |||||||||||||||||||
Municipal bonds | 23,687 | - | 23,687 | - | |||||||||||||||||||
Total securities available for sale | $ | 141,816 | $ | - | $ | 141,816 | $ | - | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. Government agencies | $ | 44,005 | $ | - | $ | 44,005 | $ | - | |||||||||||||||
Corporate bonds | 9,053 | - | 9,053 | - | |||||||||||||||||||
Asset-backed securities | 2,100 | - | 2,100 | - | |||||||||||||||||||
Mortgage-backed securities/CMOs | 55,597 | - | 55,597 | - | |||||||||||||||||||
Municipal bonds | 22,272 | - | 22,272 | - | |||||||||||||||||||
Total securities available for sale | $ | 133,027 | $ | - | $ | 133,027 | $ | - | |||||||||||||||
Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. | |||||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: | |||||||||||||||||||||||
Other real estate owned | |||||||||||||||||||||||
Other real estate owned is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Consolidated Statements of Income. | |||||||||||||||||||||||
Impaired loans | |||||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. | |||||||||||||||||||||||
The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business' financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). | |||||||||||||||||||||||
Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses in the Consolidated Statements of Income. The Company had $1.697 million and $1.736 million in impaired loans as of December 31, 2014 and December 31, 2013, respectively. None of these impaired loans required a valuation allowance after consideration was given for each borrowing as to the fair value of the collateral on the loan or the present value of expected future cash flows from the customer. | |||||||||||||||||||||||
The following tables present the Company's assets that were measured at fair value on a nonrecurring basis: | |||||||||||||||||||||||
Fair Value Measurements at December 31, 2014 Using: | |||||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 1,177 | $ | - | $ | - | $ | 1,177 | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 2,372 | $ | - | $ | - | $ | 2,372 | |||||||||||||||
For the assets measured at fair value on a nonrecurring basis as of December 31, 2014, the following table displays quantitative information about Level 3 Fair Value Measurements: | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Description | Fair Value | Valuation Technique | Unobservable Inputs | Average | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 1,177 | Market comparables | Discount applied to market comparables * | 6.00% | ||||||||||||||||||
* | A discount percentage is applied based on age of independent appraisals, current market conditions, and cost to sell. | ||||||||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value disclosures for financial instruments: | |||||||||||||||||||||||
Cash and short-term investments | |||||||||||||||||||||||
For those short-term instruments, including cash, due from banks and federal funds sold, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||||
Interest bearing deposits | |||||||||||||||||||||||
The carrying amounts of interest bearing deposits maturing within ninety days approximate their fair value. | |||||||||||||||||||||||
Securities | |||||||||||||||||||||||
Fair values for securities, excluding restricted securities, are based on third party vendor pricing models. The carrying value of restricted FRB and FHLB stock approximates fair value based on the redemption provisions of each entity and is therefore excluded from the following table. | |||||||||||||||||||||||
Loans | |||||||||||||||||||||||
The fair value of performing loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar remaining maturities. This calculation ignores loan fees and certain factors affecting the interest rates charged on various loans such as the borrower's creditworthiness and compensating balances and dissimilar types of real estate held as collateral. The fair value of impaired loans is measured as described within the Impaired Loans section of this note. | |||||||||||||||||||||||
Bank owned life insurance | |||||||||||||||||||||||
The carrying amounts of Bank owned life insurance approximate fair value. | |||||||||||||||||||||||
Accrued interest | |||||||||||||||||||||||
The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||||||||
Deposit liabilities | |||||||||||||||||||||||
The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||||
Short-term borrowings | |||||||||||||||||||||||
The carrying amounts of securities sold under agreements to repurchase approximate fair value. | |||||||||||||||||||||||
Off-balance sheet financial instruments | |||||||||||||||||||||||
The fair values of loan commitments and standby letters of credit are immaterial. Therefore, they have not been included in the following table. | |||||||||||||||||||||||
The carrying values and estimated fair values of the Company's financial instruments are as follows: | |||||||||||||||||||||||
Fair Value Measurement at December 31, 2014 using: | |||||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalent | $ | 54,107 | $ | 54,107 | $ | - | $ | - | $ | 54,107 | |||||||||||||
Securities | 141,816 | - | 141,816 | - | 141,816 | ||||||||||||||||||
Loans, net | 310,090 | - | - | 310,806 | 310,806 | ||||||||||||||||||
Bank owned life insurance | 13,034 | - | 13,034 | - | 13,034 | ||||||||||||||||||
Accrued interest receivable | 1,296 | - | 566 | 730 | 1,296 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Demand deposits and | |||||||||||||||||||||||
interest-bearing transaction | |||||||||||||||||||||||
and money market accounts | $ | 339,625 | $ | - | $ | 339,625 | $ | - | $ | 339,625 | |||||||||||||
Certificates of deposit | 117,094 | - | 117,189 | - | 117,189 | ||||||||||||||||||
Securities sold under | |||||||||||||||||||||||
agreements to repurchase | 17,995 | - | 17,995 | - | 17,995 | ||||||||||||||||||
Accrued interest payable | 117 | - | 117 | - | 117 | ||||||||||||||||||
Fair Value Measurement at December 31, 2013 using: | |||||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalent | $ | 40,072 | $ | 40,072 | $ | - | $ | - | $ | 40,072 | |||||||||||||
Securities | 133,027 | - | 133,027 | - | 133,027 | ||||||||||||||||||
Loans, net | 296,674 | - | - | 297,765 | 297,765 | ||||||||||||||||||
Bank owned life insurance | 12,595 | - | 12,595 | - | 12,595 | ||||||||||||||||||
Accrued interest receivable | 1,247 | - | 566 | 681 | 1,247 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Demand deposits and | |||||||||||||||||||||||
interest-bearing transaction | |||||||||||||||||||||||
and money market accounts | $ | 306,298 | $ | - | $ | 306,298 | $ | - | $ | 306,298 | |||||||||||||
Certificates of deposit | 124,162 | - | 124,391 | - | 124,391 | ||||||||||||||||||
Securities sold under | |||||||||||||||||||||||
agreements to repurchase | 16,297 | - | 16,297 | - | 16,297 | ||||||||||||||||||
Accrued interest payable | 125 | - | 125 | - | 125 | ||||||||||||||||||
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company's financial instruments will change when interest rate levels change, and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk; however, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company's overall interest rate risk. | |||||||||||||||||||||||
Other_Expenses
Other Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Expenses [Abstract] | |||||||||
Other Expenses | Note 15 – Other Expenses | ||||||||
The Company had the following other expenses as of the dates indicated: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
ATM, debit and credit card | $ | 349 | $ | 297 | |||||
Bank franchise tax | 328 | 253 | |||||||
Computer software | 330 | 319 | |||||||
Data processing | 1,025 | 949 | |||||||
FDIC deposit insurance assessment | 268 | 248 | |||||||
Marketing, advertising and promotion | 774 | 721 | |||||||
Net OREO write downs and expenses | 345 | 285 | |||||||
Professional fees | 696 | 744 | |||||||
Other | 1,486 | 1,683 | |||||||
$ | 5,601 | $ | 5,499 | ||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 16 – Employee Benefit Plans |
The Company has a 401(k) plan available to all employees who are at least 18 years of age. Employees are able to elect the amount to contribute, not to exceed a maximum amount as determined by Internal Revenue Service regulation. Effective January 1, 2013, the Bank matched 100% of the first 3% of employee contributions and 50% for the next 2% of employee contributions. Effective January 1, 2014, the company matched 100% of the first 6% of employee contributions. | |
“Vesting” refers to the rights of ownership to the assets in the 401(k) accounts. Effective January 1, 2013, matching contributions were fully vested immediately. Employee contributions to the plan have always been 100% vested. | |
The Company contributed $327 thousand to the plan in 2014 and $277 thousand in 2013. | |
Stock_Incentive_Plans
Stock Incentive Plans | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Stock Incentive Plans [Abstract] | |||||||||||||||
Stock Incentive Plans | Note 17 – Stock Incentive Plans | ||||||||||||||
At the Annual Shareholders Meeting on May 21, 2014, shareholders approved the Virginia National Bankshares Corporation 2014 Stock Incentive Plan (“2014 Plan”). The 2014 Plan makes available up to 250,000 shares of the Company's common stock to be issued to plan participants. Similar to the Virginia National Bank 1998 Stock Incentive Plan (“1998 Plan”), 2003 Stock Incentive Plan (“2003 Plan”), and 2005 Stock Incentive Plan (“2005 Plan”), the 2014 Plan provides for granting of both incentive and nonqualified stock options, as well as restricted stock and other stock based awards. The 2005 Plan expired on December 20, 2014. No new grants will be issued under the 1998 Plan, the 2003 Plan, or the 2005 Plan as all three plans have expired. | |||||||||||||||
For all Plans, the option price of incentive options will not be less than the fair market value of the stock at the time an option is granted. Nonqualified options may be granted at a price established by the Board of Directors, including prices less than the fair market value on the date of grant. Outstanding options generally expire in ten years from the grant date. Stock options generally vest by the fourth or fifth anniversary of the date of the grant. | |||||||||||||||
A summary of the shares issued and available under each of the Company's stock incentive plans (the “Plans”) is shown below as of December 31, 2014. Although the 2003 Plan and 2005 Plan have expired and no new grants will be issued under these plans, there were shares issued before the plans expired which are still outstanding as shown below. | |||||||||||||||
1998 Plan | 2003 Plan | 2005 Plan | 2014 Plan | ||||||||||||
Aggregate shares issuable | 430,100 | 128,369 | 230,000 | 250,000 | |||||||||||
Options issued, net of forfeited and | |||||||||||||||
expired options | -381,089 | -110,278 | 149,751) | - | |||||||||||
Cancelled due to Plan expiration | -49,011 | -18,091 | -80,249 | - | |||||||||||
Remaining available for grant | - | - | - | 250,000 | |||||||||||
Grants issued and outstanding: | |||||||||||||||
Total vested and unvested shares | - | 32,438 | 148,358 | - | |||||||||||
Fully vested shares | - | 32,438 | 138,025 | - | |||||||||||
Exercise price range | N/A | $15.65 to | $11.74 to | N/A | |||||||||||
$18.26 | $36.74 | ||||||||||||||
The Company accounts for all of its stock incentive plans under recognition and measurement accounting principles which require that the compensation cost relating to stock-based payment transactions be recognized in financial statements. Stock-based compensation arrangements include stock options and restricted stock. All stock-based payments to employees are required to be valued using a fair value method on the date of grant and expensed based on that fair value over the applicable vesting period. For the years ended December 31, 2014 and December 31, 2013, the Company recognized $52 thousand and $106 thousand, respectively, in compensation expense for stock options and restricted stock grants. As of December 31, 2014, there was $65 thousand in unamortized compensation expense remaining to be recognized in future reporting periods through 2017. | |||||||||||||||
Stock Options | |||||||||||||||
Changes in the stock options outstanding related to the Plans are summarized as follows: | |||||||||||||||
31-Dec-14 | |||||||||||||||
Weighted Average | Aggregate | ||||||||||||||
Number of Options | Exercise Price | Intrinsic Value | |||||||||||||
Outstanding at January 1, 2014 | 226,424 | $ | 26.35 | $ | 44 | ||||||||||
Granted | 5,000 | 18.1 | |||||||||||||
Exercised | -9,516 | 19.9 | |||||||||||||
Expired | -10,350 | 22.27 | |||||||||||||
Forfeited | -30,762 | 31.3 | |||||||||||||
Outstanding at December 31, 2014 | 180,796 | $ | 25.86 | $ | 271 | ||||||||||
Options exercisable at December 31, 2014 | 170,463 | $ | 26.41 | $ | 209 | ||||||||||
The total intrinsic value of options exercised during the year ended December 31, 2014 was $18 thousand. | |||||||||||||||
The fair value of any grant is estimated at the grant date using the Black-Scholes pricing model. During both the first quarter of 2014 and 2013, there were stock option grants of 5,000 shares each. No other stock option grant has been issued during the years ended December 31, 2014 and 2013. The fair value on the grant issued in 2014 was estimated based on the assumptions noted in the following table: | |||||||||||||||
For the year ended | |||||||||||||||
31-Dec-14 | |||||||||||||||
Expected volatility1 | 29.20 | % | |||||||||||||
Expected dividends2 | 1.1 | % | |||||||||||||
Expected term (in years)3 | 6.25 | ||||||||||||||
Risk-free rate4 | 2.15 | % | |||||||||||||
1 | Based on the monthly historical volatility of the Company's stock price over the expected life of the options. | ||||||||||||||
2 | Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | ||||||||||||||
3 | Based on the average of the contractual life and vesting period for the respective option. | ||||||||||||||
4 | Based upon an interpolated US Treasury yield curve interest rate that corresponds to the contractual life of the option, in effect at the time of the grant. | ||||||||||||||
Summary information pertaining to options outstanding at December 31, 2014 is as follows: | |||||||||||||||
Weighted-Average | Weighted | Weighted- | |||||||||||||
Remaining | Average Exercise | Average Exercise | |||||||||||||
Exercise Price | Options Outstanding | Contractual Life | Price | Options Exercisable | Price | ||||||||||
$11.74 to 20.00 | 49,238 | 5.5 Years | $ | 17.25 | 38,905 | $ | 17.4 | ||||||||
$20.01 to 30.00 | 63,018 | 3.2 Years | 24.73 | 63,018 | 24.73 | ||||||||||
$30.01 to 36.74 | 68,540 | 1.4 Years | 33.08 | 68,540 | 33.08 | ||||||||||
Total | 180,796 | 3.2 Years | $ | 25.86 | 170,463 | $ | 26.41 | ||||||||
Restricted Stock | |||||||||||||||
The 288 shares of restricted stock that were outstanding as of December 31, 2013 fully vested in November 2014. Changes in the restricted stock activity as of December 31, 2014 are summarized as follows: | |||||||||||||||
Number of | Grant Date | ||||||||||||||
Shares | Fair Value | ||||||||||||||
Outstanding at January 1, 2014 | 288 | $ | 12.18 | ||||||||||||
Issued | - | - | |||||||||||||
Vested | -288 | 12.18 | |||||||||||||
Non-vested at December 31, 2014 | - | $ | - | ||||||||||||
No restricted stock grants were awarded during 2014 or 2013. | |||||||||||||||
Earnings_per_Share
Earnings per Share | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Earnings per Share [Abstract] | |||||||||||||||||||||||
Earnings per Share | Note 18 – Earnings per Share | ||||||||||||||||||||||
The following shows the weighted average number of shares used in computing earnings per share and the effect on weighted average number of shares of diluted potential common stock. Potential dilutive common stock has no effect on income available to common shareholders. | |||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||
Average | Share | Average | Share | ||||||||||||||||||||
Net Income | Shares | Amount | Net Income | Shares | Amount | ||||||||||||||||||
Basic earnings per share | $ | 1,898 | 2,695,426 | $ | 0.7 | $ | 6,896 | 2,690,237 | $ | 2.56 | |||||||||||||
Effect of dilutive stock options | 11,533 | - | 255 | - | |||||||||||||||||||
Diluted earnings per share | $ | 1,898 | 2,706,959 | $ | 0.7 | $ | 6,896 | 2,690,492 | $ | 2.56 | |||||||||||||
In 2014, stock options representing 130,677 average shares were not included in the calculation of earnings per share, as their effect would have been antidilutive. Stock options representing 225,062 average shares were similarly not included in 2013. | |||||||||||||||||||||||
Other_Comprehensive_Income
Other Comprehensive Income | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Comprehensive Income [Abstract] | |||||||||||
Other Comprehensive Income | Note 19 – Other Comprehensive Income | ||||||||||
A component of the Company's comprehensive income, in addition to net income from operations, is the recognition of the unrealized gains and losses on AFS securities, net of income taxes. Reclassifications of unrealized gains and losses on AFS securities are reported in the income statement as “Gain on sale of securities” with the corresponding income tax effect reflected as a component of income tax expense. Amounts reclassified out of accumulated other comprehensive income (loss) are presented below: | |||||||||||
December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||
Available-for-sale securities | |||||||||||
Realized gains on sale of securities | $ | 24 | $ | 50 | |||||||
Tax effect | -8 | -17 | |||||||||
Realized gains, net of tax | $ | 16 | $ | 33 | |||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segment Reporting | Note 20 – Segment Reporting | ||||||||||||||||||||||||
Virginia National Bankshares Corporation has two reportable segments, the Bank and VNB Wealth. | |||||||||||||||||||||||||
Commercial banking involves making loans and generating deposits from individuals and businesses. Loan fee income, service charges from deposit accounts, and other non-interest-related fees such as fees for debit cards and ATM usage and fees for treasury management services generate additional income for this segment. | |||||||||||||||||||||||||
VNB Wealth services include investment management, trust and estate administration, custody services, and financial planning. Fees for these services are charged on a fixed basis and a performance basis. A management fee for administrative and technology support services provided by the Bank is charged to VNB Wealth. For the years ended December 31, 2014 and December 31, 2013, management fees of $250 thousand were charged to VNB Wealth and eliminated in consolidated totals. The VNB Wealth total assets as shown in the following tables represent the assets of VNB Wealth and should not be confused with client assets under management. | |||||||||||||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. | |||||||||||||||||||||||||
Segment information as of, and for the years ended, December 31, 2014 and 2013, is shown in the following tables: | |||||||||||||||||||||||||
2014 | Bank | VNB Wealth | Consolidated | ||||||||||||||||||||||
Net interest income | $ | 14,422 | $ | 32 | $ | 14,454 | |||||||||||||||||||
Provision for loan losses | 306 | - | 306 | ||||||||||||||||||||||
Non-interest income | 2,614 | 2,983 | 5,597 | ||||||||||||||||||||||
Non-interest expense | 14,576 | 2,815 | 17,391 | ||||||||||||||||||||||
Income before income taxes | 2,154 | 200 | 2,354 | ||||||||||||||||||||||
Provision for income taxes | 383 | 73 | 456 | ||||||||||||||||||||||
Net income | $ | 1,771 | $ | 127 | $ | 1,898 | |||||||||||||||||||
Total assets | $ | 526,458 | $ | 10,595 | $ | 537,053 | |||||||||||||||||||
2013 | Bank | VNB Wealth | Consolidated | ||||||||||||||||||||||
Net interest income | $ | 14,421 | $ | 28 | $ | 14,449 | |||||||||||||||||||
Provision for loan losses | 160 | - | 160 | ||||||||||||||||||||||
Non-interest income | 2,571 | 15,283 | 17,854 | ||||||||||||||||||||||
Non-interest expense | 14,072 | 7,963 | 22,035 | ||||||||||||||||||||||
Income before income taxes | 2,760 | 7,348 | 10,108 | ||||||||||||||||||||||
Provision for income taxes | 711 | 2,501 | 3,212 | ||||||||||||||||||||||
Net income | $ | 2,049 | $ | 4,847 | $ | 6,896 | |||||||||||||||||||
Total assets | $ | 490,564 | $ | 22,430 | $ | 512,994 | |||||||||||||||||||
Condensed_Parent_Company_Finan
Condensed Parent Company Financial Statements | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Condensed Parent Company Financial Statements [Abstract] | |||||||
Condensed Parent Company Financial Statements | Note 21 - Condensed Parent Company Financial Statements | ||||||
Condensed financial statements pertaining only to the Parent Company are presented below. The investment in subsidiary is accounted for using the equity method of accounting. | |||||||
The Bank paid the Parent Company a cash dividend of $8.5 million on December 18, 2013, after the Reorganization became effective, in order to capitalize the bank holding company. A quarterly cash dividend payment of $135 thousand was authorized by the Bank's Board of Directors and paid to the Parent Company on December 17, 2013. Each quarter in 2014 a cash dividend was paid by the Bank to the Parent Company for a total of $788 thousand. | |||||||
The payment of dividends by the subsidiary is restricted by various regulatory limitations. Banking regulations also prohibit extensions of credit to the parent company unless appropriately secured by assets. For more detail on dividends, see Note 13 – Dividend Restrictions. | |||||||
BALANCE SHEETS | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 7,713 | $ | 8,436 | |||
Investment securities | 64 | - | |||||
Investments in subsidiary | 52,549 | 49,717 | |||||
Other assets | 541 | 45 | |||||
Total assets | $ | 60,867 | $ | 58,198 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
Other liabilities | $ | 235 | $ | 167 | |||
Stockholders' equity | 60,632 | 58,031 | |||||
Total liabilities and stockholders' equity | $ | 60,867 | $ | 58,198 | |||
STATEMENTS OF INCOME | |||||||
For the years ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Dividends from subsidiary | $ | 788 | $ | 8,635 | |||
Noninterest expense | 449 | 187 | |||||
Income before income taxes | $ | 339 | $ | 8,448 | |||
Income tax (benefit) | -202 | - | |||||
Income before equity in undistributed | |||||||
earnings of subsidiary | $ | 541 | $ | 8,448 | |||
Equity (deficit) in undistributed earnings | |||||||
of subsidiary | 1,357 | -1,552 | |||||
Net income | $ | 1,898 | $ | 6,896 | |||
STATEMENTS OF CASH FLOWS | |||||||
For the years ended | |||||||
December 31, 2014 | 31-Dec-13 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 1,898 | $ | 6,896 | |||
Adjustments to reconcile net income to | |||||||
net cash provided by operating activities: | |||||||
Equity (deficit) in undistributed earnings | |||||||
of subsidiary | -1,357 | 1,552 | |||||
Deferred tax benefit | -375 | - | |||||
Stock option & stock grant expense | 52 | - | |||||
Increase in other assets | -122 | -45 | |||||
Increase in other liabilities | 69 | 167 | |||||
Net cash provided from operating activities | 165 | 8,570 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of restricted securities | -64 | - | |||||
Net cash used in investing activities | -64 | - | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Stock options exercised | 180 | - | |||||
Stock purchased under stock repurchase plan | -262 | - | |||||
Dividends paid | -742 | -134 | |||||
Net cash used in financing activities | -824 | -134 | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -723 | 8,436 | |||||
CASH AND CASH EQUIVALENTS | |||||||
Beginning of period | 8,436 | - | |||||
End of period | $ | 7,713 | $ | 8,436 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation – The consolidated financial statements include the accounts of the Company, the Bank, and VNBTrust. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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, deferred tax assets, valuation of other real estate owned, and fair value measurements. |
Cash flow reporting | Cash flow reporting – For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash on hand, funds due from banks, and federal funds sold. |
Securities sold under agreements to repurchase | Securities sold under agreements to repurchase – The Company sells certain securities under agreements to repurchase. The agreements are treated as collateralized financing transactions and the obligations to repurchase securities sold are reflected as a liability in the accompanying consolidated balance sheets. The dollar amount of the securities underlying the agreements remains in the asset accounts. |
Securities | Securities – Unrestricted investments are to be classified in two categories as described below. |
Securities held to maturity – Securities classified as held to maturity are those debt and equity securities the Company has both the positive intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. During the third quarter of 2013, the Company reclassified held to maturity securities as available for sale. Management determined that it no longer had the positive intent to hold the securities classified as held to maturity for an indefinite period of time because of Management's desire to have more flexibility in managing the investment portfolio. | |
Securities available for sale – Securities classified as available for sale are those debt and equity securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements in interest rates, changes in the maturity mix of the Company's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Securities available for sale are carried at fair value. Unrealized gains or losses are reported as a separate component of other comprehensive income. Realized gains or losses, determined on the basis of the cost of specific securities sold, are included in earnings. | |
Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities or to “call” dates, whichever occurs first. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (1) the Company intends to sell the security or (2) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that the Company will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. | |
Restricted securities | Restricted securities – As members of the Federal Reserve Bank of Richmond (“FRB”) and the Federal Home Loan Bank of Atlanta (“FHLB”), the Company is required to maintain certain minimum investments in the common stock of the FRB and FHLB. Required levels of investments are based upon the Bank's capital and a percentage of qualifying assets. Additionally, the Company has purchased common stock in CBB Financial Corp. (“CBBFC”), the holding company for Community Bankers Bank. Common Stock from the FRB, FHLB, and CBB are classified as restricted securities which are carried at cost |
Loans | Loans – Loans are reported at the principal balance outstanding net of unearned discounts and of the allowance for loan losses. Interest income on loans is reported on the level-yield method and includes amortization of deferred loan fees and costs over the loan term. Further information regarding the Company's accounting policies related to past due loans, non-accrual loans, impaired loans and troubled-debt restructurings is presented in Note 3 - Loans. |
Allowance for loan losses | Allowance for loan losses – The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management's best estimate of probable losses that have been incurred within the existing loan portfolio. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses inherent in the loan portfolio. The allowance for loan losses includes allowance allocations calculated in accordance with Financial Accounting Standards Board (“FASB”) ASC Topic 310, “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.” Further information regarding the Company's policies and methodology used to estimate the allowance for loan losses is presented in Note 4 – Allowance for Loan Losses. |
Transfers of financial assets | Transfers of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company or its subsidiaries – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company or its subsidiaries does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Premises and equipment | Premises and equipment – Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method based on the estimated useful lives of assets, which range from 3 to 20 years. Expenditures for repairs and maintenance are charged to expense as incurred. The costs of major renewals and betterments are capitalized and depreciated over their estimated useful lives. Upon disposition, the asset and related accumulated depreciation are removed from the books and any resulting gain or loss is charged to income. More information regarding premises and equipment is presented in Note 6 – Premises and Equipment. |
Other real estate owned | Other real estate owned – Assets acquired through, or in lieu of, loan foreclosures are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses for foreclosed assets. More information regarding other real estate owned is presented in Note 5 – Other Real Estate Owned. |
Bank owned life insurance | Bank owned life insurance – The Company has purchased life insurance on certain key employees. These policies are recorded at their cash surrender value on the Consolidated Balance Sheets. Income generated from polices is recorded as noninterest income. |
Fair value measurements | Fair value measurements – ASC Topic 820, “Fair Value Measurements and Disclosures,” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and requires certain disclosures about fair value measurements. In general, fair values of financial instruments are based upon internally developed models that primarily use, as inputs, observable market-based parameters. Any such valuation adjustments are applied consistently over time. Additional information on fair value measurements is presented in Note 14 – Fair Value Measurements. |
Stock-based compensation | Stock-based compensation – The Company accounts for all plans under recognition and measurement accounting principles which require that the compensation cost relating to stock-based payment transactions be recognized in the financial statements. Stock-based compensation arrangements include stock options and restricted stock. Stock-based compensation is estimated at the date of grant, using the Black-Scholes option valuation model for determining fair value. The model employs the following assumptions: |
Dividend yield - calculated as the ratio of historical cash dividends paid per share of common stock to the stock price on the date of grant; | |
Expected life (term of the option) - based on the average of the contractual life and vesting schedule for the respective option; | |
Expected volatility - based on the monthly historical volatility of the Company's stock price over the expected life of the options; | |
Risk-free interest rate - based upon the U.S. Treasury bill yield curve, for periods within the contractual life of the option, in effect at the time of grant. | |
The Company is required to estimate forfeitures when recognizing compensation expense and that this estimate of forfeitures be adjusted over the requisite service period or vesting schedule based on the extent to which actual forfeitures differ from such estimates. Changes in estimated forfeitures are recognized through a cumulative catch-up adjustment, which is recognized in the period of change, and also will impact the amount of estimated unamortized compensation expense to be recognized in future periods. Further information on stock-based compensation is presented in Note 17 – Stock Incentive Plans. | |
Earnings per common share | Earnings per common share – Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. Additional information on earnings per share is presented in Note 18 – Earnings per Share. |
Comprehensive income | Comprehensive income – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Further information on the Company's other comprehensive income is presented in Note 19 – Other Comprehensive Income. |
Advertising costs | Advertising costs – The Company follows the policy of charging the costs of advertising to expense as they are incurred. |
Income taxes | Income taxes – Deferred taxes are provided on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, operating loss carry forwards, and tax credit carry forwards. Deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. |
When tax returns are filed, it is highly probable that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |
Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of income. Further information on the Company's accounting policies for income taxes is presented in Note 8 – Income Taxes. | |
VNBTrust | VNBTrust – Securities and other property held by VNBTrust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Reclassifications | Reclassifications – Certain reclassifications have been made to prior periods to conform to current year presentation. The results of the reclassifications are not considered material. |
In 2014, the Company elected to change its method for recording audit fees. Prior to 2014, the Bank accrued, in the current year, costs related to audit engagements for the current year, even if the remaining audit work was performed the following year. Management decided to change to an equally acceptable methodology that calls for recording audit expenses in the year the services are performed. The retrospective application of this change in methodology is reflected in the consolidated financial statements. The change in accounting method required a $75 thousand increase to retained earnings as of January 1, 2013. The offsetting decrease to other liabilities for the years ended December 31, 2013 and December 31, 2014 consisted of a decrease of approximately $113 thousand in reserve for accrued and unpaid expenses, netted against an increase in income tax payable of $38 thousand. The new method is preferable to the old method as audit fee expense would be recognized in the period in which the expense was incurred. | |
Adoption of New Accounting Standards and Newly issued not yet effective standards | Adoption of New Accounting Standards |
Recent accounting pronouncements | |
In January 2014, the FASB issued ASU 2014-04, “Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Management does not expect the adoption of ASU 2014-04 to have a material impact on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. The Company is currently assessing the impact that ASU 2014-11 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. The amendments in this ASU apply to creditors that hold government-guaranteed mortgage loans and are intended to eliminate the diversity in practice related to the classification of these guaranteed loans upon foreclosure. The new guidance stipulates that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if (1) the loan has a government guarantee that is not separable from the loan prior to foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the other receivable should be measured on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. Entities may adopt the amendments on a prospective basis or modified retrospective basis as of the beginning of the annual period of adoption; however, the entity must apply the same method of transition as elected under ASU 2014-04. Early adoption is permitted provided the entity has already adopted ASU 2014-04. The Company is currently assessing the impact that ASU 2014-14 will have on its consolidated financial statements. | |
Newly issued not yet effective standards | |
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606.” This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” This update is intended to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. |
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Securities [Abstract] | ||||||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Values of Securities Available For Sale | 31-Dec-14 | Amortized | Gross Unrealized | Gross Unrealized | Fair | |||||||||||||||||||||||
Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
U.S. Government agencies | $ | 31,189 | $ | 395 | $ | -56 | $ | 31,528 | ||||||||||||||||||||
Corporate bonds | 21,373 | 21 | -118 | 21,276 | ||||||||||||||||||||||||
Asset-backed securities | 2,133 | - | -28 | 2,105 | ||||||||||||||||||||||||
Mortgage-backed securities/CMOs | 63,327 | 297 | -404 | 63,220 | ||||||||||||||||||||||||
Municipal bonds | 23,727 | 157 | -197 | 23,687 | ||||||||||||||||||||||||
$ | 141,749 | $ | 870 | $ | -803 | $ | 141,816 | |||||||||||||||||||||
31-Dec-13 | Amortized | Gross Unrealized | Gross Unrealized | Fair | ||||||||||||||||||||||||
Cost | Gains | (Losses) | Value | |||||||||||||||||||||||||
U.S. Government agencies | $ | 43,268 | $ | 828 | $ | -91 | $ | 44,005 | ||||||||||||||||||||
Corporate bonds | 9,066 | 37 | -50 | 9,053 | ||||||||||||||||||||||||
Asset-backed securities | 2,151 | - | -51 | 2,100 | ||||||||||||||||||||||||
Mortgage-backed securities/CMOs | 56,815 | 34 | -1,252 | 55,597 | ||||||||||||||||||||||||
Municipal bonds | 23,896 | 5 | -1,629 | 22,272 | ||||||||||||||||||||||||
$ | 135,196 | $ | 904 | $ | -3,073 | $ | 133,027 | |||||||||||||||||||||
Schedule of Unrealized Losses in the Bank's Securities Portfolio | 2014 | |||||||||||||||||||||||||||
Less than 12 Months | 12 Months or more | Total | ||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||||||
Fair | Fair | Fair | ||||||||||||||||||||||||||
Value | (Losses) | Value | (Losses) | Value | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 6,375 | $ | -21 | $ | 966 | $ | -35 | $ | 7,341 | $ | -56 | ||||||||||||||||
Corporate bonds | 13,213 | -102 | 3,032 | -16 | 16,245 | -118 | ||||||||||||||||||||||
Asset-backed securities | 98 | - | 2,007 | -28 | 2,105 | -28 | ||||||||||||||||||||||
Mortgage-backed/CMOs | 6,276 | -35 | 25,081 | -369 | 31,357 | -404 | ||||||||||||||||||||||
Municipal bonds | 1,769 | -19 | 10,330 | -178 | 12,099 | -197 | ||||||||||||||||||||||
$ | 27,731 | $ | -177 | $ | 41,416 | $ | -626 | $ | 69,147 | $ | -803 | |||||||||||||||||
2013 | ||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | |||||||||||||||||||||||
Fair | Fair | Fair | ||||||||||||||||||||||||||
Value | (Losses) | Value | (Losses) | Value | (Losses) | |||||||||||||||||||||||
U.S. Government agencies | $ | 2,889 | $ | -39 | $ | 948 | $ | -52 | $ | 3,837 | $ | -91 | ||||||||||||||||
Corporate bonds | 5,016 | -50 | - | - | 5,016 | -50 | ||||||||||||||||||||||
Asset-backed securities | 960 | -36 | 1,140 | -15 | 2,100 | -51 | ||||||||||||||||||||||
Mortgage-backed/CMOs | 39,061 | -1,079 | 8,609 | -173 | 47,670 | -1,252 | ||||||||||||||||||||||
Municipal bonds | 18,433 | -1,451 | 2,280 | -178 | 20,713 | -1,629 | ||||||||||||||||||||||
$ | 66,359 | $ | -2,655 | $ | 12,977 | $ | -418 | $ | 79,336 | $ | -3,073 | |||||||||||||||||
Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories | Amortized Cost | Fair Value | ||||||||||||||||||||||||||
U.S. Government agencies | ||||||||||||||||||||||||||||
One year or less | $ | 13,090 | $ | 13,218 | ||||||||||||||||||||||||
After one year to five years | 8,941 | 9,089 | ||||||||||||||||||||||||||
After five years to ten years | 8,172 | 8,220 | ||||||||||||||||||||||||||
After ten years | 986 | 1,001 | ||||||||||||||||||||||||||
$ | 31,189 | $ | 31,528 | |||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||
After one year to five years | $ | 9,077 | $ | 9,049 | ||||||||||||||||||||||||
After five years to ten years | 12,296 | 12,227 | ||||||||||||||||||||||||||
$ | 21,373 | $ | 21,276 | |||||||||||||||||||||||||
Asset-backed securities | ||||||||||||||||||||||||||||
After five years to ten years | $ | 975 | $ | 952 | ||||||||||||||||||||||||
Ten years or more | 1,158 | 1,153 | ||||||||||||||||||||||||||
$ | 2,133 | $ | 2,105 | |||||||||||||||||||||||||
Mortgage-backed securities/CMOs | ||||||||||||||||||||||||||||
After five years to ten years | $ | 18,933 | $ | 18,985 | ||||||||||||||||||||||||
Ten years or more | 44,394 | 44,235 | ||||||||||||||||||||||||||
$ | 63,327 | $ | 63,220 | |||||||||||||||||||||||||
Municipal bonds | ||||||||||||||||||||||||||||
After one year to five years | $ | 1,700 | $ | 1,704 | ||||||||||||||||||||||||
After five years to ten years | 9,852 | 9,882 | ||||||||||||||||||||||||||
Ten years or more | 12,175 | 12,101 | ||||||||||||||||||||||||||
$ | 23,727 | $ | 23,687 | |||||||||||||||||||||||||
Total Securities Available for Sale | $ | 141,749 | $ | 141,816 |
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Composition of Loan Portfolio by Loan Classification | 31-Dec | ||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 46,125 | $ | 48,060 | |||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - syndicated | 14,815 | - | |||||||||||||||||||||||||||||||||||||||||||||
Total commercial and industrial | 60,940 | 48,060 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | 337 | 794 | |||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 11,575 | 17,667 | |||||||||||||||||||||||||||||||||||||||||||||
Total construction and land | 11,912 | 18,461 | |||||||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 60,162 | 54,300 | |||||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | 25,498 | 29,612 | |||||||||||||||||||||||||||||||||||||||||||||
Multifamily | 26,462 | 22,560 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | 60,868 | 58,802 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | 54,012 | 54,635 | |||||||||||||||||||||||||||||||||||||||||||||
Total real estate mortgage | 227,002 | 219,909 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | 3,428 | 2,254 | |||||||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 9,972 | 11,350 | |||||||||||||||||||||||||||||||||||||||||||||
Total consumer | 13,400 | 13,604 | |||||||||||||||||||||||||||||||||||||||||||||
Total loans | 313,254 | 300,034 | |||||||||||||||||||||||||||||||||||||||||||||
Less: Allowance for loan losses | -3,164 | -3,360 | |||||||||||||||||||||||||||||||||||||||||||||
Net loans | $ | 310,090 | $ | 296,674 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity in Related Party Loans | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding at beginning of year | $ | 6,526 | $ | 6,401 | |||||||||||||||||||||||||||||||||||||||||||
Principal additions | 8,043 | 4,574 | |||||||||||||||||||||||||||||||||||||||||||||
Principal reductions | (3,728 | ) | -4,449 | ||||||||||||||||||||||||||||||||||||||||||||
Balance outstanding at end of year | $ | 10,841 | $ | 6,526 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Impaired Loans Classified as Non-Accruals by Class | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 69 | $ | 77 | |||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 149 | 60 | |||||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | - | 230 | |||||||||||||||||||||||||||||||||||||||||||||
Total nonaccrual loans | $ | 218 | $ | 367 | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Aging of Past Due Loans | Past Due Aging as of | 90 Days | |||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | 30-59 | 60-89 | 90 Days or | Past Due | |||||||||||||||||||||||||||||||||||||||||||
Days Past | Days Past | More Past | Total Past | Total | and Still | ||||||||||||||||||||||||||||||||||||||||||
Due | Due | Due | Due | Current | Loans | Accruing | |||||||||||||||||||||||||||||||||||||||||
Commercial loans | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 6 | $ | - | $ | - | $ | 6 | $ | 46,119 | $ | 46,125 | $ | - | |||||||||||||||||||||||||||||||||
Commercial and industrial - syndicated | - | - | - | - | 14,815 | 14,815 | - | ||||||||||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | 337 | 337 | - | ||||||||||||||||||||||||||||||||||||||||
Other construction and land | - | - | - | - | 11,575 | 11,575 | - | ||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | - | 24 | - | 24 | 60,138 | 60,162 | - | ||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | - | - | - | - | 25,498 | 25,498 | - | ||||||||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 26,462 | 26,462 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | - | - | - | - | 60,868 | 60,868 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | - | - | - | - | 54,012 | 54,012 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | 1 | - | - | 1 | 3,427 | 3,428 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 12 | 30 | - | 42 | 9,930 | 9,972 | - | ||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 19 | $ | 54 | $ | - | $ | 73 | $ | 313,181 | $ | 313,254 | $ | - | |||||||||||||||||||||||||||||||||
Past Due Aging as of | 90 Days | ||||||||||||||||||||||||||||||||||||||||||||||
31-Dec-13 | 30-59 | 60-89 | 90 Days or | Past Due | |||||||||||||||||||||||||||||||||||||||||||
Days Past | Days Past | More Past | Total Past | Total | and Still | ||||||||||||||||||||||||||||||||||||||||||
Due | Due | Due | Due | Current | Loans | Accruing | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 123 | $ | 35 | $ | - | $ | 158 | $ | 47,902 | $ | 48,060 | $ | - | |||||||||||||||||||||||||||||||||
Real estate construction and land | |||||||||||||||||||||||||||||||||||||||||||||||
Residential construction | - | - | - | - | 794 | 794 | - | ||||||||||||||||||||||||||||||||||||||||
Other construction and land | 34 | - | 29 | 63 | 17,604 | 17,667 | 29 | ||||||||||||||||||||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential | 60 | 26 | 149 | 235 | 54,065 | 54,300 | 149 | ||||||||||||||||||||||||||||||||||||||||
Home equity lines of credit | - | - | - | - | 29,612 | 29,612 | - | ||||||||||||||||||||||||||||||||||||||||
Multifamily | - | - | - | - | 22,560 | 22,560 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied | - | - | - | - | 58,802 | 58,802 | - | ||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied | - | 139 | 91 | 230 | 54,405 | 54,635 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer loans | |||||||||||||||||||||||||||||||||||||||||||||||
Consumer revolving credit | - | - | - | - | 2,254 | 2,254 | - | ||||||||||||||||||||||||||||||||||||||||
Consumer all other credit | 93 | 30 | - | 123 | 11,227 | 11,350 | - | ||||||||||||||||||||||||||||||||||||||||
Total Loans | $ | 310 | $ | 230 | $ | 269 | $ | 809 | $ | 299,225 | $ | 300,034 | $ | 178 | |||||||||||||||||||||||||||||||||
Schedule of Loans Classified as Impaired Loans | 31-Dec-14 | Unpaid | Average | Interest | |||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Associated | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 69 | $ | 109 | $ | - | $ | 79 | $ | 1 | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 525 | 545 | - | 437 | 16 | ||||||||||||||||||||||||||||||||||||||||||
Home equity lines of credits | - | - | - | 50 | 3 | ||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1,103 | 1,103 | - | 1,124 | 60 | ||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | - | - | - | 46 | - | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 1,697 | $ | 1,757 | $ | - | $ | 1,736 | $ | 80 | |||||||||||||||||||||||||||||||||||||
31-Dec-13 | Unpaid | Average | Interest | ||||||||||||||||||||||||||||||||||||||||||||
Recorded | Principal | Associated | Recorded | Income | |||||||||||||||||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Recognized | |||||||||||||||||||||||||||||||||||||||||||
Impaired loans without a valuation allowance: | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | $ | 77 | $ | 110 | $ | - | $ | 81 | $ | - | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 285 | 380 | - | 293 | 11 | ||||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1,144 | 1,144 | - | 1,414 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Commercial non-owner occupied real estate | 230 | 274 | - | 202 | - | ||||||||||||||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total impaired loans | $ | 1,736 | $ | 1,908 | $ | - | $ | 1,990 | $ | 61 | |||||||||||||||||||||||||||||||||||||
Summary of Modified Loans | Troubled debt restructuring (TDRs) | 31-Dec-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||||||
No. of | Recorded | No. of | Recorded | ||||||||||||||||||||||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||||||||||||||||||||||
Performing TDRs | |||||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | 2 | $ | 376 | 1 | $ | 225 | |||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | 1 | 1,103 | 1 | 1,144 | |||||||||||||||||||||||||||||||||||||||||||
Total performing TDRs | 3 | $ | 1,479 | 2 | $ | 1,369 | |||||||||||||||||||||||||||||||||||||||||
Nonperforming TDRs | |||||||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 1 | $ | 39 | - | $ | - | |||||||||||||||||||||||||||||||||||||||||
Total TDRs | 4 | $ | 1,518 | 2 | $ | 1,369 | |||||||||||||||||||||||||||||||||||||||||
Schedule of Loans Modified Under Terms of a TDR | Loans modified at below market rates | During year ended | During year ended | ||||||||||||||||||||||||||||||||||||||||||||
31-Dec-14 | December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Pre- | Post- | Pre- | Post- | ||||||||||||||||||||||||||||||||||||||||||||
Number | Modification | Modification | Modification | Modification | |||||||||||||||||||||||||||||||||||||||||||
of | Recorded | Recorded | Number | Recorded | Recorded | ||||||||||||||||||||||||||||||||||||||||||
Loans | Balance | Balance | of Loans | Balance | Balance | ||||||||||||||||||||||||||||||||||||||||||
Other construction and land | 1 | $ | 40 | $ | 39 | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||||
1-4 family residential mortgage | 1 | 156 | 155 | - | - | - | |||||||||||||||||||||||||||||||||||||||||
Total loans modified during the period | 2 | $ | 196 | $ | 194 | - | $ | - | $ | - | |||||||||||||||||||||||||||||||||||||
Schedule of Troubled Debt Restructuring That Subsequently Defaulted | |||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
No. of | Recorded | No. of | Recorded | ||||||||||||||||||||||||||||||||||||||||||||
Loans | Investment | Loans | Investment | ||||||||||||||||||||||||||||||||||||||||||||
1-4 family residential mortgages | - | $ | - | 1 | $ | 65 | |||||||||||||||||||||||||||||||||||||||||
Commercial owner occupied real estate | - | - | 1 | 183 | |||||||||||||||||||||||||||||||||||||||||||
Total | - | $ | - | 2 | $ | 248 |
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||
Summary of Transactions in Allowance for Loan Losses | 2014 | 2013 | |||||||||||||||||||||||||||
Balance, beginning of period | $ | 3,360 | $ | 3,267 | |||||||||||||||||||||||||
Loans charged off | -551 | -161 | |||||||||||||||||||||||||||
Recoveries | 49 | 94 | |||||||||||||||||||||||||||
Net charge-offs | -502 | -67 | |||||||||||||||||||||||||||
Provision for loan losses | 306 | 160 | |||||||||||||||||||||||||||
Balance, December 31 | $ | 3,164 | $ | 3,360 | |||||||||||||||||||||||||
Internal Risk Rating Grades | Internal Risk Rating Grades | Special | Sub- | ||||||||||||||||||||||||||
31-Dec-14 | Excellent | Good | Pass | Mention | standard | Doubtful | TOTAL | ||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Commercial and industrial - organic | $ | 3,579 | $ | 23,261 | $ | 18,487 | $ | 64 | $ | 734 | $ | - | $ | 46,125 | |||||||||||||||
Commercial and industrial - syndicated | - | - | 14,815 | - | - | - | 14,815 | ||||||||||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||
Residential construction | - | - | 337 | - | - | - | 337 | ||||||||||||||||||||||
Other construction and land | - | - | 10,903 | 507 | 165 | - | 11,575 | ||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||
1-4 family residential | - | 1,910 | 56,968 | 455 | 829 | - | 60,162 | ||||||||||||||||||||||
Home equity lines of credit | - | - | 25,411 | - | 87 | - | 25,498 | ||||||||||||||||||||||
Multifamily | - | - | 26,462 | - | - | - | 26,462 | ||||||||||||||||||||||
Commercial owner occupied | - | - | 58,890 | - | 1,978 | - | 60,868 | ||||||||||||||||||||||
Commercial non-owner occupied | - | - | 54,012 | - | - | - | 54,012 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Consumer revolving credit | 34 | 3,054 | 332 | - | 8 | - | 3,428 | ||||||||||||||||||||||
Consumer all other credit | 200 | 7,856 | 1,867 | - | 49 | - | 9,972 | ||||||||||||||||||||||
Total Loans | $ | 3,813 | $ | 36,081 | $ | 268,484 | $ | 1,026 | $ | 3,850 | $ | - | $ | 313,254 | |||||||||||||||
Internal Risk Rating Grades | Special | Sub- | |||||||||||||||||||||||||||
31-Dec-13 | Excellent | Good | Pass | Mention | standard | Doubtful | TOTAL | ||||||||||||||||||||||
Commercial and industrial - organic | $ | 4,056 | $ | 19,464 | $ | 24,015 | $ | 5 | $ | 520 | $ | - | $ | 48,060 | |||||||||||||||
Real estate construction | |||||||||||||||||||||||||||||
Residential construction | - | - | 794 | - | - | - | 794 | ||||||||||||||||||||||
Other construction and land | - | - | 17,031 | 530 | 106 | - | 17,667 | ||||||||||||||||||||||
Real estate mortgages | |||||||||||||||||||||||||||||
1-4 family residential | - | 1,934 | 50,945 | 593 | 828 | - | 54,300 | ||||||||||||||||||||||
Home equity lines of credit | - | - | 29,367 | - | 245 | - | 29,612 | ||||||||||||||||||||||
Multifamily | - | - | 22,560 | - | - | - | 22,560 | ||||||||||||||||||||||
Commercial owner occupied | - | - | 56,668 | - | 2,134 | - | 58,802 | ||||||||||||||||||||||
Commercial non-owner occupied | - | - | 51,884 | 567 | 2,184 | - | 54,635 | ||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Consumer revolving credit | - | 1,926 | 319 | - | 9 | - | 2,254 | ||||||||||||||||||||||
Consumer all other credit | 371 | 8,772 | 2,153 | - | 54 | - | 11,350 | ||||||||||||||||||||||
Total Loans | $ | 4,427 | $ | 32,096 | $ | 255,736 | $ | 1,695 | $ | 6,080 | $ | - | $ | 300,034 | |||||||||||||||
Allowance for Loan Losses Rollforward by Portfolio Segment | Allowance for Loan Losses Rollforward by Portfolio Segment | ||||||||||||||||||||||||||||
For the year ended December 31, 2014 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Commercial | Construction and | Real Estate | Consumer | ||||||||||||||||||||||||||
Loans | Land | Mortgages | Loans | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 340 | $ | 198 | $ | 2,788 | $ | 34 | $ | 3,360 | |||||||||||||||||||
Charge-offs | (286 | ) | - | (262 | ) | (3 | ) | (551 | ) | ||||||||||||||||||||
Recoveries | 32 | - | 10 | 7 | 49 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 588 | (96 | ) | (176 | ) | (10 | ) | 306 | |||||||||||||||||||||
Ending Balance | $ | 674 | $ | 102 | $ | 2,360 | $ | 28 | $ | 3,164 | |||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Collectively evaluated for impairment | 674 | 102 | 2,360 | 28 | 3,164 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 69 | $ | 1,628 | $ | - | $ | 1,697 | |||||||||||||||||||
Collectively evaluated for impairment | 60,940 | 11,843 | 225,374 | 13,400 | 311,557 | ||||||||||||||||||||||||
Ending Balance: | $ | 60,940 | $ | 11,912 | $ | 227,002 | $ | 13,400 | $ | 313,254 | |||||||||||||||||||
Allowance for Loan Losses Rollforward by Portfolio Segment | |||||||||||||||||||||||||||||
For the year ended December 31, 2013 | |||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||
Commercial | Construction and | Real Estate | Consumer | ||||||||||||||||||||||||||
Loans | Land | Mortgages | Loans | Total | |||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||
Balance as of January 1, 2013 | $ | 303 | $ | 168 | $ | 2,750 | $ | 46 | $ | 3,267 | |||||||||||||||||||
Charge-offs | (22 | ) | - | (139 | ) | - | (161 | ) | |||||||||||||||||||||
Recoveries | 22 | - | 48 | 24 | 94 | ||||||||||||||||||||||||
Provision for (recovery of) loan losses | 37 | 30 | 129 | (36 | ) | 160 | |||||||||||||||||||||||
Ending Balance | $ | 340 | $ | 198 | $ | 2,788 | $ | 34 | $ | 3,360 | |||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||
Collectively evaluated for impairment | 340 | 198 | 2,788 | 34 | 3,360 | ||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | - | $ | 77 | $ | 1,659 | $ | - | $ | 1,736 | |||||||||||||||||||
Collectively evaluated for impairment | 48,060 | 18,384 | 218,250 | 13,604 | 298,298 | ||||||||||||||||||||||||
Ending Balance: | $ | 48,060 | $ | 18,461 | $ | 219,909 | $ | 13,604 | $ | 300,034 |
Other_Real_Estate_Owned_Tables
Other Real Estate Owned) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Real Estate Owned [Abstract] | ||||||||||||
Schedule of Changes in Balance for OREO | 31-Dec-14 | 31-Dec-13 | ||||||||||
Balance at beginning of year, gross | $ | 3,133 | $ | 2,329 | ||||||||
Transfer from loans | 244 | 804 | ||||||||||
Previously recognized impairment losses on disposition | -101 | - | ||||||||||
Net loss on sale of property | -27 | - | ||||||||||
Sales proceeds | -1,135 | - | ||||||||||
Balance at end of year, gross | $ | 2,114 | $ | 3,133 | ||||||||
Less: valuation allowance | -937 | -761 | ||||||||||
Balance at end of year, net | $ | 1,177 | $ | 2,372 | ||||||||
Schedule of Changes in Valuation Allowance for OREO | 31-Dec-14 | 31-Dec-13 | ||||||||||
Balance at beginning of year | $ | 761 | $ | 583 | ||||||||
Valuation allowance | 277 | 178 | ||||||||||
Charge-offs | -101 | - | ||||||||||
Balance at end of year | $ | 937 | $ | 761 | ||||||||
Premises_and_Equipment_Tables
Premises and Equipment) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment [Abstract] | ||||||||
Summary of Premises and Equipment | 31-Dec-14 | 31-Dec-13 | ||||||
Leasehold improvements | $ | 15,703 | $ | 15,439 | ||||
Building and land | 1,215 | 1,207 | ||||||
Construction and fixed assets in progress | 110 | 3 | ||||||
Furniture and equipment | 5,683 | 5,368 | ||||||
Computer software | 1,875 | 1,848 | ||||||
$ | 24,586 | $ | 23,865 | |||||
Less: accumulated depreciation | ||||||||
and amortization | 15,121 | 14,041 | ||||||
$ | 9,465 | $ | 9,824 | |||||
Schedule of future minimum rental payments required under non-cancelable operating leases | 2015 | $ | 834 | |||||
2016 | 772 | |||||||
2017 | 705 | |||||||
2018 | 619 | |||||||
2019 | 425 | |||||||
Thereafter | 2,626 | |||||||
$ | 5,981 | |||||||
Deposits_Tables
Deposits) (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Deposits [Abstract] | ||||
Schedule of Maturities of Time Deposits | ||||
2015 | $ | 107,199 | ||
2016 | 5,341 | |||
2017 | 2,787 | |||
2018 | 927 | |||
2019 | 840 | |||
$ | 117,094 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Schedule of Net Deferred Tax Assets | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 970 | $ | 1,025 | |||||||||
Non-accrual loan interest | 5 | 7 | |||||||||||
Stock option/grant expense | 316 | 337 | |||||||||||
Start-up expenses | 60 | 1 | |||||||||||
Home equity closing costs | 66 | 63 | |||||||||||
OREO valuation allowance | 319 | 315 | |||||||||||
Deferred compensation expense | 14 | 12 | |||||||||||
Securities available for sale unrealized losses | - | 737 | |||||||||||
Depreciation | 696 | 585 | |||||||||||
$ | 2,446 | $ | 3,082 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Securities available for sale unrealized gains | $ | 23 | $ | - | |||||||||
Deferred loan costs | 57 | 17 | |||||||||||
80 | 17 | ||||||||||||
Net deferred tax assets | $ | 2,366 | $ | 3,065 | |||||||||
Schedule of Provision for Income Taxes | 2014 | 2013 | |||||||||||
Current tax expense | $ | 517 | $ | 3,504 | |||||||||
Deferred tax benefit | -61 | -292 | |||||||||||
Provision for income taxes | $ | 456 | $ | 3,212 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation, Amount | 2014 | 2013 | |||||||||||
Federal statutory rate | 34% | 34% | |||||||||||
Computed statutory tax expense | $ | 800 | $ | 3,501 | |||||||||
Increase (decrease) in tax resulting from: | |||||||||||||
Tax-exempt interest income | -169 | -169 | |||||||||||
Tax-exempt income from Bank | |||||||||||||
Owned Life Insurance (BOLI) | -149 | -151 | |||||||||||
Stock option expense | 14 | 14 | |||||||||||
Other | -40 | 17 | |||||||||||
Provision for income taxes | $ | 456 | $ | 3,212 | |||||||||
Financial_Instruments_With_Off1
Financial Instruments With Off-Balance Sheet Risk and Credit Risk) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Instruments With Off-Balance Sheet Risk and Credit Risk [Abstract] | ||||||||
Schedule of Financial Instruments with Credit Risk | Notional Amount | |||||||
31-Dec-14 | 31-Dec-13 | |||||||
Unfunded lines-of-credit | $ | 80,589 | $ | 79,519 | ||||
ACH | 16,316 | 14,287 | ||||||
Letters of credit | 5,034 | 5,364 | ||||||
Total | $ | 101,939 | $ | 99,170 |
Capital_Requirements_Tables
Capital Requirements) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Capital Requirements [Abstract] | ||||||||||||||||||||||||||||||
Schedule of Company's and Bank's Actual Capital Amounts and Ratios | 31-Dec-14 | Minimum | ||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||
Minimum Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||
Actual | Requirement | Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 63,752 | 17.87 | % | $ | 28,538 | 8 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 52,505 | 15.63 | % | $ | 28,490 | 8 | % | $ | 35,612 | 10 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 60,588 | 16.98 | % | $ | 14,269 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 55,669 | 14.74 | % | $ | 14,245 | 4 | % | $ | 21,367 | 6 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Average Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 60,588 | 11.38 | % | $ | 21,305 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 55,669 | 9.86 | % | $ | 21,296 | 4 | % | $ | 26,620 | 5 | % | ||||||||||||||||||
31-Dec-13 | Minimum | |||||||||||||||||||||||||||||
To Be Well Capitalized | ||||||||||||||||||||||||||||||
Minimum Capital | Under Prompt Corrective | |||||||||||||||||||||||||||||
Actual | Requirement | Action Provisions | ||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||||||
Total Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 62,747 | 18 | % | $ | 27,889 | 8 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 54,434 | 15.62 | % | $ | 27,886 | 8 | % | $ | 34,857 | 10 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Risk Weighted Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 59,387 | 17.03 | % | $ | 13,945 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 51,074 | 14.65 | % | $ | 13,943 | 4 | % | $ | 20,914 | 6 | % | ||||||||||||||||||
Tier 1 Capital | ||||||||||||||||||||||||||||||
(To Average Assets) | ||||||||||||||||||||||||||||||
Consolidated | $ | 59,387 | 11.86 | % | $ | 20,026 | 4 | % | N/A | N/A | ||||||||||||||||||||
Bank | $ | 51,074 | 10.2 | % | $ | 20,026 | 4 | % | $ | 25,033 | 5 | % |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||
Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis | Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. Government agencies | $ | 31,528 | $ | - | $ | 31,528 | $ | - | |||||||||||||||
Corporate bonds | 21,276 | - | 21,276 | - | |||||||||||||||||||
Asset-backed securities | 2,105 | - | 2,105 | - | |||||||||||||||||||
Mortgage-backed securities/CMOs | 63,220 | - | 63,220 | - | |||||||||||||||||||
Municipal bonds | 23,687 | - | 23,687 | - | |||||||||||||||||||
Total securities available for sale | $ | 141,816 | $ | - | $ | 141,816 | $ | - | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
U.S. Government agencies | $ | 44,005 | $ | - | $ | 44,005 | $ | - | |||||||||||||||
Corporate bonds | 9,053 | - | 9,053 | - | |||||||||||||||||||
Asset-backed securities | 2,100 | - | 2,100 | - | |||||||||||||||||||
Mortgage-backed securities/CMOs | 55,597 | - | 55,597 | - | |||||||||||||||||||
Municipal bonds | 22,272 | - | 22,272 | - | |||||||||||||||||||
Total securities available for sale | $ | 133,027 | $ | - | $ | 133,027 | $ | - | |||||||||||||||
Other Real Estate Owned Measured at Fair Value on a Nonrecurring Basis | Fair Value Measurements at December 31, 2014 Using: | ||||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 1,177 | $ | - | $ | - | $ | 1,177 | |||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||||
Significant | |||||||||||||||||||||||
Quoted Prices in | Other | Significant | |||||||||||||||||||||
Active Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Description | Balance | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 2,372 | $ | - | $ | - | $ | 2,372 | |||||||||||||||
Schedule of Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||||
Weighted | |||||||||||||||||||||||
Description | Fair Value | Valuation Technique | Unobservable Inputs | Average | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Other Real Estate Owned | $ | 1,177 | Market comparables | Discount applied to market comparables * | 6.00% | ||||||||||||||||||
* | A discount percentage is applied based on age of independent appraisals, current market conditions, and cost to sell. | ||||||||||||||||||||||
Schedule of the Carrying Values and Estimated Fair Values of the Bank's Financial Instruments | Fair Value Measurement at December 31, 2014 using: | ||||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalent | $ | 54,107 | $ | 54,107 | $ | - | $ | - | $ | 54,107 | |||||||||||||
Securities | 141,816 | - | 141,816 | - | 141,816 | ||||||||||||||||||
Loans, net | 310,090 | - | - | 310,806 | 310,806 | ||||||||||||||||||
Bank owned life insurance | 13,034 | - | 13,034 | - | 13,034 | ||||||||||||||||||
Accrued interest receivable | 1,296 | - | 566 | 730 | 1,296 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Demand deposits and | |||||||||||||||||||||||
interest-bearing transaction | |||||||||||||||||||||||
and money market accounts | $ | 339,625 | $ | - | $ | 339,625 | $ | - | $ | 339,625 | |||||||||||||
Certificates of deposit | 117,094 | - | 117,189 | - | 117,189 | ||||||||||||||||||
Securities sold under | |||||||||||||||||||||||
agreements to repurchase | 17,995 | - | 17,995 | - | 17,995 | ||||||||||||||||||
Accrued interest payable | 117 | - | 117 | - | 117 | ||||||||||||||||||
Fair Value Measurement at December 31, 2013 using: | |||||||||||||||||||||||
Quoted Prices | Significant | ||||||||||||||||||||||
in Active | Other | Significant | |||||||||||||||||||||
Markets for | Observable | Unobservable | |||||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||||
Carrying value | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and cash equivalent | $ | 40,072 | $ | 40,072 | $ | - | $ | - | $ | 40,072 | |||||||||||||
Securities | 133,027 | - | 133,027 | - | 133,027 | ||||||||||||||||||
Loans, net | 296,674 | - | - | 297,765 | 297,765 | ||||||||||||||||||
Bank owned life insurance | 12,595 | - | 12,595 | - | 12,595 | ||||||||||||||||||
Accrued interest receivable | 1,247 | - | 566 | 681 | 1,247 | ||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Demand deposits and | |||||||||||||||||||||||
interest-bearing transaction | |||||||||||||||||||||||
and money market accounts | $ | 306,298 | $ | - | $ | 306,298 | $ | - | $ | 306,298 | |||||||||||||
Certificates of deposit | 124,162 | - | 124,391 | - | 124,391 | ||||||||||||||||||
Securities sold under | |||||||||||||||||||||||
agreements to repurchase | 16,297 | - | 16,297 | - | 16,297 | ||||||||||||||||||
Accrued interest payable | 125 | - | 125 | - | 125 |
Other_Expenses_Tables
Other Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Expenses [Abstract] | |||||||||
Schedule of Other Expenses | 31-Dec-14 | 31-Dec-13 | |||||||
ATM, debit and credit card | $ | 349 | $ | 297 | |||||
Bank franchise tax | 328 | 253 | |||||||
Computer software | 330 | 319 | |||||||
Data processing | 1,025 | 949 | |||||||
FDIC deposit insurance assessment | 268 | 248 | |||||||
Marketing, advertising and promotion | 774 | 721 | |||||||
Net OREO write downs and expenses | 345 | 285 | |||||||
Professional fees | 696 | 744 | |||||||
Other | 1,486 | 1,683 | |||||||
$ | 5,601 | $ | 5,499 | ||||||
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | |||||||||||||||
Stock Incentive Plans [Abstract] | |||||||||||||||
Schedule of Shares Issued and Available Under Stock Incentive Plans | 1998 Plan | 2003 Plan | 2005 Plan | 2014 Plan | |||||||||||
Aggregate shares issuable | 430,100 | 128,369 | 230,000 | 250,000 | |||||||||||
Options issued, net of forfeited and | |||||||||||||||
expired options | -381,089 | -110,278 | 149,751) | - | |||||||||||
Cancelled due to Plan expiration | -49,011 | -18,091 | -80,249 | - | |||||||||||
Remaining available for grant | - | - | - | 250,000 | |||||||||||
Grants issued and outstanding: | |||||||||||||||
Total vested and unvested shares | - | 32,438 | 148,358 | - | |||||||||||
Fully vested shares | - | 32,438 | 138,025 | - | |||||||||||
Exercise price range | N/A | $15.65 to | $11.74 to | N/A | |||||||||||
$18.26 | $36.74 | ||||||||||||||
Summary of Stock Option Activity | 31-Dec-14 | ||||||||||||||
Weighted Average | Aggregate | ||||||||||||||
Number of Options | Exercise Price | Intrinsic Value | |||||||||||||
Outstanding at January 1, 2014 | 226,424 | $ | 26.35 | $ | 44 | ||||||||||
Granted | 5,000 | 18.1 | |||||||||||||
Exercised | -9,516 | 19.9 | |||||||||||||
Expired | -10,350 | 22.27 | |||||||||||||
Forfeited | -30,762 | 31.3 | |||||||||||||
Outstanding at December 31, 2014 | 180,796 | $ | 25.86 | $ | 271 | ||||||||||
Options exercisable at December 31, 2014 | 170,463 | $ | 26.41 | $ | 209 | ||||||||||
Schedule of Assumptions Used to Determine Fair Value of Options Granted | For the year ended | ||||||||||||||
31-Dec-14 | |||||||||||||||
Expected volatility1 | 29.20 | % | |||||||||||||
Expected dividends2 | 1.1 | % | |||||||||||||
Expected term (in years)3 | 6.25 | ||||||||||||||
Risk-free rate4 | 2.15 | % | |||||||||||||
1 | Based on the monthly historical volatility of the Company's stock price over the expected life of the options. | ||||||||||||||
2 | Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | ||||||||||||||
3 | Based on the average of the contractual life and vesting period for the respective option. | ||||||||||||||
4 | Based upon an interpolated US Treasury yield curve interest rate that corresponds to the contractual life of the option, in effect at the time of the grant. | ||||||||||||||
Schedule of Options Outstanding and Exercisable, by Exercise Price Range | Weighted-Average | Weighted | Weighted- | ||||||||||||
Remaining | Average Exercise | Average Exercise | |||||||||||||
Exercise Price | Options Outstanding | Contractual Life | Price | Options Exercisable | Price | ||||||||||
$11.74 to 20.00 | 49,238 | 5.5 Years | $ | 17.25 | 38,905 | $ | 17.4 | ||||||||
$20.01 to 30.00 | 63,018 | 3.2 Years | 24.73 | 63,018 | 24.73 | ||||||||||
$30.01 to 36.74 | 68,540 | 1.4 Years | 33.08 | 68,540 | 33.08 | ||||||||||
Total | 180,796 | 3.2 Years | $ | 25.86 | 170,463 | $ | 26.41 | ||||||||
Schedule of Changes in Restricted Stock Activity | |||||||||||||||
Number of | Grant Date | ||||||||||||||
Shares | Fair Value | ||||||||||||||
Outstanding at January 1, 2014 | 288 | $ | 12.18 | ||||||||||||
Issued | - | - | |||||||||||||
Vested | -288 | 12.18 | |||||||||||||
Non-vested at December 31, 2014 | - | $ | - |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Earnings per Share [Abstract] | |||||||||||||||||||||||
Schedule of weighted average number of shares used in computing earnings per share | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
Weighted | Per | Weighted | Per | ||||||||||||||||||||
Average | Share | Average | Share | ||||||||||||||||||||
Net Income | Shares | Amount | Net Income | Shares | Amount | ||||||||||||||||||
Basic earnings per share | $ | 1,898 | 2,695,426 | $ | 0.7 | $ | 6,896 | 2,690,237 | $ | 2.56 | |||||||||||||
Effect of dilutive stock options | 11,533 | - | 255 | - | |||||||||||||||||||
Diluted earnings per share | $ | 1,898 | 2,706,959 | $ | 0.7 | $ | 6,896 | 2,690,492 | $ | 2.56 | |||||||||||||
Other_Comprehensive_Income_Tab
Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Other Comprehensive Income [Abstract] | |||||||||||
Schedule of Comprehensive Income | December 31, | December 31, | |||||||||
2014 | 2013 | ||||||||||
Available-for-sale securities | |||||||||||
Realized gains on sale of securities | $ | 24 | $ | 50 | |||||||
Tax effect | -8 | -17 | |||||||||
Realized gains, net of tax | $ | 16 | $ | 33 | |||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Schedule of segment reporting information | |||||||||||||||||||||||||
2014 | Bank | VNB Wealth | Consolidated | ||||||||||||||||||||||
Net interest income | $ | 14,422 | $ | 32 | $ | 14,454 | |||||||||||||||||||
Provision for loan losses | 306 | - | 306 | ||||||||||||||||||||||
Non-interest income | 2,614 | 2,983 | 5,597 | ||||||||||||||||||||||
Non-interest expense | 14,576 | 2,815 | 17,391 | ||||||||||||||||||||||
Income before income taxes | 2,154 | 200 | 2,354 | ||||||||||||||||||||||
Provision for income taxes | 383 | 73 | 456 | ||||||||||||||||||||||
Net income | $ | 1,771 | $ | 127 | $ | 1,898 | |||||||||||||||||||
Total assets | $ | 526,458 | $ | 10,595 | $ | 537,053 | |||||||||||||||||||
2013 | Bank | VNB Wealth | Consolidated | ||||||||||||||||||||||
Net interest income | $ | 14,421 | $ | 28 | $ | 14,449 | |||||||||||||||||||
Provision for loan losses | 160 | - | 160 | ||||||||||||||||||||||
Non-interest income | 2,571 | 15,283 | 17,854 | ||||||||||||||||||||||
Non-interest expense | 14,072 | 7,963 | 22,035 | ||||||||||||||||||||||
Income before income taxes | 2,760 | 7,348 | 10,108 | ||||||||||||||||||||||
Provision for income taxes | 711 | 2,501 | 3,212 | ||||||||||||||||||||||
Net income | $ | 2,049 | $ | 4,847 | $ | 6,896 | |||||||||||||||||||
Total assets | $ | 490,564 | $ | 22,430 | $ | 512,994 | |||||||||||||||||||
Condensed_Parent_Company_Finan1
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Condensed Parent Company Financial Statements [Abstract] | |||||||
Balance sheet | BALANCE SHEETS | ||||||
31-Dec-14 | 31-Dec-13 | ||||||
ASSETS | |||||||
Cash and due from banks | $ | 7,713 | $ | 8,436 | |||
Investment securities | 64 | - | |||||
Investments in subsidiary | 52,549 | 49,717 | |||||
Other assets | 541 | 45 | |||||
Total assets | $ | 60,867 | $ | 58,198 | |||
LIABILITIES & SHAREHOLDERS' EQUITY | |||||||
Other liabilities | $ | 235 | $ | 167 | |||
Stockholders' equity | 60,632 | 58,031 | |||||
Total liabilities and stockholders' equity | $ | 60,867 | $ | 58,198 | |||
Statement of income | STATEMENTS OF INCOME | ||||||
For the years ended | |||||||
31-Dec-14 | 31-Dec-13 | ||||||
Dividends from subsidiary | $ | 788 | $ | 8,635 | |||
Noninterest expense | 449 | 187 | |||||
Income before income taxes | $ | 339 | $ | 8,448 | |||
Income tax (benefit) | -202 | - | |||||
Income before equity in undistributed | |||||||
earnings of subsidiary | $ | 541 | $ | 8,448 | |||
Equity (deficit) in undistributed earnings | |||||||
of subsidiary | 1,357 | -1,552 | |||||
Net income | $ | 1,898 | $ | 6,896 | |||
Statement of cash flow | STATEMENTS OF CASH FLOWS | ||||||
For the years ended | |||||||
December 31, 2014 | 31-Dec-13 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 1,898 | $ | 6,896 | |||
Adjustments to reconcile net income to | |||||||
net cash provided by operating activities: | |||||||
Equity (deficit) in undistributed earnings | |||||||
of subsidiary | -1,357 | 1,552 | |||||
Deferred tax benefit | -375 | - | |||||
Stock option & stock grant expense | 52 | - | |||||
Increase in other assets | -122 | -45 | |||||
Increase in other liabilities | 69 | 167 | |||||
Net cash provided from operating activities | 165 | 8,570 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Purchase of restricted securities | -64 | - | |||||
Net cash used in investing activities | -64 | - | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Stock options exercised | 180 | - | |||||
Stock purchased under stock repurchase plan | -262 | - | |||||
Dividends paid | -742 | -134 | |||||
Net cash used in financing activities | -824 | -134 | |||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -723 | 8,436 | |||||
CASH AND CASH EQUIVALENTS | |||||||
Beginning of period | 8,436 | - | |||||
End of period | $ | 7,713 | $ | 8,436 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 18, 2013 | Sep. 22, 2014 |
Summary of Significant Accounting Policies [Abstract] | |||||
Shares of common stock authorized | 10,000,000 | 10,000,000 | |||
Shares of common stock, par value per share | 2.5 | $2.50 | |||
Preferred stock authorized | 2,000,000 | 2,000,000 | |||
Preferred stock, par value per share | 2.5 | $2.50 | |||
Authorized stock repurchase | 400,000 | ||||
Preferred stock, outstanding | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Increase in retained earnings for prior years due to change in accounting method | $75 | ||||
Decrease in reserve for accrued and unpaid expenses | 113 | ||||
Increase in income tax payable | -38 | ||||
Minimum [Member] | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets | 3 years | ||||
Maximum [Member] | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of assets | 20 years | ||||
SRCM Holdings LLC [Member] | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Gain from the sale | $302 | ||||
VNBTrust, National Association [Member] | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Maximum percentage of total assets managed by wholly-owned subsidiary which is represented by Fund | 7.00% | ||||
VNBTrust, National Association [Member] | SRCM Holdings LLC [Member] | |||||
Organization and Significant Accounting Policies [Line Items] | |||||
Period for which counterparty to agreement will pay quarterly payments | 10 years | ||||
Acquisitions royalty payments as percentage of the management and performance fee revenue received by counterparty from limited partners of the Fund | 20.00% | ||||
Acquisitions royalty payments as percentage of the management and performance fee revenue received by counterparty for opened accounts within 30 days of the Closing Date | 20.00% | ||||
Ongoing referral payments percentage of the management and performance fee revenue received by counterparty from from clients referred by the Company and its affiliates | 20.00% |
Securities_Amortized_Cost_and_
Securities (Amortized Cost and Fair Values of Securities Available for Sale) (Details)) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available for Sale | ||
Amortized Cost | $141,749 | $135,196 |
Gross Unrealized Gains | 870 | 904 |
Gross Unrealized (Losses) | -803 | -3,073 |
Available for Sale, Fair Value | 141,816 | 133,027 |
U.S. Government agencies [Member] | ||
Available for Sale | ||
Amortized Cost | 31,189 | 43,268 |
Gross Unrealized Gains | 395 | 828 |
Gross Unrealized (Losses) | -56 | -91 |
Available for Sale, Fair Value | 31,528 | 44,005 |
Corporate bonds [Member] | ||
Available for Sale | ||
Amortized Cost | 21,373 | 9,066 |
Gross Unrealized Gains | 21 | 37 |
Gross Unrealized (Losses) | -118 | -50 |
Available for Sale, Fair Value | 21,276 | 9,053 |
Asset-backed securities [Member] | ||
Available for Sale | ||
Amortized Cost | 2,133 | 2,151 |
Gross Unrealized Gains | ||
Gross Unrealized (Losses) | -28 | -51 |
Available for Sale, Fair Value | 2,105 | 2,100 |
Mortgage-backed securities/CMOs [Member] | ||
Available for Sale | ||
Amortized Cost | 63,327 | 56,815 |
Gross Unrealized Gains | 297 | 34 |
Gross Unrealized (Losses) | -404 | -1,252 |
Available for Sale, Fair Value | 63,220 | 55,597 |
Municipal bonds [Member] | ||
Available for Sale | ||
Amortized Cost | 23,727 | 23,896 |
Gross Unrealized Gains | 157 | 5 |
Gross Unrealized (Losses) | -197 | -1,629 |
Available for Sale, Fair Value | $23,687 | $22,272 |
Securities_Narrative_Details
Securities (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | |
item | item | ||
Schedule of Investments [Line Items] | |||
Restricted securities, at cost | $1,565,000 | $1,645,000 | |
Proceeds from the sales of securities | 7,498,000 | 16,854,000 | |
Gains on sales of securities | 24,000 | 50,000 | |
Securities pledged to secure deposits and for other purposes required by law | 23,799,000 | 17,547,000 | |
Number of securites designated as held to maturity | 3 | ||
Amortized Cost | 2,699,000 | ||
Gross Unrealized Gains | -34,000 | ||
Held to maturity, Fair value | $0 | $0 | $2,733,000 |
Number of securities designated as available for sale securities having unrealized loss | 74 | ||
Mortgage-backed securities/CMOs [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities designated as available for sale securities having unrealized loss | 26 | ||
Municipal bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Percentage of securities rated with AA or higher ratings | 83.00% | ||
Percentage of securities as general obligation bonds with issuers that are geographically diverse | 79.00% | ||
Number of securities designated as available for sale securities having unrealized loss | 25 | ||
Corporate bonds [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities designated as available for sale securities having unrealized loss | 15 | ||
Other security [Member] | |||
Schedule of Investments [Line Items] | |||
Number of securities designated as available for sale securities having unrealized loss | 8 |
Securities_Schedule_of_Unreali
Securities (Schedule of Unrealized Losses) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | $27,731 | $66,359 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 41,416 | 12,977 |
Total, Estimated Fair value | 69,147 | 79,336 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -177 | -2,655 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -626 | -418 |
Total, Unrealized losses | -803 | -3,073 |
U.S. Government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 6,375 | 2,889 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 966 | 948 |
Total, Estimated Fair value | 7,341 | 3,837 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -21 | -39 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -35 | -52 |
Total, Unrealized losses | -56 | -91 |
Corporate bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 13,213 | 5,016 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 3,032 | |
Total, Estimated Fair value | 16,245 | 5,016 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -102 | -50 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -16 | |
Total, Unrealized losses | -118 | -50 |
Asset-backed securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 98 | 960 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 2,007 | 1,140 |
Total, Estimated Fair value | 2,105 | 2,100 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -36 | |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -28 | -15 |
Total, Unrealized losses | -28 | -51 |
Mortgage-backed/CMOs [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 6,276 | 39,061 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 25,081 | 8,609 |
Total, Estimated Fair value | 31,357 | 47,670 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -35 | -1,079 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -369 | -173 |
Total, Unrealized losses | -404 | -1,252 |
Municipal bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 1,769 | 18,433 |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 10,330 | 2,280 |
Total, Estimated Fair value | 12,099 | 20,713 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | -19 | -1,451 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | -178 | -178 |
Total, Unrealized losses | ($197) | ($1,629) |
Securities_Schedule_of_Amortiz
Securities (Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost | |
Total Securities Available for Sale | $141,749 |
Fair Value | |
Total Securities Available for Sale | 141,816 |
U.S. Government agencies [Member] | |
Amortized Cost | |
One year or less | 13,090 |
After one year to five years | 8,941 |
After five years to ten years | 8,172 |
Ten years or more | 986 |
Total Securities Available for Sale | 31,189 |
Fair Value | |
One year or less | 13,218 |
After one year to five years | 9,089 |
After five years to ten years | 8,220 |
Ten years or more | 1,001 |
Total Securities Available for Sale | 31,528 |
Corporate bonds [Member] | |
Amortized Cost | |
After one year to five years | 9,077 |
After five years to ten years | 12,296 |
Total Securities Available for Sale | 21,373 |
Fair Value | |
After one year to five years | 9,049 |
After five years to ten years | 12,227 |
Total Securities Available for Sale | 21,276 |
Asset-backed securities [Member] | |
Amortized Cost | |
After five years to ten years | 975 |
Ten years or more | 1,158 |
Total Securities Available for Sale | 2,133 |
Fair Value | |
After five years to ten years | 952 |
Ten years or more | 1,153 |
Total Securities Available for Sale | 2,105 |
Mortgage-backed/CMOs [Member] | |
Amortized Cost | |
After five years to ten years | 18,933 |
Ten years or more | 44,394 |
Total Securities Available for Sale | 63,327 |
Fair Value | |
After five years to ten years | 18,985 |
Ten years or more | 44,235 |
Total Securities Available for Sale | 63,220 |
Municipal bonds [Member] | |
Amortized Cost | |
After one year to five years | 1,700 |
After five years to ten years | 9,852 |
Ten years or more | 12,175 |
Total Securities Available for Sale | 23,727 |
Fair Value | |
After one year to five years | 1,704 |
After five years to ten years | 9,882 |
Ten years or more | 12,101 |
Total Securities Available for Sale | $23,687 |
Loans_Schedule_of_Composition_
Loans (Schedule of Composition of Loan Portfolio by Loan Classification) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $313,254 | $300,034 |
Allowance for loan losses | -3,164 | -3,360 |
Total loans, net | 310,090 | 296,674 |
Commercial and industrial - organic [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 46,125 | 48,060 |
Commercial and industrial - syndicated [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 14,815 | |
Total commercial and industrial loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 60,940 | 48,060 |
Residential construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 337 | 794 |
Other construction and land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,575 | 17,667 |
Total construction and land [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,912 | 18,461 |
1-4 family residential [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 60,162 | 54,300 |
Home equity lines of credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 25,498 | 29,612 |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 26,462 | 22,560 |
Commercial owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 60,868 | 58,802 |
Commercial non-owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 54,012 | 54,635 |
Total real estate mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 227,002 | 219,909 |
Consumer revolving credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 3,428 | 2,254 |
Consumer all other credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 9,972 | 11,350 |
Total Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $13,400 | $13,604 |
Loans_Narrative_Details
Loans (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $313,254 | $300,034 |
Deposit account overdrafts | 53 | 51 |
Commercial real estate loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 141,300 | |
Commercial real estate loans, including multifamily mortgages, as a percentage of total real estate loans | 62.20% | |
Commercial owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 60,868 | 58,802 |
Commercial owner occupied real estate, as a percentage of total commercial real estate loans | 43.10% | |
1-4 family mortgages and home equity loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 85,700 | |
Residential and home equity loans as a percentage of total real estate mortgage loans | 37.80% | |
Real Estate Construction [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | 11,912 | 18,461 |
Percentage of total loans | 3.80% | |
Total Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans | $13,400 | $13,604 |
Percentage of total loans | 4.30% |
Loans_Schedule_of_Activity_in_
Loans (Schedule of Activity in Related Party Loans) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Activity in related party loans | ||
Balance outstanding at the beginning of period | $6,526 | $6,401 |
Principal additions | 8,043 | 4,574 |
Principal reductions | -3,728 | -4,449 |
Balance outstanding at the end of period | $10,841 | $6,526 |
Loans_NonAccrual_Loans_by_Loan
Loans (Non-Accrual Loans by Loan Classification) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | $218 | $367 |
Other construction and land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 69 | 77 |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 149 | 60 |
Commercial non-owner occupied real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | $230 |
Loans_Schedule_of_Aging_of_Pas
Loans (Schedule of Aging of Past Due Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | item |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans which are 90 days or more past due | 0 | 2 |
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | $19 | $310 |
60-89 Days Past Due | 54 | 230 |
90 Days or More Past Due | 269 | |
Total Past Due | 73 | 809 |
Current | 313,181 | 299,225 |
Total Loans | 313,254 | 300,034 |
90 Days Past Due and Still Accruing | 178 | |
Commercial and industrial - organic [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | 6 | 123 |
60-89 Days Past Due | 35 | |
90 Days or More Past Due | ||
Total Past Due | 6 | 158 |
Current | 46,119 | 47,902 |
Total Loans | 46,125 | 48,060 |
90 Days Past Due and Still Accruing | ||
Commercial and industrial - syndicated [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | ||
Current | 14,815 | |
Total Loans | 14,815 | |
90 Days Past Due and Still Accruing | ||
Residential construction [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | ||
Current | 337 | 794 |
Total Loans | 337 | 794 |
90 Days Past Due and Still Accruing | ||
Other construction and land [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | 34 | |
60-89 Days Past Due | ||
90 Days or More Past Due | 29 | |
Total Past Due | 63 | |
Current | 11,575 | 17,604 |
Total Loans | 11,575 | 17,667 |
90 Days Past Due and Still Accruing | 29 | |
Total construction and land [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Loans | 11,912 | 18,461 |
1-4 family residential [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | 60 | |
60-89 Days Past Due | 24 | 26 |
90 Days or More Past Due | 149 | |
Total Past Due | 24 | 235 |
Current | 60,138 | 54,065 |
Total Loans | 60,162 | 54,300 |
90 Days Past Due and Still Accruing | 149 | |
Home equity lines of credit [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | ||
Current | 25,498 | 29,612 |
Total Loans | 25,498 | 29,612 |
90 Days Past Due and Still Accruing | ||
Multifamily [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | ||
Current | 26,462 | 22,560 |
Total Loans | 26,462 | 22,560 |
90 Days Past Due and Still Accruing | ||
Commercial owner occupied [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | ||
Current | 60,868 | 58,802 |
Total Loans | 60,868 | 58,802 |
90 Days Past Due and Still Accruing | ||
Commercial non-owner occupied real estate [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | ||
60-89 Days Past Due | 139 | |
90 Days or More Past Due | 91 | |
Total Past Due | 230 | |
Current | 54,012 | 54,405 |
Total Loans | 54,012 | 54,635 |
90 Days Past Due and Still Accruing | ||
Total real estate mortgage [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Loans | 227,002 | 219,909 |
Consumer revolving credit [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | 1 | |
60-89 Days Past Due | ||
90 Days or More Past Due | ||
Total Past Due | 1 | |
Current | 3,427 | 2,254 |
Total Loans | 3,428 | 2,254 |
90 Days Past Due and Still Accruing | ||
Consumer all other credit [Member] | ||
Past Due and Non-Accrual Loans | ||
30-59 Days Past Due | 12 | 93 |
60-89 Days Past Due | 30 | 30 |
90 Days or More Past Due | ||
Total Past Due | 42 | 123 |
Current | 9,930 | 11,227 |
Total Loans | 9,972 | 11,350 |
90 Days Past Due and Still Accruing | ||
Total consumer [Member] | ||
Past Due and Non-Accrual Loans | ||
Total Loans | $13,400 | $13,604 |
Loans_Impaired_Loans_by_Loan_C
Loans (Impaired Loans by Loan Classification) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, with a valuation allowance | ||
Unpaid Principal Balance, with a valuation allowance | ||
Associated Allowance, with a valuation allowance | ||
Average Recorded Investment, with a valuation allowance | ||
Interest Income Recognized, with a valuation allowance | ||
Recorded Investment, total | 1,697 | 1,736 |
Unpaid Principal Balance, total | 1,757 | 1,908 |
Associated Allowance, total | ||
Average Recorded Investment, total | 1,736 | 1,990 |
Interest Income Recognized, total | 80 | 61 |
Other construction and land [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 69 | 77 |
Unpaid Principal Balance, without a valuation allowance | 109 | 110 |
Associated Allowance, without a valuation allowance | ||
Average Recorded Investment, without a valuation allowance | 79 | 81 |
Interest Income Recognized, without a valuation allowance | 1 | |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 525 | 285 |
Unpaid Principal Balance, without a valuation allowance | 545 | 380 |
Associated Allowance, without a valuation allowance | ||
Average Recorded Investment, without a valuation allowance | 437 | 293 |
Interest Income Recognized, without a valuation allowance | 16 | 11 |
Home equity lines of credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | ||
Unpaid Principal Balance, without a valuation allowance | ||
Associated Allowance, without a valuation allowance | ||
Average Recorded Investment, without a valuation allowance | 50 | |
Interest Income Recognized, without a valuation allowance | 3 | |
Commercial owner occupied real estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 1,103 | 1,144 |
Unpaid Principal Balance, without a valuation allowance | 1,103 | 1,144 |
Associated Allowance, without a valuation allowance | ||
Average Recorded Investment, without a valuation allowance | 1,124 | 1,414 |
Interest Income Recognized, without a valuation allowance | 60 | 50 |
Commercial non-owner occupied real estate [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment, without a valuation allowance | 230 | |
Unpaid Principal Balance, without a valuation allowance | 274 | |
Associated Allowance, without a valuation allowance | ||
Average Recorded Investment, without a valuation allowance | 46 | 202 |
Interest Income Recognized, without a valuation allowance |
Loans_Schedule_of_Troubled_Deb
Loans (Schedule of Troubled Debt Restructurings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | item | item |
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | 4 | 2 |
Total Troubled Debt Restructurings | $1,518 | $1,369 |
Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | 3 | 2 |
Total Troubled Debt Restructurings | 1,479 | 1,369 |
Performing [Member] | 1-4 family residential mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | 2 | 1 |
Total Troubled Debt Restructurings | 376 | 225 |
Performing [Member] | Commercial owner occupied real estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | 1 | 1 |
Total Troubled Debt Restructurings | 1,103 | 1,144 |
Nonperforming [Member] | Other construction and land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Number of loans | 1 | |
Total Troubled Debt Restructurings | $39 |
Loans_Schedule_of_Loans_Modifi
Loans (Schedule of Loans Modified Under the Terms of a TDR) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | item | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 2 | |
Pre-Modification Recorded Balance | $196 | |
Post-Modification Recorded Balance | 194 | |
Other construction and land [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 1 | |
Pre-Modification Recorded Balance | 40 | |
Post-Modification Recorded Balance | 39 | |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 1 | |
Pre-Modification Recorded Balance | 156 | |
Post-Modification Recorded Balance | $155 |
Loans_Schedule_of_Troubled_Deb1
Loans (Schedule of Troubled Debt Restructurings That Subsequently Defaulted) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | item | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 2 | |
Recorded Investment | $248 | |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | |
Recorded Investment | 65 | |
Commercial owner occupied real estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | |
Recorded Investment | $183 |
Allowance_for_Loan_Losses_Past
Allowance for Loan Losses (Past Due Aging by Loan Classification) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | $3,360 | $3,267 |
Charge-offs | -551 | -161 |
Recoveries | 49 | 94 |
Net charge-offs | -502 | -67 |
Provision for loan losses | 306 | 160 |
Ending Balance | $3,164 | $3,360 |
Allowance_for_Loan_Losses_Loan
Allowance for Loan Losses (Loan Portfolio Designated by the Internal Risk Ratings Assigned to Each Credit) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $313,254 | $300,034 |
Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,813 | 4,427 |
Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 36,081 | 32,096 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 268,484 | 255,736 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,026 | 1,695 |
Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,850 | 6,080 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - organic [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 46,125 | 48,060 |
Commercial and industrial - organic [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,579 | 4,056 |
Commercial and industrial - organic [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23,261 | 19,464 |
Commercial and industrial - organic [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 18,487 | 24,015 |
Commercial and industrial - organic [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 64 | 5 |
Commercial and industrial - organic [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 734 | 520 |
Commercial and industrial - organic [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - syndicated [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,815 | |
Commercial and industrial - syndicated [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - syndicated [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - syndicated [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,815 | |
Commercial and industrial - syndicated [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - syndicated [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial and industrial - syndicated [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Residential construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 337 | 794 |
Residential construction [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Residential construction [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Residential construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 337 | 794 |
Residential construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Residential construction [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Residential construction [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Other construction and land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,575 | 17,667 |
Other construction and land [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Other construction and land [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Other construction and land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 10,903 | 17,031 |
Other construction and land [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 507 | 530 |
Other construction and land [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 165 | 106 |
Other construction and land [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
1-4 family residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 60,162 | 54,300 |
1-4 family residential [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
1-4 family residential [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,910 | 1,934 |
1-4 family residential [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 56,968 | 50,945 |
1-4 family residential [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 455 | 593 |
1-4 family residential [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 829 | 828 |
1-4 family residential [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,498 | 29,612 |
Home equity lines of credit [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Home equity lines of credit [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Home equity lines of credit [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 25,411 | 29,367 |
Home equity lines of credit [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Home equity lines of credit [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 87 | 245 |
Home equity lines of credit [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 26,462 | 22,560 |
Multifamily [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Multifamily [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Multifamily [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 26,462 | 22,560 |
Multifamily [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Multifamily [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Multifamily [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial owner occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 60,868 | 58,802 |
Commercial owner occupied [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial owner occupied [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial owner occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 58,890 | 56,668 |
Commercial owner occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial owner occupied [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,978 | 2,134 |
Commercial owner occupied [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial non-owner occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 54,012 | 54,635 |
Commercial non-owner occupied [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial non-owner occupied [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Commercial non-owner occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 54,012 | 51,884 |
Commercial non-owner occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 567 | |
Commercial non-owner occupied [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,184 | |
Commercial non-owner occupied [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Consumer revolving credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,428 | 2,254 |
Consumer revolving credit [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 34 | |
Consumer revolving credit [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,054 | 1,926 |
Consumer revolving credit [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 332 | 319 |
Consumer revolving credit [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Consumer revolving credit [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8 | 9 |
Consumer revolving credit [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Consumer all other credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,972 | 11,350 |
Consumer all other credit [Member] | Excellent [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 200 | 371 |
Consumer all other credit [Member] | Good [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,856 | 8,772 |
Consumer all other credit [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,867 | 2,153 |
Consumer all other credit [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | ||
Consumer all other credit [Member] | Sub-standard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 49 | 54 |
Consumer all other credit [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses (Allowance for Credit Losses Rollforward by Portfolio Segment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses: | ||
Beginning Balance | $3,360 | $3,267 |
Charge-offs | -551 | -161 |
Recoveries | 49 | 94 |
Provision for (recovery of) loan losses | 306 | 160 |
Ending Balance | 3,164 | 3,360 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 3,164 | 3,360 |
Financing Receivables: | ||
Ending Balance | 313,254 | 300,034 |
Individually evaluated for impairment | 1,697 | 1,736 |
Collectively evaluated for impairment | 311,557 | 298,298 |
Commercial Loan [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 340 | 303 |
Charge-offs | -286 | -22 |
Recoveries | 32 | 22 |
Provision for (recovery of) loan losses | 588 | 37 |
Ending Balance | 674 | 340 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 674 | 340 |
Financing Receivables: | ||
Ending Balance | 60,940 | 48,060 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 60,940 | 48,060 |
Real Estate Construction [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 198 | 168 |
Charge-offs | ||
Recoveries | ||
Provision for (recovery of) loan losses | -96 | 30 |
Ending Balance | 102 | 198 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 102 | 198 |
Financing Receivables: | ||
Ending Balance | 11,912 | 18,461 |
Individually evaluated for impairment | 69 | 77 |
Collectively evaluated for impairment | 11,843 | 18,384 |
Real Estate Mortgage [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 2,788 | 2,750 |
Charge-offs | -262 | -139 |
Recoveries | 10 | 48 |
Provision for (recovery of) loan losses | -176 | 129 |
Ending Balance | 2,360 | 2,788 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 2,360 | 2,788 |
Financing Receivables: | ||
Ending Balance | 227,002 | 219,909 |
Individually evaluated for impairment | 1,628 | 1,659 |
Collectively evaluated for impairment | 225,374 | 218,250 |
Total Consumer [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 34 | 46 |
Charge-offs | -3 | |
Recoveries | 7 | 24 |
Provision for (recovery of) loan losses | -10 | -36 |
Ending Balance | 28 | 34 |
Ending balance: Individually evaluated for impairment | ||
Ending balance: Collectively evaluated for impairment | 28 | 34 |
Financing Receivables: | ||
Ending Balance | 13,400 | 13,604 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | $13,400 | $13,604 |
Allowance_for_Loan_Losses_Narr
Allowance for Loan Losses (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Allowance for Loan Losses [Abstract] | ||
Impaired loans | $1,697 | $1,736 |
Other_Real_Estate_Owned_Narrat
Other Real Estate Owned (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
item | ||
Other Real Estate Owned [Abstract] | ||
Number of residential properties | 1 | |
Other real estate owned, net of valuation allowance | $1,177 | $2,372 |
Other OREO expenses | $59 | $107 |
Other_Real_Estate_Owned_Schedu
Other Real Estate Owned (Schedule of Changes in Balance for OREO) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Real Estate [Roll Forward] | |||
Balance at beginning of year, gross | $3,133 | $2,329 | |
Transfer from loans | 244 | 804 | |
Previously recognized impairment losses on disposition | -101 | ||
Net loss on sale of property | -27 | ||
Sales proceeds | -1,135 | ||
Balance at end of year, gross | 2,114 | 3,133 | |
Less: valuation allowance | -937 | -761 | -583 |
Balance at end of year, net | $1,177 | $2,372 |
Other_Real_Estate_Owned_Schedu1
Other Real Estate Owned (Schedule of Changes in Valuation Allowance for OREO) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Changes in the valuation allowance for OREO | ||
Balance at beginning of year | $761 | $583 |
Valuation allowance | 277 | 178 |
Charge-offs | -101 | |
Balance at end of year | $937 | $761 |
Premises_and_Equipment_Summary
Premises and Equipment (Summary of Premises and Equipment) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | $24,586 | $23,865 |
Less: accumulated depreciation and amortization | 15,121 | 14,041 |
Premises and equipment, net | 9,465 | 9,824 |
Depreciation and amortization | 1,151 | 1,274 |
Leasehold improvements [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 15,703 | 15,439 |
Building and land [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 1,215 | 1,207 |
Construction and fixed assets in progress [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 110 | 3 |
Furniture and equipment [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 5,683 | 5,368 |
Computer software [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | $1,875 | $1,848 |
Premises_and_Equipment_Narrati
Premises and Equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating lease [Line Item] | ||
Rent expense | $940 | $1,010 |
Minimum [Member] | ||
Operating lease [Line Item] | ||
Lease term | 1 year | |
Maximum [Member] | ||
Operating lease [Line Item] | ||
Lease term | 20 years |
Premises_and_Equipment_Schedul
Premises and Equipment (Schedule of Future Minimum Rental Payments Under Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future minimum rental payments | |
2015 | $834 |
2016 | 772 |
2017 | 705 |
2018 | 619 |
2019 | 425 |
Thereafter | 2,626 |
Total | $5,981 |
Deposits_Narrative_Details
Deposits (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
Time Deposits, $100,000 or More | $38,959 | $32,738 |
Brokered deposits | 18,693 | 25,045 |
Deposit account overdrafts | $53 | $51 |
Deposits_Schedule_of_Maturitie
Deposits (Schedule of Maturities of Time Deposits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ||
2015 | $107,199 | |
2016 | 5,341 | |
2017 | 2,787 | |
2018 | 927 | |
2019 | 840 | |
Total | $117,094 | $124,162 |
Income_Taxes_Schedule_of_Net_D
Income Taxes (Schedule of Net Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $970 | $1,025 |
Non-accrual loan interest | 5 | 7 |
Stock option/grant expense | 316 | 337 |
Start-up expenses | 60 | 1 |
Home equity closing costs | 66 | 63 |
OREO valuation allowance | 319 | 315 |
Deferred compensation expense | 14 | 12 |
Securities available for sale unrealized losses | 737 | |
Depreciation | 696 | 585 |
Deferred tax assets | 2,446 | 3,082 |
Deferred tax liabilities: | ||
Securities available for sale unrealized gains | 23 | |
Deferred loan costs | 57 | 17 |
Deferred tax liabilities | 80 | 17 |
Net deferred tax assets | $2,366 | $3,065 |
Income_Taxes_Schedule_of_Provi
Income Taxes (Schedule of Provision for Income Taxes) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Provision for income taxes | ||
Current tax expense | $517 | $3,504 |
Deferred tax benefit | -61 | -292 |
Provision for income taxes | $456 | $3,212 |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation, Amount) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Federal statutory rate | 34.00% | 34.00% |
Computed statutory tax expense | $800 | $3,501 |
Increase (decrease) in tax resulting from: | ||
Tax-exempt interest income | -169 | -169 |
Tax-exempt income from Bank Owned Life Insurance (BOLI) | -149 | -151 |
Stock option expense | 14 | 14 |
Other | -40 | 17 |
Provision for income taxes | $456 | $3,212 |
Commitments_and_Contingent_Lia1
Commitments and Contingent Liabilities (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Commitments and Contingent Liabilities [Line Items] | ||
Daily average required balances | $0 | $0 |
Financial_Instruments_With_Off2
Financial Instruments With Off-Balance Sheet Risk and Credit Risk (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Instruments With Off-Balance Sheet Risk and Credit Risk [Abstract] | ||
Commitment letters | $23,280 | $12,364 |
Commitment letters expiration period | 120 days | |
Deposits in other financial institutions in excess of amounts insured by the FDIC | $100 |
Financial_Instruments_With_Off3
Financial Instruments With Off-Balance Sheet Risk and Credit Risk (Schedule of Financial Instruments with Credit Risk) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments with Credit Risk [Line Items] | ||
Notional Amount | $101,939 | $99,170 |
Unfunded lines-of-credit [Member] | ||
Financial Instruments with Credit Risk [Line Items] | ||
Notional Amount | 80,589 | 79,519 |
ACH [Member] | ||
Financial Instruments with Credit Risk [Line Items] | ||
Notional Amount | 16,316 | 14,287 |
Letters of credit [Member] | ||
Financial Instruments with Credit Risk [Line Items] | ||
Notional Amount | $5,034 | $5,364 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 12 Months Ended | 10 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | |
Related Party Transactions [Line Items] | |||
Royalty income | $593,000 | ||
Director [Member] | |||
Related Party Transactions [Line Items] | |||
Rental expenditures (including reimbursements for taxes, insurance, and other expenses) | 453,000 | ||
Marketing and advertising expenses | 318,000 | ||
Swift Run Capital Management [Member] | |||
Related Party Transactions [Line Items] | |||
Ownership interest | 9.00% | 9.00% | |
Revenue from related parties | 651,000 | ||
Royalty income | $593,000 |
Capital_Requirements_Schedule_
Capital Requirements (Schedule of Company and Bank Actual Capital Amounts and Ratios) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total Capital, Amount | ||
Total Capital, Actual, Amount | $63,752 | $62,747 |
Total Capital, Minimum Capital Requirement, Amount | 28,538 | 27,889 |
Tier 1 Capital, Amount | ||
Tier 1 Capital, Actual, Amount | 60,588 | 59,387 |
Tier 1 Capital, Minimum Capital Requirement, Amount | 14,269 | 13,945 |
Tier 1 Capital, Amount | ||
Tier 1 Capital, Actual, Amount | 60,588 | 59,387 |
Tier 1 Capital, Minimum Capital Requirement, Amount | 21,305 | 20,026 |
Total Capital, Ratio | ||
Total Capital (To Risk Weighted Assets), Ratio | 17.87% | 18.00% |
Total Capital, Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 16.98% | 17.03% |
Tier 1 Capital, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 Capital, Ratio | ||
Tier 1 Capital (To Average Assets), Ratio | 11.38% | 11.86% |
Tier 1 Capital, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Bank [Member] | ||
Total Capital, Amount | ||
Total Capital, Actual, Amount | 52,505 | 54,434 |
Total Capital, Minimum Capital Requirement, Amount | 28,490 | 27,886 |
Total Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Amount | 35,612 | 34,857 |
Tier 1 Capital, Amount | ||
Tier 1 Capital, Actual, Amount | 55,669 | 51,074 |
Tier 1 Capital, Minimum Capital Requirement, Amount | 14,245 | 13,943 |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Amount | 21,367 | 20,914 |
Tier 1 Capital, Amount | ||
Tier 1 Capital, Actual, Amount | 55,669 | 51,074 |
Tier 1 Capital, Minimum Capital Requirement, Amount | 21,296 | 20,026 |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Amount | $26,620 | $25,033 |
Total Capital, Ratio | ||
Total Capital (To Risk Weighted Assets), Ratio | 15.63% | 15.62% |
Total Capital, Minimum Capital Requirement, Ratio | 8.00% | 8.00% |
Total Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Ratio | 10.00% | 10.00% |
Tier 1 Capital (To Risk Weighted Assets), Ratio | 14.74% | 14.65% |
Tier 1 Capital, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Ratio | 6.00% | 6.00% |
Tier 1 Capital, Ratio | ||
Tier 1 Capital (To Average Assets), Ratio | 9.86% | 10.20% |
Tier 1 Capital, Minimum Capital Requirement, Ratio | 4.00% | 4.00% |
Tier 1 Capital, Minimum To Be Well Capitalized Under Prompt Corrective, Ratio | 5.00% | 5.00% |
Dividend_Restrictions_Narrativ
Dividend Restrictions (Narrative) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Dividend Restrictions [Abstract] | |
Dividend restrictions policy | Notwithstanding the regulatory limitations on cash dividends, the Bank's Board of Directors approved a cash dividend payment policy that, once combined with any previous cash dividends paid within the last 12 months, the total of which will not exceed 50% of the Bank's after-tax earnings, excluding any extraordinary items, for the preceding 12 months. If the previous 3 quarterly dividends are not within the preceding 12 months, then only the amounts of dividends paid in the previous 12 months, plus the proposed dividend, in total will not exceed 60% of the Bank's after-tax earnings. |
Amount available for cash dividends | $4,584 |
Fair_Value_Measurements_Assets
Fair Value Measurements (Assets Measured at Fair Value on Recurring Basis) (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 a recurring basis | $141,816 | $133,027 |
U.S. Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 31,528 | 44,005 |
Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 21,276 | 9,053 |
Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 2,105 | 2,100 |
Mortgage-backed securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 63,220 | 55,597 |
Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 23,687 | 22,272 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mortgage-backed securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 141,816 | 133,027 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 31,528 | 44,005 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 21,276 | 9,053 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 2,105 | 2,100 |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage-backed securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 63,220 | 55,597 |
Significant Other Observable Inputs (Level 2) [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | 23,687 | 22,272 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Unobservable Inputs (Level 3) [Member] | U.S. Government agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Unobservable Inputs (Level 3) [Member] | Corporate bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Unobservable Inputs (Level 3) [Member] | Asset-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Unobservable Inputs (Level 3) [Member] | Mortgage-backed securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis | ||
Significant Unobservable Inputs (Level 3) [Member] | Municipal bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a recurring basis |
Fair_Value_Measurements_Assets1
Fair Value Measurements (Assets Measured at Fair Value on Nonrecurring Basis) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Measurements [Abstract] | ||
Impaired loans | $1,697 | $1,736 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | 1,177 | 2,372 |
Weighted Average | 6.00% | |
Other Real Estate Owned [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | ||
Other Real Estate Owned [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | ||
Other Real Estate Owned [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value on a non-recurring basis | $1,177 | $2,372 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets | ||
Cash and cash equivalent | $54,107 | $40,072 |
Securities | ||
Loans, net | ||
Bank owned life insurance | ||
Accrued interest receivable | ||
Liabilities | ||
Demand deposits and interest-bearing transaction and money market accounts | ||
Certificates of deposit | ||
Securities sold under agreements to repurchase | ||
Accrued interest payable | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets | ||
Cash and cash equivalent | ||
Securities | 141,816 | 133,027 |
Loans, net | ||
Bank owned life insurance | 13,034 | 12,595 |
Accrued interest receivable | 566 | 566 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market accounts | 339,625 | 306,298 |
Certificates of deposit | 117,189 | 124,391 |
Securities sold under agreements to repurchase | 17,995 | 16,297 |
Accrued interest payable | 117 | 125 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets | ||
Cash and cash equivalent | ||
Securities | ||
Loans, net | 310,806 | 297,765 |
Bank owned life insurance | ||
Accrued interest receivable | 730 | 681 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market accounts | ||
Certificates of deposit | ||
Securities sold under agreements to repurchase | ||
Accrued interest payable | ||
Carrying Value [Member] | ||
Assets | ||
Cash and cash equivalent | 54,107 | 40,072 |
Securities | 141,816 | 133,027 |
Loans, net | 310,090 | 296,674 |
Bank owned life insurance | 13,034 | 12,595 |
Accrued interest receivable | 1,296 | 1,247 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market accounts | 339,625 | 306,298 |
Certificates of deposit | 117,094 | 124,162 |
Securities sold under agreements to repurchase | 17,995 | 16,297 |
Accrued interest payable | 117 | 125 |
Fair Value [Member] | ||
Assets | ||
Cash and cash equivalent | 54,107 | 40,072 |
Securities | 141,816 | 133,027 |
Loans, net | 310,806 | 297,765 |
Bank owned life insurance | 13,034 | 12,595 |
Accrued interest receivable | 1,296 | 1,247 |
Liabilities | ||
Demand deposits and interest-bearing transaction and money market accounts | 339,625 | 306,298 |
Certificates of deposit | 117,189 | 124,391 |
Securities sold under agreements to repurchase | 17,995 | 16,297 |
Accrued interest payable | $117 | $125 |
Other_Expenses_Schedule_of_Oth
Other Expenses (Schedule of Other Expense) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Other Expenses [Abstract] | ||
ATM, debit and credit card | $349 | $297 |
Bank franchise tax | 328 | 253 |
Computer software | 330 | 319 |
Data processing | 1,025 | 949 |
FDIC deposit insurance assessment | 268 | 248 |
Marketing, advertising and promotion | 774 | 721 |
Net OREO write downs and expenses | 345 | 285 |
Professional fees | 696 | 744 |
Other | 1,486 | 1,683 |
Total | $5,601 | $5,499 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Employee Benefit Plans [Line item] | ||
Minimum age of employees for Benefit Plans | 18 years | |
Percentage of contribution matched | 100.00% | |
Percentage of employee contribution | 6.00% | |
Percentage of contribution matched of the first 3% of employee contributions | 100.00% | |
Percentage of contribution matched for the next 2% of employee contributions | 50.00% | |
Employers matching contribution vesting percentage | 100.00% | 100.00% |
Amount of contributed to the plan | $327 | $277 |
Stock_Incentive_Plans_Summary_
Stock Incentive Plans (Summary of Shares Issued and Available Under Each Plan) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
1998 Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate shares issuable | 430,100 |
Options issued, net of forfeited and expired options | -381,089 |
Cancelled due to Plan expiration | -49,011 |
Remaining available for grant | |
Total vested and unvested shares | |
Fully vested shares | |
2003 Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate shares issuable | 128,369 |
Options issued, net of forfeited and expired options | -110,278 |
Cancelled due to Plan expiration | -18,091 |
Remaining available for grant | |
Total vested and unvested shares | 32,438 |
Fully vested shares | 32,438 |
2003 Stock Plan [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share | 15.65 |
2003 Stock Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share | 18.26 |
2005 Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate shares issuable | 230,000 |
Options issued, net of forfeited and expired options | -149,751 |
Cancelled due to Plan expiration | -80,249 |
Remaining available for grant | |
Total vested and unvested shares | 148,358 |
Fully vested shares | 138,025 |
2005 Stock Plan [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share | 11.74 |
2005 Stock Plan [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price per share | 36.74 |
2014 Stock Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate shares issuable | 250,000 |
Options issued, net of forfeited and expired options | |
Cancelled due to Plan expiration | |
Remaining available for grant | 250,000 |
Total vested and unvested shares | |
Fully vested shares |
Stock_Incentive_Plans_Plan_dur
Stock Incentive Plans (Plan duration - Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense for stock options and restricted stock grants | $52 | $106 |
Unrecognized compensation expense related to the non-vested awards | $65 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Plan duration | 10 years |
Stock_Incentive_Plans_Changes_
Stock Incentive Plans (Changes in the Stock Options Outstanding) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Number of Options | ||
Granted | 5,000 | |
Employee stock Option [Member] | ||
Number of Options | ||
Outstanding, at the beginning | 226,424 | 226,424 |
Granted | 5,000 | |
Exercised | -9,516 | |
Expired | -10,350 | |
Forfeited | -30,762 | |
Outstanding, at the end | 180,796 | |
Options Exercisable | 170,463 | |
Weighted Average Exercise Price | ||
Outstanding, at the beginning | 26.35 | $26.35 |
Granted | $18.10 | |
Exercised | $19.90 | |
Expired | $22.27 | |
Forfeited | $31.30 | |
Outstanding, at the end | $25.86 | |
Exercisable | $26.41 | |
Aggregate Intrinsic Value | ||
Outstanding, at the beginning | 44 | $44 |
Outstanding at end | 271 | |
Exercisable | $209 |
Stock_Incentive_Plans_Options_
Stock Incentive Plans (Options and Restricted stock - Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options Granted | 5,000 | |
Employee stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Intrinsic value of options exercised | $18 | |
Options Granted | 5,000 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Granted |
Stock_Incentive_Plans_Fair_Val
Stock Incentive Plans (Fair Value Assumptions Table) (Details) | 12 Months Ended | |
Dec. 31, 2014 | ||
Stock Incentive Plans [Abstract] | ||
Expected volatility | 29.20% | [1] |
Expected dividends | 1.10% | [2] |
Expected term (in years) | 6 years 3 months | [3] |
Risk-free rate | 2.15% | [4] |
[1] | Based on the monthly historical volatility of the Company's stock price over the expected life of the options. | |
[2] | Calculated as the ratio of historical dividends paid per share of common stock to the stock price on the date of grant. | |
[3] | Based on the average of the contractual life and vesting period for the respective option. | |
[4] | Based upon an interpolated US Treasury yield curve interest rate that corresponds to the contractual life of the option, in effect at the time of the grant. |
Stock_Incentive_Plans_Summary_1
Stock Incentive Plans (Summary Information Pertaining to Options Outstanding) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 180,796 |
Weighted-Average Remaining Contractual Life | 3 years 2 months 12 days |
Weighted Average Exercise Price | $25.86 |
Options Exercisable | 170,463 |
Weighted-Average Exercise Price | $26.41 |
$11.74 to 20.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | $11.74 |
Exercise Price, Maximum | $20 |
Options Outstanding | 49,238 |
Weighted-Average Remaining Contractual Life | 5 years 6 months |
Weighted Average Exercise Price | $17.25 |
Options Exercisable | 38,905 |
Weighted-Average Exercise Price | $17.40 |
$20.01 to 30.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | $20.01 |
Exercise Price, Maximum | $30 |
Options Outstanding | 63,018 |
Weighted-Average Remaining Contractual Life | 3 years 2 months 12 days |
Weighted Average Exercise Price | $24.73 |
Options Exercisable | 63,018 |
Weighted-Average Exercise Price | $24.73 |
$30.01 to 36.74 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | $30.01 |
Exercise Price, Maximum | $36.74 |
Options Outstanding | 68,540 |
Weighted-Average Remaining Contractual Life | 1 year 4 months 24 days |
Weighted Average Exercise Price | $33.08 |
Options Exercisable | 68,540 |
Weighted-Average Exercise Price | $33.08 |
Stock_Incentive_Plans_Summary_2
Stock Incentive Plans (Summary of Changes in Restricted Stock Activity) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted Stock [Member] | |
Number of Outstanding | |
Outstanding, beginning | 288 |
Issued | |
Vested | -288 |
Outstanding, at end | |
Weighted-Average Exercise Price | |
Outstanding, beginning | $12.18 |
Issued | |
Vested | $12.18 |
Outstanding, at end |
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 |
Basic earnings per share | ||
Net income | $1,898 | $6,896 |
Weighted Average Shares | 2,695,426 | 2,690,237 |
Per Share Amount | $0.70 | $2.56 |
Effect of dilutive stock options | 11,533 | 255 |
Diluted earnings per share | ||
Net income | $1,898 | $6,896 |
Weighted Average Shares | 2,706,959 | 2,690,492 |
Per Share Amount | $0.70 | $2.56 |
Earnings_per_Share_Narrative_D
Earnings per Share (Narrative) (Details) (Stock options [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options [Member] | ||
Earnings Per Share [Line item] | ||
Securities considered to be anti-dilutive and excluded from earnings per share calculation | 130,677 | 225,062 |
Other_Comprehensive_Income_Sch
Other Comprehensive Income (Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Available-for-sale securities | ||
Realized gains on sales of securities | $24 | $50 |
Tax effect | -8 | -17 |
Realized gains, net of tax | $16 | $33 |
Segment_Reporting_Narrative_De
Segment Reporting (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | |
VNB Wealth [Member] | ||
Segment Reporting Information [Line Items] | ||
Management fees | $250,000 | $250,000 |
Segment_Reporting_Schedule_of_
Segment Reporting (Schedule of Segment Reporting Information) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Net interest income | $14,454 | $14,449 |
Provision for loan losses | 306 | 160 |
Non-interest income | 5,597 | 17,854 |
Non-interest expense | 17,391 | 22,035 |
Income before income taxes | 2,354 | 10,108 |
Provision for income taxes | 456 | 3,212 |
Net income | 1,898 | 6,896 |
Total assets | 537,053 | 512,994 |
Bank [Member] | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 14,422 | 14,421 |
Provision for loan losses | 306 | 160 |
Non-interest income | 2,614 | 2,571 |
Non-interest expense | 14,576 | 14,072 |
Income before income taxes | 2,154 | 2,760 |
Provision for income taxes | 383 | 711 |
Net income | 1,771 | 2,049 |
Total assets | 526,458 | 490,564 |
VNB Wealth [Member] | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 32 | 28 |
Provision for loan losses | ||
Non-interest income | 2,983 | 15,283 |
Non-interest expense | 2,815 | 7,963 |
Income before income taxes | 200 | 7,348 |
Provision for income taxes | 73 | 2,501 |
Net income | 127 | 4,847 |
Total assets | $10,595 | $22,430 |
Condensed_Parent_Company_Finan2
Condensed Parent Company Financial Statements (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 17, 2013 | Dec. 18, 2013 | Dec. 31, 2014 |
Condensed Parent Company Financial Statements [Abstract] | |||
Cash dividend paid | $135 | $8,500 | $788 |
Condensed_Parent_Company_Finan3
Condensed Parent Company Financial Statements (Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $12,834 | $12,871 |
Investment securities | 143,381 | 134,672 |
Other assets | 5,799 | 16,785 |
Total assets | 537,053 | 512,994 |
LIABILITIES & SHAREHOLDERS' EQUITY | ||
Stockholders' equity | 60,632 | 58,031 |
Total liabilities and shareholders' equity | 537,053 | 512,994 |
Parent Company [Member] | ||
ASSETS | ||
Cash and due from banks | 7,713 | 8,436 |
Investment securities | 64 | |
Investments in subsidiary | 52,549 | 49,717 |
Other assets | 541 | 45 |
Total assets | 60,867 | 58,198 |
LIABILITIES & SHAREHOLDERS' EQUITY | ||
Other liabilities | 235 | 167 |
Stockholders' equity | 60,632 | 58,031 |
Total liabilities and shareholders' equity | $60,867 | $58,198 |
Condensed_Parent_Company_Finan4
Condensed Parent Company Financial Statements (Statement of Income) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of income [Line Items] | ||
Noninterest expense | $17,391 | $22,035 |
Income before income taxes | 2,354 | 10,108 |
Income tax (benefit) | 456 | 3,212 |
Net income | 1,898 | 6,896 |
Parent Company [Member] | ||
Statement of income [Line Items] | ||
Dividends from subsidiary | 788 | 8,635 |
Noninterest expense | 449 | 187 |
Income before income taxes | 339 | 8,448 |
Income tax (benefit) | -202 | |
Income before equity in undistributed earnings of subsidiary | 541 | 8,448 |
Equity (deficit) in undistributed earnings of subsidiary | 1,357 | -1,552 |
Net income | $1,898 | $6,896 |
Condensed_Parent_Company_Finan5
Condensed Parent Company Financial Statements (Statement of Cash Flow) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $1,898 | $6,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Deferred tax benefit | -61 | -292 |
Stock option & stock grant expense | 52 | 106 |
Net cash provided by operating activities | 7,713 | 8,626 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of restricted securities | 80 | 84 |
Net cash used in investing activities | -20,811 | -37,265 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Stock options exercised | 180 | 1 |
Stock purchased under stock repurchase plan | -262 | |
Dividends paid | -742 | -403 |
Net cash provided by (used in) financing activities | 27,133 | -3,067 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 14,035 | -31,706 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 40,072 | 71,778 |
End of period | 54,107 | 40,072 |
Parent Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 1,898 | 6,896 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity (deficit) in undistributed earnings of subsidiary | -1,357 | 1,552 |
Deferred tax benefit | -375 | |
Stock option & stock grant expense | 52 | |
Increase in other assets | -122 | -45 |
Increase in other liabilities | 69 | 167 |
Net cash provided by operating activities | 165 | 8,570 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of restricted securities | -64 | |
Net cash used in investing activities | -64 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Stock options exercised | 180 | |
Stock purchased under stock repurchase plan | -262 | |
Dividends paid | -742 | -134 |
Net cash provided by (used in) financing activities | -824 | -134 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -723 | 8,436 |
CASH AND CASH EQUIVALENTS | ||
Beginning of period | 8,436 | |
End of period | $7,713 | $8,436 |