Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 26, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PRIME | ||
Entity Registrant Name | Prime Meridian Holding Co | ||
Entity Central Index Key | 1586454 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 1,943,534 | ||
Entity Public Float | $14.20 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $3,757 | $5,033 |
Federal funds sold | 3,611 | 147 |
Interest-bearing deposits | 187 | 28,986 |
Total cash and cash equivalents | 7,555 | 34,166 |
Securities available for sale | 42,397 | 44,071 |
Loans held for sale | 1,871 | 150 |
Loans, net of allowance for loan losses of $2,098 and $1,734 | 151,869 | 121,220 |
Federal Home Loan Bank stock | 186 | 204 |
Premises and equipment, net | 3,563 | 3,757 |
Deferred tax asset | 362 | 426 |
Accrued interest receivable | 624 | 516 |
Bank-owned life insurance | 1,613 | 1,562 |
Capitalized offering costs | 0 | 218 |
Other assets | 318 | 183 |
Total assets | 210,358 | 206,473 |
Liabilities: | ||
Noninterest-bearing demand deposits | 43,148 | 59,011 |
Savings, NOW and money-market deposits | 122,166 | 109,760 |
Time deposits | 18,657 | 14,594 |
Total deposits | 183,971 | 183,365 |
Other borrowings | 2,699 | 5,719 |
Official checks | 368 | 636 |
Other liabilities | 453 | 392 |
Total liabilities | 187,491 | 190,112 |
Commitments and contingencies (Notes 4, 8 and 15) | ||
Stockholders' equity: | ||
Preferred stock, undesignated; 1,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Common stock, $.01 par value; 9,000,000 shares authorized, 1,941,617 and 1,498,937 issued and outstanding | 19 | 15 |
Additional paid-in capital | 20,056 | 14,929 |
Retained earnings | 2,738 | 1,732 |
Accumulated other comprehensive income (loss) | 54 | -315 |
Total stockholders' equity | 22,867 | 16,361 |
Total liabilities and stockholders' equity | $210,358 | $206,473 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Loans receivable, allowance for loan losses | $2,098 | $1,734 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 9,000,000 | 9,000,000 |
Common stock, shares issued | 1,941,617 | 1,498,937 |
Common stock, shares outstanding | 1,941,617 | 1,498,937 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest income: | ||
Loans | $7,134 | $6,076 |
Securities | 922 | 838 |
Other | 60 | 56 |
Total interest income | 8,116 | 6,970 |
Interest expense: | ||
Deposits | 625 | 646 |
Other borrowings | 36 | 58 |
Total interest expense | 661 | 704 |
Net interest income | 7,455 | 6,266 |
Provision for loan losses | 747 | 513 |
Net interest income after provision for loan losses | 6,708 | 5,753 |
Noninterest income: | ||
Service charges and fees on deposit accounts | 138 | 104 |
Gain on sale of SBA loans | 0 | 246 |
Mortgage banking revenue | 309 | 325 |
Income from bank-owned life insurance | 51 | 55 |
Gain on sale of securities available for sale | 60 | 14 |
Other income | 152 | 115 |
Total noninterest income | 710 | 859 |
Noninterest expenses: | ||
Salaries and employee benefits | 3,210 | 2,650 |
Occupancy and equipment | 899 | 897 |
Professional fees | 395 | 128 |
Advertising | 186 | 206 |
Software maintenance | 178 | 146 |
Other | 1,030 | 834 |
Total noninterest expenses | 5,898 | 4,861 |
Earnings before income taxes | 1,520 | 1,751 |
Income taxes | 514 | 602 |
Net earnings | $1,006 | $1,149 |
Basic earnings per share | $0.59 | $0.77 |
Diluted earnings per share | $0.58 | $0.76 |
Cash dividends per common share | $0 | $0 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $1,006 | $1,149 |
Change in unrealized gain (loss) on securities: | ||
Unrealized gain (loss) arising during the year | 646 | -1,349 |
Reclassification adjustment for realized gains | -60 | -14 |
Net change in unrealized gain (loss) | 586 | -1,363 |
Deferred income taxes on above change | -217 | 503 |
Total other comprehensive income (loss) | 369 | -860 |
Comprehensive income | $1,375 | $289 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | |||||
Beginning Balance, Value at Dec. 31, 2012 | $16,039 | $15 | $14,896 | $583 | $545 |
Beginning Balance, Shares at Dec. 31, 2012 | 1,496,106 | ||||
Net earnings | 1,149 | 0 | 0 | 1,149 | 0 |
Net change in unrealized gain on available for sale securities, net of income tax of $503 and $217 respectively | -860 | 0 | 0 | 0 | -860 |
Common stock issued as compensation to directors, Value | 30 | 0 | 30 | 0 | 0 |
Common stock issued as compensation to directors, Shares | 2,831 | ||||
Stock-based compensation | 3 | 0 | 3 | 0 | 0 |
Ending Balance, Value at Dec. 31, 2013 | 16,361 | 15 | 14,929 | 1,732 | -315 |
Ending Balance, Shares at Dec. 31, 2013 | 1,498,937 | 1,498,937 | |||
Net earnings | 1,006 | 0 | 0 | 1,006 | 0 |
Net change in unrealized gain on available for sale securities, net of income tax of $503 and $217 respectively | 369 | 0 | 0 | 0 | 369 |
Proceeds from sale of common stock, net of $365 in offering costs, Value | 4,955 | 4 | 4,951 | 0 | 0 |
Proceeds from sale of common stock, net of $365 in offering costs, Shares | 425,619 | 425,619 | |||
Proceeds from stock options exercised, Value | 142 | 0 | 142 | 0 | 0 |
Proceeds from stock options exercised, Shares | 14,200 | 14,200 | |||
Common stock issued as compensation to directors, Value | 32 | 0 | 32 | 0 | 0 |
Common stock issued as compensation to directors, Shares | 2,861 | ||||
Stock-based compensation | 2 | 0 | 2 | 0 | 0 |
Ending Balance, Value at Dec. 31, 2014 | $22,867 | $19 | $20,056 | $2,738 | $54 |
Ending Balance, Shares at Dec. 31, 2014 | 1,941,617 | 1,941,617 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income tax portion of change in unrealized gain on available for sale securities | $217 | $503 |
Offering Cost | 365 | |
Common Stock [Member] | ||
Offering Cost | 365 | |
Additional Paid-In Capital [Member] | ||
Offering Cost | 365 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Income tax portion of change in unrealized gain on available for sale securities | $217 | $503 |
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 earnings | $1,006 | $1,149 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 400 | 360 |
Provision for loan losses | 747 | 513 |
Net amortization of deferred loan fees | -9 | -91 |
Deferred income taxes (benefit) | -153 | -175 |
Gain on sale of securities available for sale | -60 | -14 |
Amortization of premiums, discounts on securities available for sale | 453 | 455 |
Proceeds from the sale of loans held for sale | 16,380 | 2,182 |
Gain on sale of SBA loans and loans, held for sale | -273 | -250 |
Loan originated as held for sale | -17,828 | -2,082 |
Stock issued as compensation to directors | 32 | 30 |
Stock-based compensation expense | 2 | 3 |
Income from bank-owned life insurance | -51 | -55 |
Net increase in accrued interest receivable | -108 | -94 |
Decrease (increase) in capitalized offering cost | 218 | -218 |
Net (increase) decrease in other assets | -135 | 197 |
Net (decrease) increase in other liabilities and official checks | -207 | 150 |
Net cash provided by operating activities | 414 | 2,060 |
Cash flows from investing activities: | ||
Loan originations, net of principal repayments | -32,259 | -28,242 |
Purchase of securities available for sale | -12,364 | -11,650 |
Principal repayments of securities available for sale | 8,150 | 8,082 |
Proceeds from the sales of securities available for sale | 4,587 | 1,498 |
Maturities and calls of securities | 1,494 | 0 |
Redemption of Federal Home Loan Bank stock | 18 | 5 |
Proceeds from sale of other real estate owned | 872 | 0 |
Purchase of premises and equipment | -206 | -680 |
Net cash used in investing activities | -29,708 | -30,987 |
Cash flows from financing activities: | ||
Net increase in deposits | 606 | 36,636 |
Decrease in other borrowings | -3,020 | -41 |
Proceeds from sale of common stock | 4,955 | 0 |
Proceeds from stock options exercised | 142 | 0 |
Net cash provided by financing activities | 2,683 | 36,595 |
Net (decrease) increase in cash and cash equivalents | -26,611 | 7,668 |
Cash and cash equivalents at beginning of year | 34,166 | 26,498 |
Cash and cash equivalents at end of year | 7,555 | 34,166 |
Supplemental disclosure of cash flow information Cash paid during the year for: | ||
Interest | 659 | 708 |
Income taxes | 551 | 452 |
Noncash transactions | ||
Accumulated other comprehensive (loss) income, net change in unrealized gain on sale of securities available for sale, net of taxes | 369 | -860 |
Loans transferred from Other Real Estate Owned | $872 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | -1 | Summary of Significant Accounting Policies |
Organization. Prime Meridian Holding Company (the “Holding Company”) owns 100% of the outstanding common stock of Prime Meridian Bank (the “Bank”) (collectively the “Company”). The Holding Company’s primary activity is the operation of the Bank. The Bank is a state (Florida)-chartered commercial bank. The deposit accounts of the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (“FDIC”). The Bank offers a variety of community banking services to individual and corporate customers through its two banking offices located in Tallahassee, Florida. | ||
The following is a description of the significant accounting policies and practices followed by the Company, which conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the banking industry. | ||
Use of Estimates. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. | ||
Principles of Consolidation. The consolidated financial statements include the accounts of the Holding Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||
Cash and Cash Equivalents. For purposes of the statement of cash flows, cash and cash equivalents include cash and balances due from banks, federal funds sold and interest-bearing deposits, all of which have original maturities of less than ninety days. | ||
At December 31, 2014 and 2013, the Company was required by law or regulation to maintain cash reserves with the Federal Reserve Bank, in accounts with other banks or in the vault in the amounts of $1,026,000 and $986,000, respectively. | ||
Securities. Securities may be classified as either trading, held to maturity or available for sale. Trading securities are held principally for resale and recorded at their fair values. Unrealized gains and losses on trading securities are included immediately in earnings. Held-to-maturity securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost. Available-for-sale securities consist of securities not classified as trading securities or as held-to-maturity securities. Unrealized holding gains and losses on available-for-sale securities are excluded from operations and reported in accumulated other comprehensive income (loss). Gains and losses on the sale of available-for-sale securities are recorded on the trade date determined using thespecific-identification method. Premiums and discounts on securities available for sale are recognized in interest income using the interest method over the period to maturity. | ||
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | ||
Loans Held for Sale. Loans held for sale include mortgage loans and Small Business Administration (“SBA”) loans originated which are intended for sale in the secondary market and are carried at the lower of book value or estimated fair value in the aggregate. Gains on loans held for sale are reported on the Consolidated Statement of Earnings under noninterest income in either gain on sale of SBA loans or mortgage banking revenue. At December 31, 2014 loans held for sale were $1,871,000, compared to $150,000 at December 31, 2013. | ||
Loans. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs. | ||
Commitment and loan origination fees are capitalized and certain direct origination costs are deferred. Both are recognized as an adjustment of the yield of the related loan. | ||
The accrual of interest on all portfolio classes is discontinued at the time the loan is ninety-days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or loans that are charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||
Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management confirms that a loan balance cannot be collected. Subsequent recoveries, if any, are credited to the allowance. There were no changes in the Company’s accounting policies or methodology during the year ended December 31, 2014. | ||
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||
The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such loans, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans and is based on the following factors: | ||
The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding thirty-six months. This is supplemented by the risks for each portfolio segment. Risk factors impacting loans in each of the portfolio segments include any deterioration of property values, reduced consumer and business spending as a result of unemployment and reduced credit availability, and a lack of confidence in the economy. The historical experience is adjusted for the following qualitative factors: (a) changes in lending policies and procedures, risk selection and underwriting standards; (b) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio; (c) changes in the experience, ability and depth of lending management and other relevant staff; (d) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss; (e) quality of loan review and Board of Directors oversight; (f) changes in the nature and volume of the loan portfolio and terms of loans; (g) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (h) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. | ||
Allowance for Loan Losses, Continued. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for all loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral-dependent. | ||
Premises and Equipment. Land is stated at cost. Buildings, leasehold improvements, furniture, fixtures and equipment, and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense are computed using the straight-line method over the estimated useful life of each type of asset, or the lease term if shorter. | ||
Other Real Estate Owned. Assets acquired through, or in lieu of, loan foreclosure 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 are carried at the lower of the new cost basis or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other real estate owned expenses. | ||
Transfer of Financial Assets. Transfers of financial assets or a participating interest in an entire financial asset 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, (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 does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. A participating interest is a portion of an entire financial asset that (1) conveys proportionate ownership rights with equal priority to each participating interest holder (2) involves no recourse (other than standard representations and warranties) to, or subordination by, any participating interest holder, and (3) does not entitle any participating interest holder to receive cash before any other participating interest holder. | ||
Off-Balance-Sheet Financial Instruments. In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, construction loans in process, unused lines of credit, standby letters of credit, and guaranteed accounts. Such financial instruments are recorded in the consolidated financial statements when they are funded. | ||
Income Taxes. There are two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. | ||
Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. As of December 31, 2014, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | ||
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | ||
The Company files consolidated income tax returns. Income taxes are allocated to the Holding Company and Bank as if separate income tax returns were filed. | ||
Derivative Financial Instruments. Derivative financial instruments are recognized as assets or liabilities in the consolidated balance sheets and measured at fair value. The Company enters into commitments to originate loans whereby the interest-rate on the loan is determined prior to funding (rate lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. | ||
Fair Value Measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP has established a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy describes three levels of inputs that may be used to measure fair value: | ||
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. | ||
Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. | ||
The following describes valuation methodologies used for assets measured at fair value: | ||
Securities Available for Sale. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include U.S. Government agency securities, municipal securities and mortgage-backed securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 include certain asset-backed securities. | ||
Impaired Loans. Estimates of fair value for impaired loans is based on the estimated value of the underlying collateral which is determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s management related to values of equipment or properties in the Bank’s market areas. Management takes into consideration the type, location or occupancy of the equipment or property as well as current economic conditions in the area the property is located in assessing estimates of fair value. Accordingly, fair value estimates for impaired loans are classified as Level 3. | ||
Fair Values of Financial Instruments. The following methods and assumptions were used by the Company in estimating fair values of financial instruments: | ||
Cash and Cash Equivalents. The carrying amounts of cash and cash equivalents approximate their fair value (Level 1). | ||
Securities. Fair values for securities are based on the framework for measuring fair value (Level 2). | ||
Loans. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate mortgage (e.g. one-to-four family residential), commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for nonperforming loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable (Level 3). | ||
Federal Home Loan Bank Stock. The fair value of the Company’s investment in Federal Home Loan Bank stock is based on its redemption value (Level 3). | ||
Accrued Interest Receivable. The carrying amounts of accrued interest approximate their fair values (Level 3). | ||
Deposits. The fair values disclosed for demand, NOW, money-market and savings deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregated expected monthly maturities of time deposits (Level 3). | ||
Other Borrowings. The carrying amounts of other borrowings approximate their fair value (Level 3). | ||
Off-Balance-Sheet Instruments. Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing (Level 3). | ||
Advertising. The Company expenses all media advertising as incurred. | ||
Share-Based Compensation. The Company expenses the fair value of any stock options granted. The Company recognizes share-based compensation in the statements of earnings as the options vest. | ||
Comprehensive Income. GAAP require that recognized revenue, expenses, gains and losses be included in earnings. 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 consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. | ||
Mortgage Banking Revenue. Mortgage banking revenue includes gains on the sale of mortgage loans originated for sale. The Company recognizes mortgage banking revenue from mortgage loans originated in the consolidated statement of earnings upon sale of the loans. | ||
Recent Accounting Standards Update. 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, which is intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an insubstance 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: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) 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. Additional disclosures are required. The amendments are effective beginning January 1, 2015. Upon adoption, this guidance is not expected to impact the Bank’s financial statements. | ||
Recent Regulatory Developments | ||
Basel III Rules. On July 2, 2013, the Federal Reserve Board (“FRB”) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The final rules also raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and require a minimum leverage ratio of 4.0%. The final rules also implement strict eligibility criteria for regulatory capital instruments. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. The FDIC’s rule is identical in substance to the final rules issued by the FRB. | ||
The phase-in period for the final rules began for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. The Bank is currently evaluating the provisions of the final rules and their expected impact on the Bank. |
Securities_Available_for_Sale
Securities Available for Sale | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Securities Available for Sale | -2 | Securities Available for Sale | |||||||||||||||
Securities have been classified according to management’s intention. The carrying amount of securities and their fair values are summarized as follows (in thousands): | |||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 6,943 | 19 | (99 | ) | 6,863 | |||||||||||
Municipal securities | 9,497 | 113 | (79 | ) | 9,531 | ||||||||||||
Mortgage-backed securities | 25,870 | 228 | (95 | ) | 26,003 | ||||||||||||
$ | 42,310 | 360 | (273 | ) | 42,397 | ||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | 7,290 | 8 | (329 | ) | 6,969 | ||||||||||||
Municipal securities | 9,139 | 14 | (269 | ) | 8,884 | ||||||||||||
Mortgage-backed securities | 26,225 | 253 | (198 | ) | 26,280 | ||||||||||||
Asset-backed securities | 1,916 | 22 | 0 | 1,938 | |||||||||||||
$ | 44,570 | 297 | (796 | ) | 44,071 | ||||||||||||
Securities available for sale measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted | Significant | Significant | ||||||||||||||
Value | Prices | Other | Unobservable | ||||||||||||||
In Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 6,863 | 0 | 6,863 | 0 | ||||||||||||
Municipal securities | 9,531 | 0 | 9,531 | 0 | |||||||||||||
Mortgage-backed securities | 26,003 | 0 | 26,003 | 0 | |||||||||||||
$ | 42,397 | 0 | 42,397 | 0 | |||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | 6,969 | 0 | 6,969 | 0 | |||||||||||||
Municipal securities | 8,884 | 0 | 8,884 | 0 | |||||||||||||
Mortgage-backed securities | 26,280 | 0 | 26,280 | 0 | |||||||||||||
Asset-backed securities | 1,938 | 0 | 1,938 | 0 | |||||||||||||
$ | 44,071 | 0 | 44,071 | 0 | |||||||||||||
During the year ended December 31, 2014, no securities were transferred in or out of Level I, Level 2 or Level 3. During year ended December 31, 2013, securities of $1.8 million were transferred from Level 3 to Level 2 due to changes in the inputs used to value the securities. | |||||||||||||||||
For the year ended December 31, 2014, there were no securities measured at fair value on a recurring basis using significant observable inputs (Level 3). The table below presents a reconciliation for asset-backed securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013. | |||||||||||||||||
These instruments were valued using pricing models and discounted cash flow methodologies incorporating assumptions that, in management’s judgment, reflect the assumptions a marketplace participant would use (in thousands): | |||||||||||||||||
Balance, beginning of year | $ | 1,899 | |||||||||||||||
Total gains or (losses) - realized/unrealized- | |||||||||||||||||
Transfer into/out of Level 3 | (1,899 | ) | |||||||||||||||
Balance, end of year | $ | 0 | |||||||||||||||
The scheduled maturities of securities are as follows (in thousands): | |||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
Due in one to five years | $ | 2,303 | 2,312 | ||||||||||||||
Due five to ten years | 6,908 | 6,834 | |||||||||||||||
Due after ten years | 7,229 | 7,248 | |||||||||||||||
Mortgage-backed securities | 25,870 | 26,003 | |||||||||||||||
$ | 42,310 | 42,397 | |||||||||||||||
The following summarizes sales of securities available for sale (in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Proceeds received from sales | $ | 4,587 | 1,498 | ||||||||||||||
Gross gains | 60 | 14 | |||||||||||||||
Gross losses | 0 | 0 | |||||||||||||||
Net gain from sale of securities | $ | 60 | 14 | ||||||||||||||
At December 31, 2014 and 2013, securities with a fair value of $7,054,000 and $8,352,000, respectively, were pledged as collateral for public deposits and for other borrowings with clients. | |||||||||||||||||
Securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): | |||||||||||||||||
Less Than Twelve | More Than Twelve | ||||||||||||||||
Months | Months | ||||||||||||||||
Gross | Fair | Gross | Fair | ||||||||||||||
Unrealized | Value | Unrealized | Value | ||||||||||||||
Losses | Losses | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 0 | 0 | $ | (99 | ) | 5,945 | ||||||||||
Municipal securities | (2 | ) | 269 | (77 | ) | 3,026 | |||||||||||
Mortgage-backed securities | (47 | ) | 8,250 | (48 | ) | 1,705 | |||||||||||
$ | (49 | ) | 8,519 | $ | (224 | ) | 10,676 | ||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | (329 | ) | 5,984 | 0 | 0 | ||||||||||||
Municipal securities | (269 | ) | 5,758 | 0 | 0 | ||||||||||||
Mortgage-backed securities | (198 | ) | 12,326 | 0 | 0 | ||||||||||||
$ | (796 | ) | 24,068 | $ | 0 | 0 | |||||||||||
The unrealized losses at December 31, 2014 and 2013 on twenty-two and twenty-five securities were caused by market conditions. It is expected that the securities would not be settled at a price less than the par value of the investments. Because the decline in fair value is attributable to market conditions and not credit quality, and because the Company has the ability and intent to hold these investments until a market price recovery or maturity, these investments are not considered other-than-temporarily impaired. |
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Loans | -3 | Loans | |||||||||||||||||||||||||||||||
The segments and classes of loans are as follows (in thousands): | |||||||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Real estate mortgage loans: | |||||||||||||||||||||||||||||||||
Commercial | $ | 52,661 | 44,796 | ||||||||||||||||||||||||||||||
Residential and home equity | 51,858 | 38,571 | |||||||||||||||||||||||||||||||
Construction | 15,876 | 12,933 | |||||||||||||||||||||||||||||||
Total real estate mortgage loans | 120,395 | 96,300 | |||||||||||||||||||||||||||||||
Commercial loans | 30,755 | 24,651 | |||||||||||||||||||||||||||||||
Consumer and other loans | 2,877 | 2,072 | |||||||||||||||||||||||||||||||
Total loans | 154,027 | 123,023 | |||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Net deferred loan fees | (60 | ) | (69 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (2,098 | ) | (1,734 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 151,869 | 121,220 | ||||||||||||||||||||||||||||||
The Company has divided the loan portfolio into three portfolio segments and five portfolio classes, each with different risk characteristics and methodologies for assessing risk. All loans are underwritten based upon standards set forth in the policies approved by the Company’s Board of Directors. The portfolio segments and classes are identified by the Company as follows: | |||||||||||||||||||||||||||||||||
Real Estate Mortgage Loans. Real estate mortgage loans are typically divided into three classes: Commercial, residential and home equity, and construction. The real estate mortgage loans are as follows: | |||||||||||||||||||||||||||||||||
Commercial. Loans of this type are typically our more complex loans. This category of real estate loans is comprised of loans secured by mortgages on commercial property that is typically owner-occupied, but also includes nonowner occupied investment properties. Commercial loans that are secured by owner-occupied commercial real estate are repaid through operating cash flows of the borrower. The maturity for this type of loan is generally limited to three to five years; however, payments may be structured on a longer amortization basis. Typically, interest rates on our commercial real estate loans are fixed for five years or less after which they adjust based upon a predetermined spread over an index. At times, a rate may be fixed for longer than five years. As part of our credit underwriting standards, the Bank typically requires personal guarantees from the principal owners of the business supported by a review of the principal owners’ personal financial statements and tax returns. As part of the enterprise risk management process, it is understood that risks associated with commercial real estate loans include fluctuations in real estate values, the overall strength of the borrower, the overall strength of the economy, new job creation trends, tenant vacancy rates, environmental contamination, and the quality of the borrowers’ management. In order to mitigate and limit these risks, we analyze the borrowers’ cash flow and evaluate collateral value. Currently, the collateral securing our commercial real estate loans include a variety of property types, such as office, warehouse, and retail facilities. Other types include multifamily properties, hotels, mixed-use residential, and commercial properties. Generally, commercial real estate loans present a higher risk profile than our consumer real estate loans portfolio. | |||||||||||||||||||||||||||||||||
Residential and Home Equity. We offer first and second one-to-four family mortgage loans and home equity lines of credit; the collateral for these loans is generally on the clients’ owner-occupied residences. Although these types of loans present lower levels of risk than commercial real estate loans, risks do still exist because of possible fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrowers’ financial condition. Borrowers may be affected by numerous factors, including divorce, job loss, illness, or other personal hardship. As part of our product mix, the Bank offers both portfolio and secondary market mortgages; portfolio loans generally are based on a 1-year, 3-year or 5-year adjustable rate mortgage; while 15-year or 30-year fixed-rate loans are sold to the secondary market. All portfolio residential loans are underwritten based upon the guidelines of the secondary market, predominantly Freddie Mac and Fannie Mae. | |||||||||||||||||||||||||||||||||
Construction. Typically, these loans have a construction period of one to two years and the interest is paid monthly. Once the construction period terminates, some of these loans convert to a term loan with a maturity of one to five years. This portion of our loan portfolio includes loans to small and midsized businesses to construct owner-user properties, loans to developers of commercial real estate investment properties, and residential developments. This type of loan is also made to individual clients for construction of single family homes in our market area. An independent appraisal is used to determine the value of the collateral and confirm that the ratio of the loan principal to the value of the collateral will not exceed policies of the Bank. As the construction project progresses, loan proceeds are requested by the borrower to complete phases of construction and funding is only disbursed after the project has been inspected by a third-party inspector or experienced construction lender. Risks associated with construction loans include fluctuations in the value of real estate, project completion risk, and changes in market trends. The ability of the construction loan borrower to finance the loan or sell the property upon completion of the project is another risk factor that also may be affected by changes in market trends since the initial funding of the loan. | |||||||||||||||||||||||||||||||||
Commercial Loans. The Bank offers a wide range of commercial loans, including business term loans, equipment financing, and lines of credit to small and midsized businesses. Small-to-medium sized businesses, retail, and professional establishments, make up our target market for commercial loans. Our Relationship Managers primarily underwrite these loans based on the borrower’s ability to service the loan from cash flow. Lines of credit and loans secured by accounts receivable and/or inventory are monitored periodically by our staff. Loans secured by “all business assets,” or a “blanket lien” are typically only made to highly qualified borrowers due to the nonspecific nature of the collateral. Valuation of business collateral is generally supported by an appraisal, purchase order, or third party physical inspection. Personal guarantees of the principals of business borrowers are usually required. | |||||||||||||||||||||||||||||||||
Equipment loans generally have a term of five years or less and may have a fixed or variable rate; we use conservative margins when pricing these loans. Working capital loans generally do not exceed one year and typically, they are secured by accounts receivable, inventory, and personal guarantees of the principals of the business. Significant factors affecting a commercial borrower’s creditworthiness include the quality of management and the ability both to evaluate changes in the supply and demand characteristics affecting the business’ markets for products and services and to respond effectively to such changes. These loans may be made unsecured or secured, but most are made on a secured basis. Risks associated with our commercial loan portfolio include local, regional, and national market conditions. Other factors of risk could include changes in the borrower’s management and fluctuations in collateral value. Additionally, there may be refinancing risk if a commercial loan includes a balloon payment which must be refinanced or paid off at loan maturity. | |||||||||||||||||||||||||||||||||
In reference to our risk management process, our commercial loan portfolio presents a higher risk profile than our consumer real estate and consumer loan portfolios. Therefore, we require that all loans to businesses must have a clearly stated and reasonable payment plan to allow for timely retirement of debt. | |||||||||||||||||||||||||||||||||
Consumer and Other Loans. These loans are made for various consumer purposes, such as the financing of automobiles, boats, and recreational vehicles. The payment structure of these loans is normally on an installment basis. The risk associated with this category of loans stems from the reduced collateral value for a defaulted loan; it may not provide an adequate source of repayment of the principal. The underwriting on these loans is primarily based on the borrower’s financial condition. In many cases, these are unsecured credits that subject us to risk when the borrower’s financial condition declines or deteriorates. Based upon our current trend in consumer loans, management does not anticipate consumer loans will become a substantial component of our loan portfolio at any time in the foreseeable future. Consumer loans are made at fixed and variable interest rates and are based on the appropriate amortization for the asset and purpose. | |||||||||||||||||||||||||||||||||
An analysis of the change in the allowance for loan losses follows (in thousands): | |||||||||||||||||||||||||||||||||
Real Estate Mortgage Loans | |||||||||||||||||||||||||||||||||
Commercial | Residential | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
and | and | ||||||||||||||||||||||||||||||||
Home | Other | ||||||||||||||||||||||||||||||||
Equity | Loans | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 604 | 545 | 175 | 387 | 23 | 1,734 | ||||||||||||||||||||||||||
Provision for loan losses | 502 | 146 | 36 | 30 | 33 | 747 | |||||||||||||||||||||||||||
Net (charge-offs) recoveries | (404 | ) | 0 | 0 | 36 | (15 | ) | (383 | ) | ||||||||||||||||||||||||
Ending balance | $ | 702 | 691 | 211 | 453 | 41 | 2,098 | ||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 0 | 0 | 0 | 229 | 8 | 237 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 0 | 0 | 0 | 92 | 6 | 98 | ||||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 52,661 | 51,858 | 15,876 | 30,526 | 2,869 | 153,790 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 702 | 691 | 211 | 361 | 35 | 2,000 | ||||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
Beginning balance | 352 | 226 | 237 | 405 | 23 | 1,243 | |||||||||||||||||||||||||||
Provision (credit) for loan losses | 252 | 319 | (15 | ) | (44 | ) | 1 | 513 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | 0 | 0 | (47 | ) | 26 | (1 | ) | (22 | ) | ||||||||||||||||||||||||
Ending balance | $ | 604 | 545 | 175 | 387 | 23 | 1,734 | ||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 0 | 36 | 0 | 346 | 0 | 382 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 0 | 23 | 0 | 82 | 0 | 105 | ||||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 44,796 | 38,685 | 12,933 | 24,305 | 2,072 | 122,791 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 604 | 522 | 175 | 305 | 23 | 1,629 | ||||||||||||||||||||||||||
The following summarizes the loan credit quality (in thousands): | |||||||||||||||||||||||||||||||||
Real Estate Mortgage Loans | |||||||||||||||||||||||||||||||||
Commercial | Residential | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
and | Loans | and | |||||||||||||||||||||||||||||||
Home | Other | ||||||||||||||||||||||||||||||||
Equity | Loans | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade: | |||||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 50,654 | 47,357 | 15,714 | 30,006 | 2,801 | 146,532 | ||||||||||||||||||||||||||
Special mention | 0 | 3,065 | 154 | 520 | 68 | 3,807 | |||||||||||||||||||||||||||
Substandard | 2,007 | 1,436 | 8 | 229 | 8 | 3,688 | |||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Loss | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total | $ | 52,661 | 51,858 | 15,876 | 30,755 | 2,877 | 154,027 | ||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | 40,901 | 36,461 | 12,528 | 23,919 | 1,914 | 115,723 | |||||||||||||||||||||||||||
Special mention | 1,804 | 1,346 | 396 | 509 | 38 | 4,093 | |||||||||||||||||||||||||||
Substandard | 2,091 | 764 | 9 | 223 | 120 | 3,207 | |||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Loss | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total | $ | 44,796 | 38,571 | 12,933 | 24,651 | 2,072 | 123,023 | ||||||||||||||||||||||||||
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. | |||||||||||||||||||||||||||||||||
The Company analyzes loans individually by classifying the loans as to credit risk. Loans classified as substandard or special mention are reviewed quarterly by the Company for further deterioration or improvement to determine if they are appropriately classified and whether there is any impairment. All loans are graded upon initial issuance. Further, construction and nonowner occupied commercial real estate loans and commercial relationships in excess of $500,000 are reviewed at least annually. In addition, during the renewal process of any loan, as well as if a loan becomes past due, the Company will determine the appropriate loan grade. | |||||||||||||||||||||||||||||||||
Loans excluded from the review process above are generally classified as pass credits until: (a) they become past due; (b) management becomes aware of a deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification as to special mention, substandard or even charged-off. The Company uses the following definitions for risk ratings: | |||||||||||||||||||||||||||||||||
Pass – A Pass loan’s primary source of loan repayment is satisfactory, with secondary sources very likely to be realized if necessary. | |||||||||||||||||||||||||||||||||
Special Mention – A Special Mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | |||||||||||||||||||||||||||||||||
Substandard – A Substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||
Doubtful – A loan classified Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | |||||||||||||||||||||||||||||||||
Loss – A loan classified Loss is considered uncollectible and of such little value that continuance as a bankable asset is not warranted. This classification does not necessarily preclude the potential for recovery, but rather signifies it is no longer practical to defer writing off the asset. | |||||||||||||||||||||||||||||||||
At December 31, 2014, there was one loan over thirty days past due, no loans past due ninety days or more but still accruing and two loans on nonaccrual. Age analysis of past-due loans at December 31, 2014 and 2013 is as follows (in thousands): | |||||||||||||||||||||||||||||||||
Accruing Loans | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Nonaccrual | Total | |||||||||||||||||||||||||||
Days | Days | Than 90 | Past | Loans | Loans | ||||||||||||||||||||||||||||
Past Due | Past Due | Days | Due | ||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||||||
Commercial | $ | 0 | 0 | 0 | 0 | 52,661 | 0 | 52,661 | |||||||||||||||||||||||||
Residential and home equity | 0 | 0 | 0 | 0 | 51,858 | 0 | 51,858 | ||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 15,876 | 0 | 15,876 | ||||||||||||||||||||||||||
Commercial | 18 | 0 | 0 | 18 | 30,566 | 171 | 30,755 | ||||||||||||||||||||||||||
Consumer/other | 0 | 0 | 0 | 0 | 2,877 | 0 | 2,877 | ||||||||||||||||||||||||||
Total | $ | 18 | 0 | 0 | 0 | 153,838 | 171 | 154,027 | |||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||||||
Commercial | 0 | 0 | 0 | 0 | 44,796 | 0 | 44,796 | ||||||||||||||||||||||||||
Residential and home equity | 0 | 0 | 0 | 0 | 38,571 | 0 | 38,571 | ||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 12,933 | 0 | 12,933 | ||||||||||||||||||||||||||
Commercial | 38 | 0 | 0 | 0 | 24,613 | 0 | 24,651 | ||||||||||||||||||||||||||
Consumer/other | 0 | 0 | 0 | 0 | 2,072 | 0 | 2,072 | ||||||||||||||||||||||||||
Total | $ | 38 | 0 | 0 | 0 | 122,985 | 0 | 123,023 | |||||||||||||||||||||||||
The following summarizes the amount of impaired loans (in thousands): | |||||||||||||||||||||||||||||||||
With No Related | With an Allowance Recorded | Total | |||||||||||||||||||||||||||||||
Allowance Recorded | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||||||||
Investment | Contractual | Investment | Contractual | Allowance | Investment | Contractual | Allowance | ||||||||||||||||||||||||||
Principal | Principal | Principal | |||||||||||||||||||||||||||||||
Balance | Balance | Balance | |||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Commercial loans | $ | 0 | 0 | 229 | 229 | 92 | 229 | 229 | 92 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 8 | 8 | 6 | 8 | 8 | 6 | |||||||||||||||||||||||||
Total | $ | 0 | 0 | 237 | 237 | 98 | 237 | 237 | 98 | ||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Residential and home equity | $ | 0 | 0 | 36 | 36 | 23 | 36 | 36 | 23 | ||||||||||||||||||||||||
Commercial loans | 27 | 27 | 319 | 319 | 82 | 346 | 346 | 82 | |||||||||||||||||||||||||
Total | $ | 27 | 27 | 355 | 355 | 105 | 382 | 382 | 105 | ||||||||||||||||||||||||
The average net investment in impaired loans and interest income recognized and received on impaired loans by loan class are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Average | Interest | Interest | |||||||||||||||||||||||||||||||
Recorded | Income | Income | |||||||||||||||||||||||||||||||
Investment | Recognized | Received | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
Commercial | $ | 244 | 14 | 14 | |||||||||||||||||||||||||||||
Consumer | 8 | 1 | 1 | ||||||||||||||||||||||||||||||
Total | $ | 252 | 15 | 15 | |||||||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
Residential and home equity | 36 | 3 | 3 | ||||||||||||||||||||||||||||||
Commercial | 298 | 23 | 23 | ||||||||||||||||||||||||||||||
Total | $ | 334 | 26 | 26 | |||||||||||||||||||||||||||||
There were no loans measured at fair value on a nonrecurring basis at December 31, 2013. Impaired collateral-dependent loans measured at fair value on a nonrecurring basis by loan class at December 31, 2014 are as follows (in thousands): | |||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
At Year End | Recorded | ||||||||||||||||||||||||||||||||
Fair | Total | During the | |||||||||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Losses | Year | ||||||||||||||||||||||||||||
Commercial loans | $ | 118 | 0 | 0 | 118 | 20 | 20 | ||||||||||||||||||||||||||
Consumer loans | 2 | 0 | 0 | 2 | 6 | 6 | |||||||||||||||||||||||||||
Total | 120 | 0 | 0 | 120 | 26 | 26 | |||||||||||||||||||||||||||
The Company grants the majority of its loans to borrowers throughout Leon County, Florida. Although the Company has a diversified loan portfolio, a significant portion of its borrowers’ ability to honor their contracts is dependent upon the economy of this area. The Company does not have any significant concentrations to any one industry or customer. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and Equipment | -4 | Premises and Equipment | |||||||
A summary of premises and equipment follows (in thousands): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 400 | 400 | ||||||
Building | 2,399 | 2,387 | |||||||
Leasehold improvements | 364 | 364 | |||||||
Furniture, fixtures and equipment | 778 | 706 | |||||||
Computer and software | 1,399 | 1,276 | |||||||
Total, at cost | 5,340 | 5,133 | |||||||
Less accumulated depreciation and amortization | (1,777 | ) | (1,376 | ) | |||||
Premises and equipment, net | $ | 3,563 | 3,757 | ||||||
The Company leases certain office facilities under an operating lease which expires in 2017. This lease requires monthly lease payments and common area maintenance charges and has options to renew. This lease contains escalation clauses during the term of the lease. Rent expense under this operating lease during the years ended December 31, 2014 and 2013 was $88,000 and $114,000, respectively. Future minimum rental commitments under this noncancelable lease are as follows (in thousands): | |||||||||
Year Ending December 31, | Amount | ||||||||
2015 | $ | 85 | |||||||
2016 | 85 | ||||||||
2017 | 91 | ||||||||
2018 | 98 | ||||||||
$ | 359 | ||||||||
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Banking and Thrift [Abstract] | |||||
Deposits | -5 | Deposits | |||
The aggregate amount of time deposits with a minimum denomination of $100,000 was approximately $15.2 million and $10.9 million at December 31, 2014 and 2013, respectively. | |||||
A schedule of maturities of time deposits follows (in thousands): | |||||
Year Ending | Amount | ||||
December 31, | |||||
2015 | $ | 10,727 | |||
2016 | 7,420 | ||||
2017 | 510 | ||||
$ | 18,657 | ||||
Other_Borrowings
Other Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Other Borrowings | -6 | Other Borrowings | |||||||
The Company entered into a repurchase agreement with a customer. This agreement requires the Company to pledge securities as collateral for borrowings under this agreement. A summary of other borrowings follows ($ in thousands): | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Balance outstanding at year-end | $ | 2,699 | 5,719 | ||||||
Average balance outstanding during the year | 3,592 | 5,789 | |||||||
Average interest rate paid | 1 | % | 1 | % | |||||
Maximum amount outstanding at any month-end during year | 5,733 | 5,813 | |||||||
Pledged securities | 3,558 | 5,882 | |||||||
The Company has pledged collateral to the Federal Home Loan Bank of Atlanta (“FHLB”) for future advances which will be collateralized by a blanket lien on qualifying residential real estate, commercial real estate, home equity lines of credit and multi-family loans. The Company may borrow up to $30.7 million as of December 31, 2014 from the FHLB. There were no advances outstanding at December 31, 2014 or 2013. The Company also has available credit of $8.7 million in lines of credit with correspondent banks. All draws under these lines are subject to approval by the correspondent bank. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Income Taxes | -7 | Income Taxes | |||||||||||||||
The components of the income taxes are as follows (in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 560 | 658 | ||||||||||||||
State | 107 | 119 | |||||||||||||||
Total current | 667 | 777 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | (123 | ) | (146 | ) | |||||||||||||
State | (30 | ) | (29 | ) | |||||||||||||
Total deferred | (153 | ) | (175 | ) | |||||||||||||
Total income taxes | $ | 514 | 602 | ||||||||||||||
The reasons for the difference between the statutory Federal income tax rate of 34% and the effective tax rates are summarized as follows (dollars in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||
Pretax | Pretax | ||||||||||||||||
Earnings | Earnings | ||||||||||||||||
Income taxes at statutory rate | $ | 517 | 34 | % | $ | 595 | 34 | % | |||||||||
Increase (decrease) resulting from: | |||||||||||||||||
State taxes, net of Federal tax benefit | 51 | 3.3 | 60 | 3.4 | |||||||||||||
Tax-exempt income | (42 | ) | (2.7 | ) | (30 | ) | (1.7 | ) | |||||||||
Other nondeductible expenses | (12 | ) | (0.8 | ) | (23 | ) | (1.3 | ) | |||||||||
$ | 514 | 33.8 | % | $ | 602 | 34.4 | % | ||||||||||
Tax effects of temporary differences that give rise to the deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||||||
At December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Allowance for loan losses | $ | 710 | 517 | ||||||||||||||
Organizational and start-up costs | 116 | 130 | |||||||||||||||
Stock-based compensation | 18 | 18 | |||||||||||||||
Unrealized loss on securities available for sale | 0 | 184 | |||||||||||||||
Other | 60 | 63 | |||||||||||||||
Deferred tax assets | 904 | 912 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Accrual to cash conversion | (139 | ) | (145 | ) | |||||||||||||
Deferred loan costs | (109 | ) | (88 | ) | |||||||||||||
Premises and equipment | (261 | ) | (253 | ) | |||||||||||||
Unrealized gains on securities available for sale | (33 | ) | 0 | ||||||||||||||
Deferred tax liabilities | (542 | ) | (486 | ) | |||||||||||||
Net deferred tax asset (liability) | $ | 362 | 426 | ||||||||||||||
The Company files consolidated income tax returns in the U.S. federal jurisdiction, and the State of Florida. The Company is no longer subject to U.S. federal, or state and local income tax examinations by taxing authorities for years before 2011. |
OffBalanceSheet_Financial_Inst
Off-Balance-Sheet Financial Instruments | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Off-Balance-Sheet Financial Instruments | (8) Off-Balance-Sheet Financial Instruments | ||||
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 are commitments to extend credit, construction loans in process, unused lines of credit, standby letters of credit, and guaranteed accounts and may involve, to varying degrees, elements of credit and interest-rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of these instruments reflect the extent of involvement the Company has in these financial instruments. | |||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for available lines of credit, construction loans in process and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance-sheet instruments. | |||||
Commitments to extend credit and unused lines of 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 some 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 credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparty. Standby letters of credit are written conditional commitments issued by the Company to guarantee the performance of a client to a third party. These letters of credit are primarily issued to support third-party borrowing arrangements and generally have expiration dates within one year of issuance. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. In the event the client does not perform in accordance with the terms of the agreement with the third party, we would be required to fund the commitment. The maximum potential amount of future payments we could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, we would be entitled to seek recovery from the client. The Bank may hold collateral supporting those commitments, and at December 31, 2014 such collateral amounted to $945,000. | |||||
Guaranteed accounts are irrevocable standby letters of credit issued by us to guarantee a client’s credit line with our third party credit card company, First Arkansas Bank & Trust. As a part of this agreement, we are responsible for the established credit limit on certain accounts plus 10%. The maximum potential amount of future payments we could be required to make is represented by the dollar amount disclosed in the table below. | |||||
Standby letters of credit and commitments to extend credit typically result in loans with a market interest rate when funded. A summary of the contractual amounts of the Company’s financial instruments with off-balance-sheet risk at December 31, 2014 are as follows (in thousands): | |||||
Commitments to extend credit | $ | 2,508 | |||
Construction loans in process | $ | 7,265 | |||
Unused lines of credit | $ | 23,020 | |||
Standby letters of credit | $ | 1,225 | |||
Guaranteed Accounts | $ | 113 | |||
Stock_Option_Plan
Stock Option Plan | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stock Option Plan | -9 | Stock Option Plan | |||||||||||||||
The 2007 Stock Option Plan provides for certain key employees and directors of the Company to have the option to purchase shares of the Company’s common stock. Under this Plan, the total number of shares which may be issued is 108,400. All options granted have ten-year terms and vest over periods up to five years. As of December 31, 2014, there were 30,305 shares available for grant. | |||||||||||||||||
A summary of the activity in the Company’s Stock Option Plan is as follows: | |||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at December 31, 2012 | 136,000 | $ | 10 | ||||||||||||||
Options granted | 2,500 | 10.72 | |||||||||||||||
Options forfeited | (4,500 | ) | 10 | ||||||||||||||
Outstanding at December 31, 2013 | 134,000 | 10.01 | |||||||||||||||
Options exercised | (14,200 | ) | 10 | ||||||||||||||
Options forfeited | (11,400 | ) | $ | 10 | |||||||||||||
Outstanding at December 31, 2014 | 108,400 | $ | 10.01 | 4.2 years | |||||||||||||
Exercisable at December 31, 2014 | 105,400 | 10 | 4.1 years | $ | 263,500 | ||||||||||||
At December 31, 2014, there was $3,000 of total unrecognized compensation expense related to nonvested share based compensation arrangements granted under the plans. The cost is expected to be recognized over a weighted-average period of twenty-one months. The total fair value of shares vesting and recognized as compensation expense was $2,000 and $3,000 in the years ended December 31, 2014 and 2013, respectively. The associated income tax benefit recognized was $0 and $1,000 for the years ended December 31, 2014 and 2013, respectively. |
Profit_Sharing_Plan
Profit Sharing Plan | 12 Months Ended | |
Dec. 31, 2014 | ||
Postemployment Benefits [Abstract] | ||
Profit Sharing Plan | -10 | Profit Sharing Plan |
The Company sponsors a 401(k) profit sharing plan available to all employees electing to participate after meeting certain length-of-service requirements. The Company’s contributions to the profit sharing plan are discretionary and determined annually. Contributions to the plan for the years ended December 31, 2014 and 2013 were $102,000 and $65,000, respectively. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Related Party Transactions | -11 | Related Party Transactions | |||||||
The Company enters into transactions during the ordinary course of business with officers and directors of the Company and entities in which they hold a significant financial interest. The following summarizes these transactions (in thousands): | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Loans: | |||||||||
Beginning balance | $ | 3,734 | 3,558 | ||||||
Originated during the year | 885 | 354 | |||||||
Principal repayments | (1,605 | ) | (178 | ) | |||||
Ending balance | $ | 3,014 | 3,734 | ||||||
Deposits at year end | $ | 16,510 | 13,292 | ||||||
The Company leases an office facility from a related party. Rent expense under the operating lease during the years ended December 31, 2014 and 2013 was $88,000 and $114,000, respectively. In addition, the Bank has contracted with a related party to perform loan reviews of the Bank’s loan portfolio. The expenses related to the loan reviews during the years ended December 31, 2014 and 2013 were $20,000 and $24,000, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||
Fair Value of Financial Instruments | -12 | Fair Value of Financial Instruments | |||||||||||||||||
The approximate carrying amounts and estimated fair values of the Company’s financial instruments are as follows (in thousands): | |||||||||||||||||||
At December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Level | Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | 1 | $ | 7,555 | 7,555 | 34,166 | 34,166 | |||||||||||||
Securities available for sale | 2 | 42,397 | 42,397 | 44,071 | 44,071 | ||||||||||||||
Loans held for sale | 3 | 1,871 | 1,923 | 150 | 150 | ||||||||||||||
Loans, net | 3 | 151,869 | 148,588 | 121,220 | 121,947 | ||||||||||||||
Federal Home Loan Bank stock | 3 | 186 | 186 | 204 | 204 | ||||||||||||||
Accrued interest receivable | 3 | 624 | 624 | 516 | 516 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits | 3 | 183,971 | 184,057 | 183,365 | 183,435 | ||||||||||||||
Other borrowings | 3 | 2,699 | 2,699 | 5,719 | 5,719 | ||||||||||||||
Off-balance-sheet financial instruments | 3 | 0 | 0 | 0 | 0 |
Dividend_Restrictions
Dividend Restrictions | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity [Abstract] | ||
Dividend Restrictions | -13 | Dividend Restrictions |
The Holding Company is limited in the amount of cash dividends it may declare and pay by the amount of dividends it can receive from the Bank. The Bank is limited in the amount of cash dividends that may be paid. The amount of cash dividends that may be paid is based on the Bank’s net earnings of the current year combined with the Bank’s retained earnings of the preceding two years, as defined by state banking regulations. However, for any dividend declaration, the Bank must consider additional factors such as the amount of current period net earnings, liquidity, asset quality, capital adequacy and economic conditions. It is likely that these factors would further limit the amount of dividend which the Bank could declare. In addition, bank regulators have the authority to prohibit banks from paying dividends if they deem such payment to be an unsafe or unsound practice. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Regulatory Matters | -14 | Regulatory Matters | |||||||||||||||||||||||
The Bank is subject to various regulatory capital requirements administered by the 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and percentage (set forth in the table below) of total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2014, that the Bank meets all capital adequacy requirements to which it is subject | |||||||||||||||||||||||||
As of December 31, 2014, the Bank is well capitalized under the regulatory framework for prompt corrective action. To be categorized as adequately capitalized, the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage percentages as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and percentages are also presented in the table ($ in thousands): | |||||||||||||||||||||||||
Actual | For Capital | For Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized | ||||||||||||||||||||||||
Purposes | |||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier I Capital to Average Assets | $ | 19,589 | 9.52 | % | $ | 8,227 | 4 | % | $ | 10,284 | 5 | % | |||||||||||||
Tier I Capital to Risk- Weighted Assets | 19,589 | 12.84 | 6,102 | 4 | 9,154 | 6 | |||||||||||||||||||
Total Capital to Risk- Weighted Assets | 21,498 | 14.09 | 12,206 | 8 | 15,257 | 10 | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier I Capital to Average Assets | 16,611 | 8.41 | 7,898 | 4 | 9,872 | 5 | |||||||||||||||||||
Tier I Capital to Risk- Weighted Assets | 16,611 | 12.41 | 5,355 | 4 | 8,033 | 6 | |||||||||||||||||||
Total Capital to Risk- Weighted Assets | 18,286 | 13.66 | 10,711 | 8 | 13,388 | 10 |
Legal_Contingencies
Legal Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ||
Legal Contingencies | -15 | Legal Contingencies |
Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will not have a material effect on the Company’s financial statements. As of December 31, 2014, there is no pending or threatened litigation of which management is aware. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Earnings Per Share | -16 | Earnings Per Share | |||||||||||||||||||||||
Earnings per share has been computed on the basis of the weighted-average number of shares of common stock outstanding. Outstanding stock options are considered dilutive securities for purposes of calculating diluted EPS which was computed using the treasury stock method. (dollars in thousands, except per share amounts): | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Earnings | Weighted- | Per | Earnings | Weighted- | Per | ||||||||||||||||||||
Average | Share | Average | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Year Ended December 31: | |||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net earnings | $ | 1,006 | 1,709,746 | $ | 0.59 | $ | 1,149 | 1,497,737 | $ | 0.77 | |||||||||||||||
Effect of dilutive securities-Incremental shares from assumed conversion of options | 16,916 | 20,881 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net earnings | $ | 1,006 | 1,726,662 | $ | 0.58 | $ | 1,149 | 1,518,618 | $ | 0.76 | |||||||||||||||
Common_Stock_Offering
Common Stock Offering | 12 Months Ended | |
Dec. 31, 2014 | ||
Text Block [Abstract] | ||
Common Stock Offering | -17 | Common Stock Offering |
The Company filed a Registration Statement with the Securities and Exchange Commission which was effective on December 11, 2013. The Company offered up to 1,200,000 shares of common stock for $12.50 per share through December 31, 2014, when the Stock Offering was closed. The Company sold 425,619 shares and raised $4.96 million, net of expenses. |
Reclassification
Reclassification | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Reclassification | -18 | Reclassification |
Certain noninterest expenses were reclassified from other noninterest expense to advertising for the year ended December 31, 2013 to conform to 2014 presentation. The reclassification of expenses had no effect on net earnings. |
Parent_Company_Only_Financial_
Parent Company Only Financial Information | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Parent Company Only Financial Information | -19 | Parent Company Only Financial Information | |||||||
The Holding Company’s unconsolidated financial information follows: | |||||||||
Condensed Balance Sheets | |||||||||
(In thousands) | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 3,132 | 13 | ||||||
Investment in subsidiary | 19,643 | 16,296 | |||||||
Other assets | 92 | 270 | |||||||
Total assets | $ | 22,867 | 16,579 | ||||||
Liabilities- | |||||||||
Accounts payable | 0 | 218 | |||||||
Stockholders’ Equity | |||||||||
Stockholders’ equity | 22,867 | 16,361 | |||||||
Total liabilities and stockholders’ equity | $ | 22,867 | 16,579 | ||||||
Condensed Statements of Operations | |||||||||
(In thousands) | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 0 | 0 | ||||||
Expenses | (110 | ) | (37 | ) | |||||
Income tax benefit | 41 | 15 | |||||||
Loss before earnings of subsidiary | (69 | ) | (22 | ) | |||||
Net earnings of subsidiary | 1,075 | 1,171 | |||||||
Net earnings | $ | 1,006 | 1,149 | ||||||
Condensed Statements of Cash Flows | |||||||||
(In thousands) | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Cash flows from operating activities: | |||||||||
Net earnings | $ | 1,006 | 1,149 | ||||||
Adjustments to reconcile net earnings to net cash used in operating activities: | |||||||||
Equity in earnings of subsidiary | (1,075 | ) | (1,171 | ) | |||||
Stock issued as compensation | 32 | 30 | |||||||
Increase (decrease) in other assets | 177 | (233 | ) | ||||||
(Decrease) increase in liabilities | (218 | ) | 218 | ||||||
Net cash used in operating activities | (78 | ) | (7 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from sale of common stock | 4,955 | 0 | |||||||
Proceeds from stock options exercised | 142 | 0 | |||||||
Net cash provided by financing activities | 5,097 | 0 | |||||||
Cash flow from investment activities: | |||||||||
Cash dividend received from bank subsidiary | 300 | 0 | |||||||
Capital infusion in subsidiary | (2,200 | ) | 0 | ||||||
Net cash provided by investing activities | (1,900 | ) | 0 | ||||||
Net decrease in cash | 3,119 | (7 | ) | ||||||
Cash at beginning of the year | 13 | 20 | |||||||
Cash at end of year | $ | 3,132 | 13 | ||||||
Supplemental disclosure of cash flow information-Noncash items: | |||||||||
Net change in accumulated other comprehensive (loss) income of subsidiary, net change in unrealized gain on securities available for sale, net of tax | $ | 369 | (860 | ) | |||||
Stock-based compensation expense of subsidiary | $ | 2 | 3 | ||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Organization | Organization. Prime Meridian Holding Company (the “Holding Company”) owns 100% of the outstanding common stock of Prime Meridian Bank (the “Bank”) (collectively the “Company”). The Holding Company’s primary activity is the operation of the Bank. The Bank is a state (Florida)-chartered commercial bank. The deposit accounts of the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation (“FDIC”). The Bank offers a variety of community banking services to individual and corporate customers through its two banking offices located in Tallahassee, Florida. |
The following is a description of the significant accounting policies and practices followed by the Company, which conform to accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices within the banking industry. | |
Impaired Loans | Impaired Loans. Estimates of fair value for impaired loans is based on the estimated value of the underlying collateral which is determined based on a variety of information, including the use of available appraisals, estimates of market value by licensed appraisers or local real estate brokers and the knowledge and experience of the Bank’s management related to values of equipment or properties in the Bank’s market areas. Management takes into consideration the type, location or occupancy of the equipment or property as well as current economic conditions in the area the property is located in assessing estimates of fair value. Accordingly, fair value estimates for impaired loans are classified as Level 3. |
Use of Estimates | Use of Estimates. In preparing consolidated financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses. |
Principles of Consolidation | Principles of Consolidation. The consolidated financial statements include the accounts of the Holding Company and the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents. For purposes of the statement of cash flows, cash and cash equivalents include cash and balances due from banks, federal funds sold and interest-bearing deposits, all of which have original maturities of less than ninety days. |
At December 31, 2014 and 2013, the Company was required by law or regulation to maintain cash reserves with the Federal Reserve Bank, in accounts with other banks or in the vault in the amounts of $1,026,000 and $986,000, respectively. | |
Securities | Securities. Securities may be classified as either trading, held to maturity or available for sale. Trading securities are held principally for resale and recorded at their fair values. Unrealized gains and losses on trading securities are included immediately in earnings. Held-to-maturity securities are those which the Company has the positive intent and ability to hold to maturity and are reported at amortized cost. Available-for-sale securities consist of securities not classified as trading securities or as held-to-maturity securities. Unrealized holding gains and losses on available-for-sale securities are excluded from operations and reported in accumulated other comprehensive income (loss). Gains and losses on the sale of available-for-sale securities are recorded on the trade date determined using the specific-identification method. Premiums and discounts on securities available for sale are recognized in interest income using the interest method over the period to maturity. |
Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. | |
Loans Held for Sale | Loans Held for Sale. Loans held for sale include mortgage loans and Small Business Administration (“SBA”) loans originated which are intended for sale in the secondary market and are carried at the lower of book value or estimated fair value in the aggregate. Gains on loans held for sale are reported on the Consolidated Statement of Earnings under noninterest income in either gain on sale of SBA loans or mortgage banking revenue. At December 31, 2014 loans held for sale were $1,871,000, compared to $150,000 at December 31, 2013. |
Loans | Loans. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal adjusted for any charge-offs, the allowance for loan losses, and any deferred fees or costs. |
Commitment and loan origination fees are capitalized and certain direct origination costs are deferred. Both are recognized as an adjustment of the yield of the related loan. | |
The accrual of interest on all portfolio classes is discontinued at the time the loan is ninety-days delinquent unless the loan is well collateralized and in process of collection. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or loans that are charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |
Allowance for Loan Losses | Allowance for Loan Losses. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management confirms that a loan balance cannot be collected. Subsequent recoveries, if any, are credited to the allowance. There were no changes in the Company’s accounting policies or methodology during the year ended December 31, 2014. |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such loans, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans and is based on the following factors: | |
The historical loss component of the allowance is determined by losses recognized by portfolio segment over the preceding thirty-six months. This is supplemented by the risks for each portfolio segment. Risk factors impacting loans in each of the portfolio segments include any deterioration of property values, reduced consumer and business spending as a result of unemployment and reduced credit availability, and a lack of confidence in the economy. The historical experience is adjusted for the following qualitative factors: (a) changes in lending policies and procedures, risk selection and underwriting standards; (b) changes in national, regional and local economic conditions that affect the collectability of the loan portfolio; (c) changes in the experience, ability and depth of lending management and other relevant staff; (d) changes in the volume and severity of past due loans, nonaccrual loans or loans classified special mention, substandard, doubtful or loss; (e) quality of loan review and Board of Directors oversight; (f) changes in the nature and volume of the loan portfolio and terms of loans; (g) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (h) the effect of other external factors, trends or uncertainties that could affect management’s estimate of probable losses, such as competition and industry conditions. | |
Allowance for Loan Losses, Continued. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for all loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral-dependent. | |
Premises and Equipment | Premises and Equipment. Land is stated at cost. Buildings, leasehold improvements, furniture, fixtures and equipment, and software are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense are computed using the straight-line method over the estimated useful life of each type of asset, or the lease term if shorter. |
Other Real Estate Owned | Other Real Estate Owned. Assets acquired through, or in lieu of, loan foreclosure 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 are carried at the lower of the new cost basis or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in other real estate owned expenses. |
Transfer of Financial Assets | Transfer of Financial Assets. Transfers of financial assets or a participating interest in an entire financial asset 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, (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 does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. A participating interest is a portion of an entire financial asset that (1) conveys proportionate ownership rights with equal priority to each participating interest holder (2) involves no recourse (other than standard representations and warranties) to, or subordination by, any participating interest holder, and (3) does not entitle any participating interest holder to receive cash before any other participating interest holder. |
Off-Balance-Sheet Financial Instruments. | Off-Balance-Sheet Financial Instruments. In the ordinary course of business, the Company has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, construction loans in process, unused lines of credit, standby letters of credit, and guaranteed accounts. Such financial instruments are recorded in the consolidated financial statements when they are funded. |
Income Taxes | Income Taxes. There are two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. |
Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. As of December 31, 2014, management is not aware of any uncertain tax positions that would have a material effect on the Company’s consolidated financial statements. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. | |
The Company recognizes interest and penalties on income taxes as a component of income tax expense. | |
The Company files consolidated income tax returns. Income taxes are allocated to the Holding Company and Bank as if separate income tax returns were filed. | |
Derivative Financial Instruments | Derivative Financial Instruments. Derivative financial instruments are recognized as assets or liabilities in the consolidated balance sheets and measured at fair value. The Company enters into commitments to originate loans whereby the interest-rate on the loan is determined prior to funding (rate lock commitments). Rate-lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. Accordingly, such commitments, along with any related fees received from potential borrowers, are recorded at fair value in derivative assets or liabilities, with changes in fair value recorded in the net gain or loss on sale of mortgage loans. Fair value is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. |
Fair Value Measurements | Fair Value Measurements. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. GAAP has established a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy describes three levels of inputs that may be used to measure fair value: |
Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | |
Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Valuations may be obtained from, or corroborated by, third-party pricing services. | |
Level 3: Unobservable inputs to measure fair value of assets and liabilities for which there is little, if any market activity at the measurement date, using reasonable inputs and assumptions based upon the best information at the time, to the extent that inputs are available without undue cost and effort. | |
The following describes valuation methodologies used for assets measured at fair value: | |
Securities Available for Sale | Securities Available for Sale. Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds, certain mortgage products and exchange-traded equities. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which would generally be classified within Level 2 of the valuation hierarchy, include U.S. Government agency securities, municipal securities and mortgage-backed securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Securities classified within Level 3 include certain asset-backed securities. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments. The following methods and assumptions were used by the Company in estimating fair values of financial instruments: |
Cash and Cash Equivalents. The carrying amounts of cash and cash equivalents approximate their fair value (Level 1). | |
Securities. Fair values for securities are based on the framework for measuring fair value (Level 2). | |
Loans. For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. Fair values for fixed-rate mortgage (e.g. one-to-four family residential), commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for nonperforming loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable (Level 3). | |
Federal Home Loan Bank Stock. The fair value of the Company’s investment in Federal Home Loan Bank stock is based on its redemption value (Level 3). | |
Accrued Interest Receivable. The carrying amounts of accrued interest approximate their fair values (Level 3). | |
Deposits. The fair values disclosed for demand, NOW, money-market and savings deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). Fair values for fixed-rate time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregated expected monthly maturities of time deposits (Level 3). | |
Other Borrowings. The carrying amounts of other borrowings approximate their fair value (Level 3). | |
Off-Balance-Sheet Instruments. Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing (Level 3). | |
Advertising | Advertising. The Company expenses all media advertising as incurred. |
Share-Based Compensation | Share-Based Compensation. The Company expenses the fair value of any stock options granted. The Company recognizes share-based compensation in the statements of earnings as the options vest. |
Comprehensive Income | Comprehensive Income. GAAP require that recognized revenue, expenses, gains and losses be included in earnings. 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 consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. |
Mortgage Banking Revenue | Mortgage Banking Revenue. Mortgage banking revenue includes gains on the sale of mortgage loans originated for sale. The Company recognizes mortgage banking revenue from mortgage loans originated in the consolidated statement of earnings upon sale of the loans. |
Recent Accounting Standards Update | Recent Accounting Standards Update. 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, which is intended to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate recognized. These amendments clarify that an insubstance 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: (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure; or (b) 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. Additional disclosures are required. The amendments are effective beginning January 1, 2015. Upon adoption, this guidance is not expected to impact the Bank’s financial statements. |
Recent Regulatory Developments | Recent Regulatory Developments |
Basel III Rules. On July 2, 2013, the Federal Reserve Board (“FRB”) approved the final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks. Under the final rules, minimum requirements will increase for both the quantity and quality of capital held by the Bank. The rules include a new common equity Tier 1 capital to risk-weighted assets ratio of 4.5% and a common equity Tier 1 capital conservation buffer of 2.5% of risk-weighted assets. The final rules also raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0% and require a minimum leverage ratio of 4.0%. The final rules also implement strict eligibility criteria for regulatory capital instruments. On July 9, 2013, the FDIC also approved, as an interim final rule, the regulatory capital requirements for U.S. banks, following the actions of the FRB. The FDIC’s rule is identical in substance to the final rules issued by the FRB. | |
The phase-in period for the final rules began for the Bank on January 1, 2015, with full compliance with all of the final rule’s requirements phased in over a multi-year schedule. The Bank is currently evaluating the provisions of the final rules and their expected impact on the Bank. |
Securities_Available_for_Sale_
Securities Available for Sale (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||
Summary of Carrying Amount and Fair Values of Securities | Securities have been classified according to management’s intention. The carrying amount of securities and their fair values are summarized as follows (in thousands): | ||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||
Gains | Losses | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 6,943 | 19 | (99 | ) | 6,863 | |||||||||||
Municipal securities | 9,497 | 113 | (79 | ) | 9,531 | ||||||||||||
Mortgage-backed securities | 25,870 | 228 | (95 | ) | 26,003 | ||||||||||||
$ | 42,310 | 360 | (273 | ) | 42,397 | ||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | 7,290 | 8 | (329 | ) | 6,969 | ||||||||||||
Municipal securities | 9,139 | 14 | (269 | ) | 8,884 | ||||||||||||
Mortgage-backed securities | 26,225 | 253 | (198 | ) | 26,280 | ||||||||||||
Asset-backed securities | 1,916 | 22 | 0 | 1,938 | |||||||||||||
$ | 44,570 | 297 | (796 | ) | 44,071 | ||||||||||||
Securities Available for Sale Measured at Fair Value on Recurring Basis | Securities available for sale measured at fair value on a recurring basis are summarized below (in thousands): | ||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||
Fair | Quoted | Significant | Significant | ||||||||||||||
Value | Prices | Other | Unobservable | ||||||||||||||
In Active | Observable | Inputs | |||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||
Identical | (Level 2) | ||||||||||||||||
Assets | |||||||||||||||||
(Level 1) | |||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 6,863 | 0 | 6,863 | 0 | ||||||||||||
Municipal securities | 9,531 | 0 | 9,531 | 0 | |||||||||||||
Mortgage-backed securities | 26,003 | 0 | 26,003 | 0 | |||||||||||||
$ | 42,397 | 0 | 42,397 | 0 | |||||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | 6,969 | 0 | 6,969 | 0 | |||||||||||||
Municipal securities | 8,884 | 0 | 8,884 | 0 | |||||||||||||
Mortgage-backed securities | 26,280 | 0 | 26,280 | 0 | |||||||||||||
Asset-backed securities | 1,938 | 0 | 1,938 | 0 | |||||||||||||
$ | 44,071 | 0 | 44,071 | 0 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis | The table below presents a reconciliation for asset-backed securities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2013. | ||||||||||||||||
Balance, beginning of year | $ | 1,899 | |||||||||||||||
Total gains or (losses) - realized/unrealized- | |||||||||||||||||
Transfer into/out of Level 3 | (1,899 | ) | |||||||||||||||
Balance, end of year | $ | 0 | |||||||||||||||
Scheduled Maturities of Securities with Fair Value and Amortized Cost | The scheduled maturities of securities are as follows (in thousands): | ||||||||||||||||
Amortized | Fair | ||||||||||||||||
Cost | Value | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
Due in one to five years | $ | 2,303 | 2,312 | ||||||||||||||
Due five to ten years | 6,908 | 6,834 | |||||||||||||||
Due after ten years | 7,229 | 7,248 | |||||||||||||||
Mortgage-backed securities | 25,870 | 26,003 | |||||||||||||||
$ | 42,310 | 42,397 | |||||||||||||||
Summary of Sales of Securities Available for Sale | The following summarizes sales of securities available for sale (in thousands): | ||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Proceeds received from sales | $ | 4,587 | 1,498 | ||||||||||||||
Gross gains | 60 | 14 | |||||||||||||||
Gross losses | 0 | 0 | |||||||||||||||
Net gain from sale of securities | $ | 60 | 14 | ||||||||||||||
Summary of Securities in Continuous Unrealized Loss Position | Securities with unrealized losses aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, are as follows (in thousands): | ||||||||||||||||
Less Than Twelve | More Than Twelve | ||||||||||||||||
Months | Months | ||||||||||||||||
Gross | Fair | Gross | Fair | ||||||||||||||
Unrealized | Value | Unrealized | Value | ||||||||||||||
Losses | Losses | ||||||||||||||||
At December 31, 2014: | |||||||||||||||||
U.S. Government agency securities | $ | 0 | 0 | $ | (99 | ) | 5,945 | ||||||||||
Municipal securities | (2 | ) | 269 | (77 | ) | 3,026 | |||||||||||
Mortgage-backed securities | (47 | ) | 8,250 | (48 | ) | 1,705 | |||||||||||
$ | (49 | ) | 8,519 | $ | (224 | ) | 10,676 | ||||||||||
At December 31, 2013: | |||||||||||||||||
U.S. Government agency securities | (329 | ) | 5,984 | 0 | 0 | ||||||||||||
Municipal securities | (269 | ) | 5,758 | 0 | 0 | ||||||||||||
Mortgage-backed securities | (198 | ) | 12,326 | 0 | 0 | ||||||||||||
$ | (796 | ) | 24,068 | $ | 0 | 0 | |||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Segments of Loans | The segments and classes of loans are as follows (in thousands): | ||||||||||||||||||||||||||||||||
At December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
Real estate mortgage loans: | |||||||||||||||||||||||||||||||||
Commercial | $ | 52,661 | 44,796 | ||||||||||||||||||||||||||||||
Residential and home equity | 51,858 | 38,571 | |||||||||||||||||||||||||||||||
Construction | 15,876 | 12,933 | |||||||||||||||||||||||||||||||
Total real estate mortgage loans | 120,395 | 96,300 | |||||||||||||||||||||||||||||||
Commercial loans | 30,755 | 24,651 | |||||||||||||||||||||||||||||||
Consumer and other loans | 2,877 | 2,072 | |||||||||||||||||||||||||||||||
Total loans | 154,027 | 123,023 | |||||||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Net deferred loan fees | (60 | ) | (69 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (2,098 | ) | (1,734 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 151,869 | 121,220 | ||||||||||||||||||||||||||||||
Summary of Changes in Allowance for Loan Losses | An analysis of the change in the allowance for loan losses follows (in thousands): | ||||||||||||||||||||||||||||||||
Real Estate Mortgage Loans | |||||||||||||||||||||||||||||||||
Commercial | Residential | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
and | and | ||||||||||||||||||||||||||||||||
Home | Other | ||||||||||||||||||||||||||||||||
Equity | Loans | ||||||||||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 604 | 545 | 175 | 387 | 23 | 1,734 | ||||||||||||||||||||||||||
Provision for loan losses | 502 | 146 | 36 | 30 | 33 | 747 | |||||||||||||||||||||||||||
Net (charge-offs) recoveries | (404 | ) | 0 | 0 | 36 | (15 | ) | (383 | ) | ||||||||||||||||||||||||
Ending balance | $ | 702 | 691 | 211 | 453 | 41 | 2,098 | ||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 0 | 0 | 0 | 229 | 8 | 237 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 0 | 0 | 0 | 92 | 6 | 98 | ||||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 52,661 | 51,858 | 15,876 | 30,526 | 2,869 | 153,790 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 702 | 691 | 211 | 361 | 35 | 2,000 | ||||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
Beginning balance | 352 | 226 | 237 | 405 | 23 | 1,243 | |||||||||||||||||||||||||||
Provision (credit) for loan losses | 252 | 319 | (15 | ) | (44 | ) | 1 | 513 | |||||||||||||||||||||||||
Net (charge-offs) recoveries | 0 | 0 | (47 | ) | 26 | (1 | ) | (22 | ) | ||||||||||||||||||||||||
Ending balance | $ | 604 | 545 | 175 | 387 | 23 | 1,734 | ||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 0 | 36 | 0 | 346 | 0 | 382 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 0 | 23 | 0 | 82 | 0 | 105 | ||||||||||||||||||||||||||
Collectively evaluated for impairment: | |||||||||||||||||||||||||||||||||
Recorded investment | $ | 44,796 | 38,685 | 12,933 | 24,305 | 2,072 | 122,791 | ||||||||||||||||||||||||||
Balance in allowance for loan losses | $ | 604 | 522 | 175 | 305 | 23 | 1,629 | ||||||||||||||||||||||||||
Summary of Loan Credit Quality | The following summarizes the loan credit quality (in thousands): | ||||||||||||||||||||||||||||||||
Real Estate Mortgage Loans | |||||||||||||||||||||||||||||||||
Commercial | Residential | Construction | Commercial | Consumer | Total | ||||||||||||||||||||||||||||
and | Loans | and | |||||||||||||||||||||||||||||||
Home | Other | ||||||||||||||||||||||||||||||||
Equity | Loans | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade: | |||||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 50,654 | 47,357 | 15,714 | 30,006 | 2,801 | 146,532 | ||||||||||||||||||||||||||
Special mention | 0 | 3,065 | 154 | 520 | 68 | 3,807 | |||||||||||||||||||||||||||
Substandard | 2,007 | 1,436 | 8 | 229 | 8 | 3,688 | |||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Loss | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total | $ | 52,661 | 51,858 | 15,876 | 30,755 | 2,877 | 154,027 | ||||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | 40,901 | 36,461 | 12,528 | 23,919 | 1,914 | 115,723 | |||||||||||||||||||||||||||
Special mention | 1,804 | 1,346 | 396 | 509 | 38 | 4,093 | |||||||||||||||||||||||||||
Substandard | 2,091 | 764 | 9 | 223 | 120 | 3,207 | |||||||||||||||||||||||||||
Doubtful | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Loss | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||
Total | $ | 44,796 | 38,571 | 12,933 | 24,651 | 2,072 | 123,023 | ||||||||||||||||||||||||||
Summary of Past Due Loans | Age analysis of past-due loans at December 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||||||||||||||
Accruing Loans | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Nonaccrual | Total | |||||||||||||||||||||||||||
Days | Days | Than 90 | Past | Loans | Loans | ||||||||||||||||||||||||||||
Past Due | Past Due | Days | Due | ||||||||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||||||
Commercial | $ | 0 | 0 | 0 | 0 | 52,661 | 0 | 52,661 | |||||||||||||||||||||||||
Residential and home equity | 0 | 0 | 0 | 0 | 51,858 | 0 | 51,858 | ||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 15,876 | 0 | 15,876 | ||||||||||||||||||||||||||
Commercial | 18 | 0 | 0 | 18 | 30,566 | 171 | 30,755 | ||||||||||||||||||||||||||
Consumer/other | 0 | 0 | 0 | 0 | 2,877 | 0 | 2,877 | ||||||||||||||||||||||||||
Total | $ | 18 | 0 | 0 | 0 | 153,838 | 171 | 154,027 | |||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Real estate mortgage: | |||||||||||||||||||||||||||||||||
Commercial | 0 | 0 | 0 | 0 | 44,796 | 0 | 44,796 | ||||||||||||||||||||||||||
Residential and home equity | 0 | 0 | 0 | 0 | 38,571 | 0 | 38,571 | ||||||||||||||||||||||||||
Construction | 0 | 0 | 0 | 0 | 12,933 | 0 | 12,933 | ||||||||||||||||||||||||||
Commercial | 38 | 0 | 0 | 0 | 24,613 | 0 | 24,651 | ||||||||||||||||||||||||||
Consumer/other | 0 | 0 | 0 | 0 | 2,072 | 0 | 2,072 | ||||||||||||||||||||||||||
Total | $ | 38 | 0 | 0 | 0 | 122,985 | 0 | 123,023 | |||||||||||||||||||||||||
Summary of Impaired Loans | The following summarizes the amount of impaired loans (in thousands): | ||||||||||||||||||||||||||||||||
With No Related | With an Allowance Recorded | Total | |||||||||||||||||||||||||||||||
Allowance Recorded | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Recorded | Unpaid | Related | Recorded | Unpaid | Related | ||||||||||||||||||||||||||
Investment | Contractual | Investment | Contractual | Allowance | Investment | Contractual | Allowance | ||||||||||||||||||||||||||
Principal | Principal | Principal | |||||||||||||||||||||||||||||||
Balance | Balance | Balance | |||||||||||||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||||||||||||||
Commercial loans | $ | 0 | 0 | 229 | 229 | 92 | 229 | 229 | 92 | ||||||||||||||||||||||||
Consumer | 0 | 0 | 8 | 8 | 6 | 8 | 8 | 6 | |||||||||||||||||||||||||
Total | $ | 0 | 0 | 237 | 237 | 98 | 237 | 237 | 98 | ||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Residential and home equity | $ | 0 | 0 | 36 | 36 | 23 | 36 | 36 | 23 | ||||||||||||||||||||||||
Commercial loans | 27 | 27 | 319 | 319 | 82 | 346 | 346 | 82 | |||||||||||||||||||||||||
Total | $ | 27 | 27 | 355 | 355 | 105 | 382 | 382 | 105 | ||||||||||||||||||||||||
Summary of Average Net Investment in Impaired Loans and Interest Income Recognized and Received on Impaired Loans | The average net investment in impaired loans and interest income recognized and received on impaired loans by loan class are as follows (in thousands): | ||||||||||||||||||||||||||||||||
Average | Interest | Interest | |||||||||||||||||||||||||||||||
Recorded | Income | Income | |||||||||||||||||||||||||||||||
Investment | Recognized | Received | |||||||||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||||||||||
Commercial | $ | 244 | 14 | 14 | |||||||||||||||||||||||||||||
Consumer | 8 | 1 | 1 | ||||||||||||||||||||||||||||||
Total | $ | 252 | 15 | 15 | |||||||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||||||||||
Residential and home equity | 36 | 3 | 3 | ||||||||||||||||||||||||||||||
Commercial | 298 | 23 | 23 | ||||||||||||||||||||||||||||||
Total | $ | 334 | 26 | 26 | |||||||||||||||||||||||||||||
Summary of Impaired Collateral-dependent Loans Measured at Fair Value on Nonrecurring Basis | There were no loans measured at fair value on a nonrecurring basis at December 31, 2013. Impaired collateral-dependent loans measured at fair value on a nonrecurring basis by loan class at December 31, 2014 are as follows (in thousands): | ||||||||||||||||||||||||||||||||
Losses | |||||||||||||||||||||||||||||||||
At Year End | Recorded | ||||||||||||||||||||||||||||||||
Fair | Total | During the | |||||||||||||||||||||||||||||||
Value | Level 1 | Level 2 | Level 3 | Losses | Year | ||||||||||||||||||||||||||||
Commercial loans | $ | 118 | 0 | 0 | 118 | 20 | 20 | ||||||||||||||||||||||||||
Consumer loans | 2 | 0 | 0 | 2 | 6 | 6 | |||||||||||||||||||||||||||
Total | 120 | 0 | 0 | 120 | 26 | 26 | |||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Premises and Equipment | A summary of premises and equipment follows (in thousands): | ||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Land | $ | 400 | 400 | ||||||
Building | 2,399 | 2,387 | |||||||
Leasehold improvements | 364 | 364 | |||||||
Furniture, fixtures and equipment | 778 | 706 | |||||||
Computer and software | 1,399 | 1,276 | |||||||
Total, at cost | 5,340 | 5,133 | |||||||
Less accumulated depreciation and amortization | (1,777 | ) | (1,376 | ) | |||||
Premises and equipment, net | $ | 3,563 | 3,757 | ||||||
Schedule of Future Minimum Rental Commitments | Future minimum rental commitments under these noncancelable leases are as follows (in thousands): | ||||||||
Year Ending December 31, | Amount | ||||||||
2015 | $ | 85 | |||||||
2016 | 85 | ||||||||
2017 | 91 | ||||||||
2018 | 98 | ||||||||
$ | 359 | ||||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Banking and Thrift [Abstract] | |||||
Schedule of Maturities of Time Deposits | A schedule of maturities of time deposits follows (in thousands): | ||||
Year Ending | Amount | ||||
December 31, | |||||
2015 | $ | 10,727 | |||
2016 | 7,420 | ||||
2017 | 510 | ||||
$ | 18,657 | ||||
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Text Block [Abstract] | |||||||||
Summary of Other Borrowings | A summary of other borrowings follows ($ in thousands): | ||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Balance outstanding at year-end | $ | 2,699 | 5,719 | ||||||
Average balance outstanding during the year | 3,592 | 5,789 | |||||||
Average interest rate paid | 1 | % | 1 | % | |||||
Maximum amount outstanding at any month-end during year | 5,733 | 5,813 | |||||||
Pledged securities | 3,558 | 5,882 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||
Components of Income Taxes | The components of the income taxes are as follows (in thousands): | ||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 560 | 658 | ||||||||||||||
State | 107 | 119 | |||||||||||||||
Total current | 667 | 777 | |||||||||||||||
Deferred: | |||||||||||||||||
Federal | (123 | ) | (146 | ) | |||||||||||||
State | (30 | ) | (29 | ) | |||||||||||||
Total deferred | (153 | ) | (175 | ) | |||||||||||||
Total income taxes | $ | 514 | 602 | ||||||||||||||
Reconciliation of statutory Federal Income Tax Rate and Effective Tax Rates | The reasons for the difference between the statutory Federal income tax rate of 34% and the effective tax rates are summarized as follows (dollars in thousands): | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | % of | Amount | % of | ||||||||||||||
Pretax | Pretax | ||||||||||||||||
Earnings | Earnings | ||||||||||||||||
Income taxes at statutory rate | $ | 517 | 34 | % | $ | 595 | 34 | % | |||||||||
Increase (decrease) resulting from: | |||||||||||||||||
State taxes, net of Federal tax benefit | 51 | 3.3 | 60 | 3.4 | |||||||||||||
Tax-exempt income | (42 | ) | (2.7 | ) | (30 | ) | (1.7 | ) | |||||||||
Other nondeductible expenses | (12 | ) | (0.8 | ) | (23 | ) | (1.3 | ) | |||||||||
$ | 514 | 33.8 | % | $ | 602 | 34.4 | % | ||||||||||
Summary of Tax Effects of Temporary Differences on Deferred Tax Assets and Liabilities | Tax effects of temporary differences that give rise to the deferred tax assets and liabilities are as follows (in thousands): | ||||||||||||||||
At December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Allowance for loan losses | $ | 710 | 517 | ||||||||||||||
Organizational and start-up costs | 116 | 130 | |||||||||||||||
Stock-based compensation | 18 | 18 | |||||||||||||||
Unrealized loss on securities available for sale | 0 | 184 | |||||||||||||||
Other | 60 | 63 | |||||||||||||||
Deferred tax assets | 904 | 912 | |||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Accrual to cash conversion | (139 | ) | (145 | ) | |||||||||||||
Deferred loan costs | (109 | ) | (88 | ) | |||||||||||||
Premises and equipment | (261 | ) | (253 | ) | |||||||||||||
Unrealized gains on securities available for sale | (33 | ) | 0 | ||||||||||||||
Deferred tax liabilities | (542 | ) | (486 | ) | |||||||||||||
Net deferred tax asset (liability) | $ | 362 | 426 | ||||||||||||||
OffBalanceSheet_Financial_Inst1
Off-Balance-Sheet Financial Instruments (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Text Block [Abstract] | |||||
Summary of Contractual Amounts of Financial Instruments | loans with a market interest rate when funded. A summary of the contractual amounts of the Company’s financial instruments with off-balance-sheet risk at December 31, 2014 are as follows (in thousands): | ||||
Commitments to extend credit | $ | 2,508 | |||
Construction loans in process | $ | 7,265 | |||
Unused lines of credit | $ | 23,020 | |||
Standby letters of credit | $ | 1,225 | |||
Guaranteed Accounts | $ | 113 | |||
Stock_Option_Plan_Tables
Stock Option Plan (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Summary of Stock Option Activity | A summary of the activity in the Company’s Stock Option Plan is as follows: | ||||||||||||||||
Number of | Weighted- | Weighted- | Aggregate | ||||||||||||||
Options | Average | Average | Intrinsic | ||||||||||||||
Exercise | Remaining | Value | |||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
Outstanding at December 31, 2012 | 136,000 | $ | 10 | ||||||||||||||
Options granted | 2,500 | 10.72 | |||||||||||||||
Options forfeited | (4,500 | ) | 10 | ||||||||||||||
Outstanding at December 31, 2013 | 134,000 | 10.01 | |||||||||||||||
Options exercised | (14,200 | ) | 10 | ||||||||||||||
Options forfeited | (11,400 | ) | $ | 10 | |||||||||||||
Outstanding at December 31, 2014 | 108,400 | $ | 10.01 | 4.2 years | |||||||||||||
Exercisable at December 31, 2014 | 105,400 | 10 | 4.1 years | $ | 263,500 | ||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Related Party Transactions [Abstract] | |||||||||
Summary of Activity of Loans to Related Parties | The Company enters into transactions during the ordinary course of business with officers and directors of the Company and entities in which they hold a significant financial interest. The following summarizes these transactions (in thousands): | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Loans: | |||||||||
Beginning balance | $ | 3,734 | 3,558 | ||||||
Originated during the year | 885 | 354 | |||||||
Principal repayments | (1,605 | ) | (178 | ) | |||||
Ending balance | $ | 3,014 | 3,734 | ||||||
Deposits at year end | $ | 16,510 | 13,292 | ||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The approximate carrying amounts and estimated fair values of the Company’s financial instruments are as follows (in thousands): | ||||||||||||||||||
At December 31, | |||||||||||||||||||
2014 | 2013 | ||||||||||||||||||
Level | Carrying | Fair | Carrying | Fair | |||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||
Financial assets: | |||||||||||||||||||
Cash and cash equivalents | 1 | $ | 7,555 | 7,555 | 34,166 | 34,166 | |||||||||||||
Securities available for sale | 2 | 42,397 | 42,397 | 44,071 | 44,071 | ||||||||||||||
Loans held for sale | 3 | 1,871 | 1,923 | 150 | 150 | ||||||||||||||
Loans, net | 3 | 151,869 | 148,588 | 121,220 | 121,947 | ||||||||||||||
Federal Home Loan Bank stock | 3 | 186 | 186 | 204 | 204 | ||||||||||||||
Accrued interest receivable | 3 | 624 | 624 | 516 | 516 | ||||||||||||||
Financial liabilities: | |||||||||||||||||||
Deposits | 3 | 183,971 | 184,057 | 183,365 | 183,435 | ||||||||||||||
Other borrowings | 3 | 2,699 | 2,699 | 5,719 | 5,719 | ||||||||||||||
Off-balance-sheet financial instruments | 3 | 0 | 0 | 0 | 0 |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Schedule of Bank's Actual Capital Amounts and Percentage | The Bank’s actual capital amounts and percentages are also presented in the table ($ in thousands): | ||||||||||||||||||||||||
Actual | For Capital | For Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized | ||||||||||||||||||||||||
Purposes | |||||||||||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Tier I Capital to Average Assets | $ | 19,589 | 9.52 | % | $ | 8,227 | 4 | % | $ | 10,284 | 5 | % | |||||||||||||
Tier I Capital to Risk- Weighted Assets | 19,589 | 12.84 | 6,102 | 4 | 9,154 | 6 | |||||||||||||||||||
Total Capital to Risk- Weighted Assets | 21,498 | 14.09 | 12,206 | 8 | 15,257 | 10 | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Tier I Capital to Average Assets | 16,611 | 8.41 | 7,898 | 4 | 9,872 | 5 | |||||||||||||||||||
Tier I Capital to Risk- Weighted Assets | 16,611 | 12.41 | 5,355 | 4 | 8,033 | 6 | |||||||||||||||||||
Total Capital to Risk- Weighted Assets | 18,286 | 13.66 | 10,711 | 8 | 13,388 | 10 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Common Share | Outstanding stock options are considered dilutive securities for purposes of calculating diluted EPS which was computed using the treasury stock method. (dollars in thousands, except per share amounts): | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Earnings | Weighted- | Per | Earnings | Weighted- | Per | ||||||||||||||||||||
Average | Share | Average | Share | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||
Year Ended December 31: | |||||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net earnings | $ | 1,006 | 1,709,746 | $ | 0.59 | $ | 1,149 | 1,497,737 | $ | 0.77 | |||||||||||||||
Effect of dilutive securities-Incremental shares from assumed conversion of options | 16,916 | 20,881 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net earnings | $ | 1,006 | 1,726,662 | $ | 0.58 | $ | 1,149 | 1,518,618 | $ | 0.76 | |||||||||||||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||
Schedule of Condensed Balance Sheets | Condensed Balance Sheets | ||||||||
(In thousands) | |||||||||
At December 31, | |||||||||
2014 | 2013 | ||||||||
Assets | |||||||||
Cash | $ | 3,132 | 13 | ||||||
Investment in subsidiary | 19,643 | 16,296 | |||||||
Other assets | 92 | 270 | |||||||
Total assets | $ | 22,867 | 16,579 | ||||||
Liabilities- | |||||||||
Accounts payable | 0 | 218 | |||||||
Stockholders’ Equity | |||||||||
Stockholders’ equity | 22,867 | 16,361 | |||||||
Total liabilities and stockholders’ equity | $ | 22,867 | 16,579 | ||||||
Schedule of Condensed Statements of Operations | Condensed Statements of Operations | ||||||||
(In thousands) | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Revenues | $ | 0 | 0 | ||||||
Expenses | (110 | ) | (37 | ) | |||||
Income tax benefit | 41 | 15 | |||||||
Loss before earnings of subsidiary | (69 | ) | (22 | ) | |||||
Net earnings of subsidiary | 1,075 | 1,171 | |||||||
Net earnings | $ | 1,006 | 1,149 | ||||||
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows | ||||||||
(In thousands) | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Cash flows from operating activities: | |||||||||
Net earnings | $ | 1,006 | 1,149 | ||||||
Adjustments to reconcile net earnings to net cash used in operating activities: | |||||||||
Equity in earnings of subsidiary | (1,075 | ) | (1,171 | ) | |||||
Stock issued as compensation | 32 | 30 | |||||||
Increase (decrease) in other assets | 177 | (233 | ) | ||||||
(Decrease) increase in liabilities | (218 | ) | 218 | ||||||
Net cash used in operating activities | (78 | ) | (7 | ) | |||||
Cash flow from financing activities: | |||||||||
Proceeds from sale of common stock | 4,955 | 0 | |||||||
Proceeds from stock options exercised | 142 | 0 | |||||||
Net cash provided by financing activities | 5,097 | 0 | |||||||
Cash flow from investment activities: | |||||||||
Cash dividend received from bank subsidiary | 300 | 0 | |||||||
Capital infusion in subsidiary | (2,200 | ) | 0 | ||||||
Net cash provided by investing activities | (1,900 | ) | 0 | ||||||
Net decrease in cash | 3,119 | (7 | ) | ||||||
Cash at beginning of the year | 13 | 20 | |||||||
Cash at end of year | $ | 3,132 | 13 | ||||||
Supplemental disclosure of cash flow information-Noncash items: | |||||||||
Net change in accumulated other comprehensive (loss) income of subsidiary, net change in unrealized gain on securities available for sale, net of tax | $ | 369 | (860 | ) | |||||
Stock-based compensation expense of subsidiary | $ | 2 | 3 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 02, 2013 | |
Office | |||
Accounting Policies [Line Items] | |||
Percent of outstanding common stock owns | 100.00% | ||
Number of Banking offices | 2 | ||
Cash reserves with the Federal Reserve Bank | $1,026,000 | $986,000 | |
Loans held for sale | $1,871,000 | $150,000 | |
Tax benefit likelihood percentage | 50.00% | ||
Tier 1 capital to risk-weighted assets ratio | 12.84% | 12.41% | |
Minimum leverage ratio | 4.00% | 4.00% | |
Basel III Legislation [Member] | |||
Accounting Policies [Line Items] | |||
Tier 1 capital to risk-weighted assets ratio | 4.50% | ||
Tier 1 capital conservation buffer of risk-weighted assets | 2.50% | ||
Minimum leverage ratio | 4.00% | ||
Basel III Legislation [Member] | Minimum [Member] | |||
Accounting Policies [Line Items] | |||
Tier 1 capital to risk-weighted assets ratio | 4.00% | ||
Basel III Legislation [Member] | Maximum [Member] | |||
Accounting Policies [Line Items] | |||
Tier 1 capital to risk-weighted assets ratio | 6.00% |
Securities_Available_for_Sale_1
Securities Available for Sale - Summary of Carrying Amount and Fair Values of Securities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $42,310 | $44,570 |
Gross Unrealized Gains | 360 | 297 |
Gross Unrealized Losses | -273 | -796 |
Fair Value | 42,397 | 44,071 |
US Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 6,943 | 7,290 |
Gross Unrealized Gains | 19 | 8 |
Gross Unrealized Losses | -99 | -329 |
Fair Value | 6,863 | 6,969 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,497 | 9,139 |
Gross Unrealized Gains | 113 | 14 |
Gross Unrealized Losses | -79 | -269 |
Fair Value | 9,531 | 8,884 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25,870 | 26,225 |
Gross Unrealized Gains | 228 | 253 |
Gross Unrealized Losses | -95 | -198 |
Fair Value | 26,003 | 26,280 |
Asset-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,916 | |
Gross Unrealized Gains | 22 | |
Gross Unrealized Losses | 0 | |
Fair Value | $1,938 |
Securities_Available_for_Sale_2
Securities Available for Sale - Securities Available for Sale Measured at Fair Value on Recurring Basis (Detail) (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] | ||
Fair Value | $42,397 | $44,071 |
US Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,863 | 6,969 |
Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,531 | 8,884 |
Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 26,003 | 26,280 |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,938 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 [Member] | US Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 1 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 42,397 | 44,071 |
Level 2 [Member] | US Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,863 | 6,969 |
Level 2 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 9,531 | 8,884 |
Level 2 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 26,003 | 26,280 |
Level 2 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 1,938 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 [Member] | US Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 [Member] | Municipal Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 [Member] | Mortgage-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Level 3 [Member] | Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $0 |
Securities_Available_for_Sale_3
Securities Available for Sale - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Securities | Securities | |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities transferred in or out of Level 1, Level 2 or Level 3 | $0 | |
Securities transferred out of Level 3 | 1,800,000 | |
Securities measured at fair value on a recurring basis | 42,397,000 | 44,071,000 |
Available-for-sale Securities Pledged as Collateral | 7,054,000 | 8,352,000 |
Number of securities in unrealized loss | 22 | 25 |
Level 3 [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities transferred in or out of Level 1, Level 2 or Level 3 | -1,899,000 | |
Securities measured at fair value on a recurring basis | $0 | $0 |
Securities_Available_for_Sale_4
Securities Available for Sale - Fair Value, Assets Measured on Recurring Basis (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance, beginning of year | $1,899,000 |
Total gains or (losses) - realized/unrealized- | |
Transfer into/out of Level 3 | 0 |
Balance, end of year | 0 |
Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Transfer into/out of Level 3 | ($1,899,000) |
Securities_Available_for_Sale_5
Securities Available for Sale - Scheduled Maturities of Securities with Fair Value and Amortized Cost (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Due in one to five years, Amortized cost | $2,303 | |
Due five to ten years, Amortized cost | 6,908 | |
Due after ten years, Amortized cost | 7,229 | |
Mortgage-backed securities, Amortized cost | 25,870 | |
Total Amortized Cost | 42,310 | |
Due in one to five years, Fair value | 2,312 | |
Due five to ten years, Fair value | 6,834 | |
Due after ten years, Fair value | 7,248 | |
Mortgage-backed securities, Fair value | 26,003 | |
Total Fair Value | $42,397 | $44,071 |
Securities_Available_for_Sale_6
Securities Available for Sale - Summary of Sales of Securities Available for Sale (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Proceeds received from sales | $4,587 | $1,498 |
Gross gains | 60 | 14 |
Gross losses | 0 | 0 |
Net gain from sale of securities | $60 | $14 |
Securities_Available_for_Sale_7
Securities Available for Sale - Summary of Securities in Continuous Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | ($49) | ($796) |
Fair Value, Less Than Twelve Months | 8,519 | 24,068 |
Gross Unrealized Losses, More Than Twelve Months | -224 | 0 |
Fair Value, More Than Twelve Months | 10,676 | 0 |
US Government Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | 0 | -329 |
Fair Value, Less Than Twelve Months | 0 | 5,984 |
Gross Unrealized Losses, More Than Twelve Months | -99 | 0 |
Fair Value, More Than Twelve Months | 5,945 | 0 |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | -2 | -269 |
Fair Value, Less Than Twelve Months | 269 | 5,758 |
Gross Unrealized Losses, More Than Twelve Months | -77 | 0 |
Fair Value, More Than Twelve Months | 3,026 | 0 |
Mortgage-backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Gross Unrealized Losses, Less Than Twelve Months | -47 | -198 |
Fair Value, Less Than Twelve Months | 8,250 | 12,326 |
Gross Unrealized Losses, More Than Twelve Months | -48 | 0 |
Fair Value, More Than Twelve Months | $1,705 | $0 |
Loans_Segments_of_Loans_Detail
Loans - Segments of Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $154,027 | $123,023 | |
Net deferred loan fees | -60 | -69 | |
Allowance for loan losses | -2,098 | -1,734 | -1,243 |
Loans, net | 151,869 | 121,220 | |
Commercial Real Estate Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 52,661 | 44,796 | |
Allowance for loan losses | -702 | -604 | -352 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 51,858 | 38,571 | |
Allowance for loan losses | -691 | -545 | -226 |
Construction Real Estate Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 15,876 | 12,933 | |
Allowance for loan losses | -211 | -175 | -237 |
Real Estate Mortgage Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 120,395 | 96,300 | |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 30,755 | 24,651 | |
Allowance for loan losses | -453 | -387 | -405 |
Consumer and Other Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 2,877 | 2,072 | |
Allowance for loan losses | ($41) | ($23) | ($23) |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Segment | ||
SecurityLoan | ||
Financing Receivable, Impaired [Line Items] | ||
Number of loan portfolio | 3 | |
Number of loan portfolio class | 5 | |
Description of interest rate of loans | Fixed for five years or less after which they adjust based upon a predetermined spread over an index. At times, a rate may be fixed for longer than five years. | |
Financing receivable, recorded investment, 30 to 59 days past due | 1 | |
Financing receivable, recorded investment, 90 days past due and still accruing | 0 | |
Financing Receivable, recorded investment, nonaccrual status | 2 | |
Impaired Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Loans measured at fair value on a nonrecurring basis | $0 | |
Minimum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 3 years | |
Impairment valuation loan limit | 500,000 | |
Maximum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 5 years | |
Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Number of loan portfolio class | 3 | |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Period 1 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period of secondary market mortgage fixed rate | 15 years | |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Period 1 [Member] | Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period of portfolio mortgage adjustable rate | 1 year | |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Period 2 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period of secondary market mortgage fixed rate | 30 years | |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Period 2 [Member] | Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period of portfolio mortgage adjustable rate | 3 years | |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Period 3 [Member] | Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Period of portfolio mortgage adjustable rate | 5 years | |
Construction Real Estate Mortgage Loans [Member] | Minimum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 1 year | |
Construction Real Estate Mortgage Loans [Member] | Maximum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 2 years | |
Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Description of interest rate of loans | Equipment loans generally have a term of five years or less and may have a fixed or variable rate | |
Term Loan [Member] | Minimum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 1 year | |
Term Loan [Member] | Maximum [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Maturity period of loan | 5 years |
Loans_Summary_of_Changes_in_Al
Loans - Summary of Changes in Allowance for Loan Losses (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $1,734 | $1,243 |
Provision (credit) for loan losses | 747 | 513 |
Net (charge-offs) recoveries | -383 | -22 |
Ending balance | 2,098 | 1,734 |
Individually evaluated for impairment: | ||
Recorded investment | 237 | 382 |
Balance in allowance for loan losses | 98 | 105 |
Collectively evaluated for impairment: | ||
Recorded investment | 153,790 | 122,791 |
Balance in allowance for loan losses | 2,000 | 1,629 |
Commercial Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 604 | 352 |
Provision (credit) for loan losses | 502 | 252 |
Net (charge-offs) recoveries | -404 | 0 |
Ending balance | 702 | 604 |
Individually evaluated for impairment: | ||
Recorded investment | 0 | 0 |
Balance in allowance for loan losses | 0 | 0 |
Collectively evaluated for impairment: | ||
Recorded investment | 52,661 | 44,796 |
Balance in allowance for loan losses | 702 | 604 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 545 | 226 |
Provision (credit) for loan losses | 146 | 319 |
Net (charge-offs) recoveries | 0 | 0 |
Ending balance | 691 | 545 |
Individually evaluated for impairment: | ||
Recorded investment | 0 | 36 |
Balance in allowance for loan losses | 0 | 23 |
Collectively evaluated for impairment: | ||
Recorded investment | 51,858 | 38,685 |
Balance in allowance for loan losses | 691 | 522 |
Construction Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 175 | 237 |
Provision (credit) for loan losses | 36 | -15 |
Net (charge-offs) recoveries | 0 | -47 |
Ending balance | 211 | 175 |
Individually evaluated for impairment: | ||
Recorded investment | 0 | 0 |
Balance in allowance for loan losses | 0 | 0 |
Collectively evaluated for impairment: | ||
Recorded investment | 15,876 | 12,933 |
Balance in allowance for loan losses | 211 | 175 |
Commercial Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 387 | 405 |
Provision (credit) for loan losses | 30 | -44 |
Net (charge-offs) recoveries | 36 | 26 |
Ending balance | 453 | 387 |
Individually evaluated for impairment: | ||
Recorded investment | 229 | 346 |
Balance in allowance for loan losses | 92 | 82 |
Collectively evaluated for impairment: | ||
Recorded investment | 30,526 | 24,305 |
Balance in allowance for loan losses | 361 | 305 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 23 | 23 |
Provision (credit) for loan losses | 33 | 1 |
Net (charge-offs) recoveries | -15 | -1 |
Ending balance | 41 | 23 |
Individually evaluated for impairment: | ||
Recorded investment | 8 | 0 |
Balance in allowance for loan losses | 6 | 0 |
Collectively evaluated for impairment: | ||
Recorded investment | 2,869 | 2,072 |
Balance in allowance for loan losses | $35 | $23 |
Loans_Summary_of_Loan_Credit_Q
Loans - Summary of Loan Credit Quality (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | $154,027 | $123,023 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 146,532 | 115,723 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 3,807 | 4,093 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 3,688 | 3,207 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Commercial Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 52,661 | 44,796 |
Commercial Real Estate Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 50,654 | 40,901 |
Commercial Real Estate Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 1,804 |
Commercial Real Estate Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 2,007 | 2,091 |
Commercial Real Estate Mortgage Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Commercial Real Estate Mortgage Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 51,858 | 38,571 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 47,357 | 36,461 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 3,065 | 1,346 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 1,436 | 764 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Construction Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 15,876 | 12,933 |
Construction Real Estate Mortgage Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 15,714 | 12,528 |
Construction Real Estate Mortgage Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 154 | 396 |
Construction Real Estate Mortgage Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 8 | 9 |
Construction Real Estate Mortgage Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Construction Real Estate Mortgage Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 30,755 | 24,651 |
Commercial Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 30,006 | 23,919 |
Commercial Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 520 | 509 |
Commercial Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 229 | 223 |
Commercial Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Commercial Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 2,877 | 2,072 |
Consumer and Other Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 2,801 | 1,914 |
Consumer and Other Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 68 | 38 |
Consumer and Other Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 8 | 120 |
Consumer and Other Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | 0 | 0 |
Consumer and Other Loans [Member] | Loss [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans by credit quality | $0 | $0 |
Loans_Summary_of_Past_Due_Loan
Loans - Summary of Past Due Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | $18 | $38 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 0 | 0 |
Current | 153,838 | 122,985 |
Nonaccrual Loans | 171 | 0 |
Total Loans | 154,027 | 123,023 |
Commercial Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | 0 | 0 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 0 | 0 |
Current | 52,661 | 44,796 |
Nonaccrual Loans | 0 | 0 |
Total Loans | 52,661 | 44,796 |
Residential and Home Equity Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | 0 | 0 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 0 | 0 |
Current | 51,858 | 38,571 |
Nonaccrual Loans | 0 | 0 |
Total Loans | 51,858 | 38,571 |
Construction Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | 0 | 0 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 0 | 0 |
Current | 15,876 | 12,933 |
Nonaccrual Loans | 0 | 0 |
Total Loans | 15,876 | 12,933 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | 18 | 38 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 18 | 0 |
Current | 30,566 | 24,613 |
Nonaccrual Loans | 171 | 0 |
Total Loans | 30,755 | 24,651 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Accruing Loans 30-59 Days Past Due | 0 | 0 |
Accruing Loans 60-89 Days Past Due | 0 | 0 |
Accruing Loans Greater Than 90 Days Past Due | 0 | 0 |
Accruing Loans Total Past Due | 0 | 0 |
Current | 2,877 | 2,072 |
Nonaccrual Loans | 0 | 0 |
Total Loans | $2,877 | $2,072 |
Loans_Summary_of_Impaired_Loan
Loans - Summary of Impaired Loans (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ||
With No Related Allowing Recorded Investment | $0 | $27 |
With No Related Allowing Unpaid Contractual Principal Balance | 0 | 27 |
With an Allowance Recorded Investment | 237 | 355 |
With an Allowance Recorded Unpaid Contractual Principal Balance | 237 | 355 |
With an Allowance Recorded Related Allowance | 98 | 105 |
Recorded Investment | 237 | 382 |
Unpaid Contractual Principal Balance | 237 | 382 |
Related Allowance | 98 | 105 |
Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Related Allowing Recorded Investment | 0 | 27 |
With No Related Allowing Unpaid Contractual Principal Balance | 0 | 27 |
With an Allowance Recorded Investment | 229 | 319 |
With an Allowance Recorded Unpaid Contractual Principal Balance | 229 | 319 |
With an Allowance Recorded Related Allowance | 92 | 82 |
Recorded Investment | 229 | 346 |
Unpaid Contractual Principal Balance | 229 | 346 |
Related Allowance | 92 | 82 |
Residential and Home Equity Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Related Allowing Recorded Investment | 0 | |
With No Related Allowing Unpaid Contractual Principal Balance | 0 | |
With an Allowance Recorded Investment | 36 | |
With an Allowance Recorded Unpaid Contractual Principal Balance | 36 | |
With an Allowance Recorded Related Allowance | 23 | |
Recorded Investment | 36 | |
Unpaid Contractual Principal Balance | 36 | |
Related Allowance | 23 | |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With No Related Allowing Recorded Investment | 0 | |
With No Related Allowing Unpaid Contractual Principal Balance | 0 | |
With an Allowance Recorded Investment | 8 | |
With an Allowance Recorded Unpaid Contractual Principal Balance | 8 | |
With an Allowance Recorded Related Allowance | 6 | |
Recorded Investment | 8 | |
Unpaid Contractual Principal Balance | 8 | |
Related Allowance | $6 |
Loans_Summary_of_Average_Net_I
Loans - Summary of Average Net Investment in Impaired Loans and Interest Income Recognized and Received on Impaired Loans (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $252 | $334 |
Interest Income Recognized | 15 | 26 |
Interest Income Received | 15 | 26 |
Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 8 | |
Interest Income Recognized | 1 | |
Interest Income Received | 1 | |
Commercial Real Estate Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 244 | 298 |
Interest Income Recognized | 14 | 23 |
Interest Income Received | 14 | 23 |
Residential and Home Equity Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 36 | |
Interest Income Recognized | 3 | |
Interest Income Received | $3 |
Loans_Summary_of_Impaired_Coll
Loans - Summary of Impaired Collateral-dependent Loans Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ||
Total Losses | $98 | $105 |
Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total Losses | 92 | 82 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 120 | |
Total Losses | 26 | |
Losses recorded during the year | 26 | |
Fair Value, Measurements, Nonrecurring [Member] | Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 118 | |
Total Losses | 20 | |
Losses recorded during the year | 20 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 1 [Member] | Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 2 [Member] | Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 120 | |
Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | Commercial Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 118 | |
Fair Value, Measurements, Nonrecurring [Member] | Consumer [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 2 | |
Total Losses | 6 | |
Losses recorded during the year | 6 | |
Fair Value, Measurements, Nonrecurring [Member] | Consumer [Member] | Level 1 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Consumer [Member] | Level 2 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | 0 | |
Fair Value, Measurements, Nonrecurring [Member] | Consumer [Member] | Level 3 [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired collateral-dependent loans , fair value | $2 |
Premises_and_Equipment_Summary
Premises and Equipment - Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $5,340 | $5,133 |
Less accumulated depreciation and amortization | -1,777 | -1,376 |
Premises and equipment, net | 3,563 | 3,757 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 400 | 400 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 2,399 | 2,387 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 364 | 364 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | 778 | 706 |
Computer and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total, at cost | $1,399 | $1,276 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | ||
Operating lease, expiry date | 2017 | |
Rent expense under operating lease | $88,000 | $114,000 |
Premises_and_Equipment_Schedul
Premises and Equipment - Schedule of Future Minimum Rental Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | |
2015 | $85 |
2016 | 85 |
2017 | 91 |
2018 | 98 |
Total | $359 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Aggregate amount of time deposits with a minimum denomination of $100,000 | $15.20 | $10.90 |
Deposits_Schedule_of_Maturitie
Deposits - Schedule of Maturities of Time Deposits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2015 | $10,727 | |
2016 | 7,420 | |
2017 | 510 | |
Total | $18,657 | $14,594 |
Other_Borrowings_Summary_of_Ot
Other Borrowings - Summary of Other Borrowings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments And Cost Method Investments [Abstract] | ||
Balance outstanding at year-end | $2,699 | $5,719 |
Average balance outstanding during the year | 3,592 | 5,789 |
Average interest rate paid | 1.00% | 1.00% |
Maximum amount outstanding at any month-end during year | 5,733 | 5,813 |
Pledged securities | $3,558 | $5,882 |
Other_borrowings_Additional_In
Other borrowings - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Equity Method Investments And Cost Method Investments [Abstract] | ||
Maximum borrowing limit under FHLB | $30,700,000 | |
FHLB advances outstanding | 0 | 0 |
Current borrowing limit under FHLB | $8,700,000 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Taxes (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current: | ||
Federal | $560 | $658 |
State | 107 | 119 |
Total current | 667 | 777 |
Deferred: | ||
Federal | -123 | -146 |
State | -30 | -29 |
Total deferred | -153 | -175 |
Total income taxes | $514 | $602 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 34.00% | 34.00% |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of statutory Federal Income Tax Rate and Effective Tax Rates (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Income taxes at statutory rate, Amount | $517 | $595 |
Increase (decrease) resulting from: | ||
State taxes, net of Federal tax benefit, Amount | 51 | 60 |
Tax-exempt income, Amount | -42 | -30 |
Other nondeductible expenses, Amount | -12 | -23 |
Total income taxes | $514 | $602 |
Income taxes at statutory rate, % of Pretax Earnings | 34.00% | 34.00% |
Increase (decrease) resulting from: | ||
State taxes, net of Federal tax benefit, % of Pretax Earnings | 3.30% | 3.40% |
Tax-exempt income, % of Pretax Earnings, % of Pretax Earnings | -2.70% | -1.70% |
Other nondeductible expenses, % of Pretax Earnings | -0.80% | -1.30% |
Income taxes, % of Pretax Earnings | 33.80% | 34.40% |
Income_Taxes_Summary_of_Tax_Ef
Income Taxes - Summary of Tax Effects of Temporary Differences on Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Allowance for loan losses | $710 | $517 |
Organizational and start-up costs | 116 | 130 |
Stock-based compensation | 18 | 18 |
Unrealized loss on securities available for sale | 0 | 184 |
Other | 60 | 63 |
Deferred tax assets | 904 | 912 |
Deferred tax liabilities: | ||
Accrual to cash conversion | -139 | -145 |
Deferred loan costs | -109 | -88 |
Premises and equipment | -261 | -253 |
Unrealized gains on securities available for sale | -33 | 0 |
Deferred tax liabilities | -542 | -486 |
Net deferred tax asset (liability) | $362 | $426 |
OffBalanceSheet_Financial_Inst2
Off-Balance-Sheet Financial Instruments - Additional Information (Detail) (Standby Letters of Credit [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Standby Letters of Credit [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Debt instrument maturity period | 1 year |
Collateral amount | $945,000 |
Percentage of additional credit limit guaranteed | 10.00% |
OffBalanceSheet_Financial_Inst3
Off-Balance-Sheet Financial Instruments - Summary of Contractual Amounts of Financial Instruments (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Commitments to Extend Credit [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Contractual amounts with off-balance-sheet risk | $2,508 |
Construction Loans in Process [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Contractual amounts with off-balance-sheet risk | 7,265 |
Unused Lines of Credit [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Contractual amounts with off-balance-sheet risk | 23,020 |
Standby Letters of Credit [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Contractual amounts with off-balance-sheet risk | 1,225 |
Guaranteed Accounts [Member] | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Contractual amounts with off-balance-sheet risk | $113 |
Stock_Option_Plan_Additional_I
Stock Option Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation cost recognized | $2,000 | $3,000 |
Stock based compensation income tax benefit | 0 | 1,000 |
2007 Incentive Award Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Period for recognition of stock based compensation cost | 21 months | |
2007 Incentive Award Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares option granted issued | 108,400 | |
Term of stock option grants | 10 years | |
Option granted vesting period | 5 years | |
Shares available for grant | 30,305 | |
Unrecognized compensation expense related to nonvested share-based compensation arrangements granted | $3,000,000 |
Stock_Option_Plan_Summary_of_S
Stock Option Plan - Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Number of Options, Outstanding beginning balance | 134,000 | 136,000 |
Number of Options, Options exercised | -14,200 | |
Weighted-Average Exercise Price, Options exercised | $10 | |
Number of Options, Options granted | 2,500 | |
Number of Options, Options forfeited | -11,400 | -4,500 |
Number of Options, Outstanding ending balance | 108,400 | 134,000 |
Weighted-Average Exercise Price, Outstanding beginning balance | $10.01 | $10 |
Number of Options, Exercisable ending balance | 105,400 | |
Weighted-Average Exercise Price, Options granted | $10.72 | |
Weighted-Average Exercise Price, Options forfeited | $10 | $10 |
Weighted-Average Exercise Price, Outstanding ending balance | $10.01 | $10.01 |
Weighted-Average Exercise Price, Exercisable | $10 | |
Weighted-Average Remaining Contractual Term, Outstanding | 4 years 2 months 12 days | |
Weighted-Average Remaining Contractual Term, Exercisable | 4 years 1 month 6 days | |
Aggregate Intrinsic Value, Exercisable | $263,500 |
Profit_Sharing_Plan_Additional
Profit Sharing Plan - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ||
Company contribution to 401(k) profit sharing plan | $102,000 | $65,000 |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Activity of Loans to Related Parties (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related Party Transactions [Abstract] | ||
Beginning balance | $3,734 | $3,558 |
Originated during the year | 885 | 354 |
Principal repayments | -1,605 | -178 |
Ending balance | 3,014 | 3,734 |
Deposits at year end | $16,510 | $13,292 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Related Party Transaction [Line Items] | ||
Rent expense under operating lease | $88,000 | $114,000 |
Related Party [Member] | ||
Related Party Transaction [Line Items] | ||
Rent expense under operating lease | 88,000 | 114,000 |
Expenses related to the loan | $20,000 | $24,000 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $7,555 | $34,166 | $26,498 |
Securities available for sale | 42,397 | 44,071 | |
Loans held for sale | 1,871 | 150 | |
Loans, net | 151,869 | 121,220 | |
Federal Home Loan Bank stock | 186 | 204 | |
Accrued interest receivable | 624 | 516 | |
Deposits | 183,971 | 183,365 | |
Other borrowings | 2,699 | 5,719 | |
Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available for sale | 0 | 0 | |
Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available for sale | 42,397 | 44,071 | |
Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available for sale | 0 | 0 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 7,555 | 34,166 | |
Securities available for sale | 42,397 | 44,071 | |
Loans held for sale | 1,871 | 150 | |
Loans, net | 151,869 | 121,220 | |
Federal Home Loan Bank stock | 186 | 204 | |
Accrued interest receivable | 624 | 516 | |
Deposits | 183,971 | 183,365 | |
Other borrowings | 2,699 | 5,719 | |
Off-balance-sheet financial instruments | 0 | 0 | |
Estimated Fair Value [Member] | Level 1 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 7,555 | 34,166 | |
Estimated Fair Value [Member] | Level 2 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Securities available for sale | 42,397 | 44,071 | |
Estimated Fair Value [Member] | Level 3 [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans held for sale | 1,923 | 150 | |
Loans, net | 148,588 | 121,947 | |
Federal Home Loan Bank stock | 186 | 204 | |
Accrued interest receivable | 624 | 516 | |
Deposits | 184,057 | 183,435 | |
Other borrowings | 2,699 | 5,719 | |
Off-balance-sheet financial instruments | $0 | $0 |
Regulatory_Matters_Schedule_of
Regulatory Matters - Schedule of Bank's Actual Capital Amounts and Percentage (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Tier 1 Capital to Average Assets, Actual Amount | $19,589 | $16,611 |
Tier 1 Capital to Average Assets, Actual, Percent | 9.52% | 8.41% |
Tier 1 Capital to Average Assets, Required For Capital Adequacy Purpose, Amount | 8,227 | 7,898 |
Tier 1 Capital to Average Assets, Required for Capital Adequacy Purpose,Percent | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Required for Well Capitalized Purposes, Amount | 10,284 | 9,872 |
Tier 1 Capital to Average Assets, Required for Well Capitalized Purposes, Percent | 5.00% | 5.00% |
Tier 1 Capital to Risk- Weighted Asset, Actual Amount | 19,589 | 16,611 |
Tier 1 Capital to Risk- Weighted Assets, Actual, Percent | 12.84% | 12.41% |
Tier 1 Capital to Risk- Weighted Assets, Required for Capital Adequacy Purposes Amount | 6,102 | 5,355 |
Tier 1 Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes Amount | 4.00% | 4.00% |
Tier 1 Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes, Amount | 9,154 | 8,033 |
Tier 1 Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes, Percent | 6.00% | 6.00% |
Total Capital to Risk- Weighted Asset, Actual Amount | 21,498 | 18,286 |
Total Capital to Risk- Weighted Assets, Actual, Percent | 14.09% | 13.66% |
Total Capital to Risk- Weighted Assets, Required for Capital Adequacy Purposes Amount | 12,206 | 10,711 |
Total Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes Amount | 8.00% | 8.00% |
Total Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes, Amount | $15,257 | $13,388 |
Total Capital to Risk- Weighted Assets, Required for Well Capitalized Purposes, Percent | 10.00% | 10.00% |
Earnings_Per_Share_Computation
Earnings Per Share - Computation of Basic and Diluted Earnings Per Common Share (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Earnings Per Share [Abstract] | ||
Effect of dilutive securities-Incremental shares from assumed conversion of options | 16,916 | 20,881 |
Earnings | $1,006 | $1,149 |
Weighted-Average Shares | 1,726,662 | 1,518,618 |
Per Share Amount | $0.58 | $0.76 |
Earnings | $1,006 | $1,149 |
Weighted-Average Shares | 1,709,746 | 1,497,737 |
Per Share Amount | $0.59 | $0.77 |
Common_Stock_Offering_Addition
Common Stock Offering - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock [Line Items] | ||
Common stock value per share | $0 | |
Sale of common stock, shares | 425,619 | |
Proceeds from sale of common stock | $4,955 | $0 |
Maximum [Member] | ||
Common Stock [Line Items] | ||
Number of shares offered | 1,200,000 |
Parent_Company_Financial_Infor
Parent Company Financial Information - Schedule of Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | |||
Cash | $7,555 | $34,166 | $26,498 |
Other assets | 318 | 183 | |
Total assets | 210,358 | 206,473 | |
Stockholders' Equity | |||
Stockholders' equity | 22,867 | 16,361 | 16,039 |
Total liabilities and stockholders' equity | 210,358 | 206,473 | |
Parent Company [Member] | |||
Assets | |||
Cash | 3,132 | 13 | 20 |
Investment in subsidiary | 19,643 | 16,296 | |
Other assets | 92 | 270 | |
Total assets | 22,867 | 16,579 | |
Liabilities- | |||
Accounts payable | 0 | 218 | |
Stockholders' Equity | |||
Stockholders' equity | 22,867 | 16,361 | |
Total liabilities and stockholders' equity | $22,867 | $16,579 |
Parent_Company_Financial_Infor1
Parent Company Financial Information - Schedule of Condensed Statements of Operations (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Information Of Parent Company Only Disclosure [Line Items] | ||
Income tax benefit | ($514) | ($602) |
Net earnings | 1,006 | 1,149 |
Parent Company [Member] | ||
Condensed Financial Information Of Parent Company Only Disclosure [Line Items] | ||
Revenues | 0 | 0 |
Expenses | -110 | -37 |
Income tax benefit | 41 | 15 |
Loss before earnings of subsidiary | -69 | -22 |
Net earnings of subsidiary | 1,075 | 1,171 |
Net earnings | $1,006 | $1,149 |
Parent_Company_Financial_Infor2
Parent Company Financial Information - Schedule of Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net earnings | $1,006 | $1,149 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Stock issued as compensation | 2 | 3 |
Increase (decrease) in other assets | -135 | 197 |
Net cash provided by operating activities | 414 | 2,060 |
Cash flow from financing activities: | ||
Proceeds from sale of common stock | 4,955 | 0 |
Proceeds from stock options exercised | 142 | 0 |
Net cash provided by financing activities | 2,683 | 36,595 |
Cash flow from investment activities: | ||
Net cash used in investing activities | -29,708 | -30,987 |
Net (decrease) increase in cash and cash equivalents | -26,611 | 7,668 |
Cash and cash equivalents at beginning of year | 34,166 | 26,498 |
Cash and cash equivalents at end of year | 7,555 | 34,166 |
Supplemental disclosure of cash flow information-Noncash items: | ||
Net change in accumulated other comprehensive (loss) income of subsidiary, net change in unrealized gain on securities available for sale, net of tax | 369 | -860 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net earnings | 1,006 | 1,149 |
Adjustments to reconcile net earnings to net cash used in operating activities: | ||
Equity in earnings of subsidiary | -1,075 | -1,171 |
Stock issued as compensation | 32 | 30 |
Increase (decrease) in other assets | 177 | -233 |
(Decrease) increase in liabilities | -218 | 218 |
Net cash provided by operating activities | -78 | -7 |
Cash flow from financing activities: | ||
Proceeds from sale of common stock | 4,955 | 0 |
Proceeds from stock options exercised | 142 | 0 |
Net cash provided by financing activities | 5,097 | 0 |
Cash flow from investment activities: | ||
Cash dividend received from bank subsidiary | 300 | 0 |
Capital infusion in subsidiary | -2,200 | 0 |
Net cash used in investing activities | -1,900 | 0 |
Net (decrease) increase in cash and cash equivalents | 3,119 | -7 |
Cash and cash equivalents at beginning of year | 13 | 20 |
Cash and cash equivalents at end of year | 3,132 | 13 |
Supplemental disclosure of cash flow information-Noncash items: | ||
Net change in accumulated other comprehensive (loss) income of subsidiary, net change in unrealized gain on securities available for sale, net of tax | 369 | -860 |
Stock-based compensation expense of subsidiary | $2 | $3 |