Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 07, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'NORTH VALLEY BANCORP | ' | ' |
Entity Central Index Key | '0000353191 | ' | ' |
Trading Symbol | 'novb | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 6,836,463 | ' |
Entity Public Float | ' | ' | $107,379,000 |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash and cash equivalents: | ' | ' |
Cash and due from financial institutions | $19,348 | $22,654 |
Federal funds sold | 38,135 | 15,865 |
Total cash and cash equivalents | 57,483 | 38,519 |
Interest-bearing deposits in other financial institutions | 2,226 | 2,219 |
Investment securities available-for-sale, at fair value | 279,479 | 285,815 |
Investment securities held-to-maturity, at amortized cost | 2 | 6 |
Loans | 509,244 | 492,211 |
Less: Allowance for loan losses | -9,301 | -10,458 |
Net loans | 499,943 | 481,753 |
Premises and equipment, net | 7,833 | 9,181 |
Accrued interest receivable | 2,124 | 2,217 |
Other real estate owned | 3,454 | 22,423 |
FHLB and FRB stock and other nonmarketable securities | 8,402 | 8,313 |
Bank-owned life insurance | 37,209 | 36,045 |
Core deposit intangibles, net | 109 | 255 |
Other assets | 19,500 | 15,597 |
TOTAL ASSETS | 917,764 | 902,343 |
Deposits: | ' | ' |
Non-interest bearing | 184,971 | 177,855 |
Interest bearing | 602,878 | 590,725 |
Total deposits | 787,849 | 768,580 |
Accrued interest payable and other liabilities | 14,835 | 15,951 |
Subordinated debentures | 21,651 | 21,651 |
Total liabilities | 824,335 | 806,182 |
Commitments and contingencies (Note 14) | ' | ' |
STOCKHOLDERS' EQUITY: | ' | ' |
Preferred stock, no par value: authorized 5,000,000 shares; no shares outstanding at December 31, 2013 and 2012 | ' | ' |
Common stock, no par value: authorized 60,000,000 shares; outstanding 6,836,463 and 6,835,192 at December 31, 2013 and 2012, respectively | 98,824 | 98,495 |
Accumulated deficit | -375 | -4,000 |
Accumulated other comprehensive (loss) income, net of tax | -5,020 | 1,666 |
Total stockholders' equity | 93,429 | 96,161 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $917,764 | $902,343 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred Stock, no par value (in dollars per share) | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | ' | ' |
Common stock, no par value (in dollars per share) | ' | ' |
Common Stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares outstanding | 6,836,463 | 6,835,192 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
INTEREST INCOME: | ' | ' | ' |
Interest and fees on loans | $25,739 | $26,062 | $28,863 |
Interest on investments: | ' | ' | ' |
Taxable interest income | 6,051 | 7,075 | 7,580 |
Nontaxable interest income | 369 | 528 | 629 |
Interest on federal funds sold and repurchase agreements | 54 | 66 | 73 |
Total interest income | 32,213 | 33,731 | 37,145 |
INTEREST EXPENSE: | ' | ' | ' |
Deposits | 1,084 | 2,165 | 3,893 |
Other borrowings | 2 | 8 | 1 |
Subordinated debentures | 532 | 1,352 | 1,892 |
Total interest expense | 1,618 | 3,525 | 5,786 |
Net interest income | 30,595 | 30,206 | 31,359 |
Provision for loan losses | ' | 2,100 | 2,650 |
Net interest income after provision for loan losses | 30,595 | 28,106 | 28,709 |
NONINTEREST INCOME: | ' | ' | ' |
Service charges on deposit accounts | 3,690 | 4,333 | 4,635 |
Other fees and charges | 4,422 | 4,715 | 4,663 |
Earnings on cash surrender value of life insurance policies | 1,472 | 1,363 | 1,359 |
Gain on sale of loans, net | 3,038 | 3,154 | 1,172 |
Gain on sales and calls of securities, net | 548 | 1,877 | 1,677 |
Other | 967 | 977 | 859 |
Total noninterest income | 14,137 | 16,419 | 14,365 |
NONINTEREST EXPENSE: | ' | ' | ' |
Salaries and employee benefits | 20,454 | 20,277 | 18,657 |
Occupancy expense | 2,495 | 2,547 | 2,786 |
Furniture and equipment expense | 860 | 938 | 1,062 |
FDIC and state assessments | 820 | 922 | 1,355 |
Other real estate owned expense | 3,539 | 3,556 | 4,804 |
Other | 11,345 | 11,739 | 11,051 |
Total noninterest expenses | 39,513 | 39,979 | 39,715 |
Income before provision (benefit) for income taxes | 5,219 | 4,546 | 3,359 |
Provision (benefit) for income taxes | 1,594 | -1,744 | 312 |
Net income | $3,625 | $6,290 | $3,047 |
Per Common Share Amounts | ' | ' | ' |
Basic and Diluted Income Per Common Share (in dollars per share) | $0.53 | $0.92 | $0.45 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $3,625 | $6,290 | $3,047 |
Unrealized (losses) gains on securities: | ' | ' | ' |
Unrealized holding gains (losses) arising during the period | -11,353 | 3,433 | 6,293 |
Tax effect | 4,655 | -1,408 | -2,580 |
Reclassification adjustment for gains included in gain on sales or calls of securities, net | -548 | -1,877 | -1,677 |
Provision for income taxes | 225 | 770 | 688 |
Net of tax | -7,021 | 918 | 2,724 |
Defined benefit pension plans | ' | ' | ' |
Net gain (loss) arising during the period | 275 | -1,359 | -856 |
Tax effect | -113 | 557 | 351 |
Reclassification adjustment for amortization of prior service cost and net gain included in salaries and employee benefits | 293 | 137 | 108 |
Benefit for income taxes | -120 | -57 | -44 |
Net of tax | 335 | -722 | -441 |
Total other comprehensive (loss) income | -6,686 | 196 | 2,283 |
Comprehensive (loss) income | ($3,061) | $6,486 | $5,330 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Dec. 31, 2010 | $98,128 | ($13,337) | ($813) | $83,978 |
Balance (in shares) at Dec. 31, 2010 | 6,832,492 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | 2,283 | 2,283 |
Equity based compensation | 157 | ' | ' | 157 |
Equity based compensation (in shares) | 1,260 | ' | ' | ' |
Net income | ' | 3,047 | ' | 3,047 |
Balance at Dec. 31, 2011 | 98,285 | -10,290 | 1,470 | 89,465 |
Balance (in shares) at Dec. 31, 2011 | 6,833,752 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | 196 | 196 |
Equity based compensation | 210 | ' | ' | 210 |
Equity based compensation (in shares) | 1,440 | ' | ' | ' |
Net income | ' | 6,290 | ' | 6,290 |
Balance at Dec. 31, 2012 | 98,495 | -4,000 | 1,666 | 96,161 |
Balance (in shares) at Dec. 31, 2012 | 6,835,192 | ' | ' | 6,835,192 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | -6,686 | -6,686 |
Equity based compensation | 329 | ' | ' | 329 |
Equity based compensation (in shares) | 1,271 | ' | ' | ' |
Net income | ' | 3,625 | ' | 3,625 |
Balance at Dec. 31, 2013 | $98,824 | ($375) | ($5,020) | $93,429 |
Balance (in shares) at Dec. 31, 2013 | 6,836,463 | ' | ' | 6,836,463 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net income | $3,625 | $6,290 | $3,047 |
Adjustments to reconcile net income to net cash from operating activities: | ' | ' | ' |
Depreciation and amortization | 1,019 | 1,080 | 1,197 |
Amortization of premium on securities, net | 1,664 | 2,117 | 1,637 |
Amortization of core deposit intangible | 146 | 146 | 146 |
Provision for loan losses | ' | 2,100 | 2,650 |
Net losses on sale and write-down of other real estate owned | 3,210 | 3,033 | 4,096 |
Gain on sale of loans | -3,038 | -3,154 | -1,172 |
Gain on sale and calls of securities | -548 | -1,877 | -1,677 |
(Gain) loss on sale of premises and equipment | -80 | 40 | 289 |
Deferred tax expense (benefit) | 1,683 | -1,762 | 203 |
Stock based compensation expense | 329 | 210 | 157 |
Effect of changes in: | ' | ' | ' |
Accrued interest receivable | 93 | 340 | 156 |
Other assets | -2,104 | -1,517 | 1,452 |
Accrued interest payable and other liabilities | -548 | -2,572 | 1,342 |
Proceeds from sales of loans originated for sale | 79,418 | 102,810 | 35,021 |
Loans originated for sale | -74,613 | -99,656 | -33,849 |
Net cash provided by operating activities | 10,256 | 7,628 | 14,695 |
Cash flows from investing activities | ' | ' | ' |
Purchases of time deposits at other financial institutions | -7 | -260 | -1,500 |
Purchases of available-for-sale securities | -91,054 | -173,479 | -188,190 |
Proceeds from sales/calls of available-for-sale securities | 20,215 | 133,047 | 101,940 |
Proceeds from maturities/prepayments of available-for-sale securities | 64,159 | 68,137 | 44,345 |
Proceeds from maturities/calls of held-to-maturity securities | 4 | ' | ' |
Purchases of FHLB and FRB stock and other securities | -89 | -269 | -903 |
Purchases of jumbo residential mortgages | ' | -29,990 | ' |
Net (increase) decrease in loans | -20,775 | -22,543 | 41,810 |
Proceeds from sales of other real estate owned | 17,204 | 6,889 | 12,036 |
Proceeds from sales of premises and equipment | 305 | 27 | ' |
Purchases of premises and equipment | -523 | -1,667 | -1,348 |
Net cash (used in) provided by investing activities | -10,561 | -20,108 | 8,190 |
Cash flows from financing activities | ' | ' | ' |
Net increase in deposits | 19,269 | 2,341 | 12,449 |
Repayment of subordinated debentures | ' | -10,310 | ' |
Net cash provided by (used in) financing activities | 19,269 | -7,969 | 12,449 |
Net increase (decrease) in cash and cash equivalents | 18,964 | -20,449 | 35,334 |
Cash and cash equivalents, beginning of year | 38,519 | 58,968 | 23,634 |
Cash and cash equivalents, end of year | 57,483 | 38,519 | 58,968 |
Supplemental cash flow information: | ' | ' | ' |
Interest paid | 1,646 | 8,387 | 3,840 |
Income taxes paid | 900 | 122 | 44 |
Supplemental noncash disclosures: | ' | ' | ' |
Transfer from loans to other real estate owned | 818 | 12,239 | 10,454 |
Transfer from premises to other real estate owned | $627 | ' | ' |
NATURE_OF_OPERATIONS_AND_SIGNI
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES | |||||||
Nature of Operations. The accounting and reporting practices of North Valley Bancorp (the “Company”) and its wholly owned subsidiary, North Valley Bank (“NVB”), conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. The operations of the Company are comprised predominately of NVB. NVB is a commercial banking institution with twenty-two banking offices in Shasta, Trinity, Humboldt, Del Norte, Yolo, Sonoma, Placer and Mendocino Counties located in California. Between 2003 to 2005, the Company formed North Valley Capital Trust II, North Valley Capital Trust III, and North Valley Capital Statutory Trust IV (collectively, the Trusts) which Trust II, and III are Delaware statutory business trusts and Trust IV is a Connecticut statutory business trust formed for the exclusive purpose of issuing and selling Trust Preferred Securities. | |||||||
NVB’s principal business consists of attracting deposits from the general public and using the funds to originate commercial, real estate and installment loans to customers, who are predominately small and middle market businesses and middle income individuals. The Company’s primary source of revenues is interest income from its loan and investment securities portfolios. The Company is not dependent on any single customer for more than ten percent of the Company’s revenues. The deposits of NVB are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable legal limits. | |||||||
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The allowance for loan losses, loan servicing rights, deferred tax assets, and fair values of financial instruments are particularly subject to change. | |||||||
Consolidation and Basis of Presentation. The consolidated financial statements include the Company and its wholly owned subsidiary NVB. NVB has one wholly owned inactive subsidiary, North Valley Trading Company. All material intercompany accounts and transactions have been eliminated in consolidation. | |||||||
For financial reporting purposes, the Company’s investments in the Trusts of $651,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Trusts are reflected as debt on the Company’s consolidated balance sheet. | |||||||
Disclosures About Segments of an Enterprise. The Company uses the “management approach” for reporting business segment information. The management approach is based on the segments within a company used by the chief operating decision-maker for making operating decisions and assessing performance. Reportable segments are based on such factors as products and services, geography, legal structure or any other manner by which a company’s management distinguishes major operating units. Utilizing this approach, management has determined that the Company has only one reportable segment. | |||||||
Reclassifications. Certain amounts in 2012 and 2011 have been reclassified to conform with the 2013 consolidated financial statement presentation. These reclassifications had no effect on prior year net income or stockholders’ equity. | |||||||
Cash and Cash Equivalents. For the purposes of the consolidated statement of cash flows, cash and cash equivalents have been defined as cash, demand deposits with correspondent banks, cash items, settlements in transit, and federal funds sold and repurchase agreements. Generally, federal funds are sold for one-day periods and repurchase agreements are sold for eight to fourteen-day periods. Cash equivalents have remaining terms to maturity of three months or less from the date of acquisition. Net cash flows are reported for customer loan and deposit transactions and time deposits in other financial institutions. | |||||||
Reserve Requirements. The Company is subject to regulation by the Federal Reserve Board. The regulations require the Company to maintain certain cash reserve balances on hand or at the Federal Reserve Bank (“FRB”). At December 31, 2013 and 2012, the Company had no reserve requirement. | |||||||
Investment Securities. The Company accounts for its investment securities as follows: | |||||||
Trading securities are carried at fair value. Changes in fair value are included in noninterest income. The Company did not have any securities classified as trading at or during the years ended December 31, 2013, 2012 and 2011. | |||||||
Available-for-sale securities are carried at estimated fair value and represent securities not classified as trading securities nor as held-to-maturity securities. Unrealized gains and losses resulting from changes in fair value are recorded, net of tax, as a net amount within accumulated other comprehensive (loss) income, which is a separate component of stockholders’ equity. | |||||||
Held-to-maturity securities are carried at cost adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income. The Company’s policy of carrying such investment securities at amortized cost is based upon its ability and management’s intent to hold such securities to maturity. | |||||||
Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. During the years ended December 31, 2013, 2012 and 2011, there were no transfers of securities between categories. | |||||||
Gains or losses on disposition are recorded in noninterest income based on the net proceeds received and the carrying amount of the securities sold, using the specific identification method. Interest earned on investment securities is reported in interest income, net of applicable adjustments for accretion of discounts and amortization of premiums which are accounted for using the level-yield method without anticipating prepayments. | |||||||
An investment security is impaired when its carrying value is greater than its fair value. Investment securities that are impaired are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether such a decline in their fair value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline and the intent and ability of the Company to retain its investment in the securities for a period of time sufficient to allow for an anticipated recovery in fair value, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other than temporary, and management does not intend to sell the security or it is more likely than not that the Company will not be required to sell the security before recovery, only the portion of the impairment loss representing credit exposure is recognized as a charge to earnings, with the balance recognized as a charge to other comprehensive income. If management intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovering its forecasted cost, the entire impairment loss is recognized as a charge to earnings. | |||||||
Loans. Loans are reported at the principal amount outstanding, net of unearned income, including net deferred loan fees, and the allowance for loan losses. | |||||||
Interest on loans is calculated using the simple interest method on the daily balance of the principal amount outstanding. | |||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the original interest rate, except that as a practical expedient, it may measure impairment based on an observable market price, or the fair value of the collateral if collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. | |||||||
The determination of the general reserve for loans that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable losses inherent in the portfolio taken as a whole. | |||||||
Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal, or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. | |||||||
A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDRs are considered impaired and measured for impairment as described above. | |||||||
Deferred Loan Fees. Loan fees and certain related direct costs to originate loans are deferred and amortized to income by a method that approximates a level yield over the contractual life of the underlying loans. The unamortized balance of deferred fees and costs is reported as a component of net loans. | |||||||
Loan Sales and Servicing. The Company originates and sells residential mortgage loans to Freddie Mac and others. The Company retains the servicing on certain loans that are sold. Deferred origination fees and expenses are recognized at the time of sale in the determination of the gain or loss. When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The gain (loss) is recognized at the time of sale or when all recourse provisions, if any, have lapsed based on the difference between the sale proceeds and the allocated carrying value of the related loans sold. The fair value of the contractual servicing is reflected as a servicing asset, which is amortized over the period of estimated net servicing income using a method approximating the interest method. The servicing asset is included in other assets on the consolidated balance sheet, and is evaluated for impairment on a periodic basis. Servicing income net of amortization is included in non-interest income on the consolidated statements of income. | |||||||
At December 31, 2013 and 2012, the Company serviced real estate loans which it had sold to the secondary market of approximately $175,904,000 and $145,314,000, respectively. At December 31, 2013 and 2012, the Company serviced loans guaranteed by the Small Business Administration which it had sold to the secondary market of approximately $12,580,000 and $13,696,000, respectively. | |||||||
Allowance for Loan Losses. The allowance for loan losses is an estimate of probable incurred loan losses in the Company’s loan portfolio as of the balance-sheet date. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of two primary components, specific reserves related to impaired loans and general reserves for inherent losses related to loans that are evaluated collectively for impairment. | |||||||
The Company calculates the allowance for each portfolio segment. These portfolio segments include commercial, real estate commercial, real estate construction (including land and development loans), real estate mortgage, installment, and other loans (principally home equity loans). The allowance for loan losses attributable to each portfolio segment, which includes both individually impaired and loans that are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. | |||||||
The general reserve component of the allowance for loan losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses over the past twelve quarters and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. | |||||||
Commercial. Commercial loans generally possess a more inherent risk of loss than real estate portfolio segments because these loans are generally underwritten to existing cash flows of operating businesses. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. | |||||||
Real Estate Commercial. Real estate commercial loans generally possess a higher inherent risk of loss than other real estate portfolio segments, except land and construction loans. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. | |||||||
Real Estate Construction. Real estate construction loans generally possess a higher inherent risk of loss than other real estate portfolio segments. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. | |||||||
Real Estate Mortgage. The degree of risk in real estate mortgage lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than other real estate portfolio segments. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
Individual loans and receivables in homogeneous loan portfolio segments are not evaluated for specific impairment. Rather, the sole component of the allowance for these loan types is determined by collectively measuring impairment reserve factors based on management’s assessment of the following for each homogeneous loan portfolio segment: (1) inherent credit risk, (2) delinquencies, (3) historical losses and (4) other qualitative factors. The homogenous loan portfolio segments are described in further detail below. | |||||||
Installment – An installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made directly for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
Other (principally home equity loans) – The degree of risk in home equity depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than other real estate portfolio segments. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
The Company assigns a risk rating to all loans except pools of homogeneous loans and periodically, but not less than annually, performs detailed reviews of all such individual loans over $250,000 to identify credit risks and to assess the overall collectability of the portfolio. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. The risk ratings of these smaller homogeneous loans are typically determined by the extent of their monthly required payments being past due, if any. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into five major categories, defined as follows: | |||||||
Pass. A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. | |||||||
Special Mention. A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. | |||||||
Substandard. A substandard loan is not adequately protected by the current sound worth and paying capacity of the borrower or the value of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project’s failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | |||||||
Doubtful. Loans classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. | |||||||
Loss. Loans classified as loss are considered uncollectible and charged off immediately. | |||||||
Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors and management review the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s primary regulators, the FRB and the California Department of Financial Institutions, as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. | |||||||
Allowance for Loan Losses on Off-Balance-Sheet Credit Exposures. The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in accrued interest payable and other liabilities on the consolidated balance sheet. | |||||||
Other Real Estate Owned (“OREO”). Real estate acquired through, or in lieu of, loan foreclosures is expected to be sold and is recorded at its fair value less estimated costs to sell. The amount, if any, by which the recorded amount of the loan exceeds the fair value less estimated costs to sell are charged to the allowance for loan losses, if necessary. These properties are subsequently accounted for at the lower of cost or fair value less costs to sell. After foreclosure, valuations are periodically performed by management with any subsequent write-downs recorded as a valuation allowance and charged against operating expenses. Operating expenses of such properties, net of related income, are included in noninterest expenses and gains and losses on their disposition are included in other income or noninterest expenses. | |||||||
Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation, which is computed principally on the straight-line method over the estimated useful lives of the respective assets. The useful lives of premises are estimated to be twenty to thirty years. The useful lives of furniture, fixtures and equipment are estimated to be two to ten years. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the respective leases. The Company evaluates premises and equipment for financial impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. | |||||||
FHLB and FRB Stock and Other Securities. The Company purchases restricted stock in the Federal Home Loan Bank of San Francisco (FHLB), the FRB and others as required to participate in various programs offered by these institutions. These investments are carried at cost and may be redeemed at par with certain restrictions. Both cash and stock dividends are reported as income. Restricted stock is periodically evaluated for impairment based on ultimate recovery of par. | |||||||
Bank Owned Life Insurance. The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |||||||
Core Deposit Intangibles. These assets represent the estimated fair value of the deposit relationship acquired in acquisitions and is being amortized by the straight-line method. The core deposit intangible was recorded at $1,421,000 in August, 2004 with accumulated amortization of $1,312,000 at December 31, 2013. It was being amortized at $146,000 per year over an estimated life of ten years with a remaining amortization period of nine months. Amortization expense on these intangibles was $146,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense during 2014 is expected to be $109,000. Management evaluates the recoverability and remaining useful life annually to determine whether events or circumstances warrant a revision to the intangible asset or the remaining period of amortization. There were no revisions resulting from management’s assessment in 2013, 2012 or 2011. | |||||||
Defined Benefit Pension and Other Post Retirement Plans. Since December 31, 2006, the Company has recognized the funded status of its defined benefit plan in the accompanying consolidated balance sheet with gains or losses and prior service costs or credits that arise during the period that are not recognized as net period benefit expenses recorded in other comprehensive income (loss). The Company has recognized the underfunded status of its supplemental retirement plan as a liability in the consolidated balance sheet and recognizes subsequent changes in that unfunded status through other comprehensive income (loss). For the years ended December 31, 2013, 2012 and 2011, the amount recognized through other comprehensive income (loss) was $335,000, ($722,000) and ($441,000), respectively. | |||||||
Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for income taxes. The Company applies the asset and liability method to account for income taxes. Deferred tax assets and liabilities are calculated by applying enacted tax laws and tax rates applicable at the time of the calculation to the differences between the financial statement basis and the tax basis of assets and liabilities. The effect on deferred taxes of changes in tax laws and rates is recognized in income in the period that includes the enactment date. On the consolidated balance sheet, net deferred tax assets are included in other assets. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |||||||
The Company uses a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||||
Interest expense associated with unrecognized tax benefits is classified as interest expense in the consolidated statement of income. Penalties associated with unrecognized tax benefits are classified as other expense in the consolidated statement of income. | |||||||
Earnings per Share. Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, result in the issuance of common stock which shares in the earnings of the Company. The treasury stock method has been applied to determine the dilutive effect of stock options in computing diluted EPS. Earnings per share is retroactively adjusted for stock dividends and stock splits for all periods presented. | |||||||
Stock-Based Compensation. At December 31, 2013, the Company had two shareholder approved stock-based compensation plans: the 1998 Employee Stock Incentive Plan and the 2008 Stock Incentive Plan. The plans do not provide for the settlement of awards in cash and new shares are issued upon exercise of options. The North Valley Bancorp 1998 Employee Stock Incentive Plan provides for awards in the form of options (which may constitute incentive stock options (“ISOs”) or non-statutory stock options (“NSOs”) to key employees) and also provides for the award of shares of Common Stock to outside directors. As provided in the 1998 Employee Stock Incentive Plan, the authorization to award incentive stock options terminated on February 19, 2008. As of December 31, 2013, a total of 241,635 shares of Common Stock were available for future grants under the 2008 Stock Incentive Plan. | |||||||
The North Valley Bancorp 2008 Stock Incentive Plan was adopted by the Company’s Board of Directors on February 27, 2008, effective that date, and was approved by the Company’s shareholders at the annual meeting, May 22, 2008. The terms of the 2008 Stock Incentive Plan are substantially the same as the North Valley Bancorp 1998 Employee Stock Incentive Plan. The 2008 Stock Incentive Plan provides for share based awards to key employees in the form of stock options, which may consist of NSOs and ISOs. The 2008 Stock Incentive Plan also provides for the grant to outside directors, and to consultants and advisers to the Company, in the form of stock awards or stock options, all of which must be NSOs. A total of 601,925 shares were authorized under all plans at December 31, 2013. Pursuant to the 1998 Employee Stock Incentive Plan there were outstanding options to purchase 51,930 shares of Common Stock at December 31, 2013. At December 31, 2013, the shares of Common Stock authorized to be granted as options under the terms of the 2008 Stock Incentive Plan totaled 549,995, consisting of 302,780 shares to be issued upon the exercise of options granted and still outstanding as of that date, 5,580 shares issued as stock awards and 241,635 shares reserved for future stock option grants and director stock awards. Effective January 1, 2009, and on each January 1 thereafter for the remaining term of the 2008 Stock Incentive Plan, the aggregate number of shares of Common Stock which are reserved for issuance pursuant to options granted under the terms of the 2008 Stock Incentive Plan shall be increased by a number of shares of Common Stock equal to 2% of the total number of the shares of Common Stock of the Company outstanding at the end of the most recently concluded calendar year. Any shares of Common Stock that have been reserved but not issued as options during any calendar year shall remain available for grant during any subsequent calendar year. Each outside director of the Company shall also be eligible to receive a stock award of 180 shares of Common Stock as part of his or her annual retainer paid by the Company for his or her services as a director. Each stock award shall be fully vested when granted to the outside director. In September 2013 and July 2012, each director was awarded 180 shares for their retainer grant. The number of shares of Common Stock available as stock awards to outside directors shall equal the number of shares of Common Stock to be awarded to such outside directors. Outstanding options under the plans are exercisable until their expiration. | |||||||
Cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) is to be classified as a cash flow from financing activities in the statement of cash flows. | |||||||
Determining Fair Value. The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton based option valuation model that uses the assumptions discussed below. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. | |||||||
Expected Term – The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on the Company’s historical option activity. | |||||||
Expected Volatility - The Company uses the trading history of the common stock of the Company in determining an estimated volatility factor when using the Black-Scholes-Merton option-pricing formula to determine the fair value of options granted. | |||||||
Expected Dividend – The Company estimates the expected dividend based on its historical experience of dividends declared per year, giving consideration to any anticipated changes and the estimated stock price over the expected term based on historical experience when using the Black-Scholes-Merton option-pricing formula. | |||||||
Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton option-pricing formula on the implied yield currently available on U.S. Treasury zero-coupon issues with the same or substantially equivalent remaining term as the expected term of the options. | |||||||
Estimated Forfeitures - When estimating forfeitures, the Company considers voluntary and involuntary termination behavior as well as analysis of actual option forfeitures. | |||||||
There were 114,234, 77,908 and 66,000 options granted in 2013, 2012 and 2011, respectively. The fair value of each option is estimated on the date of grant with the following assumptions: | |||||||
2013 | 2012 | 2011 | |||||
Weighted average dividend yield | 0.00% | 0.00% | 0.00% | ||||
Weighted average expected volatility | 59.78% | 58.50% | 53.60% | ||||
Weighted average risk-free interest rate | 1.38% | 1.40% | 2.27% | ||||
Weighted average expected option life | 6.32 years | 6.49 years | 7.67 years | ||||
Weighted average grant date fair value | $9.53 | $6.28 | $6.07 | ||||
Comprehensive (Loss) Income. Comprehensive (loss) income includes net income and other comprehensive income or loss, which represents the change in its net assets during the period from nonowner sources. The components of other comprehensive income or loss for the Company include the unrealized gain or loss on available-for-sale securities and changes in the funded status of the pension liability and are presented net of tax. Comprehensive (loss) income is reported on the consolidated statement of changes in stockholders’ equity. | |||||||
Adoption of New Financial Accounting Standards | |||||||
In February 2013, the FASB amended existing guidance related to reporting amounts reclassified out of other comprehensive (loss) income out of accumulated other comprehensive (loss) income. These amendments do not change the current requirements for reporting net income or other comprehensive (loss) income in financial statements. These amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive (loss) income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive (loss) income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. These amendments are effective prospectively for interim and annual reporting periods beginning after December 15, 2012 and are disclosed in Note 18. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||
2. INVESTMENT SECURITIES | |||||||||||||||||||||||||
The amortized cost of investment securities and their estimated fair value were as follows (in thousands): | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 19,669 | $ | — | $ | (1,471 | ) | $ | 18,198 | ||||||||||||||||
Obligations of state and political subdivisions | 5,216 | 151 | (50 | ) | 5,317 | ||||||||||||||||||||
Government sponsored agency mortgage-backed securities | 251,923 | 2,528 | (6,174 | ) | 248,277 | ||||||||||||||||||||
Corporate debt securities | 6,000 | — | (1,245 | ) | 4,755 | ||||||||||||||||||||
Equity securities | 3,000 | — | (68 | ) | 2,932 | ||||||||||||||||||||
Total available-for-sale | $ | 285,808 | $ | 2,679 | $ | (9,008 | ) | $ | 279,479 | ||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 21,003 | $ | 115 | $ | — | $ | 21,118 | |||||||||||||||||
Obligations of state and political subdivisions | 10,698 | 499 | — | 11,197 | |||||||||||||||||||||
Government sponsored agency mortgage-backed securities | 239,543 | 6,152 | (64 | ) | 245,631 | ||||||||||||||||||||
Corporate debt securities | 6,000 | — | (1,244 | ) | 4,756 | ||||||||||||||||||||
Equity securities | 3,000 | 113 | — | 3,113 | |||||||||||||||||||||
Total available-for-sale | $ | 280,244 | $ | 6,879 | $ | (1,308 | ) | $ | 285,815 | ||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||
Net unrealized (losses) gains on available-for-sale securities totaling ($6,329,000) and $5,571,000 were recorded, net of ($2,595,000) and $2,284,000 in tax (benefits) provision, as accumulated other comprehensive (loss) gain within stockholders’ equity at December 31, 2013 and 2012, respectively. All government sponsored agency mortgage-backed securities are residential mortgages for the years ended December 31, 2013 and 2012. | |||||||||||||||||||||||||
For the years ended December 31, 2013, 2012 and 2011 there were $548,000, $1,886,000 and $1,687,000, respectively, in gross realized gains on sales or calls of available for sale securities. For the year ended December 31, 2013 there were no gross realized losses on sales or calls of securities categorized as available for sale securities. For the years ended December 31, 2012 and 2011 there were $9,000 and $10,000, respectively, in gross realized losses on sales or calls of securities categorized as available for sale securities. For the years ended December 31, 2013, 2012 and 2011 there were $20,215,000, $133,047,000 and $101,940,000, respectively, in gross proceeds from sales or calls of available for sale securities. There were no sales or transfers of held to maturity securities for the years ended December 31, 2013, 2012 and 2011. For the year ended December 31, 2013 there were gross proceeds of $4,000 in maturities or calls of held to maturity securities. For the years ended December 31, 2012 and 2011 there were no gross proceeds from maturities and calls of held to maturity securities. | |||||||||||||||||||||||||
The following tables show gross unrealized losses and the estimated fair value of available-for-sale investment securities, aggregated by investment category, for investment securities that are in an unrealized loss position (in thousands). Unrealized losses for held-to-maturity investment securities during the same period were not significant. | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Description of Securities | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 18,198 | $ | (1,471 | ) | $ | — | $ | — | $ | 18,198 | $ | (1,471 | ) | |||||||||||
Obligations of state and political subdivisions | 1,145 | (50 | ) | — | — | 1,145 | (50 | ) | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 156,421 | (5,163 | ) | 17,296 | (1,011 | ) | 173,717 | (6,174 | ) | ||||||||||||||||
Corporate debt securities | — | — | 4,755 | (1,245 | ) | 4,755 | (1,245 | ) | |||||||||||||||||
Equity securities | 2,932 | (68 | ) | — | — | 2,932 | (68 | ) | |||||||||||||||||
Total impaired securities | $ | 178,696 | $ | (6,752 | ) | $ | 22,051 | $ | (2,256 | ) | $ | 200,747 | $ | (9,008 | ) | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Description of Securities | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 34,878 | $ | (64 | ) | $ | — | $ | — | $ | 34,878 | $ | (64 | ) | |||||||||||
Corporate debt securities | — | — | 4,756 | (1,244 | ) | 4,756 | (1,244 | ) | |||||||||||||||||
Total impaired securities | $ | 34,878 | $ | (64 | ) | $ | 4,756 | $ | (1,244 | ) | $ | 39,634 | $ | (1,308 | ) | ||||||||||
Obligations of U.S. Government Sponsored Agencies. Management believes that the unrealized losses on the Company’s investment in obligations of U.S. government sponsored agencies is caused by interest rate changes, and is not attributable to changes in credit quality. The Company’s investments in obligations of U.S. government sponsored agencies include two securities which were in a loss position for less than twelve months, none of which are individually significant. Management does not have the intent to sell these securities nor does it believe it is more likely than not that it will be required to sell these securities before the recovery of its amortized cost basis, which may be upon maturity. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||
Obligations of States and Political Subdivisions. Management believes that the unrealized losses on the Company’s investment in obligations of states and political subdivisions is caused by interest rate changes and other market conditions, and is not attributable to changes in credit quality. The Company’s investments in obligations of states and political subdivisions include two securities which were in a loss position for less than twelve months, none of which are individually significant. Management does not have the intent to sell these securities nor does it believe it is more likely than not that it will be required to sell these securities before the recovery of its amortized cost basis, which may be upon maturity. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2013. | |||||||||||||||||||||||||
Government Sponsored Agency Mortgage Backed Securities. Management believes that the unrealized losses on the Company’s investment in government sponsored agency mortgage-backed securities is caused by interest rate changes and other market conditions and is not attributable to changes in credit quality. These investments include fourteen securities which were in a loss position for less than twelve months and two securities in a loss position for twelve months or longer, none of which are individually significant. Additionally, the contractual cash flows of these investments are guaranteed by an agency of the U.S. government and thus it is expected that the securities would not be settled at any price less than the amortized cost of the Company’s investment. Management does not have the intent to sell these securities nor does it believe it is more likely than not that it will be required to sell these securities before the recovery of its amortized cost basis, which may be upon maturity. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 or 2012. | |||||||||||||||||||||||||
Corporate Debt Securities. As of December 31, 2013, there were two corporate debt securities in a loss position for twelve months or more. There is a current active market for these securities and management believes that the unrealized losses on the Company’s investment in these corporate debt securities is due to the yield of the securities and is not attributable to changes in credit quality. The two corporate debt securities are each a $3,000,000 single-issuer trust preferred security issued by two separate large publicly-traded financial institutions. The securities are tied to the front-end of the yield curve, three-month LIBOR (a short-term interest rate) and have a spread over that. Management does not have the intent to sell these securities nor does it believe it is more likely than not that it will be required to sell these securities before the recovery of its amortized cost basis, which may be upon maturity. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013 or 2012. | |||||||||||||||||||||||||
Maturities. The Company invests in government sponsored agency mortgage-backed securities (“MBSs”) and collateralized mortgage obligations (“CMOs”) issued by the FNMA, the Federal Home Loan Mortgage Corporation and Government National Mortgage Association. Actual maturities of the MBSs and CMOs and other securities may differ from contractual maturities because borrowers have the right to prepay mortgages without penalty or call obligations with or without call penalties. The Company uses the “Wall Street” consensus average life at the time the security is purchased to schedule maturities of these MBSs and CMOs and adjusts scheduled maturities periodically based upon changes in the Wall Street estimates. | |||||||||||||||||||||||||
Contractual maturities of held-to-maturity and available-for-sale securities (other than equity securities with an amortized cost and fair value of approximately $3,000,000 and $2,932,000) at December 31, 2013, are shown below (in thousands). | |||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||
Amortized Cost | Estimated | Estimated | |||||||||||||||||||||||
(Carrying | Fair | Amortized | Fair Value | ||||||||||||||||||||||
Amount) | Value | Costs | (Carrying Amount) | ||||||||||||||||||||||
Within one year | $ | 2 | $ | 2 | $ | 4,003 | $ | 4,101 | |||||||||||||||||
One to five years | — | — | 102,441 | 104,057 | |||||||||||||||||||||
Five to ten years | — | — | 169,362 | 162,670 | |||||||||||||||||||||
Beyond ten years | — | — | 7,002 | 5,719 | |||||||||||||||||||||
$ | 2 | $ | 2 | $ | 282,808 | $ | 276,547 | ||||||||||||||||||
At December 31, 2013 and 2012, securities having fair value amounts of approximately $272,092,000 and $276,308,000, respectively, were pledged to secure public deposits, short-term borrowings, treasury tax and loan balances and for other purposes required by law or contract. |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Loans Receivable, Net [Abstract] | ' | ||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||
3. LOANS | |||||||||||||||||||||||||||||||||
The Company originates loans for business, consumer and real estate activities for equipment purchases. Such loans are concentrated in Yolo, Placer, Sonoma, Shasta, Humboldt, Mendocino, Trinity and Del Norte Counties and neighboring communities. Substantially all loans are collateralized. Generally, real estate loans are secured by real property. Commercial and other loans are secured by bank deposits, real estate or business or personal assets. Leases are generally secured by equipment. The Company’s policy for requiring collateral reflects the Company’s analysis of the borrower, the borrower’s industry and the economic environment in which the loan would be granted. The loans are expected to be repaid from cash flows or proceeds from the sale of selected assets of the borrower. | |||||||||||||||||||||||||||||||||
Major classifications of loans at December 31 were as follows (in thousands): | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial | $ | 47,526 | $ | 46,078 | |||||||||||||||||||||||||||||
Real estate - commercial | 326,631 | 295,630 | |||||||||||||||||||||||||||||||
Real estate - construction | 27,472 | 23,003 | |||||||||||||||||||||||||||||||
Real estate - mortgage | 63,120 | 74,353 | |||||||||||||||||||||||||||||||
Installment | 5,376 | 6,689 | |||||||||||||||||||||||||||||||
Other | 39,311 | 45,941 | |||||||||||||||||||||||||||||||
Gross loans | 509,436 | 491,694 | |||||||||||||||||||||||||||||||
Deferred loan (fees) costs, net | (192 | ) | 517 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (9,301 | ) | (10,458 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 499,943 | $ | 481,753 | |||||||||||||||||||||||||||||
Salaries and employee benefits totaling $1,048,000, $1,263,000 and $800,000 have been deferred as loan origination costs for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||||||
Certain real estate loans receivable are pledged as collateral for available borrowings with the FHLB. Pledged loans totaled $91,447,000 and $116,929,000 December 31, 2013 and 2012, respectively (see Note 9). | |||||||||||||||||||||||||||||||||
The following table presents impaired loans and the related allowance for loan losses as of the dates indicated (in thousands): | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | ||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | ||||||||||||||||||||||||||||
With no allocated allowance | |||||||||||||||||||||||||||||||||
Commercial | $ | 458 | $ | 481 | $ | — | $ | 585 | $ | 586 | $ | — | |||||||||||||||||||||
Real estate - commercial | 4,193 | 4,284 | — | 2,778 | 2,974 | — | |||||||||||||||||||||||||||
Real estate - construction | 435 | 449 | — | 1,210 | 1,273 | — | |||||||||||||||||||||||||||
Real estate - mortgage | 919 | 948 | — | 684 | 736 | — | |||||||||||||||||||||||||||
Installment | 96 | 115 | — | 122 | 138 | — | |||||||||||||||||||||||||||
Other | 374 | 397 | — | 111 | 120 | — | |||||||||||||||||||||||||||
Subtotal | 6,475 | 6,674 | — | 5,490 | 5,827 | — | |||||||||||||||||||||||||||
With allocated allowance | |||||||||||||||||||||||||||||||||
Commercial | 240 | 240 | 150 | — | — | — | |||||||||||||||||||||||||||
Real estate - commercial | 113 | 113 | 28 | 184 | 217 | 171 | |||||||||||||||||||||||||||
Real estate - construction | — | — | — | 161 | 161 | 18 | |||||||||||||||||||||||||||
Real estate - mortgage | 416 | 416 | 50 | — | — | — | |||||||||||||||||||||||||||
Subtotal | 769 | 769 | 228 | 345 | 378 | 189 | |||||||||||||||||||||||||||
Total Impaired Loans | $ | 7,244 | $ | 7,443 | $ | 228 | $ | 5,835 | $ | 6,205 | $ | 189 | |||||||||||||||||||||
The following table presents the average balance related to impaired loans for the period indicated (in thousands): | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Average Book | Interest Income | Average Book | Interest Income | Average Book | Interest Income | ||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||
Commercial | $ | 960 | $ | — | $ | 941 | $ | — | $ | 2,056 | $ | — | |||||||||||||||||||||
Real estate - commercial | 4,784 | 77 | 3,069 | — | 6,354 | — | |||||||||||||||||||||||||||
Real estate - construction | 458 | 20 | 1,673 | — | 9,453 | — | |||||||||||||||||||||||||||
Real estate - mortgage | 1,415 | 52 | 681 | — | 991 | — | |||||||||||||||||||||||||||
Installment | 127 | 2 | 139 | — | 110 | — | |||||||||||||||||||||||||||
Other | 388 | — | 122 | — | 91 | — | |||||||||||||||||||||||||||
Total | $ | 8,132 | $ | 151 | $ | 6,625 | $ | — | $ | 19,055 | $ | — | |||||||||||||||||||||
Nonperforming loans include all such loans that are either on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. Nonperforming loans at December 31 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||||||
Loans Past Due Over | |||||||||||||||||||||||||||||||||
Nonaccrual | 90 Days Still Accruing | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Commercial | $ | 698 | $ | 585 | $ | — | $ | — | |||||||||||||||||||||||||
Real estate - commercial | 3,425 | 2,962 | — | — | |||||||||||||||||||||||||||||
Real estate - construction | 110 | 1,371 | — | — | |||||||||||||||||||||||||||||
Real estate - mortgage | 417 | 684 | — | — | |||||||||||||||||||||||||||||
Installment | 69 | 122 | — | — | |||||||||||||||||||||||||||||
Other | 374 | 111 | — | — | |||||||||||||||||||||||||||||
Total | $ | 5,093 | $ | 5,835 | $ | — | $ | — | |||||||||||||||||||||||||
If interest on nonaccrual loans had been accrued, such income would have approximated $224,000, $575,000 and $1,039,000 for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||||||
At December 31, 2013 there were no commitments to lend additional funds to borrowers whose loans were classified as nonaccrual. | |||||||||||||||||||||||||||||||||
The following table shows an aging analysis of the loan portfolio by the amount of time past due (in thousands): | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Accruing Interest | |||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||
30-89 Days | 89 Days | ||||||||||||||||||||||||||||||||
Current | Past Due | Past Due | Nonaccrual | Total | |||||||||||||||||||||||||||||
Commercial | $ | 46,587 | $ | 241 | $ | — | $ | 698 | $ | 47,526 | |||||||||||||||||||||||
Real estate - commercial | 322,773 | 433 | — | 3,425 | 326,631 | ||||||||||||||||||||||||||||
Real estate - construction | 27,362 | — | — | 110 | 27,472 | ||||||||||||||||||||||||||||
Real estate - mortgage | 62,178 | 525 | — | 417 | 63,120 | ||||||||||||||||||||||||||||
Installment | 5,273 | 34 | — | 69 | 5,376 | ||||||||||||||||||||||||||||
Other | 38,594 | 343 | — | 374 | 39,311 | ||||||||||||||||||||||||||||
Total | $ | 502,767 | $ | 1,576 | $ | — | $ | 5,093 | $ | 509,436 | |||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Accruing Interest | |||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||
30-89 Days | 89 Days | ||||||||||||||||||||||||||||||||
Current | Past Due | Past Due | Nonaccrual | Total | |||||||||||||||||||||||||||||
Commercial | $ | 45,473 | $ | 20 | $ | — | $ | 585 | $ | 46,078 | |||||||||||||||||||||||
Real estate - commercial | 292,505 | 163 | — | 2,962 | 295,630 | ||||||||||||||||||||||||||||
Real estate - construction | 21,436 | 196 | — | 1,371 | 23,003 | ||||||||||||||||||||||||||||
Real estate - mortgage | 72,907 | 762 | — | 684 | 74,353 | ||||||||||||||||||||||||||||
Installment | 6,529 | 38 | — | 122 | 6,689 | ||||||||||||||||||||||||||||
Other | 45,581 | 249 | — | 111 | 45,941 | ||||||||||||||||||||||||||||
Total | $ | 484,431 | $ | 1,428 | $ | — | $ | 5,835 | $ | 491,694 | |||||||||||||||||||||||
A troubled debt restructuring (“TDRs”) is a formal modification of the terms of a loan when the lender, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. | |||||||||||||||||||||||||||||||||
At December 31, 2013, accruing TDRs were $2,151,000 and nonaccrual TDRs were $905,000 compared to accruing TDRs of $2,414,000 and nonaccrual TDRs of $1,072,000 at December 31, 2012. At December 31, 2013, there were $78,000 in specific reserves allocated to customers whose loan terms were modified in troubled debt restructurings. At December 31, 2012, there were no specific reserves allocated to customers whose loan terms were modified in troubled debt restructurings. There were no commitments to lend additional amounts at December 31, 2013 and 2012 to customers with outstanding loans classified as troubled debt restructurings. There were no TDRs that subsequently defaulted during the twelve months following the modification of terms for either 2013 or 2012. | |||||||||||||||||||||||||||||||||
The following table presents loans that were modified and recorded as TDRs during the twelve months ended December 31, 2013 and 2012. | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Accruing TDRs | Accruing TDRs | ||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||||||||||||||
Real estate - commercial | 1 | $ | 435 | $ | 435 | 5 | $ | 1,350 | $ | 1,350 | |||||||||||||||||||||||
Real estate - construction | — | $ | — | $ | — | 1 | $ | 343 | $ | 343 | |||||||||||||||||||||||
Real estate - mortgage | 1 | $ | 209 | $ | 209 | 2 | $ | 721 | $ | 721 | |||||||||||||||||||||||
Nonaccrual TDRs | Nonaccrual TDRs | ||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||||||||||||||
Commercial | 1 | $ | 36 | $ | 36 | 1 | $ | 529 | $ | 529 | |||||||||||||||||||||||
Real estate - construction | 1 | $ | 110 | $ | 110 | 2 | $ | 398 | $ | 398 | |||||||||||||||||||||||
Real estate - mortgage | 1 | $ | 113 | $ | 113 | — | $ | — | $ | — | |||||||||||||||||||||||
Installment | — | $ | — | $ | — | 4 | $ | 120 | $ | 120 | |||||||||||||||||||||||
Other | 3 | $ | 210 | $ | 210 | 1 | $ | 25 | $ | 25 | |||||||||||||||||||||||
A summary of TDRs by type of concession and by type of loan as of December 31, 2013 and 2012, is shown below: | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Accruing TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Real estate - commercial | 5 | $ | — | $ | 195 | $ | 686 | $ | 881 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 325 | $ | — | $ | 325 | ||||||||||||||||||||||||
Real estate - mortgage | 3 | $ | — | $ | 293 | $ | 625 | $ | 918 | ||||||||||||||||||||||||
Installment | 1 | $ | — | $ | — | $ | 27 | $ | 27 | ||||||||||||||||||||||||
Nonaccrual TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Commercial | 2 | $ | — | $ | — | $ | 391 | $ | 391 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 110 | $ | — | $ | 110 | ||||||||||||||||||||||||
Real estate - mortgage | 1 | $ | — | $ | — | $ | 113 | $ | 113 | ||||||||||||||||||||||||
Installment | 2 | $ | — | $ | — | $ | 59 | $ | 59 | ||||||||||||||||||||||||
Other | 4 | $ | 104 | $ | 60 | $ | 68 | $ | 232 | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Accruing TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Real estate - commercial | 5 | $ | 202 | $ | — | $ | 1,148 | $ | 1,350 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 343 | $ | — | $ | 343 | ||||||||||||||||||||||||
Real estate - mortgage | 2 | $ | — | $ | 298 | $ | 423 | $ | 721 | ||||||||||||||||||||||||
Nonaccrual TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Commercial | 1 | $ | — | $ | — | $ | 529 | $ | 529 | ||||||||||||||||||||||||
Real estate-construction | 2 | $ | 327 | $ | 71 | $ | — | $ | 398 | ||||||||||||||||||||||||
Installment | 4 | $ | — | $ | — | $ | 120 | $ | 120 | ||||||||||||||||||||||||
Other | 1 | $ | — | $ | — | $ | 25 | $ | 25 | ||||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses by portfolio segment (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
Charge-offs | (208 | ) | (438 | ) | (401 | ) | (420 | ) | (84 | ) | (289 | ) | (1,840 | ) | |||||||||||||||||||
Recoveries | 593 | 46 | 6 | 11 | 27 | — | 683 | ||||||||||||||||||||||||||
Provision for loan losses | (352 | ) | (707 | ) | 315 | 269 | 90 | 400 | (15 | ) | — | ||||||||||||||||||||||
Total ending allowance balance | $ | 876 | $ | 5,196 | $ | 610 | $ | 842 | $ | 131 | $ | 832 | $ | 814 | $ | 9,301 | |||||||||||||||||
31-Dec-12 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
Charge-offs | (480 | ) | (2,681 | ) | (822 | ) | (353 | ) | (221 | ) | (145 | ) | (4,702 | ) | |||||||||||||||||||
Recoveries | 110 | 63 | 80 | 39 | 103 | 9 | 404 | ||||||||||||||||||||||||||
Provision for loan losses | (120 | ) | 1,385 | 393 | 361 | 31 | 121 | (71 | ) | 2,100 | |||||||||||||||||||||||
Total ending allowance balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
31-Dec-11 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,517 | $ | 8,439 | $ | 1,936 | $ | 956 | $ | 339 | $ | 666 | $ | 1,140 | $ | 14,993 | |||||||||||||||||
Charge-offs | (928 | ) | (2,917 | ) | (405 | ) | (440 | ) | (345 | ) | (490 | ) | (5,525 | ) | |||||||||||||||||||
Recoveries | 212 | 108 | 10 | 2 | 206 | — | 538 | ||||||||||||||||||||||||||
Provision for loan losses | 532 | 1,898 | (502 | ) | 417 | (15 | ) | 560 | (240 | ) | 2,650 | ||||||||||||||||||||||
Total ending allowance balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 150 | $ | 28 | $ | — | $ | 50 | $ | — | $ | — | $ | — | $ | 228 | |||||||||||||||||
Collectively evaluated for impairment | 726 | 5,168 | 610 | 792 | 131 | 832 | 814 | 9,073 | |||||||||||||||||||||||||
Total ending allowance balance | $ | 876 | $ | 5,196 | $ | 610 | $ | 842 | $ | 131 | $ | 832 | $ | 814 | $ | 9,301 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 698 | $ | 4,306 | $ | 435 | $ | 1,335 | $ | 96 | $ | 374 | $ | 7,244 | |||||||||||||||||||
Loans collectively evaluated for impairment | 46,828 | 322,325 | 27,037 | 61,785 | 5,280 | 38,937 | 502,192 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 47,526 | $ | 326,631 | $ | 27,472 | $ | 63,120 | $ | 5,376 | $ | 39,311 | $ | 509,436 | |||||||||||||||||||
31-Dec-12 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 171 | $ | 18 | $ | — | $ | — | $ | — | $ | — | $ | 189 | |||||||||||||||||
Collectively evaluated for impairment | 843 | 6,124 | 672 | 982 | 98 | 721 | 829 | 10,269 | |||||||||||||||||||||||||
Total ending allowance balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 585 | $ | 2,962 | $ | 1,371 | $ | 684 | $ | 122 | $ | 111 | $ | 5,835 | |||||||||||||||||||
Loans collectively evaluated for impairment | 45,493 | 292,668 | 21,632 | 73,669 | 6,567 | 45,830 | 485,859 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 46,078 | $ | 295,630 | $ | 23,003 | $ | 74,353 | $ | 6,689 | $ | 45,941 | $ | 491,694 | |||||||||||||||||||
31-Dec-11 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 450 | $ | 606 | $ | 504 | $ | 37 | $ | 13 | $ | — | $ | — | $ | 1,610 | |||||||||||||||||
Collectively evaluated for impairment | 883 | 6,922 | 535 | 898 | 172 | 736 | 900 | 11,046 | |||||||||||||||||||||||||
Total ending loans balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,788 | $ | 5,998 | $ | 9,440 | $ | 938 | $ | 107 | $ | 88 | $ | 18,359 | |||||||||||||||||||
Loans collectively evaluated for impairment | 44,372 | 270,646 | 18,023 | 46,424 | 10,818 | 47,877 | 438,160 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 46,160 | $ | 276,644 | $ | 27,463 | $ | 47,362 | $ | 10,925 | $ | 47,965 | $ | 456,519 | |||||||||||||||||||
The following table shows the loan portfolio allocated by management’s internal risk ratings (in thousands): | |||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Total | ||||||||||||||||||||||||||||||
Commercial | $ | 45,446 | $ | 1,107 | $ | 973 | $ | 47,526 | |||||||||||||||||||||||||
Real estate - commercial | 309,828 | 6,213 | 10,590 | 326,631 | |||||||||||||||||||||||||||||
Real estate - construction | 27,101 | 261 | 110 | 27,472 | |||||||||||||||||||||||||||||
Real estate - mortgage | 61,200 | — | 1,920 | 63,120 | |||||||||||||||||||||||||||||
Installment | 5,278 | — | 98 | 5,376 | |||||||||||||||||||||||||||||
Other | 38,611 | — | 700 | 39,311 | |||||||||||||||||||||||||||||
Total | $ | 487,464 | $ | 7,581 | $ | 14,391 | $ | 509,436 | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Total | ||||||||||||||||||||||||||||||
Commercial | $ | 44,486 | $ | 129 | $ | 1,463 | $ | 46,078 | |||||||||||||||||||||||||
Real estate - commercial | 278,834 | — | 16,796 | 295,630 | |||||||||||||||||||||||||||||
Real estate - construction | 21,386 | — | 1,617 | 23,003 | |||||||||||||||||||||||||||||
Real estate - mortgage | 71,973 | — | 2,380 | 74,353 | |||||||||||||||||||||||||||||
Installment | 6,562 | — | 127 | 6,689 | |||||||||||||||||||||||||||||
Other | 45,658 | — | 283 | 45,941 | |||||||||||||||||||||||||||||
Total | $ | 468,899 | $ | 129 | $ | 22,666 | $ | 491,694 | |||||||||||||||||||||||||
The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the probable incurred losses in the loan portfolio. In determining levels of risk, management considers a variety of factors, including, but not limited to, asset classifications, economic trends, industry experience and trends, geographic concentrations, estimated collateral values, historical loan loss experience, and the Company’s underwriting policies. During the second quarter of 2013, there was a change in the Bank’s method of calculating the historical loss factors applied to loans identified as “homogenous segments” of the loan portfolio as follows: Losses from the past twelve quarters are applied to loan pools based on a “Migration Analysis” method. The method calculates Net Charge Offs (charge offs less corresponding recoveries) and measures them against average balances in loan pools based on the risk grade in effect on charged-off loans four quarters prior to the actual charge off date. The logic behind this four quarter “look back” is to account for management’s estimate of the typical time lapse between the recognition of the problem loan and the recognition of some or all of the loan as uncollectable. In addition, the loss ratios are calculated using “factored” logic which systematically reduces the Net Charge Off value so that charge offs occurring in older periods do not have as much weight as more recent charge offs. Management of the Company believes that, given the recent trends in historical losses and the correlation of those losses with a loans identified risk grade, that incorporation of a migration analysis in the current and future analyses was a prudent refinement of the allowance methodology. In addition, management believes that the decreases in the overall level of the allowance for loan losses over the past several quarters is directionally consistent with the improving credit quality trends of the loan portfolio. The allowance for loan losses is maintained at an amount management considers adequate to cover the probable incurred losses in loans receivable. While management uses the best information available to make these estimates, future adjustments to allowances may be necessary due to economic, operating, regulatory, and other conditions that may be beyond the Company’s control. The Company also engages a third party credit review consultant to analyze the Company’s loan loss adequacy periodically. In addition, the regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on judgments different from those of management. | |||||||||||||||||||||||||||||||||
The allowance for loan losses is comprised of several components including the specific, formula and unallocated allowance relating to loans in the loan portfolio. Our methodology for determining the allowance for loan losses consists of several key elements, which include: | |||||||||||||||||||||||||||||||||
● | Specific Allowances. A specific allowance is established when management has identified unique or particular risks that were related to a specific loan that demonstrated risk characteristics consistent with impairment. Specific allowances are established when management can estimate the amount of an impairment of a loan. | ||||||||||||||||||||||||||||||||
● | Formula Allowance. The formula allowance is calculated by applying loss factors through the assignment of loss factors to homogenous pools of loans. Changes in risk grades of both performing and nonperforming loans affect the amount of the formula allowance. Loss factors are based on our historical loss experience and such other data as management believes to be pertinent. Management, also, considers a variety of subjective factors, including regional economic and business conditions that impact important segments of our portfolio, loan growth rates, the depth and skill of lending staff, the interest rate environment, and the results of bank regulatory examinations and findings of our internal credit examiners to establish the formula allowance. | ||||||||||||||||||||||||||||||||
● | Unallocated Allowance. The unallocated loan loss allowance represents an amount for imprecision or uncertainty that is inherent in estimates used to determine the allowance. | ||||||||||||||||||||||||||||||||
The Company also maintains a separate allowance for off-balance-sheet commitments. A reserve for unfunded commitments is maintained at a level that, in the opinion of management, is adequate to absorb probable losses associated with commitments to lend funds under existing agreements, for example, the Bank’s commitment to fund advances under lines of credit. The reserve amount for unfunded commitments is determined based on our methodologies described above with respect to the formula allowance. The allowance for off-balance-sheet commitments is included in accrued interest payable and other liabilities on the consolidated balance sheet and was $146,000 and $143,000, as of December 31, 2013 and 2012, respectively. |
OTHER_REAL_ESTATE_OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Real Estate [Abstract] | ' | ||||||||||||
OTHER REAL ESTATE OWNED | ' | ||||||||||||
4. OTHER REAL ESTATE OWNED | |||||||||||||
The table shows the changes in other real estate owned (OREO) during the years ended December 31 as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 22,423 | $ | 20,106 | $ | 25,784 | |||||||
Loans transferred to other real estate owned | 818 | 12,239 | 10,454 | ||||||||||
Premises transferred to other real estate owned | 627 | — | — | ||||||||||
Sales of other real estate owned | (17,204 | ) | (6,889 | ) | (12,036 | ) | |||||||
Loss on sale or write-down of other real estate owned | (3,210 | ) | (3,033 | ) | (4,096 | ) | |||||||
Balance, end of year | $ | 3,454 | $ | 22,423 | $ | 20,106 | |||||||
The following table presents the components of OREO expense (in thousands): | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating expenses | $ | 329 | $ | 523 | $ | 708 | |||||||
Provision for unrealized losses | 3,057 | 2,638 | 4,002 | ||||||||||
Net loss on sales | 153 | 395 | 94 | ||||||||||
Total other real estate owned expense | $ | 3,539 | $ | 3,556 | $ | 4,804 |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||||
5. FAIR VALUE MEASUREMENTS | |||||||||||||||||||||
The Company groups its assets and liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||||||||||
● Quoted prices in active markets for identical assets (Level 1): Inputs that are quoted unadjusted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An active market for the asset is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |||||||||||||||||||||
● Significant other observable inputs (Level 2): Inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity including quoted prices for similar assets or liabilities, quoted prices for securities in inactive markets and inputs derived principally from, or corroborated by, observable market data by correlation or other means. | |||||||||||||||||||||
● Significant unobservable inputs (Level 3): Inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. | |||||||||||||||||||||
Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. | |||||||||||||||||||||
Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. | |||||||||||||||||||||
The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis (in thousands): | |||||||||||||||||||||
Recurring Basis | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 18,198 | $ | — | $ | 18,198 | $ | — | |||||||||||||
Obligations of state and political subdivisions | 5,317 | — | 5,317 | — | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 248,277 | — | 248,277 | — | |||||||||||||||||
Corporate debt securities | 4,755 | — | 4,755 | — | |||||||||||||||||
Equity securities | 2,932 | — | 2,932 | — | |||||||||||||||||
$ | 279,479 | $ | — | $ | 279,479 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 21,118 | $ | — | $ | 21,118 | $ | — | |||||||||||||
Obligations of state and political subdivisions | 11,197 | — | 11,197 | — | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 245,631 | — | 245,631 | — | |||||||||||||||||
Corporate debt securities | 4,756 | — | 4,756 | — | |||||||||||||||||
Equity securities | 3,113 | — | 3,113 | — | |||||||||||||||||
$ | 285,815 | $ | — | $ | 285,815 | $ | — | ||||||||||||||
Fair values for Level 2 available-for-sale investment securities are based on quoted market prices for similar securities. During the year ended December 31, 2013, there were no transfers between Levels 1 and 2. | |||||||||||||||||||||
There were no liabilities measured at fair value on a recurring basis at December 31, 2013 or 2012. | |||||||||||||||||||||
Nonrecurring Basis | |||||||||||||||||||||
Total at | |||||||||||||||||||||
December 31, | Fair Value Measurements Using: | ||||||||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | Total Losses | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 157 | $ | — | $ | — | $ | 157 | $ | 63 | |||||||||||
Real estate - commercial | 593 | — | — | 593 | 239 | ||||||||||||||||
Real estate - construction | 110 | — | — | 110 | 71 | ||||||||||||||||
Real estate - mortgage | 291 | — | — | 291 | 42 | ||||||||||||||||
Other | 164 | — | — | 164 | 71 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - commercial | 570 | — | — | 570 | 57 | ||||||||||||||||
Real estate - construction | 2,147 | — | — | 2,147 | 1,125 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 4,032 | $ | — | $ | — | $ | 4,032 | $ | 1,668 | |||||||||||
Total at | |||||||||||||||||||||
December 31, | Fair Value Measurements Using: | ||||||||||||||||||||
2012 | Level 1 | Level 2 | Level 3 | Total Losses | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 585 | $ | — | $ | — | $ | 585 | $ | 126 | |||||||||||
Real estate - commercial | 2,222 | — | — | 2,222 | 1,313 | ||||||||||||||||
Real estate - construction | 143 | — | — | 143 | 19 | ||||||||||||||||
Real estate - mortgage | 464 | — | — | 464 | 29 | ||||||||||||||||
Installment | 75 | — | — | 75 | 27 | ||||||||||||||||
Other | 25 | — | — | 25 | 24 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - construction | 7,360 | — | — | 7,360 | 2,194 | ||||||||||||||||
Real estate - mortgage | 184 | — | — | 184 | 140 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 11,058 | $ | — | $ | — | $ | 11,058 | $ | 3,872 | |||||||||||
Impaired Loans - The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available, and additional discounts by management for known market factors and time since the last appraisal. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. | |||||||||||||||||||||
Other Real Estate Owned – Nonrecurring adjustments to certain commercial and residential real estate properties classified as other real estate owned (OREO) are measured at fair value, less costs to sell. Fair values are based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||||||
The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis (in thousands): | |||||||||||||||||||||
Range | |||||||||||||||||||||
(Weighted | |||||||||||||||||||||
31-Dec-13 | Fair Value | Valuation Techniques | Unobservable Inputs | Average) | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 157 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - commercial | $ | 593 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 110 | Sales comparison approach | Adjustment for differences between the comparable sales | 2% to 3% (3%) | ||||||||||||||||
Real estate - mortgage | $ | 291 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other | $ | 164 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - commercial | $ | 570 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 2,147 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% to 6% (6%) | ||||||||||||||||
Range | |||||||||||||||||||||
(Weighted | |||||||||||||||||||||
Monday, December 31, 2012 | Fair Value | Valuation Techniques | Unobservable Inputs | Average) | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 585 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - commercial | $ | 2,222 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 143 | Sales comparison approach | Adjustment for differences between the comparable sales | 2% to 3% (3%) | ||||||||||||||||
Real estate - mortgage | $ | 464 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other | $ | 25 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - construction | $ | 7,360 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% to 6% (6%) | ||||||||||||||||
Real estate - mortgage | $ | 184 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Disclosures about Fair Value of Financial Instruments | |||||||||||||||||||||
The fair values presented represent the Company’s best estimate of fair value using the methodologies discussed below. The fair values of financial instruments which have a relatively short period of time between their origination and their expected realization were valued using historical cost. The values assigned do not necessarily represent amounts which ultimately may be realized. In addition, these values do not give effect to discounts to fair value which may occur when financial instruments are sold in larger quantities. | |||||||||||||||||||||
The following assumptions were used as of December 31, 2013 and 2012 to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value. | |||||||||||||||||||||
a) | Cash and Due From Banks - The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | ||||||||||||||||||||
b) | Federal Funds Sold - The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. | ||||||||||||||||||||
c) | Time Deposits at Other Financial Institutions - The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 2. | ||||||||||||||||||||
d) | FHLB, FRB Stock and Other Securities - It was not practicable to determine the fair value of FHLB or FRB stock due to the restrictions placed on its transferability. | ||||||||||||||||||||
e) | Investment Securities – The fair value of investment securities are based on quoted market prices, if available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Available-for-sale securities are carried at fair value. | ||||||||||||||||||||
f) | Loans - Commercial loans, residential mortgages, construction loans and direct financing leases are segmented by fixed and adjustable rate interest terms, by maturity, and by performing and nonperforming categories. | ||||||||||||||||||||
The fair values of performing loans are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other 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 resulting in a Level 3 classification. Impaired loans are valued at the lower of cost or fair value as described previously. The methods utilized to estimate the fair value of loans do not necessarily represent an exit price. | |||||||||||||||||||||
The fair value of nonperforming loans is estimated by discounting estimated future cash flows using current interest rates with an additional risk adjustment reflecting the individual characteristics of the loans, or using the fair value of underlying collateral for collateral dependent loans as a practical expedient. | |||||||||||||||||||||
g) | Deposits – The fair values disclosed for noninterest-bearing and interest-bearing demand deposits and savings and money market accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. Fair values for certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. | ||||||||||||||||||||
h) | Subordinated Debentures - The fair values of the Company’s subordinated debentures are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. | ||||||||||||||||||||
i) | Commitments to Fund Loans/Standby Letters of Credit - The fair values of commitments are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The differences between the carrying value of commitments to fund loans or standby letters of credit and their fair value are not significant and therefore not included in the following table. | ||||||||||||||||||||
j) | Accrued Interest Receivable/Payable – The carrying amounts of accrued interest approximate fair value and therefore follow the same classification as the related asset or liability. | ||||||||||||||||||||
The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (in thousands): | |||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||
December 31, 2013 Using | |||||||||||||||||||||
Carrying | |||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||||||
Cash and due from banks | $ | 19,348 | $ | 19,348 | $ | — | $ | — | $ | 19,348 | |||||||||||
Federal funds sold | 38,135 | 38,135 | — | — | 38,135 | ||||||||||||||||
Time deposits at other financial institutions | 2,226 | — | 2,226 | — | 2,226 | ||||||||||||||||
FHLB, FRB and other securities | 8,402 | — | — | — | N/A | ||||||||||||||||
Securities: | |||||||||||||||||||||
Available-for-sale | 279,479 | — | 279,479 | — | 279,479 | ||||||||||||||||
Held-to-maturity | 2 | — | 2 | — | 2 | ||||||||||||||||
Loans | 499,943 | — | 510,611 | 510,611 | |||||||||||||||||
Accrued interest receivable | 2,124 | — | 692 | 1,432 | 2,124 | ||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Nonmaturity deposits | $ | 638,112 | $ | 638,112 | $ | — | $ | — | $ | 638,112 | |||||||||||
Time deposits | 149,737 | — | 149,899 | — | 149,899 | ||||||||||||||||
Subordinated debentures | 21,651 | — | — | 7,702 | 7,702 | ||||||||||||||||
Accrued interest payable | 108 | 2 | 29 | 77 | 108 | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||
December 31, 2012 Using | |||||||||||||||||||||
Carrying | |||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||||||
Cash and due from banks | $ | 22,654 | $ | 22,654 | $ | — | $ | — | $ | 22,654 | |||||||||||
Federal funds sold | 15,865 | 15,865 | — | — | 15,865 | ||||||||||||||||
Time deposits at other financial institutions | 2,219 | — | 2,219 | — | 2,219 | ||||||||||||||||
FHLB, FRB and other securities | 8,313 | — | — | — | N/A | ||||||||||||||||
Securities: | |||||||||||||||||||||
Available-for-sale | 285,815 | — | 285,815 | — | 285,815 | ||||||||||||||||
Held-to-maturity | 6 | — | 6 | — | 6 | ||||||||||||||||
Loans | 481,753 | — | — | 500,689 | 500,689 | ||||||||||||||||
Accrued interest receivable | 2,217 | — | 767 | 1,450 | 2,217 | ||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Nonmaturity deposits | $ | 596,204 | $ | 596,204 | $ | — | $ | — | $ | 596,204 | |||||||||||
Time deposits | 172,376 | — | 172,805 | — | 172,805 | ||||||||||||||||
Subordinated debentures | 21,651 | — | — | 9,018 | 9,018 | ||||||||||||||||
Accrued interest payable | 136 | 2 | 54 | 80 | 136 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
PREMISES AND EQUIPMENT | ' | ||||||||
6. PREMISES AND EQUIPMENT | |||||||||
Major classifications of premises and equipment at December 31 are summarized as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Land | $ | 2,207 | $ | 2,620 | |||||
Building and building improvements | 8,696 | 9,341 | |||||||
Furniture, fixtures and equipment | 12,716 | 12,599 | |||||||
Leasehold improvements | 2,805 | 2,791 | |||||||
Construction in process | 26 | 5 | |||||||
Total premises and equipment | 26,450 | 27,356 | |||||||
Less: Accumulated depreciation | (18,617 | ) | (18,175 | ) | |||||
Premises and equipment, net | $ | 7,833 | $ | 9,181 | |||||
Depreciation and amortization included in occupancy and equipment expense totaled $1,019,000, $1,080,000 and $1,197,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
The Company has operating leases for certain premises and equipment. These leases expire on various dates through 2023 and have various renewal options ranging from 1 to 25 years. Rent expense for such leases for the years ended December 31, 2013, 2012 and 2011 was $1,107,000, $1,109,000 and $1,252,000, respectively. | |||||||||
The following schedule represents the Company’s noncancelable future minimum scheduled lease payments at December 31, 2013 (in thousands): | |||||||||
2014 | $ | 1,047 | |||||||
2015 | 793 | ||||||||
2016 | 469 | ||||||||
2017 | 299 | ||||||||
2018 | 226 | ||||||||
Thereafter | 910 | ||||||||
Total | $ | 3,744 |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
OTHER ASSETS | ' | ||||||||
7. OTHER ASSETS | |||||||||
Major classifications of other assets at December 31 were as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Deferred taxes, net | $ | 15,309 | $ | 12,346 | |||||
Federal and state tax receivable | 1,314 | 444 | |||||||
Prepaid expenses | 767 | 879 | |||||||
Mortgage and SBA servicing asset | 1,362 | 1,139 | |||||||
Other | 748 | 789 | |||||||
Total other assets | $ | 19,500 | $ | 15,597 | |||||
Originated mortgage and SBA servicing assets totaling $706,000, $628,000 and $421,000 were recognized during the years ended December 31, 2013, 2012 and 2011, respectively. Amortization of mortgage and SBA servicing assets totaled $483,000, $343,000 and $275,000 for the years ended December 31, 2013, 2012 and 2011, respectively. There were no impairment charges to mortgage servicing assets during the years ended December 31, 2013, 2012 and 2011. At December 31, 2013 and 2012, the Company serviced real estate loans and loans guaranteed by the Small Business Administration which it had sold to the secondary market of approximately $188,484,000 and $159,010,000, respectively. Fair value of loan servicing assets at year-end 2013 was determined using discount rates ranging from 9.25% to 12.75%, prepayment speeds ranging from 144psa to 320psa, depending on the stratification of the specific right, and a weighted average default rate of 1.25%. Fair value of loan servicing assets at year-end 2012 was determined using discount rates ranging from 9.25% to 12.75%, prepayment speeds ranging from 318psa to 512psa, depending on the stratification of the specific right; and a weighted average default rate of 1.25%. |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deposits [Abstract] | ' | ||||||||
DEPOSITS | ' | ||||||||
8. DEPOSITS | |||||||||
The following table summarizes the Company’s deposits by type for the years ended December 31 (in thousands): | |||||||||
2013 | 2012 | ||||||||
Noninterest-bearing demand | $ | 184,971 | $ | 177,855 | |||||
Interest-bearing demand | 202,508 | 185,315 | |||||||
Savings and money market | 250,633 | 233,034 | |||||||
Time certificates | 149,737 | 172,376 | |||||||
Total deposits | $ | 787,849 | $ | 768,580 | |||||
The aggregate amount of time certificates of deposit in denominations of $100,000 or more was $71,218,000 and $82,036,000 at December 31, 2013 and 2012, respectively. Interest expense incurred on such time certificates of deposit was $399,000, $805,000 and $1,245,000 for the years ended December 31, 2013, 2012 and 2011. At December 31, 2013, the scheduled maturities of all time deposits were as follows (in thousands): | |||||||||
Years | Amount | ||||||||
2014 | $ | 125,808 | |||||||
2015 | 15,498 | ||||||||
2016 | 6,021 | ||||||||
2017 | 2,410 | ||||||||
$ | 149,737 |
LINES_OF_CREDIT
LINES OF CREDIT | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Line of Credit Facility [Abstract] | ' | ||||||
LINES OF CREDIT | ' | ||||||
9. LINES OF CREDIT | |||||||
At December 31, 2013, the Company had the following lines of credit with correspondent banks to purchase federal funds (in thousands): | |||||||
Description | Amount | Expiration | |||||
Secured: | |||||||
Secured fed funds | $ | 10,000 | 6/30/14 | ||||
First deeds of trust on eligible 1-4 unit residential loans | $ | 70,932 | Monthly | ||||
Securities backed credit program | $ | 189,757 | Monthly | ||||
Discount -securities | $ | 2,131 | Monthly | ||||
The Company did not have outstanding balances for FHLB advances or Federal Funds purchased at December 31, 2013 and 2012. |
SUBORDINATED_DEBENTURES
SUBORDINATED DEBENTURES | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Subordinated Debt [Abstract] | ' | ||||||||||||||||||||||
SUBORDINATED DEBENTURES | ' | ||||||||||||||||||||||
10. SUBORDINATED DEBENTURES | |||||||||||||||||||||||
The Company owns the common stock of three business trusts that have issued an aggregate of $21.0 million in trust preferred securities fully and unconditionally guaranteed by the Company. The entire proceeds of each respective issuance of trust preferred securities were invested by the separate business trusts into junior subordinated debentures issued by the Company, with identical maturity, repricing and payment terms as the respective issuance of trust preferred securities. The aggregate amount of junior subordinated debentures issued by the Company is $22.0 million, with the maturity dates for the respective debentures ranging from 2033 through 2036. Subject to regulatory approval, the Company may redeem the respective junior subordinated debentures earlier than the maturity date, with certain of the debentures being redeemable beginning in April 2008, July 2009 and March 2011. | |||||||||||||||||||||||
On November 9, 2009, the Company elected to defer the payment of interest on these securities. The Company is allowed to defer the payment of interest for up to 20 consecutive quarterly periods without triggering an event of default. The obligation to pay interest is cumulative and continued to accrue. On May 29, 2012, the Company received approval from the Federal Reserve Bank of San Francisco and on May 9, 2012, the Company received approval from the California Department of Financial Institutions to pay all deferred interest on its junior subordinated notes underlying its trust preferred securities in the amount of $5,854,000 and to fully redeem its North Valley Capital Trust I notes in the amount of $10,310,000, bearing an interest rate of 10.25%. On July 23, 2012, the Company paid all deferred interest on its junior subordinated notes and on July 25, 2012, it redeemed, in full, the notes associated with North Valley Capital Trust I. | |||||||||||||||||||||||
The obligation to pay interest on the Debentures is cumulative and will continue to accrue, currently at a variable rate of 3.49% on the 2033 Debentures, variable rate of 3.04% on the 2034 Debentures and a variable rate of 1.57% on the 2036 Debentures. Interest is generally set at variable rates based on the three-month LIBOR, reset and payable quarterly, plus 3.25% for the 2033 Debentures, plus 2.80% for the 2034 Debentures, and plus 1.33% for the 2036 Debentures. At December 31, 2013 and 2012, the Company had recorded accrued and unpaid interest payments of $77,000 and $79,000, respectively. | |||||||||||||||||||||||
The trust preferred securities issued by the trusts are currently included in Tier 1 capital in the amount of $21,000,000 for purposes of determining Leverage, Tier 1 and Total Risk-Based capital ratios for the year ending December 31, 2013 and 2012. | |||||||||||||||||||||||
The following table summarizes the terms of each subordinated debenture issuance (dollars in thousands): | |||||||||||||||||||||||
Fixed or | |||||||||||||||||||||||
Date | Variable | Current | Rate | Redemption | Amount at December 31, | ||||||||||||||||||
Series | Issued | Maturity | Rate | Rate | Index | Date | 2013 | 2012 | |||||||||||||||
North Valley Capital Trust II | 4/10/03 | 4/24/33 | Variable | 3.49 | % | LIBOR + 3.25% | 4/24/08 | 6,186 | 6,186 | ||||||||||||||
North Valley Capital Trust III | 5/5/04 | 4/24/34 | Variable | 3.04 | % | LIBOR + 2.80% | 7/23/09 | 5,155 | 5,155 | ||||||||||||||
North Valley Capital Statutory Trust IV | 12/29/05 | 3/15/36 | Variable | 1.57 | % | LIBOR + 1.33% | 3/15/11 | 10,310 | 10,310 | ||||||||||||||
$ | 21,651 | $ | 21,651 | ||||||||||||||||||||
Deferred costs related to the Subordinated Debentures, which are included in other assets in the accompanying consolidated balance sheet, totaled $0 and $6,000 at December 31, 2013 and 2012, respectively. Amortization of the deferred costs was $6,000, $20,000 and $42,000 for the years ended December 31, 2013, 2012 and 2011, respectively. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
11. INCOME TAXES | |||||||||||||
The provision (benefit) for income taxes for the years ended December 31, was as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax (benefit) provision: | |||||||||||||
Federal | $ | (75 | ) | $ | (99 | ) | $ | 63 | |||||
State | (15 | ) | 117 | 46 | |||||||||
Total | (90 | ) | 18 | 109 | |||||||||
Deferred tax provision (benefit): | |||||||||||||
Federal | 1,472 | 2,715 | 695 | ||||||||||
State | 212 | (200 | ) | (269 | ) | ||||||||
Impact of valuation allowance | — | (4,277 | ) | (223 | ) | ||||||||
Total | 1,684 | (1,762 | ) | 203 | |||||||||
Total provision (benefit) for income taxes | $ | 1,594 | $ | (1,744 | ) | $ | 312 | ||||||
Current and deferred tax provision (benefit) for the years ended December 31, 2013, 2012 and 2011 was $1,594,000, ($1,744,000), and $312,000, respectively. During 2010, the Company recorded a partial valuation allowance of $4,500,000 against the Company’s deferred tax asset. During the quarter ended December 31, 2011, the Company reversed the Federal portion of its valuation allowance in the amount of $223,000, and during the quarter ended September 30, 2012 the Company reversed the remaining State valuation allowance of $4,277,000. | |||||||||||||
At December 31, 2013, the Bank had Federal and State net operating loss carryforwards (NOLs) for tax purposes of approximately $4,627,000 and $26,586,000, respectively. The Company’s Federal NOLs will expire in 2031 and its California NOLs will expire in 2032 if not fully utilized. | |||||||||||||
The effective federal tax rate for the years ended December 31, differs from the statutory tax rate as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||
State income taxes net of Federal income tax benefit | 2.50% | (1.2% | ) | (4.3% | ) | ||||||||
Tax exempt income | (2.5% | ) | (4.0% | ) | (6.5% | ) | |||||||
Impact of valuation allowance | — | (61.1% | ) | (6.6% | ) | ||||||||
Increase in reserve for uncertain tax positions | — | — | 1.20% | ||||||||||
Other | (4.4% | ) | (7.1% | ) | (9.5% | ) | |||||||
Effective tax (benefit) rate | 30.60% | (38.4% | ) | 9.30% | |||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred tax asset at December 31 are as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 4,490 | $ | 5,252 | |||||||||
Accrued pension obligation | 3,573 | 3,070 | |||||||||||
Underfunded pension obligation | 893 | 1,125 | |||||||||||
Deferred compensation | 811 | 755 | |||||||||||
Unrealized loss on available-for-sale securities | 2,595 | — | |||||||||||
Discount on acquired loans | — | 14 | |||||||||||
Stock based compensation | 166 | 181 | |||||||||||
Tax credits | 2,634 | 2,092 | |||||||||||
Net operating loss | 4,501 | 4,109 | |||||||||||
Capital loss | 26 | 489 | |||||||||||
Other real estate owned | 684 | 2,597 | |||||||||||
Other | 526 | 864 | |||||||||||
Total deferred tax assets | $ | 20,899 | $ | 20,548 | |||||||||
Deferred tax liabilities: | |||||||||||||
Tax depreciation in excess of book depreciation | 1,069 | 1,149 | |||||||||||
FHLB stock dividend | 410 | 410 | |||||||||||
Deferred loan fees and costs | 894 | 986 | |||||||||||
Originated mortgage servicing rights | 463 | 412 | |||||||||||
Core deposit intangibles | 50 | 117 | |||||||||||
Unrealized gain on available-for-sale securities | — | 2,284 | |||||||||||
Market to market adjustment | — | 28 | |||||||||||
California franchise tax | 2,538 | 2,612 | |||||||||||
Other | 166 | 204 | |||||||||||
Total deferred tax liabilities | $ | 5,590 | $ | 8,202 | |||||||||
Net deferred tax asset | $ | 15,309 | $ | 12,346 | |||||||||
The Company and its subsidiaries file income tax returns in the United States and California jurisdictions. There are currently no pending federal tax examinations by tax authorities. With few exceptions, the Company is no longer subject to examination by federal taxing authorities for the years ended on or before December 31, 2009 and by state and local taxing authorities for years ended on or before December 31, 2008. The Company’s primary market areas are designated as “Enterprise Zones” and the Company receives tax credits for hiring individuals in these markets and receives an interest deduction for loans made in designated enterprise zones. The tax credits and interest deductions are significant to the Company in reducing its effective tax rate. These positions could be challenged by the California Franchise Tax Board, and an unfavorable adjustment could occur. The California Franchise Tax Board is currently conducting examinations of the State of California returns for 2003, 2004, 2007 and 2008. | |||||||||||||
The Company determined its unrecognized tax benefit to be $519,000 for the years ended December 31, 2013 and 2012. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 519 | $ | 519 | |||||||||
Additions based on tax positions related to the current year | — | — | |||||||||||
Additions for tax positions of prior years | — | — | |||||||||||
Reductions for tax positions of prior years | — | — | |||||||||||
Settlements | — | — | |||||||||||
Ending balance | $ | 519 | $ | 519 | |||||||||
Of this total, the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective income tax rate in future periods is not considered significant for disclosure purposes. The Company does not expect the total amount of unrecognized tax benefits to significantly increase or decrease in the next twelve months. | |||||||||||||
During the year ended December 31, 2013, the Company was not assessed any interest and penalties. The Company had approximately $86,000 and $42,000 for the payment of interest and penalties accrued at December 31, 2013 and 2012, respectively. |
PENSION_AND_OTHER_BENEFIT_PLAN
PENSION AND OTHER BENEFIT PLANS | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
PENSION AND OTHER BENEFIT PLANS | ' | ||||||||||||
12. PENSION AND OTHER BENEFIT PLANS | |||||||||||||
Substantially all employees with at least one year of service participate in a Company-sponsored employee stock ownership plan (ESOP). The Company made discretionary contributions to the ESOP of $80,000, for the years ended December 31, 2013 and 2012, respectively and $40,000 for the year ended December 31, 2011. At December 31, 2013 and 2012, the ESOP owned approximately 48,794 and 47,445, respectively, shares of the Company’s common stock. | |||||||||||||
The Company maintains a 401(k) plan covering employees who have completed 1,000 hours of service during a 12-month period and are age 21 or older. Voluntary employee contributions are partially matched by the Company. The Company made contributions to the plan of $208,000, $172,000 and $69,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The Company has a nonqualified executive deferred compensation plan for key executives and directors. Under this plan, participants voluntarily elect to defer a portion of their salary, bonus or fees and the Company is required to credit these deferrals with interest. The Company’s deferred compensation obligation of $1,770,000 and $1,697,000 as of December 31, 2013 and 2012, respectively, is included in accrued interest payable and other liabilities. The interest cost for this plan was $135,000, $132,000 and $141,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The Company has a supplemental retirement plan for key executives, certain retired key executives and directors. These plans are nonqualified defined benefit plans and are unsecured and unfunded. The Company has purchased insurance on the lives of the participants and holds policies with cash surrender values of $37,209,000 and $36,045,000 at December 31, 2013 and 2012, respectively. The related accrued pension obligation of $9,973,000 and $9,443,000 as of December 31, 2013 and 2012, respectively, is included in accrued interest payable and other liabilities. | |||||||||||||
The following tables set forth the status of the nonqualified supplemental retirement defined benefit pension plans at or for the year ended December 31 (in thousands): | |||||||||||||
Pension Benefits | |||||||||||||
2013 | 2012 | ||||||||||||
Change in projected benefit obligation (PBO) | |||||||||||||
Benefit obligation at the beginning of the year | $ | 9,443 | $ | 7,397 | |||||||||
Service cost | 683 | 602 | |||||||||||
Interest cost | 372 | 334 | |||||||||||
Benefit payments | (250 | ) | (250 | ) | |||||||||
Actuarial loss | (275 | ) | 1,360 | ||||||||||
Plan amendments | — | — | |||||||||||
Projected benefit obligation at end of year | $ | 9,973 | $ | 9,443 | |||||||||
Accumulated benefit obligation at end of year | $ | 7,639 | $ | 7,031 | |||||||||
Change in plan assets: | |||||||||||||
Employer contributions | $ | 250 | $ | 250 | |||||||||
Benefit payments | (250 | ) | (250 | ) | |||||||||
Fair value of plan assets at end of year | $ | — | $ | — | |||||||||
Funded status | $ | (9,973 | ) | $ | (9,443 | ) | |||||||
Amounts recognized in statements of financial position | |||||||||||||
Current liability | (300 | ) | (278 | ) | |||||||||
Noncurrent liability | (9,673 | ) | (9,165 | ) | |||||||||
Net amount recognized | $ | (9,973 | ) | $ | (9,443 | ) | |||||||
Amounts recognized in accumulated other comprehensive income | |||||||||||||
Prior service cost | 305 | 403 | |||||||||||
Net loss | 1,872 | 2,342 | |||||||||||
Net amount recognized | $ | 2,177 | $ | 2,745 | |||||||||
Total amount recognized | (7,796 | ) | (6,698 | ) | |||||||||
Assumptions used to determine benefit obligations as of the end of fiscal year | |||||||||||||
Measurement Date | 12/31/13 | 12/31/12 | 12/31/11 | ||||||||||
Discount rate | 4.75 | % | 4 | % | 4.6 | % | |||||||
Expected return on assets | N/A | N/A | N/A | ||||||||||
Rate of compensation increase | 8 | % | 8 | % | 8 | % | |||||||
Components of net periodic benefits cost | 2013 | 2012 | 2011 | ||||||||||
Service cost | $ | 683 | $ | 602 | $ | 549 | |||||||
Interest cost | 372 | 334 | 333 | ||||||||||
Amortization of prior service cost | 98 | 98 | 98 | ||||||||||
Amortization of actuarial loss | 195 | 40 | 10 | ||||||||||
Net periodic benefit cost | $ | 1,348 | $ | 1,074 | $ | 990 | |||||||
Other comprehensive (income) loss | $ | (568 | ) | $ | 1,222 | $ | 748 | ||||||
Amounts included in accumulated other comprehensive income expected to be recognized during the next fiscal year | |||||||||||||
Prior service cost | $ | 98 | $ | 98 | $ | 98 | |||||||
Actuarial loss | $ | 142 | $ | 195 | $ | 39 | |||||||
Assumptions used in computing net periodic benefit cost | |||||||||||||
Measurement Date | 12/31/13 | 12/31/12 | 12/31/11 | ||||||||||
Discount rate | 4.75 | % | 4 | % | 4.6 | % | |||||||
Expected return on assets | N/A | N/A | N/A | ||||||||||
Rate of compensation increase | 8 | % | 8 | % | 8 | % | |||||||
Estimated costs expected to be accrued in 2014 are $1,382,000. The following table presents the benefits expected to be paid under the plan in the periods indicated (in thousands): | |||||||||||||
Year | Pension Benefits | ||||||||||||
2014 | 300 | ||||||||||||
2015 | 346 | ||||||||||||
2016 | 2,402 | ||||||||||||
2017 | 378 | ||||||||||||
2018 | 461 | ||||||||||||
2019 - 2021 | 6,997 | ||||||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||||||||||
13. STOCK-BASED COMPENSATION | |||||||||||||||||||||||||
During 2013 and 2012 each director of the Company was awarded 180 shares of common stock for their share retainer grant. Total common stock grants were 1,440 during 2013 and 2012, respectively, and 1,260 during 2011. Compensation cost related to these awards was recognized based on the fair value of the shares at the date of the award which equaled $18.84, $13.10 and $10.40 per share, or a total expense of $27,000, $19,000 and $13,000, for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Under the Company’s stock option plans as of December 31, 2013, there were 241,635 shares of the Company’s common stock available for future grants to directors and employees of the Company. Under the Director Plan, options may not be granted at a price less than 85% of fair value at the date of the grant. Under the Employee Plan, options may not be granted at a price less than the fair value at the date of the grant. Under both plans, options may be exercised over a ten year term. The vesting period is generally five years; however the vesting period can be modified at the discretion of the Company’s Board of Directors. A summary of outstanding stock options follows: | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Weighted | Average | ||||||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||||||||||
Options | Price | Term | Value ($000) | ||||||||||||||||||||||
Outstanding January 1, 2011 | 152,095 | 51.02 | |||||||||||||||||||||||
Granted | 66,000 | 10.38 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (34,025 | ) | 39.66 | ||||||||||||||||||||||
Outstanding December 31, 2011 | 184,070 | 38.55 | |||||||||||||||||||||||
Granted | 77,908 | 11.13 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (13,156 | ) | 49.1 | ||||||||||||||||||||||
Outstanding December 31, 2012 | 248,822 | $ | 29.4 | ||||||||||||||||||||||
Granted | 114,234 | 16.8 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (8,346 | ) | 63.32 | ||||||||||||||||||||||
Outstanding December 31, 2013 | 354,710 | $ | 24.55 | 7 | $ | 1,403 | |||||||||||||||||||
Fully vested and exercisable at December 31, 2013 | 138,607 | $ | 40.97 | 5 | $ | 345 | |||||||||||||||||||
Options expected to vest | 216,103 | $ | 14.01 | 9 | $ | 1,059 | |||||||||||||||||||
Information about stock options outstanding at December 31, 2013 is summarized as follows: | |||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Average | Exercise | Exercise | |||||||||||||||||||||||
Remaining | Price of | Price of | |||||||||||||||||||||||
Range of | Options | Contractual | Options | Options | Options | ||||||||||||||||||||
Exercise Prices | Outstanding | Life (Years) | Outstanding | Exercisable | Exercisable | ||||||||||||||||||||
$ | 0-12.38 | 140,408 | 7.9 | $ | 10.77 | 41,079 | $ | 10.65 | |||||||||||||||||
$ | 12.38-24.75 | 162,372 | 7.9 | $ | 18.64 | 45,598 | $ | 23.54 | |||||||||||||||||
$ | 61.88-74.25 | 22,229 | 4.07 | $ | 65.05 | 22,229 | $ | 65.05 | |||||||||||||||||
$ | 74.25-86.63 | 10,012 | 1.15 | $ | 81 | 10,012 | $ | 81 | |||||||||||||||||
$ | 86.63-99.00 | 5,514 | 2.02 | $ | 89.6 | 5,514 | $ | 89.6 | |||||||||||||||||
$ | 99.00-111.38 | 14,175 | 2.39 | $ | 99.98 | 14,175 | $ | 99.98 | |||||||||||||||||
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at December 31, 2013. There were no options exercised during the years ended December 31, 2013, 2012 and 2011. The total fair value of the options that vested during the years ended December 31, 2013, 2012 and 2011 totaled $405,000, $191,000 and $144,000, respectively. | |||||||||||||||||||||||||
The compensation cost that has been charged against income for stock based compensation was $432,000, $210,000 and $157,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
At December 31, 2013, the total unrecognized compensation cost related to stock-based awards granted to employees under the Company’s stock option plans was $1,404,000. This cost will be amortized on a straight-line basis over a weighted average period of approximately 3.7 years and will be adjusted for subsequent changes in estimated forfeitures. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
14. COMMITMENTS AND CONTINGENCIES | |
The Company is involved in legal actions arising from normal business activities. Management, based upon the advice of legal counsel, believes that the ultimate resolution of all pending legal actions will not have a material effect on the Company’s financial position or results of its operations or its cash flows. | |
The Company was contingently liable under letters of credit issued on behalf of its customers in the amount of $4,557,000 and $4,713,000 at December 31, 2013 and 2012, respectively. At December 31, 2013, commercial and consumer lines of credit and real estate loans of approximately $38,683,000 and $35,264,000, respectively, were undisbursed. At December 31, 2012, commercial and consumer lines of credit and real estate loans of approximately $47,350,000 and $31,925,000, respectively, were undisbursed. Approximately 87% of these undisbursed loan commitments are associated with variable rate loans. | |
Loan commitments are typically contingent upon the borrower meeting certain financial and other covenants and such commitments typically have fixed expiration dates and require payment of a fee. As many of these commitments are expected to expire without being drawn upon, the total commitments do not necessarily represent future cash requirements. The Company evaluates each potential borrower and the necessary collateral on an individual basis. Collateral varies, but may include real property, bank deposits, debt securities, equity securities or business or personal assets. | |
Standby letters of credit are conditional commitments written by the Company to guarantee the performance of a customer to a third party. These guarantees are issued primarily relating to inventory purchases by the Company’s commercial customers and such guarantees are typically short term. Credit risk is similar to that involved in extending loan commitments to customers and the Company, accordingly, uses evaluation and collateral requirements similar to those for loan commitments. Virtually all of such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at December 31, 2013 and 2012. The Company recognizes these fees as revenues over the term of the commitment or when the commitment is used. | |
Loan commitments and standby letters of credit involve, to varying degrees, elements of credit and market risk in excess of the amounts recognized in the balance sheet and do not necessarily represent the actual amount subject to credit loss. At December 31, 2013 and 2012, the reserve for unfunded commitments totaled $146,000 and $143,000, respectively. | |
In management’s opinion, a concentration exists in real estate-related loans which represent approximately 82% and 80% of the Company’s loan portfolio for years ended December 31, 2013 and 2012. Although management believes such concentrations to have no more than the normal risk of collectibility, a continued substantial decline in the economy in general, or a continued decline in real estate values in the Company’s primary market areas in particular, could have an adverse impact on collectibility of these loans. However, personal and business income represents the primary source of repayment for a majority of these loans. | |
On January 24, 2014, a putative shareholder class action lawsuit titled John Solak v. North Valley Bancorp, et al. was filed in the Superior Court of the State of California, County of Shasta. TriCo Bancshares and all of the individuals serving as Directors of the Company are also named as defendants. The complaint alleges breach of fiduciary duty and aiding and abetting breach of fiduciary duty in connection with the Agreement and Plan of Merger and Reorganization signed between the Company and TriCo Bancshares on January 21, 2014. The Company and the Directors have not yet responded to the complaint. The Company and its legal counsel believe the complaint's claims are without merit. The resolution of this matter is not expected to have a material impact on the Company's business, financial condition or results of operations, though no assurance can be given in this regard. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
RELATED PARTY TRANSACTIONS | ' | ||||||||
15. RELATED PARTY TRANSACTIONS | |||||||||
At December 31, 2013 and 2012 the Company provided loans or had commitments to lend to, certain officers, directors and their associates and principal shareholders. | |||||||||
A summary of activity for the years ended December 31 were as follows (in thousands; renewals are not reflected as either new loans or repayments): | |||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 4,689 | $ | 4,681 | |||||
Borrowings | 126 | 525 | |||||||
Repayments | (423 | ) | (517 | ) | |||||
$ | 4,392 | $ | 4,689 | ||||||
Undisbursed commitments | $ | 116 | $ | 199 |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||||||||
16. REGULATORY MATTERS | |||||||||||||||||||||||||
The Company and NVB are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines, the Company and NVB must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. These quantitative measures are established by regulation and require that minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined) are maintained. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. | |||||||||||||||||||||||||
NVB is also subject to additional capital guidelines under the regulatory framework for prompt corrective action. To be categorized as well capitalized, NVB must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. The most recent notifications from the FDIC for NVB as of December 31, 2013 categorized NVB as well-capitalized under these guidelines. There are no conditions or events since that notification that management believes have changed NVB’s category. | |||||||||||||||||||||||||
Management believes, as of December 31, 2013 and 2012, that the Company and NVB met all capital adequacy requirements to which they are subject. There are no conditions or events since that management believes have changed the categories. | |||||||||||||||||||||||||
The Company’s and NVB’s actual capital amounts (in thousands) and ratios are also presented in the following tables. | |||||||||||||||||||||||||
To be Well Capitalized | |||||||||||||||||||||||||
For Capital | Under Prompt Corrective | ||||||||||||||||||||||||
Adequacy Purposes | Action Provisions | ||||||||||||||||||||||||
Actual | Minimum | Minimum | Minimum | Minimum | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Company | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 119,178 | 19.04 | % | $ | 50,075 | 8 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 111,333 | 17.79 | % | $ | 25,033 | 4 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to average assets) | $ | 111,333 | 12.16 | % | $ | 36,623 | 4 | % | N/A | N/A | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 113,028 | 18.28 | % | $ | 49,465 | 8 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 105,211 | 17.01 | % | $ | 24,741 | 4 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to average assets) | $ | 105,211 | 11.77 | % | $ | 35,756 | 4 | % | N/A | N/A | |||||||||||||||
North Valley Bank | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 116,783 | 18.68 | % | $ | 50,014 | 8 | % | $ | 62,518 | 10 | % | |||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 108,947 | 17.42 | % | $ | 25,017 | 4 | % | $ | 37,525 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | $ | 108,947 | 11.9 | % | $ | 36,621 | 4 | % | $ | 45,776 | 5 | % | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 112,938 | 18.26 | % | $ | 49,480 | 8 | % | $ | 61,850 | 10 | % | |||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 105,122 | 17 | % | $ | 24,735 | 4 | % | $ | 37,102 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | $ | 105,122 | 11.76 | % | $ | 35,756 | 4 | % | $ | 44,695 | 5 | % | |||||||||||||
The supervisory agreement signed on January 6, 2010 by and among North Valley Bancorp, North Valley Bank and the Federal Reserve Bank of San Francisco was terminated, effective as of April 16, 2012, and resolutions adopted by the Board of Directors of NVB at the request of the California Department of Financial Institutions were previously terminated, effective March 1, 2012. | |||||||||||||||||||||||||
As a California corporation, the Company’s ability to pay cash dividends is subject to restrictions set forth in the California General Corporation Law (the “Corporation Law”). The Corporation Law provides that neither a corporation nor any of its subsidiaries shall make a distribution to the corporation’s shareholders unless the board of directors has determined in good faith either of the following: (1) the amount of retained earnings of the corporation immediately prior to the distribution equals or exceeds the sum of (A) the amount of the proposed distribution plus (B) the preferential dividends arrears amount; or (2) immediately after the distribution, the value of the corporation’s assets would equal or exceed the sum of its total liabilities plus the preferential rights amount. The good faith determination of the board of directors may be based upon (1) financial statements prepared on the basis of reasonable accounting practices and principles, (2) a fair valuation, or (3) any other method reasonable under the circumstances; provided, that a distribution may not be made if the corporation or subsidiary making the distribution is, or is likely to be, unable to meet its liabilities (except those whose payment is otherwise adequately provided for) as they mature. The term “preferential dividends arrears amount” means the amount, if any, of cumulative dividends in arrears on all shares having a preference with respect to payment of dividends over the class or series to which the applicable distribution is being made, provided that if the articles of incorporation provide that a distribution can be made without regard to preferential dividends arrears amount, then the preferential dividends arrears amount shall be zero. The term “preferential rights amount” means the amount that would be needed if the corporation were to be dissolved at the time of the distribution to satisfy the preferential rights, including accrued but unpaid dividends, of other shareholders upon dissolution that are superior to the rights of the shareholders receiving the distribution, provided that if the articles of incorporation provide that a distribution can be made without regard to any preferential rights, then the preferential rights amount shall be zero. | |||||||||||||||||||||||||
The Company’s ability to pay dividends is also limited by certain covenants contained in the indentures relating to trust preferred securities that have been issued by three business trusts and corresponding junior subordinated debentures. The Company owns the common stock of the three business trusts. The indentures provide that if an Event of Default (as defined in the indentures) has occurred and is continuing, or if the Company is in default with respect to any obligations under our guarantee agreement which covers payments of the obligations on the trust preferred securities, or if the Company gives notice of any intention to defer payments of interest on the debentures underlying the trust preferred securities, then the Company may not, among other restrictions, declare or pay any dividends. | |||||||||||||||||||||||||
Dividends from the Bank to the Company are restricted under California law to the lesser of the Bank’s retained earnings or the Bank’s net income for the latest three fiscal years, less dividends previously declared during that period, or, with the approval of the DFI, to the greater of the retained earnings of the Bank, the net income of the Bank for its last fiscal year, or the net income of the Bank for its current fiscal year. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
17. EARNINGS PER SHARE | |||||||||||||
Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if options or other contracts to issue common stock were exercised and converted into common stock. | |||||||||||||
There was no difference in the numerator used in the calculation of basic earnings per share and diluted earnings per share, and there was no difference in the denominator used in the calculation of basic earnings per share and diluted earnings per share in 2013, 2012 and 2011 (in thousands except earnings per share data): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Weighted average common shares outstanding | 6,836 | 6,834 | 6,833 | ||||||||||
Basic earnings per common share | $ | 0.53 | $ | 0.92 | $ | 0.45 | |||||||
Diluted | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Weighted average common shares outstanding | 6,836 | 6,834 | 6,833 | ||||||||||
Dilutive effect of outstanding stock options | 21 | 1 | — | ||||||||||
Average shares and dilutive potential common shares | 6,857 | 6,835 | 6,833 | ||||||||||
Diluted earnings per common share | $ | 0.53 | $ | 0.92 | $ | 0.45 | |||||||
Stock options for 214,302, 247,822, and 183,070 shares of common stock were not considered in computing diluted earnings per common share for 2013, 2012 and 2011, respectively, because they were antidilutive. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | ' | ||||||||||||
18. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||
Changes in each component of accumulated other comprehensive (loss) income for the periods ended December 31, 2013 and 2012 were as follows (in thousands): | |||||||||||||
Adjustments | Accumulated | ||||||||||||
Net Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Defined Benefit | Comprehensive | |||||||||||
31-Dec-13 | on Securities | Pension Plan | (Loss) Income | ||||||||||
Beginning balance | $ | 3,287 | $ | (1,621 | ) | $ | 1,666 | ||||||
Net unrealized loss on securities available for sale, net of tax, $(4,655) | (6,698 | ) | (6,698 | ) | |||||||||
Reclassification adjustment for gains on securities, net of tax, $(225) | (323 | ) | (323 | ) | |||||||||
Net gains arising during the period, net of tax, $113 | — | 162 | 162 | ||||||||||
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax, $120 | — | 173 | 173 | ||||||||||
Ending Balance | $ | (3,734 | ) | $ | (1,286 | ) | $ | (5,020 | ) | ||||
31-Dec-12 | |||||||||||||
Beginning balance | $ | 2,369 | $ | (899 | ) | $ | 1,470 | ||||||
Net unrealized gains on securities available for sale, net of tax, $1,408 | 2,025 | 2,025 | |||||||||||
Reclassification adjustment for gains on securities, net of tax, $(770) | (1,107 | ) | (1,107 | ) | |||||||||
Net gains arising during the period, net of tax, $(557) | (803 | ) | (803 | ) | |||||||||
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax, $57 | 81 | 81 | |||||||||||
Ending Balance | $ | 3,287 | $ | (1,621 | ) | $ | 1,666 | ||||||
Changes in each component of accumulated other comprehensive income were as follows (in thousands): | |||||||||||||
31-Dec-13 | |||||||||||||
Details About Accumulated Other | Amount Reclassified From | Affected Line Item in the Statement | |||||||||||
Comprehensive (Loss) Income Components | Accumulated Other | Where Net Income is Presented | |||||||||||
Comprehensive (Loss) Income | |||||||||||||
Gain on investment securities | $ | 548 | Gain on sales or calls of securities, net | ||||||||||
Amortization of prior service cost and net gain included in net periodic pension cost | (293 | ) | Salaries and employee benefits | ||||||||||
255 | Total before tax | ||||||||||||
(104 | ) | Provision for income tax | |||||||||||
$ | 151 | Net of tax | |||||||||||
31-Dec-12 | |||||||||||||
Details About Accumulated Other | Amount Reclassified From | Affected Line Item in the Statement | |||||||||||
Comprehensive (Loss) Income Components | Accumulated Other | Where Net Income is Presented | |||||||||||
Comprehensive (Loss) Income | |||||||||||||
Gain on investment securities | $ | 1,877 | Gain on sales or calls of securities, net | ||||||||||
Amortization of prior service cost and net gain included in net periodic pension cost | (137 | ) | Salaries and employee benefits | ||||||||||
1,740 | Total before tax | ||||||||||||
(713 | ) | Provision for income tax | |||||||||||
$ | 1,027 | Net of tax | |||||||||||
PARENT_COMPANY_ONLY_CONDENSED_
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION | ' | ||||||||||||
19. PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION | |||||||||||||
The condensed financial statements of the Company are presented below (in thousands): | |||||||||||||
CONDENSED BALANCE SHEET | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 2,759 | $ | 1,023 | |||||||||
Investment in banking subsidiary | 107,812 | 113,383 | |||||||||||
Investment in other subsidiary | 2 | 2 | |||||||||||
Investment in unconsolidated subsidiary grantor trusts | 651 | 651 | |||||||||||
Other assets | 4,277 | 3,082 | |||||||||||
Total assets | $ | 115,501 | $ | 118,141 | |||||||||
Liabilities and stockholders’ equity | |||||||||||||
Subordinated debentures | $ | 21,651 | $ | 21,651 | |||||||||
Other liabilities | 421 | 329 | |||||||||||
Stockholders’ equity | 93,429 | 96,161 | |||||||||||
Total liabilities and stockholders’ equity | $ | 115,501 | $ | 118,141 | |||||||||
CONDENSED STATEMENT OF INCOME | As of December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $ | 4,500 | $ | 16,500 | $ | — | |||||||
Expense: | |||||||||||||
Interest on subordinated debentures | 532 | 1,352 | 1,892 | ||||||||||
Legal and accounting | 522 | 485 | 470 | ||||||||||
Other | 2,047 | 1,624 | 1,466 | ||||||||||
Tax benefit | (1,303 | ) | (1,455 | ) | (1,609 | ) | |||||||
Total expense | 1,798 | 2,006 | 2,219 | ||||||||||
Income (loss) before equity in undistributed income (loss) of subsidiaries | 2,702 | 14,494 | (2,219 | ) | |||||||||
Equity in undistributed income (loss) of subsidiaries | 923 | (8,204 | ) | 5,266 | |||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
CONDENSED STATEMENT OF CASH FLOWS | As of December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Adjustments to reconcile net income to net cash from operating activites: | |||||||||||||
Equity in undistributed (loss) income of subsidiaries | (923 | ) | 8,204 | (5,266 | ) | ||||||||
Stock-based compensation expense | 137 | 118 | 62 | ||||||||||
Effect of changes in: | |||||||||||||
Other assets | (1,195 | ) | (73 | ) | 19 | ||||||||
Other liabilities | 92 | (4,772 | ) | 302 | |||||||||
Net cash provided by (used in) operating activities | 1,736 | 9,767 | (1,836 | ) | |||||||||
Cash flows from investing activities | |||||||||||||
Investments in subsidiaries | — | 310 | — | ||||||||||
Net cash provided by investing activities | — | 310 | |||||||||||
Cash flows from financing activities | |||||||||||||
Repayment of subordinated debentures | — | (10,310 | ) | — | |||||||||
Net cash used in financing activities | — | (10,310 | ) | — | |||||||||
Increase (decrease) in cash and cash equivalents | 1,736 | (233 | ) | (1,836 | ) | ||||||||
Cash and cash equivalents, beginning of year | 1,023 | 1,256 | 3,092 | ||||||||||
Cash and cash equivalents, end of year | $ | 2,759 | $ | 1,023 | $ | 1,256 |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
SUBSEQUENT EVENT | ' |
20. SUBSEQUENT EVENT | |
As announced by the Company on January 21, 2014 and reported in the Company's Current Report on Form 8-K, filed with the Securities and Exchange Commission on January 22, 2014 (the "Current Report"), the Company has entered into an Agreement and Plan of Merger and Reorganization dated January 21, 2014 (the "Merger Agreement"), pursuant to which the Company would merge with and into TriCo Bancshares, a California corporation ("TriCo"), with TriCo being the surviving corporation. Immediately thereafter, the Company's subsidiary bank, North Valley Bank, would be merged with and into TriCo's subsidiary bank, Tri Counties Bank. Under the terms of the Merger Agreement, the Company shareholders would receive a fixed exchange ratio of 0.9433 shares of TriCo common stock for each share of Company common stock, providing the Company shareholders with aggregate ownership on a pro forma basis of approximately 28.6% of the common stock of the combined company. Holders of the Company's outstanding in-the-money stock options would receive cash, net of applicable taxes withheld, for the value of their unexercised stock options. The merger is expected to qualify as a tax-free exchange for shareholders who receive shares of TriCo common stock. The transactions contemplated by the Merger Agreement are expected to close in the second or third quarter of 2014, pending approvals of the Company shareholders and the TriCo shareholders, the receipt of all necessary regulatory approvals, and the satisfaction of other closing conditions which are customary for such transactions. | |
NATURE_OF_OPERATIONS_AND_SIGNI1
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Nature of Operations | ' | ||||||
Nature of Operations. The accounting and reporting practices of North Valley Bancorp (the “Company”) and its wholly owned subsidiary, North Valley Bank (“NVB”), conform to accounting principles generally accepted in the United States of America and prevailing practices within the banking industry. The operations of the Company are comprised predominately of NVB. NVB is a commercial banking institution with twenty-two banking offices in Shasta, Trinity, Humboldt, Del Norte, Yolo, Sonoma, Placer and Mendocino Counties located in California. Between 2003 to 2005, the Company formed North Valley Capital Trust II, North Valley Capital Trust III, and North Valley Capital Statutory Trust IV (collectively, the Trusts) which Trust II, and III are Delaware statutory business trusts and Trust IV is a Connecticut statutory business trust formed for the exclusive purpose of issuing and selling Trust Preferred Securities. | |||||||
NVB’s principal business consists of attracting deposits from the general public and using the funds to originate commercial, real estate and installment loans to customers, who are predominately small and middle market businesses and middle income individuals. The Company’s primary source of revenues is interest income from its loan and investment securities portfolios. The Company is not dependent on any single customer for more than ten percent of the Company’s revenues. The deposits of NVB are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to applicable legal limits. | |||||||
Use of Estimates in the Preparation of Financial Statements | ' | ||||||
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The allowance for loan losses, loan servicing rights, deferred tax assets, and fair values of financial instruments are particularly subject to change. | |||||||
Consolidation and Basis of Presentation | ' | ||||||
Consolidation and Basis of Presentation. The consolidated financial statements include the Company and its wholly owned subsidiary NVB. NVB has one wholly owned inactive subsidiary, North Valley Trading Company. All material intercompany accounts and transactions have been eliminated in consolidation. | |||||||
For financial reporting purposes, the Company’s investments in the Trusts of $651,000 are accounted for under the equity method and, accordingly, are not consolidated and are included in other assets on the consolidated balance sheet. The subordinated debentures issued and guaranteed by the Company and held by the Trusts are reflected as debt on the Company’s consolidated balance sheet. | |||||||
Disclosures About Segments of an Enterprise | ' | ||||||
Disclosures About Segments of an Enterprise. The Company uses the “management approach” for reporting business segment information. The management approach is based on the segments within a company used by the chief operating decision-maker for making operating decisions and assessing performance. Reportable segments are based on such factors as products and services, geography, legal structure or any other manner by which a company’s management distinguishes major operating units. Utilizing this approach, management has determined that the Company has only one reportable segment. | |||||||
Reclassifications | ' | ||||||
Reclassifications. Certain amounts in 2012 and 2011 have been reclassified to conform with the 2013 consolidated financial statement presentation. These reclassifications had no effect on prior year net income or stockholders’ equity. | |||||||
Cash and Cash Equivalents | ' | ||||||
Cash and Cash Equivalents. For the purposes of the consolidated statement of cash flows, cash and cash equivalents have been defined as cash, demand deposits with correspondent banks, cash items, settlements in transit, and federal funds sold and repurchase agreements. Generally, federal funds are sold for one-day periods and repurchase agreements are sold for eight to fourteen-day periods. Cash equivalents have remaining terms to maturity of three months or less from the date of acquisition. Net cash flows are reported for customer loan and deposit transactions and time deposits in other financial institutions. | |||||||
Reserve Requirements | ' | ||||||
Reserve Requirements. The Company is subject to regulation by the Federal Reserve Board. The regulations require the Company to maintain certain cash reserve balances on hand or at the Federal Reserve Bank (“FRB”). At December 31, 2013 and 2012, the Company had no reserve requirement. | |||||||
Investment Securities | ' | ||||||
Investment Securities. The Company accounts for its investment securities as follows: | |||||||
Trading securities are carried at fair value. Changes in fair value are included in noninterest income. The Company did not have any securities classified as trading at or during the years ended December 31, 2013, 2012 and 2011. | |||||||
Available-for-sale securities are carried at estimated fair value and represent securities not classified as trading securities nor as held-to-maturity securities. Unrealized gains and losses resulting from changes in fair value are recorded, net of tax, as a net amount within accumulated other comprehensive (loss) income, which is a separate component of stockholders’ equity. | |||||||
Held-to-maturity securities are carried at cost adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income. The Company’s policy of carrying such investment securities at amortized cost is based upon its ability and management’s intent to hold such securities to maturity. | |||||||
Management determines the appropriate classification of its investments at the time of purchase and may only change the classification in certain limited circumstances. All transfers between categories are accounted for at fair value. During the years ended December 31, 2013, 2012 and 2011, there were no transfers of securities between categories. | |||||||
Gains or losses on disposition are recorded in noninterest income based on the net proceeds received and the carrying amount of the securities sold, using the specific identification method. Interest earned on investment securities is reported in interest income, net of applicable adjustments for accretion of discounts and amortization of premiums which are accounted for using the level-yield method without anticipating prepayments. | |||||||
An investment security is impaired when its carrying value is greater than its fair value. Investment securities that are impaired are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether such a decline in their fair value is other than temporary. Management utilizes criteria such as the magnitude and duration of the decline and the intent and ability of the Company to retain its investment in the securities for a period of time sufficient to allow for an anticipated recovery in fair value, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary. The term “other than temporary” is not intended to indicate that the decline is permanent, but indicates that the prospects for a near-term recovery of value is not necessarily favorable, or that there is a lack of evidence to support a realizable value equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other than temporary, and management does not intend to sell the security or it is more likely than not that the Company will not be required to sell the security before recovery, only the portion of the impairment loss representing credit exposure is recognized as a charge to earnings, with the balance recognized as a charge to other comprehensive income. If management intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovering its forecasted cost, the entire impairment loss is recognized as a charge to earnings. | |||||||
Loans | ' | ||||||
Loans. Loans are reported at the principal amount outstanding, net of unearned income, including net deferred loan fees, and the allowance for loan losses. | |||||||
Interest on loans is calculated using the simple interest method on the daily balance of the principal amount outstanding. | |||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement. Loans determined to be impaired are individually evaluated for impairment. When a loan is impaired, the Company measures impairment based on the present value of expected future cash flows discounted at the original interest rate, except that as a practical expedient, it may measure impairment based on an observable market price, or the fair value of the collateral if collateral dependent. A loan is collateral dependent if the repayment is expected to be provided solely by the underlying collateral. | |||||||
The determination of the general reserve for loans that are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable losses inherent in the portfolio taken as a whole. | |||||||
Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest on loans is discontinued either when reasonable doubt exists as to the full and timely collection of interest or principal, or when a loan becomes contractually past due by 90 days or more with respect to interest or principal. When a loan is placed on nonaccrual status, all interest previously accrued but not collected is reversed against current period interest income. Income on such loans is then recognized only to the extent that cash is received and where the future collection of principal is probable. Interest accruals are resumed on such loans when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. | |||||||
A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDRs are considered impaired and measured for impairment as described above. | |||||||
Deferred Loan Fees | ' | ||||||
Deferred Loan Fees. Loan fees and certain related direct costs to originate loans are deferred and amortized to income by a method that approximates a level yield over the contractual life of the underlying loans. The unamortized balance of deferred fees and costs is reported as a component of net loans. | |||||||
Loan Sales and Servicing | ' | ||||||
Loan Sales and Servicing. The Company originates and sells residential mortgage loans to Freddie Mac and others. The Company retains the servicing on certain loans that are sold. Deferred origination fees and expenses are recognized at the time of sale in the determination of the gain or loss. When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sales of loans. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The gain (loss) is recognized at the time of sale or when all recourse provisions, if any, have lapsed based on the difference between the sale proceeds and the allocated carrying value of the related loans sold. The fair value of the contractual servicing is reflected as a servicing asset, which is amortized over the period of estimated net servicing income using a method approximating the interest method. The servicing asset is included in other assets on the consolidated balance sheet, and is evaluated for impairment on a periodic basis. Servicing income net of amortization is included in non-interest income on the consolidated statements of income. | |||||||
At December 31, 2013 and 2012, the Company serviced real estate loans which it had sold to the secondary market of approximately $175,904,000 and $145,314,000, respectively. At December 31, 2013 and 2012, the Company serviced loans guaranteed by the Small Business Administration which it had sold to the secondary market of approximately $12,580,000 and $13,696,000, respectively. | |||||||
Allowance for Loan Losses | ' | ||||||
Allowance for Loan Losses. The allowance for loan losses is an estimate of probable incurred loan losses in the Company’s loan portfolio as of the balance-sheet date. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after loan losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of two primary components, specific reserves related to impaired loans and general reserves for inherent losses related to loans that are evaluated collectively for impairment. | |||||||
The Company calculates the allowance for each portfolio segment. These portfolio segments include commercial, real estate commercial, real estate construction (including land and development loans), real estate mortgage, installment, and other loans (principally home equity loans). The allowance for loan losses attributable to each portfolio segment, which includes both individually impaired and loans that are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. | |||||||
The general reserve component of the allowance for loan losses also consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses over the past twelve quarters and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. | |||||||
Commercial. Commercial loans generally possess a more inherent risk of loss than real estate portfolio segments because these loans are generally underwritten to existing cash flows of operating businesses. Debt coverage is provided by business cash flows and economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. | |||||||
Real Estate Commercial. Real estate commercial loans generally possess a higher inherent risk of loss than other real estate portfolio segments, except land and construction loans. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. | |||||||
Real Estate Construction. Real estate construction loans generally possess a higher inherent risk of loss than other real estate portfolio segments. A major risk arises from the necessity to complete projects within specified cost and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. | |||||||
Real Estate Mortgage. The degree of risk in real estate mortgage lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than other real estate portfolio segments. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
Individual loans and receivables in homogeneous loan portfolio segments are not evaluated for specific impairment. Rather, the sole component of the allowance for these loan types is determined by collectively measuring impairment reserve factors based on management’s assessment of the following for each homogeneous loan portfolio segment: (1) inherent credit risk, (2) delinquencies, (3) historical losses and (4) other qualitative factors. The homogenous loan portfolio segments are described in further detail below. | |||||||
Installment – An installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made directly for consumer purchases. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
Other (principally home equity loans) – The degree of risk in home equity depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than other real estate portfolio segments. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends indicate that the borrowers’ capacity to repay their obligations may be deteriorating. | |||||||
The Company assigns a risk rating to all loans except pools of homogeneous loans and periodically, but not less than annually, performs detailed reviews of all such individual loans over $250,000 to identify credit risks and to assess the overall collectability of the portfolio. Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures. The risk ratings of these smaller homogeneous loans are typically determined by the extent of their monthly required payments being past due, if any. These risk ratings are also subject to examination by independent specialists engaged by the Company and the Company’s regulators. During these internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which borrowers operate and the fair values of collateral securing these loans. These credit quality indicators are used to assign a risk rating to each individual loan. The risk ratings can be grouped into five major categories, defined as follows: | |||||||
Pass. A pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. | |||||||
Special Mention. A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company’s credit position at some future date. Special Mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. | |||||||
Substandard. A substandard loan is not adequately protected by the current sound worth and paying capacity of the borrower or the value of the collateral pledged, if any. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Well defined weaknesses include a project’s lack of marketability, inadequate cash flow or collateral support, failure to complete construction on time or the project’s failure to fulfill economic expectations. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | |||||||
Doubtful. Loans classified doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. | |||||||
Loss. Loans classified as loss are considered uncollectible and charged off immediately. | |||||||
Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors and management review the adequacy of the allowance, including consideration of the relative risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s primary regulators, the FRB and the California Department of Financial Institutions, as an integral part of their examination process, review the adequacy of the allowance. These regulatory agencies may require additions to the allowance based on their judgment about information available at the time of their examinations. | |||||||
Allowance for Loan Losses on Off-Balance-Sheet Credit Exposures | ' | ||||||
Allowance for Loan Losses on Off-Balance-Sheet Credit Exposures. The Company also maintains a separate allowance for off-balance-sheet commitments. Management estimates anticipated losses using historical data and utilization assumptions. The allowance for off-balance-sheet commitments is included in accrued interest payable and other liabilities on the consolidated balance sheet. | |||||||
Other Real Estate Owned ("OREO") | ' | ||||||
Other Real Estate Owned (“OREO”). Real estate acquired through, or in lieu of, loan foreclosures is expected to be sold and is recorded at its fair value less estimated costs to sell. The amount, if any, by which the recorded amount of the loan exceeds the fair value less estimated costs to sell are charged to the allowance for loan losses, if necessary. These properties are subsequently accounted for at the lower of cost or fair value less costs to sell. After foreclosure, valuations are periodically performed by management with any subsequent write-downs recorded as a valuation allowance and charged against operating expenses. Operating expenses of such properties, net of related income, are included in noninterest expenses and gains and losses on their disposition are included in other income or noninterest expenses. | |||||||
Premises and Equipment | ' | ||||||
Premises and Equipment. Premises and equipment are stated at cost less accumulated depreciation, which is computed principally on the straight-line method over the estimated useful lives of the respective assets. The useful lives of premises are estimated to be twenty to thirty years. The useful lives of furniture, fixtures and equipment are estimated to be two to ten years. Leasehold improvements are amortized on the straight-line method over the shorter of the estimated useful lives of the improvements or the terms of the respective leases. The Company evaluates premises and equipment for financial impairment as events or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. | |||||||
FHLB and FRB Stock and Other Securities | ' | ||||||
FHLB and FRB Stock and Other Securities. The Company purchases restricted stock in the Federal Home Loan Bank of San Francisco (FHLB), the FRB and others as required to participate in various programs offered by these institutions. These investments are carried at cost and may be redeemed at par with certain restrictions. Both cash and stock dividends are reported as income. Restricted stock is periodically evaluated for impairment based on ultimate recovery of par. | |||||||
Bank Owned Life Insurance | ' | ||||||
Bank Owned Life Insurance. The Company has purchased life insurance policies on certain key executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. | |||||||
Core Deposit Intangibles | ' | ||||||
Core Deposit Intangibles. These assets represent the estimated fair value of the deposit relationship acquired in acquisitions and is being amortized by the straight-line method. The core deposit intangible was recorded at $1,421,000 in August, 2004 with accumulated amortization of $1,312,000 at December 31, 2013. It was being amortized at $146,000 per year over an estimated life of ten years with a remaining amortization period of nine months. Amortization expense on these intangibles was $146,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense during 2014 is expected to be $109,000. Management evaluates the recoverability and remaining useful life annually to determine whether events or circumstances warrant a revision to the intangible asset or the remaining period of amortization. There were no revisions resulting from management’s assessment in 2013, 2012 or 2011. | |||||||
Defined Benefit Pension and Other Post Retirement Plans | ' | ||||||
Defined Benefit Pension and Other Post Retirement Plans. Since December 31, 2006, the Company has recognized the funded status of its defined benefit plan in the accompanying consolidated balance sheet with gains or losses and prior service costs or credits that arise during the period that are not recognized as net period benefit expenses recorded in other comprehensive income (loss). The Company has recognized the underfunded status of its supplemental retirement plan as a liability in the consolidated balance sheet and recognizes subsequent changes in that unfunded status through other comprehensive income (loss). For the years ended December 31, 2013, 2012 and 2011, the amount recognized through other comprehensive income (loss) was $335,000, ($722,000) and ($441,000), respectively. | |||||||
Income Taxes | ' | ||||||
Income Taxes. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for income taxes. The Company applies the asset and liability method to account for income taxes. Deferred tax assets and liabilities are calculated by applying enacted tax laws and tax rates applicable at the time of the calculation to the differences between the financial statement basis and the tax basis of assets and liabilities. The effect on deferred taxes of changes in tax laws and rates is recognized in income in the period that includes the enactment date. On the consolidated balance sheet, net deferred tax assets are included in other assets. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. | |||||||
The Company uses a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements tax positions taken or expected to be taken on a tax return. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | |||||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. | |||||||
Interest expense associated with unrecognized tax benefits is classified as interest expense in the consolidated statement of income. Penalties associated with unrecognized tax benefits are classified as other expense in the consolidated statement of income. | |||||||
Earnings per Share | ' | ||||||
Earnings per Share. Basic earnings per share (EPS), which excludes dilution, is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options, result in the issuance of common stock which shares in the earnings of the Company. The treasury stock method has been applied to determine the dilutive effect of stock options in computing diluted EPS. Earnings per share is retroactively adjusted for stock dividends and stock splits for all periods presented. | |||||||
Stock-Based Compensation | ' | ||||||
Stock-Based Compensation. At December 31, 2013, the Company had two shareholder approved stock-based compensation plans: the 1998 Employee Stock Incentive Plan and the 2008 Stock Incentive Plan. The plans do not provide for the settlement of awards in cash and new shares are issued upon exercise of options. The North Valley Bancorp 1998 Employee Stock Incentive Plan provides for awards in the form of options (which may constitute incentive stock options (“ISOs”) or non-statutory stock options (“NSOs”) to key employees) and also provides for the award of shares of Common Stock to outside directors. As provided in the 1998 Employee Stock Incentive Plan, the authorization to award incentive stock options terminated on February 19, 2008. As of December 31, 2013, a total of 241,635 shares of Common Stock were available for future grants under the 2008 Stock Incentive Plan. | |||||||
The North Valley Bancorp 2008 Stock Incentive Plan was adopted by the Company’s Board of Directors on February 27, 2008, effective that date, and was approved by the Company’s shareholders at the annual meeting, May 22, 2008. The terms of the 2008 Stock Incentive Plan are substantially the same as the North Valley Bancorp 1998 Employee Stock Incentive Plan. The 2008 Stock Incentive Plan provides for share based awards to key employees in the form of stock options, which may consist of NSOs and ISOs. The 2008 Stock Incentive Plan also provides for the grant to outside directors, and to consultants and advisers to the Company, in the form of stock awards or stock options, all of which must be NSOs. A total of 601,925 shares were authorized under all plans at December 31, 2013. Pursuant to the 1998 Employee Stock Incentive Plan there were outstanding options to purchase 51,930 shares of Common Stock at December 31, 2013. At December 31, 2013, the shares of Common Stock authorized to be granted as options under the terms of the 2008 Stock Incentive Plan totaled 549,995, consisting of 302,780 shares to be issued upon the exercise of options granted and still outstanding as of that date, 5,580 shares issued as stock awards and 241,635 shares reserved for future stock option grants and director stock awards. Effective January 1, 2009, and on each January 1 thereafter for the remaining term of the 2008 Stock Incentive Plan, the aggregate number of shares of Common Stock which are reserved for issuance pursuant to options granted under the terms of the 2008 Stock Incentive Plan shall be increased by a number of shares of Common Stock equal to 2% of the total number of the shares of Common Stock of the Company outstanding at the end of the most recently concluded calendar year. Any shares of Common Stock that have been reserved but not issued as options during any calendar year shall remain available for grant during any subsequent calendar year. Each outside director of the Company shall also be eligible to receive a stock award of 180 shares of Common Stock as part of his or her annual retainer paid by the Company for his or her services as a director. Each stock award shall be fully vested when granted to the outside director. In September 2013 and July 2012, each director was awarded 180 shares for their retainer grant. The number of shares of Common Stock available as stock awards to outside directors shall equal the number of shares of Common Stock to be awarded to such outside directors. Outstanding options under the plans are exercisable until their expiration. | |||||||
Cash flows resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options (excess tax benefits) is to be classified as a cash flow from financing activities in the statement of cash flows. | |||||||
Determining Fair Value | ' | ||||||
Determining Fair Value. The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton based option valuation model that uses the assumptions discussed below. This fair value is then amortized on a straight-line basis over the requisite service periods of the awards, which is generally the vesting period. | |||||||
Expected Term – The Company’s expected term represents the period that the Company’s stock-based awards are expected to be outstanding and was determined based on the Company’s historical option activity. | |||||||
Expected Volatility - The Company uses the trading history of the common stock of the Company in determining an estimated volatility factor when using the Black-Scholes-Merton option-pricing formula to determine the fair value of options granted. | |||||||
Expected Dividend – The Company estimates the expected dividend based on its historical experience of dividends declared per year, giving consideration to any anticipated changes and the estimated stock price over the expected term based on historical experience when using the Black-Scholes-Merton option-pricing formula. | |||||||
Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes-Merton option-pricing formula on the implied yield currently available on U.S. Treasury zero-coupon issues with the same or substantially equivalent remaining term as the expected term of the options. | |||||||
Estimated Forfeitures - When estimating forfeitures, the Company considers voluntary and involuntary termination behavior as well as analysis of actual option forfeitures. | |||||||
There were 114,234, 77,908 and 66,000 options granted in 2013, 2012 and 2011, respectively. The fair value of each option is estimated on the date of grant with the following assumptions: | |||||||
2013 | 2012 | 2011 | |||||
Weighted average dividend yield | 0.00% | 0.00% | 0.00% | ||||
Weighted average expected volatility | 59.78% | 58.50% | 53.60% | ||||
Weighted average risk-free interest rate | 1.38% | 1.40% | 2.27% | ||||
Weighted average expected option life | 6.32 years | 6.49 years | 7.67 years | ||||
Weighted average grant date fair value | $9.53 | $6.28 | $6.07 | ||||
Comprehensive (Loss) Income | ' | ||||||
Comprehensive (Loss) Income. Comprehensive (loss) income includes net income and other comprehensive income or loss, which represents the change in its net assets during the period from nonowner sources. The components of other comprehensive income or loss for the Company include the unrealized gain or loss on available-for-sale securities and changes in the funded status of the pension liability and are presented net of tax. Comprehensive (loss) income is reported on the consolidated statement of changes in stockholders’ equity. | |||||||
Adoption of New Financial Accounting Standards | ' | ||||||
Adoption of New Financial Accounting Standards | |||||||
In February 2013, the FASB amended existing guidance related to reporting amounts reclassified out of other comprehensive (loss) income out of accumulated other comprehensive (loss) income. These amendments do not change the current requirements for reporting net income or other comprehensive (loss) income in financial statements. These amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive (loss) income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive (loss) income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. These amendments are effective prospectively for interim and annual reporting periods beginning after December 15, 2012 and are disclosed in Note 18. |
NATURE_OF_OPERATIONS_AND_SIGNI2
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Accounting Policies [Abstract] | ' | ||||||
Schedule of fair value of option estimated | ' | ||||||
2013 | 2012 | 2011 | |||||
Weighted average dividend yield | 0.00% | 0.00% | 0.00% | ||||
Weighted average expected volatility | 59.78% | 58.50% | 53.60% | ||||
Weighted average risk-free interest rate | 1.38% | 1.40% | 2.27% | ||||
Weighted average expected option life | 6.32 years | 6.49 years | 7.67 years | ||||
Weighted average grant date fair value | $9.53 | $6.28 | $6.07 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of amortized cost of investment securities and their estimated fair value | ' | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 19,669 | $ | — | $ | (1,471 | ) | $ | 18,198 | ||||||||||||||||
Obligations of state and political subdivisions | 5,216 | 151 | (50 | ) | 5,317 | ||||||||||||||||||||
Government sponsored agency mortgage-backed securities | 251,923 | 2,528 | (6,174 | ) | 248,277 | ||||||||||||||||||||
Corporate debt securities | 6,000 | — | (1,245 | ) | 4,755 | ||||||||||||||||||||
Equity securities | 3,000 | — | (68 | ) | 2,932 | ||||||||||||||||||||
Total available-for-sale | $ | 285,808 | $ | 2,679 | $ | (9,008 | ) | $ | 279,479 | ||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Gross | Gross | Estimated | |||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
Available-for-Sale: | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 21,003 | $ | 115 | $ | — | $ | 21,118 | |||||||||||||||||
Obligations of state and political subdivisions | 10,698 | 499 | — | 11,197 | |||||||||||||||||||||
Government sponsored agency mortgage-backed securities | 239,543 | 6,152 | (64 | ) | 245,631 | ||||||||||||||||||||
Corporate debt securities | 6,000 | — | (1,244 | ) | 4,756 | ||||||||||||||||||||
Equity securities | 3,000 | 113 | — | 3,113 | |||||||||||||||||||||
Total available-for-sale | $ | 280,244 | $ | 6,879 | $ | (1,308 | ) | $ | 285,815 | ||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 6 | $ | — | $ | — | $ | 6 | |||||||||||||||||
Schedule of gross unrealized losses and the estimated fair value of available-for-sale investment securities | ' | ||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Description of Securities | |||||||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 18,198 | $ | (1,471 | ) | $ | — | $ | — | $ | 18,198 | $ | (1,471 | ) | |||||||||||
Obligations of state and political subdivisions | 1,145 | (50 | ) | — | — | 1,145 | (50 | ) | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 156,421 | (5,163 | ) | 17,296 | (1,011 | ) | 173,717 | (6,174 | ) | ||||||||||||||||
Corporate debt securities | — | — | 4,755 | (1,245 | ) | 4,755 | (1,245 | ) | |||||||||||||||||
Equity securities | 2,932 | (68 | ) | — | — | 2,932 | (68 | ) | |||||||||||||||||
Total impaired securities | $ | 178,696 | $ | (6,752 | ) | $ | 22,051 | $ | (2,256 | ) | $ | 200,747 | $ | (9,008 | ) | ||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||
Less than 12 Months | 12 Months or Longer | Total | |||||||||||||||||||||||
Estimated | Unrealized | Estimated | Unrealized | Estimated | Unrealized | ||||||||||||||||||||
Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | ||||||||||||||||||||
Description of Securities | |||||||||||||||||||||||||
Government sponsored agency mortgage-backed securities | $ | 34,878 | $ | (64 | ) | $ | — | $ | — | $ | 34,878 | $ | (64 | ) | |||||||||||
Corporate debt securities | — | — | 4,756 | (1,244 | ) | 4,756 | (1,244 | ) | |||||||||||||||||
Total impaired securities | $ | 34,878 | $ | (64 | ) | $ | 4,756 | $ | (1,244 | ) | $ | 39,634 | $ | (1,308 | ) | ||||||||||
Schedule of contractual maturities of held-to-maturity and available-for-sale securities | ' | ||||||||||||||||||||||||
Held-to-Maturity | Available-for-Sale | ||||||||||||||||||||||||
Amortized Cost | Estimated | Estimated | |||||||||||||||||||||||
(Carrying | Fair | Amortized | Fair Value | ||||||||||||||||||||||
Amount) | Value | Costs | (Carrying Amount) | ||||||||||||||||||||||
Within one year | $ | 2 | $ | 2 | $ | 4,003 | $ | 4,101 | |||||||||||||||||
One to five years | — | — | 102,441 | 104,057 | |||||||||||||||||||||
Five to ten years | — | — | 169,362 | 162,670 | |||||||||||||||||||||
Beyond ten years | — | — | 7,002 | 5,719 | |||||||||||||||||||||
$ | 2 | $ | 2 | $ | 282,808 | $ | 276,547 |
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of major classifications of loans | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial | $ | 47,526 | $ | 46,078 | |||||||||||||||||||||||||||||
Real estate - commercial | 326,631 | 295,630 | |||||||||||||||||||||||||||||||
Real estate - construction | 27,472 | 23,003 | |||||||||||||||||||||||||||||||
Real estate - mortgage | 63,120 | 74,353 | |||||||||||||||||||||||||||||||
Installment | 5,376 | 6,689 | |||||||||||||||||||||||||||||||
Other | 39,311 | 45,941 | |||||||||||||||||||||||||||||||
Gross loans | 509,436 | 491,694 | |||||||||||||||||||||||||||||||
Deferred loan (fees) costs, net | (192 | ) | 517 | ||||||||||||||||||||||||||||||
Allowance for loan losses | (9,301 | ) | (10,458 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 499,943 | $ | 481,753 | |||||||||||||||||||||||||||||
Schedule of impaired loans and related allowance for loan losses | ' | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | ||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | ||||||||||||||||||||||||||||
With no allocated allowance | |||||||||||||||||||||||||||||||||
Commercial | $ | 458 | $ | 481 | $ | — | $ | 585 | $ | 586 | $ | — | |||||||||||||||||||||
Real estate - commercial | 4,193 | 4,284 | — | 2,778 | 2,974 | — | |||||||||||||||||||||||||||
Real estate - construction | 435 | 449 | — | 1,210 | 1,273 | — | |||||||||||||||||||||||||||
Real estate - mortgage | 919 | 948 | — | 684 | 736 | — | |||||||||||||||||||||||||||
Installment | 96 | 115 | — | 122 | 138 | — | |||||||||||||||||||||||||||
Other | 374 | 397 | — | 111 | 120 | — | |||||||||||||||||||||||||||
Subtotal | 6,475 | 6,674 | — | 5,490 | 5,827 | — | |||||||||||||||||||||||||||
With allocated allowance | |||||||||||||||||||||||||||||||||
Commercial | 240 | 240 | 150 | — | — | — | |||||||||||||||||||||||||||
Real estate - commercial | 113 | 113 | 28 | 184 | 217 | 171 | |||||||||||||||||||||||||||
Real estate - construction | — | — | — | 161 | 161 | 18 | |||||||||||||||||||||||||||
Real estate - mortgage | 416 | 416 | 50 | — | — | — | |||||||||||||||||||||||||||
Subtotal | 769 | 769 | 228 | 345 | 378 | 189 | |||||||||||||||||||||||||||
Total Impaired Loans | $ | 7,244 | $ | 7,443 | $ | 228 | $ | 5,835 | $ | 6,205 | $ | 189 | |||||||||||||||||||||
Schedule of average balance and interest income recognized related to impaired loans | ' | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Average Book | Interest Income | Average Book | Interest Income | Average Book | Interest Income | ||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||
Commercial | $ | 960 | $ | — | $ | 941 | $ | — | $ | 2,056 | $ | — | |||||||||||||||||||||
Real estate - commercial | 4,784 | 77 | 3,069 | — | 6,354 | — | |||||||||||||||||||||||||||
Real estate - construction | 458 | 20 | 1,673 | — | 9,453 | — | |||||||||||||||||||||||||||
Real estate - mortgage | 1,415 | 52 | 681 | — | 991 | — | |||||||||||||||||||||||||||
Installment | 127 | 2 | 139 | — | 110 | — | |||||||||||||||||||||||||||
Other | 388 | — | 122 | — | 91 | — | |||||||||||||||||||||||||||
Total | $ | 8,132 | $ | 151 | $ | 6,625 | $ | — | $ | 19,055 | $ | — | |||||||||||||||||||||
Schedule of nonperforming loans | ' | ||||||||||||||||||||||||||||||||
Loans Past Due Over | |||||||||||||||||||||||||||||||||
Nonaccrual | 90 Days Still Accruing | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Commercial | $ | 698 | $ | 585 | $ | — | $ | — | |||||||||||||||||||||||||
Real estate - commercial | 3,425 | 2,962 | — | — | |||||||||||||||||||||||||||||
Real estate - construction | 110 | 1,371 | — | — | |||||||||||||||||||||||||||||
Real estate - mortgage | 417 | 684 | — | — | |||||||||||||||||||||||||||||
Installment | 69 | 122 | — | — | |||||||||||||||||||||||||||||
Other | 374 | 111 | — | — | |||||||||||||||||||||||||||||
Total | $ | 5,093 | $ | 5,835 | $ | — | $ | — | |||||||||||||||||||||||||
Schedule of aging analysis of loan portfolio by amount of time past due | ' | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Accruing Interest | |||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||
30-89 Days | 89 Days | ||||||||||||||||||||||||||||||||
Current | Past Due | Past Due | Nonaccrual | Total | |||||||||||||||||||||||||||||
Commercial | $ | 46,587 | $ | 241 | $ | — | $ | 698 | $ | 47,526 | |||||||||||||||||||||||
Real estate - commercial | 322,773 | 433 | — | 3,425 | 326,631 | ||||||||||||||||||||||||||||
Real estate - construction | 27,362 | — | — | 110 | 27,472 | ||||||||||||||||||||||||||||
Real estate - mortgage | 62,178 | 525 | — | 417 | 63,120 | ||||||||||||||||||||||||||||
Installment | 5,273 | 34 | — | 69 | 5,376 | ||||||||||||||||||||||||||||
Other | 38,594 | 343 | — | 374 | 39,311 | ||||||||||||||||||||||||||||
Total | $ | 502,767 | $ | 1,576 | $ | — | $ | 5,093 | $ | 509,436 | |||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Accruing Interest | |||||||||||||||||||||||||||||||||
Greater than | |||||||||||||||||||||||||||||||||
30-89 Days | 89 Days | ||||||||||||||||||||||||||||||||
Current | Past Due | Past Due | Nonaccrual | Total | |||||||||||||||||||||||||||||
Commercial | $ | 45,473 | $ | 20 | $ | — | $ | 585 | $ | 46,078 | |||||||||||||||||||||||
Real estate - commercial | 292,505 | 163 | — | 2,962 | 295,630 | ||||||||||||||||||||||||||||
Real estate - construction | 21,436 | 196 | — | 1,371 | 23,003 | ||||||||||||||||||||||||||||
Real estate - mortgage | 72,907 | 762 | — | 684 | 74,353 | ||||||||||||||||||||||||||||
Installment | 6,529 | 38 | — | 122 | 6,689 | ||||||||||||||||||||||||||||
Other | 45,581 | 249 | — | 111 | 45,941 | ||||||||||||||||||||||||||||
Total | $ | 484,431 | $ | 1,428 | $ | — | $ | 5,835 | $ | 491,694 | |||||||||||||||||||||||
Schedule of troubled debt restructuring | ' | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||||||||||||||
Accruing TDRs | Accruing TDRs | ||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||||||||||||||
Real estate - commercial | 1 | $ | 435 | $ | 435 | 5 | $ | 1,350 | $ | 1,350 | |||||||||||||||||||||||
Real estate - construction | — | $ | — | $ | — | 1 | $ | 343 | $ | 343 | |||||||||||||||||||||||
Real estate - mortgage | 1 | $ | 209 | $ | 209 | 2 | $ | 721 | $ | 721 | |||||||||||||||||||||||
Nonaccrual TDRs | Nonaccrual TDRs | ||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
of | Recorded | Recorded | of | Recorded | Recorded | ||||||||||||||||||||||||||||
Contracts | Investment | Investment | Contracts | Investment | Investment | ||||||||||||||||||||||||||||
Commercial | 1 | $ | 36 | $ | 36 | 1 | $ | 529 | $ | 529 | |||||||||||||||||||||||
Real estate - construction | 1 | $ | 110 | $ | 110 | 2 | $ | 398 | $ | 398 | |||||||||||||||||||||||
Real estate - mortgage | 1 | $ | 113 | $ | 113 | — | $ | — | $ | — | |||||||||||||||||||||||
Installment | — | $ | — | $ | — | 4 | $ | 120 | $ | 120 | |||||||||||||||||||||||
Other | 3 | $ | 210 | $ | 210 | 1 | $ | 25 | $ | 25 | |||||||||||||||||||||||
Schedule of allowance for loan losses by portfolio segment | ' | ||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
Charge-offs | (208 | ) | (438 | ) | (401 | ) | (420 | ) | (84 | ) | (289 | ) | (1,840 | ) | |||||||||||||||||||
Recoveries | 593 | 46 | 6 | 11 | 27 | — | 683 | ||||||||||||||||||||||||||
Provision for loan losses | (352 | ) | (707 | ) | 315 | 269 | 90 | 400 | (15 | ) | — | ||||||||||||||||||||||
Total ending allowance balance | $ | 876 | $ | 5,196 | $ | 610 | $ | 842 | $ | 131 | $ | 832 | $ | 814 | $ | 9,301 | |||||||||||||||||
31-Dec-12 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
Charge-offs | (480 | ) | (2,681 | ) | (822 | ) | (353 | ) | (221 | ) | (145 | ) | (4,702 | ) | |||||||||||||||||||
Recoveries | 110 | 63 | 80 | 39 | 103 | 9 | 404 | ||||||||||||||||||||||||||
Provision for loan losses | (120 | ) | 1,385 | 393 | 361 | 31 | 121 | (71 | ) | 2,100 | |||||||||||||||||||||||
Total ending allowance balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
31-Dec-11 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,517 | $ | 8,439 | $ | 1,936 | $ | 956 | $ | 339 | $ | 666 | $ | 1,140 | $ | 14,993 | |||||||||||||||||
Charge-offs | (928 | ) | (2,917 | ) | (405 | ) | (440 | ) | (345 | ) | (490 | ) | (5,525 | ) | |||||||||||||||||||
Recoveries | 212 | 108 | 10 | 2 | 206 | — | 538 | ||||||||||||||||||||||||||
Provision for loan losses | 532 | 1,898 | (502 | ) | 417 | (15 | ) | 560 | (240 | ) | 2,650 | ||||||||||||||||||||||
Total ending allowance balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method | ' | ||||||||||||||||||||||||||||||||
31-Dec-13 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 150 | $ | 28 | $ | — | $ | 50 | $ | — | $ | — | $ | — | $ | 228 | |||||||||||||||||
Collectively evaluated for impairment | 726 | 5,168 | 610 | 792 | 131 | 832 | 814 | 9,073 | |||||||||||||||||||||||||
Total ending allowance balance | $ | 876 | $ | 5,196 | $ | 610 | $ | 842 | $ | 131 | $ | 832 | $ | 814 | $ | 9,301 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 698 | $ | 4,306 | $ | 435 | $ | 1,335 | $ | 96 | $ | 374 | $ | 7,244 | |||||||||||||||||||
Loans collectively evaluated for impairment | 46,828 | 322,325 | 27,037 | 61,785 | 5,280 | 38,937 | 502,192 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 47,526 | $ | 326,631 | $ | 27,472 | $ | 63,120 | $ | 5,376 | $ | 39,311 | $ | 509,436 | |||||||||||||||||||
31-Dec-12 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 171 | $ | 18 | $ | — | $ | — | $ | — | $ | — | $ | 189 | |||||||||||||||||
Collectively evaluated for impairment | 843 | 6,124 | 672 | 982 | 98 | 721 | 829 | 10,269 | |||||||||||||||||||||||||
Total ending allowance balance | $ | 843 | $ | 6,295 | $ | 690 | $ | 982 | $ | 98 | $ | 721 | $ | 829 | $ | 10,458 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 585 | $ | 2,962 | $ | 1,371 | $ | 684 | $ | 122 | $ | 111 | $ | 5,835 | |||||||||||||||||||
Loans collectively evaluated for impairment | 45,493 | 292,668 | 21,632 | 73,669 | 6,567 | 45,830 | 485,859 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 46,078 | $ | 295,630 | $ | 23,003 | $ | 74,353 | $ | 6,689 | $ | 45,941 | $ | 491,694 | |||||||||||||||||||
31-Dec-11 | Commercial | Real Estate | Real Estate | Real Estate | Installment | Other | Unallocated | Total | |||||||||||||||||||||||||
Commercial | Construction | Mortgage | |||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 450 | $ | 606 | $ | 504 | $ | 37 | $ | 13 | $ | — | $ | — | $ | 1,610 | |||||||||||||||||
Collectively evaluated for impairment | 883 | 6,922 | 535 | 898 | 172 | 736 | 900 | 11,046 | |||||||||||||||||||||||||
Total ending loans balance | $ | 1,333 | $ | 7,528 | $ | 1,039 | $ | 935 | $ | 185 | $ | 736 | $ | 900 | $ | 12,656 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Loans individually evaluated for impairment | $ | 1,788 | $ | 5,998 | $ | 9,440 | $ | 938 | $ | 107 | $ | 88 | $ | 18,359 | |||||||||||||||||||
Loans collectively evaluated for impairment | 44,372 | 270,646 | 18,023 | 46,424 | 10,818 | 47,877 | 438,160 | ||||||||||||||||||||||||||
Total ending loans balance | $ | 46,160 | $ | 276,644 | $ | 27,463 | $ | 47,362 | $ | 10,925 | $ | 47,965 | $ | 456,519 | |||||||||||||||||||
Schedule of the loan portfolio allocated by management's internal risk ratings | ' | ||||||||||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Total | ||||||||||||||||||||||||||||||
Commercial | $ | 45,446 | $ | 1,107 | $ | 973 | $ | 47,526 | |||||||||||||||||||||||||
Real estate - commercial | 309,828 | 6,213 | 10,590 | 326,631 | |||||||||||||||||||||||||||||
Real estate - construction | 27,101 | 261 | 110 | 27,472 | |||||||||||||||||||||||||||||
Real estate - mortgage | 61,200 | — | 1,920 | 63,120 | |||||||||||||||||||||||||||||
Installment | 5,278 | — | 98 | 5,376 | |||||||||||||||||||||||||||||
Other | 38,611 | — | 700 | 39,311 | |||||||||||||||||||||||||||||
Total | $ | 487,464 | $ | 7,581 | $ | 14,391 | $ | 509,436 | |||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Pass | Special Mention | Substandard | Total | ||||||||||||||||||||||||||||||
Commercial | $ | 44,486 | $ | 129 | $ | 1,463 | $ | 46,078 | |||||||||||||||||||||||||
Real estate - commercial | 278,834 | — | 16,796 | 295,630 | |||||||||||||||||||||||||||||
Real estate - construction | 21,386 | — | 1,617 | 23,003 | |||||||||||||||||||||||||||||
Real estate - mortgage | 71,973 | — | 2,380 | 74,353 | |||||||||||||||||||||||||||||
Installment | 6,562 | — | 127 | 6,689 | |||||||||||||||||||||||||||||
Other | 45,658 | — | 283 | 45,941 | |||||||||||||||||||||||||||||
Total | $ | 468,899 | $ | 129 | $ | 22,666 | $ | 491,694 | |||||||||||||||||||||||||
Non Performing Loans Accruing Interest | ' | ||||||||||||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of troubled debt restructuring | ' | ||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Accruing TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Real estate - commercial | 5 | $ | — | $ | 195 | $ | 686 | $ | 881 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 325 | $ | — | $ | 325 | ||||||||||||||||||||||||
Real estate - mortgage | 3 | $ | — | $ | 293 | $ | 625 | $ | 918 | ||||||||||||||||||||||||
Installment | 1 | $ | — | $ | — | $ | 27 | $ | 27 | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Accruing TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Real estate - commercial | 5 | $ | 202 | $ | — | $ | 1,148 | $ | 1,350 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 343 | $ | — | $ | 343 | ||||||||||||||||||||||||
Real estate - mortgage | 2 | $ | — | $ | 298 | $ | 423 | $ | 721 | ||||||||||||||||||||||||
Nonaccrual Loans | ' | ||||||||||||||||||||||||||||||||
Financing Receivable, Modifications [Line Items] | ' | ||||||||||||||||||||||||||||||||
Schedule of troubled debt restructuring | ' | ||||||||||||||||||||||||||||||||
Nonaccrual TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Commercial | 2 | $ | — | $ | — | $ | 391 | $ | 391 | ||||||||||||||||||||||||
Real estate-construction | 1 | $ | — | $ | 110 | $ | — | $ | 110 | ||||||||||||||||||||||||
Real estate - mortgage | 1 | $ | — | $ | — | $ | 113 | $ | 113 | ||||||||||||||||||||||||
Installment | 2 | $ | — | $ | — | $ | 59 | $ | 59 | ||||||||||||||||||||||||
Other | 4 | $ | 104 | $ | 60 | $ | 68 | $ | 232 | ||||||||||||||||||||||||
Nonaccrual TDRs | Rate | ||||||||||||||||||||||||||||||||
Reduction | |||||||||||||||||||||||||||||||||
Number | and | ||||||||||||||||||||||||||||||||
of | Rate | Maturity | Maturity | ||||||||||||||||||||||||||||||
Contracts | Reduction | Extension | Extension | Total | |||||||||||||||||||||||||||||
Commercial | 1 | $ | — | $ | — | $ | 529 | $ | 529 | ||||||||||||||||||||||||
Real estate-construction | 2 | $ | 327 | $ | 71 | $ | — | $ | 398 | ||||||||||||||||||||||||
Installment | 4 | $ | — | $ | — | $ | 120 | $ | 120 | ||||||||||||||||||||||||
Other | 1 | $ | — | $ | — | $ | 25 | $ | 25 |
OTHER_REAL_ESTATE_OWNED_Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Real Estate [Abstract] | ' | ||||||||||||
Schedule of changes in other real estate owned | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance, beginning of year | $ | 22,423 | $ | 20,106 | $ | 25,784 | |||||||
Loans transferred to other real estate owned | 818 | 12,239 | 10,454 | ||||||||||
Premises transferred to other real estate owned | 627 | — | — | ||||||||||
Sales of other real estate owned | (17,204 | ) | (6,889 | ) | (12,036 | ) | |||||||
Loss on sale or write-down of other real estate owned | (3,210 | ) | (3,033 | ) | (4,096 | ) | |||||||
Balance, end of year | $ | 3,454 | $ | 22,423 | $ | 20,106 | |||||||
Schedule of components of other real estate owned | ' | ||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Operating expenses | $ | 329 | $ | 523 | $ | 708 | |||||||
Provision for unrealized losses | 3,057 | 2,638 | 4,002 | ||||||||||
Net loss on sales | 153 | 395 | 94 | ||||||||||
Total other real estate owned expense | $ | 3,539 | $ | 3,556 | $ | 4,804 |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||
Fair Value Measurements at December 31, 2013 Using: | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 18,198 | $ | — | $ | 18,198 | $ | — | |||||||||||||
Obligations of state and political subdivisions | 5,317 | — | 5,317 | — | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 248,277 | — | 248,277 | — | |||||||||||||||||
Corporate debt securities | 4,755 | — | 4,755 | — | |||||||||||||||||
Equity securities | 2,932 | — | 2,932 | — | |||||||||||||||||
$ | 279,479 | $ | — | $ | 279,479 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2012 Using: | |||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Available-for-sale securities: | |||||||||||||||||||||
Obligations of U.S. government sponsored agencies | $ | 21,118 | $ | — | $ | 21,118 | $ | — | |||||||||||||
Obligations of state and political subdivisions | 11,197 | — | 11,197 | — | |||||||||||||||||
Government sponsored agency mortgage-backed securities | 245,631 | — | 245,631 | — | |||||||||||||||||
Corporate debt securities | 4,756 | — | 4,756 | — | |||||||||||||||||
Equity securities | 3,113 | — | 3,113 | — | |||||||||||||||||
$ | 285,815 | $ | — | $ | 285,815 | $ | — | ||||||||||||||
Schedule of assets and liabilities measured at fair value on non-recurring basis | ' | ||||||||||||||||||||
Total at | |||||||||||||||||||||
December 31, | Fair Value Measurements Using: | ||||||||||||||||||||
2013 | Level 1 | Level 2 | Level 3 | Total Losses | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 157 | $ | — | $ | — | $ | 157 | $ | 63 | |||||||||||
Real estate - commercial | 593 | — | — | 593 | 239 | ||||||||||||||||
Real estate - construction | 110 | — | — | 110 | 71 | ||||||||||||||||
Real estate - mortgage | 291 | — | — | 291 | 42 | ||||||||||||||||
Other | 164 | — | — | 164 | 71 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - commercial | 570 | — | — | 570 | 57 | ||||||||||||||||
Real estate - construction | 2,147 | — | — | 2,147 | 1,125 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 4,032 | $ | — | $ | — | $ | 4,032 | $ | 1,668 | |||||||||||
Total at | |||||||||||||||||||||
December 31, | Fair Value Measurements Using: | ||||||||||||||||||||
2012 | Level 1 | Level 2 | Level 3 | Total Losses | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 585 | $ | — | $ | — | $ | 585 | $ | 126 | |||||||||||
Real estate - commercial | 2,222 | — | — | 2,222 | 1,313 | ||||||||||||||||
Real estate - construction | 143 | — | — | 143 | 19 | ||||||||||||||||
Real estate - mortgage | 464 | — | — | 464 | 29 | ||||||||||||||||
Installment | 75 | — | — | 75 | 27 | ||||||||||||||||
Other | 25 | — | — | 25 | 24 | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - construction | 7,360 | — | — | 7,360 | 2,194 | ||||||||||||||||
Real estate - mortgage | 184 | — | — | 184 | 140 | ||||||||||||||||
Total assets measured at fair value on a nonrecurring basis | $ | 11,058 | $ | — | $ | — | $ | 11,058 | $ | 3,872 | |||||||||||
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a nonrecurring basis | ' | ||||||||||||||||||||
Range | |||||||||||||||||||||
(Weighted | |||||||||||||||||||||
31-Dec-13 | Fair Value | Valuation Techniques | Unobservable Inputs | Average) | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 157 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - commercial | $ | 593 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 110 | Sales comparison approach | Adjustment for differences between the comparable sales | 2% to 3% (3%) | ||||||||||||||||
Real estate - mortgage | $ | 291 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other | $ | 164 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - commercial | $ | 570 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 2,147 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% to 6% (6%) | ||||||||||||||||
Range | |||||||||||||||||||||
(Weighted | |||||||||||||||||||||
Monday, December 31, 2012 | Fair Value | Valuation Techniques | Unobservable Inputs | Average) | |||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 585 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - commercial | $ | 2,222 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Real estate - construction | $ | 143 | Sales comparison approach | Adjustment for differences between the comparable sales | 2% to 3% (3%) | ||||||||||||||||
Real estate - mortgage | $ | 464 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other | $ | 25 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Other real estate owned: | |||||||||||||||||||||
Real estate - construction | $ | 7,360 | Sales comparison approach | Adjustment for differences between the comparable sales | 0% to 6% (6%) | ||||||||||||||||
Real estate - mortgage | $ | 184 | Sales comparison approach | Adjustment for differences between the comparable sales | 6% to 11% (9%) | ||||||||||||||||
Schedule of carrying amounts and estimated fair values | ' | ||||||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||
December 31, 2013 Using | |||||||||||||||||||||
Carrying | |||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||||||
Cash and due from banks | $ | 19,348 | $ | 19,348 | $ | — | $ | — | $ | 19,348 | |||||||||||
Federal funds sold | 38,135 | 38,135 | — | — | 38,135 | ||||||||||||||||
Time deposits at other financial institutions | 2,226 | — | 2,226 | — | 2,226 | ||||||||||||||||
FHLB, FRB and other securities | 8,402 | — | — | — | N/A | ||||||||||||||||
Securities: | |||||||||||||||||||||
Available-for-sale | 279,479 | — | 279,479 | — | 279,479 | ||||||||||||||||
Held-to-maturity | 2 | — | 2 | — | 2 | ||||||||||||||||
Loans | 499,943 | — | 510,611 | 510,611 | |||||||||||||||||
Accrued interest receivable | 2,124 | — | 692 | 1,432 | 2,124 | ||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Nonmaturity deposits | $ | 638,112 | $ | 638,112 | $ | — | $ | — | $ | 638,112 | |||||||||||
Time deposits | 149,737 | — | 149,899 | — | 149,899 | ||||||||||||||||
Subordinated debentures | 21,651 | — | — | 7,702 | 7,702 | ||||||||||||||||
Accrued interest payable | 108 | 2 | 29 | 77 | 108 | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||||||
December 31, 2012 Using | |||||||||||||||||||||
Carrying | |||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
FINANCIAL ASSETS | |||||||||||||||||||||
Cash and due from banks | $ | 22,654 | $ | 22,654 | $ | — | $ | — | $ | 22,654 | |||||||||||
Federal funds sold | 15,865 | 15,865 | — | — | 15,865 | ||||||||||||||||
Time deposits at other financial institutions | 2,219 | — | 2,219 | — | 2,219 | ||||||||||||||||
FHLB, FRB and other securities | 8,313 | — | — | — | N/A | ||||||||||||||||
Securities: | |||||||||||||||||||||
Available-for-sale | 285,815 | — | 285,815 | — | 285,815 | ||||||||||||||||
Held-to-maturity | 6 | — | 6 | — | 6 | ||||||||||||||||
Loans | 481,753 | — | — | 500,689 | 500,689 | ||||||||||||||||
Accrued interest receivable | 2,217 | — | 767 | 1,450 | 2,217 | ||||||||||||||||
FINANCIAL LIABILITIES | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Nonmaturity deposits | $ | 596,204 | $ | 596,204 | $ | — | $ | — | $ | 596,204 | |||||||||||
Time deposits | 172,376 | — | 172,805 | — | 172,805 | ||||||||||||||||
Subordinated debentures | 21,651 | — | — | 9,018 | 9,018 | ||||||||||||||||
Accrued interest payable | 136 | 2 | 54 | 80 | 136 | ||||||||||||||||
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of major classifications of premises and equipment | ' | ||||||||
2013 | 2012 | ||||||||
Land | $ | 2,207 | $ | 2,620 | |||||
Building and building improvements | 8,696 | 9,341 | |||||||
Furniture, fixtures and equipment | 12,716 | 12,599 | |||||||
Leasehold improvements | 2,805 | 2,791 | |||||||
Construction in process | 26 | 5 | |||||||
Total premises and equipment | 26,450 | 27,356 | |||||||
Less: Accumulated depreciation | (18,617 | ) | (18,175 | ) | |||||
Premises and equipment, net | $ | 7,833 | $ | 9,181 | |||||
Schedule of future minimum lease payments | ' | ||||||||
2014 | $ | 1,047 | |||||||
2015 | 793 | ||||||||
2016 | 469 | ||||||||
2017 | 299 | ||||||||
2018 | 226 | ||||||||
Thereafter | 910 | ||||||||
Total | $ | 3,744 |
OTHER_ASSETS_Tables
OTHER ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Other Assets [Abstract] | ' | ||||||||
Schedule of major classifications of other assets | ' | ||||||||
2013 | 2012 | ||||||||
Deferred taxes, net | $ | 15,309 | $ | 12,346 | |||||
Federal and state tax receivable | 1,314 | 444 | |||||||
Prepaid expenses | 767 | 879 | |||||||
Mortgage and SBA servicing asset | 1,362 | 1,139 | |||||||
Other | 748 | 789 | |||||||
Total other assets | $ | 19,500 | $ | 15,597 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deposits [Abstract] | ' | ||||||||
Schedule of deposits | ' | ||||||||
2013 | 2012 | ||||||||
Noninterest-bearing demand | $ | 184,971 | $ | 177,855 | |||||
Interest-bearing demand | 202,508 | 185,315 | |||||||
Savings and money market | 250,633 | 233,034 | |||||||
Time certificates | 149,737 | 172,376 | |||||||
Total deposits | $ | 787,849 | $ | 768,580 | |||||
Schedule of maturities of time deposits | ' | ||||||||
Years | Amount | ||||||||
2014 | $ | 125,808 | |||||||
2015 | 15,498 | ||||||||
2016 | 6,021 | ||||||||
2017 | 2,410 | ||||||||
$ | 149,737 |
LINES_OF_CREDIT_Tables
LINES OF CREDIT (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Line of Credit Facility [Abstract] | ' | ||||||
Schedule of lines of credit | ' | ||||||
Description | Amount | Expiration | |||||
Secured: | |||||||
Secured fed funds | $ | 10,000 | 6/30/14 | ||||
First deeds of trust on eligible 1-4 unit residential loans | $ | 70,932 | Monthly | ||||
Securities backed credit program | $ | 189,757 | Monthly | ||||
Discount -securities | $ | 2,131 | Monthly |
SUBORDINATED_DEBENTURES_Tables
SUBORDINATED DEBENTURES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Subordinated Debt [Abstract] | ' | ||||||||||||||||||||||
Schedule of terms of subordinated debenture | ' | ||||||||||||||||||||||
Fixed or | |||||||||||||||||||||||
Date | Variable | Current | Rate | Redemption | Amount at December 31, | ||||||||||||||||||
Series | Issued | Maturity | Rate | Rate | Index | Date | 2013 | 2012 | |||||||||||||||
North Valley Capital Trust II | 4/10/03 | 4/24/33 | Variable | 3.49 | % | LIBOR + 3.25% | 4/24/08 | 6,186 | 6,186 | ||||||||||||||
North Valley Capital Trust III | 5/5/04 | 4/24/34 | Variable | 3.04 | % | LIBOR + 2.80% | 7/23/09 | 5,155 | 5,155 | ||||||||||||||
North Valley Capital Statutory Trust IV | 12/29/05 | 3/15/36 | Variable | 1.57 | % | LIBOR + 1.33% | 3/15/11 | 10,310 | 10,310 | ||||||||||||||
$ | 21,651 | $ | 21,651 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of provision (benefit) for income taxes | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax (benefit) provision: | |||||||||||||
Federal | $ | (75 | ) | $ | (99 | ) | $ | 63 | |||||
State | (15 | ) | 117 | 46 | |||||||||
Total | (90 | ) | 18 | 109 | |||||||||
Deferred tax provision (benefit): | |||||||||||||
Federal | 1,472 | 2,715 | 695 | ||||||||||
State | 212 | (200 | ) | (269 | ) | ||||||||
Impact of valuation allowance | — | (4,277 | ) | (223 | ) | ||||||||
Total | 1,684 | (1,762 | ) | 203 | |||||||||
Total provision (benefit) for income taxes | $ | 1,594 | $ | (1,744 | ) | $ | 312 | ||||||
Schedule of effective federal tax rate | ' | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ||||||||||
State income taxes net of Federal income tax benefit | 2.50% | (1.2% | ) | (4.3% | ) | ||||||||
Tax exempt income | (2.5% | ) | (4.0% | ) | (6.5% | ) | |||||||
Impact of valuation allowance | — | (61.1% | ) | (6.6% | ) | ||||||||
Increase in reserve for uncertain tax positions | — | — | 1.20% | ||||||||||
Other | (4.4% | ) | (7.1% | ) | (9.5% | ) | |||||||
Effective tax (benefit) rate | 30.60% | (38.4% | ) | 9.30% | |||||||||
Schedule of components of net deferred tax asset | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 4,490 | $ | 5,252 | |||||||||
Accrued pension obligation | 3,573 | 3,070 | |||||||||||
Underfunded pension obligation | 893 | 1,125 | |||||||||||
Deferred compensation | 811 | 755 | |||||||||||
Unrealized loss on available-for-sale securities | 2,595 | — | |||||||||||
Discount on acquired loans | — | 14 | |||||||||||
Stock based compensation | 166 | 181 | |||||||||||
Tax credits | 2,634 | 2,092 | |||||||||||
Net operating loss | 4,501 | 4,109 | |||||||||||
Capital loss | 26 | 489 | |||||||||||
Other real estate owned | 684 | 2,597 | |||||||||||
Other | 526 | 864 | |||||||||||
Total deferred tax assets | $ | 20,899 | $ | 20,548 | |||||||||
Deferred tax liabilities: | |||||||||||||
Tax depreciation in excess of book depreciation | 1,069 | 1,149 | |||||||||||
FHLB stock dividend | 410 | 410 | |||||||||||
Deferred loan fees and costs | 894 | 986 | |||||||||||
Originated mortgage servicing rights | 463 | 412 | |||||||||||
Core deposit intangibles | 50 | 117 | |||||||||||
Unrealized gain on available-for-sale securities | — | 2,284 | |||||||||||
Market to market adjustment | — | 28 | |||||||||||
California franchise tax | 2,538 | 2,612 | |||||||||||
Other | 166 | 204 | |||||||||||
Total deferred tax liabilities | $ | 5,590 | $ | 8,202 | |||||||||
Net deferred tax asset | $ | 15,309 | $ | 12,346 | |||||||||
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Beginning balance | $ | 519 | $ | 519 | |||||||||
Additions based on tax positions related to the current year | — | — | |||||||||||
Additions for tax positions of prior years | — | — | |||||||||||
Reductions for tax positions of prior years | — | — | |||||||||||
Settlements | — | — | |||||||||||
Ending balance | $ | 519 | $ | 519 |
PENSION_AND_OTHER_BENEFIT_PLAN1
PENSION AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||
Schedule of changes in projected benefit obligations | ' | ||||||||||||
Pension Benefits | |||||||||||||
2013 | 2012 | ||||||||||||
Change in projected benefit obligation (PBO) | |||||||||||||
Benefit obligation at the beginning of the year | $ | 9,443 | $ | 7,397 | |||||||||
Service cost | 683 | 602 | |||||||||||
Interest cost | 372 | 334 | |||||||||||
Benefit payments | (250 | ) | (250 | ) | |||||||||
Actuarial loss | (275 | ) | 1,360 | ||||||||||
Plan amendments | — | — | |||||||||||
Projected benefit obligation at end of year | $ | 9,973 | $ | 9,443 | |||||||||
Accumulated benefit obligation at end of year | $ | 7,639 | $ | 7,031 | |||||||||
Change in plan assets: | |||||||||||||
Employer contributions | $ | 250 | $ | 250 | |||||||||
Benefit payments | (250 | ) | (250 | ) | |||||||||
Fair value of plan assets at end of year | $ | — | $ | — | |||||||||
Funded status | $ | (9,973 | ) | $ | (9,443 | ) | |||||||
Amounts recognized in statements of financial position | |||||||||||||
Current liability | (300 | ) | (278 | ) | |||||||||
Noncurrent liability | (9,673 | ) | (9,165 | ) | |||||||||
Net amount recognized | $ | (9,973 | ) | $ | (9,443 | ) | |||||||
Amounts recognized in accumulated other comprehensive income | |||||||||||||
Prior service cost | 305 | 403 | |||||||||||
Net loss | 1,872 | 2,342 | |||||||||||
Net amount recognized | $ | 2,177 | $ | 2,745 | |||||||||
Total amount recognized | (7,796 | ) | (6,698 | ) | |||||||||
Schedule of assumptions used to determine benefit obligations | ' | ||||||||||||
Assumptions used to determine benefit obligations as of the end of fiscal year | |||||||||||||
Measurement Date | 12/31/13 | 12/31/12 | 12/31/11 | ||||||||||
Discount rate | 4.75 | % | 4 | % | 4.6 | % | |||||||
Expected return on assets | N/A | N/A | N/A | ||||||||||
Rate of compensation increase | 8 | % | 8 | % | 8 | % | |||||||
Schedule of components of net periodic benefits cost | ' | ||||||||||||
Components of net periodic benefits cost | 2013 | 2012 | 2011 | ||||||||||
Service cost | $ | 683 | $ | 602 | $ | 549 | |||||||
Interest cost | 372 | 334 | 333 | ||||||||||
Amortization of prior service cost | 98 | 98 | 98 | ||||||||||
Amortization of actuarial loss | 195 | 40 | 10 | ||||||||||
Net periodic benefit cost | $ | 1,348 | $ | 1,074 | $ | 990 | |||||||
Other comprehensive (income) loss | $ | (568 | ) | $ | 1,222 | $ | 748 | ||||||
Amounts included in accumulated other comprehensive income expected to be recognized during the next fiscal year | |||||||||||||
Prior service cost | $ | 98 | $ | 98 | $ | 98 | |||||||
Actuarial loss | $ | 142 | $ | 195 | $ | 39 | |||||||
Schedule of assumptions used in computing net periodic benefit cost | ' | ||||||||||||
Assumptions used in computing net periodic benefit cost | |||||||||||||
Measurement Date | 12/31/13 | 12/31/12 | 12/31/11 | ||||||||||
Discount rate | 4.75 | % | 4 | % | 4.6 | % | |||||||
Expected return on assets | N/A | N/A | N/A | ||||||||||
Rate of compensation increase | 8 | % | 8 | % | 8 | % | |||||||
Schedule of benefits expected to be paid | ' | ||||||||||||
Year | Pension Benefits | ||||||||||||
2014 | 300 | ||||||||||||
2015 | 346 | ||||||||||||
2016 | 2,402 | ||||||||||||
2017 | 378 | ||||||||||||
2018 | 461 | ||||||||||||
2019 - 2021 | 6,997 |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||
Schedule of outstanding stock options | ' | ||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Weighted | Average | ||||||||||||||||||||||||
Average | Remaining | Aggregate | |||||||||||||||||||||||
Exercise | Contractual | Intrinsic | |||||||||||||||||||||||
Options | Price | Term | Value ($000) | ||||||||||||||||||||||
Outstanding January 1, 2011 | 152,095 | 51.02 | |||||||||||||||||||||||
Granted | 66,000 | 10.38 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (34,025 | ) | 39.66 | ||||||||||||||||||||||
Outstanding December 31, 2011 | 184,070 | 38.55 | |||||||||||||||||||||||
Granted | 77,908 | 11.13 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (13,156 | ) | 49.1 | ||||||||||||||||||||||
Outstanding December 31, 2012 | 248,822 | $ | 29.4 | ||||||||||||||||||||||
Granted | 114,234 | 16.8 | |||||||||||||||||||||||
Exercised | — | — | |||||||||||||||||||||||
Expired or canceled | (8,346 | ) | 63.32 | ||||||||||||||||||||||
Outstanding December 31, 2013 | 354,710 | $ | 24.55 | 7 | $ | 1,403 | |||||||||||||||||||
Fully vested and exercisable at December 31, 2013 | 138,607 | $ | 40.97 | 5 | $ | 345 | |||||||||||||||||||
Options expected to vest | 216,103 | $ | 14.01 | 9 | $ | 1,059 | |||||||||||||||||||
Schedule of summary of stock options outstanding | ' | ||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Average | Exercise | Exercise | |||||||||||||||||||||||
Remaining | Price of | Price of | |||||||||||||||||||||||
Range of | Options | Contractual | Options | Options | Options | ||||||||||||||||||||
Exercise Prices | Outstanding | Life (Years) | Outstanding | Exercisable | Exercisable | ||||||||||||||||||||
$ | 0-12.38 | 140,408 | 7.9 | $ | 10.77 | 41,079 | $ | 10.65 | |||||||||||||||||
$ | 12.38-24.75 | 162,372 | 7.9 | $ | 18.64 | 45,598 | $ | 23.54 | |||||||||||||||||
$ | 61.88-74.25 | 22,229 | 4.07 | $ | 65.05 | 22,229 | $ | 65.05 | |||||||||||||||||
$ | 74.25-86.63 | 10,012 | 1.15 | $ | 81 | 10,012 | $ | 81 | |||||||||||||||||
$ | 86.63-99.00 | 5,514 | 2.02 | $ | 89.6 | 5,514 | $ | 89.6 | |||||||||||||||||
$ | 99.00-111.38 | 14,175 | 2.39 | $ | 99.98 | 14,175 | $ | 99.98 |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of summary of related party transactions | ' | ||||||||
2013 | 2012 | ||||||||
Beginning balance | $ | 4,689 | $ | 4,681 | |||||
Borrowings | 126 | 525 | |||||||
Repayments | (423 | ) | (517 | ) | |||||
$ | 4,392 | $ | 4,689 | ||||||
Undisbursed commitments | $ | 116 | $ | 199 |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | ' | ||||||||||||||||||||||||
Schedule of company's and NVB's actual capital amounts | ' | ||||||||||||||||||||||||
To be Well Capitalized | |||||||||||||||||||||||||
For Capital | Under Prompt Corrective | ||||||||||||||||||||||||
Adequacy Purposes | Action Provisions | ||||||||||||||||||||||||
Actual | Minimum | Minimum | Minimum | Minimum | |||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
Company | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 119,178 | 19.04 | % | $ | 50,075 | 8 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 111,333 | 17.79 | % | $ | 25,033 | 4 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to average assets) | $ | 111,333 | 12.16 | % | $ | 36,623 | 4 | % | N/A | N/A | |||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 113,028 | 18.28 | % | $ | 49,465 | 8 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 105,211 | 17.01 | % | $ | 24,741 | 4 | % | N/A | N/A | |||||||||||||||
Tier 1 capital (to average assets) | $ | 105,211 | 11.77 | % | $ | 35,756 | 4 | % | N/A | N/A | |||||||||||||||
North Valley Bank | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 116,783 | 18.68 | % | $ | 50,014 | 8 | % | $ | 62,518 | 10 | % | |||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 108,947 | 17.42 | % | $ | 25,017 | 4 | % | $ | 37,525 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | $ | 108,947 | 11.9 | % | $ | 36,621 | 4 | % | $ | 45,776 | 5 | % | |||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital (to risk weighted assets) | $ | 112,938 | 18.26 | % | $ | 49,480 | 8 | % | $ | 61,850 | 10 | % | |||||||||||||
Tier 1 capital (to risk weighted assets) | $ | 105,122 | 17 | % | $ | 24,735 | 4 | % | $ | 37,102 | 6 | % | |||||||||||||
Tier 1 capital (to average assets) | $ | 105,122 | 11.76 | % | $ | 35,756 | 4 | % | $ | 44,695 | 5 | % |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of basic and diluted earning per share | ' | ||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Basic | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Weighted average common shares outstanding | 6,836 | 6,834 | 6,833 | ||||||||||
Basic earnings per common share | $ | 0.53 | $ | 0.92 | $ | 0.45 | |||||||
Diluted | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Weighted average common shares outstanding | 6,836 | 6,834 | 6,833 | ||||||||||
Dilutive effect of outstanding stock options | 21 | 1 | — | ||||||||||
Average shares and dilutive potential common shares | 6,857 | 6,835 | 6,833 | ||||||||||
Diluted earnings per common share | $ | 0.53 | $ | 0.92 | $ | 0.45 | |||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||
Schedule of accumulated other comprehensive (loss) income | ' | ||||||||||||
Adjustments | Accumulated | ||||||||||||
Net Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Defined Benefit | Comprehensive | |||||||||||
31-Dec-13 | on Securities | Pension Plan | (Loss) Income | ||||||||||
Beginning balance | $ | 3,287 | $ | (1,621 | ) | $ | 1,666 | ||||||
Net unrealized loss on securities available for sale, net of tax, $(4,655) | (6,698 | ) | (6,698 | ) | |||||||||
Reclassification adjustment for gains on securities, net of tax, $(225) | (323 | ) | (323 | ) | |||||||||
Net gains arising during the period, net of tax, $113 | — | 162 | 162 | ||||||||||
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax, $120 | — | 173 | 173 | ||||||||||
Ending Balance | $ | (3,734 | ) | $ | (1,286 | ) | $ | (5,020 | ) | ||||
31-Dec-12 | |||||||||||||
Beginning balance | $ | 2,369 | $ | (899 | ) | $ | 1,470 | ||||||
Net unrealized gains on securities available for sale, net of tax, $1,408 | 2,025 | 2,025 | |||||||||||
Reclassification adjustment for gains on securities, net of tax, $(770) | (1,107 | ) | (1,107 | ) | |||||||||
Net gains arising during the period, net of tax, $(557) | (803 | ) | (803 | ) | |||||||||
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax, $57 | 81 | 81 | |||||||||||
Ending Balance | $ | 3,287 | $ | (1,621 | ) | $ | 1,666 | ||||||
Schedule of changes in each component of accumulated other comprehensive income | ' | ||||||||||||
31-Dec-13 | |||||||||||||
Details About Accumulated Other | Amount Reclassified From | Affected Line Item in the Statement | |||||||||||
Comprehensive (Loss) Income Components | Accumulated Other | Where Net Income is Presented | |||||||||||
Comprehensive (Loss) Income | |||||||||||||
Gain on investment securities | $ | 548 | Gain on sales or calls of securities, net | ||||||||||
Amortization of prior service cost and net gain included in net periodic pension cost | (293 | ) | Salaries and employee benefits | ||||||||||
255 | Total before tax | ||||||||||||
(104 | ) | Provision for income tax | |||||||||||
$ | 151 | Net of tax | |||||||||||
31-Dec-12 | |||||||||||||
Details About Accumulated Other | Amount Reclassified From | Affected Line Item in the Statement | |||||||||||
Comprehensive (Loss) Income Components | Accumulated Other | Where Net Income is Presented | |||||||||||
Comprehensive (Loss) Income | |||||||||||||
Gain on investment securities | $ | 1,877 | Gain on sales or calls of securities, net | ||||||||||
Amortization of prior service cost and net gain included in net periodic pension cost | (137 | ) | Salaries and employee benefits | ||||||||||
1,740 | Total before tax | ||||||||||||
(713 | ) | Provision for income tax | |||||||||||
$ | 1,027 | Net of tax |
PARENT_COMPANY_ONLY_CONDENSED_1
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Schedule of condensed balance sheet | ' | ||||||||||||
CONDENSED BALANCE SHEET | |||||||||||||
As of December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 2,759 | $ | 1,023 | |||||||||
Investment in banking subsidiary | 107,812 | 113,383 | |||||||||||
Investment in other subsidiary | 2 | 2 | |||||||||||
Investment in unconsolidated subsidiary grantor trusts | 651 | 651 | |||||||||||
Other assets | 4,277 | 3,082 | |||||||||||
Total assets | $ | 115,501 | $ | 118,141 | |||||||||
Liabilities and stockholders’ equity | |||||||||||||
Subordinated debentures | $ | 21,651 | $ | 21,651 | |||||||||
Other liabilities | 421 | 329 | |||||||||||
Stockholders’ equity | 93,429 | 96,161 | |||||||||||
Total liabilities and stockholders’ equity | $ | 115,501 | $ | 118,141 | |||||||||
Schedule of condensed statement of income | ' | ||||||||||||
CONDENSED STATEMENT OF INCOME | As of December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $ | 4,500 | $ | 16,500 | $ | — | |||||||
Expense: | |||||||||||||
Interest on subordinated debentures | 532 | 1,352 | 1,892 | ||||||||||
Legal and accounting | 522 | 485 | 470 | ||||||||||
Other | 2,047 | 1,624 | 1,466 | ||||||||||
Tax benefit | (1,303 | ) | (1,455 | ) | (1,609 | ) | |||||||
Total expense | 1,798 | 2,006 | 2,219 | ||||||||||
Income (loss) before equity in undistributed income (loss) of subsidiaries | 2,702 | 14,494 | (2,219 | ) | |||||||||
Equity in undistributed income (loss) of subsidiaries | 923 | (8,204 | ) | 5,266 | |||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Schedule of condensed statement of cash flows | ' | ||||||||||||
CONDENSED STATEMENT OF CASH FLOWS | As of December 31, | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 3,625 | $ | 6,290 | $ | 3,047 | |||||||
Adjustments to reconcile net income to net cash from operating activites: | |||||||||||||
Equity in undistributed (loss) income of subsidiaries | (923 | ) | 8,204 | (5,266 | ) | ||||||||
Stock-based compensation expense | 137 | 118 | 62 | ||||||||||
Effect of changes in: | |||||||||||||
Other assets | (1,195 | ) | (73 | ) | 19 | ||||||||
Other liabilities | 92 | (4,772 | ) | 302 | |||||||||
Net cash provided by (used in) operating activities | 1,736 | 9,767 | (1,836 | ) | |||||||||
Cash flows from investing activities | |||||||||||||
Investments in subsidiaries | — | 310 | — | ||||||||||
Net cash provided by investing activities | — | 310 | |||||||||||
Cash flows from financing activities | |||||||||||||
Repayment of subordinated debentures | — | (10,310 | ) | — | |||||||||
Net cash used in financing activities | — | (10,310 | ) | — | |||||||||
Increase (decrease) in cash and cash equivalents | 1,736 | (233 | ) | (1,836 | ) | ||||||||
Cash and cash equivalents, beginning of year | 1,023 | 1,256 | 3,092 | ||||||||||
Cash and cash equivalents, end of year | $ | 2,759 | $ | 1,023 | $ | 1,256 |
NATURE_OF_OPERATIONS_AND_SIGNI3
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' |
Weighted average dividend yield | 0.00% | 0.00% | 0.00% |
Weighted average expected volatility | 59.78% | 58.50% | 53.60% |
Weighted average risk-free interest rate | 1.38% | 1.40% | 2.27% |
Weighted average expected option life | '6 years 3 months 25 days | '6 years 5 months 26 days | '7 years 8 months 1 day |
Weighted average grant date fair value (in dollars per share) | $9.53 | $6.28 | $6.07 |
NATURE_OF_OPERATIONS_AND_SIGNI4
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jul. 31, 2012 | Dec. 31, 2010 | |
Equity method investments | $651,000 | ' | ' | ' | ' | ' |
Mortgage servicing asset | 175,904,000 | 145,314,000 | ' | ' | ' | ' |
Loan loss review threshold, minimum amount | 250,000 | ' | ' | ' | ' | ' |
Core deposit intangible | 1,421,000 | ' | ' | ' | ' | ' |
Core deposit intangible with accumulated amortization | 1,312,000 | ' | ' | ' | ' | ' |
Amortization expense on core deposit intangible for next rolling twelve months | 146,000 | ' | ' | ' | ' | ' |
Estimated life of amortization | '10 years | ' | ' | ' | ' | ' |
Remaining amortization period | '9 months | ' | ' | ' | ' | ' |
Amortization expense on intangibles | 146,000 | 146,000 | 146,000 | ' | ' | ' |
Finite lived intangible assets, amortization expense in 2014 | 109,000 | ' | ' | ' | ' | ' |
Other comprehensive income (loss) | 335,000 | -722,000 | -441,000 | ' | ' | ' |
Number of shares authorized under plan (in shares) | 601,925 | ' | ' | ' | ' | ' |
Number of options outstanding (in shares) | 354,710 | 248,822 | 184,070 | ' | ' | 152,095 |
Percentage of common stock outstanding | 2.00% | ' | ' | ' | ' | ' |
Stock award available annually to each director for retainer | 180 | 180 | ' | 180 | 180 | ' |
Number of options granted (in shares) | 114,234 | 77,908 | 66,000 | ' | ' | ' |
Servicing receivable guaranteed by small business administration | ' | ' | ' | ' | ' | ' |
Servicing asset | $12,580,000 | $13,696,000 | ' | ' | ' | ' |
Premises | Minimum | ' | ' | ' | ' | ' | ' |
Useful lives of assets | '20 years | ' | ' | ' | ' | ' |
Premises | Maximum | ' | ' | ' | ' | ' | ' |
Useful lives of assets | '30 years | ' | ' | ' | ' | ' |
Furniture, fixtures and equipment | Minimum | ' | ' | ' | ' | ' | ' |
Useful lives of assets | '2 years | ' | ' | ' | ' | ' |
Furniture, fixtures and equipment | Maximum | ' | ' | ' | ' | ' | ' |
Useful lives of assets | '10 years | ' | ' | ' | ' | ' |
Stock Incentive 2008 Plan | ' | ' | ' | ' | ' | ' |
Common stock available for future grants (in shares) | 241,635 | ' | ' | ' | ' | ' |
Number of shares authorized under plan (in shares) | 549,995 | ' | ' | ' | ' | ' |
Number of shares to be issued upon the exercise of options granted (in shares) | 302,780 | ' | ' | ' | ' | ' |
Number of shares issued as stock awards (in shares) | 5,580 | ' | ' | ' | ' | ' |
Stock Incentive 1998 Plan | ' | ' | ' | ' | ' | ' |
Number of options outstanding (in shares) | 51,930 | ' | ' | ' | ' | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Available-for-Sale: | ' | ' |
Estimated Fair Value | $279,479 | $285,815 |
Held-to-Maturity: | ' | ' |
Amortized Cost | 2 | 6 |
Government sponsored agency mortgage-backed securities | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 251,923 | 239,543 |
Gross Unrealized Gains | 2,528 | 6,152 |
Gross Unrealized Losses | -6,174 | -64 |
Estimated Fair Value | 248,277 | 245,631 |
Held-to-Maturity: | ' | ' |
Amortized Cost | 2 | 6 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | ' | ' |
Estimated Fair Value | 2 | 6 |
Obligations of U.S. government sponsored agencies | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 19,669 | 21,003 |
Gross Unrealized Gains | ' | 115 |
Gross Unrealized Losses | -1,471 | ' |
Estimated Fair Value | 18,198 | 21,118 |
Obligations of state and political subdivisions | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 5,216 | 10,698 |
Gross Unrealized Gains | 151 | 499 |
Gross Unrealized Losses | -50 | ' |
Estimated Fair Value | 5,317 | 11,197 |
Corporate debt securities | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 6,000 | 6,000 |
Gross Unrealized Gains | ' | ' |
Gross Unrealized Losses | -1,245 | -1,244 |
Estimated Fair Value | 4,755 | 4,756 |
Equity securities | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 3,000 | 3,000 |
Gross Unrealized Gains | ' | 113 |
Gross Unrealized Losses | -68 | ' |
Estimated Fair Value | 2,932 | 3,113 |
Available-for-Sale | ' | ' |
Available-for-Sale: | ' | ' |
Amortized Cost | 285,808 | 280,244 |
Gross Unrealized Gains | 2,679 | 6,879 |
Gross Unrealized Losses | -9,008 | -1,308 |
Estimated Fair Value | $279,479 | $285,815 |
INVESTMENT_SECURITIES_Details_
INVESTMENT SECURITIES (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Description of Securities | ' | ' |
Estimated Fair Value | $2,932 | ' |
Unrealized Losses | -68 | ' |
Obligations of U.S. government sponsored agencies | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 18,198 | ' |
Unrealized Losses | -1,471 | ' |
Obligations of U.S. government sponsored agencies | Investment Securities Less than 12 Months | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 18,198 | ' |
Unrealized Losses | -1,471 | ' |
Obligations of state and political subdivisions | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 1,145 | ' |
Unrealized Losses | -50 | ' |
Obligations of state and political subdivisions | Investment Securities Less than 12 Months | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 1,145 | ' |
Unrealized Losses | -50 | ' |
Government sponsored agency mortgage-backed securities | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 173,717 | 34,878 |
Unrealized Losses | -6,174 | -64 |
Government sponsored agency mortgage-backed securities | Investment Securities Less than 12 Months | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 156,421 | 34,878 |
Unrealized Losses | -5,163 | -64 |
Government sponsored agency mortgage-backed securities | Investment Securities 12 Months or Longer | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 17,296 | ' |
Unrealized Losses | -1,011 | ' |
Corporate debt securities | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 4,755 | 4,756 |
Unrealized Losses | -1,245 | -1,244 |
Corporate debt securities | Investment Securities 12 Months or Longer | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 4,755 | 4,756 |
Unrealized Losses | -1,245 | -1,244 |
Equity securities | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 2,932 | ' |
Unrealized Losses | -68 | ' |
Equity securities | Investment Securities Less than 12 Months | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 2,932 | ' |
Unrealized Losses | -68 | ' |
Total impaired securities | Investment Securities Less than 12 Months | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 178,696 | 34,878 |
Unrealized Losses | -6,752 | -64 |
Total impaired securities | Investment Securities 12 Months or Longer | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 22,051 | 4,756 |
Unrealized Losses | -2,256 | -1,244 |
Total impaired securities | Total impaired securities | ' | ' |
Description of Securities | ' | ' |
Estimated Fair Value | 200,747 | 39,634 |
Unrealized Losses | ($9,008) | ($1,308) |
INVESTMENT_SECURITIES_Details_1
INVESTMENT SECURITIES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' |
Available-for-sale Securities, Estimated Fair Value | $279,479 | $285,815 |
Held-to-Maturity | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' |
Within one year, Amortized Cost | 2 | ' |
Within one year, Estimated Fair Value | 2 | ' |
Held-to-maturity securities, Amortized Cost (Carrying Amount) | 2 | ' |
Held-to-maturity securities, Estimated Fair Value | 2 | 6 |
Available-for-Sale | ' | ' |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Line Items] | ' | ' |
Within one year, Amortized Cost | 4,003 | ' |
Within one year, Estimated Fair Value | 4,101 | ' |
One to five years, Amortized Cost | 102,441 | ' |
One to five years, Estimated Fair Value | 104,057 | ' |
Five to ten years, Amortized Cost | 169,362 | ' |
Five to ten years, Estimated Fair Value | 162,670 | ' |
Beyond ten years, Amortized Cost | 7,002 | ' |
Beyond ten years, Estimated Fair Value | 5,719 | ' |
Available-for-sale Securities, Amortized Cost | 282,808 | ' |
Available-for-sale Securities, Estimated Fair Value | $276,547 | $282,702 |
INVESTMENT_SECURITIES_Detail_T
INVESTMENT SECURITIES (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net Investment Income [Line Items] | ' | ' | ' |
Net unrealized (losses) gains on available-for-sale securities | ($6,329,000) | $5,571,000 | ' |
Available for sale securities tax benefits | -2,595,000 | 2,284,000 | ' |
Gross realized gains on sales or calls of available for sale securities | 548,000 | 1,886,000 | 1,687,000 |
Gross realized losses on sales or calls of securities categorized as available for sale securities | ' | 9,000 | 10,000 |
Gross proceeds from sales or calls of available for sale securities | 20,215,000 | 133,047,000 | 101,940,000 |
Proceeds from maturities/calls of held-to-maturity securities | 4,000 | ' | ' |
Available-for-sale equity securities, amortized cost basis | 3,000,000 | ' | ' |
Other than equity securities with an amortized cost | 3,000,000 | ' | ' |
Other than equity securities with an fair value | 2,932,000 | ' | ' |
Financial instruments, owned and pledged as collateral, at fair value | $272,092,000 | $276,308,000 | ' |
Corporate debt securities | Investment Securities 12 Months or Longer | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' |
Number of corporate debt securities | 2 | ' | ' |
LOANS_Details
LOANS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Allowance for loan losses | ($9,301) | ($10,458) | ($12,656) | ($14,993) |
Loans, net | 499,943 | 481,753 | ' | ' |
Commercial | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Commercial | 47,526 | 46,078 | ' | ' |
Real estate - commercial | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Real estate - commercial | 326,631 | 295,630 | ' | ' |
Real estate - construction | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Real estate - construction | 27,472 | 23,003 | ' | ' |
Real estate - mortgage | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Real estate - mortgage | 63,120 | 74,353 | ' | ' |
Installment | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Installment | 5,376 | 6,689 | ' | ' |
Other | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Other | 39,311 | 45,941 | ' | ' |
Gross loans | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Gross Loans | 509,436 | 491,694 | ' | ' |
Deferred loan (fees) costs, net | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Deferred loan (fees) costs, net | -192 | 517 | ' | ' |
Allowance for loan losses | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Allowance for loan losses | -9,301 | -10,458 | ' | ' |
Total | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Loans, net | $499,943 | $481,753 | ' | ' |
LOANS_Details_1
LOANS (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commercial | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | $458 | $585 |
Unpaid Principal Balance | 481 | 586 |
With allocated allowance | ' | ' |
Recorded Investment | 240 | ' |
Unpaid Principal Balance | 240 | ' |
Related Allowance | 150 | ' |
Impaired loans | ' | ' |
Related Allowance | 150 | ' |
Real estate - commercial | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 4,193 | 2,778 |
Unpaid Principal Balance | 4,284 | 2,974 |
With allocated allowance | ' | ' |
Recorded Investment | 113 | 184 |
Unpaid Principal Balance | 113 | 217 |
Related Allowance | 28 | 171 |
Impaired loans | ' | ' |
Related Allowance | 28 | 171 |
Real estate - construction | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 435 | 1,210 |
Unpaid Principal Balance | 449 | 1,273 |
With allocated allowance | ' | ' |
Recorded Investment | ' | 161 |
Unpaid Principal Balance | ' | 161 |
Related Allowance | ' | 18 |
Impaired loans | ' | ' |
Related Allowance | ' | 18 |
Real estate - mortgage | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 919 | 684 |
Unpaid Principal Balance | 948 | 736 |
With allocated allowance | ' | ' |
Recorded Investment | 416 | ' |
Unpaid Principal Balance | 416 | ' |
Related Allowance | 50 | ' |
Impaired loans | ' | ' |
Related Allowance | 50 | ' |
Installment | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 96 | 122 |
Unpaid Principal Balance | 115 | 138 |
Other | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 374 | 111 |
Unpaid Principal Balance | 397 | 120 |
Total With No Allocated Allowance | ' | ' |
With no allocated allowance | ' | ' |
Recorded Investment | 6,475 | 5,490 |
Unpaid Principal Balance | 6,674 | 5,827 |
Total With Allocated Allowance | ' | ' |
With allocated allowance | ' | ' |
Recorded Investment | 769 | 345 |
Unpaid Principal Balance | 769 | 378 |
Related Allowance | 228 | 189 |
Impaired loans | ' | ' |
Related Allowance | 228 | 189 |
Total | ' | ' |
With allocated allowance | ' | ' |
Related Allowance | 228 | 189 |
Impaired loans | ' | ' |
Recorded Investment | 7,244 | 5,835 |
Unpaid Principal Balance | 7,443 | 6,205 |
Related Allowance | $228 | $189 |
LOANS_Details_2
LOANS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commercial | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | $960 | $941 | $2,056 |
Interest Income Recognized | ' | ' | ' |
Real estate - commercial | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 4,784 | 3,069 | 6,354 |
Interest Income Recognized | 77 | ' | ' |
Real estate - construction | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 458 | 1,673 | 9,453 |
Interest Income Recognized | 20 | ' | ' |
Real estate - mortgage | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 1,415 | 681 | 991 |
Interest Income Recognized | 52 | ' | ' |
Installment | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 127 | 139 | 110 |
Interest Income Recognized | 2 | ' | ' |
Other | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 388 | 122 | 91 |
Interest Income Recognized | ' | ' | ' |
Total | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Average Book Balance | 8,132 | 6,625 | 19,055 |
Interest Income Recognized | $151 | ' | ' |
LOANS_Details_3
LOANS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | $5,093 | $5,835 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 698 | 585 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Real estate - commercial | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 3,425 | 2,962 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Real estate construction | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 110 | 1,371 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Real estate - mortgage | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 417 | 684 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Installment | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 69 | 122 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
Other | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans | 374 | 111 |
Loans Past Due Over 90 Days Still Accruing | ' | ' |
LOANS_Details_4
LOANS (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Greater than 89 Days Past Due | ' | ' |
Commercial | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 46,587 | 45,473 |
30-89 Days Past Due | 241 | 20 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 698 | 585 |
Total Impaired Loans | 47,526 | 46,078 |
Real estate - commercial | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 322,773 | 292,505 |
30-89 Days Past Due | 433 | 163 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 3,425 | 2,962 |
Total Impaired Loans | 326,631 | 295,630 |
Real estate - construction | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 27,362 | 21,436 |
30-89 Days Past Due | ' | 196 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 110 | 1,371 |
Total Impaired Loans | 27,472 | 23,003 |
Real estate - mortgage | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 62,178 | 72,907 |
30-89 Days Past Due | 525 | 762 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 417 | 684 |
Total Impaired Loans | 63,120 | 74,353 |
Installment | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 5,273 | 6,529 |
30-89 Days Past Due | 34 | 38 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 69 | 122 |
Total Impaired Loans | 5,376 | 6,689 |
Other Loans | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 38,594 | 45,581 |
30-89 Days Past Due | 343 | 249 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 374 | 111 |
Total Impaired Loans | 39,311 | 45,941 |
Total | ' | ' |
Mortgage Loans on Real Estate [Line Items] | ' | ' |
Current | 502,767 | 484,431 |
30-89 Days Past Due | 1,576 | 1,428 |
Greater than 89 Days Past Due | ' | ' |
Nonaccrual | 5,093 | 5,835 |
Total Impaired Loans | $509,436 | $491,694 |
LOANS_Details_5
LOANS (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Contract | Contract | |
Accruing TDRs | Real estate - commercial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | 5 |
Pre-Modification Outstanding Recorded Investment | $435 | $1,350 |
Post-Modification Outstanding Recorded Investment | 435 | 1,350 |
Accruing TDRs | Real estate - construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | ' | 1 |
Pre-Modification Outstanding Recorded Investment | ' | 343 |
Post-Modification Outstanding Recorded Investment | ' | 343 |
Accruing TDRs | Real estate-mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 209 | 721 |
Post-Modification Outstanding Recorded Investment | 209 | 721 |
Non Accruing TDRs | Commercial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | 36 | 529 |
Post-Modification Outstanding Recorded Investment | 36 | 529 |
Non Accruing TDRs | Real estate - construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | 110 | 398 |
Post-Modification Outstanding Recorded Investment | 110 | 398 |
Non Accruing TDRs | Real estate-mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 1 | ' |
Pre-Modification Outstanding Recorded Investment | 113 | ' |
Post-Modification Outstanding Recorded Investment | 113 | ' |
Non Accruing TDRs | Installment | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | ' | 4 |
Pre-Modification Outstanding Recorded Investment | ' | 120 |
Post-Modification Outstanding Recorded Investment | ' | 120 |
Non Accruing TDRs | Other | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of contracts | 3 | 1 |
Pre-Modification Outstanding Recorded Investment | 210 | 25 |
Post-Modification Outstanding Recorded Investment | $210 | $25 |
LOANS_Details_6
LOANS (Details 6) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Contract | Contract |
Accruing TDRs | Real estate - commercial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 5 | 5 |
Rate Reduction | ' | $202 |
Maturity Extension | 195 | ' |
Rate Reduction and Maturity Extension | 686 | 1,148 |
Total | 881 | 1,350 |
Accruing TDRs | Real estate construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | 1 |
Rate Reduction | ' | ' |
Maturity Extension | 325 | 343 |
Rate Reduction and Maturity Extension | ' | ' |
Total | 325 | 343 |
Accruing TDRs | Real estate-mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 3 | 2 |
Rate Reduction | ' | ' |
Maturity Extension | 293 | 298 |
Rate Reduction and Maturity Extension | 625 | 423 |
Total | 918 | 721 |
Accruing TDRs | Installment | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | ' |
Rate Reduction | ' | ' |
Maturity Extension | ' | ' |
Rate Reduction and Maturity Extension | 27 | ' |
Total | 27 | ' |
Non Accruing TDRs | Commercial | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 2 | 1 |
Rate Reduction | ' | ' |
Maturity Extension | ' | ' |
Rate Reduction and Maturity Extension | 391 | 529 |
Total | 391 | 529 |
Non Accruing TDRs | Real estate construction | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | 2 |
Rate Reduction | ' | 327 |
Maturity Extension | 110 | 71 |
Rate Reduction and Maturity Extension | ' | ' |
Total | 110 | 398 |
Non Accruing TDRs | Real estate-mortgage | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 1 | ' |
Rate Reduction | ' | ' |
Maturity Extension | ' | ' |
Rate Reduction and Maturity Extension | 113 | ' |
Total | 113 | ' |
Non Accruing TDRs | Installment | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 2 | 4 |
Rate Reduction | ' | ' |
Maturity Extension | ' | ' |
Rate Reduction and Maturity Extension | 59 | 120 |
Total | 59 | 120 |
Non Accruing TDRs | Other | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of Contracts | 4 | 1 |
Rate Reduction | 104 | ' |
Maturity Extension | 60 | ' |
Rate Reduction and Maturity Extension | 68 | 25 |
Total | $232 | $25 |
LOANS_Details_7
LOANS (Details 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | $10,458 | $12,656 | $14,993 |
Charge-offs | -1,840 | -4,702 | -5,525 |
Recoveries | 683 | 404 | 538 |
Provisions for loan losses | ' | 2,100 | 2,650 |
Total ending allowance balance | 9,301 | 10,458 | 12,656 |
Commercial | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 843 | 1,333 | 1,517 |
Charge-offs | -208 | -480 | -928 |
Recoveries | 593 | 110 | 212 |
Provisions for loan losses | -352 | -120 | 532 |
Total ending allowance balance | 876 | 843 | 1,333 |
Real estate commercial | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 6,295 | 7,528 | 8,439 |
Charge-offs | -438 | -2,681 | -2,917 |
Recoveries | 46 | 63 | 108 |
Provisions for loan losses | -707 | 1,385 | 1,898 |
Total ending allowance balance | 5,196 | 6,295 | 7,528 |
Real estate construction | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 690 | 1,039 | 1,936 |
Charge-offs | -401 | -822 | -405 |
Recoveries | 6 | 80 | 10 |
Provisions for loan losses | 315 | 393 | -502 |
Total ending allowance balance | 610 | 690 | 1,039 |
Real estate mortgage | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 982 | 935 | 956 |
Charge-offs | -420 | -353 | -440 |
Recoveries | 11 | 39 | 2 |
Provisions for loan losses | 269 | 361 | 417 |
Total ending allowance balance | 842 | 982 | 935 |
Installment | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 98 | 185 | 339 |
Charge-offs | -84 | -221 | -345 |
Recoveries | 27 | 103 | 206 |
Provisions for loan losses | 90 | 31 | -15 |
Total ending allowance balance | 131 | 98 | 185 |
Other | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 721 | 736 | 666 |
Charge-offs | -289 | -145 | -490 |
Recoveries | ' | 9 | ' |
Provisions for loan losses | 400 | 121 | 560 |
Total ending allowance balance | 832 | 721 | 736 |
Unallocated | ' | ' | ' |
Allowance for Loan Losses | ' | ' | ' |
Beginning balance | 829 | 900 | 1,140 |
Charge-offs | ' | ' | ' |
Recoveries | ' | ' | ' |
Provisions for loan losses | -15 | -71 | -240 |
Total ending allowance balance | $814 | $829 | $900 |
LOANS_Details_8
LOANS (Details 8) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | $228 | $189 | $1,610 | ' |
Collectively evaluated for impairment | 9,073 | 10,269 | 11,046 | ' |
Total ending allowance balance | 9,301 | 10,458 | 12,656 | 14,993 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 7,244 | 5,835 | 18,359 | ' |
Loans collectively evaluated for impairment | 502,192 | 485,859 | 438,160 | ' |
Total ending loans balance | 509,436 | 491,694 | 456,519 | ' |
Commercial | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | 150 | ' | 450 | ' |
Collectively evaluated for impairment | 726 | 843 | 883 | ' |
Total ending allowance balance | 876 | 843 | 1,333 | 1,517 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 698 | 585 | 1,788 | ' |
Loans collectively evaluated for impairment | 46,828 | 45,493 | 44,372 | ' |
Total ending loans balance | 47,526 | 46,078 | 46,160 | ' |
Real estate commercial | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | 28 | 171 | 606 | ' |
Collectively evaluated for impairment | 5,168 | 6,124 | 6,922 | ' |
Total ending allowance balance | 5,196 | 6,295 | 7,528 | 8,439 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 4,306 | 2,962 | 5,998 | ' |
Loans collectively evaluated for impairment | 322,325 | 292,668 | 270,646 | ' |
Total ending loans balance | 326,631 | 295,630 | 276,644 | ' |
Real estate construction | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | ' | 18 | 504 | ' |
Collectively evaluated for impairment | 610 | 672 | 535 | ' |
Total ending allowance balance | 610 | 690 | 1,039 | 1,936 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 435 | 1,371 | 9,440 | ' |
Loans collectively evaluated for impairment | 27,037 | 21,632 | 18,023 | ' |
Total ending loans balance | 27,472 | 23,003 | 27,463 | ' |
Real estate mortgage | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | 50 | ' | 37 | ' |
Collectively evaluated for impairment | 792 | 982 | 898 | ' |
Total ending allowance balance | 842 | 982 | 935 | 956 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 1,335 | 684 | 938 | ' |
Loans collectively evaluated for impairment | 61,785 | 73,669 | 46,424 | ' |
Total ending loans balance | 63,120 | 74,353 | 47,362 | ' |
Installment | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | 13 | ' |
Collectively evaluated for impairment | 131 | 98 | 172 | ' |
Total ending allowance balance | 131 | 98 | 185 | 339 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 96 | 122 | 107 | ' |
Loans collectively evaluated for impairment | 5,280 | 6,567 | 10,818 | ' |
Total ending loans balance | 5,376 | 6,689 | 10,925 | ' |
Other | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | ' | ' |
Collectively evaluated for impairment | 832 | 721 | 736 | ' |
Total ending allowance balance | 832 | 721 | 736 | 666 |
Loans: | ' | ' | ' | ' |
Loans individually evaluated for impairment | 374 | 111 | 88 | ' |
Loans collectively evaluated for impairment | 38,937 | 45,830 | 47,877 | ' |
Total ending loans balance | 39,311 | 45,941 | 47,965 | ' |
Unallocated | ' | ' | ' | ' |
Ending allowance balance attributable to loans: | ' | ' | ' | ' |
Individually evaluated for impairment | ' | ' | ' | ' |
Collectively evaluated for impairment | 814 | 829 | 900 | ' |
Total ending allowance balance | $814 | $829 | $900 | $1,140 |
LOANS_Details_9
LOANS (Details 9) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Pass | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | $45,446 | $44,486 |
Real estate - commercial | 309,828 | 278,834 |
Real estate - construction | 27,101 | 21,386 |
Real estate - mortgage | 61,200 | 71,973 |
Installment | 5,278 | 6,562 |
Other | 38,611 | 45,658 |
Total | 487,464 | 468,899 |
Special Mention | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 1,107 | 129 |
Real estate - commercial | 6,213 | ' |
Real estate - construction | 261 | ' |
Real estate - mortgage | ' | ' |
Installment | ' | ' |
Other | ' | ' |
Total | 7,581 | 129 |
Substandard | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 973 | 1,463 |
Real estate - commercial | 10,590 | 16,796 |
Real estate - construction | 110 | 1,617 |
Real estate - mortgage | 1,920 | 2,380 |
Installment | 98 | 127 |
Other | 700 | 283 |
Total | 14,391 | 22,666 |
Total | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' |
Commercial | 47,526 | 46,078 |
Real estate - commercial | 326,631 | 295,630 |
Real estate - construction | 27,472 | 23,003 |
Real estate - mortgage | 63,120 | 74,353 |
Installment | 5,376 | 6,689 |
Other | 39,311 | 45,941 |
Total | $509,436 | $491,694 |
LOANS_Detail_Textuals
LOANS (Detail Textuals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans Receivable, Net [Abstract] | ' | ' | ' |
Salaries and employee benefits | $1,048 | $1,236 | $800 |
Loans pledged as collateral | 91,447 | 116,929 | ' |
Interest on nonaccrual loans not collected | 224 | 575 | 1,039 |
Accruing TDRs | 2,151 | 2,414 | ' |
Non-accrual TDRs | 905 | 1,072 | ' |
TDR's post modification specific reserves allocated to customers | 78 | ' | ' |
Allowance for off-balance sheet commitments | $146 | $143 | ' |
OTHER_REAL_ESTATE_OWNED_Detail
OTHER REAL ESTATE OWNED (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Real Estate [Abstract] | ' | ' | ' |
Balance, beginning of year | $22,423 | $20,106 | $25,784 |
Loans transferred to other real estate owned | 818 | 12,239 | 10,454 |
Premises transferred to other real estate owned | 627 | ' | ' |
Sales of other real estate owned | -17,204 | -6,889 | -12,036 |
Loss on sale or write-down of other real estate owned | -3,210 | -3,033 | -4,096 |
Balance, end of year | $3,454 | $22,423 | $20,106 |
OTHER_REAL_ESTATE_OWNED_Detail1
OTHER REAL ESTATE OWNED (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Real Estate [Abstract] | ' | ' | ' |
Operating expenses | $329 | $523 | $708 |
Provision for unrealized losses | 3,057 | 2,638 | 4,002 |
Net loss on sales | 153 | 395 | 94 |
Total other real estate owned expense | $3,539 | $3,556 | $4,804 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | $279,479 | $285,815 |
Obligations of U.S. government sponsored agencies | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 18,198 | 21,118 |
Obligations of U.S. government sponsored agencies | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 18,198 | 21,118 |
Obligations of state and political subdivisions | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 5,317 | 11,197 |
Obligations of state and political subdivisions | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 5,317 | 11,197 |
Obligations of state and political subdivisions | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 5,317 | 11,197 |
Government sponsored agency mortgage-backed securities | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 248,277 | 245,631 |
Government sponsored agency mortgage-backed securities | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 248,277 | 245,631 |
Corporate debt securities | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 4,755 | 4,756 |
Corporate debt securities | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 4,755 | 4,756 |
Corporate debt securities | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 4,755 | 4,756 |
Equity securities | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 2,932 | 3,113 |
Equity securities | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 2,932 | 3,113 |
Equity securities | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 2,932 | 3,113 |
Total | Level 2 | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | 279,479 | 285,815 |
Total | Total | ' | ' |
Available-for-sale securities: | ' | ' |
Available-for-sale Securities | $279,479 | $285,815 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | $4,032 | $11,058 |
Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 4,032 | 11,058 |
Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 1,668 | 3,872 |
Commercial | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 157 | 585 |
Commercial | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 157 | 585 |
Commercial | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 63 | 126 |
Real estate - commercial | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 593 | 2,222 |
Real estate - commercial | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 593 | 2,222 |
Real estate - commercial | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 239 | 1,313 |
Real estate - construction | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 110 | 143 |
Real estate - construction | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 110 | 143 |
Real estate - construction | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 71 | 19 |
Real estate - mortgage | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 291 | 464 |
Real estate - mortgage | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 291 | 464 |
Real estate - mortgage | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 42 | 29 |
Installment | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | 75 |
Installment | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | 75 |
Installment | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | 27 |
Other | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 164 | 25 |
Other | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 164 | 25 |
Other | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 71 | 24 |
OREO | Real estate - commercial | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 570 | ' |
OREO | Real estate - commercial | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 570 | ' |
OREO | Real estate - commercial | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 57 | ' |
OREO | Real estate - construction | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 2,147 | 7,360 |
OREO | Real estate - construction | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 2,147 | 7,360 |
OREO | Real estate - construction | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | 1,125 | 2,194 |
OREO | Real estate - mortgage | Fair Value | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | 184 |
OREO | Real estate - mortgage | Level 3 | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | 184 |
OREO | Real estate - mortgage | Total Losses | ' | ' |
Impaired loans: | ' | ' |
Fair value on nonrecurring basis | ' | $140 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commercial | ' | ' |
Impaired loans: | ' | ' |
Fair Value | $157 | $585 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
Real estate - commercial | ' | ' |
Impaired loans: | ' | ' |
Fair Value | 593 | 2,222 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
Real estate - construction | ' | ' |
Impaired loans: | ' | ' |
Fair Value | 110 | 143 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
Real estate - mortgage | ' | ' |
Impaired loans: | ' | ' |
Fair Value | 291 | 464 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
Other | ' | ' |
Impaired loans: | ' | ' |
Fair Value | 164 | 25 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
Weighted Average | Commercial | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '6% to 11% (9%) | '6% to 11% (9%) |
Weighted Average | Real estate - commercial | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '6% to 11% (9%) | '6% to 11% (9%) |
Weighted Average | Real estate - construction | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '2% to 3% (3%) | '2% to 3% (3%) |
Weighted Average | Real estate - mortgage | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '6% to 11% (9%) | '6% to 11% (9%) |
Weighted Average | Other | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '6% to 11% (9%) | '6% to 11% (9%) |
OREO | Real estate - commercial | ' | ' |
Impaired loans: | ' | ' |
Fair Value | 570 | ' |
Valuation Techniques | 'Sales comparison approach | ' |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | ' |
OREO | Real estate - mortgage | ' | ' |
Impaired loans: | ' | ' |
Fair Value | ' | 184 |
Valuation Techniques | ' | 'Sales comparison approach |
Unobservable Inputs | ' | 'Adjustment for differences between the comparable sales |
OREO | Real estate - construction | ' | ' |
Impaired loans: | ' | ' |
Fair Value | $2,147 | $7,360 |
Valuation Techniques | 'Sales comparison approach | 'Sales comparison approach |
Unobservable Inputs | 'Adjustment for differences between the comparable sales | 'Adjustment for differences between the comparable sales |
OREO | Weighted Average | Real estate - commercial | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '6% to 11% (9%) | ' |
OREO | Weighted Average | Real estate - mortgage | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | ' | '6% to 11% (9%) |
OREO | Weighted Average | Real estate - construction | ' | ' |
Impaired loans: | ' | ' |
Range (Weighted Average) | '0% to 6% (6%) | '0% to 6% (6%) |
FAIR_VALUE_MEASUREMENTS_Detail3
FAIR VALUE MEASUREMENTS (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Securities: | ' | ' |
Available-for-sale | $279,479 | $285,815 |
Carrying Amount | ' | ' |
FINANCIAL ASSETS | ' | ' |
Cash and due from banks | 19,348 | 22,654 |
Federal funds sold | 38,135 | 15,865 |
Time deposits at other financial institutions | 2,226 | 2,219 |
FHLB, FRB and other securities | 8,402 | 8,313 |
Securities: | ' | ' |
Available-for-sale | 279,479 | 285,815 |
Held-to-maturity | 2 | 6 |
Loans | 499,943 | 481,753 |
Accrued interest receivable | 2,124 | 2,217 |
Deposits: | ' | ' |
Nonmaturity deposits | 638,112 | 596,204 |
Time deposits | 149,737 | 172,376 |
Subordinated debentures | 21,651 | 21,651 |
Accrued interest payable | 108 | 136 |
Level 1 | ' | ' |
FINANCIAL ASSETS | ' | ' |
Cash and due from banks | 19,348 | 22,654 |
Federal funds sold | 38,135 | 15,865 |
Time deposits at other financial institutions | ' | ' |
FHLB, FRB and other securities | ' | ' |
Securities: | ' | ' |
Available-for-sale | ' | ' |
Held-to-maturity | ' | ' |
Loans | ' | ' |
Accrued interest receivable | ' | ' |
Deposits: | ' | ' |
Nonmaturity deposits | 638,112 | 596,204 |
Time deposits | ' | ' |
Subordinated debentures | ' | ' |
Accrued interest payable | 2 | 2 |
Level 2 | ' | ' |
FINANCIAL ASSETS | ' | ' |
Cash and due from banks | ' | ' |
Federal funds sold | ' | ' |
Time deposits at other financial institutions | 2,226 | 2,219 |
FHLB, FRB and other securities | ' | ' |
Securities: | ' | ' |
Available-for-sale | 279,479 | 285,815 |
Held-to-maturity | 2 | 6 |
Loans | ' | ' |
Accrued interest receivable | 692 | 767 |
Deposits: | ' | ' |
Nonmaturity deposits | ' | ' |
Time deposits | 149,899 | 172,805 |
Subordinated debentures | ' | ' |
Accrued interest payable | 29 | 54 |
Level 3 | ' | ' |
FINANCIAL ASSETS | ' | ' |
Cash and due from banks | ' | ' |
Federal funds sold | ' | ' |
Time deposits at other financial institutions | ' | ' |
FHLB, FRB and other securities | ' | ' |
Securities: | ' | ' |
Available-for-sale | ' | ' |
Held-to-maturity | ' | ' |
Loans | 510,611 | 500,689 |
Accrued interest receivable | 1,432 | 1,450 |
Deposits: | ' | ' |
Nonmaturity deposits | ' | ' |
Time deposits | ' | ' |
Subordinated debentures | 7,702 | 9,018 |
Accrued interest payable | 77 | 80 |
Total | ' | ' |
FINANCIAL ASSETS | ' | ' |
Cash and due from banks | 19,348 | 22,654 |
Federal funds sold | 38,135 | 15,865 |
Time deposits at other financial institutions | 2,226 | 2,219 |
Securities: | ' | ' |
Available-for-sale | 279,479 | 285,815 |
Held-to-maturity | 2 | 6 |
Loans | 510,611 | 500,689 |
Accrued interest receivable | 2,124 | 2,217 |
Deposits: | ' | ' |
Nonmaturity deposits | 638,112 | 596,204 |
Time deposits | 149,899 | 172,805 |
Subordinated debentures | 7,702 | 9,018 |
Accrued interest payable | $108 | $136 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Land | $2,207 | $2,620 |
Building and building improvements | 8,696 | 9,341 |
Furniture, fixtures and equipment | 12,716 | 12,599 |
Leasehold improvements | 2,805 | 2,791 |
Construction in process | 26 | 5 |
Total premises and equipment | 26,450 | 27,356 |
Less: Accumulated depreciation | -18,617 | -18,175 |
Premises and equipment, net | $7,833 | $9,181 |
PREMISES_AND_EQUIPMENT_Details1
PREMISES AND EQUIPMENT (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Property, Plant and Equipment [Abstract] | ' |
2014 | $1,047 |
2015 | 793 |
2016 | 469 |
2017 | 299 |
2018 | 226 |
Thereafter | 910 |
Total | $3,744 |
PREMISES_AND_EQUIPMENT_Detail_
PREMISES AND EQUIPMENT (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization included in occupancy and equipment expense | $1,019,000 | $1,080,000 | $1,197,000 |
Rental expenses | $1,107,000 | $1,109,000 | $1,252,000 |
Minimum | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Renewal options of operating lease | '1 year | ' | ' |
Maximum | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Renewal options of operating lease | '25 years | ' | ' |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Deferred taxes, net | $15,309 | $12,346 |
Federal and state tax receivable | 1,314 | 444 |
Prepaid expenses | 767 | 879 |
Mortgage and SBA servicing asset | 1,362 | 1,139 |
Other | 748 | 789 |
Total other assets | $19,500 | $15,597 |
OTHER_ASSETS_Detail_Textuals
OTHER ASSETS (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Guarantor Obligations [Line Items] | ' | ' | ' |
Originated mortgage and SBA servicing assets | $706,000 | $628,000 | $421,000 |
Amortization of mortgage and SBA servicing assets | 483,000 | 343,000 | 275,000 |
Fair value of discount rates | 1.25% | 1.25% | ' |
Minimum | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' |
Weighted average default rate | 9.25% | 9.25% | ' |
Prepayment speeds range | 144 | 318 | ' |
Maximum | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' |
Weighted average default rate | 12.75% | 12.75% | ' |
Prepayment speeds range | 320 | 512 | ' |
Servicing receivable guaranteed by small business administration | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' |
Servicing asset | $188,484,000 | $159,010,000 | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Noninterest-bearing demand | $184,971 | $177,855 |
Interest-bearing demand | 202,508 | 185,315 |
Savings and money market | 250,633 | 233,034 |
Time certificates | 149,737 | 172,376 |
Total deposits | $787,849 | $768,580 |
DEPOSITS_Details_1
DEPOSITS (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Deposits [Abstract] | ' |
2014 | $125,808 |
2015 | 15,498 |
2016 | 6,021 |
2017 | 2,410 |
Total | $149,737 |
DEPOSITS_Detail_Textuals
DEPOSITS (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deposits [Abstract] | ' | ' | ' |
Time deposits, $100,000 or more | $71,218,000 | $82,036,000 | ' |
Interest expense incurred on certificates, of deposit $100,000 or more | $399,000 | $805,000 | $1,245,000 |
LINES_OF_CREDIT_Details
LINES OF CREDIT (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Secured fed funds | ' |
Secured: | ' |
Lines of credit amount | $10,000 |
Lines of credit expiration | '6/30/2014 |
First deeds of trust on eligible 1-4 unit residential loans | ' |
Secured: | ' |
Lines of credit amount | 70,932 |
Lines of credit expiration | 'Monthly |
Securities backed credit program | ' |
Secured: | ' |
Lines of credit amount | 189,757 |
Lines of credit expiration | 'Monthly |
Discount -securities | ' |
Secured: | ' |
Lines of credit amount | $2,131 |
Lines of credit expiration | 'Monthly |
SUBORDINATED_DEBENTURES_Detail
SUBORDINATED DEBENTURES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Subordinated Borrowing [Line Items] | ' | ' |
North Valley Capital Trust's - Amount | $21,651 | $21,651 |
North Valley Capital Trust II | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' |
North Valley Capital Trust's - Date Issued | '4/10/03 | '4/10/03 |
North Valley Capital Trust's - Maturity | 24-Apr-33 | 24-Apr-33 |
North Valley Capital Trust's - Fixed or Variable Rate | 'Variable | 'Variable |
North Valley Capital Trust's - Current Variable Rate | 3.49% | 3.49% |
North Valley Capital Trust's - Rate Index | 'LIBOR + 3.25% | 'LIBOR + 3.25% |
North Valley Capital Trust's - Redemption Date | '4/24/08 | '4/24/08 |
North Valley Capital Trust's - Amount | 6,186 | 6,186 |
North Valley Capital Trust III | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' |
North Valley Capital Trust's - Date Issued | '5/5/04 | '5/5/04 |
North Valley Capital Trust's - Maturity | 24-Apr-34 | 24-Apr-34 |
North Valley Capital Trust's - Fixed or Variable Rate | 'Variable | 'Variable |
North Valley Capital Trust's - Current Variable Rate | 3.04% | 3.04% |
North Valley Capital Trust's - Rate Index | 'LIBOR + 2.80% | 'LIBOR + 2.80% |
North Valley Capital Trust's - Redemption Date | '7/23/09 | '7/23/09 |
North Valley Capital Trust's - Amount | 5,155 | 5,155 |
North Valley Capital Statutory Trust IV | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' |
North Valley Capital Trust's - Date Issued | '12/29/05 | '12/29/05 |
North Valley Capital Trust's - Maturity | 15-Mar-36 | 15-Mar-36 |
North Valley Capital Trust's - Fixed or Variable Rate | 'Variable | 'Variable |
North Valley Capital Trust's - Current Variable Rate | 1.57% | 1.57% |
North Valley Capital Trust's - Rate Index | 'LIBOR + 1.33% | 'LIBOR + 1.33% |
North Valley Capital Trust's - Redemption Date | '3/15/11 | '3/15/11 |
North Valley Capital Trust's - Amount | $10,310 | $10,310 |
SUBORDINATED_DEBENTURES_Detail1
SUBORDINATED DEBENTURES (Detail Textuals) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 9-May-12 | |
2033 Debentures | 2034 Debentures | 2036 Debentures | North Valley Capital Trust I | ||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of trust preferred securities | $21,000,000 | ' | ' | ' | ' | ' | ' |
Junior subordinated notes | 22,000,000 | ' | ' | ' | ' | ' | ' |
Payment on Accrued Interest | ' | ' | ' | ' | ' | ' | 5,854,000 |
Repayments of subordinated debt | ' | 10,310,000 | ' | ' | ' | ' | 10,310,000 |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | 10.25% |
Subordinated Borrowing, Interest Rate | ' | ' | ' | 3.49% | 3.04% | 1.57% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' | ' | 3.25% | 2.80% | 1.33% | ' |
Debentures, Accrued Interest Payable | 77,000 | 79,000 | ' | ' | ' | ' | ' |
Tier one risk based capital | 21,000,000 | 21,000,000 | ' | ' | ' | ' | ' |
Deferred Costs, Current | 0 | 6,000 | ' | ' | ' | ' | ' |
Other Deferred Cost, Amortization Expense | $6,000 | $20,000 | $42,000 | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax (benefit) provision: | ' | ' | ' |
Federal | ($75) | ($99) | $63 |
State | -15 | 117 | 46 |
Total | -90 | 18 | 109 |
Deferred tax provision (benefit): | ' | ' | ' |
Federal | 1,472 | 2,715 | 695 |
State | 212 | -200 | -269 |
Impact of valuation allowance | ' | -4,277 | -223 |
Total | 1,684 | -1,762 | 203 |
Total provision (benefit) for income taxes | $1,594 | ($1,744) | $312 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes net of Federal income tax benefit | 2.50% | -1.20% | -4.30% |
Tax exempt income | -2.50% | -4.00% | -6.50% |
Impact of valuation allowance | ' | -61.10% | -6.60% |
Increase in reserve for uncertain tax positions | ' | ' | 1.20% |
Other | -4.40% | -7.10% | -9.50% |
Effective tax (benefit) rate | 30.60% | -38.40% | 9.30% |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $4,490 | $5,252 |
Accrued pension obligation | 3,573 | 3,070 |
Underfunded pension obligation | 893 | 1,125 |
Deferred compensation | 811 | 755 |
Unrealized loss on available-for-sale securities | 2,595 | ' |
Discount on acquired loans | ' | 14 |
Stock based compensation | 166 | 181 |
Tax credits | 2,634 | 2,092 |
Net operating loss | 4,501 | 4,109 |
Capital loss | 26 | 489 |
Other real estate owned | 684 | 2,597 |
Other | 526 | 864 |
Total deferred tax assets | 20,899 | 20,548 |
Deferred tax liabilities: | ' | ' |
Tax depreciation in excess of book depreciation | 1,069 | 1,149 |
FHLB stock dividend | 410 | 410 |
Deferred loan fees and costs | 894 | 986 |
Originated mortgage servicing rights | 463 | 412 |
Core deposit intangibles | 50 | 117 |
Unrealized gain on available-for-sale securities | ' | 2,284 |
Market to market adjustment | ' | 28 |
California franchise tax | 2,538 | 2,612 |
Other | 166 | 204 |
Total deferred tax liabilities | 5,590 | 8,202 |
Net deferred tax asset | $15,309 | $12,346 |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Beginning balance | $519 | $519 |
Additions based on tax positions related to the current year | ' | ' |
Additions for tax positions of prior years | ' | ' |
Reductions for tax positions of prior years | ' | ' |
Settlements | ' | ' |
Ending balance | $519 | $519 |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Current and deferred tax (benefit) provision | ' | ' | $1,594,000 | ($1,744,000) | $312,000 | ' |
Deferred tax asset valuation allowance | 4,277,000 | 223,000 | ' | ' | ' | 4,500,000 |
Unrecognized tax benefits | ' | 519,000 | 519,000 | 519,000 | 519,000 | ' |
Payment of interest and penalties accrued | ' | ' | 86,000 | 42,000 | ' | ' |
Federal | ' | ' | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | 4,627,000 | ' | ' | ' |
State | ' | ' | ' | ' | ' | ' |
Schedule Of Income Taxes [Line Items] | ' | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | ' | $26,586,000 | ' | ' | ' |
PENSION_AND_OTHER_BENEFIT_PLAN2
PENSION AND OTHER BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in projected benefit obligation (PBO) | ' | ' | ' |
Benefit obligation at the beginning of the year | $9,443 | $7,397 | ' |
Service cost | 683 | 602 | 549 |
Interest cost | 372 | 334 | 333 |
Employer contributions | 208 | 172 | 69 |
Benefit payments | -250 | -250 | ' |
Actuarial loss | -275 | 1,360 | ' |
Plan amendments | ' | ' | ' |
Projected benefit obligation at end of year | 9,973 | 9,443 | 7,397 |
Accumulated benefit obligation at end of year | 7,639 | 7,031 | ' |
Funded status | -9,973 | -9,443 | ' |
Amounts recognized in statements of financial position | ' | ' | ' |
Current liability | -300 | -278 | ' |
Noncurrent liability | -9,673 | -9,165 | ' |
Net amount recognized | -9,973 | -9,443 | ' |
Amounts recognized in accumulated other comprehensive income | ' | ' | ' |
Prior service cost | 305 | 403 | ' |
Net loss | 1,872 | 2,342 | ' |
Net amount recognized | 2,177 | 2,745 | ' |
Total amount recognized | -7,796 | -6,698 | ' |
SERPA | ' | ' | ' |
Change in projected benefit obligation (PBO) | ' | ' | ' |
Employer contributions | 250 | 250 | ' |
Benefit payments | -250 | -250 | ' |
Fair value of plan assets at end of year | ' | ' | ' |
PENSION_AND_OTHER_BENEFIT_PLAN3
PENSION AND OTHER BENEFIT PLANS (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assumptions used to determine benefit obligations as of the end of fiscal year | ' | ' | ' |
Measurement Date | '12/31/2013 | '12/31/2012 | '12/31/2011 |
Discount rate | 4.75% | 4.00% | 4.60% |
Expected return on assets | ' | ' | ' |
Rate of compensation increase | 8.00% | 8.00% | 8.00% |
PENSION_AND_OTHER_BENEFIT_PLAN4
PENSION AND OTHER BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of net periodic benefits cost | ' | ' | ' |
Service cost | $683 | $602 | $549 |
Interest cost | 372 | 334 | 333 |
Amortization of prior service cost | 98 | 98 | 98 |
Amortization of actuarial loss | 195 | 40 | 10 |
Net periodic benefit cost | 1,348 | 1,074 | 990 |
Other comprehensive (income) loss | -568 | 1,222 | 748 |
Amounts included in accumulated other comprehensive income expected to be recognized during the next fiscal year | ' | ' | ' |
Prior service cost | 98 | 98 | 98 |
Actuarial loss | $142 | $195 | $39 |
PENSION_AND_OTHER_BENEFIT_PLAN5
PENSION AND OTHER BENEFIT PLANS (Details 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assumptions used in computing net periodic benefit cost | ' | ' | ' |
Measurement Date | '12/31/2013 | '12/31/2012 | '12/31/2011 |
Discount rate | 4.75% | 4.00% | 4.60% |
Expected return on assets | ' | ' | ' |
Rate of compensation increase | 8.00% | 8.00% | 8.00% |
PENSION_AND_OTHER_BENEFIT_PLAN6
PENSION AND OTHER BENEFIT PLANS (Details 4) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | ' |
2014 | $300 |
2015 | 346 |
2016 | 2,402 |
2017 | 378 |
2018 | 461 |
2019 - 2021 | $6,997 |
PENSION_AND_OTHER_BENEFIT_PLAN7
PENSION AND OTHER BENEFIT PLANS (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Multiemployer Plans [Line Items] | ' | ' | ' |
Employee stock ownership plan (ESOP), cash contributions to ESOP | $80,000 | $80,000 | $40,000 |
Employee stock ownership plan (ESOP) (in shares) | 48,794 | 47,445 | ' |
Defined benefit plan, contributions by employer | 208,000 | 172,000 | 69,000 |
Deferred compensation obligation | 1,770,000 | 1,697,000 | ' |
Cash surrender | 37,209,000 | 36,045,000 | ' |
Accrued pension obligation | 9,973,000 | 9,443,000 | ' |
Pension expense expected to be accrued in next twelve months | 1,382,000 | ' | ' |
Nonqualified executive deferred compensation plan | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Interest cost | $135,000 | $132,000 | $141,000 |
401(k) plan | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' |
Description of Defined Contribution Pension and Other Postretirement Plans | 'Company maintains a 401(k) plan covering employees who have completed 1,000 hours of service during a 12-month period and are age 21 or older. Voluntary employee contributions are partially matched by the Company. The Company made contributions to the plan of $208,000, $172,000 and $69,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' |
Outstanding, Options | 354,710 | 248,822 | 184,070 | 152,095 |
Outstanding, Weighted Average Exercise Price | $24.55 | $29.40 | $38.55 | $51.02 |
Outstanding, Weighted Average Remaining Contractual Term | '7 years | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value (in dollars) | $1,403 | ' | ' | ' |
Granted, Options | 114,234 | 77,908 | 66,000 | ' |
Granted, Weighted Average Exercise Price | $16.80 | $11.13 | $10.38 | ' |
Exercised, Options | ' | ' | ' | ' |
Exercised, Weighted Average Exercise Price | ' | ' | ' | ' |
Expired or canceled, Options | -8,346 | -13,156 | -34,025 | ' |
Expired or canceled, Weighted Average Exercise Price | $63.32 | $49.10 | $39.66 | ' |
Fully vested and exercisable at December 31, 2013, Options | 138,607 | ' | ' | ' |
Fully vested and exercisable at December 31, 2013, Weighted Average Exercise Price | $40.97 | ' | ' | ' |
Fully vested and exercisable at December 31, 2013, Weighted Average Remaining Contractual Term | '5 years | ' | ' | ' |
Fully vested and exercisable at December 31, 2013, Aggregate Intrinsic Value (in dollars) | 345 | ' | ' | ' |
Options expected to vest at December 31, 2013, Options | 216,103 | ' | ' | ' |
Options expected to vest at December 31, 2013, Weighted Average Exercise Price | $14.01 | ' | ' | ' |
Options expected to vest at December 31, 2013, Weighted Average Remaining Contractual Term | '9 years | ' | ' | ' |
Options expected to vest at December 31, 2013, Aggregate Intrinsic Value (in dollars) | $1,059 | ' | ' | ' |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Exercise Price Range $0.00 to $12.38 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '0-12.38 |
Options Outstanding | 140,408 |
Average Remaining Contractual Life (in years) | '7 years 10 months 24 days |
Average Exercise Price of Options Outstanding | $10.77 |
Options Exercisable | 41,079 |
Average Exercise Price of Options Exercisable | $10.65 |
Exercise Price Range $12.38 to $24.75 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '12.38-24.75 |
Options Outstanding | 162,372 |
Average Remaining Contractual Life (in years) | '7 years 10 months 24 days |
Average Exercise Price of Options Outstanding | $18.64 |
Options Exercisable | 45,598 |
Average Exercise Price of Options Exercisable | $23.54 |
Exercise Price Range $61.88 to $74.25 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '61.88-74.25 |
Options Outstanding | 22,229 |
Average Remaining Contractual Life (in years) | '4 years 26 days |
Average Exercise Price of Options Outstanding | $65.05 |
Options Exercisable | 22,229 |
Average Exercise Price of Options Exercisable | $65.05 |
Exercise Price Range $74.25 to $86.63 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '74.25-86.63 |
Options Outstanding | 10,012 |
Average Remaining Contractual Life (in years) | '1 year 1 month 24 days |
Average Exercise Price of Options Outstanding | $81 |
Options Exercisable | 10,012 |
Average Exercise Price of Options Exercisable | $81 |
Exercise Price Range $86.63 to $99.00 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '86.63-99.00 |
Options Outstanding | 5,514 |
Average Remaining Contractual Life (in years) | '2 years 7 days |
Average Exercise Price of Options Outstanding | $89.60 |
Options Exercisable | 5,514 |
Average Exercise Price of Options Exercisable | $89.60 |
Exercise Price Range $99.00 to $111.38 | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices | '99.00-111.38 |
Options Outstanding | 14,175 |
Average Remaining Contractual Life (in years) | '2 years 4 months 21 days |
Average Exercise Price of Options Outstanding | $99.98 |
Options Exercisable | 14,175 |
Average Exercise Price of Options Exercisable | $99.98 |
STOCKBASED_COMPENSATION_Detail2
STOCK-BASED COMPENSATION (Detail Textuals) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jul. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock award available annually to each director for retainer | 180 | 180 | ' | 180 | 180 |
Retainers shares awarded to directors | 1,440 | 1,440 | 1,260 | ' | ' |
Common stock available for future grants to directors and employees | 601,925 | ' | ' | ' | ' |
Compensation cost related fair value of shares (in dollars per share) | $9.53 | $6.28 | $6.07 | ' | ' |
Compensation expense | $432,000 | $210,000 | $157,000 | ' | ' |
Share-based compensation arrangement by share-based payment award, purchase price of common stock, percent | 85.00% | ' | ' | ' | ' |
Options exercised | '10 years | ' | ' | ' | ' |
Vesting period | '5 years | ' | ' | ' | ' |
Fair value of options that vested | 405,000 | 191,000 | 144,000 | ' | ' |
Unrecognized compensation cost related to stock-based awards granted to employees | 1,404,000 | ' | ' | ' | ' |
Weighted average period (in years) | '3 years 8 months 12 days | ' | ' | ' | ' |
Director Grant | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Compensation cost related fair value of shares (in dollars per share) | $18.84 | $13.10 | $10.40 | ' | ' |
Compensation expense | $27,000 | $19,000 | $13,000 | ' | ' |
Stock Incentive Plan A | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Common stock available for future grants to directors and employees | 241,635 | ' | ' | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Detail Textuals) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments And Contingencies [Line Items] | ' | ' |
Letters of credit outstanding amount | 4,557,000 | 4,713,000 |
Reserve for unfunded commitments | 146,000 | 143,000 |
Collateralized Debt Obligations | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' |
Concentration exists in real estate-related loans | 82.00% | 80.00% |
Commercial | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' |
Line of credit facility, remaining borrowing capacity | 38,683,000 | 47,350,000 |
Percentage of undisbursed loan commitments associated with variable rate loans | 87.00% | ' |
Consumer lines of credit and real estate loans | ' | ' |
Commitments And Contingencies [Line Items] | ' | ' |
Line of credit facility, remaining borrowing capacity | 35,264,000 | 31,925,000 |
Percentage of undisbursed loan commitments associated with variable rate loans | 87.00% | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transactions [Abstract] | ' | ' |
Beginning balance | $4,689 | $4,681 |
Borrowings | 126 | 525 |
Repayments | -423 | -517 |
Ending balance | 4,392 | 4,689 |
Undisbursed commitments | $116 | $199 |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Company | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total capital (to risk weighted assets) (in Dollars) | $119,178 | $113,028 |
Total capital (to risk weighted assets) | 19.04% | 18.28% |
Total capital (to risk weighted assets) (in Dollars) | 50,075 | 49,465 |
Total capital (to risk weighted assets) | 8.00% | 8.00% |
North Valley Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Total capital (to risk weighted assets) (in Dollars) | 116,783 | 112,938 |
Total capital (to risk weighted assets) | 18.68% | 18.26% |
Total capital (to risk weighted assets) (in Dollars) | 50,014 | 49,480 |
Total capital (to risk weighted assets) | 8.00% | 8.00% |
Total capital (to risk weighted assets) (in Dollars) | 62,518 | 61,850 |
Total capital (to risk weighted assets) | 10.00% | 10.00% |
Capital to Risk Weighted Assets | Company | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Tier 1 capital (to risk weighted assets) (in Dollars) | 111,333 | 105,211 |
Tier 1 capital (to risk weighted assets) | 17.79% | 17.01% |
Tier 1 capital (to risk weighted assets) (in Dollars) | 25,033 | 24,741 |
Tier 1 capital (to risk weighted assets) | 4.00% | 4.00% |
Capital to Risk Weighted Assets | North Valley Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Tier 1 capital (to risk weighted assets) (in Dollars) | 108,947 | 105,122 |
Tier 1 capital (to risk weighted assets) | 17.42% | 17.00% |
Tier 1 capital (to risk weighted assets) (in Dollars) | 25,017 | 24,735 |
Tier 1 capital (to risk weighted assets) | 4.00% | 4.00% |
Tier 1 capital (to risk weighted assets) (in Dollars) | 37,525 | 37,102 |
Tier 1 capital (to risk weighted assets) | 6.00% | 6.00% |
Capital to Average Assets | Company | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Tier 1 capital (to risk weighted assets) (in Dollars) | 111,333 | 105,211 |
Tier 1 capital (to risk weighted assets) | 12.16% | 11.77% |
Tier 1 capital (to risk weighted assets) (in Dollars) | 36,623 | 35,756 |
Tier 1 capital (to risk weighted assets) | 4.00% | 4.00% |
Capital to Average Assets | North Valley Bank | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Tier 1 capital (to risk weighted assets) (in Dollars) | 108,947 | 105,122 |
Tier 1 capital (to risk weighted assets) | 11.90% | 11.76% |
Tier 1 capital (to risk weighted assets) (in Dollars) | 36,621 | 35,756 |
Tier 1 capital (to risk weighted assets) | 4.00% | 4.00% |
Tier 1 capital (to risk weighted assets) (in Dollars) | $45,776 | $44,695 |
Tier 1 capital (to risk weighted assets) | 5.00% | 5.00% |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic | ' | ' | ' |
Numerator - net income (in dollars) | $3,625 | $6,290 | $3,047 |
Weighted average common shares outstanding (in shares) | 6,836 | 6,834 | 6,833 |
Basic earnings per share (in dollars per share) | $0.53 | $0.92 | $0.45 |
Diluted | ' | ' | ' |
Numerator - net income (in dollars) | 3,625 | 6,290 | 3,047 |
Weighted average common shares outstanding (in shares) | 6,836 | 6,834 | 6,833 |
Dilutive effect of outstanding options (in share) | $21 | $1 | ' |
Weighted average common shares outstanding and common stock equivalents (in shares) | 6,857 | 6,835 | 6,833 |
Diluted earnings per common share (in dollars per share) | $0.53 | $0.92 | $0.45 |
EARNINGS_PER_SHARE_Detail_Text
EARNINGS PER SHARE (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share, amount | 214,302 | 247,822 | 183,070 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | $1,666 | $1,470 | ' |
Net unrealized loss on securities available for sale, net of tax, $(4,655) for 2013 and $1,408 for 2012 | -6,698 | 2,025 | ' |
Reclassification adjustment for gains on securities, net of tax, $(225) for 2013 and $(770) for 2012 | -323 | -1,107 | ' |
Net gains arising during the period, net of tax, $113 for 2013 and $(557) for 2012 | 162 | -803 | 2,283 |
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax $120 for 2013 and $57 for 2012 | 173 | 81 | ' |
Ending Balance | -5,020 | 1,666 | 1,470 |
Net Unrealized Gains (Losses) on Securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | 3,287 | 2,369 | ' |
Net unrealized loss on securities available for sale, net of tax, $(4,655) for 2013 and $1,408 for 2012 | -6,698 | 2,025 | ' |
Reclassification adjustment for gains on securities, net of tax, $(225) for 2013 and $(770) for 2012 | -323 | -1,107 | ' |
Net gains arising during the period, net of tax, $113 for 2013 and $(557) for 2012 | ' | ' | ' |
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax $120 for 2013 and $57 for 2012 | ' | ' | ' |
Ending Balance | -3,734 | 3,287 | ' |
Adjustments Related to Defined Benefit Pension Plan | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning balance | -1,621 | -899 | ' |
Net unrealized loss on securities available for sale, net of tax, $(4,655) for 2013 and $1,408 for 2012 | ' | ' | ' |
Reclassification adjustment for gains on securities, net of tax, $(225) for 2013 and $(770) for 2012 | ' | ' | ' |
Net gains arising during the period, net of tax, $113 for 2013 and $(557) for 2012 | 162 | -803 | ' |
Reclassification adjustment for amortization of prior service cost and net loss included in salaries and employee benefits, net of tax $120 for 2013 and $57 for 2012 | 173 | 81 | ' |
Ending Balance | ($1,286) | ($1,621) | ' |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Parentheticals (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Net unrealized losses on securities available for sale, tax effect | ($4,655) | $1,408 | $2,580 |
Reclassification adjustment for gains on securities, tax effect | -225 | -770 | -688 |
Net losses arising during the period, tax effect | 113 | -557 | -351 |
Reclassification adjustment for amortization of prior service cost and net gain included in net periodic pension cost, tax effect | $120 | $57 | ' |
ACCUMULATED_OTHER_COMPREHENSIV4
ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Salaries and employee benefits | $20,454 | $20,277 | $18,657 |
Reclassified From Accumulated Other Comprehensive (Loss) Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain on sale and calls of securities | 548 | 1,877 | ' |
Salaries and employee benefits | -293 | -137 | ' |
Total before tax | 255 | 1,740 | ' |
Provision for income tax | -104 | -713 | ' |
Net of tax | $151 | $1,027 | ' |
PARENT_COMPANY_ONLY_CONDENSED_2
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $57,483 | $38,519 | $58,968 | $23,634 |
Other assets | 19,500 | 15,597 | ' | ' |
Total assets | 917,764 | 902,343 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Subordinated debentures | 21,651 | 21,651 | ' | ' |
Stockholders' equity | 93,429 | 96,161 | 89,465 | 83,978 |
Total liabilities and stockholders' equity | 917,764 | 902,343 | ' | ' |
Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and cash equivalents | 2,759 | 1,023 | ' | ' |
Other assets | 4,277 | 3,082 | ' | ' |
Total assets | 115,501 | 118,141 | ' | ' |
Liabilities and stockholders' equity | ' | ' | ' | ' |
Subordinated debentures | 21,651 | 21,651 | ' | ' |
Other liabilities | 421 | 329 | ' | ' |
Stockholders' equity | 93,429 | 96,161 | ' | ' |
Total liabilities and stockholders' equity | 115,501 | 118,141 | ' | ' |
Banking Subsidiary | Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in subsidiaries | 107,812 | 113,383 | ' | ' |
Other Subsidiaries | Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in subsidiaries | 2 | 2 | ' | ' |
Unconsolidated Subsidiary Grantor Trusts | Parent Company | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investments in subsidiaries | $651 | $651 | ' | ' |
PARENT_COMPANY_ONLY_CONDENSED_3
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Expense: | ' | ' | ' |
Interest on subordinated debentures | $532 | $1,352 | $1,892 |
Tax benefit | 1,594 | -1,744 | 312 |
Net income | 3,625 | 6,290 | 3,047 |
Parent Company | ' | ' | ' |
Income: | ' | ' | ' |
Dividends from subsidiaries | 4,500 | 16,500 | ' |
Expense: | ' | ' | ' |
Interest on subordinated debentures | 532 | 1,352 | 1,892 |
Legal and accounting | 522 | 485 | 470 |
Other | 2,047 | 1,624 | 1,466 |
Tax benefit | -1,303 | -1,455 | -1,609 |
Total expense | 1,798 | 2,006 | 2,219 |
Income (loss) before equity in undistributed income (loss) of subsidiaries | 2,702 | 14,494 | -2,219 |
Equity in undistributed income (loss) of subsidiaries | 923 | -8,204 | 5,266 |
Net income | $3,625 | $6,290 | $3,047 |
PARENT_COMPANY_ONLY_CONDENSED_4
PARENT COMPANY ONLY - CONDENSED FINANCIAL INFORMATION (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | $3,625 | $6,290 | $3,047 | ' |
Adjustments to reconcile net income to net cash from operating activites: | ' | ' | ' | ' |
Stock-based compensation expense | 329 | 210 | 157 | ' |
Effect of changes in: | ' | ' | ' | ' |
Other assets | 2,104 | 1,517 | -1,452 | ' |
Net cash provided by (used in) operating activities | 10,256 | 7,628 | 14,695 | ' |
Cash flows from investing activities | ' | ' | ' | ' |
Net cash provided by investing activities | -10,561 | -20,108 | 8,190 | ' |
Cash flows from financing activities | ' | ' | ' | ' |
Repayment of subordinated debentures | ' | 10,310 | ' | ' |
Net cash used in financing activities | 19,269 | -7,969 | 12,449 | ' |
Increase (decrease) in cash and cash equivalents | 18,964 | -20,449 | 35,334 | ' |
Cash and cash equivalents | 57,483 | 38,519 | 58,968 | 23,634 |
Parent Company | ' | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net income | 3,625 | 6,290 | 3,047 | ' |
Adjustments to reconcile net income to net cash from operating activites: | ' | ' | ' | ' |
Equity in undistributed (loss) income of subsidiaries | -923 | 8,204 | -5,266 | ' |
Stock-based compensation expense | 137 | 118 | 62 | ' |
Effect of changes in: | ' | ' | ' | ' |
Other assets | -1,195 | -73 | 19 | ' |
Other liabilities | 92 | -4,772 | 302 | ' |
Net cash provided by (used in) operating activities | 1,736 | 9,767 | -1,836 | ' |
Cash flows from investing activities | ' | ' | ' | ' |
Investments in subsidiaries | ' | 310 | ' | ' |
Net cash provided by investing activities | ' | 310 | ' | ' |
Cash flows from financing activities | ' | ' | ' | ' |
Repayment of subordinated debentures | ' | -10,310 | ' | ' |
Net cash used in financing activities | ' | -10,310 | ' | ' |
Increase (decrease) in cash and cash equivalents | 1,736 | -233 | -1,836 | ' |
Cash and cash equivalents | 2,759 | 1,023 | ' | ' |
Parent Company | Beginning of year | ' | ' | ' | ' |
Cash flows from financing activities | ' | ' | ' | ' |
Cash and cash equivalents | 1,023 | 1,256 | 3,092 | ' |
Parent Company | End of year | ' | ' | ' | ' |
Cash flows from financing activities | ' | ' | ' | ' |
Cash and cash equivalents | $2,759 | $1,023 | $1,256 | ' |
SUBSEQUENT_EVENT_Detail_Textua
SUBSEQUENT EVENT (Detail Textuals) (Subsequent Event, Merger Agreement, TriCo) | 1 Months Ended |
Jan. 21, 2014 | |
Subsequent Event | Merger Agreement | TriCo | ' |
Subsequent Event [Line Items] | ' |
Number of common shares exchanged in merger transaction | 0.9433 |
Percentage of ownership on pro forma basis | 28.60% |