Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'MACKINAC FINANCIAL CORP /MI/ |
Entity Central Index Key | '0000036506 |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--12-31 |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 5,581,339 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | ' |
Cash and due from banks | $22,791 | $26,958 | $31,403 |
Federal funds sold | 3 | 3 | 16,002 |
Cash and cash equivalents | 22,794 | 26,961 | 47,405 |
Interest-bearing deposits in other financial institutions | 10 | 10 | 10 |
Securities available for sale | 48,096 | 43,799 | 42,476 |
Federal Home Loan Bank stock | 3,060 | 3,060 | 3,060 |
Loans: | ' | ' | ' |
Commercial | 353,526 | 342,841 | 329,891 |
Mortgage | 104,504 | 95,413 | 93,446 |
Consumer | 14,465 | 10,923 | 10,621 |
Total Loans | 472,495 | 449,177 | 433,958 |
Allowance for loan losses | -4,959 | -5,218 | -5,186 |
Net loans | 467,536 | 443,959 | 428,772 |
Premises and equipment | 10,484 | 10,633 | 10,744 |
Other real estate held for sale | 2,568 | 3,212 | 3,511 |
Deferred tax asset | 7,953 | 9,131 | 9,670 |
Other assets | 5,416 | 5,215 | 5,469 |
TOTAL ASSETS | 567,917 | 545,980 | 551,117 |
Deposits: | ' | ' | ' |
Noninterest bearing deposits | 70,063 | 67,652 | 62,306 |
NOW, money market, interest checking | 158,588 | 155,465 | 152,286 |
Savings | 12,694 | 13,829 | 15,783 |
CDs less than $100,000 | 133,821 | 135,550 | 142,125 |
CDs more than $100,000 | 23,816 | 24,355 | 25,390 |
Brokered | 62,706 | 37,706 | 41,473 |
Total deposits | 461,688 | 434,557 | 439,363 |
Borrowings | 35,852 | 35,925 | 35,925 |
Other liabilities | 3,332 | 3,050 | 2,884 |
Total liabilities | 500,872 | 473,532 | 478,172 |
SHAREHOLDERS' EQUITY: | ' | ' | ' |
Preferred stock - No par value: Authorized - 500,000 shares Issued and outstanding - 4,000, 11,000 and 11,000 respectively | 4,000 | 11,000 | 11,000 |
Common stock and additional paid in capital - No par value Authorized - 18,000,000 shares Issued and outstanding - 5,581,339, 5,559,859 and 5,559,914 respectively | 53,915 | 53,797 | 55,047 |
Retained earnings | 8,780 | 6,727 | 6,028 |
Accumulated other comprehensive income | 350 | 924 | 870 |
Total shareholders' equity | 67,045 | 72,448 | 72,945 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $567,917 | $545,980 | $551,117 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' | ' |
Preferred stock, par value | ' | ' | ' |
Preferred stock, Authorized shares | 500,000 | 500,000 | 500,000 |
Preferred stock, shares issued | 4,000 | 11,000 | 11,000 |
Preferred stock, shares outstanding | 4,000 | 11,000 | 11,000 |
Common stock, par value | ' | ' | ' |
Common stock and additional paid in capital, authorized shares | 18,000,000 | 18,000,000 | 18,000,000 |
Common stock and additional paid in capital, shares issued | 5,581,339 | 5,559,859 | 5,559,914 |
Common stock and additional paid in capital, shares outstanding | 5,581,339 | 5,559,859 | 5,559,914 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest and fees on loans: | ' | ' | ' | ' |
Taxable | $6,077 | $5,803 | $17,980 | $17,256 |
Tax-exempt | 26 | 28 | 81 | 90 |
Interest on securities: | ' | ' | ' | ' |
Taxable | 245 | 226 | 726 | 728 |
Tax-exempt | 9 | 6 | 22 | 20 |
Other interest income | 33 | 41 | 96 | 96 |
Total interest income | 6,390 | 6,104 | 18,905 | 18,190 |
INTEREST EXPENSE: | ' | ' | ' | ' |
Deposits | 879 | 1,011 | 2,642 | 2,986 |
Borrowings | 163 | 163 | 490 | 492 |
Total interest expense | 1,042 | 1,174 | 3,132 | 3,478 |
Net interest income | 5,348 | 4,930 | 15,773 | 14,712 |
Provision for loan losses | 375 | 150 | 850 | 795 |
Net interest income after provision for loan losses | 4,973 | 4,780 | 14,923 | 13,917 |
OTHER INCOME: | ' | ' | ' | ' |
Deposit service fees | 158 | 155 | 495 | 538 |
Income from loans sold in the secondary market | 203 | 320 | 781 | 844 |
SBA/USDA loan sale gains | 135 | 506 | 798 | 1,126 |
Mortgage servicing income | 128 | 92 | 413 | 292 |
Other | 114 | 76 | 260 | 260 |
Total other income | 738 | 1,149 | 2,747 | 3,060 |
OTHER EXPENSE: | ' | ' | ' | ' |
Salaries and employee benefits | 2,226 | 2,063 | 6,907 | 6,041 |
Occupancy | 362 | 370 | 1,107 | 1,050 |
Furniture and equipment | 274 | 213 | 799 | 660 |
Data processing | 269 | 253 | 802 | 739 |
Professional service fees | 161 | 210 | 706 | 700 |
Loan and deposit | 55 | 195 | 173 | 674 |
Writedowns and losses on other real estate held for sale | 57 | 265 | 146 | 450 |
FDIC insurance assessment | 100 | 36 | 300 | 354 |
Telephone | 84 | 56 | 229 | 168 |
Advertising | 119 | 96 | 334 | 292 |
Other | 652 | 610 | 1,690 | 1,280 |
Total other expenses | 4,359 | 4,367 | 13,193 | 12,408 |
Income before provision for income taxes | 1,352 | 1,562 | 4,477 | 4,569 |
Provision for (benefit of) income taxes | 456 | 528 | 1,508 | -1,458 |
NET INCOME | 896 | 1,034 | 2,969 | 6,027 |
Preferred dividend and accretion of discount | 50 | 137 | 250 | 491 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $846 | $897 | $2,719 | $5,536 |
INCOME PER COMMON SHARE: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.15 | $0.21 | $0.49 | $1.30 |
Diluted (in dollars per share) | $0.15 | $0.20 | $0.49 | $1.25 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED CONSOLIDATED STATEMENTS COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $896 | $1,034 | $2,969 | $6,027 |
Net change in net unrealized gains and losses on securities available for sale: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | -136 | 264 | -899 | 827 |
Less: reclassification adjustment for gains included in net income | 14 | ' | 29 | ' |
Net securities gain (loss) during the period | -122 | 264 | -870 | 827 |
Tax effect | 42 | -90 | 296 | -282 |
Net of tax | -80 | 174 | -574 | 545 |
Comprehensive income | $816 | $1,208 | $2,395 | $6,572 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Preferred Stock | Common Shareholders' Equity | Comprehensive Income (Loss) |
In Thousands, unless otherwise specified | ||||
Balance, beginning of period at Dec. 31, 2011 | $55,263 | $10,921 | $44,342 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income for period | 6,027 | ' | 6,027 | 6,027 |
Net unrealized gain (loss) on securities available for sale | 545 | ' | 545 | 545 |
Comprehensive income | 6,572 | ' | 6,572 | 6,572 |
Issuance of common stock | 11,506 | ' | 11,506 | ' |
Stock compensation | 16 | ' | 16 | ' |
Dividend on preferred stock | -412 | ' | -412 | ' |
Accretion of preferred stock discount | ' | 79 | -79 | ' |
Balance, end of period at Sep. 30, 2012 | 72,945 | 11,000 | 61,945 | ' |
Balance, beginning of period at Jun. 30, 2012 | 60,352 | 11,000 | 49,352 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income for period | 1,034 | ' | 1,034 | 1,034 |
Net unrealized gain (loss) on securities available for sale | 174 | ' | 174 | 174 |
Comprehensive income | 1,208 | ' | 1,208 | 1,208 |
Issuance of common stock | 11,506 | ' | 11,506 | ' |
Stock compensation | 16 | ' | 16 | ' |
Dividend on preferred stock | -137 | ' | -137 | ' |
Balance, end of period at Sep. 30, 2012 | 72,945 | ' | 61,945 | ' |
Balance, beginning of period at Dec. 31, 2012 | 72,448 | 11,000 | 61,448 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income for period | 2,969 | ' | 2,969 | 2,969 |
Net unrealized gain (loss) on securities available for sale | -574 | ' | -574 | -574 |
Comprehensive income | 2,395 | ' | 2,395 | 2,395 |
Stock compensation | 258 | ' | 258 | ' |
Dividend on common stock | -666 | ' | -666 | ' |
Repurchase of common stock | -140 | ' | -140 | ' |
Redemption of Preferred Series A stock | -7,000 | -7,000 | ' | ' |
Dividend on preferred stock | -250 | ' | -250 | ' |
Balance, end of period at Sep. 30, 2013 | 67,045 | 4,000 | 63,045 | ' |
Balance, beginning of period at Jun. 30, 2013 | 66,520 | 4,000 | 62,520 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Net income for period | 896 | ' | 896 | 896 |
Net unrealized gain (loss) on securities available for sale | -80 | ' | -80 | -80 |
Comprehensive income | 816 | ' | 816 | 816 |
Stock compensation | 75 | ' | 75 | ' |
Dividend on common stock | -222 | ' | -222 | ' |
Repurchase of common stock | -94 | ' | -94 | ' |
Dividend on preferred stock | -50 | ' | -50 | ' |
Balance, end of period at Sep. 30, 2013 | $67,045 | ' | $63,045 | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $2,969 | $6,027 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,264 | 1,152 |
Provision for loan losses | 850 | 795 |
Deferred income taxes | 1,508 | -1,458 |
(Gain) on sales/calls of securities | -29 | ' |
(Gain) on sale of secondary market loans | -609 | -641 |
Origination of loans held for sale in secondary market | -44,568 | -45,605 |
Proceeds from loans held for sale in secondary market | 45,177 | 46,246 |
Loss on sale of premises, equipment, and other real estate held for sale | 13 | 12 |
Writedown of other real estate held for sale | 134 | 474 |
Stock compensation | 258 | 16 |
Change in other assets | -201 | -315 |
Change in other liabilities | 283 | 622 |
Net cash provided by operating activities | 7,049 | 7,325 |
Cash Flows from Investing Activities: | ' | ' |
Net increase in loans | -25,393 | -34,652 |
Purchase of securities available for sale | -7,875 | -11,031 |
Proceeds from maturities, sales, calls or paydowns of securities available for sale | 2,378 | 7,848 |
Capital expenditures | -757 | -1,929 |
Proceeds from sale of premises, equipment, and other real estate | 1,429 | 178 |
Net cash (used in) investing activities | -30,218 | -39,586 |
Cash Flows from Financing Activities: | ' | ' |
Net increase in deposits | 27,131 | 34,574 |
Net proceeds from stock issuance | ' | 11,506 |
Repurchase of common stock | -140 | ' |
Dividend on common stock | -666 | ' |
Redemption of Preferred Series A | -7,000 | ' |
Principal payments on borrowings | -73 | -72 |
Dividend on preferred stock | -250 | -412 |
Net cash provided by financing activities | 19,002 | 45,596 |
Net increase (decrease) in cash and cash equivalents | -4,167 | 13,335 |
Cash and cash equivalents at beginning of period | 26,961 | 34,070 |
Cash and cash equivalents at end of period | 22,794 | 47,405 |
Cash paid during the year for: | ' | ' |
Interest | 2,721 | 3,020 |
Income taxes | 124 | 75 |
Noncash Investing and Financing Activities: | ' | ' |
Transfers of Foreclosures from Loans to Other Real Estate Held for Sale (net of adjustments made through the allowance for loan losses) | $932 | $1,013 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
The unaudited condensed consolidated financial statements of Mackinac Financial Corporation (the “Corporation”) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. The unaudited consolidated financial statements and footnotes thereto should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
In order to properly reflect some categories of other income and other expenses, reclassifications of expense and income items have been made to prior period numbers. The “net” other income and other expenses was not changed due to these reclassifications. | |
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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the valuation of deferred tax assets, mortgage servicing rights and other real estate held for sale. | |
Allowance for Loan Losses | |
The allowance for loan losses includes specific allowances related to commercial loans, when they have been judged to be impaired. A loan is impaired when, based on current information, it is probable that the Corporation will not collect all amounts due in accordance with the contractual terms of the loan agreement. These specific allowances are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |
The Corporation continues to maintain a general allowance for loan losses for loans not considered impaired. The allowance for loan losses is maintained at a level which management believes is adequate to provide for possible loan losses. Management periodically evaluates the adequacy of the allowance using the Corporation’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, current economic conditions, and other factors. The allowance does not include the effects of expected losses related to future events or future changes in economic conditions. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require additions to the allowance for loan losses based on their judgments of collectability. | |
In management’s opinion, the allowance for loan losses is adequate to cover probable losses relating to specifically identified loans, as well as probable losses inherent in the balance of the loan portfolio as of the balance sheet date. | |
Stock Compensation Plans | |
The Corporation has three stock compensation plans, which are now expired. One plan was approved during 2000 and applies to officers, employees, and nonemployee directors. This plan was amended as a part of the December 2004 stock offering and recapitalization. The amendment, approved by shareholders, increased the shares available under this plan by 428,587 shares from the original 25,000 (adjusted for the 1:20 reverse stock split), to a total authorized share balance of 453,587. The other two plans, one for officers and employees and the other for nonemployee directors, were approved in 1997. A total of 30,000 shares (adjusted for the 1:20 split), were made available for grant under these plans. Options under all of the plans were granted at the discretion of a committee of the Corporation’s Board of Directors. Options to purchase shares of the Corporation’s stock were granted at a price equal to the market price of the stock at the date of grant. The committee determined the vesting of the options when they were granted as established under the plan. | |
On May 22, 2012, the Corporation’s shareholders approved the Mackinac Financial Corporation 2012 Incentive Compensation Plan, under which current and prospective employees, non-employee directors and consultants may be awarded incentive stock options, non-statutory stock options, shares of restricted stock units (“RSUs”), or stock appreciation rights. The aggregate number of shares of the Corporation’s common stock issuable under the plan is 757,848. | |
On August 31, 2012, the Corporation granted 148,500 RSUs to certain members of management and all outside directors at the market value of the stock, which was $7.91. The RSUs were awarded at no cost to the employee and vest ratably over a four-year period. Compensation cost to be recognized over the four-year vesting period is $1.175 million. As of September 30, 2013, 37,125 of the RSUs were vested and issued. The unrecognized compensation expense was $.851 million as of September 30, 2013. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
2. EARNINGS PER SHARE | ||||||||||||||
Diluted earnings per share, which reflects the potential dilution that could occur if outstanding stock options and warrants were exercised and stock awards were fully vested and resulted in the issuance of common stock that then shared in our earnings, is computed by dividing net income by the weighted average number of common shares outstanding and common stock equivalents, after giving effect for dilutive shares issued. | ||||||||||||||
The following shows the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands, except per share data): | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Numerator): | ||||||||||||||
Net income | $ | 896 | $ | 1,034 | $ | 2,969 | $ | 6,027 | ||||||
Preferred stock dividends and accretion of discount | 50 | 137 | 250 | 491 | ||||||||||
Net income available to common shareholders | $ | 846 | $ | 897 | $ | 2,719 | $ | 5,536 | ||||||
(Denominator): | ||||||||||||||
Weighted average shares outstanding - basic | 5,562,835 | 4,722,029 | 5,559,108 | 3,857,002 | ||||||||||
Dilutive effect of common stock warrants | — | 136,186 | — | 119,850 | ||||||||||
Weighted average shares outstanding - diluted | 5,562,835 | 4,858,215 | 5,559,108 | 3,976,852 | ||||||||||
Income per common share*: | ||||||||||||||
Basic | $ | 0.15 | $ | 0.21 | $ | 0.49 | $ | 1.3 | ||||||
Diluted | $ | 0.15 | $ | 0.2 | $ | 0.49 | $ | 1.25 | ||||||
*Earnings per share data for 2012 restated for common stock issuance |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
3. INVESTMENT SECURITIES | ||||||||||||||
The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2013, December 31, 2012 and September 30, 2012 are as follows (dollars in thousands): | ||||||||||||||
Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
September 30, 2013 | ||||||||||||||
US Agencies - MBS | $ | 7,236 | $ | 315 | $ | — | $ | 7,551 | ||||||
US Agencies | 16,003 | 66 | (336 | ) | 15,733 | |||||||||
Corporate Bonds | 18,451 | 192 | (4 | ) | 18,639 | |||||||||
Obligations of states and political subdivisions | 5,876 | 297 | — | 6,173 | ||||||||||
Total securities available for sale | $ | 47,566 | $ | 870 | $ | (340 | ) | $ | 48,096 | |||||
December 31, 2012 | ||||||||||||||
US Agencies - MBS | $ | 7,962 | $ | 412 | $ | — | $ | 8,374 | ||||||
US Agencies | 10,267 | 137 | — | 10,404 | ||||||||||
Corporate Bonds | 18,763 | 237 | (23 | ) | 18,977 | |||||||||
Obligations of states and political subdivisions | 5,407 | 637 | — | 6,044 | ||||||||||
Total securities available for sale | $ | 42,399 | $ | 1,423 | $ | (23 | ) | $ | 43,799 | |||||
September 30, 2012 | ||||||||||||||
US Agencies - MBS | $ | 8,282 | $ | 388 | $ | — | $ | 8,670 | ||||||
US Agencies | 10,303 | 154 | — | 10,457 | ||||||||||
Corporate Bonds | 17,180 | 232 | (9 | ) | 17,403 | |||||||||
Obligations of states and political subdivisions | 5,391 | 557 | (2 | ) | 5,946 | |||||||||
Total securities available for sale | $ | 41,156 | $ | 1,331 | $ | (11 | ) | $ | 42,476 | |||||
The Corporation has evaluated gross unrealized losses that exist within the portfolio and considers them temporary in nature. The Corporation has both the ability and the intent to hold the investment securities until their respective maturities and therefore does not anticipate the realization of the temporary losses. | ||||||||||||||
The amortized cost and estimated fair value of investment securities pledged to secure FHLB borrowings and customer relationships were $8.499 million and $8.729 million, respectively, at September 30, 2013. |
LOANS
LOANS | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
4. LOANS | |||||||||||||||||||||||||||||
The composition of loans is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Commercial real estate | $ | 257,961 | $ | 244,966 | $ | 224,061 | |||||||||||||||||||||||
Commercial, financial, and agricultural | 79,511 | 80,646 | 84,073 | ||||||||||||||||||||||||||
One to four family residential real estate | 98,770 | 87,948 | 86,643 | ||||||||||||||||||||||||||
Construction : | |||||||||||||||||||||||||||||
Consumer | 5,734 | 7,465 | 6,803 | ||||||||||||||||||||||||||
Commerical | 16,054 | 17,229 | 21,757 | ||||||||||||||||||||||||||
Consumer | 14,465 | 10,923 | 10,621 | ||||||||||||||||||||||||||
Total loans | $ | 472,495 | $ | 449,177 | $ | 433,958 | |||||||||||||||||||||||
An analysis of the allowance for loan losses for nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 5,218 | $ | 5,251 | $ | 5,251 | |||||||||||||||||||||||
Recoveries on loans previously charged off | 154 | 278 | 231 | ||||||||||||||||||||||||||
Loans charged off | (1,263 | ) | (1,256 | ) | (1,091 | ) | |||||||||||||||||||||||
Provision | 850 | 945 | 795 | ||||||||||||||||||||||||||
Balance at end of period | $ | 4,959 | $ | 5,218 | $ | 5,186 | |||||||||||||||||||||||
In the first nine months of 2013, net charge off activity was $1.109 million, or .32% of average loans outstanding compared to net charge-offs of $.860 million, or .28% of average loans, in the same period in 2012. In the first nine months of 2013, the Corporation recorded a provision for loan loss of $.850 million compared to $.795 million in the first nine months of 2012. The Corporation’s allowance for loan loss reserve policy calls for a measurement of the adequacy of the reserve at each quarter end. This process includes an analysis of the loan portfolio to take into account increases in loans outstanding and portfolio composition, historical loss rates, and specific reserve requirements of nonperforming loans. | |||||||||||||||||||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2013 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,661 | $ | 1,090 | $ | 97 | $ | 877 | $ | — | $ | 13 | $ | 439 | $ | 5,177 | |||||||||||||
Charge-offs | (132 | ) | (476 | ) | — | (25 | ) | — | (14 | ) | — | (647 | ) | ||||||||||||||||
Recoveries | 23 | 20 | — | 6 | 1 | 4 | — | 54 | |||||||||||||||||||||
Provision | 3 | 522 | (16 | ) | 44 | (1 | ) | 15 | (192 | ) | 375 | ||||||||||||||||||
Ending balance ALLR | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Charge-offs | (588 | ) | (552 | ) | — | (38 | ) | — | (85 | ) | — | (1,263 | ) | ||||||||||||||||
Recoveries | 64 | 53 | 2 | 17 | 1 | 17 | — | 154 | |||||||||||||||||||||
Provision | (188 | ) | 963 | (46 | ) | (57 | ) | (1 | ) | 86 | 93 | 850 | |||||||||||||||||
Ending balance ALLR | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
At September 30,2013 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 257,961 | $ | 79,511 | $ | 16,054 | $ | 98,770 | $ | 5,734 | $ | 14,465 | $ | — | $ | 472,495 | |||||||||||||
Ending balance ALLR | (2,555 | ) | (1,156 | ) | (81 | ) | (902 | ) | — | (18 | ) | (247 | ) | (4,959 | ) | ||||||||||||||
Net loans | $ | 255,406 | $ | 78,355 | $ | 15,973 | $ | 97,868 | $ | 5,734 | $ | 14,447 | $ | (247 | ) | $ | 467,536 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,407 | $ | 802 | $ | 6 | $ | 246 | $ | — | $ | 18 | $ | — | $ | 2,479 | |||||||||||||
Collectively evaluated | 1,148 | 354 | 75 | 656 | — | — | 247 | 2,480 | |||||||||||||||||||||
Total | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 13,475 | $ | 7,638 | $ | 798 | $ | 450 | $ | — | $ | 35 | $ | — | $ | 22,396 | |||||||||||||
Collectively evaluated | 244,486 | 71,873 | 15,256 | 98,320 | 5,734 | 14,430 | — | 450,099 | |||||||||||||||||||||
Total | $ | 257,961 | $ | 79,511 | $ | 16,054 | $ | 98,770 | $ | 5,734 | $ | 14,465 | $ | — | $ | 472,495 | |||||||||||||
Impaired loans, by definition, are individually evaluated. | |||||||||||||||||||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,823 | $ | 1,079 | $ | 207 | $ | 1,114 | $ | — | $ | — | $ | 28 | $ | 5,251 | |||||||||||||
Charge-offs | (729 | ) | (40 | ) | (6 | ) | (399 | ) | — | (82 | ) | — | (1,256 | ) | |||||||||||||||
Recoveries | 52 | 201 | — | 7 | — | 18 | — | 278 | |||||||||||||||||||||
Provision | 1,121 | (548 | ) | (76 | ) | 258 | — | 64 | 126 | 945 | |||||||||||||||||||
Ending balance ALLR | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 244,966 | $ | 80,646 | $ | 17,229 | $ | 87,948 | $ | 7,465 | $ | 10,923 | $ | — | $ | 449,177 | |||||||||||||
Ending balance ALLR | (3,267 | ) | (692 | ) | (125 | ) | (980 | ) | — | — | (154 | ) | (5,218 | ) | |||||||||||||||
Net loans | $ | 241,699 | $ | 79,954 | $ | 17,104 | $ | 86,968 | $ | 7,465 | $ | 10,923 | $ | (154 | ) | $ | 443,959 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,662 | $ | 155 | $ | 10 | $ | 112 | $ | — | $ | — | $ | — | $ | 1,939 | |||||||||||||
Collectively evaluated | 1,605 | 537 | 115 | 868 | — | — | 154 | 3,279 | |||||||||||||||||||||
Total | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 22,910 | $ | 6,070 | $ | 858 | $ | 796 | $ | — | $ | — | $ | — | $ | 30,634 | |||||||||||||
Collectively evaluated | 222,056 | 74,576 | 16,371 | 87,152 | 7,465 | 10,923 | — | 418,543 | |||||||||||||||||||||
Total | $ | 244,966 | $ | 80,646 | $ | 17,229 | $ | 87,948 | $ | 7,465 | $ | 10,923 | $ | — | $ | 449,177 | |||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,784 | $ | 888 | $ | 218 | $ | 1,083 | $ | — | $ | — | $ | 110 | $ | 5,083 | |||||||||||||
Charge-offs | (36 | ) | — | — | (23 | ) | — | (1 | ) | — | (60 | ) | |||||||||||||||||
Recoveries | 10 | 1 | — | — | — | 2 | — | 13 | |||||||||||||||||||||
Provision | 90 | (114 | ) | (33 | ) | 177 | — | (1 | ) | 31 | 150 | ||||||||||||||||||
Ending balance ALLR | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,823 | $ | 1,079 | $ | 207 | $ | 1,114 | $ | — | $ | — | $ | 28 | $ | 5,251 | |||||||||||||
Charge-offs | (726 | ) | (24 | ) | (6 | ) | (319 | ) | — | (16 | ) | — | (1,091 | ) | |||||||||||||||
Recoveries | 27 | 188 | — | 5 | — | 11 | — | 231 | |||||||||||||||||||||
Provision | 724 | (468 | ) | (16 | ) | 437 | — | 5 | 113 | 795 | |||||||||||||||||||
Ending balance ALLR | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
At September 30, 2012 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 224,061 | $ | 84,073 | $ | 21,757 | $ | 86,643 | $ | 6,803 | $ | 10,621 | $ | — | $ | 433,958 | |||||||||||||
Ending balance ALLR | (2,848 | ) | (775 | ) | (185 | ) | (1,237 | ) | — | — | (141 | ) | (5,186 | ) | |||||||||||||||
Net loans | $ | 221,213 | $ | 83,298 | $ | 21,572 | $ | 85,406 | $ | 6,803 | $ | 10,621 | $ | (141 | ) | $ | 428,772 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,198 | $ | 145 | $ | 11 | $ | 277 | $ | — | $ | — | $ | — | $ | 1,631 | |||||||||||||
Collectively evaluated | 1,650 | 630 | 174 | 960 | — | — | 141 | 3,555 | |||||||||||||||||||||
Total | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 22,571 | $ | 5,997 | $ | 858 | $ | 1,248 | $ | — | $ | 10 | $ | — | $ | 30,684 | |||||||||||||
Collectively evaluated | 201,490 | 78,076 | 20,899 | 85,395 | 6,803 | 10,611 | — | 403,274 | |||||||||||||||||||||
Total | $ | 224,061 | $ | 84,073 | $ | 21,757 | $ | 86,643 | $ | 6,803 | $ | 10,621 | $ | — | $ | 433,958 | |||||||||||||
As part of the management of the loan portfolio, risk ratings are assigned to all commercial loans. Through the loan review process, ratings are modified as believed to be appropriate to reflect changes in the credit. Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan’s credit risk rating on a scale of 1 through 8, with higher scores indicating higher risk. The credit risk rating structure used is shown below. | |||||||||||||||||||||||||||||
In the context of the credit risk rating structure, the term Classified is defined as a problem loan which may or may not be in a nonaccrual status, dependent upon current payment status and collectability. | |||||||||||||||||||||||||||||
Excellent (1) | |||||||||||||||||||||||||||||
Borrower is not vulnerable to sudden economic or technological changes and is in a non-seasonal business or industry. These loans generally would be characterized by having good experienced management and a strong liquidity position with minimal leverage. | |||||||||||||||||||||||||||||
Good (2) | |||||||||||||||||||||||||||||
Borrower shows limited vulnerability to sudden economic change with modest seasonal effect. Borrower has “above average” financial statements and an acceptable repayment history with minimal leverage and a profitability that exceeds peers. | |||||||||||||||||||||||||||||
Average (3) | |||||||||||||||||||||||||||||
Generally, a borrower rated as average may be susceptible to unfavorable changes in the economy and somewhat affected by seasonal factors. Some product lines may be affected by technological change. Borrowers in this category exhibit stable earnings, with a satisfactory payment history. | |||||||||||||||||||||||||||||
Acceptable (4) | |||||||||||||||||||||||||||||
The loan is an otherwise acceptable credit that warrants a higher level of administration due to various underlying weaknesses. These weaknesses, however, have not and may never deteriorate to the point of a Special Mention rating or Classified status. This rating category may include new businesses not yet having established a firm performance record. | |||||||||||||||||||||||||||||
Special Mention (5) | |||||||||||||||||||||||||||||
The loan is not considered as a Classified status, however may exhibit material weaknesses that, if not corrected, may cause future problems. Borrowers in this category warrant special attention but have not yet reached the point of concern for loss. The borrower may have deteriorated to the point that they would have difficulty refinancing elsewhere. Similarly, purchasers of these businesses would not be eligible for bank financing unless they represent a significantly lessened credit risk. | |||||||||||||||||||||||||||||
Substandard (6) | |||||||||||||||||||||||||||||
The loan is Classified and exhibits a number of well-defined weaknesses that jeopardize normal repayment. The assets are no longer adequately protected due to declining net worth, lack of earning capacity or insufficient collateral offering the distinct possibility of the loss of a portion of the loan principal. Loans within this category clearly represent troubled and deteriorating credit situations requiring constant supervision and an action plan must be developed and approved by the appropriate officers to mitigate the risk. | |||||||||||||||||||||||||||||
Doubtful (7) | |||||||||||||||||||||||||||||
Loans in this category exhibit the same weaknesses used to describe the substandard credit; however, the traits are more pronounced. Loans are frozen with collection improbable. Such loans are not yet rated as Charge-off because certain actions may yet occur which would salvage the loan. | |||||||||||||||||||||||||||||
Charge-off/Loss (8) | |||||||||||||||||||||||||||||
Loans in this category are largely uncollectible and should be charged against the loan loss reserve immediately. | |||||||||||||||||||||||||||||
General Reserves: | |||||||||||||||||||||||||||||
For loans with a credit risk rating of 5 or better and any loans with a risk rating of 6 or 7 with no specific reserve, reserves are established based on the type of loan collateral, if any, and the assigned credit risk rating. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of current environmental factors and economic trends, all of which may be susceptible to significant change. | |||||||||||||||||||||||||||||
Using a historical average loss by loan type as a base, each loan graded as higher risk is assigned a specific percentage. Within the commercial loan portfolio, the historical loss rates are used for specific industries such as hospitality, gaming, petroleum, and forestry. The residential real estate and consumer loan portfolios are assigned a loss percentage as a homogenous group. If, however, on an individual loan the projected loss based on collateral value and payment histories are in excess of the computed allowance, the allocation is increased for the higher anticipated loss. These computations provide the basis for the allowance for loan losses as recorded by the Corporation. | |||||||||||||||||||||||||||||
Commercial construction loans in the amount of $2.773 million, $3.468 million and $3.882 million for the periods ended September 30, 2013 and December 31, 2012, and September 30, 2012, respectively did not receive a specific risk rating. These amounts represent loans made for land development and unimproved land purchases. Below is a breakdown of loans by risk category as of September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 2,240 | $ | 23,675 | $ | 88,105 | $ | 123,373 | $ | 16,117 | $ | 4,451 | $ | — | $ | — | $ | 257,961 | |||||||||||
Commercial, financial and agricultural | 4,260 | 5,108 | 22,263 | 41,851 | 3,746 | 2,094 | 189 | — | 79,511 | ||||||||||||||||||||
Commercial construction | — | 676 | 5,283 | 6,167 | 753 | 402 | — | 2,773 | 16,054 | ||||||||||||||||||||
One to four family residential real estate | — | 1,951 | 2,186 | 4,522 | — | 6 | — | 90,105 | 98,770 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 5,734 | 5,734 | ||||||||||||||||||||
Consumer | — | 102 | 34 | 632 | — | — | — | 13,697 | 14,465 | ||||||||||||||||||||
Total loans | $ | 6,500 | $ | 31,512 | $ | 117,871 | $ | 176,545 | $ | 20,616 | $ | 6,953 | $ | 189 | $ | 112,309 | $ | 472,495 | |||||||||||
Below is a breakdown of loans by risk category as of December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 4,807 | $ | 20,491 | $ | 84,164 | $ | 113,379 | $ | 16,754 | $ | 5,189 | $ | 182 | $ | — | $ | 244,966 | |||||||||||
Commercial, financial and agricultural | 5,026 | 3,936 | 23,821 | 41,785 | 4,296 | 1,782 | — | — | 80,646 | ||||||||||||||||||||
Commercial construction | — | 1,038 | 5,103 | 5,784 | 759 | 1,077 | — | 3,468 | 17,229 | ||||||||||||||||||||
One-to-four family residential real estate | — | 1,969 | 3,635 | 4,791 | — | 646 | — | 76,907 | 87,948 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 7,465 | 7,465 | ||||||||||||||||||||
Consumer | — | 359 | 71 | 257 | — | 6 | — | 10,230 | 10,923 | ||||||||||||||||||||
Total loans | $ | 9,833 | $ | 27,793 | $ | 116,794 | $ | 165,996 | $ | 21,809 | $ | 8,700 | $ | 182 | $ | 98,070 | $ | 449,177 | |||||||||||
Below is a breakdown of loans by risk category as of September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 3,372 | $ | 19,939 | $ | 72,647 | $ | 105,736 | $ | 16,784 | $ | 5,374 | $ | 209 | $ | — | $ | 224,061 | |||||||||||
Commercial, financial and agricultural | 4,306 | 5,517 | 25,932 | 42,097 | 4,320 | 1,901 | — | — | 84,073 | ||||||||||||||||||||
Commercial construction | — | 988 | 5,039 | 9,995 | 761 | 1,092 | — | 3,882 | 21,757 | ||||||||||||||||||||
One to four family residential real estate | — | 1,979 | 3,586 | 4,703 | — | 709 | — | 75,666 | 86,643 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 6,803 | 6,803 | ||||||||||||||||||||
Consumer | — | 362 | 71 | 233 | — | 3 | — | 9,952 | 10,621 | ||||||||||||||||||||
Total loans | $ | 7,678 | $ | 28,785 | $ | 107,275 | $ | 162,764 | $ | 21,865 | $ | 9,079 | $ | 209 | $ | 96,303 | $ | 433,958 | |||||||||||
Impaired Loans | |||||||||||||||||||||||||||||
Nonperforming loans are those which are contractually past due 90 days or more as to interest or principal payments, on nonaccrual status, or loans, the terms of which have been renegotiated to provide a reduction or deferral on interest or principal. There was no interest income recorded during impairment and that which would have been recognized was $.060 million for the three months ended September 30, 2013, and no interest income recorded during impairment and that which would have been recognized of $.177 million for the nine months ended September 30, 2013. For the three months ended September 30, 2012, the amounts were $.017 million and $.072 million and for the nine month period in 2012, the amounts were $.054 million and $.246 million. | |||||||||||||||||||||||||||||
The accrual of interest on loans is discontinued when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | |||||||||||||||||||||||||||||
Loans are considered impaired when, based on current information and events, it is probable the Corporation will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loans basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. | |||||||||||||||||||||||||||||
The following is a summary of impaired loans and their effect on interest income (dollars in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
QTD | YTD | Interest Income | Interest Income | Interest Income | Interest Income | ||||||||||||||||||||||||
Nonaccrual | Accrual | Average | Average | Related | Recognized | on | Recognized | on | |||||||||||||||||||||
Basis | Basis | Investment | Investment | Valuation Reserve | During Impairment | Accrual Basis | During Impairment | Accrual Basis | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 238 | $ | — | $ | 412 | $ | 501 | $ | — | $ | — | $ | — | $ | — | $ | 26 | |||||||||||
Commercial, financial and agricultural | — | — | 147 | 243 | — | — | 3 | — | 9 | ||||||||||||||||||||
Commercial construction | — | — | — | 193 | — | — | — | — | 3 | ||||||||||||||||||||
One to four family residential real estate | 67 | — | 86 | 140 | — | — | 2 | — | 7 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 10 | — | 9 | 4 | — | — | — | — | — | ||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,589 | $ | — | $ | 2,581 | $ | 2,557 | $ | 1,272 | $ | — | $ | 42 | $ | — | $ | 102 | |||||||||||
Commercial, financial and agricultural | 767 | — | 741 | 373 | 33 | — | 5 | — | 11 | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
One to four family residential real estate | 642 | — | 560 | 396 | 250 | — | 8 | — | 19 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,827 | $ | — | $ | 2,993 | $ | 3,058 | $ | 1,272 | $ | — | $ | 42 | $ | — | $ | 128 | |||||||||||
Commercial, financial and agricultural | 767 | — | 888 | 616 | 33 | — | 8 | — | 20 | ||||||||||||||||||||
Commercial construction | — | — | — | 193 | — | — | — | — | 3 | ||||||||||||||||||||
One to four family residential real estate | 709 | — | 646 | 536 | 250 | — | 10 | — | 26 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 10 | — | 9 | 4 | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 4,313 | $ | — | $ | 4,536 | $ | 4,407 | $ | 1,555 | $ | — | $ | 60 | $ | — | $ | 177 | |||||||||||
Interest Income | Interest Income | ||||||||||||||||||||||||||||
For the Year Ended: | Nonaccrual | Accrual | Average | Related | Recognized | on | |||||||||||||||||||||||
December 31, 2012 | Basis | Basis | Investment | Valuation Reserve | During Impairment | Accrual Basis | |||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 132 | $ | — | $ | 1,550 | $ | — | $ | — | $ | 37 | |||||||||||||||||
Commercial, financial and agricultural | — | — | 1,063 | — | — | 19 | |||||||||||||||||||||||
Commercial construction | 675 | — | 675 | — | — | 15 | |||||||||||||||||||||||
One to four family residential real estate | 230 | — | 1,074 | — | — | 41 | |||||||||||||||||||||||
Consumer construction | — | — | 16 | — | — | 1 | |||||||||||||||||||||||
Consumer | — | — | 3 | — | — | — | |||||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,939 | $ | — | $ | 3,173 | $ | 1,315 | $ | 54 | $ | 177 | |||||||||||||||||
Commercial, financial and agricultural | 436 | — | 504 | 109 | — | 17 | |||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||||||||
One to four family residential real estate | 275 | — | 281 | 95 | — | 6 | |||||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,071 | $ | — | $ | 4,723 | $ | 1,315 | $ | 54 | $ | 214 | |||||||||||||||||
Commercial, financial and agricultural | 436 | — | 1,567 | 109 | — | 36 | |||||||||||||||||||||||
Commercial construction | 675 | — | 675 | — | — | 15 | |||||||||||||||||||||||
One to four family residential real estate | 505 | — | 1,355 | 95 | — | 47 | |||||||||||||||||||||||
Consumer construction | — | — | 16 | — | — | 1 | |||||||||||||||||||||||
Consumer | — | — | 3 | — | — | — | |||||||||||||||||||||||
Total | $ | 4,687 | $ | — | $ | 8,339 | $ | 1,519 | $ | 54 | $ | 313 | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
QTD | YTD | Interest Income | Interest Income | Interest Income | Interest Income | ||||||||||||||||||||||||
Nonaccrual | Accrual | Average | Average | Related | Recognized | on | Recognized | on | |||||||||||||||||||||
Basis | Basis | Investment | Investment | Valuation Reserve | During Impairment | Accrual Basis | During Impairment | Accrual Basis | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 530 | $ | — | $ | 533 | $ | 1,135 | $ | — | $ | — | $ | 9 | $ | — | $ | 32 | |||||||||||
Commercial, financial and agricultural | — | — | — | 1,063 | — | — | — | — | 18 | ||||||||||||||||||||
Commercial construction | 676 | — | 676 | 676 | — | — | 5 | — | 9 | ||||||||||||||||||||
One to four family residential real estate | 156 | — | 384 | 818 | — | — | 4 | — | 28 | ||||||||||||||||||||
Consumer construction | 15 | — | 15 | 16 | — | — | — | — | 1 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,161 | $ | — | $ | 3,177 | $ | 3,663 | $ | 937 | $ | 17 | $ | 42 | $ | 54 | $ | 136 | |||||||||||
Commercial, financial and agricultural | 287 | — | 281 | 398 | 90 | — | 4 | — | 12 | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
One to four family residential real estate | 462 | — | 267 | 463 | 188 | — | 8 | — | 10 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 3 | — | 1 | 3 | 3 | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,691 | $ | — | $ | 3,710 | $ | 4,798 | $ | 937 | $ | 17 | $ | 51 | $ | 54 | $ | 168 | |||||||||||
Commercial, financial and agricultural | 287 | — | 281 | 1,461 | 90 | — | 4 | — | 30 | ||||||||||||||||||||
Commercial construction | 676 | — | 676 | 676 | — | — | 5 | — | 9 | ||||||||||||||||||||
One to four family residential real estate | 618 | — | 651 | 1,281 | 188 | — | 12 | — | 38 | ||||||||||||||||||||
Consumer construction | 15 | — | 15 | 16 | — | — | — | — | 1 | ||||||||||||||||||||
Consumer | 3 | — | 1 | 3 | 3 | — | — | — | — | ||||||||||||||||||||
Total | $ | 5,290 | $ | — | $ | 5,334 | $ | 8,235 | $ | 1,218 | $ | 17 | $ | 72 | $ | 54 | $ | 246 | |||||||||||
A summary of past due loans at September 30, 2013, December 31, 2012 and September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
30-89 days | 90+ days | 30-89 days | 90+ days | 30-89 days | 90+ days | ||||||||||||||||||||||||
Past Due | Past Due/ | Past Due | Past Due/ | Past Due | Past Due/ | ||||||||||||||||||||||||
(accruing) | Nonaccrual | Total | (accruing) | Nonaccrual | Total | (accruing) | Nonaccrual | Total | |||||||||||||||||||||
Commercial real estate | $ | — | $ | 2,827 | $ | 2,827 | $ | 575 | $ | 3,071 | $ | 3,646 | $ | 427 | $ | 3,691 | $ | 4,118 | |||||||||||
Commercial, financial and agricultural | 100 | 767 | 867 | 71 | 436 | 507 | 64 | 287 | 351 | ||||||||||||||||||||
Commercial construction | — | — | — | — | 675 | 675 | 47 | 676 | 723 | ||||||||||||||||||||
One to four family residential real estate | 186 | 709 | 895 | 291 | 505 | 796 | 582 | 618 | 1,200 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 15 | 15 | ||||||||||||||||||||
Consumer | 31 | 10 | 41 | 14 | — | 14 | 99 | 3 | 102 | ||||||||||||||||||||
Total past due loans | $ | 317 | $ | 4,313 | $ | 4,630 | $ | 951 | $ | 4,687 | $ | 5,638 | $ | 1,219 | $ | 5,290 | $ | 6,509 | |||||||||||
A roll-forward of nonaccrual activity for the three months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,057 | $ | 517 | $ | — | $ | 400 | $ | — | $ | 9 | $ | 3,983 | |||||||||||||||
Principal payments | (26 | ) | (224 | ) | — | (12 | ) | — | (1 | ) | (263 | ) | |||||||||||||||||
Charge-offs | (23 | ) | (476 | ) | — | (24 | ) | — | — | (523 | ) | ||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (208 | ) | (37 | ) | — | — | — | — | (245 | ) | |||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | — | 966 | — | 344 | — | 2 | 1,312 | ||||||||||||||||||||||
Other | 27 | 21 | — | 1 | 49 | ||||||||||||||||||||||||
Ending balance | $ | 2,827 | $ | 767 | $ | — | $ | 709 | $ | — | $ | 10 | $ | 4,313 | |||||||||||||||
A roll-forward of nonaccrual activity for the three months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,749 | $ | 278 | $ | 676 | $ | 657 | $ | 15 | $ | — | $ | 5,375 | |||||||||||||||
Principal payments | (89 | ) | (1 | ) | — | (2 | ) | — | — | (92 | ) | ||||||||||||||||||
Charge-offs | — | — | — | (14 | ) | — | — | (14 | ) | ||||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | (329 | ) | — | — | (329 | ) | ||||||||||||||||||||
Transfers to OREO | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | — | 7 | — | 304 | — | 3 | 314 | ||||||||||||||||||||||
Other | 31 | 3 | — | 2 | — | — | 36 | ||||||||||||||||||||||
Ending balance | $ | 3,691 | $ | 287 | $ | 676 | $ | 618 | $ | 15 | $ | 3 | $ | 5,290 | |||||||||||||||
A roll-forward of nonaccrual activity for the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,071 | $ | 436 | $ | 675 | $ | 505 | $ | — | $ | — | $ | 4,687 | |||||||||||||||
Principal payments | (174 | ) | (292 | ) | (100 | ) | (77 | ) | — | (1 | ) | (644 | ) | ||||||||||||||||
Charge-offs | (352 | ) | (548 | ) | — | (37 | ) | — | (4 | ) | (941 | ) | |||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (208 | ) | (37 | ) | (580 | ) | (107 | ) | — | — | (932 | ) | |||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 443 | 1,207 | — | 420 | — | 15 | 2,085 | ||||||||||||||||||||||
Other | 47 | 1 | 5 | 5 | — | — | 58 | ||||||||||||||||||||||
Ending balance | $ | 2,827 | $ | 767 | $ | — | $ | 709 | $ | — | $ | 10 | $ | 4,313 | |||||||||||||||
A roll-forward of nonaccrual activity for the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,362 | $ | 1,111 | $ | — | $ | 1,997 | $ | 20 | $ | — | $ | 5,490 | |||||||||||||||
Principal payments | (1,101 | ) | (1,383 | ) | — | (1,054 | ) | — | — | (3,538 | ) | ||||||||||||||||||
Charge-offs | (463 | ) | — | — | (307 | ) | (5 | ) | — | (775 | ) | ||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (465 | ) | — | — | (548 | ) | — | — | (1,013 | ) | |||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 3,288 | 566 | 676 | 524 | — | 3 | 5,057 | ||||||||||||||||||||||
Other | 70 | (7 | ) | — | 6 | — | — | 69 | |||||||||||||||||||||
Ending balance | $ | 3,691 | $ | 287 | $ | 676 | $ | 618 | $ | 15 | $ | 3 | $ | 5,290 | |||||||||||||||
A roll-forward of nonaccrual activity during the year ended December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,362 | $ | 1,111 | $ | — | $ | 1,997 | $ | 20 | $ | — | $ | 5,490 | |||||||||||||||
Principal payments | (1,569 | ) | (1,385 | ) | — | (1,068 | ) | — | — | (4,022 | ) | ||||||||||||||||||
Charge-offs | (463 | ) | — | — | (387 | ) | (5 | ) | (3 | ) | (858 | ) | |||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (675 | ) | — | — | (662 | ) | (15 | ) | — | (1,352 | ) | ||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 3,377 | 716 | 675 | 617 | — | 3 | 5,388 | ||||||||||||||||||||||
Other | 39 | (6 | ) | — | 8 | — | — | 41 | |||||||||||||||||||||
Ending balance | $ | 3,071 | $ | 436 | $ | 675 | $ | 505 | $ | — | $ | — | $ | 4,687 | |||||||||||||||
Troubled Debt Restructuring | |||||||||||||||||||||||||||||
Troubled debt restructurings (“TDR”) are determined on a loan-by-loan basis. Generally restructurings are related to interest rate reductions, loan term extensions and short term payment forbearance as means to maximize collectability of troubled credits. If a portion of the TDR loan is uncollectible (including forgiveness of principal), the uncollectible amount will be charged off against the allowance at the time of the restructuring. In general, a borrower must make at least six consecutive timely payments before the Corporation would consider a return of a restructured loan to accruing status in accordance with FDIC guidelines regarding restoration of credits to accrual status. | |||||||||||||||||||||||||||||
The Corporation has, in accordance with generally accepted accounting principles and per recently enacted accounting standard updates, evaluated all loan modifications to determine the fair value impact of the underlying asset. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for collateral dependent loans, to the fair value of the collateral. | |||||||||||||||||||||||||||||
A summary of troubled debt restructurings for the periods indicated is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||
Modifications | Investment | Modifications | Investment | Modifications | Investment | ||||||||||||||||||||||||
Commercial real estate | — | $ | — | 3 | $ | 4,614 | 4 | $ | 5,799 | ||||||||||||||||||||
Commercial, financial and agricultural | 1 | 528 | 1 | 1,221 | 1 | 1,221 | |||||||||||||||||||||||
Commercial construction | — | — | 3 | 860 | 3 | 858 | |||||||||||||||||||||||
One to four family residential real estate | — | — | 1 | 102 | 1 | 102 | |||||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||
Total troubled debt restructurings | 1 | $ | 528 | 8 | $ | 6,797 | 9 | $ | 7,980 | ||||||||||||||||||||
A roll-forward of troubled debt restructuring during the three months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,563 | $ | 2,174 | $ | 858 | $ | 100 | $ | — | $ | 6,695 | |||||||||||||||||
Principal payments | (20 | ) | (25 | ) | — | (1 | ) | (46 | ) | ||||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transferred out of TDR | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,543 | $ | 1,221 | $ | 858 | $ | 99 | $ | — | $ | 5,721 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,169 | $ | — | $ | — | $ | 106 | $ | — | $ | 2,275 | |||||||||||||||||
Principal payments | (87 | ) | — | — | (14 | ) | — | (101 | ) | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 2,082 | $ | 528 | $ | — | $ | 92 | $ | — | $ | 2,702 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,732 | $ | 2,174 | $ | 858 | $ | 206 | $ | — | $ | 8,970 | |||||||||||||||||
Principal payments | (107 | ) | (25 | ) | — | (15 | ) | — | (147 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Tansfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 5,625 | $ | 1,749 | $ | 858 | $ | 191 | $ | — | $ | 8,423 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the three months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,645 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,826 | |||||||||||||||||
Principal payments | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 3,631 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,812 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,188 | $ | — | $ | — | $ | — | $ | — | $ | 2,188 | |||||||||||||||||
Principal payments | (47 | ) | — | — | — | — | (47 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | 27 | — | — | — | — | 27 | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 2,168 | $ | — | $ | — | $ | — | $ | — | $ | 2,168 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,833 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 8,014 | |||||||||||||||||
Principal payments | (61 | ) | — | — | — | — | (61 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | 27 | — | — | — | — | 27 | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Tansfers to nonaccrual | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 5,799 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 7,980 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,611 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,792 | |||||||||||||||||
Principal payments | (68 | ) | (25 | ) | — | (3 | ) | — | (96 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | 953 | — | — | — | 953 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,543 | $ | 1,221 | $ | 858 | $ | 99 | $ | — | $ | 5,721 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,162 | $ | — | $ | — | $ | 102 | $ | — | $ | 2,264 | |||||||||||||||||
Principal payments | (87 | ) | — | — | (14 | ) | — | (101 | ) | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 7 | — | — | 4 | — | 11 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 2,082 | $ | 528 | $ | — | $ | 92 | $ | — | $ | 2,702 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,773 | $ | 1,221 | $ | 858 | $ | 204 | $ | — | $ | 8,056 | |||||||||||||||||
Principal payments | (155 | ) | (25 | ) | — | (17 | ) | — | (197 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 7 | 953 | — | 4 | — | 964 | |||||||||||||||||||||||
Transfers out of TDR | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Transfer from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 5,625 | $ | 1,749 | $ | 858 | $ | 191 | $ | — | $ | 8,423 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (64 | ) | — | (2 | ) | (1 | ) | — | (67 | ) | |||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 3,695 | 1,221 | 860 | — | — | 5,776 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,631 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,812 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Principal payments | (426 | ) | — | — | — | — | (426 | ) | |||||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 919 | — | — | — | — | 919 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 2,168 | $ | — | $ | — | $ | — | $ | — | $ | 2,168 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (490 | ) | — | (2 | ) | (1 | ) | — | (493 | ) | |||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 4,614 | 1,221 | 860 | — | — | 6,695 | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 5,799 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 7,980 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the year ended December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (84 | ) | — | (2 | ) | (1 | ) | — | (87 | ) | |||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 3,695 | 1,221 | 860 | — | — | 5,776 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,611 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,792 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Principal payments | (432 | ) | — | — | — | — | (432 | ) | |||||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 919 | — | — | 102 | — | 1,021 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 2,162 | $ | — | $ | — | $ | 102 | $ | — | $ | 2,264 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (516 | ) | — | (2 | ) | (1 | ) | — | (519 | ) | |||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 4,614 | 1,221 | 860 | 102 | — | 6,797 | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 5,773 | $ | 1,221 | $ | 858 | $ | 204 | $ | — | $ | 8,056 | |||||||||||||||||
Insider Loans | |||||||||||||||||||||||||||||
The Bank, in the ordinary course of business, grants loans to the Corporation’s executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Loans outstanding, beginning of period | $ | 11,297 | $ | 8,827 | $ | 8,827 | |||||||||||||||||||||||
New loans | 496 | 3,911 | 3,401 | ||||||||||||||||||||||||||
Net activity on revolving lines of credit | (263 | ) | 233 | 17 | |||||||||||||||||||||||||
Principal payments | (1,442 | ) | (1,674 | ) | (1,490 | ) | |||||||||||||||||||||||
Loans outstanding, end of period | $ | 10,088 | $ | 11,297 | $ | 10,755 | |||||||||||||||||||||||
There were no loans to related parties classified substandard as of September 30, 2013, December 31, 2012 or September 30, 2012. In addition to the outstanding balances above, there were unfunded commitments of $5,000 to related parties at September 30, 2013. |
MORTGAGE_SERVICING_RIGHTS
MORTGAGE SERVICING RIGHTS | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
MORTGAGE SERVICING RIGHTS | ' | ||||||||||
MORTGAGE SERVICING RIGHTS | ' | ||||||||||
5. MORTGAGE SERVICING RIGHTS | |||||||||||
Mortgage servicing rights (“MSRs”) are recorded when loans are sold in the secondary market with servicing retained. As of September 30, 2013, the Corporation had obligations to service approximately $126 million of residential first mortgage loans. The valuation is based upon the net present value of the projected revenues over the expected life of the loans being serviced, as reduced by estimated internal costs to service these loans. The fair value of the capitalized servicing rights approximates the carrying value. The key economic assumptions used in determining the fair value of the mortgage servicing rights include an annual constant prepayment speed of 15.90 and a discount rate of 7.50% for September 30, 2013. | |||||||||||
The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands): | |||||||||||
Nine months ended | Year ended | Nine months ended | |||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Balance at beginning of period | $ | 638 | $ | 400 | $ | 400 | |||||
Additions from loans sold with servicing retained | 325 | 344 | 245 | ||||||||
Amortization | (129 | ) | (106 | ) | (74 | ) | |||||
Estimated Valuation of MSRs at end of period | $ | 834 | $ | 638 | $ | 571 |
BORROWINGS
BORROWINGS | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
BORROWINGS | ' | ||||||||||
BORROWINGS | ' | ||||||||||
6. BORROWINGS | |||||||||||
Borrowings consist of the following at September 30, 2013, December 31, 2012 and September 30, 2012 (dollars in thousands): | |||||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | $ | 35,000 | $ | 35,000 | $ | 35,000 | |||||
USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1% | 852 | 925 | 925 | ||||||||
$ | 35,852 | $ | 35,925 | $ | 35,925 | ||||||
The Federal Home Loan Bank borrowings are collateralized at September 30, 2013 by the following: a collateral agreement on the Corporation’s one to four family residential real estate loans with a book value of approximately $41.769 million; mortgage related and municipal securities with an amortized cost and estimated fair value of $8.424 million and $8.654 million, respectively; and Federal Home Loan Bank stock owned by the Bank totaling $3.060 million. Prepayment of the advances is subject to the provisions and conditions of the credit policy of the Federal Home Loan Bank of Indianapolis in effect as of September 30, 2013. | |||||||||||
The USDA Rural Development borrowing is collateralized by loans totaling $.130 million originated and held by the Corporation’s wholly owned subsidiary, First Rural Relending, and an assignment of a demand deposit account in the amount of $.790 million, and guaranteed by the Corporation. |
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
STOCK COMPENSATION PLANS | ' | ||||||||||||
STOCK COMPENSATION PLANS | ' | ||||||||||||
7. STOCK COMPENSATION PLANS | |||||||||||||
A summary of stock option transactions for the nine months ended September 30, 2013 and 2012, and the year ended December 31, 2012, is as follows: | |||||||||||||
September 30, | December 31, | September 30, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Outstanding shares at beginning of year | 242,152 | 392,152 | 392,152 | ||||||||||
Granted during the period | — | — | — | ||||||||||
Exercised during the period | — | — | — | ||||||||||
Expired / forfeited during the period | (5,000 | ) | — | — | |||||||||
Surrendered/Echanged for restricted stock | — | (150,000 | ) | (150,000 | ) | ||||||||
Outstanding shares at end of period | 237,152 | 242,152 | 242,152 | ||||||||||
Exercisable shares at end of period | 125,861 | 126,361 | 107,561 | ||||||||||
Weighted average exercise price per share at end of period | $ | 9.88 | $ | 9.88 | $ | 9.88 | |||||||
Shares available for grant at end of period | — | — | — | ||||||||||
There were no options granted in the first nine months of 2013 and 2012. | |||||||||||||
Following is a summary of the options outstanding and exercisable at September 30, 2013: | |||||||||||||
Weighted Average | |||||||||||||
Exercise | Number | Unvested | Remaining | ||||||||||
Price | Outstanding | Exercisable | Options | Contractual Life-Years | |||||||||
$ | 9.75 | 217,152 | 120,861 | 96,291 | 1.21 | ||||||||
$ | 10.65 | 10,000 | 2,500 | 7,500 | 3.21 | ||||||||
$ | 12.00 | 10,000 | 2,500 | 7,500 | 1.79 | ||||||||
237,152 | 125,861 | 111,291 | 1.32 | ||||||||||
The Corporation, in August 2012, granted 148,500 Restricted Stock Units (“RSU’s”) to outside members of the Board of Directors and Management. These RSU’s were granted at a market value of $7.91 and will vest equally over a four year term. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
INCOME TAXES | ' |
INCOME TAXES | ' |
8. INCOME TAXES | |
A valuation allowance is provided against deferred tax assets when it is more likely than not that some or all of the deferred tax asset will not be realized. The Corporation, as of September 30, 2013 had a net operating loss and tax credit carryforwards for tax purposes of approximately $19.2 million, and $2.1 million, respectively. The net operating loss carryforwards expire twenty years from the date they originated. These carryforwards, if not utilized, will begin to expire in the year 2023. A portion of the NOL, approximately $14.2 million, and all of the credit carryforwards are subject to the limitations for utilization as set forth in Section 382 of the Internal Revenue Code. The annual limitation is $1.400 million for the NOL and the equivalent value of tax credits, which is approximately $.476 million. These limitations for use were established in conjunction with the recapitalization of the Corporation in December 2004. | |
The Corporation has reported deferred tax assets of $7.953 million at September 30, 2013, which is net of a valuation allowance of $3.0 million. Management evaluated the deferred tax valuation allowance as of September 30, 2013 and determined that no adjustment to the valuation was warranted. The Corporation will continue to evaluate the future benefits from these carryforwards and at such time as it becomes “more likely than not” that they would be utilized prior to expiration will recognize the additional benefits as an adjustment to the valuation allowance. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||
9. FAIR VALUE MEASUREMENTS | ||||||||||||||||||||||
Fair value estimates, methods, and assumptions are set forth below for the Corporation’s financial instruments: | ||||||||||||||||||||||
Cash, cash equivalents, and interest-bearing deposits - The carrying values approximate the fair values for these assets. | ||||||||||||||||||||||
Securities - Fair values are based on quoted market prices where available. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||||||||||
Federal Home Loan Bank stock — Federal Home Loan Bank stock is carried at cost, which is its redeemable value and approximates its fair value, since the market for this stock is limited. | ||||||||||||||||||||||
Loans - Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as commercial, residential mortgage, and other consumer. The fair value of loans is calculated by discounting scheduled cash flows using discount rates reflecting the credit and interest rate risk inherent in the loan. | ||||||||||||||||||||||
The methodology in determining fair value of nonaccrual loans is to average them into the blended interest rate at 0% interest. This has the effect of decreasing the carrying amount below the risk-free rate amount and, therefore, discounts the estimated fair value. | ||||||||||||||||||||||
Impaired loans are measured at the estimated fair value of the expected future cash flows at the loan’s effective interest rate or the fair value of the collateral for loans which are collateral dependent. Therefore, the carrying values of impaired loans approximate the estimated fair values for these assets. | ||||||||||||||||||||||
Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits and savings, is equal to the amount payable on demand at the reporting date. The fair value of time deposits is based on the discounted value of contractual cash flows applying interest rates currently being offered on similar time deposits. | ||||||||||||||||||||||
Borrowings - Rates currently available for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. The fair value of borrowed funds due on demand is the amount payable at the reporting date. | ||||||||||||||||||||||
Accrued interest - The carrying amount of accrued interest approximates fair value. | ||||||||||||||||||||||
Off-balance-sheet instruments - The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the current interest rates, and the present creditworthiness of the counterparties. Since the differences in the current fees and those reflected to the off-balance-sheet instruments at year-end are immaterial, no amounts for fair value are presented. | ||||||||||||||||||||||
The following table presents information for financial instruments at September 30, 2013, December 31, 2012 and September 30, 2012 (dollars in thousands): | ||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | ||||||||||||||||||||
Level in Fair | Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||
Value Hierarchy | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||
Financial assets: | ||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 22,794 | $ | 22,794 | $ | 26,961 | $ | 26,961 | $ | 47,405 | $ | 47,405 | |||||||||
Interest-bearing deposits | Level 2 | 10 | 10 | 10 | 10 | 10 | 10 | |||||||||||||||
Securities available for sale | Level 2 | 48,096 | 48,096 | 43,799 | 43,799 | 42,476 | 42,476 | |||||||||||||||
Federal Home Loan Bank stock | Level 2 | 3,060 | 3,060 | 3,060 | 3,060 | 3,060 | 3,060 | |||||||||||||||
Net loans | Level 3 | 467,536 | 460,009 | 443,959 | 439,239 | 428,772 | 425,406 | |||||||||||||||
Accrued interest receivable | Level 3 | 1,536 | 1,536 | 1,319 | 1,319 | 1,574 | 1,574 | |||||||||||||||
Total financial assets | $ | 543,032 | $ | 535,505 | $ | 519,108 | $ | 514,388 | $ | 523,297 | $ | 519,931 | ||||||||||
Financial liabilities: | ||||||||||||||||||||||
Deposits | Level 2 | $ | 461,688 | $ | 459,862 | $ | 434,557 | $ | 434,227 | $ | 439,363 | $ | 439,139 | |||||||||
Borrowings | Level 2 | 35,852 | 35,548 | 35,925 | 35,729 | 35,925 | 35,681 | |||||||||||||||
Accrued interest payable | Level 2 | 200 | 200 | 214 | 214 | 238 | 238 | |||||||||||||||
Total financial liabilties | $ | 497,740 | $ | 495,610 | $ | 470,696 | $ | 470,170 | $ | 475,526 | $ | 475,058 | ||||||||||
Limitations- Fair value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-and off-balance-sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, other assets, and other liabilities. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. | ||||||||||||||||||||||
The following is information about the Corporation’s assets and liabilities measured at fair value on a recurring basis at September 30, 2013, and the valuation techniques used by the Corporation to determine those fair values. | ||||||||||||||||||||||
Level 1: In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Corporation has the ability to access. | ||||||||||||||||||||||
Level 2: Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets and liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. | ||||||||||||||||||||||
Level 3: Level 3 inputs are unobservable inputs, including inputs available in situations where there is little, if any, market activity for the related asset or liability. | ||||||||||||||||||||||
The fair value of all investment securities at September 30, 2013 and September 30, 2012 were based on level 2 inputs. There are no other assets or liabilities measured on a recurring basis at fair value. For additional information regarding investment securities, please refer to “Note 3 Investment Securities.” | ||||||||||||||||||||||
The Corporation had no Level 3 assets or liabilities on a recurring basis as of September 30, 2013, December 31, 2012 or September 30, 2012. | ||||||||||||||||||||||
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Corporation’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. | ||||||||||||||||||||||
The Corporation also has assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include loans and other real estate owned. The Corporation has estimated the fair values of these assets using Level 3 inputs, specifically discounted cash flow projections. | ||||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2013 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | Total Losses for | ||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Three Months Ended | Nine Months Ended | |||||||||||||||||
(dollars in thousands) | September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | September 30, 2013 | September 30, 2013 | ||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 4,313 | $ | — | $ | — | $ | 4,313 | $ | 531 | $ | 949 | ||||||||||
Other real estate owned | 2,568 | — | — | 2,568 | 57 | 146 | ||||||||||||||||
$ | 588 | $ | 1,095 | |||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | |||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Year Ended | ||||||||||||||||||
(dollars in thousands) | December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | December 31, 2012 | |||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 4,687 | $ | — | $ | — | $ | 4,687 | $ | 1,151 | ||||||||||||
Other real estate owned | 3,212 | — | — | 3,212 | 489 | |||||||||||||||||
$ | 1,640 | |||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2012 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | Total Losses for | ||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Three Months Ended | Nine Months Ended | |||||||||||||||||
(dollars in thousands) | September 30, 2012 | (Level 1) | (Level 2) | (Level 3) | September 30, 2012 | September 30, 2012 | ||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 5,290 | $ | — | $ | — | $ | 5,290 | $ | 53 | $ | 1,065 | ||||||||||
Other real estate owned | 3,511 | — | — | 3,511 | 265 | 450 | ||||||||||||||||
$ | 318 | $ | 1,515 | |||||||||||||||||||
The Corporation had no investments subject to fair value measurement on a nonrecurring basis. | ||||||||||||||||||||||
Impaired loans categorized as Level 3 assets consist of non-homogeneous loans that are considered impaired. The Corporation estimates the fair value of the loans based on the present value of expected future cash flows using management’s best estimate of key assumptions. These assumptions include future payment ability, timing of payment streams, and estimated realizable values of available collateral (typically based on outside appraisals). |
SHAREHOLDERS_EQUITY
SHAREHOLDER'S EQUITY | 9 Months Ended |
Sep. 30, 2013 | |
SHAREHOLDER'S EQUITY | ' |
SHAREHOLDER'S EQUITY | ' |
10. SHAREHOLDER’S EQUITY | |
Participation in the TARP Capital Purchase Program | |
On April 24, 2009, the Corporation entered into and closed a Letter Agreement, including the Securities Purchase Agreement-Standard Terms (collectively, the “Securities Purchase Agreement”), related to the TARP Capital Purchase Program (“CPP”). Pursuant to the Securities Purchase Agreement, the Corporation issued and sold to the Treasury (i) 11,000 shares of the Corporation’s Series A Preferred Shares, and (ii) the Warrant to purchase 379,310 shares of the Corporation’s Common Shares, at an exercise price of $4.35 per share (subject to certain anti-dilution and other adjustments), for an aggregate purchase price of $11.000 million in cash. | |
Amounts recorded for Preferred Stock and Warrant Common Stock were estimated based on an allocation of the total proceeds from the issuance on the relative fair values of both instruments. Fair value of the Preferred Stock was determined based on assumptions regarding the discount rate (market rate) on the Preferred Stock (estimated 12%). Fair value of the Warrant Common Stock is based on the value of the underlying Preferred Stock based on an estimate for a three year term. The allocation of the proceeds received resulted in the recording of a discount on the Preferred Stock and a premium on the Warrant Common Stock. The discount on the preferred was accreted on an effective yield basis over a three-year term. The allocated carrying value of the Preferred Stock and Warrant Common Stock on the date of issuance (based on their relative fair values) was $10.382 million and $.618 million, respectively. Cumulative dividends on the Preferred Stock are payable at 5% annum for the first five years and at a rate of 9% per annum thereafter on the liquidation preference of $1,000 per share. The Corporation is prohibited from paying any dividend with respect to shares of common stock unless all accrued and unpaid dividends are paid in full on the Preferred Stock for all past dividend periods. The Preferred Stock is non-voting, other than class voting rights on matters that could adversely affect the Preferred Stock. The Preferred Stock may be redeemed at any time with regulatory approval. The preferred stock qualifies as Tier 1 Capital for regulatory purposes at the holding company. The preferred stock was auctioned by the Treasury in 2012 and is now held by various investors. The warrants were purchased from the Treasury in December 2012 at a cost of $1.300 million. | |
In the 2013 second quarter, the Corporation redeemed $7.0 million of the $11.0 million outstanding preferred stock at par. |
COMMITMENTS_CONTINGENCIES_AND_
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | ' | ||||||||||
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | ' | ||||||||||
11. COMMITMENTS, CONTINGENCIES AND CREDIT RISK | |||||||||||
Financial Instruments With Off-Balance-Sheet Risk | |||||||||||
The Corporation is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||||
The Corporation’s exposure to credit loss, in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit, is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. These commitments are as follows (dollars in thousands): | |||||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Commitments to extend credit: | |||||||||||
Variable rate | $ | 32,061 | $ | 39,782 | $ | 38,068 | |||||
Fixed rate | 24,536 | 18,427 | 21,247 | ||||||||
Standby letters of credit - Variable rate | 4,741 | 2,879 | 3,816 | ||||||||
Credit card commitments - Fixed rate | 3,162 | 3,060 | 3,161 | ||||||||
$ | 64,500 | $ | 64,148 | $ | 66,292 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Corporation evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Corporation upon extension of credit, is based on management’s credit evaluation of the party. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. | |||||||||||
Standby letters of credit are conditional commitments issued by the Corporation to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The commitments are structured to allow for 100% collateralization on all standby letters of credit. | |||||||||||
Credit card commitments are commitments on credit cards issued by the Corporation’s subsidiary and serviced by other companies. These commitments are unsecured. | |||||||||||
Legal Proceedings and Contingencies | |||||||||||
In the normal course of business, the Corporation is involved in various legal proceedings. For expanded discussion on the Corporation’s legal proceedings, see Part II, Item 1, “Legal Proceedings” in this report. | |||||||||||
Concentration of Credit Risk | |||||||||||
The Bank grants commercial, residential, agricultural, and consumer loans throughout Michigan. The Bank’s most prominent concentration in the loan portfolio relates to commercial real estate loans to operators of nonresidential buildings. This concentration at September 30, 2013 represents $101.406 million, or 28.68%, compared to $88.505 million, or 26.83%, of the commercial loan portfolio on September 30, 2012. The remainder of the commercial loan portfolio is diversified in such categories as hospitality and tourism, real estate agents and managers, new car dealers, gaming, petroleum, forestry, agriculture and construction. Due to the diversity of the Bank’s locations, the ability of debtors of residential and consumer loans to honor their obligations is not tied to any particular economic sector. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The unaudited condensed consolidated financial statements of Mackinac Financial Corporation (the “Corporation”) have been prepared in accordance with generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. The unaudited consolidated financial statements and footnotes thereto should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
In order to properly reflect some categories of other income and other expenses, reclassifications of expense and income items have been made to prior period numbers. The “net” other income and other expenses was not changed due to these reclassifications. | |
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 revenue and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, and the valuation of deferred tax assets, mortgage servicing rights and other real estate held for sale. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses | |
The allowance for loan losses includes specific allowances related to commercial loans, when they have been judged to be impaired. A loan is impaired when, based on current information, it is probable that the Corporation will not collect all amounts due in accordance with the contractual terms of the loan agreement. These specific allowances are based on discounted cash flows of expected future payments using the loan’s initial effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |
The Corporation continues to maintain a general allowance for loan losses for loans not considered impaired. The allowance for loan losses is maintained at a level which management believes is adequate to provide for possible loan losses. Management periodically evaluates the adequacy of the allowance using the Corporation’s past loan loss experience, known and inherent risks in the portfolio, composition of the portfolio, current economic conditions, and other factors. The allowance does not include the effects of expected losses related to future events or future changes in economic conditions. This evaluation is inherently subjective since it requires material estimates that may be susceptible to significant change. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely. In addition, various regulatory agencies periodically review the allowance for loan losses. These agencies may require additions to the allowance for loan losses based on their judgments of collectability. | |
In management’s opinion, the allowance for loan losses is adequate to cover probable losses relating to specifically identified loans, as well as probable losses inherent in the balance of the loan portfolio as of the balance sheet date. | |
Stock Compensation Plans | ' |
Stock Compensation Plans | |
The Corporation has three stock compensation plans, which are now expired. One plan was approved during 2000 and applies to officers, employees, and nonemployee directors. This plan was amended as a part of the December 2004 stock offering and recapitalization. The amendment, approved by shareholders, increased the shares available under this plan by 428,587 shares from the original 25,000 (adjusted for the 1:20 reverse stock split), to a total authorized share balance of 453,587. The other two plans, one for officers and employees and the other for nonemployee directors, were approved in 1997. A total of 30,000 shares (adjusted for the 1:20 split), were made available for grant under these plans. Options under all of the plans were granted at the discretion of a committee of the Corporation’s Board of Directors. Options to purchase shares of the Corporation’s stock were granted at a price equal to the market price of the stock at the date of grant. The committee determined the vesting of the options when they were granted as established under the plan. | |
On May 22, 2012, the Corporation’s shareholders approved the Mackinac Financial Corporation 2012 Incentive Compensation Plan, under which current and prospective employees, non-employee directors and consultants may be awarded incentive stock options, non-statutory stock options, shares of restricted stock units (“RSUs”), or stock appreciation rights. The aggregate number of shares of the Corporation’s common stock issuable under the plan is 757,848. | |
On August 31, 2012, the Corporation granted 148,500 RSUs to certain members of management and all outside directors at the market value of the stock, which was $7.91. The RSUs were awarded at no cost to the employee and vest ratably over a four-year period. Compensation cost to be recognized over the four-year vesting period is $1.175 million. As of September 30, 2013, 37,125 of the RSUs were vested and issued. The unrecognized compensation expense was $.851 million as of September 30, 2013. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
EARNINGS PER SHARE | ' | |||||||||||||
Schedule showing the computation of basic and diluted earnings per share | ' | |||||||||||||
The following shows the computation of basic and diluted earnings per share for the three and nine months ended September 30, 2013 and 2012 (dollars in thousands, except per share data): | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Numerator): | ||||||||||||||
Net income | $ | 896 | $ | 1,034 | $ | 2,969 | $ | 6,027 | ||||||
Preferred stock dividends and accretion of discount | 50 | 137 | 250 | 491 | ||||||||||
Net income available to common shareholders | $ | 846 | $ | 897 | $ | 2,719 | $ | 5,536 | ||||||
(Denominator): | ||||||||||||||
Weighted average shares outstanding - basic | 5,562,835 | 4,722,029 | 5,559,108 | 3,857,002 | ||||||||||
Dilutive effect of common stock warrants | — | 136,186 | — | 119,850 | ||||||||||
Weighted average shares outstanding - diluted | 5,562,835 | 4,858,215 | 5,559,108 | 3,976,852 | ||||||||||
Income per common share*: | ||||||||||||||
Basic | $ | 0.15 | $ | 0.21 | $ | 0.49 | $ | 1.3 | ||||||
Diluted | $ | 0.15 | $ | 0.2 | $ | 0.49 | $ | 1.25 | ||||||
*Earnings per share data for 2012 restated for common stock issuance |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
INVESTMENT SECURITIES | ' | |||||||||||||
Schedule of amortized cost and estimated fair value of investment securities available for sale | ' | |||||||||||||
The amortized cost and estimated fair value of investment securities available for sale as of September 30, 2013, December 31, 2012 and September 30, 2012 are as follows (dollars in thousands): | ||||||||||||||
Gross | Gross | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | |||||||||||
Cost | Gains | Losses | Fair Value | |||||||||||
September 30, 2013 | ||||||||||||||
US Agencies - MBS | $ | 7,236 | $ | 315 | $ | — | $ | 7,551 | ||||||
US Agencies | 16,003 | 66 | (336 | ) | 15,733 | |||||||||
Corporate Bonds | 18,451 | 192 | (4 | ) | 18,639 | |||||||||
Obligations of states and political subdivisions | 5,876 | 297 | — | 6,173 | ||||||||||
Total securities available for sale | $ | 47,566 | $ | 870 | $ | (340 | ) | $ | 48,096 | |||||
December 31, 2012 | ||||||||||||||
US Agencies - MBS | $ | 7,962 | $ | 412 | $ | — | $ | 8,374 | ||||||
US Agencies | 10,267 | 137 | — | 10,404 | ||||||||||
Corporate Bonds | 18,763 | 237 | (23 | ) | 18,977 | |||||||||
Obligations of states and political subdivisions | 5,407 | 637 | — | 6,044 | ||||||||||
Total securities available for sale | $ | 42,399 | $ | 1,423 | $ | (23 | ) | $ | 43,799 | |||||
September 30, 2012 | ||||||||||||||
US Agencies - MBS | $ | 8,282 | $ | 388 | $ | — | $ | 8,670 | ||||||
US Agencies | 10,303 | 154 | — | 10,457 | ||||||||||
Corporate Bonds | 17,180 | 232 | (9 | ) | 17,403 | |||||||||
Obligations of states and political subdivisions | 5,391 | 557 | (2 | ) | 5,946 | |||||||||
Total securities available for sale | $ | 41,156 | $ | 1,331 | $ | (11 | ) | $ | 42,476 |
LOANS_Tables
LOANS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||
Schedule of composition of loans | ' | ||||||||||||||||||||||||||||
The composition of loans is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Commercial real estate | $ | 257,961 | $ | 244,966 | $ | 224,061 | |||||||||||||||||||||||
Commercial, financial, and agricultural | 79,511 | 80,646 | 84,073 | ||||||||||||||||||||||||||
One to four family residential real estate | 98,770 | 87,948 | 86,643 | ||||||||||||||||||||||||||
Construction : | |||||||||||||||||||||||||||||
Consumer | 5,734 | 7,465 | 6,803 | ||||||||||||||||||||||||||
Commerical | 16,054 | 17,229 | 21,757 | ||||||||||||||||||||||||||
Consumer | 14,465 | 10,923 | 10,621 | ||||||||||||||||||||||||||
Total loans | $ | 472,495 | $ | 449,177 | $ | 433,958 | |||||||||||||||||||||||
Schedule of the allowance for loan losses | ' | ||||||||||||||||||||||||||||
An analysis of the allowance for loan losses for nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Balance at beginning of period | $ | 5,218 | $ | 5,251 | $ | 5,251 | |||||||||||||||||||||||
Recoveries on loans previously charged off | 154 | 278 | 231 | ||||||||||||||||||||||||||
Loans charged off | (1,263 | ) | (1,256 | ) | (1,091 | ) | |||||||||||||||||||||||
Provision | 850 | 945 | 795 | ||||||||||||||||||||||||||
Balance at end of period | $ | 4,959 | $ | 5,218 | $ | 5,186 | |||||||||||||||||||||||
Schedule of breakdown of the allowance for loan losses and recorded balances in loans | ' | ||||||||||||||||||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2013 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,661 | $ | 1,090 | $ | 97 | $ | 877 | $ | — | $ | 13 | $ | 439 | $ | 5,177 | |||||||||||||
Charge-offs | (132 | ) | (476 | ) | — | (25 | ) | — | (14 | ) | — | (647 | ) | ||||||||||||||||
Recoveries | 23 | 20 | — | 6 | 1 | 4 | — | 54 | |||||||||||||||||||||
Provision | 3 | 522 | (16 | ) | 44 | (1 | ) | 15 | (192 | ) | 375 | ||||||||||||||||||
Ending balance ALLR | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Charge-offs | (588 | ) | (552 | ) | — | (38 | ) | — | (85 | ) | — | (1,263 | ) | ||||||||||||||||
Recoveries | 64 | 53 | 2 | 17 | 1 | 17 | — | 154 | |||||||||||||||||||||
Provision | (188 | ) | 963 | (46 | ) | (57 | ) | (1 | ) | 86 | 93 | 850 | |||||||||||||||||
Ending balance ALLR | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
At September 30,2013 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 257,961 | $ | 79,511 | $ | 16,054 | $ | 98,770 | $ | 5,734 | $ | 14,465 | $ | — | $ | 472,495 | |||||||||||||
Ending balance ALLR | (2,555 | ) | (1,156 | ) | (81 | ) | (902 | ) | — | (18 | ) | (247 | ) | (4,959 | ) | ||||||||||||||
Net loans | $ | 255,406 | $ | 78,355 | $ | 15,973 | $ | 97,868 | $ | 5,734 | $ | 14,447 | $ | (247 | ) | $ | 467,536 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,407 | $ | 802 | $ | 6 | $ | 246 | $ | — | $ | 18 | $ | — | $ | 2,479 | |||||||||||||
Collectively evaluated | 1,148 | 354 | 75 | 656 | — | — | 247 | 2,480 | |||||||||||||||||||||
Total | $ | 2,555 | $ | 1,156 | $ | 81 | $ | 902 | $ | — | $ | 18 | $ | 247 | $ | 4,959 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 13,475 | $ | 7,638 | $ | 798 | $ | 450 | $ | — | $ | 35 | $ | — | $ | 22,396 | |||||||||||||
Collectively evaluated | 244,486 | 71,873 | 15,256 | 98,320 | 5,734 | 14,430 | — | 450,099 | |||||||||||||||||||||
Total | $ | 257,961 | $ | 79,511 | $ | 16,054 | $ | 98,770 | $ | 5,734 | $ | 14,465 | $ | — | $ | 472,495 | |||||||||||||
Impaired loans, by definition, are individually evaluated. | |||||||||||||||||||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,823 | $ | 1,079 | $ | 207 | $ | 1,114 | $ | — | $ | — | $ | 28 | $ | 5,251 | |||||||||||||
Charge-offs | (729 | ) | (40 | ) | (6 | ) | (399 | ) | — | (82 | ) | — | (1,256 | ) | |||||||||||||||
Recoveries | 52 | 201 | — | 7 | — | 18 | — | 278 | |||||||||||||||||||||
Provision | 1,121 | (548 | ) | (76 | ) | 258 | — | 64 | 126 | 945 | |||||||||||||||||||
Ending balance ALLR | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 244,966 | $ | 80,646 | $ | 17,229 | $ | 87,948 | $ | 7,465 | $ | 10,923 | $ | — | $ | 449,177 | |||||||||||||
Ending balance ALLR | (3,267 | ) | (692 | ) | (125 | ) | (980 | ) | — | — | (154 | ) | (5,218 | ) | |||||||||||||||
Net loans | $ | 241,699 | $ | 79,954 | $ | 17,104 | $ | 86,968 | $ | 7,465 | $ | 10,923 | $ | (154 | ) | $ | 443,959 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,662 | $ | 155 | $ | 10 | $ | 112 | $ | — | $ | — | $ | — | $ | 1,939 | |||||||||||||
Collectively evaluated | 1,605 | 537 | 115 | 868 | — | — | 154 | 3,279 | |||||||||||||||||||||
Total | $ | 3,267 | $ | 692 | $ | 125 | $ | 980 | $ | — | $ | — | $ | 154 | $ | 5,218 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 22,910 | $ | 6,070 | $ | 858 | $ | 796 | $ | — | $ | — | $ | — | $ | 30,634 | |||||||||||||
Collectively evaluated | 222,056 | 74,576 | 16,371 | 87,152 | 7,465 | 10,923 | — | 418,543 | |||||||||||||||||||||
Total | $ | 244,966 | $ | 80,646 | $ | 17,229 | $ | 87,948 | $ | 7,465 | $ | 10,923 | $ | — | $ | 449,177 | |||||||||||||
A breakdown of the allowance for loan losses and recorded balances in loans at September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
real estate | agricultural | construction | real estate | construction | Consumer | Unallocated | Total | ||||||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,784 | $ | 888 | $ | 218 | $ | 1,083 | $ | — | $ | — | $ | 110 | $ | 5,083 | |||||||||||||
Charge-offs | (36 | ) | — | — | (23 | ) | — | (1 | ) | — | (60 | ) | |||||||||||||||||
Recoveries | 10 | 1 | — | — | — | 2 | — | 13 | |||||||||||||||||||||
Provision | 90 | (114 | ) | (33 | ) | 177 | — | (1 | ) | 31 | 150 | ||||||||||||||||||
Ending balance ALLR | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Allowance for loan loss reserve: | |||||||||||||||||||||||||||||
Beginning balance ALLR | $ | 2,823 | $ | 1,079 | $ | 207 | $ | 1,114 | $ | — | $ | — | $ | 28 | $ | 5,251 | |||||||||||||
Charge-offs | (726 | ) | (24 | ) | (6 | ) | (319 | ) | — | (16 | ) | — | (1,091 | ) | |||||||||||||||
Recoveries | 27 | 188 | — | 5 | — | 11 | — | 231 | |||||||||||||||||||||
Provision | 724 | (468 | ) | (16 | ) | 437 | — | 5 | 113 | 795 | |||||||||||||||||||
Ending balance ALLR | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
At September 30, 2012 | |||||||||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending balance | $ | 224,061 | $ | 84,073 | $ | 21,757 | $ | 86,643 | $ | 6,803 | $ | 10,621 | $ | — | $ | 433,958 | |||||||||||||
Ending balance ALLR | (2,848 | ) | (775 | ) | (185 | ) | (1,237 | ) | — | — | (141 | ) | (5,186 | ) | |||||||||||||||
Net loans | $ | 221,213 | $ | 83,298 | $ | 21,572 | $ | 85,406 | $ | 6,803 | $ | 10,621 | $ | (141 | ) | $ | 428,772 | ||||||||||||
Ending balance ALLR: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 1,198 | $ | 145 | $ | 11 | $ | 277 | $ | — | $ | — | $ | — | $ | 1,631 | |||||||||||||
Collectively evaluated | 1,650 | 630 | 174 | 960 | — | — | 141 | 3,555 | |||||||||||||||||||||
Total | $ | 2,848 | $ | 775 | $ | 185 | $ | 1,237 | $ | — | $ | — | $ | 141 | $ | 5,186 | |||||||||||||
Ending balance Loans: | |||||||||||||||||||||||||||||
Individually evaluated | $ | 22,571 | $ | 5,997 | $ | 858 | $ | 1,248 | $ | — | $ | 10 | $ | — | $ | 30,684 | |||||||||||||
Collectively evaluated | 201,490 | 78,076 | 20,899 | 85,395 | 6,803 | 10,611 | — | 403,274 | |||||||||||||||||||||
Total | $ | 224,061 | $ | 84,073 | $ | 21,757 | $ | 86,643 | $ | 6,803 | $ | 10,621 | $ | — | $ | 433,958 | |||||||||||||
Schedule of breakdown of loans by risk category | ' | ||||||||||||||||||||||||||||
Below is a breakdown of loans by risk category as of September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 2,240 | $ | 23,675 | $ | 88,105 | $ | 123,373 | $ | 16,117 | $ | 4,451 | $ | — | $ | — | $ | 257,961 | |||||||||||
Commercial, financial and agricultural | 4,260 | 5,108 | 22,263 | 41,851 | 3,746 | 2,094 | 189 | — | 79,511 | ||||||||||||||||||||
Commercial construction | — | 676 | 5,283 | 6,167 | 753 | 402 | — | 2,773 | 16,054 | ||||||||||||||||||||
One to four family residential real estate | — | 1,951 | 2,186 | 4,522 | — | 6 | — | 90,105 | 98,770 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 5,734 | 5,734 | ||||||||||||||||||||
Consumer | — | 102 | 34 | 632 | — | — | — | 13,697 | 14,465 | ||||||||||||||||||||
Total loans | $ | 6,500 | $ | 31,512 | $ | 117,871 | $ | 176,545 | $ | 20,616 | $ | 6,953 | $ | 189 | $ | 112,309 | $ | 472,495 | |||||||||||
Below is a breakdown of loans by risk category as of December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 4,807 | $ | 20,491 | $ | 84,164 | $ | 113,379 | $ | 16,754 | $ | 5,189 | $ | 182 | $ | — | $ | 244,966 | |||||||||||
Commercial, financial and agricultural | 5,026 | 3,936 | 23,821 | 41,785 | 4,296 | 1,782 | — | — | 80,646 | ||||||||||||||||||||
Commercial construction | — | 1,038 | 5,103 | 5,784 | 759 | 1,077 | — | 3,468 | 17,229 | ||||||||||||||||||||
One-to-four family residential real estate | — | 1,969 | 3,635 | 4,791 | — | 646 | — | 76,907 | 87,948 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 7,465 | 7,465 | ||||||||||||||||||||
Consumer | — | 359 | 71 | 257 | — | 6 | — | 10,230 | 10,923 | ||||||||||||||||||||
Total loans | $ | 9,833 | $ | 27,793 | $ | 116,794 | $ | 165,996 | $ | 21,809 | $ | 8,700 | $ | 182 | $ | 98,070 | $ | 449,177 | |||||||||||
Below is a breakdown of loans by risk category as of September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
-1 | -2 | -3 | -4 | -5 | -6 | -7 | Rating | ||||||||||||||||||||||
Excellent | Good | Average | Acceptable | Sp. Mention | Substandard | Doubtful | Unassigned | Total | |||||||||||||||||||||
Commercial real estate | $ | 3,372 | $ | 19,939 | $ | 72,647 | $ | 105,736 | $ | 16,784 | $ | 5,374 | $ | 209 | $ | — | $ | 224,061 | |||||||||||
Commercial, financial and agricultural | 4,306 | 5,517 | 25,932 | 42,097 | 4,320 | 1,901 | — | — | 84,073 | ||||||||||||||||||||
Commercial construction | — | 988 | 5,039 | 9,995 | 761 | 1,092 | — | 3,882 | 21,757 | ||||||||||||||||||||
One to four family residential real estate | — | 1,979 | 3,586 | 4,703 | — | 709 | — | 75,666 | 86,643 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 6,803 | 6,803 | ||||||||||||||||||||
Consumer | — | 362 | 71 | 233 | — | 3 | — | 9,952 | 10,621 | ||||||||||||||||||||
Total loans | $ | 7,678 | $ | 28,785 | $ | 107,275 | $ | 162,764 | $ | 21,865 | $ | 9,079 | $ | 209 | $ | 96,303 | $ | 433,958 | |||||||||||
Summary of impaired loans and their effect on interest income | ' | ||||||||||||||||||||||||||||
The following is a summary of impaired loans and their effect on interest income (dollars in thousands): | |||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
QTD | YTD | Interest Income | Interest Income | Interest Income | Interest Income | ||||||||||||||||||||||||
Nonaccrual | Accrual | Average | Average | Related | Recognized | on | Recognized | on | |||||||||||||||||||||
Basis | Basis | Investment | Investment | Valuation Reserve | During Impairment | Accrual Basis | During Impairment | Accrual Basis | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 238 | $ | — | $ | 412 | $ | 501 | $ | — | $ | — | $ | — | $ | — | $ | 26 | |||||||||||
Commercial, financial and agricultural | — | — | 147 | 243 | — | — | 3 | — | 9 | ||||||||||||||||||||
Commercial construction | — | — | — | 193 | — | — | — | — | 3 | ||||||||||||||||||||
One to four family residential real estate | 67 | — | 86 | 140 | — | — | 2 | — | 7 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 10 | — | 9 | 4 | — | — | — | — | — | ||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,589 | $ | — | $ | 2,581 | $ | 2,557 | $ | 1,272 | $ | — | $ | 42 | $ | — | $ | 102 | |||||||||||
Commercial, financial and agricultural | 767 | — | 741 | 373 | 33 | — | 5 | — | 11 | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
One to four family residential real estate | 642 | — | 560 | 396 | 250 | — | 8 | — | 19 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,827 | $ | — | $ | 2,993 | $ | 3,058 | $ | 1,272 | $ | — | $ | 42 | $ | — | $ | 128 | |||||||||||
Commercial, financial and agricultural | 767 | — | 888 | 616 | 33 | — | 8 | — | 20 | ||||||||||||||||||||
Commercial construction | — | — | — | 193 | — | — | — | — | 3 | ||||||||||||||||||||
One to four family residential real estate | 709 | — | 646 | 536 | 250 | — | 10 | — | 26 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 10 | — | 9 | 4 | — | — | — | — | — | ||||||||||||||||||||
Total | $ | 4,313 | $ | — | $ | 4,536 | $ | 4,407 | $ | 1,555 | $ | — | $ | 60 | $ | — | $ | 177 | |||||||||||
Interest Income | Interest Income | ||||||||||||||||||||||||||||
For the Year Ended: | Nonaccrual | Accrual | Average | Related | Recognized | on | |||||||||||||||||||||||
December 31, 2012 | Basis | Basis | Investment | Valuation Reserve | During Impairment | Accrual Basis | |||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 132 | $ | — | $ | 1,550 | $ | — | $ | — | $ | 37 | |||||||||||||||||
Commercial, financial and agricultural | — | — | 1,063 | — | — | 19 | |||||||||||||||||||||||
Commercial construction | 675 | — | 675 | — | — | 15 | |||||||||||||||||||||||
One to four family residential real estate | 230 | — | 1,074 | — | — | 41 | |||||||||||||||||||||||
Consumer construction | — | — | 16 | — | — | 1 | |||||||||||||||||||||||
Consumer | — | — | 3 | — | — | — | |||||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 2,939 | $ | — | $ | 3,173 | $ | 1,315 | $ | 54 | $ | 177 | |||||||||||||||||
Commercial, financial and agricultural | 436 | — | 504 | 109 | — | 17 | |||||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | |||||||||||||||||||||||
One to four family residential real estate | 275 | — | 281 | 95 | — | 6 | |||||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,071 | $ | — | $ | 4,723 | $ | 1,315 | $ | 54 | $ | 214 | |||||||||||||||||
Commercial, financial and agricultural | 436 | — | 1,567 | 109 | — | 36 | |||||||||||||||||||||||
Commercial construction | 675 | — | 675 | — | — | 15 | |||||||||||||||||||||||
One to four family residential real estate | 505 | — | 1,355 | 95 | — | 47 | |||||||||||||||||||||||
Consumer construction | — | — | 16 | — | — | 1 | |||||||||||||||||||||||
Consumer | — | — | 3 | — | — | — | |||||||||||||||||||||||
Total | $ | 4,687 | $ | — | $ | 8,339 | $ | 1,519 | $ | 54 | $ | 313 | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
QTD | YTD | Interest Income | Interest Income | Interest Income | Interest Income | ||||||||||||||||||||||||
Nonaccrual | Accrual | Average | Average | Related | Recognized | on | Recognized | on | |||||||||||||||||||||
Basis | Basis | Investment | Investment | Valuation Reserve | During Impairment | Accrual Basis | During Impairment | Accrual Basis | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||
With no valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 530 | $ | — | $ | 533 | $ | 1,135 | $ | — | $ | — | $ | 9 | $ | — | $ | 32 | |||||||||||
Commercial, financial and agricultural | — | — | — | 1,063 | — | — | — | — | 18 | ||||||||||||||||||||
Commercial construction | 676 | — | 676 | 676 | — | — | 5 | — | 9 | ||||||||||||||||||||
One to four family residential real estate | 156 | — | 384 | 818 | — | — | 4 | — | 28 | ||||||||||||||||||||
Consumer construction | 15 | — | 15 | 16 | — | — | — | — | 1 | ||||||||||||||||||||
Consumer | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
With a valuation reserve: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,161 | $ | — | $ | 3,177 | $ | 3,663 | $ | 937 | $ | 17 | $ | 42 | $ | 54 | $ | 136 | |||||||||||
Commercial, financial and agricultural | 287 | — | 281 | 398 | 90 | — | 4 | — | 12 | ||||||||||||||||||||
Commercial construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
One to four family residential real estate | 462 | — | 267 | 463 | 188 | — | 8 | — | 10 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Consumer | 3 | — | 1 | 3 | 3 | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||
Commercial real estate | $ | 3,691 | $ | — | $ | 3,710 | $ | 4,798 | $ | 937 | $ | 17 | $ | 51 | $ | 54 | $ | 168 | |||||||||||
Commercial, financial and agricultural | 287 | — | 281 | 1,461 | 90 | — | 4 | — | 30 | ||||||||||||||||||||
Commercial construction | 676 | — | 676 | 676 | — | — | 5 | — | 9 | ||||||||||||||||||||
One to four family residential real estate | 618 | — | 651 | 1,281 | 188 | — | 12 | — | 38 | ||||||||||||||||||||
Consumer construction | 15 | — | 15 | 16 | — | — | — | — | 1 | ||||||||||||||||||||
Consumer | 3 | — | 1 | 3 | 3 | — | — | — | — | ||||||||||||||||||||
Total | $ | 5,290 | $ | — | $ | 5,334 | $ | 8,235 | $ | 1,218 | $ | 17 | $ | 72 | $ | 54 | $ | 246 | |||||||||||
Summary of past due loans | ' | ||||||||||||||||||||||||||||
A summary of past due loans at September 30, 2013, December 31, 2012 and September 30, 2012 is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
30-89 days | 90+ days | 30-89 days | 90+ days | 30-89 days | 90+ days | ||||||||||||||||||||||||
Past Due | Past Due/ | Past Due | Past Due/ | Past Due | Past Due/ | ||||||||||||||||||||||||
(accruing) | Nonaccrual | Total | (accruing) | Nonaccrual | Total | (accruing) | Nonaccrual | Total | |||||||||||||||||||||
Commercial real estate | $ | — | $ | 2,827 | $ | 2,827 | $ | 575 | $ | 3,071 | $ | 3,646 | $ | 427 | $ | 3,691 | $ | 4,118 | |||||||||||
Commercial, financial and agricultural | 100 | 767 | 867 | 71 | 436 | 507 | 64 | 287 | 351 | ||||||||||||||||||||
Commercial construction | — | — | — | — | 675 | 675 | 47 | 676 | 723 | ||||||||||||||||||||
One to four family residential real estate | 186 | 709 | 895 | 291 | 505 | 796 | 582 | 618 | 1,200 | ||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | — | 15 | 15 | ||||||||||||||||||||
Consumer | 31 | 10 | 41 | 14 | — | 14 | 99 | 3 | 102 | ||||||||||||||||||||
Total past due loans | $ | 317 | $ | 4,313 | $ | 4,630 | $ | 951 | $ | 4,687 | $ | 5,638 | $ | 1,219 | $ | 5,290 | $ | 6,509 | |||||||||||
Schedule of roll-forward of nonaccrual activity | ' | ||||||||||||||||||||||||||||
A roll-forward of nonaccrual activity for the three months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,057 | $ | 517 | $ | — | $ | 400 | $ | — | $ | 9 | $ | 3,983 | |||||||||||||||
Principal payments | (26 | ) | (224 | ) | — | (12 | ) | — | (1 | ) | (263 | ) | |||||||||||||||||
Charge-offs | (23 | ) | (476 | ) | — | (24 | ) | — | — | (523 | ) | ||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (208 | ) | (37 | ) | — | — | — | — | (245 | ) | |||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | — | 966 | — | 344 | — | 2 | 1,312 | ||||||||||||||||||||||
Other | 27 | 21 | — | 1 | 49 | ||||||||||||||||||||||||
Ending balance | $ | 2,827 | $ | 767 | $ | — | $ | 709 | $ | — | $ | 10 | $ | 4,313 | |||||||||||||||
A roll-forward of nonaccrual activity for the three months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,749 | $ | 278 | $ | 676 | $ | 657 | $ | 15 | $ | — | $ | 5,375 | |||||||||||||||
Principal payments | (89 | ) | (1 | ) | — | (2 | ) | — | — | (92 | ) | ||||||||||||||||||
Charge-offs | — | — | — | (14 | ) | — | — | (14 | ) | ||||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | (329 | ) | — | — | (329 | ) | ||||||||||||||||||||
Transfers to OREO | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | — | 7 | — | 304 | — | 3 | 314 | ||||||||||||||||||||||
Other | 31 | 3 | — | 2 | — | — | 36 | ||||||||||||||||||||||
Ending balance | $ | 3,691 | $ | 287 | $ | 676 | $ | 618 | $ | 15 | $ | 3 | $ | 5,290 | |||||||||||||||
A roll-forward of nonaccrual activity for the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,071 | $ | 436 | $ | 675 | $ | 505 | $ | — | $ | — | $ | 4,687 | |||||||||||||||
Principal payments | (174 | ) | (292 | ) | (100 | ) | (77 | ) | — | (1 | ) | (644 | ) | ||||||||||||||||
Charge-offs | (352 | ) | (548 | ) | — | (37 | ) | — | (4 | ) | (941 | ) | |||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (208 | ) | (37 | ) | (580 | ) | (107 | ) | — | — | (932 | ) | |||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 443 | 1,207 | — | 420 | — | 15 | 2,085 | ||||||||||||||||||||||
Other | 47 | 1 | 5 | 5 | — | — | 58 | ||||||||||||||||||||||
Ending balance | $ | 2,827 | $ | 767 | $ | — | $ | 709 | $ | — | $ | 10 | $ | 4,313 | |||||||||||||||
A roll-forward of nonaccrual activity for the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,362 | $ | 1,111 | $ | — | $ | 1,997 | $ | 20 | $ | — | $ | 5,490 | |||||||||||||||
Principal payments | (1,101 | ) | (1,383 | ) | — | (1,054 | ) | — | — | (3,538 | ) | ||||||||||||||||||
Charge-offs | (463 | ) | — | — | (307 | ) | (5 | ) | — | (775 | ) | ||||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (465 | ) | — | — | (548 | ) | — | — | (1,013 | ) | |||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 3,288 | 566 | 676 | 524 | — | 3 | 5,057 | ||||||||||||||||||||||
Other | 70 | (7 | ) | — | 6 | — | — | 69 | |||||||||||||||||||||
Ending balance | $ | 3,691 | $ | 287 | $ | 676 | $ | 618 | $ | 15 | $ | 3 | $ | 5,290 | |||||||||||||||
A roll-forward of nonaccrual activity during the year ended December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | ||||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Consumer | Total | |||||||||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,362 | $ | 1,111 | $ | — | $ | 1,997 | $ | 20 | $ | — | $ | 5,490 | |||||||||||||||
Principal payments | (1,569 | ) | (1,385 | ) | — | (1,068 | ) | — | — | (4,022 | ) | ||||||||||||||||||
Charge-offs | (463 | ) | — | — | (387 | ) | (5 | ) | (3 | ) | (858 | ) | |||||||||||||||||
Advances | — | — | — | — | — | — | — | ||||||||||||||||||||||
Class transfers | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers to OREO | (675 | ) | — | — | (662 | ) | (15 | ) | — | (1,352 | ) | ||||||||||||||||||
Transfers to accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||
Transfers from accruing | 3,377 | 716 | 675 | 617 | — | 3 | 5,388 | ||||||||||||||||||||||
Other | 39 | (6 | ) | — | 8 | — | — | 41 | |||||||||||||||||||||
Ending balance | $ | 3,071 | $ | 436 | $ | 675 | $ | 505 | $ | — | $ | — | $ | 4,687 | |||||||||||||||
Summary of troubled debt restructurings | ' | ||||||||||||||||||||||||||||
A summary of troubled debt restructurings for the periods indicated is as follows (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Number of | Recorded | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||
Modifications | Investment | Modifications | Investment | Modifications | Investment | ||||||||||||||||||||||||
Commercial real estate | — | $ | — | 3 | $ | 4,614 | 4 | $ | 5,799 | ||||||||||||||||||||
Commercial, financial and agricultural | 1 | 528 | 1 | 1,221 | 1 | 1,221 | |||||||||||||||||||||||
Commercial construction | — | — | 3 | 860 | 3 | 858 | |||||||||||||||||||||||
One to four family residential real estate | — | — | 1 | 102 | 1 | 102 | |||||||||||||||||||||||
Consumer construction | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||||||||||
Total troubled debt restructurings | 1 | $ | 528 | 8 | $ | 6,797 | 9 | $ | 7,980 | ||||||||||||||||||||
Schedule of roll-forward of troubled debt restructurings | ' | ||||||||||||||||||||||||||||
A roll-forward of troubled debt restructuring during the three months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,563 | $ | 2,174 | $ | 858 | $ | 100 | $ | — | $ | 6,695 | |||||||||||||||||
Principal payments | (20 | ) | (25 | ) | — | (1 | ) | (46 | ) | ||||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transferred out of TDR | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,543 | $ | 1,221 | $ | 858 | $ | 99 | $ | — | $ | 5,721 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,169 | $ | — | $ | — | $ | 106 | $ | — | $ | 2,275 | |||||||||||||||||
Principal payments | (87 | ) | — | — | (14 | ) | — | (101 | ) | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 2,082 | $ | 528 | $ | — | $ | 92 | $ | — | $ | 2,702 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,732 | $ | 2,174 | $ | 858 | $ | 206 | $ | — | $ | 8,970 | |||||||||||||||||
Principal payments | (107 | ) | (25 | ) | — | (15 | ) | — | (147 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Tansfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 5,625 | $ | 1,749 | $ | 858 | $ | 191 | $ | — | $ | 8,423 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the three months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,645 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,826 | |||||||||||||||||
Principal payments | (14 | ) | — | — | — | — | (14 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 3,631 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,812 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,188 | $ | — | $ | — | $ | — | $ | — | $ | 2,188 | |||||||||||||||||
Principal payments | (47 | ) | — | — | — | — | (47 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | 27 | — | — | — | — | 27 | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 2,168 | $ | — | $ | — | $ | — | $ | — | $ | 2,168 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,833 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 8,014 | |||||||||||||||||
Principal payments | (61 | ) | — | — | — | — | (61 | ) | |||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | 27 | — | — | — | — | 27 | |||||||||||||||||||||||
New restructured | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Tansfers to nonaccrual | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 5,799 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 7,980 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the nine months ended September 30, 2013 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 3,611 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,792 | |||||||||||||||||
Principal payments | (68 | ) | (25 | ) | — | (3 | ) | — | (96 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | — | 953 | — | — | — | 953 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,543 | $ | 1,221 | $ | 858 | $ | 99 | $ | — | $ | 5,721 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,162 | $ | — | $ | — | $ | 102 | $ | — | $ | 2,264 | |||||||||||||||||
Principal payments | (87 | ) | — | — | (14 | ) | — | (101 | ) | ||||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 7 | — | — | 4 | — | 11 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Ending Balance | $ | 2,082 | $ | 528 | $ | — | $ | 92 | $ | — | $ | 2,702 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 5,773 | $ | 1,221 | $ | 858 | $ | 204 | $ | — | $ | 8,056 | |||||||||||||||||
Principal payments | (155 | ) | (25 | ) | — | (17 | ) | — | (197 | ) | |||||||||||||||||||
Charge-offs | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 7 | 953 | — | 4 | — | 964 | |||||||||||||||||||||||
Transfers out of TDR | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | — | (528 | ) | — | — | — | (528 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | 528 | — | — | — | 528 | |||||||||||||||||||||||
Transfer from accruing | — | — | — | — | — | — | |||||||||||||||||||||||
Ending Balance | $ | 5,625 | $ | 1,749 | $ | 858 | $ | 191 | $ | — | $ | 8,423 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the nine months ended September 30, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (64 | ) | — | (2 | ) | (1 | ) | — | (67 | ) | |||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 3,695 | 1,221 | 860 | — | — | 5,776 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,631 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,812 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Principal payments | (426 | ) | — | — | — | — | (426 | ) | |||||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 919 | — | — | — | — | 919 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 2,168 | $ | — | $ | — | $ | — | $ | — | $ | 2,168 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (490 | ) | — | (2 | ) | (1 | ) | — | (493 | ) | |||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 4,614 | 1,221 | 860 | — | — | 6,695 | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 5,799 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 7,980 | |||||||||||||||||
A roll-forward of troubled debt restructuring during the year ended December 31, 2012 (dollars in thousands): | |||||||||||||||||||||||||||||
Commercial, | One to four | Consumer and | |||||||||||||||||||||||||||
Commercial | Financial and | Commercial | family residential | Consumer | |||||||||||||||||||||||||
Real Estate | Agricultural | Construction | real estate | Construction | Total | ||||||||||||||||||||||||
ACCRUING | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (84 | ) | — | (2 | ) | (1 | ) | — | (87 | ) | |||||||||||||||||||
Charge-offs | — | — | — | — | — | — | |||||||||||||||||||||||
Advances | — | — | — | — | — | — | |||||||||||||||||||||||
New restructured | 3,695 | 1,221 | 860 | — | — | 5,776 | |||||||||||||||||||||||
Transferred out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Ending Balance | $ | 3,611 | $ | 1,221 | $ | 858 | $ | 102 | $ | — | $ | 5,792 | |||||||||||||||||
NONACCRUAL | |||||||||||||||||||||||||||||
Beginning balance | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Principal payments | (432 | ) | — | — | — | — | (432 | ) | |||||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 919 | — | — | 102 | — | 1,021 | |||||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 2,162 | $ | — | $ | — | $ | 102 | $ | — | $ | 2,264 | |||||||||||||||||
TOTALS | |||||||||||||||||||||||||||||
Beginning balance | $ | 2,400 | $ | — | $ | — | $ | 103 | $ | — | $ | 2,503 | |||||||||||||||||
Principal payments | (516 | ) | — | (2 | ) | (1 | ) | — | (519 | ) | |||||||||||||||||||
Charge-offs | (772 | ) | — | — | — | — | (772 | ) | |||||||||||||||||||||
Advances | 47 | — | — | — | — | 47 | |||||||||||||||||||||||
New restructured | 4,614 | 1,221 | 860 | 102 | — | 6,797 | |||||||||||||||||||||||
Transfers out of TDRs | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers to nonaccrual | (2,400 | ) | — | — | — | — | (2,400 | ) | |||||||||||||||||||||
Transfers to foreclosed properties | — | — | — | — | — | — | |||||||||||||||||||||||
Transfers from accruing | 2,400 | — | — | — | — | 2,400 | |||||||||||||||||||||||
Ending Balance | $ | 5,773 | $ | 1,221 | $ | 858 | $ | 204 | $ | — | $ | 8,056 | |||||||||||||||||
Schedule of activity in insider loans granted to the entity's executive officers and directors, including their families and firms | ' | ||||||||||||||||||||||||||||
The Bank, in the ordinary course of business, grants loans to the Corporation’s executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands): | |||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | |||||||||||||||||||||||||||
Loans outstanding, beginning of period | $ | 11,297 | $ | 8,827 | $ | 8,827 | |||||||||||||||||||||||
New loans | 496 | 3,911 | 3,401 | ||||||||||||||||||||||||||
Net activity on revolving lines of credit | (263 | ) | 233 | 17 | |||||||||||||||||||||||||
Principal payments | (1,442 | ) | (1,674 | ) | (1,490 | ) | |||||||||||||||||||||||
Loans outstanding, end of period | $ | 10,088 | $ | 11,297 | $ | 10,755 |
MORTGAGE_SERVICING_RIGHTS_Tabl
MORTGAGE SERVICING RIGHTS (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
MORTGAGE SERVICING RIGHTS | ' | ||||||||||
Summary of mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances | ' | ||||||||||
The following summarizes mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances (dollars in thousands): | |||||||||||
Nine months ended | Year ended | Nine months ended | |||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Balance at beginning of period | $ | 638 | $ | 400 | $ | 400 | |||||
Additions from loans sold with servicing retained | 325 | 344 | 245 | ||||||||
Amortization | (129 | ) | (106 | ) | (74 | ) | |||||
Estimated Valuation of MSRs at end of period | $ | 834 | $ | 638 | $ | 571 |
BORROWINGS_Tables
BORROWINGS (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
BORROWINGS | ' | ||||||||||
Schedule of borrowings | ' | ||||||||||
Borrowings consist of the following at September 30, 2013, December 31, 2012 and September 30, 2012 (dollars in thousands): | |||||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | $ | 35,000 | $ | 35,000 | $ | 35,000 | |||||
USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1% | 852 | 925 | 925 | ||||||||
$ | 35,852 | $ | 35,925 | $ | 35,925 |
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
STOCK COMPENSATION PLANS | ' | ||||||||||||
Summary of stock option transactions | ' | ||||||||||||
September 30, | December 31, | September 30, | |||||||||||
2013 | 2012 | 2012 | |||||||||||
Outstanding shares at beginning of year | 242,152 | 392,152 | 392,152 | ||||||||||
Granted during the period | — | — | — | ||||||||||
Exercised during the period | — | — | — | ||||||||||
Expired / forfeited during the period | (5,000 | ) | — | — | |||||||||
Surrendered/Echanged for restricted stock | — | (150,000 | ) | (150,000 | ) | ||||||||
Outstanding shares at end of period | 237,152 | 242,152 | 242,152 | ||||||||||
Exercisable shares at end of period | 125,861 | 126,361 | 107,561 | ||||||||||
Weighted average exercise price per share at end of period | $ | 9.88 | $ | 9.88 | $ | 9.88 | |||||||
Shares available for grant at end of period | — | — | — | ||||||||||
Summary of the options outstanding and exercisable | ' | ||||||||||||
Weighted Average | |||||||||||||
Exercise | Number | Unvested | Remaining | ||||||||||
Price | Outstanding | Exercisable | Options | Contractual Life-Years | |||||||||
$ | 9.75 | 217,152 | 120,861 | 96,291 | 1.21 | ||||||||
$ | 10.65 | 10,000 | 2,500 | 7,500 | 3.21 | ||||||||
$ | 12.00 | 10,000 | 2,500 | 7,500 | 1.79 | ||||||||
237,152 | 125,861 | 111,291 | 1.32 | ||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||||||||
Schedule presenting information for financial instruments | ' | |||||||||||||||||||||
The following table presents information for financial instruments at September 30, 2013, December 31, 2012 and September 30, 2012 (dollars in thousands): | ||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | ||||||||||||||||||||
Level in Fair | Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | ||||||||||||||||
Value Hierarchy | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | ||||||||||||||||
Financial assets: | ||||||||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 22,794 | $ | 22,794 | $ | 26,961 | $ | 26,961 | $ | 47,405 | $ | 47,405 | |||||||||
Interest-bearing deposits | Level 2 | 10 | 10 | 10 | 10 | 10 | 10 | |||||||||||||||
Securities available for sale | Level 2 | 48,096 | 48,096 | 43,799 | 43,799 | 42,476 | 42,476 | |||||||||||||||
Federal Home Loan Bank stock | Level 2 | 3,060 | 3,060 | 3,060 | 3,060 | 3,060 | 3,060 | |||||||||||||||
Net loans | Level 3 | 467,536 | 460,009 | 443,959 | 439,239 | 428,772 | 425,406 | |||||||||||||||
Accrued interest receivable | Level 3 | 1,536 | 1,536 | 1,319 | 1,319 | 1,574 | 1,574 | |||||||||||||||
Total financial assets | $ | 543,032 | $ | 535,505 | $ | 519,108 | $ | 514,388 | $ | 523,297 | $ | 519,931 | ||||||||||
Financial liabilities: | ||||||||||||||||||||||
Deposits | Level 2 | $ | 461,688 | $ | 459,862 | $ | 434,557 | $ | 434,227 | $ | 439,363 | $ | 439,139 | |||||||||
Borrowings | Level 2 | 35,852 | 35,548 | 35,925 | 35,729 | 35,925 | 35,681 | |||||||||||||||
Accrued interest payable | Level 2 | 200 | 200 | 214 | 214 | 238 | 238 | |||||||||||||||
Total financial liabilties | $ | 497,740 | $ | 495,610 | $ | 470,696 | $ | 470,170 | $ | 475,526 | $ | 475,058 | ||||||||||
Schedule of fair values of assets using Level 3 inputs | ' | |||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2013 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | Total Losses for | ||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Three Months Ended | Nine Months Ended | |||||||||||||||||
(dollars in thousands) | September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | September 30, 2013 | September 30, 2013 | ||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 4,313 | $ | — | $ | — | $ | 4,313 | $ | 531 | $ | 949 | ||||||||||
Other real estate owned | 2,568 | — | — | 2,568 | 57 | 146 | ||||||||||||||||
$ | 588 | $ | 1,095 | |||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at December 31, 2012 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | |||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Year Ended | ||||||||||||||||||
(dollars in thousands) | December 31, 2012 | (Level 1) | (Level 2) | (Level 3) | December 31, 2012 | |||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 4,687 | $ | — | $ | — | $ | 4,687 | $ | 1,151 | ||||||||||||
Other real estate owned | 3,212 | — | — | 3,212 | 489 | |||||||||||||||||
$ | 1,640 | |||||||||||||||||||||
Assets Measured at Fair Value on a Nonrecurring Basis at September 30, 2012 | ||||||||||||||||||||||
Quoted Prices | Significant | Significant | ||||||||||||||||||||
in Active Markets | Other Observable | Unobservable | Total Losses for | Total Losses for | ||||||||||||||||||
Balance at | for Identical Assets | Inputs | Inputs | Three Months Ended | Nine Months Ended | |||||||||||||||||
(dollars in thousands) | September 30, 2012 | (Level 1) | (Level 2) | (Level 3) | September 30, 2012 | September 30, 2012 | ||||||||||||||||
Assets | ||||||||||||||||||||||
Impaired loans | $ | 5,290 | $ | — | $ | — | $ | 5,290 | $ | 53 | $ | 1,065 | ||||||||||
Other real estate owned | 3,511 | — | — | 3,511 | 265 | 450 | ||||||||||||||||
$ | 318 | $ | 1,515 | |||||||||||||||||||
COMMITMENTS_CONTINGENCIES_AND_1
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
COMMITMENTS, CONTINGENCIES AND CREDIT RISK | ' | ||||||||||
Schedule of commitments | ' | ||||||||||
These commitments are as follows (dollars in thousands): | |||||||||||
September 30, | December 31, | September 30, | |||||||||
2013 | 2012 | 2012 | |||||||||
Commitments to extend credit: | |||||||||||
Variable rate | $ | 32,061 | $ | 39,782 | $ | 38,068 | |||||
Fixed rate | 24,536 | 18,427 | 21,247 | ||||||||
Standby letters of credit - Variable rate | 4,741 | 2,879 | 3,816 | ||||||||
Credit card commitments - Fixed rate | 3,162 | 3,060 | 3,161 | ||||||||
$ | 64,500 | $ | 64,148 | $ | 66,292 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Sep. 30, 2013 | Aug. 31, 2012 | Dec. 31, 2004 | Sep. 30, 2013 | Dec. 31, 2004 | Sep. 30, 2013 | 22-May-12 | Aug. 31, 2012 | Sep. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | item | RSUs | Plan approved in 2000 | Plan approved in 2000 | Plans approved in 1997 | Plans approved in 1997 | 2012 Incentive Compensation Plan | 2012 Incentive Compensation Plan | 2012 Incentive Compensation Plan |
item | item | RSUs | RSUs | ||||||
Stock Compensation Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock option plans | 3 | ' | ' | 1 | ' | 2 | ' | ' | ' |
Increase in number of shares authorized | ' | ' | 428,587 | ' | ' | ' | ' | ' | ' |
Shares authorized prior to amendment | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Reverse stock split, conversion ratio | ' | ' | 0.05 | ' | 0.05 | ' | ' | ' | ' |
Total authorized share balance | ' | ' | 453,587 | ' | 30,000 | ' | 757,848 | ' | ' |
Number of RSUs granted (in shares) | ' | 148,500 | ' | ' | ' | ' | ' | 148,500 | ' |
Purchase price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $7.91 | ' |
Cost to the employee | ' | ' | ' | ' | ' | ' | ' | $0 | ' |
Vesting term of restricted stock units | ' | '4 years | ' | ' | ' | ' | ' | '4 years | ' |
Recognition period of compensation cost to be recognized | ' | ' | ' | ' | ' | ' | ' | '4 years | ' |
Compensation cost to be recognized, net of income tax | ' | ' | ' | ' | ' | ' | ' | $1,175 | $851 |
Number of RSUs vested and issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 37,125 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
(Numerator): | ' | ' | ' | ' |
Net income | $896 | $1,034 | $2,969 | $6,027 |
Preferred dividends and accretion of discount | 50 | 137 | 250 | 491 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $846 | $897 | $2,719 | $5,536 |
(Denominator): | ' | ' | ' | ' |
Weighted average shares outstanding - basic | 5,562,835 | 4,722,029 | 5,559,108 | 3,857,002 |
Dilutive effect of common stock warrants (in shares) | ' | 136,186 | ' | 119,850 |
Weighted average shares outstanding - diluted | 5,562,835 | 4,858,215 | 5,559,108 | 3,976,852 |
Income per common share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.15 | $0.21 | $0.49 | $1.30 |
Diluted (in dollars per share) | $0.15 | $0.20 | $0.49 | $1.25 |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | $47,566 | $42,399 | $41,156 |
Gross Unrealized Gains | 870 | 1,423 | 1,331 |
Gross Unrealized Losses | -340 | -23 | -11 |
Estimated Fair Value | 48,096 | 43,799 | 42,476 |
US Agencies - MBS | ' | ' | ' |
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | 7,236 | 7,962 | 8,282 |
Gross Unrealized Gains | 315 | 412 | 388 |
Estimated Fair Value | 7,551 | 8,374 | 8,670 |
US Agencies | ' | ' | ' |
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | 16,003 | 10,267 | 10,303 |
Gross Unrealized Gains | 66 | 137 | 154 |
Gross Unrealized Losses | -336 | ' | ' |
Estimated Fair Value | 15,733 | 10,404 | 10,457 |
Corporate Bonds | ' | ' | ' |
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | 18,451 | 18,763 | 17,180 |
Gross Unrealized Gains | 192 | 237 | 232 |
Gross Unrealized Losses | -4 | -23 | -9 |
Estimated Fair Value | 18,639 | 18,977 | 17,403 |
Obligations of states and political subdivisions | ' | ' | ' |
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | 5,876 | 5,407 | 5,391 |
Gross Unrealized Gains | 297 | 637 | 557 |
Gross Unrealized Losses | ' | ' | -2 |
Estimated Fair Value | 6,173 | 6,044 | 5,946 |
FHLB borrowings and customer relationships | ' | ' | ' |
INVESTMENT SECURITIES | ' | ' | ' |
Amortized Cost | 8,499 | ' | ' |
Estimated Fair Value | $8,729 | ' | ' |
LOANS_Details
LOANS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Loans | ' | ' | ' | ' | ' |
Total loans | $472,495 | $433,958 | $472,495 | $433,958 | $449,177 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 5,177 | 5,083 | 5,218 | 5,251 | 5,251 |
Recoveries on loans previously charged off | 54 | 13 | 154 | 231 | 278 |
Loans charged off | -647 | -60 | -1,263 | -1,091 | -1,256 |
Provision | 375 | 150 | 850 | 795 | 945 |
Balance at end of period | 4,959 | 5,186 | 4,959 | 5,186 | 5,218 |
Net charge off activity | ' | ' | 1,109 | 860 | ' |
Net charge off activity as percentage of average loans outstanding | ' | ' | 0.32% | 0.28% | ' |
Commercial real estate | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 257,961 | 224,061 | 257,961 | 224,061 | 244,966 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 2,661 | 2,784 | 3,267 | 2,823 | 2,823 |
Recoveries on loans previously charged off | 23 | 10 | 64 | 27 | 52 |
Loans charged off | -132 | -36 | -588 | -726 | -729 |
Provision | 3 | 90 | -188 | 724 | 1,121 |
Balance at end of period | 2,555 | 2,848 | 2,555 | 2,848 | 3,267 |
Commercial, financial, and agricultural | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 79,511 | 84,073 | 79,511 | 84,073 | 80,646 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 1,090 | 888 | 692 | 1,079 | 1,079 |
Recoveries on loans previously charged off | 20 | 1 | 53 | 188 | 201 |
Loans charged off | -476 | ' | -552 | -24 | -40 |
Provision | 522 | -114 | 963 | -468 | -548 |
Balance at end of period | 1,156 | 775 | 1,156 | 775 | 692 |
One to four family residential real estate | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 98,770 | 86,643 | 98,770 | 86,643 | 87,948 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 877 | 1,083 | 980 | 1,114 | 1,114 |
Recoveries on loans previously charged off | 6 | ' | 17 | 5 | 7 |
Loans charged off | -25 | -23 | -38 | -319 | -399 |
Provision | 44 | 177 | -57 | 437 | 258 |
Balance at end of period | 902 | 1,237 | 902 | 1,237 | 980 |
Consumer construction | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 5,734 | 6,803 | 5,734 | 6,803 | 7,465 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Recoveries on loans previously charged off | 1 | ' | 1 | ' | ' |
Provision | -1 | ' | -1 | ' | ' |
Commercial construction | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 16,054 | 21,757 | 16,054 | 21,757 | 17,229 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 97 | 218 | 125 | 207 | 207 |
Recoveries on loans previously charged off | ' | ' | 2 | ' | ' |
Loans charged off | ' | ' | ' | -6 | -6 |
Provision | -16 | -33 | -46 | -16 | -76 |
Balance at end of period | 81 | 185 | 81 | 185 | 125 |
Consumer | ' | ' | ' | ' | ' |
Loans | ' | ' | ' | ' | ' |
Total loans | 14,465 | 10,621 | 14,465 | 10,621 | 10,923 |
Changes in the allowance for loan losses | ' | ' | ' | ' | ' |
Balance at beginning of period | 13 | ' | ' | ' | ' |
Recoveries on loans previously charged off | 4 | 2 | 17 | 11 | 18 |
Loans charged off | -14 | -1 | -85 | -16 | -82 |
Provision | 15 | -1 | 86 | 5 | 64 |
Balance at end of period | $18 | ' | $18 | ' | ' |
LOANS_Details_2
LOANS (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | $5,177 | $5,083 | $5,218 | $5,251 | $5,251 |
Charge-offs | -647 | -60 | -1,263 | -1,091 | -1,256 |
Recoveries | 54 | 13 | 154 | 231 | 278 |
Provision | 375 | 150 | 850 | 795 | 945 |
Balance at end of period | 4,959 | 5,186 | 4,959 | 5,186 | 5,218 |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 472,495 | 433,958 | 472,495 | 433,958 | 449,177 |
Ending balance ALLR | -4,959 | -5,186 | -4,959 | -5,186 | -5,218 |
Net loans | 467,536 | 428,772 | 467,536 | 428,772 | 443,959 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 2,479 | 1,631 | 2,479 | 1,631 | 1,939 |
Collectively evaluated | 2,480 | 3,555 | 2,480 | 3,555 | 3,279 |
Total | 4,959 | 5,186 | 4,959 | 5,186 | 5,218 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 22,396 | 30,684 | 22,396 | 30,684 | 30,634 |
Collectively evaluated | 450,099 | 403,274 | 450,099 | 403,274 | 418,543 |
Total Loans | 472,495 | 433,958 | 472,495 | 433,958 | 449,177 |
Commercial real estate | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 2,661 | 2,784 | 3,267 | 2,823 | 2,823 |
Charge-offs | -132 | -36 | -588 | -726 | -729 |
Recoveries | 23 | 10 | 64 | 27 | 52 |
Provision | 3 | 90 | -188 | 724 | 1,121 |
Balance at end of period | 2,555 | 2,848 | 2,555 | 2,848 | 3,267 |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 257,961 | 224,061 | 257,961 | 224,061 | 244,966 |
Ending balance ALLR | -2,555 | -2,848 | -2,555 | -2,848 | -3,267 |
Net loans | 255,406 | 221,213 | 255,406 | 221,213 | 241,699 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 1,407 | 1,198 | 1,407 | 1,198 | 1,662 |
Collectively evaluated | 1,148 | 1,650 | 1,148 | 1,650 | 1,605 |
Total | 2,555 | 2,848 | 2,555 | 2,848 | 3,267 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 13,475 | 22,571 | 13,475 | 22,571 | 22,910 |
Collectively evaluated | 244,486 | 201,490 | 244,486 | 201,490 | 222,056 |
Total Loans | 257,961 | 224,061 | 257,961 | 224,061 | 244,966 |
Commercial, financial, and agricultural | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 1,090 | 888 | 692 | 1,079 | 1,079 |
Charge-offs | -476 | ' | -552 | -24 | -40 |
Recoveries | 20 | 1 | 53 | 188 | 201 |
Provision | 522 | -114 | 963 | -468 | -548 |
Balance at end of period | 1,156 | 775 | 1,156 | 775 | 692 |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 79,511 | 84,073 | 79,511 | 84,073 | 80,646 |
Ending balance ALLR | -1,156 | -775 | -1,156 | -775 | -692 |
Net loans | 78,355 | 83,298 | 78,355 | 83,298 | 79,954 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 802 | 145 | 802 | 145 | 155 |
Collectively evaluated | 354 | 630 | 354 | 630 | 537 |
Total | 1,156 | 775 | 1,156 | 775 | 692 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 7,638 | 5,997 | 7,638 | 5,997 | 6,070 |
Collectively evaluated | 71,873 | 78,076 | 71,873 | 78,076 | 74,576 |
Total Loans | 79,511 | 84,073 | 79,511 | 84,073 | 80,646 |
Commercial construction | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 97 | 218 | 125 | 207 | 207 |
Charge-offs | ' | ' | ' | -6 | -6 |
Recoveries | ' | ' | 2 | ' | ' |
Provision | -16 | -33 | -46 | -16 | -76 |
Balance at end of period | 81 | 185 | 81 | 185 | 125 |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 16,054 | 21,757 | 16,054 | 21,757 | 17,229 |
Ending balance ALLR | -81 | -185 | -81 | -185 | -125 |
Net loans | 15,973 | 21,572 | 15,973 | 21,572 | 17,104 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 6 | 11 | 6 | 11 | 10 |
Collectively evaluated | 75 | 174 | 75 | 174 | 115 |
Total | 81 | 185 | 81 | 185 | 125 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 798 | 858 | 798 | 858 | 858 |
Collectively evaluated | 15,256 | 20,899 | 15,256 | 20,899 | 16,371 |
Total Loans | 16,054 | 21,757 | 16,054 | 21,757 | 17,229 |
One to four family residential real estate | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 877 | 1,083 | 980 | 1,114 | 1,114 |
Charge-offs | -25 | -23 | -38 | -319 | -399 |
Recoveries | 6 | ' | 17 | 5 | 7 |
Provision | 44 | 177 | -57 | 437 | 258 |
Balance at end of period | 902 | 1,237 | 902 | 1,237 | 980 |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 98,770 | 86,643 | 98,770 | 86,643 | 87,948 |
Ending balance ALLR | -902 | -1,237 | -902 | -1,237 | -980 |
Net loans | 97,868 | 85,406 | 97,868 | 85,406 | 86,968 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 246 | 277 | 246 | 277 | 112 |
Collectively evaluated | 656 | 960 | 656 | 960 | 868 |
Total | 902 | 1,237 | 902 | 1,237 | 980 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 450 | 1,248 | 450 | 1,248 | 796 |
Collectively evaluated | 98,320 | 85,395 | 98,320 | 85,395 | 87,152 |
Total Loans | 98,770 | 86,643 | 98,770 | 86,643 | 87,948 |
Consumer construction | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Recoveries | 1 | ' | 1 | ' | ' |
Provision | -1 | ' | -1 | ' | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 5,734 | 6,803 | 5,734 | 6,803 | 7,465 |
Net loans | 5,734 | 6,803 | 5,734 | 6,803 | 7,465 |
Ending balance Loans: | ' | ' | ' | ' | ' |
Collectively evaluated | 5,734 | 6,803 | 5,734 | 6,803 | 7,465 |
Total Loans | 5,734 | 6,803 | 5,734 | 6,803 | 7,465 |
Consumer | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 13 | ' | ' | ' | ' |
Charge-offs | -14 | -1 | -85 | -16 | -82 |
Recoveries | 4 | 2 | 17 | 11 | 18 |
Provision | 15 | -1 | 86 | 5 | 64 |
Balance at end of period | 18 | ' | 18 | ' | ' |
Loans: | ' | ' | ' | ' | ' |
Ending balance | 14,465 | 10,621 | 14,465 | 10,621 | 10,923 |
Ending balance ALLR | -18 | ' | -18 | ' | ' |
Net loans | 14,447 | 10,621 | 14,447 | 10,621 | 10,923 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Individually evaluated | 18 | ' | 18 | ' | ' |
Total | 18 | ' | 18 | ' | ' |
Ending balance Loans: | ' | ' | ' | ' | ' |
Individually evaluated | 35 | 10 | 35 | 10 | ' |
Collectively evaluated | 14,430 | 10,611 | 14,430 | 10,611 | 10,923 |
Total Loans | 14,465 | 10,621 | 14,465 | 10,621 | 10,923 |
Unallocated | ' | ' | ' | ' | ' |
Allowance for loan loss reserve: | ' | ' | ' | ' | ' |
Balance at beginning of period | 439 | 110 | 154 | 28 | 28 |
Provision | -192 | 31 | 93 | 113 | 126 |
Balance at end of period | 247 | 141 | 247 | 141 | 154 |
Loans: | ' | ' | ' | ' | ' |
Ending balance ALLR | -247 | -141 | -247 | -141 | -154 |
Net loans | -247 | -141 | -247 | -141 | -154 |
Ending balance ALLR: | ' | ' | ' | ' | ' |
Collectively evaluated | 247 | 141 | 247 | 141 | 154 |
Total | $247 | $141 | $247 | $141 | $154 |
LOANS_Details_3
LOANS (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Breakdown of loans by risk category | ' | ' | ' |
Total loans | $472,495 | $449,177 | $433,958 |
Minimum | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Credit risk rating for which reserves are established if no specific reserves made | 6 | ' | ' |
Maximum | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Credit risk rating for which general reserves are established | 5 | ' | ' |
Credit risk rating for which reserves are established if no specific reserves made | 7 | ' | ' |
Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 257,961 | 244,966 | 224,061 |
Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 79,511 | 80,646 | 84,073 |
Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 16,054 | 17,229 | 21,757 |
One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 98,770 | 87,948 | 86,643 |
Consumer construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 5,734 | 7,465 | 6,803 |
Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 14,465 | 10,923 | 10,621 |
Excellent (1) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 6,500 | 9,833 | 7,678 |
Excellent (1) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 2,240 | 4,807 | 3,372 |
Excellent (1) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 4,260 | 5,026 | 4,306 |
Good (2) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 31,512 | 27,793 | 28,785 |
Good (2) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 23,675 | 20,491 | 19,939 |
Good (2) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 5,108 | 3,936 | 5,517 |
Good (2) | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 676 | 1,038 | 988 |
Good (2) | One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 1,951 | 1,969 | 1,979 |
Good (2) | Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 102 | 359 | 362 |
Average (3) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 117,871 | 116,794 | 107,275 |
Average (3) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 88,105 | 84,164 | 72,647 |
Average (3) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 22,263 | 23,821 | 25,932 |
Average (3) | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 5,283 | 5,103 | 5,039 |
Average (3) | One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 2,186 | 3,635 | 3,586 |
Average (3) | Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 34 | 71 | 71 |
Acceptable (4) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 176,545 | 165,996 | 162,764 |
Acceptable (4) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 123,373 | 113,379 | 105,736 |
Acceptable (4) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 41,851 | 41,785 | 42,097 |
Acceptable (4) | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 6,167 | 5,784 | 9,995 |
Acceptable (4) | One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 4,522 | 4,791 | 4,703 |
Acceptable (4) | Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 632 | 257 | 233 |
Special Mention (5) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 20,616 | 21,809 | 21,865 |
Special Mention (5) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 16,117 | 16,754 | 16,784 |
Special Mention (5) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 3,746 | 4,296 | 4,320 |
Special Mention (5) | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 753 | 759 | 761 |
Substandard (6) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 6,953 | 8,700 | 9,079 |
Substandard (6) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 4,451 | 5,189 | 5,374 |
Substandard (6) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 2,094 | 1,782 | 1,901 |
Substandard (6) | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 402 | 1,077 | 1,092 |
Substandard (6) | One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 6 | 646 | 709 |
Substandard (6) | Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | ' | 6 | 3 |
Doubtful (7) | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 189 | 182 | 209 |
Doubtful (7) | Commercial real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | ' | 182 | 209 |
Doubtful (7) | Commercial, financial, and agricultural | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 189 | ' | ' |
Rating Unassigned | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 112,309 | 98,070 | 96,303 |
Rating Unassigned | Commercial construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 2,773 | 3,468 | 3,882 |
Rating Unassigned | One to four family residential real estate | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 90,105 | 76,907 | 75,666 |
Rating Unassigned | Consumer construction | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | 5,734 | 7,465 | 6,803 |
Rating Unassigned | Consumer | ' | ' | ' |
Breakdown of loans by risk category | ' | ' | ' |
Total loans | $13,697 | $10,230 | $9,952 |
LOANS_Details_4
LOANS (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Impaired Loans | ' | ' | ' | ' | ' |
Number of days past due to be considered as nonperforming loans | ' | ' | '90 days | ' | ' |
Average investment | ' | ' | ' | ' | ' |
Total | $4,536 | $5,334 | $4,407 | $8,235 | $8,339 |
Related Valuation Reserve | 1,555 | 1,218 | 1,555 | 1,218 | 1,519 |
Interest Income Recognized During Impairment | ' | ' | ' | ' | ' |
Total | ' | 17 | ' | 54 | 54 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
Total | 60 | 72 | 177 | 246 | 313 |
Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
Total | 4,313 | 5,290 | 4,313 | 5,290 | 4,687 |
Commercial real estate | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | 412 | 533 | 501 | 1,135 | 1,550 |
With a valuation reserve | 2,581 | 3,177 | 2,557 | 3,663 | 3,173 |
Total | 2,993 | 3,710 | 3,058 | 4,798 | 4,723 |
Related Valuation Reserve | 1,272 | 937 | 1,272 | 937 | 1,315 |
Interest Income Recognized During Impairment | ' | ' | ' | ' | ' |
With a valuation reserve | ' | 17 | ' | 54 | 54 |
Total | ' | 17 | ' | 54 | 54 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 9 | 26 | 32 | 37 |
With a valuation reserve | 42 | 42 | 102 | 136 | 177 |
Total | 42 | 51 | 128 | 168 | 214 |
Commercial real estate | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With no valuation reserve | 238 | 530 | 238 | 530 | 132 |
With a valuation reserve | 2,589 | 3,161 | 2,589 | 3,161 | 2,939 |
Total | 2,827 | 3,691 | 2,827 | 3,691 | 3,071 |
Commercial, financial, and agricultural | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | 147 | ' | 243 | 1,063 | 1,063 |
With a valuation reserve | 741 | 281 | 373 | 398 | 504 |
Total | 888 | 281 | 616 | 1,461 | 1,567 |
Related Valuation Reserve | 33 | 90 | 33 | 90 | 109 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
With no valuation reserve | 3 | ' | 9 | 18 | 19 |
With a valuation reserve | 5 | 4 | 11 | 12 | 17 |
Total | 8 | 4 | 20 | 30 | 36 |
Commercial, financial, and agricultural | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With a valuation reserve | 767 | 287 | 767 | 287 | 436 |
Total | 767 | 287 | 767 | 287 | 436 |
Commercial construction | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 676 | 193 | 676 | 675 |
Total | ' | 676 | 193 | 676 | 675 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 5 | 3 | 9 | 15 |
Total | ' | 5 | 3 | 9 | 15 |
Commercial construction | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 676 | ' | 676 | 675 |
Total | ' | 676 | ' | 676 | 675 |
One to four family residential real estate | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | 86 | 384 | 140 | 818 | 1,074 |
With a valuation reserve | 560 | 267 | 396 | 463 | 281 |
Total | 646 | 651 | 536 | 1,281 | 1,355 |
Related Valuation Reserve | 250 | 188 | 250 | 188 | 95 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
With no valuation reserve | 2 | 4 | 7 | 28 | 41 |
With a valuation reserve | 8 | 8 | 19 | 10 | 6 |
Total | 10 | 12 | 26 | 38 | 47 |
One to four family residential real estate | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With no valuation reserve | 67 | 156 | 67 | 156 | 230 |
With a valuation reserve | 642 | 462 | 642 | 462 | 275 |
Total | 709 | 618 | 709 | 618 | 505 |
Consumer construction | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 15 | ' | 16 | 16 |
Total | ' | 15 | ' | 16 | 16 |
Interest Income on Accrual Basis | ' | ' | ' | ' | ' |
With no valuation reserve | ' | ' | ' | 1 | 1 |
Total | ' | ' | ' | 1 | 1 |
Consumer construction | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With no valuation reserve | ' | 15 | ' | 15 | ' |
Total | ' | 15 | ' | 15 | ' |
Consumer | ' | ' | ' | ' | ' |
Average investment | ' | ' | ' | ' | ' |
With no valuation reserve | 9 | ' | 4 | ' | 3 |
With a valuation reserve | ' | 1 | ' | 3 | ' |
Total | 9 | 1 | 4 | 3 | 3 |
Related Valuation Reserve | ' | 3 | ' | 3 | ' |
Consumer | Nonaccrual Basis | ' | ' | ' | ' | ' |
Recorded investment | ' | ' | ' | ' | ' |
With no valuation reserve | 10 | ' | 10 | ' | ' |
With a valuation reserve | ' | 3 | ' | 3 | ' |
Total | $10 | $3 | $10 | $3 | ' |
LOANS_Details_5
LOANS (Details 5) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | $317 | ' | $951 | $1,219 | ' | ' |
90+ days Past Due/Nonaccrual | 4,313 | 3,983 | 4,687 | 5,290 | 5,375 | 5,490 |
Total | 4,630 | ' | 5,638 | 6,509 | ' | ' |
Commercial real estate | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | ' | ' | 575 | 427 | ' | ' |
90+ days Past Due/Nonaccrual | 2,827 | 3,057 | 3,071 | 3,691 | 3,749 | 2,362 |
Total | 2,827 | ' | 3,646 | 4,118 | ' | ' |
Commercial, financial, and agricultural | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | 100 | ' | 71 | 64 | ' | ' |
90+ days Past Due/Nonaccrual | 767 | 517 | 436 | 287 | 278 | 1,111 |
Total | 867 | ' | 507 | 351 | ' | ' |
Commercial construction | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | ' | ' | ' | 47 | ' | ' |
90+ days Past Due/Nonaccrual | ' | ' | 675 | 676 | 676 | ' |
Total | ' | ' | 675 | 723 | ' | ' |
One to four family residential real estate | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | 186 | ' | 291 | 582 | ' | ' |
90+ days Past Due/Nonaccrual | 709 | 400 | 505 | 618 | 657 | 1,997 |
Total | 895 | ' | 796 | 1,200 | ' | ' |
Consumer construction | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
90+ days Past Due/Nonaccrual | ' | ' | ' | 15 | 15 | 20 |
Total | ' | ' | ' | 15 | ' | ' |
Consumer | ' | ' | ' | ' | ' | ' |
Past due loans | ' | ' | ' | ' | ' | ' |
30-89 days Past Due (accruing) | 31 | ' | 14 | 99 | ' | ' |
90+ days Past Due/Nonaccrual | 10 | 9 | ' | 3 | ' | ' |
Total | $41 | ' | $14 | $102 | ' | ' |
LOANS_Details_6
LOANS (Details 6) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | Consumer Construction | Consumer Construction | Consumer Construction | Consumer | Consumer | Consumer | Consumer | Consumer | ||||||
Roll-forward of nonaccrual activity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $3,983 | $5,375 | $4,687 | $5,490 | $5,490 | $3,057 | $3,749 | $3,071 | $2,362 | $2,362 | $517 | $278 | $436 | $1,111 | $1,111 | $675 | ' | ' | $676 | $400 | $657 | $505 | $1,997 | $1,997 | $20 | $20 | $15 | $9 | ' | ' | ' | ' |
Principal payments | -263 | -92 | -644 | -3,538 | -4,022 | -26 | -89 | -174 | -1,101 | -1,569 | -224 | -1 | -292 | -1,383 | -1,385 | -100 | ' | ' | ' | -12 | -2 | -77 | -1,054 | -1,068 | ' | ' | ' | -1 | ' | -1 | ' | ' |
Charge-offs | -523 | -14 | -941 | -775 | -858 | -23 | ' | -352 | -463 | -463 | -476 | ' | -548 | ' | ' | ' | ' | ' | ' | -24 | -14 | -37 | -307 | -387 | -5 | -5 | ' | ' | ' | -4 | ' | -3 |
Class transfers | ' | -329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfers to OREO | -245 | ' | -932 | -1,013 | -1,352 | -208 | ' | -208 | -465 | -675 | -37 | ' | -37 | ' | ' | -580 | ' | ' | ' | ' | ' | -107 | -548 | -662 | ' | -15 | ' | ' | ' | ' | ' | ' |
Transfers from accruing | 1,312 | 314 | 2,085 | 5,057 | 5,388 | ' | ' | 443 | 3,288 | 3,377 | 966 | 7 | 1,207 | 566 | 716 | ' | 676 | 675 | ' | 344 | 304 | 420 | 524 | 617 | ' | ' | ' | 2 | 3 | 15 | 3 | 3 |
Other | 49 | 36 | 58 | 69 | 41 | 27 | 31 | 47 | 70 | 39 | 21 | 3 | 1 | -7 | -6 | 5 | ' | ' | ' | 1 | 2 | 5 | 6 | 8 | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | $4,313 | $5,290 | $4,313 | $5,290 | $4,687 | $2,827 | $3,691 | $2,827 | $3,691 | $3,071 | $767 | $287 | $767 | $287 | $436 | ' | $676 | $675 | $676 | $709 | $618 | $709 | $618 | $505 | $15 | ' | $15 | $10 | $3 | $10 | $3 | ' |
LOANS_Details_7
LOANS (Details 7) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
item | item | item | |
Troubled Debt Restructuring | ' | ' | ' |
Minimum number of consecutive timely payments before the Corporation would consider return of a restructured loan to accruing status | 6 | ' | ' |
Number of Modifications | 1 | 9 | 8 |
Recorded Investment | $528 | $7,980 | $6,797 |
Commercial real estate | ' | ' | ' |
Troubled Debt Restructuring | ' | ' | ' |
Number of Modifications | ' | 4 | 3 |
Recorded Investment | ' | 5,799 | 4,614 |
Commercial, financial, and agricultural | ' | ' | ' |
Troubled Debt Restructuring | ' | ' | ' |
Number of Modifications | 1 | 1 | 1 |
Recorded Investment | 528 | 1,221 | 1,221 |
Commercial construction | ' | ' | ' |
Troubled Debt Restructuring | ' | ' | ' |
Number of Modifications | ' | 3 | 3 |
Recorded Investment | ' | 858 | 860 |
One to four family residential real estate | ' | ' | ' |
Troubled Debt Restructuring | ' | ' | ' |
Number of Modifications | ' | 1 | 1 |
Recorded Investment | ' | $102 | $102 |
LOANS_Details_8
LOANS (Details 8) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | NONACCRUAL | NONACCRUAL | NONACCRUAL | NONACCRUAL | NONACCRUAL | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial Real Estate | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial, Financial, and Agricultural | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | Commercial Construction | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | One to four family residential real estate | ||||||
ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | NONACCRUAL | NONACCRUAL | NONACCRUAL | NONACCRUAL | NONACCRUAL | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | NONACCRUAL | NONACCRUAL | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | ACCRUING | NONACCRUAL | NONACCRUAL | NONACCRUAL | ||||||||||||||||||||||||||||||||||||
Changes in troubled debt restructuring | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | $8,970 | $8,014 | $8,056 | $2,503 | $2,503 | $6,695 | $5,826 | $5,792 | $2,503 | $2,503 | $2,275 | $2,188 | $2,264 | ' | ' | $5,732 | $5,833 | $5,773 | $2,400 | $2,400 | $3,563 | $3,645 | $3,611 | $2,400 | $2,400 | $2,169 | $2,188 | $2,162 | ' | ' | $2,174 | $1,221 | ' | ' | $1,221 | $2,174 | $1,221 | ' | ' | $1,221 | ' | ' | ' | ' | $858 | $858 | $858 | ' | ' | $858 | $858 | $858 | $206 | $204 | $103 | $103 | $102 | $100 | $102 | $103 | $103 | $102 | $106 | $102 | ' |
Principal payments | -147 | -61 | -197 | -493 | -519 | -46 | -14 | -96 | -67 | -87 | -101 | -47 | -101 | -426 | -432 | -107 | -61 | -155 | -490 | -516 | -20 | -14 | -68 | -64 | -84 | -87 | -47 | -87 | -426 | -432 | -25 | -25 | ' | ' | ' | -25 | -25 | ' | ' | ' | ' | ' | -2 | -2 | ' | ' | ' | -2 | -2 | ' | ' | ' | -15 | -17 | -1 | -1 | ' | -1 | -3 | -1 | -1 | ' | -14 | -14 | ' |
Charge-offs | -400 | ' | -400 | -772 | -772 | -400 | ' | -400 | ' | ' | ' | ' | ' | -772 | -772 | ' | ' | ' | -772 | -772 | ' | ' | ' | ' | ' | ' | ' | ' | -772 | -772 | -400 | -400 | ' | ' | ' | -400 | -400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advances | ' | 27 | ' | 47 | 47 | ' | ' | ' | ' | ' | ' | 27 | ' | 47 | 47 | ' | 27 | ' | 47 | 47 | ' | ' | ' | ' | ' | ' | 27 | ' | 47 | 47 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
New restructured | ' | ' | 964 | 6,695 | 6,797 | ' | ' | 953 | 5,776 | 5,776 | ' | ' | 11 | 919 | 1,021 | ' | ' | 7 | 4,614 | 4,614 | ' | ' | ' | 3,695 | 3,695 | ' | ' | 7 | 919 | 919 | ' | 953 | 1,221 | 1,221 | ' | ' | 953 | 1,221 | 1,221 | ' | ' | ' | 860 | 860 | ' | ' | ' | 860 | 860 | ' | ' | ' | ' | 4 | ' | 102 | ' | ' | ' | ' | ' | ' | ' | 4 | 102 |
Transfers to nonaccrual | -528 | ' | -528 | -2,400 | -2,400 | -528 | ' | -528 | -2,400 | -2,400 | ' | ' | ' | ' | ' | ' | ' | ' | -2,400 | -2,400 | ' | ' | ' | -2,400 | -2,400 | ' | ' | ' | ' | ' | -528 | -528 | ' | ' | ' | -528 | -528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfers to foreclosed properties | ' | ' | -528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Transfer from accruing | 528 | ' | ' | 2,400 | 2,400 | ' | ' | ' | ' | ' | 528 | ' | 528 | 2,400 | 2,400 | ' | ' | ' | 2,400 | 2,400 | ' | ' | ' | ' | ' | ' | ' | ' | 2,400 | 2,400 | 528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 528 | 528 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ending balance | $8,423 | $7,980 | $8,423 | $7,980 | $8,056 | $5,721 | $5,812 | $5,721 | $5,812 | $5,792 | $2,702 | $2,168 | $2,702 | $2,168 | $2,264 | $5,625 | $5,799 | $5,625 | $5,799 | $5,773 | $3,543 | $3,631 | $3,543 | $3,631 | $3,611 | $2,082 | $2,168 | $2,082 | $2,168 | $2,162 | $1,749 | $1,749 | $1,221 | $1,221 | $1,221 | $1,221 | $1,221 | $1,221 | $1,221 | $1,221 | $528 | $528 | $858 | $858 | $858 | $858 | $858 | $858 | $858 | $858 | $858 | $858 | $191 | $191 | $102 | $204 | $102 | $99 | $99 | $102 | $102 | $102 | $92 | $92 | $102 |
LOANS_Details_9
LOANS (Details 9) (Bank, USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Activity in insider loans granted to the entity's executive officers and directors, including their families and firms | ' | ' | ' |
Loans outstanding, beginning of period | $11,297 | $8,827 | $8,827 |
New loans | 496 | 3,401 | 3,911 |
Net activity on revolving lines of credit | -263 | 17 | 233 |
Principal payments | -1,442 | -1,490 | -1,674 |
Loans outstanding, end of period | 10,088 | 10,755 | 11,297 |
Unfunded commitments | 5 | ' | ' |
Substandard | ' | ' | ' |
Activity in insider loans granted to the entity's executive officers and directors, including their families and firms | ' | ' | ' |
Loans outstanding, end of period | $0 | $0 | $0 |
MORTGAGE_SERVICING_RIGHTS_Deta
MORTGAGE SERVICING RIGHTS (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
MORTGAGE SERVICING RIGHTS | ' | ' | ' |
Residential first mortgage loans the Corporation has obligations to service | $126,000,000 | ' | ' |
Annual constant prepayment speed (as a percent) | 15.90% | ' | ' |
Discount rate (as a percent) | 7.50% | ' | ' |
Changes in mortgage servicing rights capitalized and amortized, along with the aggregate activity in related valuation allowances | ' | ' | ' |
Balance at beginning of period | 638,000 | 400,000 | 400,000 |
Additions from loans sold with servicing retained | 325,000 | 245,000 | 344,000 |
Amortization | -129,000 | -74,000 | -106,000 |
Estimated Valuation of MSRs at end of period | $834,000 | $571,000 | $638,000 |
BORROWINGS_Details
BORROWINGS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
BORROWINGS | ' | ' | ' |
Borrowings | $35,852 | $35,925 | $35,925 |
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Borrowings | 35,000 | 35,000 | 35,000 |
Interest rate on note (as a percent) | 1.79% | ' | ' |
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | Mortgage related and municipal securities | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Securities pledged as collateral, amortized cost | 8,424 | ' | ' |
Securities pledged as collateral, fair value | 8,654 | ' | ' |
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | Federal Home Loan Bank stock | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Stock owned and pledged as collateral | 3,060 | ' | ' |
Federal Home Loan Bank fixed rate advances at September 30, 2013 with a weighted average rate of 1.79% maturing in 2014, 2016 and 2018 | One to four family residential real estate | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Loans pledged as collateral | 41,769 | ' | ' |
USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1% | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Borrowings | 852 | 925 | 925 |
Interest rate on note (as a percent) | 1.00% | ' | ' |
USDA Rural Development, fixed-rate note payable, maturing August 24, 2024, interest payable at 1% | First Rural Relending | ' | ' | ' |
BORROWINGS | ' | ' | ' |
Loans pledged as collateral | 130 | ' | ' |
Demand deposit account pledged as collateral | $790 | ' | ' |
STOCK_COMPENSATION_PLANS_Detai
STOCK COMPENSATION PLANS (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Stock option transactions | ' | ' | ' |
Outstanding shares at beginning of year | 242,152 | 392,152 | 392,152 |
Granted during the period (in shares) | 0 | 0 | ' |
Expired / forfeited during the period (in shares) | -5,000 | ' | ' |
Surrendered/Exchanged for restricted stock (in shares) | ' | -150,000 | -150,000 |
Outstanding shares at end of period | 237,152 | 242,152 | 242,152 |
Exercisable shares at end of period | 125,861 | 107,561 | 126,361 |
Weighted average exercise price per share at end of period (in dollars per share) | $9.88 | $9.88 | $9.88 |
STOCK_COMPENSATION_PLANS_Detai1
STOCK COMPENSATION PLANS (Details 2) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Stock option plans | ' |
Number of Shares, Outstanding | 237,152 |
Number of Shares, Exercisable | 125,861 |
Number of Shares, Unvested Options | 111,291 |
Weighted Average Remaining Contractual Life-Years | '1 year 3 months 25 days |
Exercise price, one | ' |
Stock option plans | ' |
Exercise Price (in dollars per share) | 9.75 |
Number of Shares, Outstanding | 217,152 |
Number of Shares, Exercisable | 120,861 |
Number of Shares, Unvested Options | 96,291 |
Weighted Average Remaining Contractual Life-Years | '1 year 2 months 16 days |
Exercise price, two | ' |
Stock option plans | ' |
Exercise Price (in dollars per share) | 10.65 |
Number of Shares, Outstanding | 10,000 |
Number of Shares, Exercisable | 2,500 |
Number of Shares, Unvested Options | 7,500 |
Weighted Average Remaining Contractual Life-Years | '3 years 2 months 16 days |
Exercise price, three | ' |
Stock option plans | ' |
Exercise Price (in dollars per share) | 12 |
Number of Shares, Outstanding | 10,000 |
Number of Shares, Exercisable | 2,500 |
Number of Shares, Unvested Options | 7,500 |
Weighted Average Remaining Contractual Life-Years | '1 year 9 months 14 days |
STOCK_COMPENSATION_PLANS_Detai2
STOCK COMPENSATION PLANS (Details 3) (Restricted Stock Units, USD $) | 1 Months Ended |
Aug. 31, 2012 | |
Restricted Stock Units | ' |
Stock Compensation Plans | ' |
Number of RSUs granted (in shares) | 148,500 |
Market value of granted stock (in dollars per unit) | $7.91 |
Vesting term of restricted stock units | '4 years |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | |
INCOME TAXES | ' | ' | ' |
Net operating loss (NOL) carryforwards | $19,200,000 | ' | ' |
Tax credit carryforwards | 2,100,000 | ' | ' |
Expiration period from date of origination for net operating loss carryforwards | '20 years | ' | ' |
Portion of the NOL subject to limitations for utilization | 14,200,000 | ' | ' |
Annual limitation for usage of NOL | 1,400,000 | ' | ' |
Annual limitation for usage of tax credits | 476,000 | ' | ' |
Deferred tax assets, net of valuation allowance | 7,953,000 | 9,131,000 | 9,670,000 |
Valuation allowance | 3,000,000 | ' | ' |
Adjustment warranted to the valuation | $0 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
FAIR VALUE MEASUREMENTS | ' | ' | ' |
Blended interest rate for determining fair value of nonaccrual loans (as a percent) | 0.00% | ' | ' |
Financial assets: | ' | ' | ' |
Interest-bearing deposits | $10 | $10 | $10 |
Securities available for sale | 48,096 | 43,799 | 42,476 |
Carrying Amount | ' | ' | ' |
Financial assets: | ' | ' | ' |
Total financial assets | 543,032 | 519,108 | 523,297 |
Financial liabilities: | ' | ' | ' |
Total financial liabilities | 497,740 | 470,696 | 475,526 |
Estimated Fair Value | ' | ' | ' |
Financial assets: | ' | ' | ' |
Total financial assets | 535,505 | 514,388 | 519,931 |
Financial liabilities: | ' | ' | ' |
Total financial liabilities | 495,610 | 470,170 | 475,058 |
Level 1 | Carrying Amount | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | 22,794 | 26,961 | 47,405 |
Level 1 | Estimated Fair Value | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and cash equivalents | 22,794 | 26,961 | 47,405 |
Level 2 | Carrying Amount | ' | ' | ' |
Financial assets: | ' | ' | ' |
Interest-bearing deposits | 10 | 10 | 10 |
Securities available for sale | 48,096 | 43,799 | 42,476 |
Federal Home Loan Bank stock | 3,060 | 3,060 | 3,060 |
Financial liabilities: | ' | ' | ' |
Deposits | 461,688 | 434,557 | 439,363 |
Borrowings | 35,852 | 35,925 | 35,925 |
Accrued interest payable | 200 | 214 | 238 |
Level 2 | Estimated Fair Value | ' | ' | ' |
Financial assets: | ' | ' | ' |
Interest-bearing deposits | 10 | 10 | 10 |
Securities available for sale | 48,096 | 43,799 | 42,476 |
Federal Home Loan Bank stock | 3,060 | 3,060 | 3,060 |
Financial liabilities: | ' | ' | ' |
Deposits | 459,862 | 434,227 | 439,139 |
Borrowings | 35,548 | 35,729 | 35,681 |
Accrued interest payable | 200 | 214 | 238 |
Level 3 | Carrying Amount | ' | ' | ' |
Financial assets: | ' | ' | ' |
Net loans | 467,536 | 443,959 | 428,772 |
Accrued interest receivable | 1,536 | 1,319 | 1,574 |
Level 3 | Estimated Fair Value | ' | ' | ' |
Financial assets: | ' | ' | ' |
Net loans | 460,009 | 439,239 | 425,406 |
Accrued interest receivable | $1,536 | $1,319 | $1,574 |
FAIR_VALUE_MEASUREMENTS_Detail1
FAIR VALUE MEASUREMENTS (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Fair value measurements | ' | ' | ' |
Other real estate owned | $2,568 | $3,212 | $3,511 |
Nonrecurring | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Investments | 0 | ' | ' |
Nonrecurring | Total | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Impaired loans | 4,313 | 4,687 | 5,290 |
Other real estate owned | 2,568 | 3,212 | 3,511 |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Impaired loans | 4,313 | 4,687 | 5,290 |
Other real estate owned | 2,568 | 3,212 | 3,511 |
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value measurements | ' | ' | ' |
Assets | 0 | 0 | 0 |
Liabilities | $0 | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_Detail2
FAIR VALUE MEASUREMENTS (Details 3) (Nonrecurring, USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Fair value | ' | ' | ' | ' | ' |
Total Losses | $588 | $318 | $1,095 | $1,515 | $1,640 |
Impaired loans | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' |
Total Losses | 531 | 53 | 949 | 1,065 | 1,151 |
Other real estate owned | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' |
Total Losses | $57 | $265 | $146 | $450 | $489 |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDER'S EQUITY (Details) (USD $) | Jun. 30, 2013 | Apr. 24, 2009 | Apr. 24, 2009 | Sep. 30, 2013 | Apr. 24, 2009 | Dec. 31, 2012 |
US Treasury with TARP Capital Purchase Program | US Treasury with TARP Capital Purchase Program | US Treasury with TARP Capital Purchase Program | US Treasury with TARP Capital Purchase Program | US Treasury with TARP Capital Purchase Program | ||
Preferred Stock | Preferred Stock | Warrant | Warrant | |||
Series A | Series A | |||||
Participation in the TARP Capital Purchase Program | ' | ' | ' | ' | ' | ' |
Shares issued | ' | ' | 11,000 | ' | ' | ' |
Number of shares that can be purchased | ' | ' | ' | ' | 379,310 | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | $4.35 | ' |
Proceeds from issuance of Series A Preferred Shares and common stock warrants | ' | $11,000,000 | ' | ' | ' | ' |
Estimated discount rate to determine the fair value of stock (as a percent) | ' | ' | 12.00% | ' | ' | ' |
Term used to determine fair value | ' | ' | '3 years | ' | '3 years | ' |
Allocated carrying value of Preferred Stock | 11,000,000 | ' | 10,382,000 | ' | ' | ' |
Allocated carrying value of Warrant Common Stock | ' | ' | ' | ' | 618,000 | ' |
Annual rate of cumulative dividends on Preferred Stock for the first five years (as a percent) | ' | ' | ' | 5.00% | ' | ' |
Annual rate of cumulative dividends on Preferred Stock after the first five years (as a percent) | ' | ' | ' | 9.00% | ' | ' |
Liquidation preference (in dollars per share) | ' | ' | ' | $1,000 | ' | ' |
Cost of purchase of warrants from treasury | ' | ' | ' | ' | ' | 1,300,000 |
Preferred stock redeemed | $7,000,000 | ' | ' | ' | ' | ' |
COMMITMENTS_CONTINGENCIES_AND_2
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Financial Instruments with Off-Balance-Sheet Risk | ' | ' | ' |
Commitments | $64,500 | $64,148 | $66,292 |
Commitments to extend credit | ' | ' | ' |
Financial Instruments with Off-Balance-Sheet Risk | ' | ' | ' |
Commitments, variable rate | 32,061 | 39,782 | 38,068 |
Commitments, fixed rate | 24,536 | 18,427 | 21,247 |
Standby letters of credit | ' | ' | ' |
Financial Instruments with Off-Balance-Sheet Risk | ' | ' | ' |
Commitments, variable rate | 4,741 | 2,879 | 3,816 |
Percentage collateralization on financial instruments allowed under commitments | 100.00% | ' | ' |
Credit card commitments | ' | ' | ' |
Financial Instruments with Off-Balance-Sheet Risk | ' | ' | ' |
Commitments, fixed rate | $3,162 | $3,060 | $3,161 |
COMMITMENTS_CONTINGENCIES_AND_3
COMMITMENTS, CONTINGENCIES AND CREDIT RISK (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Commercial real estate loans | Commercial real estate loans | Commercial real estate loans | Bank | Bank | |||
Commercial real estate loans | Commercial real estate loans | |||||||
Commercial loan portfolio | Commercial loan portfolio | |||||||
Credit risk concentration | Credit risk concentration | |||||||
Concentration of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' |
Loan portfolio | $467,536 | $443,959 | $428,772 | $255,406 | $241,699 | $221,213 | $101,406 | $88,505 |
Percentage of concentration risk under a specified benchmark | ' | ' | ' | ' | ' | ' | 28.68% | 26.83% |