Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 21, 2014 | Jun. 30, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'FIRST NATIONAL CORP /VA/ | ' | ' |
Entity Central Index Key | '0000719402 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 4,901,464 | ' |
Entity Public Float | ' | ' | $22,449,414 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $5,767 | $7,266 |
Interest-bearing deposits in banks | 25,741 | 23,762 |
Securities available for sale, at fair value | 103,301 | 89,456 |
Restricted securities, at cost | 1,804 | 1,974 |
Loans held for sale | ' | 503 |
Loans, net of allowance for loan losses, 2013, $10,644, 2012, $13,075 | 346,449 | 370,519 |
Other real estate owned, net of valuation allowance, 2013, $1,665, 2012, $2,174 | 3,030 | 5,590 |
Premises and equipment, net | 16,642 | 18,589 |
Accrued interest receivable | 1,302 | 1,459 |
Bank owned life insurance | 10,978 | 10,609 |
Other assets | 7,876 | 2,970 |
Total assets | 522,890 | 532,697 |
Deposits: | ' | ' |
Noninterest-bearing demand deposits | 92,901 | 85,118 |
Savings and interest-bearing demand deposits | 234,054 | 221,601 |
Time deposits | 123,756 | 160,198 |
Total deposits | 450,711 | 466,917 |
Other borrowings | 6,052 | 6,076 |
Trust preferred capital notes | 9,279 | 9,279 |
Accrued interest payable and other liabilities | 3,288 | 5,536 |
Total liabilities | 469,330 | 487,808 |
Shareholders' Equity | ' | ' |
Preferred stock, $1,000 per share liquidation preference; authorized 1,000,000 shares 14,595 shares issued and outstanding, net of discount | 14,564 | 14,409 |
Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2013 and 2012, 4,901,464 shares | 6,127 | 6,127 |
Surplus | 6,813 | 6,813 |
Retained earnings | 27,360 | 18,399 |
Accumulated other comprehensive loss, net | -1,304 | -859 |
Total shareholders' equity | 53,560 | 44,889 |
Total liabilities and shareholders' equity | $522,890 | $532,697 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for loan losses | $10,644 | $13,075 |
Other real estate owned, valuation allowance | $1,665 | $2,174 |
Preferred stock, liquidation preference | $1,000 | $1,000 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 14,595 | 14,595 |
Preferred stock, shares outstanding | 14,595 | 14,595 |
Common stock, par value | $1.25 | $1.25 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,901,464 | 4,901,464 |
Common stock, shares outstanding | 4,901,464 | 4,901,464 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest and Dividend Income | ' | ' | ' |
Interest and fees on loans | $18,844 | $21,062 | $22,907 |
Interest on federal funds sold | ' | 12 | 18 |
Interest on deposits in banks | 61 | 30 | 18 |
Interest and dividends on securities available for sale: | ' | ' | ' |
Taxable interest | 1,870 | 1,924 | 2,152 |
Tax-exempt interest | 307 | 327 | 483 |
Dividends | 75 | 77 | 70 |
Total interest and dividend income | 21,157 | 23,432 | 25,648 |
Interest Expense | ' | ' | ' |
Interest on deposits | 2,368 | 3,707 | 4,843 |
Interest on trust preferred capital notes | 222 | 238 | 386 |
Interest on other borrowings | 119 | 222 | 221 |
Total interest expense | 2,709 | 4,167 | 5,450 |
Net interest income | 18,448 | 19,265 | 20,198 |
Provision for (recovery of) loan losses | -425 | 3,555 | 12,380 |
Net interest income after provision for (recovery of) loan losses | 18,873 | 15,710 | 7,818 |
Noninterest Income | ' | ' | ' |
Service charges on deposit accounts | 2,204 | 2,127 | 2,237 |
ATM and check card fees | 1,425 | 1,481 | 1,535 |
Wealth management fees | 1,696 | 1,450 | 1,407 |
Fees for other customer services | 391 | 390 | 369 |
Income from bank owned life insurance | 358 | 14 | ' |
Net gains on sale of securities available for sale | ' | 1,285 | 59 |
Net gains on sale of loans | 193 | 214 | 131 |
Gain on termination of postretirement benefit | 543 | ' | ' |
Other operating income | 121 | 211 | 61 |
Total noninterest income | 6,931 | 7,172 | 5,799 |
Noninterest Expense | ' | ' | ' |
Salaries and employee benefits | 10,528 | 9,590 | 9,460 |
Occupancy | 1,282 | 1,343 | 1,354 |
Equipment | 1,208 | 1,208 | 1,272 |
Marketing | 345 | 430 | 425 |
Stationery and supplies | 288 | 308 | 323 |
Legal and professional fees | 975 | 975 | 969 |
ATM and check card fees | 668 | 649 | 661 |
FDIC assessment | 884 | 709 | 768 |
Bank franchise tax | 279 | 260 | 416 |
Telecommunications expense | 283 | 245 | 300 |
Data processing expense | 376 | 347 | 306 |
Other real estate owned expense, net | 1,115 | 1,355 | 3,040 |
Net (gain) loss on disposal of premises and equipment | 601 | -2 | ' |
Loss on lease termination | 263 | ' | ' |
Other operating expense | 1,655 | 1,700 | 1,449 |
Total noninterest expense | 20,750 | 19,117 | 20,743 |
Income (loss) before income taxes | 5,054 | 3,765 | -7,126 |
Income tax provision (benefit) | -4,820 | 965 | 3,835 |
Net income (loss) | 9,874 | 2,800 | -10,961 |
Effective dividend and accretion on preferred stock | 913 | 904 | 894 |
Net income (loss) available to common shareholders | $8,961 | $1,896 | ($11,855) |
Earnings (loss) per common share, basic and diluted | $1.83 | $0.48 | ($4.01) |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | $9,874 | $2,800 | ($10,961) |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Unrealized gain (loss) on available for sale securities | -2,899 | -111 | 2,248 |
Reclassification adjustment | ' | -1,285 | -59 |
Pension liability adjustment | 2,454 | -454 | -1,332 |
Other comprehensive income (loss) | -445 | -1,850 | 857 |
Total comprehensive income (loss) | $9,429 | $950 | ($10,104) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | $9,874 | $2,800 | ($10,961) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 1,011 | 1,110 | 1,184 |
Origination of loans held for sale | -2,567 | -8,627 | -8,408 |
Proceeds from sale of loans held for sale | 3,263 | 8,612 | 8,536 |
Net gains on sales of loans | -193 | -214 | -131 |
Provision for (recovery of) loan losses | -425 | 3,555 | 12,380 |
Provision for other real estate owned | 1,055 | 1,190 | 1,558 |
Net gains on sale of securities available for sale | ' | -1,285 | -59 |
Net (gains) losses on sale of other real estate owned | -90 | -278 | 910 |
Income from bank owned life insurance | -358 | -14 | ' |
Gain on termination of postretirement benefit | -543 | ' | ' |
Accretion of discounts and amortization of premiums on securities, net | 859 | 885 | 511 |
Net (gain) loss on disposal of premises and equipment | 601 | -2 | ' |
Deferred income tax expense (benefit) | -4,776 | ' | 6,442 |
Changes in assets and liabilities: | ' | ' | ' |
Decrease in interest receivable | 157 | 161 | 47 |
(Increase) decrease in other assets | 153 | 3,620 | -1,186 |
Increase (decrease) in accrued expenses and other liabilities | 660 | 705 | -387 |
Net cash provided by (used in) operating activities | 8,681 | 12,218 | 10,436 |
Cash Flows from Investing Activities | ' | ' | ' |
Proceeds from sales of securities available for sale | 1,850 | 26,158 | 3,532 |
Proceeds from redemption of restricted securities | 170 | 831 | 378 |
Proceeds from maturities, calls, and principal payments of securities available for sale | 22,037 | 29,121 | 23,176 |
Purchases of securities available for sale | -42,073 | -54,096 | -56,690 |
Purchases of restricted securities | ' | -30 | ' |
Decrease in federal funds sold | ' | ' | 7,500 |
Purchase of premises and equipment | -548 | -553 | -472 |
Proceeds from sale of premises and equipment | 2 | 2 | ' |
Proceeds from sale of other real estate owned | 3,618 | 5,438 | 3,321 |
Purchase of bank owned life insurance | ' | -9,000 | ' |
Net (increase) decrease in loans | 23,731 | -149 | 18,994 |
Net cash provided by (used in) investing activities | 8,787 | -2,278 | -261 |
Cash Flows from Financing Activities | ' | ' | ' |
Net increase in demand deposits and savings accounts | 20,236 | 26,811 | 22,259 |
Net decrease in time deposits | -36,442 | -29,066 | -16,587 |
Proceeds from other borrowings | ' | 2 | 42,002 |
Principal payments on other borrowings | -24 | -13,026 | -43,024 |
Net proceeds from issuance of common stock | ' | 7,601 | ' |
Cash dividends paid on common stock | ' | ' | -540 |
Cash dividends paid on preferred stock | -758 | -758 | -758 |
Net cash provided by (used in) financing activities | -16,988 | -8,436 | 3,352 |
Increase (decrease) in cash and cash equivalents | 480 | 1,504 | 13,527 |
Cash and cash equivalents, beginning of year | 31,028 | 29,524 | 15,997 |
Cash and cash equivalents, end of year | 31,508 | 31,028 | 29,524 |
Cash payments for: | ' | ' | ' |
Interest | 2,818 | 4,247 | 5,635 |
Income taxes | 310 | 1,010 | ' |
Supplemental Disclosures of Noncash Transactions | ' | ' | ' |
Unrealized gains (losses) on securities available for sale | -3,482 | 1,396 | 1,715 |
Change in pension liability | -2,364 | 454 | 898 |
Transfer from loans to other real estate owned | 764 | 5,578 | 8,117 |
Transfer from premises and equipment to other real estate owned | 881 | ' | ' |
Transfer from other assets to other real estate owned | 391 | ' | ' |
Issuance of common stock dividend reinvestment plan | ' | ' | $71 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Beginning Balance at Dec. 31, 2010 | $48,498 | $14,127 | $3,686 | $1,582 | $28,969 | $134 |
Net income (loss) | -10,961 | ' | ' | ' | -10,961 | ' |
Other comprehensive income (loss) | 857 | ' | ' | ' | ' | 857 |
Cash dividends on common stock | -611 | ' | ' | ' | -611 | ' |
Issuance of common stock, dividend reinvestment plan | 71 | ' | 9 | 62 | ' | ' |
Cash dividends on preferred stock | -758 | ' | ' | ' | -758 | ' |
Accretion on preferred stock discount | ' | 136 | ' | ' | -136 | ' |
Ending Balance at Dec. 31, 2011 | 37,096 | 14,263 | 3,695 | 1,644 | 16,503 | 991 |
Net income (loss) | 2,800 | ' | ' | ' | 2,800 | ' |
Other comprehensive income (loss) | -1,850 | ' | ' | ' | ' | -1,850 |
Issuance of common stock, net of offering costs | 7,601 | ' | 2,432 | 5,169 | ' | ' |
Cash dividends on preferred stock | -758 | ' | ' | ' | -758 | ' |
Accretion on preferred stock discount | ' | 146 | ' | ' | -146 | ' |
Ending Balance at Dec. 31, 2012 | 44,889 | 14,409 | 6,127 | 6,813 | 18,399 | -859 |
Net income (loss) | 9,874 | ' | ' | ' | 9,874 | ' |
Other comprehensive income (loss) | -445 | ' | ' | ' | ' | -445 |
Cash dividends on preferred stock | -758 | ' | ' | ' | -758 | ' |
Accretion on preferred stock discount | ' | 155 | ' | ' | -155 | ' |
Ending Balance at Dec. 31, 2013 | $53,560 | $14,564 | $6,127 | $6,813 | $27,360 | ($1,304) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended |
Dec. 31, 2011 | |
Cash dividends on common stock, per share | $0.20 |
Issuance of common stock dividend reinvestment plan, shares | 6,748 |
Common Stock [Member] | ' |
Issuance of common stock dividend reinvestment plan, shares | 6,748 |
Surplus [Member] | ' |
Issuance of common stock dividend reinvestment plan, shares | 6,748 |
Retained Earnings [Member] | ' |
Cash dividends on common stock, per share | $0.20 |
Nature_of_Banking_Activities_a
Nature of Banking Activities and Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Nature of Banking Activities and Significant Accounting Policies | ' | |||
Note 1. | Nature of Banking Activities and Significant Accounting Policies | |||
First National Corporation (the Company) is the bank holding company of First Bank (the Bank), First National (VA) Statutory Trust II (Trust II) and First National (VA) Statutory Trust III (Trust III). The Trusts were formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities. The Bank owns First Bank Financial Services, Inc., which invests in entities that provide title insurance and investment services. The Bank owns Shen-Valley Land Holdings, LLC which holds other real estate owned. The Bank provides loan, deposit, wealth management and other products and services in the northern Shenandoah Valley region of Virginia. Loan products and services include personal loans, residential mortgages, home equity loans and commercial loans. Deposit products and services include checking, savings, NOW accounts, money market accounts, IRA accounts, certificates of deposit and cash management accounts. The Bank offers other services, including internet banking, mobile banking, remote deposit capture and other traditional banking services. | ||||
The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to accepted practices within the banking industry. | ||||
Principles of Consolidation | ||||
The consolidated financial statements of First National Corporation include the accounts of all six companies. All material intercompany balances and transactions have been eliminated in consolidation, except for balances and transactions related to the Trusts. The subordinated debt of these Trusts is reflected as a liability of the Company. | ||||
Use of Estimates | ||||
In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, valuation of deferred tax assets and liabilities, valuation of other real estate owned, pension obligations and other-than-temporary impairment of securities. | ||||
Significant Group Concentrations of Credit Risk | ||||
Most of the Company’s activities are with customers located within the northern Shenandoah Valley region of Virginia. The types of lending that the Company engages in are included in Note 3. The Company does not have a significant concentration to any one customer. | ||||
Cash and Cash Equivalents | ||||
For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” | ||||
Securities | ||||
Investments in debt securities with readily determinable fair values are classified as either held to maturity, available for sale (AFS) or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as AFS. Equity investments in the FHLB, the Federal Reserve Bank of Richmond and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. | ||||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company (1) intends to sell the security or (2) it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. | ||||
For equity securities carried at cost as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. | ||||
The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. | ||||
Loans Held for Sale | ||||
Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||||
The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 60 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. | ||||
The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no gain or loss occurs on the rate lock commitments. | ||||
Loans | ||||
The Company, through its banking subsidiary, grants mortgage, commercial and consumer loans to customers. The bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1-4 Family Residential; and Other Real Estate Loans. Descriptions of the Company’s loan classes are as follows: | ||||
Real Estate Loans – Construction and Land Development: The Company originates construction loans for the acquisition and development of land and construction of condominiums, townhomes, and one-to-four family residences. | ||||
Real Estate Loans – 1-4 Family: This class of loans includes loans secured by one-to-four family homes. In addition to traditional residential mortgage loans secured by a first or junior lien on the property, the Bank offers home equity lines of credit. | ||||
Real Estate Loans – Other: This loan class consists primarily of loans secured by various types of commercial real estate typically in the Bank’s market area, including multi-family residential buildings, commercial buildings and offices, hotels, small shopping centers, farms and churches. | ||||
Commercial and Industrial Loans: Commercial loans are typically secured with non-real estate commercial property. The Company makes commercial loans primarily to businesses located within its market area. | ||||
Consumer and Other Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include new and used automobile loans, unsecured loans and lines of credit. | ||||
A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the northern Shenandoah Valley region of Virginia. The ability of the Bank’s debtors to honor their contracts may be impacted by the real estate and general economic conditions in this area. | ||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances less the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued and credited to income based on the unpaid principal balance. Loan origination fees, net of certain origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. | ||||
A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on non-accrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. These policies are applied consistently across the loan portfolio. | ||||
All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||
Any unsecured loan that is deemed uncollectible is charged-off in full. Any secured loan that is considered by management to be uncollectible is partially charged-off and carried at the fair value of the collateral less estimated selling costs. This charge-off policy applies to all loan segments. | ||||
Impaired Loans | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair market value of the collateral, net of selling costs, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company typically does not separately identify individual consumer, residential and certain small commercial loans that are less than $250 thousand for impairment disclosures, except for troubled debt restructurings (TDRs) as noted below. | ||||
Troubled Debt Restructurings (TDR) | ||||
In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on non-accrual status at the time of the TDR, the loan will remain on non-accrual status following the modification and may be returned to accrual status based on the policy for returning loans to accrual status as noted above. There were $1.9 million and $6.3 million in loans classified as TDRs as of December 31, 2013 and 2012, respectively. | ||||
Allowance for Loan Losses | ||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 and 4. | ||||
The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||||
The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of the collateral, overall portfolio quality and review of specific potential losses. The evaluation also considers the following risk characteristics of each loan portfolio class: | ||||
• | 1-4 family residential mortgage loans carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. | |||
• | Real estate construction and land development loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. | |||
• | Other real estate loans and commercial and industrial loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. | |||
• | Consumer and other loans carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral, i.e. rapidly depreciating assets such as automobiles, or lack thereof. Consumer loans are likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy, or other changes in circumstances. | |||
The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions among other considerations. | ||||
The general component covers loans that are not considered impaired and is based on historical loss experience adjusted for qualitative factors. The historical loss experience is calculated by loan type and uses an average loss rate during the preceding twelve quarters. The qualitative factors are assigned by management based on delinquencies and asset quality, national and local economic trends, effects of the changes in the value of underlying collateral, trends in volume and terms of loans, effects of changes in lending policy, the experience and depth of management, concentrations of credit, quality of the loan review system and the effect of external factors such as competition and regulatory requirements. The factors assigned differ by loan type. The general allowance estimates losses whose impact on the portfolio has yet to be recognized by a specific allowance. Allowance factors and the overall size of the allowance may change from period to period based on management’s assessment of the above described factors and the relative weights given to each factor. | ||||
Premises and Equipment | ||||
Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to forty years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from three to seven years. Depreciation and amortization are recorded on the straight-line method. | ||||
Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. | ||||
Other Real Estate Owned | ||||
Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance foreclosure in satisfaction of loans and properties originally acquired for branch expansion but no longer intended to be used for that purpose. OREO is reported at the lower of cost or fair value less costs to sell, determined on the basis of current appraisals, comparable sales, and other estimates of fair value obtained principally from independent sources, adjusted for estimated selling costs. Management also considers other factors or recent developments, such as changes in absorption rates or market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition, which could result in adjustments to the collateral value estimates indicated in the appraisals. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its distressed asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from appraisals, comparable sales, and other estimates used to determine the fair value of other real estate. Management reviews the value of other real estate each quarter and adjusts the values as appropriate. Revenue and expenses from operations and changes in the valuation allowance are included in other real estate owned expenses. | ||||
Bank-Owned Life Insurance | ||||
The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as other income on the consolidated statements of operations. In the event of the death of an insured individual under these policies, the Company would receive a death benefit which would be recorded as other income. | ||||
Transfers of Financial Assets | ||||
Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. | ||||
Income Taxes | ||||
The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. See Note 10 for details on the Company’s income taxes. | ||||
The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. | ||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. There was no liability for unrecognized tax benefits as of December 31, 2013 and 2012. Interest and penalties associated with unrecognized tax benefits, if any, are classified as additional income taxes in the consolidated statement of operations. | ||||
Wealth Management Department | ||||
Securities and other property held by the Wealth Management Department in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. | ||||
Earnings Per Common Share | ||||
Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. There are no potential common shares that would have a dilutive effect. Shares not committed to be released under the Company’s leveraged Employee Stock Ownership Plan (ESOP) are not considered to be outstanding. See Note 12 for further information on the Company’s ESOP. The average number of common shares outstanding used to calculate basic and diluted earnings per common share were 4,901,464, 3,944,506 and 2,953,344 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Advertising Costs | ||||
The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2013, 2012 and 2011 was $269 thousand, $364 thousand and $368 thousand, respectively. | ||||
Comprehensive Income (Loss) | ||||
Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and pension liability adjustments, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). | ||||
Reclassifications | ||||
Certain reclassifications have been made to prior period balances to conform to the current year presentation. These reclassifications were immaterial. | ||||
Recent Accounting Pronouncements | ||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | ||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this Update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently assessing the impact that ASU 2014-04 will have on its consolidated financial statements. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Note 2. | Securities | ||||||||||||||||||||||||
The Company invests in U.S. agency and mortgage-backed securities, obligations of states and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 86,365 | $ | 670 | $ | (2,138 | ) | $ | 84,897 | ||||||||||||||||
Obligations of states and political subdivisions | 18,647 | 350 | (598 | ) | 18,399 | ||||||||||||||||||||
Corporate equity securities | 1 | 4 | — | 5 | |||||||||||||||||||||
$ | 105,013 | $ | 1,024 | $ | (2,736 | ) | $ | 103,301 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 72,129 | $ | 1,325 | $ | (236 | ) | $ | 73,218 | ||||||||||||||||
Obligations of states and political subdivisions | 15,556 | 762 | (83 | ) | 16,235 | ||||||||||||||||||||
Corporate equity securities | 1 | 2 | — | 3 | |||||||||||||||||||||
$ | 87,686 | $ | 2,089 | $ | (319 | ) | $ | 89,456 | |||||||||||||||||
At December 31, 2013 and 2012, investments in an unrealized loss position that are temporarily impaired were as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 49,810 | $ | (1,755 | ) | $ | 10,180 | $ | (383 | ) | $ | 59,990 | $ | (2,138 | ) | ||||||||||
Obligations of states and political subdivisions | 7,165 | (422 | ) | 2,663 | (176 | ) | 9,828 | (598 | ) | ||||||||||||||||
$ | 56,975 | $ | (2,177 | ) | $ | 12,843 | $ | (559 | ) | $ | 69,818 | $ | (2,736 | ) | |||||||||||
2012 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 19,612 | $ | (236 | ) | $ | — | $ | — | $ | 19,612 | $ | (236 | ) | |||||||||||
Obligations of states and political subdivisions | 4,287 | (83 | ) | — | — | 4,287 | (83 | ) | |||||||||||||||||
$ | 23,899 | $ | (319 | ) | $ | — | $ | — | $ | 23,899 | $ | (319 | ) | ||||||||||||
The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, will not be required to sell these securities, and expects to recover the entire amortized cost of all the securities. | |||||||||||||||||||||||||
At December 31, 2013, there were forty U.S. agency and mortgage-backed securities and twenty-one obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing term of the portfolio was 4.5 years at December 31, 2013. At December 31, 2012, there were twelve U.S. agency and mortgage-backed securities and nine obligations of states and political subdivisions in an unrealized loss position. The weighted-average re-pricing term of the portfolio was 3.6 years at December 31, 2012. The change in the unrealized gains and losses from December 31, 2012 to December 31, 2013 in the U.S. Agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio was related to changes in market interest rates and not credit concerns of the issuers. | |||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale at December 31, 2013 by contractual maturity are shown below. Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date. | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due within one year | $ | 899 | $ | 923 | |||||||||||||||||||||
Due after one year through five years | 5,301 | 5,329 | |||||||||||||||||||||||
Due after five years through ten years | 20,353 | 19,901 | |||||||||||||||||||||||
Due after ten years | 78,459 | 77,143 | |||||||||||||||||||||||
Corporate equity securities | 1 | 5 | |||||||||||||||||||||||
$ | 105,013 | $ | 103,301 | ||||||||||||||||||||||
Proceeds from sales, calls and maturities of securities available for sale during 2013, 2012 and 2011 were $4.6 million, $36.3 million and $14.9 million, respectively. Gross gains of $1.3 million and $65 thousand were realized on those sales during 2012 and 2011, respectively. There were no gross gains realized in 2013. Gross losses of $6 thousand were realized on those sales during 2011. There were no gross losses realized in 2013 and 2012. | |||||||||||||||||||||||||
Securities having a book value of $3.1 million and $24.0 million at December 31, 2013 and 2012 were pledged to secure public deposits and for other purposes required by law. | |||||||||||||||||||||||||
Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2013, and no impairment has been recognized. Restricted securities are not part of the available for sale securities portfolio. | |||||||||||||||||||||||||
The composition of restricted securities at December 31, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | $ | 908 | $ | 1,078 | |||||||||||||||||||||
Federal Reserve Bank stock | 846 | 846 | |||||||||||||||||||||||
Community Bankers’ Bank stock | 50 | 50 | |||||||||||||||||||||||
$ | 1,804 | $ | 1,974 | ||||||||||||||||||||||
Loans
Loans | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||
Loans | ' | ||||||||||||||||||||||||||||||||
Note 3. | Loans | ||||||||||||||||||||||||||||||||
Loans at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 34,060 | $ | 43,524 | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | 141,961 | 134,964 | |||||||||||||||||||||||||||||||
Other real estate | 145,968 | 174,220 | |||||||||||||||||||||||||||||||
Commercial and industrial loans | 22,803 | 23,071 | |||||||||||||||||||||||||||||||
Consumer and other loans | 12,301 | 7,815 | |||||||||||||||||||||||||||||||
Total loans | $ | 357,093 | $ | 383,594 | |||||||||||||||||||||||||||||
Allowance for loan losses | (10,644 | ) | (13,075 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 346,449 | $ | 370,519 | |||||||||||||||||||||||||||||
Net deferred loan fees included in the above loan categories were $18 thousand at December 31, 2013. Net deferred loan costs included in the above loan categories were $89 thousand at December 31, 2012. Consumer and other loans included $279 thousand and $153 thousand of demand deposit overdrafts at December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non- | 90 Days | ||||||||||||||||||||||||||
Days | Days | Days | Past Due | Loans | Accrual | or More | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans | Past Due | |||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 161 | $ | 2,852 | $ | 3,339 | $ | 6,352 | $ | 27,708 | $ | 34,060 | $ | 5,811 | $ | — | |||||||||||||||||
1-4 family residential | 1,561 | 316 | 136 | 2,013 | 139,948 | 141,961 | 953 | 27 | |||||||||||||||||||||||||
Other real estate loans | 1,077 | 1,636 | 74 | 2,787 | 143,181 | 145,968 | 4,756 | — | |||||||||||||||||||||||||
Commercial and industrial | 165 | — | 22 | 187 | 22,616 | 22,803 | 144 | 22 | |||||||||||||||||||||||||
Consumer and other loans | 41 | 5 | — | 46 | 12,255 | 12,301 | 14 | — | |||||||||||||||||||||||||
Total | $ | 3,005 | $ | 4,809 | $ | 3,571 | $ | 11,385 | $ | 345,708 | $ | 357,093 | $ | 11,678 | $ | 49 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non- | 90 Days | ||||||||||||||||||||||||||
Days | Days | Days | Past Due | Loans | Accrual | or More | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans | Past Due | |||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 77 | $ | 701 | $ | 89 | $ | 867 | $ | 42,657 | $ | 43,524 | $ | 646 | $ | — | |||||||||||||||||
1-4 family residential | 2,741 | — | 476 | 3,217 | 131,747 | 134,964 | 968 | 129 | |||||||||||||||||||||||||
Other real estate loans | 1,347 | 686 | 1,476 | 3,509 | 170,711 | 174,220 | 6,752 | — | |||||||||||||||||||||||||
Commercial and industrial | 428 | 408 | 99 | 935 | 22,136 | 23,071 | 14 | 99 | |||||||||||||||||||||||||
Consumer and other loans | 43 | 5 | 8 | 56 | 7,759 | 7,815 | 13 | — | |||||||||||||||||||||||||
Total | $ | 4,636 | $ | 1,800 | $ | 2,148 | $ | 8,584 | $ | 375,010 | $ | 383,594 | $ | 8,393 | $ | 228 | |||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||
As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans. The Company utilizes a risk grading matrix to assign a rating to each of its loans. The loan ratings are summarized into the following categories: pass, special mention, substandard, doubtful and loss. Pass rated loans include all risk rated credits other than those included in special mention, substandard or doubtful. Loans classified as loss are charged-off. Loan officers assign risk grades to loans at origination and as renewals arise. The Bank’s Credit Administration department reviews risk grades for accuracy on a quarterly basis and as credit issues arise. In addition, a certain amount of loans are reviewed each year through the Company’s internal and external loan review process. A description of the general characteristics of the loan grading categories is as follows: | |||||||||||||||||||||||||||||||||
Pass – Loans classified as pass exhibit acceptable operating trends, balance sheet trends, and liquidity. Sufficient cash flow exists to service the loan. All obligations have been paid by the borrower in an as agreed manner. | |||||||||||||||||||||||||||||||||
Special Mention – Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the Bank’s credit position at some future date. | |||||||||||||||||||||||||||||||||
Substandard – Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||
Doubtful – Loans classified as doubtful have all the weakness inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Company considers all doubtful loans to be impaired and places the loan on non-accrual status. | |||||||||||||||||||||||||||||||||
Loss – Loans classified as loss are considered uncollectable and of such little value that their continuance as bankable assets is not warranted. | |||||||||||||||||||||||||||||||||
The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 19,724 | $ | 3,500 | $ | 10,836 | $ | — | $ | 34,060 | |||||||||||||||||||||||
Secured by 1-4 family residential | 130,048 | 5,378 | 6,535 | — | 141,961 | ||||||||||||||||||||||||||||
Other real estate loans | 118,663 | 10,227 | 17,078 | — | 145,968 | ||||||||||||||||||||||||||||
Commercial and industrial | 21,563 | 555 | 685 | — | 22,803 | ||||||||||||||||||||||||||||
Consumer and other loans | 12,287 | — | 14 | — | 12,301 | ||||||||||||||||||||||||||||
Total | $ | 302,285 | $ | 19,660 | $ | 35,148 | $ | — | $ | 357,093 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 22,384 | $ | 5,176 | $ | 15,964 | $ | — | $ | 43,524 | |||||||||||||||||||||||
Secured by 1-4 family residential | 120,692 | 6,055 | 8,217 | — | 134,964 | ||||||||||||||||||||||||||||
Other real estate loans | 134,701 | 14,513 | 25,006 | — | 174,220 | ||||||||||||||||||||||||||||
Commercial and industrial | 18,831 | 798 | 3,442 | — | 23,071 | ||||||||||||||||||||||||||||
Consumer and other loans | 7,743 | 72 | — | — | 7,815 | ||||||||||||||||||||||||||||
Total | $ | 304,351 | $ | 26,614 | $ | 52,629 | $ | — | $ | 383,594 | |||||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
Note 4. | Allowance for Loan Losses | ||||||||||||||||||||||||||||
Transactions in the allowance for loan losses for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 13,075 | $ | 12,937 | $ | 16,036 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (425 | ) | 3,555 | 12,380 | |||||||||||||||||||||||||
Loan recoveries | 2,486 | 376 | 310 | ||||||||||||||||||||||||||
Loan charge-offs | (4,492 | ) | (3,793 | ) | (15,789 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 10,644 | $ | 13,075 | $ | 12,937 | |||||||||||||||||||||||
The following tables present, as of December 31, 2013, 2012 and 2011, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2012 | $ | 2,481 | $ | 3,712 | $ | 6,163 | $ | 608 | $ | 111 | $ | 13,075 | |||||||||||||||||
Charge-offs | (2,962 | ) | (260 | ) | (1,070 | ) | (37 | ) | (163 | ) | (4,492 | ) | |||||||||||||||||
Recoveries | — | 823 | 1,304 | 179 | 180 | 2,486 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | 3,191 | (1,300 | ) | (1,979 | ) | (308 | ) | (29 | ) | (425 | ) | ||||||||||||||||||
Ending Balance, December 31, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 882 | 190 | 263 | 44 | — | 1,379 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,828 | 2,785 | 4,155 | 398 | 99 | 9,265 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 34,060 | 141,961 | 145,968 | 22,803 | 12,301 | 357,093 | |||||||||||||||||||||||
Individually evaluated for impairment | 6,862 | 3,431 | 11,143 | 258 | — | 21,694 | |||||||||||||||||||||||
Collectively evaluated for impairment | 27,198 | 138,530 | 134,825 | 22,545 | 12,301 | 335,399 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2011 | $ | 2,843 | $ | 3,766 | $ | 5,192 | $ | 963 | $ | 173 | $ | 12,937 | |||||||||||||||||
Charge-offs | (431 | ) | (761 | ) | (2,154 | ) | (261 | ) | (186 | ) | (3,793 | ) | |||||||||||||||||
Recoveries | 1 | 68 | 64 | 35 | 208 | 376 | |||||||||||||||||||||||
Provision for loan losses | 68 | 639 | 3,061 | (129 | ) | (84 | ) | 3,555 | |||||||||||||||||||||
Ending Balance, December 31, 2012 | $ | 2,481 | $ | 3,712 | $ | 6,163 | $ | 608 | $ | 111 | $ | 13,075 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 567 | 306 | 930 | 35 | — | 1,838 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,914 | 3,406 | 5,233 | 573 | 111 | 11,237 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 43,524 | 134,964 | 176,573 | 20,718 | 7,815 | 383,594 | |||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 2,516 | 3,776 | 10,528 | 160 | — | 16,980 | |||||||||||||||||||||||
Collectively evaluated for impairment | 41,008 | 131,188 | 163,692 | 20,558 | 7,815 | 366,614 | |||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2010 | $ | 4,050 | $ | 1,681 | $ | 9,187 | $ | 858 | $ | 260 | $ | 16,036 | |||||||||||||||||
Charge-offs | (2,983 | ) | (4,369 | ) | (7,551 | ) | (348 | ) | (268 | ) | (15,789 | ) | |||||||||||||||||
Recoveries | 50 | 6 | — | 3 | 251 | 310 | |||||||||||||||||||||||
Provision for loan losses | 1,726 | 6,718 | 3,556 | 450 | (70 | ) | 12,380 | ||||||||||||||||||||||
Ending Balance, December 31, 2011 | $ | 2,843 | $ | 3,766 | $ | 5,192 | $ | 963 | $ | 173 | $ | 12,937 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 930 | 848 | 351 | 309 | — | 2,438 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,913 | 2,918 | 4,841 | 654 | 173 | 10,499 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 48,363 | 122,339 | 181,141 | 29,446 | 11,151 | 392,440 | |||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 7,640 | 6,860 | 10,940 | 480 | — | 25,920 | |||||||||||||||||||||||
Collectively evaluated for impairment | 40,723 | 115,479 | 170,201 | 28,966 | 11,151 | 366,520 | |||||||||||||||||||||||
Impaired loans and the related allowance at December 31, 2013, 2012 and 2011, were as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 9,086 | $ | 4,259 | $ | 2,603 | $ | 6,862 | $ | 882 | $ | 5,397 | $ | 204 | |||||||||||||||
Secured by 1-4 family | 4,341 | 2,515 | 916 | 3,431 | 190 | 2,864 | 146 | ||||||||||||||||||||||
Other real estate loans | 12,385 | 9,455 | 1,688 | 11,143 | 263 | 7,079 | 441 | ||||||||||||||||||||||
Commercial and industrial | 260 | 114 | 144 | 258 | 44 | 669 | 14 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 26,072 | $ | 16,343 | $ | 5,351 | $ | 21,694 | $ | 1,379 | $ | 16,009 | $ | 805 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 2,947 | $ | 622 | $ | 1,894 | $ | 2,516 | $ | 567 | $ | 5,691 | $ | 99 | |||||||||||||||
Secured by 1-4 family | 4,706 | 1,690 | 2,086 | 3,776 | 306 | 4,821 | 163 | ||||||||||||||||||||||
Other real estate loans | 14,861 | 4,886 | 5,642 | 10,528 | 930 | 10,148 | 276 | ||||||||||||||||||||||
Commercial and industrial | 161 | — | 160 | 160 | 35 | 330 | 10 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 22,675 | $ | 7,198 | $ | 9,782 | $ | 16,980 | $ | 1,838 | $ | 20,990 | $ | 548 | |||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 8,106 | $ | 3,531 | $ | 4,109 | $ | 7,640 | $ | 930 | $ | 7,077 | $ | 367 | |||||||||||||||
Secured by 1-4 family | 8,566 | 3,495 | 3,365 | 6,860 | 848 | 6,519 | 301 | ||||||||||||||||||||||
Other real estate loans | 15,165 | 8,135 | 2,805 | 10,940 | 351 | 23,918 | 396 | ||||||||||||||||||||||
Commercial and industrial | 480 | — | 480 | 480 | 309 | 660 | 27 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 32,317 | $ | 15,161 | $ | 10,758 | $ | 25,920 | $ | 2,438 | $ | 38,174 | $ | 1,091 | |||||||||||||||
The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual loans. | |||||||||||||||||||||||||||||
As of December 31, 2013, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $1.9 million. At December 31, 2013, $829 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $6.3 million in TDRs at December 31, 2012, $1.6 million of which were performing under the restructured terms. Modified terms under TDRs may include rate reductions, extension of terms that are considered to be below market, conversion to interest only, and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. There were no loans modified under TDRs during the year ended December 31, 2013. The following table provides further information regarding loans modified under TDRs during the year ended December 31, 2012 and 2011: | |||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||
Number of | Pre-modification | Post-modification | Number of | Pre-modification | Post-modification | ||||||||||||||||||||||||
Contracts | outstanding | outstanding | Contracts | outstanding | outstanding | ||||||||||||||||||||||||
recorded | recorded | recorded | recorded | ||||||||||||||||||||||||||
investment | investment | investment | investment | ||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction | — | $ | — | $ | — | 1 | $ | 701 | $ | 357 | |||||||||||||||||||
Secured by 1-4 family | 1 | 183 | 183 | 4 | 2,667 | 2,667 | |||||||||||||||||||||||
Other real estate loans | 1 | 2,426 | 2,426 | 14 | 12,829 | 12,855 | |||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | |||||||||||||||||||||||
Total | 2 | $ | 2,609 | $ | 2,609 | 19 | $ | 16,197 | $ | 15,879 | |||||||||||||||||||
For the years ended December 31, 2013 and 2012, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. The table below shows troubled debt restructurings that subsequently defaulted as of December 31, 2011: | |||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||||||
Contracts | investment | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | 1 | $ | 235 | ||||||||||||||||||||||||||
Secured by 1-4 family | — | — | |||||||||||||||||||||||||||
Other real estate loans | 3 | 361 | |||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Consumer and other loans | — | — | |||||||||||||||||||||||||||
Total | 4 | $ | 596 | ||||||||||||||||||||||||||
Management defines default as over ninety days past due during the twelve month period subsequent to the modification. | |||||||||||||||||||||||||||||
Non-accrual loans excluded from impaired loan disclosure amounted to $14 thousand, $13 thousand and $103 thousand at December 31, 2013, 2012 and 2011, respectively. Had non-accrual loans performed in accordance with their original contract terms, the Company would have recognized additional interest income in the amount of $483 thousand, $510 thousand and $402 thousand during the years ended December 31, 2013, 2012 and 2011, respectively. |
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||
Other Real Estate Owned | ' | ||||||||||||
Note 5. | Other Real Estate Owned | ||||||||||||
At December 31, 2013 and 2012, other real estate owned (OREO) totaled $3.0 million and $5.6 million, respectively. OREO was primarily comprised of residential lots, raw land, non-residential properties and residential properties associated with commercial relationships, and are located primarily in the Commonwealth of Virginia. Changes in the balance for OREO are as follows: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at the beginning of year, gross | $ | 7,764 | $ | 9,166 | |||||||||
Transfers in | 2,036 | 5,578 | |||||||||||
Charge-offs | (1,564 | ) | (1,808 | ) | |||||||||
Sales proceeds | (3,618 | ) | (5,438 | ) | |||||||||
Gain on disposition | 80 | 268 | |||||||||||
Depreciation | (3 | ) | (2 | ) | |||||||||
Balance at the end of year, gross | 4,695 | 7,764 | |||||||||||
Less: valuation allowance | (1,665 | ) | (2,174 | ) | |||||||||
Balance at the end of year, net | $ | 3,030 | $ | 5,590 | |||||||||
Changes in the allowance for OREO losses are as follows: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 2,174 | $ | 2,792 | $ | 3,341 | |||||||
Provision for losses | 1,055 | 1,190 | 1,558 | ||||||||||
Charge-offs, net | (1,564 | ) | (1,808 | ) | (2,107 | ) | |||||||
Balance at end of year | $ | 1,665 | $ | 2,174 | $ | 2,792 | |||||||
Net expenses applicable to OREO, other than the provision for losses, were $150 thousand, $443 thousand and $572 thousand for the years ended December 31, 2013, 2012, and 2011, respectively. |
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Premises and Equipment | ' | ||||||||
Note 6. | Premises and Equipment | ||||||||
Premises and equipment are summarized as follows at December 31, 2013 and 2012: | |||||||||
(in thousands) | |||||||||
2013 | 2012 | ||||||||
Land | $ | 4,393 | $ | 4,397 | |||||
Buildings and leasehold improvements | 15,030 | 15,954 | |||||||
Furniture and equipment | 9,296 | 9,997 | |||||||
Construction in process | 56 | 790 | |||||||
$ | 28,775 | $ | 31,138 | ||||||
Less accumulated depreciation | 12,133 | 12,549 | |||||||
$ | 16,642 | $ | 18,589 | ||||||
Depreciation expense included in operating expenses for 2013, 2012 and 2011 was $1.0 million, $1.1 million and $1.2 million, respectively. | |||||||||
Deposits
Deposits | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Banking And Thrift [Abstract] | ' | ||||
Deposits | ' | ||||
Note 7. | Deposits | ||||
The aggregate amount of time deposits, in denominations of $100 thousand or more, was $54.6 million and $76.6 million at December 31, 2013 and 2012, respectively. | |||||
The Bank obtains certain deposits through the efforts of third-party brokers. At December 31, 2013 and 2012, brokered deposits totaled $5.1 million and $8.8 million, respectively, and were included in time deposits on the Company’s consolidated financial statements. | |||||
At December 31, 2013, the scheduled maturities of time deposits were as follows: | |||||
(in thousands) | |||||
2014 | $ | 68,817 | |||
2015 | 22,404 | ||||
2016 | 17,090 | ||||
2017 | 3,345 | ||||
2018 | 12,100 | ||||
$ | 123,756 | ||||
Other_Borrowings
Other Borrowings | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Other Borrowings | ' | ||||
Note 8. | Other Borrowings | ||||
The Bank had unused lines of credit totaling $108.4 million and $105.4 million available with non-affiliated banks at December 31, 2013 and 2012, respectively. These amounts primarily consist of a blanket floating lien agreement with the Federal Home Loan Bank of Atlanta in which the Bank can borrow up to 19% of its assets. The unused line of credit with FHLB totaled $68.3 million at December 31, 2013. | |||||
At December 31, 2013 and 2012, the Bank had borrowings from the Federal Home Loan Bank system totaling $6.0 million, which mature through December 28, 2018. The interest rate on these borrowings ranged from 1.78% to 2.04% and the weighted average rate was 1.91% at December 31, 2013 and 2012. The Bank also had a letter of credit from the Federal Home Loan Bank totaling $25.0 million and $30.0 million at December 31, 2013 and 2012, respectively. The Bank had collateral pledged on these borrowings and letter of credit at December 31, 2013 and 2012 including real estate loans totaling $78.6 million and $100.0 million, respectively, and Federal Home Loan Bank stock with a book value of $1.0 million and $1.1 million, respectively. | |||||
At December 31, 2013 and 2012, the Bank had a $52 thousand and $76 thousand, respectively, note payable, secured by a deed of trust, for land purchased to construct a banking office, which requires monthly payments of $2 thousand, and matures January 3, 2016. The fixed interest rate on this loan is 4.00%. | |||||
The contractual maturities of other borrowings at December 31, 2013 were as follows: | |||||
(in thousands) | |||||
2014 | $ | 25 | |||
2015 | 27 | ||||
2016 | — | ||||
2017 | 3,000 | ||||
2018 | 3,000 | ||||
$ | 6,052 | ||||
Trust_Preferred_Capital_Notes
Trust Preferred Capital Notes | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Trust Preferred Capital Notes | ' | |
Note 9. | Trust Preferred Capital Notes | |
On June 8, 2004, First National (VA) Statutory Trust II (Trust II), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities. On June 17, 2004, $5.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at December 31, 2013 and 2012 was 2.84% and 2.91%, respectively. The securities have a mandatory redemption date of June 17, 2034, and were subject to varying call provisions beginning June 17, 2009. The principal asset of Trust II is $5.2 million of the Company’s junior subordinated debt securities with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. | ||
On July 24, 2006, First National (VA) Statutory Trust III (Trust III), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities. On July 31, 2006, $4.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at December 31, 2013 and 2012 was 1.85% and 1.96%, respectively. The securities have a mandatory redemption date of October 1, 2036, and were subject to varying call provisions beginning October 1, 2011. The principal asset of Trust III is $4.1 million of the Company’s junior subordinated debt securities with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. | ||
While these securities are debt obligations of the Company, they are included in capital for regulatory capital ratio calculations. Under present regulations, the trust preferred securities may be included in Tier 1 capital for regulatory capital adequacy purposes as long as their amount does not exceed 25% of Tier 1 capital, including total trust preferred securities. The portion of the trust preferred securities not considered as Tier 1 capital, if any, may be included in Tier 2 capital. At December 31, 2013 and 2012, the total amount of trust preferred securities issued by the Trusts was included in the Company’s Tier 1 capital. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
Note 10. | Income Taxes | ||||||||||||
The Company is subject to U.S. federal and Virginia income tax as well as bank franchise tax in the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2010. | |||||||||||||
Net deferred tax assets consisted of the following components at December 31, 2013 and 2012: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Allowance for loan losses | $ | 3,619 | $ | 4,446 | |||||||||
Allowance for other real estate owned | 566 | 760 | |||||||||||
Interest on non-accrual loans | — | 266 | |||||||||||
Unfunded pension liability | 90 | 894 | |||||||||||
Split dollar liability | 207 | 391 | |||||||||||
Gain on other real estate owned | 769 | 990 | |||||||||||
Securities available for sale | 584 | — | |||||||||||
Accrued pension | 289 | 4 | |||||||||||
Loan origination costs, net | 6 | — | |||||||||||
Other | 10 | 118 | |||||||||||
$ | 6,140 | $ | 7,869 | ||||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation | $ | 685 | $ | 674 | |||||||||
Securities available for sale | — | 601 | |||||||||||
Discount accretion | 5 | 3 | |||||||||||
Loan origination costs, net | — | 30 | |||||||||||
$ | 690 | $ | 1,308 | ||||||||||
Valuation allowance | — | 6,561 | |||||||||||
Net deferred tax assets | $ | 5,450 | $ | — | |||||||||
As of December 31, 2013, the Company reversed the full valuation allowance on its net deferred tax assets (DTAs). The realization of DTAs is assessed and a valuation allowance is recorded if it is “more likely than not” that all or a portion of the deferred tax asset will not be realized. “More likely than not” is defined as greater than a 50% chance. All available evidence, both positive and negative is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed. In assessing the need for a valuation allowance, the Company considered all available evidence about the realization of DTAs, both positive and negative, that could be objectively verified. | |||||||||||||
Positive evidence considered included (1) a return to trailing three years of cumulative pre-tax income in 2013, (2) the Company’s recent history of quarterly pre-tax earnings (seven out of the last eight quarters), (3) expectations for sustained profitability with sufficient taxable income to fully utilize the remaining net deferred tax benefits, and (4) significant reductions in the level of non-performing assets since their peak during 2011, which was the primary source of the losses generated in 2010 and 2011. | |||||||||||||
Negative evidence considered was (1) the uncertainty about the potential impact on earnings from nonperforming assets along with (2) a pre-tax loss reported by the Company during one quarterly period over the previous two years. As the number of consecutive periods of profitability increased and the level of profits are indicative of on-going results, the weight of cumulative losses as negative evidence decreased. A reduction in the weight given to such losses is further validated given that the source of the losses was an elevated level of problem assets and related credit costs, which have since been significantly reduced. After weighing both the positive and negative evidence, management determined that a valuation allowance on the net deferred tax asset was no longer warranted as of December 31, 2013. | |||||||||||||
The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense (benefit) | $ | (44 | ) | $ | 965 | $ | (2,607 | ) | |||||
Deferred tax expense (benefit) | (4,776 | ) | — | 6,442 | |||||||||
$ | (4,820 | ) | $ | 965 | $ | 3,835 | |||||||
The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2013, 2012 and 2011, due to the following: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed tax expense (benefit) at statutory federal rate | $ | 1,718 | $ | 1,280 | $ | (2,423 | ) | ||||||
Increase (decrease) in income taxes from deferred tax valuation allowance | (6,275 | ) | (167 | ) | 6,442 | ||||||||
Decrease in income taxes resulting from: | |||||||||||||
Tax-exempt interest and dividend income | (153 | ) | (125 | ) | (186 | ) | |||||||
Other | (110 | ) | (23 | ) | 2 | ||||||||
$ | (4,820 | ) | $ | 965 | $ | 3,835 | |||||||
Funds_Restrictions_and_Reserve
Funds Restrictions and Reserve Balance | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Funds Restrictions and Reserve Balance | ' | |
Note 11. | Funds Restrictions and Reserve Balance | |
Transfers of funds from the banking subsidiary to the parent company in the form of loans, advances and cash dividends are restricted by federal and state regulatory authorities. At December 31, 2013, the aggregate amount of unrestricted funds which could be transferred from the banking subsidiary to the parent Company, without prior regulatory approval, totaled $253 thousand. | ||
The Bank must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the years ended December 31, 2013 and 2012, the aggregate amounts of daily average required balances were approximately $1.4 million and $3.0 million, respectively. | ||
Benefit_Plans
Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Benefit Plans | ' | ||||||||||||||||
Note 12. | Benefit Plans | ||||||||||||||||
Pension Plan | |||||||||||||||||
The Bank has a noncontributory, defined benefit pension plan for all full-time employees over 21 years of age with at least one year of credited service, and hired prior to May 1, 2011. Effective May 1, 2011, the plan was frozen to new participants. Only individuals employed on or before April 30, 2011 are eligible to become participants in the plan upon satisfaction of the eligibility requirements. Benefits are generally based upon years of service and average compensation for the five highest-paid consecutive years of service. The Bank’s funding practice has been to make at least the minimum required annual contribution permitted by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. | |||||||||||||||||
The following table provides a reconciliation of the changes in the plan benefit obligation and the fair value of assets for the periods ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Change in Benefit Obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 7,244 | $ | 5,995 | $ | 5,588 | |||||||||||
Service cost | 470 | 427 | 359 | ||||||||||||||
Interest cost | 279 | 269 | 307 | ||||||||||||||
Actuarial (gain) loss | (1,327 | ) | 725 | 871 | |||||||||||||
Benefits paid | (961 | ) | (172 | ) | (1,097 | ) | |||||||||||
Gain due to settlement | (204 | ) | — | (33 | ) | ||||||||||||
Benefit obligation, end of year | $ | 5,501 | $ | 7,244 | $ | 5,995 | |||||||||||
Changes in Plan Assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 4,046 | $ | 3,454 | $ | 4,284 | |||||||||||
Actual return on plan assets | 744 | 458 | 27 | ||||||||||||||
Employer contributions | 500 | 306 | 240 | ||||||||||||||
Benefits paid | (961 | ) | (172 | ) | (1,097 | ) | |||||||||||
Fair value of assets, end of year | $ | 4,329 | $ | 4,046 | $ | 3,454 | |||||||||||
Funded Status, end of year | $ | (1,172 | ) | $ | (3,198 | ) | $ | (2,541 | ) | ||||||||
Amount Recognized in Other Liabilities | $ | (1,172 | ) | $ | (3,198 | ) | $ | (2,541 | ) | ||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax | |||||||||||||||||
Net loss | $ | 265 | $ | 2,629 | $ | 2,173 | |||||||||||
Prior service cost | — | — | 2 | ||||||||||||||
Deferred income tax benefit | (90 | ) | — | — | |||||||||||||
Amount recognized | $ | 175 | $ | 2,629 | $ | 2,175 | |||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation | |||||||||||||||||
Discount rate used for disclosure | 5 | % | 4 | % | 4.5 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||
(in thousands) | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
Service cost | $ | 470 | $ | 427 | $ | 359 | |||||||||||
Interest cost | 279 | 269 | 307 | ||||||||||||||
Expected return on plan assets | (303 | ) | (275 | ) | (342 | ) | |||||||||||
Amortization of prior service cost | — | 2 | 4 | ||||||||||||||
Amortization of net obligation at transition | — | — | — | ||||||||||||||
Recognized net loss due to settlement | 284 | — | 212 | ||||||||||||||
Recognized net actuarial loss | 109 | 86 | 38 | ||||||||||||||
Net periodic benefit cost | $ | 839 | $ | 509 | $ | 578 | |||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | |||||||||||||||||
Net (gain) loss | $ | (2,364 | ) | $ | 456 | $ | 902 | ||||||||||
Amortization of prior service cost | — | (2 | ) | (4 | ) | ||||||||||||
Amortization of net obligation at transition | — | — | — | ||||||||||||||
Total recognized in accumulated other comprehensive income (loss) | $ | (2,364 | ) | $ | 454 | $ | 898 | ||||||||||
Total Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive Income (Loss) | $ | (1,525 | ) | $ | 963 | $ | 1,476 | ||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||
The plan sponsor selects the expected long-term rate of return on assets assumption in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience, which may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. | |||||||||||||||||
Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost). | |||||||||||||||||
The process used to select the discount rate assumption takes into account the benefit cash flow and the segmented yields on high-quality corporate bonds that would be available to provide for the payment of the benefit cash flow. A single effective discount rate, rounded to the nearest .25%, is then established that produces an equivalent discounted present value. | |||||||||||||||||
The pension plan’s weighted-average asset allocations at the end of the plan year for 2013 and 2012, by asset category were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Asset Category | |||||||||||||||||
Mutual funds - fixed income | 39 | % | 25 | % | |||||||||||||
Mutual funds - equity | 61 | % | 75 | % | |||||||||||||
Total | 100 | % | 100 | % | |||||||||||||
The trust fund is sufficiently diversified to maintain a reasonable level of risk without imprudently sacrificing return, with a targeted asset allocation of 40% fixed income and 60% equities. The Investment Manager selects investment fund managers with demonstrated experience and expertise, and funds with demonstrated historical performance for the implementation of the plan’s investment strategy. The investment manager will consider both actively and passively managed investment strategies and will allocate funds across the asset classes to develop an efficient investment structure. | |||||||||||||||||
It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust. | |||||||||||||||||
Following is a description of the valuation methodologies used for assets measured at fair value. | |||||||||||||||||
Fixed income and equity funds: Valued at the net asset value of shares held at year-end. | |||||||||||||||||
The pension financial instruments measured and reported at fair value are classified and disclosed in one of the following categories: | |||||||||||||||||
• | Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | ||||||||||||||||
• | Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||||
• | Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | ||||||||||||||||
The following tables set forth by level, within the fair value hierarchy, the Company’s pension plan assets at fair value as of December 31, 2013, 2012 and 2011: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,697 | $ | 1,697 | — | — | |||||||||||
Equity funds | 2,632 | 2,632 | — | — | |||||||||||||
Total | $ | 4,329 | $ | 4,329 | — | — | |||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,023 | $ | 1,023 | — | — | |||||||||||
Equity funds | 3,023 | 3,023 | — | — | |||||||||||||
Total | $ | 4,046 | $ | 4,046 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,409 | $ | 1,409 | — | — | |||||||||||
Equity funds | 2,045 | 2,045 | — | — | |||||||||||||
Total | $ | 3,454 | $ | 3,454 | $ | — | $ | — | |||||||||
The Company made cash contributions of $500 thousand, $306 thousand and $240 thousand during the years ended December 31, 2013, 2012 and 2011, respectively, and expects to make no contribution during the year ended December 31, 2014. The accumulated benefit obligation for the defined benefit pension plan was $3.8 million, $5.1 million and $4.2 million at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Estimated future benefit payments, which reflect expected future service, as appropriate, were as follows at December 31, 2013: | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | $ | 262 | |||||||||||||||
2015 | 181 | ||||||||||||||||
2016 | 275 | ||||||||||||||||
2017 | 271 | ||||||||||||||||
2018 | 23 | ||||||||||||||||
Years 2019-2023 | 1,465 | ||||||||||||||||
401(k) Plan | |||||||||||||||||
The Company maintains a 401(k) plan for all eligible employees. Participating employees may elect to contribute up to the maximum percentage allowed by the Internal Revenue Service, as defined in the plan. The Company makes matching contributions, on a dollar-for dollar basis, for the first one percent of an employee’s compensation contributed to the Plan and fifty cents for each dollar of the employee’s contribution between two percent and six percent. The Company also makes an additional contribution for eligible employees hired on or after May 1, 2011. This contribution is allocated based on years of service to participants who were hired on or after May 1, 2011 who have completed at least one thousand hours of service during the year and who are employed on the last day of the Plan Year. The amount that the Company matches is contributed for the benefit of the respective employee to the employee stock ownership plan (ESOP). All employees who are age nineteen or older are eligible. Employee contributions vest immediately. Employer matching contributions vest after two plan service years with the Company. The Company has the discretion to make a profit sharing contribution to the plan each year based on overall performance, profitability, and other economic factors. For the years ended December 31, 2013, 2012 and 2011, expense attributable to the Plan amounted to $249 thousand, $219 thousand and $200 thousand, respectively. | |||||||||||||||||
Employee Stock Ownership Plan | |||||||||||||||||
On January 1, 2000, the Company established an employee stock ownership plan. The ESOP provides an opportunity for the Company to award shares of First National Corporation stock to employees at its discretion. Employees are eligible to participate in the ESOP effective immediately upon beginning service with the Company. Participants become 100% vested after two years of credited service. In addition to the 401(k) matching contributions made by the Company to the ESOP, the Board of Directors may make discretionary contributions, within certain limitations prescribed by federal tax regulations. There was no compensation expense for the ESOP for the years ended December 31, 2013, 2012 and 2011. Shares of the Company held by the ESOP at December 31, 2013, 2012 and 2011, were 169,882, 134,609 and 65,633, respectively. | |||||||||||||||||
Split Dollar Life Insurance Plan | |||||||||||||||||
On January 6, 1999, the Bank adopted a Director Split Dollar Life Insurance Plan. This Plan provides life insurance coverage to insurable outside directors of the Bank. The Bank owns the policies and is entitled to all values and proceeds. The Plan provides retirement benefits and the payment of benefits at the death of the insured director. The amount of benefits will be determined by the performance of the policies over the director’s life. | |||||||||||||||||
Accounting guidance requires a company to recognize an obligation over the director’s service period based upon the substantive agreement with the director such as the promise to maintain a life insurance policy or provide a death benefit postretirement. The related effect on net income recognized during the years ended December 31, 2012 and 2011 was a benefit of $21 thousand and an expense of $104 thousand, respectively. In May 2013, the Bank terminated its Split Dollar Life Insurance Plan that provided life insurance coverage to insurable directors and recorded a gain of $543 thousand from the termination of the postretirement benefit liability. | |||||||||||||||||
Commitments_and_Unfunded_Credi
Commitments and Unfunded Credits | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Unfunded Credits | ' | ||||||||
Note 13. | Commitments and Unfunded Credits | ||||||||
The Company, through its banking subsidiary is a party to credit related financial instruments with risk not reflected in the consolidated financial statements in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||
The Bank’s exposure to credit loss is represented by the contractual amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet instruments. | |||||||||
At December 31, 2013 and 2012, the following financial instruments were outstanding whose contract amounts represent credit risk: | |||||||||
(in thousands) | |||||||||
2013 | 2012 | ||||||||
Commitments to extend credit and unfunded commitments under lines of credit | $ | 59,115 | $ | 52,849 | |||||
Stand-by letters of credit | 7,610 | 8,306 | |||||||
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. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Bank, is based on management’s credit evaluation of the customer. | |||||||||
Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized as deemed necessary and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Bank is committed. | |||||||||
Commercial and standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those letters of credit 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 Bank generally holds collateral supporting those commitments if deemed necessary. | |||||||||
At December 31, 2013, the Bank had $1.6 million in locked-rate commitments to originate mortgage loans and no loans held for sale. Risks arise from the possible inability of counterparties to meet the terms of their contracts. The Bank does not expect any counterparty to fail to meet its obligations. | |||||||||
The Bank has cash accounts in other commercial banks. The amount on deposit at these banks at December 31, 2013 exceeded the insurance limits of the Federal Deposit Insurance Corporation by $10 thousand. | |||||||||
Transactions_with_Related_Part
Transactions with Related Parties | 12 Months Ended | |
Dec. 31, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Transactions with Related Parties | ' | |
Note 14. | Transactions with Related Parties | |
During the year, executive officers and directors (and companies controlled by them) were customers of and had transactions with the Company in the normal course of business. In management’s opinion, these transactions were made on substantially the same terms as those prevailing for other customers. | ||
At December 31, 2013 and 2012, these loans totaled $2.1 million and $8.9 million, respectively. During 2013, total principal additions were $1.2 million and total principal payments were $2.1 million. Adjustments to related party loan balances during 2013 due to transition of related parties totaled approximately $5.9 million. | ||
Deposits from related parties held by the Bank at December 31, 2013 and 2012 amounted to $5.1 million and $10.5 million, respectively. | ||
Lease_Commitments
Lease Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Lease Commitments | ' | ||||
Note 15. | Lease Commitments | ||||
The Company was obligated under noncancelable leases for banking premises. Total rental expense for operating leases for 2013, 2012 and 2011 was $224 thousand, $244 thousand and $240 thousand, respectively. Minimum rental commitments under noncancelable leases with terms in excess of one year as of December 31, 2013 were as follows: | |||||
(in thousands) | |||||
Operating | |||||
Leases | |||||
2014 | $ | 52 | |||
2015 | 46 | ||||
2016 | 15 | ||||
2017 | 5 | ||||
Total minimum payments | $ | 118 | |||
Dividend_Reinvestment_Plan
Dividend Reinvestment Plan | 12 Months Ended | |
Dec. 31, 2013 | ||
Text Block [Abstract] | ' | |
Dividend Reinvestment Plan | ' | |
Note 16. | Dividend Reinvestment Plan | |
The Company has in effect a Dividend Reinvestment Plan (DRIP) which provides an automatic conversion of dividends into common stock for enrolled shareholders. The Company may issue common shares to the DRIP or purchase on the open market. Common shares are purchased at a price which is based on the average closing prices of the shares as quoted on the Over-the-Counter Bulletin Board Market for the 10 business days immediately preceding the dividend payment date. | ||
No shares were issued to the DRIP during the years ended December 31, 2013 and 2012. The Company issued 6,748 common shares to the DRIP during the year ended December 31, 2011. | ||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Note 17. | Fair Value Measurements | ||||||||||||||||||||
Determination of Fair Value | |||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. | |||||||||||||||||||||
The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
In accordance with this guidance, the Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. | |||||||||||||||||||||
Level 1 – | Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. | ||||||||||||||||||||
Level 2 – | Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. | ||||||||||||||||||||
Level 3 – | Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires a significant management judgment or estimation. | ||||||||||||||||||||
An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a recurring basis in the financial statements: | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). | |||||||||||||||||||||
The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 84,897 | $ | — | $ | 84,897 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 18,399 | — | 18,399 | — | |||||||||||||||||
Corporate equity securities | 5 | 5 | — | — | |||||||||||||||||
$ | 103,301 | $ | 5 | $ | 103,296 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||
Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2012 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 73,218 | $ | — | $ | 73,218 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,235 | — | 16,235 | — | |||||||||||||||||
Corporate equity securities | 3 | 3 | — | — | |||||||||||||||||
$ | 89,456 | $ | 3 | $ | 89,453 | $ | — | ||||||||||||||
Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. | |||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: | |||||||||||||||||||||
Loans held for sale | |||||||||||||||||||||
Loans held for sale are carried at the lower of cost or market value. These loans currently consist of one-to-four family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). As such, the Company records any fair value adjustments on a nonrecurring basis. No nonrecurring fair value adjustments were recorded on loans held for sale during the years ended December 31, 2013 and 2012. | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal, of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than one year old and not solely based on observable market comparables or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Operations. | |||||||||||||||||||||
Other real estate owned | |||||||||||||||||||||
Loans are transferred to other real estate owned when the collateral securing them is foreclosed on or acquired through a deed in lieu of foreclosure. The measurement of loss associated with other real estate owned is based on the appraisal documents and assessed the same way as impaired loans described above. | |||||||||||||||||||||
The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2013 and 2012. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans, net | $ | 3,972 | $ | — | $ | — | $ | 3,972 | |||||||||||||
Other real estate owned, net | 3,030 | — | — | 3,030 | |||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2012 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans, net | $ | 7,944 | $ | — | $ | — | $ | 7,944 | |||||||||||||
Other real estate owned, net | 5,590 | — | — | 5,590 | |||||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for December 31, 2013 | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Fair | Valuation Technique | Unobservable Input | Range (Weighted- | ||||||||||||||||||
Value | Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans | $ | 3,972 | Property appraisals | Selling cost | 10% | ||||||||||||||||
Discount for lack of marketability and age of appraisal | 0%-41% (8%) | ||||||||||||||||||||
Other real estate owned | 3,030 | Property appraisals | Selling cost | 7% | |||||||||||||||||
Accounting guidance requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The methodologies for estimating the fair value of financial assets and financial liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. The methodologies for other financial assets and financial liabilities are discussed below: | |||||||||||||||||||||
Cash and Cash Equivalents and Federal Funds Sold | |||||||||||||||||||||
The carrying amounts of cash and short-term instruments approximate fair values. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The carrying value of restricted stock approximates fair value based on redemption. | |||||||||||||||||||||
Loans | |||||||||||||||||||||
For variable-rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. Fair values for all other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. | |||||||||||||||||||||
Deposit Liabilities | |||||||||||||||||||||
The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-maturity certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||
Accrued Interest | |||||||||||||||||||||
The carrying amounts of accrued interest approximate fair value. | |||||||||||||||||||||
Borrowings | |||||||||||||||||||||
The carrying amounts of federal funds purchased and other short-term borrowings maturing within ninety days approximate their fair values. Fair values of all other borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Bank Owned Life Insurance | |||||||||||||||||||||
The carrying amounts of bank owned life insurance approximate fair value. | |||||||||||||||||||||
Commitments and Unfunded Credits | |||||||||||||||||||||
The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. | |||||||||||||||||||||
The fair value of stand-by letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At December 31, 2013 and 2012, fair value of loan commitments and standby letters of credit was immaterial. | |||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair Value | |||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | Level 3 | |||||||||||||||||||
Identical | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Level 1 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 31,508 | $ | 31,508 | $ | — | $ | — | $ | 31,508 | |||||||||||
Securities | 103,301 | 5 | 103,296 | — | 103,301 | ||||||||||||||||
Restricted stock | 1,804 | — | 1,804 | — | 1,804 | ||||||||||||||||
Loans, net | 346,449 | — | — | 353,874 | 353,874 | ||||||||||||||||
Bank owned life insurance | 10,978 | — | 10,978 | — | 10,978 | ||||||||||||||||
Accrued interest receivable | 1,302 | — | 1,302 | — | 1,302 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 450,711 | $ | — | $ | 326,955 | $ | 124,422 | $ | 451,377 | |||||||||||
Other borrowings | 6,052 | — | — | 6,095 | 6,095 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,399 | 9,399 | ||||||||||||||||
Accrued interest payable | 177 | — | 177 | — | 177 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair Value | |||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | Level 3 | |||||||||||||||||||
Identical | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Level 1 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 31,028 | $ | 31,028 | $ | — | $ | — | $ | 31,028 | |||||||||||
Securities | 89,456 | 3 | 89,453 | — | 89,456 | ||||||||||||||||
Restricted stock | 1,974 | — | 1,974 | — | 1,974 | ||||||||||||||||
Loans held for sale | 503 | — | 503 | — | 503 | ||||||||||||||||
Loans, net | 370,519 | — | — | 375,941 | 375,941 | ||||||||||||||||
Bank owned life insurance | 10,609 | — | 10,609 | — | 10,609 | ||||||||||||||||
Accrued interest receivable | 1,459 | — | 1,459 | — | 1,459 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 466,917 | $ | — | $ | 306,719 | $ | 162,151 | $ | 468,870 | |||||||||||
Other borrowings | 6,076 | — | — | 6,220 | 6,220 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 8,735 | 8,735 | ||||||||||||||||
Accrued interest payable | 286 | — | 286 | — | 286 | ||||||||||||||||
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. | |||||||||||||||||||||
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Matters | ' | ||||||||||||||||||||||||
Note 18. | Regulatory Matters | ||||||||||||||||||||||||
The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations) and Tier 1 capital (as defined) to risk-weighted assets (as defined), and of Tier 1 capital to average assets. Management believes, as of December 31, 2013 and 2012, that the Company and the Bank met all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||
As of December 31, 2013, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. | |||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are also presented in the following table. | |||||||||||||||||||||||||
(amounts in thousands) | Minimum To Be Well | ||||||||||||||||||||||||
Actual | Minimum Capital | Capitalized Under | |||||||||||||||||||||||
Requirement | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 66,437 | 18.21 | % | $ | 29,193 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 60,578 | 16.62 | % | $ | 29,160 | 8 | % | $ | 36,450 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 61,800 | 16.94 | % | $ | 14,597 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 55,947 | 15.35 | % | $ | 14,580 | 4 | % | $ | 21,870 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Company | $ | 61,800 | 11.75 | % | $ | 21,047 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 55,947 | 10.68 | % | $ | 20,948 | 4 | % | $ | 26,184 | 5 | % | |||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 59,876 | 15.34 | % | $ | 31,220 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 52,980 | 13.59 | % | $ | 31,197 | 8 | % | $ | 38,996 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 54,897 | 14.07 | % | $ | 15,610 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 48,004 | 12.31 | % | $ | 15,599 | 4 | % | $ | 23,398 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Company | $ | 54,897 | 10.47 | % | $ | 20,971 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 48,004 | 9.15 | % | $ | 20,974 | 4 | % | $ | 26,218 | 5 | % | |||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||
Note 19. | Accumulated Other Comprehensive Income | ||||||||||||
Changes in each component of accumulated other comprehensive income (loss) were as follows: | |||||||||||||
Net | Adjustments | Accumulated | |||||||||||
Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Pension | Comprehensive | |||||||||||
on Securities | Benefits | Income (Loss) | |||||||||||
Balance at December 31, 2010 | $ | 977 | $ | (843 | ) | $ | 134 | ||||||
Other comprehensive income (loss) before reclassifications | 1,774 | (898 | ) | 876 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (59 | ) | — | (59 | ) | ||||||||
Deferred tax adjustment | 474 | (434 | ) | 40 | |||||||||
Change during period | 2,189 | (1,332 | ) | 857 | |||||||||
Balance at December 31, 2011 | $ | 3,166 | $ | (2,175 | ) | $ | 991 | ||||||
Other comprehensive income (loss) before reclassifications | (111 | ) | (454 | ) | (565 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,285 | ) | — | (1,285 | ) | ||||||||
Change during period | (1,396 | ) | (454 | ) | (1,850 | ) | |||||||
Balance at December 31, 2012 | $ | 1,770 | $ | (2,629 | ) | $ | (859 | ) | |||||
Other comprehensive income (loss) before reclassifications | (3,482 | ) | 2,364 | (1,118 | ) | ||||||||
Deferred tax adjustment | 583 | 90 | 673 | ||||||||||
Change during period | (2,899 | ) | 2,454 | (445 | ) | ||||||||
Balance at December 31, 2013 | $ | (1,129 | ) | $ | (175 | ) | $ | (1,304 | ) | ||||
For the year ended December 31, 2013, no amounts were reclassified from accumulated other comprehensive income (loss). | |||||||||||||
For the years ended December 31, 2012 and 2011, $1.3 million and $59 thousand, respectively, was reclassified out of comprehensive income (loss) and appeared as net gains on sale of securities available for sale in the Consolidated Statements of Operations. |
Preferred_Stock
Preferred Stock | 12 Months Ended | |
Dec. 31, 2013 | ||
Equity [Abstract] | ' | |
Preferred Stock | ' | |
Note 20. | Preferred Stock | |
The Company has (i) 13,900 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Preferred Stock) and (ii) 695 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Warrant Preferred Stock). The Preferred Stock pays cumulative dividends at a rate of 5% per annum until March 13, 2014, and thereafter at a rate of 9% per annum. The Warrant Preferred Stock pays cumulative dividends at a rate of 9% per annum from the date of issuance. The discount on the Preferred Stock is amortized over a five year period using the constant effective yield method. | ||
Rights_Offering_of_Common_Stoc
Rights Offering of Common Stock | 12 Months Ended | |
Dec. 31, 2013 | ||
Equity [Abstract] | ' | |
Rights Offering of Common Stock | ' | |
Note 21. | Rights Offering of Common Stock | |
On June 29, 2012, the Company completed the sale of 1,945,815 shares of common stock in a rights offering and to certain standby investors. The Company’s existing shareholders exercised subscription rights to purchase 1,520,815 shares at a subscription price of $4.00 per share, and the standby investors purchased an additional 425,000 shares at the same price of $4.00 per share. In total, the Company raised net proceeds of $7.6 million. | ||
Parent_Company_Only_Financial_
Parent Company Only Financial Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Parent Company Only Financial Statements | ' | ||||||||||||
Note 22. | Parent Company Only Financial Statements | ||||||||||||
FIRST NATIONAL CORPORATION | |||||||||||||
(Parent Company Only) | |||||||||||||
Balance Sheets | |||||||||||||
December 31, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash | $ | 5,395 | $ | 6,406 | |||||||||
Investment in subsidiaries, at cost, plus undistributed net income | 56,982 | 47,272 | |||||||||||
Other assets | 470 | 496 | |||||||||||
Total assets | $ | 62,847 | $ | 54,174 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Trust preferred capital notes | $ | 9,279 | $ | 9,279 | |||||||||
Other liabilities | 8 | 6 | |||||||||||
Total liabilities | $ | 9,287 | $ | 9,285 | |||||||||
Preferred stock | $ | 14,564 | $ | 14,409 | |||||||||
Common stock | 6,127 | 6,127 | |||||||||||
Surplus | 6,813 | 6,813 | |||||||||||
Retained earnings | 27,360 | 18,399 | |||||||||||
Accumulated other comprehensive loss, net | (1,304 | ) | (859 | ) | |||||||||
Total shareholders’ equity | $ | 53,560 | $ | 44,889 | |||||||||
Total liabilities and shareholders’ equity | $ | 62,847 | $ | 54,174 | |||||||||
FIRST NATIONAL CORPORATION | |||||||||||||
(Parent Company Only) | |||||||||||||
Statements of Operations | |||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income | |||||||||||||
Dividends from subsidiary | $ | — | $ | 500 | $ | 1,600 | |||||||
Gain on sale of securities available for sale | — | 139 | — | ||||||||||
Other income | 51 | 41 | — | ||||||||||
$ | 51 | $ | 680 | $ | 1,600 | ||||||||
Expense | |||||||||||||
Interest expense | $ | 222 | $ | 237 | $ | 386 | |||||||
Stationery and supplies | 17 | 1 | 14 | ||||||||||
Legal and professional fees | 40 | — | — | ||||||||||
Data processing | 53 | — | 31 | ||||||||||
Management fee-subsidiary | 95 | — | — | ||||||||||
Other expense | 51 | 6 | 47 | ||||||||||
Total expense | $ | 478 | $ | 244 | $ | 478 | |||||||
Income (loss) before allocated tax benefits and undistributed income (loss) of subsidiary | $ | (427 | ) | $ | 436 | $ | 1,122 | ||||||
Allocated income tax benefit | 145 | 22 | 162 | ||||||||||
Income (loss) before equity in undistributed income (loss) of subsidiary | $ | (282 | ) | $ | 458 | $ | 1,284 | ||||||
Equity in undistributed income (loss) of subsidiary | 10,156 | 2,342 | (12,245 | ) | |||||||||
Net income (loss) | $ | 9,874 | $ | 2,800 | $ | (10,961 | ) | ||||||
Effective dividend and accretion on preferred stock | 913 | 904 | 894 | ||||||||||
Net income (loss) available to common shareholders | $ | 8,961 | $ | 1,896 | $ | (11,855 | ) | ||||||
FIRST NATIONAL CORPORATION | |||||||||||||
(Parent Company Only) | |||||||||||||
Statements of Cash Flows | |||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net income (loss) | $ | 9,874 | $ | 2,800 | $ | (10,961 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
Equity in undistributed (income) loss of subsidiary | (10,156 | ) | (2,342 | ) | 12,245 | ||||||||
Gain on sale of securities available for sale | — | (139 | ) | — | |||||||||
(Increase) decrease in other assets | 29 | (42 | ) | 45 | |||||||||
Increase (decrease) in other liabilities | — | (2 | ) | 2 | |||||||||
Net cash provided by (used in) operating activities | $ | (253 | ) | $ | 275 | $ | 1,331 | ||||||
Cash Flows from Investing Activities | |||||||||||||
Proceeds from sale of securities available for sale | $ | — | $ | 164 | $ | — | |||||||
Cash Flows from Financing Activities | |||||||||||||
Distribution of capital to subsidiary | $ | — | (1,000 | ) | — | ||||||||
Cash dividends paid on common stock | — | — | (540 | ) | |||||||||
Cash dividends paid on preferred stock | (758 | ) | (758 | ) | (758 | ) | |||||||
Net proceeds from issuance of common stock | — | 7,601 | — | ||||||||||
Net cash provided by (used in) financing activities | $ | (758 | ) | $ | 5,843 | $ | (1,298 | ) | |||||
Increase (decrease) in cash and cash equivalents | $ | (1,011 | ) | $ | 6,282 | $ | 33 | ||||||
Cash and Cash Equivalents | |||||||||||||
Beginning | 6,406 | 124 | 91 | ||||||||||
Ending | $ | 5,395 | $ | 6,406 | $ | 124 | |||||||
Nature_of_Banking_Activities_a1
Nature of Banking Activities and Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Principles of Consolidation | ' | |||
Principles of Consolidation | ||||
The consolidated financial statements of First National Corporation include the accounts of all six companies. All material intercompany balances and transactions have been eliminated in consolidation, except for balances and transactions related to the Trusts. The subordinated debt of these Trusts is reflected as a liability of the Company. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, valuation of deferred tax assets and liabilities, valuation of other real estate owned, pension obligations and other-than-temporary impairment of securities. | ||||
Significant Group Concentrations of Credit Risk | ' | |||
Significant Group Concentrations of Credit Risk | ||||
Most of the Company’s activities are with customers located within the northern Shenandoah Valley region of Virginia. The types of lending that the Company engages in are included in Note 3. The Company does not have a significant concentration to any one customer. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” | ||||
Securities | ' | |||
Securities | ||||
Investments in debt securities with readily determinable fair values are classified as either held to maturity, available for sale (AFS) or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as AFS. Equity investments in the FHLB, the Federal Reserve Bank of Richmond and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. | ||||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company (1) intends to sell the security or (2) it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. | ||||
For equity securities carried at cost as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. | ||||
Loans Held for Sale | ' | |||
Loans Held for Sale | ||||
Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. | ||||
The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 60 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. | ||||
The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no gain or loss occurs on the rate lock commitments. | ||||
Loans | ' | |||
Loans | ||||
The Company, through its banking subsidiary, grants mortgage, commercial and consumer loans to customers. The bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1-4 Family Residential; and Other Real Estate Loans. Descriptions of the Company’s loan classes are as follows: | ||||
Real Estate Loans – Construction and Land Development: The Company originates construction loans for the acquisition and development of land and construction of condominiums, townhomes, and one-to-four family residences. | ||||
Real Estate Loans – 1-4 Family: This class of loans includes loans secured by one-to-four family homes. In addition to traditional residential mortgage loans secured by a first or junior lien on the property, the Bank offers home equity lines of credit. | ||||
Real Estate Loans – Other: This loan class consists primarily of loans secured by various types of commercial real estate typically in the Bank’s market area, including multi-family residential buildings, commercial buildings and offices, hotels, small shopping centers, farms and churches. | ||||
Commercial and Industrial Loans: Commercial loans are typically secured with non-real estate commercial property. The Company makes commercial loans primarily to businesses located within its market area. | ||||
Consumer and Other Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include new and used automobile loans, unsecured loans and lines of credit. | ||||
A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the northern Shenandoah Valley region of Virginia. The ability of the Bank’s debtors to honor their contracts may be impacted by the real estate and general economic conditions in this area. | ||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances less the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued and credited to income based on the unpaid principal balance. Loan origination fees, net of certain origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. | ||||
A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on non-accrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. These policies are applied consistently across the loan portfolio. | ||||
All interest accrued but not collected for loans that are placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||||
Any unsecured loan that is deemed uncollectible is charged-off in full. Any secured loan that is considered by management to be uncollectible is partially charged-off and carried at the fair value of the collateral less estimated selling costs. This charge-off policy applies to all loan segments. | ||||
Impaired Loans | ' | |||
Impaired Loans | ||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair market value of the collateral, net of selling costs, if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company typically does not separately identify individual consumer, residential and certain small commercial loans that are less than $250 thousand for impairment disclosures, except for troubled debt restructurings (TDRs) as noted below. | ||||
Troubled Debt Restructurings (TDR) | ' | |||
Troubled Debt Restructurings (TDR) | ||||
In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on non-accrual status at the time of the TDR, the loan will remain on non-accrual status following the modification and may be returned to accrual status based on the policy for returning loans to accrual status as noted above. There were $1.9 million and $6.3 million in loans classified as TDRs as of December 31, 2013 and 2012, respectively. | ||||
Allowance for Loan Losses | ' | |||
Allowance for Loan Losses | ||||
The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 and 4. | ||||
The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | ||||
The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of the collateral, overall portfolio quality and review of specific potential losses. The evaluation also considers the following risk characteristics of each loan portfolio class: | ||||
• | 1-4 family residential mortgage loans carry risks associated with the continued credit-worthiness of the borrower and changes in the value of the collateral. | |||
• | Real estate construction and land development loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. | |||
• | Other real estate loans and commercial and industrial loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. | |||
• | Consumer and other loans carry risk associated with the continued credit-worthiness of the borrower and the value of the collateral, i.e. rapidly depreciating assets such as automobiles, or lack thereof. Consumer loans are likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy, or other changes in circumstances. | |||
The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions among other considerations. | ||||
The general component covers loans that are not considered impaired and is based on historical loss experience adjusted for qualitative factors. The historical loss experience is calculated by loan type and uses an average loss rate during the preceding twelve quarters. The qualitative factors are assigned by management based on delinquencies and asset quality, national and local economic trends, effects of the changes in the value of underlying collateral, trends in volume and terms of loans, effects of changes in lending policy, the experience and depth of management, concentrations of credit, quality of the loan review system and the effect of external factors such as competition and regulatory requirements. The factors assigned differ by loan type. The general allowance estimates losses whose impact on the portfolio has yet to be recognized by a specific allowance. Allowance factors and the overall size of the allowance may change from period to period based on management’s assessment of the above described factors and the relative weights given to each factor. | ||||
Premises and Equipment | ' | |||
Premises and Equipment | ||||
Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to forty years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from three to seven years. Depreciation and amortization are recorded on the straight-line method. | ||||
Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. | ||||
Other Real Estate Owned | ' | |||
Other Real Estate Owned | ||||
Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance foreclosure in satisfaction of loans and properties originally acquired for branch expansion but no longer intended to be used for that purpose. OREO is reported at the lower of cost or fair value less costs to sell, determined on the basis of current appraisals, comparable sales, and other estimates of fair value obtained principally from independent sources, adjusted for estimated selling costs. Management also considers other factors or recent developments, such as changes in absorption rates or market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition, which could result in adjustments to the collateral value estimates indicated in the appraisals. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its distressed asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from appraisals, comparable sales, and other estimates used to determine the fair value of other real estate. Management reviews the value of other real estate each quarter and adjusts the values as appropriate. Revenue and expenses from operations and changes in the valuation allowance are included in other real estate owned expenses. | ||||
Bank-Owned Life Insurance | ' | |||
Bank-Owned Life Insurance | ||||
The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as other income on the consolidated statements of operations. In the event of the death of an insured individual under these policies, the Company would receive a death benefit which would be recorded as other income. | ||||
Transfers of Financial Assets | ' | |||
Transfers of Financial Assets | ||||
Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. See Note 10 for details on the Company’s income taxes. | ||||
The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. | ||||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. There was no liability for unrecognized tax benefits as of December 31, 2013 and 2012. Interest and penalties associated with unrecognized tax benefits, if any, are classified as additional income taxes in the consolidated statement of operations. | ||||
Wealth Management Department | ' | |||
Wealth Management Department | ||||
Securities and other property held by the Wealth Management Department in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. | ||||
Earnings Per Common Share | ' | |||
Earnings Per Common Share | ||||
Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. There are no potential common shares that would have a dilutive effect. Shares not committed to be released under the Company’s leveraged Employee Stock Ownership Plan (ESOP) are not considered to be outstanding. See Note 12 for further information on the Company’s ESOP. The average number of common shares outstanding used to calculate basic and diluted earnings per common share were 4,901,464, 3,944,506 and 2,953,344 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Advertising Costs | ' | |||
Advertising Costs | ||||
The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2013, 2012 and 2011 was $269 thousand, $364 thousand and $368 thousand, respectively. | ||||
Comprehensive Income (Loss) | ' | |||
Comprehensive Income (Loss) | ||||
Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities and pension liability adjustments, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). | ||||
Reclassifications | ' | |||
Reclassifications | ||||
Certain reclassifications have been made to prior period balances to conform to the current year presentation. These reclassifications were immaterial. | ||||
Recent Accounting Pronouncements | ' | |||
Recent Accounting Pronouncements | ||||
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | ||||
In July 2013, the FASB issued ASU 2013-11, “Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The amendments in this Update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of the new guidance is not expected to have a material impact on the Company’s consolidated financial statements. | ||||
In January 2014, the FASB issued ASU 2014-04, “Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently assessing the impact that ASU 2014-04 will have on its consolidated financial statements. | ||||
Fair Value Measurement and Disclosures | ' | |||
Determination of Fair Value | ||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Summary of Amortized Costs and Fair Values of Securities Available for Sale | ' | ||||||||||||||||||||||||
Amortized costs and fair values of securities available for sale at December 31, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 86,365 | $ | 670 | $ | (2,138 | ) | $ | 84,897 | ||||||||||||||||
Obligations of states and political subdivisions | 18,647 | 350 | (598 | ) | 18,399 | ||||||||||||||||||||
Corporate equity securities | 1 | 4 | — | 5 | |||||||||||||||||||||
$ | 105,013 | $ | 1,024 | $ | (2,736 | ) | $ | 103,301 | |||||||||||||||||
2012 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 72,129 | $ | 1,325 | $ | (236 | ) | $ | 73,218 | ||||||||||||||||
Obligations of states and political subdivisions | 15,556 | 762 | (83 | ) | 16,235 | ||||||||||||||||||||
Corporate equity securities | 1 | 2 | — | 3 | |||||||||||||||||||||
$ | 87,686 | $ | 2,089 | $ | (319 | ) | $ | 89,456 | |||||||||||||||||
Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired | ' | ||||||||||||||||||||||||
At December 31, 2013 and 2012, investments in an unrealized loss position that are temporarily impaired were as follows: | |||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 49,810 | $ | (1,755 | ) | $ | 10,180 | $ | (383 | ) | $ | 59,990 | $ | (2,138 | ) | ||||||||||
Obligations of states and political subdivisions | 7,165 | (422 | ) | 2,663 | (176 | ) | 9,828 | (598 | ) | ||||||||||||||||
$ | 56,975 | $ | (2,177 | ) | $ | 12,843 | $ | (559 | ) | $ | 69,818 | $ | (2,736 | ) | |||||||||||
2012 | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | (Loss) | Value | (Loss) | Value | (Loss) | ||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 19,612 | $ | (236 | ) | $ | — | $ | — | $ | 19,612 | $ | (236 | ) | |||||||||||
Obligations of states and political subdivisions | 4,287 | (83 | ) | — | — | 4,287 | (83 | ) | |||||||||||||||||
$ | 23,899 | $ | (319 | ) | $ | — | $ | — | $ | 23,899 | $ | (319 | ) | ||||||||||||
Composition of Restricted Securities | ' | ||||||||||||||||||||||||
The composition of restricted securities at December 31, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | $ | 908 | $ | 1,078 | |||||||||||||||||||||
Federal Reserve Bank stock | 846 | 846 | |||||||||||||||||||||||
Community Bankers’ Bank stock | 50 | 50 | |||||||||||||||||||||||
$ | 1,804 | $ | 1,974 | ||||||||||||||||||||||
Available-for-sale Securities [Member] | ' | ||||||||||||||||||||||||
Amortized Cost and Fair Value of Securities Available for Sale | ' | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due within one year | $ | 899 | $ | 923 | |||||||||||||||||||||
Due after one year through five years | 5,301 | 5,329 | |||||||||||||||||||||||
Due after five years through ten years | 20,353 | 19,901 | |||||||||||||||||||||||
Due after ten years | 78,459 | 77,143 | |||||||||||||||||||||||
Corporate equity securities | 1 | 5 | |||||||||||||||||||||||
$ | 105,013 | $ | 103,301 | ||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||
Summary of Loans | ' | ||||||||||||||||||||||||||||||||
Loans at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 34,060 | $ | 43,524 | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | 141,961 | 134,964 | |||||||||||||||||||||||||||||||
Other real estate | 145,968 | 174,220 | |||||||||||||||||||||||||||||||
Commercial and industrial loans | 22,803 | 23,071 | |||||||||||||||||||||||||||||||
Consumer and other loans | 12,301 | 7,815 | |||||||||||||||||||||||||||||||
Total loans | $ | 357,093 | $ | 383,594 | |||||||||||||||||||||||||||||
Allowance for loan losses | (10,644 | ) | (13,075 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 346,449 | $ | 370,519 | |||||||||||||||||||||||||||||
Summary of Loan Classes and an Aging of Past Due Loans | ' | ||||||||||||||||||||||||||||||||
The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non- | 90 Days | ||||||||||||||||||||||||||
Days | Days | Days | Past Due | Loans | Accrual | or More | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans | Past Due | |||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 161 | $ | 2,852 | $ | 3,339 | $ | 6,352 | $ | 27,708 | $ | 34,060 | $ | 5,811 | $ | — | |||||||||||||||||
1-4 family residential | 1,561 | 316 | 136 | 2,013 | 139,948 | 141,961 | 953 | 27 | |||||||||||||||||||||||||
Other real estate loans | 1,077 | 1,636 | 74 | 2,787 | 143,181 | 145,968 | 4,756 | — | |||||||||||||||||||||||||
Commercial and industrial | 165 | — | 22 | 187 | 22,616 | 22,803 | 144 | 22 | |||||||||||||||||||||||||
Consumer and other loans | 41 | 5 | — | 46 | 12,255 | 12,301 | 14 | — | |||||||||||||||||||||||||
Total | $ | 3,005 | $ | 4,809 | $ | 3,571 | $ | 11,385 | $ | 345,708 | $ | 357,093 | $ | 11,678 | $ | 49 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non- | 90 Days | ||||||||||||||||||||||||||
Days | Days | Days | Past Due | Loans | Accrual | or More | |||||||||||||||||||||||||||
Past Due | Past Due | Past Due | Loans | Past Due | |||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 77 | $ | 701 | $ | 89 | $ | 867 | $ | 42,657 | $ | 43,524 | $ | 646 | $ | — | |||||||||||||||||
1-4 family residential | 2,741 | — | 476 | 3,217 | 131,747 | 134,964 | 968 | 129 | |||||||||||||||||||||||||
Other real estate loans | 1,347 | 686 | 1,476 | 3,509 | 170,711 | 174,220 | 6,752 | — | |||||||||||||||||||||||||
Commercial and industrial | 428 | 408 | 99 | 935 | 22,136 | 23,071 | 14 | 99 | |||||||||||||||||||||||||
Consumer and other loans | 43 | 5 | 8 | 56 | 7,759 | 7,815 | 13 | — | |||||||||||||||||||||||||
Total | $ | 4,636 | $ | 1,800 | $ | 2,148 | $ | 8,584 | $ | 375,010 | $ | 383,594 | $ | 8,393 | $ | 228 | |||||||||||||||||
Analysis of the Credit Risk Profile of Each Loan Class | ' | ||||||||||||||||||||||||||||||||
The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2013 and 2012: | |||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 19,724 | $ | 3,500 | $ | 10,836 | $ | — | $ | 34,060 | |||||||||||||||||||||||
Secured by 1-4 family residential | 130,048 | 5,378 | 6,535 | — | 141,961 | ||||||||||||||||||||||||||||
Other real estate loans | 118,663 | 10,227 | 17,078 | — | 145,968 | ||||||||||||||||||||||||||||
Commercial and industrial | 21,563 | 555 | 685 | — | 22,803 | ||||||||||||||||||||||||||||
Consumer and other loans | 12,287 | — | 14 | — | 12,301 | ||||||||||||||||||||||||||||
Total | $ | 302,285 | $ | 19,660 | $ | 35,148 | $ | — | $ | 357,093 | |||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 22,384 | $ | 5,176 | $ | 15,964 | $ | — | $ | 43,524 | |||||||||||||||||||||||
Secured by 1-4 family residential | 120,692 | 6,055 | 8,217 | — | 134,964 | ||||||||||||||||||||||||||||
Other real estate loans | 134,701 | 14,513 | 25,006 | — | 174,220 | ||||||||||||||||||||||||||||
Commercial and industrial | 18,831 | 798 | 3,442 | — | 23,071 | ||||||||||||||||||||||||||||
Consumer and other loans | 7,743 | 72 | — | — | 7,815 | ||||||||||||||||||||||||||||
Total | $ | 304,351 | $ | 26,614 | $ | 52,629 | $ | — | $ | 383,594 | |||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Transactions in Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||
Transactions in the allowance for loan losses for the years ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Balance at beginning of year | $ | 13,075 | $ | 12,937 | $ | 16,036 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (425 | ) | 3,555 | 12,380 | |||||||||||||||||||||||||
Loan recoveries | 2,486 | 376 | 310 | ||||||||||||||||||||||||||
Loan charge-offs | (4,492 | ) | (3,793 | ) | (15,789 | ) | |||||||||||||||||||||||
Balance at end of year | $ | 10,644 | $ | 13,075 | $ | 12,937 | |||||||||||||||||||||||
Allowance by Impairment Methodology and Loans by Impairment Methodology | ' | ||||||||||||||||||||||||||||
The following tables present, as of December 31, 2013, 2012 and 2011, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology. | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2012 | $ | 2,481 | $ | 3,712 | $ | 6,163 | $ | 608 | $ | 111 | $ | 13,075 | |||||||||||||||||
Charge-offs | (2,962 | ) | (260 | ) | (1,070 | ) | (37 | ) | (163 | ) | (4,492 | ) | |||||||||||||||||
Recoveries | — | 823 | 1,304 | 179 | 180 | 2,486 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | 3,191 | (1,300 | ) | (1,979 | ) | (308 | ) | (29 | ) | (425 | ) | ||||||||||||||||||
Ending Balance, December 31, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 882 | 190 | 263 | 44 | — | 1,379 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,828 | 2,785 | 4,155 | 398 | 99 | 9,265 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 34,060 | 141,961 | 145,968 | 22,803 | 12,301 | 357,093 | |||||||||||||||||||||||
Individually evaluated for impairment | 6,862 | 3,431 | 11,143 | 258 | — | 21,694 | |||||||||||||||||||||||
Collectively evaluated for impairment | 27,198 | 138,530 | 134,825 | 22,545 | 12,301 | 335,399 | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2011 | $ | 2,843 | $ | 3,766 | $ | 5,192 | $ | 963 | $ | 173 | $ | 12,937 | |||||||||||||||||
Charge-offs | (431 | ) | (761 | ) | (2,154 | ) | (261 | ) | (186 | ) | (3,793 | ) | |||||||||||||||||
Recoveries | 1 | 68 | 64 | 35 | 208 | 376 | |||||||||||||||||||||||
Provision for loan losses | 68 | 639 | 3,061 | (129 | ) | (84 | ) | 3,555 | |||||||||||||||||||||
Ending Balance, December 31, 2012 | $ | 2,481 | $ | 3,712 | $ | 6,163 | $ | 608 | $ | 111 | $ | 13,075 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 567 | 306 | 930 | 35 | — | 1,838 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,914 | 3,406 | 5,233 | 573 | 111 | 11,237 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 43,524 | 134,964 | 176,573 | 20,718 | 7,815 | 383,594 | |||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 2,516 | 3,776 | 10,528 | 160 | — | 16,980 | |||||||||||||||||||||||
Collectively evaluated for impairment | 41,008 | 131,188 | 163,692 | 20,558 | 7,815 | 366,614 | |||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Construction | Secured by | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||||
and Land | 1-4 Family | Estate | and | and Other | |||||||||||||||||||||||||
Development | Residential | Industrial | Loans | ||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning Balance, December 31, 2010 | $ | 4,050 | $ | 1,681 | $ | 9,187 | $ | 858 | $ | 260 | $ | 16,036 | |||||||||||||||||
Charge-offs | (2,983 | ) | (4,369 | ) | (7,551 | ) | (348 | ) | (268 | ) | (15,789 | ) | |||||||||||||||||
Recoveries | 50 | 6 | — | 3 | 251 | 310 | |||||||||||||||||||||||
Provision for loan losses | 1,726 | 6,718 | 3,556 | 450 | (70 | ) | 12,380 | ||||||||||||||||||||||
Ending Balance, December 31, 2011 | $ | 2,843 | $ | 3,766 | $ | 5,192 | $ | 963 | $ | 173 | $ | 12,937 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 930 | 848 | 351 | 309 | — | 2,438 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,913 | 2,918 | 4,841 | 654 | 173 | 10,499 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 48,363 | 122,339 | 181,141 | 29,446 | 11,151 | 392,440 | |||||||||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 7,640 | 6,860 | 10,940 | 480 | — | 25,920 | |||||||||||||||||||||||
Collectively evaluated for impairment | 40,723 | 115,479 | 170,201 | 28,966 | 11,151 | 366,520 | |||||||||||||||||||||||
Impaired Loans and Related Allowance | ' | ||||||||||||||||||||||||||||
Impaired loans and the related allowance at December 31, 2013, 2012 and 2011, were as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 9,086 | $ | 4,259 | $ | 2,603 | $ | 6,862 | $ | 882 | $ | 5,397 | $ | 204 | |||||||||||||||
Secured by 1-4 family | 4,341 | 2,515 | 916 | 3,431 | 190 | 2,864 | 146 | ||||||||||||||||||||||
Other real estate loans | 12,385 | 9,455 | 1,688 | 11,143 | 263 | 7,079 | 441 | ||||||||||||||||||||||
Commercial and industrial | 260 | 114 | 144 | 258 | 44 | 669 | 14 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 26,072 | $ | 16,343 | $ | 5,351 | $ | 21,694 | $ | 1,379 | $ | 16,009 | $ | 805 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 2,947 | $ | 622 | $ | 1,894 | $ | 2,516 | $ | 567 | $ | 5,691 | $ | 99 | |||||||||||||||
Secured by 1-4 family | 4,706 | 1,690 | 2,086 | 3,776 | 306 | 4,821 | 163 | ||||||||||||||||||||||
Other real estate loans | 14,861 | 4,886 | 5,642 | 10,528 | 930 | 10,148 | 276 | ||||||||||||||||||||||
Commercial and industrial | 161 | — | 160 | 160 | 35 | 330 | 10 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 22,675 | $ | 7,198 | $ | 9,782 | $ | 16,980 | $ | 1,838 | $ | 20,990 | $ | 548 | |||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Unpaid | Recorded | Recorded | Total | Related | Average | Interest | |||||||||||||||||||||||
Principal | Investment | Investment | Recorded | Allowance | Recorded | Income | |||||||||||||||||||||||
Balance | with No | with | Investment | Investment | Recognized | ||||||||||||||||||||||||
Allowance | Allowance | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | $ | 8,106 | $ | 3,531 | $ | 4,109 | $ | 7,640 | $ | 930 | $ | 7,077 | $ | 367 | |||||||||||||||
Secured by 1-4 family | 8,566 | 3,495 | 3,365 | 6,860 | 848 | 6,519 | 301 | ||||||||||||||||||||||
Other real estate loans | 15,165 | 8,135 | 2,805 | 10,940 | 351 | 23,918 | 396 | ||||||||||||||||||||||
Commercial and industrial | 480 | — | 480 | 480 | 309 | 660 | 27 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 32,317 | $ | 15,161 | $ | 10,758 | $ | 25,920 | $ | 2,438 | $ | 38,174 | $ | 1,091 | |||||||||||||||
Information Regarding Loans Modified under TDR | ' | ||||||||||||||||||||||||||||
The following table provides further information regarding loans modified under TDRs during the year ended December 31, 2012 and 2011: | |||||||||||||||||||||||||||||
For the year ended | For the year ended | ||||||||||||||||||||||||||||
December 31, 2012 | December 31, 2011 | ||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||
Number of | Pre- | Post- | Number of | Pre- | Post- | ||||||||||||||||||||||||
Contracts | modification | modification | Contracts | modification | modification | ||||||||||||||||||||||||
outstanding | outstanding | outstanding | outstanding | ||||||||||||||||||||||||||
recorded | recorded | recorded | recorded | ||||||||||||||||||||||||||
investment | investment | investment | investment | ||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction | — | $ | — | $ | — | 1 | $ | 701 | $ | 357 | |||||||||||||||||||
Secured by 1-4 family | 1 | 183 | 183 | 4 | 2,667 | 2,667 | |||||||||||||||||||||||
Other real estate loans | 1 | 2,426 | 2,426 | 14 | 12,829 | 12,855 | |||||||||||||||||||||||
Commercial and industrial | — | — | — | — | — | — | |||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | |||||||||||||||||||||||
Total | 2 | $ | 2,609 | $ | 2,609 | 19 | $ | 16,197 | $ | 15,879 | |||||||||||||||||||
Troubled Debt Restructurings that Subsequently Defaulted | ' | ||||||||||||||||||||||||||||
The table below shows troubled debt restructurings that subsequently defaulted as of December 31, 2011: | |||||||||||||||||||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
Number of | Recorded | ||||||||||||||||||||||||||||
Contracts | investment | ||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||
Construction and land development | 1 | $ | 235 | ||||||||||||||||||||||||||
Secured by 1-4 family | — | — | |||||||||||||||||||||||||||
Other real estate loans | 3 | 361 | |||||||||||||||||||||||||||
Commercial and industrial | — | — | |||||||||||||||||||||||||||
Consumer and other loans | — | — | |||||||||||||||||||||||||||
Total | 4 | $ | 596 | ||||||||||||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||
Summary of Changes in the Balance for OREO | ' | ||||||||||||
Changes in the balance for OREO are as follows: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at the beginning of year, gross | $ | 7,764 | $ | 9,166 | |||||||||
Transfers in | 2,036 | 5,578 | |||||||||||
Charge-offs | (1,564 | ) | (1,808 | ) | |||||||||
Sales proceeds | (3,618 | ) | (5,438 | ) | |||||||||
Gain on disposition | 80 | 268 | |||||||||||
Depreciation | (3 | ) | (2 | ) | |||||||||
Balance at the end of year, gross | 4,695 | 7,764 | |||||||||||
Less: valuation allowance | (1,665 | ) | (2,174 | ) | |||||||||
Balance at the end of year, net | $ | 3,030 | $ | 5,590 | |||||||||
Summary of Changes in the Allowance for OREO Losses | ' | ||||||||||||
Changes in the allowance for OREO losses are as follows: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balance at beginning of year | $ | 2,174 | $ | 2,792 | $ | 3,341 | |||||||
Provision for losses | 1,055 | 1,190 | 1,558 | ||||||||||
Charge-offs, net | (1,564 | ) | (1,808 | ) | (2,107 | ) | |||||||
Balance at end of year | $ | 1,665 | $ | 2,174 | $ | 2,792 | |||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Premises and Equipment | ' | ||||||||
Premises and equipment are summarized as follows at December 31, 2013 and 2012: | |||||||||
(in thousands) | |||||||||
2013 | 2012 | ||||||||
Land | $ | 4,393 | $ | 4,397 | |||||
Buildings and leasehold improvements | 15,030 | 15,954 | |||||||
Furniture and equipment | 9,296 | 9,997 | |||||||
Construction in process | 56 | 790 | |||||||
$ | 28,775 | $ | 31,138 | ||||||
Less accumulated depreciation | 12,133 | 12,549 | |||||||
$ | 16,642 | $ | 18,589 | ||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Banking And Thrift [Abstract] | ' | ||||
Scheduled Maturities of Time Deposits | ' | ||||
At December 31, 2013, the scheduled maturities of time deposits were as follows: | |||||
(in thousands) | |||||
2014 | $ | 68,817 | |||
2015 | 22,404 | ||||
2016 | 17,090 | ||||
2017 | 3,345 | ||||
2018 | 12,100 | ||||
$ | 123,756 | ||||
Other_Borrowings_Tables
Other Borrowings (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Text Block [Abstract] | ' | ||||
Contractual Maturities of Other Borrowings | ' | ||||
The contractual maturities of other borrowings at December 31, 2013 were as follows: | |||||
(in thousands) | |||||
2014 | $ | 25 | |||
2015 | 27 | ||||
2016 | — | ||||
2017 | 3,000 | ||||
2018 | 3,000 | ||||
$ | 6,052 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Net Deferred Tax Assets | ' | ||||||||||||
Net deferred tax assets consisted of the following components at December 31, 2013 and 2012: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred Tax Assets | |||||||||||||
Allowance for loan losses | $ | 3,619 | $ | 4,446 | |||||||||
Allowance for other real estate owned | 566 | 760 | |||||||||||
Interest on non-accrual loans | — | 266 | |||||||||||
Unfunded pension liability | 90 | 894 | |||||||||||
Split dollar liability | 207 | 391 | |||||||||||
Gain on other real estate owned | 769 | 990 | |||||||||||
Securities available for sale | 584 | — | |||||||||||
Accrued pension | 289 | 4 | |||||||||||
Loan origination costs, net | 6 | — | |||||||||||
Other | 10 | 118 | |||||||||||
$ | 6,140 | $ | 7,869 | ||||||||||
Deferred Tax Liabilities | |||||||||||||
Depreciation | $ | 685 | $ | 674 | |||||||||
Securities available for sale | — | 601 | |||||||||||
Discount accretion | 5 | 3 | |||||||||||
Loan origination costs, net | — | 30 | |||||||||||
$ | 690 | $ | 1,308 | ||||||||||
Valuation allowance | — | 6,561 | |||||||||||
Net deferred tax assets | $ | 5,450 | $ | — | |||||||||
Provision (Benefit) for Income Taxes | ' | ||||||||||||
The provision (benefit) for income taxes for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current tax expense (benefit) | $ | (44 | ) | $ | 965 | $ | (2,607 | ) | |||||
Deferred tax expense (benefit) | (4,776 | ) | — | 6,442 | |||||||||
$ | (4,820 | ) | $ | 965 | $ | 3,835 | |||||||
Income Tax Provision (Benefit) Differs from the Amount of Income Tax Determined by Applying the U.S. Federal Income Tax Rate to Pretax Income | ' | ||||||||||||
The income tax provision (benefit) differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2013, 2012 and 2011, due to the following: | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Computed tax expense (benefit) at statutory federal rate | $ | 1,718 | $ | 1,280 | $ | (2,423 | ) | ||||||
Increase (decrease) in income taxes from deferred tax valuation allowance | (6,275 | ) | (167 | ) | 6,442 | ||||||||
Decrease in income taxes resulting from: | |||||||||||||
Tax-exempt interest and dividend income | (153 | ) | (125 | ) | (186 | ) | |||||||
Other | (110 | ) | (23 | ) | 2 | ||||||||
$ | (4,820 | ) | $ | 965 | $ | 3,835 | |||||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Changes in Plan Benefit Obligation and Fair Value of Assets | ' | ||||||||||||||||
The following table provides a reconciliation of the changes in the plan benefit obligation and the fair value of assets for the periods ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Change in Benefit Obligation | |||||||||||||||||
Benefit obligation, beginning of year | $ | 7,244 | $ | 5,995 | $ | 5,588 | |||||||||||
Service cost | 470 | 427 | 359 | ||||||||||||||
Interest cost | 279 | 269 | 307 | ||||||||||||||
Actuarial (gain) loss | (1,327 | ) | 725 | 871 | |||||||||||||
Benefits paid | (961 | ) | (172 | ) | (1,097 | ) | |||||||||||
Gain due to settlement | (204 | ) | — | (33 | ) | ||||||||||||
Benefit obligation, end of year | $ | 5,501 | $ | 7,244 | $ | 5,995 | |||||||||||
Changes in Plan Assets | |||||||||||||||||
Fair value of plan assets, beginning of year | $ | 4,046 | $ | 3,454 | $ | 4,284 | |||||||||||
Actual return on plan assets | 744 | 458 | 27 | ||||||||||||||
Employer contributions | 500 | 306 | 240 | ||||||||||||||
Benefits paid | (961 | ) | (172 | ) | (1,097 | ) | |||||||||||
Fair value of assets, end of year | $ | 4,329 | $ | 4,046 | $ | 3,454 | |||||||||||
Funded Status, end of year | $ | (1,172 | ) | $ | (3,198 | ) | $ | (2,541 | ) | ||||||||
Amount Recognized in Other Liabilities | $ | (1,172 | ) | $ | (3,198 | ) | $ | (2,541 | ) | ||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss, Net of Tax | ' | ||||||||||||||||
Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax | |||||||||||||||||
Net loss | $ | 265 | $ | 2,629 | $ | 2,173 | |||||||||||
Prior service cost | — | — | 2 | ||||||||||||||
Deferred income tax benefit | (90 | ) | — | — | |||||||||||||
Amount recognized | $ | 175 | $ | 2,629 | $ | 2,175 | |||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation | ' | ||||||||||||||||
Weighted Average Assumptions Used to Determine Benefit Obligation | |||||||||||||||||
Discount rate used for disclosure | 5 | % | 4 | % | 4.5 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||
Components of Net Periodic Benefit Cost | ' | ||||||||||||||||
(in thousands) | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||
Service cost | $ | 470 | $ | 427 | $ | 359 | |||||||||||
Interest cost | 279 | 269 | 307 | ||||||||||||||
Expected return on plan assets | (303 | ) | (275 | ) | (342 | ) | |||||||||||
Amortization of prior service cost | — | 2 | 4 | ||||||||||||||
Amortization of net obligation at transition | — | — | — | ||||||||||||||
Recognized net loss due to settlement | 284 | — | 212 | ||||||||||||||
Recognized net actuarial loss | 109 | 86 | 38 | ||||||||||||||
Net periodic benefit cost | $ | 839 | $ | 509 | $ | 578 | |||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | ' | ||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | |||||||||||||||||
Net (gain) loss | $ | (2,364 | ) | $ | 456 | $ | 902 | ||||||||||
Amortization of prior service cost | — | (2 | ) | (4 | ) | ||||||||||||
Amortization of net obligation at transition | — | — | — | ||||||||||||||
Total recognized in accumulated other comprehensive income (loss) | $ | (2,364 | ) | $ | 454 | $ | 898 | ||||||||||
Total Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive Income (Loss) | $ | (1,525 | ) | $ | 963 | $ | 1,476 | ||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ||||||||||||||||
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | |||||||||||||||||
Discount rate | 4 | % | 4.5 | % | 5.5 | % | |||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | |||||||||||
Schedule of Pension Plan's Weighted-Average Asset Allocations | ' | ||||||||||||||||
The pension plan’s weighted-average asset allocations at the end of the plan year for 2013 and 2012, by asset category were as follows: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Asset Category | |||||||||||||||||
Mutual funds - fixed income | 39 | % | 25 | % | |||||||||||||
Mutual funds - equity | 61 | % | 75 | % | |||||||||||||
Total | 100 | % | 100 | % | |||||||||||||
Schedule of Fair Value Hierarchy, the Company's Pension Plan Assets | ' | ||||||||||||||||
The following tables set forth by level, within the fair value hierarchy, the Company’s pension plan assets at fair value as of December 31, 2013, 2012 and 2011: | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,697 | $ | 1,697 | — | — | |||||||||||
Equity funds | 2,632 | 2,632 | — | — | |||||||||||||
Total | $ | 4,329 | $ | 4,329 | — | — | |||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,023 | $ | 1,023 | — | — | |||||||||||
Equity funds | 3,023 | 3,023 | — | — | |||||||||||||
Total | $ | 4,046 | $ | 4,046 | $ | — | $ | — | |||||||||
Fair Value Measurements at December 31, 2011 | |||||||||||||||||
(in thousands) | |||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||
Fixed income funds | $ | 1,409 | $ | 1,409 | — | — | |||||||||||
Equity funds | 2,045 | 2,045 | — | — | |||||||||||||
Total | $ | 3,454 | $ | 3,454 | $ | — | $ | — | |||||||||
Estimated Future Benefit Payments, Which Reflect Expected Future Service | ' | ||||||||||||||||
Estimated future benefit payments, which reflect expected future service, as appropriate, were as follows at December 31, 2013: | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | $ | 262 | |||||||||||||||
2015 | 181 | ||||||||||||||||
2016 | 275 | ||||||||||||||||
2017 | 271 | ||||||||||||||||
2018 | 23 | ||||||||||||||||
Years 2019-2023 | 1,465 |
Commitments_and_Unfunded_Credi1
Commitments and Unfunded Credits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Financial Instruments Representing Credit Risk | ' | ||||||||
At December 31, 2013 and 2012, the following financial instruments were outstanding whose contract amounts represent credit risk: | |||||||||
(in thousands) | |||||||||
2013 | 2012 | ||||||||
Commitments to extend credit and unfunded commitments under lines of credit | $ | 59,115 | $ | 52,849 | |||||
Stand-by letters of credit | 7,610 | 8,306 |
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Minimum Rental Commitments under Noncancelable Leases | ' | ||||
Minimum rental commitments under noncancelable leases with terms in excess of one year as of December 31, 2013 were as follows: | |||||
(in thousands) | |||||
Operating Leases | |||||
2014 | $ | 52 | |||
2015 | 46 | ||||
2016 | 15 | ||||
2017 | 5 | ||||
Total minimum payments | $ | 118 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Balances of Assets Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||
The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2013 and 2012. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 84,897 | $ | — | $ | 84,897 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 18,399 | — | 18,399 | — | |||||||||||||||||
Corporate equity securities | 5 | 5 | — | — | |||||||||||||||||
$ | 103,301 | $ | 5 | $ | 103,296 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||
Using | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2012 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 73,218 | $ | — | $ | 73,218 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,235 | — | 16,235 | — | |||||||||||||||||
Corporate equity securities | 3 | 3 | — | — | |||||||||||||||||
$ | 89,456 | $ | 3 | $ | 89,453 | $ | — | ||||||||||||||
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||||||
The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2013 and 2012. | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2013 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans, net | $ | 3,972 | $ | — | $ | — | $ | 3,972 | |||||||||||||
Other real estate owned, net | 3,030 | — | — | 3,030 | |||||||||||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2012 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans, net | $ | 7,944 | $ | — | $ | — | $ | 7,944 | |||||||||||||
Other real estate owned, net | 5,590 | — | — | 5,590 | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ' | ||||||||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for December 31, 2013 | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Fair | Valuation Technique | Unobservable Input | Range | ||||||||||||||||||
Value | (Weighted Average) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans | $ | 3,972 | Property appraisals | Selling cost | 10% | ||||||||||||||||
Discount for lack of marketability and age of appraisal | 0%-41% (8%) | ||||||||||||||||||||
Other real estate owned | 3,030 | Property appraisals | Selling cost | 7% | |||||||||||||||||
Carrying Values and Estimated Fair Values of Company's Financial Instruments | ' | ||||||||||||||||||||
The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2013 and 2012 are as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fair Value Measurements at December 31, 2013 using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair Value | |||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | Level 3 | |||||||||||||||||||
Identical | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Level 1 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 31,508 | $ | 31,508 | $ | — | $ | — | $ | 31,508 | |||||||||||
Securities | 103,301 | 5 | 103,296 | — | 103,301 | ||||||||||||||||
Restricted stock | 1,804 | — | 1,804 | — | 1,804 | ||||||||||||||||
Loans, net | 346,449 | — | — | 353,874 | 353,874 | ||||||||||||||||
Bank owned life insurance | 10,978 | — | 10,978 | — | 10,978 | ||||||||||||||||
Accrued interest receivable | 1,302 | — | 1,302 | — | 1,302 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 450,711 | $ | — | $ | 326,955 | $ | 124,422 | $ | 451,377 | |||||||||||
Other borrowings | 6,052 | — | — | 6,095 | 6,095 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,399 | 9,399 | ||||||||||||||||
Accrued interest payable | 177 | — | 177 | — | 177 | ||||||||||||||||
(in thousands) | |||||||||||||||||||||
Fair Value Measurements at December 31, 2012 using | |||||||||||||||||||||
Carrying | Quoted | Significant | Significant | Fair Value | |||||||||||||||||
Amount | Prices in | Other | Unobservable | ||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | Level 3 | |||||||||||||||||||
Identical | Level 2 | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Level 1 | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and short-term investments | $ | 31,028 | $ | 31,028 | $ | — | $ | — | $ | 31,028 | |||||||||||
Securities | 89,456 | 3 | 89,453 | — | 89,456 | ||||||||||||||||
Restricted stock | 1,974 | — | 1,974 | — | 1,974 | ||||||||||||||||
Loans held for sale | 503 | — | 503 | — | 503 | ||||||||||||||||
Loans, net | 370,519 | — | — | 375,941 | 375,941 | ||||||||||||||||
Bank owned life insurance | 10,609 | — | 10,609 | — | 10,609 | ||||||||||||||||
Accrued interest receivable | 1,459 | — | 1,459 | — | 1,459 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 466,917 | $ | — | $ | 306,719 | $ | 162,151 | $ | 468,870 | |||||||||||
Other borrowings | 6,076 | — | — | 6,220 | 6,220 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 8,735 | 8,735 | ||||||||||||||||
Accrued interest payable | 286 | — | 286 | — | 286 |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||||||||||||||
Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines | ' | ||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are also presented in the following table. | |||||||||||||||||||||||||
(amounts in thousands) | Minimum To Be Well | ||||||||||||||||||||||||
Actual | Minimum Capital | Capitalized Under | |||||||||||||||||||||||
Requirement | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
December 31, 2013: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 66,437 | 18.21 | % | $ | 29,193 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 60,578 | 16.62 | % | $ | 29,160 | 8 | % | $ | 36,450 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 61,800 | 16.94 | % | $ | 14,597 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 55,947 | 15.35 | % | $ | 14,580 | 4 | % | $ | 21,870 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Company | $ | 61,800 | 11.75 | % | $ | 21,047 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 55,947 | 10.68 | % | $ | 20,948 | 4 | % | $ | 26,184 | 5 | % | |||||||||||||
December 31, 2012: | |||||||||||||||||||||||||
Total Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 59,876 | 15.34 | % | $ | 31,220 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 52,980 | 13.59 | % | $ | 31,197 | 8 | % | $ | 38,996 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk Weighted Assets): | |||||||||||||||||||||||||
Company | $ | 54,897 | 14.07 | % | $ | 15,610 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 48,004 | 12.31 | % | $ | 15,599 | 4 | % | $ | 23,398 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets): | |||||||||||||||||||||||||
Company | $ | 54,897 | 10.47 | % | $ | 20,971 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 48,004 | 9.15 | % | $ | 20,974 | 4 | % | $ | 26,218 | 5 | % |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Schedule of Changes in Component of Accumulated other Comprehensive Income (Loss) | ' | ||||||||||||
Changes in each component of accumulated other comprehensive income (loss) were as follows: | |||||||||||||
Net | Adjustments | Accumulated | |||||||||||
Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Pension | Comprehensive | |||||||||||
on Securities | Benefits | Income (Loss) | |||||||||||
Balance at December 31, 2010 | $ | 977 | $ | (843 | ) | $ | 134 | ||||||
Other comprehensive income (loss) before reclassifications | 1,774 | (898 | ) | 876 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (59 | ) | — | (59 | ) | ||||||||
Deferred tax adjustment | 474 | (434 | ) | 40 | |||||||||
Change during period | 2,189 | (1,332 | ) | 857 | |||||||||
Balance at December 31, 2011 | $ | 3,166 | $ | (2,175 | ) | $ | 991 | ||||||
Other comprehensive income (loss) before reclassifications | (111 | ) | (454 | ) | (565 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income (loss) | (1,285 | ) | — | (1,285 | ) | ||||||||
Change during period | (1,396 | ) | (454 | ) | (1,850 | ) | |||||||
Balance at December 31, 2012 | $ | 1,770 | $ | (2,629 | ) | $ | (859 | ) | |||||
Other comprehensive income (loss) before reclassifications | (3,482 | ) | 2,364 | (1,118 | ) | ||||||||
Deferred tax adjustment | 583 | 90 | 673 | ||||||||||
Change during period | (2,899 | ) | 2,454 | (445 | ) | ||||||||
Balance at December 31, 2013 | $ | (1,129 | ) | $ | (175 | ) | $ | (1,304 | ) | ||||
Parent_Company_Only_Financial_1
Parent Company Only Financial Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Balance Sheets | ' | ||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash | $ | 5,395 | $ | 6,406 | |||||||||
Investment in subsidiaries, at cost, plus undistributed net income | 56,982 | 47,272 | |||||||||||
Other assets | 470 | 496 | |||||||||||
Total assets | $ | 62,847 | $ | 54,174 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Trust preferred capital notes | $ | 9,279 | $ | 9,279 | |||||||||
Other liabilities | 8 | 6 | |||||||||||
Total liabilities | $ | 9,287 | $ | 9,285 | |||||||||
Preferred stock | $ | 14,564 | $ | 14,409 | |||||||||
Common stock | 6,127 | 6,127 | |||||||||||
Surplus | 6,813 | 6,813 | |||||||||||
Retained earnings | 27,360 | 18,399 | |||||||||||
Accumulated other comprehensive loss, net | (1,304 | ) | (859 | ) | |||||||||
Total shareholders’ equity | $ | 53,560 | $ | 44,889 | |||||||||
Total liabilities and shareholders’ equity | $ | 62,847 | $ | 54,174 | |||||||||
Statements of Operations | ' | ||||||||||||
FIRST NATIONAL CORPORATION | |||||||||||||
(Parent Company Only) | |||||||||||||
Statements of Operations | |||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income | |||||||||||||
Dividends from subsidiary | $ | — | $ | 500 | $ | 1,600 | |||||||
Gain on sale of securities available for sale | — | 139 | — | ||||||||||
Other income | 51 | 41 | — | ||||||||||
$ | 51 | $ | 680 | $ | 1,600 | ||||||||
Expense | |||||||||||||
Interest expense | $ | 222 | $ | 237 | $ | 386 | |||||||
Stationery and supplies | 17 | 1 | 14 | ||||||||||
Legal and professional fees | 40 | — | — | ||||||||||
Data processing | 53 | — | 31 | ||||||||||
Management fee-subsidiary | 95 | — | — | ||||||||||
Other expense | 51 | 6 | 47 | ||||||||||
Total expense | $ | 478 | $ | 244 | $ | 478 | |||||||
Income (loss) before allocated tax benefits and undistributed income (loss) of subsidiary | $ | (427 | ) | $ | 436 | $ | 1,122 | ||||||
Allocated income tax benefit | 145 | 22 | 162 | ||||||||||
Income (loss) before equity in undistributed income (loss) of subsidiary | $ | (282 | ) | $ | 458 | $ | 1,284 | ||||||
Equity in undistributed income (loss) of subsidiary | 10,156 | 2,342 | (12,245 | ) | |||||||||
Net income (loss) | $ | 9,874 | $ | 2,800 | $ | (10,961 | ) | ||||||
Effective dividend and accretion on preferred stock | 913 | 904 | 894 | ||||||||||
Net income (loss) available to common shareholders | $ | 8,961 | $ | 1,896 | $ | (11,855 | ) | ||||||
Statements of Cash Flows | ' | ||||||||||||
FIRST NATIONAL CORPORATION | |||||||||||||
(Parent Company Only) | |||||||||||||
Statements of Cash Flows | |||||||||||||
Three Years Ended December 31, 2013 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash Flows from Operating Activities | |||||||||||||
Net income (loss) | $ | 9,874 | $ | 2,800 | $ | (10,961 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||
Equity in undistributed (income) loss of subsidiary | (10,156 | ) | (2,342 | ) | 12,245 | ||||||||
Gain on sale of securities available for sale | — | (139 | ) | — | |||||||||
(Increase) decrease in other assets | 29 | (42 | ) | 45 | |||||||||
Increase (decrease) in other liabilities | — | (2 | ) | 2 | |||||||||
Net cash provided by (used in) operating activities | $ | (253 | ) | $ | 275 | $ | 1,331 | ||||||
Cash Flows from Investing Activities | |||||||||||||
Proceeds from sale of securities available for sale | $ | — | $ | 164 | $ | — | |||||||
Cash Flows from Financing Activities | |||||||||||||
Distribution of capital to subsidiary | $ | — | (1,000 | ) | — | ||||||||
Cash dividends paid on common stock | — | — | (540 | ) | |||||||||
Cash dividends paid on preferred stock | (758 | ) | (758 | ) | (758 | ) | |||||||
Net proceeds from issuance of common stock | — | 7,601 | — | ||||||||||
Net cash provided by (used in) financing activities | $ | (758 | ) | $ | 5,843 | $ | (1,298 | ) | |||||
Increase (decrease) in cash and cash equivalents | $ | (1,011 | ) | $ | 6,282 | $ | 33 | ||||||
Cash and Cash Equivalents | |||||||||||||
Beginning | 6,406 | 124 | 91 | ||||||||||
Ending | $ | 5,395 | $ | 6,406 | $ | 124 | |||||||
Nature_of_Banking_Activities_a2
Nature of Banking Activities and Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Entity | |||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Number of accounts included by parent company | 6 | ' | ' |
Recognition of other than temporary impairment on basis of credit loss description | 'If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income. | ' | ' |
Gain (loss) on rate lock commitments | $0 | ' | ' |
Reclassified TDR value | 1,900,000 | 6,300,000 | ' |
Largest amount of tax benefit realized by taxing authority | 50.00% | ' | ' |
Liability for unrecognized tax benefits | 0 | 0 | ' |
Potential common shares that would have a dilutive effect | 0 | ' | ' |
Average number of common shares outstanding basic and diluted | 4,901,464 | 3,944,506 | 2,953,344 |
Advertising cost | 269,000 | 364,000 | 368,000 |
Minimum [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Period of time between issuance of a loan commitment and closing and sale of the loan | '30 days | ' | ' |
Management's policy on evaluation of impairment | 250,000 | ' | ' |
Minimum [Member] | Software [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of depreciation of premises and equipment | '3 years | ' | ' |
Minimum [Member] | Premises and Equipment [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of depreciation of premises and equipment | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Period of time between issuance of a loan commitment and closing and sale of the loan | '60 days | ' | ' |
Accrual status of loan | '90 days | ' | ' |
Company not considered value of impairment on individual consumer, residential and small commercial loans | $250,000 | ' | ' |
Maximum [Member] | Software [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of depreciation of premises and equipment | '7 years | ' | ' |
Maximum [Member] | Premises and Equipment [Member] | ' | ' | ' |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of depreciation of premises and equipment | '40 years | ' | ' |
Securities_Summary_of_Amortize
Securities - Summary of Amortized Costs and Fair Values of Securities Available for Sale (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $105,013 | $87,686 |
Gross Unrealized Gains | 1,024 | 2,089 |
Gross Unrealized (Losses) | -2,736 | -319 |
Fair Value | 103,301 | 89,456 |
U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 86,365 | 72,129 |
Gross Unrealized Gains | 670 | 1,325 |
Gross Unrealized (Losses) | -2,138 | -236 |
Fair Value | 84,897 | 73,218 |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 18,647 | 15,556 |
Gross Unrealized Gains | 350 | 762 |
Gross Unrealized (Losses) | -598 | -83 |
Fair Value | 18,399 | 16,235 |
Corporate Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 1 | 1 |
Gross Unrealized Gains | 4 | 2 |
Gross Unrealized (Losses) | ' | ' |
Fair Value | $5 | $3 |
Securities_Summary_of_Investme
Securities - Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of investments in unrealized loss position that were temporarily impaired | ' | ' |
Less than 12 months - Fair Value | $56,975 | $23,899 |
12 months or more - Fair Value | 12,843 | ' |
Total - Fair Value | 69,818 | 23,899 |
Summary of investments in unrealized loss position that were temporarily impaired, Unrealized (Loss) | ' | ' |
Less than 12 months - Unrealized (Loss) | -2,177 | -319 |
12 months or more - Unrealized (Loss) | -559 | ' |
Total Unrealized (Loss) | -2,736 | -319 |
U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Summary of investments in unrealized loss position that were temporarily impaired | ' | ' |
Less than 12 months - Fair Value | 49,810 | 19,612 |
12 months or more - Fair Value | 10,180 | ' |
Total - Fair Value | 59,990 | 19,612 |
Summary of investments in unrealized loss position that were temporarily impaired, Unrealized (Loss) | ' | ' |
Less than 12 months - Unrealized (Loss) | -1,755 | -236 |
12 months or more - Unrealized (Loss) | -383 | ' |
Total Unrealized (Loss) | -2,138 | -236 |
Obligations of States and Political Subdivisions [Member] | ' | ' |
Summary of investments in unrealized loss position that were temporarily impaired | ' | ' |
Less than 12 months - Fair Value | 7,165 | 4,287 |
12 months or more - Fair Value | 2,663 | ' |
Total - Fair Value | 9,828 | 4,287 |
Summary of investments in unrealized loss position that were temporarily impaired, Unrealized (Loss) | ' | ' |
Less than 12 months - Unrealized (Loss) | -422 | -83 |
12 months or more - Unrealized (Loss) | -176 | ' |
Total Unrealized (Loss) | ($598) | ($83) |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contract | Contract | ||
Amortized Cost And Fair Value Debt Securities [Abstract] | ' | ' | ' |
Number of U.S. agency and mortgage-backed securities | 40 | 12 | ' |
Number of obligations of state and political subdivisions in an unrealized loss position | 21 | 9 | ' |
Percentage of investment portfolio | 100.00% | ' | ' |
Weighted-average period of re-pricing of portfolio | '4 years 6 months | '3 years 7 months 6 days | ' |
Proceeds from maturities, calls, and principal payments of securities available for sale | $4,600,000 | $36,300,000 | $14,900,000 |
Gross realized gains on securities available for sale | 0 | 1,300,000 | 65,000 |
Gross realized losses on securities available for sale | 0 | 0 | 6,000 |
Securities book value | 3,100,000 | 24,000,000 | ' |
Impairment recognized | $0 | ' | ' |
Securities_Amortized_Cost_and_
Securities - Amortized Cost and Fair Value of Securities Available for Sale (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Due within one year, Amortized Cost | $899 | ' |
Due after one year through five years, Amortized Cost | 5,301 | ' |
Due after five years through ten years, Amortized Cost | 20,353 | ' |
Due after ten years, Amortized Cost | 78,459 | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 105,013 | 87,686 |
Due within one year, Fair Value | 923 | ' |
Due after one year through five years, Fair Value | 5,329 | ' |
Due after five years through ten years, Fair Value | 19,901 | ' |
Due after ten years, Fair Value | 77,143 | ' |
Available for Sale Securities, Debt Maturities, Fair Value, Total | 103,301 | 89,456 |
Corporate Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Total | 1 | ' |
Available for Sale Securities, Debt Maturities, Fair Value, Total | $5 | ' |
Securities_Composition_of_Rest
Securities - Composition of Restricted Securities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Stock And Federal Reserve Bank Stock [Abstract] | ' | ' |
Federal Home Loan Bank stock | $908 | $1,078 |
Federal Reserve Bank stock | 846 | 846 |
Community Bankers' Bank stock | 50 | 50 |
Total Restricted Securities | $1,804 | $1,974 |
Loans_Summary_of_Loans_Detail
Loans - Summary of Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Real estate loans: | ' | ' | ' | ' |
Commercial and industrial | $22,803 | $23,071 | ' | ' |
Consumer and other loans | 12,301 | 7,815 | ' | ' |
Total loans | 357,093 | 383,594 | 392,440 | ' |
Allowance for loan losses | -10,644 | -13,075 | -12,937 | -16,036 |
Loans, net | 346,449 | 370,519 | ' | ' |
Construction and Land Development [Member] | ' | ' | ' | ' |
Real estate loans: | ' | ' | ' | ' |
Real estate loans | 34,060 | 43,524 | ' | ' |
Total loans | 34,060 | 43,524 | ' | ' |
Secured by 1-4 Family Residential [Member] | ' | ' | ' | ' |
Real estate loans: | ' | ' | ' | ' |
Real estate loans | 141,961 | 134,964 | ' | ' |
Total loans | 141,961 | 134,964 | ' | ' |
Other Real Estate Loans [Member] | ' | ' | ' | ' |
Real estate loans: | ' | ' | ' | ' |
Real estate loans | 145,968 | 174,220 | ' | ' |
Total loans | $145,968 | $174,220 | ' | ' |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | $357,093 | $383,594 | $392,440 |
Net deferred loan fees | 18 | 89 | ' |
Consumer and Other Loans [Member] | Demand Deposit Overdrafts [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | $279 | $153 | ' |
Loans_Summary_of_Loan_Classes_
Loans - Summary of Loan Classes and an Aging of Past Due Loans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | $3,005 | $4,636 | ' |
60-89 Days Past Due | 4,809 | 1,800 | ' |
> 90 Days Past Due | 3,571 | 2,148 | ' |
Total Past Due | 11,385 | 8,584 | ' |
Current | 345,708 | 375,010 | ' |
Total Loans | 357,093 | 383,594 | 392,440 |
Non-Accrual Loans | 11,678 | 8,393 | ' |
90 Days or More Past Due and Accruing | 49 | 228 | ' |
Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 161 | 77 | ' |
60-89 Days Past Due | 2,852 | 701 | ' |
> 90 Days Past Due | 3,339 | 89 | ' |
Total Past Due | 6,352 | 867 | ' |
Current | 27,708 | 42,657 | ' |
Total Loans | 34,060 | 43,524 | ' |
Non-Accrual Loans | 5,811 | 646 | ' |
90 Days or More Past Due and Accruing | ' | ' | ' |
Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,561 | 2,741 | ' |
60-89 Days Past Due | 316 | ' | ' |
> 90 Days Past Due | 136 | 476 | ' |
Total Past Due | 2,013 | 3,217 | ' |
Current | 139,948 | 131,747 | ' |
Total Loans | 141,961 | 134,964 | ' |
Non-Accrual Loans | 953 | 968 | ' |
90 Days or More Past Due and Accruing | 27 | 129 | ' |
Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,077 | 1,347 | ' |
60-89 Days Past Due | 1,636 | 686 | ' |
> 90 Days Past Due | 74 | 1,476 | ' |
Total Past Due | 2,787 | 3,509 | ' |
Current | 143,181 | 170,711 | ' |
Total Loans | 145,968 | 174,220 | ' |
Non-Accrual Loans | 4,756 | 6,752 | ' |
90 Days or More Past Due and Accruing | ' | ' | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 165 | 428 | ' |
60-89 Days Past Due | ' | 408 | ' |
> 90 Days Past Due | 22 | 99 | ' |
Total Past Due | 187 | 935 | ' |
Current | 22,616 | 22,136 | ' |
Total Loans | 22,803 | 23,071 | ' |
Non-Accrual Loans | 144 | 14 | ' |
90 Days or More Past Due and Accruing | 22 | 99 | ' |
Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 41 | 43 | ' |
60-89 Days Past Due | 5 | 5 | ' |
> 90 Days Past Due | ' | 8 | ' |
Total Past Due | 46 | 56 | ' |
Current | 12,255 | 7,759 | ' |
Total Loans | 12,301 | 7,815 | ' |
Non-Accrual Loans | 14 | 13 | ' |
90 Days or More Past Due and Accruing | ' | ' | ' |
Loans_Analysis_of_the_Credit_R
Loans - Analysis of the Credit Risk Profile of Each Loan Class (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | $357,093 | $383,594 | $392,440 |
Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 34,060 | 43,524 | ' |
Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 141,961 | 134,964 | ' |
Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 145,968 | 174,220 | ' |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 22,803 | 23,071 | ' |
Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 12,301 | 7,815 | ' |
Pass [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 302,285 | 304,351 | ' |
Pass [Member] | Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 19,724 | 22,384 | ' |
Pass [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 130,048 | 120,692 | ' |
Pass [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 118,663 | 134,701 | ' |
Pass [Member] | Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 21,563 | 18,831 | ' |
Pass [Member] | Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 12,287 | 7,743 | ' |
Special Mention [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 19,660 | 26,614 | ' |
Special Mention [Member] | Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 3,500 | 5,176 | ' |
Special Mention [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 5,378 | 6,055 | ' |
Special Mention [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 10,227 | 14,513 | ' |
Special Mention [Member] | Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 555 | 798 | ' |
Special Mention [Member] | Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | 72 | ' |
Substandard [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 35,148 | 52,629 | ' |
Substandard [Member] | Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 10,836 | 15,964 | ' |
Substandard [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 6,535 | 8,217 | ' |
Substandard [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 17,078 | 25,006 | ' |
Substandard [Member] | Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 685 | 3,442 | ' |
Substandard [Member] | Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | 14 | ' | ' |
Doubtful [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Doubtful [Member] | Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Doubtful [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Doubtful [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Doubtful [Member] | Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Doubtful [Member] | Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Allowance_for_Loan_Losses_Tran
Allowance for Loan Losses - Transactions in Allowance for Loan Losses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Balance at beginning of year | $13,075 | $12,937 | $16,036 |
Provision for (recovery of) loan losses | -425 | 3,555 | 12,380 |
Loan recoveries | 2,486 | 376 | 310 |
Loan charge-offs | -4,492 | -3,793 | -15,789 |
Balance at end of year | $10,644 | $13,075 | $12,937 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance by Impairment Methodology and Loans by Impairment Methodology (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | $13,075 | $12,937 | $16,036 |
Charge-offs | -4,492 | -3,793 | -15,789 |
Recoveries | 2,486 | 376 | 310 |
Provision for (recovery of) loan losses | -425 | 3,555 | 12,380 |
Balance at end of year | 10,644 | 13,075 | 12,937 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 1,379 | 1,838 | 2,438 |
Allowance for loan losses, Collectively evaluated for impairment | 9,265 | 11,237 | 10,499 |
Loans: | ' | ' | ' |
Ending Balance | 357,093 | 383,594 | 392,440 |
Loans, Individually evaluated for impairment | 21,694 | 16,980 | 25,920 |
Loans, Collectively evaluated for impairment | 335,399 | 366,614 | 366,520 |
Construction and Land Development [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | 2,481 | 2,843 | 4,050 |
Charge-offs | -2,962 | -431 | -2,983 |
Recoveries | ' | 1 | 50 |
Provision for (recovery of) loan losses | 3,191 | 68 | 1,726 |
Balance at end of year | 2,710 | 2,481 | 2,843 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 882 | 567 | 930 |
Allowance for loan losses, Collectively evaluated for impairment | 1,828 | 1,914 | 1,913 |
Loans: | ' | ' | ' |
Ending Balance | 34,060 | 43,524 | 48,363 |
Loans, Individually evaluated for impairment | 6,862 | 2,516 | 7,640 |
Loans, Collectively evaluated for impairment | 27,198 | 41,008 | 40,723 |
Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | 3,712 | 3,766 | 1,681 |
Charge-offs | -260 | -761 | -4,369 |
Recoveries | 823 | 68 | 6 |
Provision for (recovery of) loan losses | -1,300 | 639 | 6,718 |
Balance at end of year | 2,975 | 3,712 | 3,766 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 190 | 306 | 848 |
Allowance for loan losses, Collectively evaluated for impairment | 2,785 | 3,406 | 2,918 |
Loans: | ' | ' | ' |
Ending Balance | 141,961 | 134,964 | 122,339 |
Loans, Individually evaluated for impairment | 3,431 | 3,776 | 6,860 |
Loans, Collectively evaluated for impairment | 138,530 | 131,188 | 115,479 |
Other Real Estate [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | 6,163 | 5,192 | 9,187 |
Charge-offs | -1,070 | -2,154 | -7,551 |
Recoveries | 1,304 | 64 | ' |
Provision for (recovery of) loan losses | -1,979 | 3,061 | 3,556 |
Balance at end of year | 4,418 | 6,163 | 5,192 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 263 | 930 | 351 |
Allowance for loan losses, Collectively evaluated for impairment | 4,155 | 5,233 | 4,841 |
Loans: | ' | ' | ' |
Ending Balance | 145,968 | 176,573 | 181,141 |
Loans, Individually evaluated for impairment | 11,143 | 10,528 | 10,940 |
Loans, Collectively evaluated for impairment | 134,825 | 163,692 | 170,201 |
Commercial and Industrial [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | 608 | 963 | 858 |
Charge-offs | -37 | -261 | -348 |
Recoveries | 179 | 35 | 3 |
Provision for (recovery of) loan losses | -308 | -129 | 450 |
Balance at end of year | 442 | 608 | 963 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 44 | 35 | 309 |
Allowance for loan losses, Collectively evaluated for impairment | 398 | 573 | 654 |
Loans: | ' | ' | ' |
Ending Balance | 22,803 | 20,718 | 29,446 |
Loans, Individually evaluated for impairment | 258 | 160 | 480 |
Loans, Collectively evaluated for impairment | 22,545 | 20,558 | 28,966 |
Consumer and Other Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Balance at beginning of year | 111 | 173 | 260 |
Charge-offs | -163 | -186 | -268 |
Recoveries | 180 | 208 | 251 |
Provision for (recovery of) loan losses | -29 | -84 | -70 |
Balance at end of year | 99 | 111 | 173 |
Ending Balance: | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | ' | ' | ' |
Allowance for loan losses, Collectively evaluated for impairment | 99 | 111 | 173 |
Loans: | ' | ' | ' |
Ending Balance | 12,301 | 7,815 | 11,151 |
Loans, Individually evaluated for impairment | ' | ' | ' |
Loans, Collectively evaluated for impairment | $12,301 | $7,815 | $11,151 |
Allowance_for_Loan_losses_Impa
Allowance for Loan losses - Impaired Loans and Related Allowance (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | $26,072 | $22,675 | $32,317 |
Recorded Investment with No Allowance | 16,343 | 7,198 | 15,161 |
Recorded Investment with Allowance | 5,351 | 9,782 | 10,758 |
Total Recorded Investment | 21,694 | 16,980 | 25,920 |
Related Allowance | 1,379 | 1,838 | 2,438 |
Average Recorded Investment | 16,009 | 20,990 | 38,174 |
Interest Income Recognized | 805 | 548 | 1,091 |
Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | 9,086 | 2,947 | 8,106 |
Recorded Investment with No Allowance | 4,259 | 622 | 3,531 |
Recorded Investment with Allowance | 2,603 | 1,894 | 4,109 |
Total Recorded Investment | 6,862 | 2,516 | 7,640 |
Related Allowance | 882 | 567 | 930 |
Average Recorded Investment | 5,397 | 5,691 | 7,077 |
Interest Income Recognized | 204 | 99 | 367 |
Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | 4,341 | 4,706 | 8,566 |
Recorded Investment with No Allowance | 2,515 | 1,690 | 3,495 |
Recorded Investment with Allowance | 916 | 2,086 | 3,365 |
Total Recorded Investment | 3,431 | 3,776 | 6,860 |
Related Allowance | 190 | 306 | 848 |
Average Recorded Investment | 2,864 | 4,821 | 6,519 |
Interest Income Recognized | 146 | 163 | 301 |
Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | 12,385 | 14,861 | 15,165 |
Recorded Investment with No Allowance | 9,455 | 4,886 | 8,135 |
Recorded Investment with Allowance | 1,688 | 5,642 | 2,805 |
Total Recorded Investment | 11,143 | 10,528 | 10,940 |
Related Allowance | 263 | 930 | 351 |
Average Recorded Investment | 7,079 | 10,148 | 23,918 |
Interest Income Recognized | 441 | 276 | 396 |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | 260 | 161 | 480 |
Recorded Investment with No Allowance | 114 | ' | ' |
Recorded Investment with Allowance | 144 | 160 | 480 |
Total Recorded Investment | 258 | 160 | 480 |
Related Allowance | 44 | 35 | 309 |
Average Recorded Investment | 669 | 330 | 660 |
Interest Income Recognized | 14 | 10 | 27 |
Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Unpaid Principal Balance | ' | ' | ' |
Recorded Investment with No Allowance | ' | ' | ' |
Recorded Investment with Allowance | ' | ' | ' |
Total Recorded Investment | ' | ' | ' |
Related Allowance | ' | ' | ' |
Average Recorded Investment | ' | ' | ' |
Interest Income Recognized | ' | ' | ' |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contract | Contracts | Contracts | |
Receivables [Abstract] | ' | ' | ' |
Troubled debt restructurings (TDRs) | $1,900,000 | $6,300,000 | ' |
TDRs performing under the restructured terms | 829,000 | 1,600,000 | ' |
Loans modified under TDRs | 0 | 2 | 19 |
Troubled debt restructuring loan subsequent default | 0 | 0 | 596,000 |
Troubled debt restructuring loan subsequent default period | '90 days | ' | ' |
Non-accrual loans excluded from impaired loan disclosure | 14,000 | 13,000 | 103,000 |
Interest accrued on loan | $483,000 | $510,000 | $402,000 |
Allowance_for_Loan_Losses_Info
Allowance for Loan Losses - Information Regarding Loans Modified under TDR (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Contract | Contracts | Contracts | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | 0 | 2 | 19 |
Pre-modification outstanding recorded investment | ' | $2,609 | $16,197 |
Post-modification outstanding recorded investment | ' | 2,609 | 15,879 |
Real Estate Loans [Member] | Construction [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | ' | ' | 1 |
Pre-modification outstanding recorded investment | ' | ' | 701 |
Post-modification outstanding recorded investment | ' | ' | 357 |
Real Estate Loans [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | ' | 1 | 4 |
Pre-modification outstanding recorded investment | ' | 183 | 2,667 |
Post-modification outstanding recorded investment | ' | 183 | 2,667 |
Real Estate Loans [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | ' | 1 | 14 |
Pre-modification outstanding recorded investment | ' | 2,426 | 12,829 |
Post-modification outstanding recorded investment | ' | 2,426 | 12,855 |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | ' | ' | ' |
Pre-modification outstanding recorded investment | ' | ' | ' |
Post-modification outstanding recorded investment | ' | ' | ' |
Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Number of Contracts | ' | ' | ' |
Pre-modification outstanding recorded investment | ' | ' | ' |
Post-modification outstanding recorded investment | ' | ' | ' |
Allowance_for_Loan_Losses_Trou
Allowance for Loan Losses - Troubled Debt Restructurings that Subsequently Defaulted (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Contracts | |||
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | 4 |
Troubled debt restructuring loan subsequent default, Recorded investment | $0 | $0 | $596,000 |
Real Estate Loans [Member] | Construction and Land Development [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | 1 |
Troubled debt restructuring loan subsequent default, Recorded investment | ' | ' | 235,000 |
Real Estate Loans [Member] | Secured by 1-4 Family Residential [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Recorded investment | ' | ' | ' |
Real Estate Loans [Member] | Other Real Estate Loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | 3 |
Troubled debt restructuring loan subsequent default, Recorded investment | ' | ' | 361,000 |
Commercial and Industrial [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Recorded investment | ' | ' | ' |
Consumer and Other Loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Number of contracts | ' | ' | ' |
Troubled debt restructuring loan subsequent default, Recorded investment | ' | ' | ' |
Other_Real_Estate_Owned_Additi
Other Real Estate Owned - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Real Estate [Abstract] | ' | ' | ' |
Total other real estate owned | $3,030 | $5,590 | ' |
Net expenses applicable to other real estate owned | $150 | $443 | $572 |
Other_Real_Estate_Owned_Summar
Other Real Estate Owned - Summary of Changes in the Balance for OREO (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate [Abstract] | ' | ' |
Balance at the beginning of year, gross | $7,764 | $9,166 |
Transfers in | 2,036 | 5,578 |
Charge-offs | -1,564 | -1,808 |
Sales proceeds | -3,618 | -5,438 |
Gain on disposition | 80 | 268 |
Depreciation | -3 | -2 |
Balance at the end of year, gross | 4,695 | 7,764 |
Less: valuation allowance | -1,665 | -2,174 |
Balance at the end of year, net | $3,030 | $5,590 |
Other_Real_Estate_Owned_Summar1
Other Real Estate Owned - Summary of Changes in the Allowance for OREO Losses (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Real Estate [Abstract] | ' | ' | ' |
Balance at beginning of year | $2,174 | $2,792 | $3,341 |
Provision for losses | 1,055 | 1,190 | 1,558 |
Charge-offs, net | -1,564 | -1,808 | -2,107 |
Balance at end of year | $1,665 | $2,174 | $2,792 |
Premises_and_Equipment_Summary
Premises and Equipment - Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $28,775 | $31,138 |
Less accumulated depreciation | 12,133 | 12,549 |
Premises and equipment, net | 16,642 | 18,589 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 4,393 | 4,397 |
Buildings and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 15,030 | 15,954 |
Furniture and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 9,296 | 9,997 |
Construction in Process [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $56 | $790 |
Premises_and_Equipment_Additio
Premises and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Depreciation expense included in operating expenses | $1 | $1.10 | $1.20 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
Time deposits, in denominations of $100 thousand or more | $54.60 | $76.60 |
Brokered deposits | $5.10 | $8.80 |
Deposits_Scheduled_Maturities_
Deposits - Scheduled Maturities of Time Deposits (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits [Abstract] | ' | ' |
2014 | $68,817 | ' |
2015 | 22,404 | ' |
2016 | 17,090 | ' |
2017 | 3,345 | ' |
2018 | 12,100 | ' |
Time deposits | $123,756 | $160,198 |
Other_Borrowings_Additional_In
Other Borrowings - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' |
Unused lines of credit | $108,400,000 | $105,400,000 |
Blanket floating lien agreement | 19.00% | ' |
Borrowings of Bank | 6,000,000 | 6,000,000 |
Borrowings of Bank, maturity date | 28-Dec-18 | ' |
Weighted average rate | 1.91% | 1.91% |
Collateral pledged on borrowings including real estate loans | 78,600,000 | 100,000,000 |
FHLB stock book value | 908,000 | 1,078,000 |
Note payable monthly payments | 2,000 | ' |
Minimum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate | 1.78% | 1.78% |
Maximum [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Interest rate | 2.04% | 2.04% |
Letter of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowings of Bank | 25,000,000 | 30,000,000 |
Notes Payable to Banks [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Borrowings of Bank, maturity date | 3-Jan-16 | ' |
Interest rate | 4.00% | ' |
Borrowings of Bank | 52,000 | 76,000 |
FHLB [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Unused lines of credit | $68,300,000 | ' |
Other_Borrowings_Contractual_M
Other Borrowings - Contractual Maturities of Other Borrowings (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Federal Home Loan Bank Advances General Debt Obligations Disclosures [Abstract] | ' |
2014 | $25 |
2015 | 27 |
2016 | ' |
2017 | 3,000 |
2018 | 3,000 |
Total | $6,052 |
Trust_Preferred_Capital_Notes_
Trust Preferred Capital Notes - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
First National (VA) Statutory Trust III [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Formation of wholly-owned subsidiary | 24-Jul-06 | ' |
Preferred securities issued through pooled underwriting date | 31-Jul-06 | ' |
Issuance of trust preferred securities | $4 | ' |
LIBOR-indexed floating rate of interest | 1.85% | 1.96% |
Junior subordinated debt securities | 4.1 | ' |
Securities mandatory redemption date | 1-Oct-36 | ' |
Maximum capital required for capital adequacy | 25.00% | ' |
First National (VA) Statutory Trust II [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Formation of wholly-owned subsidiary | 8-Jun-04 | ' |
Preferred securities issued through pooled underwriting date | 17-Jun-04 | ' |
Issuance of trust preferred securities | 5 | ' |
LIBOR-indexed floating rate of interest | 2.84% | 2.91% |
Junior subordinated debt securities | $5.20 | ' |
Securities mandatory redemption date | 17-Jun-34 | ' |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ' | ' |
Allowance for loan losses | $3,619 | $4,446 |
Allowance for other real estate owned | 566 | 760 |
Interest on non-accrual loans | ' | 266 |
Unfunded pension liability | 90 | 894 |
Split dollar liability | 207 | 391 |
Gain on other real estate owned | 769 | 990 |
Securities available for sale | 584 | ' |
Accrued pension | 289 | 4 |
Loan origination costs, net | 6 | ' |
Other | 10 | 118 |
Deferred Tax Assets, Gross, Total | 6,140 | 7,869 |
Deferred Tax Liabilities | ' | ' |
Depreciation | 685 | 674 |
Securities available for sale | ' | 601 |
Discount accretion | 5 | 3 |
Loan origination costs, net | ' | 30 |
Deferred Tax Liabilities, Total | 690 | 1,308 |
Valuation allowance | ' | 6,561 |
Net deferred tax assets | $5,450 | ' |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Deferred tax asset will not be realized "More likely than not" defined percentage | 50.00% |
Pre-tax loss reported period | '2 years |
Income_Taxes_Provision_Benefit
Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Current tax expense (benefit) | ($44) | $965 | ($2,607) |
Deferred tax expense (benefit) | -4,776 | ' | 6,442 |
Income tax expense (benefit) | ($4,820) | $965 | $3,835 |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Benefit) Differs from the Amount of Income Tax Determined by Applying the U.S. Federal Income Tax Rate to Pretax Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Computed tax expense (benefit) at statutory federal rate | $1,718 | $1,280 | ($2,423) |
Increase (decrease) in income taxes from deferred tax valuation allowance | -6,275 | -167 | 6,442 |
Decrease in income taxes resulting from: | ' | ' | ' |
Tax-exempt interest and dividend income | -153 | -125 | -186 |
Other | -110 | -23 | 2 |
Income tax expense (benefit) | ($4,820) | $965 | $3,835 |
Funds_Restrictions_and_Reserve1
Funds Restrictions and Reserve Balance - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Aggregate amount of unrestricted funds | $253,000 | ' |
First Bank [Member] | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Aggregate amounts of daily average required balances of reserve against its deposits | $1,400,000 | $3,000,000 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2000 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Percentage of first employee compensation for which company makes matching contribution | ' | 1.00% | ' | ' |
Company contribution on employee specific contribution | ' | 50.00% | ' | ' |
Number of hours in service required for the contribution to be allocated | ' | '1000 hours | ' | ' |
Minimum eligibility for employees under 401(k) Plan, age | ' | '19 years | ' | ' |
Number of plan service years after which employer matching contribution vest | ' | '2 years | ' | ' |
Expense attributable to the Plan amounted | ' | $249,000 | $219,000 | $200,000 |
Percentage of vested participants | 100.00% | ' | ' | ' |
Participants years of credited service | '2 years | ' | ' | ' |
Compensation expense for ESOP | ' | 0 | 0 | 0 |
Shares of the Company held by the ESOP | ' | 169,882 | 134,609 | 65,633 |
Recorded gain from termination of post retirement benefit liability | ' | 543,000 | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Percentage of employee for which company makes specified contribution | ' | 2.00% | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Percentage of employee for which company makes specified contribution | ' | 6.00% | ' | ' |
Defined Benefit Postretirement Life Insurance [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Related effect on net income recognized expense (benefit) | ' | ' | 21,000 | 104,000 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Minimum eligibility for full-time employees, age | ' | '21 years | ' | ' |
Period of service credit by employee | ' | '1 year | ' | ' |
Effective discount rate | ' | 0.25% | ' | ' |
Amount contributed to pension plan | ' | 500,000 | 306,000 | 240,000 |
Amount contributed to pension plan, Expected in future | ' | 0 | ' | ' |
Amount of accumulated benefit obligation for the defined benefit pension plan | ' | $3,800,000 | $5,100,000 | $4,200,000 |
Pension Plans, Defined Benefit [Member] | Fixed Income Funds [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Targeted asset allocation on fixed income | ' | 40.00% | ' | ' |
Pension Plans, Defined Benefit [Member] | Equity Funds [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Targeted asset allocation on fixed income | ' | 60.00% | ' | ' |
Benefit_Plans_Schedule_of_Chan
Benefit Plans - Schedule of Changes in Plan Benefit Obligation and Fair Value of Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in Plan Assets | ' | ' | ' |
Fair value of assets, end of year | $4,329 | $4,046 | $3,454 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation, beginning of year | 7,244 | 5,995 | 5,588 |
Service cost | 470 | 427 | 359 |
Interest cost | 279 | 269 | 307 |
Actuarial (gain) loss | -1,327 | 725 | 871 |
Benefits paid | -961 | -172 | -1,097 |
Gain due to settlement | -204 | ' | -33 |
Benefit obligation, end of year | 5,501 | 7,244 | 5,995 |
Changes in Plan Assets | ' | ' | ' |
Fair value of plan assets, beginning of year | 4,046 | 3,454 | 4,284 |
Actual return on plan assets | 744 | 458 | 27 |
Employer contributions | 500 | 306 | 240 |
Benefits paid | -961 | -172 | -1,097 |
Fair value of assets, end of year | 4,329 | 4,046 | 3,454 |
Funded Status, end of year | -1,172 | -3,198 | -2,541 |
Amount Recognized in Other Liabilities | ($1,172) | ($3,198) | ($2,541) |
Benefit_Plans_Amounts_Recogniz
Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss, Net of Tax (Detail) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax | ' | ' | ' |
Net loss | $265 | $2,629 | $2,173 |
Prior service cost | ' | ' | 2 |
Deferred income tax benefit | -90 | ' | ' |
Amount recognized | $175 | $2,629 | $2,175 |
Benefit_Plans_Weighted_Average
Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Detail) (Pension Plans, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Weighted Average Assumptions Used to Determine Benefit Obligation | ' | ' | ' |
Discount rate used for disclosure | 5.00% | 4.00% | 4.50% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 3.00% | 3.00% | 4.00% |
Benefit_Plans_Components_of_Ne
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Components of Net Periodic Benefit Cost | ' | ' | ' |
Service cost | $470 | $427 | $359 |
Interest cost | 279 | 269 | 307 |
Expected return on plan assets | -303 | -275 | -342 |
Amortization of prior service cost | ' | 2 | 4 |
Amortization of net obligation at transition | ' | ' | ' |
Recognized net loss due to settlement | 284 | ' | 212 |
Recognized net actuarial loss | 109 | 86 | 38 |
Net periodic benefit cost | $839 | $509 | $578 |
Benefit_Plans_Other_Changes_in
Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | ' | ' | ' |
Total recognized in accumulated other comprehensive income (loss) | $2,454 | ($454) | ($1,332) |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | ' | ' | ' |
Net (gain) loss | -2,364 | 456 | 902 |
Amortization of prior service cost | ' | -2 | -4 |
Amortization of net obligation at transition | ' | ' | ' |
Total recognized in accumulated other comprehensive income (loss) | -2,364 | 454 | 898 |
Total Recognized in Net Periodic Benefit Cost and Accumulated Other Comprehensive Income (Loss) | ($1,525) | $963 | $1,476 |
Benefit_Plans_Weighted_Average1
Benefit Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) (Pension Plans, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Plans, Defined Benefit [Member] | ' | ' | ' |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ' | ' | ' |
Discount rate | 4.00% | 4.50% | 5.50% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 3.00% | 3.00% | 4.00% |
Benefit_Plans_Schedule_of_Pens
Benefit Plans - Schedule of Pension Plan's Weighted-Average Asset Allocations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total | 100.00% | 100.00% |
Fixed Income Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total | 39.00% | 25.00% |
Equity Funds [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Total | 61.00% | 75.00% |
Benefit_Plans_Schedule_of_Fair
Benefit Plans - Schedule of Fair Value Hierarchy, the Company's Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | $4,329 | $4,046 | $3,454 |
Fixed Income Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | 1,697 | 1,023 | 1,409 |
Equity Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | 2,632 | 3,023 | 2,045 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | 4,329 | 4,046 | 3,454 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | 1,697 | 1,023 | 1,409 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | 2,632 | 3,023 | 2,045 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Equity Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Equity Funds [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Total | ' | ' | ' |
Benefit_Plans_Estimated_Future
Benefit Plans - Estimated Future Benefit Payments, which Reflect Expected Future Service (Detail) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $262 |
2015 | 181 |
2016 | 275 |
2017 | 271 |
2018 | 23 |
Years 2019-2023 | $1,465 |
Commitments_and_Unfunded_Credi2
Commitments and Unfunded Credits - Financial Instruments Representing Credit Risk (Detail) (First Bank [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to Extend Credit and Unfunded Commitments Under Lines of Credit [Member] | ' | ' |
Other Commitments [Line Items] | ' | ' |
Contract amounts represent credit risk | $59,115 | $52,849 |
Stand-By Letters of Credit [Member] | ' | ' |
Other Commitments [Line Items] | ' | ' |
Contract amounts represent credit risk | $7,610 | $8,306 |
Commitments_and_Unfunded_Credi3
Commitments and Unfunded Credits - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
Commitments And Contingencies Disclosure [Abstract] | ' |
Locked-rate commitments to originate mortgage loans | $1,600,000 |
Loans held for sale | 0 |
Amount on deposit in banks exceeded the insurance limits of the Federal Deposit Insurance Corporation | $10,000 |
Transactions_with_Related_Part1
Transactions with Related Parties - Additional Information (Detail) (First Bank [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
First Bank [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total Loans | $2.10 | $8.90 |
Total principal additions | 1.2 | ' |
Total principal payments | 2.1 | ' |
Adjustment to related party loans | 5.9 | ' |
Deposits from related parties held by Bank | $5.10 | $10.50 |
Lease_Commitments_Additional_I
Lease Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Total rental expense for operating leases | $224 | $244 | $240 |
Lease_Commitments_Minimum_Rent
Lease Commitments - Minimum Rental commitments under Noncancelable Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $52 |
2015 | 46 |
2016 | 15 |
2017 | 5 |
Total minimum payments | $118 |
Dividend_Reinvestment_Plan_Add
Dividend Reinvestment Plan - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Equity [Abstract] | ' | ' | ' |
Period preceding the dividend payment date | '10 days | ' | ' |
Issuance of common stock dividend reinvestment plan, shares | 0 | 0 | 6,748 |
Fair_Value_Measurements_Balanc
Fair Value Measurements - Balances of Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | $103,301 | $89,456 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 103,301 | 89,456 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 84,897 | 73,218 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 18,399 | 16,235 |
Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 5 | 3 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 5 | 3 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 5 | 3 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 103,296 | 89,453 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 84,897 | 73,218 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | 18,399 | 16,235 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Corporate Equity Securities [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Available for sale Securities, Fair Value | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | ' | ' |
Non recurring fair value adjustments on loans held for sale | $0 | $0 |
Period under consideration for valuation of real estate collateral | '1 year | ' |
Period under consideration for valuation of house or building in the process of construction | '1 year | ' |
Period under consideration for valuation of business equipment | '1 year | ' |
Period of maturity as classifies as short term borrowing | '90 days | ' |
Fair value of loan commitments and standby letters of credit | $0 | $0 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (Fair Value, Measurements, Nonrecurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Impaired loans, net | $3,972 | $7,944 |
Other real estate owned, net | 3,030 | 5,590 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Assets | ' | ' |
Impaired loans, net | ' | ' |
Other real estate owned, net | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Assets | ' | ' |
Impaired loans, net | ' | ' |
Other real estate owned, net | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Assets | ' | ' |
Impaired loans, net | 3,972 | 7,944 |
Other real estate owned, net | $3,030 | $5,590 |
Fair_Value_Measurements_Quanti
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) (Fair Value, Measurements, Nonrecurring [Member], Significant Unobservable Inputs (Level 3) [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Weighted Average | 8.00% |
Impaired Loans Assets [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair value assets | 3,972 |
Fair Value Measurements, Valuation Techniques | 'Property appraisals |
Selling cost | 10.00% |
Other Real Estate Owned [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair value assets | 3,030 |
Fair Value Measurements, Valuation Techniques | 'Property appraisals |
Selling cost | 7.00% |
Maximum [Member] | Impaired Loans Assets [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair Value Inputs, Discount for lack of marketability | 41.00% |
Minimum [Member] | Impaired Loans Assets [Member] | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' |
Fair Value Inputs, Discount for lack of marketability | 0.00% |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Values and Estimated Fair Values of Company's Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Assets | ' | ' |
Securities | $103,301 | $89,456 |
Bank owned life insurance | 10,978 | 10,609 |
Carrying Amount [Member] | ' | ' |
Financial Assets | ' | ' |
Cash and short-term investments | 31,508 | 31,028 |
Securities | 103,301 | 89,456 |
Restricted stock | 1,804 | 1,974 |
Loans held for sale | ' | 503 |
Loans, net | 346,449 | 370,519 |
Bank owned life insurance | 10,978 | 10,609 |
Accrued interest receivable | 1,302 | 1,459 |
Financial Liabilities | ' | ' |
Deposits | 450,711 | 466,917 |
Other borrowings | 6,052 | 6,076 |
Trust preferred capital notes | 9,279 | 9,279 |
Accrued interest payable | 177 | 286 |
Fair Value [Member] | ' | ' |
Financial Assets | ' | ' |
Cash and short-term investments | 31,508 | 31,028 |
Securities | 103,301 | 89,456 |
Restricted stock | 1,804 | 1,974 |
Loans held for sale | ' | 503 |
Loans, net | 353,874 | 375,941 |
Bank owned life insurance | 10,978 | 10,609 |
Accrued interest receivable | 1,302 | 1,459 |
Financial Liabilities | ' | ' |
Deposits | 451,377 | 468,870 |
Other borrowings | 6,095 | 6,220 |
Trust preferred capital notes | 9,399 | 8,735 |
Accrued interest payable | 177 | 286 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ' | ' |
Financial Assets | ' | ' |
Cash and short-term investments | 31,508 | 31,028 |
Securities | 5 | 3 |
Restricted stock | ' | ' |
Loans held for sale | ' | ' |
Loans, net | ' | ' |
Bank owned life insurance | ' | ' |
Accrued interest receivable | ' | ' |
Financial Liabilities | ' | ' |
Deposits | ' | ' |
Other borrowings | ' | ' |
Trust preferred capital notes | ' | ' |
Accrued interest payable | ' | ' |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ' | ' |
Financial Assets | ' | ' |
Cash and short-term investments | ' | ' |
Securities | 103,296 | 89,453 |
Restricted stock | 1,804 | 1,974 |
Loans held for sale | ' | 503 |
Loans, net | ' | ' |
Bank owned life insurance | 10,978 | 10,609 |
Accrued interest receivable | 1,302 | 1,459 |
Financial Liabilities | ' | ' |
Deposits | 326,955 | 306,719 |
Other borrowings | ' | ' |
Trust preferred capital notes | ' | ' |
Accrued interest payable | 177 | 286 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ' | ' |
Financial Assets | ' | ' |
Cash and short-term investments | ' | ' |
Securities | ' | ' |
Restricted stock | ' | ' |
Loans held for sale | ' | ' |
Loans, net | 353,874 | 375,941 |
Bank owned life insurance | ' | ' |
Accrued interest receivable | ' | ' |
Financial Liabilities | ' | ' |
Deposits | 124,422 | 162,151 |
Other borrowings | 6,095 | 6,220 |
Trust preferred capital notes | 9,399 | 8,735 |
Accrued interest payable | ' | ' |
Regulatory_Matters_Comparison_
Regulatory Matters - Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Actual Amount Total Capital (to Risk Weighted Assets) | $66,437 | $59,876 |
Actual Ratio Total Capital (to Risk Weighted Assets) | 18.21% | 15.34% |
Minimum Capital Requirement Amount Total Capital (to Risk Weighted Assets) | 29,193 | 31,220 |
Minimum Capital Requirement Ratio Total Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Total Capital (to Risk Weighted Assets) | ' | ' |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Total Capital (to Risk Weighted Assets) | ' | ' |
Actual Amount Tier 1 Capital (to Risk Weighted Assets) | 61,800 | 54,897 |
Actual Ratio Tier 1 Capital (to Risk Weighted Assets) | 16.94% | 14.07% |
Minimum Capital Requirement Amount Tier 1 Capital (to Risk Weighted Assets) | 14,597 | 15,610 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Risk Weighted Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Risk Weighted Assets) | ' | ' |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Risk Weighted Assets) | ' | ' |
Actual Amount Tier 1 Capital (to Average Assets) | 61,800 | 54,897 |
Actual Ratio Tier 1 Capital (to Average Assets) | 11.75% | 10.47% |
Minimum Capital Requirement Amount Tier 1 Capital (to Average Assets) | 21,047 | 20,971 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Average Assets) | ' | ' |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Average Assets) | ' | ' |
First Bank [Member] | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Actual Amount Total Capital (to Risk Weighted Assets) | 60,578 | 52,980 |
Actual Ratio Total Capital (to Risk Weighted Assets) | 16.62% | 13.59% |
Minimum Capital Requirement Amount Total Capital (to Risk Weighted Assets) | 29,160 | 31,197 |
Minimum Capital Requirement Ratio Total Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Total Capital (to Risk Weighted Assets) | 36,450 | 38,996 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Total Capital (to Risk Weighted Assets) | 10.00% | 10.00% |
Actual Amount Tier 1 Capital (to Risk Weighted Assets) | 55,947 | 48,004 |
Actual Ratio Tier 1 Capital (to Risk Weighted Assets) | 15.35% | 12.31% |
Minimum Capital Requirement Amount Tier 1 Capital (to Risk Weighted Assets) | 14,580 | 15,599 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Risk Weighted Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Risk Weighted Assets) | 21,870 | 23,398 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Risk Weighted Assets) | 6.00% | 6.00% |
Actual Amount Tier 1 Capital (to Average Assets) | 55,947 | 48,004 |
Actual Ratio Tier 1 Capital (to Average Assets) | 10.68% | 9.15% |
Minimum Capital Requirement Amount Tier 1 Capital (to Average Assets) | 20,948 | 20,974 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Average Assets) | $26,184 | $26,218 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Schedule of Changes in Component of Accumulated other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Net Unrealized Gains (Losses) on Securities, Beginning Balance | $1,770 | $3,166 | $977 |
Other comprehensive income (loss) before reclassifications, Net Unrealized gains (losses) on Investment Securities | -3,482 | -111 | 1,774 |
Amounts reclassified from accumulated other comprehensive income (loss), Net Unrealized gains (losses) on Investment Securities | 0 | -1,285 | -59 |
Deferred tax adjustment, Net Unrealized gains (losses) on Investment Securities | 583 | ' | 474 |
Change during period, Net Unrealized gains (losses) on Investment Securities | -2,899 | -1,396 | 2,189 |
Net Unrealized Gains (Losses) on Securities, Ending Balance | -1,129 | 1,770 | 3,166 |
Adjustments Related to Pension Benefits, Beginning Balance | -2,629 | -2,175 | -843 |
Other comprehensive income (loss) before reclassifications, Adjustments Related to Pension Benefits | 2,364 | -454 | -898 |
Amounts reclassified from accumulated other comprehensive income (loss), Adjustments Related to Pension Benefits | ' | ' | ' |
Deferred tax adjustment, Adjustments Related to Pension Benefits | 90 | ' | -434 |
Change during period, Adjustments Related to Pension Benefits | 2,454 | -454 | -1,332 |
Adjustments Related to Pension Benefits, Ending Balance | -175 | -2,629 | -2,175 |
Accumulated Other Comprehensive Income (Loss), Beginning Balance | -859 | 991 | 134 |
Other comprehensive income (loss) before reclassifications, Accumulated Other Comprehensive Income (Loss) | -1,118 | -565 | 876 |
Amounts reclassified from accumulated other comprehensive income (loss), Accumulated Other Comprehensive Income (Loss) | ' | -1,285 | -59 |
Deferred tax adjustment, Accumulated Other Comprehensive Income (Loss) | 673 | ' | 40 |
Change during period, Accumulated Other Comprehensive Income (Loss) | -445 | -1,850 | 857 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | ($1,304) | ($859) | $991 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Amounts reclassified from accumulated other comprehensive income (loss), Net Unrealized gains (losses) on Investment Securities | $0 | $1,285 | $59 |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | ' | ' |
Number of shares | 14,595 | 14,595 |
Liquidation preference | $1,000 | $1,000 |
Exercise price | 4 | ' |
Discount on preferred stock amortized period | '5 years | ' |
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Number of shares | 13,900 | ' |
Par value | $1.25 | ' |
Liquidation preference | $1,000 | ' |
Fixed Rate Cumulative Perpetual Preferred Stock, Series B [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Liquidation preference | $1,000 | ' |
Number of shares | 695 | ' |
Exercise price | 1.25 | ' |
Cumulative dividends of warrant preferred stock | 9.00% | ' |
Purchase Agreement [Member] | ' | ' |
Class of Stock [Line Items] | ' | ' |
Cumulative dividends percentage until March 13, 2014 | 5.00% | ' |
Cumulative dividend thereafter | 9.00% | ' |
Rights_Offering_of_Common_Stoc1
Rights Offering of Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Equity [Abstract] | ' |
Sale of common shares under rights offering | 1,945,815 |
Rights exercised by existing shareholders | 1,520,815 |
Subscription price of share | 4 |
Rights purchased by standby investors | 425,000 |
Net proceeds from rights issued | $7.60 |
Parent_Company_Only_Financial_2
Parent Company Only Financial Statements - Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Other assets | $7,876 | $2,970 | ' | ' |
Total assets | 522,890 | 532,697 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Other liabilities | 3,288 | 5,536 | ' | ' |
Total liabilities | 469,330 | 487,808 | ' | ' |
Preferred stock | 14,564 | 14,409 | ' | ' |
Common stock | 6,127 | 6,127 | ' | ' |
Surplus | 6,813 | 6,813 | ' | ' |
Retained earnings | 27,360 | 18,399 | ' | ' |
Accumulated other comprehensive loss, net | -1,304 | -859 | 991 | 134 |
Total shareholders' equity | 53,560 | 44,889 | 37,096 | 48,498 |
Total liabilities and shareholders' equity | 522,890 | 532,697 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash | 5,395 | 6,406 | ' | ' |
Investment in subsidiaries, at cost, plus undistributed net income | 56,982 | 47,272 | ' | ' |
Other assets | 470 | 496 | ' | ' |
Total assets | 62,847 | 54,174 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Trust preferred capital notes | 9,279 | 9,279 | ' | ' |
Other liabilities | 8 | 6 | ' | ' |
Total liabilities | 9,287 | 9,285 | ' | ' |
Preferred stock | 14,564 | 14,409 | ' | ' |
Common stock | 6,127 | 6,127 | ' | ' |
Surplus | 6,813 | 6,813 | ' | ' |
Retained earnings | 27,360 | 18,399 | ' | ' |
Accumulated other comprehensive loss, net | -1,304 | -859 | ' | ' |
Total shareholders' equity | 53,560 | 44,889 | ' | ' |
Total liabilities and shareholders' equity | $62,847 | $54,174 | ' | ' |
Parent_Company_Only_Financial_3
Parent Company Only Financial Statements - Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income | ' | ' | ' |
Gain on sale of securities available for sale | $0 | $1,300 | $65 |
Other income | 121 | 211 | 61 |
Expense | ' | ' | ' |
Interest expense | 2,709 | 4,167 | 5,450 |
Stationery and supplies | 288 | 308 | 323 |
Legal and professional fees | 975 | 975 | 969 |
Income (loss) before allocated tax benefits and undistributed income (loss) of subsidiary | 5,054 | 3,765 | -7,126 |
Allocated income tax benefit | 4,820 | -965 | -3,835 |
Net income (loss) | 9,874 | 2,800 | -10,961 |
Effective dividend and accretion on preferred stock | 913 | 904 | 894 |
Net income (loss) available to common shareholders | 8,961 | 1,896 | -11,855 |
Parent Company [Member] | ' | ' | ' |
Income | ' | ' | ' |
Dividends from subsidiary | ' | 500 | 1,600 |
Gain on sale of securities available for sale | ' | 139 | ' |
Other income | 51 | 41 | ' |
Total Income | 51 | 680 | 1,600 |
Expense | ' | ' | ' |
Interest expense | 222 | 237 | 386 |
Stationery and supplies | 17 | 1 | 14 |
Legal and professional fees | 40 | ' | ' |
Data processing | 53 | ' | 31 |
Management fee-subsidiary | 95 | ' | ' |
Other expense | 51 | 6 | 47 |
Total expense | 478 | 244 | 478 |
Income (loss) before allocated tax benefits and undistributed income (loss) of subsidiary | -427 | 436 | 1,122 |
Allocated income tax benefit | 145 | 22 | 162 |
Income (loss) before equity in undistributed income (loss) of subsidiary | -282 | 458 | 1,284 |
Equity in undistributed income (loss) of subsidiary | 10,156 | 2,342 | -12,245 |
Net income (loss) | 9,874 | 2,800 | -10,961 |
Effective dividend and accretion on preferred stock | 913 | 904 | 894 |
Net income (loss) available to common shareholders | $8,961 | $1,896 | ($11,855) |
Parent_Company_Only_Financial_4
Parent Company Only Financial Statements - Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | $9,874 | $2,800 | ($10,961) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Gain on sale of securities available for sale | ' | -1,285 | -59 |
(Increase) decrease in other assets | 153 | 3,620 | -1,186 |
Increase (decrease) in other liabilities | 660 | 705 | -387 |
Net cash provided by (used in) operating activities | 8,681 | 12,218 | 10,436 |
Cash Flows from Investing Activities | ' | ' | ' |
Proceeds from sale of securities available for sale | 1,850 | 26,158 | 3,532 |
Cash Flows from Financing Activities | ' | ' | ' |
Cash dividends paid on common stock | ' | ' | -540 |
Cash dividends paid on preferred stock | -758 | -758 | -758 |
Net proceeds from issuance of common stock | ' | 7,601 | ' |
Net cash provided by (used in) financing activities | -16,988 | -8,436 | 3,352 |
Increase (decrease) in cash and cash equivalents | 480 | 1,504 | 13,527 |
Cash and Cash Equivalents | ' | ' | ' |
Cash and cash equivalents, beginning of year | 31,028 | 29,524 | 15,997 |
Cash and cash equivalents, end of year | 31,508 | 31,028 | 29,524 |
Parent Company [Member] | ' | ' | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Net income (loss) | 9,874 | 2,800 | -10,961 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' | ' |
Equity in undistributed (income) loss of subsidiary | -10,156 | -2,342 | 12,245 |
Gain on sale of securities available for sale | ' | -139 | ' |
(Increase) decrease in other assets | 29 | -42 | 45 |
Increase (decrease) in other liabilities | ' | -2 | 2 |
Net cash provided by (used in) operating activities | -253 | 275 | 1,331 |
Cash Flows from Investing Activities | ' | ' | ' |
Proceeds from sale of securities available for sale | ' | 164 | ' |
Cash Flows from Financing Activities | ' | ' | ' |
Distribution of capital to subsidiary | ' | -1,000 | ' |
Cash dividends paid on common stock | ' | ' | -540 |
Cash dividends paid on preferred stock | -758 | -758 | -758 |
Net proceeds from issuance of common stock | ' | 7,601 | ' |
Net cash provided by (used in) financing activities | -758 | 5,843 | -1,298 |
Increase (decrease) in cash and cash equivalents | -1,011 | 6,282 | 33 |
Cash and Cash Equivalents | ' | ' | ' |
Cash and cash equivalents, beginning of year | 6,406 | 124 | 91 |
Cash and cash equivalents, end of year | $5,395 | $6,406 | $124 |