Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 15-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FXNC | |
Entity Registrant Name | FIRST NATIONAL CORP /VA/ | |
Entity Central Index Key | 719402 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 4,909,714 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $7,529 | $6,043 |
Interest-bearing deposits in banks | 1,645 | 18,802 |
Securities available for sale, at fair value | 90,855 | 83,292 |
Restricted securities, at cost | 1,999 | 1,366 |
Loans held for sale | 328 | |
Loans, net of allowance for loan losses, 2015, $6,771; 2014, $6,718 | 391,746 | 371,692 |
Other real estate owned, net of valuation allowance, 2015, $125; 2014, $375 | 1,949 | 1,888 |
Premises and equipment, net | 16,298 | 16,126 |
Accrued interest receivable | 1,256 | 1,261 |
Bank owned life insurance | 11,431 | 11,357 |
Other assets | 5,701 | 6,010 |
Total assets | 530,409 | 518,165 |
Deposits: | ||
Noninterest-bearing demand deposits | 109,927 | 104,986 |
Savings and interest-bearing demand deposits | 231,885 | 237,618 |
Time deposits | 96,974 | 101,734 |
Total deposits | 438,786 | 444,338 |
Federal funds purchased | 1,955 | 52 |
Other borrowings | 15,020 | 26 |
Trust preferred capital notes | 9,279 | 9,279 |
Accrued interest payable and other liabilities | 5,057 | 4,906 |
Total liabilities | 470,097 | 458,601 |
Shareholders' Equity | ||
Preferred stock, $1,000 per share liquidation preference; authorized 1,000,000 shares; 14,595 shares issued and outstanding, net of discount | 14,595 | 14,595 |
Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2015, 4,909,714 shares; 2014, 4,904,577 shares | 6,137 | 6,131 |
Surplus | 6,881 | 6,835 |
Retained earnings | 33,649 | 33,557 |
Accumulated other comprehensive loss, net | -950 | -1,554 |
Total shareholders' equity | 60,312 | 59,564 |
Total liabilities and shareholders' equity | $530,409 | $518,165 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for loan losses | $6,771 | $6,718 |
Other real estate owned, valuation allowance | $125 | $375 |
Preferred stock, liquidation preference | $1,000 | $1,000 |
Preferred stock, shares 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 | 4,909,714 | 4,904,577 |
Common stock, shares outstanding | 4,909,714 | 4,904,577 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest and Dividend Income | ||
Interest and fees on loans | $4,540 | $4,215 |
Interest on deposits in banks | 5 | 16 |
Interest and dividends on securities available for sale: | ||
Taxable interest | 358 | 562 |
Tax-exempt interest | 64 | 95 |
Dividends | 21 | 21 |
Total interest and dividend income | 4,988 | 4,909 |
Interest Expense | ||
Interest on deposits | 300 | 400 |
Interest on federal funds purchased | 1 | |
Interest on trust preferred capital notes | 54 | 54 |
Interest on other borrowings | 1 | 29 |
Total interest expense | 356 | 483 |
Net interest income | 4,632 | 4,426 |
Recovery of loan losses | -200 | |
Net interest income after recovery of loan losses | 4,632 | 4,626 |
Noninterest Income | ||
Service charges on deposit accounts | 547 | 630 |
ATM and check card fees | 349 | 335 |
Wealth management fees | 503 | 484 |
Fees for other customer services | 107 | 87 |
Income from bank owned life insurance | 74 | 74 |
Net (losses) on sale of securities available for sale | -52 | |
Net gains on sale of loans | 55 | |
Other operating income | 8 | 6 |
Total noninterest income | 1,591 | 1,616 |
Noninterest Expense | ||
Salaries and employee benefits | 3,125 | 2,509 |
Occupancy | 317 | 315 |
Equipment | 281 | 304 |
Marketing | 97 | 109 |
Stationery and supplies | 345 | 80 |
Legal and professional fees | 212 | 202 |
ATM and check card fees | 155 | 163 |
FDIC assessment | 67 | 172 |
Bank franchise tax | 122 | 94 |
Telecommunications expense | 85 | 71 |
Data processing expense | 187 | 115 |
Postage expense | 117 | 39 |
Other real estate owned (income) expense, net | -36 | 31 |
Net loss on disposal of premises and equipment | 2 | |
Other operating expense | 413 | 407 |
Total noninterest expense | 5,487 | 4,613 |
Income before income taxes | 736 | 1,629 |
Income tax expense | 192 | 483 |
Net income | 544 | 1,146 |
Effective dividend and accretion on preferred stock | 329 | 220 |
Net income available to common shareholders | $215 | $926 |
Earnings per common share | ||
Basic | $0.04 | $0.19 |
Diluted | $0.04 | $0.19 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $544 | $1,146 |
Other comprehensive income, net of tax, | ||
Unrealized holding gains on available for sale securities, net of tax $294 and $232, respectively | 570 | 450 |
Reclassification adjustment for losses included in net income, net of tax $18 and $0, respectively | 34 | |
Total other comprehensive income | 604 | 450 |
Total comprehensive income | $1,148 | $1,596 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding gains on available for sale securities, tax | $294 | $232 |
Reclassification adjustment for losses included in net income, tax | $18 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Cash Flows from Operating Activities | |||
Net income | $544 | $1,146 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 238 | 248 | |
Origination of loans held for sale | -2,210 | ||
Proceeds from sale of loans held for sale | 2,593 | ||
Net gains on sales of loans held for sale | -55 | ||
Recovery of loan losses | -200 | -3,850 | |
Provision for other real estate owned | 23 | ||
Net losses on sale of securities available for sale | 52 | ||
Net gains on sale of other real estate owned | -57 | -1 | |
Losses on disposal of premises and equipment | 2 | ||
Income from bank owned life insurance | -74 | -74 | |
Accretion of discounts and amortization of premiums on securities, net | 148 | 160 | |
Stock-based compensation | 43 | ||
Changes in assets and liabilities: | |||
(Increase) decrease in interest receivable | 5 | -3 | |
(Increase) decrease in other assets | -3 | 437 | |
Increase (decrease) in other liabilities | 151 | -674 | |
Net cash provided by operating activities | 1,375 | 1,064 | |
Cash Flows from Investing Activities | |||
Proceeds from maturities, calls, and principal payments of securities available for sale | 3,668 | 3,052 | |
Purchase of securities available for sale | -10,515 | -9,790 | |
Proceeds from redemption of restricted securities | 168 | ||
Purchase of restricted securities | -633 | ||
Purchase of premises and equipment | -410 | -77 | |
Proceeds from sale of other real estate owned | 224 | 16 | |
Net increase in loans | -20,282 | -2,601 | |
Net cash used in investing activities | -27,948 | -9,232 | |
Cash Flows from Financing Activities | |||
Net increase (decrease) in demand deposits and savings accounts | -792 | 14,583 | |
Net decrease in time deposits | -4,760 | -3,605 | |
Proceeds from other borrowings | 15,000 | ||
Principal payments on other borrowings | -6 | -6 | |
Net proceeds from issuance of common stock | 1 | ||
Cash dividends paid on preferred stock | -329 | -189 | |
Cash dividends paid on common stock, net of reinvestment | -115 | ||
Increase in federal funds purchased | 1,903 | ||
Net cash provided by financing activities | 10,902 | 10,783 | |
Increase (decrease) in cash and cash equivalents | -15,671 | 2,615 | |
Cash and Cash Equivalents | |||
Beginning | 24,845 | 31,508 | 31,508 |
Ending | 9,174 | 34,123 | 24,845 |
Supplemental Disclosures of Cash Flow Information | |||
Interest | 371 | 500 | |
Income Taxes | 363 | ||
Supplemental Disclosures of Noncash Investing and Financing Activities | |||
Unrealized gains on securities available for sale | 916 | 682 | |
Transfer from loans to other real estate owned | 228 | ||
Issuance of common stock, dividend reinvestment plan | $8 |
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, 2013 | $53,560 | $14,564 | $6,127 | $6,813 | $27,360 | ($1,304) |
Net income | 1,146 | 1,146 | ||||
Other comprehensive income | 450 | 450 | ||||
Cash dividends on preferred stock | -189 | -189 | ||||
Accretion of preferred stock discount | 31 | -31 | ||||
Ending Balance at Mar. 31, 2014 | 54,967 | 14,595 | 6,127 | 6,813 | 28,286 | -854 |
Beginning Balance at Dec. 31, 2014 | 59,564 | 14,595 | 6,131 | 6,835 | 33,557 | -1,554 |
Net income | 544 | 544 | ||||
Other comprehensive income | 604 | 604 | ||||
Cash dividends on common stock ($0.025 per share) | -123 | -123 | ||||
Stock-based compensation | 43 | 43 | ||||
Issuance of 955 shares common stock, dividend reinvestment plan | 9 | 1 | 8 | |||
Issuance of 4,182 shares common stock, stock incentive plan | -5 | |||||
Cash dividends on preferred stock | -329 | -329 | ||||
Ending Balance at Mar. 31, 2015 | $60,312 | $14,595 | $6,137 | $6,881 | $33,649 | ($950) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Cash dividends on common stock, per share | $0.03 |
Issuance of common stock dividend reinvestment plan, shares | 955 |
Common Stock [Member] | |
Cash dividends on common stock, per share | $0.03 |
Issuance of common stock dividend reinvestment plan, shares | 955 |
Issuance of common stock incentive plan, shares | 5 |
General
General | 3 Months Ended | |
Mar. 31, 2015 | ||
Accounting Policies [Abstract] | ||
General | Note 1. | General |
The accompanying unaudited consolidated financial statements of First National Corporation (the Company) and its subsidiaries, including First Bank (the Bank), have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications of a normal and recurring nature considered necessary to present fairly the financial positions at March 31, 2015 and December 31, 2014, the results of operations and comprehensive income for the three months ended March 31, 2015 and 2014 and the cash flows and changes in shareholders’ equity for the three months ended March 31, 2015 and 2014. The statements should be read in conjunction with the consolidated financial statements and related notes included in the Annual Report on Form 10-K for the year ended December 31, 2014. Operating results for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. | ||
Recent Accounting Pronouncements | ||
In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of ASU 2014-01 did not have an 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 adoption of ASU 2014-04 did not have a material impact on the Company’s consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of ASU 2014-11 did not have an impact on the Company’s consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have an impact on its consolidated financial statements. | ||
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on its consolidated financial statements. | ||
In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have an impact on its consolidated financial statements. | ||
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have an impact on its consolidated financial statements. | ||
In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have an impact on its consolidated financial statements. | ||
In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have an impact on its consolidated financial statements. | ||
In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The Company is currently assessing the impact that ASU 2015-05 will have on its consolidated financial statements. |
Securities
Securities | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Securities | Note 2. | Securities | |||||||||||||||||||||||
The Company invests in U.S. agency and mortgage-backed securities, obligations of state and political subdivisions and corporate equity securities. Amortized costs and fair values of securities available for sale at March 31, 2015 and December 31, 2014 were as follows (in thousands): | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 74,540 | $ | 650 | $ | (354 | ) | $ | 74,836 | ||||||||||||||||
Obligations of states and political subdivisions | 15,600 | 435 | (22 | ) | 16,013 | ||||||||||||||||||||
Corporate equity securities | 1 | 5 | — | 6 | |||||||||||||||||||||
$ | 90,141 | $ | 1,090 | $ | (376 | ) | $ | 90,855 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 67,462 | $ | 374 | $ | (807 | ) | $ | 67,029 | ||||||||||||||||
Obligations of states and political subdivisions | 16,031 | 325 | (99 | ) | 16,257 | ||||||||||||||||||||
Corporate equity securities | 1 | 5 | — | 6 | |||||||||||||||||||||
$ | 83,494 | $ | 704 | $ | (906 | ) | $ | 83,292 | |||||||||||||||||
At March 31, 2015 and December 31, 2014, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): | |||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 7,438 | $ | (18 | ) | $ | 21,024 | $ | (336 | ) | $ | 28,462 | $ | (354 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | 1,079 | (22 | ) | 1,079 | (22 | ) | |||||||||||||||||
$ | 7,438 | $ | (18 | ) | $ | 22,103 | $ | (358 | ) | $ | 29,541 | $ | (376 | ) | |||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 8,677 | $ | (60 | ) | $ | 32,527 | $ | (747 | ) | $ | 41,204 | $ | (807 | ) | ||||||||||
Obligations of states and political subdivisions | 715 | (1 | ) | 2,841 | (98 | ) | 3,556 | (99 | ) | ||||||||||||||||
$ | 9,392 | $ | (61 | ) | $ | 35,368 | $ | (845 | ) | $ | 44,760 | $ | (906 | ) | |||||||||||
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, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities. | |||||||||||||||||||||||||
At March 31, 2015, there were nineteen U.S. agency and mortgage-backed securities and two obligations of state 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 3.7 years at March 31, 2015. At December 31, 2014, there were twenty-nine U.S. agency and mortgage-backed securities and seven obligations of states and political subdivisions in an unrealized loss position. One hundred percent of the Company’s investment portfolio was considered investment grade at December 31, 2014. The weighted-average re-pricing term of the portfolio was 3.9 years at December 31, 2014. The unrealized losses at March 31, 2015 in the U.S. agency and mortgage-backed securities portfolio and the obligation of states and political subdivisions portfolio were 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 March 31, 2015 by contractual maturity are shown below (in thousands). 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. | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due within one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 6,661 | 6,717 | |||||||||||||||||||||||
Due after five years through ten years | 21,289 | 21,457 | |||||||||||||||||||||||
Due after ten years | 62,190 | 62,675 | |||||||||||||||||||||||
Corporate equity securities | 1 | 6 | |||||||||||||||||||||||
$ | 90,141 | $ | 90,855 | ||||||||||||||||||||||
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 March 31, 2015, and no impairment has been recognized. Restricted securities are not part of the available for sale securities portfolio. | |||||||||||||||||||||||||
The composition of restricted securities at March 31, 2015 and December 31, 2014 was as follows (in thousands): | |||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | $ | 1,103 | $ | 470 | |||||||||||||||||||||
Federal Reserve Bank stock | 846 | 846 | |||||||||||||||||||||||
Community Bankers’ Bank stock | 50 | 50 | |||||||||||||||||||||||
$ | 1,999 | $ | 1,366 | ||||||||||||||||||||||
Loans
Loans | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Loans | Note 3. | Loans | |||||||||||||||||||||||||||||||
Loans at March 31, 2015 and December 31, 2014 are summarized as follows (in thousands): | |||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 33,344 | $ | 29,475 | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | 172,874 | 163,727 | |||||||||||||||||||||||||||||||
Other real estate loans | 158,896 | 151,802 | |||||||||||||||||||||||||||||||
Commercial and industrial loans | 21,420 | 21,166 | |||||||||||||||||||||||||||||||
Consumer and other loans | 11,983 | 12,240 | |||||||||||||||||||||||||||||||
Total loans | $ | 398,517 | $ | 378,410 | |||||||||||||||||||||||||||||
Allowance for loan losses | (6,771 | ) | (6,718 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 391,746 | $ | 371,692 | |||||||||||||||||||||||||||||
Net deferred loan costs included in the above loan categories were $145 thousand and $130 thousand at March 31, 2015 and December 31, 2014, respectively. Consumer and other loans included $194 thousand and $285 thousand of demand deposit overdrafts at March 31, 2015 and December 31, 2014, respectively. | |||||||||||||||||||||||||||||||||
Risk characteristics of each loan portfolio class that are considered by the Company include: | |||||||||||||||||||||||||||||||||
• | 1-4 family residential mortgage loans carry risks associated with the continued creditworthiness 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 creditworthiness 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 following table provides a summary of loan classes and an aging of past due loans as of March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non-accrual | 90 Days | ||||||||||||||||||||||||||
Days Past | Days | Days Past | Past Due | Loans | Loans | or More | |||||||||||||||||||||||||||
Due | Past Due | Due | Past Due | ||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 443 | $ | — | $ | 71 | $ | 514 | $ | 32,830 | $ | 33,344 | $ | 1,653 | $ | 71 | |||||||||||||||||
1-4 family residential | 535 | 76 | 349 | 960 | 171,914 | 172,874 | 685 | — | |||||||||||||||||||||||||
Other real estate loans | 498 | — | 3,304 | 3,802 | 155,094 | 158,896 | 4,722 | — | |||||||||||||||||||||||||
Commercial and industrial | 283 | 92 | — | 375 | 21,045 | 21,420 | 110 | — | |||||||||||||||||||||||||
Consumer and other loans | 16 | — | — | 16 | 11,967 | 11,983 | — | — | |||||||||||||||||||||||||
Total | $ | 1,775 | $ | 168 | $ | 3,724 | $ | 5,667 | $ | 392,850 | $ | 398,517 | $ | 7,170 | $ | 71 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non-accrual | 90 Days | ||||||||||||||||||||||||||
Days Past | Days | Days Past | Past Due | Loans | Loans | or More | |||||||||||||||||||||||||||
Due | Past Due | Due | Past Due | ||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 2,441 | $ | 71 | $ | — | $ | 2,512 | $ | 26,963 | $ | 29,475 | $ | 1,787 | $ | — | |||||||||||||||||
1-4 family residential | 504 | 323 | 754 | 1,581 | 162,146 | 163,727 | 1,342 | — | |||||||||||||||||||||||||
Other real estate loans | 554 | 800 | 2,519 | 3,873 | 147,929 | 151,802 | 4,756 | — | |||||||||||||||||||||||||
Commercial and industrial | 10 | 106 | — | 116 | 21,050 | 21,166 | 115 | — | |||||||||||||||||||||||||
Consumer and other loans | 14 | — | — | 14 | 12,226 | 12,240 | — | — | |||||||||||||||||||||||||
Total | $ | 3,523 | $ | 1,300 | $ | 3,273 | $ | 8,096 | $ | 370,314 | $ | 378,410 | $ | 8,000 | $ | — | |||||||||||||||||
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 as agreed. | |||||||||||||||||||||||||||||||||
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 weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently 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 March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 24,129 | $ | 3,250 | $ | 5,965 | $ | — | $ | 33,344 | |||||||||||||||||||||||
Secured by 1-4 family residential | 162,248 | 4,652 | 5,974 | — | 172,874 | ||||||||||||||||||||||||||||
Other real estate loans | 134,037 | 14,196 | 10,663 | — | 158,896 | ||||||||||||||||||||||||||||
Commercial and industrial | 20,660 | 452 | 308 | — | 21,420 | ||||||||||||||||||||||||||||
Consumer and other loans | 11,983 | — | — | — | 11,983 | ||||||||||||||||||||||||||||
Total | $ | 353,057 | $ | 22,550 | $ | 22,910 | $ | — | $ | 398,517 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 20,476 | $ | 2,962 | $ | 6,037 | $ | — | $ | 29,475 | |||||||||||||||||||||||
Secured by 1-4 family residential | 152,004 | 5,058 | 6,665 | — | 163,727 | ||||||||||||||||||||||||||||
Other real estate loans | 126,211 | 14,776 | 10,815 | — | 151,802 | ||||||||||||||||||||||||||||
Commercial and industrial | 20,428 | 463 | 275 | — | 21,166 | ||||||||||||||||||||||||||||
Consumer and other loans | 12,240 | — | — | — | 12,240 | ||||||||||||||||||||||||||||
Total | $ | 331,359 | $ | 23,259 | $ | 23,792 | $ | — | $ | 378,410 | |||||||||||||||||||||||
Allowance_for_Loan_Losses
Allowance for Loan Losses | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Allowance for Loan Losses | Note 4. | Allowance for Loan Losses | |||||||||||||||||||||||||||
The following tables present, as of March 31, 2015, December 31, 2014 and March 31, 2014, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands): | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
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, 2014 | $ | 1,403 | $ | 1,204 | $ | 3,658 | $ | 310 | $ | 143 | $ | 6,718 | |||||||||||||||||
Charge-offs | — | (47 | ) | — | — | (65 | ) | (112 | ) | ||||||||||||||||||||
Recoveries | 1 | 34 | 1 | 60 | 69 | 165 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | 197 | (239 | ) | 137 | (82 | ) | (13 | ) | — | ||||||||||||||||||||
Ending Balance, March 31, 2015 | $ | 1,601 | $ | 952 | $ | 3,796 | $ | 288 | $ | 134 | $ | 6,771 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 341 | 85 | 1,447 | 28 | — | 1,901 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,260 | 867 | 2,349 | 260 | 134 | 4,870 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 33,344 | 172,874 | 158,896 | 21,420 | 11,983 | 398,517 | |||||||||||||||||||||||
Individually evaluated for impairment | 3,071 | 2,747 | 7,103 | 113 | — | 13,034 | |||||||||||||||||||||||
Collectively evaluated for impairment | 30,273 | 170,127 | 151,793 | 21,307 | 11,983 | 385,483 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
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, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Charge-offs | (91 | ) | (272 | ) | (203 | ) | (43 | ) | (318 | ) | (927 | ) | |||||||||||||||||
Recoveries | 80 | 15 | 509 | 18 | 229 | 851 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (1,296 | ) | (1,514 | ) | (1,066 | ) | (107 | ) | 133 | (3,850 | ) | ||||||||||||||||||
Ending Balance, December 31, 2014 | $ | 1,403 | $ | 1,204 | $ | 3,658 | $ | 310 | $ | 143 | $ | 6,718 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 245 | 173 | 1,456 | 33 | — | 1,907 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,158 | 1,031 | 2,202 | 277 | 143 | 4,811 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 29,475 | 163,727 | 151,802 | 21,166 | 12,240 | 378,410 | |||||||||||||||||||||||
Individually evaluated for impairment | 3,205 | 3,414 | 7,183 | 120 | — | 13,922 | |||||||||||||||||||||||
Collectively evaluated for impairment | 26,270 | 160,313 | 144,619 | 21,046 | 12,240 | 364,488 | |||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
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, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Charge-offs | — | (71 | ) | — | (36 | ) | (132 | ) | (239 | ) | |||||||||||||||||||
Recoveries | — | 4 | 1 | 1 | 72 | 78 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (458 | ) | 42 | 89 | 36 | 91 | (200 | ) | |||||||||||||||||||||
Ending Balance, March 31, 2014 | $ | 2,252 | $ | 2,950 | $ | 4,508 | $ | 443 | $ | 130 | $ | 10,283 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 862 | 126 | 505 | 45 | — | 1,538 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,390 | 2,824 | 4,003 | 398 | 130 | 8,745 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 33,876 | 147,541 | 142,719 | 23,381 | 12,016 | 359,533 | |||||||||||||||||||||||
Individually evaluated for impairment | 6,568 | 3,468 | 11,030 | 172 | — | 21,238 | |||||||||||||||||||||||
Collectively evaluated for impairment | 27,308 | 144,073 | 131,689 | 23,209 | 12,016 | 338,295 | |||||||||||||||||||||||
Impaired loans and the related allowance at March 31, 2015, December 31, 2014 and March 31, 2014, were as follows (in thousands): | |||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
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 | $ | 3,198 | $ | 2,196 | $ | 875 | $ | 3,071 | $ | 341 | $ | 3,171 | $ | 16 | |||||||||||||||
Secured by 1-4 family | 3,672 | 2,509 | 238 | 2,747 | 85 | 3,149 | 29 | ||||||||||||||||||||||
Other real estate loans | 7,559 | 4,119 | 2,984 | 7,103 | 1,447 | 7,149 | 34 | ||||||||||||||||||||||
Commercial and industrial | 122 | 3 | 110 | 113 | 28 | 118 | — | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 14,551 | $ | 8,827 | $ | 4,207 | $ | 13,034 | $ | 1,901 | $ | 13,587 | $ | 79 | |||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 3,299 | $ | 2,800 | $ | 405 | $ | 3,205 | $ | 245 | $ | 5,532 | $ | 40 | |||||||||||||||
Secured by 1-4 family | 4,327 | 2,526 | 888 | 3,414 | 173 | 3,433 | 138 | ||||||||||||||||||||||
Other real estate loans | 7,623 | 3,708 | 3,475 | 7,183 | 1,456 | 10,115 | 206 | ||||||||||||||||||||||
Commercial and industrial | 127 | 5 | 115 | 120 | 33 | 159 | 1 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 15,376 | $ | 9,039 | $ | 4,883 | $ | 13,922 | $ | 1,907 | $ | 19,239 | $ | 385 | |||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 8,864 | $ | 4,018 | $ | 2,550 | $ | 6,568 | $ | 862 | $ | 6,684 | $ | 11 | |||||||||||||||
Secured by 1-4 family | 4,391 | 2,932 | 536 | 3,468 | 126 | 3,313 | 31 | ||||||||||||||||||||||
Other real estate loans | 12,346 | 9,139 | 1,891 | 11,030 | 505 | 11,082 | 79 | ||||||||||||||||||||||
Commercial and industrial | 176 | 13 | 159 | 172 | 45 | 200 | — | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 25,777 | $ | 16,102 | $ | 5,136 | $ | 21,238 | $ | 1,538 | $ | 21,279 | $ | 121 | |||||||||||||||
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 March 31, 2015, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $1.8 million. At March 31, 2015, $782 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing assets. There were $1.9 million in TDRs at December 31, 2014, $790 thousand 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 three month period ended March 31, 2015. There was one other real estate loan classified as a TDR during the three month period ended March 31, 2014 because the loan term was extended at a below market rate of interest. The recorded investment for this loan prior to the modification totaled $283 thousand and the recorded investment after the modification totaled $344 thousand. | |||||||||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral and charge-off of the loan during the twelve month period subsequent to the modification. |
Other_Real_Estate_Owned_OREO
Other Real Estate Owned (OREO) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Banking and Thrift [Abstract] | |||||||||||||
Other Real Estate Owned (OREO) | Note 5. | Other Real Estate Owned (OREO) | |||||||||||
At March 31, 2015 and December 31, 2014, OREO totaled $1.9 million. OREO is primarily comprised of residential lots, raw land, non-residential properties and residential properties, and are located primarily in the Commonwealth of Virginia. Changes in the balance for OREO are as follows (in thousands): | |||||||||||||
For the three | For the year | ||||||||||||
months ended | ended | ||||||||||||
March 31, | December 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Balance at the beginning of year, gross | $ | 2,263 | $ | 4,695 | |||||||||
Transfers in | 228 | 139 | |||||||||||
Charge-offs | (250 | ) | (1,302 | ) | |||||||||
Sales proceeds | (224 | ) | (1,502 | ) | |||||||||
Gain on disposition | 57 | 307 | |||||||||||
Deferred gain recognized | — | (73 | ) | ||||||||||
Depreciation | — | (1 | ) | ||||||||||
Balance at the end of period, gross | $ | 2,074 | $ | 2,263 | |||||||||
Less: valuation allowance | (125 | ) | (375 | ) | |||||||||
Balance at the end of period, net | $ | 1,949 | $ | 1,888 | |||||||||
At March 31, 2015, the carrying amount of residential real estate properties included in OREO was $228 thousand. There were no residential real estate properties included in OREO at December 31, 2014. The recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process was $87 thousand as of March 31, 2015. | |||||||||||||
Changes in the valuation allowance are as follows (in thousands): | |||||||||||||
For the three | For the year | ||||||||||||
ended | |||||||||||||
months ended | |||||||||||||
March 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2014 | |||||||||||
Balance at beginning of year | $ | 375 | $ | 1,665 | $ | 1,665 | |||||||
Provision for losses | — | 23 | 12 | ||||||||||
Charge-offs, net | (250 | ) | (2 | ) | (1,302 | ) | |||||||
Balance at end of period | $ | 125 | $ | 1,686 | $ | 375 | |||||||
Net expenses applicable to OREO, other than the provision for losses, were $21 thousand and $9 thousand for the three months ended March 31, 2015 and 2014, respectively and $81 thousand for the year ended December 31, 2014. |
Other_Borrowings
Other Borrowings | 3 Months Ended | |
Mar. 31, 2015 | ||
Text Block [Abstract] | ||
Other Borrowings | Note 6. | Other Borrowings |
The Bank had unused lines of credit totaling $106.1 million and $121.1 million available with non-affiliated banks at March 31, 2015 and December 31, 2014, 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 total assets. The unused line of credit with FHLB totaled $62.7 million at March 31, 2015. | ||
At March 31, 2015, the Bank had borrowings from the Federal Home Loan Bank (FHLB) system totaling $15.0 million which matured April 6, 2015. The interest rate on this note payable was 0.22%. At December 31, 2014, the Bank did not have borrowings from the FHLB system. The Bank had a letter of credit from the FHLB totaling $23.0 million at March 31, 2015 and December 31, 2014. The Bank had collateral pledged on the borrowing line and the letter of credit at March 31, 2015 and December 31, 2014 including real estate loans totaling $103.0 million and $101.9 million, respectively, and Federal Home Loan Bank stock with a book value of $1.1 million and $470 thousand, respectively. | ||
At March 31, 2015 and December 31, 2014, the Bank had a note payable totaling $20 and $26 thousand, respectively, 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 was 4.00%. |
Capital_Requirements
Capital Requirements | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Capital Requirements | Note 7. | Capital Requirements | |||||||||||||||||||||||
The Bank is 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 Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of 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 Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations), Tier 1 (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined), and of Tier 1 capital to average assets. Management believes, as of March 31, 2015 and December 31, 2014, that the Bank met all capital adequacy requirements to which it is subject. | |||||||||||||||||||||||||
As of March 31, 2015, 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 risk-based capital and 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. | |||||||||||||||||||||||||
A comparison of the capital of the Bank at March 31, 2015 and December 31, 2014 with the minimum regulatory guidelines were as follows (dollars in thousands): | |||||||||||||||||||||||||
Actual | Minimum Capital | Minimum | |||||||||||||||||||||||
Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 72,764 | 18.86 | % | $ | 30,859 | 8 | % | $ | 38,573 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,918 | 17.61 | % | $ | 23,144 | 6 | % | $ | 30,859 | 8 | % | |||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,918 | 17.61 | % | $ | 17,358 | 4.5 | % | $ | 25,073 | 6.5 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | $ | 67,918 | 13.17 | % | $ | 20,628 | 4 | % | $ | 25,785 | 5 | % | |||||||||||||
December 31, 2014: | |||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 71,941 | 19.14 | % | $ | 30,077 | 8 | % | $ | 37,596 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,217 | 17.88 | % | $ | 15,038 | 4 | % | $ | 22,557 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | $ | 67,217 | 12.9 | % | $ | 20,841 | 4 | % | $ | 26,051 | 5 | % |
Trust_Preferred_Capital_Notes
Trust Preferred Capital Notes | 3 Months Ended | |
Mar. 31, 2015 | ||
Debt Disclosure [Abstract] | ||
Trust Preferred Capital Notes | Note 8. | 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 March 31, 2015 and December 31, 2014 was 2.87% and 2.84%, respectively. The securities have a mandatory redemption date of June 17, 2034, and were subject to varying call provisions that began September 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. The Company is current on its interest payments on the trust preferred securities. | ||
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 March 31, 2015 and December 31, 2014 was 1.86% and 1.84%, respectively. The securities have a mandatory redemption date of October 1, 2036, and were subject to varying call provisions that began 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. The Company is current on its interest payments on the trust preferred securities. | ||
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 March 31, 2015 and December 31, 2014, the total amount of trust preferred securities issued by the Trusts was included in the Company’s Tier 1 capital. |
Benefit_Plans
Benefit Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Benefit Plans | Note 9. | Benefit Plans | |||||||
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 were 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. | |||||||||
Components of the net periodic benefit cost of the plan for the three months ended March 31, 2015 and 2014 were as follows (in thousands): | |||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 111 | $ | 87 | |||||
Interest cost | 76 | 67 | |||||||
Expected return on plan assets | (79 | ) | (79 | ) | |||||
Amortization of net loss | 22 | — | |||||||
Net periodic benefit cost | $ | 130 | $ | 75 | |||||
The Company previously disclosed in its consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2014, that it expected to make no contribution to its pension plan during the year ended December 31, 2015. There was no minimum annual contribution required. | |||||||||
In addition to the defined benefit pension plan, the Company maintains a 401(k) plan and an employee stock ownership plan (ESOP) for eligible employees. See Note 12 of the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for additional information about the Company’s benefit plans. |
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Earnings per Common Share | Note 10. | 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. | |||||||||
The following table presents the computation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014 (dollars in thousands, except per share data): | |||||||||
For the three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
(Numerator): | |||||||||
Net income | $ | 544 | $ | 1,146 | |||||
Effective dividend and accretion on preferred stock | 329 | 220 | |||||||
Net income available to common shareholders | $ | 215 | $ | 926 | |||||
(Denominator): | |||||||||
Weighted average shares outstanding – basic | 4,906,981 | 4,901,464 | |||||||
Potentially dilutive common shares – restricted stock units | 4,063 | — | |||||||
Weighted average shares outstanding – diluted | 4,911,044 | 4,901,464 | |||||||
Income per common share | |||||||||
Basic | $ | 0.04 | $ | 0.19 | |||||
Diluted | $ | 0.04 | $ | 0.19 |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements | Note 11. | Fair Value Measurements | |||||||||||||||||||
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 an 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 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 March 31, 2015 and December 31, 2014 (in thousands). | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2015 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 74,836 | $ | — | $ | 74,836 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,013 | — | 16,013 | — | |||||||||||||||||
Corporate equity securities | 6 | 6 | — | — | |||||||||||||||||
$ | 90,855 | $ | 6 | $ | 90,849 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 67,029 | $ | — | $ | 67,029 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,257 | — | 16,257 | — | |||||||||||||||||
Corporate equity securities | 6 | 6 | — | — | |||||||||||||||||
$ | 83,292 | $ | 6 | $ | 83,286 | $ | — | ||||||||||||||
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 three months ended March 31, 2015 and the year ended December 31, 2014. | |||||||||||||||||||||
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 the present value of expected future cash flows discounted at the loan’s effective interest rate, 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 conducted by an independent, licensed appraiser using observable market data (Level 2) within the last twelve months. 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 Income. | |||||||||||||||||||||
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 during the periods (dollars in thousands): | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2015 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Impaired loans, net | $ | 2,306 | $ | — | $ | — | $ | 2,306 | |||||||||||||
Other real estate owned, net | 1,949 | — | — | 1,949 | |||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Impaired loans, net | $ | 2,976 | $ | — | $ | — | $ | 2,976 | |||||||||||||
Other real estate owned, net | 1,888 | — | — | 1,888 | |||||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for March 31, 2015 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable | Range (Weighted- | ||||||||||||||||||
Input | Average) | ||||||||||||||||||||
Impaired loans, net | $ | 2,306 | Property appraisals | Selling cost | 10 | % | |||||||||||||||
Other real estate owned, net | $ | 1,949 | Property appraisals | Selling cost | 7 | % | |||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for December 31, 2014 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable | Range (Weighted- | ||||||||||||||||||
Input | Average) | ||||||||||||||||||||
Impaired loans, net | $ | 2,976 | Property appraisals | Selling cost | 10 | % | |||||||||||||||
Other real estate owned, net | $ | 1,888 | 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 Securities | |||||||||||||||||||||
The carrying value of restricted securities 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 | |||||||||||||||||||||
Accrued interest receivable and payable were estimated to equal the carrying value due to the short-term nature of these financial instruments. | |||||||||||||||||||||
Borrowings and Federal Funds Purchased | |||||||||||||||||||||
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 | |||||||||||||||||||||
Bank owned life insurance represents insurance policies on officers, directors, and past directors of the Company. The cash values of these policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates the 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 March 31, 2015 and December 31, 2014, 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 March 31, 2015 and December 31, 2014 are as follows (in thousands): | |||||||||||||||||||||
Fair Value Measurements at March 31, 2015 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 | $ | 9,174 | $ | 9,174 | $ | — | $ | — | $ | 9,174 | |||||||||||
Securities | 90,855 | 6 | 90,849 | — | 90,855 | ||||||||||||||||
Restricted securities | 1,999 | — | 1,999 | — | 1,999 | ||||||||||||||||
Loans, net | 391,746 | — | — | 399,848 | 399,848 | ||||||||||||||||
Bank owned life insurance | 11,431 | — | 11,431 | — | 11,431 | ||||||||||||||||
Accrued interest receivable | 1,256 | — | 1,256 | — | 1,256 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 438,786 | $ | — | $ | 341,812 | $ | 96,995 | $ | 438,807 | |||||||||||
Federal funds purchased | 1,955 | — | 1,955 | — | 1,955 | ||||||||||||||||
Other borrowings | 15,020 | — | — | 15,020 | 15,020 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,547 | 9,547 | ||||||||||||||||
Accrued interest payable | 120 | — | 120 | — | 120 | ||||||||||||||||
Fair Value Measurements at December 31, 2014 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 | $ | 24,845 | $ | 24,845 | $ | — | $ | — | $ | 24,845 | |||||||||||
Securities | 83,292 | 6 | 83,286 | — | 83,292 | ||||||||||||||||
Restricted securities | 1,366 | — | 1,366 | — | 1,366 | ||||||||||||||||
Loans held for sale | 328 | — | 328 | — | 328 | ||||||||||||||||
Loans, net | 371,692 | — | — | 378,930 | 378,930 | ||||||||||||||||
Bank owned life insurance | 11,357 | — | 11,357 | — | 11,357 | ||||||||||||||||
Accrued interest receivable | 1,261 | — | 1,261 | — | 1,261 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 444,338 | $ | — | $ | 342,604 | $ | 101,606 | $ | 444,210 | |||||||||||
Federal funds purchased | 52 | — | 52 | — | 52 | ||||||||||||||||
Other borrowings | 26 | — | — | 26 | 26 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,756 | 9,756 | ||||||||||||||||
Accrued interest payable | 135 | — | 135 | — | 135 | ||||||||||||||||
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. |
Preferred_Stock
Preferred Stock | 3 Months Ended | |
Mar. 31, 2015 | ||
Equity [Abstract] | ||
Preferred Stock | Note 12. | 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 paid cumulative dividends at a rate of 5% per annum until May 14, 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 was fully amortized over a five year period through March 12, 2014, using the constant effective yield method. |
Stock_Compensation_Plans
Stock Compensation Plans | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock Compensation Plans | Note 13. | Stock Compensation Plans | |||||||
On May 13, 2014, the Company’s shareholders approved the First National Corporation 2014 Stock Incentive Plan, which makes available up to 240,000 shares of common stock for the granting of stock options, restricted stock awards, stock appreciation rights and other stock-based awards. Awards are made at the discretion of management and compensation cost equal to the fair value of the award is recognized over the vesting period. | |||||||||
Restricted Stock Units | |||||||||
Restricted stock units are an award of units that correspond in number and value to a specified number of shares of employer stock which the recipient receives according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each restricted stock unit that vests entitles the recipient to receive one share of common stock on a specified issuance date. | |||||||||
In the first quarter of 2015, 12,546 restricted stock units were granted to employees, with 4,182 units vesting immediately and 8,364 units subject to a two year vesting schedule with one half of the units vesting each year on the grant date anniversary. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded restricted stock units until vesting has occurred and the recipient becomes the record holder of those shares. The unvested restricted stock units will vest on the established schedule if the employees remain employed by the Company on future vesting dates. | |||||||||
A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: | |||||||||
March 31, 2015 | |||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Balance at January 1, 2015 | — | $ | — | ||||||
Granted | 12,546 | 9 | |||||||
Vested | (4,182 | ) | 9 | ||||||
Forfeited | — | — | |||||||
Balance at March 31, 2015 | 8,364 | $ | 9 | ||||||
At March 31, 2015, based on restricted stock unit awards outstanding at that time, the total unrecognized pre-tax compensation expense related to unvested restricted stock unit awards was $70 thousand. This expense is expected to be recognized through 2017. As of March 31, 2015, the Company does not expect the forfeiture of any unvested restricted stock units. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Accumulated Other Comprehensive Loss | Note 14. | Accumulated Other Comprehensive Loss | |||||||||||
Changes in each component of accumulated other comprehensive loss were as follows (in thousands): | |||||||||||||
Net | Adjustments | Accumulated | |||||||||||
Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Pension | Comprehensive | |||||||||||
on Securities | Benefits | Loss | |||||||||||
Balance at December 31, 2013 | $ | (1,129 | ) | $ | (175 | ) | $ | (1,304 | ) | ||||
Unrealized holding gains (net of tax, $232) | 450 | — | 450 | ||||||||||
Change during period | 450 | — | 450 | ||||||||||
Balance at March 31, 2014 | $ | (679 | ) | $ | (175 | ) | $ | (854 | ) | ||||
Balance at December 31, 2014 | $ | (133 | ) | $ | (1,421 | ) | $ | (1,554 | ) | ||||
Unrealized holding gains (net of tax, $294) | 570 | — | 570 | ||||||||||
Reclassification adjustment (net of tax, ($18)) | 34 | — | 34 | ||||||||||
Change during period | 604 | — | 604 | ||||||||||
Balance at March 31, 2015 | $ | 471 | $ | (1,421 | ) | $ | (950 | ) | |||||
The following tables present information related to reclassifications from accumulated other comprehensive loss for the three month periods ended March 31, 2015 and 2014 (in thousands): | |||||||||||||
Details About Accumulated Other Comprehensive Loss | Amount Reclassified from | Affected Line Item in the Consolidated | |||||||||||
Accumulated Other | Statements of Income | ||||||||||||
Comprehensive Loss | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Securities available for sale: | |||||||||||||
Net securities losses reclassified into earnings | $ | 52 | $ | — | Net (losses) on sale of securities available for sale | ||||||||
Related income tax benefit | (18 | ) | — | Income tax expense | |||||||||
Total reclassifications | $ | 34 | $ | — | Net of tax | ||||||||
Acquisition
Acquisition | 3 Months Ended | |
Mar. 31, 2015 | ||
Business Combinations [Abstract] | ||
Acquisition | Note 15. | Acquisition |
On April 17, 2015, the Bank completed its acquisition of six branch banking operations located in Virginia from Bank of America, National Association. The Bank paid total consideration of $6.7 million, which included the purchase of premises and equipment for $2.2 million and an estimated deposit premium of $4.4 million for the assumption of $188 million of deposit liabilities. The estimated fair value of the acquired premises and equipment was $4.6 million and the deposit premium may be adjusted based on the final closing statement. No loans were acquired in the transaction. The transaction will be accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged will be recorded at estimated fair values on the acquisition date. The Bank engaged third party specialists to assist in valuing certain assets, including the real estate, core deposit intangible, and potential goodwill that may result from the acquisition. Due to the proximity of the acquisition date (April 17, 2015) and the date the Company’s financial statements were issued (May 15, 2015), the work of the third party specialists (including management’s review and approval) is not yet complete. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In January 2014, the FASB issued ASU 2014-01, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of ASU 2014-01 did not have an 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 adoption of ASU 2014-04 did not have a material impact on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The adoption of ASU 2014-11 did not have an impact on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company does not expect the adoption of ASU 2014-12 to have an impact on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have an impact on its consolidated financial statements. | |
In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in this ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have an impact on its consolidated financial statements. | |
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have an impact on its consolidated financial statements. | |
In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” The amendments in this ASU are intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). In addition to reducing the number of consolidation models from four to two, the new standard simplifies the FASB Accounting Standards Codification™ and improves current GAAP by placing more emphasis on risk of loss when determining a controlling financial interest, reducing the frequency of the application of related-party guidance when determining a controlling financial interest in a variable interest entity (VIE), and changing consolidation conclusions for public and private companies in several industries that typically make use of limited partnerships or VIEs. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. ASU 2015-02 may be applied retrospectively in previously issued financial statements for one or more years with a cumulative-effect adjustment to retained earnings as of the beginning of the first year restated. The Company does not expect the adoption of ASU 2015-02 to have an impact on its consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The amendments in this ASU are intended to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this ASU. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have an impact on its consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this ASU provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The amendments do not change the accounting for a customer’s accounting for service contracts. As a result of the amendments, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. An entity can elect to adopt the amendments either: (1) prospectively to all arrangements entered into or materially modified after the effective date; or (2) retrospectively. The Company is currently assessing the impact that ASU 2015-05 will have on its consolidated financial statements. | |
Fair Value Measurement and Disclosures | 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 an 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 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) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Summary of Amortized Costs and Fair Values of Securities Available for Sale | Amortized costs and fair values of securities available for sale at March 31, 2015 and December 31, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 74,540 | $ | 650 | $ | (354 | ) | $ | 74,836 | ||||||||||||||||
Obligations of states and political subdivisions | 15,600 | 435 | (22 | ) | 16,013 | ||||||||||||||||||||
Corporate equity securities | 1 | 5 | — | 6 | |||||||||||||||||||||
$ | 90,141 | $ | 1,090 | $ | (376 | ) | $ | 90,855 | |||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | (Losses) | ||||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 67,462 | $ | 374 | $ | (807 | ) | $ | 67,029 | ||||||||||||||||
Obligations of states and political subdivisions | 16,031 | 325 | (99 | ) | 16,257 | ||||||||||||||||||||
Corporate equity securities | 1 | 5 | — | 6 | |||||||||||||||||||||
$ | 83,494 | $ | 704 | $ | (906 | ) | $ | 83,292 | |||||||||||||||||
Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired | At March 31, 2015 and December 31, 2014, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): | ||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 7,438 | $ | (18 | ) | $ | 21,024 | $ | (336 | ) | $ | 28,462 | $ | (354 | ) | ||||||||||
Obligations of states and political subdivisions | — | — | 1,079 | (22 | ) | 1,079 | (22 | ) | |||||||||||||||||
$ | 7,438 | $ | (18 | ) | $ | 22,103 | $ | (358 | ) | $ | 29,541 | $ | (376 | ) | |||||||||||
December 31, 2014 | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair Value | Unrealized | Fair Value | Unrealized | Fair Value | Unrealized | ||||||||||||||||||||
(Loss) | (Loss) | (Loss) | |||||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 8,677 | $ | (60 | ) | $ | 32,527 | $ | (747 | ) | $ | 41,204 | $ | (807 | ) | ||||||||||
Obligations of states and political subdivisions | 715 | (1 | ) | 2,841 | (98 | ) | 3,556 | (99 | ) | ||||||||||||||||
$ | 9,392 | $ | (61 | ) | $ | 35,368 | $ | (845 | ) | $ | 44,760 | $ | (906 | ) | |||||||||||
Composition of Restricted Securities | The composition of restricted securities at March 31, 2015 and December 31, 2014 was as follows (in thousands): | ||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
Federal Home Loan Bank stock | $ | 1,103 | $ | 470 | |||||||||||||||||||||
Federal Reserve Bank stock | 846 | 846 | |||||||||||||||||||||||
Community Bankers’ Bank stock | 50 | 50 | |||||||||||||||||||||||
$ | 1,999 | $ | 1,366 | ||||||||||||||||||||||
Available-for-sale Securities [Member] | |||||||||||||||||||||||||
Amortized Cost and Fair Value of Securities Available for Sale | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due within one year | $ | — | $ | — | |||||||||||||||||||||
Due after one year through five years | 6,661 | 6,717 | |||||||||||||||||||||||
Due after five years through ten years | 21,289 | 21,457 | |||||||||||||||||||||||
Due after ten years | 62,190 | 62,675 | |||||||||||||||||||||||
Corporate equity securities | 1 | 6 | |||||||||||||||||||||||
$ | 90,141 | $ | 90,855 | ||||||||||||||||||||||
Loans_Tables
Loans (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||
Summary of Loans | Loans at March 31, 2015 and December 31, 2014 are summarized as follows (in thousands): | ||||||||||||||||||||||||||||||||
March 31, | December 31, | ||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 33,344 | $ | 29,475 | |||||||||||||||||||||||||||||
Secured by 1-4 family residential | 172,874 | 163,727 | |||||||||||||||||||||||||||||||
Other real estate loans | 158,896 | 151,802 | |||||||||||||||||||||||||||||||
Commercial and industrial loans | 21,420 | 21,166 | |||||||||||||||||||||||||||||||
Consumer and other loans | 11,983 | 12,240 | |||||||||||||||||||||||||||||||
Total loans | $ | 398,517 | $ | 378,410 | |||||||||||||||||||||||||||||
Allowance for loan losses | (6,771 | ) | (6,718 | ) | |||||||||||||||||||||||||||||
Loans, net | $ | 391,746 | $ | 371,692 | |||||||||||||||||||||||||||||
Summary of Loan Classes and an Aging of Past Due Loans | The following table provides a summary of loan classes and an aging of past due loans as of March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non-accrual | 90 Days | ||||||||||||||||||||||||||
Days Past | Days | Days Past | Past Due | Loans | Loans | or More | |||||||||||||||||||||||||||
Due | Past Due | Due | Past Due | ||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 443 | $ | — | $ | 71 | $ | 514 | $ | 32,830 | $ | 33,344 | $ | 1,653 | $ | 71 | |||||||||||||||||
1-4 family residential | 535 | 76 | 349 | 960 | 171,914 | 172,874 | 685 | — | |||||||||||||||||||||||||
Other real estate loans | 498 | — | 3,304 | 3,802 | 155,094 | 158,896 | 4,722 | — | |||||||||||||||||||||||||
Commercial and industrial | 283 | 92 | — | 375 | 21,045 | 21,420 | 110 | — | |||||||||||||||||||||||||
Consumer and other loans | 16 | — | — | 16 | 11,967 | 11,983 | — | — | |||||||||||||||||||||||||
Total | $ | 1,775 | $ | 168 | $ | 3,724 | $ | 5,667 | $ | 392,850 | $ | 398,517 | $ | 7,170 | $ | 71 | |||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | > 90 | Total | Current | Total | Non-accrual | 90 Days | ||||||||||||||||||||||||||
Days Past | Days | Days Past | Past Due | Loans | Loans | or More | |||||||||||||||||||||||||||
Due | Past Due | Due | Past Due | ||||||||||||||||||||||||||||||
and | |||||||||||||||||||||||||||||||||
Accruing | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 2,441 | $ | 71 | $ | — | $ | 2,512 | $ | 26,963 | $ | 29,475 | $ | 1,787 | $ | — | |||||||||||||||||
1-4 family residential | 504 | 323 | 754 | 1,581 | 162,146 | 163,727 | 1,342 | — | |||||||||||||||||||||||||
Other real estate loans | 554 | 800 | 2,519 | 3,873 | 147,929 | 151,802 | 4,756 | — | |||||||||||||||||||||||||
Commercial and industrial | 10 | 106 | — | 116 | 21,050 | 21,166 | 115 | — | |||||||||||||||||||||||||
Consumer and other loans | 14 | — | — | 14 | 12,226 | 12,240 | — | — | |||||||||||||||||||||||||
Total | $ | 3,523 | $ | 1,300 | $ | 3,273 | $ | 8,096 | $ | 370,314 | $ | 378,410 | $ | 8,000 | $ | — | |||||||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 24,129 | $ | 3,250 | $ | 5,965 | $ | — | $ | 33,344 | |||||||||||||||||||||||
Secured by 1-4 family residential | 162,248 | 4,652 | 5,974 | — | 172,874 | ||||||||||||||||||||||||||||
Other real estate loans | 134,037 | 14,196 | 10,663 | — | 158,896 | ||||||||||||||||||||||||||||
Commercial and industrial | 20,660 | 452 | 308 | — | 21,420 | ||||||||||||||||||||||||||||
Consumer and other loans | 11,983 | — | — | — | 11,983 | ||||||||||||||||||||||||||||
Total | $ | 353,057 | $ | 22,550 | $ | 22,910 | $ | — | $ | 398,517 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||
Pass | Special | Substandard | Doubtful | Total | |||||||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||||||
Real estate loans: | |||||||||||||||||||||||||||||||||
Construction and land development | $ | 20,476 | $ | 2,962 | $ | 6,037 | $ | — | $ | 29,475 | |||||||||||||||||||||||
Secured by 1-4 family residential | 152,004 | 5,058 | 6,665 | — | 163,727 | ||||||||||||||||||||||||||||
Other real estate loans | 126,211 | 14,776 | 10,815 | — | 151,802 | ||||||||||||||||||||||||||||
Commercial and industrial | 20,428 | 463 | 275 | — | 21,166 | ||||||||||||||||||||||||||||
Consumer and other loans | 12,240 | — | — | — | 12,240 | ||||||||||||||||||||||||||||
Total | $ | 331,359 | $ | 23,259 | $ | 23,792 | $ | — | $ | 378,410 | |||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||
Allowance by Impairment Methodology and Loans by Impairment Methodology | The following tables present, as of March 31, 2015, December 31, 2014 and March 31, 2014, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands): | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
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, 2014 | $ | 1,403 | $ | 1,204 | $ | 3,658 | $ | 310 | $ | 143 | $ | 6,718 | |||||||||||||||||
Charge-offs | — | (47 | ) | — | — | (65 | ) | (112 | ) | ||||||||||||||||||||
Recoveries | 1 | 34 | 1 | 60 | 69 | 165 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | 197 | (239 | ) | 137 | (82 | ) | (13 | ) | — | ||||||||||||||||||||
Ending Balance, March 31, 2015 | $ | 1,601 | $ | 952 | $ | 3,796 | $ | 288 | $ | 134 | $ | 6,771 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 341 | 85 | 1,447 | 28 | — | 1,901 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,260 | 867 | 2,349 | 260 | 134 | 4,870 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 33,344 | 172,874 | 158,896 | 21,420 | 11,983 | 398,517 | |||||||||||||||||||||||
Individually evaluated for impairment | 3,071 | 2,747 | 7,103 | 113 | — | 13,034 | |||||||||||||||||||||||
Collectively evaluated for impairment | 30,273 | 170,127 | 151,793 | 21,307 | 11,983 | 385,483 | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
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, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Charge-offs | (91 | ) | (272 | ) | (203 | ) | (43 | ) | (318 | ) | (927 | ) | |||||||||||||||||
Recoveries | 80 | 15 | 509 | 18 | 229 | 851 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (1,296 | ) | (1,514 | ) | (1,066 | ) | (107 | ) | 133 | (3,850 | ) | ||||||||||||||||||
Ending Balance, December 31, 2014 | $ | 1,403 | $ | 1,204 | $ | 3,658 | $ | 310 | $ | 143 | $ | 6,718 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 245 | 173 | 1,456 | 33 | — | 1,907 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,158 | 1,031 | 2,202 | 277 | 143 | 4,811 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 29,475 | 163,727 | 151,802 | 21,166 | 12,240 | 378,410 | |||||||||||||||||||||||
Individually evaluated for impairment | 3,205 | 3,414 | 7,183 | 120 | — | 13,922 | |||||||||||||||||||||||
Collectively evaluated for impairment | 26,270 | 160,313 | 144,619 | 21,046 | 12,240 | 364,488 | |||||||||||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
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, 2013 | $ | 2,710 | $ | 2,975 | $ | 4,418 | $ | 442 | $ | 99 | $ | 10,644 | |||||||||||||||||
Charge-offs | — | (71 | ) | — | (36 | ) | (132 | ) | (239 | ) | |||||||||||||||||||
Recoveries | — | 4 | 1 | 1 | 72 | 78 | |||||||||||||||||||||||
Provision for (recovery of) loan losses | (458 | ) | 42 | 89 | 36 | 91 | (200 | ) | |||||||||||||||||||||
Ending Balance, March 31, 2014 | $ | 2,252 | $ | 2,950 | $ | 4,508 | $ | 443 | $ | 130 | $ | 10,283 | |||||||||||||||||
Ending Balance: | |||||||||||||||||||||||||||||
Individually evaluated for impairment | 862 | 126 | 505 | 45 | — | 1,538 | |||||||||||||||||||||||
Collectively evaluated for impairment | 1,390 | 2,824 | 4,003 | 398 | 130 | 8,745 | |||||||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||
Ending Balance | 33,876 | 147,541 | 142,719 | 23,381 | 12,016 | 359,533 | |||||||||||||||||||||||
Individually evaluated for impairment | 6,568 | 3,468 | 11,030 | 172 | — | 21,238 | |||||||||||||||||||||||
Collectively evaluated for impairment | 27,308 | 144,073 | 131,689 | 23,209 | 12,016 | 338,295 | |||||||||||||||||||||||
Impaired Loans and Related Allowance | Impaired loans and the related allowance at March 31, 2015, December 31, 2014 and March 31, 2014, were as follows (in thousands): | ||||||||||||||||||||||||||||
March 31, 2015 | |||||||||||||||||||||||||||||
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 | $ | 3,198 | $ | 2,196 | $ | 875 | $ | 3,071 | $ | 341 | $ | 3,171 | $ | 16 | |||||||||||||||
Secured by 1-4 family | 3,672 | 2,509 | 238 | 2,747 | 85 | 3,149 | 29 | ||||||||||||||||||||||
Other real estate loans | 7,559 | 4,119 | 2,984 | 7,103 | 1,447 | 7,149 | 34 | ||||||||||||||||||||||
Commercial and industrial | 122 | 3 | 110 | 113 | 28 | 118 | — | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 14,551 | $ | 8,827 | $ | 4,207 | $ | 13,034 | $ | 1,901 | $ | 13,587 | $ | 79 | |||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 3,299 | $ | 2,800 | $ | 405 | $ | 3,205 | $ | 245 | $ | 5,532 | $ | 40 | |||||||||||||||
Secured by 1-4 family | 4,327 | 2,526 | 888 | 3,414 | 173 | 3,433 | 138 | ||||||||||||||||||||||
Other real estate loans | 7,623 | 3,708 | 3,475 | 7,183 | 1,456 | 10,115 | 206 | ||||||||||||||||||||||
Commercial and industrial | 127 | 5 | 115 | 120 | 33 | 159 | 1 | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 15,376 | $ | 9,039 | $ | 4,883 | $ | 13,922 | $ | 1,907 | $ | 19,239 | $ | 385 | |||||||||||||||
March 31, 2014 | |||||||||||||||||||||||||||||
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 | $ | 8,864 | $ | 4,018 | $ | 2,550 | $ | 6,568 | $ | 862 | $ | 6,684 | $ | 11 | |||||||||||||||
Secured by 1-4 family | 4,391 | 2,932 | 536 | 3,468 | 126 | 3,313 | 31 | ||||||||||||||||||||||
Other real estate loans | 12,346 | 9,139 | 1,891 | 11,030 | 505 | 11,082 | 79 | ||||||||||||||||||||||
Commercial and industrial | 176 | 13 | 159 | 172 | 45 | 200 | — | ||||||||||||||||||||||
Consumer and other loans | — | — | — | — | — | — | — | ||||||||||||||||||||||
Total | $ | 25,777 | $ | 16,102 | $ | 5,136 | $ | 21,238 | $ | 1,538 | $ | 21,279 | $ | 121 | |||||||||||||||
Other_Real_Estate_Owned_OREO_T
Other Real Estate Owned (OREO) (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Banking and Thrift [Abstract] | |||||||||||||
Summary of Changes in the Balance for OREO | Changes in the balance for OREO are as follows (in thousands): | ||||||||||||
For the three | For the year | ||||||||||||
months ended | ended | ||||||||||||
March 31, | December 31, | ||||||||||||
2015 | 2014 | ||||||||||||
Balance at the beginning of year, gross | $ | 2,263 | $ | 4,695 | |||||||||
Transfers in | 228 | 139 | |||||||||||
Charge-offs | (250 | ) | (1,302 | ) | |||||||||
Sales proceeds | (224 | ) | (1,502 | ) | |||||||||
Gain on disposition | 57 | 307 | |||||||||||
Deferred gain recognized | — | (73 | ) | ||||||||||
Depreciation | — | (1 | ) | ||||||||||
Balance at the end of period, gross | $ | 2,074 | $ | 2,263 | |||||||||
Less: valuation allowance | (125 | ) | (375 | ) | |||||||||
Balance at the end of period, net | $ | 1,949 | $ | 1,888 | |||||||||
Summary of Changes in the Valuation Allowance | Changes in the valuation allowance are as follows (in thousands): | ||||||||||||
For the three | For the year | ||||||||||||
ended | |||||||||||||
months ended | |||||||||||||
March 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2014 | |||||||||||
Balance at beginning of year | $ | 375 | $ | 1,665 | $ | 1,665 | |||||||
Provision for losses | — | 23 | 12 | ||||||||||
Charge-offs, net | (250 | ) | (2 | ) | (1,302 | ) | |||||||
Balance at end of period | $ | 125 | $ | 1,686 | $ | 375 | |||||||
Capital_Requirements_Tables
Capital Requirements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Banking and Thrift [Abstract] | |||||||||||||||||||||||||
Comparison of Capital of Bank with Minimum Regulatory Guidelines | A comparison of the capital of the Bank at March 31, 2015 and December 31, 2014 with the minimum regulatory guidelines were as follows (dollars in thousands): | ||||||||||||||||||||||||
Actual | Minimum Capital | Minimum | |||||||||||||||||||||||
Requirement | To Be Well | ||||||||||||||||||||||||
Capitalized Under | |||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
March 31, 2015: | |||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 72,764 | 18.86 | % | $ | 30,859 | 8 | % | $ | 38,573 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,918 | 17.61 | % | $ | 23,144 | 6 | % | $ | 30,859 | 8 | % | |||||||||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,918 | 17.61 | % | $ | 17,358 | 4.5 | % | $ | 25,073 | 6.5 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | $ | 67,918 | 13.17 | % | $ | 20,628 | 4 | % | $ | 25,785 | 5 | % | |||||||||||||
December 31, 2014: | |||||||||||||||||||||||||
Total Capital (to Risk-Weighted Assets) | $ | 71,941 | 19.14 | % | $ | 30,077 | 8 | % | $ | 37,596 | 10 | % | |||||||||||||
Tier 1 Capital (to Risk-Weighted Assets) | $ | 67,217 | 17.88 | % | $ | 15,038 | 4 | % | $ | 22,557 | 6 | % | |||||||||||||
Tier 1 Capital (to Average Assets) | $ | 67,217 | 12.9 | % | $ | 20,841 | 4 | % | $ | 26,051 | 5 | % |
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||
Components of Net Periodic Benefit Cost | Components of the net periodic benefit cost of the plan for the three months ended March 31, 2015 and 2014 were as follows (in thousands): | ||||||||
For the three months | |||||||||
ended March 31, | |||||||||
2015 | 2014 | ||||||||
Service cost | $ | 111 | $ | 87 | |||||
Interest cost | 76 | 67 | |||||||
Expected return on plan assets | (79 | ) | (79 | ) | |||||
Amortization of net loss | 22 | — | |||||||
Net periodic benefit cost | $ | 130 | $ | 75 | |||||
Earnings_per_Common_Share_Tabl
Earnings per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the three months ended March 31, 2015 and 2014 (dollars in thousands, except per share data): | ||||||||
For the three months ended | |||||||||
March 31, | March 31, | ||||||||
2015 | 2014 | ||||||||
(Numerator): | |||||||||
Net income | $ | 544 | $ | 1,146 | |||||
Effective dividend and accretion on preferred stock | 329 | 220 | |||||||
Net income available to common shareholders | $ | 215 | $ | 926 | |||||
(Denominator): | |||||||||
Weighted average shares outstanding – basic | 4,906,981 | 4,901,464 | |||||||
Potentially dilutive common shares – restricted stock units | 4,063 | — | |||||||
Weighted average shares outstanding – diluted | 4,911,044 | 4,901,464 | |||||||
Income per common share | |||||||||
Basic | $ | 0.04 | $ | 0.19 | |||||
Diluted | $ | 0.04 | $ | 0.19 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
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 March 31, 2015 and December 31, 2014 (in thousands). | ||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2015 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 74,836 | $ | — | $ | 74,836 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,013 | — | 16,013 | — | |||||||||||||||||
Corporate equity securities | 6 | 6 | — | — | |||||||||||||||||
$ | 90,855 | $ | 6 | $ | 90,849 | $ | — | ||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Securities available for sale | |||||||||||||||||||||
U.S. agency and mortgage-backed securities | $ | 67,029 | $ | — | $ | 67,029 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 16,257 | — | 16,257 | — | |||||||||||||||||
Corporate equity securities | 6 | 6 | — | — | |||||||||||||||||
$ | 83,292 | $ | 6 | $ | 83,286 | $ | — | ||||||||||||||
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 during the periods (dollars in thousands): | ||||||||||||||||||||
Fair Value Measurements at March 31, 2015 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
March 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2015 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Impaired loans, net | $ | 2,306 | $ | — | $ | — | $ | 2,306 | |||||||||||||
Other real estate owned, net | 1,949 | — | — | 1,949 | |||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
Description | Balance as of | Quoted | Significant | Significant | |||||||||||||||||
December 31, | Prices in | Other | Unobservable | ||||||||||||||||||
2014 | Active | Observable | Inputs | ||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (Level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(Level 1) | |||||||||||||||||||||
Impaired loans, net | $ | 2,976 | $ | — | $ | — | $ | 2,976 | |||||||||||||
Other real estate owned, net | 1,888 | — | — | 1,888 | |||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for March 31, 2015 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable | Range (Weighted- | ||||||||||||||||||
Input | Average) | ||||||||||||||||||||
Impaired loans, net | $ | 2,306 | Property appraisals | Selling cost | 10 | % | |||||||||||||||
Other real estate owned, net | $ | 1,949 | Property appraisals | Selling cost | 7 | % | |||||||||||||||
Quantitative information about Level 3 Fair Value Measurements for December 31, 2014 | |||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable | Range (Weighted- | ||||||||||||||||||
Input | Average) | ||||||||||||||||||||
Impaired loans, net | $ | 2,976 | Property appraisals | Selling cost | 10 | % | |||||||||||||||
Other real estate owned, net | $ | 1,888 | 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 March 31, 2015 and December 31, 2014 are as follows (in thousands): | ||||||||||||||||||||
Fair Value Measurements at March 31, 2015 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 | $ | 9,174 | $ | 9,174 | $ | — | $ | — | $ | 9,174 | |||||||||||
Securities | 90,855 | 6 | 90,849 | — | 90,855 | ||||||||||||||||
Restricted securities | 1,999 | — | 1,999 | — | 1,999 | ||||||||||||||||
Loans, net | 391,746 | — | — | 399,848 | 399,848 | ||||||||||||||||
Bank owned life insurance | 11,431 | — | 11,431 | — | 11,431 | ||||||||||||||||
Accrued interest receivable | 1,256 | — | 1,256 | — | 1,256 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 438,786 | $ | — | $ | 341,812 | $ | 96,995 | $ | 438,807 | |||||||||||
Federal funds purchased | 1,955 | — | 1,955 | — | 1,955 | ||||||||||||||||
Other borrowings | 15,020 | — | — | 15,020 | 15,020 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,547 | 9,547 | ||||||||||||||||
Accrued interest payable | 120 | — | 120 | — | 120 | ||||||||||||||||
Fair Value Measurements at December 31, 2014 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 | $ | 24,845 | $ | 24,845 | $ | — | $ | — | $ | 24,845 | |||||||||||
Securities | 83,292 | 6 | 83,286 | — | 83,292 | ||||||||||||||||
Restricted securities | 1,366 | — | 1,366 | — | 1,366 | ||||||||||||||||
Loans held for sale | 328 | — | 328 | — | 328 | ||||||||||||||||
Loans, net | 371,692 | — | — | 378,930 | 378,930 | ||||||||||||||||
Bank owned life insurance | 11,357 | — | 11,357 | — | 11,357 | ||||||||||||||||
Accrued interest receivable | 1,261 | — | 1,261 | — | 1,261 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 444,338 | $ | — | $ | 342,604 | $ | 101,606 | $ | 444,210 | |||||||||||
Federal funds purchased | 52 | — | 52 | — | 52 | ||||||||||||||||
Other borrowings | 26 | — | — | 26 | 26 | ||||||||||||||||
Trust preferred capital notes | 9,279 | — | — | 9,756 | 9,756 | ||||||||||||||||
Accrued interest payable | 135 | — | 135 | — | 135 |
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of Restricted Stock Units | A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: | ||||||||
March 31, 2015 | |||||||||
Shares | Weighted | ||||||||
Average | |||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Balance at January 1, 2015 | — | $ | — | ||||||
Granted | 12,546 | 9 | |||||||
Vested | (4,182 | ) | 9 | ||||||
Forfeited | — | — | |||||||
Balance at March 31, 2015 | 8,364 | $ | 9 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Equity [Abstract] | |||||||||||||
Schedule of Changes in Component of Accumulated Other Comprehensive Loss | Changes in each component of accumulated other comprehensive loss were as follows (in thousands): | ||||||||||||
Net | Adjustments | Accumulated | |||||||||||
Unrealized | Related to | Other | |||||||||||
Gains (Losses) | Pension | Comprehensive | |||||||||||
on Securities | Benefits | Loss | |||||||||||
Balance at December 31, 2013 | $ | (1,129 | ) | $ | (175 | ) | $ | (1,304 | ) | ||||
Unrealized holding gains (net of tax, $232) | 450 | — | 450 | ||||||||||
Change during period | 450 | — | 450 | ||||||||||
Balance at March 31, 2014 | $ | (679 | ) | $ | (175 | ) | $ | (854 | ) | ||||
Balance at December 31, 2014 | $ | (133 | ) | $ | (1,421 | ) | $ | (1,554 | ) | ||||
Unrealized holding gains (net of tax, $294) | 570 | — | 570 | ||||||||||
Reclassification adjustment (net of tax, ($18)) | 34 | — | 34 | ||||||||||
Change during period | 604 | — | 604 | ||||||||||
Balance at March 31, 2015 | $ | 471 | $ | (1,421 | ) | $ | (950 | ) | |||||
Reclassifications from Accumulated Other Comprehensive Loss | The following tables present information related to reclassifications from accumulated other comprehensive loss for the three month periods ended March 31, 2015 and 2014 (in thousands): | ||||||||||||
Details About Accumulated Other Comprehensive Loss | Amount Reclassified from | Affected Line Item in the Consolidated | |||||||||||
Accumulated Other | Statements of Income | ||||||||||||
Comprehensive Loss | |||||||||||||
For the three months | |||||||||||||
ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Securities available for sale: | |||||||||||||
Net securities losses reclassified into earnings | $ | 52 | $ | — | Net (losses) on sale of securities available for sale | ||||||||
Related income tax benefit | (18 | ) | — | Income tax expense | |||||||||
Total reclassifications | $ | 34 | $ | — | Net of tax | ||||||||
Securities_Summary_of_Amortize
Securities - Summary of Amortized Costs and Fair Values of Securities Available for Sale (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $90,141 | $83,494 |
Gross Unrealized Gains | 1,090 | 704 |
Gross Unrealized (Losses) | -376 | -906 |
Fair Value | 90,855 | 83,292 |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 74,540 | 67,462 |
Gross Unrealized Gains | 650 | 374 |
Gross Unrealized (Losses) | -354 | -807 |
Fair Value | 74,836 | 67,029 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,600 | 16,031 |
Gross Unrealized Gains | 435 | 325 |
Gross Unrealized (Losses) | -22 | -99 |
Fair Value | 16,013 | 16,257 |
Corporate Equity Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1 | 1 |
Gross Unrealized Gains | 5 | 5 |
Fair Value | $6 | $6 |
Securities_Summary_of_Investme
Securities - Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months - Fair Value | $7,438 | $9,392 |
12 months or more - Fair Value | 22,103 | 35,368 |
Total - Fair Value | 29,541 | 44,760 |
Less than 12 months - Unrealized (Loss) | -61 | |
12 months or more - Unrealized (Loss) | -845 | |
Total Unrealized (Loss) | -376 | -906 |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months - Fair Value | 7,438 | 8,677 |
12 months or more - Fair Value | 21,024 | 32,527 |
Total - Fair Value | 28,462 | 41,204 |
Less than 12 months - Unrealized (Loss) | -18 | -60 |
12 months or more - Unrealized (Loss) | -336 | -747 |
Total Unrealized (Loss) | -354 | -807 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months - Fair Value | 715 | |
12 months or more - Fair Value | 1,079 | 2,841 |
Total - Fair Value | 1,079 | 3,556 |
Less than 12 months - Unrealized (Loss) | -1 | |
12 months or more - Unrealized (Loss) | -22 | -98 |
Total Unrealized (Loss) | ($22) | ($99) |
Securities_Additional_Informat
Securities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Obligation | Obligation | |
Securities | Securities | |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Number of U.S. agency and mortgage-backed securities | 19 | 29 |
Number of obligations of state and political subdivisions in an unrealized loss position | 2 | 7 |
Percentage of investment portfolio | 100.00% | 100.00% |
Weighted-average period of re-pricing of portfolio | 3 years 8 months 12 days | 3 years 10 months 24 days |
Impairment recognized | $0 |
Securities_Amortized_Cost_and_
Securities - Amortized Cost and Fair Value of Securities Available for Sale (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Due within one year, Amortized Cost | $0 | |
Due after one year through five years, Amortized Cost | 6,661 | |
Due after five years through ten years, Amortized Cost | 21,289 | |
Due after ten years, Amortized Cost | 62,190 | |
Available-for-sale Equity Securities, Amortized Cost Basis | 1 | |
Amortized Cost | 90,141 | 83,494 |
Due within one year, Fair Value | 0 | |
Due after one year through five years, Fair Value | 6,717 | |
Due after five years through ten years, Fair Value | 21,457 | |
Due after ten years, Fair Value | 62,675 | |
Available for Sale Equity Securities, Fair Value | 6 | |
Available for Sale Securities, Debt and Equity, Fair Value, Total | $90,855 | $83,292 |
Securities_Composition_of_Rest
Securities - Composition of Restricted Securities (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract] | ||
Federal Home Loan Bank stock | $1,103 | $470 |
Federal Reserve Bank stock | 846 | 846 |
Community Bankers' Bank stock | 50 | 50 |
Total Restricted Securities | $1,999 | $1,366 |
Loans_Summary_of_Loans_Detail
Loans - Summary of Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Real estate loans: | ||||
Commercial and industrial loans | $21,420 | $21,166 | ||
Consumer and other loans | 11,983 | 12,240 | ||
Total loans | 398,517 | 378,410 | 359,533 | |
Allowance for loan losses | -6,771 | -6,718 | -10,283 | -10,644 |
Loans, net | 391,746 | 371,692 | ||
Construction and Land Development [Member] | ||||
Real estate loans: | ||||
Real estate loans | 33,344 | 29,475 | ||
Total loans | 33,344 | 29,475 | 33,876 | |
Allowance for loan losses | -1,601 | -1,403 | -2,252 | -2,710 |
Secured by 1-4 Family Residential [Member] | ||||
Real estate loans: | ||||
Real estate loans | 172,874 | 163,727 | ||
Total loans | 172,874 | 163,727 | 147,541 | |
Allowance for loan losses | -952 | -1,204 | -2,950 | -2,975 |
Other Real Estate Loans [Member] | ||||
Real estate loans: | ||||
Real estate loans | 158,896 | 151,802 | ||
Total loans | $158,896 | $151,802 |
Loans_Additional_Information_D
Loans - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Net deferred loan fees | $145 | $130 | |
Total loans | 398,517 | 378,410 | 359,533 |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 11,983 | 12,240 | 12,016 |
Consumer and Other Loans [Member] | Demand Deposit Overdrafts [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $194 | $285 |
Loans_Summary_of_Loan_Classes_
Loans - Summary of Loan Classes and an Aging of Past Due Loans (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | $1,775 | $3,523 | |
60-89 Days Past Due | 168 | 1,300 | |
> 90 Days Past Due | 3,724 | 3,273 | |
Total Past Due | 5,667 | 8,096 | |
Current | 392,850 | 370,314 | |
Total loans | 398,517 | 378,410 | 359,533 |
Non- Accrual Loans | 7,170 | 8,000 | |
90 Days or More Past Due and Accruing | 71 | ||
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 443 | 2,441 | |
60-89 Days Past Due | 71 | ||
> 90 Days Past Due | 71 | ||
Total Past Due | 514 | 2,512 | |
Current | 32,830 | 26,963 | |
Total loans | 33,344 | 29,475 | 33,876 |
Non- Accrual Loans | 1,653 | 1,787 | |
90 Days or More Past Due and Accruing | 71 | ||
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 535 | 504 | |
60-89 Days Past Due | 76 | 323 | |
> 90 Days Past Due | 349 | 754 | |
Total Past Due | 960 | 1,581 | |
Current | 171,914 | 162,146 | |
Total loans | 172,874 | 163,727 | 147,541 |
Non- Accrual Loans | 685 | 1,342 | |
Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 498 | 554 | |
60-89 Days Past Due | 800 | ||
> 90 Days Past Due | 3,304 | 2,519 | |
Total Past Due | 3,802 | 3,873 | |
Current | 155,094 | 147,929 | |
Total loans | 158,896 | 151,802 | |
Non- Accrual Loans | 4,722 | 4,756 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 283 | 10 | |
60-89 Days Past Due | 92 | 106 | |
Total Past Due | 375 | 116 | |
Current | 21,045 | 21,050 | |
Total loans | 21,420 | 21,166 | 23,381 |
Non- Accrual Loans | 110 | 115 | |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
30-59 Days Past Due | 16 | 14 | |
Total Past Due | 16 | 14 | |
Current | 11,967 | 12,226 | |
Total loans | $11,983 | $12,240 | $12,016 |
Loans_Analysis_of_the_Credit_R
Loans - Analysis of the Credit Risk Profile of Each Loan Class (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | $398,517 | $378,410 | $359,533 |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 33,344 | 29,475 | 33,876 |
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 172,874 | 163,727 | 147,541 |
Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 158,896 | 151,802 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 21,420 | 21,166 | 23,381 |
Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 11,983 | 12,240 | 12,016 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 353,057 | 331,359 | |
Pass [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 24,129 | 20,476 | |
Pass [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 162,248 | 152,004 | |
Pass [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 134,037 | 126,211 | |
Pass [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 20,660 | 20,428 | |
Pass [Member] | Consumer and Other Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 11,983 | 12,240 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 22,550 | 23,259 | |
Special Mention [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 3,250 | 2,962 | |
Special Mention [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 4,652 | 5,058 | |
Special Mention [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 14,196 | 14,776 | |
Special Mention [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 452 | 463 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 22,910 | 23,792 | |
Substandard [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 5,965 | 6,037 | |
Substandard [Member] | Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 5,974 | 6,665 | |
Substandard [Member] | Other Real Estate Loans [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | 10,663 | 10,815 | |
Substandard [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total | $308 | $275 |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance by Impairment Methodology and Loans by Impairment Methodology (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Allowance for loan losses: | |||
Beginning Balance | $6,718 | $10,644 | $10,644 |
Charge-offs | -112 | -239 | -927 |
Recoveries | 165 | 78 | 851 |
Provision for (recovery of) loan losses | -200 | -3,850 | |
Ending Balance | 6,771 | 10,283 | 6,718 |
Ending Balance: | |||
Allowance for loan losses, Individually evaluated for impairment | 1,901 | 1,538 | 1,907 |
Allowance for loan losses, Collectively evaluated for impairment | 4,870 | 8,745 | 4,811 |
Loans: | |||
Ending Balance | 398,517 | 359,533 | 378,410 |
Loans, Individually evaluated for impairment | 13,034 | 21,238 | 13,922 |
Loans, Collectively evaluated for impairment | 385,483 | 338,295 | 364,488 |
Construction and Land Development [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 1,403 | 2,710 | 2,710 |
Charge-offs | -91 | ||
Recoveries | 1 | 80 | |
Provision for (recovery of) loan losses | 197 | -458 | -1,296 |
Ending Balance | 1,601 | 2,252 | 1,403 |
Ending Balance: | |||
Allowance for loan losses, Individually evaluated for impairment | 341 | 862 | 245 |
Allowance for loan losses, Collectively evaluated for impairment | 1,260 | 1,390 | 1,158 |
Loans: | |||
Ending Balance | 33,344 | 33,876 | 29,475 |
Loans, Individually evaluated for impairment | 3,071 | 6,568 | 3,205 |
Loans, Collectively evaluated for impairment | 30,273 | 27,308 | 26,270 |
Secured by 1-4 Family Residential [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 1,204 | 2,975 | 2,975 |
Charge-offs | -47 | -71 | -272 |
Recoveries | 34 | 4 | 15 |
Provision for (recovery of) loan losses | -239 | 42 | -1,514 |
Ending Balance | 952 | 2,950 | 1,204 |
Ending Balance: | |||
Allowance for loan losses, Individually evaluated for impairment | 85 | 126 | 173 |
Allowance for loan losses, Collectively evaluated for impairment | 867 | 2,824 | 1,031 |
Loans: | |||
Ending Balance | 172,874 | 147,541 | 163,727 |
Loans, Individually evaluated for impairment | 2,747 | 3,468 | 3,414 |
Loans, Collectively evaluated for impairment | 170,127 | 144,073 | 160,313 |
Other Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 3,658 | 4,418 | 4,418 |
Charge-offs | -203 | ||
Recoveries | 1 | 1 | 509 |
Provision for (recovery of) loan losses | 137 | 89 | -1,066 |
Ending Balance | 3,796 | 4,508 | 3,658 |
Ending Balance: | |||
Allowance for loan losses, Individually evaluated for impairment | 1,447 | 505 | 1,456 |
Allowance for loan losses, Collectively evaluated for impairment | 2,349 | 4,003 | 2,202 |
Loans: | |||
Ending Balance | 158,896 | 142,719 | 151,802 |
Loans, Individually evaluated for impairment | 7,103 | 11,030 | 7,183 |
Loans, Collectively evaluated for impairment | 151,793 | 131,689 | 144,619 |
Commercial and Industrial [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 310 | 442 | 442 |
Charge-offs | -36 | -43 | |
Recoveries | 60 | 1 | 18 |
Provision for (recovery of) loan losses | -82 | 36 | -107 |
Ending Balance | 288 | 443 | 310 |
Ending Balance: | |||
Allowance for loan losses, Individually evaluated for impairment | 28 | 45 | 33 |
Allowance for loan losses, Collectively evaluated for impairment | 260 | 398 | 277 |
Loans: | |||
Ending Balance | 21,420 | 23,381 | 21,166 |
Loans, Individually evaluated for impairment | 113 | 172 | 120 |
Loans, Collectively evaluated for impairment | 21,307 | 23,209 | 21,046 |
Consumer and Other Loans [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 143 | 99 | 99 |
Charge-offs | -65 | -132 | -318 |
Recoveries | 69 | 72 | 229 |
Provision for (recovery of) loan losses | -13 | 91 | 133 |
Ending Balance | 134 | 130 | 143 |
Ending Balance: | |||
Allowance for loan losses, Collectively evaluated for impairment | 134 | 130 | 143 |
Loans: | |||
Ending Balance | 11,983 | 12,016 | 12,240 |
Loans, Collectively evaluated for impairment | $11,983 | $12,016 | $12,240 |
Allowance_for_Loan_losses_Impa
Allowance for Loan losses - Impaired Loans and Related Allowance (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | $14,551 | $25,777 | $15,376 |
Recorded Investment with No Allowance | 8,827 | 16,102 | 9,039 |
Recorded Investment with Allowance | 4,207 | 5,136 | 4,883 |
Total Recorded Investment | 13,034 | 21,238 | 13,922 |
Related Allowance | 1,901 | 1,538 | 1,907 |
Average Recorded Investment | 13,587 | 21,279 | 19,239 |
Interest Income Recognized | 79 | 121 | 385 |
Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,198 | 8,864 | 3,299 |
Recorded Investment with No Allowance | 2,196 | 4,018 | 2,800 |
Recorded Investment with Allowance | 875 | 2,550 | 405 |
Total Recorded Investment | 3,071 | 6,568 | 3,205 |
Related Allowance | 341 | 862 | 245 |
Average Recorded Investment | 3,171 | 6,684 | 5,532 |
Interest Income Recognized | 16 | 11 | 40 |
Secured by 1-4 Family Residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 3,672 | 4,391 | 4,327 |
Recorded Investment with No Allowance | 2,509 | 2,932 | 2,526 |
Recorded Investment with Allowance | 238 | 536 | 888 |
Total Recorded Investment | 2,747 | 3,468 | 3,414 |
Related Allowance | 85 | 126 | 173 |
Average Recorded Investment | 3,149 | 3,313 | 3,433 |
Interest Income Recognized | 29 | 31 | 138 |
Other Real Estate Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 7,559 | 12,346 | 7,623 |
Recorded Investment with No Allowance | 4,119 | 9,139 | 3,708 |
Recorded Investment with Allowance | 2,984 | 1,891 | 3,475 |
Total Recorded Investment | 7,103 | 11,030 | 7,183 |
Related Allowance | 1,447 | 505 | 1,456 |
Average Recorded Investment | 7,149 | 11,082 | 10,115 |
Interest Income Recognized | 34 | 79 | 206 |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance | 122 | 176 | 127 |
Recorded Investment with No Allowance | 3 | 13 | 5 |
Recorded Investment with Allowance | 110 | 159 | 115 |
Total Recorded Investment | 113 | 172 | 120 |
Related Allowance | 28 | 45 | 33 |
Average Recorded Investment | 118 | 200 | 159 |
Interest Income Recognized | $1 |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Contract | Contract | ||
Allowance For Loan Losses [Line Items] | |||
TDRs performing under the restructured terms | $1,800,000 | $1,900,000 | |
Loans modified under TDRs | 0 | 1 | |
Pre-modification recorded investment totaled | 283,000 | ||
Post-modification recorded investment totaled | 344,000 | ||
Troubled debt restructuring loan subsequent default | 0 | 0 | |
Troubled debt restructuring loan subsequent default period | 90 days | ||
Performing Financing Receivable [Member] | |||
Allowance For Loan Losses [Line Items] | |||
TDRs performing under the restructured terms | $782,000 | $790,000 |
Other_Real_Estate_Owned_OREO_A
Other Real Estate Owned (OREO) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate [Line Items] | ||||
Total other real estate owned | $1,949,000 | $1,888,000 | ||
Residential real estate carrying amount included in OREO | 2,074,000 | 2,263,000 | 4,695,000 | |
Net expenses applicable to other real estate owned | 21,000 | 9,000 | 81,000 | |
Residential Real Estate Properties | ||||
Other Real Estate [Line Items] | ||||
Residential real estate carrying amount included in OREO | 228,000 | 0 | ||
Mortgage loans foreclosed | $87,000 |
Other_Real_Estate_Owned_OREO_S
Other Real Estate Owned (OREO) - Summary of Changes in the Balance for OREO (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Real Estate [Abstract] | |||
Balance at the beginning of year, gross | $2,263 | $4,695 | $4,695 |
Transfers in | 228 | 139 | |
Charge-offs | -250 | -2 | -1,302 |
Sales proceeds | -224 | -1,502 | |
Gain on disposition | 57 | 307 | |
Deferred gain recognized | -73 | ||
Depreciation | -1 | ||
Balance at the end of period, gross | 2,074 | 2,263 | |
Less: valuation allowance | -125 | -375 | |
Balance at the end of period, net | $1,949 | $1,888 |
Other_Real_Estate_Owned_OREO_S1
Other Real Estate Owned (OREO) - Summary of Changes in the Valuation Allowance (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Real Estate [Abstract] | |||
Balance at beginning of year | $375 | $1,665 | $1,665 |
Provision for losses | 23 | 12 | |
Charge-offs, net | -250 | -2 | -1,302 |
Balance at end of period | $125 | $1,686 | $375 |
Other_Borrowings_Additional_In
Other Borrowings - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Unused lines of credit | $106,100,000 | $121,100,000 |
Blanket floating lien agreement | 19.00% | |
Borrowings of the Bank from FHLB | 15,000,000 | |
Interest rate | 0.22% | |
Borrowings of Bank, maturity date | 6-Apr-15 | |
Collateral pledged on borrowings including real estate loans | 103,000,000 | 101,900,000 |
Federal Home Loan Bank stock | 1,103,000 | 470,000 |
Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letter of credit from FHLB | 23,000,000 | 23,000,000 |
FHLB [Member] | ||
Debt Instrument [Line Items] | ||
Unused lines of credit | 62,700,000 | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
Borrowings of Bank, maturity date | 3-Jan-16 | |
Borrowings of Bank | 20,000 | 26,000 |
Note payable monthly payments | $2,000 |
Capital_Requirements_Compariso
Capital Requirements - Comparison of Capital of Bank with Minimum Regulatory Guidelines (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Regulatory Capital Requirements [Abstract] | ||
Actual Amount Total Capital (to Risk Weighted Assets) | $72,764 | $71,941 |
Actual Ratio Total Capital (to Risk Weighted Assets) | 18.86% | 19.14% |
Minimum Capital Requirement Amount Total Capital (to Risk Weighted Assets) | 30,859 | 30,077 |
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) | 38,573 | 37,596 |
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) | 67,918 | 67,217 |
Actual Ratio Tier 1 Capital (to Risk Weighted Assets) | 17.61% | 17.88% |
Minimum Capital Requirement Amount Tier 1 Capital (to Risk Weighted Assets) | 23,144 | 15,038 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Risk Weighted Assets) | 6.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Risk Weighted Assets) | 30,859 | 22,557 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Risk Weighted Assets) | 8.00% | 6.00% |
Actual Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | 67,918 | |
Actual Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 17.61% | |
Minimum Capital Requirement Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | 17,358 | |
Minimum Capital Requirement Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 4.50% | |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | 25,073 | |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 6.50% | |
Actual Amount Tier 1 Capital (to Average Assets) | 67,918 | 67,217 |
Actual Ratio Tier 1 Capital (to Average Assets) | 13.17% | 12.90% |
Minimum Capital Requirement Amount Tier 1 Capital (to Average Assets) | 20,628 | 20,841 |
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) | $25,785 | $26,051 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Trust_Preferred_Capital_Notes_
Trust Preferred Capital Notes - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 1.86% | 1.84% |
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 | 2.87% | 2.84% |
Junior subordinated debt securities | $5.20 | |
Securities mandatory redemption date | 17-Jun-34 |
Benefit_Plans_Additional_Infor
Benefit Plans - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Number of highest-paid consecutive years for benefits | 5 years |
Defined Benefit Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Minimum eligibility for full-time employees, age | 21 years |
Amount contributed to pension plan, Expected in future | 0 |
Amount contributed to pension plan | 0 |
Defined Benefit Pension Plan [Member] | Minimum [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Period of service credit by employee | 1 year |
Benefit_Plans_Components_of_Ne
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) (Defined Benefit Pension Plan [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $111 | $87 |
Interest cost | 76 | 67 |
Expected return on plan assets | -79 | -79 |
Amortization of net loss | 22 | |
Net periodic benefit cost | $130 | $75 |
Earnings_per_Common_Share_Comp
Earnings per Common Share - Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
(Numerator): | ||
Net income | $544 | $1,146 |
Effective dividend and accretion on preferred stock | 329 | 220 |
Net income available to common shareholders | $215 | $926 |
(Denominator): | ||
Weighted average shares outstanding - basic | 4,906,981 | 4,901,464 |
Potentially dilutive common shares - restricted stock units | 4,063 | |
Weighted average shares outstanding - diluted | 4,911,044 | 4,901,464 |
Income per common share | ||
Basic | $0.04 | $0.19 |
Diluted | $0.04 | $0.19 |
Fair_Value_Measurements_Balanc
Fair Value Measurements - Balances of Assets Measured at Fair Value on a Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | $90,855 | $83,292 |
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 | 74,836 | 67,029 |
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 | 16,013 | 16,257 |
Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 6 | 6 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 90,855 | 83,292 |
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 | 74,836 | 67,029 |
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 | 16,013 | 16,257 |
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 | 6 | 6 |
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 | 6 | 6 |
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 | 6 | 6 |
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 | 90,849 | 83,286 |
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 | 74,836 | 67,029 |
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 | $16,013 | $16,257 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non recurring fair value adjustments on loans held for sale | $0 | $0 |
Period of maturity as classifies as short-term borrowings | 90 days | |
Fair value of loan commitments and standby letters of credit | $0 | $0 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of real estate collateral | 12 months | |
Period under consideration for valuation of business equipment | 1 year | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of house or building in the process of construction | 1 year |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned, net | $1,949 | $1,888 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,306 | 2,976 |
Other real estate owned, net | 1,949 | 1,888 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 2,306 | 2,976 |
Other real estate owned, net | $1,949 | $1,888 |
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 $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $2,306 | $2,976 |
Fair Value Measurements, Valuation Techniques | Property appraisals | Property appraisals |
Selling cost | 10.00% | 10.00% |
Other Real Estate Owned, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $1,949 | $1,888 |
Fair Value Measurements, Valuation Techniques | Property appraisals | Property appraisals |
Selling cost | 7.00% | 7.00% |
Fair_Value_Measurements_Carryi
Fair Value Measurements - Carrying Values and Estimated Fair Values of Company's Financial Instruments (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets | ||
Securities | $90,855 | $83,292 |
Restricted securities | 1,999 | 1,366 |
Bank owned life insurance | 11,431 | 11,357 |
Accrued interest receivable | 1,256 | 1,261 |
Carrying Amount [Member] | ||
Financial Assets | ||
Cash and short-term investments | 9,174 | 24,845 |
Securities | 90,855 | 83,292 |
Restricted securities | 1,999 | 1,366 |
Loans held for sale | 328 | |
Loans, net | 391,746 | 371,692 |
Bank owned life insurance | 11,431 | 11,357 |
Accrued interest receivable | 1,256 | 1,261 |
Financial Liabilities | ||
Deposits | 438,786 | 444,338 |
Federal funds purchased | 1,955 | 52 |
Other borrowings | 15,020 | 26 |
Trust preferred capital notes | 9,279 | 9,279 |
Accrued interest payable | 120 | 135 |
Fair Value [Member] | ||
Financial Assets | ||
Cash and short-term investments | 9,174 | 24,845 |
Securities | 90,855 | 83,292 |
Restricted securities | 1,999 | 1,366 |
Loans held for sale | 328 | |
Loans, net | 399,848 | 378,930 |
Bank owned life insurance | 11,431 | 11,357 |
Accrued interest receivable | 1,256 | 1,261 |
Financial Liabilities | ||
Deposits | 438,807 | 444,210 |
Federal funds purchased | 1,955 | 52 |
Other borrowings | 15,020 | 26 |
Trust preferred capital notes | 9,547 | 9,756 |
Accrued interest payable | 120 | 135 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Cash and short-term investments | 9,174 | 24,845 |
Securities | 6 | 6 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Securities | 90,849 | 83,286 |
Restricted securities | 1,999 | 1,366 |
Loans held for sale | 328 | |
Bank owned life insurance | 11,431 | 11,357 |
Accrued interest receivable | 1,256 | 1,261 |
Financial Liabilities | ||
Deposits | 341,812 | 342,604 |
Federal funds purchased | 1,955 | 52 |
Accrued interest payable | 120 | 135 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Loans, net | 399,848 | 378,930 |
Financial Liabilities | ||
Deposits | 96,995 | 101,606 |
Other borrowings | 15,020 | 26 |
Trust preferred capital notes | $9,547 | $9,756 |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Preferred stock, shares issued | 14,595 | 14,595 |
Preferred stock, liquidation preference | $1,000 | $1,000 |
Discount on preferred stock amortized period | 5 years | |
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member] | ||
Class of Stock [Line Items] | ||
Preferred stock, shares issued | 13,900 | |
Par value | $1.25 | |
Preferred stock, liquidation preference | $1,000 | |
Fixed Rate Cumulative Perpetual Preferred Stock, Series B [Member] | ||
Class of Stock [Line Items] | ||
Par value | $1.25 | |
Preferred stock, liquidation preference | $1,000 | |
Number of shares | 695 | |
Cumulative dividends of warrant preferred stock | 9.00% | |
Purchase Agreement [Member] | ||
Class of Stock [Line Items] | ||
Cumulative dividends percentage until May 14, 2014 | 5.00% | |
Cumulative dividend thereafter | 9.00% |
Stock_Compensation_Plans_Addit
Stock Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | 13-May-14 |
2014 Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 240,000 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units, granted | 12,546 | |
Restricted stock units, vested | 4,182 | |
Restricted stock units, nonvested outstanding | 8,364 | |
Total unrecognized pre-tax compensation expense related to unvested restricted stock unit awards | $70 |
Stock_Compensation_Plans_Summa
Stock Compensation Plans - Summary of Restricted Stock Units (Detail) (Restricted Stock Units [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2015 | |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Balance at January 1, 2015 | 8,364 | |
Shares, Granted | 12,546 | |
Shares, Vested | -4,182 | |
Shares, Forfeited | 0 | |
Weighted Average Grant Date Fair Value, Granted | $9 | |
Weighted Average Grant Date Fair Value, Vested | $9 | |
Weighted Average Grant Date Fair Value, Forfeited | $0 | |
Weighted Average Grant Date Fair Value, Balance at March 31, 2015 | $9 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, Beginning Balance | ($1,554) | ($1,304) | ||
Unrealized holding gains net of tax | 570 | 450 | ||
Reclassification adjustment, net of tax | 34 | |||
Change during period | 604 | 450 | ||
Accumulated other comprehensive loss, Ending Balance | -950 | -854 | ||
Securities Available for Sale [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, Beginning Balance | -133 | -1,129 | ||
Unrealized holding gains net of tax | 570 | 450 | ||
Reclassification adjustment, net of tax | 34 | |||
Change during period | 604 | 450 | ||
Accumulated other comprehensive loss, Ending Balance | 471 | -679 | ||
Adjustments Related to Pension Benefits [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss, Beginning Balance | -1,421 | -175 | ||
Accumulated other comprehensive loss, Ending Balance | ($1,421) | ($175) | ($1,421) | ($175) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Equity [Abstract] | ||
Unrealized holding gains, tax | $294 | $232 |
Reclassification adjustment, tax | ($18) | $0 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Loss - Reclassifications from Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities losses reclassified into earnings | ($52) | |
Related income tax benefit | -192 | -483 |
Net income | 544 | 1,146 |
Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | Securities Available for Sale [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities losses reclassified into earnings | 52 | |
Related income tax benefit | -18 | |
Net income | $34 |
Acquisition_Additional_Informa
Acquisition - Additional Information (Detail) (Subsequent Event [Member], Bank Of America [Member], USD $) | 0 Months Ended | |
Apr. 17, 2015 | Apr. 17, 2015 | |
Business Acquisition [Line Items] | ||
Amount for acquisition of deposits | $2,200,000 | $2,200,000 |
Total consideration | 6,700,000 | |
Estimated deposit premium | 4,400,000 | 4,400,000 |
Amount for acquisition of premises and equipment | 188,000,000 | 188,000,000 |
Estimated fair value of acquired premises and equipment | 4,600,000 | |
Loans acquired | $0 | $0 |
Virginia [Member] | ||
Business Acquisition [Line Items] | ||
Number of acquired branches | 6 |