Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 14, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MIDSOUTH BANCORP INC | ' | ' |
Entity Central Index Key | '0000745981 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $116,357,698 |
Entity Common Stock, Shares Outstanding | ' | 11,256,712 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks, including required reserves of $9,542 and $14,083, respectively | $43,488 | $46,297 |
Interest-bearing deposits in banks | 13,993 | 20,276 |
Federal funds sold | 2,250 | 7,000 |
Time deposits held in banks | 0 | 881 |
Securities available-for-sale, at fair value (cost of $341,828 at December 31, 2013 and $412,065 at December 31, 2012) | 341,665 | 424,617 |
Securities held-to-maturity (estimated fair value of $151,168 at December 31, 2013 and $156,924 at December 31, 2012) | 155,523 | 153,524 |
Other investments | 11,526 | 8,310 |
Loans | 1,137,554 | 1,046,940 |
Allowance for loan losses | -8,779 | -7,370 |
Loans, net | 1,128,775 | 1,039,570 |
Bank premises and equipment, net | 72,343 | 63,461 |
Accrued interest receivable | 6,692 | 6,691 |
Goodwill | 42,171 | 42,781 |
Intangibles | 7,941 | 9,047 |
Cash surrender value of life insurance | 13,450 | 13,183 |
Other real estate | 6,687 | 7,496 |
Other assets | 4,656 | 8,594 |
Total assets | 1,851,160 | 1,851,728 |
Deposits: | ' | ' |
Noninterest-bearing | 383,257 | 381,083 |
Interest-bearing | 1,135,546 | 1,170,821 |
Total deposits | 1,518,803 | 1,551,904 |
Securities sold under agreements to repurchase | 53,916 | 41,447 |
Short-term Federal Home Loan Bank advances | 25,000 | 0 |
Notes payable | 27,703 | 29,128 |
Junior subordinated debentures | 29,384 | 29,384 |
Other liabilities | 5,605 | 10,624 |
Total liabilities | 1,660,411 | 1,662,487 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.10 par value; 30,000,000 shares authorized, 11,407,196 and 11,386,611 issued and 11,256,712 and 11,236,134 outstanding at December 31, 2013 and December 31, 2012, respectively | 1,141 | 1,139 |
Additional paid-in capital | 111,017 | 110,603 |
Accumulated other comprehensive income | -106 | 8,159 |
Treasury stock- 150,484 and 150,477 shares at December 31, 2013 and 2012, respectively, at cost | -3,286 | -3,286 |
Retained earnings | 39,986 | 30,629 |
Total stockholders' equity | 190,749 | 189,241 |
Total liabilities and stockholders' equity | 1,851,160 | 1,851,728 |
Preferred Stock Series B [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | 32,000 | 32,000 |
Preferred Stock Series C [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock | $9,997 | $9,997 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks, reserves | $9,542 | $14,083 |
Securities available-for-sale, at cost | 341,828 | 412,065 |
Securities held-to-maturity, at fair value | $151,168 | $156,924 |
Stockholders' equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued (in shares) | 11,407,196 | 11,386,611 |
Common stock, outstanding (in shares) | 11,256,712 | 11,236,134 |
Treasury stock (in shares) | 150,484 | 150,477 |
Preferred Stock Series B [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 32,000 | 32,000 |
Preferred stock, outstanding (in shares) | 32,000 | 32,000 |
Preferred Stock Series C [Member] | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, authorized (in shares) | 100,000 | 100,000 |
Preferred stock, issued (in shares) | 99,971 | 99,971 |
Preferred stock, outstanding (in shares) | 99,971 | 99,971 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest income: | ' | ' | ' |
Loans, including fees | $71,016 | $49,776 | $41,887 |
Investment securities: | ' | ' | ' |
Taxable | 8,609 | 8,083 | 5,362 |
Nontaxable | 3,184 | 2,880 | 3,393 |
Other interest income | 394 | 283 | 365 |
Total interest income | 83,203 | 61,022 | 51,007 |
Interest expense: | ' | ' | ' |
Deposits | 3,961 | 4,100 | 4,024 |
Borrowings | 1,232 | 756 | 807 |
Junior subordinated debentures | 1,346 | 984 | 971 |
Total interest expense | 6,539 | 5,840 | 5,802 |
Net interest income | 76,664 | 55,182 | 45,205 |
Provision for loan losses | 3,050 | 2,050 | 3,925 |
Net interest income after provision for loan losses | 73,614 | 53,132 | 41,280 |
Noninterest income: | ' | ' | ' |
Service charges on deposit accounts | 9,225 | 7,430 | 6,921 |
Gain on securities, net | 234 | 204 | 99 |
ATM and debit card income | 6,400 | 4,605 | 3,802 |
Other charges and fees | 3,460 | 2,705 | 2,239 |
Total noninterest income | 19,319 | 14,944 | 13,061 |
Noninterest expenses: | ' | ' | ' |
Salaries and employee benefits | 34,182 | 24,713 | 21,763 |
Occupancy expense | 15,112 | 11,320 | 9,281 |
ATM and debit card expense | 2,399 | 1,559 | 1,256 |
Other | 20,913 | 17,063 | 17,004 |
Total noninterest expense | 72,606 | 54,655 | 49,304 |
Income before income taxes | 20,327 | 13,421 | 5,037 |
Income tax expense | 6,151 | 3,779 | 564 |
Net earnings | 14,176 | 9,642 | 4,473 |
Dividends on preferred stock and accretion of warrants | 1,332 | 1,547 | 1,802 |
Net earnings available to common stockholders | $12,844 | $8,095 | $2,671 |
Earnings per common share: | ' | ' | ' |
Basic (in dollars per share) | $1.14 | $0.77 | $0.27 |
Diluted (in dollars per share) | $1.12 | $0.77 | $0.27 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' |
Net earnings | $14,176 | $9,642 | $4,473 |
Unrealized (losses) gains on securities available-for-sale: | ' | ' | ' |
Unrealized holding (losses) gains arising during the year | -12,481 | 831 | 5,507 |
Less: reclassification adjustment for net gains on sales of securities available-for-sale | -234 | -204 | -99 |
Total other comprehensive (loss) income, before tax | -12,715 | 627 | 5,408 |
Income tax effect related to items of other comprehensive income | 4,450 | -220 | -1,838 |
Total other comprehensive (loss) income, net of tax | -8,265 | 407 | 3,570 |
Total comprehensive income | $5,911 | $10,049 | $8,043 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | ESOP Obligation [Member] | Accumulated Other Comprehensive Income [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
In Thousands, except Share data, unless otherwise specified | ||||||||
Balance at Dec. 31, 2010 | $19,408 | $988 | $89,893 | ($104) | $4,182 | ($3,286) | $25,572 | $136,653 |
Balance (in shares) at Dec. 31, 2010 | 20,000 | 9,880,743 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 0 | 0 | 0 | 0 | 0 | 0 | 4,473 | 4,473 |
Issuance of common stock for acquisitions | 0 | 73 | 8,765 | 0 | 0 | 0 | 0 | 8,838 |
Issuance of common stock for acquisitions (in shares) | 0 | 725,000 | ' | ' | ' | ' | ' | ' |
Dividends on preferred stock and accretion of common stock warrants | 592 | 0 | 0 | 0 | 0 | 0 | -1,242 | -650 |
Redemption of Series A preferred stock | -20,000 | 0 | 0 | 0 | 0 | 0 | 0 | -20,000 |
Redemption of Series A preferred stock (in shares) | -20,000 | 0 | ' | ' | ' | ' | ' | ' |
Issuance of Series B preferred stock | 32,000 | 0 | 0 | 0 | 0 | 0 | 0 | 32,000 |
Issuance of Series B preferred stock (in shares) | 32,000 | 0 | ' | ' | ' | ' | ' | ' |
Dividends on Series B Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | -560 | -560 |
Dividends on common stock | 0 | 0 | 0 | 0 | 0 | 0 | -2,776 | -2,776 |
Exercise of stock options | 0 | 1 | 66 | 0 | 0 | 0 | 0 | 67 |
Exercise of stock options (in shares) | 0 | 10,240 | ' | ' | ' | ' | ' | ' |
Tax benefit resulting from exercise of stock options, net adjustment | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
ESOP compensation expense | 0 | 0 | 42 | 104 | 0 | 0 | 0 | 146 |
Stock option and restricted stock compensation expense | 0 | 0 | 75 | 0 | 0 | 0 | 0 | 75 |
Change in accumulated other comprehensive income | 0 | 0 | 0 | 0 | 3,570 | 0 | 0 | 3,570 |
Balance at Dec. 31, 2011 | 32,000 | 1,062 | 98,842 | 0 | 7,752 | -3,286 | 25,467 | 161,837 |
Balance (in shares) at Dec. 31, 2011 | 32,000 | 10,615,983 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 0 | 0 | 0 | 0 | 0 | 0 | 9,642 | 9,642 |
Issuance of common stock for acquisitions | 0 | 76 | 11,454 | 0 | 0 | 0 | 0 | 11,530 |
Issuance of common stock for acquisitions (in shares) | 0 | 756,511 | ' | ' | ' | ' | ' | ' |
Issuance of Series C preferred stock for acquisitions | 9,997 | 0 | 0 | 0 | 0 | 0 | 0 | 9,997 |
Issuance of Series C preferred stock for acquisitions (in shares) | 99,971 | 0 | ' | ' | ' | ' | ' | ' |
Dividends on Series B Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | -1,547 | -1,547 |
Dividends on common stock | 0 | 0 | 0 | 0 | 0 | 0 | -2,933 | -2,933 |
Exercise of stock options | 0 | 1 | 99 | 0 | 0 | 0 | 0 | 100 |
Exercise of stock options (in shares) | 0 | 14,117 | ' | ' | ' | ' | ' | ' |
Tax benefit resulting from exercise of stock options, net adjustment | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 1 |
Stock option and restricted stock compensation expense | 0 | 0 | 207 | 0 | 0 | 0 | 0 | 207 |
Change in accumulated other comprehensive income | 0 | 0 | 0 | 0 | 407 | 0 | 0 | 407 |
Balance at Dec. 31, 2012 | 41,997 | 1,139 | 110,603 | 0 | 8,159 | -3,286 | 30,629 | 189,241 |
Balance (in shares) at Dec. 31, 2012 | 131,971 | 11,386,611 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 0 | 0 | 0 | 0 | 0 | 0 | 14,176 | 14,176 |
Dividends on Series B Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | -931 | -931 |
Dividends on Series C Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | -400 | -400 |
Dividends on common stock | 0 | 0 | 0 | 0 | 0 | 0 | -3,488 | -3,488 |
Exercise of stock options | 0 | 1 | 68 | 0 | 0 | 0 | 0 | 69 |
Exercise of stock options (in shares) | 0 | 6,155 | ' | ' | ' | ' | ' | ' |
Tax benefit resulting from exercise of stock options, net adjustment | 0 | 0 | 4 | 0 | 0 | 0 | 0 | 4 |
Issuance of restricted stock | 0 | 1 | -1 | 0 | 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 0 | 14,430 | ' | ' | ' | ' | ' | ' |
Tax benefit resulting from issuance of restricted stock | 0 | 0 | 14 | 0 | 0 | 0 | 0 | 14 |
Stock option and restricted stock compensation expense | 0 | 0 | 329 | 0 | 0 | 0 | 0 | 329 |
Change in accumulated other comprehensive income | 0 | 0 | 0 | 0 | -8,265 | 0 | 0 | -8,265 |
Balance at Dec. 31, 2013 | $41,997 | $1,141 | $111,017 | $0 | ($106) | ($3,286) | $39,986 | $190,749 |
Balance (in shares) at Dec. 31, 2013 | 131,971 | 11,407,196 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Statement of Shareholders' Equity [Abstract] | ' | ' | ' |
Dividends on common stock (in dollars per share) | $0.31 | $0.28 | $0.28 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash flows from operating activities: | ' | ' | ' |
Net earnings | $14,176,000 | $9,642,000 | $4,473,000 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 5,568,000 | 3,799,000 | 3,265,000 |
Accretion of purchase accounting adjustments | -5,869,000 | -2,067,000 | -752,000 |
Provision for loan losses | 3,050,000 | 2,050,000 | 3,925,000 |
Deferred tax expense (benefit) | 2,828,000 | 1,651,000 | -491,000 |
Amortization of premiums on securities, net | 4,473,000 | 1,878,000 | 910,000 |
Amortization of other investments | 13,000 | 15,000 | 14,000 |
Net loss on sale of other real estate | 190,000 | 163,000 | 66,000 |
Net write down of other real estate owned | 457,000 | 582,000 | 476,000 |
Net loss on sale/disposal of premises and equipment | 96,000 | 6,000 | 126,000 |
Stock compensation expense | 308,000 | 150,000 | 13,000 |
Restricted stock expense | 21,000 | 57,000 | 62,000 |
Gain on sale and liquidation of securities available-for-sale | -234,000 | -204,000 | -99,000 |
Change in accrued interest receivable | -1,000 | 745,000 | -331,000 |
Change in accrued interest payable | -201,000 | -181,000 | -120,000 |
Change in other assets and liabilities, net | 1,009,000 | -339,000 | 1,667,000 |
Net cash provided by operating activities | 25,884,000 | 17,947,000 | 13,204,000 |
Cash flows from investing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Net change in time deposits in other banks | 881,000 | 1,000 | 5,164,000 |
Proceeds from maturities and calls of securities available-for-sale | 72,728,000 | 146,019,000 | 81,030,000 |
Proceeds from maturities and calls of securities held-to-maturity | 22,946,000 | 24,340,000 | 900,000 |
Proceeds from sale of securities available-for-sale | 55,879,000 | 6,558,000 | 3,895,000 |
Purchases of securities available-for-sale | -68,043,000 | -100,384,000 | -149,332,000 |
Purchases of securities held-to-maturity | -26,382,000 | -38,160,000 | -101,493,000 |
Proceeds from redemption of other investments | 1,600,000 | 500,000 | 82,000 |
Purchases of other investments | -3,220,000 | -189,000 | -449,000 |
Net change in loans | -82,340,000 | -41,335,000 | -49,875,000 |
Purchases of premises and equipment | -14,264,000 | -10,245,000 | -3,656,000 |
Proceeds from sale of premises and equipment | 69,000 | 0 | 9,000 |
Proceeds from sale of other real estate owned | 1,215,000 | 555,000 | 541,000 |
Net cash (used in) provided by investing activities | -38,931,000 | -5,296,000 | -47,506,000 |
Cash flows from financing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Change in deposits | -32,455,000 | -12,432,000 | 15,041,000 |
Change in securities sold under agreements to repurchase | 12,469,000 | -5,539,000 | 2,252,000 |
Borrowings on Federal Home Loan Bank advances | 25,000,000 | 0 | 0 |
Repayments of Federal Home Loan Bank advances | -57,000 | 0 | 0 |
Repayments of notes payable | -1,000,000 | 0 | 0 |
Issuance of Series B preferred stock | 0 | 0 | 32,000,000 |
Redemption of Series A preferred stock | 0 | 0 | -20,000,000 |
Proceeds from exercise of stock options | 69,000 | 100,000 | 67,000 |
Tax benefit due to exercise of stock options | 4,000 | 1,000 | 1,000 |
Tax benefit from issuance of restricted stock | 14,000 | 0 | 0 |
Payment of dividends on preferred stock | -1,519,000 | -1,579,000 | -938,000 |
Payment of dividends on common stock | -3,320,000 | -2,932,000 | -2,725,000 |
Net cash (used in) provided by financing activities | -795,000 | -22,381,000 | 25,698,000 |
Net increase (decrease) in cash and cash equivalents | -13,842,000 | -9,730,000 | -8,604,000 |
Cash and cash equivalents, beginning of year | 73,573,000 | 83,303,000 | 91,907,000 |
Cash and cash equivalents, end of year | 59,731,000 | 73,573,000 | 83,303,000 |
Supplemental cash flow information: | ' | ' | ' |
Interest paid | 6,534,000 | 5,978,000 | 5,608,000 |
Income taxes paid | 3,500,000 | 2,785,000 | 835,000 |
Noncash investing and financing activities: | ' | ' | ' |
Common stock issued in acquisition | 0 | 11,530,000 | 8,838,000 |
Accretion of warrants | 0 | 0 | 592,000 |
Accrued common stock dividends | 913,000 | 745,000 | 744,000 |
Accrued preferred stock dividends | 180,000 | 368,000 | 400,000 |
Net change in loan to ESOP | 0 | 0 | 104,000 |
Change in unrealized gains/losses on securities available-for-sale, net of tax | -8,265,000 | 407,000 | 3,570,000 |
Transfer of loans to other real estate | 1,053,000 | 879,000 | 7,319,000 |
Financed sales of other real estate | 0 | 290,000 | 73,000 |
Jefferson Bank [Member] | ' | ' | ' |
Cash flows from investing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Net cash associated with acquisition | 0 | 0 | 93,800,000 |
First Louisiana National Bank [Member] | ' | ' | ' |
Cash flows from investing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Net cash associated with acquisition | 0 | 0 | 19,708,000 |
Beacon Federal [Member] | ' | ' | ' |
Cash flows from investing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Net cash associated with acquisition | 0 | 0 | 52,170,000 |
Peoples State Bank [Member] | ' | ' | ' |
Cash flows from investing activities, net of effect of purchase acquisitions in 2011 and 2012: | ' | ' | ' |
Net cash associated with acquisition | $0 | $7,044,000 | $0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |
1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation—The consolidated financial statements include the accounts of MidSouth Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries MidSouth Bank, N.A. (the “Bank”) and Financial Services of the South, Inc. (the “Finance Company”), which has liquidated its loan portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. We are subject to regulation under the Bank Holding Company Act of 1956. The Bank is primarily regulated by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). | ||
We are a financial holding company headquartered in Lafayette, Louisiana operating principally in the community banking business by providing banking services to commercial and retail customers through the Bank. The Bank is community oriented and focuses primarily on offering competitive commercial and consumer loan and deposit services to individuals and small to middle market businesses in Louisiana and central and east Texas. | ||
The accounting principles we follow and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, the assessment of goodwill for impairment, and valuation allowances associated with the realization of deferred tax assets which are based on future taxable income. Given the current instability of the economic environment, it is reasonably possible that the methodology of the assessment of potential loan losses, losses on other real estate owned, goodwill impairment, and other fair value measurements could change in the near term or could result in impairment going forward. | ||
A summary of significant accounting policies follows: | ||
Cash and cash equivalents—Cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in other banks with original maturities of less than 90 days, and federal funds sold. | ||
Investment Securities—We determine the appropriate classification of debt securities at the time of purchase and reassesses this classification periodically. Trading account securities are held for resale in anticipation of short‑term market movements. Debt securities are classified as held‑to‑maturity when we have the positive intent and ability to hold the securities to maturity. Securities not classified as held‑to‑maturity or trading are classified as available‑for‑sale. We had no trading account securities during the three years ended December 31, 2013. Held‑to‑maturity securities are stated at amortized cost. Available‑for‑sale securities are stated at fair value, with unrealized gains and losses, net of deferred taxes, reported as a separate component of stockholders’ equity. | ||
The amortized cost of debt securities classified as held‑to‑maturity or available‑for‑sale is adjusted for amortization of premiums and accretion of discounts to maturity or, in the case of mortgage‑backed securities, over the estimated life of the security. Amortization, accretion, and accrued interest are included in interest income on securities. Realized gains and losses on the sale of securities available‑for‑sale are included in earnings and are determined using the specific‑identification method. | ||
Management evaluates investment securities for other than temporary impairment on a quarterly basis. A decline in the fair value of available-for-sale and held-to-maturity securities below cost that is deemed other than temporary is charged to earnings for a decline in value deemed to be credit related and a new cost basis for the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income. | ||
Other Investments—Other investments include Federal Reserve Bank and Federal Home Loan Bank stock, as well as other correspondent bank stocks and our CRA investment which have no readily determined market value and are carried at cost. Due to the redemption provisions of the investments, the fair value equals cost and no impairment exists. | ||
Loans—Loans that we have the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on commercial and real estate mortgage loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Unearned income on installment loans is credited to operations based on a method which approximates the interest method. In-house legal counsel and the collections department are responsible for validating loans past due for reporting purposes. Once loans are determined to be past due, the collections department actively works with customers to bring loans back to current status. | ||
We consider a loan to be impaired when, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans classified as special mention, substandard, or doubtful, based on credit risk rating factors, are reviewed for impairment. Our impaired loans include troubled debt restructurings and performing and nonperforming major loans in which full payment of principal or interest is not expected. Although our policy requires that non-major homogenous loans, which include all loans under $250,000, be evaluated on an overall basis, our current volume of impaired loans allows us to evaluate each impaired loan individually. We calculate the allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. A loan may be impaired but not on nonaccrual status when available information suggests that it is probable the Bank may not receive all contractual principal and interest, however, the loan is still current and payments are received in accordance with the terms of the loan. Payments received for impaired loans not on nonaccrual status are applied to principal and interest. | ||
All impaired loans are reviewed, at minimum, on a quarterly basis. Reviews may be performed more frequently if material information is available before the next scheduled quarterly review. Existing valuations are reviewed to determine if additional discounts or new appraisals are required. After this review, when comparing the resulting collateral valuation to the outstanding loan balance, if the discounted collateral value exceeds the loan balance no specific allocation is reserved. All loans included in our impairment analysis are subject to the same procedure and review, with no distinction given to the dollar amount of the loan. | ||
Our Special Assets Committee meets monthly on troubled credits to review loans with adverse classifications. Loan officers, loan review officers, and in-house legal counsel contribute updated information on each credit, reviewing potential declines or improvements in the borrower’s repayment ability and our collateral position. If deterioration in our collateral position is determined, additional discounts may be applied to the impairment analysis before the new appraisal is received. The committee makes a determination of whether the loans reviewed have reached a point of collateral dependency and sufficient doubt exists as to collectability. As a matter of policy, loans are placed on nonaccrual status when, in the judgment of committee members, the probability of collection of interest is deemed insufficient to warrant further accrual. For loans placed on nonaccrual status, the accrual of interest is discontinued and subsequent payments received are applied to the principal balance. Interest income is recorded after principal has been satisfied and as payments are received. Additionally, loans may be placed on nonaccrual status when the loan becomes 90 days past due and any of the following conditions exist: it becomes evident that the borrower will not make payments or will not or cannot meet the Bank’s terms for the renewal of a matured loan, full repayment of principal and interest is not expected, the loan has a credit quality of substandard, the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future, or foreclosure action is initiated. When a loan is placed on nonaccrual status, previously accrued but unpaid interest for the current year is deducted from interest income. Prior year unpaid interest is charged to the allowance for loan losses. Some loans may continue accruing after 90 days if the loan is in the process of renewing, being paid off, or the underlying collateral fully supports both the principal and accrued interest and the loan is in the process of collection. | ||
Nonaccrual loans may be returned to accrual status if all principal and interest amounts contractually owed are reasonably assured of repayment within a reasonable period and there is a period of at least six months to one year of repayment performance by the borrower depending on the contractual payment terms. Our Special Assets Committee must approve the return of loans to accrual status as well as exceptions to any requirements of the non-accrual policy. | ||
Generally, commercial, financial, and agricultural loans; construction loans; commercial real estate loans; consumer loans; and finance leases which become 90 days delinquent are either in the process of collection through repossession or foreclosure or are deemed currently uncollectible. The portion of loans deemed currently uncollectible, due to insufficient collateral, are charged‑off against the allowance for loan losses. All loans requested to be charged-off must be specifically authorized by in-house legal counsel and the CEO. Requests may be initiated by collection personnel, bank counsel, loan review, and lending personnel. Charge-offs will be reviewed by in-house legal counsel and the CEO to ensure the propriety and accuracy of charge-off recommendations. Factors considered when determining loan collectability and amount to be charged off for all segments in our loan portfolio include delinquent principal or interest repayment, the ability of borrower to make future payments, collateral value of outstanding debt, and the adequacy of guarantors support. It is the responsibility of in-house legal counsel to report all charge-offs to the Board of Directors or its designated Committee for ratification. | ||
Credit Risk Rating—We manage credit risk by observing written underwriting standards and lending policy established by the Board of Directors and management to govern all lending activities. The risk management program requires that each individual loan officer review his or her portfolio on a quarterly basis and assign recommended credit ratings on each loan. These efforts are supplemented by independent reviews performed by a loan review officer and other validations performed by the internal audit department. The results of the reviews are reported directly to the Audit Committee of the Board of Directors. Additionally, Bank concentrations are monitored and reported quarterly for risk rating distributions, major standard industry classification segments, real estate concentrations, and collateral distributions. | ||
Consumer and residential real estate loans are normally graded at inception, and the grade generally remains the same throughout the life of the loan. Loan grades on commercial, financial, and agricultural; construction; commercial real estate; and finance leases may be changed at any time when circumstances warrant, and are at a minimum reviewed quarterly. | ||
Loans can be classified into the following three risk rating groupings: pass, special mention, and substandard/doubtful. Factors considered in determining a risk rating grade include debt service capacity, capital structure/liquidity, management, collateral quality, industry risk, company trends/operating performance, repayment source, revenue diversification/customer concentration, quality of financial information, and financing alternatives. Pass grade signifies the highest quality of loans to loans with reasonable credit risk, which may include borrowers with marginally adequate financial performance, but have the ability to repay the debt. Special mention loans have potential weaknesses that warrant extra attention from the loan officer and other management personnel, but still have the ability to repay the debt. Substandard classification includes loans with well-defined weaknesses with risk of potential loss. Loans classified as doubtful are considered to have little recovery value and are charged off. | ||
Allowance for Loan Losses—The allowance for loan losses is a valuation account available to absorb probable losses on loans. All losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance for loan losses at the time of recovery. Quarterly, we estimate the probable level of losses in the existing portfolio through consideration of such factors including, but not limited to, past loan loss experience; estimated losses in significant credits; known deterioration in concentrations of credit; trends in nonperforming assets; volume and composition of the loan portfolio, including percentages of special mention, substandard and past due loans; lending policies and control systems; known inherent risks in the portfolio; adverse situations that may affect the borrower’s ability to repay; the estimated value of any underlying collateral; current national and local economic conditions, including the unemployment rate, the price of oil, and real estate absorption time; the experience, ability and depth of lending management; collections personnel experience; and the results of examinations of the loan portfolio by regulatory agencies and others. Based on these estimates, the allowance for loan losses is increased by charges to earnings and decreased by charge‑offs (net of recoveries). | ||
The allowance is composed of general reserves and specific reserves. General reserves are determined by applying loss percentages to segments of the portfolio. The loss percentages are based on each segment’s historical loss experience, generally over the past twelve to eighteen months, and adjustment factors derived from conditions in the Bank’s internal and external environment. All loans considered to be impaired are evaluated on an individual basis to determine specific reserve allocations in accordance with GAAP. Loans for which specific reserves are provided are excluded from the calculation of general reserves. | ||
We have an internal loan review department that is independent of the lending function to challenge and corroborate the loan grade assigned by the lender and to provide additional analysis in determining the adequacy of the allowance for loan losses. | ||
Management and the Board of Directors believe the allowance for loan losses is appropriate at December 31, 2013. While determination of the allowance for loan losses is based on available information at a given point in time, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize additions or deductions to the allowance based on their judgment and information available to them at the time of their examination. | ||
Interest Rate Swap Agreements—Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and, as required by ASC 815, the Company records all derivatives at fair value. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional balance of interest rate swap agreements held by the Company at December 31, 2012 and 2013 was minimal and not material to the consolidated balance sheets. | ||
Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation are: | ||
Buildings and improvements | 10 - 40 years | |
Furniture, fixtures, and equipment | 3 - 10 years | |
Automobiles | 3 - 5 years | |
Leasehold improvements are amortized over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. | ||
Other Real Estate Owned—Real estate properties acquired through, or in lieu of, loan foreclosures are initially recorded at the lower of carrying value or fair value less estimated costs to sell based on a current valuation at the time of foreclosure. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenues and expenses from operations and changes in the valuation allowance are charged to earnings. | ||
Goodwill and Other Intangible Assets—Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary. Also, in connection with business combinations involving banks and branch locations, we generally record core deposit intangibles representing the value of the acquired core deposit base. Core deposit intangibles are amortized over the estimated useful life of the deposit base, generally on either a straight-line basis not exceeding 15 years or an accelerated basis over 10 years. The remaining useful lives of core deposit intangibles are evaluated periodically to determine whether events and circumstances warrant revision of the remaining period of amortization. | ||
Cash Surrender Value of Life Insurance—Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Company. The Company is the beneficiary of these policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in other noninterest income. | ||
Repurchase Agreements—Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements. | ||
Deferred Compensation—We record the expense of deferred compensation agreements over the service periods of the persons covered under these agreements. | ||
Income Taxes—Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits, such as net operating loss carry forwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. | ||
In the event the future tax consequences of differences between the financial reporting bases and the tax bases of our assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such assets is required. A valuation allowance is provided when it is more likely than not that a portion or the full amount of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. A deferred tax liability is not recognized for portions of the allowance for loan losses for income tax purposes in excess of the financial statement balance. Such a deferred tax liability will only be recognized when it becomes apparent that those temporary differences will reverse in the foreseeable future. | ||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent more likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | ||
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | ||
Stock-Based Compensation—We expense stock-based compensation based upon the grant date fair value of the related equity award over the requisite service period of the employee. | ||
Basic and Diluted Earnings Per Common Share—Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net earnings by the weighted‑average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is computed by dividing net earnings by the total of the weighted-average number of shares outstanding plus the dilutive effect of outstanding options. The amounts of common stock and additional paid-in capital are adjusted to give retroactive effect to large stock dividends. Small stock dividends, or dividends less than 25% of issued shares at the declaration date, are reflected as an increase in common stock and additional paid-in capital and a decrease in retained earnings for the market value of the shares on the date the dividend is declared. | ||
Comprehensive Income—Generally all recognized revenues, expenses, gains and losses are included in net earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. We present comprehensive income in a separate consolidated statement of comprehensive income. | ||
Statements of Cash Flows—For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits in other banks with original maturities of less than 90 days. Generally, federal funds are sold for one-day periods. | ||
Recent Accounting Pronouncements— In July 2012, the FASB issued ASU 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this Update are intended to reduce cost and complexity by providing an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The Update also enhances consistency of impairment testing guidance among long-lived asset categories by permitting entities to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing for impairment, which is equivalent to the impairment testing requirements for other long-lived assets. Under the amendments in this Update, an entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more-likely-than-not that the asset is impaired. The Update is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 did not have a material impact on the Company’s results of operations, financial position or disclosures. | ||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments in this Update applies to derivatives accounted for in accordance with ASC 815 (Derivatives and Hedging), including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The effective date of this Update is for fiscal years beginning on or after January 1, 2013 and interim periods within those annual periods. Adoption of this Update did not impact the Company’s consolidated financial statements or the interim notes to the consolidated financial statements. | ||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update requires information regarding the impact to net earnings of the reclassification on significant amounts out of accumulated other comprehensive income (“AOCI”) to be presented on either the face of the statement of earnings or in the notes to the financial statements. The amendments in this Update do not change the current reporting requirements for net earnings or AOCI. For public entities, the amendments in this Update are effective prospectively for reporting periods beginning after December 15, 2012. In compliance with the Update, the information required has been included in the Consolidated Statements of Comprehensive Income and Note 17 in these unaudited consolidated financial statements. | ||
Reclassifications—Certain reclassifications have been made to the prior years’ financial statements in order to conform to the classifications adopted for reporting in 2013. The reclassifications had no impact on net income or stockholders’ equity. |
ACQUISITION_ACTIVITY
ACQUISITION ACTIVITY | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
ACQUISITION ACTIVITY [Abstract] | ' | ||||||||||||
ACQUISITION ACTIVITY | ' | ||||||||||||
2 | ACQUISITION ACTIVITY | ||||||||||||
Acquisition of PSB Financial Corporation | |||||||||||||
On December 28, 2012, the Company acquired all of the outstanding common stock of PSB Financial Corporation (“PSB”), the holding company of Many, Louisiana based The Peoples State Bank, for total consideration of $39.5 million, which resulted in goodwill of $18.0 million, as shown in the following table (dollars in thousands): | |||||||||||||
Number of Shares | Amount | ||||||||||||
Equity consideration: | |||||||||||||
Common stock issued | 756,511 | $ | 11,530 | ||||||||||
Preferred stock issued | 99,971 | 9,997 | |||||||||||
Non-equity consideration: | |||||||||||||
Cash | 16,003 | ||||||||||||
Contingent value right | 2,000 | ||||||||||||
Total consideration paid | 39,530 | ||||||||||||
Fair value of net assets acquired including identifiable intangible assets | (21,572 | ) | |||||||||||
Goodwill | $ | 17,958 | |||||||||||
The fair value of the 756,511 shares of common stock issued as part of the equity consideration paid for PSB ($11.5 million) was determined on the basis of the average of the closing market prices for the twenty days prior to the signing of the Agreement and Plan of Merger. | |||||||||||||
The transaction was accounted for using the acquisition method of accounting, and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at their estimated fair values on the acquisition dates. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information relative to fair values become available. Assets acquired, excluding goodwill, totaled $465.0 million, including $260.1 million in loans, $17.8 million in cash, $152.7 million of investment securities, $12.4 million of fixed assets and $2.7 million of identifiable intangible assets. Liabilities assumed were $443.5 million, including $400.6 million of deposits. | |||||||||||||
Preliminary goodwill of $18.0 million is calculated as the purchase premium after adjusting for the fair value of net assets acquired and represents the value expected from the synergies created from combining the businesses as well as the economies of scale expected from combining the operations of the acquired banks with those of the Company. None of the goodwill recognized is expected to be deductible for income tax purposes. | |||||||||||||
The following table provides the assets purchased and the liabilities assumed and the adjustments to fair value (in thousands): | |||||||||||||
As | Fair Value | Fair | |||||||||||
Recorded | |||||||||||||
Assets | By PSB | Adjustments | Value | ||||||||||
Cash | $ | 17,847 | $ | - | $ | 17,847 | |||||||
Federal funds sold | 5,200 | - | 5,200 | ||||||||||
Time deposits held in banks | 172 | - | 172 | ||||||||||
Investment securities | 152,667 | - | 152,667 | ||||||||||
Loans receivable | 269,053 | (9,000 | ) | 260,053 | |||||||||
Fixed assets | 11,845 | 578 | 12,423 | ||||||||||
Core deposit intangible | - | 2,662 | 2,662 | ||||||||||
Cash surrender value of life insurance | 8,234 | - | 8,234 | ||||||||||
Other real estate owned | 838 | - | 838 | ||||||||||
Other assets | 4,635 | 314 | 4,949 | ||||||||||
Total assets acquired | $ | 470,490 | $ | (5,446 | ) | $ | 465,045 | ||||||
Liabilities | |||||||||||||
Deposits | $ | 399,845 | $ | 722 | $ | 400,567 | |||||||
FHLB advances | 25,296 | 1,832 | 27,128 | ||||||||||
Notes payable | 2,000 | - | 2,000 | ||||||||||
Junior subordinated debentures | 13,919 | - | 13,919 | ||||||||||
Other liabilities | 2,606 | (2,747 | ) | (141 | ) | ||||||||
Total liabilities assumed | $ | 443,666 | $ | (193 | ) | 443,473 | |||||||
Fair value of net assets acquired including identifiable intangible assets | $ | 21,572 | |||||||||||
The discounts on loans receivable will be accreted to interest income over the estimated average life of the loans using the level yield method. The core deposit intangible asset is being amortized over a seven-year life on an accelerated basis. The deposit premiums will be amortized over the average life of the related deposits as a reduction of interest expense. The premiums on FHLB advances will be amortized over the life of the related advances as a reduction of interest expense. | |||||||||||||
There were no material operating results of PSB between December 28, 2012 and December 31, 2012. Therefore, the operating results of the Company for the year ended December 31, 2012 includes no operating results for PSB. | |||||||||||||
The following unaudited pro forma information presents the results of operations for the years ended December 31, 2012 and 2011, as if the acquisition had occurred at January 1, 2011 (in thousands). These adjustments include the impact of certain purchase accounting adjustments such as intangible assets amortization and the impact of the increase in the bond amortization as a result of the acquisition. In addition, the $1.2 million in merger expenses related to the acquisition are included for the year ended December 31, 2012. | |||||||||||||
December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Total revenues, net of interest expense | $ | 89,845 | $ | 80,573 | |||||||||
Net income | 14,694 | 10,361 | |||||||||||
Earnings per share – basic | 1.12 | 0.76 | |||||||||||
Earnings per share - diluted | 1.09 | 0.75 | |||||||||||
In many cases, determining the fair value of the acquired assets and assumed liabilities requires the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest. The most significant of those determinations related to the fair valuation of acquired loans. Acquired loans are initially recorded at their acquisition date fair values. The carryover of the allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions including the remaining life of the acquired loans, estimated prepayments, estimated value of the underlying collateral and net present value of cash flows expected to be collected. Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the acquirer will be unable to collect all contractually required payments are specifically identified and analyzed. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. | |||||||||||||
Loans at the acquisition date are presented in the following table (in thousands): | |||||||||||||
Acquired | Acquired | Total | |||||||||||
Impaired | Performing | Acquired | |||||||||||
Loans | Loans | Loans | |||||||||||
Commercial, financial, and agricultural | $ | 82 | $ | 59,011 | $ | 59,093 | |||||||
Real estate – construction | - | 16,431 | 16,431 | ||||||||||
Real estate – commercial | 4,205 | 127,866 | 132,071 | ||||||||||
Real estate – residential | 455 | 34,232 | 34,687 | ||||||||||
Installment loans to individuals | - | 17,652 | 17,652 | ||||||||||
Other | - | 119 | 119 | ||||||||||
Total | $ | 4,742 | $ | 255,311 | $ | 260,053 | |||||||
The following table presents information about the acquired impaired loans at acquisition (in thousands): | |||||||||||||
Contractually required principal and interest payments | $ | 7,449 | |||||||||||
Non-accretable discount | 2,084 | ||||||||||||
Cash flows expected to be collected | 5,365 | ||||||||||||
Accretable discount | 623 | ||||||||||||
Fair value of loans acquired with a deterioration of credit quality | $ | 4,742 | |||||||||||
The following table presents changes in the carrying amount of the accretable yield for purchased impaired and non-impaired loans for the years ended December 31, 2012 and 2013 (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 11,400 | $ | - | |||||||||
Acquisition of PSB | - | 11,400 | |||||||||||
Accretion | (4,821 | ) | - | ||||||||||
Net transfers from nonaccretable difference to accretable yield | 368 | - | |||||||||||
Balance, end of year | $ | 6,947 | $ | 11,400 | |||||||||
In connection with the PSB acquisition, the Company recorded a liability for contingent payment of $2.0 million to stockholders of PSB based on the complete payoff before December 28, 2015 less charge-offs of up to $3.0 million of certain Identified Loans in The Peoples State Bank legacy loan portfolio. Generally, no contingent payment would have been made if the net charge-offs on the Identified Loans exceeded $3.0 million. Following the payoff of these Identified Loans during the second quarter of 2013, the $2.0 million contingent payment was made to the stockholders of PSB. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||
INVESTMENT SECURITIES | ' | ||||||||||||||||||||||||
3 | INVESTMENT SECURITIES | ||||||||||||||||||||||||
The portfolio of securities consisted of the following (in thousands): | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 11,455 | $ | 1 | $ | 191 | $ | 11,265 | |||||||||||||||||
Obligations of state and political subdivisions | 57,925 | 2,296 | 243 | 59,978 | |||||||||||||||||||||
GSE mortgage-backed securities | 146,129 | 2,029 | 2,193 | 145,965 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 73,569 | 212 | 2,894 | 70,887 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 27,082 | 416 | 152 | 27,346 | |||||||||||||||||||||
Other asset-backed securities | 25,204 | 351 | 66 | 25,489 | |||||||||||||||||||||
Collateralized debt obligation | 464 | 271 | - | 735 | |||||||||||||||||||||
$ | 341,828 | $ | 5,576 | $ | 5,739 | $ | 341,665 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 13,422 | $ | 2 | $ | - | $ | 13,424 | |||||||||||||||||
Obligations of state and political subdivisions | 83,093 | 4,328 | - | 87,421 | |||||||||||||||||||||
GSE mortgage-backed securities | 172,932 | 5,887 | - | 178,819 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 101,381 | 652 | 47 | 101,986 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 28,528 | 1,233 | - | 29,761 | |||||||||||||||||||||
Other asset-backed securities | 12,245 | 497 | - | 12,742 | |||||||||||||||||||||
Collateralized debt obligation | 464 | - | - | 464 | |||||||||||||||||||||
$ | 412,065 | $ | 12,599 | $ | 47 | $ | 424,617 | ||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 47,377 | $ | 38 | $ | 2,586 | $ | 44,829 | |||||||||||||||||
GSE mortgage-backed securities | 78,272 | 148 | 1,079 | 77,341 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 14,189 | - | 979 | 13,210 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 15,685 | 103 | - | 15,788 | |||||||||||||||||||||
$ | 155,523 | $ | 289 | $ | 4,644 | $ | 151,168 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 42,900 | $ | 7 | $ | 7 | $ | 42,900 | |||||||||||||||||
GSE mortgage-backed securities | 89,383 | 2,819 | - | 92,202 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 5,009 | - | - | 5,009 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 16,232 | 581 | - | 16,813 | |||||||||||||||||||||
$ | 153,524 | $ | 3,407 | $ | 7 | $ | 156,924 | ||||||||||||||||||
With the exception of 3 private-label collateralized mortgage obligations (“CMOs”) with a combined balance remaining of $59,000 and $96,000 at December 31, 2013 and 2012, respectively, all of the Company’s CMOs are government-sponsored enterprise securities. | |||||||||||||||||||||||||
The amortized cost and fair value of debt securities at December 31, 2013 by contractual maturity are shown below (in thousands). Except for mortgage backed securities, collateralized mortgage obligations, other assets backed securities, and collateralized debt obligations, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 12,070 | $ | 12,228 | |||||||||||||||||||||
Due after one year through five years | 35,119 | 36,194 | |||||||||||||||||||||||
Due after five years through ten years | 17,001 | 17,851 | |||||||||||||||||||||||
Due after ten years | 5,190 | 4,970 | |||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | |||||||||||||||||||||||||
Residential | 219,698 | 216,852 | |||||||||||||||||||||||
Commercial | 27,082 | 27,346 | |||||||||||||||||||||||
Other asset-backed securities | 25,204 | 25,489 | |||||||||||||||||||||||
Collateralized debt obligation | 464 | 735 | |||||||||||||||||||||||
$ | 341,828 | $ | 341,665 | ||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 100 | $ | 100 | |||||||||||||||||||||
Due after one year through five years | 2,198 | 2,182 | |||||||||||||||||||||||
Due after five years through ten years | 7,273 | 7,072 | |||||||||||||||||||||||
Due after ten years | 37,806 | 35,475 | |||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | |||||||||||||||||||||||||
Residential | 92,461 | 90,551 | |||||||||||||||||||||||
Commercial | 15,685 | 15,788 | |||||||||||||||||||||||
$ | 155,523 | $ | 151,168 | ||||||||||||||||||||||
Details concerning investment securities with unrealized losses are as follows (in thousands): | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 10,463 | $ | 191 | $ | - | $ | - | $ | 10,463 | $ | 191 | |||||||||||||
Obligations of state and political subdivisions | 4,256 | 243 | - | - | 4,256 | 243 | |||||||||||||||||||
GSE mortgage-backed securities | 68,028 | 2,193 | - | - | 68,028 | 2,193 | |||||||||||||||||||
Collateralized mortgage obligations: residential | 56,975 | 2,563 | 4,371 | 331 | 61,346 | 2,894 | |||||||||||||||||||
Collateralized mortgage obligations: commercial | 4,282 | 152 | - | - | 4,282 | 152 | |||||||||||||||||||
Other asset-backed securities | 13,099 | 66 | - | - | 13,099 | 66 | |||||||||||||||||||
$ | 157,103 | $ | 5,408 | $ | 4,371 | $ | 331 | $ | 161,474 | $ | 5,739 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Collateralized mortgage obligations: residential | $ | 10,085 | $ | 45 | $ | 96 | $ | 2 | $ | 10,181 | $ | 47 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair Value | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Unrealized | |||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 42,246 | $ | 2,569 | $ | 685 | $ | 17 | $ | 42,931 | $ | 2,586 | |||||||||||||
GSE mortgage-backed securities | 31,042 | 1,079 | - | - | 31,042 | 1,079 | |||||||||||||||||||
Collateralized mortgage obligations: residential | 13,210 | 979 | - | - | 13,210 | 979 | |||||||||||||||||||
$ | 86,498 | $ | 4,627 | $ | 685 | $ | 17 | $ | 87,183 | $ | 4,644 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 1,128 | $ | 7 | $ | - | $ | - | $ | 1,128 | $ | 7 | |||||||||||||
Management evaluates whether unrealized losses on securities represent impairment that is other than temporary on a quarterly basis. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not the Company will be required to sell the securities. If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market’s perception of the issuer’s financial health and the security’s credit quality. If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined. If a credit loss is evident, the amount of the credit loss is charged to earnings and the non-credit related impairment is recognized through other comprehensive income. | |||||||||||||||||||||||||
As of December 31, 2013, 108 securities had unrealized losses totaling 4.01% of the individual securities’ amortized cost basis and 2.09% of the Company’s total amortized cost basis. Five of the 108 securities had been in an unrealized loss position for over twelve months at December 31, 2013. These five securities had an amortized cost basis and unrealized loss of $5.4 million and $348,000, respectively. The unrealized losses on debt securities at December 31, 2013 and 2012 resulted from changing market interest rates over the yields available at the time the underlying securities were purchased. Management identified no impairment related to credit quality. At December 31, 2013 and 2012, management had both the intent and ability to hold impaired securities, and no impairment was evaluated as other than temporary. As a result, no impairment losses were recognized on debt securities during the years ended December 31, 2013, 2012, or 2011. | |||||||||||||||||||||||||
During the year ended December 31, 2013, the Company sold 35 securities classified as available-for-sale at a net gain of $234,000. Of the 35 securities sold, 31 securities were sold with gains totaling $247,000 and four securities were sold at a loss of $13,000. During the year ended December 31, 2012, the Company sold six securities classified as available-for-sale at a net gain of $204,000. Of the six securities sold, five securities were sold with gains totaling $235,000 and one security was sold at a loss of $31,000. | |||||||||||||||||||||||||
Securities with an aggregate carrying value of approximately $259.9 million and $226.2 million at December 31, 2013 and 2012, respectively, were pledged to secure public funds on deposit and for other purposes required or permitted by law. |
LOANS
LOANS | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
LOANS [Abstract] | ' | ||||||||||||||||||||||||||||||||
LOANS | ' | ||||||||||||||||||||||||||||||||
4 | LOANS | ||||||||||||||||||||||||||||||||
The loan portfolio consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 403,976 | $ | 315,655 | |||||||||||||||||||||||||||||
Real estate – construction | 82,691 | 75,334 | |||||||||||||||||||||||||||||||
Real estate – commercial | 397,135 | 414,384 | |||||||||||||||||||||||||||||||
Real estate – residential | 146,841 | 142,858 | |||||||||||||||||||||||||||||||
Installment loans to individuals | 97,459 | 90,561 | |||||||||||||||||||||||||||||||
Lease financing receivable | 5,542 | 5,769 | |||||||||||||||||||||||||||||||
Other | 3,910 | 2,379 | |||||||||||||||||||||||||||||||
1,137,554 | 1,046,940 | ||||||||||||||||||||||||||||||||
Less allowance for loan losses | (8,779 | ) | (7,370 | ) | |||||||||||||||||||||||||||||
$ | 1,128,775 | $ | 1,039,570 | ||||||||||||||||||||||||||||||
The amounts reported in other loans at December 31, 2013 and 2012 includes the overdrawn demand deposit accounts and loans primarily made to non-profit entities reported for each period. | |||||||||||||||||||||||||||||||||
An analysis of the activity in the allowance for loan losses is as follows (in thousands): | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 7,370 | $ | 7,276 | $ | 8,813 | |||||||||||||||||||||||||||
Provision for loan losses | 3,050 | 2,050 | 3,925 | ||||||||||||||||||||||||||||||
Recoveries | 265 | 300 | 310 | ||||||||||||||||||||||||||||||
Loans charged-off | (1,906 | ) | (2,256 | ) | (5,772 | ) | |||||||||||||||||||||||||||
Balance, end of year | $ | 8,779 | $ | 7,370 | $ | 7,276 | |||||||||||||||||||||||||||
During the years ended December 31, 2013, 2012, and 2011, there were approximately $1.1 million, $879,000, and $7.3 million, respectively, of transfers from loans to ORE. Included in the $7.3 million added to ORE in 2011 is one credit totaling $4.9 million secured by a condominium complex. The credit is currently producing positive cash flow from net rental income on a monthly basis. | |||||||||||||||||||||||||||||||||
The Company monitors loan concentrations and evaluates individual customer and aggregate industry leverage, profitability, risk rating distributions, and liquidity for each major standard industry classification segment. At December 31, 2013, one industry segment concentration, the oil and gas industry, aggregate more than 10% of the loan portfolio. The Company’s exposure in the oil and gas industry, including related service and manufacturing industries, totaled approximately $202.1 million, or 17.8% of total loans. Additionally, the Company’s exposure to loans secured by commercial real estate is monitored. At December 31, 2013, loans secured by commercial real estate (including commercial construction and multifamily loans) totaled approximately $462.0 million. Of the $462.0 million, $352.6 million represent CRE loans, 63% of which are secured by owner-occupied commercial properties. Of the $352.6 million in loans secured by commercial real estate, $2.4 million or 0.7% were on nonaccrual status at December 31, 2013. | |||||||||||||||||||||||||||||||||
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Coml, fin, | Construction | Commercial | Residential | Installment | Lease | Other | Total | ||||||||||||||||||||||||||
and agric | loans to | financing receivable | |||||||||||||||||||||||||||||||
individuals | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,535 | $ | 2,147 | $ | 2,166 | $ | 936 | $ | 543 | $ | 41 | $ | 2 | $ | 7,370 | |||||||||||||||||
Charge-offs | (935 | ) | - | (18 | ) | (129 | ) | (824 | ) | - | - | (1,906 | ) | ||||||||||||||||||||
Recoveries | 80 | 8 | 29 | 39 | 109 | - | - | 265 | |||||||||||||||||||||||||
Provision | 3,226 | (1,109 | ) | (788 | ) | 295 | 1,445 | (20 | ) | 1 | 3,050 | ||||||||||||||||||||||
Ending balance | $ | 3,906 | $ | 1,046 | $ | 1,389 | $ | 1,141 | $ | 1,273 | $ | 21 | $ | 3 | $ | 8,779 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 168 | $ | 3 | $ | 54 | $ | 60 | $ | 120 | $ | - | $ | - | $ | 405 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,738 | $ | 1,043 | $ | 1,335 | $ | 1,081 | $ | 1,153 | $ | 21 | $ | 3 | $ | 8,374 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 403,976 | $ | 82,691 | $ | 397,135 | $ | 146,841 | $ | 97,459 | $ | 5,542 | $ | 3,910 | $ | 1,137,554 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,241 | $ | 100 | $ | 2,213 | $ | 900 | $ | 271 | $ | - | $ | - | $ | 4,725 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 402,735 | $ | 82,591 | $ | 394,218 | $ | 145,773 | $ | 97,188 | $ | 5,542 | $ | 3,910 | $ | 1,131,957 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | 704 | $ | 168 | $ | - | $ | - | $ | - | $ | 872 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Coml, fin, | Construction | Commercial | Residential | Installment | Lease | Other | Total | ||||||||||||||||||||||||||
and agric | loans to | financing receivable | |||||||||||||||||||||||||||||||
individuals | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,734 | $ | 1,661 | $ | 2,215 | $ | 936 | $ | 710 | $ | 19 | $ | 1 | $ | 7,276 | |||||||||||||||||
Charge-offs | (1,054 | ) | - | (550 | ) | (126 | ) | (526 | ) | - | - | (2,256 | ) | ||||||||||||||||||||
Recoveries | 181 | 18 | 1 | 2 | 98 | - | - | 300 | |||||||||||||||||||||||||
Provision | 674 | 468 | 500 | 124 | 261 | 22 | 1 | 2,050 | |||||||||||||||||||||||||
Ending balance | $ | 1,535 | $ | 2,147 | $ | 2,166 | $ | 936 | $ | 543 | $ | 41 | $ | 2 | $ | 7,370 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 391 | $ | 57 | $ | 35 | $ | 30 | $ | 114 | $ | - | $ | - | $ | 627 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,144 | $ | 2,090 | $ | 2,131 | $ | 906 | $ | 429 | $ | 41 | $ | 2 | $ | 6,743 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 315,655 | $ | 75,334 | $ | 414,384 | $ | 142,858 | $ | 90,561 | $ | 5,769 | $ | 2,379 | $ | 1,046,940 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,636 | $ | 936 | $ | 2,911 | $ | 1,627 | $ | 330 | $ | - | $ | - | $ | 7,440 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 313,937 | $ | 74,398 | $ | 407,267 | $ | 140,777 | $ | 90,231 | $ | 5,769 | $ | 2,379 | $ | 1,034,758 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 82 | $ | - | $ | 4,206 | $ | 454 | $ | - | $ | - | $ | - | $ | 4,742 | |||||||||||||||||
An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Total Loans | Recorded | |||||||||||||||||||||||||||
Days | Days | than 90 | Past | Investment | |||||||||||||||||||||||||||||
Past Due | Past | Days | Due | > 90 days | |||||||||||||||||||||||||||||
Due | Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 4,350 | $ | 208 | $ | 1,256 | $ | 5,814 | $ | 398,162 | $ | 403,976 | $ | 26 | |||||||||||||||||||
Commercial real estate - construction | 36 | - | 63 | 99 | 64,794 | 64,893 | - | ||||||||||||||||||||||||||
Commercial real estate - other | 1,230 | 1,447 | 2,395 | 5,072 | 392,063 | 397,135 | 141 | ||||||||||||||||||||||||||
Residential - construction | 149 | - | - | 149 | 17,649 | 17,798 | - | ||||||||||||||||||||||||||
Residential - prime | 2,984 | 870 | 307 | 4,161 | 142,680 | 146,841 | - | ||||||||||||||||||||||||||
Consumer - credit card | 36 | - | 7 | 43 | 6,163 | 6,206 | 7 | ||||||||||||||||||||||||||
Consumer - other | 767 | 102 | 269 | 1,138 | 90,115 | 91,253 | 4 | ||||||||||||||||||||||||||
Lease financing receivable | - | - | - | - | 5,542 | 5,542 | - | ||||||||||||||||||||||||||
Other loans | 125 | - | - | 125 | 3,785 | 3,910 | - | ||||||||||||||||||||||||||
$ | 9,677 | $ | 2,627 | $ | 4,297 | $ | 16,601 | $ | 1,120,953 | $ | 1,137,554 | $ | 178 | ||||||||||||||||||||
December 31, 2012 (1) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Total Loans | Recorded | |||||||||||||||||||||||||||
Days | Days | than 90 | Past | Investment | |||||||||||||||||||||||||||||
Past Due | Past | Days | Due | > 90 days | |||||||||||||||||||||||||||||
Due | Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 2,220 | $ | 321 | $ | 2,580 | $ | 5,121 | $ | 310,534 | $ | 315,655 | $ | 1,019 | |||||||||||||||||||
Commercial real estate - construction | 66 | 96 | 101 | 263 | 58,087 | 58,350 | - | ||||||||||||||||||||||||||
Commercial real estate - other | 4,123 | 2,108 | 3,577 | 9,808 | 404,576 | 414,384 | 952 | ||||||||||||||||||||||||||
Residential - construction | - | - | - | - | 16,984 | 16,984 | - | ||||||||||||||||||||||||||
Residential - prime | 1,140 | 239 | 1,121 | 2,500 | 140,358 | 142,858 | - | ||||||||||||||||||||||||||
Consumer - credit card | 24 | 2 | 15 | 41 | 6,766 | 6,807 | 15 | ||||||||||||||||||||||||||
Consumer - other | 421 | 134 | 186 | 741 | 83,013 | 83,754 | - | ||||||||||||||||||||||||||
Lease financing receivable | - | - | - | - | 5,769 | 5,769 | - | ||||||||||||||||||||||||||
Other loans | 87 | - | - | 87 | 2,292 | 2,379 | - | ||||||||||||||||||||||||||
$ | 8,081 | $ | 2,900 | $ | 7,580 | $ | 18,561 | $ | 1,028,379 | $ | 1,046,940 | $ | 1,986 | ||||||||||||||||||||
(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. | |||||||||||||||||||||||||||||||||
Non-accrual loans are as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 (1) | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 1,272 | $ | 1,777 | |||||||||||||||||||||||||||||
Commercial real estate - construction | 100 | 941 | |||||||||||||||||||||||||||||||
Commercial real estate - other | 2,290 | 3,009 | |||||||||||||||||||||||||||||||
Residential - construction | - | - | |||||||||||||||||||||||||||||||
Residential - prime | 1,153 | 2,505 | |||||||||||||||||||||||||||||||
Consumer - credit card | - | - | |||||||||||||||||||||||||||||||
Consumer - other | 284 | 409 | |||||||||||||||||||||||||||||||
Lease financing receivable | - | - | |||||||||||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||||||||||
$ | 5,099 | $ | 8,276 | ||||||||||||||||||||||||||||||
The amount of interest that would have been recorded on nonaccrual loans, had the loans not been classified as nonaccrual, totaled approximately $518,000, $582,000, and $749,000 for the years ended December 31, 2013, 2012, and 2011. Interest actually received on nonaccrual loans at December 31, 2013, 2012, and 2011 was $312,000, $70,000, and $256,000 respectively. | |||||||||||||||||||||||||||||||||
Loans that are individually evaluated for impairment are as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 671 | $ | 1,107 | $ | - | $ | 617 | $ | 3 | |||||||||||||||||||||||
Commercial real estate – construction | 61 | 61 | - | 416 | - | ||||||||||||||||||||||||||||
Commercial real estate – other | 1,850 | 2,324 | - | 2,190 | 8 | ||||||||||||||||||||||||||||
Residential – prime | 525 | 525 | - | 1,050 | 14 | ||||||||||||||||||||||||||||
Consumer – other | 66 | 66 | - | 90 | 1 | ||||||||||||||||||||||||||||
Subtotal: | 3,173 | 4,083 | - | 4,363 | 26 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | 570 | 570 | 168 | 821 | 3 | ||||||||||||||||||||||||||||
Commercial real estate – construction | 39 | 39 | 3 | 102 | 1 | ||||||||||||||||||||||||||||
Commercial real estate – other | 363 | 363 | 54 | 372 | 11 | ||||||||||||||||||||||||||||
Residential – prime | 375 | 395 | 60 | 214 | 4 | ||||||||||||||||||||||||||||
Consumer – other | 205 | 205 | 120 | 211 | 2 | ||||||||||||||||||||||||||||
Subtotal: | 1,552 | 1,572 | 405 | 1,720 | 21 | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | 3,554 | 4,464 | 225 | 4,518 | 26 | ||||||||||||||||||||||||||||
Residential | 900 | 920 | 60 | 1,264 | 18 | ||||||||||||||||||||||||||||
Consumer | 271 | 271 | 120 | 301 | 3 | ||||||||||||||||||||||||||||
Grand total: | $ | 4,725 | $ | 5,655 | $ | 405 | $ | 6,083 | $ | 47 | |||||||||||||||||||||||
(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 564 | $ | 675 | $ | - | $ | 861 | $ | 5 | |||||||||||||||||||||||
Commercial real estate – construction | 771 | 770 | - | 834 | 1 | ||||||||||||||||||||||||||||
Commercial real estate – other | 2,530 | 3,059 | - | 1,780 | 38 | ||||||||||||||||||||||||||||
Residential – prime | 1,575 | 1,575 | - | 1,213 | 26 | ||||||||||||||||||||||||||||
Consumer – other | 114 | 122 | - | 81 | 1 | ||||||||||||||||||||||||||||
Subtotal: | 5,554 | 6,201 | - | 4,769 | 71 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | 1,072 | 1,072 | 391 | 1,128 | 21 | ||||||||||||||||||||||||||||
Commercial real estate – construction | 165 | 165 | 57 | 85 | 7 | ||||||||||||||||||||||||||||
Commercial real estate – other | 381 | 381 | 35 | 811 | 3 | ||||||||||||||||||||||||||||
Residential – prime | 52 | 52 | 30 | 172 | 4 | ||||||||||||||||||||||||||||
Consumer – other | 216 | 216 | 114 | 228 | 6 | ||||||||||||||||||||||||||||
Subtotal: | 1,886 | 1,886 | 627 | 2,424 | 41 | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | 5,483 | 6,122 | 483 | 5,499 | 75 | ||||||||||||||||||||||||||||
Residential | 1,627 | 1,627 | 30 | 1,385 | 30 | ||||||||||||||||||||||||||||
Consumer | 330 | 338 | 114 | 309 | 7 | ||||||||||||||||||||||||||||
Grand total: | $ | 7,440 | $ | 8,087 | $ | 627 | $ | 7,193 | $ | 112 | |||||||||||||||||||||||
The following tables present the classes of loans by risk rating (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial, | Commercial | Commercial | Percentage | ||||||||||||||||||||||||||||||
financial, and agricultural | real estate –construction | real estate – | of Total | ||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||
Pass | $ | 397,513 | $ | 63,577 | $ | 371,618 | 96.15 | % | |||||||||||||||||||||||||
Special mention | 2,962 | 49 | 8,781 | 1.36 | % | ||||||||||||||||||||||||||||
Substandard | 3,272 | 1,267 | 16,736 | 2.46 | % | ||||||||||||||||||||||||||||
Doubtful | 229 | - | - | 0.03 | % | ||||||||||||||||||||||||||||
$ | 403,976 | $ | 64,893 | $ | 397,135 | 100 | % | ||||||||||||||||||||||||||
Consumer Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Residential – construction | Residential – | Residential – | Percentage | ||||||||||||||||||||||||||||||
prime | subprime | of Total | |||||||||||||||||||||||||||||||
Pass | $ | 17,798 | $ | 143,790 | $ | - | 98.15 | % | |||||||||||||||||||||||||
Special mention | - | 548 | - | 0.33 | % | ||||||||||||||||||||||||||||
Substandard | - | 2,503 | - | 1.52 | % | ||||||||||||||||||||||||||||
$ | 17,798 | $ | 146,841 | $ | - | 100 | % | ||||||||||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Consumer - | Consumer – | Lease | Other | Percentage of | |||||||||||||||||||||||||||||
credit card | other | financing | Total | ||||||||||||||||||||||||||||||
receivable | |||||||||||||||||||||||||||||||||
Performing | $ | 6,196 | $ | 90,978 | $ | 5,542 | $ | 3,910 | 99.73 | % | |||||||||||||||||||||||
Nonperforming | 10 | 275 | - | - | 0.27 | % | |||||||||||||||||||||||||||
$ | 6,206 | $ | 91,253 | $ | 5,542 | $ | 3,910 | 100 | % | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial, | Commercial | Commercial | Percentage | ||||||||||||||||||||||||||||||
financial, and agricultural | real estate –construction | real estate – | of Total | ||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||
Pass | $ | 304,219 | $ | 54,737 | $ | 396,077 | 95.76 | % | |||||||||||||||||||||||||
Special mention | 5,748 | 684 | 6,224 | 1.61 | % | ||||||||||||||||||||||||||||
Substandard | 4,503 | 2,925 | 7,514 | 1.9 | % | ||||||||||||||||||||||||||||
Doubtful | 1,185 | 4 | 4,569 | 0.73 | % | ||||||||||||||||||||||||||||
$ | 315,655 | $ | 58,350 | $ | 414,384 | 100 | % | ||||||||||||||||||||||||||
Consumer Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Residential – construction | Residential – | Residential | Percentage | ||||||||||||||||||||||||||||||
prime | – subprime | of Total | |||||||||||||||||||||||||||||||
Pass | $ | 16,785 | $ | 137,681 | $ | - | 96.64 | % | |||||||||||||||||||||||||
Special mention | - | 1,612 | - | 1.01 | % | ||||||||||||||||||||||||||||
Substandard | 199 | 3,565 | - | 2.35 | % | ||||||||||||||||||||||||||||
$ | 16,984 | $ | 142,858 | $ | - | 100 | % | ||||||||||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Consumer - | Consumer – | Lease | Other | Percentage | |||||||||||||||||||||||||||||
credit card | other | financing | of Total | ||||||||||||||||||||||||||||||
receivable | |||||||||||||||||||||||||||||||||
Performing | $ | 6,792 | $ | 83,347 | $ | 5,769 | $ | 2,379 | 99.57 | % | |||||||||||||||||||||||
Nonperforming | 15 | 407 | - | - | 0.43 | % | |||||||||||||||||||||||||||
$ | 6,807 | $ | 83,754 | $ | 5,769 | $ | 2,379 | 100 | % | ||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
A troubled debt restructuring (“TDR”) is a restructuring of a debt made by the Company to a debtor for economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider. The Company grants the concession in an attempt to protect as much of its investment as possible. | |||||||||||||||||||||||||||||||||
Information about the Company’s TDRs is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Current | Past Due | Nonaccrual | Total TDRs | ||||||||||||||||||||||||||||||
Greater | TDRs | ||||||||||||||||||||||||||||||||
Than 30 | |||||||||||||||||||||||||||||||||
Days | |||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | - | $ | 23 | $ | 233 | $ | 256 | |||||||||||||||||||||||||
Real estate - commercial | 156 | - | - | 156 | |||||||||||||||||||||||||||||
$ | 156 | $ | 23 | $ | 233 | $ | 412 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Current | Past Due | Nonaccrual | Total TDRs | ||||||||||||||||||||||||||||||
Greater | TDRs | ||||||||||||||||||||||||||||||||
Than 30 | |||||||||||||||||||||||||||||||||
Days | |||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | - | $ | - | $ | 232 | $ | 232 | |||||||||||||||||||||||||
Real estate - commercial | 3,905 | - | - | 3,905 | |||||||||||||||||||||||||||||
$ | 3,905 | $ | - | $ | 232 | $ | 4,137 | ||||||||||||||||||||||||||
The $3.7 million decrease from December 31, 2012 resulted primarily from payoffs related to two commercial credits previously classified as TDRs. During the year ended December 31, 2013, one loan with a pre-modification balance of $27,000 was identified as a TDR through modification of the original loan terms, and there were no defaults on any loans that were modified as TDRs during the preceding twelve months. Of the $4.1 million of TDRs at December 31, 2012, $3.9 million was acquired from PSB and included four credits, two of which were large commercial credits. There were no loans added to TDR status during the year ended December 31, 2012. Four TDRs totaling $259,000 defaulted during the year ended December 31, 2012. For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of December 31, 2013, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs. | |||||||||||||||||||||||||||||||||
In the opinion of management, all transactions entered into between the Company and such related parties have been and are made in the ordinary course of business, on substantially the same terms and conditions, including interest rates and collateral, as similar transactions with unaffiliated persons and do not involve more than the normal risk of collection. | |||||||||||||||||||||||||||||||||
An analysis of the 2013 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands): | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 6,921 | |||||||||||||||||||||||||||||||
New loans | - | ||||||||||||||||||||||||||||||||
Repayments and adjustments | (3,807 | ) | |||||||||||||||||||||||||||||||
Balance, end of year | $ | 3,114 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | ||||||||
PREMISES AND EQUIPMENT | ' | ||||||||
5 | PREMISES AND EQUIPMENT | ||||||||
Premises and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land | $ | 16,771 | $ | 14,949 | |||||
Buildings and improvements | 46,091 | 40,505 | |||||||
Furniture, fixtures, and equipment | 26,244 | 23,775 | |||||||
Automobiles | 1,299 | 812 | |||||||
Leasehold improvements | 10,146 | 10,047 | |||||||
Construction-in-process | 4,489 | 1,562 | |||||||
105,040 | 91,650 | ||||||||
Less accumulated depreciation and amortization | (32,697 | ) | (28,189 | ) | |||||
$ | 72,343 | $ | 63,461 | ||||||
Depreciation expense totaled approximately $5.6 million, $3.8 million, and $3.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||
6 | GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||
Changes to the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are provided in the following table (in thousands): | |||||||||
Balance, December 31, 2011 | $ | 24,959 | |||||||
Adjustment to goodwill | (136 | ) | |||||||
Goodwill acquired during the year | 17,958 | ||||||||
Balance, December 31, 2012 | 42,781 | ||||||||
Adjustment to goodwill | (610 | ) | |||||||
Balance, December 31, 2013 | $ | 42,171 | |||||||
The goodwill acquired during the year ended December 31, 2012 was a result of the PSB acquisition completed during the fourth quarter. The adjustments to goodwill made during the year ended December 31, 2013 included reductions resulting from reclassification of a $415,000 liability assumed, a $351,000 increase in the value of fixed assets acquired and a $190,000 increase in the amount of income tax receivable recorded from the PSB acquisition. Additionally, the amount of increases in goodwill recorded in the PSB acquisition included a $254,000 market value adjustment on two bonds held in the investment portfolio and a $36,000 increase to the amount of income tax payable recorded from the PSB acquisition. The adjustments were made as additional information existing at the time of the acquisition was reviewed. Net of deferred taxes, the adjustments resulted in a $610,000 reduction to goodwill recorded in the PSB acquisition. The adjustments to goodwill had no impact on net earnings or stockholders’ equity. | |||||||||
A summary of core deposit intangible assets as of December 31, 2013 and 2012 is as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Gross carrying amount | $ | 11,674 | $ | 11,674 | |||||
Less accumulated amortization | (3,733 | ) | (2,627 | ) | |||||
Net carrying amount | $ | 7,941 | $ | 9,047 | |||||
During 2012, $2.7 million of core deposit intangibles were recorded as a result of the deposits acquired in the 2012 acquisition. | |||||||||
Amortization expense on the core deposit intangible assets totaled approximately $1.1 million in 2013, $762,000 in 2012, and $230,000 in 2011. | |||||||||
The estimated amortization expense on the core deposit intangible assets for the five succeeding years and thereafter is as follows (in thousands): | |||||||||
2014 | $ | 1,106 | |||||||
2015 | 1,106 | ||||||||
2016 | 1,106 | ||||||||
2017 | 1,106 | ||||||||
2018 | 1,106 | ||||||||
Thereafter | 2,411 | ||||||||
$ | 7,941 |
DEPOSITS
DEPOSITS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
DEPOSITS [Abstract] | ' | ||||||||
DEPOSITS | ' | ||||||||
7 | DEPOSITS | ||||||||
Deposits consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Noninterest-bearing | $ | 383,257 | $ | 381,083 | |||||
Savings and money market | 465,748 | 402,121 | |||||||
NOW accounts | 429,279 | 456,222 | |||||||
Time deposits less than $100 | 112,782 | 133,304 | |||||||
Time deposits $100 or more | 127,737 | 179,174 | |||||||
$ | 1,518,803 | $ | 1,551,904 | ||||||
Time deposits held consist primarily of certificates of deposits. The maturities for these deposits at December 31, 2013 are as follows (in thousands): | |||||||||
2014 | $ | 177,339 | |||||||
2015 | 41,369 | ||||||||
2016 | 11,730 | ||||||||
2017 | 5,610 | ||||||||
2018 | 4,470 | ||||||||
Thereafter | 1 | ||||||||
$ | 240,519 | ||||||||
Deposits from related parties totaled approximately $16.4 million and $29.1 million at December 31, 2013 and 2012, respectively. |
SECURITIES_SOLD_UNDER_AGREEMEN
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended | |
Dec. 31, 2013 | ||
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | ' | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | ' | |
8 | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | |
Securities sold under agreements to repurchase totaled $53.9 million and $41.4 million at December 31, 2013 and 2012, respectively. | ||
At December 31, 2013 and 2012, retail repurchase agreements, defined as securities sold under agreements to repurchase from our customers, totaled $41.4 million and $28.9 million, respectively. These retail repurchase agreements are secured short term borrowings from customers, which may be drawn on demand. The agreements bear interest at a rate determined by us. The average rate of the outstanding agreements at December 31, 2013 and 2012 was 0.43% and 0.44%. The Company had pledged securities with an approximate market value of $51.8 million and $52.7 million as collateral at December 31, 2013 and 2012, respectively. | ||
Also included in securities sold under agreements to repurchase is a $12.5 million repurchase agreement the Company entered into with CitiGroup Global Markets, Inc. (“CGMI”) effective August 9, 2007. Under the terms of the repurchase agreement, interest is payable quarterly based on a floating rate equal to the 3-month LIBOR for the first 12 months of the agreement and a fixed rate of 4.57% for the remainder of the term. The rate at December 31, 2013 was 4.57%. The repurchase date is scheduled for August 9, 2017; however, the agreement may be called by CGMI quarterly. The Company had pledged securities with a market value $15.7 million and $19.5 million as collateral at December 31, 2013 and 2012, respectively. | ||
In 2013, 2012, and 2011, the Company did not have an average balance in any category of short-term borrowings including retail repurchase agreements, reverse repurchase agreements, federal funds purchased, or FRB discount window that exceeded 30% of our stockholders’ equity for such year. |
SHORTTERM_FEDERAL_HOME_LOAN_BA
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended | |
Dec. 31, 2013 | ||
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES [Abstract] | ' | |
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES | ' | |
9 | SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES | |
Short-term FHLB advances totaled $25.0 million at December 31, 2013. There were no short-term FHLB advances outstanding at December 31, 2012. The short-term FHLB advances at December 31, 2013 consisted of one FHLB advance with a maturity of 87 days at a fixed interest rate of 0.15%. | ||
The short-term and long-term FHLB advances are collateralized by a blanket lien on first mortgages and other qualifying loans totaling $180.6 million. | ||
As of December 31, 2013 and 2012, the Company had $130.4 million and $206.1 million, respectively, of additional FHLB advances available. |
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
NOTES PAYABLE [Abstract] | ' | ||||||||
NOTES PAYABLE | ' | ||||||||
10 | NOTES PAYABLE | ||||||||
Notes payable at December 31, 2013 and 2012 is summarized as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term Federal Home Loan Bank advances | $ | 26,703 | $ | 27,128 | |||||
Notes payable – First National Bankers Bank | 1,000 | 2,000 | |||||||
$ | 27,703 | $ | 29,128 | ||||||
The scheduled maturities of long-term FHLB advances at December 31, 2013 are summarized as follows (in thousands): | |||||||||
Amount | Weighted | ||||||||
Average Rate | |||||||||
2014 | $ | 426 | 5.057 | % | |||||
2015 | 426 | 5.057 | % | ||||||
2016 | 427 | 5.057 | % | ||||||
2017 | 15,403 | 3.412 | % | ||||||
2019 | 10,021 | 1.985 | % | ||||||
Total FHLB advances | $ | 26,703 | |||||||
The notes payable with First National Bankers Bank requires annual payments of $250,000 and bears an interest rate equal to New York Prime. | |||||||||
The scheduled maturities of the notes payable with First National Bankers Bank as of December 31, 2013 is as follows (in thousands): | |||||||||
2014 | $ | 250 | |||||||
2015 | 250 | ||||||||
2016 | 250 | ||||||||
2017 | 250 | ||||||||
$ | 1,000 |
JUNIOR_SUBORDINATED_DEBENTURES
JUNIOR SUBORDINATED DEBENTURES | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
JUNIOR SUBORDINATED DEBENTURES [Abstract] | ' | ||||||||||||||
JUNIOR SUBORDINATED DEBENTURES | ' | ||||||||||||||
11 | JUNIOR SUBORDINATED DEBENTURES | ||||||||||||||
A description of the junior subordinated debentures outstanding is as follows (in thousands): | |||||||||||||||
December 31, | |||||||||||||||
Date Issued | Maturity Date | Interest Rate | Callable After | 2013 | 2012 | ||||||||||
22-Feb-01 | 22-Feb-31 | 10.20% | 22-Feb-11 | $ | 7,217 | $ | 7,217 | ||||||||
July 31, 20011 | 9-Jul-31 | 3 month LIBOR plus 3.30% | 31-Jul-06 | 5,671 | 5,671 | ||||||||||
20-Sep-04 | 20-Sep-34 | 3 month LIBOR plus 2.50% | 20-Sep-09 | 8,248 | 8,248 | ||||||||||
October 12, 20061 | 12-Oct-36 | 3 month LIBOR plus 1.85% | 26-Jun-11 | 5,155 | 5,155 | ||||||||||
June 21, 20071 | 21-Jun-37 | 3 month LIBOR plus 1.70% | 15-Jun-12 | 3,093 | 3,093 | ||||||||||
$ | 29,384 | $ | 29,384 | ||||||||||||
(1) Assumed in PSB acquisition. | |||||||||||||||
The trusts are considered variable-interest entities (“VIE”). The Trusts are not consolidated with the Company since the Company is not the primary beneficiary of the VIE. Accordingly, the Company does not report the securities issued by the Trusts as liabilities, and instead reports as liabilities the junior subordinated debentures issued by the Company and held by the Trusts, as these are not eliminated in the consolidation. The Trust Preferred Securities are recorded as junior subordinated debentures on the balance sheets, but subject to certain limitations qualify for Tier 1 capital for regulatory capital purposes. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
12 | COMMITMENTS AND CONTINGENCIES | ||||
At December 31, 2013, future annual minimum rental payments due under non-cancellable operating leases are as follows (in thousands): | |||||
2014 | $ | 2,194 | |||
2015 | 2,001 | ||||
2016 | 1,702 | ||||
2017 | 1,485 | ||||
2018 | 1,229 | ||||
Thereafter | 10,159 | ||||
$ | 18,770 | ||||
Rental expense under operating leases for 2013, 2012, and 2011 was approximately $2.6 million, $2.5 million, and $2.0 million, respectively. | |||||
The Company is party to various legal proceedings arising in the ordinary course of business. In management’s opinion, the ultimate resolution of these legal proceedings will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. | |||||
At December 31, 2013, the Company had borrowing lines available through the Bank with the FHLB of Dallas and other correspondent banks. The Bank had approximately $130.4 million available, subject to available collateral, under a secured line of credit with the FHLB of Dallas. Additional federal funds lines of credit were available through correspondent banks with approximately $33.5 million available for overnight borrowing at December 31, 2013. Additionally, $206.5 million in loan collateral is pledged under a Borrower-in-Custody line with the FRB-Atlanta. As of December 31, 2013, the Company had no borrowings with the FRB-Atlanta. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
13 | INCOME TAXES | ||||||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 5,359 | $ | 6,325 | |||||||||
Alternative minimum tax credit | - | 1,300 | |||||||||||
Other | 2,193 | 2,575 | |||||||||||
Total deferred tax assets | 7,552 | 10,200 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment | 5,153 | 4,958 | |||||||||||
FHLB stock dividends | 59 | 57 | |||||||||||
Unrealized gains on securities | 1,227 | 5,914 | |||||||||||
Other | 1,884 | 1,747 | |||||||||||
Total deferred tax liabilities | 8,323 | 12,676 | |||||||||||
Net deferred tax liability | $ | 771 | $ | 2,476 | |||||||||
Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, we believe that it is more likely than not that we will realize the benefits of these deductible differences existing at December 31, 2013. Therefore, no valuation allowance is necessary at this time. The net deferred tax liability is included in other liabilities on the consolidated balance sheets. | |||||||||||||
Components of income tax expense are as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 3,323 | $ | 2,128 | $ | 1,055 | |||||||
Deferred expense (benefit) | 2,828 | 1,651 | (491 | ) | |||||||||
Total income tax expense | $ | 6,151 | $ | 3,779 | $ | 564 | |||||||
The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% for 2013 and 2012 and 34% for 2011 on pre-tax income as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Taxes calculated at statutory rate | $ | 7,114 | $ | 4,697 | $ | 1,713 | |||||||
Increase (decrease) resulting from: | |||||||||||||
Tax-exempt interest, net | (1,095 | ) | (988 | ) | (1,121 | ) | |||||||
Tax credits | - | - | - | ||||||||||
Other | 132 | 70 | (28 | ) | |||||||||
$ | 6,151 | $ | 3,779 | $ | 564 | ||||||||
The Company’s federal income tax returns are open and subject to examination from the 2010 tax return year and forward. The various state income and franchise tax returns are generally open from the 2010 and later tax return years based on individual state statutes of limitation. We are not currently under examination by federal or state tax authorities for the 2010, 2011, or 2012 tax years. |
EMPLOYEE_BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended | |
Dec. 31, 2013 | ||
EMPLOYEE BENEFITS [Abstract] | ' | |
EMPLOYEE BENEFITS | ' | |
14 | EMPLOYEE BENEFITS | |
The Company sponsors a leveraged employee stock ownership plan (“ESOP”) that covers all employees who meet minimum age and service requirements. The Company makes annual contributions to the ESOP in amounts as determined by the Board of Directors. These contributions are used to pay debt service and purchase additional shares. In past years, certain ESOP shares were pledged as collateral for debt. As the debt was repaid, shares were released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. The most recent borrowing transaction occurred on February 5, 2009, when the ESOP borrowed $300,000 payable to MidSouth Bank, N.A. A total of 25,000 shares at $9.89 per share and 5,828 shares at $9.05 per share were purchased with the loan proceeds on February 6, 2009 and February 19, 2009, respectively. The balance of the note was paid in full on November 10, 2011. Because the source of the loan payments are contributions received by the ESOP from the Company, the related notes receivable is shown as a reduction of stockholders’ equity. In accordance with GAAP, compensation costs relating to shares purchased are based on the fair value of shares committed to be released. The unreleased shares are not considered outstanding in the computation of earnings per common share. Dividends received on ESOP shares are allocated based on shares held for the benefit of each participant and used to purchase additional shares of stock for each participant. ESOP compensation expense consisting of cash contributions for 2013 and 2012 was approximately $720,000 and $428,000, respectively. ESOP compensation expense consisting of both cash contributions and shares committed to be released for 2011 was approximately $469,000. All shares were released for allocation by the end of 2011. The cost basis of the shares released for 2011 was $9.73 per share. There were 537,373 and 573,476 ESOP shares as of December 31, 2013 and 2012, respectively. | ||
The Company has deferred compensation arrangements with certain officers, which will provide them with a fixed benefit after retirement. The Company recorded a liability of approximately $1.2 million at December 31, 2013 and December 31, 2012 in connection with these agreements. Deferred compensation expense recognized in 2013, 2012, and 2011 was approximately $74,000, $68,000, and $232,000, respectively. | ||
The Company sponsors defined contribution post-retirement benefit agreements to provide death benefits for the designated beneficiaries of certain of the Company's executive officers. Under the agreements, split-dollar whole life insurance contracts were purchased on certain executive officers. The increase in the cash surrender value of the contracts, less the Bank's cost of funds, constitutes the Company's contribution to the agreements each year. In the event the insurance contracts fail to produce positive returns, the Company has no obligation to contribute to the agreements. During 2013, 2012, and 2011, the Company incurred expenses of $12,000, $39,000 and $9,000, respectively, related to the agreements. | ||
The Company has a 401(k) retirement plan covering substantially all employees who have been employed for 90 days and meet certain other requirements. Under this plan, employees can contribute a portion of their salary within the limits provided by the Internal Revenue Code into the plan. The Company made contributions to the plan totaling $60,000, $33,000 and $31,000 in 2013, 2012 and 2011, respectively. |
EMPLOYEE_STOCK_PLANS
EMPLOYEE STOCK PLANS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
EMPLOYEE STOCK PLANS [Abstract] | ' | ||||||||||||||||
EMPLOYEE STOCK PLANS | ' | ||||||||||||||||
15 | EMPLOYEE STOCK PLANS | ||||||||||||||||
In May of 2007, our stockholders approved the 2007 Omnibus Incentive Compensation Plan to provide incentives and awards for directors, officers, and employees. “Awards” as defined in the Plan includes, with limitations, stock options (including restricted stock options), restricted stock awards, stock appreciation rights, performance shares, stock awards and cash awards, all on a stand-alone, combination, or tandem basis. The 2007 Omnibus Incentive Compensation Plan replaces the 1997 Stock Incentive Plan, which expired February of 2007. A total of 525,000 of our common shares outstanding were reserved for issuance under the Plan, of which 92,428 were available to be granted as of December 31, 2013. | |||||||||||||||||
Stock Options – Of the 432,642 options outstanding at December 31, 2013, 18,003 were issued under the 1997 Stock Incentive Plan and 414,639 were issued under the 2007 Omnibus Incentive Compensation Plan. All options outstanding at December 31, 2013 are incentive stock options with a term of ten years, 390,140 of which vest 20% each year on the anniversary date of the grant and 42,502 of which vest 16.67% each year. The following table summarizes activity relating to stock options: | |||||||||||||||||
Options | Weighted | Weighted Average Remaining | Aggregate | ||||||||||||||
Average | Contractual Term | Intrinsic Value | |||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at December 31, 2010 | 53,918 | $ | 12.86 | ||||||||||||||
Exercised | (10,240 | ) | 6.6 | ||||||||||||||
Forfeited | (8,578 | ) | 15.39 | ||||||||||||||
Outstanding at December 31, 2011 | 35,100 | $ | 14.07 | ||||||||||||||
Granted | 294,803 | 12.97 | |||||||||||||||
Exercised | (14,117 | ) | 7.15 | ||||||||||||||
Forfeited | (7,941 | ) | 12.97 | ||||||||||||||
Outstanding at December 31, 2012 | 307,845 | $ | 13.36 | ||||||||||||||
Granted | 131,280 | 15.82 | |||||||||||||||
Exercised | (6,155 | ) | 11.1 | ||||||||||||||
Forfeited | (328 | ) | 20.88 | ||||||||||||||
Outstanding at December 31, 2013 | 432,642 | $ | 14.13 | 8.51 | $ | 1,612,000 | |||||||||||
Exercisable at December 31, 2011 | 35,100 | $ | 14.07 | ||||||||||||||
Exercisable at December 31, 2012 | 20,983 | 18.72 | |||||||||||||||
Exercisable at December 31, 2013 | 70,457 | 14.81 | 6.48 | $ | 215,000 | ||||||||||||
A summary of changes in unvested options for the period ended December 31, 2013 is as follows: | |||||||||||||||||
Number | Weighted Average | ||||||||||||||||
of | Grant Date | ||||||||||||||||
Options | Fair Value | ||||||||||||||||
Unvested options outstanding, beginning of year | 286,862 | $ | 4.41 | ||||||||||||||
Granted | 131,280 | 5.59 | |||||||||||||||
Vested | (55,957 | ) | 4.41 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Unvested options outstanding, end of year | 362,185 | $ | 4.84 | ||||||||||||||
As of December 31, 2013 there was a total of $1.5 million in unrecognized compensation cost related to nonvested share-based compensation arrangements. The total amount of options expensed during the years ended December 31, 2013, 2012 and 2011 was $308,000, $150,000 and $13,000, respectively. | |||||||||||||||||
The fair value of each option granted is estimated on the grant date using the Black-Scholes Option Pricing Model. This model requires management to make certain assumptions, including the expected life of the option, the risk free rate of interest, the expected volatility, and the expected dividend yield. The risk free rate of interest is based on the yield of a U.S. Treasury security with a similar term. The expected volatility is based on historic volatility over a term similar to the expected life of the options. The dividend yield is based on the current yield at the date of grant. The following weighted average assumptions were made in estimating the fair value of the options granted in 2013 and 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk free rate of interest | 1.3 | % | 0.7 | % | |||||||||||||
Expected volatility | 47.4 | % | 46.1 | % | |||||||||||||
Dividend yield | 2.1 | % | 2 | % | |||||||||||||
Average expected life (in years) | 5 | 5 | |||||||||||||||
Weighted-average grant-date fair value | $ | 5.59 | $ | 4.41 | |||||||||||||
The total intrinsic value of the options exercised was $41,000, $130,000, and $66,000 for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||
Restricted Stock Awards – On June 30, 2010, the Compensation Committee (formerly the Personnel Committee) of the Board of Directors of the Company made grants of 22,047 shares of restricted stock under the Company’s 2007 Omnibus Incentive Compensation Plan to certain officers and employees of the Company. The restricted shares of stock, which are subject to the terms of a Restricted Stock Grant Agreement between the Company and each recipient, fully vested on June 30, 2013. Prior to vesting, the recipient was entitled to vote the shares and received the dividends as declared by the Company with respect to its common stock. Compensation expense for restricted stock was based on the fair value of the restricted stock awards at the time of the grant, which was equal to the market value of the Company’s common stock on the date of grant. The value of the restricted stock grants was amortized monthly into compensation expense over the three year vesting period. | |||||||||||||||||
The restricted shares had a fair value of $12.77 per share on the date of issuance. For the year ended December 31, 2013, 2012 and 2011, compensation expense of $21,000, $57,000 and $62,000, respectively, was recognized related to non-vested restricted stock awards. | |||||||||||||||||
The following table summarizes activity relating to non-vested restricted stock awards: | |||||||||||||||||
2013 | |||||||||||||||||
Balance at beginning of year | 15,313 | ||||||||||||||||
Granted | - | ||||||||||||||||
Forfeited | (883 | ) | |||||||||||||||
Vested | 14,430 | ||||||||||||||||
Balance at end of year | - |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |
Dec. 31, 2013 | ||
STOCKHOLDERS' EQUITY [Abstract] | ' | |
STOCKHOLDERS' EQUITY | ' | |
16 | STOCKHOLDERS’ EQUITY | |
The payment of dividends by the Bank to the Company is restricted by various regulatory and statutory limitations. At December 31, 2013, the Bank had approximately $21.3 million available to pay dividends to the parent company without regulatory approval. | ||
On January 9, 2009 the Company issued 20,000 shares of Series A Preferred Stock associated with its participation in the Treasury’s Capital Purchase Plan (“CPP”) under the Troubled Asset Relief Program. The proceeds from this sale of $20,000,000 less direct costs to issue were allocated to preferred stock. As part of the CPP transaction, the Company issued the Treasury a warrant to purchase 208,768 shares of our common stock at an exercise price of $14.37 per share. However, as a result of the completion of our public offering in December 2009, the number of shares subject to the warrants held by the Treasury was reduced to 104,384 shares. In late 2011, the Treasury sold this warrant to an unrelated third party. The Company did not receive any proceeds from such sale. | ||
The Series A preferred stock qualified as Tier 1 capital and paid cumulative dividends at a rate of 5% per annum. In August 2011, the Company redeemed all 20,000 outstanding shares of Series A preferred stock at its stated value of $1,000 per share with funds from our issuance of 32,000 shares of Series B preferred stock in connection with the Company’s participation under the U.S. Treasury’s Small Business Lending Fund (“SBLF”). The remaining $12.0 million of net proceeds from the issuance was provided to the Bank as additional capital. The dividend rate on the Series B preferred stock was set at 1.00% for the fourth quarter of 2013 due to attaining the target 10% growth rate in qualified small business loans during the second quarter of 2013. Beginning March 2016, the dividend rate will increase to 9% per annum. The Series B preferred stock is nonvoting except for class voting rights on matters that would adversely affect the rights of the holders of the Series B preferred stock. | ||
On December 28, 2012, the Company issued 756,511 shares of common stock and 99,971 shares of Series C Preferred Stock in connection with the PSB acquisition. The Series C Preferred Stock is entitled to the payment of noncumulative dividends, if and when declared by the Company’s Board of Directors, at the rate of 4.00% per annum, payable quarterly in arrears on January 15, April 15, July 15 and October 15 of each year, beginning on April 15, 2013. The Series C Preferred Stock ranks pari passu with the existing Senior Non-Cumulative Perpetual Preferred Stock, Series B, issued in connection with the Company’s participation under the U. S. Treasury’s SBLF and senior to the Company’s common stock. The Company may redeem the Series C Preferred Stock, subject to regulatory approval, beginning on or after the fifth anniversary of the closing date of the Merger, at a redemption price equal to the liquidation value of the Series C Preferred Stock, plus declared but unpaid dividends, if any. The Company may also redeem the Series C Preferred Stock, subject to regulatory approval, at the same redemption price prior to the fifth anniversary of the closing date in the event the Series C Preferred Stock no longer qualifies for ‘Tier 1 Capital” treatment by the applicable federal banking regulators. Holders may convert the Series C Preferred Stock at any time into shares of the Company’s common stock at a conversion price of $18.00 per share, subject to customary anti-dilution adjustments. In addition, on or after the fifth anniversary of the closing date, the Company will have the option to require conversion of the Series C Preferred Stock if the closing price of the Company’s common stock for 20 trading days within any period of 30 consecutive trading days, exceeds 130% of the conversion price. |
OTHER_COMPREHENSIVE_LOSS_INCOM
OTHER COMPREHENSIVE (LOSS) INCOME | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||||||||||||||||||||||||||
17 | OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||||||||||||||||||||||||
The following is a summary of the tax effects allocated to each component of other comprehensive (loss) income (in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | Before | Tax | Net of | |||||||||||||||||||||||||||||
Tax | Effect | Tax | Tax | Effect | Tax | Tax | Effect | Tax | |||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||
Change in unrealized gain during period | $ | (12,481 | ) | $ | 4,368 | $ | (8,113 | ) | $ | 831 | $ | (291 | ) | $ | 540 | $ | 5,507 | $ | (1,872 | ) | $ | 3,635 | |||||||||||||||
Reclassification adjustment for gains included in net income | (234 | ) | 82 | (152 | ) | (204 | ) | 71 | (133 | ) | (99 | ) | 34 | (65 | ) | ||||||||||||||||||||||
Total other comprehensive (loss) income | $ | (12,715 | ) | $ | 4,450 | $ | (8,265 | ) | $ | 627 | $ | (220 | ) | $ | 407 | $ | 5,408 | $ | (1,838 | ) | $ | 3,570 | |||||||||||||||
The reclassifications out of accumulated other comprehensive income into net earnings are presented below (in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Details about | Reclassifications Out of Accumulated Other Comprehensive Income | Statement of | Reclassifications | Statement of | Reclassifications | Statement of | |||||||||||||||||||||||||||||||
Accumulated Other | Earnings Line | Out of | Earnings | Out of | Earnings Line | ||||||||||||||||||||||||||||||||
Comprehensive Income | Item | Accumulated | Line Item | Accumulated | Item | ||||||||||||||||||||||||||||||||
Components | Other | Other | |||||||||||||||||||||||||||||||||||
Comprehensive | Comprehensive | ||||||||||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on securities available-for-sale: | |||||||||||||||||||||||||||||||||||||
$ | (234 | ) | Gain on securities, net | $ | (204 | ) | Gain on securities, net | $ | (99 | ) | Gain on securities, net | ||||||||||||||||||||||||||
82 | Income tax expense | 71 | Income tax expense | 34 | Income tax expense | ||||||||||||||||||||||||||||||||
$ | (152 | ) | Net of tax | $ | (133 | ) | Net of tax | $ | (65 | ) | Net of tax |
NET_EARNINGS_PER_COMMON_SHARE
NET EARNINGS PER COMMON SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
NET EARNINGS PER COMMON SHARE [Abstract] | ' | ||||||||||||
NET EARNINGS PER COMMON SHARE | ' | ||||||||||||
18 | NET EARNINGS PER COMMON SHARE | ||||||||||||
Following is a summary of the information used in the computation of earnings per common share (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net earnings available to common stockholders | $ | 12,844 | $ | 8,095 | $ | 2,671 | |||||||
Dividends on Series C preferred stock | 400 | - | - | ||||||||||
Adjusted net earnings available to common stockholders | $ | 13,244 | $ | 8,095 | $ | 2,671 | |||||||
Weighted average number of common shares outstanding used in computation of basic earnings per common share | 11,247 | 10,482 | 9,787 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 50 | 24 | 7 | ||||||||||
Restricted stock | - | 12 | 5 | ||||||||||
Preferred stock | 564 | 6 | - | ||||||||||
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share | 11,861 | 10,524 | 9,799 | ||||||||||
Options to acquire 134,611, 18,331 and 18,331 shares of common stock were not included in computing diluted earnings per share for the years ended December 31, 2013, 2012 and 2011, respectively, because the effect of these shares was anti-dilutive. The remaining 104,384 shares subject to the outstanding warrant issued in connection with the CPP transaction were anti-dilutive and not included in the computation of diluted earnings per share for the years ended December 31, 2012 and 2011. |
FINANCIAL_INSTRUMENTS_WITH_OFF
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | ' | ||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ' | ||||||||
19 | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | ||||||||
The Bank is party to various financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contract or notional amounts of those instruments reflect the extent of the Bank’s involvement in particular classes of financial instruments. | |||||||||
The Bank’s exposure to loan loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees is represented by the contractual amount of those instruments. The Bank uses the same credit policies, including considerations of collateral requirements, in making these commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
Contract or Notional Amount | |||||||||
2013 | 2012 | ||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||
(in thousands) | |||||||||
Commitments to extend credit | $ | 264,346 | $ | 237,085 | |||||
Letters of credit | 9,505 | 9,958 | |||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being fully drawn upon, the total commitment amounts disclosed above do not necessarily represent future cash requirements. Substantially all of these commitments are at variable rates. | |||||||||
Commercial letters of credit and financial guarantees are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to its customers. Approximately 86% and 88% of these letters of credit were secured by marketable securities, cash on deposit, or other assets at December 31, 2013 and 2012, respectively. |
REGULATORY_MATTERS
REGULATORY MATTERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
REGULATORY MATTERS | ' | ||||||||||||||||||||||||
20 | REGULATORY MATTERS | ||||||||||||||||||||||||
The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of 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. | |||||||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and to average assets (as defined). | |||||||||||||||||||||||||
As of December 31, 2013, the most recent notifications from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk‑based, Tier I risk‑based, and Tier I leverage capital ratios as set forth in the table (in thousands). There are no conditions or events since those notifications that management believes has changed the Bank’s category. | |||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below (in thousands): | |||||||||||||||||||||||||
Actual | Required for | To be Well | |||||||||||||||||||||||
Minimum Capital | Capitalized Under | ||||||||||||||||||||||||
Adequacy Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 178,343 | 14.19 | % | $ | 100,536 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 170,262 | 13.56 | % | $ | 100,466 | 8 | % | $ | 125,582 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 169,242 | 13.47 | % | $ | 50,268 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 161,283 | 12.84 | % | $ | 50,233 | 4 | % | $ | 75,349 | 6 | % | |||||||||||||
Tier I capital to average assets: | |||||||||||||||||||||||||
Company | $ | 169,242 | 9.35 | % | $ | 72,405 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 161,283 | 8.91 | % | $ | 72,384 | 4 | % | $ | 108,576 | 6 | % | |||||||||||||
Actual | Required for | To be Well | |||||||||||||||||||||||
Minimum Capital | Capitalized Under | ||||||||||||||||||||||||
Adequacy Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 165,302 | 14.1 | % | $ | 93,770 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 162,159 | 13.84 | % | $ | 93,703 | 8 | % | $ | 117,128 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 157,753 | 13.46 | % | $ | 46,885 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 154,610 | 13.2 | % | $ | 46,851 | 4 | % | $ | 70,277 | 6 | % | |||||||||||||
Tier I capital to average assets: | |||||||||||||||||||||||||
Company | $ | 157,753 | 11.82 | % | $ | 53,399 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 154,610 | 11.58 | % | $ | 53,421 | 4 | % | $ | 80,132 | 6 | % |
FAIR_VALUE_MEASUREMENTS_AND_DI
FAIR VALUE MEASUREMENTS AND DISCLOSURES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS AND DISCLOSURES [Abstract] | ' | ||||||||||||||||
FAIR VALUE MEASUREMENTS AND DISCLOSURES | ' | ||||||||||||||||
21 | FAIR VALUE MEASUREMENTS AND DISCLOSURES | ||||||||||||||||
The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate. These nonrecurring fair value adjustments typically involve the application of the lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments. | |||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||
The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||||||
Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||||||
Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||||||
Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. | |||||||||||||||||
Following is a description of valuation methodologies used for assets and liabilities which are either recorded or disclosed at fair value. | |||||||||||||||||
Cash and cash equivalents—The carrying value of cash and cash equivalents is a reasonable estimate of fair value. | |||||||||||||||||
Time Deposits in Other Banks—Fair values for fixed-rate time deposits are estimated using a discounted cash flow analysis that applies interest rates currently being offered on time deposits of similar terms of maturity. | |||||||||||||||||
Securities Available-for-Sale—Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Securities are classified as Level 2 within the valuation hierarchy when the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things. Level 2 inputs are used to value U.S. Agency securities, mortgage-backed securities, municipal securities, single issue trust preferred securities, certain pooled trust preferred securities, and certain equity securities that are not actively traded. | |||||||||||||||||
Other investments—The carrying value of other investments is a reasonable estimate of fair value. | |||||||||||||||||
Loans—For disclosure purposes, the fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. The Company does not record loans at fair value on a recurring basis. No adjustment to fair value is taken related to illiquidity discounts. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management uses one of three methods to measure impairment, which, include collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Impaired loans where an allowance is established based on the fair value of collateral or where the loan balance has been charged down to fair value require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. | |||||||||||||||||
For non-performing loans, collateral valuations currently in file are reviewed for acceptability in terms of timeliness and applicability. Although each determination is made based on the facts and circumstances of each credit, generally valuations are no longer considered acceptable when there has been physical deterioration of the property from when it was last appraised, or there has been a significant change in the underlying assumptions of the appraisal. If the valuation is deemed to be unacceptable, a new appraisal is ordered. New appraisals are typically received within 4-6 weeks. While awaiting new appraisals, the valuation in file is utilized, net of discounts. Discounts are derived from available relevant market data, selling costs, taxes, and insurance. Any perceived collateral deficiency utilizing the discounted value is specifically reserved (as required by ASC Topic 310) until the new appraisal is received or charged off. Thus, provisions or charge-offs are recognized in the period the credit is identified as non-performing. | |||||||||||||||||
The following sources are utilized to set appropriate discounts: market real estate agents, current local sales data, bank history for devaluation of similar property, Sheriff’s valuations and buy/sell contracts. If a real estate agent is used to market and sell the property, values are discounted 6% for selling costs and an additional 4% for taxes, insurance and maintenance costs. Additional discounts may be applied if research from the above sources indicates a discount is appropriate given devaluation of similar property from the time of the initial valuation. | |||||||||||||||||
Other Real Estate—Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate, and annually thereafter to insure other real estate assets are carried at the lower of carrying value or fair value. Exceptions to obtaining initial appraisals are properties where a buy/sell agreement exists for the loan value or greater, or where we have received a Sheriff’s valuation for properties liquidated through a Sheriff sale. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the other real estate as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and adjusts the appraisal value by taking an additional discount for market conditions and there is no observable market prices, the Company records the other real estate asset as nonrecurring Level 3. | |||||||||||||||||
Cash Surrender Value of Life Insurance Policies—Fair value for life insurance cash surrender value is based on cash surrender values indicated by the insurance companies. | |||||||||||||||||
Deposits—The fair value of demand deposits, savings accounts, NOW accounts, and money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. The estimated fair value does not include customer related intangibles. | |||||||||||||||||
Securities Sold Under Agreements to Repurchase—The fair value approximates the carrying value of repurchase agreements due to their short-term nature. | |||||||||||||||||
Short-term Federal Home Loan Bank advances—The fair value approximates the carrying value of short-term FHLB advances due to their short-term nature. | |||||||||||||||||
Notes Payable—The fair value of notes payable is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings with similar terms. | |||||||||||||||||
Junior Subordinated Debentures—For junior subordinated debentures that bear interest on a floating basis, the carrying amount approximates fair value. For junior subordinated debentures that bear interest on a fixed rate basis, the fair value is estimated using a discounted cash flow analysis that applies interest rates currently being offered on similar types of borrowings. | |||||||||||||||||
Commitments to Extend Credit, Standby Letters of Credit and Credit Card Guarantees—Because commitments to extend credit and standby letters of credit are generally short-term and made using variable rates, the carrying value and estimated fair value associated with these instruments are immaterial. | |||||||||||||||||
Assets Recorded at Fair Value | |||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands): | |||||||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2013 | ||||||||||||||||
Description | at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Government sponsored enterprises | $ | 11,265 | $ | - | $ | 11,265 | $ | - | |||||||||
Obligations of state and political subdivisions | 59,978 | - | 59,978 | - | |||||||||||||
GSE mortgage-backed securities | 145,965 | - | 145,965 | - | |||||||||||||
Collateralized mortgage obligations: residential | 70,887 | - | 70,887 | - | |||||||||||||
Collateralized mortgage obligations: commercial | 27,346 | - | 27,346 | - | |||||||||||||
Other asset-backed securities | 25,489 | - | 25,489 | - | |||||||||||||
Collateralized debt obligation | 735 | - | 735 | - | |||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2012 | ||||||||||||||||
Description | at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Government sponsored enterprises | $ | 13,424 | $ | - | $ | 13,424 | $ | - | |||||||||
Obligations of state and political subdivisions | 87,421 | - | 87,421 | - | |||||||||||||
GSE mortgage-backed securities | 178,819 | - | 178,819 | - | |||||||||||||
Collateralized mortgage obligations: residential | 101,986 | - | 101,986 | - | |||||||||||||
Collateralized mortgage obligations: commercial | 29,761 | - | 29,761 | - | |||||||||||||
Other asset-backed securities | 12,742 | - | 12,742 | - | |||||||||||||
Collateralized debt obligation | 464 | - | 464 | - | |||||||||||||
Certain assets and liabilities are measured at fair value on a nonrecurring basis and therefore are not included in the table above. Impaired loans are level 2 assets measured using appraisals from external parties of the collateral less any prior liens. Other real estate owned are also level 2 assets measured using appraisals from external parties. | |||||||||||||||||
Assets measured at fair value on a nonrecurring basis are as follows (in thousands): | |||||||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2013 | ||||||||||||||||
Description | at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired loans | $ | 1,973 | $ | - | $ | 1,973 | $ | - | |||||||||
Other real estate | 6,687 | - | 6,687 | - | |||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2012 | ||||||||||||||||
Description | at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired loans | $ | 2,245 | $ | - | $ | 2,245 | $ | - | |||||||||
Other real estate | 7,496 | - | 7,496 | - | |||||||||||||
Limitations | |||||||||||||||||
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||
Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. | |||||||||||||||||
The estimated fair values of our financial instruments are as follows at December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,731 | $ | 59,731 | $ | - | $ | - | |||||||||
Securities available-for-sale | 341,665 | - | 341,665 | - | |||||||||||||
Securities held-to-maturity | 155,523 | - | 151,168 | - | |||||||||||||
Other investments | 11,526 | 11,526 | - | - | |||||||||||||
Loans, net | 1,128,775 | - | - | 1,139,740 | |||||||||||||
Cash surrender value of life insurance policies | 13,450 | - | 13,450 | - | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 383,257 | - | 383,257 | - | |||||||||||||
Interest-bearing deposits | 1,135,546 | - | 895,346 | 241,359 | |||||||||||||
Securities sold under agreements to repurchase | 53,916 | 53,916 | - | - | |||||||||||||
Short-term Federal Home Loan Bank advances | 25,000 | - | 25,000 | - | |||||||||||||
Notes payable | 27,703 | - | - | 28,813 | |||||||||||||
Junior subordinated debentures | 29,384 | - | 22,167 | 7,776 | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 73,573 | $ | 73,573 | $ | - | $ | - | |||||||||
Time deposits held in banks | 881 | - | - | 883 | |||||||||||||
Securities available-for-sale | 424,617 | - | 424,617 | - | |||||||||||||
Securities held-to-maturity | 153,524 | - | 156,924 | - | |||||||||||||
Other investments | 8,310 | 8,310 | - | - | |||||||||||||
Loans, net | 1,039,570 | - | - | 1,046,495 | |||||||||||||
Cash surrender value of life insurance policies | 13,183 | - | 13,183 | - | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 380,557 | - | 380,557 | - | |||||||||||||
Interest-bearing deposits | 1,171,347 | - | 859,183 | 314,783 | |||||||||||||
Securities sold under agreements to repurchase | 41,447 | 41,447 | - | - | |||||||||||||
Notes payable | 29,128 | - | - | 29,128 | |||||||||||||
Junior subordinated debentures | 29,384 | - | 22,167 | 7,776 |
OTHER_NONINTEREST_INCOME_AND_E
OTHER NON-INTEREST INCOME AND EXPENSE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER NON-INTEREST INCOME AND EXPENSE [Abstract] | ' | ||||||||||||
OTHER NON-INTEREST INCOME AND EXPENSE | ' | ||||||||||||
22 | OTHER NON-INTEREST INCOME AND EXPENSE | ||||||||||||
For the years ended December 31, 2013, 2012, and 2011, none of the components of other noninterest income were greater than 1% of interest income and noninterest income. | |||||||||||||
Components of other noninterest expense greater than 1% of interest income and noninterest income consisted of the following for the years ended December 31, 2013, 2012, and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Professional fees | $ | 1,709 | $ | 2,022 | $ | 2,518 | |||||||
FDIC fees | 1,136 | 930 | 921 | ||||||||||
Marketing expenses | 2,340 | 1,648 | 1,663 | ||||||||||
Corporate development expense | 1,507 | 1,022 | 984 | ||||||||||
Data processing | 1,955 | 1,689 | 2,355 | ||||||||||
Printing and supplies | 1,494 | 1,105 | 890 | ||||||||||
Expenses on other real estate owned and other assets repossessed | 1,201 | 1,767 | 1,511 | ||||||||||
Amortization of intangibles | 1,106 | 762 | 230 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
SUBSEQUENT EVENTS [Abstract] | ' | |
SUBSEQUENT EVENTS | ' | |
23 | SUBSEQUENT EVENTS | |
Gerald “Jerry” Reaux, Jr., Vice Chairman of the Board and Chief Operating Officer of the Company and the Bank, died suddenly on February 9, 2014. Chief Executive Officer, C. R. Cloutier, temporarily assumed the responsibilities of Chief Operating Officer of the Company and the Bank. On March 5, 2014, the Bank recorded income of $3.0 million of proceeds from a key man life insurance policy held on Mr. Reaux. |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY [Abstract] | ' | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ' | ||||||||||||
24 | CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | ||||||||||||
Summarized financial information for MidSouth Bancorp, Inc. (parent company only) follows: | |||||||||||||
Balance Sheets | |||||||||||||
December 31, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash and interest-bearing deposits in banks | $ | 7,879 | $ | 4,982 | |||||||||
Securities available-for-sale | 735 | - | |||||||||||
Other assets | 2,561 | 2,233 | |||||||||||
Investment in and advances to subsidiaries | 211,575 | 217,049 | |||||||||||
Total assets | $ | 222,750 | $ | 224,264 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Liabilities: | |||||||||||||
Dividends payable | $ | 1,093 | $ | 1,113 | |||||||||
Notes payable | 1,000 | 2,000 | |||||||||||
Junior subordinated debentures | 29,384 | 29,384 | |||||||||||
Other | 524 | 2,526 | |||||||||||
Total liabilities | 32,001 | 35,023 | |||||||||||
Stockholders’ equity | 190,749 | 189,241 | |||||||||||
Total liabilities and stockholders’ equity | $ | 222,750 | $ | 224,264 | |||||||||
Statements of Earnings | |||||||||||||
For the Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue: | |||||||||||||
Dividends from Bank and nonbank subsidiaries | $ | 11,000 | $ | - | $ | - | |||||||
Rental and other income | 125 | 102 | 908 | ||||||||||
11,125 | 102 | 908 | |||||||||||
Expenses: | |||||||||||||
Interest on short- and long-term debt | 1,415 | 984 | 971 | ||||||||||
Professional fees | 345 | 804 | 337 | ||||||||||
Other expenses | 547 | 1,126 | 643 | ||||||||||
2,307 | 2,914 | 1,951 | |||||||||||
Income (loss) before equity in undistributed earnings of subsidiaries and income taxes | 8,818 | (2,812 | ) | (1,043 | ) | ||||||||
Equity in undistributed earnings of subsidiaries | 4,600 | 11,477 | 5,167 | ||||||||||
Income tax benefit | 758 | 977 | 349 | ||||||||||
Net earnings | $ | 14,176 | $ | 9,642 | $ | 4,473 | |||||||
Statements of Cash Flows | |||||||||||||
For the Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net earnings | $ | 14,176 | $ | 9,642 | $ | 4,473 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Undistributed earnings of subsidiaries | (4,600 | ) | (11,477 | ) | (5,167 | ) | |||||||
Other, net | (672 | ) | (2,307 | ) | 144 | ||||||||
Net cash (used in) provided by operating activities | 8,904 | (4,142 | ) | (550 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of securities available-for-sale | (464 | ) | - | - | |||||||||
Investments in and advances to subsidiaries | - | - | (11,972 | ) | |||||||||
Outlays for business acquisition, net of cash acquired | - | (14,360 | ) | - | |||||||||
Other, net | 223 | - | - | ||||||||||
Net cash (used in) provided by investing activities | (241 | ) | (14,360 | ) | (11,972 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from issuance of Series B preferred stock | - | - | 32,000 | ||||||||||
Payment to redeem Series A preferred stock | - | - | (20,000 | ) | |||||||||
Proceeds from exercise of stock options | 69 | 100 | 68 | ||||||||||
Payment of preferred dividends | (1,519 | ) | (1,579 | ) | (938 | ) | |||||||
Payment of common dividends | (3,320 | ) | (2,932 | ) | (2,724 | ) | |||||||
Repayment of long-term debt | (1,000 | ) | - | - | |||||||||
Tax benefit from exercise of stock options | 4 | 1 | - | ||||||||||
Net cash (used in) provided by financing activities | (5,766 | ) | (4,410 | ) | 8,406 | ||||||||
Net change in cash and cash equivalents | 2,897 | (22,912 | ) | (4,116 | ) | ||||||||
Cash and cash equivalents at beginning of year | 4,982 | 27,894 | 32,010 | ||||||||||
Cash and cash equivalents at end of year | $ | 7,879 | $ | 4,982 | $ | 27,894 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
Basic of Presentation | ' | |
Basis of Presentation—The consolidated financial statements include the accounts of MidSouth Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries MidSouth Bank, N.A. (the “Bank”) and Financial Services of the South, Inc. (the “Finance Company”), which has liquidated its loan portfolio. All significant intercompany accounts and transactions have been eliminated in consolidation. We are subject to regulation under the Bank Holding Company Act of 1956. The Bank is primarily regulated by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation (“FDIC”). | ||
We are a financial holding company headquartered in Lafayette, Louisiana operating principally in the community banking business by providing banking services to commercial and retail customers through the Bank. The Bank is community oriented and focuses primarily on offering competitive commercial and consumer loan and deposit services to individuals and small to middle market businesses in Louisiana and central and east Texas. | ||
The accounting principles we follow and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (“GAAP”) and with general practices within the banking industry. In preparing the financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ significantly from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of real estate acquired in connection with or in lieu of foreclosure on loans, the assessment of goodwill for impairment, and valuation allowances associated with the realization of deferred tax assets which are based on future taxable income. Given the current instability of the economic environment, it is reasonably possible that the methodology of the assessment of potential loan losses, losses on other real estate owned, goodwill impairment, and other fair value measurements could change in the near term or could result in impairment going forward. | ||
A summary of significant accounting policies follows: | ||
Cash and cash equivalents | ' | |
Cash and cash equivalents—Cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in other banks with original maturities of less than 90 days, and federal funds sold. | ||
Investment Securities | ' | |
Investment Securities—We determine the appropriate classification of debt securities at the time of purchase and reassesses this classification periodically. Trading account securities are held for resale in anticipation of short‑term market movements. Debt securities are classified as held‑to‑maturity when we have the positive intent and ability to hold the securities to maturity. Securities not classified as held‑to‑maturity or trading are classified as available‑for‑sale. We had no trading account securities during the three years ended December 31, 2013. Held‑to‑maturity securities are stated at amortized cost. Available‑for‑sale securities are stated at fair value, with unrealized gains and losses, net of deferred taxes, reported as a separate component of stockholders’ equity. | ||
The amortized cost of debt securities classified as held‑to‑maturity or available‑for‑sale is adjusted for amortization of premiums and accretion of discounts to maturity or, in the case of mortgage‑backed securities, over the estimated life of the security. Amortization, accretion, and accrued interest are included in interest income on securities. Realized gains and losses on the sale of securities available‑for‑sale are included in earnings and are determined using the specific‑identification method. | ||
Management evaluates investment securities for other than temporary impairment on a quarterly basis. A decline in the fair value of available-for-sale and held-to-maturity securities below cost that is deemed other than temporary is charged to earnings for a decline in value deemed to be credit related and a new cost basis for the security is established. The decline in value attributed to non-credit related factors is recognized in other comprehensive income. | ||
Other Investments | ' | |
Other Investments—Other investments include Federal Reserve Bank and Federal Home Loan Bank stock, as well as other correspondent bank stocks and our CRA investment which have no readily determined market value and are carried at cost. Due to the redemption provisions of the investments, the fair value equals cost and no impairment exists. | ||
Loans | ' | |
Loans—Loans that we have the intent and ability to hold for the foreseeable future or until maturity are reported at the principal amount outstanding, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on commercial and real estate mortgage loans is calculated by using the simple interest method on the daily balance of the principal amount outstanding. Unearned income on installment loans is credited to operations based on a method which approximates the interest method. In-house legal counsel and the collections department are responsible for validating loans past due for reporting purposes. Once loans are determined to be past due, the collections department actively works with customers to bring loans back to current status. | ||
We consider a loan to be impaired when, based upon current information and events, we believe it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. All loans classified as special mention, substandard, or doubtful, based on credit risk rating factors, are reviewed for impairment. Our impaired loans include troubled debt restructurings and performing and nonperforming major loans in which full payment of principal or interest is not expected. Although our policy requires that non-major homogenous loans, which include all loans under $250,000, be evaluated on an overall basis, our current volume of impaired loans allows us to evaluate each impaired loan individually. We calculate the allowance required for impaired loans based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or at the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent. A loan may be impaired but not on nonaccrual status when available information suggests that it is probable the Bank may not receive all contractual principal and interest, however, the loan is still current and payments are received in accordance with the terms of the loan. Payments received for impaired loans not on nonaccrual status are applied to principal and interest. | ||
All impaired loans are reviewed, at minimum, on a quarterly basis. Reviews may be performed more frequently if material information is available before the next scheduled quarterly review. Existing valuations are reviewed to determine if additional discounts or new appraisals are required. After this review, when comparing the resulting collateral valuation to the outstanding loan balance, if the discounted collateral value exceeds the loan balance no specific allocation is reserved. All loans included in our impairment analysis are subject to the same procedure and review, with no distinction given to the dollar amount of the loan. | ||
Our Special Assets Committee meets monthly on troubled credits to review loans with adverse classifications. Loan officers, loan review officers, and in-house legal counsel contribute updated information on each credit, reviewing potential declines or improvements in the borrower’s repayment ability and our collateral position. If deterioration in our collateral position is determined, additional discounts may be applied to the impairment analysis before the new appraisal is received. The committee makes a determination of whether the loans reviewed have reached a point of collateral dependency and sufficient doubt exists as to collectability. As a matter of policy, loans are placed on nonaccrual status when, in the judgment of committee members, the probability of collection of interest is deemed insufficient to warrant further accrual. For loans placed on nonaccrual status, the accrual of interest is discontinued and subsequent payments received are applied to the principal balance. Interest income is recorded after principal has been satisfied and as payments are received. Additionally, loans may be placed on nonaccrual status when the loan becomes 90 days past due and any of the following conditions exist: it becomes evident that the borrower will not make payments or will not or cannot meet the Bank’s terms for the renewal of a matured loan, full repayment of principal and interest is not expected, the loan has a credit quality of substandard, the borrower files bankruptcy and an approved plan of reorganization or liquidation is not anticipated in the near future, or foreclosure action is initiated. When a loan is placed on nonaccrual status, previously accrued but unpaid interest for the current year is deducted from interest income. Prior year unpaid interest is charged to the allowance for loan losses. Some loans may continue accruing after 90 days if the loan is in the process of renewing, being paid off, or the underlying collateral fully supports both the principal and accrued interest and the loan is in the process of collection. | ||
Nonaccrual loans may be returned to accrual status if all principal and interest amounts contractually owed are reasonably assured of repayment within a reasonable period and there is a period of at least six months to one year of repayment performance by the borrower depending on the contractual payment terms. Our Special Assets Committee must approve the return of loans to accrual status as well as exceptions to any requirements of the non-accrual policy. | ||
Generally, commercial, financial, and agricultural loans; construction loans; commercial real estate loans; consumer loans; and finance leases which become 90 days delinquent are either in the process of collection through repossession or foreclosure or are deemed currently uncollectible. The portion of loans deemed currently uncollectible, due to insufficient collateral, are charged‑off against the allowance for loan losses. All loans requested to be charged-off must be specifically authorized by in-house legal counsel and the CEO. Requests may be initiated by collection personnel, bank counsel, loan review, and lending personnel. Charge-offs will be reviewed by in-house legal counsel and the CEO to ensure the propriety and accuracy of charge-off recommendations. Factors considered when determining loan collectability and amount to be charged off for all segments in our loan portfolio include delinquent principal or interest repayment, the ability of borrower to make future payments, collateral value of outstanding debt, and the adequacy of guarantors support. It is the responsibility of in-house legal counsel to report all charge-offs to the Board of Directors or its designated Committee for ratification. | ||
Credit Risk Rating | ' | |
Credit Risk Rating—We manage credit risk by observing written underwriting standards and lending policy established by the Board of Directors and management to govern all lending activities. The risk management program requires that each individual loan officer review his or her portfolio on a quarterly basis and assign recommended credit ratings on each loan. These efforts are supplemented by independent reviews performed by a loan review officer and other validations performed by the internal audit department. The results of the reviews are reported directly to the Audit Committee of the Board of Directors. Additionally, Bank concentrations are monitored and reported quarterly for risk rating distributions, major standard industry classification segments, real estate concentrations, and collateral distributions. | ||
Consumer and residential real estate loans are normally graded at inception, and the grade generally remains the same throughout the life of the loan. Loan grades on commercial, financial, and agricultural; construction; commercial real estate; and finance leases may be changed at any time when circumstances warrant, and are at a minimum reviewed quarterly. | ||
Loans can be classified into the following three risk rating groupings: pass, special mention, and substandard/doubtful. Factors considered in determining a risk rating grade include debt service capacity, capital structure/liquidity, management, collateral quality, industry risk, company trends/operating performance, repayment source, revenue diversification/customer concentration, quality of financial information, and financing alternatives. Pass grade signifies the highest quality of loans to loans with reasonable credit risk, which may include borrowers with marginally adequate financial performance, but have the ability to repay the debt. Special mention loans have potential weaknesses that warrant extra attention from the loan officer and other management personnel, but still have the ability to repay the debt. Substandard classification includes loans with well-defined weaknesses with risk of potential loss. Loans classified as doubtful are considered to have little recovery value and are charged off. | ||
Allowance for Loan Losses | ' | |
Allowance for Loan Losses—The allowance for loan losses is a valuation account available to absorb probable losses on loans. All losses are charged to the allowance for loan losses when the loss actually occurs or when a determination is made that a loss is likely to occur. Recoveries are credited to the allowance for loan losses at the time of recovery. Quarterly, we estimate the probable level of losses in the existing portfolio through consideration of such factors including, but not limited to, past loan loss experience; estimated losses in significant credits; known deterioration in concentrations of credit; trends in nonperforming assets; volume and composition of the loan portfolio, including percentages of special mention, substandard and past due loans; lending policies and control systems; known inherent risks in the portfolio; adverse situations that may affect the borrower’s ability to repay; the estimated value of any underlying collateral; current national and local economic conditions, including the unemployment rate, the price of oil, and real estate absorption time; the experience, ability and depth of lending management; collections personnel experience; and the results of examinations of the loan portfolio by regulatory agencies and others. Based on these estimates, the allowance for loan losses is increased by charges to earnings and decreased by charge‑offs (net of recoveries). | ||
The allowance is composed of general reserves and specific reserves. General reserves are determined by applying loss percentages to segments of the portfolio. The loss percentages are based on each segment’s historical loss experience, generally over the past twelve to eighteen months, and adjustment factors derived from conditions in the Bank’s internal and external environment. All loans considered to be impaired are evaluated on an individual basis to determine specific reserve allocations in accordance with GAAP. Loans for which specific reserves are provided are excluded from the calculation of general reserves. | ||
We have an internal loan review department that is independent of the lending function to challenge and corroborate the loan grade assigned by the lender and to provide additional analysis in determining the adequacy of the allowance for loan losses. | ||
Management and the Board of Directors believe the allowance for loan losses is appropriate at December 31, 2013. While determination of the allowance for loan losses is based on available information at a given point in time, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review our allowance for loan losses. Such agencies may require us to recognize additions or deductions to the allowance based on their judgment and information available to them at the time of their examination. | ||
Interest Rate Swap Agreements | ' | |
Interest Rate Swap Agreements—Derivative financial instruments are recognized as assets and liabilities on the consolidated balance sheets and, as required by ASC 815, the Company records all derivatives at fair value. Interest rate swaps are contracts in which a series of interest rate cash flows are exchanged over a prescribed period. The notional balance of interest rate swap agreements held by the Company at December 31, 2012 and 2013 was minimal and not material to the consolidated balance sheets. | ||
Premises and Equipment | ' | |
Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. The estimated useful lives used to compute depreciation are: | ||
Buildings and improvements | 10 - 40 years | |
Furniture, fixtures, and equipment | 3 - 10 years | |
Automobiles | 3 - 5 years | |
Leasehold improvements are amortized over the estimated useful lives of the improvements or the term of the lease, whichever is shorter. | ||
Other Real Estate Owned | ' | |
Other Real Estate Owned—Real estate properties acquired through, or in lieu of, loan foreclosures are initially recorded at the lower of carrying value or fair value less estimated costs to sell based on a current valuation at the time of foreclosure. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less cost to sell. Revenues and expenses from operations and changes in the valuation allowance are charged to earnings. | ||
Goodwill and Other Intangible Assets | ' | |
Goodwill and Other Intangible Assets—Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired in a business combination. Goodwill and other intangible assets deemed to have an indefinite useful life are not amortized but instead are subject to review for impairment annually, or more frequently if deemed necessary. Also, in connection with business combinations involving banks and branch locations, we generally record core deposit intangibles representing the value of the acquired core deposit base. Core deposit intangibles are amortized over the estimated useful life of the deposit base, generally on either a straight-line basis not exceeding 15 years or an accelerated basis over 10 years. The remaining useful lives of core deposit intangibles are evaluated periodically to determine whether events and circumstances warrant revision of the remaining period of amortization. | ||
Cash Surrender Value of Life Insurance | ' | |
Cash Surrender Value of Life Insurance—Life insurance contracts represent single premium life insurance contracts on the lives of certain officers of the Company. The Company is the beneficiary of these policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in other noninterest income. | ||
Repurchase Agreements | ' | |
Repurchase Agreements—Securities sold under agreements to repurchase are secured borrowings treated as financing activities and are carried at the amounts at which the securities will be subsequently reacquired as specified in the respective agreements. | ||
Deferred Compensation | ' | |
Deferred Compensation—We record the expense of deferred compensation agreements over the service periods of the persons covered under these agreements. | ||
Income Taxes | ' | |
Income Taxes—Deferred tax assets and liabilities are recorded for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Future tax benefits, such as net operating loss carry forwards, are recognized to the extent that realization of such benefits is more likely than not. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the assets and liabilities are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. | ||
In the event the future tax consequences of differences between the financial reporting bases and the tax bases of our assets and liabilities results in deferred tax assets, an evaluation of the probability of being able to realize the future benefits indicated by such assets is required. A valuation allowance is provided when it is more likely than not that a portion or the full amount of the deferred tax asset will not be realized. In assessing the ability to realize the deferred tax assets, management considers the scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. A deferred tax liability is not recognized for portions of the allowance for loan losses for income tax purposes in excess of the financial statement balance. Such a deferred tax liability will only be recognized when it becomes apparent that those temporary differences will reverse in the foreseeable future. | ||
A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50 percent more likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. | ||
The Company recognizes interest and/or penalties related to income tax matters in income tax expense. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation—We expense stock-based compensation based upon the grant date fair value of the related equity award over the requisite service period of the employee. | ||
Basic and Diluted Earnings Per Common Share | ' | |
Basic and Diluted Earnings Per Common Share—Basic earnings per common share (“EPS”) excludes dilution and is computed by dividing net earnings by the weighted‑average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. Diluted EPS is computed by dividing net earnings by the total of the weighted-average number of shares outstanding plus the dilutive effect of outstanding options. The amounts of common stock and additional paid-in capital are adjusted to give retroactive effect to large stock dividends. Small stock dividends, or dividends less than 25% of issued shares at the declaration date, are reflected as an increase in common stock and additional paid-in capital and a decrease in retained earnings for the market value of the shares on the date the dividend is declared. | ||
Comprehensive Income | ' | |
Comprehensive Income—Generally all recognized revenues, expenses, gains and losses are included in net earnings. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net earnings, are components of comprehensive income. We present comprehensive income in a separate consolidated statement of comprehensive income. | ||
Statements of Cash Flows | ' | |
Statements of Cash Flows—For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, federal funds sold, and interest-bearing deposits in other banks with original maturities of less than 90 days. Generally, federal funds are sold for one-day periods. | ||
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements— In July 2012, the FASB issued ASU 2012-02, Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. The amendments in this Update are intended to reduce cost and complexity by providing an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The Update also enhances consistency of impairment testing guidance among long-lived asset categories by permitting entities to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing for impairment, which is equivalent to the impairment testing requirements for other long-lived assets. Under the amendments in this Update, an entity will have an option not to calculate annually the fair value of an indefinite-lived intangible asset if the entity determines that it is not more-likely-than-not that the asset is impaired. The Update is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The adoption of ASU 2012-02 did not have a material impact on the Company’s results of operations, financial position or disclosures. | ||
In January 2013, the FASB issued ASU 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The amendments in this Update applies to derivatives accounted for in accordance with ASC 815 (Derivatives and Hedging), including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities lending transactions that are either offset in accordance with ASC 210-20-45 or ASC 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The effective date of this Update is for fiscal years beginning on or after January 1, 2013 and interim periods within those annual periods. Adoption of this Update did not impact the Company’s consolidated financial statements or the interim notes to the consolidated financial statements. | ||
In February 2013, the FASB issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this Update requires information regarding the impact to net earnings of the reclassification on significant amounts out of accumulated other comprehensive income (“AOCI”) to be presented on either the face of the statement of earnings or in the notes to the financial statements. The amendments in this Update do not change the current reporting requirements for net earnings or AOCI. For public entities, the amendments in this Update are effective prospectively for reporting periods beginning after December 15, 2012. In compliance with the Update, the information required has been included in the Consolidated Statements of Comprehensive Income and Note 17 in these unaudited consolidated financial statements. | ||
Reclassifications | ' | |
Reclassifications—Certain reclassifications have been made to the prior years’ financial statements in order to conform to the classifications adopted for reporting in 2013. The reclassifications had no impact on net income or stockholders’ equity. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2013 | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
Estimated Useful Lives | ' | |
The estimated useful lives used to compute depreciation are: | ||
Buildings and improvements | 10 - 40 years | |
Furniture, fixtures, and equipment | 3 - 10 years | |
Automobiles | 3 - 5 years |
ACQUISITION_ACTIVITY_Tables
ACQUISITION ACTIVITY (Tables) (PSB Financial Corp [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
PSB Financial Corp [Member] | ' | ||||||||||||
Business Acquisition [Line Items] | ' | ||||||||||||
Schedule of business acquisition | ' | ||||||||||||
On December 28, 2012, the Company acquired all of the outstanding common stock of PSB Financial Corporation (“PSB”), the holding company of Many, Louisiana based The Peoples State Bank, for total consideration of $39.5 million, which resulted in goodwill of $18.0 million, as shown in the following table (dollars in thousands): | |||||||||||||
Number of Shares | Amount | ||||||||||||
Equity consideration: | |||||||||||||
Common stock issued | 756,511 | $ | 11,530 | ||||||||||
Preferred stock issued | 99,971 | 9,997 | |||||||||||
Non-equity consideration: | |||||||||||||
Cash | 16,003 | ||||||||||||
Contingent value right | 2,000 | ||||||||||||
Total consideration paid | 39,530 | ||||||||||||
Fair value of net assets acquired including identifiable intangible assets | (21,572 | ) | |||||||||||
Goodwill | $ | 17,958 | |||||||||||
Assets purchased and liabilities assumed and adjustments to fair value for business acquisition | ' | ||||||||||||
The following table provides the assets purchased and the liabilities assumed and the adjustments to fair value (in thousands): | |||||||||||||
As | Fair Value | Fair | |||||||||||
Recorded | |||||||||||||
Assets | By PSB | Adjustments | Value | ||||||||||
Cash | $ | 17,847 | $ | - | $ | 17,847 | |||||||
Federal funds sold | 5,200 | - | 5,200 | ||||||||||
Time deposits held in banks | 172 | - | 172 | ||||||||||
Investment securities | 152,667 | - | 152,667 | ||||||||||
Loans receivable | 269,053 | (9,000 | ) | 260,053 | |||||||||
Fixed assets | 11,845 | 578 | 12,423 | ||||||||||
Core deposit intangible | - | 2,662 | 2,662 | ||||||||||
Cash surrender value of life insurance | 8,234 | - | 8,234 | ||||||||||
Other real estate owned | 838 | - | 838 | ||||||||||
Other assets | 4,635 | 314 | 4,949 | ||||||||||
Total assets acquired | $ | 470,490 | $ | (5,446 | ) | $ | 465,045 | ||||||
Liabilities | |||||||||||||
Deposits | $ | 399,845 | $ | 722 | $ | 400,567 | |||||||
FHLB advances | 25,296 | 1,832 | 27,128 | ||||||||||
Notes payable | 2,000 | - | 2,000 | ||||||||||
Junior subordinated debentures | 13,919 | - | 13,919 | ||||||||||
Other liabilities | 2,606 | (2,747 | ) | (141 | ) | ||||||||
Total liabilities assumed | $ | 443,666 | $ | (193 | ) | 443,473 | |||||||
Fair value of net assets acquired including identifiable intangible assets | $ | 21,572 | |||||||||||
Unaudited Pro forma information | ' | ||||||||||||
In addition, the $1.2 million in merger expenses related to the acquisition are included for the year ended December 31, 2012. | |||||||||||||
December 31, | |||||||||||||
2012 | 2011 | ||||||||||||
Total revenues, net of interest expense | $ | 89,845 | $ | 80,573 | |||||||||
Net income | 14,694 | 10,361 | |||||||||||
Earnings per share – basic | 1.12 | 0.76 | |||||||||||
Earnings per share - diluted | 1.09 | 0.75 | |||||||||||
Loans at the acquisition date | ' | ||||||||||||
Loans at the acquisition date are presented in the following table (in thousands): | |||||||||||||
Acquired | Acquired | Total | |||||||||||
Impaired | Performing | Acquired | |||||||||||
Loans | Loans | Loans | |||||||||||
Commercial, financial, and agricultural | $ | 82 | $ | 59,011 | $ | 59,093 | |||||||
Real estate – construction | - | 16,431 | 16,431 | ||||||||||
Real estate – commercial | 4,205 | 127,866 | 132,071 | ||||||||||
Real estate – residential | 455 | 34,232 | 34,687 | ||||||||||
Installment loans to individuals | - | 17,652 | 17,652 | ||||||||||
Other | - | 119 | 119 | ||||||||||
Total | $ | 4,742 | $ | 255,311 | $ | 260,053 | |||||||
Information about the acquired impaired loans at acquisition | ' | ||||||||||||
The following table presents information about the acquired impaired loans at acquisition (in thousands): | |||||||||||||
Contractually required principal and interest payments | $ | 7,449 | |||||||||||
Non-accretable discount | 2,084 | ||||||||||||
Cash flows expected to be collected | 5,365 | ||||||||||||
Accretable discount | 623 | ||||||||||||
Fair value of loans acquired with a deterioration of credit quality | $ | 4,742 | |||||||||||
Schedule of changes in the carrying amount of the accretable yield for purchased impaired and non-impaired loans | ' | ||||||||||||
The following table presents changes in the carrying amount of the accretable yield for purchased impaired and non-impaired loans for the years ended December 31, 2012 and 2013 (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Balance, beginning of year | $ | 11,400 | $ | - | |||||||||
Acquisition of PSB | - | 11,400 | |||||||||||
Accretion | (4,821 | ) | - | ||||||||||
Net transfers from nonaccretable difference to accretable yield | 368 | - | |||||||||||
Balance, end of year | $ | 6,947 | $ | 11,400 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | ' | ||||||||||||||||||||||||
Available-for-sale Investment Securities | ' | ||||||||||||||||||||||||
The portfolio of securities consisted of the following (in thousands): | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 11,455 | $ | 1 | $ | 191 | $ | 11,265 | |||||||||||||||||
Obligations of state and political subdivisions | 57,925 | 2,296 | 243 | 59,978 | |||||||||||||||||||||
GSE mortgage-backed securities | 146,129 | 2,029 | 2,193 | 145,965 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 73,569 | 212 | 2,894 | 70,887 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 27,082 | 416 | 152 | 27,346 | |||||||||||||||||||||
Other asset-backed securities | 25,204 | 351 | 66 | 25,489 | |||||||||||||||||||||
Collateralized debt obligation | 464 | 271 | - | 735 | |||||||||||||||||||||
$ | 341,828 | $ | 5,576 | $ | 5,739 | $ | 341,665 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 13,422 | $ | 2 | $ | - | $ | 13,424 | |||||||||||||||||
Obligations of state and political subdivisions | 83,093 | 4,328 | - | 87,421 | |||||||||||||||||||||
GSE mortgage-backed securities | 172,932 | 5,887 | - | 178,819 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 101,381 | 652 | 47 | 101,986 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 28,528 | 1,233 | - | 29,761 | |||||||||||||||||||||
Other asset-backed securities | 12,245 | 497 | - | 12,742 | |||||||||||||||||||||
Collateralized debt obligation | 464 | - | - | 464 | |||||||||||||||||||||
$ | 412,065 | $ | 12,599 | $ | 47 | $ | 424,617 | ||||||||||||||||||
Held-to-maturity Securities | ' | ||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 47,377 | $ | 38 | $ | 2,586 | $ | 44,829 | |||||||||||||||||
GSE mortgage-backed securities | 78,272 | 148 | 1,079 | 77,341 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 14,189 | - | 979 | 13,210 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 15,685 | 103 | - | 15,788 | |||||||||||||||||||||
$ | 155,523 | $ | 289 | $ | 4,644 | $ | 151,168 | ||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | |||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 42,900 | $ | 7 | $ | 7 | $ | 42,900 | |||||||||||||||||
GSE mortgage-backed securities | 89,383 | 2,819 | - | 92,202 | |||||||||||||||||||||
Collateralized mortgage obligations: residential | 5,009 | - | - | 5,009 | |||||||||||||||||||||
Collateralized mortgage obligations: commercial | 16,232 | 581 | - | 16,813 | |||||||||||||||||||||
$ | 153,524 | $ | 3,407 | $ | 7 | $ | 156,924 | ||||||||||||||||||
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | ' | ||||||||||||||||||||||||
With the exception of 3 private-label collateralized mortgage obligations (“CMOs”) with a combined balance remaining of $59,000 and $96,000 at December 31, 2013 and 2012, respectively, all of the Company’s CMOs are government-sponsored enterprise securities. | |||||||||||||||||||||||||
The amortized cost and fair value of debt securities at December 31, 2013 by contractual maturity are shown below (in thousands). Except for mortgage backed securities, collateralized mortgage obligations, other assets backed securities, and collateralized debt obligations, expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Due in one year or less | $ | 12,070 | $ | 12,228 | |||||||||||||||||||||
Due after one year through five years | 35,119 | 36,194 | |||||||||||||||||||||||
Due after five years through ten years | 17,001 | 17,851 | |||||||||||||||||||||||
Due after ten years | 5,190 | 4,970 | |||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | |||||||||||||||||||||||||
Residential | 219,698 | 216,852 | |||||||||||||||||||||||
Commercial | 27,082 | 27,346 | |||||||||||||||||||||||
Other asset-backed securities | 25,204 | 25,489 | |||||||||||||||||||||||
Collateralized debt obligation | 464 | 735 | |||||||||||||||||||||||
$ | 341,828 | $ | 341,665 | ||||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Due in one year or less | $ | 100 | $ | 100 | |||||||||||||||||||||
Due after one year through five years | 2,198 | 2,182 | |||||||||||||||||||||||
Due after five years through ten years | 7,273 | 7,072 | |||||||||||||||||||||||
Due after ten years | 37,806 | 35,475 | |||||||||||||||||||||||
Mortgage-backed securities and collateralized mortgage obligations: | |||||||||||||||||||||||||
Residential | 92,461 | 90,551 | |||||||||||||||||||||||
Commercial | 15,685 | 15,788 | |||||||||||||||||||||||
$ | 155,523 | $ | 151,168 | ||||||||||||||||||||||
Investment Securities with Unrealized Losses | ' | ||||||||||||||||||||||||
Details concerning investment securities with unrealized losses are as follows (in thousands): | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government sponsored enterprises | $ | 10,463 | $ | 191 | $ | - | $ | - | $ | 10,463 | $ | 191 | |||||||||||||
Obligations of state and political subdivisions | 4,256 | 243 | - | - | 4,256 | 243 | |||||||||||||||||||
GSE mortgage-backed securities | 68,028 | 2,193 | - | - | 68,028 | 2,193 | |||||||||||||||||||
Collateralized mortgage obligations: residential | 56,975 | 2,563 | 4,371 | 331 | 61,346 | 2,894 | |||||||||||||||||||
Collateralized mortgage obligations: commercial | 4,282 | 152 | - | - | 4,282 | 152 | |||||||||||||||||||
Other asset-backed securities | 13,099 | 66 | - | - | 13,099 | 66 | |||||||||||||||||||
$ | 157,103 | $ | 5,408 | $ | 4,371 | $ | 331 | $ | 161,474 | $ | 5,739 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
Collateralized mortgage obligations: residential | $ | 10,085 | $ | 45 | $ | 96 | $ | 2 | $ | 10,181 | $ | 47 | |||||||||||||
31-Dec-13 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair Value | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Unrealized | |||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 42,246 | $ | 2,569 | $ | 685 | $ | 17 | $ | 42,931 | $ | 2,586 | |||||||||||||
GSE mortgage-backed securities | 31,042 | 1,079 | - | - | 31,042 | 1,079 | |||||||||||||||||||
Collateralized mortgage obligations: residential | 13,210 | 979 | - | - | 13,210 | 979 | |||||||||||||||||||
$ | 86,498 | $ | 4,627 | $ | 685 | $ | 17 | $ | 87,183 | $ | 4,644 | ||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Securities with losses | Securities with losses | Total | |||||||||||||||||||||||
under 12 months | over 12 months | ||||||||||||||||||||||||
Fair | Gross | Fair | Gross | Fair | Gross | ||||||||||||||||||||
Value | Unrealized | Value | Unrealized | Value | Unrealized | ||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
Obligations of state and political subdivisions | $ | 1,128 | $ | 7 | $ | - | $ | - | $ | 1,128 | $ | 7 |
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
LOANS [Abstract] | ' | ||||||||||||||||||||||||||||||||
Components of Loans Receivable | ' | ||||||||||||||||||||||||||||||||
The loan portfolio consisted of the following (in thousands): | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | 403,976 | $ | 315,655 | |||||||||||||||||||||||||||||
Real estate – construction | 82,691 | 75,334 | |||||||||||||||||||||||||||||||
Real estate – commercial | 397,135 | 414,384 | |||||||||||||||||||||||||||||||
Real estate – residential | 146,841 | 142,858 | |||||||||||||||||||||||||||||||
Installment loans to individuals | 97,459 | 90,561 | |||||||||||||||||||||||||||||||
Lease financing receivable | 5,542 | 5,769 | |||||||||||||||||||||||||||||||
Other | 3,910 | 2,379 | |||||||||||||||||||||||||||||||
1,137,554 | 1,046,940 | ||||||||||||||||||||||||||||||||
Less allowance for loan losses | (8,779 | ) | (7,370 | ) | |||||||||||||||||||||||||||||
$ | 1,128,775 | $ | 1,039,570 | ||||||||||||||||||||||||||||||
Summary of Activity in Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||
An analysis of the activity in the allowance for loan losses is as follows (in thousands): | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 7,370 | $ | 7,276 | $ | 8,813 | |||||||||||||||||||||||||||
Provision for loan losses | 3,050 | 2,050 | 3,925 | ||||||||||||||||||||||||||||||
Recoveries | 265 | 300 | 310 | ||||||||||||||||||||||||||||||
Loans charged-off | (1,906 | ) | (2,256 | ) | (5,772 | ) | |||||||||||||||||||||||||||
Balance, end of year | $ | 8,779 | $ | 7,370 | $ | 7,276 | |||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans | ' | ||||||||||||||||||||||||||||||||
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2013 and 2012 is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Coml, fin, | Construction | Commercial | Residential | Installment | Lease | Other | Total | ||||||||||||||||||||||||||
and agric | loans to | financing receivable | |||||||||||||||||||||||||||||||
individuals | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,535 | $ | 2,147 | $ | 2,166 | $ | 936 | $ | 543 | $ | 41 | $ | 2 | $ | 7,370 | |||||||||||||||||
Charge-offs | (935 | ) | - | (18 | ) | (129 | ) | (824 | ) | - | - | (1,906 | ) | ||||||||||||||||||||
Recoveries | 80 | 8 | 29 | 39 | 109 | - | - | 265 | |||||||||||||||||||||||||
Provision | 3,226 | (1,109 | ) | (788 | ) | 295 | 1,445 | (20 | ) | 1 | 3,050 | ||||||||||||||||||||||
Ending balance | $ | 3,906 | $ | 1,046 | $ | 1,389 | $ | 1,141 | $ | 1,273 | $ | 21 | $ | 3 | $ | 8,779 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 168 | $ | 3 | $ | 54 | $ | 60 | $ | 120 | $ | - | $ | - | $ | 405 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,738 | $ | 1,043 | $ | 1,335 | $ | 1,081 | $ | 1,153 | $ | 21 | $ | 3 | $ | 8,374 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 403,976 | $ | 82,691 | $ | 397,135 | $ | 146,841 | $ | 97,459 | $ | 5,542 | $ | 3,910 | $ | 1,137,554 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,241 | $ | 100 | $ | 2,213 | $ | 900 | $ | 271 | $ | - | $ | - | $ | 4,725 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 402,735 | $ | 82,591 | $ | 394,218 | $ | 145,773 | $ | 97,188 | $ | 5,542 | $ | 3,910 | $ | 1,131,957 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | - | $ | - | $ | 704 | $ | 168 | $ | - | $ | - | $ | - | $ | 872 | |||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||
Coml, fin, | Construction | Commercial | Residential | Installment | Lease | Other | Total | ||||||||||||||||||||||||||
and agric | loans to | financing receivable | |||||||||||||||||||||||||||||||
individuals | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,734 | $ | 1,661 | $ | 2,215 | $ | 936 | $ | 710 | $ | 19 | $ | 1 | $ | 7,276 | |||||||||||||||||
Charge-offs | (1,054 | ) | - | (550 | ) | (126 | ) | (526 | ) | - | - | (2,256 | ) | ||||||||||||||||||||
Recoveries | 181 | 18 | 1 | 2 | 98 | - | - | 300 | |||||||||||||||||||||||||
Provision | 674 | 468 | 500 | 124 | 261 | 22 | 1 | 2,050 | |||||||||||||||||||||||||
Ending balance | $ | 1,535 | $ | 2,147 | $ | 2,166 | $ | 936 | $ | 543 | $ | 41 | $ | 2 | $ | 7,370 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 391 | $ | 57 | $ | 35 | $ | 30 | $ | 114 | $ | - | $ | - | $ | 627 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,144 | $ | 2,090 | $ | 2,131 | $ | 906 | $ | 429 | $ | 41 | $ | 2 | $ | 6,743 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 315,655 | $ | 75,334 | $ | 414,384 | $ | 142,858 | $ | 90,561 | $ | 5,769 | $ | 2,379 | $ | 1,046,940 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 1,636 | $ | 936 | $ | 2,911 | $ | 1,627 | $ | 330 | $ | - | $ | - | $ | 7,440 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 313,937 | $ | 74,398 | $ | 407,267 | $ | 140,777 | $ | 90,231 | $ | 5,769 | $ | 2,379 | $ | 1,034,758 | |||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 82 | $ | - | $ | 4,206 | $ | 454 | $ | - | $ | - | $ | - | $ | 4,742 | |||||||||||||||||
Age Analysis of Past Due Loans by Class of Loans | ' | ||||||||||||||||||||||||||||||||
An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Total Loans | Recorded | |||||||||||||||||||||||||||
Days | Days | than 90 | Past | Investment | |||||||||||||||||||||||||||||
Past Due | Past | Days | Due | > 90 days | |||||||||||||||||||||||||||||
Due | Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 4,350 | $ | 208 | $ | 1,256 | $ | 5,814 | $ | 398,162 | $ | 403,976 | $ | 26 | |||||||||||||||||||
Commercial real estate - construction | 36 | - | 63 | 99 | 64,794 | 64,893 | - | ||||||||||||||||||||||||||
Commercial real estate - other | 1,230 | 1,447 | 2,395 | 5,072 | 392,063 | 397,135 | 141 | ||||||||||||||||||||||||||
Residential - construction | 149 | - | - | 149 | 17,649 | 17,798 | - | ||||||||||||||||||||||||||
Residential - prime | 2,984 | 870 | 307 | 4,161 | 142,680 | 146,841 | - | ||||||||||||||||||||||||||
Consumer - credit card | 36 | - | 7 | 43 | 6,163 | 6,206 | 7 | ||||||||||||||||||||||||||
Consumer - other | 767 | 102 | 269 | 1,138 | 90,115 | 91,253 | 4 | ||||||||||||||||||||||||||
Lease financing receivable | - | - | - | - | 5,542 | 5,542 | - | ||||||||||||||||||||||||||
Other loans | 125 | - | - | 125 | 3,785 | 3,910 | - | ||||||||||||||||||||||||||
$ | 9,677 | $ | 2,627 | $ | 4,297 | $ | 16,601 | $ | 1,120,953 | $ | 1,137,554 | $ | 178 | ||||||||||||||||||||
December 31, 2012 (1) | |||||||||||||||||||||||||||||||||
30-59 | 60-89 | Greater | Total | Current | Total Loans | Recorded | |||||||||||||||||||||||||||
Days | Days | than 90 | Past | Investment | |||||||||||||||||||||||||||||
Past Due | Past | Days | Due | > 90 days | |||||||||||||||||||||||||||||
Due | Past | and | |||||||||||||||||||||||||||||||
Due | Accruing | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 2,220 | $ | 321 | $ | 2,580 | $ | 5,121 | $ | 310,534 | $ | 315,655 | $ | 1,019 | |||||||||||||||||||
Commercial real estate - construction | 66 | 96 | 101 | 263 | 58,087 | 58,350 | - | ||||||||||||||||||||||||||
Commercial real estate - other | 4,123 | 2,108 | 3,577 | 9,808 | 404,576 | 414,384 | 952 | ||||||||||||||||||||||||||
Residential - construction | - | - | - | - | 16,984 | 16,984 | - | ||||||||||||||||||||||||||
Residential - prime | 1,140 | 239 | 1,121 | 2,500 | 140,358 | 142,858 | - | ||||||||||||||||||||||||||
Consumer - credit card | 24 | 2 | 15 | 41 | 6,766 | 6,807 | 15 | ||||||||||||||||||||||||||
Consumer - other | 421 | 134 | 186 | 741 | 83,013 | 83,754 | - | ||||||||||||||||||||||||||
Lease financing receivable | - | - | - | - | 5,769 | 5,769 | - | ||||||||||||||||||||||||||
Other loans | 87 | - | - | 87 | 2,292 | 2,379 | - | ||||||||||||||||||||||||||
$ | 8,081 | $ | 2,900 | $ | 7,580 | $ | 18,561 | $ | 1,028,379 | $ | 1,046,940 | $ | 1,986 | ||||||||||||||||||||
(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. | |||||||||||||||||||||||||||||||||
Loans on Nonaccrual Status | ' | ||||||||||||||||||||||||||||||||
Non-accrual loans are as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 (1) | ||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 1,272 | $ | 1,777 | |||||||||||||||||||||||||||||
Commercial real estate - construction | 100 | 941 | |||||||||||||||||||||||||||||||
Commercial real estate - other | 2,290 | 3,009 | |||||||||||||||||||||||||||||||
Residential - construction | - | - | |||||||||||||||||||||||||||||||
Residential - prime | 1,153 | 2,505 | |||||||||||||||||||||||||||||||
Consumer - credit card | - | - | |||||||||||||||||||||||||||||||
Consumer - other | 284 | 409 | |||||||||||||||||||||||||||||||
Lease financing receivable | - | - | |||||||||||||||||||||||||||||||
Other | - | - | |||||||||||||||||||||||||||||||
$ | 5,099 | $ | 8,276 | ||||||||||||||||||||||||||||||
Impaired Loans by Class of Loans | ' | ||||||||||||||||||||||||||||||||
Loans that are individually evaluated for impairment are as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 671 | $ | 1,107 | $ | - | $ | 617 | $ | 3 | |||||||||||||||||||||||
Commercial real estate – construction | 61 | 61 | - | 416 | - | ||||||||||||||||||||||||||||
Commercial real estate – other | 1,850 | 2,324 | - | 2,190 | 8 | ||||||||||||||||||||||||||||
Residential – prime | 525 | 525 | - | 1,050 | 14 | ||||||||||||||||||||||||||||
Consumer – other | 66 | 66 | - | 90 | 1 | ||||||||||||||||||||||||||||
Subtotal: | 3,173 | 4,083 | - | 4,363 | 26 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | 570 | 570 | 168 | 821 | 3 | ||||||||||||||||||||||||||||
Commercial real estate – construction | 39 | 39 | 3 | 102 | 1 | ||||||||||||||||||||||||||||
Commercial real estate – other | 363 | 363 | 54 | 372 | 11 | ||||||||||||||||||||||||||||
Residential – prime | 375 | 395 | 60 | 214 | 4 | ||||||||||||||||||||||||||||
Consumer – other | 205 | 205 | 120 | 211 | 2 | ||||||||||||||||||||||||||||
Subtotal: | 1,552 | 1,572 | 405 | 1,720 | 21 | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | 3,554 | 4,464 | 225 | 4,518 | 26 | ||||||||||||||||||||||||||||
Residential | 900 | 920 | 60 | 1,264 | 18 | ||||||||||||||||||||||||||||
Consumer | 271 | 271 | 120 | 301 | 3 | ||||||||||||||||||||||||||||
Grand total: | $ | 4,725 | $ | 5,655 | $ | 405 | $ | 6,083 | $ | 47 | |||||||||||||||||||||||
(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. | |||||||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | $ | 564 | $ | 675 | $ | - | $ | 861 | $ | 5 | |||||||||||||||||||||||
Commercial real estate – construction | 771 | 770 | - | 834 | 1 | ||||||||||||||||||||||||||||
Commercial real estate – other | 2,530 | 3,059 | - | 1,780 | 38 | ||||||||||||||||||||||||||||
Residential – prime | 1,575 | 1,575 | - | 1,213 | 26 | ||||||||||||||||||||||||||||
Consumer – other | 114 | 122 | - | 81 | 1 | ||||||||||||||||||||||||||||
Subtotal: | 5,554 | 6,201 | - | 4,769 | 71 | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial, financial, and agricultural | 1,072 | 1,072 | 391 | 1,128 | 21 | ||||||||||||||||||||||||||||
Commercial real estate – construction | 165 | 165 | 57 | 85 | 7 | ||||||||||||||||||||||||||||
Commercial real estate – other | 381 | 381 | 35 | 811 | 3 | ||||||||||||||||||||||||||||
Residential – prime | 52 | 52 | 30 | 172 | 4 | ||||||||||||||||||||||||||||
Consumer – other | 216 | 216 | 114 | 228 | 6 | ||||||||||||||||||||||||||||
Subtotal: | 1,886 | 1,886 | 627 | 2,424 | 41 | ||||||||||||||||||||||||||||
Totals: | |||||||||||||||||||||||||||||||||
Commercial | 5,483 | 6,122 | 483 | 5,499 | 75 | ||||||||||||||||||||||||||||
Residential | 1,627 | 1,627 | 30 | 1,385 | 30 | ||||||||||||||||||||||||||||
Consumer | 330 | 338 | 114 | 309 | 7 | ||||||||||||||||||||||||||||
Grand total: | $ | 7,440 | $ | 8,087 | $ | 627 | $ | 7,193 | $ | 112 | |||||||||||||||||||||||
Credit Quality Indicators by Class of Loans | ' | ||||||||||||||||||||||||||||||||
The following tables present the classes of loans by risk rating (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial, | Commercial | Commercial | Percentage | ||||||||||||||||||||||||||||||
financial, and agricultural | real estate –construction | real estate – | of Total | ||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||
Pass | $ | 397,513 | $ | 63,577 | $ | 371,618 | 96.15 | % | |||||||||||||||||||||||||
Special mention | 2,962 | 49 | 8,781 | 1.36 | % | ||||||||||||||||||||||||||||
Substandard | 3,272 | 1,267 | 16,736 | 2.46 | % | ||||||||||||||||||||||||||||
Doubtful | 229 | - | - | 0.03 | % | ||||||||||||||||||||||||||||
$ | 403,976 | $ | 64,893 | $ | 397,135 | 100 | % | ||||||||||||||||||||||||||
Consumer Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Residential – construction | Residential – | Residential – | Percentage | ||||||||||||||||||||||||||||||
prime | subprime | of Total | |||||||||||||||||||||||||||||||
Pass | $ | 17,798 | $ | 143,790 | $ | - | 98.15 | % | |||||||||||||||||||||||||
Special mention | - | 548 | - | 0.33 | % | ||||||||||||||||||||||||||||
Substandard | - | 2,503 | - | 1.52 | % | ||||||||||||||||||||||||||||
$ | 17,798 | $ | 146,841 | $ | - | 100 | % | ||||||||||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Consumer - | Consumer – | Lease | Other | Percentage of | |||||||||||||||||||||||||||||
credit card | other | financing | Total | ||||||||||||||||||||||||||||||
receivable | |||||||||||||||||||||||||||||||||
Performing | $ | 6,196 | $ | 90,978 | $ | 5,542 | $ | 3,910 | 99.73 | % | |||||||||||||||||||||||
Nonperforming | 10 | 275 | - | - | 0.27 | % | |||||||||||||||||||||||||||
$ | 6,206 | $ | 91,253 | $ | 5,542 | $ | 3,910 | 100 | % | ||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial, | Commercial | Commercial | Percentage | ||||||||||||||||||||||||||||||
financial, and agricultural | real estate –construction | real estate – | of Total | ||||||||||||||||||||||||||||||
other | |||||||||||||||||||||||||||||||||
Pass | $ | 304,219 | $ | 54,737 | $ | 396,077 | 95.76 | % | |||||||||||||||||||||||||
Special mention | 5,748 | 684 | 6,224 | 1.61 | % | ||||||||||||||||||||||||||||
Substandard | 4,503 | 2,925 | 7,514 | 1.9 | % | ||||||||||||||||||||||||||||
Doubtful | 1,185 | 4 | 4,569 | 0.73 | % | ||||||||||||||||||||||||||||
$ | 315,655 | $ | 58,350 | $ | 414,384 | 100 | % | ||||||||||||||||||||||||||
Consumer Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Residential – construction | Residential – | Residential | Percentage | ||||||||||||||||||||||||||||||
prime | – subprime | of Total | |||||||||||||||||||||||||||||||
Pass | $ | 16,785 | $ | 137,681 | $ | - | 96.64 | % | |||||||||||||||||||||||||
Special mention | - | 1,612 | - | 1.01 | % | ||||||||||||||||||||||||||||
Substandard | 199 | 3,565 | - | 2.35 | % | ||||||||||||||||||||||||||||
$ | 16,984 | $ | 142,858 | $ | - | 100 | % | ||||||||||||||||||||||||||
Consumer and Commercial Credit Exposure | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Consumer - | Consumer – | Lease | Other | Percentage | |||||||||||||||||||||||||||||
credit card | other | financing | of Total | ||||||||||||||||||||||||||||||
receivable | |||||||||||||||||||||||||||||||||
Performing | $ | 6,792 | $ | 83,347 | $ | 5,769 | $ | 2,379 | 99.57 | % | |||||||||||||||||||||||
Nonperforming | 15 | 407 | - | - | 0.43 | % | |||||||||||||||||||||||||||
$ | 6,807 | $ | 83,754 | $ | 5,769 | $ | 2,379 | 100 | % | ||||||||||||||||||||||||
Modifications by Class of Loans | ' | ||||||||||||||||||||||||||||||||
Information about the Company’s TDRs is as follows (in thousands): | |||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||
Current | Past Due | Nonaccrual | Total TDRs | ||||||||||||||||||||||||||||||
Greater | TDRs | ||||||||||||||||||||||||||||||||
Than 30 | |||||||||||||||||||||||||||||||||
Days | |||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | - | $ | 23 | $ | 233 | $ | 256 | |||||||||||||||||||||||||
Real estate - commercial | 156 | - | - | 156 | |||||||||||||||||||||||||||||
$ | 156 | $ | 23 | $ | 233 | $ | 412 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Current | Past Due | Nonaccrual | Total TDRs | ||||||||||||||||||||||||||||||
Greater | TDRs | ||||||||||||||||||||||||||||||||
Than 30 | |||||||||||||||||||||||||||||||||
Days | |||||||||||||||||||||||||||||||||
Commercial, financial and agricultural | $ | - | $ | - | $ | 232 | $ | 232 | |||||||||||||||||||||||||
Real estate - commercial | 3,905 | - | - | 3,905 | |||||||||||||||||||||||||||||
$ | 3,905 | $ | - | $ | 232 | $ | 4,137 | ||||||||||||||||||||||||||
Activity in Related Party Loans and Commitments to Extend Credit | ' | ||||||||||||||||||||||||||||||||
An analysis of the 2013 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands): | |||||||||||||||||||||||||||||||||
Balance, beginning of year | $ | 6,921 | |||||||||||||||||||||||||||||||
New loans | - | ||||||||||||||||||||||||||||||||
Repayments and adjustments | (3,807 | ) | |||||||||||||||||||||||||||||||
Balance, end of year | $ | 3,114 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | ' | ||||||||
Premises and equipment | ' | ||||||||
Premises and equipment consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Land | $ | 16,771 | $ | 14,949 | |||||
Buildings and improvements | 46,091 | 40,505 | |||||||
Furniture, fixtures, and equipment | 26,244 | 23,775 | |||||||
Automobiles | 1,299 | 812 | |||||||
Leasehold improvements | 10,146 | 10,047 | |||||||
Construction-in-process | 4,489 | 1,562 | |||||||
105,040 | 91,650 | ||||||||
Less accumulated depreciation and amortization | (32,697 | ) | (28,189 | ) | |||||
$ | 72,343 | $ | 63,461 |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS [Abstract] | ' | ||||||||
Changes to carrying amount of goodwill | ' | ||||||||
Changes to the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are provided in the following table (in thousands): | |||||||||
Balance, December 31, 2011 | $ | 24,959 | |||||||
Adjustment to goodwill | (136 | ) | |||||||
Goodwill acquired during the year | 17,958 | ||||||||
Balance, December 31, 2012 | 42,781 | ||||||||
Adjustment to goodwill | (610 | ) | |||||||
Balance, December 31, 2013 | $ | 42,171 | |||||||
Summary of core deposit intangible assets | ' | ||||||||
A summary of core deposit intangible assets as of December 31, 2013 and 2012 is as follows (in thousands): | |||||||||
2013 | 2012 | ||||||||
Gross carrying amount | $ | 11,674 | $ | 11,674 | |||||
Less accumulated amortization | (3,733 | ) | (2,627 | ) | |||||
Net carrying amount | $ | 7,941 | $ | 9,047 | |||||
Estimated amortization expense on core deposit intangible assets | ' | ||||||||
The estimated amortization expense on the core deposit intangible assets for the five succeeding years and thereafter is as follows (in thousands): | |||||||||
2014 | $ | 1,106 | |||||||
2015 | 1,106 | ||||||||
2016 | 1,106 | ||||||||
2017 | 1,106 | ||||||||
2018 | 1,106 | ||||||||
Thereafter | 2,411 | ||||||||
$ | 7,941 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
DEPOSITS [Abstract] | ' | ||||||||
Deposits | ' | ||||||||
Deposits consisted of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Noninterest-bearing | $ | 383,257 | $ | 381,083 | |||||
Savings and money market | 465,748 | 402,121 | |||||||
NOW accounts | 429,279 | 456,222 | |||||||
Time deposits less than $100 | 112,782 | 133,304 | |||||||
Time deposits $100 or more | 127,737 | 179,174 | |||||||
$ | 1,518,803 | $ | 1,551,904 | ||||||
Maturities for certificates of deposits | ' | ||||||||
Time deposits held consist primarily of certificates of deposits. The maturities for these deposits at December 31, 2013 are as follows (in thousands): | |||||||||
2014 | $ | 177,339 | |||||||
2015 | 41,369 | ||||||||
2016 | 11,730 | ||||||||
2017 | 5,610 | ||||||||
2018 | 4,470 | ||||||||
Thereafter | 1 | ||||||||
$ | 240,519 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
NOTES PAYABLE [Abstract] | ' | ||||||||
Notes payable | ' | ||||||||
Notes payable at December 31, 2013 and 2012 is summarized as follows (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Long-term Federal Home Loan Bank advances | $ | 26,703 | $ | 27,128 | |||||
Notes payable – First National Bankers Bank | 1,000 | 2,000 | |||||||
$ | 27,703 | $ | 29,128 | ||||||
FHLB advances | ' | ||||||||
The scheduled maturities of long-term FHLB advances at December 31, 2013 are summarized as follows (in thousands): | |||||||||
Amount | Weighted | ||||||||
Average Rate | |||||||||
2014 | $ | 426 | 5.057 | % | |||||
2015 | 426 | 5.057 | % | ||||||
2016 | 427 | 5.057 | % | ||||||
2017 | 15,403 | 3.412 | % | ||||||
2019 | 10,021 | 1.985 | % | ||||||
Total FHLB advances | $ | 26,703 | |||||||
Schedule of Maturities of Notes Payable | ' | ||||||||
The scheduled maturities of the notes payable with First National Bankers Bank as of December 31, 2013 is as follows (in thousands): | |||||||||
2014 | $ | 250 | |||||||
2015 | 250 | ||||||||
2016 | 250 | ||||||||
2017 | 250 | ||||||||
$ | 1,000 |
JUNIOR_SUBORDINATED_DEBENTURES1
JUNIOR SUBORDINATED DEBENTURES (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
JUNIOR SUBORDINATED DEBENTURES [Abstract] | ' | ||||||||||||||
Description of junior subordinated debentures | ' | ||||||||||||||
A description of the junior subordinated debentures outstanding is as follows (in thousands): | |||||||||||||||
December 31, | |||||||||||||||
Date Issued | Maturity Date | Interest Rate | Callable After | 2013 | 2012 | ||||||||||
22-Feb-01 | 22-Feb-31 | 10.20% | 22-Feb-11 | $ | 7,217 | $ | 7,217 | ||||||||
July 31, 20011 | 9-Jul-31 | 3 month LIBOR plus 3.30% | 31-Jul-06 | 5,671 | 5,671 | ||||||||||
20-Sep-04 | 20-Sep-34 | 3 month LIBOR plus 2.50% | 20-Sep-09 | 8,248 | 8,248 | ||||||||||
October 12, 20061 | 12-Oct-36 | 3 month LIBOR plus 1.85% | 26-Jun-11 | 5,155 | 5,155 | ||||||||||
June 21, 20071 | 21-Jun-37 | 3 month LIBOR plus 1.70% | 15-Jun-12 | 3,093 | 3,093 | ||||||||||
$ | 29,384 | $ | 29,384 | ||||||||||||
(1) Assumed in PSB acquisition. |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||
Future annual minimum rental payments due under non-cancellable operating leases | ' | ||||
At December 31, 2013, future annual minimum rental payments due under non-cancellable operating leases are as follows (in thousands): | |||||
2014 | $ | 2,194 | |||
2015 | 2,001 | ||||
2016 | 1,702 | ||||
2017 | 1,485 | ||||
2018 | 1,229 | ||||
Thereafter | 10,159 | ||||
$ | 18,770 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES [Abstract] | ' | ||||||||||||
Components of deferred tax assets and liabilities | ' | ||||||||||||
Significant components of our deferred tax assets and liabilities as of December 31, 2013 and 2012 are as follows (in thousands): | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 5,359 | $ | 6,325 | |||||||||
Alternative minimum tax credit | - | 1,300 | |||||||||||
Other | 2,193 | 2,575 | |||||||||||
Total deferred tax assets | 7,552 | 10,200 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment | 5,153 | 4,958 | |||||||||||
FHLB stock dividends | 59 | 57 | |||||||||||
Unrealized gains on securities | 1,227 | 5,914 | |||||||||||
Other | 1,884 | 1,747 | |||||||||||
Total deferred tax liabilities | 8,323 | 12,676 | |||||||||||
Net deferred tax liability | $ | 771 | $ | 2,476 | |||||||||
Components of income tax expense | ' | ||||||||||||
Components of income tax expense are as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | $ | 3,323 | $ | 2,128 | $ | 1,055 | |||||||
Deferred expense (benefit) | 2,828 | 1,651 | (491 | ) | |||||||||
Total income tax expense | $ | 6,151 | $ | 3,779 | $ | 564 | |||||||
Income tax reconciliation | ' | ||||||||||||
The provision for federal income taxes differs from the amount computed by applying the U.S. Federal income tax statutory rate of 35% for 2013 and 2012 and 34% for 2011 on pre-tax income as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Taxes calculated at statutory rate | $ | 7,114 | $ | 4,697 | $ | 1,713 | |||||||
Increase (decrease) resulting from: | |||||||||||||
Tax-exempt interest, net | (1,095 | ) | (988 | ) | (1,121 | ) | |||||||
Tax credits | - | - | - | ||||||||||
Other | 132 | 70 | (28 | ) | |||||||||
$ | 6,151 | $ | 3,779 | $ | 564 |
EMPLOYEE_STOCK_PLANS_Tables
EMPLOYEE STOCK PLANS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
EMPLOYEE STOCK PLANS [Abstract] | ' | ||||||||||||||||
Stock Option Activity | ' | ||||||||||||||||
The following table summarizes activity relating to stock options: | |||||||||||||||||
Options | Weighted | Weighted Average Remaining | Aggregate | ||||||||||||||
Average | Contractual Term | Intrinsic Value | |||||||||||||||
Exercise Price | |||||||||||||||||
Outstanding at December 31, 2010 | 53,918 | $ | 12.86 | ||||||||||||||
Exercised | (10,240 | ) | 6.6 | ||||||||||||||
Forfeited | (8,578 | ) | 15.39 | ||||||||||||||
Outstanding at December 31, 2011 | 35,100 | $ | 14.07 | ||||||||||||||
Granted | 294,803 | 12.97 | |||||||||||||||
Exercised | (14,117 | ) | 7.15 | ||||||||||||||
Forfeited | (7,941 | ) | 12.97 | ||||||||||||||
Outstanding at December 31, 2012 | 307,845 | $ | 13.36 | ||||||||||||||
Granted | 131,280 | 15.82 | |||||||||||||||
Exercised | (6,155 | ) | 11.1 | ||||||||||||||
Forfeited | (328 | ) | 20.88 | ||||||||||||||
Outstanding at December 31, 2013 | 432,642 | $ | 14.13 | 8.51 | $ | 1,612,000 | |||||||||||
Exercisable at December 31, 2011 | 35,100 | $ | 14.07 | ||||||||||||||
Exercisable at December 31, 2012 | 20,983 | 18.72 | |||||||||||||||
Exercisable at December 31, 2013 | 70,457 | 14.81 | 6.48 | $ | 215,000 | ||||||||||||
Summary of changes in unvested options | ' | ||||||||||||||||
A summary of changes in unvested options for the period ended December 31, 2013 is as follows: | |||||||||||||||||
Number | Weighted Average | ||||||||||||||||
of | Grant Date | ||||||||||||||||
Options | Fair Value | ||||||||||||||||
Unvested options outstanding, beginning of year | 286,862 | $ | 4.41 | ||||||||||||||
Granted | 131,280 | 5.59 | |||||||||||||||
Vested | (55,957 | ) | 4.41 | ||||||||||||||
Forfeited | - | - | |||||||||||||||
Unvested options outstanding, end of year | 362,185 | $ | 4.84 | ||||||||||||||
Assumptions were made in estimating the fair value of the options | ' | ||||||||||||||||
The following weighted average assumptions were made in estimating the fair value of the options granted in 2013 and 2012: | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Risk free rate of interest | 1.3 | % | 0.7 | % | |||||||||||||
Expected volatility | 47.4 | % | 46.1 | % | |||||||||||||
Dividend yield | 2.1 | % | 2 | % | |||||||||||||
Average expected life (in years) | 5 | 5 | |||||||||||||||
Weighted-average grant-date fair value | $ | 5.59 | $ | 4.41 | |||||||||||||
Non-vested Restricted Stock Awards Activity | ' | ||||||||||||||||
The following table summarizes activity relating to non-vested restricted stock awards: | |||||||||||||||||
2013 | |||||||||||||||||
Balance at beginning of year | 15,313 | ||||||||||||||||
Granted | - | ||||||||||||||||
Forfeited | (883 | ) | |||||||||||||||
Vested | 14,430 | ||||||||||||||||
Balance at end of year | - |
OTHER_COMPREHENSIVE_LOSS_INCOM1
OTHER COMPREHENSIVE (LOSS) INCOME (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
Component of other comprehensive income (loss) | ' | ||||||||||||||||||||||||||||||||||||
The following is a summary of the tax effects allocated to each component of other comprehensive (loss) income (in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Before | Tax | Net of | Before | Tax | Net of | Before | Tax | Net of | |||||||||||||||||||||||||||||
Tax | Effect | Tax | Tax | Effect | Tax | Tax | Effect | Tax | |||||||||||||||||||||||||||||
Amount | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||
Change in unrealized gain during period | $ | (12,481 | ) | $ | 4,368 | $ | (8,113 | ) | $ | 831 | $ | (291 | ) | $ | 540 | $ | 5,507 | $ | (1,872 | ) | $ | 3,635 | |||||||||||||||
Reclassification adjustment for gains included in net income | (234 | ) | 82 | (152 | ) | (204 | ) | 71 | (133 | ) | (99 | ) | 34 | (65 | ) | ||||||||||||||||||||||
Total other comprehensive (loss) income | $ | (12,715 | ) | $ | 4,450 | $ | (8,265 | ) | $ | 627 | $ | (220 | ) | $ | 407 | $ | 5,408 | $ | (1,838 | ) | $ | 3,570 | |||||||||||||||
Reclassification out of accumulated other comprehensive income [Text Block] | ' | ||||||||||||||||||||||||||||||||||||
The reclassifications out of accumulated other comprehensive income into net earnings are presented below (in thousands): | |||||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||||||
Details about | Reclassifications Out of Accumulated Other Comprehensive Income | Statement of | Reclassifications | Statement of | Reclassifications | Statement of | |||||||||||||||||||||||||||||||
Accumulated Other | Earnings Line | Out of | Earnings | Out of | Earnings Line | ||||||||||||||||||||||||||||||||
Comprehensive Income | Item | Accumulated | Line Item | Accumulated | Item | ||||||||||||||||||||||||||||||||
Components | Other | Other | |||||||||||||||||||||||||||||||||||
Comprehensive | Comprehensive | ||||||||||||||||||||||||||||||||||||
Income | Income | ||||||||||||||||||||||||||||||||||||
Unrealized gains and losses on securities available-for-sale: | |||||||||||||||||||||||||||||||||||||
$ | (234 | ) | Gain on securities, net | $ | (204 | ) | Gain on securities, net | $ | (99 | ) | Gain on securities, net | ||||||||||||||||||||||||||
82 | Income tax expense | 71 | Income tax expense | 34 | Income tax expense | ||||||||||||||||||||||||||||||||
$ | (152 | ) | Net of tax | $ | (133 | ) | Net of tax | $ | (65 | ) | Net of tax |
NET_EARNINGS_PER_COMMON_SHARE_
NET EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
NET EARNINGS PER COMMON SHARE [Abstract] | ' | ||||||||||||
Information Used in the Computation of Earnings per Common Share | ' | ||||||||||||
Following is a summary of the information used in the computation of earnings per common share (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net earnings available to common stockholders | $ | 12,844 | $ | 8,095 | $ | 2,671 | |||||||
Dividends on Series C preferred stock | 400 | - | - | ||||||||||
Adjusted net earnings available to common stockholders | $ | 13,244 | $ | 8,095 | $ | 2,671 | |||||||
Weighted average number of common shares outstanding used in computation of basic earnings per common share | 11,247 | 10,482 | 9,787 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Stock options | 50 | 24 | 7 | ||||||||||
Restricted stock | - | 12 | 5 | ||||||||||
Preferred stock | 564 | 6 | - | ||||||||||
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share | 11,861 | 10,524 | 9,799 |
FINANCIAL_INSTRUMENTS_WITH_OFF1
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK [Abstract] | ' | ||||||||
Financial Instruments Whose Contract Amounts Represent Credit Risk | ' | ||||||||
The Bank’s exposure to loan loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees is represented by the contractual amount of those instruments. The Bank uses the same credit policies, including considerations of collateral requirements, in making these commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
Contract or Notional Amount | |||||||||
2013 | 2012 | ||||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||
(in thousands) | |||||||||
Commitments to extend credit | $ | 264,346 | $ | 237,085 | |||||
Letters of credit | 9,505 | 9,958 |
REGULATORY_MATTERS_Tables
REGULATORY MATTERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
REGULATORY MATTERS [Abstract] | ' | ||||||||||||||||||||||||
Actual Capital Amounts and Ratios | ' | ||||||||||||||||||||||||
The Company’s and the Bank’s actual capital amounts and ratios are presented in the table below (in thousands): | |||||||||||||||||||||||||
Actual | Required for | To be Well | |||||||||||||||||||||||
Minimum Capital | Capitalized Under | ||||||||||||||||||||||||
Adequacy Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 178,343 | 14.19 | % | $ | 100,536 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 170,262 | 13.56 | % | $ | 100,466 | 8 | % | $ | 125,582 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 169,242 | 13.47 | % | $ | 50,268 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 161,283 | 12.84 | % | $ | 50,233 | 4 | % | $ | 75,349 | 6 | % | |||||||||||||
Tier I capital to average assets: | |||||||||||||||||||||||||
Company | $ | 169,242 | 9.35 | % | $ | 72,405 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 161,283 | 8.91 | % | $ | 72,384 | 4 | % | $ | 108,576 | 6 | % | |||||||||||||
Actual | Required for | To be Well | |||||||||||||||||||||||
Minimum Capital | Capitalized Under | ||||||||||||||||||||||||
Adequacy Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
As of December 31, 2012: | |||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 165,302 | 14.1 | % | $ | 93,770 | 8 | % | N/A | N/A | |||||||||||||||
Bank | $ | 162,159 | 13.84 | % | $ | 93,703 | 8 | % | $ | 117,128 | 10 | % | |||||||||||||
Tier I capital to risk weighted assets: | |||||||||||||||||||||||||
Company | $ | 157,753 | 13.46 | % | $ | 46,885 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 154,610 | 13.2 | % | $ | 46,851 | 4 | % | $ | 70,277 | 6 | % | |||||||||||||
Tier I capital to average assets: | |||||||||||||||||||||||||
Company | $ | 157,753 | 11.82 | % | $ | 53,399 | 4 | % | N/A | N/A | |||||||||||||||
Bank | $ | 154,610 | 11.58 | % | $ | 53,421 | 4 | % | $ | 80,132 | 6 | % |
FAIR_VALUE_MEASUREMENTS_AND_DI1
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS AND DISCLOSURES [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value on a recurring basis (in thousands): | |||||||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2013 | ||||||||||||||||
Description | at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Government sponsored enterprises | $ | 11,265 | $ | - | $ | 11,265 | $ | - | |||||||||
Obligations of state and political subdivisions | 59,978 | - | 59,978 | - | |||||||||||||
GSE mortgage-backed securities | 145,965 | - | 145,965 | - | |||||||||||||
Collateralized mortgage obligations: residential | 70,887 | - | 70,887 | - | |||||||||||||
Collateralized mortgage obligations: commercial | 27,346 | - | 27,346 | - | |||||||||||||
Other asset-backed securities | 25,489 | - | 25,489 | - | |||||||||||||
Collateralized debt obligation | 735 | - | 735 | - | |||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2012 | ||||||||||||||||
Description | at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Available-for-sale securities: | |||||||||||||||||
U.S. Government sponsored enterprises | $ | 13,424 | $ | - | $ | 13,424 | $ | - | |||||||||
Obligations of state and political subdivisions | 87,421 | - | 87,421 | - | |||||||||||||
GSE mortgage-backed securities | 178,819 | - | 178,819 | - | |||||||||||||
Collateralized mortgage obligations: residential | 101,986 | - | 101,986 | - | |||||||||||||
Collateralized mortgage obligations: commercial | 29,761 | - | 29,761 | - | |||||||||||||
Other asset-backed securities | 12,742 | - | 12,742 | - | |||||||||||||
Collateralized debt obligation | 464 | - | 464 | - | |||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||
Assets measured at fair value on a nonrecurring basis are as follows (in thousands): | |||||||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2013 | ||||||||||||||||
Description | at December 31, 2013 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired loans | $ | 1,973 | $ | - | $ | 1,973 | $ | - | |||||||||
Other real estate | 6,687 | - | 6,687 | - | |||||||||||||
Assets / Liabilities | Fair Value Measurements | ||||||||||||||||
Measured at Fair Value | at December 31, 2012 | ||||||||||||||||
Description | at December 31, 2012 | Level 1 | Level 2 | Level 3 | |||||||||||||
Impaired loans | $ | 2,245 | $ | - | $ | 2,245 | $ | - | |||||||||
Other real estate | 7,496 | - | 7,496 | - | |||||||||||||
Estimated Fair Values of Financial Instruments | ' | ||||||||||||||||
The estimated fair values of our financial instruments are as follows at December 31, 2013 and 2012 (in thousands): | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using: | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 59,731 | $ | 59,731 | $ | - | $ | - | |||||||||
Securities available-for-sale | 341,665 | - | 341,665 | - | |||||||||||||
Securities held-to-maturity | 155,523 | - | 151,168 | - | |||||||||||||
Other investments | 11,526 | 11,526 | - | - | |||||||||||||
Loans, net | 1,128,775 | - | - | 1,139,740 | |||||||||||||
Cash surrender value of life insurance policies | 13,450 | - | 13,450 | - | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 383,257 | - | 383,257 | - | |||||||||||||
Interest-bearing deposits | 1,135,546 | - | 895,346 | 241,359 | |||||||||||||
Securities sold under agreements to repurchase | 53,916 | 53,916 | - | - | |||||||||||||
Short-term Federal Home Loan Bank advances | 25,000 | - | 25,000 | - | |||||||||||||
Notes payable | 27,703 | - | - | 28,813 | |||||||||||||
Junior subordinated debentures | 29,384 | - | 22,167 | 7,776 | |||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using: | |||||||||||||||||
Carrying | Level 1 | Level 2 | Level 3 | ||||||||||||||
Value | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 73,573 | $ | 73,573 | $ | - | $ | - | |||||||||
Time deposits held in banks | 881 | - | - | 883 | |||||||||||||
Securities available-for-sale | 424,617 | - | 424,617 | - | |||||||||||||
Securities held-to-maturity | 153,524 | - | 156,924 | - | |||||||||||||
Other investments | 8,310 | 8,310 | - | - | |||||||||||||
Loans, net | 1,039,570 | - | - | 1,046,495 | |||||||||||||
Cash surrender value of life insurance policies | 13,183 | - | 13,183 | - | |||||||||||||
Financial liabilities: | |||||||||||||||||
Non-interest-bearing deposits | 380,557 | - | 380,557 | - | |||||||||||||
Interest-bearing deposits | 1,171,347 | - | 859,183 | 314,783 | |||||||||||||
Securities sold under agreements to repurchase | 41,447 | 41,447 | - | - | |||||||||||||
Notes payable | 29,128 | - | - | 29,128 | |||||||||||||
Junior subordinated debentures | 29,384 | - | 22,167 | 7,776 |
OTHER_NONINTEREST_INCOME_AND_E1
OTHER NON-INTEREST INCOME AND EXPENSE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
OTHER NON-INTEREST INCOME AND EXPENSE [Abstract] | ' | ||||||||||||
Components of Other Noninterest Expense | ' | ||||||||||||
Components of other noninterest expense greater than 1% of interest income and noninterest income consisted of the following for the years ended December 31, 2013, 2012, and 2011 (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Professional fees | $ | 1,709 | $ | 2,022 | $ | 2,518 | |||||||
FDIC fees | 1,136 | 930 | 921 | ||||||||||
Marketing expenses | 2,340 | 1,648 | 1,663 | ||||||||||
Corporate development expense | 1,507 | 1,022 | 984 | ||||||||||
Data processing | 1,955 | 1,689 | 2,355 | ||||||||||
Printing and supplies | 1,494 | 1,105 | 890 | ||||||||||
Expenses on other real estate owned and other assets repossessed | 1,201 | 1,767 | 1,511 | ||||||||||
Amortization of intangibles | 1,106 | 762 | 230 |
CONDENSED_FINANCIAL_INFORMATIO1
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY [Abstract] | ' | ||||||||||||
Condensed Financial Information of Parent Company | ' | ||||||||||||
Summarized financial information for MidSouth Bancorp, Inc. (parent company only) follows: | |||||||||||||
Balance Sheets | |||||||||||||
December 31, 2013 and 2012 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | ||||||||||||
Assets | |||||||||||||
Cash and interest-bearing deposits in banks | $ | 7,879 | $ | 4,982 | |||||||||
Securities available-for-sale | 735 | - | |||||||||||
Other assets | 2,561 | 2,233 | |||||||||||
Investment in and advances to subsidiaries | 211,575 | 217,049 | |||||||||||
Total assets | $ | 222,750 | $ | 224,264 | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||||
Liabilities: | |||||||||||||
Dividends payable | $ | 1,093 | $ | 1,113 | |||||||||
Notes payable | 1,000 | 2,000 | |||||||||||
Junior subordinated debentures | 29,384 | 29,384 | |||||||||||
Other | 524 | 2,526 | |||||||||||
Total liabilities | 32,001 | 35,023 | |||||||||||
Stockholders’ equity | 190,749 | 189,241 | |||||||||||
Total liabilities and stockholders’ equity | $ | 222,750 | $ | 224,264 | |||||||||
Statements of Earnings | |||||||||||||
For the Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Revenue: | |||||||||||||
Dividends from Bank and nonbank subsidiaries | $ | 11,000 | $ | - | $ | - | |||||||
Rental and other income | 125 | 102 | 908 | ||||||||||
11,125 | 102 | 908 | |||||||||||
Expenses: | |||||||||||||
Interest on short- and long-term debt | 1,415 | 984 | 971 | ||||||||||
Professional fees | 345 | 804 | 337 | ||||||||||
Other expenses | 547 | 1,126 | 643 | ||||||||||
2,307 | 2,914 | 1,951 | |||||||||||
Income (loss) before equity in undistributed earnings of subsidiaries and income taxes | 8,818 | (2,812 | ) | (1,043 | ) | ||||||||
Equity in undistributed earnings of subsidiaries | 4,600 | 11,477 | 5,167 | ||||||||||
Income tax benefit | 758 | 977 | 349 | ||||||||||
Net earnings | $ | 14,176 | $ | 9,642 | $ | 4,473 | |||||||
Statements of Cash Flows | |||||||||||||
For the Years Ended December 31, 2013, 2012, and 2011 | |||||||||||||
(in thousands) | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net earnings | $ | 14,176 | $ | 9,642 | $ | 4,473 | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||
Undistributed earnings of subsidiaries | (4,600 | ) | (11,477 | ) | (5,167 | ) | |||||||
Other, net | (672 | ) | (2,307 | ) | 144 | ||||||||
Net cash (used in) provided by operating activities | 8,904 | (4,142 | ) | (550 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||
Purchase of securities available-for-sale | (464 | ) | - | - | |||||||||
Investments in and advances to subsidiaries | - | - | (11,972 | ) | |||||||||
Outlays for business acquisition, net of cash acquired | - | (14,360 | ) | - | |||||||||
Other, net | 223 | - | - | ||||||||||
Net cash (used in) provided by investing activities | (241 | ) | (14,360 | ) | (11,972 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Proceeds from issuance of Series B preferred stock | - | - | 32,000 | ||||||||||
Payment to redeem Series A preferred stock | - | - | (20,000 | ) | |||||||||
Proceeds from exercise of stock options | 69 | 100 | 68 | ||||||||||
Payment of preferred dividends | (1,519 | ) | (1,579 | ) | (938 | ) | |||||||
Payment of common dividends | (3,320 | ) | (2,932 | ) | (2,724 | ) | |||||||
Repayment of long-term debt | (1,000 | ) | - | - | |||||||||
Tax benefit from exercise of stock options | 4 | 1 | - | ||||||||||
Net cash (used in) provided by financing activities | (5,766 | ) | (4,410 | ) | 8,406 | ||||||||
Net change in cash and cash equivalents | 2,897 | (22,912 | ) | (4,116 | ) | ||||||||
Cash and cash equivalents at beginning of year | 4,982 | 27,894 | 32,010 | ||||||||||
Cash and cash equivalents at end of year | $ | 7,879 | $ | 4,982 | $ | 27,894 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Grade | |
Loans [Abstract] | ' |
Amount of non-major homogenous loan, maximum | $250,000 |
Number of days past due for loan to be placed on nonaccrual status | '90 days |
Period of repayment performance for nonaccrual loan to be returned to accrual status, lower range limit | '6 months |
Period of repayment performance for nonaccrual loan to be returned to accrual status, upper range limit | '1 year |
Credit Risk Rating [Abstract] | ' |
Number of risk rating grades | 3 |
Allowance for Loan Losses [Abstract] | ' |
Period of historical loss experience in determining general reserves, minimum | '12 months |
Period of historical loss experience in determining general reserves, maximum | '18 months |
Basic and Diluted Earnings Per Common Share [Abstract] | ' |
Percentage of issued shares on which small stock dividend is declared, maximum (in hundredths) | 25.00% |
Statements of Cash Flows [Abstract] | ' |
Period over which federal funds are sold | '1 day |
Core Deposits [Member] | Straight-Line Basis [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life | '15 years |
Core Deposits [Member] | Accelerated Basis [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated useful life | '10 years |
Buildings and Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '10 years |
Buildings and Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '40 years |
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '3 years |
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '10 years |
Automobiles [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful lives | '5 years |
ACQUISITION_ACTIVITY_Details
ACQUISITION ACTIVITY (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 28, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accretable yield for purchased impaired and non-impaired loans [Abstract] | ' | ' | ' | ' |
Balance, beginning of year | ' | $11,400,000 | $0 | ' |
Acquisition of PSB | ' | 0 | 11,400,000 | ' |
Accretion | ' | -4,821,000 | 0 | ' |
Net transfers from nonaccretable difference to accretable yield | ' | 368,000 | 0 | ' |
Balance, end of year | ' | 6,947,000 | 11,400,000 | 0 |
Business Acquisition, Pro Forma Information [Abstract] | ' | ' | ' | ' |
Total revenues, net of interest expense | ' | ' | 89,845,000 | 80,573,000 |
Net income | ' | ' | 14,694,000 | 10,361,000 |
Earnings per share - basic (in dollars per share) | ' | ' | $1.12 | $0.76 |
Earnings per share - diluted (in dollars per share) | ' | ' | $1.09 | $0.75 |
Acquired impaired loans at acquisition [Abstract] | ' | ' | ' | ' |
Contractually required principal and interest payments | ' | ' | 7,449,000 | ' |
Non-accretable discount | ' | ' | 2,084,000 | ' |
Cash flows expected to be collected | ' | ' | 5,365,000 | ' |
Accretable discount | ' | ' | 623,000 | ' |
Fair value of loans acquired with a deterioration of credit quality | ' | ' | 4,742,000 | ' |
Contingent value rights terms | 'Generally, no contingent payment will be made if the net charge-offs on the Identified Loans exceeds $3.0 million. | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | 872,000 | 4,742,000 | ' |
Acquired Performing Loans | ' | ' | 255,311,000 | ' |
Total Acquired Loans | ' | ' | 260,053,000 | ' |
Commercial, financial and agricultural [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 82,000 | ' |
Acquired Performing Loans | ' | ' | 59,011,000 | ' |
Total Acquired Loans | ' | ' | 59,093,000 | ' |
Real estate - construction [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 0 | ' |
Acquired Performing Loans | ' | ' | 16,431,000 | ' |
Total Acquired Loans | ' | ' | 16,431,000 | ' |
Real estate - commercial [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 4,205,000 | ' |
Acquired Performing Loans | ' | ' | 127,866,000 | ' |
Total Acquired Loans | ' | ' | 132,071,000 | ' |
Real Estate - Residential [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 455,000 | ' |
Acquired Performing Loans | ' | ' | 34,232,000 | ' |
Total Acquired Loans | ' | ' | 34,687,000 | ' |
Installment loans to individuals [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 0 | ' |
Acquired Performing Loans | ' | ' | 17,652,000 | ' |
Total Acquired Loans | ' | ' | 17,652,000 | ' |
Other [Member] | ' | ' | ' | ' |
Acquisition of Loan [Line Items] | ' | ' | ' | ' |
Acquired Impaired Loans | ' | ' | 0 | ' |
Acquired Performing Loans | ' | ' | 119,000 | ' |
Total Acquired Loans | ' | ' | 119,000 | ' |
PSB Financial Corp [Member] | ' | ' | ' | ' |
Non-equity consideration [Abstract] | ' | ' | ' | ' |
Cash | 16,003,000 | ' | ' | ' |
Contingent value right | 2,000,000 | ' | ' | ' |
Total consideration paid | 39,530,000 | ' | ' | ' |
Fair value of net assets acquired including identifiable intangible assets | -21,572,000 | ' | -21,572,000 | ' |
Goodwill | 17,958,000 | ' | ' | ' |
Refinement period of preliminary fair value after closing date of acquisition | ' | ' | '1 year | ' |
Assets as Recorded by Acquired Company [Abstract] | ' | ' | ' | ' |
Cash | ' | ' | 17,847,000 | ' |
Federal funds sold | ' | ' | 5,200,000 | ' |
Time deposits held in banks | ' | ' | 172,000 | ' |
Investment securities | ' | ' | 152,667,000 | ' |
Loans receivable | ' | ' | 269,053,000 | ' |
Fixed assets | ' | ' | 11,845,000 | ' |
Core deposit intangible | ' | ' | 0 | ' |
Cash surrender value of life insurance | ' | ' | 8,234,000 | ' |
Other real estate owned | ' | ' | 838,000 | ' |
Other assets | ' | ' | 4,635,000 | ' |
Total assets acquired | ' | ' | 470,491,000 | ' |
Liabilities as Recorded by Acquired Company [Abstract] | ' | ' | ' | ' |
Deposits | ' | ' | 399,845,000 | ' |
FHLB advances | ' | ' | 25,296,000 | ' |
Notes payable | ' | ' | 2,000,000 | ' |
Junior subordinated debentures | ' | ' | 13,919,000 | ' |
Other liabilities | ' | ' | 2,606,000 | ' |
Total liabilities assumed | ' | ' | 443,666,000 | ' |
Assets Fair Value Adjustments [Abstract] | ' | ' | ' | ' |
Cash | ' | ' | 0 | ' |
Federal funds sold | ' | ' | 0 | ' |
Time deposits held in banks | ' | ' | 0 | ' |
Investment securities | ' | ' | 0 | ' |
Loans receivable | ' | ' | -9,000,000 | ' |
Fixed assets | ' | ' | 578,000 | ' |
Core deposit intangible | ' | ' | 2,662,000 | ' |
Cash surrender value of life insurance | ' | ' | 0 | ' |
Other real estate owned | ' | ' | 0 | ' |
Other assets | ' | ' | 314,000 | ' |
Total assets acquired | ' | ' | -5,446,000 | ' |
Liabilities Fair Value Adjustment [Abstract] | ' | ' | ' | ' |
Deposits | ' | ' | 722,000 | ' |
FHLB advances | ' | ' | 1,832,000 | ' |
Notes payable | ' | ' | 0 | ' |
Junior subordinated debentures | ' | ' | 0 | ' |
Other liabilities | ' | ' | -2,747,000 | ' |
Total liabilities assumed | ' | ' | -193,000 | ' |
Assets Fair Value [Abstract] | ' | ' | ' | ' |
Cash | ' | ' | 17,847,000 | ' |
Federal funds sold | ' | ' | 5,200,000 | ' |
Time deposits held in banks | ' | ' | 172,000 | ' |
Investment securities | ' | ' | 152,667,000 | ' |
Loans receivable | ' | ' | 260,053,000 | ' |
Fixed assets | ' | ' | 12,423,000 | ' |
Core deposit intangible | ' | ' | 2,662,000 | ' |
Cash surrender value of life insurance | ' | ' | 8,234,000 | ' |
Other real estate owned | ' | ' | 838,000 | ' |
Other assets | ' | ' | 4,949,000 | ' |
Assets acquired | ' | ' | 465,045,000 | ' |
Liabilities Fair Value [Abstract] | ' | ' | ' | ' |
Deposits | ' | ' | 400,567,000 | ' |
FHLB advances | ' | ' | 27,128,000 | ' |
Notes payable | ' | ' | 2,000,000 | ' |
Junior subordinated debentures | ' | ' | 13,919,000 | ' |
Other liabilities | ' | ' | -141,000 | ' |
Total liabilities assumed | ' | ' | 443,473,000 | ' |
Fair value of net assets acquired including identifiable intangible assets | 21,572,000 | ' | 21,572,000 | ' |
Useful life of core intangible assets | ' | ' | '7 years | ' |
Acquisition expense | ' | ' | 1,200,000 | ' |
Acquired impaired loans at acquisition [Abstract] | ' | ' | ' | ' |
Maturity date | ' | ' | 28-Dec-15 | ' |
PSB Financial Corp [Member] | Common Stock [Member] | ' | ' | ' | ' |
Equity consideration [Abstract] | ' | ' | ' | ' |
Stock issued (in shares) | 756,511 | ' | ' | ' |
Stock issued | 11,530,000 | ' | ' | ' |
PSB Financial Corp [Member] | Preferred Stock [Member] | ' | ' | ' | ' |
Equity consideration [Abstract] | ' | ' | ' | ' |
Stock issued (in shares) | 99,971 | ' | ' | ' |
Stock issued | 9,997,000 | ' | ' | ' |
Combined Three Acquisition Transactions [Member] | ' | ' | ' | ' |
Non-equity consideration [Abstract] | ' | ' | ' | ' |
Refinement period of preliminary fair value after closing date of acquisition | ' | ' | '1 year | ' |
INVESTMENT_SECURITIES_Details
INVESTMENT SECURITIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Security | Security | ||
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | $341,828,000 | $412,065,000 | ' |
Gross Unrealized Gains | 5,576,000 | 12,599,000 | ' |
Gross Unrealized Losses | 5,739,000 | 47,000 | ' |
Fair Value | 341,665,000 | 424,617,000 | ' |
Held-to-maturity [Abstract] | ' | ' | ' |
Amortized Cost | 155,523,000 | 153,524,000 | ' |
Gross Unrealized Gains | 289,000 | 3,407,000 | ' |
Gross Unrealized Losses | 4,644,000 | 7,000 | ' |
Fair Value | 151,168,000 | 156,924,000 | ' |
Number of Private-label Collateralized Mortgage Obligations | 3 | ' | ' |
Combined Balance of Private-label Collateralized Mortgage Obligations | 59,000 | 96,000 | ' |
Available-for-sale, Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less | 12,070,000 | ' | ' |
Due after one year through five years | 35,119,000 | ' | ' |
Due after five years through ten years | 17,001,000 | ' | ' |
Due after ten years | 5,190,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Residential, Amortized Cost | 219,698,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Commercial, Amortized Cost | 27,082,000 | ' | ' |
Other asset-backed securities | 25,204,000 | ' | ' |
Collateralized debt obligation | 464,000 | ' | ' |
Available-for-sale Securities, Amortized Cost | 341,828,000 | ' | ' |
Available-for-sale, Fair Value [Abstract] | ' | ' | ' |
Due in one year or less | 12,228,000 | ' | ' |
Due after one year through five years | 36,194,000 | ' | ' |
Due after five years through ten years | 17,851,000 | ' | ' |
Due after ten years | 4,970,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Residential, Fair Value | 216,852,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Commercial, Fair Value | 27,346,000 | ' | ' |
Other asset-backed securities | 25,489,000 | ' | ' |
Collateralized debt obligation | 735,000 | ' | ' |
Available-for-sale securities, Fair Value | 341,665,000 | ' | ' |
Held-to-maturity, Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less | 100,000 | ' | ' |
Due after one year through five years | 2,198,000 | ' | ' |
Due after five years through ten years | 7,273,000 | ' | ' |
Due after ten years | 37,806,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Residential, Amortized Cost | 92,461,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Commercial, Amortized Cost | 15,685,000 | ' | ' |
Held-to-maturity securities, Amortized Cost | 155,523,000 | ' | ' |
Held-to-maturity, Fair Value [Abstract] | ' | ' | ' |
Due in one year or less | 100,000 | ' | ' |
Due after one year through five years | 2,182,000 | ' | ' |
Due after five years through ten years | 7,072,000 | ' | ' |
Due after ten years | 35,475,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Residential, Fair Value | 90,551,000 | ' | ' |
Mortgage-backed securities and collateralized mortgage obligations: Commercial, Fair Value | 15,788,000 | ' | ' |
Held-to-maturity securities, Fair Value | 151,168,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 157,103,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 5,408,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 4,371,000 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 331,000 | ' | ' |
Total securities, Fair Value, Available-for-sale | 161,474,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 5,739,000 | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Held-to-maturity | 86,498,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Held-to-maturity | 4,627,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Held-to-maturity | 685,000 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Held-to-maturity | 17,000 | ' | ' |
Total securities, Fair Value, Held-to-maturity | 87,183,000 | ' | ' |
Total securities, Gross Unrealized Losses, Held-to-maturity | 4,644,000 | ' | ' |
Number of available-for-sale and held-to-maturity securities in unrealized loss positions | 108 | ' | ' |
Unrealized losses as a percentage of individual securities' amortized cost basis (in hundredths) | 4.01% | ' | ' |
Unrealized losses as a percentage of the Company's total amortized cost basis (in hundredths) | 2.09% | ' | ' |
Number of available-for-sale securities in continuous loss position | 5 | ' | ' |
Unamortized cost basis of securities in a continuous loss position | 5,400,000 | ' | ' |
Unrealized loss on securities in a continuous loss position | 348,000 | ' | ' |
Number of impairment related to credit quality | 0 | 0 | ' |
Number of impaired securities evaluated as other temporary | 0 | 0 | ' |
Impairment losses recognized on debt securities | 0 | 0 | 0 |
Number of available-for-sale securities sold | 35 | 6 | ' |
Available-for-sale securities, net gain | 234,000 | 204,000 | ' |
Number of available-for-sale securities sold with gains | 31 | 5 | ' |
Available-for-sale securities, gross realized gains | 247,000 | 235,000 | ' |
Number of available-for-sale securities sold with loss | 4 | 1 | ' |
Available-for-sale securities, gross realized losses | 13,000 | 31,000 | ' |
Securities pledged to secure public funds on deposits and for other purposes required or permitted by law | 259,900,000 | 226,200,000 | ' |
U.S. Government Sponsored Enterprises [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 11,455,000 | 13,422,000 | ' |
Gross Unrealized Gains | 1,000 | 2,000 | ' |
Gross Unrealized Losses | 191,000 | 0 | ' |
Fair Value | 11,265,000 | 13,424,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 10,463,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 191,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 0 | ' | ' |
Total securities, Fair Value, Available-for-sale | 10,463,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 191,000 | ' | ' |
Obligation of State and Political Subdivisions [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 57,925,000 | 83,093,000 | ' |
Gross Unrealized Gains | 2,296,000 | 4,328,000 | ' |
Gross Unrealized Losses | 243,000 | 0 | ' |
Fair Value | 59,978,000 | 87,421,000 | ' |
Held-to-maturity [Abstract] | ' | ' | ' |
Amortized Cost | 47,377,000 | 42,900,000 | ' |
Gross Unrealized Gains | 38,000 | 7,000 | ' |
Gross Unrealized Losses | 2,586,000 | 7,000 | ' |
Fair Value | 44,829,000 | 42,900,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 4,256,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 243,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 0 | ' | ' |
Total securities, Fair Value, Available-for-sale | 4,256,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 243,000 | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Held-to-maturity | 42,246,000 | 1,128,000 | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Held-to-maturity | 2,569,000 | 7,000 | ' |
Securities with losses over 12 months, Fair Value, Held-to-maturity | 685,000 | 0 | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Held-to-maturity | 17,000 | 0 | ' |
Total securities, Fair Value, Held-to-maturity | 42,931,000 | 1,128,000 | ' |
Total securities, Gross Unrealized Losses, Held-to-maturity | 2,586,000 | 7,000 | ' |
GSE Mortgage-backed Securities [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 146,129,000 | 172,932,000 | ' |
Gross Unrealized Gains | 2,029,000 | 5,887,000 | ' |
Gross Unrealized Losses | 2,193,000 | 0 | ' |
Fair Value | 145,965,000 | 178,819,000 | ' |
Held-to-maturity [Abstract] | ' | ' | ' |
Amortized Cost | 78,272,000 | 89,383,000 | ' |
Gross Unrealized Gains | 148,000 | 2,819,000 | ' |
Gross Unrealized Losses | 1,079,000 | 0 | ' |
Fair Value | 77,341,000 | 92,202,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 68,028,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 2,193,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 0 | ' | ' |
Total securities, Fair Value, Available-for-sale | 68,028,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 2,193,000 | ' | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Held-to-maturity | 31,042,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Held-to-maturity | 1,079,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Held-to-maturity | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Held-to-maturity | 0 | ' | ' |
Total securities, Fair Value, Held-to-maturity | 31,042,000 | ' | ' |
Total securities, Gross Unrealized Losses, Held-to-maturity | 1,079,000 | ' | ' |
Collateralized Mortgage Obligations: Residential [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 73,569,000 | 101,381,000 | ' |
Gross Unrealized Gains | 212,000 | 652,000 | ' |
Gross Unrealized Losses | 2,894,000 | 47,000 | ' |
Fair Value | 70,887,000 | 101,986,000 | ' |
Held-to-maturity [Abstract] | ' | ' | ' |
Amortized Cost | 14,189,000 | 5,009,000 | ' |
Gross Unrealized Gains | 0 | 0 | ' |
Gross Unrealized Losses | 979,000 | 0 | ' |
Fair Value | 13,210,000 | 5,009,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 56,975,000 | 10,085,000 | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 2,563,000 | 45,000 | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 4,371,000 | 96,000 | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 331,000 | 2,000 | ' |
Total securities, Fair Value, Available-for-sale | 61,346,000 | 10,181,000 | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 2,894,000 | 47,000 | ' |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Held-to-maturity | 13,210,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Held-to-maturity | 979,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Held-to-maturity | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Held-to-maturity | 0 | ' | ' |
Total securities, Fair Value, Held-to-maturity | 13,210,000 | ' | ' |
Total securities, Gross Unrealized Losses, Held-to-maturity | 979,000 | ' | ' |
Collateralized Mortgage Obligations: Commercial [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 27,082,000 | 28,528,000 | ' |
Gross Unrealized Gains | 416,000 | 1,233,000 | ' |
Gross Unrealized Losses | 152,000 | 0 | ' |
Fair Value | 27,346,000 | 29,761,000 | ' |
Held-to-maturity [Abstract] | ' | ' | ' |
Amortized Cost | 15,685,000 | 16,232,000 | ' |
Gross Unrealized Gains | 103,000 | 581,000 | ' |
Gross Unrealized Losses | 0 | 0 | ' |
Fair Value | 15,788,000 | 16,813,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 4,282,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 152,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 0 | ' | ' |
Total securities, Fair Value, Available-for-sale | 4,282,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 152,000 | ' | ' |
Other asset-backed Securities [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 25,204,000 | 12,245,000 | ' |
Gross Unrealized Gains | 351,000 | 497,000 | ' |
Gross Unrealized Losses | 66,000 | 0 | ' |
Fair Value | 25,489,000 | 12,742,000 | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ' | ' | ' |
Securities with losses under 12 months, Fair Value, Available-for-sale | 13,099,000 | ' | ' |
Securities with losses under 12 months, Gross Unrealized Losses, Available-for-sale | 66,000 | ' | ' |
Securities with losses over 12 months, Fair Value, Available-for-sale | 0 | ' | ' |
Securities with losses over 12 months, Gross Unrealized Losses, Available-for-sale | 0 | ' | ' |
Total securities, Fair Value, Available-for-sale | 13,099,000 | ' | ' |
Total securities, Gross Unrealized Losses, Available-for-sale | 66,000 | ' | ' |
Collateralized Debt Obligations [Member] | ' | ' | ' |
Available-for-sale [Abstract] | ' | ' | ' |
Amortized Cost | 464,000 | 464,000 | ' |
Gross Unrealized Gains | 271,000 | 0 | ' |
Gross Unrealized Losses | 0 | 0 | ' |
Fair Value | $735,000 | $464,000 | ' |
LOANS_Summary_of_Loan_Portfoli
LOANS, Summary of Loan Portfolio (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loan portfolio [Abstract] | ' | ' |
Total loans | $1,137,554 | $1,046,940 |
Less allowance for loan losses | -8,779 | -7,370 |
Loans, net | 1,128,775 | 1,039,570 |
Commercial, Financial and Agricultural [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 403,976 | 315,655 |
Lease Financing Receivable [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 5,542 | 5,769 |
Real Estate - Construction [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 82,691 | 75,334 |
Real Estate - Commercial [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 397,135 | 414,384 |
Real Estate - Residential [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 146,841 | 142,858 |
Installment Loans to Individuals [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | 97,459 | 90,561 |
Other [Member] | ' | ' |
Loan portfolio [Abstract] | ' | ' |
Total loans | $3,910 | $2,379 |
LOANS_Aggregate_Allowance_for_
LOANS, Aggregate Allowance for Loan Losses and Related Party Lending (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Segment | Loan | ||||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | $7,370,000 | $7,276,000 | $8,813,000 | ||
Provision for loan losses | 3,050,000 | 2,050,000 | 3,925,000 | ||
Recoveries | 265,000 | 300,000 | 310,000 | ||
Loans charged-off | -1,906,000 | -2,256,000 | -5,772,000 | ||
Ending balance | 8,779,000 | 7,370,000 | 7,276,000 | ||
Transfers from loans to ORE | 1,100,000 | 879,000 | 7,300,000 | ||
Number of secured credits transferred to ORE | ' | 1 | ' | ||
Secured credit added to ORE | ' | 4,900,000 | ' | ||
Activity in related party loans and commitments to extend credit [Roll Forward] | ' | ' | ' | ||
Balance, beginning of year | 6,921,000 | ' | ' | ||
New loans | 0 | ' | ' | ||
Repayments and adjustments | -3,807,000 | ' | ' | ||
Balance, end of year | 3,114,000 | 6,921,000 | ' | ||
Number of industry segment concentration above threshold limit | 1 | ' | ' | ||
Threshold percentage of loan portfolio (in hundredths) | 10.00% | ' | ' | ||
Loans exposure in oil and gas industry | 202,100,000 | ' | ' | ||
Exposure in oil and gas industry specified as percentage of total loans (in hundredths) | 17.80% | ' | ' | ||
Loans with exposure in commercial real estate | 462,000,000 | ' | ' | ||
Loans on nonaccrual status | 5,099,000 | [1] | 8,276,000 | [1] | ' |
Commercial, Financial and Agricultural [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 1,535,000 | 1,734,000 | ' | ||
Provision for loan losses | 3,226,000 | 674,000 | ' | ||
Recoveries | 80,000 | 181,000 | ' | ||
Loans charged-off | -935,000 | -1,054,000 | ' | ||
Ending balance | 3,906,000 | 1,535,000 | ' | ||
Real Estate Construction [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 2,147,000 | 1,661,000 | ' | ||
Provision for loan losses | -1,109,000 | 468,000 | ' | ||
Recoveries | 8,000 | 18,000 | ' | ||
Loans charged-off | 0 | 0 | ' | ||
Ending balance | 1,046,000 | 2,147,000 | ' | ||
Commercial Real Estate [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 2,166,000 | 2,215,000 | ' | ||
Provision for loan losses | -788,000 | 500,000 | ' | ||
Recoveries | 29,000 | 1,000 | ' | ||
Loans charged-off | -18,000 | -550,000 | ' | ||
Ending balance | 1,389,000 | 2,166,000 | ' | ||
Activity in related party loans and commitments to extend credit [Roll Forward] | ' | ' | ' | ||
Loans with exposure in commercial real estate | 352,600,000 | ' | ' | ||
Percentage of CRE loans secured by owner-occupied commercial properties (in hundredths) | 63.00% | ' | ' | ||
Loans on nonaccrual status | 2,400,000 | ' | ' | ||
Nonaccrual status of loans specified as percentage of total CRE loans (in hundredths) | 0.70% | ' | ' | ||
Real Estate - Residential [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 936,000 | 936,000 | ' | ||
Provision for loan losses | 295,000 | 124,000 | ' | ||
Recoveries | 39,000 | 2,000 | ' | ||
Loans charged-off | -129,000 | -126,000 | ' | ||
Ending balance | 1,141,000 | 936,000 | ' | ||
Consumer [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 543,000 | 710,000 | ' | ||
Provision for loan losses | 1,445,000 | 261,000 | ' | ||
Recoveries | 109,000 | 98,000 | ' | ||
Loans charged-off | -824,000 | -526,000 | ' | ||
Ending balance | 1,273,000 | 543,000 | ' | ||
Finance Leases Commercial [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 41,000 | 19,000 | ' | ||
Provision for loan losses | -20,000 | 22,000 | ' | ||
Recoveries | 0 | 0 | ' | ||
Loans charged-off | 0 | 0 | ' | ||
Ending balance | 21,000 | 41,000 | ' | ||
Other [Member] | ' | ' | ' | ||
Activity in allowance for loan losses [Roll Forward] | ' | ' | ' | ||
Beginning balance | 2,000 | 1,000 | ' | ||
Provision for loan losses | 1,000 | 1,000 | ' | ||
Recoveries | 0 | 0 | ' | ||
Loans charged-off | 0 | 0 | ' | ||
Ending balance | $3,000 | $2,000 | ' | ||
[1] | Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. |
LOANS_Allowance_for_Loan_Losse
LOANS, Allowance for Loan Losses by Segment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | $7,370 | $7,276 | $8,813 |
Charge-offs | -1,906 | -2,256 | -5,772 |
Recoveries | 265 | 300 | 310 |
Provision | 3,050 | 2,050 | 3,925 |
Ending balance | 8,779 | 7,370 | 7,276 |
Ending balance: individually evaluated for impairment | 405 | 627 | ' |
Ending balance: collectively evaluated for impairment | 8,374 | 6,743 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 1,137,554 | 1,046,940 | ' |
Ending balance: individually evaluated for impairment | 4,725 | 7,440 | ' |
Ending balance: collectively evaluated for impairment | 1,131,957 | 1,034,758 | ' |
Ending balance: loans acquired with deteriorated credit quality | 872 | 4,742 | ' |
Commercial, Financial and Agricultural [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 1,535 | 1,734 | ' |
Charge-offs | -935 | -1,054 | ' |
Recoveries | 80 | 181 | ' |
Provision | 3,226 | 674 | ' |
Ending balance | 3,906 | 1,535 | ' |
Ending balance: individually evaluated for impairment | 168 | 391 | ' |
Ending balance: collectively evaluated for impairment | 3,738 | 1,144 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 403,976 | 315,655 | ' |
Ending balance: individually evaluated for impairment | 1,241 | 1,636 | ' |
Ending balance: collectively evaluated for impairment | 402,735 | 313,937 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 82 | ' |
Real Estate - Construction [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 2,147 | 1,661 | ' |
Charge-offs | 0 | 0 | ' |
Recoveries | 8 | 18 | ' |
Provision | -1,109 | 468 | ' |
Ending balance | 1,046 | 2,147 | ' |
Ending balance: individually evaluated for impairment | 3 | 57 | ' |
Ending balance: collectively evaluated for impairment | 1,043 | 2,090 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 82,691 | 75,334 | ' |
Ending balance: individually evaluated for impairment | 100 | 936 | ' |
Ending balance: collectively evaluated for impairment | 82,591 | 74,398 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Real Estate - Commercial [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 2,166 | 2,215 | ' |
Charge-offs | -18 | -550 | ' |
Recoveries | 29 | 1 | ' |
Provision | -788 | 500 | ' |
Ending balance | 1,389 | 2,166 | ' |
Ending balance: individually evaluated for impairment | 54 | 35 | ' |
Ending balance: collectively evaluated for impairment | 1,335 | 2,131 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 397,135 | 414,384 | ' |
Ending balance: individually evaluated for impairment | 2,213 | 2,911 | ' |
Ending balance: collectively evaluated for impairment | 394,218 | 407,267 | ' |
Ending balance: loans acquired with deteriorated credit quality | 704 | 4,206 | ' |
Real Estate - Residential [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 936 | 936 | ' |
Charge-offs | -129 | -126 | ' |
Recoveries | 39 | 2 | ' |
Provision | 295 | 124 | ' |
Ending balance | 1,141 | 936 | ' |
Ending balance: individually evaluated for impairment | 60 | 30 | ' |
Ending balance: collectively evaluated for impairment | 1,081 | 906 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 146,841 | 142,858 | ' |
Ending balance: individually evaluated for impairment | 900 | 1,627 | ' |
Ending balance: collectively evaluated for impairment | 145,773 | 140,777 | ' |
Ending balance: loans acquired with deteriorated credit quality | 168 | 454 | ' |
Consumer [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 543 | 710 | ' |
Charge-offs | -824 | -526 | ' |
Recoveries | 109 | 98 | ' |
Provision | 1,445 | 261 | ' |
Ending balance | 1,273 | 543 | ' |
Ending balance: individually evaluated for impairment | 120 | 114 | ' |
Ending balance: collectively evaluated for impairment | 1,153 | 429 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 97,459 | 90,561 | ' |
Ending balance: individually evaluated for impairment | 271 | 330 | ' |
Ending balance: collectively evaluated for impairment | 97,188 | 90,231 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Finance Leases Commercial [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 41 | 19 | ' |
Charge-offs | 0 | 0 | ' |
Recoveries | 0 | 0 | ' |
Provision | -20 | 22 | ' |
Ending balance | 21 | 41 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 21 | 41 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 5,542 | 5,769 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 5,542 | 5,769 | ' |
Ending balance: loans acquired with deteriorated credit quality | 0 | 0 | ' |
Other [Member] | ' | ' | ' |
Allowance for loan losses by portfolio [Roll Forward] | ' | ' | ' |
Beginning balance | 2 | 1 | ' |
Charge-offs | 0 | 0 | ' |
Recoveries | 0 | 0 | ' |
Provision | 1 | 1 | ' |
Ending balance | 3 | 2 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 3 | 2 | ' |
Loans [Abstract] | ' | ' | ' |
Ending balance | 3,910 | 2,379 | ' |
Ending balance: individually evaluated for impairment | 0 | 0 | ' |
Ending balance: collectively evaluated for impairment | 3,910 | 2,379 | ' |
Ending balance: loans acquired with deteriorated credit quality | $0 | $0 | ' |
LOANS_Credit_Quality_Indicator
LOANS, Credit Quality Indicators and Aging (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Credit Risk Profile [Abstract] | ' | ' | |
Loans | $1,137,554 | $1,046,940 | |
Percentage of Total Loans (in hundredths) | 100.00% | 100.00% | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 9,677 | 8,081 | [1] |
60-89 Days Past Due | 2,627 | 2,900 | [1] |
Greater than 90 Days Past Due | 4,297 | 7,580 | [1] |
Total Past Due | 16,601 | 18,561 | [1] |
Current | 1,120,953 | 1,028,379 | [1] |
Total Loans | 1,137,554 | 1,046,940 | [1] |
Recorded Investment > 90 days and Accruing | 178 | 1,986 | [1] |
Commercial, Financial and Agricultural [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 403,976 | 315,655 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 4,350 | 2,220 | [1] |
60-89 Days Past Due | 208 | 321 | [1] |
Greater than 90 Days Past Due | 1,256 | 2,580 | [1] |
Total Past Due | 5,814 | 5,121 | [1] |
Current | 398,162 | 310,534 | [1] |
Total Loans | 403,976 | 315,655 | [1] |
Recorded Investment > 90 days and Accruing | 26 | 1,019 | [1] |
Commercial Real Estate Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 64,893 | 58,350 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 36 | 66 | [1] |
60-89 Days Past Due | 0 | 96 | [1] |
Greater than 90 Days Past Due | 63 | 101 | [1] |
Total Past Due | 99 | 263 | [1] |
Current | 64,794 | 58,087 | [1] |
Total Loans | 64,893 | 58,350 | [1] |
Recorded Investment > 90 days and Accruing | 0 | 0 | [1] |
Commercial Real Estate - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 397,135 | 414,384 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 1,230 | 4,123 | [1] |
60-89 Days Past Due | 1,447 | 2,108 | [1] |
Greater than 90 Days Past Due | 2,395 | 3,577 | [1] |
Total Past Due | 5,072 | 9,808 | [1] |
Current | 392,063 | 404,576 | [1] |
Total Loans | 397,135 | 414,384 | [1] |
Recorded Investment > 90 days and Accruing | 141 | 952 | [1] |
Commercial Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 100.00% | 100.00% | |
Residential - Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 17,798 | 16,984 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 149 | 0 | [1] |
60-89 Days Past Due | 0 | 0 | [1] |
Greater than 90 Days Past Due | 0 | 0 | [1] |
Total Past Due | 149 | 0 | [1] |
Current | 17,649 | 16,984 | [1] |
Total Loans | 17,798 | 16,984 | [1] |
Recorded Investment > 90 days and Accruing | 0 | 0 | [1] |
Residential - Prime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 146,841 | 142,858 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 2,984 | 1,140 | [1] |
60-89 Days Past Due | 870 | 239 | [1] |
Greater than 90 Days Past Due | 307 | 1,121 | [1] |
Total Past Due | 4,161 | 2,500 | [1] |
Current | 142,680 | 140,358 | [1] |
Total Loans | 146,841 | 142,858 | [1] |
Recorded Investment > 90 days and Accruing | 0 | 0 | [1] |
Residential - Subprime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Residential Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 100.00% | 100.00% | |
Consumer - Credit Card [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 6,206 | 6,807 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 36 | 24 | [1] |
60-89 Days Past Due | 0 | 2 | [1] |
Greater than 90 Days Past Due | 7 | 15 | [1] |
Total Past Due | 43 | 41 | [1] |
Current | 6,163 | 6,766 | [1] |
Total Loans | 6,206 | 6,807 | [1] |
Recorded Investment > 90 days and Accruing | 7 | 15 | [1] |
Consumer - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 91,253 | 83,754 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 767 | 421 | [1] |
60-89 Days Past Due | 102 | 134 | [1] |
Greater than 90 Days Past Due | 269 | 186 | [1] |
Total Past Due | 1,138 | 741 | [1] |
Current | 90,115 | 83,013 | [1] |
Total Loans | 91,253 | 83,754 | [1] |
Recorded Investment > 90 days and Accruing | 4 | 0 | [1] |
Finance Leases Commercial [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 5,542 | 5,769 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 0 | 0 | [1] |
60-89 Days Past Due | 0 | 0 | [1] |
Greater than 90 Days Past Due | 0 | 0 | [1] |
Total Past Due | 0 | 0 | [1] |
Current | 5,542 | 5,769 | [1] |
Total Loans | 5,542 | 5,769 | [1] |
Recorded Investment > 90 days and Accruing | 0 | 0 | [1] |
Other Loans [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 3,910 | 2,379 | |
Age Analysis of Past Due Loans by Class of Loans [Abstract] | ' | ' | |
30-59 Days Past Due | 125 | 87 | [1] |
60-89 Days Past Due | 0 | 0 | [1] |
Greater than 90 Days Past Due | 0 | 0 | [1] |
Total Past Due | 125 | 87 | [1] |
Current | 3,785 | 2,292 | [1] |
Total Loans | 3,910 | 2,379 | [1] |
Recorded Investment > 90 days and Accruing | 0 | 0 | [1] |
Pass [Member] | Commercial, Financial and Agricultural [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 397,513 | 304,219 | |
Pass [Member] | Commercial Real Estate Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 63,577 | 54,737 | |
Pass [Member] | Commercial Real Estate - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 371,618 | 396,077 | |
Pass [Member] | Commercial Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 96.15% | 95.76% | |
Pass [Member] | Residential - Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 17,798 | 16,785 | |
Pass [Member] | Residential - Prime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 143,790 | 137,681 | |
Pass [Member] | Residential - Subprime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Pass [Member] | Residential Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 98.15% | 96.64% | |
Special Mention [Member] | Commercial, Financial and Agricultural [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 2,962 | 5,748 | |
Special Mention [Member] | Commercial Real Estate Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 49 | 684 | |
Special Mention [Member] | Commercial Real Estate - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 8,781 | 6,224 | |
Special Mention [Member] | Commercial Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 1.36% | 1.61% | |
Special Mention [Member] | Residential - Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Special Mention [Member] | Residential - Prime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 548 | 1,612 | |
Special Mention [Member] | Residential - Subprime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Special Mention [Member] | Residential Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 0.33% | 1.01% | |
Substandard [Member] | Commercial, Financial and Agricultural [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 3,272 | 4,503 | |
Substandard [Member] | Commercial Real Estate Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 1,267 | 2,925 | |
Substandard [Member] | Commercial Real Estate - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 16,736 | 7,514 | |
Substandard [Member] | Commercial Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 2.46% | 1.90% | |
Substandard [Member] | Residential - Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 199 | |
Substandard [Member] | Residential - Prime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 2,503 | 3,565 | |
Substandard [Member] | Residential - Subprime [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Substandard [Member] | Residential Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 1.52% | 2.35% | |
Doubtful [Member] | Commercial, Financial and Agricultural [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 229 | 1,185 | |
Doubtful [Member] | Commercial Real Estate Construction [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 4 | |
Doubtful [Member] | Commercial Real Estate - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 4,569 | |
Doubtful [Member] | Commercial Total [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 0.03% | 0.73% | |
Performing [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 99.73% | 99.57% | |
Performing [Member] | Consumer - Credit Card [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 6,196 | 6,792 | |
Performing [Member] | Consumer - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 90,978 | 83,347 | |
Performing [Member] | Finance Leases Commercial [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 5,542 | 5,769 | |
Performing [Member] | Other Loans [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 3,910 | 2,379 | |
Nonperforming [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Percentage of Total Loans (in hundredths) | 0.27% | 0.43% | |
Nonperforming [Member] | Consumer - Credit Card [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 10 | 15 | |
Nonperforming [Member] | Consumer - Other [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 275 | 407 | |
Nonperforming [Member] | Finance Leases Commercial [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | 0 | 0 | |
Nonperforming [Member] | Other Loans [Member] | ' | ' | |
Credit Risk Profile [Abstract] | ' | ' | |
Loans | $0 | $0 | |
[1] | Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. |
LOANS_Impaired_Loans_by_Class_
LOANS, Impaired Loans by Class of Loans (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | $3,173,000 | $5,554,000 | ' | ||
Unpaid Principal Balance | 4,083,000 | 6,201,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 4,363,000 | 4,769,000 | ' | ||
Interest Income Recognized | 26,000 | 71,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 1,552,000 | 1,886,000 | ' | ||
Unpaid Principal Balance | 1,572,000 | 1,886,000 | ' | ||
Related Allowance | 405,000 | 627,000 | ' | ||
Average Recorded Investment | 1,720,000 | 2,424,000 | ' | ||
Interest Income Recognized | 21,000 | 41,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Recorded Investment | 4,725,000 | 7,440,000 | ' | ||
Unpaid Principal Balance | 5,655,000 | 8,087,000 | ' | ||
Related Allowance | 405,000 | 627,000 | ' | ||
Average Recorded Investment | 6,083,000 | 7,193,000 | ' | ||
Interest Income Recognized | 47,000 | 112,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 5,099,000 | [1] | 8,276,000 | [1] | ' |
Interest lost on nonaccrual loans | 518,000 | 582,000 | 749,000 | ||
Interest received on nonaccrual loans | 312,000 | 70,000 | 256,000 | ||
Commercial, Financial and Agricultural [Member] | ' | ' | ' | ||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 671,000 | 564,000 | ' | ||
Unpaid Principal Balance | 1,107,000 | 675,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 617,000 | 861,000 | ' | ||
Interest Income Recognized | 3,000 | 5,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 570,000 | 1,072,000 | ' | ||
Unpaid Principal Balance | 570,000 | 1,072,000 | ' | ||
Related Allowance | 168,000 | 391,000 | ' | ||
Average Recorded Investment | 821,000 | 1,128,000 | ' | ||
Interest Income Recognized | 3,000 | 21,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Related Allowance | 168,000 | 391,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 1,272,000 | [1] | 1,777,000 | [1] | ' |
Commercial Real Estate Construction [Member] | ' | ' | ' | ||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 61,000 | 771,000 | ' | ||
Unpaid Principal Balance | 61,000 | 770,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 416,000 | 834,000 | ' | ||
Interest Income Recognized | 0 | 1,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 39,000 | 165,000 | ' | ||
Unpaid Principal Balance | 39,000 | 165,000 | ' | ||
Related Allowance | 3,000 | 57,000 | ' | ||
Average Recorded Investment | 102,000 | 85,000 | ' | ||
Interest Income Recognized | 1,000 | 7,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Related Allowance | 3,000 | 57,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 100,000 | [1] | 941,000 | [1] | ' |
Commercial Real Estate - Other [Member] | ' | ' | ' | ||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 1,850,000 | 2,530,000 | ' | ||
Unpaid Principal Balance | 2,324,000 | 3,059,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 2,190,000 | 1,780,000 | ' | ||
Interest Income Recognized | 8,000 | 38,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 363,000 | 381,000 | ' | ||
Unpaid Principal Balance | 363,000 | 381,000 | ' | ||
Related Allowance | 54,000 | 35,000 | ' | ||
Average Recorded Investment | 372,000 | 811,000 | ' | ||
Interest Income Recognized | 11,000 | 3,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Related Allowance | 54,000 | 35,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 2,290,000 | [1] | 3,009,000 | [1] | ' |
Consumer - Other [Member] | ' | ' | ' | ||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 66,000 | 114,000 | ' | ||
Unpaid Principal Balance | 66,000 | 122,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 90,000 | 81,000 | ' | ||
Interest Income Recognized | 1,000 | 1,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 205,000 | 216,000 | ' | ||
Unpaid Principal Balance | 205,000 | 216,000 | ' | ||
Related Allowance | 120,000 | 114,000 | ' | ||
Average Recorded Investment | 211,000 | 228,000 | ' | ||
Interest Income Recognized | 2,000 | 6,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Related Allowance | 120,000 | 114,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 284,000 | [1] | 409,000 | [1] | ' |
Residential - Prime [Member] | ' | ' | ' | ||
With no related allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 525,000 | 1,575,000 | ' | ||
Unpaid Principal Balance | 525,000 | 1,575,000 | ' | ||
Related Allowance | 0 | 0 | ' | ||
Average Recorded Investment | 1,050,000 | 1,213,000 | ' | ||
Interest Income Recognized | 14,000 | 26,000 | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Recorded Investment | 375,000 | 52,000 | ' | ||
Unpaid Principal Balance | 395,000 | 52,000 | ' | ||
Related Allowance | 60,000 | 30,000 | ' | ||
Average Recorded Investment | 214,000 | 172,000 | ' | ||
Interest Income Recognized | 4,000 | 4,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Related Allowance | 60,000 | 30,000 | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 1,153,000 | [1] | 2,505,000 | [1] | ' |
Finance Leases Commercial [Member] | ' | ' | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 0 | [1] | 0 | [1] | ' |
Other Loans [Member] | ' | ' | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 0 | [1] | 0 | [1] | ' |
Commercial Total [Member] | ' | ' | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Related Allowance | 225,000 | 483,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Recorded Investment | 3,554,000 | 5,483,000 | ' | ||
Unpaid Principal Balance | 4,464,000 | 6,122,000 | ' | ||
Related Allowance | 225,000 | 483,000 | ' | ||
Average Recorded Investment | 4,518,000 | 5,499,000 | ' | ||
Interest Income Recognized | 26,000 | 75,000 | ' | ||
Consumer Total [Member] | ' | ' | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Related Allowance | 120,000 | 114,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Recorded Investment | 271,000 | 330,000 | ' | ||
Unpaid Principal Balance | 271,000 | 338,000 | ' | ||
Related Allowance | 120,000 | 114,000 | ' | ||
Average Recorded Investment | 301,000 | 309,000 | ' | ||
Interest Income Recognized | 3,000 | 7,000 | ' | ||
Residential Total [Member] | ' | ' | ' | ||
With an allowance recorded [Abstract] | ' | ' | ' | ||
Related Allowance | 60,000 | 30,000 | ' | ||
Totals [Abstract] | ' | ' | ' | ||
Recorded Investment | 900,000 | 1,627,000 | ' | ||
Unpaid Principal Balance | 920,000 | 1,627,000 | ' | ||
Related Allowance | 60,000 | 30,000 | ' | ||
Average Recorded Investment | 1,264,000 | 1,385,000 | ' | ||
Interest Income Recognized | 18,000 | 30,000 | ' | ||
Consumer - Credit Card [Member] | ' | ' | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 0 | [1] | 0 | [1] | ' |
Residential Construction [Member] | ' | ' | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | 0 | [1] | 0 | [1] | ' |
Residential - Subprime [Member] | ' | ' | ' | ||
Loans on Nonaccrual Status [Abstract] | ' | ' | ' | ||
Loans on Nonaccrual Status | $0 | [1] | $0 | [1] | ' |
[1] | Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans. |
LOANS_Troubled_Debt_Restructur
LOANS, Troubled Debt Restructuring (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contract | Loan | |
Loan | ||
Troubled Debt Restructuring [Abstract] | ' | ' |
Current | $156,000 | ' |
Past Due Greater than 30 Days | 23,000 | 0 |
Nonaccrual TDRs | 233,000 | 232,000 |
Total TDRs | 412,000 | 4,137,000 |
Decrease in TDR | -3,700,000 | ' |
Pre-modified contracts identified as TDRs | 1 | ' |
Pre-modification balance identified as TDR | 27,000 | ' |
Number of TDR defaulted | ' | 4 |
TDR defaulted during the period | ' | 259,000 |
Troubled debt restructurings executed during current period | 3,900,000 | ' |
Number of loans removed from TDR (Troubled debt restructuring) status after loan was paid off | 2 | ' |
Commercial, Financial and Agricultural [Member] | ' | ' |
Troubled Debt Restructuring [Abstract] | ' | ' |
Current | 0 | 0 |
Past Due Greater than 30 Days | 23,000 | 0 |
Nonaccrual TDRs | 233,000 | 232,000 |
Total TDRs | 256,000 | 232,000 |
Real Estate - Commercial [Member] | ' | ' |
Troubled Debt Restructuring [Abstract] | ' | ' |
Current | 156,000 | 3,905,000 |
Past Due Greater than 30 Days | 0 | 0 |
Nonaccrual TDRs | 0 | 0 |
Total TDRs | $156,000 | $3,905,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | $105,040 | $91,650 | ' |
Less accumulated depreciation and amortization | -32,697 | -28,189 | ' |
Premises and equipment, net | 72,343 | 63,461 | ' |
Depreciation expense | 5,568 | 3,799 | 3,265 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 16,771 | 14,949 | ' |
Buildings and Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 46,091 | 40,505 | ' |
Furniture, Fixtures, and Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 26,244 | 23,775 | ' |
Automobiles [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 1,299 | 812 | ' |
Leasehold Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | 10,146 | 10,047 | ' |
Construction-In-Process [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Premises and equipment, gross | $4,489 | $1,562 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Bond | |||
Changes to carrying amount of goodwill [Roll Forward] | ' | ' | ' |
Goodwill, beginning of period | $42,781,000 | $24,959,000 | ' |
Adjustment to goodwill | -610,000 | -136,000 | ' |
Goodwill acquired during the year | ' | 17,958,000 | ' |
Goodwill, end of period | 42,171,000 | 42,781,000 | 24,959,000 |
Reclassification of a liability assumed from PSB acquisition | 415,000 | ' | ' |
Increase in the value of fixed assets acquired | 351,000 | ' | ' |
Increase to income tax receivable from PSB acquisition | 190,000 | ' | ' |
Goodwill market value adjustment | 254,000 | ' | ' |
Number of bonds held in investment portfolio at acquisition | 2 | ' | ' |
Increase to income tax payable from PSB acquisition | 36,000 | ' | ' |
Net of deferred taxes adjustment resulted in reduction to goodwill | 610,000 | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense | 1,106,000 | 762,000 | 230,000 |
Core Deposit Intangible Assets [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount | 11,674,000 | 11,674,000 | ' |
Less accumulated amortization | -3,733,000 | -2,627,000 | ' |
Net carrying amount | 7,941,000 | 9,047,000 | ' |
Core deposit intangibles acquired | ' | 2,700,000 | ' |
Amortization expense | 1,100,000 | 762,000 | 230,000 |
Summary of estimated amortization expense [Abstract] | ' | ' | ' |
2014 | 1,106,000 | ' | ' |
2015 | 1,106,000 | ' | ' |
2016 | 1,106,000 | ' | ' |
2017 | 1,106,000 | ' | ' |
2018 | 1,106,000 | ' | ' |
Thereafter | $2,411,000 | ' | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
DEPOSITS [Abstract] | ' | ' |
Noninterest-bearing | $383,257,000 | $381,083,000 |
Savings and money market | 465,748,000 | 402,121,000 |
NOW accounts | 429,279,000 | 456,222,000 |
Time deposits less than $100 | 112,782,000 | 133,304,000 |
Time deposits $100 or more | 127,737,000 | 179,174,000 |
Total deposits | 1,518,803,000 | 1,551,904,000 |
Maturities of time deposits [Abstract] | ' | ' |
2014 | 177,339,000 | ' |
2015 | 41,369,000 | ' |
2016 | 11,730,000 | ' |
2017 | 5,610,000 | ' |
2018 | 4,470,000 | ' |
Thereafter | 1,000 | ' |
Total time deposits | 240,519,000 | ' |
Related party deposits | $16,400,000 | $29,100,000 |
SECURITIES_SOLD_UNDER_AGREEMEN1
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Retail Repurchase Agreements [Member] | Retail Repurchase Agreements [Member] | Repurchase Agreement with CitiGroup Global Markets, Inc [Member] | Repurchase Agreement with CitiGroup Global Markets, Inc [Member] | ||||
Short-term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Securities sold under agreements to repurchase | $53,916,000 | $41,447,000 | ' | $41,400,000 | $28,900,000 | $12,500,000 | $12,500,000 |
Average interest rate of outstanding agreements (in hundredths) | ' | ' | ' | 0.43% | 0.44% | ' | ' |
Securities pledged as collateral | ' | ' | ' | $51,800,000 | $52,700,000 | $15,700,000 | $19,500,000 |
Variable rate basis for the first term of the loan | ' | ' | ' | ' | ' | '3-month LIBOR | '3-month LIBOR |
First term of loan | ' | ' | ' | ' | ' | '12 months | '12 months |
Fixed interest rate for remainder of term (in hundredths) | ' | ' | ' | ' | ' | 4.57% | 4.57% |
Debt to equity threshold evaluation percentage (in hundredths) | 30.00% | 30.00% | 30.00% | ' | ' | ' | ' |
SHORTTERM_FEDERAL_HOME_LOAN_BA1
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Loan | ||
SHORT-TERM FEDERAL HOME LOAN BANK ADVANCES [Abstract] | ' | ' |
FHLB short term amount | $25,000,000 | $0 |
Number of FHLB advances | 1 | ' |
Maturity period for the advances from the Federal Home Loan Bank | '87 days | ' |
Fixed interest rate of FHLB (in hundredths) | 0.15% | ' |
Short-term and long-term FHLB advances are collateralized | 180,600,000 | ' |
Additional FHLB advances available | $130,400,000 | $206,100,000 |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Notes Payable [Member] | |||
Note Payable [Abstract] | ' | ' | ' |
Long-term Federal Home Loan Bank advances | $26,703,000 | $27,128,000 | ' |
Notes payable First National Bankers Bank | 1,000,000 | 2,000,000 | 1,000,000 |
Notes payable | 27,703,000 | 29,128,000 | ' |
FHLB advances [Abstract] | ' | ' | ' |
2014 | 426,000 | ' | ' |
2015 | 426,000 | ' | ' |
2016 | 427,000 | ' | ' |
2017 | 15,403,000 | ' | ' |
2019 | 10,021,000 | ' | ' |
Long-term Federal Home Loan Bank advances | 26,703,000 | 27,128,000 | ' |
Weighted Average Rate [Abstract] | ' | ' | ' |
2014 | 5.06% | ' | ' |
2015 | 5.06% | ' | ' |
2016 | 5.06% | ' | ' |
2017 | 3.41% | ' | ' |
2019 | 1.99% | ' | ' |
Notes payable, annual payments | ' | ' | 250,000 |
Notes payable, description of variable rate basis | ' | ' | 'New York Prime |
Maturities of notes payable [Abstract] | ' | ' | ' |
2014 | ' | ' | 250,000 |
2015 | ' | ' | 250,000 |
2016 | ' | ' | 250,000 |
2017 | ' | ' | 250,000 |
Notes payable | $1,000,000 | $2,000,000 | $1,000,000 |
JUNIOR_SUBORDINATED_DEBENTURES2
JUNIOR SUBORDINATED DEBENTURES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ' | ' | |
Debt Issued | $29,384 | $29,384 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt Issued | 29,384 | 29,384 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Junior Subordinated Debt February 22, 2001 issuance [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Date Issued | 22-Feb-01 | ' | |
Maturity Date | 22-Feb-31 | ' | |
Interest Rate (in hundredths) | 10.20% | ' | |
Callable After | 22-Feb-11 | ' | |
Debt Issued | 7,217 | 7,217 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Junior Subordinated Debentures July 31, 2001 issuance [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Date Issued | 31-Jul-01 | [1] | ' |
Maturity Date | 9-Jul-31 | ' | |
Variable Rate Basis | '3 month LIBOR | ' | |
Basis spread on variable rate (in hundredths) | 3.30% | ' | |
Callable After | 31-Jul-06 | ' | |
Debt Issued | 5,671 | 5,671 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Junior Subordinated Debentures September 20, 2004 issuance [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Date Issued | 20-Sep-04 | ' | |
Maturity Date | 20-Sep-34 | ' | |
Variable Rate Basis | '3 month LIBOR | ' | |
Basis spread on variable rate (in hundredths) | 2.50% | ' | |
Callable After | 20-Sep-09 | ' | |
Debt Issued | 8,248 | 8,248 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Junior Subordinated Debentures October 12, 2006 issuance [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Date Issued | 12-Oct-06 | [1] | ' |
Maturity Date | 12-Oct-36 | ' | |
Variable Rate Basis | '3 month LIBOR | ' | |
Basis spread on variable rate (in hundredths) | 1.85% | ' | |
Callable After | 26-Jun-11 | ' | |
Debt Issued | 5,155 | 5,155 | |
Trust Preferred Securities Subject to Mandatory Redemption [Member] | Junior Subordinated Debentures June 21, 2007 issuance [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Date Issued | 21-Jun-07 | [1] | ' |
Maturity Date | 21-Jun-37 | ' | |
Variable Rate Basis | '3 month LIBOR | ' | |
Basis spread on variable rate (in hundredths) | 1.70% | ' | |
Callable After | 15-Jun-12 | ' | |
Debt Issued | $3,093 | $3,093 | |
[1] | Assumed in PSB acquisition. |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Future annual minimum rental payments due under non-cancellable operating leases [Abstract] | ' | ' | ' |
2014 | $2,194,000 | ' | ' |
2015 | 2,001,000 | ' | ' |
2016 | 1,702,000 | ' | ' |
2017 | 1,485,000 | ' | ' |
2018 | 1,229,000 | ' | ' |
Thereafter | 10,159,000 | ' | ' |
Total future annual minimum rental payments | 18,770,000 | ' | ' |
Rent expense under operating leases | 2,600,000 | 2,500,000 | 2,000,000 |
Line of Credit Facility [Line Items] | ' | ' | ' |
Borrowing lines capacity | 130,400,000 | 206,100,000 | ' |
FHLB of Dallas line of credit [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Borrowing lines capacity | 130,400,000 | ' | ' |
Correspondent banks line of credit [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount of federal funds lines of credit available through correspondent banks | 33,500,000 | ' | ' |
Federal Reserve of Atlanta line of credit [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Line of credit facility, remaining borrowing capacity | 206,500,000 | ' | ' |
Borrowings line outstanding | $0 | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred tax assets [Abstract] | ' | ' | ' |
Allowance for loan losses | $5,359 | $6,325 | ' |
Alternative minimum tax credit | 0 | 1,300 | ' |
Other | 2,193 | 2,575 | ' |
Total deferred tax assets | 7,552 | 10,200 | ' |
Deferred tax liabilities [Abstract] | ' | ' | ' |
Premises and equipment | 5,153 | 4,958 | ' |
FHLB stock dividends | 59 | 57 | ' |
Unrealized gains on securities | 1,227 | 5,914 | ' |
Other | 1,884 | 1,747 | ' |
Total deferred tax liabilities | 8,323 | 12,676 | ' |
Net deferred tax liability | 771 | 2,476 | ' |
Components of income tax expense [Abstract] | ' | ' | ' |
Current | 3,323 | 2,128 | 1,055 |
Deferred expense (benefit) | 2,828 | 1,651 | -491 |
Total income tax expense | 6,151 | 3,779 | 564 |
Income tax reconciliation [Abstract] | ' | ' | ' |
Federal income tax statutory rate (in hundredths) | 35.00% | 35.00% | 34.00% |
Taxes calculated at statutory rate | 7,114 | 4,697 | 1,713 |
Increase (decrease) resulting from [Abstract] | ' | ' | ' |
Tax-exempt interest, net | -1,095 | -988 | -1,121 |
Tax credits | 0 | 0 | 0 |
Other | 132 | 70 | -28 |
Total income tax expense | $6,151 | $3,779 | $564 |
EMPLOYEE_BENEFITS_Details
EMPLOYEE BENEFITS (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Feb. 19, 2009 | Feb. 06, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 05, 2009 | |
EMPLOYEE BENEFITS [Abstract] | ' | ' | ' | ' | ' | ' |
ESOP loan | ' | ' | ' | ' | ' | $300,000 |
Number of shares purchased (in shares) | 5,828 | 25,000 | ' | ' | ' | ' |
Purchase price per share (in dollars per share) | $9.05 | $9.89 | ' | ' | $9.73 | ' |
ESOP compensation expense | ' | ' | 720,000 | 428,000 | 469,000 | ' |
Total ESOP shares (in shares) | ' | ' | 537,373 | 573,476 | ' | ' |
Deferred compensation liability | ' | ' | 1,200,000 | 1,200,000 | ' | ' |
Deferred compensation expense | ' | ' | 74,000 | 68,000 | 232,000 | ' |
Defined contribution plan expense | ' | ' | 12,000 | 39,000 | 9,000 | ' |
Defined contribution plan participation service period | ' | ' | '90 days | ' | ' | ' |
Employer contribution to 401(k) retirement plan | ' | ' | $60,000 | $33,000 | $31,000 | ' |
EMPLOYEE_STOCK_PLANS_Details
EMPLOYEE STOCK PLANS (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Feb. 28, 2007 | Jun. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 2007 Omnibus Incentive Compensation Plan [Member] | 1997 Stock Incentive Plan [Member] | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares outstanding reserved for issuance under the plan (in shares) | ' | ' | ' | ' | 525,000 | ' | ' | ' | ' | ' |
Shares available for grant under the plan (in shares) | ' | ' | ' | 92,428 | ' | ' | ' | ' | ' | ' |
Options vesting on an annual basis, 20% of group per year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 390,140 |
Annual vesting percentage, vesting group 20% per year (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% |
Options vesting on an annual basis, 16.67% of group per year (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,502 |
Annual vesting percentage, vesting group 16.67% per year (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.67% |
Vesting period | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | '10 years |
Options [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in shares) | 307,845 | 35,100 | 53,918 | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | 131,280 | 294,803 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in shares) | -6,155 | -14,117 | -10,240 | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | -328 | -7,941 | -8,578 | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in shares) | 432,642 | 307,845 | 35,100 | ' | ' | ' | ' | ' | ' | 18,003 |
Exercisable, beginning of period (in shares) | 20,983 | 35,100 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, end of period (in shares) | 70,457 | 20,983 | 35,100 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, beginning of period (in dollars per share) | $13.36 | $14.07 | $12.86 | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | $15.82 | $12.97 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised (in dollars per share) | $11.10 | $7.15 | $6.60 | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | $20.88 | $12.97 | $15.39 | ' | ' | ' | ' | ' | ' | ' |
Exercisable, beginning of period (in dollars per share) | $18.72 | $14.07 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding, end of period (in dollars per share) | $14.13 | $13.36 | $14.07 | ' | ' | ' | ' | ' | ' | ' |
Exercisable, end of period (in dollars per share) | $14.81 | $18.72 | $14.07 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term, Outstanding, End of Period | '8 years 6 months 4 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term, Exercisable, End of Period | '6 years 5 months 23 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value, Outstanding, End of Period | $1,612,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value, Exercisable, End of Period | 215,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary activity relating to non-vested stock awards [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at beginning of year (in shares) | 286,862 | ' | ' | ' | ' | ' | 15,313 | ' | ' | ' |
Granted (in shares) | 131,280 | ' | ' | ' | ' | 22,047 | 0 | ' | ' | ' |
Vested (in shares) | -55,957 | ' | ' | ' | ' | ' | 14,430 | ' | ' | ' |
Forfeited (in shares) | 0 | ' | ' | ' | ' | ' | -883 | ' | ' | ' |
Balance at end of year (in shares) | 362,185 | 286,862 | ' | ' | ' | ' | 0 | 15,313 | ' | ' |
Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested options outstanding, beginning of year (in dollars per share) | $4.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | $5.59 | ' | ' | ' | ' | ' | $12.77 | ' | ' | ' |
Vested (in dollars per share) | $4.41 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested options outstanding, end of year (in dollars per share) | $4.84 | $4.41 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | 308,000 | 150,000 | 13,000 | ' | ' | ' | 21,000 | 57,000 | 62,000 | ' |
Assumptions made in estimating fair value of options granted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk free rate of interest (in hundredths) | 1.30% | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' |
Expected volatility (in hundredths) | 47.40% | 46.10% | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (in hundredths) | 2.10% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Average expected life | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant-date fair value (in dollars per share) | $5.59 | $4.41 | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of the options exercised | $41,000 | $130,000 | $66,000 | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 28, 2012 | Jan. 09, 2009 | Aug. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2010 | Aug. 31, 2011 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 28, 2012 | Dec. 31, 2013 | |
Common Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series C Preferred Stock [Member] | Series C Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Funds available to pay dividends to the Parent Company without regulatory approval | $21,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock issued during period (in shares) | ' | ' | ' | 756,511 | 20,000 | ' | ' | ' | 32,000 | ' | ' | ' | 99,971 | ' |
Proceeds from issuance of preferred stock | 0 | 0 | 32,000,000 | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of preferred stock used for additional capital | ' | ' | ' | ' | ' | ' | ' | ' | $12,000,000 | ' | ' | ' | ' | ' |
Number of securities called by warrants (in shares) | ' | ' | ' | ' | 208,768 | ' | ' | 104,384 | ' | ' | ' | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | $14.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate on preferred stock (in hundredths) | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | 1.00% | ' | ' | ' | 4.00% |
Target growth rate in qualified small business loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' |
Increase in Dividend rate on preferred stock in March 2016 (in hundredth) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' |
Stock redeemed during the period (in shares) | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stated value (in dollars per share) | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price (per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $18 |
Company right period to require conversion in trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'P20D |
Company right period to require conversion in consecutive days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days |
Company right to require conversion above conversion price (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% |
OTHER_COMPREHENSIVE_LOSS_INCOM2
OTHER COMPREHENSIVE (LOSS) INCOME (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Securities available-for-sale (Before tax) [Abstract] | ' | ' | ' |
Change in unrealized gain during period | ($12,481) | $831 | $5,507 |
Reclassification adjustment for gains included in net income | -234 | -204 | -99 |
Total other comprehensive (loss) income, before tax | -12,715 | 627 | 5,408 |
Securities available-for-sale: (Tax Effect) [Abstract] | ' | ' | ' |
Change in unrealized gain during period | 4,368 | -291 | -1,872 |
Reclassification adjustment for gains included in net income | 82 | 71 | 34 |
Total other comprehensive income (loss), tax effect | 4,450 | -220 | -1,838 |
Securities available-for-sale (Net of Tax) [Abstract] | ' | ' | ' |
Change in unrealized gain during period | -8,113 | 540 | 3,635 |
Reclassification adjustment for gains included in net income | -152 | -133 | -65 |
Total other comprehensive (loss) income, net of tax | -8,265 | 407 | 3,570 |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain on securities, net | 234 | 204 | 99 |
Income tax expense | 6,151 | 3,779 | 564 |
Net earnings | 14,176 | 9,642 | 4,473 |
Unrealized Gains and Losses on Securities Available-for-Sale [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Gain on securities, net | -234 | -204 | -99 |
Income tax expense | 82 | 71 | 34 |
Net earnings | ($152) | ($133) | ($65) |
NET_EARNINGS_PER_COMMON_SHARE_1
NET EARNINGS PER COMMON SHARE (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
NET EARNINGS PER COMMON SHARE [Abstract] | ' | ' | ' |
Net earnings available to common shareholders | $12,844 | $8,095 | $2,671 |
Dividends on Series C preferred stock | 400 | 0 | 0 |
Adjusted net earnings available to common shareholders | $13,244 | $8,095 | $2,671 |
Weighted average number of common shares outstanding used in computation of basic earnings per common share (in shares) | 11,247,000 | 10,482,000 | 9,787,000 |
Effect of dilutive securities [Abstract] | ' | ' | ' |
Stock options (in shares) | 50,000 | 24,000 | 7,000 |
Restricted stock (in shares) | 0 | 12,000 | 5,000 |
Preferred stock (in shares) | 564,000 | 6,000 | 0 |
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share (in shares) | 11,861,000 | 10,524,000 | 9,799,000 |
Stock Options [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computing diluted earnings per share (in shares) | 134,611 | 18,331 | 18,331 |
Warrant [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive shares excluded from computing diluted earnings per share (in shares) | 104,384 | 104,384 | 104,384 |
FINANCIAL_INSTRUMENTS_WITH_OFF2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Commitments to Extend Credit [Member] | ' | ' |
Financial instruments whose contract amounts represent credit risk [Abstract] | ' | ' |
Contract or Notional Amount | $264,346 | $237,085 |
Letters of Credit [Member] | ' | ' |
Financial instruments whose contract amounts represent credit risk [Abstract] | ' | ' |
Contract or Notional Amount | $9,505 | $9,958 |
Letters of credit secured by marketable securities (in hundredths) | 86.00% | 88.00% |
REGULATORY_MATTERS_Details
REGULATORY MATTERS (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Actual [Abstract] | ' | ' |
Total capital to risk weighted assets amount | $178,343 | $165,302 |
Tier I capital to risk weighted assets amount | 169,242 | 157,753 |
Tier I capital to average assets amount | 169,242 | 157,753 |
Total capital to risk weighted assets ratio (in hundredths) | 14.19% | 14.10% |
Tier I capital to risk weighted assets ratio (in hundredths) | 13.47% | 13.46% |
Tier I capital to average assets ratio (in hundredths) | 9.35% | 11.82% |
Required for Minimum Capital Adequacy Purposes [Abstract] | ' | ' |
Total capital to risk weighted assets amount | 100,536 | 93,770 |
Tier I capital to risk weighted assets amount | 50,268 | 46,885 |
Tier I capital to average assets amount | 72,405 | 53,399 |
Total capital to risk weighted assets ratio (in hundredths) | 8.00% | 8.00% |
Tier I capital to risk weighted assets ratio (in hundredths) | 4.00% | 4.00% |
Tier I capital to average assets ratio (in hundredths) | 4.00% | 4.00% |
Bank [Member] | ' | ' |
Actual [Abstract] | ' | ' |
Total capital to risk weighted assets amount | 170,262 | 162,159 |
Tier I capital to risk weighted assets amount | 161,283 | 154,610 |
Tier I capital to average assets amount | 161,283 | 154,610 |
Total capital to risk weighted assets ratio (in hundredths) | 13.56% | 13.84% |
Tier I capital to risk weighted assets ratio (in hundredths) | 12.84% | 13.20% |
Tier I capital to average assets ratio (in hundredths) | 8.91% | 11.58% |
Required for Minimum Capital Adequacy Purposes [Abstract] | ' | ' |
Total capital to risk weighted assets amount | 100,466 | 93,703 |
Tier I capital to risk weighted assets amount | 50,233 | 46,851 |
Tier I capital to average assets amount | 72,384 | 53,421 |
Total capital to risk weighted assets ratio (in hundredths) | 8.00% | 8.00% |
Tier I capital to risk weighted assets ratio (in hundredths) | 4.00% | 4.00% |
Tier I capital to average assets ratio (in hundredths) | 4.00% | 4.00% |
To be Well Capitalized Under Prompt Corrective Action Provisions [Abstract] | ' | ' |
Total capital to risk weighted assets amount | 125,582 | 117,128 |
Tier I capital to risk weighted assets amount | 75,349 | 70,277 |
Tier I capital to average assets amount | $108,576 | $80,132 |
Total capital to risk weighted assets ratio (in hundredths) | 10.00% | 10.00% |
Tier I capital to risk weighted assets ratio (in hundredths) | 6.00% | 6.00% |
Tier I capital to average assets ratio (in hundredths) | 6.00% | 6.00% |
FAIR_VALUE_MEASUREMENTS_AND_DI2
FAIR VALUE MEASUREMENTS AND DISCLOSURES (Details) (USD $) | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Minimum [Member] | Maximum [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Recurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | ||
Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | Level 1 [Member] | Level 1 [Member] | Level 2 [Member] | Level 2 [Member] | Level 3 [Member] | Level 3 [Member] | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period when new appraisals are received | ' | '28 days | '42 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Discount for selling costs (in hundredths) | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional discount for taxes, insurance and maintenance costs (in hundredths) | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
U.S. Government sponsored enterprises | ' | ' | ' | $11,265 | $13,424 | $0 | $0 | $11,265 | $13,424 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
Obligations of state and political subdivisions | ' | ' | ' | 59,978 | 87,421 | 0 | 0 | 59,978 | 87,421 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
GSE mortgage-backed securities | ' | ' | ' | 145,965 | 178,819 | 0 | 0 | 145,965 | 178,819 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized mortgage obligations: residential | ' | ' | ' | 70,887 | 101,986 | 0 | 0 | 70,887 | 101,986 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized mortgage obligations: commercial | ' | ' | ' | 27,346 | 29,761 | 0 | 0 | 27,346 | 29,761 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Other asset-backed securities | ' | ' | ' | 25,489 | 12,742 | 0 | 0 | 25,489 | 12,742 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized debt obligation | ' | ' | ' | 735 | 464 | 0 | 0 | 735 | 464 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Assets and Liabilities measured on nonrecurring basis [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impaired loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,973 | 2,245 | 0 | 0 | 1,973 | 2,245 | 0 | 0 |
Other real estate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,687 | $7,496 | $0 | $0 | $6,687 | $7,496 | $0 | $0 |
FAIR_VALUE_MEASUREMENTS_AND_DI3
FAIR VALUE MEASUREMENTS AND DISCLOSURES, by Balance Sheet Grouping (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets [Abstract] | ' | ' |
Securities available-for-sale | $341,665 | $424,617 |
Carrying Value [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 59,731 | 73,573 |
Time deposits held in banks | ' | 881 |
Securities available-for-sale | 341,665 | 424,617 |
Securities held-to-maturity | 155,523 | 153,524 |
Other investments | 11,526 | 8,310 |
Loans, net | 1,128,775 | 1,039,570 |
Cash surrender value of life insurance policies | 13,450 | 13,183 |
Financial liabilities [Abstract] | ' | ' |
Non-interest-bearing deposits | 383,257 | 380,557 |
Interest-bearing deposits | 1,135,546 | 1,171,347 |
Securities sold under agreements to repurchase | 53,916 | 41,447 |
Short-term Federal Home Loan Bank advances | 25,000 | ' |
Notes payable | 27,703 | 29,128 |
Junior subordinated debentures | 29,384 | 29,384 |
Fair Value [Member] | Level 1 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 59,731 | 73,573 |
Time deposits held in banks | ' | 0 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Other investments | 11,526 | 8,310 |
Loans, net | 0 | 0 |
Cash surrender value of life insurance policies | 0 | 0 |
Financial liabilities [Abstract] | ' | ' |
Non-interest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 0 | 0 |
Securities sold under agreements to repurchase | 53,916 | 41,447 |
Short-term Federal Home Loan Bank advances | 0 | ' |
Notes payable | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Fair Value [Member] | Level 2 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Time deposits held in banks | ' | 0 |
Securities available-for-sale | 341,665 | 424,617 |
Securities held-to-maturity | 151,168 | 156,924 |
Other investments | 0 | 0 |
Loans, net | 0 | 0 |
Cash surrender value of life insurance policies | 13,450 | 13,183 |
Financial liabilities [Abstract] | ' | ' |
Non-interest-bearing deposits | 383,257 | 380,557 |
Interest-bearing deposits | 895,346 | 859,183 |
Securities sold under agreements to repurchase | 0 | 0 |
Short-term Federal Home Loan Bank advances | 25,000 | ' |
Notes payable | 0 | 0 |
Junior subordinated debentures | 22,167 | 22,167 |
Fair Value [Member] | Level 3 [Member] | ' | ' |
Financial assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Time deposits held in banks | ' | 883 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Other investments | 0 | 0 |
Loans, net | 1,139,740 | 1,046,495 |
Cash surrender value of life insurance policies | 0 | 0 |
Financial liabilities [Abstract] | ' | ' |
Non-interest-bearing deposits | 0 | 0 |
Interest-bearing deposits | 241,359 | 314,783 |
Securities sold under agreements to repurchase | 0 | 0 |
Short-term Federal Home Loan Bank advances | 0 | ' |
Notes payable | 28,813 | 29,128 |
Junior subordinated debentures | $7,776 | $7,776 |
OTHER_NONINTEREST_INCOME_AND_E2
OTHER NON-INTEREST INCOME AND EXPENSE (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OTHER NON-INTEREST INCOME AND EXPENSE [Abstract] | ' | ' | ' |
Threshold for analysis of noninterest income (in hundredths) | 1.00% | 1.00% | 1.00% |
Threshold for analysis of noninterest expense (in hundredths) | 1.00% | 1.00% | 1.00% |
Professional fees | $1,709 | $2,022 | $2,518 |
FDIC fees | 1,136 | 930 | 921 |
Marketing expenses | 2,340 | 1,648 | 1,663 |
Corporate development expense | 1,507 | 1,022 | 984 |
Data processing | 1,955 | 1,689 | 2,355 |
Printing and supplies | 1,494 | 1,105 | 890 |
Expenses on other real estate owned and other assets repossessed | 1,201 | 1,767 | 1,511 |
Amortization of intangibles | $1,106 | $762 | $230 |
CONDENSED_FINANCIAL_INFORMATIO2
CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Assets | ' | ' | ' | ' |
Cash and interest-bearing deposits in banks | $43,488,000 | $46,297,000 | ' | ' |
Securities available-for-sale | 341,665,000 | 424,617,000 | ' | ' |
Other assets | 4,656,000 | 8,594,000 | ' | ' |
Total assets | 1,851,160,000 | 1,851,728,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Notes payable | 27,703,000 | 29,128,000 | ' | ' |
Junior subordinated debentures | 29,384,000 | 29,384,000 | ' | ' |
Other | 5,605,000 | 10,624,000 | ' | ' |
Total liabilities | 1,660,411,000 | 1,662,487,000 | ' | ' |
Total shareholders' equity | 190,749,000 | 189,241,000 | 161,837,000 | 136,653,000 |
Total liabilities and stockholders' equity | 1,851,160,000 | 1,851,728,000 | ' | ' |
Expenses: | ' | ' | ' | ' |
Interest on short- and long-term debt | 1,232,000 | 756,000 | 807,000 | ' |
Professional fees | 1,709,000 | 2,022,000 | 2,518,000 | ' |
Income before income taxes | 20,327,000 | 13,421,000 | 5,037,000 | ' |
Income tax benefit | -6,151,000 | -3,779,000 | -564,000 | ' |
Net earnings | 14,176,000 | 9,642,000 | 4,473,000 | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net earnings | 14,176,000 | 9,642,000 | 4,473,000 | ' |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' | ' |
Net cash provided by operating activities | 25,884,000 | 17,947,000 | 13,204,000 | ' |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of securities available-for-sale | -68,043,000 | -100,384,000 | -149,332,000 | ' |
Net cash (used in) provided by investing activities | -38,931,000 | -5,296,000 | -47,506,000 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Proceeds from issuance of Series B preferred stock | 0 | 0 | 32,000,000 | ' |
Proceeds from exercise of stock options | 69,000 | 100,000 | 67,000 | ' |
Payment of preferred dividends | -1,519,000 | -1,579,000 | -938,000 | ' |
Payment of common dividends | -3,320,000 | -2,932,000 | -2,725,000 | ' |
Repayment of long-term debt | -1,000,000 | 0 | 0 | ' |
Net cash (used in) provided by financing activities | -795,000 | -22,381,000 | 25,698,000 | ' |
Net increase (decrease) in cash and cash equivalents | -13,842,000 | -9,730,000 | -8,604,000 | ' |
Cash and cash equivalents, beginning of year | 73,573,000 | 83,303,000 | 91,907,000 | ' |
Cash and cash equivalents, end of year | 59,731,000 | 73,573,000 | 83,303,000 | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash and interest-bearing deposits in banks | 7,879,000 | 4,982,000 | ' | ' |
Securities available-for-sale | 735,000 | 0 | ' | ' |
Other assets | 2,561,000 | 2,233,000 | ' | ' |
Investment in and advances to subsidiaries | 211,575,000 | 217,049,000 | ' | ' |
Total assets | 222,750,000 | 224,264,000 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Dividends payable | 1,093,000 | 1,113,000 | ' | ' |
Notes payable | 1,000,000 | 2,000,000 | ' | ' |
Junior subordinated debentures | 29,384,000 | 29,384,000 | ' | ' |
Other | 524,000 | 2,526,000 | ' | ' |
Total liabilities | 32,001,000 | 35,023,000 | ' | ' |
Total shareholders' equity | 190,749,000 | 189,241,000 | ' | ' |
Total liabilities and stockholders' equity | 222,750,000 | 224,264,000 | ' | ' |
Revenue: | ' | ' | ' | ' |
Dividends from Bank and nonbank subsidiaries | 11,000,000 | 0 | 0 | ' |
Rental and other income | 125,000 | 102,000 | 908,000 | ' |
Total revenue | 11,125,000 | 102,000 | 908,000 | ' |
Expenses: | ' | ' | ' | ' |
Interest on short- and long-term debt | 1,415,000 | 984,000 | 971,000 | ' |
Professional fees | 345,000 | 804,000 | 337,000 | ' |
Other expenses | 547,000 | 1,126,000 | 643,000 | ' |
Total expenses | 2,307,000 | 2,914,000 | 1,951,000 | ' |
Income before income taxes | 8,818,000 | -2,812,000 | -1,043,000 | ' |
Equity in undistributed earnings of subsidiaries | 4,600,000 | 11,477,000 | 5,167,000 | ' |
Income tax benefit | 758,000 | 977,000 | 349,000 | ' |
Net earnings | 14,176,000 | 9,642,000 | 4,473,000 | ' |
Cash flows from operating activities: | ' | ' | ' | ' |
Net earnings | 14,176,000 | 9,642,000 | 4,473,000 | ' |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' | ' |
Undistributed earnings of subsidiaries | -4,600,000 | -11,477,000 | -5,167,000 | ' |
Other, net | -672,000 | -2,307,000 | 144,000 | ' |
Net cash provided by operating activities | 8,904,000 | -4,142,000 | -550,000 | ' |
Cash flows from investing activities: | ' | ' | ' | ' |
Purchase of securities available-for-sale | -464,000 | 0 | 0 | ' |
Investments in and advances to subsidiaries | 0 | 0 | -11,972,000 | ' |
Outlays for business acquisition, net of cash acquired | 0 | -14,360,000 | 0 | ' |
Other, net | 223,000 | 0 | 0 | ' |
Net cash (used in) provided by investing activities | -241,000 | -14,360,000 | -11,972,000 | ' |
Cash flows from financing activities: | ' | ' | ' | ' |
Proceeds from issuance of Series B preferred stock | 0 | 0 | 32,000,000 | ' |
Payment to redeem Series A preferred stock | 0 | 0 | -20,000,000 | ' |
Proceeds from exercise of stock options | 69,000 | 100,000 | 68,000 | ' |
Payment of preferred dividends | -1,519,000 | -1,579,000 | -938,000 | ' |
Payment of common dividends | -3,320,000 | -2,932,000 | -2,724,000 | ' |
Repayment of long-term debt | -1,000,000 | 0 | 0 | ' |
Tax benefit from exercise of stock options | 4,000 | 1,000 | 0 | ' |
Net cash (used in) provided by financing activities | -5,766,000 | -4,410,000 | 8,406,000 | ' |
Net increase (decrease) in cash and cash equivalents | 2,897,000 | -22,912,000 | -4,116,000 | ' |
Cash and cash equivalents, beginning of year | 4,982,000 | 27,894,000 | 32,010,000 | ' |
Cash and cash equivalents, end of year | $7,879,000 | $4,982,000 | $27,894,000 | ' |