Loan Portfolio | 9 Months Ended |
Sep. 30, 2013 |
Loan Portfolio Disclosure [Abstract] | ' |
Loan Portfolio Disclosure [Text Block] | ' |
Note 4. Loan Portfolio |
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The following table sets forth information concerning the Company's loan portfolio by type of loan at the dates indicated: |
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| | September 30, 2013 | | | December 31, 2012 | | | | | | | | | | | | | | | | | |
| | Amount | | % of | | | Amount | | % of | | | | | | | | | | | | | | | | | |
Total | Total | | | | | | | | | | | | | | | | |
Commercial and industrial and finance leases | | $ | 22,661 | | 7.4 | % | | $ | 23,184 | | 7.8 | % | | | | | | | | | | | | | | | | |
Secured by real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 78,281 | | 25.7 | % | | | 84,207 | | 28.5 | % | | | | | | | | | | | | | | | | |
Multi family | | | 16,235 | | 5.3 | % | | | 14,491 | | 4.9 | % | | | | | | | | | | | | | | | | |
Commercial real estate and construction | | | 187,370 | | 61.4 | % | | | 172,973 | | 58.5 | % | | | | | | | | | | | | | | | | |
Consumer | | | 536 | | 0.2 | % | | | 899 | | 0.3 | % | | | | | | | | | | | | | | | | |
Total loans | | | 305,083 | | 100 | % | | | 295,754 | | 100 | % | | | | | | | | | | | | | | | | |
Deferred loan fees | | | -477 | | | | | | -589 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | -10,122 | | | | | | -11,008 | | | | | | | | | | | | | | | | | | | |
Loans, net | | $ | 294,484 | | | | | $ | 284,157 | | | | | | | | | | | | | | | | | | | |
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The Bank did not foreclose on any loans during the nine months ended September 30, 2013. The Bank had one foreclosed real estate property, with a carrying value of $225,000 in the year ended December 31, 2012 which was sold during the first quarter of 2013. |
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The following table sets forth information concerning activity in the Company's allowance for loan losses for the indicated periods. |
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| | For The Three Months Ended | | For The Nine Months Ended | | | | | | | | | | | | | | | | |
| | September 30, | | September 30, | | September 30, | | September 30, | | | | | | | | | | | | | | | | |
2013 | 2012 | 2013 | 2012 | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 10,386 | | $ | 17,718 | | $ | 11,008 | | $ | 17,720 | | | | | | | | | | | | | | | | |
Provision for loan losses | | | -264 | | | -4,193 | | | -865 | | | -4,193 | | | | | | | | | | | | | | | | |
Loans charged off | | | - | | | - | | | -21 | | | -2 | | | | | | | | | | | | | | | | |
Recoveries | | | - | | | - | | | - | | | - | | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 10,122 | | $ | 13,525 | | $ | 10,122 | | $ | 13,525 | | | | | | | | | | | | | | | | |
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Allowance for Credit Losses and Recorded Investment in Financing Receivables |
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The qualitative factors are determined based on the various risk characteristics of each loan class. Relevant risk characteristics are as follows: |
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Commercial and industrial loans - Loans in this class are made to businesses. Generally these loans are secured by assets of the business and repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer and/or business spending will have an adverse effect on the credit quality in this loan class. |
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Commercial real estate - Loans in this class include non-owner occupied income-producing investment properties and owner-occupied real estate used for business purposes. The underlying properties are generally located largely in our primary market area. The cash flows of the income producing investment properties are adversely impacted by a downturn in the economy as evidenced by increased vacancy rates, which in turn, will have an effect on credit quality. In the case of owner-occupied real estate used for business purposes a weakened economy and resultant decreased consumer and/or business spending will have an adverse effect on credit quality. |
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Construction loans- Loans in this class primarily include land loans to local individuals, contractors and developers for developing the land for sale or for the purpose of making improvements thereon. Repayment is derived from sale of the lots/units including any pre-sold units. Credit risk is affected by market conditions, time to sell at an adequate price and cost overruns. To a lesser extent this class includes commercial development projects we finance which in most cases have an interest-only phase during construction and then convert to permanent financing. Credit risk is affected by cost overruns, market conditions and the availability of permanent financing, to the extent such permanent financing is not being provided by us. |
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Residential real estate - Loans in this class are made to and secured by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an adverse effect on the credit quality in this loan class. The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. |
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Multi-Family real estate - Loans in this class are made to and secured by owner-occupied residential real estate and repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. The Company generally does not originate loans with a loan-to-value ratio greater than 80 percent and does not grant subprime loans. |
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Consumer loans- Loans in this class may be either secured or unsecured and repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan (such as automobile or other secured assets). Therefore the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. |
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Financing Leases- Loans in this class may be either secured or unsecured and repayment is dependent on the credit quality of the individual borrower and, if applicable, sale of the collateral securing the loan (such as equipment or other secured assets). Therefore the overall health of the economy, including unemployment rates and housing prices, will have an effect on the credit quality in this loan class. |
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Allowance for Credit Losses and Recorded Investment in Loans |
For the Three Months Ended September 30, 2013 |
(In thousands) |
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| | Commercial & | | Commercial Real Estate | | Construction | | Multi family | | Residential 1-4 | | Consumer | | Finance | | Unallocated | | Total | |
industrial | Family | Leases |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 968 | | $ | 6,524 | | $ | 1,506 | | $ | 277 | | $ | 1,076 | | $ | 10 | | $ | 25 | | | | | $ | 10,386 | |
Charge-offs | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision | | | -21 | | | -630 | | | 328 | | | 80 | | | -18 | | | 3 | | | -6 | | | | | | -264 | |
Ending balance | | $ | 947 | | $ | 5,894 | | $ | 1,834 | | $ | 357 | | $ | 1,058 | | $ | 13 | | $ | 19 | | $ | - | | $ | 10,122 | |
Ending balance: individually evaluated for impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 947 | | $ | 5,894 | | $ | 1,834 | | $ | 357 | | $ | 1,058 | | $ | 13 | | $ | 19 | | $ | - | | $ | 10,122 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 21,863 | | $ | 157,909 | | $ | 29,461 | | $ | 16,235 | | $ | 78,281 | | $ | 536 | | $ | 798 | | $ | - | | $ | 305,083 | |
Ending balance: individually evaluated for impairment | | $ | - | | $ | 6,752 | | $ | - | | $ | - | | $ | 7,950 | | $ | - | | $ | - | | $ | - | | $ | 14,702 | |
Ending balance: collectively evaluated for impairment | | $ | 21,863 | | $ | 151,157 | | $ | 29,461 | | $ | 16,235 | | $ | 70,331 | | $ | 536 | | $ | 798 | | $ | - | | $ | 290,381 | |
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Allowance for Credit Losses and Recorded Investment in Loans |
For the Three Months Ended September 30, 2012 |
(In thousands) |
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| | Commercial & | | Commercial Real Estate | | Construction | | Multi family | | Residential 1-4 | | Consumer | | Finance | | Unallocated | | Total | |
industrial | Family | Leases |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 673 | | $ | 7,658 | | $ | 1,113 | | $ | 470 | | $ | 6,082 | | $ | 26 | | $ | 63 | | $ | 1,633 | | $ | 17,718 | |
Charge-offs | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision | | | -22 | | | -1,234 | | | 8 | | | 23 | | | -1,372 | | | 57 | | | -20 | | | -1,633 | | | -4,193 | |
Ending balance | | $ | 651 | | $ | 6,424 | | $ | 1,121 | | $ | 493 | | $ | 4,710 | | $ | 83 | | $ | 43 | | $ | - | | $ | 13,525 | |
Ending balance: individually evaluated for impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 651 | | $ | 6,424 | | $ | 1,121 | | $ | 493 | | $ | 4,710 | | $ | 83 | | $ | 43 | | $ | - | | $ | 13,525 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 14,242 | | $ | 157,750 | | $ | 20,766 | | $ | 14,593 | | $ | 98,347 | | $ | 2,073 | | $ | 1,725 | | $ | - | | $ | 309,496 | |
Ending balance: individually evaluated for impairment | | $ | - | | $ | 17,597 | | $ | 9,730 | | $ | - | | $ | 8,152 | | $ | - | | $ | - | | $ | - | | $ | 35,479 | |
Ending balance: collectively evaluated for impairment | | $ | 14,242 | | $ | 140,153 | | $ | 11,036 | | $ | 14,593 | | $ | 90,195 | | $ | 2,073 | | $ | 1,725 | | $ | - | | $ | 274,017 | |
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Allowance for Credit Losses and Recorded Investment in Loans |
For the Nine Months Ended September 30, 2013 |
(In thousands) |
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| | Commercial | | Commercial | | Construction | | Multi | | Residential 1- | | Consumer | | Finance Leases | | Unallocated | | Total | |
& industrial | Real Estate | family | 4 Family |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 989 | | $ | 6,309 | | $ | 1,441 | | $ | 326 | | $ | 1,529 | | $ | 15 | | $ | 62 | | $ | 337 | | $ | 11,008 | |
Charge-offs | | | - | | | - | | | - | | | - | | | -21 | | | - | | | - | | | - | | | -21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision | | | -42 | | | -415 | | | 393 | | | 31 | | | -450 | | | -2 | | | -43 | | | -337 | | $ | -865 | |
Ending balance | | $ | 947 | | $ | 5,894 | | $ | 1,834 | | $ | 357 | | $ | 1,058 | | $ | 13 | | $ | 19 | | $ | - | | $ | 10,122 | |
Ending balance: individually evaluated for impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 947 | | $ | 5,894 | | $ | 1,834 | | $ | 357 | | $ | 1,058 | | $ | 13 | | $ | 19 | | $ | - | | $ | 10,122 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 21,863 | | $ | 157,909 | | $ | 29,461 | | $ | 16,235 | | $ | 78,281 | | $ | 536 | | $ | 798 | | $ | - | | | 305,083 | |
Ending balance: individually evaluated for impairment | | $ | - | | $ | 6,752 | | $ | - | | $ | - | | $ | 7,950 | | $ | - | | $ | - | | $ | - | | $ | 14,702 | |
Ending balance: collectively evaluated for impairment | | $ | 21,863 | | $ | 151,157 | | $ | 29,461 | | $ | 16,235 | | $ | 70,331 | | $ | 536 | | $ | 798 | | $ | - | | | 290,381 | |
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Allowance for Credit Losses and Recorded Investment in Loans |
For the Nine Months Ended September 30, 2012 |
(In thousands) |
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| | Commercial | | Commercial | | Construction | | Multi | | Residential 1- | | Consumer | | Finance Leases | | Unallocated | | Total | |
& industrial | Real Estate | family | 4 Family |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 950 | | $ | 7,857 | | $ | 609 | | $ | 411 | | $ | 6,490 | | $ | 53 | | $ | 126 | | $ | 1,224 | | $ | 17,720 | |
Charge-offs | | | -2 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | -2 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision | | | -297 | | | -1,433 | | | 512 | | | 82 | | | -1,779 | | | 29 | | | -83 | | | -1,224 | | | -4,193 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 651 | | $ | 6,424 | | $ | 1,121 | | $ | 493 | | $ | 4,711 | | $ | 82 | | $ | 43 | | $ | - | | $ | 13,525 | |
Ending balance: individually evaluated for impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 651 | | $ | 6,424 | | $ | 1,121 | | $ | 493 | | $ | 4,711 | | $ | 82 | | $ | 43 | | $ | - | | $ | 13,525 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 14,242 | | $ | 157,750 | | $ | 20,766 | | $ | 14,593 | | $ | 98,347 | | $ | 2,073 | | $ | 1,725 | | $ | - | | | 309,496 | |
Ending balance: individually evaluated for impairment | | $ | - | | $ | 17,597 | | $ | 9,730 | | $ | - | | $ | 8,152 | | $ | - | | $ | - | | $ | - | | $ | 35,479 | |
Ending balance: collectively evaluated for impairment | | $ | 14,242 | | $ | 140,153 | | $ | 11,036 | | $ | 14,593 | | $ | 90,195 | | $ | 2,073 | | $ | 1,725 | | $ | - | | | 274,017 | |
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Among the loans reviewed for impairment, $1.3 million and $2.4 million of residential loans and $7.9 million and $1.3 million of commercial real estate loans were identified as troubled debt restructurings ("TDRs") at September 30, 2013 and September 30, 2012, respectively. TDRs are the result of an economic concession being granted to borrowers experiencing financial difficulties. Certain TDRs are classified as nonperforming at the time of restructuring and may only return to performing status after considering the borrower's sustained repayment performance under the revised payment terms for a reasonable period, generally six months. We evaluated all of the impaired loans by analyzing the collateral value and by evaluating the discounted cash flow. Based on the nature of the modifications no impairment was required. |
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Allowance for Credit Losses and Recorded Investment in Loans |
For the Year Ended December 31, 2012 |
(In thousands) |
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| | Commercial | | Commercial | | Construction | | Multi | | Residential 1- | | Consumer | | Finance Leases | | Unallocated | | Total | |
& industrial | Real Estate | family | 4 Family |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for credit losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 950 | | $ | 7,857 | | $ | 609 | | $ | 411 | | $ | 6,490 | | $ | 53 | | $ | 126 | | $ | 1,224 | | $ | 17,720 | |
Charge-offs | | | -2 | | | - | | | - | | | - | | | -50 | | | - | | | - | | | - | | $ | -52 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Recoveries | | | 33 | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | 33 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Provision | | | 8 | | | -1,548 | | | 832 | | | -85 | | | -4,911 | | | -38 | | | -64 | | | -887 | | | -6,693 | |
Ending balance | | $ | 989 | | $ | 6,309 | | $ | 1,441 | | $ | 326 | | $ | 1,529 | | $ | 15 | | $ | 62 | | $ | 337 | | $ | 11,008 | |
Ending balance: individually evaluated for impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance: collectively evaluated for impairment | | $ | 989 | | $ | 6,309 | | $ | 1,441 | | $ | 326 | | $ | 1,529 | | $ | 15 | | $ | 62 | | $ | 337 | | $ | 11,008 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Financing Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 21,814 | | $ | 149,184 | | $ | 23,789 | | $ | 14,491 | | $ | 84,207 | | $ | 899 | | $ | 1,370 | | $ | - | | | 295,754 | |
Ending balance: individually evaluated for impairment | | $ | - | | $ | 1,277 | | | | | $ | - | | $ | 7,596 | | $ | 13 | | $ | - | | $ | - | | $ | 8,886 | |
Ending balance: collectively evaluated for impairment | | $ | 21,814 | | $ | 147,907 | | $ | 23,789 | | $ | 14,491 | | $ | 76,611 | | $ | 886 | | $ | 1,370 | | $ | - | | | 286,868 | |
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Among the loans reviewed for impairment, $2.4 million of residential loans and $1.3 million of commercial real estate loans were identified as troubled debt restructurings ("TDRs") at December 31, 2012. TDRs are the result of an economic concession being granted to borrowers experiencing financial difficulties. Certain TDRs are classified as nonperforming at the time of restructuring and may only return to performing status after considering the borrower's sustained repayment performance under the revised payment terms for a reasonable period, generally six months. We evaluated all of the impaired loans by analyzing the collateral value and by evaluating the discounted cash flow. Based on the nature of the modifications no impairment was required. |
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Age Analysis of Past Due Loans |
As of September 30, 2013 |
(In thousands) |
|
| | | | | | | | Greater | | | | | | | | | | | Loans | | | | | | | |
| | 30-59 Days | | 60-89 Days | | Than | | Total | | | | | Total | | 90 Days and | | | | | | | |
| | Past Due | | Past Due | | 90 Days | | Past Due | | Current | | Loans | | Accruing | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | $ | - | | $ | - | | $ | 10 | | $ | 10 | | $ | 21,853 | | $ | 21,863 | | $ | 10 | | | | | | | |
Commercial real estate construction | | | - | | | - | | | - | | | - | | | 25,891 | | | 25,891 | | | - | | | | | | | |
Commercial real estate - other | | | - | | | - | | | - | | | - | | | 157,909 | | | 157,909 | | | - | | | | | | | |
Consumer | | | - | | | - | | | - | | | - | | | 418 | | | 418 | | | - | | | | | | | |
Overdrafts | | | - | | | 5 | | | - | | | 5 | | | 113 | | | 118 | | | - | | | | | | | |
Residential - prime | | | | | | 5,427 | | | 890 | | | 6,317 | | | 71,964 | | | 78,281 | | | - | | | | | | | |
Residential - multi-family | | | - | | | - | | | - | | | - | | | 16,235 | | | 16,235 | | | - | | | | | | | |
Residential - construction | | | | | | | | | | | | | | | 3,570 | | | 3,570 | | | | | | | | | | |
Finance leases | | | - | | | - | | | - | | | - | | | 798 | | | 798 | | | - | | | | | | | |
Total | | $ | - | | $ | 5,432 | | $ | 900 | | $ | 6,332 | | $ | 298,751 | | $ | 305,083 | | $ | 10 | | | | | | | |
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Age Analysis of Past Due Loans |
As of December 31, 2012 |
(In thousands) |
|
| | | | | | | | Greater | | | | | | | | | | | Loans | | | | | | | |
| | 30-59 Days | | 60-89 Days | | Than | | Total | | | | | Total | | 90 Days and | | | | | | | |
| | Past Due | | Past Due | | 90 Days | | Past Due | | Current | | Loans | | Accruing | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | $ | - | | $ | - | | $ | - | | $ | - | | $ | 21,814 | | $ | 21,814 | | $ | - | | | | | | | |
Commercial real estate construction | | | - | | | - | | | - | | | - | | | 23,789 | | | 23,789 | | | - | | | | | | | |
Commercial real estate - other | | | 7,181 | | | - | | | - | | | 7,181 | | | 142,003 | | | 149,184 | | | - | | | | | | | |
Consumer | | | 50 | | | - | | | - | | | 50 | | | 665 | | | 715 | | | - | | | | | | | |
Overdrafts | | | - | | | - | | | - | | | - | | | 184 | | | 184 | | | - | | | | | | | |
Residential - prime | | | 6,081 | | | 373 | | | 861 | | | 7,315 | | | 76,892 | | | 84,207 | | | - | | | | | | | |
Residential - multi-family | | | - | | | - | | | - | | | - | | | 14,491 | | | 14,491 | | | - | | | | | | | |
Residential - construction | | | - | | | | | | | | | | | | | | | | | | | | | | | | | |
Finance leases | | | - | | | - | | | - | | | - | | | 1,370 | | | 1,370 | | | - | | | | | | | |
Total | | $ | 13,312 | | $ | 373 | | $ | 861 | | $ | 14,546 | | $ | 281,208 | | $ | 295,754 | | $ | - | | | | | | | |
|
Impaired Loans |
For the Three Months Ended September 30, 2013 |
(In thousands) |
|
| | | | | Unpaid | | | | | Average | | Interest | | Interest | | | | | | | | | | |
| | Recorded | | Principal | | Related | | Recorded | | Income | | Income | | | | | | | | | | |
| | Loan | | Balance | | Allowance | | Investment | | Recognized | | Foregone | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 7,950 | | $ | 7,950 | | $ | - | | $ | 7,971 | | $ | 108 | | $ | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential - prime | | | 6,752 | | | 6,752 | | | - | | | 6,755 | | | 42 | | | 12 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 14,702 | | $ | 14,702 | | $ | - | | $ | 14,726 | | $ | 150 | | $ | 12 | | | | | | | | | | |
Commercial | | | 7,950 | | | 7,950 | | | - | | | 7,971 | | | 108 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 6,752 | | | 6,752 | | | - | | | 6,755 | | | 42 | | | 12 | | | | | | | | | | |
|
Impaired Loans |
For the Three Months Ended September 30, 2012 |
(In thousands) |
|
| | | | | Unpaid | | | | | Average | | Interest | | Interest | | | | | | | | | | |
| | Recorded | | Principal | | Related | | Recorded | | Income | | Income | | | | | | | | | | |
| | Loan | | Balance | | Allowance | | Investment | | Recognized | | Foregone | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | $ | 9,730 | | $ | 9,730 | | $ | - | | $ | 9,740 | | $ | 112 | | $ | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 17,597 | | | 17,597 | | | - | | | 17,646 | | | 286 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential - prime | | | 8,152 | | | 8,152 | | | - | | | 8,162 | | | 73 | | | 8 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 35,479 | | $ | 35,479 | | $ | - | | $ | 35,548 | | $ | 471 | | $ | 8 | | | | | | | | | | |
Commercial | | | 27,327 | | | 27,327 | | | - | | | 27,386 | | | 398 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 8,152 | | | 8,152 | | | - | | | 8,162 | | | 73 | | | 8 | | | | | | | | | | |
|
|
Impaired Loans | | | | | | | | | |
For the Nine Months Ended September 30, 2013 | | | | | | | | | |
(In thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Unpaid | | | | | Average | | Interest | | Interest | | | | | | | | | | |
| | Recorded | | Principal | | Related | | Recorded | | Income | | Income | | | | | | | | | | |
| | Loan | | Balance | | Allowance | | Investment | | Recognized | | Foregone | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 7,950 | | $ | 7,950 | | $ | - | | $ | 8,022 | | $ | 325 | | $ | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential - prime | | | 6,752 | | | 6,752 | | | - | | | 6,792 | | | 261 | | | 20 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 14,702 | | $ | 14,702 | | $ | - | | $ | 14,814 | | $ | 586 | | $ | 20 | | | | | | | | | | |
Commercial | | | 7,950 | | | 7,950 | | | - | | | 8,022 | | | 325 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 6,752 | | | 6,752 | | | - | | | 6,792 | | | 261 | | | 20 | | | | | | | | | | |
|
Impaired Loans | | | | | | | | | |
For the Nine Months Ended September 30, 2012 | | | | | | | | | |
(In thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Unpaid | | | | | Average | | Interest | | Interest | | | | | | | | | | |
| | Recorded | | Principal | | Related | | Recorded | | Income | | Income | | | | | | | | | | |
| | Loan | | Balance | | Allowance | | Investment | | Recognized | | Foregone | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction | | $ | 9,730 | | $ | 9,730 | | $ | - | | $ | 9,770 | | $ | 448 | | $ | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | 17,597 | | | 17,597 | | | - | | | 17,765 | | | 863 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential - prime | | | 8,152 | | | 8,152 | | | - | | | 8,211 | | | 256 | | | 45 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 35,479 | | $ | 35,479 | | $ | - | | $ | 35,746 | | $ | 1,567 | | $ | 45 | | | | | | | | | | |
Commercial | | | 27,327 | | | 27,327 | | | - | | | 27,535 | | | 1,311 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 8,152 | | | 8,152 | | | - | | | 8,211 | | | 256 | | | 45 | | | | | | | | | | |
|
Impaired Loans | | | | | | | | | |
For the Year Ended December 31, 2012 | | | | | | | | | |
(In thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | Unpaid | | | | | Average | | Interest | | Interest | | | | | | | | | | |
| | Recorded | | Principal | | Related | | Recorded | | Income | | Income | | | | | | | | | | |
| | Loan | | Balance | | Allowance | | Investment | | Recognized | | Foregone | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 1,277 | | $ | 1,277 | | $ | - | | $ | 1,307 | | $ | 87 | | $ | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 13 | | | 13 | | | - | | | 15 | | | - | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential - prime | | | 7,596 | | | 7,596 | | | - | | | 7,640 | | | 355 | | | 6 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 8,886 | | $ | 8,886 | | $ | - | | $ | 8,962 | | $ | 442 | | $ | 6 | | | | | | | | | | |
Commercial | | | 1,277 | | | 1,277 | | | - | | | 1,307 | | | 87 | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | 13 | | | 13 | | | | | | 15 | | | - | | | - | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 7,596 | | | 7,596 | | | - | | | 7,640 | | | 355 | | | 6 | | | | | | | | | | |
|
The following table presents loans on nonaccrual status as of the dates indicated. All nonaccrual loans were classified as impaired. |
|
Loans on Nonaccrual Status |
As of |
|
| | September 30, | | December 31, | | | | | | | | | | | | | | | | | | | | | | |
| | 2013 | | 2012 | | | | | | | | | | | | | | | | | | | | | | |
| | (In thousands) | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | $ | - | | $ | - | | | | | | | | | | | | | | | | | | | | | | |
Construction | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Consumer | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Residential | | | 890 | | | 861 | | | | | | | | | | | | | | | | | | | | | | |
Residential - multi-family | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Finance leases | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 890 | | $ | 861 | | | | | | | | | | | | | | | | | | | | | | |
|
The Company utilizes a risk rating system for the loan portfolio. |
|
On a quarterly basis, or more often if needed, the Company formally reviews the ratings on all classified commercial and industrial, commercial real estate and construction loans. Quarterly, the Company engages an independent third-party to review a portion of loans within these segments. Management uses the results of these reviews as part of its periodic review process. |
|
Credit Exposure |
Credit Risk Profile by Internally Assigned Grades |
As of September 30, 2013 |
(In thousands) |
|
| | | Commercial & | | | Commercial Real | | | Commercial Real | | | | | | | | | | | | | | | | | | | |
industrial | Estate | Estate Other | | | | | | | | | | | | | | | | | | |
| Construction | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 18,212 | | $ | 19,861 | | $ | 134,741 | | | | | | | | | | | | | | | | | | | |
Watch | | | 1,550 | | | - | | | 3,159 | | | | | | | | | | | | | | | | | | | |
Special mention | | | 101 | | | - | | | 17,606 | | | | | | | | | | | | | | | | | | | |
Substandard | | | 2,000 | | | 9,600 | | | 2,403 | | | | | | | | | | | | | | | | | | | |
Total | | $ | 21,863 | | $ | 29,461 | | $ | 157,909 | | | | | | | | | | | | | | | | | | | |
|
| | Residential-Prime | | Residential-Multi | | Finance Leases | | | | | | | | | | | | | | | | | | | |
Family | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 70,866 | | $ | 16,235 | | $ | - | | | | | | | | | | | | | | | | | | | |
Watch | | | 570 | | | - | | | - | | | | | | | | | | | | | | | | | | | |
Special mention | | | 53 | | | - | | | 798 | | | | | | | | | | | | | | | | | | | |
Substandard | | | 6,792 | | | - | | | - | | | | | | | | | | | | | | | | | | | |
Total | | $ | 78,281 | | $ | 16,235 | | $ | 798 | | | | | | | | | | | | | | | | | | | |
|
| | Consumer- | | Consumer-Other | | | | | | | | | | | | | | | | | | | | | | |
Overdrafts | | | | | | | | | | | | | | | | | | | | | |
Performing | | $ | 118 | | $ | 418 | | | | | | | | | | | | | | | | | | | | | | |
Nonperforming | | | - | | | - | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 118 | | $ | 418 | | | | | | | | | | | | | | | | | | | | | | |
|
Credit Exposure |
Credit Risk Profile by Internally Assigned Grades |
As of December 31, 2012 |
(In thousands) |
|
| | Commercial | | Commercial Real | | Commercial | | | | | | | | | | | | | | | | | | | |
& | Estate Construction | Real Estate Other | | | | | | | | | | | | | | | | | | |
Industrial | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 21,679 | | $ | 23,789 | | $ | 115,547 | | | | | | | | | | | | | | | | | | | |
Watch | | | — | | | — | | | 8,226 | | | | | | | | | | | | | | | | | | | |
Special Mention | | | — | | | — | | | 5,970 | | | | | | | | | | | | | | | | | | | |
Substandard | | | 135 | | | — | | | 19,441 | | | | | | | | | | | | | | | | | | | |
Total | | $ | 21,814 | | $ | 23,789 | | $ | 149,184 | | | | | | | | | | | | | | | | | | | |
|
| | Residential | | Multi Family | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 76,097 | | $ | 14,491 | | | | | | | | | | | | | | | | | | | | | | |
Watch | | | 716 | | | — | | | | | | | | | | | | | | | | | | | | | | |
Special Mention | | | 1,086 | | | — | | | | | | | | | | | | | | | | | | | | | | |
Substandard | | | 6,308 | | | — | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 84,207 | | $ | 14,491 | | | | | | | | | | | | | | | | | | | | | | |
|
| | Consumer | | Consumer | | Finance | | | | | | | | | | | | | | | | | | | |
Overdrafts | Other | Leases | | | | | | | | | | | | | | | | | | |
Performing | | $ | 184 | | $ | 715 | | $ | 1,370 | | | | | | | | | | | | | | | | | | | |
Nonperforming | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
Total | | $ | 184 | | $ | 715 | | $ | 1,370 | | | | | | | | | | | | | | | | | | | |
|
The following table presents the number and recorded balance of TDRs. The Company had no outstanding commitments to extend credit on TDRs at September 30, 2013 or December 31, 2012. |
|
| | As of September 30, 2013 | | | | | | | | | | | | | | | |
| | | | Pre-Modification | | Post-Modification | | Non-accrual Status | | | | | | | | | | | | | | | |
| | Number of | | Recorded | | Recorded | | Number of | | Recorded | | | | | | | | | | | | | | | |
| | Loans | | Balance | | Balance | | Loans | | Balance | | | | | | | | | | | | | | | |
Commercial real estate | | 6 | | | 8,897 | | | 7,950 | | — | | | — | | | | | | | | | | | | | | | |
One -to-four family - residential | | 6 | | | 559 | | | 1,344 | | 2 | | | 799 | | | | | | | | | | | | | | | |
Total | | 12 | | $ | 9,456 | | $ | 9,294 | | 2 | | $ | 799 | | | | | | | | | | | | | | | |
|
| | As of December 31, 2012 | | | | | | | | | | | | | | | |
| | | | Pre-Modification | | Post-Modification | | Non-accrual Status | | | | | | | | | | | | | | | |
| | Number of | | Recorded | | Recorded | | Number of | | Recorded | | | | | | | | | | | | | | | |
| | Loans | | Balance | | Balance | | Loans | | Balance | | | | | | | | | | | | | | | |
Commercial real estate | | 4 | | | 1,354 | | | 1,276 | | — | | | — | | | | | | | | | | | | | | | |
One -to-four family - residential | | 6 | | | 2,177 | | | 2,101 | | 1 | | | 434 | | | | | | | | | | | | | | | |
Total | | 10 | | $ | 3,531 | | $ | 3,377 | | 1 | | $ | 434 | | | | | | | | | | | | | | | |
|
The following tables present newly classified TDRs by type of modification during the periods indicated: |
|
| | Interest | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Rate | | Term | | Combination | | Total | | | | | | | | | | | | | | | | |
Three months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 2,562 | | | — | | $ | 4,136 | | $ | 6,698 | | | | | | | | | | | | | | | | |
One -to-four family - residential | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | |
Total | | $ | 2,562 | | $ | 0 | | $ | 4,136 | | $ | 6,698 | | | | | | | | | | | | | | | | |
|
There were no newly classified TDR's for the three month period ended September 30, 2012. |
|
Nine months ended September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | $ | 2,562 | | | — | | $ | 4,136 | | $ | 6,698 | | | | | | | | | | | | | | | | |
One -to-four family - residential | | | 343 | | | — | | | — | | | 343 | | | | | | | | | | | | | | | | |
Total | | $ | 2,905 | | | — | | $ | 4,136 | | $ | 7,041 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nine months ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate | | | — | | $ | 11 | | | — | | $ | 11 | | | | | | | | | | | | | | | | |
One -to-four family - residential | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | |
Total | | | — | | $ | 11 | | | — | | $ | 11 | | | | | | | | | | | | | | | | |
|
There were no TDRs that subsequently defaulted during the three month periods and the nine month periods ended September 30, 2013 and September 30, 2012, respectively. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |