Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 25, 2013 | Jun. 30, 2012 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | UNITED BANCORP INC /MI/ | ||
Entity Central Index Key | 775345 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $41,811,000 | ||
Entity Common Stock, Shares Outstanding | 12,715,490 | ||
Document Fiscal Year Focus | 2013 | ||
Document Fiscal Period Focus | Q3 | ||
Document Type | 10-Q | ||
Amendment Flag | FALSE | ||
Document Period End Date | 30-Sep-13 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and demand balances in other banks | $23,514 | $13,769 |
Interest bearing balances with banks | 8,267 | 56,843 |
Total cash and cash equivalents | 31,781 | 70,612 |
Securities available for sale | 204,827 | 206,129 |
FHLB Stock | 2,691 | 2,571 |
Loans held for sale | 8,388 | 13,380 |
Portfolio loans | 643,151 | 586,678 |
Less allowance for loan losses | 21,963 | 22,543 |
Net portfolio loans | 621,188 | 564,135 |
Premises and equipment, net | 10,379 | 10,719 |
Bank-owned life insurance | 14,540 | 14,241 |
Accrued interest receivable and other assets | 25,038 | 25,954 |
Total Assets | 918,832 | 907,741 |
Deposits | ||
Noninterest bearing deposits | 160,225 | 165,430 |
Interest bearing deposits | 645,515 | 619,213 |
Total deposits | 805,740 | 784,643 |
FHLB advances payable | 11,983 | 21,999 |
Other borrowings | 6,000 | 0 |
Accrued interest payable and other liabilities | 4,472 | 3,702 |
Total Liabilities | 828,195 | 810,344 |
Commitments and Contingent Liabilities | ||
Shareholders' Equity | ||
Preferred stock, no par value; 2,000,000 shares authorized, 10,300 and 20,600 shares outstanding, respectively; liquidation preference $1,000 per share | 10,282 | 20,476 |
Common stock and paid in capital, no par value; 30,000,000 shares authorized; 12,715,490, and 12,705,983 shares issued and outstanding, respectively | 85,830 | 85,682 |
Accumulated deficit | -5,063 | -10,426 |
Accumulated other comprehensive income (loss), net of tax | -412 | 1,665 |
Total Shareholders' Equity | 90,637 | 97,397 |
Total Liabilities and Shareholders' Equity | $918,832 | $907,741 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Shareholders' Equity | ||
Preferred stock, no par value (in dollars per share) | $0 | $0 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 10,300 | 20,600 |
Preferred stock, liquidation preference (in dollars per share) | $1,000 | $1,000 |
Common stock, no par value (in dollars per share) | $0 | $0 |
Common stock, shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in shares) | 12,715,490 | 12,705,983 |
Common stock, outstanding (in shares) | 12,715,490 | 12,705,983 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income | ||||
Interest and fees on loans | $7,723 | $7,917 | $22,920 | $23,695 |
Interest on securities | ||||
Taxable | 770 | 618 | 1,951 | 1,988 |
Tax exempt | 163 | 160 | 475 | 506 |
Interest on federal funds sold and balances with banks | 19 | 36 | 84 | 133 |
Total interest income | 8,675 | 8,731 | 25,430 | 26,322 |
Interest Expense | ||||
Interest on deposits | 618 | 895 | 2,033 | 2,936 |
Interest on FHLB advances | 72 | 190 | 300 | 605 |
Interest on other borrowings | 4 | 0 | 4 | 0 |
Total interest expense | 694 | 1,085 | 2,337 | 3,541 |
Net Interest Income | 7,981 | 7,646 | 23,093 | 22,781 |
Net provision after amounts related to change in allocation methodology | 300 | 2,000 | 1,900 | 6,650 |
Net Interest Income after Provision for Loan Losses | 7,681 | 5,646 | 21,193 | 16,131 |
Noninterest Income | ||||
Service charges on deposit accounts | 473 | 496 | 1,369 | 1,378 |
Wealth Management fee income | 1,465 | 1,319 | 4,356 | 3,855 |
Gains on securities transactions | 1 | 0 | 40 | 4 |
Income from loan sales and servicing | 2,252 | 2,803 | 8,071 | 7,299 |
ATM, debit and credit card fee income | 580 | 517 | 1,637 | 1,583 |
Income from bank-owned life insurance | 101 | 106 | 300 | 316 |
Other income | 243 | 323 | 913 | 1,165 |
Total noninterest income | 5,115 | 5,564 | 16,686 | 15,600 |
Noninterest Expense | ||||
Salaries and employee benefits | 5,884 | 5,464 | 17,984 | 15,686 |
Occupancy and equipment expense, net | 1,350 | 1,350 | 4,055 | 3,988 |
External data processing | 352 | 250 | 1,077 | 764 |
Advertising and marketing | 304 | 190 | 860 | 567 |
Attorney, accounting and other professional fees | 334 | 416 | 1,094 | 1,654 |
Director fees | 105 | 98 | 314 | 293 |
Expenses relating to ORE property and foreclosed assets | 158 | 417 | 585 | 1,533 |
FDIC insurance premiums | 189 | 292 | 565 | 883 |
Other expenses | 856 | 823 | 2,358 | 2,249 |
Total noninterest expense | 9,532 | 9,300 | 28,892 | 27,617 |
Income Before Federal Income Tax | 3,264 | 1,910 | 8,987 | 4,114 |
Federal income tax | 988 | 520 | 2,682 | 1,097 |
Net Income | 2,276 | 1,390 | 6,305 | 3,017 |
Preferred stock dividends and amortization | -305 | -285 | -879 | -856 |
Income Available to Common Shareholders | $1,971 | $1,105 | $5,426 | $2,161 |
Basic and diluted earnings per share (in dollars per share) | $0.15 | $0.09 | $0.42 | $0.17 |
Cash dividends declared per share of common stock (in dollars per share) | $0 | $0 | $0 | $0 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements Of Comprehensive Income Loss [Abstract] | ||||
Net income | $2,276 | $1,390 | $6,305 | $3,017 |
Unrealized gains/losses on securities [Abstract] | ||||
Unrealized gains (losses) on securities available for sale | 791 | 872 | -3,107 | 1,076 |
Less: Reclassification for realized amount included in income | -1 | 0 | -40 | -4 |
Other comprehensive income (loss) before tax effect | 790 | 872 | -3,147 | 1,072 |
Tax expenses (benefit) | 269 | 296 | -1,070 | 364 |
Other comprehensive income (loss) | 521 | 576 | -2,077 | 708 |
Total comprehensive income | $2,797 | $1,966 | $4,228 | $3,725 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Total Shareholders' Equity | ||||
Balance at beginning of period | $98,402 | $95,113 | $97,397 | $93,774 |
Net income | 2,276 | 1,390 | 6,305 | 3,017 |
Other comprehensive income (loss) | 521 | 576 | -2,077 | 708 |
Redemption of preferred shares | -10,300 | 0 | -10,300 | 0 |
Cash dividends paid on preferred shares | -322 | -258 | -836 | -772 |
Other common stock transactions | 60 | 15 | 148 | 109 |
Balance at end of period | $90,637 | $96,836 | $90,637 | $96,836 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities | ||
Net income | $6,305 | $3,017 |
Adjustments to Reconcile Net Income to Net Cash from Operating Activities | ||
Depreciation and amortization | 4,286 | 4,070 |
Net provision after amounts related to change in allocation methodology | 1,900 | 6,650 |
Gain on sale of loans | -7,331 | -6,945 |
Proceeds from sales of loans originated for sale | 270,399 | 271,598 |
Loans originated for sale | -258,076 | -268,129 |
Gains on securities transactions | -40 | -4 |
Change in deferred income taxes | 1,406 | 737 |
Stock based compensation expense | 188 | 112 |
Increase in cash surrender value of bank-owned life insurance | -300 | -316 |
Change in investment in limited partnership | -309 | -224 |
Change in accrued interest receivable and other assets | 991 | 3,332 |
Change in accrued interest payable and other liabilities | 859 | 1,791 |
Net cash from operating activities | 20,278 | 15,689 |
Securities available for sale | ||
Purchases | -72,828 | -80,231 |
Sales | 11,752 | 2,847 |
Maturities and calls | 19,633 | 25,870 |
Principal payments | 36,339 | 24,601 |
Purchase of FHLB stock | -120 | 0 |
Net change in portfolio loans | -59,419 | -35,464 |
Premises and equipment expenditures | -470 | -769 |
Net cash from investing activities | -65,113 | -63,146 |
Cash Flows from Financing Activities | ||
Net change in deposits | 21,097 | 11,169 |
Net change in other borrowings | 6,000 | 0 |
Principal payments on FHLB advances | -10,016 | -2,276 |
Redemption of preferred shares | -10,300 | 0 |
Other common stock transactions | 59 | 20 |
Cash dividends paid on preferred shares | -836 | -772 |
Net cash from financing activities | 6,004 | 8,141 |
Net change in cash and cash equivalents | -38,831 | -39,316 |
Cash and cash equivalents at beginning of year | 70,612 | 107,592 |
Cash and cash equivalents at end of period | 31,781 | 68,276 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest paid | 2,410 | 3,629 |
Loans transferred to other real estate | 466 | 2,535 |
Income taxes paid | $610 | $0 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation |
The unaudited condensed consolidated financial statements of United Bancorp, Inc. (the "Company" or "United") have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) believed necessary for a fair presentation have been included. The condensed consolidated balance sheet of the Company as of December 31, 2012 has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and related footnotes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012. |
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||
Securities | Note 2 - Securities | ||||||||||||||||||||||||
Securities classified as available for sale consist of bonds and notes that might be sold prior to maturity. Securities classified as available for sale are reported at their fair values and the related net unrealized holding gain or loss is reported in other comprehensive income. Premiums and discounts on securities are recognized in interest income using the interest method over the period to maturity. Realized gains or losses are based upon the amortized cost of the specific securities sold. | |||||||||||||||||||||||||
Balances of securities by category are shown below at September 30, 2013 and December 31, 2012. All securities are classified as available for sale. | |||||||||||||||||||||||||
At September 30, 2013, in thousands of dollars | Amortized | Unrealized | Unrealized Losses | Fair Value | |||||||||||||||||||||
Cost | Gains | ||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 26,556 | $ | 34 | $ | (823 | ) | $ | 25,767 | ||||||||||||||||
Mortgage-backed agency securities | 154,205 | 1,407 | (1,369 | ) | 154,243 | ||||||||||||||||||||
Obligations of states and political subdivisions | 24,664 | 468 | (342 | ) | 24,790 | ||||||||||||||||||||
Equity securities | 26 | 1 | - | 27 | |||||||||||||||||||||
Total | $ | 205,451 | $ | 1,910 | $ | (2,534 | ) | $ | 204,827 | ||||||||||||||||
At December 31, 2012, in thousands of dollars | |||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 27,200 | $ | 130 | $ | (14 | ) | $ | 27,316 | ||||||||||||||||
Mortgage-backed agency securities | 158,829 | 2,324 | (654 | ) | 160,499 | ||||||||||||||||||||
Obligations of states and political subdivisions | 17,551 | 740 | (5 | ) | 18,286 | ||||||||||||||||||||
Equity securities | 26 | 2 | - | 28 | |||||||||||||||||||||
Total | $ | 203,606 | $ | 3,196 | $ | (673 | ) | $ | 206,129 | ||||||||||||||||
The following tables show fair value and the gross unrealized losses of the Company's investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||
At September 30, 2013 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In thousands of dollars | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
U.S. Treasury and agency securities | $ | 18,643 | $ | (823 | ) | $ | - | $ | - | $ | 18,643 | $ | (823 | ) | |||||||||||
Mortgage-backed agency securities | 84,078 | (1,305 | ) | 3,084 | (64 | ) | 87,162 | (1,369 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 8,535 | (342 | ) | - | - | 8,535 | (342 | ) | |||||||||||||||||
Total | $ | 111,256 | $ | (2,470 | ) | $ | 3,084 | $ | (64 | ) | $ | 114,340 | $ | (2,534 | ) | ||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
In thousands of dollars | |||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 4,131 | $ | (14 | ) | $ | - | $ | - | $ | 4,131 | $ | (14 | ) | |||||||||||
Mortgage-backed agency securities | 54,538 | (639 | ) | 1,309 | (15 | ) | 55,847 | (654 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 941 | (5 | ) | - | - | 941 | (5 | ) | |||||||||||||||||
Total | $ | 59,610 | $ | (658 | ) | $ | 1,309 | $ | (15 | ) | $ | 60,919 | $ | (673 | ) | ||||||||||
Unrealized losses within the investment portfolio are temporary. The Company performed an evaluation of its investments for other than temporary impairment, and no losses were recognized during the first nine months of 2013 or 2012. The unrealized losses on the Company's investment in available for sale securities were caused by interest rate changes. All of the Company's mortgage-backed securities are issued by U.S. Government-sponsored agencies. The Company owns no obligations issued by the City of Detroit. The Company expects to recover the amortized cost basis over the term of the securities. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company did not consider those investments to be other-than-temporarily impaired at September 30, 2013 or December 31, 2012. | |||||||||||||||||||||||||
The entire investment portfolio is classified as available for sale. However, management has no specific intent to sell any securities, and management believes that it is likely the Company will not have to sell any security before recovery of its cost basis. | |||||||||||||||||||||||||
Sales activity for securities for the three and nine month periods ended September 30, 2013 and 2012 is shown in the following table. All sales were of securities identified as available for sale. | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
In thousands of dollars | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Sales proceeds | $ | - | $ | - | $ | 11,752 | $ | 2,847 | |||||||||||||||||
Gross gains on sales | - | - | 136 | 30 | |||||||||||||||||||||
Gross loss on sales | - | - | (97 | ) | (26 | ) | |||||||||||||||||||
Gross gains on calls | 1 | - | 1 | - | |||||||||||||||||||||
The amortized cost and fair value of securities available for sale by contractual maturity as of September 30, 2013 is shown below. 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 | |||||||||||||||||||||||||
In thousands of dollars | Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 16,821 | $ | 16,892 | |||||||||||||||||||||
Due after one year through five years | 28,480 | 28,006 | |||||||||||||||||||||||
Due after five years through ten years | 5,919 | 5,659 | |||||||||||||||||||||||
Due after ten years | - | - | |||||||||||||||||||||||
Mortgage-backed agency securities | 154,205 | 154,243 | |||||||||||||||||||||||
Equity securities | 26 | 27 | |||||||||||||||||||||||
Total securities | $ | 205,451 | $ | 204,827 | |||||||||||||||||||||
Securities carried at $1.0 million as of September 30, 2013 were pledged to secure deposits of public funds, funds borrowed, repurchase agreements, and for other purposes as required by law. | |||||||||||||||||||||||||
The municipal portfolio contains a small level of geographic risk, as approximately 1.3% of the investment portfolio is issued by political subdivisions located within Lenawee County, Michigan, 1.1% in Monroe County, Michigan and 3.5% in Washtenaw County, Michigan. The total fair value of municipal obligations issued by political subdivisions located in these three counties is approximately $12.1 million. |
Loans
Loans | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Loans [Abstract] | |||||||||||||||||
Loans | Note 3 – Loans | ||||||||||||||||
The following table shows the balances of the various categories of loans of the Company, and the percentage composition of the portfolio by class at September 30, 2013 and December 31, 2012. | |||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
In thousands of dollars | Balance | % of total | Balance | % of total | |||||||||||||
Commercial construction & land development | $ | 18,528 | 2.9 | % | $ | 28,511 | 4.9 | % | |||||||||
Owner-occupied commercial real estate loans | 109,144 | 17 | % | 97,755 | 16.7 | % | |||||||||||
Other commercial real estate loans | 140,686 | 21.9 | % | 113,370 | 19.3 | % | |||||||||||
Commercial & industrial loans | 104,133 | 16.2 | % | 104,332 | 17.8 | % | |||||||||||
Residential mortgages | 133,905 | 20.8 | % | 121,393 | 20.6 | % | |||||||||||
Consumer construction | 13,709 | 2.1 | % | 12,123 | 2.1 | % | |||||||||||
Home equity loans | 79,898 | 12.4 | % | 72,983 | 12.4 | % | |||||||||||
Other consumer loans | 38,797 | 6 | % | 33,969 | 5.8 | % | |||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | 0.7 | % | 2,242 | 0.4 | % | |||||||||||
Total portfolio loans | $ | 643,151 | 100 | % | $ | 586,678 | 100 | % |
Allowance_for_Loan_Losses_and_
Allowance for Loan Losses and Credit Risk | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Credit Risk [Abstract] | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Credit Risk | Note 4 – Allowance for Loan Losses and Credit Risk | ||||||||||||||||||||||||||||||||
The allowance for loan losses ("allowance") is maintained at a level believed adequate by management to absorb probable incurred credit losses in the loan portfolio. The allowance is increased by provisions for loan losses charged to income. Loan losses are charged against the allowance when management believes a loan is uncollectible. Subsequent recoveries, if any, are credited to the allowance. This policy applies to each of the Company's loan portfolio segments. | |||||||||||||||||||||||||||||||||
The Company's established methodology for evaluating the adequacy of the allowance for loan losses considers both components of the allowance: (1) specific allowances allocated to loans evaluated individually for impairment under the Accounting Standards Codification ("ASC") Section 310-10-35 of the Financial Accounting Standards Board ("FASB"), and (2) allowances calculated for pools of loans evaluated collectively for impairment under FASB ASC Subtopic 450-20. | |||||||||||||||||||||||||||||||||
The Company's past loan loss experience is determined by analyzing pools of loans based on internal credit risk ratings for commercial loans (construction & land development, owner-occupied commercial real estate, other commercial real estate and all other commercial and industrial loans), and by delinquency status for residential mortgages, consumer loans and all other loan types, based on a migration analysis that is performed quarterly. The quarterly migration analysis is based on activity for the period beginning March 2008. The analysis computes loss rates based on a probability of default ("PD") and loss given default ("LGD"). The March 2008 date was selected in an effort to capture sufficient data points to provide a meaningful migration analysis using available data in comparable formats. | |||||||||||||||||||||||||||||||||
Loss rates are adjusted to consider qualitative factors such as economic conditions and trends, among others. In addition, the Company applies a detailed analysis of qualitative factors that are assessed on a quarterly basis based upon ratios specific to the Company, as well as regional economic metrics. | |||||||||||||||||||||||||||||||||
Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the present value of estimated future cash flows using the loan's existing rate, or the fair value of collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations require an increase in the allowance for loan losses, that increase is recorded as a component of the provision for loan losses. Loans are evaluated for impairment when payments are delayed or when the internal grading system indicates a substandard or doubtful classification. This policy applies to each class of the Company's loan portfolio. | |||||||||||||||||||||||||||||||||
Impairment is evaluated in total for smaller-balance loans of similar nature, such as residential mortgage, consumer, home equity and second mortgage loans. Commercial loans and mortgage loans secured by other properties are evaluated individually for impairment. When credit analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower's business are not adequate to meet its debt service requirements, including loans to the borrower by United Bank & Trust (the "Bank"), the loan is evaluated for impairment. Often this is associated with a delay or shortfall of payments of thirty days or more. | |||||||||||||||||||||||||||||||||
Loans are generally moved to nonaccrual status when ninety days or more past due, or in bankruptcy. These loans are often also considered impaired. Impaired loans are charged off, in part or in full, when deemed uncollectible. This typically occurs when the loan is 120 or more days past due, unless the loan is both well-secured and in the process of collection. This policy applies to each class of the Company's loan portfolio. | |||||||||||||||||||||||||||||||||
An analysis of the allowance for loan losses for the three and nine month periods ended September 30, 2013 and 2012 and balances as of December 31, 2012 follows: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, June 30 | $ | 2,925 | $ | 4,509 | $ | 5,445 | $ | 4,482 | $ | 2,456 | $ | 2,184 | $ | 22,001 | |||||||||||||||||||
Provision charged to expense | (163 | ) | 1 | (26 | ) | 414 | (12 | ) | 86 | 300 | |||||||||||||||||||||||
Losses charged off | (8 | ) | (92 | ) | (35 | ) | (367 | ) | (77 | ) | (89 | ) | (668 | ) | |||||||||||||||||||
Recoveries | 244 | 8 | 3 | 8 | 1 | 66 | 330 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 2,998 | $ | 4,426 | $ | 5,387 | $ | 4,537 | $ | 2,368 | $ | 2,247 | $ | 21,963 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 4,216 | $ | 5,093 | $ | 4,708 | $ | 4,131 | $ | 2,456 | $ | 1,939 | $ | 22,543 | |||||||||||||||||||
Provision charged to expense | (1,414 | ) | 808 | 559 | 1,415 | 55 | 477 | 1,900 | |||||||||||||||||||||||||
Losses charged off | (808 | ) | (1,830 | ) | (73 | ) | (1,118 | ) | (200 | ) | (479 | ) | (4,508 | ) | |||||||||||||||||||
Recoveries | 1,004 | 355 | 193 | 109 | 57 | 310 | 2,028 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 2,998 | $ | 4,426 | $ | 5,387 | $ | 4,537 | $ | 2,368 | $ | 2,247 | $ | 21,963 | |||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,134 | $ | 1,874 | $ | 1,088 | $ | 781 | $ | 719 | $ | - | $ | 6,596 | |||||||||||||||||||
Collectively evaluated for impairment | $ | 864 | $ | 2,552 | $ | 4,299 | $ | 3,756 | $ | 1,649 | $ | 2,247 | $ | 15,367 | |||||||||||||||||||
Total Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 32,237 | $ | 110,417 | $ | 164,457 | $ | 104,231 | $ | 106,723 | $ | 125,086 | $ | 643,151 | |||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,812 | $ | 4,261 | $ | 7,914 | $ | 3,528 | $ | 4,560 | $ | 345 | $ | 25,420 | |||||||||||||||||||
Collectively evaluated for impairment | $ | 27,425 | $ | 106,156 | $ | 156,543 | $ | 100,703 | $ | 102,163 | $ | 124,741 | $ | 617,731 | |||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, June 30, 2012 | $ | 4,587 | $ | 4,778 | $ | 4,845 | $ | 4,355 | $ | 1,808 | $ | 1,724 | $ | 22,097 | |||||||||||||||||||
Provision charged to expense | 496 | 1,007 | 97 | 202 | 206 | (8 | ) | 2,000 | |||||||||||||||||||||||||
Losses charged off | (110 | ) | (1,009 | ) | (239 | ) | (719 | ) | (216 | ) | (87 | ) | (2,380 | ) | |||||||||||||||||||
Recoveries | 80 | 5 | 174 | 335 | 80 | 69 | 743 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 5,053 | $ | 4,781 | $ | 4,877 | $ | 4,173 | $ | 1,878 | $ | 1,698 | $ | 22,460 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Thousands of dollars | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 3,676 | $ | 3,875 | $ | 4,721 | $ | 4,741 | $ | 1,931 | $ | 1,689 | $ | 20,633 | |||||||||||||||||||
Provision charged to expense | 1,945 | 1,942 | 1,940 | 11 | 659 | 153 | 6,650 | ||||||||||||||||||||||||||
Losses charged off | (868 | ) | (1,067 | ) | (2,056 | ) | (1,419 | ) | (855 | ) | (578 | ) | (6,843 | ) | |||||||||||||||||||
Recoveries | 300 | 31 | 272 | 840 | 143 | 434 | 2,020 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 5,053 | $ | 4,781 | $ | 4,877 | $ | 4,173 | $ | 1,878 | $ | 1,698 | $ | 22,460 | |||||||||||||||||||
Balances at December 31, 2012 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,271 | $ | 2,904 | $ | 1,079 | $ | 274 | $ | 771 | $ | 5 | $ | 8,304 | |||||||||||||||||||
Collectively evaluated for impairment | 945 | 2,189 | 3,629 | 3,857 | 1,685 | 1,934 | 14,239 | ||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 4,216 | $ | 5,093 | $ | 4,708 | $ | 4,131 | $ | 2,456 | $ | 1,939 | $ | 22,543 | |||||||||||||||||||
Total Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,224 | $ | 10,263 | $ | 7,797 | $ | 2,049 | $ | 5,561 | $ | 394 | $ | 34,288 | |||||||||||||||||||
Collectively evaluated for impairment | 32,410 | 92,316 | 123,207 | 96,336 | 96,095 | 112,026 | 552,390 | ||||||||||||||||||||||||||
Total Loans | $ | 40,634 | $ | 102,579 | $ | 131,004 | $ | 98,385 | $ | 101,656 | $ | 112,420 | $ | 586,678 | |||||||||||||||||||
(1) Construction and Land Development loans | |||||||||||||||||||||||||||||||||
(2) Commercial Real Estate loans | |||||||||||||||||||||||||||||||||
Credit Exposure and Quality Indicators | |||||||||||||||||||||||||||||||||
The Company categorizes commercial and tax-exempt loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as current financial information, management capacity, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed during the loan approval process and is updated as circumstances warrant. | |||||||||||||||||||||||||||||||||
The risk characteristics of each loan portfolio segment are as follows: | |||||||||||||||||||||||||||||||||
Construction and Land Development. Construction and Land Development ("CLD") loans are underwritten utilizing feasibility studies, independent appraisal reviews, sensitivity analysis of absorption and lease rates and financial analysis of the developers and property owners. CLD loans are generally based on estimates of costs and value associated with the complete project. These estimates may be inaccurate. CLD loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. | |||||||||||||||||||||||||||||||||
Commercial Real Estate. Commercial Real Estate ("CRE") consists of two segments – owner-occupied real estate loans and other commercial real estate loans. CRE loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company's commercial real estate portfolio are diverse, but have geographic location almost entirely in the Company's market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. | |||||||||||||||||||||||||||||||||
Commercial & Industrial Loans. Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. | |||||||||||||||||||||||||||||||||
Consumer. Consumer loans consist of two segments – residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and personal loans are secured by personal assets, such as automobiles or recreational vehicles. Some personal loans are unsecured, such as small installment loans and certain lines of credit. | |||||||||||||||||||||||||||||||||
Repayment of consumer loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. | |||||||||||||||||||||||||||||||||
Internal Risk Categories | |||||||||||||||||||||||||||||||||
Commercial and tax-exempt loans that are analyzed individually are assigned one of eight internal risk categories. Categories 1-4 are considered to be Pass-rated loans. Other risk category definitions for individually-analyzed commercial and tax-exempt loans are as follows: | |||||||||||||||||||||||||||||||||
5 | Special Mention. Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date. | ||||||||||||||||||||||||||||||||
6 | Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral securing the loans, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||||||||||
7 | Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the additional characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. | ||||||||||||||||||||||||||||||||
8 | Loss. Loans classified as loss are regarded as uncollectible and should be charged off. | ||||||||||||||||||||||||||||||||
Consumer loans are not rated on the above-listed risk categories, but are classified by their payment activity, either as performing, accruing restructured, delinquent less than 90 days, or nonperforming. | |||||||||||||||||||||||||||||||||
Quality indicators for portfolio loans as of September 30, 2013 and December 31, 2012 based on the Bank's internal risk categories are detailed in the following tables. | |||||||||||||||||||||||||||||||||
In thousands of dollars | At September 30, 2013 | ||||||||||||||||||||||||||||||||
Commercial & Tax-exempt Loans | CLD | Owner-Occupied CRE | Other CRE | Commercial & Industrial | Total Commercial | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Rating | |||||||||||||||||||||||||||||||||
1-4 | Pass | $ | 7,930 | $ | 96,748 | $ | 118,953 | $ | 91,616 | $ | 315,247 | ||||||||||||||||||||||
5 | Special Mention | 5,110 | 6,600 | 13,671 | 5,627 | 31,008 | |||||||||||||||||||||||||||
6 | Substandard | 5,008 | 5,796 | 8,062 | 6,855 | 25,721 | |||||||||||||||||||||||||||
7 | Doubtful | 480 | - | - | 35 | 515 | |||||||||||||||||||||||||||
8 | Loss | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial & Tax-exempt Loans | $ | 18,528 | $ | 109,144 | $ | 140,686 | $ | 104,133 | $ | 372,491 | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||||||
Consumer Loans | Residential Mortgage | Consumer Construction | Home Equity | Other Consumer | Total Consumer | ||||||||||||||||||||||||||||
Credit risk profile based on payment activity | |||||||||||||||||||||||||||||||||
Performing | $ | 128,144 | $ | 13,709 | $ | 79,611 | $ | 38,546 | $ | 260,010 | |||||||||||||||||||||||
Accruing restructured | 3,748 | - | 170 | - | 3,918 | ||||||||||||||||||||||||||||
Delinquent less than 90 days | 1,079 | - | - | 192 | 1,271 | ||||||||||||||||||||||||||||
Nonperforming | 934 | - | 117 | 59 | 1,110 | ||||||||||||||||||||||||||||
Total Consumer Loans | $ | 133,905 | $ | 13,709 | $ | 79,898 | $ | 38,797 | 266,309 | ||||||||||||||||||||||||
Subtotal Commercial, Tax-exempt & Consumer Loans | 638,800 | ||||||||||||||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 643,151 | |||||||||||||||||||||||||||||||
In thousands of dollars | At December 31, 2012 | ||||||||||||||||||||||||||||||||
Commercial & Tax-exempt Loans | CLD | Owner-Occupied CRE | Other CRE | Commercial & Industrial | Total Commercial | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Rating | |||||||||||||||||||||||||||||||||
1-4 | Pass | $ | 12,813 | $ | 78,507 | $ | 86,445 | $ | 91,711 | $ | 269,476 | ||||||||||||||||||||||
5 | Special Mention | 7,378 | 11,510 | 17,073 | 5,104 | 41,065 | |||||||||||||||||||||||||||
6 | Substandard | 7,840 | 7,738 | 9,852 | 7,475 | 32,905 | |||||||||||||||||||||||||||
7 | Doubtful | 480 | - | - | 42 | 522 | |||||||||||||||||||||||||||
8 | Loss | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial & Tax-exempt Loans | $ | 28,511 | $ | 97,755 | $ | 113,370 | $ | 104,332 | $ | 343,968 | |||||||||||||||||||||||
Consumer Loans | Residential Mortgage | Consumer Construction | Home Equity | Other Consumer | Total Consumer | ||||||||||||||||||||||||||||
Credit risk profile based on payment activity | |||||||||||||||||||||||||||||||||
Performing | $ | 114,071 | $ | 12,123 | $ | 72,344 | $ | 33,764 | $ | 232,302 | |||||||||||||||||||||||
Accruing restructured | 3,267 | - | 171 | - | 3,438 | ||||||||||||||||||||||||||||
Delinquent less than 90 days | 1,714 | - | 343 | 150 | 2,207 | ||||||||||||||||||||||||||||
Nonperforming | 2,341 | - | 125 | 55 | 2,521 | ||||||||||||||||||||||||||||
Total Consumer Loans | $ | 121,393 | $ | 12,123 | $ | 72,983 | $ | 33,969 | 240,468 | ||||||||||||||||||||||||
Subtotal Commercial, Tax-exempt & Consumer Loans | 584,436 | ||||||||||||||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 2,242 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 586,678 | |||||||||||||||||||||||||||||||
Loan Portfolio Aging Analysis | |||||||||||||||||||||||||||||||||
The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. | |||||||||||||||||||||||||||||||||
Tables detailing the loan portfolio aging analysis as of September 30, 2013 and December 31, 2012 follow. | |||||||||||||||||||||||||||||||||
Thousands of dollars | Delinquent Loans | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | 30-89 Days | 90 Days and Over (a) (1) | Total Past | Current | Total Portfolio Loans (c) | Nonaccrual Loans (d) | Total Non-performing (a+d) | ||||||||||||||||||||||||||
Past Due | Due (b) | (c-b-d) | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | - | $ | - | $ | - | $ | 14,620 | $ | 18,528 | $ | 3,908 | $ | 3,908 | |||||||||||||||||||
Owner-Occupied CRE | 569 | - | 569 | 105,846 | 109,144 | 2,729 | 2,729 | ||||||||||||||||||||||||||
Other CRE | 300 | - | 300 | 137,718 | 140,686 | 2,668 | 2,668 | ||||||||||||||||||||||||||
Commercial & Industrial | 125 | - | 125 | 101,103 | 104,133 | 2,905 | 2,905 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,079 | 292 | 1,371 | 131,892 | 133,905 | 642 | 934 | ||||||||||||||||||||||||||
Consumer Construction | - | - | - | 13,709 | 13,709 | - | - | ||||||||||||||||||||||||||
Home Equity | - | - | - | 79,781 | 79,898 | 117 | 117 | ||||||||||||||||||||||||||
Other Consumer | 192 | - | 192 | 38,546 | 38,797 | 59 | 59 | ||||||||||||||||||||||||||
Subtotal | $ | 2,265 | $ | 292 | $ | 2,557 | $ | 623,215 | 638,800 | $ | 13,028 | $ | 13,320 | ||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 643,151 | |||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 117 | $ | - | $ | 117 | $ | 24,545 | $ | 28,511 | $ | 3,849 | $ | 3,849 | |||||||||||||||||||
Owner-Occupied CRE | - | - | - | 92,498 | 97,755 | 5,257 | 5,257 | ||||||||||||||||||||||||||
Other CRE | - | - | - | 109,638 | 113,370 | 3,732 | 3,732 | ||||||||||||||||||||||||||
Commercial & Industrial | 683 | - | 683 | 102,257 | 104,332 | 1,392 | 1,392 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,714 | - | 1,714 | 117,338 | 121,393 | 2,341 | 2,341 | ||||||||||||||||||||||||||
Consumer Construction | - | - | - | 12,123 | 12,123 | - | - | ||||||||||||||||||||||||||
Home Equity | 343 | 37 | 380 | 72,515 | 72,983 | 88 | 125 | ||||||||||||||||||||||||||
Other Consumer | 150 | - | 150 | 33,764 | 33,969 | 55 | 55 | ||||||||||||||||||||||||||
Subtotal | $ | 3,007 | $ | 37 | $ | 3,044 | $ | 564,678 | 584,436 | $ | 16,714 | $ | 16,751 | ||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 2,242 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 586,678 | |||||||||||||||||||||||||||||||
(1) All are accruing. | |||||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
Information regarding impaired loans as of September 30, 2013 and December 31, 2012 follows. | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Thousands of dollars | Recorded Balance | Unpaid Principal Balance | Specific Allowance | Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 445 | $ | 753 | $ | - | $ | 654 | $ | 1,673 | $ | - | |||||||||||||||||||||
Owner-Occupied CRE | 947 | 1,334 | - | 4,181 | 6,267 | - | |||||||||||||||||||||||||||
Other CRE | 1,891 | 2,313 | - | 4,438 | 6,158 | - | |||||||||||||||||||||||||||
Commercial & Industrial | 1,262 | 3,315 | - | 1,640 | 3,992 | - | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,667 | 1,667 | - | 2,207 | 2,989 | - | |||||||||||||||||||||||||||
Home Equity | 170 | 170 | - | 232 | 232 | - | |||||||||||||||||||||||||||
Other Consumer | 175 | 175 | - | 157 | 157 | - | |||||||||||||||||||||||||||
Subtotal | 6,557 | 9,727 | - | 13,509 | 21,468 | - | |||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,367 | 4,546 | 2,134 | 7,570 | 7,629 | 3,271 | |||||||||||||||||||||||||||
Owner-Occupied CRE | 3,314 | 6,489 | 1,874 | 6,082 | 7,495 | 2,904 | |||||||||||||||||||||||||||
Other CRE | 6,023 | 6,273 | 1,088 | 3,359 | 3,359 | 1,079 | |||||||||||||||||||||||||||
Commercial & Industrial | 2,266 | 3,077 | 781 | 409 | 409 | 274 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 2,893 | 2,893 | 719 | 3,354 | 3,817 | 771 | |||||||||||||||||||||||||||
Other Consumer | - | - | - | 5 | 5 | 5 | |||||||||||||||||||||||||||
Subtotal | 18,863 | 23,278 | 6,596 | 20,779 | 22,714 | 8,304 | |||||||||||||||||||||||||||
Total Impaired Loans | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,812 | 5,299 | 2,134 | 8,224 | 9,302 | 3,271 | |||||||||||||||||||||||||||
Owner-Occupied CRE | 4,261 | 7,823 | 1,874 | 10,263 | 13,762 | 2,904 | |||||||||||||||||||||||||||
Other CRE | 7,914 | 8,586 | 1,088 | 7,797 | 9,517 | 1,079 | |||||||||||||||||||||||||||
Commercial & Industrial | 3,528 | 6,392 | 781 | 2,049 | 4,401 | 274 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 4,560 | 4,560 | 719 | 5,561 | 6,806 | 771 | |||||||||||||||||||||||||||
Home Equity | 170 | 170 | - | 232 | 232 | - | |||||||||||||||||||||||||||
Other Consumer | 175 | 175 | - | 162 | 162 | 5 | |||||||||||||||||||||||||||
Total Impaired Loans | $ | 25,420 | $ | 33,005 | $ | 6,596 | $ | 34,288 | $ | 44,182 | $ | 8,304 | |||||||||||||||||||||
Information regarding average investment in impaired loans and interest income recognized on those loans for the three and nine month periods ended September 30, 2013 and 2012 is shown below. | |||||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||||
Thousands of dollars | Three Months | Year to Date | Three Months | Year to Date | |||||||||||||||||||||||||||||
Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 445 | $ | - | $ | 466 | $ | - | $ | 3,538 | $ | - | $ | 4,323 | $ | - | |||||||||||||||||
Owner-Occupied CRE | 948 | 3 | 1,912 | 21 | 2,438 | 12 | 2,777 | 51 | |||||||||||||||||||||||||
Other CRE | 3,980 | 21 | 4,143 | 34 | 5,215 | 6 | 9,672 | 124 | |||||||||||||||||||||||||
Commercial & Industrial | 1,265 | 7 | 964 | 17 | 1,715 | 9 | 1,839 | 29 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 993 | 7 | 1,122 | 24 | 1,312 | 6 | 1,274 | 17 | |||||||||||||||||||||||||
Home Equity | 3 | 1 | 8 | 3 | 25 | 1 | 25 | 4 | |||||||||||||||||||||||||
Other Consumer | 158 | - | 145 | - | 122 | - | 155 | - | |||||||||||||||||||||||||
Subtotal | 7,792 | 39 | 8,760 | 99 | 14,365 | 34 | 20,065 | 225 | |||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,385 | 18 | 5,458 | 95 | 8,285 | 89 | 8,443 | 298 | |||||||||||||||||||||||||
Owner-Occupied CRE | 3,319 | 19 | 3,407 | 59 | 6,803 | 47 | 6,668 | 114 | |||||||||||||||||||||||||
Other CRE | 3,966 | 43 | 3,546 | 111 | 3,432 | 36 | 4,331 | 140 | |||||||||||||||||||||||||
Commercial & Industrial | 2,272 | 9 | 2,141 | 71 | 712 | 8 | 888 | 34 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 3,404 | 29 | 3,480 | 103 | 4,555 | 32 | 4,099 | 96 | |||||||||||||||||||||||||
Home Equity | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other Consumer | - | - | - | - | 78 | - | 56 | 2 | |||||||||||||||||||||||||
Subtotal | 17,346 | 118 | 18,032 | 439 | 23,865 | 212 | 24,485 | 684 | |||||||||||||||||||||||||
Total Impaired Loans | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,830 | 18 | 5,924 | 95 | 11,823 | 89 | 12,766 | 298 | |||||||||||||||||||||||||
Owner-Occupied CRE | 4,267 | 22 | 5,319 | 80 | 9,241 | 59 | 9,445 | 165 | |||||||||||||||||||||||||
Other CRE | 7,946 | 64 | 7,689 | 145 | 8,647 | 42 | 14,003 | 264 | |||||||||||||||||||||||||
Commercial & Industrial | 3,537 | 16 | 3,105 | 88 | 2,427 | 17 | 2,727 | 63 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 4,397 | 36 | 4,602 | 127 | 5,867 | 38 | 5,373 | 113 | |||||||||||||||||||||||||
Home Equity | 3 | 1 | 8 | 3 | 25 | 1 | 25 | 4 | |||||||||||||||||||||||||
Other Consumer | 158 | - | 145 | - | 200 | - | 211 | 2 | |||||||||||||||||||||||||
Total Impaired Loans | $ | 25,138 | $ | 157 | $ | 26,792 | $ | 538 | $ | 38,230 | $ | 246 | $ | 44,550 | $ | 909 | |||||||||||||||||
Interest payments received on impaired loans are recorded as interest income unless collection of the remaining recorded investment is doubtful, at which time payments received are recorded as reductions to principal. Subsequent payments on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the judgment of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. These policies apply to each class of the Company's loan portfolio. | |||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
In the course of working with borrowers, the Bank may choose to restructure the contractual terms of certain loans. In this scenario, the Bank attempts to work out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Bank to identify if a troubled debt restructuring ("TDR") has occurred, which is when, for economic or legal reasons related to a borrower's financial difficulties, the Bank grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with the borrower's current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. | |||||||||||||||||||||||||||||||||
If such efforts by the Bank do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time before a sale of the property at foreclosure, the Bank may terminate foreclosure proceedings if the borrower is able to work out a satisfactory payment plan. | |||||||||||||||||||||||||||||||||
It is the Bank's policy to have any restructured loan that is on nonaccrual status before being restructured, remain on nonaccrual status until six months of satisfactory borrower performance, at which time management would consider its return to accrual status. The balance of nonaccrual restructured loans, which is included in nonaccrual loans, was $10.0 million at September 30, 2013 and $10.8 million at December 31, 2012. If a restructured loan is on accrual status prior to being restructured, it is reviewed to determine if the restructured loan should remain on accrual status. The balance of accruing restructured loans was $10.6 million at September 30, 2013 and $15.8 million at December 31, 2012. | |||||||||||||||||||||||||||||||||
All TDRs are considered impaired by the Company. Loans that are considered TDRs are classified as performing unless they are on nonaccrual status or greater than 90 days delinquent as of the end of the most recent quarter. Under Company policy, a loan may be removed from TDR status when it is determined that the loan has performed according to its modified terms for a sustained period of repayment performance (generally not less than six months and not during the calendar year in which the restructuring took place), and the restructuring agreement specified an interest rate greater than or equal to an acceptable rate for a comparable new loan. On a quarterly basis, the Company individually reviews all TDR's to determine if any TDR should be removed from TDR status. | |||||||||||||||||||||||||||||||||
Accruing restructured loans at September 30, 2013 are comprised of two categories of loans on which interest is being accrued under their restructured terms, and the loans are current or less than ninety days past due. The first category consists of commercial loans, primarily comprised of business loans that have been temporarily modified as interest-only loans, generally for a period of up to one year, without a sufficient corresponding increase in the interest rate. | |||||||||||||||||||||||||||||||||
Within this category are CLD loans that have been renewed as interest only, generally for a period of up to one year, to assist the borrower. The Bank does not generally forgive principal or interest on restructured loans. However, when a loan is restructured, principal is generally received on a delayed basis as compared to the original repayment schedule. CLD loans that are restructured are generally modified to require interest-only for a period of time. The Bank does not generally reduce interest rates on restructured commercial loans. | |||||||||||||||||||||||||||||||||
The second category included in accruing restructured loans consists of residential mortgage and home equity loans whose terms have been restructured at less than market terms and include rate modifications, extension of maturity, and forbearance. | |||||||||||||||||||||||||||||||||
The following tables present information regarding loans newly-classified as TDRs for the three and nine month periods ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||
Periods ended September 30, 2013 | Three Months | Nine Months | |||||||||||||||||||||||||||||||
Dollars in thousands | Total Number | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | Total Number | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||||||||||
of Loans | of Loans | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Owner-Occupied CRE | - | $ | - | $ | - | 2 | $ | 182 | $ | 182 | |||||||||||||||||||||||
Other CRE | 1 | 665 | 665 | 1 | 665 | 665 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | - | - | - | 4 | 800 | 800 | |||||||||||||||||||||||||||
Total | 1 | $ | 665 | $ | 665 | 7 | $ | 1,647 | $ | 1,647 | |||||||||||||||||||||||
Periods ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | - | $ | - | $ | - | 2 | $ | 400 | $ | 400 | |||||||||||||||||||||||
Owner-Occupied CRE | 1 | 645 | 645 | 6 | 1,271 | 1,271 | |||||||||||||||||||||||||||
Other CRE | - | - | - | 4 | 2,304 | 2,304 | |||||||||||||||||||||||||||
Commercial & Industrial | - | - | - | 1 | 190 | 190 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | - | - | - | 2 | 224 | 224 | |||||||||||||||||||||||||||
Total | 1 | $ | 645 | $ | 645 | 15 | $ | 4,389 | $ | 4,389 | |||||||||||||||||||||||
The table below provides a breakdown of accruing restructured loans by type at September 30, 2013. The table also includes the average yield on accruing restructured loans and the yield for the entire portfolio, for commercial loans and residential mortgage and home equity loans, for the third quarter of 2013. | |||||||||||||||||||||||||||||||||
30-Sep-13 | Third Quarter 2013 | ||||||||||||||||||||||||||||||||
Dollars in thousands | Number of Loans | Recorded Balance | Avg. Yield | Portfolio Yield | |||||||||||||||||||||||||||||
CLD Loans | 4 | $ | 1,658 | ||||||||||||||||||||||||||||||
Other Commercial Loans | 12 | 5,021 | |||||||||||||||||||||||||||||||
Total Commercial Loans | 16 | 6,679 | 4.92 | % | 4.95 | % | |||||||||||||||||||||||||||
Residential Mortgage & Home Equity Loans | 20 | 3,918 | 3.59 | % | 4.75 | % | |||||||||||||||||||||||||||
Total Accruing Restructured Loans | 36 | $ | 10,597 | ||||||||||||||||||||||||||||||
The Company has no personal loans other than the loans described above that are classified as troubled debt restructurings. In determining the amount of the allowance for loan losses, all restructured loans are classified as impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. | |||||||||||||||||||||||||||||||||
For the third quarter and first nine months ended in 2013, there were no TDRs that subsequently defaulted within twelve months of being restructured. For the same periods in 2012, information is shown below regarding subsequent defaults. | |||||||||||||||||||||||||||||||||
Periods ended September 30, 2012 | Three Months | Nine Months | |||||||||||||||||||||||||||||||
Dollars in thousands | Number of Loans | Recorded Balance | Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 1 | $ | 1,892 | 4 | $ | 3,423 | |||||||||||||||||||||||||||
Owner-Occupied CRE | - | - | 2 | 239 | |||||||||||||||||||||||||||||
Total | 1 | $ | 1,892 | 6 | $ | 3,662 | |||||||||||||||||||||||||||
A TDR is in payment default once it is ninety days contractually past due under the modified terms (unless otherwise stated). Since the Company treats accruing TDRs as impaired loans and evaluates TDRs individually for impairment, the allowance for loan losses is not generally affected by a subsequent default of a TDR. |
Stock_Based_Compensation
Stock Based Compensation | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Stock Based Compensation [Abstract] | ||||||||||||||||||||||
Stock Based Compensation | Note 5 - Stock Based Compensation | |||||||||||||||||||||
The Company has stock based compensation plans as described below. The Company recorded compensation expense related to stock based compensation of $62,500 and $37,500, respectively, for the three month periods and $187,500 and $112,500, respectively, for the nine month periods ended September 30, 2013 and 2012. The Company has a policy of issuing authorized but unissued common shares for the award, satisfaction or settlement of stock-based compensation. | ||||||||||||||||||||||
Stock Incentive Plan of 2010 | ||||||||||||||||||||||
The Company's Stock Incentive Plan of 2010 (the "Incentive Plan") permits the grant and award of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards and other stock-based and stock-related awards (collectively referred to as "incentive awards") to directors, consultative board members, officers and other key employees of the Company and its subsidiaries. | ||||||||||||||||||||||
The following tables show activity for the nine months ended September 30, 2013 for awards granted under the Incentive Plan: | ||||||||||||||||||||||
Stock-Only Stock Appreciation Rights | ||||||||||||||||||||||
Weighted | ||||||||||||||||||||||
Awards | Avg. Exer- | |||||||||||||||||||||
Outstanding | cise Price | |||||||||||||||||||||
Balance at January 1 | 167,250 | $ | 3.33 | |||||||||||||||||||
Awards granted | 46,250 | 5.05 | ||||||||||||||||||||
Awards exercised | (7,946 | ) | 3.33 | |||||||||||||||||||
Awards forfeited | (8,250 | ) | 3.63 | |||||||||||||||||||
Balance at September 30, 2013 | 197,304 | $ | 3.72 | |||||||||||||||||||
Restricted Stock | Restricted Stock Units | |||||||||||||||||||||
Awards | Grant Date | Awards | Grant Date | |||||||||||||||||||
Outstanding | Fair Value | Outstanding | Fair Value | |||||||||||||||||||
Nonvested at January 1 | 22,625 | $ | 3.35 | 46,795 | $ | 3.35 | ||||||||||||||||
Awards granted | 10,500 | 5.05 | 54,582 | 5.05 | ||||||||||||||||||
Awards vested | (22,625 | ) | 3.35 | - | - | |||||||||||||||||
Awards forfeited | - | - | (3,903 | ) | 4.24 | |||||||||||||||||
Nonvested at September 30 | 10,500 | $ | 5.05 | 97,474 | $ | 4.27 | ||||||||||||||||
As of September 30, 2013, unrecognized compensation expense related to the Incentive Plan totaled $410,000. Compensation expense for stock-only stock appreciation rights ("SOSARs") and restricted stock grants is recognized over approximately three years. Compensation expense for restricted stock units ("RSUs") is based on an expected level of achievement of performance targets as determined at the time of each grant, and is usually recognized over three years. | ||||||||||||||||||||||
The fair value of each SOSAR grant is estimated on the grant date using the Black-Scholes option pricing model. Grants were awarded in March of 2013 and 2012. Fair value of grants is based on the weighted-average assumptions shown in the following table. | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Dividend yield | 0 | % | 0 | % | ||||||||||||||||||
Expected life in years | 5 | 5 | ||||||||||||||||||||
Expected volatility | 28.8 | % | 37 | % | ||||||||||||||||||
Risk-free interest rate | 0.72 | % | 0.84 | % | ||||||||||||||||||
Fair value | $ | 1.345 | $ | 1.105 | ||||||||||||||||||
At September 30, 2013, the aggregate intrinsic value of SOSARs outstanding was $608,466. Intrinsic value was determined by calculating the difference between the Company's closing common stock price on September 30, 2013 and the exercise price of the SOSARs, multiplied by the number of in-the-money SOSARs held by each holder, assuming all holders had exercised their SOSARs on September 30, 2013. The weighted–average period over which non-vested SOSARs are expected to be recognized is one year. | ||||||||||||||||||||||
The fair value of restricted stock and RSU grants is considered to be the market price of Company common stock at the grant date. The Company has established three performance targets for 2013 grants. Those targets are based on the Company's pre-tax, pre-provision return on average assets, return on average assets, and classified assets coverage ratio1. Each target is weighted equally, and target levels are based on United's 2013 financial plan. | ||||||||||||||||||||||
Stock Option Plan | ||||||||||||||||||||||
Through December 31, 2009, the Company granted stock options under its 2005 Stock Option Plan (the "2005 Plan"), which is a non-qualified stock option plan as defined under Internal Revenue Service regulations. The shares of stock that are subject to options are the authorized and unissued shares of common stock of the Company. Under the 2005 Plan, directors and management of the Company and subsidiaries were given the right to purchase stock of the Company at the then-current market price at the time the option was granted. The options have a three-year vesting period, and with certain exceptions, expire at the end of ten years, three years after retirement or ninety days after other separation from the Company. The 2005 Plan expired effective January 1, 2010, and no additional options may be granted under the plan. | ||||||||||||||||||||||
The following summarizes year to date option activity for the 2005 Plan: | ||||||||||||||||||||||
Options | Weighted Avg. | |||||||||||||||||||||
Stock Options | Outstanding | Exercise Price | ||||||||||||||||||||
Balance at January 1, 2013 | 358,070 | $ | 21.32 | |||||||||||||||||||
Options expired | (25,434 | ) | 22.97 | |||||||||||||||||||
Options forfeited | (3,400 | ) | 12.71 | |||||||||||||||||||
Balance at September 30, 2013 | 329,236 | $ | 21.28 | |||||||||||||||||||
The table below provides information regarding stock options outstanding under the 2005 Plan at September 30, 2013. | ||||||||||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||||||||||
Range of | Number | Weighted Average | Weighted Avg. | Number | Weighted Avg. | |||||||||||||||||
Exercise Prices | Outstanding | Remaining Contractual Life | Exercise Price | Outstanding | Exercise Price | |||||||||||||||||
$6.00 to $32.14 | 329,236 | 3.12 | Years | $ | 21.28 | 329,236 | $ | 21.28 | ||||||||||||||
As of the end of the third quarter of 2013, there was no unrecognized compensation expense related to the stock options granted under the 2005 Plan. At September 30, 2013, the total outstanding stock options granted under the 2005 Plan had no intrinsic value. Intrinsic value was determined by calculating the difference between the Company's closing common stock price on September 30, 2013 and the exercise price of each option, multiplied by the number of in-the-money stock options held by each holder, assuming all holders had exercised their stock options on September 30, 2013. | ||||||||||||||||||||||
1 Adversely classified assets as a percent of Tier 1 capital plus allowance for loan losses. |
Loan_Servicing
Loan Servicing | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Loan Servicing [Abstract] | |||||||||||||||||
Loan Servicing | Note 6 - Loan Servicing | ||||||||||||||||
Loans serviced for others are not included in the accompanying consolidated financial statements. The unpaid principal balance of loans serviced for others at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
In thousands of dollars | 9/30/13 | 12/31/12 | Change | Percent | |||||||||||||
Total loans serviced | $ | 962,935 | $ | 853,761 | $ | 109,174 | 12.8 | % | |||||||||
Unamortized loan servicing rights are included in accrued interest receivable and other assets on the consolidated balance sheet, for the three and nine month periods ended September 30, 2013 and 2012, are shown below. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In thousands of dollars | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | 7,072 | $ | 5,855 | $ | 6,379 | $ | 5,405 | |||||||||
Amount capitalized | 627 | 780 | 2,205 | 2,029 | |||||||||||||
Amount amortized | (386 | ) | (509 | ) | (1,271 | ) | (1,308 | ) | |||||||||
Balance at September 30, | $ | 7,313 | $ | 6,126 | $ | 7,313 | $ | 6,126 | |||||||||
The fair value of servicing rights was as follows: | |||||||||||||||||
In thousands of dollars | 9/30/13 | 9/30/12 | |||||||||||||||
Fair value, January 1 | $ | 8,285 | $ | 7,331 | |||||||||||||
Fair value, end of period | $ | 11,041 | $ | 7,848 | |||||||||||||
Common_Stock_and_Earnings_Per_
Common Stock and Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Common Stock and Earnings Per Share [Abstract] | |||||||||||||||||
Common Stock and Earnings Per Share | Note 7 - Common Stock and Earnings per Share | ||||||||||||||||
Basic earnings per common share is determined by dividing net income available to common shareholders by the weighted average number of common shares outstanding plus contingently issuable shares during the period. The diluted earnings per share further assumes the dilutive effect of additional common shares issuable under stock based compensation plans and warrants. | |||||||||||||||||
A reconciliation of basic and diluted earnings per common share follows. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In thousands, except per-share data | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income | $ | 2,276 | $ | 1,390 | $ | 6,305 | $ | 3,017 | |||||||||
Less: | |||||||||||||||||
Accretion of discount on preferred stock | (47 | ) | (27 | ) | (106 | ) | (83 | ) | |||||||||
Dividends on preferred stock | (258 | ) | (258 | ) | (773 | ) | (773 | ) | |||||||||
Income available to common shareholders | $ | 1,971 | $ | 1,105 | $ | 5,426 | $ | 2,161 | |||||||||
Basic earnings per share: | |||||||||||||||||
Weighted avg. common shares outstanding | 12,703.50 | 12,683.40 | 12,698.60 | 12,677.70 | |||||||||||||
Weighted avg. contingently issuable shares | 133.3 | 114.5 | 127.6 | 113.5 | |||||||||||||
Total weighted average common shares outstanding | 12,836.80 | 12,797.90 | 12,826.20 | 12,791.20 | |||||||||||||
Basic earnings per share | $ | 0.15 | $ | 0.09 | $ | 0.42 | $ | 0.17 | |||||||||
Diluted earnings per share: | |||||||||||||||||
Weighted average common shares outstanding from basic earnings per share | 12,836.80 | 12,797.90 | 12,826.20 | 12,791.20 | |||||||||||||
Dilutive effect of stock incentive plans | 73.9 | - | 55.1 | - | |||||||||||||
Total weighted average common shares outstanding | 12,910.70 | 12,797.90 | 12,881.40 | 12,791.20 | |||||||||||||
Diluted earnings per share | $ | 0.15 | $ | 0.09 | $ | 0.42 | $ | 0.17 | |||||||||
A total of 370,986 and 373,986 shares subject to RSU and SOSAR grants, stock options and restricted stock existed for the three and nine month periods ended September 30, 2013 and 527,751 shares subject to RSU and SOSAR grants, stock options and restricted stock existed for the same time periods in 2012. These shares were not considered in computing diluted earnings per share because they were not dilutive. |
Disclosures_About_Fair_Value_o
Disclosures About Fair Value of Assets and Liabilities | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Disclosures About Fair Value of Assets and Liabilities | Note 8 – Disclosures About Fair Value of Assets and Liabilities | ||||||||||||||||
Fair Value Measurements. The Fair Value Measurements Topic of the FASB Accounting Standards Codification ("FASB ASC") defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FASB ASC Topic 820-10-20 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
Topic 820-10-55 establishes a fair value hierarchy that emphasizes use of observable inputs and minimizes use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | ||||||||||||||||
Recurring Measurements | |||||||||||||||||
The following table presents the fair value measurements of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements were classified at September 30, 2013 and December 31, 2012, in thousands of dollars: | |||||||||||||||||
Thousands of dollars | Fair Value Measurements Using | ||||||||||||||||
30-Sep-13 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Available for sale securities: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 25,767 | $ | - | $ | 25,767 | $ | - | |||||||||
Mortgage-backed agency securities | 154,243 | - | 154,243 | - | |||||||||||||
Obligations of states and political subdivisions | 24,790 | - | 24,790 | - | |||||||||||||
Equity securities | 27 | 27 | - | - | |||||||||||||
Hedged loan | 7,257 | - | 7,257 | - | |||||||||||||
Interest rate swap asset | 120 | - | 120 | - | |||||||||||||
31-Dec-12 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 27,316 | $ | - | $ | 27,316 | $ | - | |||||||||
Mortgage-backed agency securities | 160,499 | - | 160,499 | - | |||||||||||||
Obligations of states and political subdivisions | 18,286 | - | 18,286 | - | |||||||||||||
Equity securities | 28 | 28 | - | - | |||||||||||||
Following is a description of the inputs and valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of those instruments under the valuation hierarchy. | |||||||||||||||||
Available-for-sale Securities | |||||||||||||||||
Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 2 securities include U.S. Government agency securities, mortgage-backed securities, obligations of states and municipalities, and certain corporate securities. Matrix pricing is a mathematical technique widely used in the banking industry to value investment securities without relying exclusively on quoted prices for specific investment securities, but rather, relying on the investment securities' relationship to other benchmark quoted investment securities. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The Company has no Level 3 securities. | |||||||||||||||||
Interest Rate Swaps (Derivatives) | |||||||||||||||||
The fair value of interest rate swaps is based on valuation models using observable market data as of the measurement date (Level 2). Additional information is included in Note 9 – Derivative Instruments of the Notes to Consolidated Condensed Financial Statements of this Form 10-Q. | |||||||||||||||||
Transfers between Levels | |||||||||||||||||
There were no transfers between Levels 1, 2 and 3 in the quarter ended September 30, 2013 of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis. | |||||||||||||||||
Nonrecurring Measurements | |||||||||||||||||
The following table presents the fair value measurements of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a non-recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012: | |||||||||||||||||
In thousands of dollars | Fair Value Measurements Using | ||||||||||||||||
Impaired Loans (Collateral Dependent): | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Sep-13 | $ | 13,803 | $ | - | $ | - | $ | 13,803 | |||||||||
31-Dec-12 | 21,866 | - | - | 21,866 | |||||||||||||
Significant Unobservable Inputs | |||||||||||||||||
The following is a discussion of the significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement. Those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. | |||||||||||||||||
Impaired Loans (Collateral Dependent) | |||||||||||||||||
Loan balances which indicate that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Collateral-dependent loans are assigned an impairment rating using the Fair Value of the Collateral method, based on the current appraisals of loan collateral. | |||||||||||||||||
The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. The Company's practice is to obtain new or updated appraisals on the loans subject to the initial impairment review and then to generally update on an annual basis thereafter. The Company discounts the appraisal amount as necessary for selling costs and past due real estate taxes. If a new or updated appraisal is not available at the time of a loan's impairment review, the Company typically applies a discount to the value of an old appraisal to reflect the property's current estimated value if there is believed to be deterioration in either (i) the physical or economic aspects of the subject property or (ii) any market conditions. These discounts and estimates are developed by the Credit Department, and are reviewed by the Chief Credit Officer and the Chief Financial Officer. The impairment review results in an increase in the allowance for loan loss or in a partial charge-off of the loan, if warranted. Impaired loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method based on current appraisals. | |||||||||||||||||
Unobservable (Level 3) Inputs | |||||||||||||||||
The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements as of September 30, 2013 and December 31, 2012. For both periods, the valuation technique used is market comparable properties and unobservable inputs are based on marketability discount at the rates shown. | |||||||||||||||||
Impaired loans (collateral dependent) | |||||||||||||||||
dollars in thousands | 9/30/13 | 12/31/12 | |||||||||||||||
Fair value | $ | 13,803 | $ | 21,866 | |||||||||||||
Range | 7.5%-49.5 | % | 7.5%-49.5 | % | |||||||||||||
Weighted average | 16.3 | % | 14 | % | |||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying amounts and estimated fair value of principal financial assets and liabilities, in thousands of dollars, at September 30, 2013 and December 31, 2012, were as follows: | |||||||||||||||||
30-Sep-13 | |||||||||||||||||
Carrying | Fair Value Measurements Using | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets | |||||||||||||||||
Cash and cash equivalents | $ | 31,781 | $ | 31,781 | $ | - | $ | - | |||||||||
Securities available for sale | 204,827 | 27 | 204,800 | - | |||||||||||||
FHLB Stock | 2,691 | - | 2,691 | - | |||||||||||||
Loans held for sale | 8,388 | - | 8,388 | - | |||||||||||||
Net portfolio loans | 621,188 | - | 7,257 | 618,335 | |||||||||||||
Accrued interest receivable | 2,760 | - | 2,760 | - | |||||||||||||
Interest rate swap asset | 120 | - | 120 | - | |||||||||||||
Financial Liabilities | |||||||||||||||||
Total deposits | $ | (805,740 | ) | $ | (160,225 | ) | $ | (646,587 | ) | $ | - | ||||||
FHLB advances | (11,983 | ) | - | (12,595 | ) | - | |||||||||||
Other borrowings | (6,000 | ) | - | (6,000 | ) | - | |||||||||||
Accrued interest payable | (281 | ) | - | (281 | ) | - | |||||||||||
31-Dec-12 | |||||||||||||||||
Financial Assets | |||||||||||||||||
Cash and cash equivalents | $ | 70,612 | $ | 70,612 | $ | - | $ | - | |||||||||
Securities available for sale | 206,129 | 28 | 206,101 | - | |||||||||||||
FHLB Stock | 2,571 | - | 2,571 | - | |||||||||||||
Loans held for sale | 13,380 | - | 13,380 | - | |||||||||||||
Net portfolio loans | 564,135 | - | - | 574,137 | |||||||||||||
Accrued interest receivable | 2,620 | - | 2,620 | - | |||||||||||||
Financial Liabilities | |||||||||||||||||
Total deposits | $ | (784,643 | ) | $ | - | $ | (787,015 | ) | $ | - | |||||||
FHLB advances | (21,999 | ) | - | (23,007 | ) | - | |||||||||||
Accrued interest payable | (354 | ) | - | (354 | ) | - | |||||||||||
Estimated fair values require subjective judgments and are approximate. The above estimates of fair value are not necessarily representative of amounts that could be realized in actual market transactions, or of the underlying value of the Company. | |||||||||||||||||
Changes in the following methodologies and assumptions could significantly affect the estimated fair value: | |||||||||||||||||
Cash and cash equivalents, FHLB stock, loans held for sale, accrued interest receivable and accrued interest payable – The carrying amounts are reasonable estimates of the fair values of these instruments at the respective balance sheet dates. | |||||||||||||||||
Net portfolio loans – The carrying amount is a reasonable estimate of fair value for personal loans for which rates adjust quarterly or more frequently, and for business and tax-exempt loans that are prime related and for which rates adjust immediately or quarterly. The fair value of all other loans is estimated by discounting future cash flows using current rates for loans with similar characteristics and maturities. The Bank's current loan rates are comparable with rates offered by other financial institutions. The allowance for loan losses is considered to be a reasonable estimate of discount for credit quality concerns. | |||||||||||||||||
Total deposits – With the exception of certificates of deposit, the carrying value is deemed to be the fair value due to the demand nature of the deposits. The fair value of fixed maturity certificates of deposit is estimated by discounting future cash flows using the current rates paid on certificates of deposit with similar maturities. The Bank's current deposit rates are comparable with rates offered by other financial institutions. | |||||||||||||||||
FHLB advances – The fair value is estimated by discounting future cash flows using current rates on advances with similar maturities. | |||||||||||||||||
Other borrowings – The fair value is estimated by discounting future cash flows using current rates on borrowings with similar maturities. | |||||||||||||||||
Off-balance-sheet financial instruments – Commitments to extend credit, standby letters of credit and undisbursed loans are deemed to have no material fair value as such commitments are generally fulfilled at current market rates. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Derivative Instruments [Abstract] | |
Derivative Instruments [Text Block] | Note 9 – Derivative Instruments |
The Company may use interest rate swaps as part of its interest rate risk management strategy to add stability to interest income and to manage its exposure to interest rate movements. The Company does not use derivative instruments for trading or speculative purposes. The Company has entered into an interest rate swap agreement, primarily as an asset/liability management strategy, in order to mitigate the changes in the fair value of a specified long-term fixed-rate loan caused by changes in interest rates. This hedge allowed us to offer a long-term fixed rate loan to a client without assuming the interest rate risk of a long-term asset. Converting our fixed-rate interest stream to a floating-rate interest stream, benchmarked to the one-month U.S. dollar LIBOR index, protects against changes in the fair value of our loan otherwise associated with fluctuating interest rates. | |
The fixed-rate payment feature of the interest rate swap is structured at inception to mirror substantially all of the provisions of the hedged loan agreements. This interest rate swap, designated and qualified as a fair value hedge, is carried on the consolidated balance sheet at fair value in "other assets" (when the fair value is positive) or in "other liabilities" (when the fair value is negative). | |
The change in fair value of the interest rate swap is recorded in interest income. The unrealized gain or loss in fair value of the hedged fixed-rate loan due to LIBOR interest rate movements is recorded as an adjustment to the hedged loan and is offset in interest income. The net effect of the change in fair value of the interest rate swap and the change in the fair value of the hedged loan may result in an insignificant amount of hedge ineffectiveness recognized in interest income. | |
Our credit exposure, if any, on the interest rate swap is limited to the favorable value (net of any collateral pledged to us) and interest payments of the interest rate swap by the counterparty. We are required to post collateral to the counterparty. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. As of September 30, 2013, we have posted cash collateral of $370,100 related to the collateral requirements of the interest rate swap. | |
As of September 30, 2013, we had one interest rate swap, which is scheduled to mature in June 2020. The interest rate swap is accounted for as a fair value hedge, and is settled monthly with the counterparty. As of September 30, 2013, the notional amount of the interest rate swap was approximately $7.4 million. The fair value of the interest rate swap at September 30, 2013 was $120,000. The Company had no interest rate swaps at December 31, 2012. | |
The hedging relationship of the interest rate swap is tested for effectiveness on a quarterly basis, and, at September 30, 2013, was determined to be highly effective, with no resulting impact on the income statement of the Company for the three and nine months ended September 30, 2013. |
Accounting_Developments
Accounting Developments | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Developments | Note 12 – Accounting Developments |
Accounting Standards Update No. 2013-04 – Liabilities (Topic 405). On February 28, 2013, FASB issued ASU 2013-04. The amendments in this Update provide guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this Update is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. | |
The guidance in this Update also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. This Accounting Standards Update is the final version of Proposed Accounting Standards Update EITF12D – Liabilities (Topic 405) which has been deleted. | |
The amendments in this Update are effective for fiscal years beginning after December 31, 2013. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
Accounting Standards Update No. 2013-07 – Presentation of Financial Statements (Topic 205). On April 22, 2013, FASB issued ASU 2013-07. The objective of this Update is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2012-210 – Presentation of Financial Statements (Topic 205), which has been deleted. | |
The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
Accounting Standards Update No. 2013-10 - Derivatives and Hedging (Topic 815) In July 2013, FASB issued ASU 2013-10. The objective of this Update is to provide for the inclusion of the Fed Funds Effective Swap Rate - Overnight Index Swap Rate (OIS) as a U.S. benchmark interest rate for hedge accounting purposes, in addition to U.S. Treasury (UST) or London Interbank Offered Rate (LIBOR) indices. The Update also removes a restriction stating that entities must use the same rates for similar hedges, offering greater flexibility in hedge accounting. | |
The amendments in this Update are effective prospectively for qualifying new or re-designated hedging relationships entered into on or after July 17, 2013. The Company has adopted the applicable methodologies prescribed by this ASU and does not anticipate that the ASU will have a material effect on its financial position or results of operations. | |
Accounting Standards Update No. 2013-11- Income Taxes (Topic 740) – In July 2013, FASB issued ASU 2013-11. This update pertains to the unrecognized tax benefit when a net operating loss carry forward, a similar tax loss or a tax credit carry forward exists. The ASU is intended to end the varying ways that entities present these situations since GAAP is non-specific and leads to diversity in practice. The new standard deems that any unrecognized tax benefit or portion of an unrecognized tax benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry forward, a similar tax loss, or a tax credit carry forward except for certain defined situations. | |
The amendments in this Update are effective for fiscal years beginning after December 15, 2013. Early adoption is permitted. The Company will adopt the methodologies prescribed by this ASU by the date required, and does not anticipate that the ASU will have a material effect on its financial position or results of operations. |
Legal_Proceedings
Legal Proceedings | 9 Months Ended |
Sep. 30, 2013 | |
Legal Proceedings [Abstract] | |
Legal Matters And Contingencies [TextBlock] | Note 13 – Legal Proceedings |
The Company is involved in routine legal proceedings occurring in the ordinary course of its business, which, in the aggregate, are believed to be immaterial to the financial condition of the Company. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2013 | |
Borrowings [Abstract] | |
Borrowings [Text Block] | Note 10 – Borrowings |
The Company entered into a Business Loan Agreement with Chemical Bank (the "Loan Agreement") and a revolving line of credit as of September 16, 2013. The Loan Agreement provides for a $10.0 million line of credit by Chemical Bank to the Company at an interest rate of prime plus 0.125% (3.375% as of September 30, 2013). The Company will pay quarterly payments of accrued interest, and the balance of all outstanding principal and accrued interest will become due on September 16, 2015. As of September 30, 2013, United had an outstanding principal balance of $6.0 million on the line of credit. | |
The Loan Agreement contained customary affirmative and negative covenants and events of default. Affirmative covenants include the maintenance of certain minimum capital ratios, a maximum net charge off to average loan ratio, a maximum non-performing loan to total assets ratio, a minimum return on average assets, a minimum return on average equity and a limit on the amount of dividends that the Company may pay to holders of common stock. | |
If return on average assets falls below a certain specified level, then the Company's quarterly dividend payment to common shareholders could not be increased and the payout ratio could not exceed 40%. Negative covenants include restrictions on additional indebtedness, and a covenant not to merge, acquire or consolidate with another entity without Chemical Bank's consent. Events of default include payment defaults, false representations, insolvency and certain other events. | |
As security for its obligations under the Loan Agreement, the Company pledged to Chemical Bank all of the outstanding common stock of its subsidiary, United Bank & Trust. |
Preferred_Stock_Redemption
Preferred Stock Redemption | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock Redemption [Abstract] | |
Preferred Stock Redemption [Text Block] | Note 11 – Preferred Stock Redemption |
On September 30, 2013, the Company completed the redemption of 10,300 shares, or 50%, of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, Liquidation Preference Amount $1,000 per share ("Preferred Stock") that were originally issued to the United States Department of the Treasury ("U.S. Treasury") under the Troubled Asset Relief Program Capital Purchase Program. U.S. Treasury sold all 20,600 shares of Preferred Stock to private investors in June 2012. Following completion of the partial redemption, 10,300 shares of Preferred Stock remain outstanding. | |
The redemption price for the shares of Preferred Stock was the stated liquidation preference amount of $1,000 per share, plus any accrued and unpaid dividends to but excluding September 30, 2013. The total cost of the partial redemption of shares of Preferred Stock was approximately $10.4 million, which was funded with a combination of excess cash at the holding company, a dividend to the holding company of retained earnings by the Bank, and the borrowing of $6.0 million under the Company's $10.0 million revolving line of credit. | |
Following completion of the partial redemption of shares of Preferred Stock, the capital ratios of the Company and the Bank continue to exceed regulatory standards to be categorized as well-capitalized. In addition, the Bank's Tier 1 capital ratio continues to exceed the 8.5% level required by resolution of the Bank's Board of Directors. The Bank's Tier 1 leverage ratio was 9.72% at September 30, 2013, after payment of a $3.0 million dividend to the Company in the third quarter of 2013. |
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||
Available for sale securities by category | Balances of securities by category are shown below at September 30, 2013 and December 31, 2012. All securities are classified as available for sale. | ||||||||||||||||||||||||
At September 30, 2013, in thousands of dollars | Amortized | Unrealized | Unrealized Losses | Fair Value | |||||||||||||||||||||
Cost | Gains | ||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 26,556 | $ | 34 | $ | (823 | ) | $ | 25,767 | ||||||||||||||||
Mortgage-backed agency securities | 154,205 | 1,407 | (1,369 | ) | 154,243 | ||||||||||||||||||||
Obligations of states and political subdivisions | 24,664 | 468 | (342 | ) | 24,790 | ||||||||||||||||||||
Equity securities | 26 | 1 | - | 27 | |||||||||||||||||||||
Total | $ | 205,451 | $ | 1,910 | $ | (2,534 | ) | $ | 204,827 | ||||||||||||||||
At December 31, 2012, in thousands of dollars | |||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 27,200 | $ | 130 | $ | (14 | ) | $ | 27,316 | ||||||||||||||||
Mortgage-backed agency securities | 158,829 | 2,324 | (654 | ) | 160,499 | ||||||||||||||||||||
Obligations of states and political subdivisions | 17,551 | 740 | (5 | ) | 18,286 | ||||||||||||||||||||
Equity securities | 26 | 2 | - | 28 | |||||||||||||||||||||
Total | $ | 203,606 | $ | 3,196 | $ | (673 | ) | $ | 206,129 | ||||||||||||||||
Fair value and gross unrealized losses of entity's investments | The following tables show fair value and the gross unrealized losses of the Company's investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||
At September 30, 2013 | Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
In thousands of dollars | Fair Value | Losses | Fair Value | Losses | Fair Value | Losses | |||||||||||||||||||
U.S. Treasury and agency securities | $ | 18,643 | $ | (823 | ) | $ | - | $ | - | $ | 18,643 | $ | (823 | ) | |||||||||||
Mortgage-backed agency securities | 84,078 | (1,305 | ) | 3,084 | (64 | ) | 87,162 | (1,369 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 8,535 | (342 | ) | - | - | 8,535 | (342 | ) | |||||||||||||||||
Total | $ | 111,256 | $ | (2,470 | ) | $ | 3,084 | $ | (64 | ) | $ | 114,340 | $ | (2,534 | ) | ||||||||||
At December 31, 2012 | |||||||||||||||||||||||||
In thousands of dollars | |||||||||||||||||||||||||
U.S. Treasury and agency securities | $ | 4,131 | $ | (14 | ) | $ | - | $ | - | $ | 4,131 | $ | (14 | ) | |||||||||||
Mortgage-backed agency securities | 54,538 | (639 | ) | 1,309 | (15 | ) | 55,847 | (654 | ) | ||||||||||||||||
Obligations of states and political subdivisions | 941 | (5 | ) | - | - | 941 | (5 | ) | |||||||||||||||||
Total | $ | 59,610 | $ | (658 | ) | $ | 1,309 | $ | (15 | ) | $ | 60,919 | $ | (673 | ) | ||||||||||
Sales of available for sale securities | Sales activity for securities for the three and nine month periods ended September 30, 2013 and 2012 is shown in the following table. All sales were of securities identified as available for sale. | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
In thousands of dollars | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Sales proceeds | $ | - | $ | - | $ | 11,752 | $ | 2,847 | |||||||||||||||||
Gross gains on sales | - | - | 136 | 30 | |||||||||||||||||||||
Gross loss on sales | - | - | (97 | ) | (26 | ) | |||||||||||||||||||
Gross gains on calls | 1 | - | 1 | - | |||||||||||||||||||||
Fair value and amortized cost of securities available for sale by contractual maturity | The amortized cost and fair value of securities available for sale by contractual maturity as of September 30, 2013 is shown below. 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 | |||||||||||||||||||||||||
In thousands of dollars | Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 16,821 | $ | 16,892 | |||||||||||||||||||||
Due after one year through five years | 28,480 | 28,006 | |||||||||||||||||||||||
Due after five years through ten years | 5,919 | 5,659 | |||||||||||||||||||||||
Due after ten years | - | - | |||||||||||||||||||||||
Mortgage-backed agency securities | 154,205 | 154,243 | |||||||||||||||||||||||
Equity securities | 26 | 27 | |||||||||||||||||||||||
Total securities | $ | 205,451 | $ | 204,827 |
Loans_Tables
Loans (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Loans [Abstract] | |||||||||||||||||
Loans categories and percentage composition of portfolio | The following table shows the balances of the various categories of loans of the Company, and the percentage composition of the portfolio by class at September 30, 2013 and December 31, 2012. | ||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||
In thousands of dollars | Balance | % of total | Balance | % of total | |||||||||||||
Commercial construction & land development | $ | 18,528 | 2.9 | % | $ | 28,511 | 4.9 | % | |||||||||
Owner-occupied commercial real estate loans | 109,144 | 17 | % | 97,755 | 16.7 | % | |||||||||||
Other commercial real estate loans | 140,686 | 21.9 | % | 113,370 | 19.3 | % | |||||||||||
Commercial & industrial loans | 104,133 | 16.2 | % | 104,332 | 17.8 | % | |||||||||||
Residential mortgages | 133,905 | 20.8 | % | 121,393 | 20.6 | % | |||||||||||
Consumer construction | 13,709 | 2.1 | % | 12,123 | 2.1 | % | |||||||||||
Home equity loans | 79,898 | 12.4 | % | 72,983 | 12.4 | % | |||||||||||
Other consumer loans | 38,797 | 6 | % | 33,969 | 5.8 | % | |||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | 0.7 | % | 2,242 | 0.4 | % | |||||||||||
Total portfolio loans | $ | 643,151 | 100 | % | $ | 586,678 | 100 | % |
Allowance_for_Loan_Losses_and_1
Allowance for Loan Losses and Credit Risk (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Credit Risk [Abstract] | |||||||||||||||||||||||||||||||||
Allowance for credit losses on financing receivables | An analysis of the allowance for loan losses for the three and nine month periods ended September 30, 2013 and 2012 and balances as of December 31, 2012 follows: | ||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, June 30 | $ | 2,925 | $ | 4,509 | $ | 5,445 | $ | 4,482 | $ | 2,456 | $ | 2,184 | $ | 22,001 | |||||||||||||||||||
Provision charged to expense | (163 | ) | 1 | (26 | ) | 414 | (12 | ) | 86 | 300 | |||||||||||||||||||||||
Losses charged off | (8 | ) | (92 | ) | (35 | ) | (367 | ) | (77 | ) | (89 | ) | (668 | ) | |||||||||||||||||||
Recoveries | 244 | 8 | 3 | 8 | 1 | 66 | 330 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 2,998 | $ | 4,426 | $ | 5,387 | $ | 4,537 | $ | 2,368 | $ | 2,247 | $ | 21,963 | |||||||||||||||||||
Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 4,216 | $ | 5,093 | $ | 4,708 | $ | 4,131 | $ | 2,456 | $ | 1,939 | $ | 22,543 | |||||||||||||||||||
Provision charged to expense | (1,414 | ) | 808 | 559 | 1,415 | 55 | 477 | 1,900 | |||||||||||||||||||||||||
Losses charged off | (808 | ) | (1,830 | ) | (73 | ) | (1,118 | ) | (200 | ) | (479 | ) | (4,508 | ) | |||||||||||||||||||
Recoveries | 1,004 | 355 | 193 | 109 | 57 | 310 | 2,028 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 2,998 | $ | 4,426 | $ | 5,387 | $ | 4,537 | $ | 2,368 | $ | 2,247 | $ | 21,963 | |||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,134 | $ | 1,874 | $ | 1,088 | $ | 781 | $ | 719 | $ | - | $ | 6,596 | |||||||||||||||||||
Collectively evaluated for impairment | $ | 864 | $ | 2,552 | $ | 4,299 | $ | 3,756 | $ | 1,649 | $ | 2,247 | $ | 15,367 | |||||||||||||||||||
Total Loans: | |||||||||||||||||||||||||||||||||
Ending balance | $ | 32,237 | $ | 110,417 | $ | 164,457 | $ | 104,231 | $ | 106,723 | $ | 125,086 | $ | 643,151 | |||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,812 | $ | 4,261 | $ | 7,914 | $ | 3,528 | $ | 4,560 | $ | 345 | $ | 25,420 | |||||||||||||||||||
Collectively evaluated for impairment | $ | 27,425 | $ | 106,156 | $ | 156,543 | $ | 100,703 | $ | 102,163 | $ | 124,741 | $ | 617,731 | |||||||||||||||||||
Three Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, June 30, 2012 | $ | 4,587 | $ | 4,778 | $ | 4,845 | $ | 4,355 | $ | 1,808 | $ | 1,724 | $ | 22,097 | |||||||||||||||||||
Provision charged to expense | 496 | 1,007 | 97 | 202 | 206 | (8 | ) | 2,000 | |||||||||||||||||||||||||
Losses charged off | (110 | ) | (1,009 | ) | (239 | ) | (719 | ) | (216 | ) | (87 | ) | (2,380 | ) | |||||||||||||||||||
Recoveries | 80 | 5 | 174 | 335 | 80 | 69 | 743 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 5,053 | $ | 4,781 | $ | 4,877 | $ | 4,173 | $ | 1,878 | $ | 1,698 | $ | 22,460 | |||||||||||||||||||
Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Thousands of dollars | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Balance, January 1 | $ | 3,676 | $ | 3,875 | $ | 4,721 | $ | 4,741 | $ | 1,931 | $ | 1,689 | $ | 20,633 | |||||||||||||||||||
Provision charged to expense | 1,945 | 1,942 | 1,940 | 11 | 659 | 153 | 6,650 | ||||||||||||||||||||||||||
Losses charged off | (868 | ) | (1,067 | ) | (2,056 | ) | (1,419 | ) | (855 | ) | (578 | ) | (6,843 | ) | |||||||||||||||||||
Recoveries | 300 | 31 | 272 | 840 | 143 | 434 | 2,020 | ||||||||||||||||||||||||||
Balance, September 30 | $ | 5,053 | $ | 4,781 | $ | 4,877 | $ | 4,173 | $ | 1,878 | $ | 1,698 | $ | 22,460 | |||||||||||||||||||
Balances at December 31, 2012 | |||||||||||||||||||||||||||||||||
Thousands of dollars | CLD (1) | Owner- Occupied CRE (2) | Other | Commercial & Industrial | Residential Mortgage | Personal Loans | Total | ||||||||||||||||||||||||||
CRE (2) | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,271 | $ | 2,904 | $ | 1,079 | $ | 274 | $ | 771 | $ | 5 | $ | 8,304 | |||||||||||||||||||
Collectively evaluated for impairment | 945 | 2,189 | 3,629 | 3,857 | 1,685 | 1,934 | 14,239 | ||||||||||||||||||||||||||
Total Allowance for Loan Losses | $ | 4,216 | $ | 5,093 | $ | 4,708 | $ | 4,131 | $ | 2,456 | $ | 1,939 | $ | 22,543 | |||||||||||||||||||
Total Loans: | |||||||||||||||||||||||||||||||||
Ending balance: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 8,224 | $ | 10,263 | $ | 7,797 | $ | 2,049 | $ | 5,561 | $ | 394 | $ | 34,288 | |||||||||||||||||||
Collectively evaluated for impairment | 32,410 | 92,316 | 123,207 | 96,336 | 96,095 | 112,026 | 552,390 | ||||||||||||||||||||||||||
Total Loans | $ | 40,634 | $ | 102,579 | $ | 131,004 | $ | 98,385 | $ | 101,656 | $ | 112,420 | $ | 586,678 | |||||||||||||||||||
(1) Construction and Land Development loans | |||||||||||||||||||||||||||||||||
(2) Commercial Real Estate loans | |||||||||||||||||||||||||||||||||
Quality indicators for portfolio loans based on entity's internal risk categories | Quality indicators for portfolio loans as of September 30, 2013 and December 31, 2012 based on the Bank's internal risk categories are detailed in the following tables. | ||||||||||||||||||||||||||||||||
In thousands of dollars | At September 30, 2013 | ||||||||||||||||||||||||||||||||
Commercial & Tax-exempt Loans | CLD | Owner-Occupied CRE | Other CRE | Commercial & Industrial | Total Commercial | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Rating | |||||||||||||||||||||||||||||||||
1-4 | Pass | $ | 7,930 | $ | 96,748 | $ | 118,953 | $ | 91,616 | $ | 315,247 | ||||||||||||||||||||||
5 | Special Mention | 5,110 | 6,600 | 13,671 | 5,627 | 31,008 | |||||||||||||||||||||||||||
6 | Substandard | 5,008 | 5,796 | 8,062 | 6,855 | 25,721 | |||||||||||||||||||||||||||
7 | Doubtful | 480 | - | - | 35 | 515 | |||||||||||||||||||||||||||
8 | Loss | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial & Tax-exempt Loans | $ | 18,528 | $ | 109,144 | $ | 140,686 | $ | 104,133 | $ | 372,491 | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||||||||||
Consumer Loans | Residential Mortgage | Consumer Construction | Home Equity | Other Consumer | Total Consumer | ||||||||||||||||||||||||||||
Credit risk profile based on payment activity | |||||||||||||||||||||||||||||||||
Performing | $ | 128,144 | $ | 13,709 | $ | 79,611 | $ | 38,546 | $ | 260,010 | |||||||||||||||||||||||
Accruing restructured | 3,748 | - | 170 | - | 3,918 | ||||||||||||||||||||||||||||
Delinquent less than 90 days | 1,079 | - | - | 192 | 1,271 | ||||||||||||||||||||||||||||
Nonperforming | 934 | - | 117 | 59 | 1,110 | ||||||||||||||||||||||||||||
Total Consumer Loans | $ | 133,905 | $ | 13,709 | $ | 79,898 | $ | 38,797 | 266,309 | ||||||||||||||||||||||||
Subtotal Commercial, Tax-exempt & Consumer Loans | 638,800 | ||||||||||||||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 643,151 | |||||||||||||||||||||||||||||||
In thousands of dollars | At December 31, 2012 | ||||||||||||||||||||||||||||||||
Commercial & Tax-exempt Loans | CLD | Owner-Occupied CRE | Other CRE | Commercial & Industrial | Total Commercial | ||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Rating | |||||||||||||||||||||||||||||||||
1-4 | Pass | $ | 12,813 | $ | 78,507 | $ | 86,445 | $ | 91,711 | $ | 269,476 | ||||||||||||||||||||||
5 | Special Mention | 7,378 | 11,510 | 17,073 | 5,104 | 41,065 | |||||||||||||||||||||||||||
6 | Substandard | 7,840 | 7,738 | 9,852 | 7,475 | 32,905 | |||||||||||||||||||||||||||
7 | Doubtful | 480 | - | - | 42 | 522 | |||||||||||||||||||||||||||
8 | Loss | - | - | - | - | - | |||||||||||||||||||||||||||
Total Commercial & Tax-exempt Loans | $ | 28,511 | $ | 97,755 | $ | 113,370 | $ | 104,332 | $ | 343,968 | |||||||||||||||||||||||
Consumer Loans | Residential Mortgage | Consumer Construction | Home Equity | Other Consumer | Total Consumer | ||||||||||||||||||||||||||||
Credit risk profile based on payment activity | |||||||||||||||||||||||||||||||||
Performing | $ | 114,071 | $ | 12,123 | $ | 72,344 | $ | 33,764 | $ | 232,302 | |||||||||||||||||||||||
Accruing restructured | 3,267 | - | 171 | - | 3,438 | ||||||||||||||||||||||||||||
Delinquent less than 90 days | 1,714 | - | 343 | 150 | 2,207 | ||||||||||||||||||||||||||||
Nonperforming | 2,341 | - | 125 | 55 | 2,521 | ||||||||||||||||||||||||||||
Total Consumer Loans | $ | 121,393 | $ | 12,123 | $ | 72,983 | $ | 33,969 | 240,468 | ||||||||||||||||||||||||
Subtotal Commercial, Tax-exempt & Consumer Loans | 584,436 | ||||||||||||||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 2,242 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 586,678 | |||||||||||||||||||||||||||||||
Loan portfolio aging analysis | Tables detailing the loan portfolio aging analysis as of September 30, 2013 and December 31, 2012 follow. | ||||||||||||||||||||||||||||||||
Thousands of dollars | Delinquent Loans | ||||||||||||||||||||||||||||||||
As of September 30, 2013 | 30-89 Days | 90 Days and Over (a) (1) | Total Past | Current | Total Portfolio Loans (c) | Nonaccrual Loans (d) | Total Non-performing (a+d) | ||||||||||||||||||||||||||
Past Due | Due (b) | (c-b-d) | |||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | - | $ | - | $ | - | $ | 14,620 | $ | 18,528 | $ | 3,908 | $ | 3,908 | |||||||||||||||||||
Owner-Occupied CRE | 569 | - | 569 | 105,846 | 109,144 | 2,729 | 2,729 | ||||||||||||||||||||||||||
Other CRE | 300 | - | 300 | 137,718 | 140,686 | 2,668 | 2,668 | ||||||||||||||||||||||||||
Commercial & Industrial | 125 | - | 125 | 101,103 | 104,133 | 2,905 | 2,905 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,079 | 292 | 1,371 | 131,892 | 133,905 | 642 | 934 | ||||||||||||||||||||||||||
Consumer Construction | - | - | - | 13,709 | 13,709 | - | - | ||||||||||||||||||||||||||
Home Equity | - | - | - | 79,781 | 79,898 | 117 | 117 | ||||||||||||||||||||||||||
Other Consumer | 192 | - | 192 | 38,546 | 38,797 | 59 | 59 | ||||||||||||||||||||||||||
Subtotal | $ | 2,265 | $ | 292 | $ | 2,557 | $ | 623,215 | 638,800 | $ | 13,028 | $ | 13,320 | ||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 643,151 | |||||||||||||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 117 | $ | - | $ | 117 | $ | 24,545 | $ | 28,511 | $ | 3,849 | $ | 3,849 | |||||||||||||||||||
Owner-Occupied CRE | - | - | - | 92,498 | 97,755 | 5,257 | 5,257 | ||||||||||||||||||||||||||
Other CRE | - | - | - | 109,638 | 113,370 | 3,732 | 3,732 | ||||||||||||||||||||||||||
Commercial & Industrial | 683 | - | 683 | 102,257 | 104,332 | 1,392 | 1,392 | ||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,714 | - | 1,714 | 117,338 | 121,393 | 2,341 | 2,341 | ||||||||||||||||||||||||||
Consumer Construction | - | - | - | 12,123 | 12,123 | - | - | ||||||||||||||||||||||||||
Home Equity | 343 | 37 | 380 | 72,515 | 72,983 | 88 | 125 | ||||||||||||||||||||||||||
Other Consumer | 150 | - | 150 | 33,764 | 33,969 | 55 | 55 | ||||||||||||||||||||||||||
Subtotal | $ | 3,007 | $ | 37 | $ | 3,044 | $ | 564,678 | 584,436 | $ | 16,714 | $ | 16,751 | ||||||||||||||||||||
Deferred loan fees and costs, overdrafts, in-process accounts | 2,242 | ||||||||||||||||||||||||||||||||
Total Portfolio Loans | $ | 586,678 | |||||||||||||||||||||||||||||||
(1) All are accruing. | |||||||||||||||||||||||||||||||||
Impaired loans | Information regarding impaired loans as of September 30, 2013 and December 31, 2012 follows. | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Thousands of dollars | Recorded Balance | Unpaid Principal Balance | Specific Allowance | Recorded Balance | Unpaid Principal Balance | Specific Allowance | |||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 445 | $ | 753 | $ | - | $ | 654 | $ | 1,673 | $ | - | |||||||||||||||||||||
Owner-Occupied CRE | 947 | 1,334 | - | 4,181 | 6,267 | - | |||||||||||||||||||||||||||
Other CRE | 1,891 | 2,313 | - | 4,438 | 6,158 | - | |||||||||||||||||||||||||||
Commercial & Industrial | 1,262 | 3,315 | - | 1,640 | 3,992 | - | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 1,667 | 1,667 | - | 2,207 | 2,989 | - | |||||||||||||||||||||||||||
Home Equity | 170 | 170 | - | 232 | 232 | - | |||||||||||||||||||||||||||
Other Consumer | 175 | 175 | - | 157 | 157 | - | |||||||||||||||||||||||||||
Subtotal | 6,557 | 9,727 | - | 13,509 | 21,468 | - | |||||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,367 | 4,546 | 2,134 | 7,570 | 7,629 | 3,271 | |||||||||||||||||||||||||||
Owner-Occupied CRE | 3,314 | 6,489 | 1,874 | 6,082 | 7,495 | 2,904 | |||||||||||||||||||||||||||
Other CRE | 6,023 | 6,273 | 1,088 | 3,359 | 3,359 | 1,079 | |||||||||||||||||||||||||||
Commercial & Industrial | 2,266 | 3,077 | 781 | 409 | 409 | 274 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 2,893 | 2,893 | 719 | 3,354 | 3,817 | 771 | |||||||||||||||||||||||||||
Other Consumer | - | - | - | 5 | 5 | 5 | |||||||||||||||||||||||||||
Subtotal | 18,863 | 23,278 | 6,596 | 20,779 | 22,714 | 8,304 | |||||||||||||||||||||||||||
Total Impaired Loans | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,812 | 5,299 | 2,134 | 8,224 | 9,302 | 3,271 | |||||||||||||||||||||||||||
Owner-Occupied CRE | 4,261 | 7,823 | 1,874 | 10,263 | 13,762 | 2,904 | |||||||||||||||||||||||||||
Other CRE | 7,914 | 8,586 | 1,088 | 7,797 | 9,517 | 1,079 | |||||||||||||||||||||||||||
Commercial & Industrial | 3,528 | 6,392 | 781 | 2,049 | 4,401 | 274 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 4,560 | 4,560 | 719 | 5,561 | 6,806 | 771 | |||||||||||||||||||||||||||
Home Equity | 170 | 170 | - | 232 | 232 | - | |||||||||||||||||||||||||||
Other Consumer | 175 | 175 | - | 162 | 162 | 5 | |||||||||||||||||||||||||||
Total Impaired Loans | $ | 25,420 | $ | 33,005 | $ | 6,596 | $ | 34,288 | $ | 44,182 | $ | 8,304 | |||||||||||||||||||||
Information regarding average investment in impaired loans and interest income recognized on those loans for the three and nine month periods ended September 30, 2013 and 2012 is shown below. | |||||||||||||||||||||||||||||||||
Periods ended September 30, | 2013 | 2012 | |||||||||||||||||||||||||||||||
Thousands of dollars | Three Months | Year to Date | Three Months | Year to Date | |||||||||||||||||||||||||||||
Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | Average Investment in Impaired Loans | Interest Income Recognized | ||||||||||||||||||||||||||
Loans without a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | $ | 445 | $ | - | $ | 466 | $ | - | $ | 3,538 | $ | - | $ | 4,323 | $ | - | |||||||||||||||||
Owner-Occupied CRE | 948 | 3 | 1,912 | 21 | 2,438 | 12 | 2,777 | 51 | |||||||||||||||||||||||||
Other CRE | 3,980 | 21 | 4,143 | 34 | 5,215 | 6 | 9,672 | 124 | |||||||||||||||||||||||||
Commercial & Industrial | 1,265 | 7 | 964 | 17 | 1,715 | 9 | 1,839 | 29 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 993 | 7 | 1,122 | 24 | 1,312 | 6 | 1,274 | 17 | |||||||||||||||||||||||||
Home Equity | 3 | 1 | 8 | 3 | 25 | 1 | 25 | 4 | |||||||||||||||||||||||||
Other Consumer | 158 | - | 145 | - | 122 | - | 155 | - | |||||||||||||||||||||||||
Subtotal | 7,792 | 39 | 8,760 | 99 | 14,365 | 34 | 20,065 | 225 | |||||||||||||||||||||||||
Loans with a specific valuation allowance | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,385 | 18 | 5,458 | 95 | 8,285 | 89 | 8,443 | 298 | |||||||||||||||||||||||||
Owner-Occupied CRE | 3,319 | 19 | 3,407 | 59 | 6,803 | 47 | 6,668 | 114 | |||||||||||||||||||||||||
Other CRE | 3,966 | 43 | 3,546 | 111 | 3,432 | 36 | 4,331 | 140 | |||||||||||||||||||||||||
Commercial & Industrial | 2,272 | 9 | 2,141 | 71 | 712 | 8 | 888 | 34 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 3,404 | 29 | 3,480 | 103 | 4,555 | 32 | 4,099 | 96 | |||||||||||||||||||||||||
Home Equity | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other Consumer | - | - | - | - | 78 | - | 56 | 2 | |||||||||||||||||||||||||
Subtotal | 17,346 | 118 | 18,032 | 439 | 23,865 | 212 | 24,485 | 684 | |||||||||||||||||||||||||
Total Impaired Loans | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 4,830 | 18 | 5,924 | 95 | 11,823 | 89 | 12,766 | 298 | |||||||||||||||||||||||||
Owner-Occupied CRE | 4,267 | 22 | 5,319 | 80 | 9,241 | 59 | 9,445 | 165 | |||||||||||||||||||||||||
Other CRE | 7,946 | 64 | 7,689 | 145 | 8,647 | 42 | 14,003 | 264 | |||||||||||||||||||||||||
Commercial & Industrial | 3,537 | 16 | 3,105 | 88 | 2,427 | 17 | 2,727 | 63 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | 4,397 | 36 | 4,602 | 127 | 5,867 | 38 | 5,373 | 113 | |||||||||||||||||||||||||
Home Equity | 3 | 1 | 8 | 3 | 25 | 1 | 25 | 4 | |||||||||||||||||||||||||
Other Consumer | 158 | - | 145 | - | 200 | - | 211 | 2 | |||||||||||||||||||||||||
Total Impaired Loans | $ | 25,138 | $ | 157 | $ | 26,792 | $ | 538 | $ | 38,230 | $ | 246 | $ | 44,550 | $ | 909 | |||||||||||||||||
Troubled debt restructurings | The following tables present information regarding loans newly-classified as TDRs for the three and nine month periods ended September 30, 2013 and 2012. | ||||||||||||||||||||||||||||||||
Periods ended September 30, 2013 | Three Months | Nine Months | |||||||||||||||||||||||||||||||
Dollars in thousands | Total Number | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | Total Number | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||||||||||||||||||||||
of Loans | of Loans | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Owner-Occupied CRE | - | $ | - | $ | - | 2 | $ | 182 | $ | 182 | |||||||||||||||||||||||
Other CRE | 1 | 665 | 665 | 1 | 665 | 665 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | - | - | - | 4 | 800 | 800 | |||||||||||||||||||||||||||
Total | 1 | $ | 665 | $ | 665 | 7 | $ | 1,647 | $ | 1,647 | |||||||||||||||||||||||
Periods ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | - | $ | - | $ | - | 2 | $ | 400 | $ | 400 | |||||||||||||||||||||||
Owner-Occupied CRE | 1 | 645 | 645 | 6 | 1,271 | 1,271 | |||||||||||||||||||||||||||
Other CRE | - | - | - | 4 | 2,304 | 2,304 | |||||||||||||||||||||||||||
Commercial & Industrial | - | - | - | 1 | 190 | 190 | |||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Residential Mortgage | - | - | - | 2 | 224 | 224 | |||||||||||||||||||||||||||
Total | 1 | $ | 645 | $ | 645 | 15 | $ | 4,389 | $ | 4,389 | |||||||||||||||||||||||
The table below provides a breakdown of accruing restructured loans by type at September 30, 2013. The table also includes the average yield on accruing restructured loans and the yield for the entire portfolio, for commercial loans and residential mortgage and home equity loans, for the third quarter of 2013. | |||||||||||||||||||||||||||||||||
30-Sep-13 | Third Quarter 2013 | ||||||||||||||||||||||||||||||||
Dollars in thousands | Number of Loans | Recorded Balance | Avg. Yield | Portfolio Yield | |||||||||||||||||||||||||||||
CLD Loans | 4 | $ | 1,658 | ||||||||||||||||||||||||||||||
Other Commercial Loans | 12 | 5,021 | |||||||||||||||||||||||||||||||
Total Commercial Loans | 16 | 6,679 | 4.92 | % | 4.95 | % | |||||||||||||||||||||||||||
Residential Mortgage & Home Equity Loans | 20 | 3,918 | 3.59 | % | 4.75 | % | |||||||||||||||||||||||||||
Total Accruing Restructured Loans | 36 | $ | 10,597 | ||||||||||||||||||||||||||||||
The Company has no personal loans other than the loans described above that are classified as troubled debt restructurings. In determining the amount of the allowance for loan losses, all restructured loans are classified as impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. | |||||||||||||||||||||||||||||||||
For the third quarter and first nine months ended in 2013, there were no TDRs that subsequently defaulted within twelve months of being restructured. For the same periods in 2012, information is shown below regarding subsequent defaults. | |||||||||||||||||||||||||||||||||
Periods ended September 30, 2012 | Three Months | Nine Months | |||||||||||||||||||||||||||||||
Dollars in thousands | Number of Loans | Recorded Balance | Number of Loans | Recorded Balance | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial CLD | 1 | $ | 1,892 | 4 | $ | 3,423 | |||||||||||||||||||||||||||
Owner-Occupied CRE | - | - | 2 | 239 | |||||||||||||||||||||||||||||
Total | 1 | $ | 1,892 | 6 | $ | 3,662 |
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock Based Compensation [Abstract] | |||||||||||||||||
Stock incentive plan activity | The following tables show activity for the nine months ended September 30, 2013 for awards granted under the Incentive Plan: | ||||||||||||||||
Stock-Only Stock Appreciation Rights | |||||||||||||||||
Weighted | |||||||||||||||||
Awards | Avg. Exer- | ||||||||||||||||
Outstanding | cise Price | ||||||||||||||||
Balance at January 1 | 167,250 | $ | 3.33 | ||||||||||||||
Awards granted | 46,250 | 5.05 | |||||||||||||||
Awards exercised | (7,946 | ) | 3.33 | ||||||||||||||
Awards forfeited | (8,250 | ) | 3.63 | ||||||||||||||
Balance at September 30, 2013 | 197,304 | $ | 3.72 | ||||||||||||||
Restricted Stock | Restricted Stock Units | ||||||||||||||||
Awards | Grant Date | Awards | Grant Date | ||||||||||||||
Outstanding | Fair Value | Outstanding | Fair Value | ||||||||||||||
Nonvested at January 1 | 22,625 | $ | 3.35 | 46,795 | $ | 3.35 | |||||||||||
Awards granted | 10,500 | 5.05 | 54,582 | 5.05 | |||||||||||||
Awards vested | (22,625 | ) | 3.35 | - | - | ||||||||||||
Awards forfeited | - | - | (3,903 | ) | 4.24 | ||||||||||||
Nonvested at September 30 | 10,500 | $ | 5.05 | 97,474 | $ | 4.27 | |||||||||||
Fair value assumptions of SOSAR grants issued | The fair value of each SOSAR grant is estimated on the grant date using the Black-Scholes option pricing model. Grants were awarded in March of 2013 and 2012. Fair value of grants is based on the weighted-average assumptions shown in the following table. | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Dividend yield | 0 | % | 0 | % | |||||||||||||
Expected life in years | 5 | 5 | |||||||||||||||
Expected volatility | 28.8 | % | 37 | % | |||||||||||||
Risk-free interest rate | 0.72 | % | 0.84 | % | |||||||||||||
Fair value | $ | 1.345 | $ | 1.105 | |||||||||||||
Summary of stock option activity and options outstanding | The following summarizes year to date option activity for the 2005 Plan: | ||||||||||||||||
Options | Weighted Avg. | ||||||||||||||||
Stock Options | Outstanding | Exercise Price | |||||||||||||||
Balance at January 1, 2013 | 358,070 | $ | 21.32 | ||||||||||||||
Options expired | (25,434 | ) | 22.97 | ||||||||||||||
Options forfeited | (3,400 | ) | 12.71 | ||||||||||||||
Balance at September 30, 2013 | 329,236 | $ | 21.28 | ||||||||||||||
Loan_Servicing_Tables
Loan Servicing (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Loan Servicing [Abstract] | |||||||||||||||||
Components Of Managed Servicing Portfolio [Table Text Block] | Loans serviced for others are not included in the accompanying consolidated financial statements. The unpaid principal balance of loans serviced for others at September 30, 2013 and December 31, 2012 were as follows: | ||||||||||||||||
In thousands of dollars | 9/30/13 | 12/31/12 | Change | Percent | |||||||||||||
Total loans serviced | $ | 962,935 | $ | 853,761 | $ | 109,174 | 12.8 | % | |||||||||
Unamortized cost of loan servicing rights | Unamortized loan servicing rights are included in accrued interest receivable and other assets on the consolidated balance sheet, for the three and nine month periods ended September 30, 2013 and 2012, are shown below. | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
In thousands of dollars | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Balance at beginning of period | $ | 7,072 | $ | 5,855 | $ | 6,379 | $ | 5,405 | |||||||||
Amount capitalized | 627 | 780 | 2,205 | 2,029 | |||||||||||||
Amount amortized | (386 | ) | (509 | ) | (1,271 | ) | (1,308 | ) | |||||||||
Balance at September 30, | $ | 7,313 | $ | 6,126 | $ | 7,313 | $ | 6,126 | |||||||||
Fair value of servicing rights | The fair value of servicing rights was as follows: | ||||||||||||||||
In thousands of dollars | 9/30/13 | 9/30/12 | |||||||||||||||
Fair value, January 1 | $ | 8,285 | $ | 7,331 | |||||||||||||
Fair value, end of period | $ | 11,041 | $ | 7,848 |
Disclosures_About_Fair_Value_o1
Disclosures About Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair value measurements of assets on recurring basis | The following table presents the fair value measurements of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements were classified at September 30, 2013 and December 31, 2012, in thousands of dollars: | ||||||||||||||||
Thousands of dollars | Fair Value Measurements Using | ||||||||||||||||
30-Sep-13 | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Available for sale securities: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 25,767 | $ | - | $ | 25,767 | $ | - | |||||||||
Mortgage-backed agency securities | 154,243 | - | 154,243 | - | |||||||||||||
Obligations of states and political subdivisions | 24,790 | - | 24,790 | - | |||||||||||||
Equity securities | 27 | 27 | - | - | |||||||||||||
Hedged loan | 7,257 | - | 7,257 | - | |||||||||||||
Interest rate swap asset | 120 | - | 120 | - | |||||||||||||
31-Dec-12 | |||||||||||||||||
Available for sale securities: | |||||||||||||||||
U.S. Treasury and agency securities | $ | 27,316 | $ | - | $ | 27,316 | $ | - | |||||||||
Mortgage-backed agency securities | 160,499 | - | 160,499 | - | |||||||||||||
Obligations of states and political subdivisions | 18,286 | - | 18,286 | - | |||||||||||||
Equity securities | 28 | 28 | - | - | |||||||||||||
Schedule of fair value assets on nonrecurring basis | The following table presents the fair value measurements of assets recognized in the accompanying condensed consolidated balance sheets measured at fair value on a non-recurring basis and the level within the FASB ASC fair value hierarchy in which the fair value measurements fall at September 30, 2013 and December 31, 2012: | ||||||||||||||||
In thousands of dollars | Fair Value Measurements Using | ||||||||||||||||
Impaired Loans (Collateral Dependent): | Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||
30-Sep-13 | $ | 13,803 | $ | - | $ | - | $ | 13,803 | |||||||||
31-Dec-12 | 21,866 | - | - | 21,866 | |||||||||||||
Unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements as of September 30, 2013 and December 31, 2012. For both periods, the valuation technique used is market comparable properties and unobservable inputs are based on marketability discount at the rates shown. | ||||||||||||||||
Impaired loans (collateral dependent) | |||||||||||||||||
dollars in thousands | 9/30/13 | 12/31/12 | |||||||||||||||
Fair value | $ | 13,803 | $ | 21,866 | |||||||||||||
Range | 7.5%-49.5 | % | 7.5%-49.5 | % | |||||||||||||
Weighted average | 16.3 | % | 14 | % | |||||||||||||
Carrying amounts and estimated fair value of principal financial assets and liabilities | The carrying amounts and estimated fair value of principal financial assets and liabilities, in thousands of dollars, at September 30, 2013 and December 31, 2012, were as follows: | ||||||||||||||||
30-Sep-13 | |||||||||||||||||
Carrying | Fair Value Measurements Using | ||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets | |||||||||||||||||
Cash and cash equivalents | $ | 31,781 | $ | 31,781 | $ | - | $ | - | |||||||||
Securities available for sale | 204,827 | 27 | 204,800 | - | |||||||||||||
FHLB Stock | 2,691 | - | 2,691 | - | |||||||||||||
Loans held for sale | 8,388 | - | 8,388 | - | |||||||||||||
Net portfolio loans | 621,188 | - | 7,257 | 618,335 | |||||||||||||
Accrued interest receivable | 2,760 | - | 2,760 | - | |||||||||||||
Interest rate swap asset | 120 | - | 120 | - | |||||||||||||
Financial Liabilities | |||||||||||||||||
Total deposits | $ | (805,740 | ) | $ | (160,225 | ) | $ | (646,587 | ) | $ | - | ||||||
FHLB advances | (11,983 | ) | - | (12,595 | ) | - | |||||||||||
Other borrowings | (6,000 | ) | - | (6,000 | ) | - | |||||||||||
Accrued interest payable | (281 | ) | - | (281 | ) | - | |||||||||||
31-Dec-12 | |||||||||||||||||
Financial Assets | |||||||||||||||||
Cash and cash equivalents | $ | 70,612 | $ | 70,612 | $ | - | $ | - | |||||||||
Securities available for sale | 206,129 | 28 | 206,101 | - | |||||||||||||
FHLB Stock | 2,571 | - | 2,571 | - | |||||||||||||
Loans held for sale | 13,380 | - | 13,380 | - | |||||||||||||
Net portfolio loans | 564,135 | - | - | 574,137 | |||||||||||||
Accrued interest receivable | 2,620 | - | 2,620 | - | |||||||||||||
Financial Liabilities | |||||||||||||||||
Total deposits | $ | (784,643 | ) | $ | - | $ | (787,015 | ) | $ | - | |||||||
FHLB advances | (21,999 | ) | - | (23,007 | ) | - | |||||||||||
Accrued interest payable | (354 | ) | - | (354 | ) | - |
Securities_Details
Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Available-for-sale Securities [Abstract] | |||||
Amortized Cost | $205,451,000 | $205,451,000 | $203,606,000 | ||
Unrealized Gains | 1,910,000 | 3,196,000 | |||
Unrealized Losses | -2,534,000 | -673,000 | |||
Total Securities available for sale | 204,827,000 | 204,827,000 | 206,129,000 | ||
Available-for-sale securities in continuous unrealized loss position , fair value [Abstract] | |||||
Fair Value, Less than 12 Months | 111,256,000 | 111,256,000 | 59,610,000 | ||
Fair Value, 12 Months or Longer | 3,084,000 | 3,084,000 | 1,309,000 | ||
Fair Value, Total | 114,340,000 | 114,340,000 | 60,919,000 | ||
Available-for-sale securities in continuous unrealized loss position, aggregate losses [Abstract] | |||||
Losses, Less than 12 Months | -2,470,000 | -658,000 | |||
Losses, 12 Months or Longer | -64,000 | -15,000 | |||
Losses, Total | -2,534,000 | -673,000 | |||
Sales of available for sale securities [Abstract] | |||||
Sales proceeds | 0 | 0 | 11,752,000 | 2,847,000 | |
Gross gains on sales | 0 | 0 | 136,000 | 30,000 | |
Gross loss on sales | 0 | 0 | -97,000 | -26,000 | |
Available For Sale Securities Gross Realized Gains on Calls | 1,000 | 0 | 1,000 | 0 | |
Amortized Cost | |||||
Due in one year or less | 16,821,000 | 16,821,000 | |||
Due after one year through five years | 28,480,000 | 28,480,000 | |||
Due after five years through ten years | 5,919,000 | 5,919,000 | |||
Due after ten years | 0 | 0 | |||
Mortgage backed securities Amortized Cost | 154,205,000 | 154,205,000 | |||
Equity securities | 26,000 | 26,000 | |||
Amortized Cost | 205,451,000 | 205,451,000 | 203,606,000 | ||
Fair Value | |||||
Due in one year or less | 16,892,000 | 16,892,000 | |||
Due after one year through five years | 28,006,000 | 28,006,000 | |||
Due after five years through ten years | 5,659,000 | 5,659,000 | |||
Due after ten years | 0 | 0 | |||
Mortgage-backed agency securities | 154,243,000 | 154,243,000 | |||
Equity securities | 27,000 | 27,000 | |||
Total Securities available for sale | 204,827,000 | 204,827,000 | 206,129,000 | ||
Available-for-sale securities pledged to secure deposits | 1,000,000 | 1,000,000 | |||
Municipal Obligations Issued By Political Subdivisions | 12,100,000 | 12,100,000 | |||
Municipal Portfolio, Lenawee (Percentage) | 1.30% | 1.30% | |||
Municipal Portfolio, Washtenaw (Percentage) | 3.50% | 3.50% | |||
Municipal Portfolio, Monroe (Percentage) | 1.10% | 1.10% | |||
U.S. Treasury and agency securities [Member] | |||||
Available-for-sale Securities [Abstract] | |||||
Amortized Cost | 26,556,000 | 26,556,000 | 27,200,000 | ||
Unrealized Gains | 34,000 | 130,000 | |||
Unrealized Losses | -823,000 | -14,000 | |||
Total Securities available for sale | 25,767,000 | 25,767,000 | 27,316,000 | ||
Available-for-sale securities in continuous unrealized loss position , fair value [Abstract] | |||||
Fair Value, Less than 12 Months | 18,643,000 | 18,643,000 | 4,131,000 | ||
Fair Value, 12 Months or Longer | 0 | 0 | 0 | ||
Fair Value, Total | 18,643,000 | 18,643,000 | 4,131,000 | ||
Available-for-sale securities in continuous unrealized loss position, aggregate losses [Abstract] | |||||
Losses, Less than 12 Months | -823,000 | -14,000 | |||
Losses, 12 Months or Longer | 0 | 0 | |||
Losses, Total | -823,000 | -14,000 | |||
Amortized Cost | |||||
Amortized Cost | 26,556,000 | 26,556,000 | 27,200,000 | ||
Fair Value | |||||
Total Securities available for sale | 25,767,000 | 25,767,000 | 27,316,000 | ||
Mortgage-backed agency securities [Member] | |||||
Available-for-sale Securities [Abstract] | |||||
Amortized Cost | 154,205,000 | 154,205,000 | 158,829,000 | ||
Unrealized Gains | 1,407,000 | 2,324,000 | |||
Unrealized Losses | -1,369,000 | -654,000 | |||
Total Securities available for sale | 154,243,000 | 154,243,000 | 160,499,000 | ||
Available-for-sale securities in continuous unrealized loss position , fair value [Abstract] | |||||
Fair Value, Less than 12 Months | 84,078,000 | 84,078,000 | 54,538,000 | ||
Fair Value, 12 Months or Longer | 3,084,000 | 3,084,000 | 1,309,000 | ||
Fair Value, Total | 87,162,000 | 87,162,000 | 55,847,000 | ||
Available-for-sale securities in continuous unrealized loss position, aggregate losses [Abstract] | |||||
Losses, Less than 12 Months | -1,305,000 | -639,000 | |||
Losses, 12 Months or Longer | -64,000 | -15,000 | |||
Losses, Total | -1,369,000 | -654,000 | |||
Amortized Cost | |||||
Amortized Cost | 154,205,000 | 154,205,000 | 158,829,000 | ||
Fair Value | |||||
Total Securities available for sale | 154,243,000 | 154,243,000 | 160,499,000 | ||
Obligations of states and political subdivisions [Member] | |||||
Available-for-sale Securities [Abstract] | |||||
Amortized Cost | 24,664,000 | 24,664,000 | 17,551,000 | ||
Unrealized Gains | 468,000 | 740,000 | |||
Unrealized Losses | -342,000 | -5,000 | |||
Total Securities available for sale | 24,790,000 | 24,790,000 | 18,286,000 | ||
Available-for-sale securities in continuous unrealized loss position , fair value [Abstract] | |||||
Fair Value, Less than 12 Months | 8,535,000 | 8,535,000 | 941,000 | ||
Fair Value, 12 Months or Longer | 0 | 0 | 0 | ||
Fair Value, Total | 8,535,000 | 8,535,000 | 941,000 | ||
Available-for-sale securities in continuous unrealized loss position, aggregate losses [Abstract] | |||||
Losses, Less than 12 Months | -342,000 | -5,000 | |||
Losses, 12 Months or Longer | 0 | 0 | |||
Losses, Total | -342,000 | -5,000 | |||
Amortized Cost | |||||
Amortized Cost | 24,664,000 | 24,664,000 | 17,551,000 | ||
Fair Value | |||||
Total Securities available for sale | 24,790,000 | 24,790,000 | 18,286,000 | ||
Equity securities [Member] | |||||
Available-for-sale Securities [Abstract] | |||||
Amortized Cost | 26,000 | 26,000 | 26,000 | ||
Unrealized Gains | 1,000 | 2,000 | |||
Unrealized Losses | 0 | 0 | |||
Total Securities available for sale | 27,000 | 27,000 | 28,000 | ||
Amortized Cost | |||||
Amortized Cost | 26,000 | 26,000 | 26,000 | ||
Fair Value | |||||
Total Securities available for sale | $27,000 | $27,000 | $28,000 |
Loans_Details
Loans (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | $643,151 | $586,678 |
Total portfolio loans (in hundredths) | 100.00% | 100.00% |
Owner-Occupied CRE [Member] | Commercial & Tax-exempt Loans [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 109,144 | 97,755 |
Total portfolio loans (in hundredths) | 17.00% | 16.70% |
Other CRE [Member] | Commercial & Tax-exempt Loans [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 140,686 | 113,370 |
Total portfolio loans (in hundredths) | 21.90% | 19.30% |
Commercial & Industrial [Member] | Commercial & Tax-exempt Loans [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 104,133 | 104,332 |
Total portfolio loans (in hundredths) | 16.20% | 17.80% |
Consumer Construction [Member] | Consumer Loan [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 13,709 | 12,123 |
Total portfolio loans (in hundredths) | 2.10% | 2.10% |
Home Equity [Member] | Consumer Loan [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 79,898 | 72,983 |
Total portfolio loans (in hundredths) | 12.40% | 12.40% |
Other Consumer [Member] | Consumer Loan [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 38,797 | 33,969 |
Total portfolio loans (in hundredths) | 6.00% | 5.80% |
Residential mortgage [Member] | Consumer Loan [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 133,905 | 121,393 |
Total portfolio loans (in hundredths) | 20.80% | 20.60% |
Construction and development [Member] | Commercial & Tax-exempt Loans [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | 18,528 | 28,511 |
Total portfolio loans (in hundredths) | 2.90% | 4.90% |
Deferred loan fees and costs [Member] | ||
Loans categories and percentage composition of portfolio [Abstract] | ||
Total portfolio loans | $4,351 | $2,242 |
Total portfolio loans (in hundredths) | 0.70% | 0.40% |
Allowance_for_Loan_Losses_and_2
Allowance for Loan Losses and Credit Risk (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Minimum days shortfall or delay in payment encourage evaluation of loan for impairment | 30 days | |||||||||
Minimum days shortfall or delay in payment loans moved to nonaccrual status | 90 days | |||||||||
Minimum period due to impaired loans charged off | 120 days | |||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | $22,001 | $22,097 | $22,543 | $20,633 | ||||||
Provision charged to expense | 300 | 2,000 | 1,900 | 6,650 | ||||||
Net provision after amounts related to change in allocation methodology | 300 | 2,000 | 1,900 | 6,650 | ||||||
Losses charged off | -668 | -2,380 | -4,508 | -6,843 | ||||||
Recoveries | 330 | 743 | 2,028 | 2,020 | ||||||
Balance, end of period | 21,963 | 22,460 | 21,963 | 22,460 | 22,543 | |||||
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 6,596 | 6,596 | 8,304 | |||||||
Ending balance: collectively evaluated for impairment | 15,367 | 15,367 | 14,239 | |||||||
Total Allowance for Loan Losses | 21,963 | 22,460 | 21,963 | 22,460 | 22,543 | |||||
Total loans: [Abstract] | ||||||||||
Ending balance | 643,151 | 643,151 | 586,678 | |||||||
Ending balance: individually evaluated for impairment | 25,420 | 25,420 | 34,288 | |||||||
Ending balance: collectively evaluated for impairment | 617,731 | 617,731 | 552,390 | |||||||
CLD [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 2,925 | [1] | 4,587 | [1] | 4,216 | [1] | 3,676 | [1] | ||
Provision charged to expense | -163 | [1] | 496 | [1] | -1,414 | [1] | 1,945 | [1] | ||
Net provision after amounts related to change in allocation methodology | -163 | [1] | 496 | [1] | -1,414 | [1] | 1,945 | [1] | ||
Losses charged off | -8 | [1] | -110 | [1] | -808 | [1] | -868 | [1] | ||
Recoveries | 244 | [1] | 80 | [1] | 1,004 | [1] | 300 | [1] | ||
Balance, end of period | 2,998 | [1] | 5,053 | [1] | 2,998 | [1] | 5,053 | [1] | 4,216 | [1] |
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 2,134 | [1] | 2,134 | [1] | 3,271 | [1] | ||||
Ending balance: collectively evaluated for impairment | 864 | [1] | 864 | [1] | 945 | [1] | ||||
Total Allowance for Loan Losses | 2,998 | [1] | 5,053 | [1] | 2,998 | [1] | 5,053 | [1] | 4,216 | [1] |
Total loans: [Abstract] | ||||||||||
Ending balance | 32,237 | [1] | 32,237 | [1] | 40,634 | [1] | ||||
Ending balance: individually evaluated for impairment | 4,812 | [1] | 4,812 | [1] | 8,224 | [1] | ||||
Ending balance: collectively evaluated for impairment | 27,425 | [1] | 27,425 | [1] | 32,410 | [1] | ||||
Owner-Occupied CRE [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 4,509 | [2] | 4,778 | [2] | 5,093 | [2] | 3,875 | [2] | ||
Provision charged to expense | 1 | [2] | 1,007 | [2] | 808 | [2] | 1,942 | [2] | ||
Net provision after amounts related to change in allocation methodology | 1 | [2] | 1,007 | [2] | 808 | [2] | 1,942 | [2] | ||
Losses charged off | -92 | [2] | -1,009 | [2] | -1,830 | [2] | -1,067 | [2] | ||
Recoveries | 8 | [2] | 5 | [2] | 355 | [2] | 31 | [2] | ||
Balance, end of period | 4,426 | [2] | 4,781 | [2] | 4,426 | [2] | 4,781 | [2] | 5,093 | [2] |
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 1,874 | [2] | 1,874 | [2] | 2,904 | [2] | ||||
Ending balance: collectively evaluated for impairment | 2,552 | [2] | 2,552 | [2] | 2,189 | [2] | ||||
Total Allowance for Loan Losses | 4,426 | [2] | 4,781 | [2] | 4,426 | [2] | 4,781 | [2] | 5,093 | [2] |
Total loans: [Abstract] | ||||||||||
Ending balance | 110,417 | [2] | 110,417 | [2] | 102,579 | [2] | ||||
Ending balance: individually evaluated for impairment | 4,261 | [2] | 4,261 | [2] | 10,263 | [2] | ||||
Ending balance: collectively evaluated for impairment | 106,156 | [2] | 106,156 | [2] | 92,316 | [2] | ||||
Other CRE [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 5,445 | [2] | 4,845 | [2] | 4,708 | [2] | 4,721 | [2] | ||
Provision charged to expense | -26 | [2] | 97 | [2] | 559 | [2] | 1,940 | [2] | ||
Net provision after amounts related to change in allocation methodology | -26 | [2] | 97 | [2] | 559 | [2] | 1,940 | [2] | ||
Losses charged off | -35 | [2] | -239 | [2] | -73 | [2] | -2,056 | [2] | ||
Recoveries | 3 | [2] | 174 | [2] | 193 | [2] | 272 | [2] | ||
Balance, end of period | 5,387 | [2] | 4,877 | [2] | 5,387 | [2] | 4,877 | [2] | 4,708 | [2] |
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 1,088 | [2] | 1,088 | [2] | 1,079 | [2] | ||||
Ending balance: collectively evaluated for impairment | 4,299 | [2] | 4,299 | [2] | 3,629 | [2] | ||||
Total Allowance for Loan Losses | 5,387 | [2] | 4,877 | [2] | 5,387 | [2] | 4,877 | [2] | 4,708 | [2] |
Total loans: [Abstract] | ||||||||||
Ending balance | 164,457 | [2] | 164,457 | [2] | 131,004 | [2] | ||||
Ending balance: individually evaluated for impairment | 7,914 | [2] | 7,914 | [2] | 7,797 | [2] | ||||
Ending balance: collectively evaluated for impairment | 156,543 | [2] | 156,543 | [2] | 123,207 | [2] | ||||
Commercial & Industrial [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 4,482 | 4,355 | 4,131 | 4,741 | ||||||
Provision charged to expense | 414 | 202 | 1,415 | 11 | ||||||
Net provision after amounts related to change in allocation methodology | 414 | 202 | 1,415 | 11 | ||||||
Losses charged off | -367 | -719 | -1,118 | -1,419 | ||||||
Recoveries | 8 | 335 | 109 | 840 | ||||||
Balance, end of period | 4,537 | 4,173 | 4,537 | 4,173 | 4,131 | |||||
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 781 | 781 | 274 | |||||||
Ending balance: collectively evaluated for impairment | 3,756 | 3,756 | 3,857 | |||||||
Total Allowance for Loan Losses | 4,537 | 4,173 | 4,537 | 4,173 | 4,131 | |||||
Total loans: [Abstract] | ||||||||||
Ending balance | 104,231 | 104,231 | 98,385 | |||||||
Ending balance: individually evaluated for impairment | 3,528 | 3,528 | 2,049 | |||||||
Ending balance: collectively evaluated for impairment | 100,703 | 100,703 | 96,336 | |||||||
Residential Mortgage [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 2,456 | 1,808 | 2,456 | 1,931 | ||||||
Provision charged to expense | -12 | 206 | 55 | 659 | ||||||
Net provision after amounts related to change in allocation methodology | -12 | 206 | 55 | 659 | ||||||
Losses charged off | -77 | -216 | -200 | -855 | ||||||
Recoveries | 1 | 80 | 57 | 143 | ||||||
Balance, end of period | 2,368 | 1,878 | 2,368 | 1,878 | 2,456 | |||||
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 719 | 719 | 771 | |||||||
Ending balance: collectively evaluated for impairment | 1,649 | 1,649 | 1,685 | |||||||
Total Allowance for Loan Losses | 2,368 | 1,878 | 2,368 | 1,878 | 2,456 | |||||
Total loans: [Abstract] | ||||||||||
Ending balance | 106,723 | 106,723 | 101,656 | |||||||
Ending balance: individually evaluated for impairment | 4,560 | 4,560 | 5,561 | |||||||
Ending balance: collectively evaluated for impairment | 102,163 | 102,163 | 96,095 | |||||||
Personal Loans [Member] | ||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||
Balance, beginning of period | 2,184 | 1,724 | 1,939 | 1,689 | ||||||
Provision charged to expense | 86 | -8 | 477 | 153 | ||||||
Net provision after amounts related to change in allocation methodology | 86 | -8 | 477 | 153 | ||||||
Losses charged off | -89 | -87 | -479 | -578 | ||||||
Recoveries | 66 | 69 | 310 | 434 | ||||||
Balance, end of period | 2,247 | 1,698 | 2,247 | 1,698 | 1,939 | |||||
Allowance for Loan Losses: [Abstract] | ||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 5 | |||||||
Ending balance: collectively evaluated for impairment | 2,247 | 2,247 | 1,934 | |||||||
Total Allowance for Loan Losses | 2,247 | 1,698 | 2,247 | 1,698 | 1,939 | |||||
Total loans: [Abstract] | ||||||||||
Ending balance | 125,086 | 125,086 | 112,420 | |||||||
Ending balance: individually evaluated for impairment | 345 | 345 | 394 | |||||||
Ending balance: collectively evaluated for impairment | $124,741 | $124,741 | $112,026 | |||||||
[1] | Construction and Land Development loans | |||||||||
[2] | Commercial Real Estate loans |
Allowance_for_Loan_Losses_and_3
Allowance for Loan Losses and Credit Risk, Credit Exposure and Quality Indicators (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | $638,800 | $584,436 | ||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | 2,242 | ||
Portfolio loans | 643,151 | 586,678 | ||
CLD [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Portfolio loans | 32,237 | [1] | 40,634 | [1] |
Owner-Occupied CRE [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Portfolio loans | 110,417 | [2] | 102,579 | [2] |
Other CRE [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Portfolio loans | 164,457 | [2] | 131,004 | [2] |
Commercial And Industrial [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Portfolio loans | 104,231 | 98,385 | ||
Residential Mortgage [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Portfolio loans | 106,723 | 101,656 | ||
Commercial [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 372,491 | 343,968 | ||
Commercial [Member] | Pass [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 315,247 | 269,476 | ||
Commercial [Member] | Special Mention [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 31,008 | 41,065 | ||
Commercial [Member] | Substandard [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 25,721 | 32,905 | ||
Commercial [Member] | Doubtful [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 515 | 522 | ||
Commercial [Member] | Loss [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | CLD [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 18,528 | 28,511 | ||
Commercial [Member] | CLD [Member] | Pass [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 7,930 | 12,813 | ||
Commercial [Member] | CLD [Member] | Special Mention [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 5,110 | 7,378 | ||
Commercial [Member] | CLD [Member] | Substandard [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 5,008 | 7,840 | ||
Commercial [Member] | CLD [Member] | Doubtful [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 480 | 480 | ||
Commercial [Member] | CLD [Member] | Loss [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 109,144 | 97,755 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Pass [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 96,748 | 78,507 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Special Mention [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 6,600 | 11,510 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Substandard [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 5,796 | 7,738 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Doubtful [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | Loss [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | Other CRE [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 140,686 | 113,370 | ||
Commercial [Member] | Other CRE [Member] | Pass [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 118,953 | 86,445 | ||
Commercial [Member] | Other CRE [Member] | Special Mention [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 13,671 | 17,073 | ||
Commercial [Member] | Other CRE [Member] | Substandard [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 8,062 | 9,852 | ||
Commercial [Member] | Other CRE [Member] | Doubtful [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | Other CRE [Member] | Loss [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Commercial [Member] | Commercial And Industrial [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 104,133 | 104,332 | ||
Commercial [Member] | Commercial And Industrial [Member] | Pass [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 91,616 | 91,711 | ||
Commercial [Member] | Commercial And Industrial [Member] | Special Mention [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 5,627 | 5,104 | ||
Commercial [Member] | Commercial And Industrial [Member] | Substandard [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 6,855 | 7,475 | ||
Commercial [Member] | Commercial And Industrial [Member] | Doubtful [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 35 | 42 | ||
Commercial [Member] | Commercial And Industrial [Member] | Loss [Member] | Commercial & Tax-exempt Loans [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Consumer [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 266,309 | 240,468 | ||
Consumer [Member] | Performing [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 260,010 | 232,302 | ||
Consumer [Member] | Nonperforming [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 1,110 | 2,521 | ||
Consumer [Member] | Accruing restructured [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 3,918 | 3,438 | ||
Consumer [Member] | Delinquent Less Than 90 Days [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 1,271 | 2,207 | ||
Consumer [Member] | Consumer Construction [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 13,709 | 12,123 | ||
Consumer [Member] | Consumer Construction [Member] | Performing [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 13,709 | 12,123 | ||
Consumer [Member] | Consumer Construction [Member] | Nonperforming [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Consumer [Member] | Consumer Construction [Member] | Accruing restructured [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Consumer [Member] | Consumer Construction [Member] | Delinquent Less Than 90 Days [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 38,797 | 33,969 | ||
Consumer [Member] | Other Consumer [Member] | Performing [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 38,546 | 33,764 | ||
Consumer [Member] | Other Consumer [Member] | Nonperforming [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 59 | 55 | ||
Consumer [Member] | Other Consumer [Member] | Accruing restructured [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 0 | ||
Consumer [Member] | Other Consumer [Member] | Delinquent Less Than 90 Days [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 192 | 150 | ||
Consumer [Member] | Home Equity [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 79,898 | 72,983 | ||
Consumer [Member] | Home Equity [Member] | Performing [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 79,611 | 72,344 | ||
Consumer [Member] | Home Equity [Member] | Nonperforming [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 117 | 125 | ||
Consumer [Member] | Home Equity [Member] | Accruing restructured [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 170 | 171 | ||
Consumer [Member] | Home Equity [Member] | Delinquent Less Than 90 Days [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 0 | 343 | ||
Consumer [Member] | Residential Mortgage [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 133,905 | 121,393 | ||
Consumer [Member] | Residential Mortgage [Member] | Performing [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 128,144 | 114,071 | ||
Consumer [Member] | Residential Mortgage [Member] | Nonperforming [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 934 | 2,341 | ||
Consumer [Member] | Residential Mortgage [Member] | Accruing restructured [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | 3,748 | 3,267 | ||
Consumer [Member] | Residential Mortgage [Member] | Delinquent Less Than 90 Days [Member] | Consumer Loan [Member] | ||||
Quality indicators for portfolio of loans [Line Items] | ||||
Subtotal | $1,079 | $1,714 | ||
[1] | Construction and Land Development loans | |||
[2] | Commercial Real Estate loans |
Allowance_for_Loan_Losses_and_4
Allowance for Loan Losses and Credit Risk, Portfolio Aging Analysis (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | $2,265 | $3,007 | ||
Delinquent loans, 90 days and over (a) | 292 | [1] | 37 | [1] |
Delinquent loans, total past due (b) | 2,557 | 3,044 | ||
Current (c-b-d) | 623,215 | 564,678 | ||
Total portfolio loans (c) | 638,800 | 584,436 | ||
Nonaccrual loans (d) | 13,028 | 16,714 | ||
Financing Receivable Recorded Investment Nonperforming Status | 13,320 | 16,751 | ||
Deferred loan fees and costs, overdrafts, in-process accounts | 4,351 | 2,242 | ||
Total portfolio loans | 643,151 | 586,678 | ||
Commercial [Member] | CLD [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 0 | 117 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 0 | 117 | ||
Current (c-b-d) | 14,620 | 24,545 | ||
Total portfolio loans (c) | 18,528 | 28,511 | ||
Nonaccrual loans (d) | 3,908 | 3,849 | ||
Financing Receivable Recorded Investment Nonperforming Status | 3,908 | 3,849 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 569 | 0 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 569 | 0 | ||
Current (c-b-d) | 105,846 | 92,498 | ||
Total portfolio loans (c) | 109,144 | 97,755 | ||
Nonaccrual loans (d) | 2,729 | 5,257 | ||
Financing Receivable Recorded Investment Nonperforming Status | 2,729 | 5,257 | ||
Commercial [Member] | Other CRE [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 300 | 0 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 300 | 0 | ||
Current (c-b-d) | 137,718 | 109,638 | ||
Total portfolio loans (c) | 140,686 | 113,370 | ||
Nonaccrual loans (d) | 2,668 | 3,732 | ||
Financing Receivable Recorded Investment Nonperforming Status | 2,668 | 3,732 | ||
Commercial [Member] | Commercial And Industrial [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 125 | 683 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 125 | 683 | ||
Current (c-b-d) | 101,103 | 102,257 | ||
Total portfolio loans (c) | 104,133 | 104,332 | ||
Nonaccrual loans (d) | 2,905 | 1,392 | ||
Financing Receivable Recorded Investment Nonperforming Status | 2,905 | 1,392 | ||
Consumer [Member] | Residential Mortgage [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 1,079 | 1,714 | ||
Delinquent loans, 90 days and over (a) | 292 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 1,371 | 1,714 | ||
Current (c-b-d) | 131,892 | 117,338 | ||
Total portfolio loans (c) | 133,905 | 121,393 | ||
Nonaccrual loans (d) | 642 | 2,341 | ||
Financing Receivable Recorded Investment Nonperforming Status | 934 | 2,341 | ||
Consumer [Member] | Consumer Construction [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 0 | 0 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 0 | 0 | ||
Current (c-b-d) | 13,709 | 12,123 | ||
Total portfolio loans (c) | 13,709 | 12,123 | ||
Nonaccrual loans (d) | 0 | 0 | ||
Financing Receivable Recorded Investment Nonperforming Status | 0 | 0 | ||
Consumer [Member] | Home Equity [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 0 | 343 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 37 | [1] |
Delinquent loans, total past due (b) | 0 | 380 | ||
Current (c-b-d) | 79,781 | 72,515 | ||
Total portfolio loans (c) | 79,898 | 72,983 | ||
Nonaccrual loans (d) | 117 | 88 | ||
Financing Receivable Recorded Investment Nonperforming Status | 117 | 125 | ||
Consumer [Member] | Other Consumer [Member] | ||||
Loan portfolio aging analysis [Abstract] | ||||
Financing Receivable Recorded Investment 30 To 89 Days Past Due | 192 | 150 | ||
Delinquent loans, 90 days and over (a) | 0 | [1] | 0 | [1] |
Delinquent loans, total past due (b) | 192 | 150 | ||
Current (c-b-d) | 38,546 | 33,764 | ||
Total portfolio loans (c) | 38,797 | 33,969 | ||
Nonaccrual loans (d) | 59 | 55 | ||
Financing Receivable Recorded Investment Nonperforming Status | $59 | $55 | ||
[1] | All are accruing |
Allowance_for_Loan_Losses_and_5
Allowance for Loan Losses and Credit Risk, Impaired Loans (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Loans without a specific valuation allowance | ||||||
Recorded balance | $6,557 | $6,557 | $6,557 | $13,509 | ||
Unpaid principal balance | 9,727 | 9,727 | 9,727 | 21,468 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 7,792 | 14,365 | 8,760 | 20,065 | ||
Interest income recognized | 39 | 34 | 99 | 225 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 18,863 | 18,863 | 18,863 | 20,779 | ||
Unpaid principal balance | 23,278 | 23,278 | 23,278 | 22,714 | ||
Specific allowance | 6,596 | 6,596 | 6,596 | 8,304 | ||
Average investment in impaired loans | 17,346 | 23,865 | 18,032 | 24,485 | ||
Interest income recognized | 118 | 212 | 439 | 684 | ||
Total Impaired Loans | ||||||
Recorded balance | 25,420 | 25,420 | 25,420 | 34,288 | ||
Unpaid principal balance | 33,005 | 33,005 | 33,005 | 44,182 | ||
Specific allowance | 6,596 | 6,596 | 6,596 | 8,304 | ||
Average investment in impaired loans | 25,138 | 38,230 | 26,792 | 44,550 | ||
Interest income recognized | 157 | 246 | 538 | 909 | ||
Minimum satisfactory period required to returning nonaccrual to accrual status | 6 months | |||||
Commercial [Member] | CLD [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 445 | 445 | 445 | 654 | ||
Unpaid principal balance | 753 | 753 | 753 | 1,673 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 445 | 3,538 | 466 | 4,323 | ||
Interest income recognized | 0 | 0 | 0 | 0 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 4,367 | 4,367 | 4,367 | 7,570 | ||
Unpaid principal balance | 4,546 | 4,546 | 4,546 | 7,629 | ||
Specific allowance | 2,134 | 2,134 | 2,134 | 3,271 | ||
Average investment in impaired loans | 4,385 | 8,285 | 5,458 | 8,443 | ||
Interest income recognized | 18 | 89 | 95 | 298 | ||
Total Impaired Loans | ||||||
Recorded balance | 4,812 | 4,812 | 4,812 | 8,224 | ||
Unpaid principal balance | 5,299 | 5,299 | 5,299 | 9,302 | ||
Specific allowance | 2,134 | 2,134 | 2,134 | 3,271 | ||
Average investment in impaired loans | 4,830 | 11,823 | 5,924 | 12,766 | ||
Interest income recognized | 18 | 89 | 95 | 298 | ||
Commercial [Member] | Owner-Occupied CRE [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 947 | 947 | 947 | 4,181 | ||
Unpaid principal balance | 1,334 | 1,334 | 1,334 | 6,267 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 948 | 2,438 | 1,912 | 2,777 | ||
Interest income recognized | 3 | 12 | 21 | 51 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 3,314 | 3,314 | 3,314 | 6,082 | ||
Unpaid principal balance | 6,489 | 6,489 | 6,489 | 7,495 | ||
Specific allowance | 1,874 | 1,874 | 1,874 | 2,904 | ||
Average investment in impaired loans | 3,319 | 6,803 | 3,407 | 6,668 | ||
Interest income recognized | 19 | 47 | 59 | 114 | ||
Total Impaired Loans | ||||||
Recorded balance | 4,261 | 4,261 | 4,261 | 10,263 | ||
Unpaid principal balance | 7,823 | 7,823 | 7,823 | 13,762 | ||
Specific allowance | 1,874 | 1,874 | 1,874 | 2,904 | ||
Average investment in impaired loans | 4,267 | 9,241 | 5,319 | 9,445 | ||
Interest income recognized | 22 | 59 | 80 | 165 | ||
Commercial [Member] | Other CRE [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 1,891 | 1,891 | 1,891 | 4,438 | ||
Unpaid principal balance | 2,313 | 2,313 | 2,313 | 6,158 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 3,980 | 5,215 | 4,143 | 9,672 | ||
Interest income recognized | 21 | 6 | 34 | 124 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 6,023 | 6,023 | 6,023 | 3,359 | ||
Unpaid principal balance | 6,273 | 6,273 | 6,273 | 3,359 | ||
Specific allowance | 1,088 | 1,088 | 1,088 | 1,079 | ||
Average investment in impaired loans | 3,966 | 3,432 | 3,546 | 4,331 | ||
Interest income recognized | 43 | 36 | 111 | 140 | ||
Total Impaired Loans | ||||||
Recorded balance | 7,914 | 7,914 | 7,914 | 7,797 | ||
Unpaid principal balance | 8,586 | 8,586 | 8,586 | 9,517 | ||
Specific allowance | 1,088 | 1,088 | 1,088 | 1,079 | ||
Average investment in impaired loans | 7,946 | 8,647 | 7,689 | 14,003 | ||
Interest income recognized | 64 | 42 | 145 | 264 | ||
Commercial [Member] | Commercial And Industrial [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 1,262 | 1,262 | 1,262 | 1,640 | ||
Unpaid principal balance | 3,315 | 3,315 | 3,315 | 3,992 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 1,265 | 1,715 | 964 | 1,839 | ||
Interest income recognized | 7 | 9 | 17 | 29 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 2,266 | 2,266 | 2,266 | 409 | ||
Unpaid principal balance | 3,077 | 3,077 | 3,077 | 409 | ||
Specific allowance | 781 | 781 | 781 | 274 | ||
Average investment in impaired loans | 2,272 | 712 | 2,141 | 888 | ||
Interest income recognized | 9 | 8 | 71 | 34 | ||
Total Impaired Loans | ||||||
Recorded balance | 3,528 | 3,528 | 3,528 | 2,049 | ||
Unpaid principal balance | 6,392 | 6,392 | 6,392 | 4,401 | ||
Specific allowance | 781 | 781 | 781 | 274 | ||
Average investment in impaired loans | 3,537 | 2,427 | 3,105 | 2,727 | ||
Interest income recognized | 16 | 17 | 88 | 63 | ||
Consumer [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 170 | 170 | 170 | 232 | ||
Unpaid principal balance | 170 | 170 | 170 | 232 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Total Impaired Loans | ||||||
Recorded balance | 170 | 170 | 170 | 232 | ||
Unpaid principal balance | 170 | 170 | 170 | 232 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Consumer [Member] | Residential Mortgage [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 1,667 | 1,667 | 1,667 | 2,207 | ||
Unpaid principal balance | 1,667 | 1,667 | 1,667 | 2,989 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 993 | 1,312 | 1,122 | 1,274 | ||
Interest income recognized | 7 | 6 | 24 | 17 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 2,893 | 2,893 | 2,893 | 3,354 | ||
Unpaid principal balance | 2,893 | 2,893 | 2,893 | 3,817 | ||
Specific allowance | 719 | 719 | 719 | 771 | ||
Average investment in impaired loans | 3,404 | 4,555 | 3,480 | 4,099 | ||
Interest income recognized | 29 | 32 | 103 | 96 | ||
Total Impaired Loans | ||||||
Recorded balance | 4,560 | 4,560 | 4,560 | 5,561 | ||
Unpaid principal balance | 4,560 | 4,560 | 4,560 | 6,806 | ||
Specific allowance | 719 | 719 | 719 | 771 | ||
Average investment in impaired loans | 4,397 | 5,867 | 4,602 | 5,373 | ||
Interest income recognized | 36 | 38 | 127 | 113 | ||
Consumer [Member] | Home Equity [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Average investment in impaired loans | 3 | 25 | 8 | 25 | ||
Interest income recognized | 1 | 1 | 3 | 4 | ||
Loans with a specific valuation allowance | ||||||
Average investment in impaired loans | 0 | 0 | 0 | 0 | ||
Interest income recognized | 0 | 0 | 0 | 0 | ||
Total Impaired Loans | ||||||
Average investment in impaired loans | 3 | 25 | 8 | 25 | ||
Interest income recognized | 1 | 1 | 3 | 4 | ||
Consumer [Member] | Other Consumer [Member] | ||||||
Loans without a specific valuation allowance | ||||||
Recorded balance | 175 | 175 | 175 | 157 | ||
Unpaid principal balance | 175 | 175 | 175 | 157 | ||
Specific allowance | 0 | 0 | 0 | 0 | ||
Average investment in impaired loans | 158 | 122 | 145 | 155 | ||
Interest income recognized | 0 | 0 | 0 | 0 | ||
Loans with a specific valuation allowance | ||||||
Recorded balance | 0 | 0 | 0 | 5 | ||
Unpaid principal balance | 0 | 0 | 0 | 5 | ||
Specific allowance | 0 | 0 | 0 | 5 | ||
Average investment in impaired loans | 0 | 78 | 0 | 56 | ||
Interest income recognized | 0 | 0 | 0 | 2 | ||
Total Impaired Loans | ||||||
Recorded balance | 175 | 175 | 175 | 162 | ||
Unpaid principal balance | 175 | 175 | 175 | 162 | ||
Specific allowance | 0 | 0 | 0 | 5 | ||
Average investment in impaired loans | 158 | 200 | 145 | 211 | ||
Interest income recognized | $0 | $0 | $0 | $2 |
Allowance_for_Loan_Losses_and_6
Allowance for Loan Losses and Credit Risk, Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Financing Receivable, Modifications [Line Items] | |||||
Nonaccrual restructured loans | $10,000,000 | $10,000,000 | $10,800,000 | ||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Financing Receivable Restructured Still Accruing Status Number Of Contracts | 36 | 36 | |||
Financing Receivable Recorded Investment Restructured Still Accruing Status | 10,597,000 | 10,597,000 | 15,800,000 | ||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 1 | 1 | 7 | 15 | |
Pre-modification outstanding recorded balance | 665,000 | 645,000 | 1,647,000 | 4,389,000 | |
Post-modification outstanding recorded balance | 665,000 | 645,000 | 1,647,000 | 4,389,000 | |
Subsequent default number of contracts | 0 | 1 | 0 | 6 | |
Subsequent default recorded balance | 0 | 1,892,000 | 0 | 3,662,000 | |
Minimum Days Payment Default to Past Due Modified Terms | 90 days | ||||
Commercial [Member] | |||||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Financing Receivable Restructured Still Accruing Status Number Of Contracts | 16 | 16 | |||
Financing Receivable Recorded Investment Restructured Still Accruing Status | 6,679,000 | 6,679,000 | |||
Average yield on modified restructured loan (in hundredths) | 4.92% | ||||
Yield on loan portfolio (in hundredths) | 4.95% | ||||
Commercial [Member] | CLD [Member] | |||||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Financing Receivable Restructured Still Accruing Status Number Of Contracts | 4 | 4 | |||
Financing Receivable Recorded Investment Restructured Still Accruing Status | 1,658,000 | 1,658,000 | |||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 0 | 2 | |||
Pre-modification outstanding recorded balance | 0 | 400,000 | |||
Post-modification outstanding recorded balance | 0 | 400,000 | |||
Subsequent default number of contracts | 1 | 4 | |||
Subsequent default recorded balance | 1,892,000 | 3,423,000 | |||
Commercial [Member] | Owner-Occupied CRE [Member] | |||||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 0 | 1 | 2 | 6 | |
Pre-modification outstanding recorded balance | 0 | 645,000 | 182,000 | 1,271,000 | |
Post-modification outstanding recorded balance | 0 | 645,000 | 182,000 | 1,271,000 | |
Subsequent default number of contracts | 0 | 2 | |||
Subsequent default recorded balance | 0 | 239,000 | |||
Commercial [Member] | Other CRE [Member] | |||||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Financing Receivable Restructured Still Accruing Status Number Of Contracts | 12 | 12 | |||
Financing Receivable Recorded Investment Restructured Still Accruing Status | 5,021,000 | 5,021,000 | |||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 1 | 0 | 1 | 4 | |
Pre-modification outstanding recorded balance | 665,000 | 0 | 665,000 | 2,304,000 | |
Post-modification outstanding recorded balance | 665,000 | 0 | 665,000 | 2,304,000 | |
Commercial [Member] | Commercial And Industrial [Member] | |||||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 0 | 1 | |||
Pre-modification outstanding recorded balance | 0 | 190,000 | |||
Post-modification outstanding recorded balance | 0 | 190,000 | |||
Consumer [Member] | |||||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Average yield on modified restructured loan (in hundredths) | 3.59% | ||||
Yield on loan portfolio (in hundredths) | 4.75% | ||||
Consumer [Member] | Residential Mortgage And Home Equity Loans [Member] | |||||
Summary of Restructured Loans Still Accruing By Type [Abstract] | |||||
Financing Receivable Restructured Still Accruing Status Number Of Contracts | 20 | 20 | |||
Financing Receivable Recorded Investment Restructured Still Accruing Status | 3,918,000 | 3,918,000 | |||
Troubled Debt Restructuring Note, Debtor [Abstract] | |||||
Total number of loans | 0 | 0 | 4 | 2 | |
Pre-modification outstanding recorded balance | 0 | 0 | 800,000 | 224,000 | |
Post-modification outstanding recorded balance | $0 | $0 | $800,000 | $224,000 |
Stock_Based_Compensation_Detai
Stock Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Based Compensation [Abstract] | ||||
Stock based compensation expenses | $62,500 | $37,500 | $187,500 | $112,500 |
Weighted average exercise price of SOSARs | ||||
Awards forfeited | $3.63 | |||
SOSARs [Member] | ||||
Fair value of SOSAR grants based on weighted-average assumptions [Abstract] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value | 608,466 | 608,466 | ||
Weighted average period over which nonvested SOSARs are expected to recognized | 1 year | |||
2005 Plan [Member] | ||||
Fair value of SOSAR grants based on weighted-average assumptions [Abstract] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value | 0 | 0 | ||
Schedule Of Share Based Compensation Stock Options Activity [Abstract] | ||||
Stock option vesting period | 3 years | |||
Stock option vesting period under special circumstances | 10 years | |||
Stock option vesting period after retirement | 3 years | |||
Stock option vesting period after other separation with entity | 90 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options [Roll Forward] | ||||
Balance at beginning of period (in shares) | 358,070 | |||
Options expired (in shares) | -25,434 | |||
Options forfeited (in shares) | -3,400 | |||
Balance at end of period (in shares) | 329,236 | 329,236 | ||
Weighted average exercise price | ||||
Balance at beginning of period (in dollars per share) | $21.32 | |||
Options expired (in dollars per share) | $22.97 | |||
Options forfeited (in dollars per share) | $12.71 | |||
Balance at end of period (in dollars per share) | $21.28 | $21.28 | ||
Stock options outstanding [Abstract] | ||||
Range of exercise prices, minimum (in dollars per share) | $6 | |||
Range of exercise prices, maximum (in dollars per share) | $32.14 | |||
Options outstanding, number outstanding (in shares) | 329,236 | 329,236 | ||
Options outstanding, weighted average remaining contractual life | 3 years 1 month 13 days | |||
Options outstanding, weighted average exercise price (in dollars per share) | $21.28 | $21.28 | ||
Options exercisable, number outstanding (in shares) | 329,236 | 329,236 | ||
Options exercisable, weighted average exercise price (in dollars per share) | $21.28 | $21.28 | ||
2005 Plan [Member] | Stock Options [Member] | ||||
Fair value of SOSAR grants based on weighted-average assumptions [Abstract] | ||||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Aggregate Intrinsic Value | 0 | 0 | ||
Stock Incentive Plan of 2010 [Member] | ||||
Grant date fair value | ||||
Unrecognized compensation expense | 410,000 | 410,000 | ||
Unrecognized compensation cost to recognized period | 3 years | |||
Fair value of SOSAR grants based on weighted-average assumptions [Abstract] | ||||
Dividend yield (in hundredths) | 0.00% | 0.00% | ||
Expected life in years | 5 years | 5 years | ||
Expected volatility (in hundredths) | 28.80% | 37.00% | ||
Risk-free interest rate (in hundredths) | 0.72% | 0.84% | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Fair Value | $1.35 | $1.10 | $1.35 | $1.10 |
Stock Incentive Plan of 2010 [Member] | SOSARs [Member] | ||||
Share-based Compensation Award, Equity Instruments Other than Options [Roll Forward] | ||||
Balance at beginning of period (in shares) | 167,250 | |||
Awards granted (in shares) | 46,250 | |||
Stock Issued During Period, Value, Stock Options Exercised in Shares | -7,946 | |||
Awards forfeited (in shares) | -8,250 | |||
Balance at end of period (in shares) | 197,304 | 197,304 | ||
Weighted average exercise price of SOSARs | ||||
Balance at beginning of period (in dollars per share) | $3.33 | |||
Awards granted (in dollars per share) | $5.05 | |||
Awards exercised | $3.33 | |||
Balance at end of period (in dollars per share) | $3.72 | $3.72 | ||
Stock Incentive Plan of 2010 [Member] | RSU [Member] | ||||
Share-based Compensation Award, Equity Instruments Other than Options [Roll Forward] | ||||
Balance at beginning of period (in shares) | 46,795 | |||
Awards granted (in shares) | 54,582 | |||
Awards vested (in shares) | 0 | |||
Awards forfeited (in shares) | -3,903 | |||
Balance at end of period (in shares) | 97,474 | 97,474 | ||
Grant date fair value | ||||
Balance at beginning of period (in dollars per share) | $3.35 | |||
Awards granted (in dollars per share) | $5.05 | |||
Awards vested (in dollars per share) | $0 | |||
Awards forfeited (in dollars per share) | $4.24 | |||
Balance at end of period (in dollars per share) | $4.27 | $4.27 | ||
Stock Incentive Plan of 2010 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Award, Equity Instruments Other than Options [Roll Forward] | ||||
Balance at beginning of period (in shares) | 22,625 | |||
Awards granted (in shares) | 10,500 | |||
Awards vested (in shares) | -22,625 | |||
Awards forfeited (in shares) | 0 | |||
Balance at end of period (in shares) | 10,500 | 10,500 | ||
Grant date fair value | ||||
Balance at beginning of period (in dollars per share) | $3.35 | |||
Awards granted (in dollars per share) | $5.05 | |||
Awards vested (in dollars per share) | $3.35 | |||
Awards forfeited (in dollars per share) | $0 | |||
Balance at end of period (in dollars per share) | $5.05 | $5.05 |
Loan_Servicing_Details
Loan Servicing (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Components Of Managed Servicing Portfolio [Abstract] | |||||
Unpaid principal balance of loans serviced for others | $962,935 | $962,935 | $853,761 | ||
Unpaid principal balance of loans serviced for others change in period | 109,174 | 109,174 | |||
Unpaid principal balance of loans serviced for others percentage change in period (in hundredths) | 12.80% | 12.80% | |||
Unamortized cost of loan servicing rights [Abstract] | |||||
Balance at beginning of period | 7,072 | 5,855 | 6,379 | 5,405 | |
Amount capitalized | 627 | 780 | 2,205 | 2,029 | |
Amount amortized | -386 | -509 | -1,271 | -1,308 | |
Balance at end of period | 7,313 | 6,126 | 7,313 | 6,126 | |
Fair value of servicing rights [Abstract] | |||||
Fair value beginning of period | 8,285 | 7,331 | |||
Fair value, end of period | $11,041 | $7,848 | $11,041 | $7,848 |
Common_Stock_and_Earnings_Per_1
Common Stock and Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Net income | $2,276 | $1,390 | $6,305 | $3,017 |
Less: | ||||
Accretion of discount on preferred stock | -47 | -27 | -106 | -83 |
Preferred Stock Dividends Other Adjustments | -258 | -258 | -773 | -773 |
Income available to common shareholders | $1,971 | $1,105 | $5,426 | $2,161 |
Basic and diluted income: | ||||
Weighted avg. common shares outstanding (in shares) | 12,703,500 | 12,683,400 | 12,698,600 | 12,677,700 |
Weighted avg. contingently issuable shares (in shares) | 73,900 | 0 | 55,100 | 0 |
Total weighted avg. shares outstanding (in shares) | 12,910,700 | 12,797,900 | 12,881,400 | 12,791,200 |
Basic and diluted earnings per share (in dollars per share) | $0.15 | $0.09 | $0.42 | $0.17 |
Weighted average common shares outstanding from basic earnings per share | 12,910,700 | 12,797,900 | 12,881,400 | 12,791,200 |
Basic earnings per share | $0.15 | $0.09 | $0.42 | $0.17 |
Total Weighted Average Number of Shares Outstanding, Basic | 12,836,800 | 12,797,900 | 12,826,200 | 12,791,200 |
Weighted avg. basic shares outstanding adjustment | 133,300 | 114,500 | 127,600 | 113,500 |
Diluted earnings per share | $0.15 | $0.09 | $0.42 | $0.17 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded for computing diluted earnings per share (in shares) | 370,986 | 373,986 | ||
Warrant [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded for computing diluted earnings per share (in shares) | 527,751 |
Disclosures_About_Fair_Value_o2
Disclosures About Fair Value of Assets and Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Available for sale securities: [Abstract] | ||
Interest rate swap asset | $120,000 | |
Total Securities available for sale | 204,827,000 | 206,129,000 |
Financial Assets Fair Value Disclosure [Abstract] | ||
Securities available for sale | 204,827,000 | 206,129,000 |
Interest rate swap asset | 120,000 | |
Impaired Loans (Collateral Dependent): | ||
Impaired Loans | 33,005,000 | 44,182,000 |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Available for sale securities: [Abstract] | ||
Interest rate swap asset | 120,000 | |
Total Securities available for sale | 204,827,000 | 206,129,000 |
Financial Assets Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 31,781,000 | 70,612,000 |
Securities available for sale | 204,827,000 | 206,129,000 |
FHLB Stock | 2,691,000 | 2,571,000 |
Loans held for sale | 8,388,000 | 13,380,000 |
Net portfolio loans | 621,188,000 | 564,135,000 |
Accrued interest receivable | 2,760,000 | 2,620,000 |
Interest rate swap asset | 120,000 | |
Financial Liabilites Fair Value Disclosure [Abstract] | ||
Total deposits | -805,740,000 | -784,643,000 |
FHLB advances | -11,983,000 | -21,999,000 |
Accrued interest payable | -281,000 | -354,000 |
Other borrowings Fair Value | -6,000,000 | |
Unobservable (Level 3) Inputs | -6,000,000 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Recurring [Member] | ||
Available for sale securities: [Abstract] | ||
U. S. Treasury and agency securities | 25,767,000 | 27,316,000 |
Mortgage-backed agency securities | 154,243,000 | 160,499,000 |
Obligations of states and political subdivisions | 24,790,000 | 18,286,000 |
Equity Securities | 27,000 | 28,000 |
Hedged loan | 7,257,000 | |
Interest rate swap asset | 120,000 | |
Financial Assets Fair Value Disclosure [Abstract] | ||
Interest rate swap asset | 120,000 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Nonrecurring [Member] | ||
Impaired Loans (Collateral Dependent): | ||
Impaired Loans | 13,803,000 | 21,866,000 |
Level 1 [Member] | ||
Available for sale securities: [Abstract] | ||
Interest rate swap asset | 0 | |
Total Securities available for sale | 27,000 | 28,000 |
Financial Assets Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 31,781,000 | 70,612,000 |
Securities available for sale | 27,000 | 28,000 |
FHLB Stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net portfolio loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Interest rate swap asset | 0 | |
Financial Liabilites Fair Value Disclosure [Abstract] | ||
Total deposits | -160,225,000 | 0 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Other borrowings Fair Value | 0 | |
Unobservable (Level 3) Inputs | 0 | |
Level 1 [Member] | Recurring [Member] | ||
Available for sale securities: [Abstract] | ||
U. S. Treasury and agency securities | 0 | 0 |
Mortgage-backed agency securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Equity Securities | 27,000 | 28,000 |
Hedged loan | 0 | |
Interest rate swap asset | 0 | |
Financial Assets Fair Value Disclosure [Abstract] | ||
Interest rate swap asset | 0 | |
Level 1 [Member] | Nonrecurring [Member] | ||
Impaired Loans (Collateral Dependent): | ||
Impaired Loans | 0 | 0 |
Level 2 [Member] | ||
Available for sale securities: [Abstract] | ||
Interest rate swap asset | 120,000 | |
Total Securities available for sale | 204,800,000 | 206,101,000 |
Financial Assets Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 204,800,000 | 206,101,000 |
FHLB Stock | 2,691,000 | 2,571,000 |
Loans held for sale | 8,388,000 | 13,380,000 |
Net portfolio loans | 7,257,000 | 0 |
Accrued interest receivable | 2,760,000 | 2,620,000 |
Interest rate swap asset | 120,000 | |
Financial Liabilites Fair Value Disclosure [Abstract] | ||
Total deposits | -646,587,000 | -787,015,000 |
FHLB advances | -12,595,000 | -23,007,000 |
Accrued interest payable | -281,000 | -354,000 |
Other borrowings Fair Value | -6,000,000 | |
Unobservable (Level 3) Inputs | -6,000,000 | |
Level 2 [Member] | Recurring [Member] | ||
Available for sale securities: [Abstract] | ||
U. S. Treasury and agency securities | 25,767,000 | 27,316,000 |
Mortgage-backed agency securities | 154,243,000 | 160,499,000 |
Obligations of states and political subdivisions | 24,790,000 | 18,286,000 |
Equity Securities | 0 | 0 |
Hedged loan | 7,257,000 | |
Interest rate swap asset | 120,000 | |
Financial Assets Fair Value Disclosure [Abstract] | ||
Interest rate swap asset | 120,000 | |
Level 2 [Member] | Nonrecurring [Member] | ||
Impaired Loans (Collateral Dependent): | ||
Impaired Loans | 0 | 0 |
Level 3 [Member] | ||
Available for sale securities: [Abstract] | ||
Interest rate swap asset | 0 | |
Total Securities available for sale | 0 | 0 |
Financial Assets Fair Value Disclosure [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
FHLB Stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Net portfolio loans | 618,335,000 | 574,137,000 |
Accrued interest receivable | 0 | 0 |
Interest rate swap asset | 0 | |
Financial Liabilites Fair Value Disclosure [Abstract] | ||
Total deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Accrued interest payable | 0 | 0 |
Other borrowings Fair Value | 0 | |
Unobservable (Level 3) Inputs | 0 | |
Level 3 [Member] | Recurring [Member] | ||
Available for sale securities: [Abstract] | ||
U. S. Treasury and agency securities | 0 | 0 |
Mortgage-backed agency securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Equity Securities | 0 | 0 |
Hedged loan | 0 | |
Interest rate swap asset | 0 | |
Financial Assets Fair Value Disclosure [Abstract] | ||
Interest rate swap asset | 0 | |
Level 3 [Member] | Nonrecurring [Member] | ||
Impaired Loans (Collateral Dependent): | ||
Impaired Loans | $13,803,000 | $21,866,000 |
Disclosures_About_Fair_Value_o3
Disclosures About Fair Value of Assets and Liabilities, Quantitative Information (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value Inputs, Quantitative Information [Abstract] | ||
Asset fair value | $13,803 | $21,866 |
Asset valuation technique | marketability discount | marketability discount |
Maximum [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Marketability discount (in hundredths) | 49.50% | 49.50% |
Minimum [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Marketability discount (in hundredths) | 7.50% | 7.50% |
Weighted Average [Member] | ||
Fair Value Inputs, Quantitative Information [Abstract] | ||
Marketability discount (in hundredths) | 16.30% | 14.00% |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | Sep. 30, 2013 |
Derivative Instruments [Abstract] | |
Cash Collateral for Derivative Instrument | $370,100 |
Interest rate swap asset | 120,000 |
Notional Amount of Interest Rate Derivatives | $7,400,000 |
Borrowings_Details
Borrowings (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 16, 2013 |
Borrowings [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $10 | $10 |
Debt Instrument, Basis Spread on Variable Rate | 0.13% | |
Long-term Line of Credit | 6 | |
Line of Credit Facility, Amount Outstanding | $6 | |
Line of Credit Facility, Interest Rate at Period End | 3.38% |
Preferred_Stock_Redemption_Det
Preferred Stock Redemption (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 16, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | |
Class of Stock [Line Items] | ||||
Preferred shares Redemption | 10,300 | |||
Preferred Stock, Liquidation Preference Per Share | $1,000 | $1,000 | ||
Preferred Stock, Shares Issued | 20,600 | |||
Contribution of capital | $3,000,000 | |||
Preferred Stock, Redemption Price Per Share | $1,000 | |||
Preferred Stock, Redemption Amount | 10,400,000 | |||
Excess of Tier One Leverage Capital to Average Assets | 8.50% | |||
Excess Tier One Leverage Capital to Average Assets | 9.72% | |||
Line of Credit Facility, Amount Outstanding | 6,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | 10,000,000 | ||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Value, Outstanding | $10,300,000 |