Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ORRF | ' |
Entity Registrant Name | 'ORRSTOWN FINANCIAL SERVICES INC | ' |
Entity Central Index Key | '0000826154 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 8,106,444 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Assets | ' | ' | |
Cash and due from banks | $17,502 | $16,933 | [1] |
Interest bearing deposits with banks | 52,874 | 133,755 | [1] |
Cash and cash equivalents | 70,376 | 150,688 | [1] |
Restricted investments in bank stock | 8,037 | 9,804 | [1] |
Securities available for sale | 384,522 | 301,970 | [1] |
Loans held for sale | 1,648 | 7,862 | [1] |
Loans | 683,642 | 703,739 | [1] |
Less: Allowance for loan losses | -21,252 | -23,166 | [1] |
Net Loans | 664,038 | 688,435 | [1] |
Premises and equipment, net | 26,375 | 26,782 | [1] |
Cash surrender value of life insurance | 25,635 | 25,030 | [1] |
Intangible assets | 674 | 832 | [1] |
Accrued interest receivable | 3,380 | 3,188 | [1] |
Other assets | 29,441 | 25,939 | [1] |
Total assets | 1,212,478 | 1,232,668 | [1] |
Deposits: | ' | ' | |
Non-interest bearing | 118,181 | 121,090 | [1] |
Interest bearing | 916,752 | 963,949 | [1] |
Total deposits | 1,034,933 | 1,085,039 | [1] |
Short-term borrowings | 25,320 | 9,650 | [1] |
Long-term debt | 16,431 | 37,470 | [1] |
Accrued interest and other liabilities | 46,156 | 12,815 | [1] |
Total liabilities | 1,122,840 | 1,144,974 | [1] |
Shareholders' Equity | ' | ' | |
Preferred Stock, $1.25 par value per share; 500,000 shares authorized; no shares issued or outstanding | 0 | 0 | [1] |
Common stock, no par value-$ 0.05205 stated value per share 50,000,000 shares authorized; 8,107,255 and 8,080,411 shares issued; 8,106,444 and 8,079,599 shares outstanding | 422 | 421 | [1] |
Additional paid-in capital | 123,100 | 122,724 | [1] |
Retained earnings (accumulated deficit) | -30,182 | -37,259 | [1] |
Accumulated other comprehensive income (loss) | -3,682 | 1,828 | [1] |
Treasury stock-common, 811 and 812 shares, at cost | -20 | -20 | [1] |
Total shareholders' equity | 89,638 | 87,694 | [1] |
Total liabilities and shareholders' equity | $1,212,478 | $1,232,668 | [1] |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
Statement Of Financial Position [Abstract] | ' | ' | |
Preferred Stock, par value | $1.25 | $1.25 | [1] |
Preferred Stock, shares authorized | 500,000 | 500,000 | [1] |
Preferred Stock, shares issued | ' | ' | [1] |
Preferred Stock, shares outstanding | ' | ' | [1] |
Common stock, par value | ' | ' | [1] |
Common stock, stated value | $0.05 | $0.05 | [1] |
Common stock, shares authorized | 50,000,000 | 50,000,000 | [1] |
Common stock, shares issued | 8,107,255 | 8,080,411 | [1] |
Common stock, shares outstanding | 8,106,444 | 8,079,599 | [1] |
Treasury stock, shares | 811 | 812 | [1] |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (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 |
Interest and dividend income | ' | ' | ' | ' |
Interest and fees on loans | $7,739 | $9,567 | $23,803 | $30,717 |
Interest and dividends on investment securities | ' | ' | ' | ' |
Taxable | 904 | 768 | 2,716 | 3,105 |
Tax-exempt | 298 | 325 | 784 | 1,413 |
Short-term investments | 41 | 71 | 152 | 214 |
Total interest and dividend income | 8,982 | 10,731 | 27,455 | 35,449 |
Interest expense | ' | ' | ' | ' |
Interest on deposits | 1,073 | 1,519 | 3,436 | 5,359 |
Interest on short-term borrowings | 19 | 20 | 33 | 113 |
Interest on long-term debt | 124 | 163 | 412 | 560 |
Total interest expense | 1,216 | 1,702 | 3,881 | 6,032 |
Net interest income | 7,766 | 9,029 | 23,574 | 29,417 |
Provision for loan losses | 0 | 5,100 | -1,400 | 47,300 |
Net interest income after provision for loan losses | 7,766 | 3,929 | 24,974 | -17,883 |
Noninterest income | ' | ' | ' | ' |
Service charges on deposit accounts | 1,448 | 1,564 | 4,307 | 4,626 |
Other service charges, commissions and fees | 283 | 368 | 789 | 966 |
Trust department income | 1,273 | 1,096 | 3,551 | 3,348 |
Brokerage income | 426 | 364 | 1,502 | 1,148 |
Mortgage banking activities | 727 | 931 | 2,584 | 2,143 |
Earnings on life insurance | 241 | 251 | 721 | 749 |
Other income (loss) | 44 | 308 | -38 | 294 |
Investment securities gains (losses) | 157 | -2 | 279 | 4,824 |
Total noninterest income | 4,599 | 4,880 | 13,695 | 18,098 |
Noninterest expense | ' | ' | ' | ' |
Salaries and employee benefits | 5,584 | 4,874 | 16,717 | 14,508 |
Occupancy expense | 486 | 491 | 1,521 | 1,518 |
Furniture and equipment | 900 | 754 | 2,528 | 2,159 |
Data processing | 106 | 171 | 369 | 434 |
Telephone | 108 | 137 | 301 | 479 |
Advertising and bank promotions | 231 | 434 | 716 | 1,115 |
FDIC Insurance | 647 | 788 | 1,938 | 2,019 |
Professional services | 463 | 729 | 1,801 | 2,281 |
Collection problem loan | 184 | 593 | 565 | 1,890 |
Real estate owned expenses | 55 | 230 | 115 | 706 |
Taxes other than income | 222 | 231 | 710 | 695 |
Intangible asset amortization | 52 | 52 | 157 | 157 |
Other operating expenses | 1,499 | 1,649 | 4,375 | 4,788 |
Total noninterest expenses | 10,537 | 11,133 | 31,813 | 32,749 |
Income (loss) before income tax expense (benefit) | 1,828 | -2,324 | 6,856 | -32,534 |
Income tax expense (benefit) | -281 | 19,028 | -221 | 6,950 |
Net income (loss) | $2,109 | ($21,352) | $7,077 | ($39,484) |
Per share information: | ' | ' | ' | ' |
Basic earnings (loss) per share | $0.26 | ($2.65) | $0.87 | ($4.90) |
Diluted earnings (loss) per share | $0.26 | ($2.65) | $0.87 | ($4.90) |
Dividends per share | $0 | $0 | $0 | $0 |
Average shares and common stock equivalents outstanding | 8,091,172 | 8,065,268 | 8,088,876 | 8,061,682 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | $2,109 | ($21,352) | $7,077 | ($39,484) |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gains (losses) on securities available for sale arising during the period | -688 | 1,603 | -8,198 | 2,522 |
Reclassification adjustment for (gains) losses realized in net income | -157 | 2 | -279 | -4,824 |
Net unrealized gains (losses) | -845 | 1,605 | -8,477 | -2,302 |
Tax effect | 296 | -562 | 2,967 | 806 |
Total other comprehensive loss, net of tax and reclassification adjustments | -549 | 1,043 | -5,510 | -1,496 |
Total comprehensive income (loss) | $1,560 | ($20,309) | $1,567 | ($40,980) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | |
In Thousands, unless otherwise specified | |||||||
Beginning Balance at Dec. 31, 2011 | $128,197 | $419 | $122,514 | $1,195 | $4,089 | ($20) | |
Net income (loss) | -39,484 | 0 | 0 | -39,484 | 0 | 0 | |
Total other comprehensive income (loss), net of taxes | -1,496 | 0 | 0 | 0 | -1,496 | 0 | |
Stock-based compensation plans: | ' | ' | ' | ' | ' | ' | |
Issuance of stock (26,610 and 8,879 shares in 2013 and 2012 respectively, including 1 treasury) | 69 | 1 | 68 | 0 | 0 | 0 | |
Compensation expense | 23 | 0 | 23 | 0 | 0 | 0 | |
Issuance of stock through dividend reinvestment plan (235 and 1,407 shares in 2013 and 2012 respectively) | 11 | 0 | 11 | 0 | 0 | 0 | |
Ending Balance at Sep. 30, 2012 | 87,320 | 420 | 122,616 | -38,289 | 2,593 | -20 | |
Beginning Balance at Dec. 31, 2012 | 87,694 | [1] | 421 | 122,724 | -37,259 | 1,828 | -20 |
Net income (loss) | 7,077 | 0 | 0 | 7,077 | 0 | 0 | |
Total other comprehensive income (loss), net of taxes | -5,510 | 0 | 0 | 0 | -5,510 | 0 | |
Stock-based compensation plans: | ' | ' | ' | ' | ' | ' | |
Issuance of stock (26,610 and 8,879 shares in 2013 and 2012 respectively, including 1 treasury) | 374 | 1 | 373 | 0 | 0 | 0 | |
Issuance of stock through dividend reinvestment plan (235 and 1,407 shares in 2013 and 2012 respectively) | 3 | 0 | 3 | 0 | 0 | 0 | |
Ending Balance at Sep. 30, 2013 | $89,638 | $422 | $123,100 | ($30,182) | ($3,682) | ($20) | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Statement Of Stockholders Equity [Abstract] | ' | ' |
Stock-based compensation plans, issuance of stock, shares | 26,610 | 8,879 |
Issuance of treasury stock | 1 | ' |
Issuance of stock through dividend reinvestment plan, shares | 235 | 1,407 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | |
Net income (loss) | $7,077 | ($39,484) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | |
Amortization of premiums on securities available for sale | 5,996 | 5,251 | |
Depreciation and amortization | 2,076 | 1,963 | |
Provision for loan losses | -1,400 | 47,300 | |
Stock based compensation | 125 | 0 | |
Net change in loans held for sale | 6,214 | -5,496 | |
Net loss on disposal of other real estate owned | 144 | 8 | |
Writedown of other real estate owned | 29 | 436 | |
Deferred income taxes, including valuation allowance adjustments | 0 | 20,384 | |
Investment securities gains | -279 | -4,824 | |
Earnings on cash surrender value of life insurance | -605 | -650 | |
(Increase) decrease in accrued interest receivable | -118 | 852 | |
Increase in accrued interest payable and other liabilities | -253 | 2,280 | |
Other, net | -2,695 | -17,186 | |
Net cash provided by operating activities | 16,311 | 10,834 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | |
Proceeds from sales of available for sale securities | 25,519 | 94,099 | |
Maturities, repayments and calls of available for sale securities | 68,080 | 59,889 | |
Purchases of available for sale securities | -155,841 | -138,000 | |
Net change in restricted investments in bank stocks | 1,767 | 1,143 | |
Net decrease in loans | 19,214 | 84,403 | |
Proceeds from sale of loans | 0 | 19,702 | |
Purchases of bank premises and equipment | -1,218 | -1,245 | |
Proceeds from disposal of other real estate owned | 1,079 | 2,383 | |
Net cash provided (used) by investing activities | -41,400 | 122,374 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | |
Net decrease in deposits | -50,106 | -96,439 | |
Net increase (decrease) in short term purchased funds | 15,670 | -22,947 | |
Payments on long-term debt | -21,039 | -15,990 | |
Net proceeds from issuance of common stock | 252 | 103 | |
Net cash used by financing activities | -55,223 | -135,273 | |
Net decrease in cash and cash equivalents | -80,312 | -2,065 | |
Cash and cash equivalents at beginning of period | 150,688 | [1] | 109,669 |
Cash and cash equivalents at end of period | 70,376 | 107,604 | |
Supplemental disclosures of cash flow information: | ' | ' | |
Interest | 3,974 | 6,515 | |
Income taxes | 0 | 1,267 | |
Supplemental schedule of noncash investing activities: | ' | ' | |
Other real estate acquired in settlement of loans | 341 | 3,237 | |
Security purchases not yet settled | $34,578 | $0 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Nature of Operations – Orrstown Financial Services, Inc. (the “Company”) is a bank holding company (that has elected status as a financial holding company with the Board of Governors of the Federal Reserve System) whose primary activity consists of supervising its wholly-owned subsidiary, Orrstown Bank (the “Bank”). The Company operates through its office in Shippensburg, Pennsylvania. The Bank provides services through its network of 21 offices in Franklin, Cumberland and Perry Counties of Pennsylvania and in Washington County, Maryland. The Bank engages in lending services for commercial loans, residential loans, commercial mortgages and various forms of consumer lending. Deposit services include checking, savings, time and money market deposits. The Bank also provides investment and brokerage services through its Orrstown Financial Advisors division. The Company and its subsidiary are subject to the regulation of certain federal and state agencies and undergo periodic examinations by such regulatory authorities. | |
Basis of Presentation – The unaudited financial statements of the Company and its subsidiary are presented for the three and nine months ended September 30, 2013 and 2012 and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly they do not include all of the information and footnotes required by GAAP for complete financial statements. However, unaudited information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim period. Information presented at December 31, 2012 is condensed from audited year-end financial statements. For further information, refer to the audited consolidated financial statements and footnotes thereto, included in the Annual Report on Form 10-K for the year ended December 31, 2012. The consolidated financial statements include the accounts of the Company and the Bank. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. All significant intercompany transactions and accounts have been eliminated. | |
Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation allowance required on its deferred tax assets. In connection with the determination of the allowance for losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties. | |
While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowance based on their judgments concerning information available to them at the time of their examination. Because of these factors, management’s estimate of credit losses inherent in the loan portfolio and the related allowance may change in the near term. | |
The Company has established a full valuation allowance on its net deferred tax assets at September 30, 2013, based on the Company’s previous taxable losses, projections for future taxable income, and other available evidence, in which management determined it was “more likely than not” that some portion of the asset would not be realized. Management may need to modify its judgment in this regard from one quarter to the next, and should improvement occur in operating performance, the need for a full valuation allowance may be reduced or eliminated. | |
Subsequent Events – GAAP establishes standards for accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The subsequent events principle sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition in the financial statements, identifies the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and specifies the disclosures that should be made about events or transactions that occur after the balance sheet date. In preparing these financial statements, the Company evaluated the events and transactions that occurred after September 30, 2013, through the date these financial statements were filed with the Securities and Exchange Commission (the “Commission”). | |
Concentration of Credit Risk – The Company grants commercial, residential and consumer loans to customers in its market area. Although the Company maintains a diversified loan portfolio, a significant portion of its customers’ ability to honor their contracts is dependent upon economic sectors for construction contractors, residential and non-residential building operators, sales finance, sub-dividers and developers. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment. | |
The types of securities the Company invests in are included in Note 2, “Securities Available for Sale” and the types of lending the Company engages in are included in Note 3, “Loans Receivable and Allowance for Loan Losses.” | |
Cash and Cash Equivalents – For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold and interest bearing deposits due on demand, all of which have original maturities of 90 days or less. | |
Restricted Investments in Bank Stocks – Restricted investments in bank stocks, which represents required investments in the common stock of correspondent banks, is carried at cost as of September 30, 2013 and December 31, 2012, and consists of common stock of the Federal Reserve Bank of Philadelphia, Atlantic Central Bankers Bank and the Federal Home Loan Bank (“FHLB”) of Pittsburgh stocks. | |
Management evaluates the restricted investment in bank stocks for impairment in accordance with Accounting Standard Codification (ASC) Topic 942, Accounting by Certain Entities (Including Entities with Trade Receivables) That Lend to or Finance the Activities of Others. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted, (2) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the correspondent bank. | |
Management believes no impairment charge is necessary related to the restricted investment in bank stocks as of September 30, 2013. However, security impairment analysis is completed quarterly and the determination that no impairment had occurred as of September 30, 2013 is no assurance that impairment may not occur in the future. | |
Securities – Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. “Trading” securities are recorded at fair value with changes in fair value included in earnings. As of September 30, 2013 and December 31, 2012 the Company had no held to maturity or trading securities. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities and approximate the level yield method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |
The Company follows the accounting guidance related to recognition and presentation of other-than-temporary impairment (FASB ASC 820-10). This guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |
The Company had no debt securities it deemed to be other than temporarily impaired at September 30, 2013 and December 31, 2012. | |
The Company’s securities are exposed to various risks, such as interest rate risk, market risk, and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the consolidated financial statements. | |
For equity securities, when the Company has decided to sell an impaired available-for-sale security and the entity does not expect the fair value of the security to fully recover before the expected time of sale, the security is deemed other-than-temporarily impaired in the period in which the decision to sell is made. The Company recognizes an impairment loss when the impairment is deemed other than temporary even if a decision to sell has not been made. | |
Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value (LOCM). Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in non-interest income. | |
Loans – The Company grants commercial, mortgage, and consumer loans to its customers located principally in south-central Pennsylvania and northern Maryland. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a yield adjustment over the respective term of the loan. | |
For all classes of loans, the accrual of interest income on loans, including impaired loans, ceases when principal or interest is past due 90 days or more or immediately if, in the opinion of management, full collection is unlikely. Interest will continue to accrue on loans past due 90 days or more if the collateral is adequate to cover principal and interest, and the loan is in the process of collection. Interest accrued, but not collected, as of the date of placement on nonaccrual status, is reversed and charged against current interest income, unless fully collateralized. Subsequent payments received are either applied to the outstanding principal balance or recorded as interest income, depending upon management’s assessment of the ultimate collectability of principal. Loans are returned to accrual status, for all loan classes, when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms of the note for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is reasonably assured. Past due status is based on contractual terms of the loan. | |
Loans, the terms of which are modified, are classified as troubled debt restructurings if a concession was granted, for legal or economic reasons, related to a debtor’s financial difficulties. Concessions granted under a troubled debt restructuring typically involve a temporary deferral of scheduled loan payments, an extension of a loan’s stated maturity date, temporary reduction in interest rates, or granting of an interest rate below market rates given the risk of the transaction. If a modification occurs while the loan is on accruing status, it will continue to accrue interest under the modified terms. Nonaccrual troubled debt restructurings are restored to accrual status if scheduled principal and interest payments, under the modified terms, are current for six months after modification, and the borrower continues to demonstrate its ability to meet the modified terms. Troubled debt restructurings are evaluated individually for impairment if they have been restructured during the most recent calendar year, or if they are not performing according to their modified terms. | |
Allowance for Loan Losses – The allowance for loan losses is established as losses that are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
Loans Serviced – The Bank administers secondary market mortgage programs available through the FHLB of Pittsburgh and the Federal National Mortgage Association and offers residential mortgage products and services to customers. The Bank originates single-family residential mortgage loans for immediate sale in the secondary market, and generally retains the servicing of those loans. At September 30, 2013 and December 31, 2012 the balance of loans serviced for others was $324,613,000 and $329,360,000. | |
Transfers of Financial Assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Premises and Equipment – Buildings, improvements, equipment, furniture and fixtures are carried at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation and amortization has been provided generally on the straight-line method and is computed over the estimated useful lives of the various assets as follows: buildings and improvements – 10 to 40 years; equipment, furniture and fixtures – 3 to 15 years; and computer software – 3 to 5 years. Repairs and maintenance are charged to operations as incurred, while major additions and improvements are capitalized. Gain or loss on retirement or disposal of individual assets is recorded as income or expense in the period of retirement or disposal. | |
Mortgage Servicing Rights – The estimated fair value of mortgage servicing rights (MSRs) related to loans sold and serviced by the Company is recorded as an asset upon the sale of such loan. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are evaluated periodically for impairment, by comparing the carrying amount to estimated fair value. Fair value is determined periodically through a discounted cash flows valuation performed by a third party. Significant inputs to the valuation include expected servicing income, net of expense, the discount rate and the expected life of the underlying loans. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment through a charge against servicing income on the consolidated statement of income. If the Company determines, based on subsequent valuations, that impairment no longer exists or is reduced, the valuation allowance is reduced through a credit to earnings. | |
Foreclosed Real Estate – Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less estimated costs to sell the underlying collateral. Capitalized costs include any costs that significantly improve the value of the properties. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less estimated costs to sell. Foreclosed real estate totaled $965,000 and $1,876,000 as of September 30, 2013 and December 31, 2012 and is included in other assets. | |
Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) – The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities which are included in short-term borrowings. Under these agreements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. | |
The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For the repurchase agreements, the collateral is held by the Company in a segregated custodial account under a third party agreement. | |
Stock Compensation Plans – The Company has a stock compensation plan that covers employees and non-employee directors. Stock compensation accounting guidance (FASB ASC 718, Compensation – Stock Compensation) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost is measured based on the grant date fair value of the stock award, including a Black-Scholes model for stock options. Compensation cost for all stock awards is calculated and recognized over the employee’s service period, generally defined as the vesting period. | |
Income Taxes – The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. | |
Treasury Stock – Common stock shares repurchased are recorded as treasury stock at cost. | |
Earnings Per Share – Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. | |
Treasury shares are not deemed outstanding for earnings per share calculations. | |
Comprehensive Income – Comprehensive income consists of net income and other comprehensive income. Other comprehensive income is limited to unrealized gains (losses) on securities available for sale for all years presented. | |
The component of accumulated other comprehensive income, net of taxes, at September 30, 2013 and December 31, 2012 consisted of unrealized gains (losses) on securities available for sale and totaled ($3,682,000) and $1,828,000. | |
Fair Value of Financial Instruments – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 8. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Reporting – The Company only operates in one significant segment – Community Banking. The Company’s non-banking activities are insignificant to the consolidated financial statements. | |
Recent Accounting Pronouncements – In December 2011, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Disclosures About Offsetting Assets and Liabilities. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. ASU No. 2011-11 also requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The provisions of ASU No. 2013-01 limit the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the statement of financial position: (1) derivative financial instruments; (2) repurchase agreements and reverse repurchase agreements; and (3) securities borrowing and securities lending transactions. The Company adopted the provisions of ASU No. 2011-11 and ASU No. 2013-01 effective January 1, 2013. As the provisions of ASU No. 2011-11 and ASU No. 2013-01 only impacted the disclosure requirements related to the offsetting of assets and liabilities and information about instruments and transactions eligible for offset in the statement of financial position, the adoption had no impact on the Company’s consolidated statements of operations and financial condition. | |
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. ASU No. 2013-02 does not amend any existing requirements for reporting net income or other comprehensive income in the financial statements. ASU No. 2013-02 requires an entity to disaggregate the total change of each component of other comprehensive income (e.g., unrealized gains or losses on available-for-sale investment securities) and separately present reclassification adjustments and current period other comprehensive income. The provisions of ASU No. 2013-02 also require that entities present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., unrealized gains or losses on available-for-sale investment securities) and the income statement line item affected by the reclassification (e.g., realized gains (losses) on sales of investment securities). If a component is not required to be reclassified to net income in its entirety (e.g., amortization of defined benefit plan items), entities would instead cross reference to the related note to the financial statements for additional information (e.g., pension footnote). The Company adopted the provisions of ASU No. 2013-02 effective January 1, 2013. As the Company’s only item of accumulated other comprehensive income is unrealized gains or losses on securities available for sale, the adoption of this standard had no impact on our Consolidated Financial Statements. |
Securities_Available_for_Sale
Securities Available for Sale | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities Available for Sale | ' | ||||||||||||||||||||||||
NOTE 2. SECURITIES AVAILABLE FOR SALE | |||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the investment securities portfolio was comprised exclusively of securities classified as “available for sale,” resulting in investment securities being carried at fair value. The amortized cost and fair values of investment securities available for sale at September 30, 2013 and December 31, 2012 were: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S Treasury | $ | 25,998 | $ | 29 | $ | 0 | $ | 26,027 | |||||||||||||||||
U.S. Government Agencies | 26,657 | 17 | 271 | 26,403 | |||||||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 40,136 | 43 | 647 | 39,532 | |||||||||||||||||||||
States and political subdivisions | 70,972 | 462 | 3,489 | 67,945 | |||||||||||||||||||||
GSE residential mortgage-backed securities | 185,385 | 1,097 | 822 | 185,660 | |||||||||||||||||||||
GSE commercial mortgage-backed securities | 40,989 | 0 | 2,103 | 38,886 | |||||||||||||||||||||
Total debt securities | 390,137 | 1,648 | 7,332 | 384,453 | |||||||||||||||||||||
Equity securities | 50 | 19 | 0 | 69 | |||||||||||||||||||||
Totals | $ | 390,187 | $ | 1,667 | $ | 7,332 | $ | 384,522 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Treasury | $ | 25,996 | $ | 14 | $ | 0 | $ | 26,010 | |||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 44,331 | 431 | 0 | 44,762 | |||||||||||||||||||||
States and political subdivisions | 37,324 | 1,588 | 3 | 38,909 | |||||||||||||||||||||
GSE residential mortgage-backed securities | 160,118 | 1,014 | 333 | 160,799 | |||||||||||||||||||||
GSE commercial mortgage-backed securities | 31,339 | 143 | 61 | 31,421 | |||||||||||||||||||||
Total debt securities | 299,108 | 3,190 | 397 | 301,901 | |||||||||||||||||||||
Equity securities | 50 | 19 | 0 | 69 | |||||||||||||||||||||
Totals | $ | 299,158 | $ | 3,209 | $ | 397 | $ | 301,970 | |||||||||||||||||
The following table shows gross unrealized losses and fair value of the Company’s available for sale securities that are not deemed to be other-than-temporarily impaired, 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: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized | Fair | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Value | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government Agencies | $ | 20,671 | $ | 271 | $ | 0 | $ | 0 | $ | 20,671 | $ | 271 | |||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 12,139 | 647 | 0 | 0 | 12,139 | 647 | |||||||||||||||||||
States and political subdivisions | 47,042 | 3,489 | 0 | 0 | 47,042 | 3,489 | |||||||||||||||||||
GSE residential mortgage-backed securities | 80,371 | 821 | 769 | 1 | 81,140 | 822 | |||||||||||||||||||
GSE commercial mortgage-backed securities | 38,886 | 2,103 | 0 | 0 | 38,886 | 2,103 | |||||||||||||||||||
Total temporarily impaired securities | $ | 199,109 | $ | 7,331 | $ | 769 | $ | 1 | $ | 199,878 | $ | 7,332 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
States and political subdivisions | $ | 885 | $ | 3 | $ | 0 | $ | 0 | $ | 885 | $ | 3 | |||||||||||||
GSE residential mortgage-backed securities | 64,952 | 312 | 2,657 | 21 | 67,609 | 333 | |||||||||||||||||||
GSE commercial mortgage-backed securities | 20,396 | 61 | 0 | 0 | 20,396 | 61 | |||||||||||||||||||
Total temporarily impaired securities | $ | 86,233 | $ | 376 | $ | 2,657 | $ | 21 | $ | 88,890 | $ | 397 | |||||||||||||
The Company had 73 securities and 27 securities at September 30, 2013 and December 31, 2012 in which the amortized cost exceeds their values, as discussed below. | |||||||||||||||||||||||||
U.S. Agencies and Government Sponsored Enterprises (GSE). 46 U.S. Agencies and GSE securities, including mortgage-backed securities, have amortized costs which exceed their fair values, all but one of which are in the less than 12 months category at September 30, 2013. At December 31, 2012, the Company had 26 GSE securities with amortized costs which exceed their fair values, all but one of which was in the less than 12 months category. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2013 or at December 31, 2012. | |||||||||||||||||||||||||
State and Political Subdivisions. 27 state and political subdivision securities had amortized costs which exceeded their fair value for less than 12 months at September 30, 2013. At December 31, 2012, one state and political subdivision security had an unrealized loss, which was less than 12 months. These unrealized losses have been caused by a rise in interest rates from the time the securities were purchased. Management considers the investment rating, the state of the issuer of the security and other credit support in determining whether the security is other-than-temporarily impaired. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2013 or at December 31, 2012. | |||||||||||||||||||||||||
The amortized cost and fair values of securities available for sale at September 30, 2013 by contractual maturity are shown below. Contractual maturities will differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 54,013 | $ | 54,089 | |||||||||||||||||||||
Due after one year through five years | 380 | 380 | |||||||||||||||||||||||
Due after five years through ten years | 25,534 | 24,713 | |||||||||||||||||||||||
Due after ten years | 83,836 | 80,725 | |||||||||||||||||||||||
GSE residential mortgage-backed securities | 185,385 | 185,660 | |||||||||||||||||||||||
GSE commercial mortgage-backed securities | 40,989 | 38,886 | |||||||||||||||||||||||
Total debt securities | 390,137 | 384,453 | |||||||||||||||||||||||
Equity securities | 50 | 69 | |||||||||||||||||||||||
$ | 390,187 | $ | 384,522 | ||||||||||||||||||||||
Gross gains on sales of securities were $160,000 and $20,000 for the three months ended September 30, 2013 and 2012. Gross losses on sales of securities were $3,000 and $22,000 for the three months ended September 30, 2013 and 2012. Gross gains on the sales of securities were $419,000 and $4,986,000 for the nine months ended September 30, 2013 and 2012. Gross losses on securities available for sale were $140,000 and $162,000 for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||
Securities with a fair value of $280,309,000 and $258,024,000 at September 30, 2013 and December 31, 2012 were pledged to secure public funds and for other purposes as required or permitted by law. |
Loans_Receivable_and_Allowance
Loans Receivable and Allowance for Loan Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Loans Receivable and Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 3. LOANS RECEIVABLE AND ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||||||||||||||||
The Company’s loan portfolio is broken down into segments to an appropriate level of disaggregation to allow management to monitor the performance by the borrower and to monitor the yield on the portfolio. Management has incorporated the provisions of ASU 2010-20, Disclosures about the Credit Quality of Financing Receivables and the Allowance for Loan Losses, resulting in a refinement in its portfolio segregation. Consistent with the standard, the segments were further broken down into classes to allow for differing risk characteristics within a segment. | |||||||||||||||||||||||||||||||||||||||||
The risks associated with lending activities differ among the various loan classes, and are subject to the impact of changes in interest rates, market conditions of collateral securing the loans, and general economic conditions. All of these factors may adversely impact the borrower’s ability to repay its loans, and impact the associated collateral. | |||||||||||||||||||||||||||||||||||||||||
The Company has various types of commercial real estate loans which have differing levels of credit risk associated with them. Owner-occupied commercial real estate loans are generally dependent upon the successful operation of the borrower’s business, with the cash flows generated from the business being the primary source of repayment of the loan. If the business suffers a downturn in sales or profitability, the borrower’s ability to repay the loan could be in jeopardy. | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied and multi-family commercial real estate loans and non-owner occupied residential loans present a different credit risk to the Company than owner-occupied commercial real estate loans, as the repayment of the loan is dependent upon the borrower’s ability to generate a sufficient level of occupancy to produce rental income that exceeds debt service requirements and operating expenses. Lower occupancy or lease rates may result in a reduction in cash flows, which hinders the ability of the borrower to meet debt service requirements, and may result in lower collateral values. The Company generally recognizes that greater risk is inherent in these credit relationships as compared to owner occupied loans mentioned above in its loan pricing. | |||||||||||||||||||||||||||||||||||||||||
Acquisition and development loans consist of 1-4 family residential construction and commercial and land development loans. The risk of loss on these loans is largely dependent on the Company’s ability to assess the property’s value at the completion of the project, which should exceed the property’s construction costs. During the construction phase, a number of factors could potentially negatively impact the collateral value, including cost overruns, delays in completing the project, competition, and real estate market conditions which may change based on the supply of similar properties in the area. In the event the collateral value at the completion of the project is not sufficient to cover the outstanding loan balance, the Company must rely upon other repayment sources, including the guarantors of the project or other collateral securing the loan. | |||||||||||||||||||||||||||||||||||||||||
Commercial and industrial loans include advances to local and regional businesses for general commercial purposes and include permanent and short-term working capital, machinery and equipment financing, and may be either in the form of lines of credit or term loans. Although commercial and industrial loans may be unsecured to our highest rated borrowers, the majority of these loans are secured by the borrower’s accounts receivable, inventory and machinery and equipment. In a significant number of these loans, the collateral also includes the business, real estate or the business owner’s personal real estate or assets. Commercial and industrial loans present credit exposure to the Company, as they are more susceptible to risk of loss during a downturn in the economy, as borrowers may have greater difficulty in meeting their debt service requirements and the value of the collateral may decline. The Company attempts to mitigate this risk through its underwriting standards, including evaluating the credit worthiness of the borrower and to the extent available, credit ratings on the business. Additionally, monitoring of the loans through annual renewals and meetings with the borrowers are typical. However, these procedures cannot eliminate the risk of loss associated with commercial and industrial lending. | |||||||||||||||||||||||||||||||||||||||||
Municipal loans consist of extensions of credit to municipalities and school districts within the Company’s market area. These loans generally present a lower risk than commercial and industrial loans, as they are generally secured by the municipality’s full taxing authority, by revenue obligations, or by its ability to raise assessments on its customers for a specific utility. | |||||||||||||||||||||||||||||||||||||||||
The Company originates loans to its retail customers, including fixed-rate and adjustable first lien mortgage loans with the underlying 1-4 family owner-occupied residential property securing the loan. The Company’s risk exposure is minimized in these types of loans through the evaluation of the credit worthiness of the borrower, including credit scores and debt-to-income ratios, and underwriting standards which limit the loan-to-value ratio to generally no more than 80% upon loan origination, unless the borrower obtains private mortgage insurance. | |||||||||||||||||||||||||||||||||||||||||
Home equity loans, including term loans and lines of credit, present a slightly higher risk to the Company than 1-4 family first liens, as these loans can be first or second liens on 1-4 family owner occupied residential property, but can have loan-to-value ratios of no greater than 90% of the value of the real estate taken as collateral. The credit worthiness of the borrower is considered including credit scores and debt-to-income ratios, which generally cannot exceed 43%. | |||||||||||||||||||||||||||||||||||||||||
Installment and other loans’ credit risk are mitigated through conservative underwriting standards, including the evaluation of the credit worthiness of the borrower through credit scores and debt-to-income ratios, and if secured, the collateral value of the assets. As these loans can be unsecured or secured by assets the value of which may depreciate quickly or may fluctuate, they typically present a greater risk to the Company than 1-4 family residential loans. | |||||||||||||||||||||||||||||||||||||||||
The loan portfolio, excluding residential loans held for sale, broken out by classes, as of September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 111,304 | $ | 144,290 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied | 144,092 | 120,930 | |||||||||||||||||||||||||||||||||||||||
Multi-family | 19,656 | 21,745 | |||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 59,384 | 66,381 | |||||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,725 | 2,850 | |||||||||||||||||||||||||||||||||||||||
Commercial and land development | 23,487 | 30,375 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 34,218 | 39,340 | |||||||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 68,018 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 124,488 | 108,601 | |||||||||||||||||||||||||||||||||||||||
Home equity—term | 19,204 | 14,747 | |||||||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 76,422 | 79,448 | |||||||||||||||||||||||||||||||||||||||
Installment and other loans | 6,371 | 7,014 | |||||||||||||||||||||||||||||||||||||||
$ | 683,642 | $ | 703,739 | ||||||||||||||||||||||||||||||||||||||
In order to monitor ongoing risk associated with its loan portfolio and specific loans within the segments, management uses an internal grading system. The first several rating categories, representing the lowest risk to the Bank, are combined and given a “Pass” rating. Management generally follows regulatory definitions in assigning criticized ratings to loans, including special mention, substandard, doubtful or loss. The “Special Mention” category includes loans that have potential weaknesses that may, if not monitored or corrected, weaken the asset or inadequately protect the Bank’s position at some future date. These assets pose elevated risk, but their weakness does not yet justify a more severe, or classified rating. “Substandard” loans are classified as they have a well-defined weakness, or weaknesses that jeopardize liquidation of the debt. These loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. “Substandard” loans include loans that management has determined not to be impaired, as well as loans considered to be impaired. A “Doubtful” loan has a high probability of total or substantial loss, but because of specific pending events that may strengthen the asset, its classification of loss is deferred. “Loss” assets are considered uncollectible, as the underlying borrowers are often in bankruptcy, have suspended debt repayments, or ceased business operations. Once a loan is classified as “Loss,” there is little prospect of collecting the loan’s principal or interest and it is generally written off. | |||||||||||||||||||||||||||||||||||||||||
The Bank has a loan review policy and program which is designed to identify and mitigate risk in the lending function. The Credit Administration Committee, comprised of executive officers and loan department personnel, was charged with the oversight of overall credit quality and risk exposure of the Company’s loan portfolio. Effective December 31, 2012, the Credit Administration Committee became a subcommittee of the Enterprise Risk Management (“ERM”) Committee. From that date forward, the ERM Committee is responsible for oversight of overall credit quality and risk exposure. This includes the monitoring of the lending activities of all Bank personnel with respect to underwriting and processing new loans and the timely follow-up and corrective action for loans showing signs of deterioration in quality. The loan review program provides the Bank with an independent review of the Bank’s loan portfolio on an ongoing basis. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as extended delinquencies, bankruptcy, repossession or death of the borrower occurs, which heightens awareness as to a possible credit event. | |||||||||||||||||||||||||||||||||||||||||
Loan reviews are completed annually on all commercial relationships with a committed loan balance in excess of $1,000,000. Loan review documentation is submitted to the ERM Committee no less than quarterly with a formal review and confirmation of risk rating as presented by independent loan review personnel. In addition, all relationships greater than $250,000 rated Substandard, Doubtful or Loss are reviewed by the ERM Committee on a quarterly basis, with reaffirmation of the rating as approved by the Bank’s Loan Work Out Committee or loan review staff. | |||||||||||||||||||||||||||||||||||||||||
The following tables summarize the Bank’s ratings based on its internal risk rating system as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Non-Impaired | Impaired - | Doubtful | Total | |||||||||||||||||||||||||||||||||||
Mention | Substandard | Substandard | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 90,511 | $ | 4,481 | $ | 11,731 | $ | 4,105 | $ | 476 | $ | 111,304 | |||||||||||||||||||||||||||||
Non-owner occupied | 115,859 | 4,763 | 17,782 | 5,688 | 0 | 144,092 | |||||||||||||||||||||||||||||||||||
Multi-family | 15,918 | 2,161 | 1,242 | 335 | 0 | 19,656 | |||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 46,574 | 3,281 | 5,255 | 4,274 | 0 | 59,384 | |||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,382 | 0 | 0 | 343 | 0 | 1,725 | |||||||||||||||||||||||||||||||||||
Commercial and land development | 13,906 | 1,159 | 5,886 | 2,536 | 0 | 23,487 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 29,323 | 2,004 | 1,048 | 1,843 | 0 | 34,218 | |||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 0 | 0 | 0 | 0 | 63,291 | |||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 121,860 | 0 | 299 | 2,281 | 48 | 124,488 | |||||||||||||||||||||||||||||||||||
Home equity—term | 19,154 | 0 | 0 | 37 | 13 | 19,204 | |||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 76,289 | 0 | 10 | 88 | 35 | 76,422 | |||||||||||||||||||||||||||||||||||
Installment and other loans | 6,371 | 0 | 0 | 0 | 0 | 6,371 | |||||||||||||||||||||||||||||||||||
$ | 600,438 | $ | 17,849 | $ | 43,253 | $ | 21,530 | $ | 572 | $ | 683,642 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Non-Impaired | Impaired - | Doubtful | Total | |||||||||||||||||||||||||||||||||||
Mention | Substandard | Substandard | |||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 121,333 | $ | 11,917 | $ | 8,623 | $ | 2,229 | $ | 188 | $ | 144,290 | |||||||||||||||||||||||||||||
Non-owner occupied | 95,876 | 7,351 | 14,241 | 3,462 | 0 | 120,930 | |||||||||||||||||||||||||||||||||||
Multi-family | 17,205 | 3,936 | 585 | 19 | 0 | 21,745 | |||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 45,468 | 12,199 | 3,346 | 5,368 | 0 | 66,381 | |||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,608 | 333 | 0 | 198 | 711 | 2,850 | |||||||||||||||||||||||||||||||||||
Commercial and land development | 14,793 | 8,937 | 2,836 | 3,208 | 601 | 30,375 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 33,380 | 3,713 | 429 | 566 | 1,252 | 39,340 | |||||||||||||||||||||||||||||||||||
Municipal | 68,018 | 0 | 0 | 0 | 0 | 68,018 | |||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 101,390 | 3,026 | 1,604 | 2,581 | 0 | 108,601 | |||||||||||||||||||||||||||||||||||
Home equity – term | 14,403 | 52 | 235 | 57 | 0 | 14,747 | |||||||||||||||||||||||||||||||||||
Home equity – Lines of credit | 76,418 | 1,073 | 1,365 | 592 | 0 | 79,448 | |||||||||||||||||||||||||||||||||||
Installment and other loans | 6,998 | 11 | 3 | 2 | 0 | 7,014 | |||||||||||||||||||||||||||||||||||
$ | 596,890 | $ | 52,548 | $ | 33,267 | $ | 18,282 | $ | 2,752 | $ | 703,739 | ||||||||||||||||||||||||||||||
Classified loans may also be evaluated for impairment. For commercial real estate, acquisition and development and commercial and industrial loans, a loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Generally, loans that are more than 90 days past due are deemed impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed to determine if the loan should be placed on nonaccrual status. Nonaccrual loans in the commercial and commercial real estate portfolios are, by definition, deemed to be impaired. Impairment is measured on a loan-by-loan basis for commercial, construction and restructured loans by either the present value of the expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. For loans that are deemed to be impaired for extended periods of time, periodic updates on fair values are obtained, which may include updated appraisals. The updated fair values will be incorporated into the impairment analysis as of the next reporting period. | |||||||||||||||||||||||||||||||||||||||||
Loan charge-offs, which may include partial charge-offs, are taken on an impaired loan that is collateral dependent if the loan’s carrying balance exceeds its collateral’s appraised value; the loan has been identified as uncollectible; and it is deemed to be a confirmed loss. Typically, impaired loans with a charge-off or partial charge-off will continue to be considered impaired, unless the note is split into two, and management expects the performing note to continue to perform and is adequately secured. The second, or non-performing note, would be charged-off. As of the periods presented, the Company has no loans to borrowers that resulted from splitting impaired loans into multiple notes. Generally, an impaired loan with a partial charge-off may continue to have an impairment reserve on it after the partial charge-off, if factors warrant. | |||||||||||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, nearly all of the Company’s impaired loans’ extent of impairment was measured based on the estimated fair value of the collateral securing the loan, except for troubled debt restructurings. By definition, troubled debt restructurings are considered impaired. All restructured loans’ impairment was determined based on discounted cash flows for those loans classified as troubled debt restructurings but that are accruing interest. For real estate loans, collateral generally consists of commercial real estate, but in the case of commercial and industrial loans, it would also consist of accounts receivable, inventory, equipment or other business assets. Commercial and industrial loans may also have real estate collateral. | |||||||||||||||||||||||||||||||||||||||||
According to policy, updated appraisals are required annually for classified loans in excess of $250,000. The “as is value” provided in the appraisal is often used as the fair value of the collateral in determining impairment, unless circumstances, such as subsequent improvements, approvals, or other circumstances dictate that another value provided by the appraiser is more appropriate. | |||||||||||||||||||||||||||||||||||||||||
Generally, impaired loans secured by real estate were measured at fair value using certified real estate appraisals that had been completed within the last year. Appraised values are further discounted for estimated costs to sell the property and other selling considerations to arrive at the property’s fair value. In those situations in which it is determined an updated appraisal is not required for loans individually evaluated for impairment, fair values are based on one or a combination of the following approaches. In those situations in which a combination of approaches is considered, the factor that carries the most consideration will be the one management believes is warranted. The approaches are as follows: | |||||||||||||||||||||||||||||||||||||||||
• | Original appraisal – if the original appraisal provides a strong loan-to-value ratio (generally 70% or lower) and, after consideration of market conditions and knowledge of the property and area, it is determined by the Credit Administration staff that there has not been a significant deterioration in the collateral value, the original certified appraised value may be used. Discounts as deemed appropriate for selling costs are factored into the appraised value in arriving at fair value. | ||||||||||||||||||||||||||||||||||||||||
• | Discounted cash flows – in limited cases, discounted cash flows may be used on projects in which the collateral is liquidated to reduce the borrowings outstanding, and is used to validate collateral values derived from other approaches. | ||||||||||||||||||||||||||||||||||||||||
Collateral on certain impaired loans is not limited to real estate, and may consist of accounts receivable, inventory, equipment or other business assets. Estimated fair values are determined based on borrowers’ financial statements, inventory ledgers, accounts receivable agings or appraisals from individuals with knowledge in the business. Stated balances are generally discounted for the age of the financial information or the quality of the assets. In determining fair value, liquidation discounts are applied to this collateral based on existing loan evaluation policies. | |||||||||||||||||||||||||||||||||||||||||
The Company distinguishes Substandard loans on both an impaired and non-impaired basis, as it places less emphasis on a loan’s classification, and increased reliance on whether the loan was performing in accordance with the contractual terms. “Substandard” classification does not automatically meet the definition of “impaired.” A substandard loan is one that is inadequately protected by current sound worth, paying capacity of the obligor or the collateral pledged, if any. Extensions of credit so classified have well-defined weaknesses which may jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual extensions of credit classified substandard. As a result, the Company’s methodology includes an evaluation of certain accruing commercial real estate, acquisition and development and commercial and industrial loans rated “Substandard” to be collectively evaluated for impairment as opposed to evaluating these loans individually for impairment. Although we believe these loans have well defined weaknesses and meet the definition of “Substandard,” they are generally performing and management has concluded that it is likely it will be able to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. | |||||||||||||||||||||||||||||||||||||||||
Larger groups of smaller balance homogenous loans are collectively evaluated for impairment. Generally, the Bank does not separately identify individual consumer and residential loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. | |||||||||||||||||||||||||||||||||||||||||
The following tables summarize impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required as of September 30, 2013 and December 31, 2012. Allowances established at September 30, 2013 and December 31, 2012 generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and the partial charge-off will be recorded when final information is received. | |||||||||||||||||||||||||||||||||||||||||
Impaired Loans with a Specific Allowance | Impaired Loans with No Specific Allowance | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | Recorded | Unpaid | ||||||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | |||||||||||||||||||||||||||||||||||||
(Book Balance) | Balance | (Book Balance) | Balance | ||||||||||||||||||||||||||||||||||||||
(Legal Balance) | (Legal Balance) | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 476 | $ | 942 | $ | 476 | $ | 4,105 | $ | 4,607 | |||||||||||||||||||||||||||||||
Non-owner occupied | 0 | 0 | 0 | 5,688 | 6,218 | ||||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 335 | 420 | ||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 0 | 4,274 | 4,550 | ||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 0 | 0 | 0 | 343 | 371 | ||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 0 | 2,536 | 3,170 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 0 | 1,843 | 1,953 | ||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 48 | 48 | 48 | 2,281 | 2,425 | ||||||||||||||||||||||||||||||||||||
Home equity—term | 50 | 51 | 49 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 123 | 124 | 105 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Installment and other loans | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
$ | 697 | $ | 1,165 | $ | 678 | $ | 21,405 | $ | 23,714 | ||||||||||||||||||||||||||||||||
Impaired Loans with a Specific Allowance | Impaired Loans with No Specific Allowance | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | Recorded | Unpaid | ||||||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | |||||||||||||||||||||||||||||||||||||
(Book Balance) | Balance | (Book Balance) | Balance | ||||||||||||||||||||||||||||||||||||||
(Legal Balance) | (Legal Balance) | ||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 0 | $ | 0 | $ | 0 | $ | 2,417 | $ | 2,680 | |||||||||||||||||||||||||||||||
Non-owner occupied | 1,257 | 1,257 | 329 | 2,205 | 5,487 | ||||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 19 | 198 | ||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 204 | 204 | 46 | 5,164 | 6,510 | ||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 711 | 725 | 9 | 198 | 202 | ||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 0 | 3,809 | 8,556 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,373 | 1,402 | 928 | 445 | 445 | ||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 0 | 0 | 0 | 2,581 | 2,784 | ||||||||||||||||||||||||||||||||||||
Home equity – term | 0 | 0 | 0 | 57 | 75 | ||||||||||||||||||||||||||||||||||||
Home equity – lines of credit | 0 | 0 | 0 | 592 | 597 | ||||||||||||||||||||||||||||||||||||
Installment and other loans | 0 | 0 | 0 | 2 | 2 | ||||||||||||||||||||||||||||||||||||
$ | 3,545 | $ | 3,588 | $ | 1,312 | $ | 17,489 | $ | 27,536 | ||||||||||||||||||||||||||||||||
The following tables summarize the average recorded investment in impaired loans and related interest income recognized on loans deemed to be impaired for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||||||
Impaired | Income | Impaired | Income | ||||||||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 4,249 | $ | 41 | $ | 8,499 | $ | 48 | |||||||||||||||||||||||||||||||||
Non-owner occupied | 3,980 | 50 | 14,928 | 37 | |||||||||||||||||||||||||||||||||||||
Multi-family | 168 | 16 | 1,203 | 120 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 5,108 | 45 | 12,440 | 57 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 345 | 0 | 2,049 | 21 | |||||||||||||||||||||||||||||||||||||
Commercial and land development | 2,613 | 0 | 13,608 | 100 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,875 | 0 | 3.359 | 16 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 2,421 | 29 | 3,459 | 41 | |||||||||||||||||||||||||||||||||||||
Home equity—term | 47 | 2 | 46 | 1 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 116 | 4 | 383 | 17 | |||||||||||||||||||||||||||||||||||||
Installment and other loans | 1 | 0 | 6 | 1 | |||||||||||||||||||||||||||||||||||||
$ | 20,923 | $ | 187 | $ | 59,980 | $ | 459 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||||||
Impaired | Income | Impaired | Income | ||||||||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 3,270 | $ | 99 | $ | 9,864 | $ | 92 | |||||||||||||||||||||||||||||||||
Non-owner occupied | 3,605 | 86 | 17,099 | 397 | |||||||||||||||||||||||||||||||||||||
Multi-family | 89 | 16 | 2,008 | 120 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 4,875 | 60 | 26,905 | 266 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 602 | 0 | 1,881 | 23 | |||||||||||||||||||||||||||||||||||||
Commercial and land development | 2,967 | 2 | 14,863 | 287 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,724 | 65 | 2,748 | 27 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 2,528 | 31 | 2,730 | 73 | |||||||||||||||||||||||||||||||||||||
Home equity—term | 47 | 2 | 181 | 2 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 336 | 4 | 436 | 19 | |||||||||||||||||||||||||||||||||||||
Installment and other loans | 1 | 0 | 9 | 2 | |||||||||||||||||||||||||||||||||||||
$ | 20,044 | $ | 365 | $ | 78,724 | $ | 1,308 | ||||||||||||||||||||||||||||||||||
The following table presents impaired loans that are troubled debt restructurings, with the recorded investment as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Accruing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner Occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 3 | 4,165 | 2 | 1,981 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 1 | 204 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 1 | 520 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 122 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 1 | 454 | 2 | 749 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 0 | 0 | 1 | 36 | |||||||||||||||||||||||||||||||||||||
Total accruing | 7 | 5,289 | 7 | 3,092 | |||||||||||||||||||||||||||||||||||||
Nonaccruing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 0 | 0 | 1 | 7 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied | 1 | 713 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 1 | 196 | 4 | 1,209 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 114 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 1 | 283 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
4 | 1,306 | 5 | 1,216 | ||||||||||||||||||||||||||||||||||||||
11 | $ | 6,595 | 12 | $ | 4,308 | ||||||||||||||||||||||||||||||||||||
The following table presents restructured loans, included in nonaccrual status, that were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Three Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied | 0 | $ | 0 | 1 | $ | 193 | |||||||||||||||||||||||||||||||||||
Nine Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 0 | $ | 0 | 1 | $ | 6 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 0 | 0 | 1 | 193 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 5 | 1,269 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 2 | 772 | |||||||||||||||||||||||||||||||||||||
0 | $ | 0 | 9 | $ | 2,240 | ||||||||||||||||||||||||||||||||||||
The following table presents the number of loans modified with the recorded investment representing both their pre-modification and post-modification investment balances for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Three Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 2 | 3,457 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
4 | $ | 3,607 | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||
Nine Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 2 | 3,457 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 1 | 524 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 203 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 0 | 0 | 1 | 299 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 0 | 0 | 1 | 37 | |||||||||||||||||||||||||||||||||||||
5 | $ | 4,131 | 3 | $ | 539 | ||||||||||||||||||||||||||||||||||||
The loans presented above were considered troubled debt restructurings as the result of the Company agreeing to below market interest rates for the risk of the transaction, allowing the loan to remain on interest only status, or for residential mortgage loans, a temporary reduction in interest rates for periods not exceeding 12 months in order to assist the borrowers to improve cash flows during such periods. For troubled debt restructurings in default of their modified terms, impairment is determined on a collateral dependent approach. | |||||||||||||||||||||||||||||||||||||||||
No additional commitments have been made to borrowers whose loans are considered troubled debt restructurings. | |||||||||||||||||||||||||||||||||||||||||
Management further monitors the performance and credit quality of the loan portfolio by analyzing the length of time a portfolio is past due, by aggregating loans based on its delinquencies. The following table presents the classes of loans in the portfolio summarized by aging categories of performing loans and nonaccrual loans as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90+ | Total | Non- | Total | ||||||||||||||||||||||||||||||||||
(still accruing) | Past Due | Accrual | Loans | ||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 106,279 | $ | 594 | $ | 0 | $ | 0 | $ | 594 | $ | 4,431 | $ | 111,304 | |||||||||||||||||||||||||||
Non-owner occupied | 142,569 | 0 | 0 | 0 | 0 | 1,523 | 144,092 | ||||||||||||||||||||||||||||||||||
Multi-family | 19,321 | 0 | 0 | 0 | 0 | 335 | 19,656 | ||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 55,026 | 84 | 0 | 0 | 84 | 4,274 | 59,384 | ||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,382 | 0 | 0 | 0 | 0 | 343 | 1,725 | ||||||||||||||||||||||||||||||||||
Commercial and land development | 21,250 | 193 | 8 | 20 | 221 | 2,016 | 23,487 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 31,500 | 875 | 0 | 0 | 875 | 1,843 | 34,218 | ||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 0 | 0 | 0 | 0 | 0 | 63,291 | ||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 120,955 | 1,124 | 534 | 0 | 1,658 | 1,875 | 124,488 | ||||||||||||||||||||||||||||||||||
Home equity—term | 18,933 | 160 | 61 | 0 | 221 | 50 | 19,204 | ||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 75,962 | 288 | 49 | 0 | 337 | 123 | 76,422 | ||||||||||||||||||||||||||||||||||
Installment and other loans | 6,284 | 50 | 37 | 0 | 87 | 0 | 6,371 | ||||||||||||||||||||||||||||||||||
$ | 662,752 | $ | 3,368 | $ | 689 | $ | 20 | $ | 4,077 | $ | 16,813 | $ | 683,642 | ||||||||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90+ | Total | Non- | Total | ||||||||||||||||||||||||||||||||||
(still accruing) | Past Due | Accrual | Loans | ||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 141,833 | $ | 40 | $ | 0 | $ | 0 | $ | 40 | $ | 2,417 | $ | 144,290 | |||||||||||||||||||||||||||
Non-owner occupied | 119,320 | 129 | 0 | 0 | 129 | 1,481 | 120,930 | ||||||||||||||||||||||||||||||||||
Multi-family | 21,726 | 0 | 0 | 0 | 0 | 19 | 21,745 | ||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 60,890 | 122 | 205 | 0 | 327 | 5,164 | 66,381 | ||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,770 | 0 | 171 | 0 | 171 | 909 | 2,850 | ||||||||||||||||||||||||||||||||||
Commercial and land development | 26,054 | 511 | 1 | 0 | 512 | 3,809 | 30,375 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,348 | 296 | 0 | 0 | 296 | 1,696 | 39,340 | ||||||||||||||||||||||||||||||||||
Municipal | 68,018 | 0 | 0 | 0 | 0 | 0 | 68,018 | ||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 104,933 | 1,565 | 270 | 0 | 1,835 | 1,833 | 108,601 | ||||||||||||||||||||||||||||||||||
Home equity – term | 14,609 | 81 | 0 | 0 | 81 | 57 | 14,747 | ||||||||||||||||||||||||||||||||||
Home equity – Lines of credit | 78,880 | 0 | 12 | 0 | 12 | 556 | 79,448 | ||||||||||||||||||||||||||||||||||
Installment and other loans | 6,837 | 161 | 14 | 0 | 175 | 2 | 7,014 | ||||||||||||||||||||||||||||||||||
$ | 682,218 | $ | 2,905 | $ | 673 | $ | 0 | $ | 3,578 | $ | 17,943 | $ | 703,739 | ||||||||||||||||||||||||||||
The Company maintains the allowance for loan losses at a level believed adequate by management to absorb losses inherent in the portfolio. The allowance is established and maintained through a provision for loan losses charged to earnings. Quarterly, management assesses the adequacy of the allowance for loan losses utilizing a defined methodology, which includes the specific credit evaluation of impaired loans as discussed above, past loan loss historical experience, and qualitative factors. Management believes the approach properly addresses the requirements of ASC Section 310-10-35 for loans individually identified as impaired, and ASC Subtopic 450-20 for loans collectively evaluated for impairment, and other bank regulatory guidance. | |||||||||||||||||||||||||||||||||||||||||
In connection with its quarterly evaluation of the adequacy of the allowance for loan losses, management continually reviews its methodology to determine if it continues to properly address the risk in the loan portfolio. For each loan class presented above, general allowances are provided for loans that are collectively evaluated for impairment, which is based on quantitative factors, principally historical loss trends for the respective loan class, adjusted for qualitative factors. In response to the improved risk profile within the loan portfolio at December 31, 2012, the look back period for historical losses was extended to 12 quarters, weighted one-half for the most recent four quarters, and one quarter for each of the two previous four quarter periods in order to appropriately capture the loss history in the loan segment. Again, management considered current economic and real estate conditions, the trends in historical charge-off percentages that resulted from applying partial charge-offs to impaired loans, and the impact of distressed loan sales during the year. Based on management’s assessment and in compliance with regulatory guidance, the Company began recording partial charge offs on collateral dependent loans in the first quarter of 2012, eliminating the need for specific reserves on collateral dependent loans. Although both methods are acceptable under ASC 310, the revised method is more consistent with regulatory directives and was implemented by the Company resulting in increased charge-offs during 2012. | |||||||||||||||||||||||||||||||||||||||||
In addition to the quantitative analysis, adjustments to the reserve requirements are allocated to loans collectively evaluated for impairment based on additional qualitative factors. As of September 30, 2013 and December 31, 2012, the qualitative factors used by management to adjust the historical loss percentage to the anticipated loss allocation, which may range from a minus 150 basis points to a positive 150 basis points per factor, include: | |||||||||||||||||||||||||||||||||||||||||
Nature and Volume of Loans – Loan growth in the current and subsequent quarters based on the Bank’s targeted growth and strategic plan, coupled with the types of loans booked based on risk management and credit culture, number of exceptions to loan policy, and supervisory loan to value exceptions, etc. | |||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit and Changes within Credit Concentrations – Factors considered include the composition of the Bank’s overall portfolio and management’s evaluation related to concentration risk management and the inherent risk associated with the concentrations identified. | |||||||||||||||||||||||||||||||||||||||||
Underwriting Standards and Recovery Practices – Factors considered include changes to underwriting standards and perceived impact on anticipated losses, trends in the number of exceptions to loan policy; supervisory loan to value exceptions; and administration of loan recovery practices. | |||||||||||||||||||||||||||||||||||||||||
Delinquency Trends – Factors considered include the delinquency percentages noted in the portfolio relative to economic conditions, severity of the delinquencies, and whether the ratios are trending upwards or downwards. | |||||||||||||||||||||||||||||||||||||||||
Classified Loans Trends – Factors considered include the internal loan ratings of the portfolio, the severity of the ratings, whether the loan segment’s ratings show a more favorable or less favorable trend, and underlying market conditions and its impact on the collateral values securing the loans. | |||||||||||||||||||||||||||||||||||||||||
Experience, Ability and Depth of Management/Lending staff – Factors considered include the years’ experience of senior and middle management and the lending staff and turnover of the staff, and instances of repeat criticisms of ratings. | |||||||||||||||||||||||||||||||||||||||||
Quality of Loan Review – Factors include the years of experience of the loan review staff, in-house versus outsourced provider of review, turnover of staff and the perceived quality of their work in relation to other external information. | |||||||||||||||||||||||||||||||||||||||||
National and Local Economic Conditions – Ratios and factors considered include trends in the consumer price index (CPI), unemployment rates, housing price index, housing statistics compared to the prior year, bankruptcy rates, regulatory and legal environment risks and competition. | |||||||||||||||||||||||||||||||||||||||||
Prior to December 31, 2012, qualitative factors were also utilized in the determination of loans collectively evaluated for impairment, but consisted of only five factors, which are included in the eight factors listed above, with anticipated loss allocations that ranged from 0-8 basis points. It was determined that the qualitative adjustments would be expanded to the current range of minus 150 basis points to a positive 150 basis points, as the prior range of 0-8 basis points was deemed to be too restrictive and did not adequately address the credit improvement in the remaining loan portfolio. | |||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Total | Residential | Installment | Total | Unallocated | Total | |||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 11,288 | $ | 1,946 | $ | 875 | $ | 254 | $ | 14,363 | $ | 3,796 | $ | 134 | $ | 3,930 | $ | 1,805 | $ | 20,098 | |||||||||||||||||||||
Provision for loan losses | 3,495 | (1,117 | ) | (2,651 | ) | (12 | ) | (285 | ) | 2 | 11 | 13 | 272 | 0 | |||||||||||||||||||||||||||
Charge-offs | (1,767 | ) | (2 | ) | 0 | 0 | (1,769 | ) | 0 | (46 | ) | (46 | ) | 0 | (1,815 | ) | |||||||||||||||||||||||||
Recoveries | 45 | 267 | 2,530 | 0 | 2,842 | 100 | 27 | 127 | 0 | 2,969 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 15,151 | $ | 3,898 | $ | 126 | $ | 4,024 | $ | 2,077 | $ | 21,252 | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 23,521 | $ | 6,803 | $ | 2,005 | $ | 1,012 | $ | 33,341 | $ | 887 | $ | 69 | $ | 956 | $ | 1,938 | $ | 36,235 | |||||||||||||||||||||
Provision for loan losses | 584 | 5,020 | 250 | (783 | ) | 5,071 | 169 | 58 | 227 | (198 | ) | 5,100 | |||||||||||||||||||||||||||||
Charge-offs | (782 | ) | (4,139 | ) | (69 | ) | 0 | (4,990 | ) | (109 | ) | (46 | ) | (155 | ) | 0 | (5,145 | ) | |||||||||||||||||||||||
Recoveries | 483 | 13 | 8 | 0 | 504 | 4 | 2 | 6 | 0 | 510 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 23,806 | $ | 7,697 | $ | 2,194 | $ | 229 | $ | 33,926 | $ | 951 | $ | 83 | $ | 1,034 | $ | 1,740 | $ | 36,700 | |||||||||||||||||||||
Activity in the allowance for loan losses for the nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Total | Residential | Installment | Total | Unallocated | Total | |||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 13,719 | $ | 3,502 | $ | 1,635 | $ | 223 | $ | 19,079 | $ | 2,275 | $ | 85 | $ | 2,360 | $ | 1,727 | $ | 23,166 | |||||||||||||||||||||
Provision for loan losses | 3,653 | (3,943 | ) | (3,309 | ) | 19 | (3,580 | ) | 1,750 | 80 | 1,830 | 350 | (1,400 | ) | |||||||||||||||||||||||||||
Charge-offs | (4,444 | ) | (146 | ) | (114 | ) | 0 | (4,704 | ) | (263 | ) | (92 | ) | (355 | ) | 0 | (5,059 | ) | |||||||||||||||||||||||
Recoveries | 133 | 1,681 | 2,542 | 0 | 4,356 | 136 | 53 | 189 | 0 | 4,545 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 15,151 | $ | 3,898 | $ | 126 | $ | 4,024 | $ | 2,077 | $ | 21,252 | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 29,559 | $ | 9,708 | $ | 1,085 | $ | 789 | $ | 41,141 | $ | 933 | $ | 75 | $ | 1,008 | $ | 1,566 | $ | 43,715 | |||||||||||||||||||||
Provision for loan losses | 33,464 | 11,419 | 2,306 | (560 | ) | 46,629 | 384 | 113 | 497 | 174 | 47,300 | ||||||||||||||||||||||||||||||
Charge-offs | (41,222 | ) | (14,116 | ) | (1,289 | ) | 0 | (56,627 | ) | (381 | ) | (115 | ) | (496 | ) | 0 | (57,123 | ) | |||||||||||||||||||||||
Recoveries | 2,005 | 686 | 92 | 0 | 2,783 | 15 | 10 | 25 | 0 | 2,808 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 23,806 | $ | 7,697 | $ | 2,194 | $ | 229 | $ | 33,926 | $ | 951 | $ | 83 | $ | 1,034 | $ | 1,740 | $ | 36,700 | |||||||||||||||||||||
The following tables summarize the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related allowance for loan loss allocation for each at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Residential | Installment | Unallocated | Total | |||||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Loans allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,878 | $ | 2,879 | $ | 1,843 | $ | 0 | $ | 2,502 | $ | 0 | $ | 0 | $ | 22,102 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 319,558 | 22,333 | 32,375 | 63,291 | 217,612 | 6,371 | 0 | 661,540 | |||||||||||||||||||||||||||||||||
$ | 334,436 | $ | 25,212 | $ | 34,218 | $ | 63,291 | $ | 220,114 | $ | 6,371 | $ | 0 | $ | 683,642 | ||||||||||||||||||||||||||
Allowance for loan losses allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 476 | $ | 0 | $ | 0 | $ | 0 | $ | 202 | $ | 0 | $ | 0 | $ | 678 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 12,585 | 1,094 | 754 | 242 | 3,696 | 126 | 2,077 | 20,574 | |||||||||||||||||||||||||||||||||
$ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 3,898 | $ | 126 | $ | 2,077 | $ | 21,252 | ||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Loans allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11,266 | $ | 4,718 | $ | 1,818 | $ | 0 | $ | 3,230 | $ | 2 | $ | 0 | $ | 21,034 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 342,080 | 28,507 | 37,522 | 68,018 | 199,566 | 7,012 | 0 | 682,705 | |||||||||||||||||||||||||||||||||
$ | 353,346 | $ | 33,225 | $ | 39,340 | $ | 68,018 | $ | 202,796 | $ | 7,014 | $ | 0 | $ | 703,739 | ||||||||||||||||||||||||||
Allowance for loan losses allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 375 | $ | 9 | $ | 928 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,312 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 13,344 | 3,493 | 707 | 223 | 2,275 | 85 | 1,727 | 21,854 | |||||||||||||||||||||||||||||||||
$ | 13,719 | $ | 3,502 | $ | 1,635 | $ | 223 | $ | 2,275 | $ | 85 | $ | 1,727 | $ | 23,166 | ||||||||||||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
NOTE 4. INCOME TAXES | |||||||||||||||||
The Company files income tax returns in the U. S. federal jurisdiction and the Commonwealth of Pennsylvania. The Bank also files an income tax return in the State of Maryland. The Company is no longer subject to U. S. federal or state income tax examination by tax authorities for years before 2009. | |||||||||||||||||
Included in the balance sheet at September 30, 2013 and December 31, 2012, are tax positions related to loan charge-offs for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the tax authority to an earlier period. | |||||||||||||||||
The components of income tax expense for the three and nine months ended September 30, 2013 and 2012 are summarized as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Current year provision (benefit): | |||||||||||||||||
Federal | $ | 0 | $ | (3,894 | ) | $ | 60 | $ | (13,388 | ) | |||||||
State | (281 | ) | 0 | (281 | ) | (46 | ) | ||||||||||
Deferred tax expense (benefit) | 532 | 3,050 | 1,320 | 512 | |||||||||||||
Valuation allowance on deferred taxes | (532 | ) | 19,872 | (1,320 | ) | 19,872 | |||||||||||
Net income tax expense (benefit) | $ | (281 | ) | $ | 19,028 | $ | (221 | ) | $ | 6,950 | |||||||
The provision for income taxes includes $55,000 and ($1,000) of applicable income tax expense (benefit) related to net securities gains (losses) for the three months ended September 30, 2013 and 2012. The provision for income taxes includes $98,000 and $1,688,000 of applicable income tax expense related to net securities gains for the nine months ended September 30, 2013 and 2012. | |||||||||||||||||
The components of the net deferred tax asset (liability), included in other assets (liabilities), are as follows: | |||||||||||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Allowance for loan losses | $ | 7,762 | $ | 9,672 | |||||||||||||
Deferred compensation | 480 | 477 | |||||||||||||||
Retirement plans and salary continuation | 1,558 | 1,473 | |||||||||||||||
Stock compensation | 189 | 184 | |||||||||||||||
Off balance sheet reserves | 214 | 231 | |||||||||||||||
Nonaccrual loan interest | 263 | 228 | |||||||||||||||
Net unrealized losses on securities available for sale | 1,983 | 0 | |||||||||||||||
Goodwill | 191 | 214 | |||||||||||||||
Low income housing credit carryforward | 832 | 806 | |||||||||||||||
Alternative minimum tax credit carryforward | 60 | 0 | |||||||||||||||
Charitable contribution carryforward | 232 | 391 | |||||||||||||||
Net operating loss carryforward | 9,156 | 8,466 | |||||||||||||||
Other | 179 | 237 | |||||||||||||||
Total deferred tax assets | 23,099 | 22,379 | |||||||||||||||
Valuation allowance | (18,915 | ) | (20,235 | ) | |||||||||||||
4,184 | 2,144 | ||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Depreciation | 1,107 | 1,232 | |||||||||||||||
Net unrealized gains on securities available for sale | 0 | 984 | |||||||||||||||
Purchase accounting adjustments | 515 | 575 | |||||||||||||||
Other | 579 | 337 | |||||||||||||||
Total deferred tax liabilities | 2,201 | 3,128 | |||||||||||||||
Net deferred asset (liability) | $ | 1,983 | $ | (984 | ) | ||||||||||||
As of September 30, 2013, the Company has charitable contribution, low-income housing, and net operating loss carryforwards that expire through 2018, 2032 and 2032, respectively. | |||||||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxes paid in prior years, projected future taxable income and available tax planning strategies, and other factors in making this assessment. Based upon the level of historical taxable income, projections for future taxable income over the periods and other available evidence, management believed it was not more likely than not that the net deferred tax asset would be realized at September 30, 2013 and December 31, 2012. | |||||||||||||||||
Accordingly, a full valuation allowance for the net amount of the deferred tax assets, which represented future deductible temporary differences on our tax returns, was established at September 30, 2013 and December 31, 2012. Primary factors contributing to this determination at September 30, 2013 and December 31, 2012 included: | |||||||||||||||||
• | The Company has exhausted all of its carryback availability to 2010 – 2011, as we had recognized current federal income tax receivable which fully offset 2010 and 2011’s taxable income. | ||||||||||||||||
• | As of September 30, 2013 and December 31, 2012, the Company was in a three-year cumulative loss position, representing significant negative evidence against the realizability of the deferred tax asset, and we do not expect to be out of a cumulative loss position over the next few quarters. | ||||||||||||||||
• | The entire balance of the deferred tax asset is disallowed for purposes of calculating regulatory capital ratios as of September 30, 2013 and December 31, 2012. | ||||||||||||||||
Given the current uncertainty of the economy and in the event economic and real estate conditions decline, additional losses may result in our loan portfolio above those already provided for. As a result, we have placed less weight on our current forecast of earnings until the point where we demonstrate sustainable earnings for the realization of the deferred tax asset. |
Shareholders_Equity_and_Regula
Shareholders' Equity and Regulatory Capital | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Shareholders' Equity and Regulatory Capital | ' | ||||||||||||||||||||||||
NOTE 5. SHAREHOLDERS’ EQUITY AND REGULATORY CAPITAL | |||||||||||||||||||||||||
The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to financial holding companies. | |||||||||||||||||||||||||
Quantitative measures established by regulators to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (as set forth in the following table) of total and Tier 1 capital (as defined in regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of September 30, 2013 and December 31, 2012, that the Company and the Bank meet all capital adequacy requirements to which they are subject. | |||||||||||||||||||||||||
As of September 30, 2013, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company and the Bank’s actual capital ratios as of September 30, 2013 and December 31, 2012 are also presented in the table. | |||||||||||||||||||||||||
Actual | Minimum Capital | Minimum to Be Well | |||||||||||||||||||||||
Requirement | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | $ | 102,017 | 14.1 | % | $ | 58,012 | 8 | % | n/a | n/a | |||||||||||||||
Orrstown Bank | 100,067 | 13.8 | % | 57,966 | 8 | % | $ | 72,458 | 10 | % | |||||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 92,796 | 12.8 | % | 29,006 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 90,853 | 12.5 | % | 28,983 | 4 | % | 43,475 | 6 | % | ||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 92,796 | 7.9 | % | 47,137 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 90,853 | 7.7 | % | 47,169 | 4 | % | 58,961 | 5 | % | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | $ | 94,928 | 12.2 | % | $ | 62,438 | 8 | % | n/a | n/a | |||||||||||||||
Orrstown Bank | 92,466 | 11.9 | % | 62,418 | 8 | % | $ | 78,023 | 10 | % | |||||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 84,999 | 10.9 | % | 31,219 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 82,540 | 10.6 | % | 31,209 | 4 | % | 46,814 | 6 | % | ||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 84,999 | 6.8 | % | 49,840 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 82,540 | 6.6 | % | 49,873 | 4 | % | 62,341 | 5 | % |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
NOTE 6. EARNINGS PER SHARE | |||||||||||||||||
Earnings per share for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) | $ | 2,109 | $ | (21,352 | ) | $ | 7,077 | $ | (39,484 | ) | |||||||
Weighted average shares outstanding (basic) | 8,091 | 8,065 | 8,089 | 8,062 | |||||||||||||
Impact of common stock equivalents | 0 | 0 | 0 | 0 | |||||||||||||
Weighted average shares outstanding (diluted) | 8,091 | 8,065 | 8,089 | 8,062 | |||||||||||||
Per share information: | |||||||||||||||||
Basic earnings per share | $ | 0.26 | $ | (2.65 | ) | $ | 0.87 | $ | (4.90 | ) | |||||||
Diluted earnings per share | 0.26 | (2.65 | ) | 0.87 | (4.90 | ) | |||||||||||
Stock options for 207,000 and 305,000 shares of common stock were not considered in computing diluted earnings per share for the three months ended September 30, 2013 and 2012 as their exercise would have been antidilutive as the exercise price exceeded the average market value. Stock options for 230,000 and 305,000 shares of common stock were not considered in computing diluted earnings per share for the nine months ended September 30, 2013 and 2012 as their exercise would have been antidilutive as the exercise price exceeded the average market value. |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance-Sheet Risk | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Financial Instruments with Off-Balance-Sheet Risk | ' | ||||||||
NOTE 7. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK | |||||||||
The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financial needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
Contract or Notional Amount | |||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Commitments to fund: | |||||||||
Revolving, open ended home equity loans | $ | 83,582 | $ | 77,674 | |||||
1-4 family residential construction loans | 1,910 | 1,002 | |||||||
Commercial real estate, construction and land development loans | 10,320 | 1,021 | |||||||
Commercial, industrial and other loans | 35,857 | 60,250 | |||||||
Standby letters of credit | 6,226 | 11,551 | |||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, equipment, residential real estate, and income-producing commercial properties. | |||||||||
Standby letters of credit and financial guarantees written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Company holds collateral supporting those commitments when deemed necessary by management. The current amount of liability, as of September 30, 2013 and December 31, 2012, for guarantees under standby letters of credit issued was not material. | |||||||||
The Company currently maintains a reserve in other liabilities totaling $513,000 and $583,000 at September 30, 2013 and December 31, 2012 for off-balance sheet credit exposures that currently are not funded, based on historical loss experience of the related loan class. For the three months ended September 30, 2013 and 2012, $76,000 was charged to other noninterest expense for this exposure and for the nine months ended September 30, 2013 and 2012, the amount expensed was ($70,000) and $145,000. | |||||||||
The Company has sold loans to the Federal Home Loan Bank of Chicago as part of its Mortgage Partnership Finance Program (“MPF Program”). Under the terms of the MPF Program, there is limited recourse back to the Company for loans that do not perform in accordance with the terms of the loan agreement. Each loan that is sold under the program is “credit enhanced” such that the individual loan’s rating is raised to “AA,” as determined by the Federal Home Loan Bank of Chicago. The sum of total loans sold under the MPF Program was $64,504,000 and $115,630,000 at September 30, 2013 and December 31, 2012, with limited recourse back to the Company on these loans of $8,379,000 and $8,420,000 at these dates. Many of the loans sold under the MPF Program have primary mortgage insurance, which reduces the Company’s overall exposure. The Company is in the process of foreclosing on loans sold under the MPF program or recovering amounts previously charged off, with a resulting charge (credit) of $76,000 and ($101,000) for the three months ended September 30, 2013 and 2012, and $20,000 and ($4,000) for the nine months ended September 30, 2013 and 2012. These amounts, charged to other noninterest expenses represent an estimate of the Company’s loss under its recourse exposure. |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||
NOTE 8. FAIR VALUE DISCLOSURES | |||||||||||||||||||||
The Company meets the requirements for disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Certain financial instruments and all non-financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. | |||||||||||||||||||||
Fair value measurements under GAAP defines fair value, describes a framework for measuring fair value and requires disclosures about fair value measurements by establishing a three-level hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used to measure the assets or liabilities fall within different levels of the hierarchy, the classification is based on the lowest level input that is significant to the fair value measurement of the asset or liability. Classification of assets and liabilities within the hierarchy considers the markets in which the assets and liabilities are traded and the reliability and transparency of the assumptions used to determine fair value. | |||||||||||||||||||||
The three levels are defined as follows: Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market for the asset or liability, for substantially the full term of the financial instrument. Level 3 – the valuation methodology is derived from model-based techniques in which at least one significant input is unobservable to the fair value measurement and based on the Company’s own assumptions about market participants’ assumptions. | |||||||||||||||||||||
Following is a description of the valuation methodologies used for instruments measured on a recurring basis at estimated fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy: | |||||||||||||||||||||
Securities | |||||||||||||||||||||
Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities would include highly liquid government bonds, mortgage products and exchange traded equities. If quoted market prices are not available, securities are classified within Level 2 and fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flow. Level 2 securities would include U.S. agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset backed and other securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. All of the Company’s securities are classified as available for sale. | |||||||||||||||||||||
The Company had no fair value liabilities at September 30, 2013 and December 31, 2012. A summary of assets at September 30, 2013 and December 31, 2012, measured at estimated fair value on a recurring basis was as follows: | |||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||||||
Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury | $ | 0 | $ | 26,027 | $ | 0 | 26,027 | ||||||||||||||
U.S. Government Agencies | 0 | 26,403 | 0 | 26,403 | |||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 0 | 39,532 | 0 | 39,532 | |||||||||||||||||
States and political subdivisions | 0 | 67,945 | 0 | 67,945 | |||||||||||||||||
GSE residential mortgage-backed securities | 0 | 185,660 | 0 | 185,660 | |||||||||||||||||
GSE commercial mortgage-backed securities | 0 | 38,886 | 0 | 38,886 | |||||||||||||||||
Total debt securities | 0 | 384,453 | 0 | 384,453 | |||||||||||||||||
Equity securities—financial services | 0 | 69 | 0 | 69 | |||||||||||||||||
Total securities | $ | 0 | $ | 384,522 | $ | 0 | $ | 384,522 | |||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||||||
Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury | $ | 0 | $ | 26,010 | $ | 0 | $ | 26,010 | |||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 0 | 44,762 | 0 | 44,762 | |||||||||||||||||
States and political subdivisions | 0 | 38,909 | 0 | 38,909 | |||||||||||||||||
GSE residential mortgage-backed securities | 0 | 160,799 | 0 | 160,799 | |||||||||||||||||
GSE commercial mortgage-backed securities | 0 | 31,421 | 0 | 31,421 | |||||||||||||||||
Total debt securities | 0 | 301,901 | 0 | 301,901 | |||||||||||||||||
Equity securities—financial services | 0 | 69 | 0 | 69 | |||||||||||||||||
Total securities | $ | 0 | $ | 301,970 | $ | 0 | $ | 301,970 | |||||||||||||
Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. | |||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due, according to the contractual terms of the loan agreement, will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral securing the loan, less estimated costs to sell. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The value of the real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, or if management adjusts the appraisal value, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal, if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). Impaired loans with an allocation to the allowance for loan losses are measured at fair value on a nonrecurring basis; however, not all impaired loans have an allocation to the allowance for loan losses. Any fair value adjustments are recorded in the period incurred as a provision for loan losses on the consolidated statements of operations. Specific allocations to the allowance for loan losses or cumulative partial charge-offs were $2,562,000 and $10,843,000 at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
Foreclosed Real Estate | |||||||||||||||||||||
Other real estate property acquired through foreclosure is initially recorded at the fair value of the property at the transfer date less estimated selling cost. Subsequently, other real estate owned is carried at the lower of its carrying value or the fair value less estimated selling cost. Fair value is usually determined based upon an independent third-party appraisal of the property or occasionally upon a recent sales offer. Specific cumulative charges to value the real estate owned at the lower of cost or fair value on properties held at September 30, 2013 and December 31, 2012 were $412,000 and $581,000. | |||||||||||||||||||||
Mortgage Servicing Rights | |||||||||||||||||||||
The fair value of mortgage servicing rights is estimated to be equal to its carrying value, unless the quarterly valuation model calculates the present value of the estimated net servicing income as less than its carrying value, in which case a lower of cost or fair value charge is taken. As of September 30, 2013 and December 31, 2012, a $0 and $644,000 lower of cost or fair value reserve existed on the mortgage servicing rights portfolio. | |||||||||||||||||||||
A summary of assets at September 30, 2013 and December 31, 2012 measured at fair value on a nonrecurring basis is as follows: | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Impaired loans, net | $ | 0 | $ | 0 | $ | 4,692 | $ | 4,692 | |||||||||||||
Foreclosed real estate | 0 | 0 | 659 | 659 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Impaired loans, net | $ | 0 | $ | 0 | $ | 10,675 | $ | 10,675 | |||||||||||||
Foreclosed real estate | 0 | 0 | 1,101 | 1,101 | |||||||||||||||||
Mortgage servicing rights | 0 | 0 | 2,296 | 2,296 | |||||||||||||||||
The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation | Unobservable Input | Range | |||||||||||||||||
Estimate | Techniques | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Impaired loans | $ | 4,692 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | ||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Foreclosed real estate | 659 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | |||||||||||||||||
Management adjustments for liquidation expenses | 5%-25% discount | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Impaired loans | $ | 10,675 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | ||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Foreclosed real estate | 1,101 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | |||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Mortgage servicing rights | 2,296 | Discounted cash flows | Remaining term | 4.0 years | |||||||||||||||||
Discount rate | 10.70% | ||||||||||||||||||||
Fair values of financial instruments | |||||||||||||||||||||
In addition to those disclosed above, the following methods and assumptions were used by the Company in estimating fair values of financial instruments as disclosed herein: | |||||||||||||||||||||
Cash and Due from Banks and Interest Bearing Deposits with Banks | |||||||||||||||||||||
The carrying amounts of cash and due from banks and interest bearing deposits with banks approximate their fair value. | |||||||||||||||||||||
Loans Held for Sale | |||||||||||||||||||||
Loans held for sale are carried at the lower of cost or fair value. These loans typically consist of one-to-four family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale. | |||||||||||||||||||||
Loans Receivable | |||||||||||||||||||||
For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values are based on carrying values. Fair values for fixed rate loans are estimated using discounted cash flow analyses, using interest rates currently being offered in the market for loans with similar terms to borrowers of similar credit quality. | |||||||||||||||||||||
Restricted Investment in Bank Stock | |||||||||||||||||||||
These investments are carried at cost. The Company is required to maintain minimum investment balances in these stocks, which are not actively traded and therefore have no readily determinable market value. | |||||||||||||||||||||
Deposit Liabilities | |||||||||||||||||||||
The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money market accounts and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed-rate certificates of deposit and IRAs are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market to a schedule of aggregated expected maturities on time deposits. | |||||||||||||||||||||
Short-Term Borrowings | |||||||||||||||||||||
The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within 90 days approximate their fair values. Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||
The fair value of the Company’s fixed rate long-term borrowings is estimated using a discounted cash flow analysis based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements. The carrying amounts of variable-rate long-term borrowings approximate their fair values at the reporting date. | |||||||||||||||||||||
Accrued Interest | |||||||||||||||||||||
The carrying amounts of accrued interest approximate their fair values. | |||||||||||||||||||||
Off-Balance-Sheet Instruments | |||||||||||||||||||||
The Company generally does not charge commitment fees. Fees for standby letters of credit and other off-balance-sheet instruments are not significant. | |||||||||||||||||||||
The estimated fair values of the Company’s financial statements were as follows at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | |||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 17,502 | $ | 17,502 | $ | 17,502 | $ | 0 | $ | 0 | |||||||||||
Interest bearing deposits with banks | 52,874 | 52,874 | 52,874 | 0 | 0 | ||||||||||||||||
Restricted investments in bank stock | 8,037 | 8,037 | 0 | 0 | 8,037 | ||||||||||||||||
Securities available for sale | 384,522 | 384,522 | 0 | 384,522 | 0 | ||||||||||||||||
Loans held for sale | 1,648 | 1,648 | 0 | 1,648 | 0 | ||||||||||||||||
Loans, net of allowance for loan losses | 662,390 | 669,446 | 0 | 0 | 669,446 | ||||||||||||||||
Accrued interest receivable | 3,380 | 3,380 | 0 | 0 | 3,380 | ||||||||||||||||
Mortgage servicing rights | 2,844 | 3,162 | 0 | 0 | 3,162 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | 1,034,933 | 1,037,181 | 0 | 1,037,181 | 0 | ||||||||||||||||
Short-term borrowings | 25,320 | 25,320 | 0 | 25,320 | 0 | ||||||||||||||||
Long-term debt | 16,431 | 17,096 | 0 | 17,096 | 0 | ||||||||||||||||
Accrued interest payable | 331 | 331 | 0 | 331 | 0 | ||||||||||||||||
Off-balance sheet instruments | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
December 31, 2012: | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 16,933 | $ | 16,933 | $ | 16,933 | $ | 0 | $ | 0 | |||||||||||
Interest bearing deposits with banks | 133,755 | 133,755 | 133,755 | 0 | 0 | ||||||||||||||||
Restricted investments in bank stock | 9,804 | 9,804 | 0 | 0 | 9,804 | ||||||||||||||||
Securities available for sale | 301,970 | 301,970 | 0 | 301,970 | 0 | ||||||||||||||||
Loans held for sale | 7,862 | 7,862 | 0 | 7,862 | 0 | ||||||||||||||||
Loans, net of allowance for loan losses | 680,573 | 681,414 | 0 | 0 | 681,414 | ||||||||||||||||
Accrued interest receivable | 3,188 | 3,188 | 0 | 0 | 3,188 | ||||||||||||||||
Mortgage servicing rights | 2,296 | 2,296 | 0 | 0 | 2,296 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 1,085,039 | $ | 1,089,344 | 0 | $ | 1,089,344 | 0 | |||||||||||||
Short-term borrowings | 9,650 | 9,650 | 0 | 9,650 | 0 | ||||||||||||||||
Long-term debt | 37,470 | 38,676 | 0 | 38,676 | 0 | ||||||||||||||||
Accrued interest payable | 424 | 424 | 0 | 424 | 0 | ||||||||||||||||
Off-balance sheet instruments | 0 | 0 | 0 | 0 | 0 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
NOTE 9. CONTINGENCIES | |
The nature of the Company’s business generates a certain amount of litigation involving matters arising out of the ordinary course of business. Except as described below, in the opinion of management, there are no legal proceedings that might have a material effect on the results of operations, liquidity, or the financial position of the Company at this time. | |
On May 25, 2012, Southeastern Pennsylvania Transportation Authority (“SEPTA”) filed a putative class action complaint in the United States District Court for the Middle District of Pennsylvania against the Company, the Bank and certain current and former directors and executive officers (collectively, the “Defendants”). The complaint alleges, among other things, that (i) in connection with the Company’s Registration Statement on Form S-3 dated February 23, 2010 and its Prospectus Supplement dated March 23, 2010, and (ii) during the purported class period of March 24, 2010 through October 27, 2011, the Company issued materially false and misleading statements regarding the Company’s lending practices and financial results, including misleading statements concerning the stringent nature of the Bank’s credit practices and underwriting standards, the quality of its loan portfolio, and the intended use of the proceeds from the Company’s March 2010 public offering of common stock. The complaint asserts claims under Sections 11, 12(a) and 15 of the Securities Act of 1933, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, and seeks class certification, unspecified money damages, interest, costs, fees and equitable or injunctive relief. Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”), motions for appointment of Lead Plaintiff in this case were due by July 24, 2012. SEPTA was the sole movant and the Court appointed SEPTA Lead Plaintiff on August 20, 2012. | |
Pursuant to the PSLRA and the Court’s September 27, 2012 Order, SEPTA was given until October 26, 2012 to file an amended complaint and the Defendants until December 7, 2012 to file a motion to dismiss the amended complaint. SEPTA’s opposition to the Defendant’s motion to dismiss was originally due January 11, 2013. Under the PSLRA, discovery and all other proceedings in the case are stayed pending the Court’s ruling on the motion to dismiss. The September 27, 2012 Order specified that if the motion to dismiss were denied, the Court would schedule a conference to address discovery and the filing of a motion for class certification. On October 26, 2012, SEPTA filed an unopposed motion for enlargement of time to file its amended complaint in order to permit the parties and new defendants to be named in the amended complaint time to discuss plaintiff’s claims and defendants’ defenses. On October 26, 2012, the Court granted SEPTA’s motion, mooting its September 27, 2012 scheduling Order, and requiring SEPTA to file its amended complaint on or before January 16, 2013 or otherwise advise the Court of circumstances that require a further enlargement of time. On January 14, 2013, the Court granted SEPTA’s second unopposed motion for enlargement of time to file an amended complaint on or before March 22, 2013. | |
On March 4, 2013, SEPTA filed an amended complaint. The amended complaint expands the list of defendants in the action to include the Company’s independent registered public accounting firm and the underwriters of the Company’s March 2010 public offering of common stock. In addition, among other things, the amended complaint extends the purported 1934 Exchange Act class period from March 15, 2010 through April 5, 2012. | |
Pursuant to the Court’s March 28, 2013 Second Scheduling Order, on May 28, 2013 all defendants filed their motions to dismiss the amended complaint, and on July 22, 2013 SEPTA filed its “omnibus” opposition to all of the defendants’ motions to dismiss. On August 23, 2013, all defendants filed reply briefs in further support of their motions to dismiss. The Second Scheduling Order stays all discovery in the case pending the outcome of the motions to dismiss, and informs the parties that a telephonic conference to address discovery and the filing of SEPTA’s motion for class certification will be scheduled after the Court’s ruling on the motions to dismiss. | |
The matter is currently progressing through the legal process. The Defendants believe that the allegations in the complaint are without merit, and intend to defend vigorously against those claims. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Nature of Operations | ' |
Nature of Operations – Orrstown Financial Services, Inc. (the “Company”) is a bank holding company (that has elected status as a financial holding company with the Board of Governors of the Federal Reserve System) whose primary activity consists of supervising its wholly-owned subsidiary, Orrstown Bank (the “Bank”). The Company operates through its office in Shippensburg, Pennsylvania. The Bank provides services through its network of 21 offices in Franklin, Cumberland and Perry Counties of Pennsylvania and in Washington County, Maryland. The Bank engages in lending services for commercial loans, residential loans, commercial mortgages and various forms of consumer lending. Deposit services include checking, savings, time and money market deposits. The Bank also provides investment and brokerage services through its Orrstown Financial Advisors division. The Company and its subsidiary are subject to the regulation of certain federal and state agencies and undergo periodic examinations by such regulatory authorities. | |
Basis of Presentation | ' |
Basis of Presentation – The unaudited financial statements of the Company and its subsidiary are presented for the three and nine months ended September 30, 2013 and 2012 and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly they do not include all of the information and footnotes required by GAAP for complete financial statements. However, unaudited information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim period. Information presented at December 31, 2012 is condensed from audited year-end financial statements. For further information, refer to the audited consolidated financial statements and footnotes thereto, included in the Annual Report on Form 10-K for the year ended December 31, 2012. The consolidated financial statements include the accounts of the Company and the Bank. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. All significant intercompany transactions and accounts have been eliminated. | |
Use of Estimates | ' |
Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for losses on loans and the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the valuation allowance required on its deferred tax assets. In connection with the determination of the allowance for losses on loans and foreclosed real estate, management obtains independent appraisals for significant properties. | |
While management uses available information to recognize losses on loans and foreclosed real estate, future additions to the allowances may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for losses on loans and foreclosed real estate. Such agencies may require the Company to recognize additions to the allowance based on their judgments concerning information available to them at the time of their examination. Because of these factors, management’s estimate of credit losses inherent in the loan portfolio and the related allowance may change in the near term. | |
The Company has established a full valuation allowance on its net deferred tax assets at September 30, 2013, based on the Company’s previous taxable losses, projections for future taxable income, and other available evidence, in which management determined it was “more likely than not” that some portion of the asset would not be realized. Management may need to modify its judgment in this regard from one quarter to the next, and should improvement occur in operating performance, the need for a full valuation allowance may be reduced or eliminated. | |
Subsequent Events | ' |
Subsequent Events – GAAP establishes standards for accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The subsequent events principle sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition in the financial statements, identifies the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and specifies the disclosures that should be made about events or transactions that occur after the balance sheet date. In preparing these financial statements, the Company evaluated the events and transactions that occurred after September 30, 2013, through the date these financial statements were filed with the Securities and Exchange Commission (the “Commission”). | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk – The Company grants commercial, residential and consumer loans to customers in its market area. Although the Company maintains a diversified loan portfolio, a significant portion of its customers’ ability to honor their contracts is dependent upon economic sectors for construction contractors, residential and non-residential building operators, sales finance, sub-dividers and developers. Management evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if collateral is deemed necessary by the Company upon the extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but generally includes real estate and equipment. | |
The types of securities the Company invests in are included in Note 2, “Securities Available for Sale” and the types of lending the Company engages in are included in Note 3, “Loans Receivable and Allowance for Loan Losses.” | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents – For purposes of the consolidated statements of cash flows, cash and cash equivalents include cash, balances due from banks, federal funds sold and interest bearing deposits due on demand, all of which have original maturities of 90 days or less. | |
Restricted Investments in Bank Stocks | ' |
Restricted Investments in Bank Stocks – Restricted investments in bank stocks, which represents required investments in the common stock of correspondent banks, is carried at cost as of September 30, 2013 and December 31, 2012, and consists of common stock of the Federal Reserve Bank of Philadelphia, Atlantic Central Bankers Bank and the Federal Home Loan Bank (“FHLB”) of Pittsburgh stocks. | |
Management evaluates the restricted investment in bank stocks for impairment in accordance with Accounting Standard Codification (ASC) Topic 942, Accounting by Certain Entities (Including Entities with Trade Receivables) That Lend to or Finance the Activities of Others. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the correspondent bank as compared to the capital stock amount for the correspondent bank and the length of time this situation has persisted, (2) commitments by the correspondent bank to make payments required by law or regulation and the level of such payments in relation to the operating performance of the correspondent bank, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the correspondent bank. | |
Management believes no impairment charge is necessary related to the restricted investment in bank stocks as of September 30, 2013. However, security impairment analysis is completed quarterly and the determination that no impairment had occurred as of September 30, 2013 is no assurance that impairment may not occur in the future. | |
Securities | ' |
Securities – Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. “Trading” securities are recorded at fair value with changes in fair value included in earnings. As of September 30, 2013 and December 31, 2012 the Company had no held to maturity or trading securities. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities and approximate the level yield method. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | |
The Company follows the accounting guidance related to recognition and presentation of other-than-temporary impairment (FASB ASC 820-10). This guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery; the security would not be considered other-than-temporarily impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not that the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. For held-to-maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security. | |
The Company had no debt securities it deemed to be other than temporarily impaired at September 30, 2013 and December 31, 2012. | |
The Company’s securities are exposed to various risks, such as interest rate risk, market risk, and credit risks. Due to the level of risk associated with certain investments and the level of uncertainty related to changes in the value of investments, it is at least reasonably possible that changes in risks in the near term would materially affect investment assets reported in the consolidated financial statements. | |
For equity securities, when the Company has decided to sell an impaired available-for-sale security and the entity does not expect the fair value of the security to fully recover before the expected time of sale, the security is deemed other-than-temporarily impaired in the period in which the decision to sell is made. The Company recognizes an impairment loss when the impairment is deemed other than temporary even if a decision to sell has not been made. | |
Loans Held for Sale | ' |
Loans Held for Sale – Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value (LOCM). Gains and losses on loan sales (sales proceeds minus carrying value) are recorded in non-interest income. | |
Loans | ' |
Loans – The Company grants commercial, mortgage, and consumer loans to its customers located principally in south-central Pennsylvania and northern Maryland. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. | |
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a yield adjustment over the respective term of the loan. | |
For all classes of loans, the accrual of interest income on loans, including impaired loans, ceases when principal or interest is past due 90 days or more or immediately if, in the opinion of management, full collection is unlikely. Interest will continue to accrue on loans past due 90 days or more if the collateral is adequate to cover principal and interest, and the loan is in the process of collection. Interest accrued, but not collected, as of the date of placement on nonaccrual status, is reversed and charged against current interest income, unless fully collateralized. Subsequent payments received are either applied to the outstanding principal balance or recorded as interest income, depending upon management’s assessment of the ultimate collectability of principal. Loans are returned to accrual status, for all loan classes, when all the principal and interest amounts contractually due are brought current, the loan has performed in accordance with the contractual terms of the note for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is reasonably assured. Past due status is based on contractual terms of the loan. | |
Loans, the terms of which are modified, are classified as troubled debt restructurings if a concession was granted, for legal or economic reasons, related to a debtor’s financial difficulties. Concessions granted under a troubled debt restructuring typically involve a temporary deferral of scheduled loan payments, an extension of a loan’s stated maturity date, temporary reduction in interest rates, or granting of an interest rate below market rates given the risk of the transaction. If a modification occurs while the loan is on accruing status, it will continue to accrue interest under the modified terms. Nonaccrual troubled debt restructurings are restored to accrual status if scheduled principal and interest payments, under the modified terms, are current for six months after modification, and the borrower continues to demonstrate its ability to meet the modified terms. Troubled debt restructurings are evaluated individually for impairment if they have been restructured during the most recent calendar year, or if they are not performing according to their modified terms. | |
Allowance for Loan Losses | ' |
Allowance for Loan Losses – The allowance for loan losses is established as losses that are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. | |
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. | |
Loans Serviced | ' |
Loans Serviced – The Bank administers secondary market mortgage programs available through the FHLB of Pittsburgh and the Federal National Mortgage Association and offers residential mortgage products and services to customers. The Bank originates single-family residential mortgage loans for immediate sale in the secondary market, and generally retains the servicing of those loans. At September 30, 2013 and December 31, 2012 the balance of loans serviced for others was $324,613,000 and $329,360,000. | |
Transfers of Financial Assets | ' |
Transfers of Financial Assets – Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |
Premises and Equipment | ' |
Premises and Equipment – Buildings, improvements, equipment, furniture and fixtures are carried at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation and amortization has been provided generally on the straight-line method and is computed over the estimated useful lives of the various assets as follows: buildings and improvements – 10 to 40 years; equipment, furniture and fixtures – 3 to 15 years; and computer software – 3 to 5 years. Repairs and maintenance are charged to operations as incurred, while major additions and improvements are capitalized. Gain or loss on retirement or disposal of individual assets is recorded as income or expense in the period of retirement or disposal. | |
Mortgage Servicing Rights | ' |
Mortgage Servicing Rights – The estimated fair value of mortgage servicing rights (MSRs) related to loans sold and serviced by the Company is recorded as an asset upon the sale of such loan. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are evaluated periodically for impairment, by comparing the carrying amount to estimated fair value. Fair value is determined periodically through a discounted cash flows valuation performed by a third party. Significant inputs to the valuation include expected servicing income, net of expense, the discount rate and the expected life of the underlying loans. To the extent the amortized cost of the MSRs exceeds their estimated fair values, a valuation allowance is established for such impairment through a charge against servicing income on the consolidated statement of income. If the Company determines, based on subsequent valuations, that impairment no longer exists or is reduced, the valuation allowance is reduced through a credit to earnings. | |
Foreclosed Real Estate | ' |
Foreclosed Real Estate – Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value less estimated costs to sell the underlying collateral. Capitalized costs include any costs that significantly improve the value of the properties. After foreclosure, valuations are periodically performed by management and the real estate is carried at the lower of carrying amount or fair value less estimated costs to sell. Foreclosed real estate totaled $965,000 and $1,876,000 as of September 30, 2013 and December 31, 2012 and is included in other assets. | |
Securities Sold Under Agreements to Repurchase | ' |
Securities Sold Under Agreements to Repurchase (“Repurchase Agreements”) – The Company enters into agreements under which it sells securities subject to an obligation to repurchase the same or similar securities which are included in short-term borrowings. Under these agreements, the Company may transfer legal control over the assets but still retain effective control through an agreement that both entitles and obligates the Company to repurchase the assets. As a result, these repurchase agreements are accounted for as collateralized financing arrangements (i.e., secured borrowings) and not as a sale and subsequent repurchase of securities. The obligation to repurchase the securities is reflected as a liability in the Company’s consolidated statements of condition, while the securities underlying the repurchase agreements remain in the respective investment securities asset accounts. In other words, there is no offsetting or netting of the investment securities assets with the repurchase agreement liabilities. In addition, as the Company does not enter into reverse repurchase agreements, there is no such offsetting to be done with the repurchase agreements. | |
The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., fails to make an interest payment to the counterparty). For the repurchase agreements, the collateral is held by the Company in a segregated custodial account under a third party agreement. | |
Stock Compensation Plans | ' |
Stock Compensation Plans – The Company has a stock compensation plan that covers employees and non-employee directors. Stock compensation accounting guidance (FASB ASC 718, Compensation – Stock Compensation) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost is measured based on the grant date fair value of the stock award, including a Black-Scholes model for stock options. Compensation cost for all stock awards is calculated and recognized over the employee’s service period, generally defined as the vesting period. | |
Income Taxes | ' |
Income Taxes – The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. | |
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties, if any, on income taxes as a component of income tax expense. | |
Treasury Stock | ' |
Treasury Stock – Common stock shares repurchased are recorded as treasury stock at cost. | |
Earnings Per Share | ' |
Earnings Per Share – Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate solely to outstanding stock options. | |
Treasury shares are not deemed outstanding for earnings per share calculations. | |
Comprehensive Income | ' |
Comprehensive Income – Comprehensive income consists of net income and other comprehensive income. Other comprehensive income is limited to unrealized gains (losses) on securities available for sale for all years presented. | |
The component of accumulated other comprehensive income, net of taxes, at September 30, 2013 and December 31, 2012 consisted of unrealized gains (losses) on securities available for sale and totaled ($3,682,000) and $1,828,000. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 8. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. | |
Segment Reporting | ' |
Segment Reporting – The Company only operates in one significant segment – Community Banking. The Company’s non-banking activities are insignificant to the consolidated financial statements. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements – In December 2011, the Financial Accounting Standard Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11, Disclosures About Offsetting Assets and Liabilities. The new disclosure requirements mandate that entities disclose both gross and net information about instruments and transactions eligible for offset in the statement of financial position as well as instruments and transactions subject to an agreement similar to a master netting arrangement. ASU No. 2011-11 also requires disclosure of collateral received and posted in connection with master netting agreements or similar arrangements. In January 2013, the FASB issued ASU No. 2013-01, Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. The provisions of ASU No. 2013-01 limit the scope of the new balance sheet offsetting disclosures to the following financial instruments, to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in the statement of financial position: (1) derivative financial instruments; (2) repurchase agreements and reverse repurchase agreements; and (3) securities borrowing and securities lending transactions. The Company adopted the provisions of ASU No. 2011-11 and ASU No. 2013-01 effective January 1, 2013. As the provisions of ASU No. 2011-11 and ASU No. 2013-01 only impacted the disclosure requirements related to the offsetting of assets and liabilities and information about instruments and transactions eligible for offset in the statement of financial position, the adoption had no impact on the Company’s consolidated statements of operations and financial condition. | |
In February 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. ASU No. 2013-02 does not amend any existing requirements for reporting net income or other comprehensive income in the financial statements. ASU No. 2013-02 requires an entity to disaggregate the total change of each component of other comprehensive income (e.g., unrealized gains or losses on available-for-sale investment securities) and separately present reclassification adjustments and current period other comprehensive income. The provisions of ASU No. 2013-02 also require that entities present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., unrealized gains or losses on available-for-sale investment securities) and the income statement line item affected by the reclassification (e.g., realized gains (losses) on sales of investment securities). If a component is not required to be reclassified to net income in its entirety (e.g., amortization of defined benefit plan items), entities would instead cross reference to the related note to the financial statements for additional information (e.g., pension footnote). The Company adopted the provisions of ASU No. 2013-02 effective January 1, 2013. As the Company’s only item of accumulated other comprehensive income is unrealized gains or losses on securities available for sale, the adoption of this standard had no impact on our Consolidated Financial Statements. |
Securities_Available_for_Sale_
Securities Available for Sale (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Amortized Cost and Fair Values of Investment Securities Available for Sale | ' | ||||||||||||||||||||||||
The amortized cost and fair values of investment securities available for sale at September 30, 2013 and December 31, 2012 were: | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Unrealized | Unrealized | Fair Value | |||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S Treasury | $ | 25,998 | $ | 29 | $ | 0 | $ | 26,027 | |||||||||||||||||
U.S. Government Agencies | 26,657 | 17 | 271 | 26,403 | |||||||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 40,136 | 43 | 647 | 39,532 | |||||||||||||||||||||
States and political subdivisions | 70,972 | 462 | 3,489 | 67,945 | |||||||||||||||||||||
GSE residential mortgage-backed securities | 185,385 | 1,097 | 822 | 185,660 | |||||||||||||||||||||
GSE commercial mortgage-backed securities | 40,989 | 0 | 2,103 | 38,886 | |||||||||||||||||||||
Total debt securities | 390,137 | 1,648 | 7,332 | 384,453 | |||||||||||||||||||||
Equity securities | 50 | 19 | 0 | 69 | |||||||||||||||||||||
Totals | $ | 390,187 | $ | 1,667 | $ | 7,332 | $ | 384,522 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
U.S. Treasury | $ | 25,996 | $ | 14 | $ | 0 | $ | 26,010 | |||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 44,331 | 431 | 0 | 44,762 | |||||||||||||||||||||
States and political subdivisions | 37,324 | 1,588 | 3 | 38,909 | |||||||||||||||||||||
GSE residential mortgage-backed securities | 160,118 | 1,014 | 333 | 160,799 | |||||||||||||||||||||
GSE commercial mortgage-backed securities | 31,339 | 143 | 61 | 31,421 | |||||||||||||||||||||
Total debt securities | 299,108 | 3,190 | 397 | 301,901 | |||||||||||||||||||||
Equity securities | 50 | 19 | 0 | 69 | |||||||||||||||||||||
Totals | $ | 299,158 | $ | 3,209 | $ | 397 | $ | 301,970 | |||||||||||||||||
Gross Unrealized Losses and Fair Value of Company's Available for Sale Securities | ' | ||||||||||||||||||||||||
The following table shows gross unrealized losses and fair value of the Company’s available for sale securities that are not deemed to be other-than-temporarily impaired, 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: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
(Dollars in thousands) | Fair Value | Unrealized | Fair | Unrealized | Fair Value | Unrealized | |||||||||||||||||||
Losses | Value | Losses | Losses | ||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
U.S. Government Agencies | $ | 20,671 | $ | 271 | $ | 0 | $ | 0 | $ | 20,671 | $ | 271 | |||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 12,139 | 647 | 0 | 0 | 12,139 | 647 | |||||||||||||||||||
States and political subdivisions | 47,042 | 3,489 | 0 | 0 | 47,042 | 3,489 | |||||||||||||||||||
GSE residential mortgage-backed securities | 80,371 | 821 | 769 | 1 | 81,140 | 822 | |||||||||||||||||||
GSE commercial mortgage-backed securities | 38,886 | 2,103 | 0 | 0 | 38,886 | 2,103 | |||||||||||||||||||
Total temporarily impaired securities | $ | 199,109 | $ | 7,331 | $ | 769 | $ | 1 | $ | 199,878 | $ | 7,332 | |||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
States and political subdivisions | $ | 885 | $ | 3 | $ | 0 | $ | 0 | $ | 885 | $ | 3 | |||||||||||||
GSE residential mortgage-backed securities | 64,952 | 312 | 2,657 | 21 | 67,609 | 333 | |||||||||||||||||||
GSE commercial mortgage-backed securities | 20,396 | 61 | 0 | 0 | 20,396 | 61 | |||||||||||||||||||
Total temporarily impaired securities | $ | 86,233 | $ | 376 | $ | 2,657 | $ | 21 | $ | 88,890 | $ | 397 | |||||||||||||
Schedule of Amortized Cost and Fair Values of Securities Available for Sale by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair values of securities available for sale at September 30, 2013 by contractual maturity are shown below. Contractual maturities will differ from expected maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized Cost | Fair Value | |||||||||||||||||||||||
Due in one year or less | $ | 54,013 | $ | 54,089 | |||||||||||||||||||||
Due after one year through five years | 380 | 380 | |||||||||||||||||||||||
Due after five years through ten years | 25,534 | 24,713 | |||||||||||||||||||||||
Due after ten years | 83,836 | 80,725 | |||||||||||||||||||||||
GSE residential mortgage-backed securities | 185,385 | 185,660 | |||||||||||||||||||||||
GSE commercial mortgage-backed securities | 40,989 | 38,886 | |||||||||||||||||||||||
Total debt securities | 390,137 | 384,453 | |||||||||||||||||||||||
Equity securities | 50 | 69 | |||||||||||||||||||||||
$ | 390,187 | $ | 384,522 | ||||||||||||||||||||||
Loans_Receivable_and_Allowance1
Loans Receivable and Allowance for Loan Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes | ' | ||||||||||||||||||||||||||||||||||||||||
The loan portfolio, excluding residential loans held for sale, broken out by classes, as of September 30, 2013 and December 31, 2012 was as follows: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 111,304 | $ | 144,290 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied | 144,092 | 120,930 | |||||||||||||||||||||||||||||||||||||||
Multi-family | 19,656 | 21,745 | |||||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 59,384 | 66,381 | |||||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,725 | 2,850 | |||||||||||||||||||||||||||||||||||||||
Commercial and land development | 23,487 | 30,375 | |||||||||||||||||||||||||||||||||||||||
Commercial and industrial | 34,218 | 39,340 | |||||||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 68,018 | |||||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 124,488 | 108,601 | |||||||||||||||||||||||||||||||||||||||
Home equity—term | 19,204 | 14,747 | |||||||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 76,422 | 79,448 | |||||||||||||||||||||||||||||||||||||||
Installment and other loans | 6,371 | 7,014 | |||||||||||||||||||||||||||||||||||||||
$ | 683,642 | $ | 703,739 | ||||||||||||||||||||||||||||||||||||||
Bank's Ratings Based on its Internal Risk Rating System | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables summarize the Bank’s ratings based on its internal risk rating system as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Non-Impaired | Impaired - | Doubtful | Total | |||||||||||||||||||||||||||||||||||
Mention | Substandard | Substandard | |||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 90,511 | $ | 4,481 | $ | 11,731 | $ | 4,105 | $ | 476 | $ | 111,304 | |||||||||||||||||||||||||||||
Non-owner occupied | 115,859 | 4,763 | 17,782 | 5,688 | 0 | 144,092 | |||||||||||||||||||||||||||||||||||
Multi-family | 15,918 | 2,161 | 1,242 | 335 | 0 | 19,656 | |||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 46,574 | 3,281 | 5,255 | 4,274 | 0 | 59,384 | |||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,382 | 0 | 0 | 343 | 0 | 1,725 | |||||||||||||||||||||||||||||||||||
Commercial and land development | 13,906 | 1,159 | 5,886 | 2,536 | 0 | 23,487 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 29,323 | 2,004 | 1,048 | 1,843 | 0 | 34,218 | |||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 0 | 0 | 0 | 0 | 63,291 | |||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 121,860 | 0 | 299 | 2,281 | 48 | 124,488 | |||||||||||||||||||||||||||||||||||
Home equity—term | 19,154 | 0 | 0 | 37 | 13 | 19,204 | |||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 76,289 | 0 | 10 | 88 | 35 | 76,422 | |||||||||||||||||||||||||||||||||||
Installment and other loans | 6,371 | 0 | 0 | 0 | 0 | 6,371 | |||||||||||||||||||||||||||||||||||
$ | 600,438 | $ | 17,849 | $ | 43,253 | $ | 21,530 | $ | 572 | $ | 683,642 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | Pass | Special | Non-Impaired | Impaired - | Doubtful | Total | |||||||||||||||||||||||||||||||||||
Mention | Substandard | Substandard | |||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 121,333 | $ | 11,917 | $ | 8,623 | $ | 2,229 | $ | 188 | $ | 144,290 | |||||||||||||||||||||||||||||
Non-owner occupied | 95,876 | 7,351 | 14,241 | 3,462 | 0 | 120,930 | |||||||||||||||||||||||||||||||||||
Multi-family | 17,205 | 3,936 | 585 | 19 | 0 | 21,745 | |||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 45,468 | 12,199 | 3,346 | 5,368 | 0 | 66,381 | |||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,608 | 333 | 0 | 198 | 711 | 2,850 | |||||||||||||||||||||||||||||||||||
Commercial and land development | 14,793 | 8,937 | 2,836 | 3,208 | 601 | 30,375 | |||||||||||||||||||||||||||||||||||
Commercial and industrial | 33,380 | 3,713 | 429 | 566 | 1,252 | 39,340 | |||||||||||||||||||||||||||||||||||
Municipal | 68,018 | 0 | 0 | 0 | 0 | 68,018 | |||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 101,390 | 3,026 | 1,604 | 2,581 | 0 | 108,601 | |||||||||||||||||||||||||||||||||||
Home equity – term | 14,403 | 52 | 235 | 57 | 0 | 14,747 | |||||||||||||||||||||||||||||||||||
Home equity – Lines of credit | 76,418 | 1,073 | 1,365 | 592 | 0 | 79,448 | |||||||||||||||||||||||||||||||||||
Installment and other loans | 6,998 | 11 | 3 | 2 | 0 | 7,014 | |||||||||||||||||||||||||||||||||||
$ | 596,890 | $ | 52,548 | $ | 33,267 | $ | 18,282 | $ | 2,752 | $ | 703,739 | ||||||||||||||||||||||||||||||
Impaired Loans by Class | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables summarize impaired loans by class, segregated by those for which a specific allowance was required and those for which a specific allowance was not required as of September 30, 2013 and December 31, 2012. Allowances established at September 30, 2013 and December 31, 2012 generally pertain to those loans in which loan forbearance agreements were in the process of being negotiated or updated appraisals were pending, and the partial charge-off will be recorded when final information is received. | |||||||||||||||||||||||||||||||||||||||||
Impaired Loans with a Specific Allowance | Impaired Loans with No Specific Allowance | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | Recorded | Unpaid | ||||||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | |||||||||||||||||||||||||||||||||||||
(Book Balance) | Balance | (Book Balance) | Balance | ||||||||||||||||||||||||||||||||||||||
(Legal Balance) | (Legal Balance) | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 476 | $ | 942 | $ | 476 | $ | 4,105 | $ | 4,607 | |||||||||||||||||||||||||||||||
Non-owner occupied | 0 | 0 | 0 | 5,688 | 6,218 | ||||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 335 | 420 | ||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 0 | 4,274 | 4,550 | ||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 0 | 0 | 0 | 343 | 371 | ||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 0 | 2,536 | 3,170 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 0 | 1,843 | 1,953 | ||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 48 | 48 | 48 | 2,281 | 2,425 | ||||||||||||||||||||||||||||||||||||
Home equity—term | 50 | 51 | 49 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 123 | 124 | 105 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Installment and other loans | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
$ | 697 | $ | 1,165 | $ | 678 | $ | 21,405 | $ | 23,714 | ||||||||||||||||||||||||||||||||
Impaired Loans with a Specific Allowance | Impaired Loans with No Specific Allowance | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded | Unpaid | Related | Recorded | Unpaid | ||||||||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | |||||||||||||||||||||||||||||||||||||
(Book Balance) | Balance | (Book Balance) | Balance | ||||||||||||||||||||||||||||||||||||||
(Legal Balance) | (Legal Balance) | ||||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 0 | $ | 0 | $ | 0 | $ | 2,417 | $ | 2,680 | |||||||||||||||||||||||||||||||
Non-owner occupied | 1,257 | 1,257 | 329 | 2,205 | 5,487 | ||||||||||||||||||||||||||||||||||||
Multi-family | 0 | 0 | 0 | 19 | 198 | ||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 204 | 204 | 46 | 5,164 | 6,510 | ||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 711 | 725 | 9 | 198 | 202 | ||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 0 | 3,809 | 8,556 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,373 | 1,402 | 928 | 445 | 445 | ||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 0 | 0 | 0 | 2,581 | 2,784 | ||||||||||||||||||||||||||||||||||||
Home equity – term | 0 | 0 | 0 | 57 | 75 | ||||||||||||||||||||||||||||||||||||
Home equity – lines of credit | 0 | 0 | 0 | 592 | 597 | ||||||||||||||||||||||||||||||||||||
Installment and other loans | 0 | 0 | 0 | 2 | 2 | ||||||||||||||||||||||||||||||||||||
$ | 3,545 | $ | 3,588 | $ | 1,312 | $ | 17,489 | $ | 27,536 | ||||||||||||||||||||||||||||||||
Average Recorded Investment in Impaired Loans and Related Interest Income | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables summarize the average recorded investment in impaired loans and related interest income recognized on loans deemed to be impaired for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||||||
Impaired | Income | Impaired | Income | ||||||||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 4,249 | $ | 41 | $ | 8,499 | $ | 48 | |||||||||||||||||||||||||||||||||
Non-owner occupied | 3,980 | 50 | 14,928 | 37 | |||||||||||||||||||||||||||||||||||||
Multi-family | 168 | 16 | 1,203 | 120 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 5,108 | 45 | 12,440 | 57 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 345 | 0 | 2,049 | 21 | |||||||||||||||||||||||||||||||||||||
Commercial and land development | 2,613 | 0 | 13,608 | 100 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,875 | 0 | 3.359 | 16 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 2,421 | 29 | 3,459 | 41 | |||||||||||||||||||||||||||||||||||||
Home equity—term | 47 | 2 | 46 | 1 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 116 | 4 | 383 | 17 | |||||||||||||||||||||||||||||||||||||
Installment and other loans | 1 | 0 | 6 | 1 | |||||||||||||||||||||||||||||||||||||
$ | 20,923 | $ | 187 | $ | 59,980 | $ | 459 | ||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Average | Interest | Average | Interest | |||||||||||||||||||||||||||||||||||||
Impaired | Income | Impaired | Income | ||||||||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 3,270 | $ | 99 | $ | 9,864 | $ | 92 | |||||||||||||||||||||||||||||||||
Non-owner occupied | 3,605 | 86 | 17,099 | 397 | |||||||||||||||||||||||||||||||||||||
Multi-family | 89 | 16 | 2,008 | 120 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 4,875 | 60 | 26,905 | 266 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 602 | 0 | 1,881 | 23 | |||||||||||||||||||||||||||||||||||||
Commercial and land development | 2,967 | 2 | 14,863 | 287 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1,724 | 65 | 2,748 | 27 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 2,528 | 31 | 2,730 | 73 | |||||||||||||||||||||||||||||||||||||
Home equity—term | 47 | 2 | 181 | 2 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 336 | 4 | 436 | 19 | |||||||||||||||||||||||||||||||||||||
Installment and other loans | 1 | 0 | 9 | 2 | |||||||||||||||||||||||||||||||||||||
$ | 20,044 | $ | 365 | $ | 78,724 | $ | 1,308 | ||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents impaired loans that are troubled debt restructurings, with the recorded investment as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Accruing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner Occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 3 | 4,165 | 2 | 1,981 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 1 | 204 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 1 | 520 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 122 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 1 | 454 | 2 | 749 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 0 | 0 | 1 | 36 | |||||||||||||||||||||||||||||||||||||
Total accruing | 7 | 5,289 | 7 | 3,092 | |||||||||||||||||||||||||||||||||||||
Nonaccruing: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 0 | 0 | 1 | 7 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied | 1 | 713 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 1 | 196 | 4 | 1,209 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 1 | 114 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 1 | 283 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
4 | 1,306 | 5 | 1,216 | ||||||||||||||||||||||||||||||||||||||
11 | $ | 6,595 | 12 | $ | 4,308 | ||||||||||||||||||||||||||||||||||||
Restructured Loans Included in Nonaccrual Status Were Modified as Troubled Debt Restructurings within Previous 12 Months and for Which There was Payment Default | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents restructured loans, included in nonaccrual status, that were modified as troubled debt restructurings within the previous 12 months and for which there was a payment default during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Three Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Non-owner occupied | 0 | $ | 0 | 1 | $ | 193 | |||||||||||||||||||||||||||||||||||
Nine Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 0 | $ | 0 | 1 | $ | 6 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 0 | 0 | 1 | 193 | |||||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 0 | 0 | 5 | 1,269 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 0 | 0 | 2 | 772 | |||||||||||||||||||||||||||||||||||||
0 | $ | 0 | 9 | $ | 2,240 | ||||||||||||||||||||||||||||||||||||
Number of Loans Modified and Their Pre-modification and Post-modification Investment Balances | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents the number of loans modified with the recorded investment representing both their pre-modification and post-modification investment balances for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of | Recorded | Number of | Recorded | |||||||||||||||||||||||||||||||||||||
Contracts | Investment | Contracts | Investment | ||||||||||||||||||||||||||||||||||||||
Three Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 2 | 3,457 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
4 | $ | 3,607 | 0 | $ | 0 | ||||||||||||||||||||||||||||||||||||
Nine Months Ended: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | 2 | $ | 150 | 0 | $ | 0 | |||||||||||||||||||||||||||||||||||
Non-owner occupied | 2 | 3,457 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
Commercial and land development | 1 | 524 | 0 | 0 | |||||||||||||||||||||||||||||||||||||
Commercial and industrial | 0 | 0 | 1 | 203 | |||||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 0 | 0 | 1 | 299 | |||||||||||||||||||||||||||||||||||||
Home equity—lines of credit | 0 | 0 | 1 | 37 | |||||||||||||||||||||||||||||||||||||
5 | $ | 4,131 | 3 | $ | 539 | ||||||||||||||||||||||||||||||||||||
Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans | ' | ||||||||||||||||||||||||||||||||||||||||
The following table presents the classes of loans in the portfolio summarized by aging categories of performing loans and nonaccrual loans as of September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90+ | Total | Non- | Total | ||||||||||||||||||||||||||||||||||
(still accruing) | Past Due | Accrual | Loans | ||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 106,279 | $ | 594 | $ | 0 | $ | 0 | $ | 594 | $ | 4,431 | $ | 111,304 | |||||||||||||||||||||||||||
Non-owner occupied | 142,569 | 0 | 0 | 0 | 0 | 1,523 | 144,092 | ||||||||||||||||||||||||||||||||||
Multi-family | 19,321 | 0 | 0 | 0 | 0 | 335 | 19,656 | ||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 55,026 | 84 | 0 | 0 | 84 | 4,274 | 59,384 | ||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,382 | 0 | 0 | 0 | 0 | 343 | 1,725 | ||||||||||||||||||||||||||||||||||
Commercial and land development | 21,250 | 193 | 8 | 20 | 221 | 2,016 | 23,487 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 31,500 | 875 | 0 | 0 | 875 | 1,843 | 34,218 | ||||||||||||||||||||||||||||||||||
Municipal | 63,291 | 0 | 0 | 0 | 0 | 0 | 63,291 | ||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 120,955 | 1,124 | 534 | 0 | 1,658 | 1,875 | 124,488 | ||||||||||||||||||||||||||||||||||
Home equity—term | 18,933 | 160 | 61 | 0 | 221 | 50 | 19,204 | ||||||||||||||||||||||||||||||||||
Home equity—Lines of credit | 75,962 | 288 | 49 | 0 | 337 | 123 | 76,422 | ||||||||||||||||||||||||||||||||||
Installment and other loans | 6,284 | 50 | 37 | 0 | 87 | 0 | 6,371 | ||||||||||||||||||||||||||||||||||
$ | 662,752 | $ | 3,368 | $ | 689 | $ | 20 | $ | 4,077 | $ | 16,813 | $ | 683,642 | ||||||||||||||||||||||||||||
Days Past Due | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Current | 30-59 | 60-89 | 90+ | Total | Non- | Total | ||||||||||||||||||||||||||||||||||
(still accruing) | Past Due | Accrual | Loans | ||||||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 141,833 | $ | 40 | $ | 0 | $ | 0 | $ | 40 | $ | 2,417 | $ | 144,290 | |||||||||||||||||||||||||||
Non-owner occupied | 119,320 | 129 | 0 | 0 | 129 | 1,481 | 120,930 | ||||||||||||||||||||||||||||||||||
Multi-family | 21,726 | 0 | 0 | 0 | 0 | 19 | 21,745 | ||||||||||||||||||||||||||||||||||
Non-owner occupied residential | 60,890 | 122 | 205 | 0 | 327 | 5,164 | 66,381 | ||||||||||||||||||||||||||||||||||
Acquisition and development: | |||||||||||||||||||||||||||||||||||||||||
1-4 family residential construction | 1,770 | 0 | 171 | 0 | 171 | 909 | 2,850 | ||||||||||||||||||||||||||||||||||
Commercial and land development | 26,054 | 511 | 1 | 0 | 512 | 3,809 | 30,375 | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 37,348 | 296 | 0 | 0 | 296 | 1,696 | 39,340 | ||||||||||||||||||||||||||||||||||
Municipal | 68,018 | 0 | 0 | 0 | 0 | 0 | 68,018 | ||||||||||||||||||||||||||||||||||
Residential mortgage: | |||||||||||||||||||||||||||||||||||||||||
First lien | 104,933 | 1,565 | 270 | 0 | 1,835 | 1,833 | 108,601 | ||||||||||||||||||||||||||||||||||
Home equity – term | 14,609 | 81 | 0 | 0 | 81 | 57 | 14,747 | ||||||||||||||||||||||||||||||||||
Home equity – Lines of credit | 78,880 | 0 | 12 | 0 | 12 | 556 | 79,448 | ||||||||||||||||||||||||||||||||||
Installment and other loans | 6,837 | 161 | 14 | 0 | 175 | 2 | 7,014 | ||||||||||||||||||||||||||||||||||
$ | 682,218 | $ | 2,905 | $ | 673 | $ | 0 | $ | 3,578 | $ | 17,943 | $ | 703,739 | ||||||||||||||||||||||||||||
Activity in Allowance for Loan Losses | ' | ||||||||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses for the three months ended September 30, 2013 and 2012 was as follows: | |||||||||||||||||||||||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Total | Residential | Installment | Total | Unallocated | Total | |||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 11,288 | $ | 1,946 | $ | 875 | $ | 254 | $ | 14,363 | $ | 3,796 | $ | 134 | $ | 3,930 | $ | 1,805 | $ | 20,098 | |||||||||||||||||||||
Provision for loan losses | 3,495 | (1,117 | ) | (2,651 | ) | (12 | ) | (285 | ) | 2 | 11 | 13 | 272 | 0 | |||||||||||||||||||||||||||
Charge-offs | (1,767 | ) | (2 | ) | 0 | 0 | (1,769 | ) | 0 | (46 | ) | (46 | ) | 0 | (1,815 | ) | |||||||||||||||||||||||||
Recoveries | 45 | 267 | 2,530 | 0 | 2,842 | 100 | 27 | 127 | 0 | 2,969 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 15,151 | $ | 3,898 | $ | 126 | $ | 4,024 | $ | 2,077 | $ | 21,252 | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 23,521 | $ | 6,803 | $ | 2,005 | $ | 1,012 | $ | 33,341 | $ | 887 | $ | 69 | $ | 956 | $ | 1,938 | $ | 36,235 | |||||||||||||||||||||
Provision for loan losses | 584 | 5,020 | 250 | (783 | ) | 5,071 | 169 | 58 | 227 | (198 | ) | 5,100 | |||||||||||||||||||||||||||||
Charge-offs | (782 | ) | (4,139 | ) | (69 | ) | 0 | (4,990 | ) | (109 | ) | (46 | ) | (155 | ) | 0 | (5,145 | ) | |||||||||||||||||||||||
Recoveries | 483 | 13 | 8 | 0 | 504 | 4 | 2 | 6 | 0 | 510 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 23,806 | $ | 7,697 | $ | 2,194 | $ | 229 | $ | 33,926 | $ | 951 | $ | 83 | $ | 1,034 | $ | 1,740 | $ | 36,700 | |||||||||||||||||||||
Activity in the allowance for loan losses for the nine months ended September 30, 2013 and 2012 is as follows: | |||||||||||||||||||||||||||||||||||||||||
Commercial | Consumer | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Total | Residential | Installment | Total | Unallocated | Total | |||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 13,719 | $ | 3,502 | $ | 1,635 | $ | 223 | $ | 19,079 | $ | 2,275 | $ | 85 | $ | 2,360 | $ | 1,727 | $ | 23,166 | |||||||||||||||||||||
Provision for loan losses | 3,653 | (3,943 | ) | (3,309 | ) | 19 | (3,580 | ) | 1,750 | 80 | 1,830 | 350 | (1,400 | ) | |||||||||||||||||||||||||||
Charge-offs | (4,444 | ) | (146 | ) | (114 | ) | 0 | (4,704 | ) | (263 | ) | (92 | ) | (355 | ) | 0 | (5,059 | ) | |||||||||||||||||||||||
Recoveries | 133 | 1,681 | 2,542 | 0 | 4,356 | 136 | 53 | 189 | 0 | 4,545 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 15,151 | $ | 3,898 | $ | 126 | $ | 4,024 | $ | 2,077 | $ | 21,252 | |||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
Balance, beginning of period | $ | 29,559 | $ | 9,708 | $ | 1,085 | $ | 789 | $ | 41,141 | $ | 933 | $ | 75 | $ | 1,008 | $ | 1,566 | $ | 43,715 | |||||||||||||||||||||
Provision for loan losses | 33,464 | 11,419 | 2,306 | (560 | ) | 46,629 | 384 | 113 | 497 | 174 | 47,300 | ||||||||||||||||||||||||||||||
Charge-offs | (41,222 | ) | (14,116 | ) | (1,289 | ) | 0 | (56,627 | ) | (381 | ) | (115 | ) | (496 | ) | 0 | (57,123 | ) | |||||||||||||||||||||||
Recoveries | 2,005 | 686 | 92 | 0 | 2,783 | 15 | 10 | 25 | 0 | 2,808 | |||||||||||||||||||||||||||||||
Balance, end of period | $ | 23,806 | $ | 7,697 | $ | 2,194 | $ | 229 | $ | 33,926 | $ | 951 | $ | 83 | $ | 1,034 | $ | 1,740 | $ | 36,700 | |||||||||||||||||||||
Summary of Allowance for Loan Loss Allocation | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables summarize the ending loan balance individually evaluated for impairment based upon loan segment, as well as the related allowance for loan loss allocation for each at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | Commercial | Acquisition | Commercial | Municipal | Residential | Installment | Unallocated | Total | |||||||||||||||||||||||||||||||||
Real Estate | and | and | Mortgage | and Other | |||||||||||||||||||||||||||||||||||||
Development | Industrial | ||||||||||||||||||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Loans allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 14,878 | $ | 2,879 | $ | 1,843 | $ | 0 | $ | 2,502 | $ | 0 | $ | 0 | $ | 22,102 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 319,558 | 22,333 | 32,375 | 63,291 | 217,612 | 6,371 | 0 | 661,540 | |||||||||||||||||||||||||||||||||
$ | 334,436 | $ | 25,212 | $ | 34,218 | $ | 63,291 | $ | 220,114 | $ | 6,371 | $ | 0 | $ | 683,642 | ||||||||||||||||||||||||||
Allowance for loan losses allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 476 | $ | 0 | $ | 0 | $ | 0 | $ | 202 | $ | 0 | $ | 0 | $ | 678 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 12,585 | 1,094 | 754 | 242 | 3,696 | 126 | 2,077 | 20,574 | |||||||||||||||||||||||||||||||||
$ | 13,061 | $ | 1,094 | $ | 754 | $ | 242 | $ | 3,898 | $ | 126 | $ | 2,077 | $ | 21,252 | ||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
Loans allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11,266 | $ | 4,718 | $ | 1,818 | $ | 0 | $ | 3,230 | $ | 2 | $ | 0 | $ | 21,034 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 342,080 | 28,507 | 37,522 | 68,018 | 199,566 | 7,012 | 0 | 682,705 | |||||||||||||||||||||||||||||||||
$ | 353,346 | $ | 33,225 | $ | 39,340 | $ | 68,018 | $ | 202,796 | $ | 7,014 | $ | 0 | $ | 703,739 | ||||||||||||||||||||||||||
Allowance for loan losses allocated by: | |||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 375 | $ | 9 | $ | 928 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 1,312 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 13,344 | 3,493 | 707 | 223 | 2,275 | 85 | 1,727 | 21,854 | |||||||||||||||||||||||||||||||||
$ | 13,719 | $ | 3,502 | $ | 1,635 | $ | 223 | $ | 2,275 | $ | 85 | $ | 1,727 | $ | 23,166 | ||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Components of Income Tax Expenses | ' | ||||||||||||||||
The components of income tax expense for the three and nine months ended September 30, 2013 and 2012 are summarized as follows: | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
(Dollars in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Current year provision (benefit): | |||||||||||||||||
Federal | $ | 0 | $ | (3,894 | ) | $ | 60 | $ | (13,388 | ) | |||||||
State | (281 | ) | 0 | (281 | ) | (46 | ) | ||||||||||
Deferred tax expense (benefit) | 532 | 3,050 | 1,320 | 512 | |||||||||||||
Valuation allowance on deferred taxes | (532 | ) | 19,872 | (1,320 | ) | 19,872 | |||||||||||
Net income tax expense (benefit) | $ | (281 | ) | $ | 19,028 | $ | (221 | ) | $ | 6,950 | |||||||
Components of the Net Deferred Tax Asset (Liability) | ' | ||||||||||||||||
The components of the net deferred tax asset (liability), included in other assets (liabilities), are as follows: | |||||||||||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||||
Deferred tax assets: | |||||||||||||||||
Allowance for loan losses | $ | 7,762 | $ | 9,672 | |||||||||||||
Deferred compensation | 480 | 477 | |||||||||||||||
Retirement plans and salary continuation | 1,558 | 1,473 | |||||||||||||||
Stock compensation | 189 | 184 | |||||||||||||||
Off balance sheet reserves | 214 | 231 | |||||||||||||||
Nonaccrual loan interest | 263 | 228 | |||||||||||||||
Net unrealized losses on securities available for sale | 1,983 | 0 | |||||||||||||||
Goodwill | 191 | 214 | |||||||||||||||
Low income housing credit carryforward | 832 | 806 | |||||||||||||||
Alternative minimum tax credit carryforward | 60 | 0 | |||||||||||||||
Charitable contribution carryforward | 232 | 391 | |||||||||||||||
Net operating loss carryforward | 9,156 | 8,466 | |||||||||||||||
Other | 179 | 237 | |||||||||||||||
Total deferred tax assets | 23,099 | 22,379 | |||||||||||||||
Valuation allowance | (18,915 | ) | (20,235 | ) | |||||||||||||
4,184 | 2,144 | ||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||
Depreciation | 1,107 | 1,232 | |||||||||||||||
Net unrealized gains on securities available for sale | 0 | 984 | |||||||||||||||
Purchase accounting adjustments | 515 | 575 | |||||||||||||||
Other | 579 | 337 | |||||||||||||||
Total deferred tax liabilities | 2,201 | 3,128 | |||||||||||||||
Net deferred asset (liability) | $ | 1,983 | $ | (984 | ) | ||||||||||||
Shareholders_Equity_and_Regula1
Shareholders' Equity and Regulatory Capital (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||||||
Bank's Actual Capital Ratios | ' | ||||||||||||||||||||||||
As of September 30, 2013, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following table. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Company and the Bank’s actual capital ratios as of September 30, 2013 and December 31, 2012 are also presented in the table. | |||||||||||||||||||||||||
Actual | Minimum Capital | Minimum to Be Well | |||||||||||||||||||||||
Requirement | Capitalized Under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | $ | 102,017 | 14.1 | % | $ | 58,012 | 8 | % | n/a | n/a | |||||||||||||||
Orrstown Bank | 100,067 | 13.8 | % | 57,966 | 8 | % | $ | 72,458 | 10 | % | |||||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 92,796 | 12.8 | % | 29,006 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 90,853 | 12.5 | % | 28,983 | 4 | % | 43,475 | 6 | % | ||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 92,796 | 7.9 | % | 47,137 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 90,853 | 7.7 | % | 47,169 | 4 | % | 58,961 | 5 | % | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||
Total capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | $ | 94,928 | 12.2 | % | $ | 62,438 | 8 | % | n/a | n/a | |||||||||||||||
Orrstown Bank | 92,466 | 11.9 | % | 62,418 | 8 | % | $ | 78,023 | 10 | % | |||||||||||||||
Tier 1 capital to risk weighted assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 84,999 | 10.9 | % | 31,219 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 82,540 | 10.6 | % | 31,209 | 4 | % | 46,814 | 6 | % | ||||||||||||||||
Tier 1 capital to average assets | |||||||||||||||||||||||||
Orrstown Financial Services, Inc. | 84,999 | 6.8 | % | 49,840 | 4 | % | n/a | n/a | |||||||||||||||||
Orrstown Bank | 82,540 | 6.6 | % | 49,873 | 4 | % | 62,341 | 5 | % | ||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings (Loss) Per Share | ' | ||||||||||||||||
Earnings per share for the three and nine months ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands, except per share data) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income (loss) | $ | 2,109 | $ | (21,352 | ) | $ | 7,077 | $ | (39,484 | ) | |||||||
Weighted average shares outstanding (basic) | 8,091 | 8,065 | 8,089 | 8,062 | |||||||||||||
Impact of common stock equivalents | 0 | 0 | 0 | 0 | |||||||||||||
Weighted average shares outstanding (diluted) | 8,091 | 8,065 | 8,089 | 8,062 | |||||||||||||
Per share information: | |||||||||||||||||
Basic earnings per share | $ | 0.26 | $ | (2.65 | ) | $ | 0.87 | $ | (4.90 | ) | |||||||
Diluted earnings per share | 0.26 | (2.65 | ) | 0.87 | (4.90 | ) |
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Conditional Obligations | ' | ||||||||
The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
Contract or Notional Amount | |||||||||
(Dollars in thousands) | September 30, | December 31, | |||||||
2013 | 2012 | ||||||||
Commitments to fund: | |||||||||
Revolving, open ended home equity loans | $ | 83,582 | $ | 77,674 | |||||
1-4 family residential construction loans | 1,910 | 1,002 | |||||||
Commercial real estate, construction and land development loans | 10,320 | 1,021 | |||||||
Commercial, industrial and other loans | 35,857 | 60,250 | |||||||
Standby letters of credit | 6,226 | 11,551 |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Summary of Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
The Company had no fair value liabilities at September 30, 2013 and December 31, 2012. A summary of assets at September 30, 2013 and December 31, 2012, measured at estimated fair value on a recurring basis was as follows: | |||||||||||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||||||
Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury | $ | 0 | $ | 26,027 | $ | 0 | 26,027 | ||||||||||||||
U.S. Government Agencies | 0 | 26,403 | 0 | 26,403 | |||||||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 0 | 39,532 | 0 | 39,532 | |||||||||||||||||
States and political subdivisions | 0 | 67,945 | 0 | 67,945 | |||||||||||||||||
GSE residential mortgage-backed securities | 0 | 185,660 | 0 | 185,660 | |||||||||||||||||
GSE commercial mortgage-backed securities | 0 | 38,886 | 0 | 38,886 | |||||||||||||||||
Total debt securities | 0 | 384,453 | 0 | 384,453 | |||||||||||||||||
Equity securities—financial services | 0 | 69 | 0 | 69 | |||||||||||||||||
Total securities | $ | 0 | $ | 384,522 | $ | 0 | $ | 384,522 | |||||||||||||
(Dollars in Thousands) | Level 1 | Level 2 | Level 3 | Total Fair | |||||||||||||||||
Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Securities available for sale: | |||||||||||||||||||||
U.S. Treasury | $ | 0 | $ | 26,010 | $ | 0 | $ | 26,010 | |||||||||||||
U.S. Government Sponsored Enterprises (GSE) | 0 | 44,762 | 0 | 44,762 | |||||||||||||||||
States and political subdivisions | 0 | 38,909 | 0 | 38,909 | |||||||||||||||||
GSE residential mortgage-backed securities | 0 | 160,799 | 0 | 160,799 | |||||||||||||||||
GSE commercial mortgage-backed securities | 0 | 31,421 | 0 | 31,421 | |||||||||||||||||
Total debt securities | 0 | 301,901 | 0 | 301,901 | |||||||||||||||||
Equity securities—financial services | 0 | 69 | 0 | 69 | |||||||||||||||||
Total securities | $ | 0 | $ | 301,970 | $ | 0 | $ | 301,970 | |||||||||||||
Summary of Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||
A summary of assets at September 30, 2013 and December 31, 2012 measured at fair value on a nonrecurring basis is as follows: | |||||||||||||||||||||
(Dollars in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Fair Value | |||||||||||||||||||||
Measurements | |||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Impaired loans, net | $ | 0 | $ | 0 | $ | 4,692 | $ | 4,692 | |||||||||||||
Foreclosed real estate | 0 | 0 | 659 | 659 | |||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Impaired loans, net | $ | 0 | $ | 0 | $ | 10,675 | $ | 10,675 | |||||||||||||
Foreclosed real estate | 0 | 0 | 1,101 | 1,101 | |||||||||||||||||
Mortgage servicing rights | 0 | 0 | 2,296 | 2,296 | |||||||||||||||||
Summary of Additional Qualitative Information | ' | ||||||||||||||||||||
The following table presents additional qualitative information about assets measured on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
(Dollars in thousands) | Fair Value | Valuation | Unobservable Input | Range | |||||||||||||||||
Estimate | Techniques | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Impaired loans | $ | 4,692 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | ||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Foreclosed real estate | 659 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | |||||||||||||||||
Management adjustments for liquidation expenses | 5%-25% discount | ||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Impaired loans | $ | 10,675 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | ||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Foreclosed real estate | 1,101 | Appraisal of collateral | Management adjustments on appraisals for property type and recent activity | 0%-30% discount | |||||||||||||||||
Management adjustments for liquidation expenses | 5%-10% discount | ||||||||||||||||||||
Mortgage servicing rights | 2,296 | Discounted cash flows | Remaining term | 4.0 years | |||||||||||||||||
Discount rate | 10.70% | ||||||||||||||||||||
Financial Statements at Estimated Fair Values | ' | ||||||||||||||||||||
The estimated fair values of the Company’s financial statements were as follows at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||
(Dollars in thousands) | Carrying | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Amount | |||||||||||||||||||||
September 30, 2013: | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 17,502 | $ | 17,502 | $ | 17,502 | $ | 0 | $ | 0 | |||||||||||
Interest bearing deposits with banks | 52,874 | 52,874 | 52,874 | 0 | 0 | ||||||||||||||||
Restricted investments in bank stock | 8,037 | 8,037 | 0 | 0 | 8,037 | ||||||||||||||||
Securities available for sale | 384,522 | 384,522 | 0 | 384,522 | 0 | ||||||||||||||||
Loans held for sale | 1,648 | 1,648 | 0 | 1,648 | 0 | ||||||||||||||||
Loans, net of allowance for loan losses | 662,390 | 669,446 | 0 | 0 | 669,446 | ||||||||||||||||
Accrued interest receivable | 3,380 | 3,380 | 0 | 0 | 3,380 | ||||||||||||||||
Mortgage servicing rights | 2,844 | 3,162 | 0 | 0 | 3,162 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | 1,034,933 | 1,037,181 | 0 | 1,037,181 | 0 | ||||||||||||||||
Short-term borrowings | 25,320 | 25,320 | 0 | 25,320 | 0 | ||||||||||||||||
Long-term debt | 16,431 | 17,096 | 0 | 17,096 | 0 | ||||||||||||||||
Accrued interest payable | 331 | 331 | 0 | 331 | 0 | ||||||||||||||||
Off-balance sheet instruments | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
December 31, 2012: | |||||||||||||||||||||
Financial Assets | |||||||||||||||||||||
Cash and due from banks | $ | 16,933 | $ | 16,933 | $ | 16,933 | $ | 0 | $ | 0 | |||||||||||
Interest bearing deposits with banks | 133,755 | 133,755 | 133,755 | 0 | 0 | ||||||||||||||||
Restricted investments in bank stock | 9,804 | 9,804 | 0 | 0 | 9,804 | ||||||||||||||||
Securities available for sale | 301,970 | 301,970 | 0 | 301,970 | 0 | ||||||||||||||||
Loans held for sale | 7,862 | 7,862 | 0 | 7,862 | 0 | ||||||||||||||||
Loans, net of allowance for loan losses | 680,573 | 681,414 | 0 | 0 | 681,414 | ||||||||||||||||
Accrued interest receivable | 3,188 | 3,188 | 0 | 0 | 3,188 | ||||||||||||||||
Mortgage servicing rights | 2,296 | 2,296 | 0 | 0 | 2,296 | ||||||||||||||||
Financial Liabilities | |||||||||||||||||||||
Deposits | $ | 1,085,039 | $ | 1,089,344 | 0 | $ | 1,089,344 | 0 | |||||||||||||
Short-term borrowings | 9,650 | 9,650 | 0 | 9,650 | 0 | ||||||||||||||||
Long-term debt | 37,470 | 38,676 | 0 | 38,676 | 0 | ||||||||||||||||
Accrued interest payable | 424 | 424 | 0 | 424 | 0 | ||||||||||||||||
Off-balance sheet instruments | 0 | 0 | 0 | 0 | 0 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | ||
Segment | |||
Office | |||
Accounting Policies [Line Items] | ' | ' | |
Number of offices in which the company operates throughout the country | 21 | ' | |
Cash and cash equivalents, original maturities | '90 days | ' | |
Impairment charge related to investment | $0 | ' | |
Held to maturity or trading securities | 0 | 0 | |
Debt securities other than temporarily impaired | 0 | 0 | |
Maturity of interest bearing deposits | '90 days | ' | |
Balance of loans serviced for others | 324,613,000 | 329,360,000 | |
Foreclosed real estate totaled | 965,000 | 1,876,000 | |
Percentage of deferred tax assets | 50.00% | ' | |
Accumulated other comprehensive income, net of taxes | ($3,682,000) | $1,828,000 | [1] |
Number of operating significant segment | 1 | ' | |
Maximum [Member] | Building and improvements [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '40 years | ' | |
Maximum [Member] | Equipment, furniture and fixtures [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '15 years | ' | |
Maximum [Member] | Computer software [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '5 years | ' | |
Minimum [Member] | Building and improvements [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '10 years | ' | |
Minimum [Member] | Equipment, furniture and fixtures [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '3 years | ' | |
Minimum [Member] | Computer software [Member] | ' | ' | |
Accounting Policies [Line Items] | ' | ' | |
Plant and equipment, useful life | '3 years | ' | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Securities_Available_for_Sale_1
Securities Available for Sale - Amortized Cost and Fair Values of Investment Securities Available for Sale (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale equity securities - financial services, Amortized Cost | $50 | ' | |
Available for sale securities, Total | 390,187 | 299,158 | |
Available for sale securities, Unrealized Gains | 1,667 | 3,209 | |
Available for sale securities, Unrealized Losses | 7,332 | 397 | |
Available for sale securities, equity securities - financial services, Fair Value | 69 | ' | |
Available for sale securities, debt securities, Fair Value | 384,453 | ' | |
Available for sale securities, Total | 384,522 | 301,970 | [1] |
Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 390,137 | 299,108 | |
Available for sale securities, Unrealized Gains | 1,648 | 3,190 | |
Available for sale securities, Unrealized Losses | 7,332 | 397 | |
Available for sale securities, debt securities, Fair Value | 384,453 | 301,901 | |
U.S. Treasury [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 25,998 | 25,996 | |
Available for sale securities, Unrealized Gains | 29 | 14 | |
Available for sale securities, Unrealized Losses | 0 | 0 | |
Available for sale securities, debt securities, Fair Value | 26,027 | 26,010 | |
U.S. Government Agencies [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 26,657 | ' | |
Available for sale securities, Unrealized Gains | 17 | ' | |
Available for sale securities, Unrealized Losses | 271 | ' | |
Available for sale securities, debt securities, Fair Value | 26,403 | ' | |
U.S. Government Sponsored Enterprises (GSE) [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 40,136 | 44,331 | |
Available for sale securities, Unrealized Gains | 43 | 431 | |
Available for sale securities, Unrealized Losses | 647 | 0 | |
Available for sale securities, debt securities, Fair Value | 39,532 | 44,762 | |
States and Political Subdivisions [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 70,972 | 37,324 | |
Available for sale securities, Unrealized Gains | 462 | 1,588 | |
Available for sale securities, Unrealized Losses | 3,489 | 3 | |
Available for sale securities, debt securities, Fair Value | 67,945 | 38,909 | |
GSE Residential Mortgage-backed Securities [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 185,385 | 160,118 | |
Available for sale securities, Unrealized Gains | 1,097 | 1,014 | |
Available for sale securities, Unrealized Losses | 822 | 333 | |
Available for sale securities, debt securities, Fair Value | 185,660 | 160,799 | |
GSE Commercial Mortgage-backed Securities [Member] | Total Debt Securities [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale debt securities, Amortized Cost | 40,989 | 31,339 | |
Available for sale securities, Unrealized Gains | 0 | 143 | |
Available for sale securities, Unrealized Losses | 2,103 | 61 | |
Available for sale securities, debt securities, Fair Value | 38,886 | 31,421 | |
Equity Securities - Financial Services [Member] | ' | ' | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | |
Available for sale equity securities - financial services, Amortized Cost | 50 | 50 | |
Available for sale securities, Unrealized Gains | 19 | 19 | |
Available for sale securities, Unrealized Losses | 0 | 0 | |
Available for sale securities, equity securities - financial services, Fair Value | $69 | $69 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Securities_Available_for_Sale_2
Securities Available for Sale - Gross Unrealized Losses and Fair Value of Company's Available for Sale Securities (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | $199,109 | $86,233 |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 7,331 | 376 |
Total temporarily impaired securities, 12 Months or More, Fair Value | 769 | 2,657 |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 1 | 21 |
Total temporarily impaired securities, Total, Fair Value | 199,878 | 88,890 |
Total temporarily impaired securities, Total, Unrealized Losses | 7,332 | 397 |
U.S. Government Agencies [Member] | Total Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | 20,671 | ' |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 271 | ' |
Total temporarily impaired securities, 12 Months or More, Fair Value | 0 | ' |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 0 | ' |
Total temporarily impaired securities, Total, Fair Value | 20,671 | ' |
Total temporarily impaired securities, Total, Unrealized Losses | 271 | ' |
U.S. Government Sponsored Enterprises (GSE) [Member] | Total Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | 12,139 | ' |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 647 | ' |
Total temporarily impaired securities, 12 Months or More, Fair Value | 0 | ' |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 0 | ' |
Total temporarily impaired securities, Total, Fair Value | 12,139 | ' |
Total temporarily impaired securities, Total, Unrealized Losses | 647 | ' |
States and Political Subdivisions [Member] | Total Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | 47,042 | 885 |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 3,489 | 3 |
Total temporarily impaired securities, 12 Months or More, Fair Value | 0 | 0 |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 0 | 0 |
Total temporarily impaired securities, Total, Fair Value | 47,042 | 885 |
Total temporarily impaired securities, Total, Unrealized Losses | 3,489 | 3 |
GSE Residential Mortgage-backed Securities [Member] | Total Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | 80,371 | 64,952 |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 821 | 312 |
Total temporarily impaired securities, 12 Months or More, Fair Value | 769 | 2,657 |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 1 | 21 |
Total temporarily impaired securities, Total, Fair Value | 81,140 | 67,609 |
Total temporarily impaired securities, Total, Unrealized Losses | 822 | 333 |
GSE Commercial Mortgage-backed Securities [Member] | Total Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total temporarily impaired securities, Less Than 12 Months, Fair Value | 38,886 | 20,396 |
Total temporarily impaired securities, Less Than 12 Months, Unrealized Losses | 2,103 | 61 |
Total temporarily impaired securities, 12 Months or More, Fair Value | 0 | 0 |
Total temporarily impaired securities, 12 Months or More, Unrealized Losses | 0 | 0 |
Total temporarily impaired securities, Total, Fair Value | 38,886 | 20,396 |
Total temporarily impaired securities, Total, Unrealized Losses | $2,103 | $61 |
Securities_Available_for_Sale_3
Securities Available for Sale - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Security | Security | Security | States and Political Subdivisions [Member] | States and Political Subdivisions [Member] | Mortgage-backed Securities Issued by U.S. Treasuries and Government Sponsored Enterprises (GSE) [Member] | Mortgage-backed Securities Issued by U.S. Treasuries and Government Sponsored Enterprises (GSE) [Member] | |||
Security | Security | Security | Security | ||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities held | 73 | ' | 73 | ' | 27 | 27 | 1 | 46 | 26 |
U.S Treasury and GSE, less than 12 months category | ' | ' | ' | ' | ' | ' | ' | 1 | 1 |
Unrealized loss for security | ' | ' | ' | ' | ' | 'Less than 12 months | 'Less than 12 months | 'Less than 12 months | 'Less than 12 months |
Gross gains on the sales of securities | $160,000 | $20,000 | $419,000 | $4,986,000 | ' | ' | ' | ' | ' |
Gross losses on securities available for sale | 3,000 | 22,000 | 140,000 | 162,000 | ' | ' | ' | ' | ' |
Securities with fair value | $280,309,000 | ' | $280,309,000 | ' | $258,024,000 | ' | ' | ' | ' |
Securities_Available_for_Sale_4
Securities Available for Sale - Schedule of Amortized Cost and Fair Values of Securities Available for Sale by Contractual Maturity (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Investments Debt And Equity Securities [Abstract] | ' | ' | |
Due in one year or less, Amortized Cost | $54,013 | ' | |
Due after one year through five years, Amortized Cost | 380 | ' | |
Due after five years through ten years, Amortized Cost | 25,534 | ' | |
Due after ten years, Amortized Cost | 83,836 | ' | |
GSE residential mortgage-backed securities, Amortized Cost | 185,385 | ' | |
GSE commercial mortgage-backed securities, Amortized Cost | 40,989 | ' | |
Total debt securities, Amortized Cost | 390,137 | ' | |
Equity securities, Amortized Cost | 50 | ' | |
Available for sale securities, Total, Amortized Cost | 390,187 | 299,158 | |
Due in one year or less, Fair Value | 54,089 | ' | |
Due after one year through five years, Fair Value | 380 | ' | |
Due after five years through ten years, Fair Value | 24,713 | ' | |
Due after ten years, Fair Value | 80,725 | ' | |
GSE residential mortgage-backed securities, Fair Value | 185,660 | ' | |
GSE commercial mortgage-backed securities, Fair Value | 38,886 | ' | |
Available for sale securities, debt securities, Fair Value | 384,453 | ' | |
Equity securities, Fair Value | 69 | ' | |
Available for sale securities, Total | $384,522 | $301,970 | [1] |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Loans_Receivable_and_Allowance2
Loans Receivable and Allowance for Loan Losses - Additional Information (Detail) (USD $) | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Note | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Maximum percentage of loan-to-value ratio upon loan origination | 80.00% | ' | ' | ' | ' |
Maximum percentage of loan-to-value ratios of the value of the real estate taken as collateral | 90.00% | ' | ' | ' | ' |
Maximum percentage of credit worthiness of the borrower | 43.00% | ' | ' | ' | ' |
Minimum amount of loan on which reviews have been made annually | $1,000,000 | ' | ' | ' | ' |
Minimum amount of loan rated as Substandard | 250,000 | ' | ' | ' | ' |
Rating on loans that are deemed impaired | 'More than 90 days | ' | ' | ' | ' |
Number of notes split | 2 | ' | ' | ' | ' |
Loans to borrowers | 0 | ' | ' | ' | ' |
Minimum amount on which annual updated appraisals for criticized loans is required | $250,000 | ' | ' | ' | ' |
Percentage of strong loan-to-value | 70.00% | ' | ' | ' | ' |
Maximum period for temporary reduction in interest rates | '12 months | ' | ' | ' | ' |
Anticipated loss allocation basis points range | ' | 1.50% | 0.80% | -1.50% | 0.00% |
Loans_Receivable_and_Allowance3
Loans Receivable and Allowance for Loan Losses - Summary of Loan Portfolio, Excluding Residential Loans Held for Sale, Broken Out by Classes (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | $683,642 | $703,739 | [1] |
Commercial Real Estate [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 334,436 | 353,346 | |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 111,304 | 144,290 | |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 144,092 | 120,930 | |
Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 19,656 | 21,745 | |
Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 59,384 | 66,381 | |
Acquisition and Development [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 25,212 | 33,225 | |
Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 1,725 | 2,850 | |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 23,487 | 30,375 | |
Commercial and Industrial [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 34,218 | 39,340 | |
Municipal [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 63,291 | 68,018 | |
Residential Mortgage [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 220,114 | 202,796 | |
Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 124,488 | 108,601 | |
Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 19,204 | 14,747 | |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | 76,422 | 79,448 | |
Installment and Other [Member] | ' | ' | |
Summary of loan portfolio, excluding residential loans held for sale, broken out by classes | ' | ' | |
Total Loans | $6,371 | $7,014 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Loans_Receivable_and_Allowance4
Loans Receivable and Allowance for Loan Losses - Bank's Ratings Based on its Internal Risk Rating System (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | $683,642 | $703,739 | [1] |
Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 34,218 | 39,340 | |
Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 63,291 | 68,018 | |
Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 6,371 | 7,014 | |
Commercial Real Estate [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 334,436 | 353,346 | |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 111,304 | 144,290 | |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 144,092 | 120,930 | |
Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 19,656 | 21,745 | |
Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 59,384 | 66,381 | |
Acquisition and Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 25,212 | 33,225 | |
Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,725 | 2,850 | |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 23,487 | 30,375 | |
Residential Mortgage [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 220,114 | 202,796 | |
Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 124,488 | 108,601 | |
Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 19,204 | 14,747 | |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 76,422 | 79,448 | |
Pass [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 600,438 | 596,890 | |
Pass [Member] | Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 29,323 | 33,380 | |
Pass [Member] | Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 63,291 | 68,018 | |
Pass [Member] | Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 6,371 | 6,998 | |
Pass [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 90,511 | 121,333 | |
Pass [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 115,859 | 95,876 | |
Pass [Member] | Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 15,918 | 17,205 | |
Pass [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 46,574 | 45,468 | |
Pass [Member] | Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,382 | 1,608 | |
Pass [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 13,906 | 14,793 | |
Pass [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 121,860 | 101,390 | |
Pass [Member] | Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 19,154 | 14,403 | |
Pass [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 76,289 | 76,418 | |
Special Mention [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 17,849 | 52,548 | |
Special Mention [Member] | Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 2,004 | 3,713 | |
Special Mention [Member] | Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Special Mention [Member] | Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 11 | |
Special Mention [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 4,481 | 11,917 | |
Special Mention [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 4,763 | 7,351 | |
Special Mention [Member] | Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 2,161 | 3,936 | |
Special Mention [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 3,281 | 12,199 | |
Special Mention [Member] | Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 333 | |
Special Mention [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,159 | 8,937 | |
Special Mention [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 3,026 | |
Special Mention [Member] | Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 52 | |
Special Mention [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 1,073 | |
Non-Impaired Substandard [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 43,253 | 33,267 | |
Non-Impaired Substandard [Member] | Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,048 | 429 | |
Non-Impaired Substandard [Member] | Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Non-Impaired Substandard [Member] | Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 3 | |
Non-Impaired Substandard [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 11,731 | 8,623 | |
Non-Impaired Substandard [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 17,782 | 14,241 | |
Non-Impaired Substandard [Member] | Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,242 | 585 | |
Non-Impaired Substandard [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 5,255 | 3,346 | |
Non-Impaired Substandard [Member] | Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Non-Impaired Substandard [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 5,886 | 2,836 | |
Non-Impaired Substandard [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 299 | 1,604 | |
Non-Impaired Substandard [Member] | Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 235 | |
Non-Impaired Substandard [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 10 | 1,365 | |
Impaired - Substandard [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 21,530 | 18,282 | |
Impaired - Substandard [Member] | Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 1,843 | 566 | |
Impaired - Substandard [Member] | Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Impaired - Substandard [Member] | Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 2 | |
Impaired - Substandard [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 4,105 | 2,229 | |
Impaired - Substandard [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 5,688 | 3,462 | |
Impaired - Substandard [Member] | Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 335 | 19 | |
Impaired - Substandard [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 4,274 | 5,368 | |
Impaired - Substandard [Member] | Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 343 | 198 | |
Impaired - Substandard [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 2,536 | 3,208 | |
Impaired - Substandard [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 2,281 | 2,581 | |
Impaired - Substandard [Member] | Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 37 | 57 | |
Impaired - Substandard [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 88 | 592 | |
Doubtful [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 572 | 2,752 | |
Doubtful [Member] | Commercial and Industrial [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 1,252 | |
Doubtful [Member] | Municipal [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Doubtful [Member] | Installment and Other [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Doubtful [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 476 | 188 | |
Doubtful [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Doubtful [Member] | Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Doubtful [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 0 | |
Doubtful [Member] | Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 711 | |
Doubtful [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 0 | 601 | |
Doubtful [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 48 | 0 | |
Doubtful [Member] | Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | 13 | 0 | |
Doubtful [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Bank's ratings based on its internal risk rating system | ' | ' | |
Total Loans | $35 | $0 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Loans_Receivable_and_Allowance5
Loans Receivable and Allowance for Loan Losses - Impaired Loans by Class (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | $697 | $3,545 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 1,165 | 3,588 |
Impaired Loans with a Specific Allowance, Related Allowance | 678 | 1,312 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 21,405 | 17,489 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 23,714 | 27,536 |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 476 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 942 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 476 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 4,105 | 2,417 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 4,607 | 2,680 |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 1,257 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 1,257 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 329 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 5,688 | 2,205 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 6,218 | 5,487 |
Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 335 | 19 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 420 | 198 |
Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 204 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 204 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 46 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 4,274 | 5,164 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 4,550 | 6,510 |
Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 711 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 725 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 9 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 343 | 198 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 371 | 202 |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 2,536 | 3,809 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 3,170 | 8,556 |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 1,373 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 1,402 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 928 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 1,843 | 445 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 1,953 | 445 |
Residential Mortgage [Member] | First Lien [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 48 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 48 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 48 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 2,281 | 2,581 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 2,425 | 2,784 |
Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 50 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 51 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 49 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 0 | 57 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 75 |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 123 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 124 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 105 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 0 | 592 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 597 |
Installment and Other [Member] | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Impaired Loans with a Specific Allowance, Recorded Investment (Book Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Unpaid Principal Balance (Legal Balance) | 0 | 0 |
Impaired Loans with a Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment (Book Balance) | 0 | 2 |
Impaired Loans with No Specific Allowance, Unpaid Principal Balance (Legal Balance) | $0 | $2 |
Loans_Receivable_and_Allowance6
Loans Receivable and Allowance for Loan Losses - Average Recorded Investment in Impaired Loans and Related Interest Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | $20,923 | $59,980 | $20,044 | $78,724 |
Interest Income Recognized | 187 | 459 | 365 | 1,308 |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 4,249 | 8,499 | 3,270 | 9,864 |
Interest Income Recognized | 41 | 48 | 99 | 92 |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 3,980 | 14,928 | 3,605 | 17,099 |
Interest Income Recognized | 50 | 37 | 86 | 397 |
Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 168 | 1,203 | 89 | 2,008 |
Interest Income Recognized | 16 | 120 | 16 | 120 |
Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 5,108 | 12,440 | 4,875 | 26,905 |
Interest Income Recognized | 45 | 57 | 60 | 266 |
Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 345 | 2,049 | 602 | 1,881 |
Interest Income Recognized | 0 | 21 | 0 | 23 |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 2,613 | 13,608 | 2,967 | 14,863 |
Interest Income Recognized | 0 | 100 | 2 | 287 |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 1,875 | 3,359 | 1,724 | 2,748 |
Interest Income Recognized | 0 | 16 | 65 | 27 |
Residential Mortgage [Member] | First Lien [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 2,421 | 3,459 | 2,528 | 2,730 |
Interest Income Recognized | 29 | 41 | 31 | 73 |
Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 47 | 46 | 47 | 181 |
Interest Income Recognized | 2 | 1 | 2 | 2 |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 116 | 383 | 336 | 436 |
Interest Income Recognized | 4 | 17 | 4 | 19 |
Installment and Other [Member] | ' | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' | ' |
Average Impaired Balance | 1 | 6 | 1 | 9 |
Interest Income Recognized | $0 | $1 | $0 | $2 |
Loans_Receivable_and_Allowance7
Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 11 | 12 |
Troubled debt restructurings at period end, Recorded Investment | $6,595 | $4,308 |
Accruing [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 7 | 7 |
Troubled debt restructurings at period end, Recorded Investment | 5,289 | 3,092 |
Accruing [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | 0 | 122 |
Accruing [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 2 | 0 |
Troubled debt restructurings at period end, Recorded Investment | 150 | 0 |
Accruing [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 3 | 2 |
Troubled debt restructurings at period end, Recorded Investment | 4,165 | 1,981 |
Accruing [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | 0 | 204 |
Accruing [Member] | Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 0 |
Troubled debt restructurings at period end, Recorded Investment | 520 | 0 |
Accruing [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 2 |
Troubled debt restructurings at period end, Recorded Investment | 454 | 749 |
Accruing [Member] | Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | 0 | 36 |
Nonaccruing [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 4 | 5 |
Troubled debt restructurings at period end, Recorded Investment | 1,306 | 1,216 |
Nonaccruing [Member] | Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 0 |
Troubled debt restructurings at period end, Recorded Investment | 114 | 0 |
Nonaccruing [Member] | Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | 0 | 7 |
Nonaccruing [Member] | Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 0 |
Troubled debt restructurings at period end, Recorded Investment | 713 | 0 |
Nonaccruing [Member] | Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 4 |
Troubled debt restructurings at period end, Recorded Investment | 196 | 1,209 |
Nonaccruing [Member] | Residential Mortgage [Member] | First Lien [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 1 | 0 |
Troubled debt restructurings at period end, Recorded Investment | $283 | $0 |
Loans_Receivable_and_Allowance8
Loans Receivable and Allowance for Loan Losses - Restructured Loans Modified as Troubled Debt Restructuring within Previous Twelve Months (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Contract | Contract | Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | ' | ' | 0 | 9 |
Troubled debt restructurings at period end, Recorded Investment | ' | ' | $0 | $2,240 |
Owner-Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | ' | ' | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | ' | ' | 0 | 6 |
Non-owner Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | 0 | 1 | 0 | 1 |
Troubled debt restructurings at period end, Recorded Investment | 0 | 193 | 0 | 193 |
Non-owner Occupied Residential [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | ' | ' | 0 | 5 |
Troubled debt restructurings at period end, Recorded Investment | ' | ' | 0 | 1,269 |
Commercial and Land Development [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Troubled debt restructurings at periods end, Number of Contracts | ' | ' | 0 | 2 |
Troubled debt restructurings at period end, Recorded Investment | ' | ' | $0 | $772 |
Loans_Receivable_and_Allowance9
Loans Receivable and Allowance for Loan Losses - Number of Loans Modified and Pre-Modification and Post-Modification Investment Balances (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Contract | Contract | Contract | Contract | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 4 | 0 | 5 | 3 |
Recorded Investment | $3,607 | $0 | $4,131 | $539 |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 2 | 0 | 2 | 0 |
Recorded Investment | 150 | 0 | 150 | 0 |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | 2 | 0 | 2 | 0 |
Recorded Investment | 3,457 | 0 | 3,457 | 0 |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | ' | ' | 1 | 0 |
Recorded Investment | ' | ' | 524 | 0 |
Commercial and Industrial [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | ' | ' | 0 | 1 |
Recorded Investment | ' | ' | 0 | 203 |
Residential Mortgage [Member] | First Lien [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | ' | ' | 0 | 1 |
Recorded Investment | ' | ' | 0 | 299 |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Contracts | ' | ' | 0 | 1 |
Recorded Investment | ' | ' | $0 | $37 |
Recovered_Sheet1
Loans Receivable and Allowance for Loan Losses - Loan Portfolio Summarized by Aging Categories of Performing Loans and Nonaccrual Loans (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | $662,752 | $682,218 | |
30-59 Days Past Due | 3,368 | 2,905 | |
60-89 Days Past Due | 689 | 673 | |
90+ (still accruing) Days Past Due | 20 | 0 | |
Total Past Due | 4,077 | 3,578 | |
Non-Accrual | 16,813 | 17,943 | |
Total Loans | 683,642 | 703,739 | [1] |
Commercial Real Estate [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Total Loans | 334,436 | 353,346 | |
Commercial Real Estate [Member] | Owner-Occupied [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 106,279 | 141,833 | |
30-59 Days Past Due | 594 | 40 | |
60-89 Days Past Due | 0 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 594 | 40 | |
Non-Accrual | 4,431 | 2,417 | |
Total Loans | 111,304 | 144,290 | |
Commercial Real Estate [Member] | Non-owner Occupied [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 142,569 | 119,320 | |
30-59 Days Past Due | 0 | 129 | |
60-89 Days Past Due | 0 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 0 | 129 | |
Non-Accrual | 1,523 | 1,481 | |
Total Loans | 144,092 | 120,930 | |
Commercial Real Estate [Member] | Multi - Family [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 19,321 | 21,726 | |
30-59 Days Past Due | 0 | 0 | |
60-89 Days Past Due | 0 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 0 | 0 | |
Non-Accrual | 335 | 19 | |
Total Loans | 19,656 | 21,745 | |
Commercial Real Estate [Member] | Non-owner Occupied Residential [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 55,026 | 60,890 | |
30-59 Days Past Due | 84 | 122 | |
60-89 Days Past Due | 0 | 205 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 84 | 327 | |
Non-Accrual | 4,274 | 5,164 | |
Total Loans | 59,384 | 66,381 | |
Acquisition and Development [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Total Loans | 25,212 | 33,225 | |
Acquisition and Development [Member] | 1-4 Family Residential Construction [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 1,382 | 1,770 | |
30-59 Days Past Due | 0 | 0 | |
60-89 Days Past Due | 0 | 171 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 0 | 171 | |
Non-Accrual | 343 | 909 | |
Total Loans | 1,725 | 2,850 | |
Acquisition and Development [Member] | Commercial and Land Development [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 21,250 | 26,054 | |
30-59 Days Past Due | 193 | 511 | |
60-89 Days Past Due | 8 | 1 | |
90+ (still accruing) Days Past Due | 20 | 0 | |
Total Past Due | 221 | 512 | |
Non-Accrual | 2,016 | 3,809 | |
Total Loans | 23,487 | 30,375 | |
Commercial and Industrial [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 31,500 | 37,348 | |
30-59 Days Past Due | 875 | 296 | |
60-89 Days Past Due | 0 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 875 | 296 | |
Non-Accrual | 1,843 | 1,696 | |
Total Loans | 34,218 | 39,340 | |
Municipal [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 63,291 | 68,018 | |
30-59 Days Past Due | 0 | 0 | |
60-89 Days Past Due | 0 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 0 | 0 | |
Non-Accrual | 0 | 0 | |
Total Loans | 63,291 | 68,018 | |
Residential Mortgage [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Total Loans | 220,114 | 202,796 | |
Residential Mortgage [Member] | First Lien [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 120,955 | 104,933 | |
30-59 Days Past Due | 1,124 | 1,565 | |
60-89 Days Past Due | 534 | 270 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 1,658 | 1,835 | |
Non-Accrual | 1,875 | 1,833 | |
Total Loans | 124,488 | 108,601 | |
Residential Mortgage [Member] | Home Equity-Term [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 18,933 | 14,609 | |
30-59 Days Past Due | 160 | 81 | |
60-89 Days Past Due | 61 | 0 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 221 | 81 | |
Non-Accrual | 50 | 57 | |
Total Loans | 19,204 | 14,747 | |
Residential Mortgage [Member] | Home Equity-Lines of Credit [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 75,962 | 78,880 | |
30-59 Days Past Due | 288 | 0 | |
60-89 Days Past Due | 49 | 12 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 337 | 12 | |
Non-Accrual | 123 | 556 | |
Total Loans | 76,422 | 79,448 | |
Installment and Other [Member] | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | |
Current | 6,284 | 6,837 | |
30-59 Days Past Due | 50 | 161 | |
60-89 Days Past Due | 37 | 14 | |
90+ (still accruing) Days Past Due | 0 | 0 | |
Total Past Due | 87 | 175 | |
Non-Accrual | 0 | 2 | |
Total Loans | $6,371 | $7,014 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Recovered_Sheet2
Loans Receivable and Allowance for Loan Losses - Activity in the Allowance for Loan Losses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | $20,098 | $36,235 | $23,166 | [1] | $43,715 |
Provision for loan losses | 0 | 5,100 | -1,400 | 47,300 | |
Charge-offs | -1,815 | -5,145 | -5,059 | -57,123 | |
Recoveries | 2,969 | 510 | 4,545 | 2,808 | |
Balance, end of period | 21,252 | 36,700 | 21,252 | 36,700 | |
Commercial Real Estate [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 11,288 | 23,521 | 13,719 | 29,559 | |
Provision for loan losses | 3,495 | 584 | 3,653 | 33,464 | |
Charge-offs | -1,767 | -782 | -4,444 | -41,222 | |
Recoveries | 45 | 483 | 133 | 2,005 | |
Balance, end of period | 13,061 | 23,806 | 13,061 | 23,806 | |
Acquisition and Development [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 1,946 | 6,803 | 3,502 | 9,708 | |
Provision for loan losses | -1,117 | 5,020 | -3,943 | 11,419 | |
Charge-offs | -2 | -4,139 | -146 | -14,116 | |
Recoveries | 267 | 13 | 1,681 | 686 | |
Balance, end of period | 1,094 | 7,697 | 1,094 | 7,697 | |
Commercial and Industrial [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 875 | 2,005 | 1,635 | 1,085 | |
Provision for loan losses | -2,651 | 250 | -3,309 | 2,306 | |
Charge-offs | 0 | -69 | -114 | -1,289 | |
Recoveries | 2,530 | 8 | 2,542 | 92 | |
Balance, end of period | 754 | 2,194 | 754 | 2,194 | |
Municipal [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 254 | 1,012 | 223 | 789 | |
Provision for loan losses | -12 | -783 | 19 | -560 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance, end of period | 242 | 229 | 242 | 229 | |
Commercial [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 14,363 | 33,341 | 19,079 | 41,141 | |
Provision for loan losses | -285 | 5,071 | -3,580 | 46,629 | |
Charge-offs | -1,769 | -4,990 | -4,704 | -56,627 | |
Recoveries | 2,842 | 504 | 4,356 | 2,783 | |
Balance, end of period | 15,151 | 33,926 | 15,151 | 33,926 | |
Residential Mortgage [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 3,796 | 887 | 2,275 | 933 | |
Provision for loan losses | 2 | 169 | 1,750 | 384 | |
Charge-offs | 0 | -109 | -263 | -381 | |
Recoveries | 100 | 4 | 136 | 15 | |
Balance, end of period | 3,898 | 951 | 3,898 | 951 | |
Installment and Other [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 134 | 69 | 85 | 75 | |
Provision for loan losses | 11 | 58 | 80 | 113 | |
Charge-offs | -46 | -46 | -92 | -115 | |
Recoveries | 27 | 2 | 53 | 10 | |
Balance, end of period | 126 | 83 | 126 | 83 | |
Consumer [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 3,930 | 956 | 2,360 | 1,008 | |
Provision for loan losses | 13 | 227 | 1,830 | 497 | |
Charge-offs | -46 | -155 | -355 | -496 | |
Recoveries | 127 | 6 | 189 | 25 | |
Balance, end of period | 4,024 | 1,034 | 4,024 | 1,034 | |
Unallocated [Member] | ' | ' | ' | ' | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' | ' | |
Balance, beginning of period | 1,805 | 1,938 | 1,727 | 1,566 | |
Provision for loan losses | 272 | -198 | 350 | 174 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance, end of period | $2,077 | $1,740 | $2,077 | $1,740 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Recovered_Sheet3
Loans Receivable and Allowance for Loan Losses - Summary of Allowance for Loan Loss Allocation (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | $22,102 | ' | $21,034 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 661,540 | ' | 682,705 | ' | ' | ' | |
Total Loans | 683,642 | ' | 703,739 | [1] | ' | ' | ' |
Allowance for loan losses, Individually evaluated for impairment | 678 | ' | 1,312 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 20,574 | ' | 21,854 | ' | ' | ' | |
Allowance for loan losses, Total | 21,252 | 20,098 | 23,166 | [1] | 36,700 | 36,235 | 43,715 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 14,878 | ' | 11,266 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 319,558 | ' | 342,080 | ' | ' | ' | |
Total Loans | 334,436 | ' | 353,346 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 476 | ' | 375 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 12,585 | ' | 13,344 | ' | ' | ' | |
Allowance for loan losses, Total | 13,061 | 11,288 | 13,719 | 23,806 | 23,521 | 29,559 | |
Acquisition and Development [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 2,879 | ' | 4,718 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 22,333 | ' | 28,507 | ' | ' | ' | |
Total Loans | 25,212 | ' | 33,225 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 0 | ' | 9 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 1,094 | ' | 3,493 | ' | ' | ' | |
Allowance for loan losses, Total | 1,094 | 1,946 | 3,502 | 7,697 | 6,803 | 9,708 | |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 1,843 | ' | 1,818 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 32,375 | ' | 37,522 | ' | ' | ' | |
Total Loans | 34,218 | ' | 39,340 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 0 | ' | 928 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 754 | ' | 707 | ' | ' | ' | |
Allowance for loan losses, Total | 754 | 875 | 1,635 | 2,194 | 2,005 | 1,085 | |
Municipal [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 63,291 | ' | 68,018 | ' | ' | ' | |
Total Loans | 63,291 | ' | 68,018 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 242 | ' | 223 | ' | ' | ' | |
Allowance for loan losses, Total | 242 | 254 | 223 | 229 | 1,012 | 789 | |
Residential Mortgage [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 2,502 | ' | 3,230 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 217,612 | ' | 199,566 | ' | ' | ' | |
Total Loans | 220,114 | ' | 202,796 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 202 | ' | 0 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 3,696 | ' | 2,275 | ' | ' | ' | |
Allowance for loan losses, Total | 3,898 | 3,796 | 2,275 | 951 | 887 | 933 | |
Installment and Other [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 0 | ' | 2 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 6,371 | ' | 7,012 | ' | ' | ' | |
Total Loans | 6,371 | ' | 7,014 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 126 | ' | 85 | ' | ' | ' | |
Allowance for loan losses, Total | 126 | 134 | 85 | 83 | 69 | 75 | |
Unallocated [Member] | ' | ' | ' | ' | ' | ' | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' | ' | ' | ' | ' | |
Loans, Individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Loans, Collectively evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Total Loans | 0 | ' | 0 | ' | ' | ' | |
Allowance for loan losses, Individually evaluated for impairment | 0 | ' | 0 | ' | ' | ' | |
Allowance for loan losses, Collectively evaluated for impairment | 2,077 | ' | 1,727 | ' | ' | ' | |
Allowance for loan losses, Total | $2,077 | $1,805 | $1,727 | $1,740 | $1,938 | $1,566 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal | $0 | ($3,894) | $60 | ($13,388) |
State | -281 | 0 | -281 | -46 |
Deferred tax expense (benefit) | 532 | 3,050 | 1,320 | 512 |
Valuation allowance on deferred taxes | -532 | 19,872 | -1,320 | 19,872 |
Net income tax expense (benefit) | ($281) | $19,028 | ($221) | $6,950 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (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 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Provision for income taxes | $55,000 | ($1,000) | $98,000 | $1,688,000 | ' |
Cumulative loss position, significant negative evidence against the realizability of the deferred tax asset | ' | ' | '3 years | ' | '3 years |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Asset (Liability) (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $7,762 | $9,672 |
Deferred compensation | 480 | 477 |
Retirement plans and salary continuation | 1,558 | 1,473 |
Stock compensation | 189 | 184 |
Off balance sheet reserves | 214 | 231 |
Nonaccrual loan interest | 263 | 228 |
Net unrealized losses on securities available for sale | 1,983 | 0 |
Goodwill | 191 | 214 |
Low income housing credit carryforward | 832 | 806 |
Alternative minimum tax credit carryforward | 60 | 0 |
Charitable contribution carry forward | 232 | 391 |
Net operating loss carryforward | 9,156 | 8,466 |
Other | 179 | 237 |
Total deferred tax assets | 23,099 | 22,379 |
Valuation allowance | -18,915 | -20,235 |
Total deferred tax assets | 4,184 | 2,144 |
Deferred tax liabilities: | ' | ' |
Depreciation | 1,107 | 1,232 |
Net unrealized gains on securities available for sale | 0 | 984 |
Purchase accounting adjustments | 515 | 575 |
Other | 579 | 337 |
Total deferred tax liabilities | 2,201 | 3,128 |
Net deferred asset (liability) | $1,983 | ($984) |
Shareholders_Equity_and_Regula2
Shareholders' Equity and Regulatory Capital - Bank's Actual Capital Ratios (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Orrstown Financial Services, Inc. [Member] | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Actual, Amount, Total capital to risk weighted assets | $102,017 | $94,928 |
Actual, Amount, Tier 1 capital to risk weighted assets | 92,796 | 84,999 |
Actual, Amount, Tier 1 capital to average assets | 92,796 | 84,999 |
Actual, Ratio, Total capital to risk weighted assets | 14.10% | 12.20% |
Actual, Ratio, Tier 1 capital to risk weighted assets | 12.80% | 10.90% |
Actual, Ratio, Tier 1 capital to average assets | 7.90% | 6.80% |
Minimum Capital Requirement, Amount, Total capital to risk weighted assets | 58,012 | 62,438 |
Minimum Capital Requirement, Amount, Tier 1 capital to risk weighted assets | 29,006 | 31,219 |
Minimum Capital Requirement, Amount, Tier 1 capital to average assets | 47,137 | 49,840 |
Minimum Capital Requirement, Ratio, Total capital to risk weighted assets | 8.00% | 8.00% |
Minimum Capital Requirement, Ratio, Tier 1 capital to risk weighted assets | 4.00% | 4.00% |
Minimum Capital Requirement, Ratio, Tier 1 capital to average assets | 4.00% | 4.00% |
Orrstown Bank [Member] | ' | ' |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ' | ' |
Actual, Amount, Total capital to risk weighted assets | 100,067 | 92,466 |
Actual, Amount, Tier 1 capital to risk weighted assets | 90,853 | 82,540 |
Actual, Amount, Tier 1 capital to average assets | 90,853 | 82,540 |
Actual, Ratio, Total capital to risk weighted assets | 13.80% | 11.90% |
Actual, Ratio, Tier 1 capital to risk weighted assets | 12.50% | 10.60% |
Actual, Ratio, Tier 1 capital to average assets | 7.70% | 6.60% |
Minimum Capital Requirement, Amount, Total capital to risk weighted assets | 57,966 | 62,418 |
Minimum Capital Requirement, Amount, Tier 1 capital to risk weighted assets | 28,983 | 31,209 |
Minimum Capital Requirement, Amount, Tier 1 capital to average assets | 47,169 | 49,873 |
Minimum Capital Requirement, Ratio, Total capital to risk weighted assets | 8.00% | 8.00% |
Minimum Capital Requirement, Ratio, Tier 1 capital to risk weighted assets | 4.00% | 4.00% |
Minimum Capital Requirement, Ratio, Tier 1 capital to average assets | 4.00% | 4.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount, Total capital to risk weighted assets | 72,458 | 78,023 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount, Tier 1 capital to risk weighted assets | 43,475 | 46,814 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount, Tier 1 capital to average assets | $58,961 | $62,341 |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio, Total capital to risk weighted assets | 10.00% | 10.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio, Tier 1 capital to risk weighted assets | 6.00% | 6.00% |
Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio, Tier 1 capital to average assets | 5.00% | 5.00% |
Earnings_Per_Share_Earnings_Lo
Earnings Per Share - Earnings (Loss) Per Share (Detail) (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 |
Earnings (loss) per share | ' | ' | ' | ' |
Net income (loss) | $2,109 | ($21,352) | $7,077 | ($39,484) |
Weighted average shares outstanding (basic) | 8,091 | 8,065 | 8,089 | 8,062 |
Impact of common stock equivalents | 0 | 0 | 0 | 0 |
Weighted average shares outstanding (diluted) | 8,091 | 8,065 | 8,089 | 8,062 |
Per share information: | ' | ' | ' | ' |
Basic earnings (loss) per share | $0.26 | ($2.65) | $0.87 | ($4.90) |
Diluted earnings (loss) per share | $0.26 | ($2.65) | $0.87 | ($4.90) |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) (Employee Stock Option [Member]) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Stock Option [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Shares of common stock were not considered in computing diluted earnings per share | 207,000 | 305,000 | 230,000 | 305,000 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance-Sheet Risk - Commitments and Conditional Obligations (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Revolving, Open Ended Home Equity Loans [Member] | ' | ' |
Commitments and conditional obligations | ' | ' |
Contract or Notional Amount | $83,582 | $77,674 |
1-4 Family Residential Construction Loans [Member] | ' | ' |
Commitments and conditional obligations | ' | ' |
Contract or Notional Amount | 1,910 | 1,002 |
Commercial Real Estate, Construction and Land Development Loans [Member] | ' | ' |
Commitments and conditional obligations | ' | ' |
Contract or Notional Amount | 10,320 | 1,021 |
Commercial, Industrial and Other Loans [Member] | ' | ' |
Commitments and conditional obligations | ' | ' |
Contract or Notional Amount | 35,857 | 60,250 |
Standby Letters of Credit [Member] | ' | ' |
Commitments and conditional obligations | ' | ' |
Contract or Notional Amount | $6,226 | $11,551 |
Financial_Instruments_with_Off3
Financial Instruments with Off-Balance-Sheet Risk - Additional Information (Detail) (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 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items] | ' | ' | ' | ' | ' |
Reserve for off-balance sheet credit exposures | $513,000 | ' | $513,000 | ' | $583,000 |
Charged to other noninterest expense | 76,000 | 76,000 | ' | ' | ' |
Other expenses estimating losses | ' | ' | -70,000 | 145,000 | ' |
Mortgage Partnership Finance Program [Member] | ' | ' | ' | ' | ' |
Fair Value Assets Measured On Recurring Basis Unobservable Input [Line Items] | ' | ' | ' | ' | ' |
Other expenses estimating losses | 76,000 | -101,000 | 20,000 | -4,000 | ' |
Sum of total loans sold under the MPF Program | 64,504,000 | ' | ' | ' | 115,630,000 |
Limited recourse debt | $8,379,000 | ' | $8,379,000 | ' | $8,420,000 |
Fair_Value_Disclosures_Additio
Fair Value Disclosures - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Risks And Uncertainties [Abstract] | ' | ' |
Fair value liabilities | $0 | $0 |
Allowance for loan losses | 2,562,000 | 10,843,000 |
Specific charges to value the real estate owned | 412,000 | 581,000 |
Lower of cost or fair value reserve | $0 | $644,000 |
Short-term borrowings maturity period | '90 days | ' |
Fair_Value_Disclosures_Summary
Fair Value Disclosures - Summary of Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | $384,522 | $301,970 | [1] |
Fair Value, Measurements, Recurring [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 384,522 | 301,970 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 384,453 | 301,901 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Treasury [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 26,027 | 26,010 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Agencies [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 26,403 | ' | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Sponsored Enterprises (GSE) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 39,532 | 44,762 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | States and Political Subdivisions [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 67,945 | 38,909 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Residential Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 185,660 | 160,799 | |
Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Commercial Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 38,886 | 31,421 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities - Financial Services [Member] | Financial Services [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 69 | 69 | |
Level 1 [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Treasury [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Agencies [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | ' | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Sponsored Enterprises (GSE) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | States and Political Subdivisions [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Residential Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Commercial Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities - Financial Services [Member] | Financial Services [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 2 [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 384,522 | 301,970 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 384,522 | 301,970 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 384,453 | 301,901 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Treasury [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 26,027 | 26,010 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Agencies [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 26,403 | ' | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Sponsored Enterprises (GSE) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 39,532 | 44,762 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | States and Political Subdivisions [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 67,945 | 38,909 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Residential Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 185,660 | 160,799 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Commercial Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 38,886 | 31,421 | |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities - Financial Services [Member] | Financial Services [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 69 | 69 | |
Level 3 [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Treasury [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Agencies [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | ' | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | U.S. Government Sponsored Enterprises (GSE) [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | States and Political Subdivisions [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Residential Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Total Debt Securities [Member] | GSE Commercial Mortgage-backed Securities [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | 0 | 0 | |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity Securities - Financial Services [Member] | Financial Services [Member] | ' | ' | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | |
Total securities | $0 | $0 | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Fair_Value_Disclosures_Summary1
Fair Value Disclosures - Summary of Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Foreclosed real estate | $965,000 | $1,876,000 |
Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans, net | 4,692,000 | 10,675,000 |
Foreclosed real estate | 659,000 | 1,101,000 |
Mortgage servicing rights | ' | 2,296,000 |
Level 1 [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Mortgage servicing rights | 0 | 0 |
Level 1 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans, net | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Level 2 [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Mortgage servicing rights | 0 | 0 |
Level 2 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans, net | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Level 3 [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Mortgage servicing rights | 3,162,000 | 2,296,000 |
Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | ' | ' |
Summary of assets measured at fair value on a nonrecurring basis | ' | ' |
Impaired loans, net | 4,692,000 | 10,675,000 |
Foreclosed real estate | 659,000 | 1,101,000 |
Mortgage servicing rights | ' | $2,296,000 |
Fair_Value_Disclosures_Summary2
Fair Value Disclosures - Summary of Additional Qualitative Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Impaired Loans Net [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Fair Value Estimate | $4,692 | $10,675 |
Valuation Techniques | 'Appraisal of collateral | 'Appraisal of collateral |
Impaired Loans Net [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | 'Management adjustments on appraisals for property type and recent activity | 'Management adjustments on appraisals for property type and recent activity |
Impaired Loans Net [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | 'Management adjustments for liquidation expenses | 'Management adjustments for liquidation expenses |
Impaired Loans Net [Member] | Minimum [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 0.00% | 0.00% |
Impaired Loans Net [Member] | Minimum [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 5.00% | 5.00% |
Impaired Loans Net [Member] | Maximum [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 30.00% | 30.00% |
Impaired Loans Net [Member] | Maximum [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 10.00% | 10.00% |
Foreclosed Real Estate [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Fair Value Estimate | 659 | 1,101 |
Valuation Techniques | 'Appraisal of collateral | 'Appraisal of collateral |
Foreclosed Real Estate [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | 'Management adjustments on appraisals for property type and recent activity | 'Management adjustments on appraisals for property type and recent activity |
Foreclosed Real Estate [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | 'Management adjustments for liquidation expenses | 'Management adjustments for liquidation expenses |
Foreclosed Real Estate [Member] | Minimum [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 0.00% | 0.00% |
Foreclosed Real Estate [Member] | Minimum [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 5.00% | 5.00% |
Foreclosed Real Estate [Member] | Maximum [Member] | Management Adjustments on Appraisals for Property Type and Recent Activity [Member] | Appraisal of Collateral [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 30.00% | 30.00% |
Foreclosed Real Estate [Member] | Maximum [Member] | Management Adjustments for Liquidation Expenses [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | 25.00% | 10.00% |
Mortgage Servicing Rights [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Mortgage servicing rights, Unobservable Input, Discount rate | ' | 10.70% |
Mortgage servicing rights, Unobservable Input, Remaining term | ' | '4 years |
Fair Value Estimate | ' | $2,296 |
Valuation Techniques | ' | 'Discounted cash flows |
Mortgage Servicing Rights [Member] | Remaining Term [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | ' | 'Remaining term |
Mortgage Servicing Rights [Member] | Discount Rate [Member] | ' | ' |
Fair Value Of Assets And Liabilities Measured On Non Recurring Basis [Line Items] | ' | ' |
Unobservable Input | ' | 'Discount rate |
Fair_Value_Disclosures_Financi
Fair Value Disclosures - Financial Statements at Estimated Fair Values (Detail) (USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||||
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | $17,502 | ' | $16,933 | [1] | ' | ' | ' |
Interest bearing deposits with banks | 52,874 | ' | 133,755 | [1] | ' | ' | ' |
Restricted investments in bank stock | 8,037 | ' | 9,804 | [1] | ' | ' | ' |
Securities available for sale | 384,522 | ' | 301,970 | [1] | ' | ' | ' |
Loans held for sale | 1,648 | ' | 7,862 | [1] | ' | ' | ' |
Loans, net of allowance for loan losses | 21,252 | 20,098 | 23,166 | [1] | 36,700 | 36,235 | 43,715 |
Accrued interest receivable | 3,380 | ' | 3,188 | [1] | ' | ' | ' |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 1,034,933 | ' | 1,085,039 | [1] | ' | ' | ' |
Short-term borrowings | 25,320 | ' | 9,650 | [1] | ' | ' | ' |
Long-term debt | 16,431 | ' | 37,470 | [1] | ' | ' | ' |
Level 1 [Member] | ' | ' | ' | ' | ' | ' | |
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | 17,502 | ' | 16,933 | ' | ' | ' | |
Interest bearing deposits with banks | 52,874 | ' | 133,755 | ' | ' | ' | |
Restricted investments in bank stock | 0 | ' | 0 | ' | ' | ' | |
Securities available for sale | 0 | ' | 0 | ' | ' | ' | |
Loans held for sale | 0 | ' | 0 | ' | ' | ' | |
Loans, net of allowance for loan losses | 0 | ' | 0 | ' | ' | ' | |
Accrued interest receivable | 0 | ' | 0 | ' | ' | ' | |
Mortgage servicing rights | 0 | ' | 0 | ' | ' | ' | |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 0 | ' | 0 | ' | ' | ' | |
Short-term borrowings | 0 | ' | 0 | ' | ' | ' | |
Long-term debt | 0 | ' | 0 | ' | ' | ' | |
Accrued interest payable | 0 | ' | 0 | ' | ' | ' | |
Off-balance sheet instruments | 0 | ' | 0 | ' | ' | ' | |
Level 2 [Member] | ' | ' | ' | ' | ' | ' | |
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | 0 | ' | 0 | ' | ' | ' | |
Interest bearing deposits with banks | 0 | ' | 0 | ' | ' | ' | |
Restricted investments in bank stock | 0 | ' | 0 | ' | ' | ' | |
Securities available for sale | 384,522 | ' | 301,970 | ' | ' | ' | |
Loans held for sale | 1,648 | ' | 7,862 | ' | ' | ' | |
Loans, net of allowance for loan losses | 0 | ' | 0 | ' | ' | ' | |
Accrued interest receivable | 0 | ' | 0 | ' | ' | ' | |
Mortgage servicing rights | 0 | ' | 0 | ' | ' | ' | |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 1,037,181 | ' | 1,089,344 | ' | ' | ' | |
Short-term borrowings | 25,320 | ' | 9,650 | ' | ' | ' | |
Long-term debt | 17,096 | ' | 38,676 | ' | ' | ' | |
Accrued interest payable | 331 | ' | 424 | ' | ' | ' | |
Off-balance sheet instruments | 0 | ' | 0 | ' | ' | ' | |
Level 3 [Member] | ' | ' | ' | ' | ' | ' | |
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | 0 | ' | 0 | ' | ' | ' | |
Interest bearing deposits with banks | 0 | ' | 0 | ' | ' | ' | |
Restricted investments in bank stock | 8,037 | ' | 9,804 | ' | ' | ' | |
Securities available for sale | 0 | ' | 0 | ' | ' | ' | |
Loans held for sale | 0 | ' | 0 | ' | ' | ' | |
Loans, net of allowance for loan losses | 669,446 | ' | 681,414 | ' | ' | ' | |
Accrued interest receivable | 3,380 | ' | 3,188 | ' | ' | ' | |
Mortgage servicing rights | 3,162 | ' | 2,296 | ' | ' | ' | |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 0 | ' | 0 | ' | ' | ' | |
Short-term borrowings | 0 | ' | 0 | ' | ' | ' | |
Long-term debt | 0 | ' | 0 | ' | ' | ' | |
Accrued interest payable | 0 | ' | 0 | ' | ' | ' | |
Off-balance sheet instruments | 0 | ' | 0 | ' | ' | ' | |
Carrying Amount [Member] | ' | ' | ' | ' | ' | ' | |
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | 17,502 | ' | 16,933 | ' | ' | ' | |
Interest bearing deposits with banks | 52,874 | ' | 133,755 | ' | ' | ' | |
Restricted investments in bank stock | 8,037 | ' | 9,804 | ' | ' | ' | |
Securities available for sale | 384,522 | ' | 301,970 | ' | ' | ' | |
Loans held for sale | 1,648 | ' | 7,862 | ' | ' | ' | |
Loans, net of allowance for loan losses | 662,390 | ' | 680,573 | ' | ' | ' | |
Accrued interest receivable | 3,380 | ' | 3,188 | ' | ' | ' | |
Mortgage servicing rights | 2,844 | ' | 2,296 | ' | ' | ' | |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 1,034,933 | ' | 1,085,039 | ' | ' | ' | |
Short-term borrowings | 25,320 | ' | 9,650 | ' | ' | ' | |
Long-term debt | 16,431 | ' | 37,470 | ' | ' | ' | |
Accrued interest payable | 331 | ' | 424 | ' | ' | ' | |
Off-balance sheet instruments | 0 | ' | 0 | ' | ' | ' | |
Fair Value [Member] | ' | ' | ' | ' | ' | ' | |
Financial Assets | ' | ' | ' | ' | ' | ' | |
Cash and due from banks | 17,502 | ' | 16,933 | ' | ' | ' | |
Interest bearing deposits with banks | 52,874 | ' | 133,755 | ' | ' | ' | |
Restricted investments in bank stock | 8,037 | ' | 9,804 | ' | ' | ' | |
Securities available for sale | 384,522 | ' | 301,970 | ' | ' | ' | |
Loans held for sale | 1,648 | ' | 7,862 | ' | ' | ' | |
Loans, net of allowance for loan losses | 669,446 | ' | 681,414 | ' | ' | ' | |
Accrued interest receivable | 3,380 | ' | 3,188 | ' | ' | ' | |
Mortgage servicing rights | 3,162 | ' | 2,296 | ' | ' | ' | |
Financial Liabilities | ' | ' | ' | ' | ' | ' | |
Deposits | 1,037,181 | ' | 1,089,344 | ' | ' | ' | |
Short-term borrowings | 25,320 | ' | 9,650 | ' | ' | ' | |
Long-term debt | 17,096 | ' | 38,676 | ' | ' | ' | |
Accrued interest payable | 331 | ' | 424 | ' | ' | ' | |
Off-balance sheet instruments | $0 | ' | $0 | ' | ' | ' | |
[1] | The consolidated balance sheet at December 31, 2012 has been derived from audited financial statements at that date. |
Contingencies_Additional_Infor
Contingencies - Additional Information (Detail) | 3 Months Ended |
Sep. 30, 2013 | |
Claim | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Legal proceedings | 0 |
Contingencies dismissed date | 23-Aug-13 |