Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 30, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY FINANCIAL CORP /MD/ | |
Entity Central Index Key | 855,874 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | tcfc | |
Entity Common Stock Shares Outstanding | 4,715,696 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 29,982 | $ 17,275 |
Federal funds sold | 4,385 | 965 |
Interest-bearing deposits with banks | 7,565 | 3,133 |
Securities available for sale (AFS), at fair value | 38,378 | 41,939 |
Securities held to maturity (HTM), at amortized cost | 85,985 | 84,506 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock - at cost | 6,550 | 6,434 |
Loans receivable - net of allowance for loan losses of $8,757 and $8,481 | 885,914 | 862,409 |
Premises and equipment, net | 21,418 | 20,586 |
Other real estate owned (OREO) | 6,422 | 5,883 |
Accrued interest receivable | 3,182 | 3,036 |
Investment in bank owned life insurance | 27,432 | 27,021 |
Other assets | 9,523 | 9,691 |
Total assets | 1,126,736 | 1,082,878 |
Liabilities and Stockholders' Equity | ||
Non-interest-bearing deposits | 132,367 | 122,195 |
Interest-bearing deposits | 768,018 | 747,189 |
Total deposits | 900,385 | 869,384 |
Short-term borrowings | 12,000 | 2,000 |
Long-term debt | 70,645 | 74,672 |
Guaranteed preferred beneficial interest in junior subordinated debentures (TRUPs) | 12,000 | 12,000 |
Subordinated notes - 6.25% | 23,000 | |
Accrued expenses and other liabilities | 9,622 | 8,263 |
Total liabilities | 1,027,652 | 966,319 |
Stockholders' Equity | ||
Preferred stock, senior non-cumulative perpetual, series C - par value $1,000; authorized and issued 20,000 at December 31, 2014 and none at June 30, 2015 | 20,000 | |
Common stock - par value $.01; authorized - 15,000,000 shares; issued 4,715,212 and 4,702,715 shares, respectively | 47 | 47 |
Additional paid in capital | 46,702 | 46,416 |
Retained earnings | 53,125 | 50,936 |
Accumulated other comprehensive loss | (300) | (378) |
Unearned ESOP shares | (490) | (462) |
Total stockholders' equity | 99,084 | 116,559 |
Total liabilities and stockholders' equity | $ 1,126,736 | $ 1,082,878 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Loans receivable, allowance for loan losses (in dollars) | $ 8,757 | $ 8,481 |
Preferred stock, par value (in dollars per share) | $ 1,000 | $ 1,000 |
Preferred stock, authorized | 0 | 20,000 |
Preferred stock, issued | 0 | 20,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 15,000,000 | 15,000,000 |
Common stock, issued | 4,715,212 | 4,702,715 |
Subordinated Debt [Member] | ||
Interest rate | 6.25% | 6.25% |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and Dividend Income | ||||
Loans, including fees | $ 10,373,000 | $ 9,685,000 | $ 20,550,000 | $ 19,268,000 |
Taxable interest and dividends on investment securities | 560,000 | 565,000 | 1,107,000 | 1,155,000 |
Interest on deposits with banks | 2,000 | 4,000 | 6,000 | 6,000 |
Total interest and dividend income | 10,935,000 | 10,254,000 | 21,663,000 | 20,429,000 |
Interest Expense | ||||
Deposits | 1,042,000 | 1,159,000 | 2,030,000 | 2,367,000 |
Short-term borrowings | 12,000 | 1,000 | 21,000 | 7,000 |
Long-term debt | 848,000 | 524,000 | 1,516,000 | 1,051,000 |
Total interest expense | 1,902,000 | 1,684,000 | 3,567,000 | 3,425,000 |
Net interest income | 9,033,000 | 8,570,000 | 18,096,000 | 17,004,000 |
Provision for loan losses | 392,000 | 563,000 | 570,000 | 766,000 |
Net interest income after provision for loan losses | 8,641,000 | 8,007,000 | 17,526,000 | 16,238,000 |
Noninterest Income | ||||
Loan appraisal, credit, and miscellaneous charges | 90,000 | 92,000 | 148,000 | 192,000 |
Gain on sale of asset | 1,000 | 7,000 | 19,000 | 7,000 |
Net (losses) gains on sale of OREO | (18,000) | 4,000 | (18,000) | 4,000 |
Net (losses) gains on sale of investment securities | (1,000) | 24,000 | ||
Income from bank owned life insurance | 205,000 | 152,000 | 410,000 | 303,000 |
Service charges | 677,000 | 524,000 | 1,262,000 | 1,076,000 |
Gain on sale of loans held for sale | 7,000 | 76,000 | 104,000 | 144,000 |
Total noninterest income | 962,000 | 855,000 | 1,924,000 | 1,750,000 |
Noninterest Expense | ||||
Salary and employee benefits | 3,888,000 | 3,992,000 | 8,033,000 | 8,021,000 |
Occupancy expense | 605,000 | 654,000 | 1,235,000 | 1,219,000 |
Advertising | 183,000 | 201,000 | 286,000 | 323,000 |
Data processing expense | 507,000 | 381,000 | 1,025,000 | 652,000 |
Professional fees | 272,000 | 288,000 | 567,000 | 518,000 |
Depreciation of furniture, fixtures, and equipment | 204,000 | 182,000 | 405,000 | 367,000 |
Telephone communications | 39,000 | 41,000 | 85,000 | 91,000 |
Office supplies | 31,000 | 74,000 | 70,000 | 154,000 |
FDIC insurance | 190,000 | 199,000 | 388,000 | 338,000 |
OREO valuation allowance and expenses | 334,000 | 165,000 | 553,000 | 294,000 |
Other | 635,000 | 590,000 | 1,184,000 | 1,121,000 |
Total noninterest expense | 6,888,000 | 6,767,000 | 13,831,000 | 13,098,000 |
Income before income taxes | 2,715,000 | 2,095,000 | 5,619,000 | 4,890,000 |
Income tax expense | 1,004,000 | 760,000 | 2,087,000 | 1,834,000 |
Net income | 1,711,000 | 1,335,000 | 3,532,000 | 3,056,000 |
Preferred stock dividends | 50,000 | 23,000 | 100,000 | |
Net income available to common shareholders | $ 1,711,000 | $ 1,285,000 | $ 3,509,000 | $ 2,956,000 |
Earnings Per Common Share | ||||
Basic (in dollars per share) | $ 0.37 | $ 0.28 | $ 0.75 | $ 0.64 |
Diluted (in dollars per share) | 0.37 | 0.28 | 0.75 | 0.63 |
Cash dividends paid per common share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,711 | $ 1,335 | $ 3,532 | $ 3,056 |
Net unrealized holding gains (losses) arising during period, net of tax (benefit) expense of $(130) and $126; $51 and $87, respectively | $ (200) | $ 244 | $ 78 | 167 |
Reclasssification adjustment for gains included in net income, net of tax expense (benefit) of $0 and $0; $0 and $(3), respectively | (5) | |||
Comprehensive income | $ 1,511 | $ 1,579 | $ 3,610 | $ 3,218 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net unrealized holding gains (losses) arising during period, tax effect | $ (130) | $ 126 | $ 51 | $ 87 |
Reclassification adjustments, tax effect | $ 0 | $ 0 | $ (3) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||||
Net income | $ 1,711 | $ 1,335 | $ 3,532 | $ 3,056 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||||
Provision for loan losses | 570 | 766 | |||
Depreciation and amortization | 699 | 632 | |||
Loans originated for resale | (4,192) | (5,309) | |||
Proceeds from sale of loans originated for sale | 4,296 | 4,456 | |||
Gain on sale of loans held for sale | (104) | (144) | |||
Net loss (gains) on the sale of OREO | 18 | (4) | |||
Losses (gains) on sales of HTM investment securities | 1 | (16) | |||
Gains on sales of AFS investment securities | (8) | ||||
Gain on sale of asset | (1) | (7) | (19) | (7) | |
Net amortization of premium/discount on investment securities | 48 | 151 | |||
Increase in OREO valuation allowance | 374 | 234 | |||
Increase in cash surrender of bank owned life insurance | (411) | (303) | |||
(Increase) decrease in deferred income tax benefit | (395) | 600 | |||
(Increase) decrease in accrued interest receivable | (146) | 43 | |||
Stock based compensation | 122 | 146 | |||
Increase in deferred loan fees | 72 | 78 | |||
Increase (decrease) in accrued expenses and other liabilities | 1,359 | (85) | |||
Decrease in other assets | 636 | 452 | |||
Net cash provided by operating activities | 6,460 | 4,738 | |||
Cash Flows from Investing Activities | |||||
Purchase of AFS investment securities | (45) | (43) | |||
Proceeds from redemption or principal payments of AFS investment securities | 3,649 | 4,512 | |||
Purchase of HTM investment securities | (9,842) | (750) | |||
Proceeds from maturities or principal payments of HTM investment securities | 8,332 | 6,360 | |||
Net increase of FHLB and FRB stock | (116) | (1,068) | |||
Loans originated or acquired | (143,256) | (137,242) | |||
Principal collected on loans | 117,578 | 97,335 | |||
Purchase of premises and equipment | (1,546) | (847) | |||
Proceeds from sale of OREO | 623 | 1,106 | |||
Proceeds from sale of HTM investment securities | 66 | 3,179 | |||
Proceeds from sale of AFS investment securities | 2,056 | ||||
Proceeds from disposal of asset | 34 | 20 | |||
Net cash used in investing activities | (24,523) | (25,382) | |||
Cash Flows from Financing Activities | |||||
Net increase (decrease) in deposits | 31,001 | (2,751) | |||
Proceeds from long-term debt | 5,000 | ||||
Payments of long-term debt | (4,027) | (777) | |||
Net increase in short term borrowings | 10,000 | 7,000 | |||
Exercise of stock options | 106 | ||||
Proceeds from Subordinated Notes | 23,000 | ||||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | ||||
Dividends paid | (995) | (1,035) | |||
Net change in unearned ESOP shares | (28) | ||||
Repurchase of common stock | (329) | ||||
Net cash provided by financing activities | 38,622 | 7,543 | |||
Increase (Decrease) in Cash and Cash Equivalents | 20,559 | (13,101) | |||
Cash and cash equivalents - January 1 | 21,373 | 24,519 | $ 24,519 | ||
Cash and cash equivalents - June 30 | $ 41,932 | $ 11,418 | 41,932 | 11,418 | $ 21,373 |
Supplemental Disclosures of Cash Flow Information | |||||
Interest | 2,994 | 3,423 | |||
Income taxes | 1,088 | 2,145 | |||
Supplemental Schedule of Non-Cash Operating Activities | |||||
Issuance of common stock for payment of compensation | 216 | 182 | |||
Transfer from loans to OREO | $ 1,556 | $ 1,082 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation and Nature of Business [Abstract] | |
Basis of Presentation | NOTE 1 – BASIS OF PRESENTATION The consolidated financial statements of The Community Financial Corporation (the “Company”) and its wholly owned subsidiary, Community Bank of the Chesapeake (the “Bank”), and the Bank’s wholly owned subsidiary, Community Mortgage Corporation of Tri-County, included herein are unaudited. The consolidated financial statements reflect all adjustments consisting only of normal recurring accruals that, in the opinion of management, are necessary to present fairly the Company’s financial condition, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The Company believes that the disclosures are adequate to make the information presented not misleading. The balances as of December 31, 2014 have been derived from audited financial statements. There have been no significant changes to the Company’s accounting policies as disclosed in the 2014 Annual Report. The results of operations for the three and six months ended June 30 , 2015 are not necessarily indicative of the results of operations to be expected for the remainder of the year or any other period. Certain previously reported amounts have been restated to conform to the 2015 presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s 2014 Annual Report. |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2015 | |
Basis of Presentation and Nature of Business [Abstract] | |
Nature of Business | NOTE 2 – NATURE OF BUSINESS The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and King George and Fredericksburg, Virginia. Its primary deposit products are demand, savings and time deposits, and its primary lending products are commercial and residential mortgage loans, commercial loans, construction and land development loans, home equity and second mortgages and commercial equipment loans. The Bank conducts business through its main office in Waldorf, Maryland, and eleven branch offices in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, California, Maryland; and King George and Fredericksburg, Virginia. The Company maintains five loan production offices (“LPOs”) in Annapolis, La Plata, Prince Frederick and Leonardtown, Maryland; and Fredericksburg, Virginia. The Leonardtown and Fredericksburg LPOs are co-located with branches. The Company opened its branch in Fredericksburg, Virginia in July 2014 and its LPO in Annapolis, Maryland in October 2014. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 3 – INCOME TAXES The Company files a consolidated federal income tax return with its subsidiaries. Deferred tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws and when it is considered more likely than not that deferred tax assets will be realized. It is the Company’s policy to recognize accrued interest and penalties related to unrecognized tax benefits as a component of tax expense. The Company’s income tax returns for the past three years are subject to examinations by tax authorities, and may change upon examination. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Gain (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Gain (Loss) [Abstract] | |
Accumulated Other Comprehensive Gain (Loss) | NOTE 4 - ACCUMULATED OTHER COMPREHENSIVE GAIN (LOSS) The following tables present the components of comprehensive gain (loss) for the three and six months ended June 30, 2015 and 2014. The Company’s comprehensive gain (loss) was solely related to securities for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ (330) $ (130) $ (200) $ 370 $ 126 $ 244 Reclassification adjustments - - - - - - Other comprehensive gain (loss) $ (330) $ (130) $ (200) $ 370 $ 126 $ 244 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 129 $ 51 $ 78 $ 254 $ 87 $ 167 Reclassification adjustments - - - Other comprehensive gain $ 129 $ 51 $ 78 $ 246 $ 84 $ 162 The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and six months ended June 30 , 2015 and 2014. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (100) $ (1,139) $ (378) $ (1,057) Other comprehensive gain (loss) before reclassifications Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive gain (loss) End of period $ (300) $ (895) $ (300) $ (895) |
Earnings Per Share ("EPS")
Earnings Per Share ("EPS") | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share ("EPS") [Abstract] | |
Earnings Per Share ("EPS") | NOTE 5 - EARNINGS PER SHARE (“EPS”) Basic earnings per common share represent income available to common shareholders, divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect 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 to outstanding stock options and are determined using the treasury stock method. At both June 30 , 2015 and 2014 , there were 87,436 options , which were excluded from the calculation as their effect would be anti-dilutive, because the exercise price of the options were greater than the average market price of the common shares. T he Company has not granted any stock options since 2007 and all options outstanding at June 30 , 2015 were anti-dilutive. Unvested restricted stock is excluded from the calculation of basic earnings per share. At June 30, 2015 there were 37,078 unvested shares of restricted stock. B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2015 2014 2015 2014 Net Income $ 1,711 $ 1,335 $ 3,532 $ 3,056 Less: dividends paid and accrued on preferred stock - Net income available to common shareholders $ 1,711 $ 1,285 $ 3,509 $ 2,956 Average number of common shares outstanding Dilutive effect of common stock equivalents Average number of shares used to calculate diluted EPS |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 6 - STOCK-BASED COMPENSATION The Company has stock-based incentive arrangements to attract and retain key personnel. In May 4, 20 15 , the 20 15 Equity Compensation Plan (the “Plan”) was approved by shareholders, which authorizes the issuance of restricted stock, stock appreciation rights, stock units and stock options to the Board of Directors and key employees. Compensation expense for service-based awards is recognized over the vesting period. Performance-based awards are recognized based on a vesting schedule, if applicable, and the probability of achieving goals specified at the time of the grant . Stock-based compensation expense totaled $68,000 and $122,000 for the three and six months ended June 30, 2015 and $10,000 and $146,000 for the three and six months ended June 30 , 2014 . Stock-based compensation expense consisted of the vesting of grants of restricted stock. In addition, in 2014 stock-based compensation expense included the vesting of restricted stock units. All outstanding options were fully vested and the Company has not granted any stock options since 2007. The fair value of the Company’s outstanding employee stock options is estimated on the date of grant using the Black-Scholes option pricing model. The Company estimates expected market price volatility and expected term of the options based on historical data and other factors. The exercise price for options granted is set at the discretion of the committee administering the Plan, but is not less than the market value of the shares as of the date of grant. An option’s maximum term is 10 years and the options vest at the discretion of the committee. The following tables below summarize outstanding and exercisable options at June 30, 2015 and December 31, 2014. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2015 $ 23.60 $ - Exercised - - - Forfeited - - Outstanding at June 30, 2015 $ 23.60 $ - - Exercisable at June 30, 2015 $ 23.60 $ - - Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2014 $ 20.12 $ 347 Exercised Forfeited Outstanding at December 31, 2014 $ 23.60 $ - - Exercisable at December 31, 2014 $ 23.60 $ - - Options outstanding are all currently exercisable and are summarized as follows: Shares Outstanding Weighted Average Weighted Average June 30, 2015 Remaining Contractual Life Exercise Price 66,225 1 years $ 22.29 21,211 2 years 27.70 87,436 $ 23.60 The aggregate intrinsic value of outstanding stock options and exercisable stock options was $0 at June 30 , 2015 and D ecember 31, 2014. All options outstanding at June 30, 2015 and December 31, 2014 were anti-dilutive and therefore the intrinsic value was $0 . Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $21.50 and $20.07 per share at June 30, 2015 and December 31, 2014, respectively, and the exercise price multiplied by the number of in the money options outstanding. The Company granted restricted stock and stock units in accordance with the Plan. The vesting period for granted restricted stock is between three and five years. As of June 30, 2015, unrecognized stock compensation expense was $804,000 . The following tables summarize the unvested restricted stock awards and units outstanding at June 30, 2015 and December 31, 2014, respectively. There were no outstanding stock units at June 30, 2015 and December 31, 2014, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 $ 20.83 Granted Vested Nonvested at June 30, 2015 $ 19.83 Restricted Stock Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Units Fair Value Nonvested at January 1, 2014 $ 17.86 $ 20.71 Granted - - Vested Nonvested at December 31, 2014 $ 20.83 - $ - |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 6 Months Ended |
Jun. 30, 2015 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | NOTE 7 - GUARANTEED PREFERRED BENEFICIAL INTEREST IN JUNIOR SUBORDINATED DEBENTURES (“TRUPs”) On June 15, 2005, Tri-County Capital Trust II (“Capital Trust II”), a Delaware business trust formed, funded and wholly owned by the Company, issued $5.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 1.70% . The Trust used the proceeds from this issuance, along with the $155,000 for Capital Trust II’s common securities, to purchase $5.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These capital securities qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust II and the junior subordinated debentures are scheduled to mature on June 15, 2035 , unless called by the Company. On July 22, 2004, Tri-County Capital Trust I (“Capital Trust I”), a Delaware business trust formed, funded and wholly owned by the Company, issued $7.0 million of variable-rate capital securities in a private pooled transaction. The variable rate is based on the 90-day LIBOR rate plus 2.60% . The Trust used the proceeds from this issuance, along with the Company’s $217,000 capital contribution for Capital Trust I’s common securities, to purchase $7.2 million of the Company’s junior subordinated debentures. The interest rate on the debentures and the trust preferred securities is variable and adjusts quarterly. These debentures qualify as Tier I capital and are presented in the Consolidated Balance Sheets as “Guaranteed Preferred Beneficial Interests in Junior Subordinated Debentures.” Both the capital securities of Capital Trust I and the junior subordinated debentures are scheduled to mature on July 22, 2034 , unless called by the Company. |
Subordinated Notes
Subordinated Notes | 6 Months Ended |
Jun. 30, 2015 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | NOTE 8 – SUBORDINATED NOTES On February 6, 2015 the Company issued $23.0 million of unsecured 6.25% fixed to floating rate subordinated notes due February 15, 2025 (“subordinated notes”). On February 13, 2015 , the Company used proceeds of the offering to redeem all $20 million of the Company’s outstanding preferred stock issued under the Small Business Lending Fund (“SBLF”) program. The subordinated notes qualify as Tier 2 regulatory capital and replaced SBLF Tier 1 capital. The subordinated notes are not listed on any securities exchange or included in any automated dealer quotation system and there is no market for the notes. The notes are unsecured obligations and are subordinated in right of payment to all existing and future senior debt, whether secured or unsecured. The notes are not guaranteed obligations of any of the Company’s subsidiaries. Interest will accrue at a fixed per annum rate of 6.25% from and including the issue date to but excluding February 15, 2020. From and including February 15, 2020 to but excluding the maturity date interest will accrue at a floating rate equal to the three-month LIBOR plus 479 basis points. Interest is payable on the notes on February 15 and August 15 of each year, commencing August 15, 2015, through February 15, 2020, and thereafter February 15, May 15, August 15 and November 15 of each year through the maturity date or earlier redemption date. The subordinated notes may be redeemed in whole or in part on February 15, 2020 or on any scheduled interest payment date thereafter and upon the occurrence of certain special events. The redemption price is equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to the date of redemption. Any partial redemption will be made pro rata among all holders of the subordinated notes. The subordinated notes are not subject to repayment at the option of the holders. The subordinated notes may be redeemed at any time, if (1) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the notes for U.S. federal income tax purposes, (2) a subsequent event occurs that precludes the notes from being recognized as Tier 2 Capital for regulatory capital purposes, or (3) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended. |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 6 Months Ended |
Jun. 30, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Other Real Estate Owned ("OREO") | NOTE 9 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of valuation allowances. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of OREO activity follows. Six Months Ended June 30, Year Ended December 31, (dollars in thousands) 2015 2014 2014 Balance at beginning of year $ 5,883 $ 6,797 $ 6,797 Additions of underlying property Disposals of underlying property Transfers of OREO to loans - - Valuation allowance Balance at end of period $ 6,422 $ 6,553 $ 5,883 During the six months ended June 3 0 , 2015, additions of $1.6 million consisted of $784,000 for five residential properties, $378,000 for three residential lots and $400,000 for a commercial building. During the six months ended June 30, 2014, additions of $ 1.1 million consisted of two residential propert ies totaling $442,000 and a commercial building of $640,000 . The Company disposed of two residential propert ies and two finished residential lots at a loss of $18,000 for the six months ended June 30, 2015 compared to disposals of three residential propert ies at a gain of $4,000 for the six months ended June 30, 2014. Additions to the v aluation allowances of $ 374,000 and $ 234 ,000 were taken to adjust properties to current appraised values for the six months ended June 30, 2015 and 2014, respectively. OREO carrying amounts reflect management’s estimate of the realizable value of these properties incorporating current appraised values, local real estate market conditions and related costs. Expenses applicable to OREO assets include the following. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2015 2014 2015 2014 Valuation allowance $ 249 $ 152 $ 374 $ 234 Operating expenses $ 334 $ 165 $ 553 $ 294 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Securities [Abstract] | |
Securities | NOTE 10 – SECURITIES June 30, 2015 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential Mortgage Backed Securities ("MBS") $ 25 $ 5 $ - $ 30 Residential Collateralized Mortgage Obligations ("CMOs") Corporate equity securities - Bond mutual funds - Total securities available for sale $ 38,873 $ 178 $ 673 $ 38,378 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 17,877 $ 601 $ 58 $ 18,420 Residential CMOs Asset-backed securities issued by Others: Residential CMOs - Total debt securities held to maturity U.S. government obligations - - Total securities held to maturity $ 85,985 $ 993 $ 763 $ 86,215 December 31, 2014 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential MBS $ 33 $ 4 $ - $ 37 Residential CMOs Corporate equity securities - Bond mutual funds - Total securities available for sale $ 42,563 $ 206 $ 830 $ 41,939 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 19,501 $ 767 $ 45 $ 20,223 Residential CMOs Asset-backed securities issued by Others: Residential CMOs - Total debt securities held to maturity U.S. government obligations - - Total securities held to maturity $ 84,506 $ 1,146 $ 737 $ 84,915 At June 30, 2015, certain asset-backed securities with an amortized cost of $ 21.6 million were pledged to secure certain deposits. At June 30, 2015, asset-backed securities with an amortized cost of $2.1 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At June 30 , 2015 , 99% of the asset-backed securities portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by government sponsored entities (“GSEs”) had an average life of 4.55 years and an average duration of 4.19 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs had an average life of 4.65 years and an average duration of 4.32 years and are guaranteed by their issuer as to credit risk. At December 31, 2014, 99% of the asset-backed securities portfolio was rated AAA by Standard & Poor’s or the equivalent credit rating from another major rating agency. AFS asset-backed securities issued by GSEs had an average life of 3.66 years and average duration of 3.41 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs had an average life of 3.40 years and average duration of 3.21 years and are guaranteed by their issuer as to credit risk. We believe that AFS securities with unrealized losses will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities until recovery of the market value which may be at maturity. We believe that the losses are the result of general perceptions of safety and creditworthiness of the entire sector and a general disruption of orderly markets in the asset class. Management has the ability and intent to hold the HTM securities with unrealized losses until they mature, at which time the Company will receive full value for the securities. Because our intention is not to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, management considers the unrealized losses in the held-to-maturity portfolio to be temporary. N o charges related to other-than-temporary impairment were made during the six months ended June 30, 2015 and 2014. During the six months ended June 30 , 2015, the Company sold one HTM security with a carrying value of $68,000 and recognized a loss of $1,000 . During the six months ended June 30 , 2014, the Company recognized net gains on the sale of securities of $24,000 . The Company sold five AFS securities with a carrying value of $2.1 million and ten HTM securities with aggregate carrying values of $3.2 million, recognizing gains of $8,000 and $16,000 , respectively. The sale of HTM securities were permitted under ASC 320 “Investments - Debt and Equity Securities.” ASC 320 permits the sale of HTM securities for certain changes in circumstances. Securities were disposed of using the safe harbor rule that allows for the sale of HTM securities that have principal payments paid down to less than 15% of original purchased par. ASC 320 10-25-15 indicates that a sale of a debt security after a substantial portion of the principal has been collected is equivalent to holding the security to maturity. In addition, HTM securities were disposed of under ASC 320-10-25-6 due to a significant deterioration in the issues’ creditworthiness and the increase in regulatory risk weights mandated for risk-based capital purposes. AFS Securities Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at June 30 , 2015 were as follows: June 30, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 2,261 $ 14 $ 22,193 $ 659 $ 24,454 $ 673 At June 30, 2015, the AFS investment portfolio had an estimated fair value of $38.4 m illion, of which $24.5 million of the securities had some unrealized losses from their amortized cost. The securities with unrealized losses were CMOs issued by GSEs. AFS securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $673,000 o f the portfolio amortized cost of $34.6 million. AFS asset-backed securities issued by GSEs with unrealized losses had an average life of 4.56 years and an average duration of 4.14 years. We believe that the securities will either recover in market value or be paid off as agreed. Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2014 were as follows: December 31, 2014 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 294 $ - $ 26,856 $ 830 $ 27,150 $ 830 At December 31, 2014, the AFS investment portfolio had an estimated fair value of $41.9 million, of which $27.2 million of the securities had some unrealized losses from their amortized cost. The securities with unrealized losses were CMOs issued by GSEs. AFS securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $830,000 of the portfolio amortized cost of $38.3 million. AFS asset-backed securities issued by GSEs with unrealized losses had an average life of 3.77 years and an average duration of 3.46 years. We believe that the securities will either recover in market value or be paid off as agreed. HTM Securities Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at June 30 , 2015 were as follows: June 30, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs Asset-backed securities issued by other - - $ 8,207 $ 89 $ 20,035 $ 674 $ 28,242 $ 763 At June 30 , 2015, the HTM investment portfolio had an estimated fair value of $86.2 million, of which $28.2 millio n of the securities had some unrealized losses from their amortized cost. Of these securities, $27.0 million were asset-backed securities issued by GSEs and the remaining $1.2 million were asset-backed securities issued by others. HTM securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $649,000 of the portfolio amortized cost of $84.0 million. HTM asset-backed securities issued by GSEs with unrealized losses had an average life of 4.30 years and an average duration of 3.95 years. We believe that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. HTM asset-backed securities issued by others are collateralized mortgage obligation securities. All of the securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $114,000 of the portfolio amortized cost of $1.3 million. HTM asset-backed securities issued by others with unrealized losses have an average life of 4.74 years and an average duration of 3.90 years. Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2014 were as follows: December 31, 2014 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 14,508 $ 85 $ 21,091 $ 540 $ 35,599 $ 625 Asset-backed securities issued by other - - $ 14,508 $ 85 $ 22,382 $ 652 $ 36,890 $ 737 At December 31, 2014, the HTM investment portfolio had an estimated fair value of $84.9 million, of which $36.9 million of the securities had some unrealized losses from their amortized cost. Of these securities, $35.6 million were asset-backed securities issued by GSEs and the remaining $1.3 million were asset-backed securities issued by others. HTM securities issued by GSEs are guaranteed by the issuer. Total unrealized losses on the asset-backed securities issued by GSEs were $625,000 of the portfolio amortized cost of $82.2 million. HTM asset-backed securities issued by GSEs with unrealized losses had an average life of 3.23 years and an average duration of 3.01 years. We believe that the securities will either recover in market value or be paid off as agreed. The Company intends to, and has the ability to, hold these securities to maturity. HTM asset-backed securities issued by others are collateralized mortgage obligation securities. All of the securities have credit support tranches that absorb losses prior to the tranches that the Company owns. The Company reviews credit support positions on its securities regularly. Total unrealized losses on the asset-backed securities issued by others were $112,000 of the portfolio amortized cost of $1.5 million. HTM asset-backed securities issued by others with unrealized losses have an average life of 4.27 years and an average duration of 3.62 years. Credit Quality of Asset-Backed Securities The tables below present the Standard & Poor’s or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities issued by GSEs and others at June 30 , 2015 and December 31, 2014 by carrying value. The Company considers noninvestment grade securities rated BB+ or lower as classified assets for regulatory and financial reporting. GSE asset-backed security downgrades by Standard and Poor’s were treated as AAA based on regulatory guidance. June 30, 2015 December 31, 2014 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 117,953 AAA $ 119,762 BBB - BBB BB BB CCC+ CCC+ Total $ 119,224 Total $ 121,234 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2015 | |
Loans [Abstract] | |
Loans | NOTE 11 – LOANS Loans consist of the following: (dollars in thousands) June 30, 2015 December 31, 2014 Commercial real estate $ 601,270 $ 561,080 Residential first mortgages Construction and land development Home equity and second mortgages Commercial loans Consumer loans Commercial equipment Less: Deferred loan fees Allowance for loan losses $ 885,914 $ 862,409 At June 30 , 2015, the Bank’s allowance for loan losses totaled $8. 8 million, or 0.98% of loan balances, as compared to $8.5 million, or 0.97% of loan balances, at December 31, 2014. Management’s determination of the adequacy of the allowance is based on a periodic evaluation of the portfolio with consideration given to the overall loss experience, current economic conditions, size, growth and composition of the loan portfolio, financial condition of the borrowers and other relevant factors that, in management’s judgment, warrant recognition in providing an adequate allowance. Risk Characteristics of Portfolio Segments The Company manages its credit products and exposure to credit losses (credit risk) by the following specific portfolio segments (classes), which are levels at which the Company develops and documents its allowance for loan loss methodology. These segments are: Commercial Real Estate (“CRE”) Commercial and other real estate projects include office buildings, retail locations, churches, other special purpose buildings and commercial construction. Commercial construction balances were 5.2% and 4.4% of th e CRE portfolio at June 30, 2015 and December 31, 2014 , respectively . The Bank offers both fixed-rate and adjustable-rate loans under these product lines. The primary security on a commercial real estate loan is the real property and the leases that produce income for the real property. Loans secured by commercial real estate are generally limited to 80% of the lower of the appraised value or sales price at origination and have an initial contractual loan payment period ranging from three to 20 years. Loans secured by commercial real estate are larger and involve greater risks than one-to four-family residential mortgage loans. Because payments on loans secured by such properties are often dependent on the successful operation or management of the properties, repayment of such loans may be subject to a greater extent to adverse conditions in the real estate market or the economy. Residential First Mortgages Residential first mortgage loans are generally long-term loans, amortized on a monthly basis, with principal and interest due each month. The contractual loan payment period for residential loans typically ranges from ten to 30 years. The Bank’s experience indicates that real estate loans remain outstanding for significantly shorter time periods than their contractual terms. Borrowers may refinance or prepay loans at their option, without penalty. The Bank ’s residential portfolio has both fixed-rate and adjustable-rate residential first mortgages. The annual and lifetime limitations on interest rate adjustments may limit the increases in interest rates on these loans. There are also credit risks resulting from potential increased costs to the borrower as a result of repricing of adjustable-rate mortgage loans. During periods of rising interest rates, the risk of default on adjustable-rate mortgage loans may increase due to the upward adjustment of interest cost to the borrower. The Bank’s adjustable rate residential first mortgage portfolio was $23.4 million or 2.6% of total gross loans of $89 5.8 million at June 30 , 2015. Construction and Land Development The Bank offers loans for the construction of one-to-four family dwellings. Generally, these loans are secured by the real estate under construction as well as by guarantees of the principals involved. In addition, the Bank offers loans to acquire and develop land, as well as loans on undeveloped, subdivided lots for home building by individuals. A decline in demand for new housing might adversely affect the ability of borrowers to repay these loans. Construction and land development loans are inherently riskier than providing financing on owner-occupied real estate. The Bank’s risk of loss is affected by the accuracy of the initial estimate of the market value of the completed project as well as the accuracy of the cost estimates made to complete the project. In addition, the volatility of the real estate market has made it increasingly difficult to ensure that the valuation of land associated with these loans is accurate. During the construction phase, a number of factors could result in delays and cost overruns. If the estimate of construction costs proves to be inaccurate, the Bank may be required to advance funds beyond the amount originally committed to permit completion of the development. If the estimate of value proves to be inaccurate, a project’s value might be insufficient to assure full repayment. As a result of these factors, construction lending often involves the disbursement of substantial funds with repayment dependent, in part, on the success of the project rather than the ability of the borrower or guarantor to repay principal and interest. If the Bank forecloses on a project, there can be no assurance that the Bank will be able to recover all of the unpaid balance of, and accrued interest on, the loan as well as related foreclosure and holding costs. Home Equity and Second Mortgage Loans The Bank maintains a portfolio of home equity and second mortgage loans. These products contain a higher risk of default than residential first mortgages as in the event of foreclosure, the first mortgage would need to be paid off prior to collection of the second mortgage. This risk has been heightened as the market value of residential property has declined. Commercial Loans The Bank offers commercial loans to its business customers. The Bank offers a variety of commercial loan products including term loans and lines of credit. Such loans are generally made for terms of five years or less. The Bank offers both fixed-rate and adjustable-rate loans under these product lines. When making commercial business loans, the Bank considers the financial condition of the borrower, the borrower’s payment history of both corporate and personal debt, the projected cash flows of the business, the viability of the industry in which the consumer operates, the value of the collateral, and the borrower’s ability to service the debt from income. These loans are primarily secured by equipment, real property, accounts receivable, or other security as determined by the Bank. Commercial loans are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. Consumer Loans Consumer loans consist of loans secured by automobiles, boats, recreational vehicles and trucks. The Bank also makes home improvement loans and offers both secured and unsecured personal lines of credit. Consumer loans entail greater risk from other loan types due to being secured by rapidly depreciating assets or the reliance on the borrower’s continuing financial stability. Commercial Equipment Loans These loans consist primarily of fixed-rate, short-term loans collateralized by a commercial customer’s equipment. When making commercial equipment loans, the Bank considers the same factors it considers when underwriting a commercial business loan. Commercial loans are of higher risk and typically are made on the basis of the borrower’s ability to make repayment from the cash flows of the borrower’s business. As a result, the availability of funds for the repayment of commercial loans may depend substantially on the success of the business itself. In the case of business failure, collateral would need to be liquidated to provide repayment for the loan. In many cases, the highly specialized nature of collateral equipment would make full recovery from the sale of collateral problematic. Non-accrual and Past Due Loans Non-accrual loans as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Total Non-accrual Loans Total Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 6,119 $ 3,824 Residential first mortgages Construction and land development Home equity and second mortgages Commercial loans Commercial equipment $ 13,056 $ 10,263 Non-accrual loans (90 days or greater delinquent and non-accrual only loans) increased $2.8 million from $10.3 million or 1.18% of total loans at December 31, 2014 to $13.1 million or 1.46% of total loans at June 30, 2015. Non-accrual only loans are loans classified as non-accrual due to customer operating results or payment history. In accordance with the Company’s policy, interest income is recognized on a cash basis for these loans. There were no non-accrual only loans at June 30, 2015 or at December 31, 2014. The Bank had 37 non-accrual loans at June 30, 2015 compared to 31 non-accrual loans at December 31, 2014. Non-accrual loans at June 30, 2015 included $10.4 million, or 80% of non-accrual loans, attributed to 18 loans representing five customer relationships classified as substandard. Non-accrual loans at December 31, 2014 included $8.8 million, or 86% of nonperforming loans, attributed to 16 loans representing six customer relationships classified as substandard. Of these loans at June 30, 2015 and December 31, 2014, four loans totaling $3.8 and $3.9 million, respectively, represented a stalled residential development project. During the second quarter of 2014, the Bank deferred the collection of principal and interest to enable the project to use available funds to build units and complete the project. The stalled development project loans are considered both troubled debt restructures (“TDRs”) and non-accrual loans. Additionally at June 30, 2015 and December 31, 2014, the Bank had one TDR commercial real estate loan of $1.0 million that is greater than 90 days delinquent. These loans are classified solely as non-accrual loans for the calculation of financial ratios. Non-accrual loans on which the recognition of interest has been discontinued, which did not have a specific allowance for impairment, amounted to $12.3 m illion and $9.3 million at June 30 , 2015 and December 31, 2014, respectively. Interest due but not recognized on these balances at June 3 0 , 2015 and December 31, 2014 was $898,000 and $781,000 , respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $802,000 and $1.0 million at June 30 , 2015 and December 31, 2014, respectively. Interest due but not recognized on these balances at June 30 , 2015 and December 31, 2014 was $72,000 and $64,000 , respectively. An analysis of past due loans as of June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 593,802 $ - $ 1,349 $ 6,119 $ 7,468 $ 601,270 Residential first mortgages Construction and land dev. - - Home equity and second mtg. Commercial loans - - Consumer loans - - - - Commercial equipment - Total $ 880,638 $ 221 $ 1,924 $ 13,056 $ 15,201 $ 895,839 December 31, 2014 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 556,584 $ - $ 672 $ 3,824 $ 4,496 $ 561,080 Residential first mortgages Construction and land dev. - - Home equity and second mtg. Commercial loans - Consumer loans - - Commercial equipment Total $ 860,046 $ 327 $ 1,493 $ 10,263 $ 12,083 $ 872,129 There were no loans greater than 90 days still accruing interest at June 30 , 2015 and at December 31, 2014. Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at June 30, 2015 and 2014 and at December 31, 2014 were as follows: June 30, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Three Month Average Recorded Investment Three Month Interest Income Recognized Year to Date Average Recorded Investment Year to Date Interest Income Recognized Commercial real estate $ 28,010 $ 25,424 $ 2,556 $ 27,980 $ 150 $ 28,090 $ 232 $ 28,155 $ 488 Residential first mortgages Construction and land dev. - - Home equity and second mtg. - - Commercial loans Commercial equipment Total $ 43,469 $ 38,464 $ 4,739 $ 43,203 $ 1,473 $ 43,354 $ 328 $ 43,334 $ 697 December 31, 2014 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Commercial real estate $ 31,812 $ 28,907 $ 2,622 $ 31,529 $ 97 $ 31,672 $ 1,258 Residential first mortgages Construction and land dev. - - Home equity and second mtg. - - Commercial loans Consumer loans - - - - - - - Commercial equipment Total $ 50,521 $ 45,587 $ 4,122 $ 49,709 $ 451 $ 50,021 $ 1,840 June 30, 2014 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Three Month Average Recorded Investment Three Month Interest Income Recognized Year to Date Average Recorded Investment Year to Date Interest Income Recognized Commercial real estate $ 17,500 $ 13,143 $ 4,328 $ 17,471 $ 311 $ 17,473 $ 172 $ 17,446 $ 332 Residential first mortgages Construction and land dev. Home equity and second mtg. Commercial loans Consumer loans - - - Commercial equipment Total $ 32,814 $ 22,848 $ 9,918 $ 32,766 $ 32,943 $ 287 $ 32,886 $ 562 TDRs, included in the impaired loan schedules above, as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 12,237 $ 10,438 Residential first mortgages Construction and land development Commercial loans Commercial equipment Total TDRs $ 18,685 $ 18,136 Less: TDRs included in non-accrual loans Total accrual TDR loans $ 13,908 $ 13,249 The Bank added six and 15 TDRs totaling $2.3 million and $12.0 million during the six months ended June 30, 2015 and the year ended December 31, 2014, respectively. Two TDRs totaling $1.6 million were disposed of during the second quarter of 2015 due to a payoff and refinancing by another lender. The Bank had specific reserves of $447,000 on seven TDRs totaling $3.0 million at June 30, 2015 and $251,000 on five TDRs totaling $2.5 million at December 31, 2014. A t June 30, 2015 and December 31, 2014, four loans totaling $3.8 and $3.9 million, respectively, represented a stalled residential development project. During the second quarter of 2014, the Bank deferred the collection of principal and interest to enable the project to use available funds to build units and complete the project. The stalled development project loans are considered both TDRs and non-accrual loans. Additionally at June 30, 2015 and December 31, 2014, the Bank had one TDR commercial real estate loan of $1.0 million that is greater than 90 days delinquent. These loans are classified solely as non-accrual loans for the calculation of financial ratios. Interest income in the amount of $249,000 and $563,000 was recognized on TDR loans for the six months ended June 3 0 , 2015 and the year ended December 31, 2014, respectively. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses at and for the three and six months ended June 30 , 2015 and 2014, respectively, and for the year ended December 31, 2014 and loan receivable balances at June 30 , 2015 and 2014, respectively, and at December 31, 2014. An allocation of the allowance to one category of loans does not prevent the Company’s ability to utilize the allowance to absorb losses in a different category. The loan receivables are disaggregated on the basis of the Company’s impairment methodology. (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Three Months Ended June 30, 2015 Allowance for loan losses: Balance at April 1, $ 4,348 $ 904 $ 1,099 $ 208 $ 1,740 $ 2 $ 320 $ 8,621 Charge-offs - - - - Recoveries - - - Provisions - Balance at June 30, $ 3,859 $ 885 $ 1,205 $ 206 $ 1,366 $ 2 $ 1,234 $ 8,757 At and For the Six Months Ended June 30, 2015 Allowance for loan losses: Balance at January 1, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Charge-offs - - - Recoveries - - Provisions Balance at June 30, $ 3,859 $ 885 $ 1,205 $ 206 $ 1,366 $ 2 $ 1,234 $ 8,757 Ending balance: individually evaluated for impairment $ 150 $ 75 $ - $ - $ 227 $ - $ 1,021 $ 1,473 Ending balance: collectively evaluated for impairment $ 3,709 $ 810 $ 1,205 $ 206 $ 1,139 $ 2 $ 213 $ 7,284 Loan receivables: Ending balance $ 601,270 $ 143,662 $ 39,159 $ 21,068 $ 63,480 $ 396 $ 26,804 $ 895,839 Ending balance: individually evaluated for impairment $ 27,980 $ 3,996 $ 4,329 $ 429 $ 5,080 $ - $ 1,389 $ 43,203 Ending balance: collectively evaluated for impairment $ 573,290 $ 139,666 $ 34,830 $ 20,639 $ 58,400 $ 396 $ 25,415 $ 852,636 (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Year Ended December 31, 2014 Allowance for loan losses: Balance at January 1, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Charge-offs Recoveries Provisions Balance at December 31, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Ending balance: individually evaluated for impairment $ 97 $ 76 $ - $ - $ 155 $ - $ 123 $ 451 Ending balance: collectively evaluated for impairment $ 3,979 $ 1,016 $ 1,071 $ 173 $ 1,522 $ 3 $ 266 $ 8,030 Loan receivables: Ending balance $ 561,080 $ 152,837 $ 36,370 $ 21,452 $ 73,625 $ 613 $ 26,152 $ 872,129 Ending balance: individually evaluated for impairment $ 31,529 $ 3,407 $ 6,102 $ 649 $ 7,436 $ - $ 586 $ 49,709 Ending balance: collectively evaluated for impairment $ 529,551 $ 149,430 $ 30,268 $ 20,803 $ 66,189 $ 613 $ 25,566 $ 822,420 (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Three Months Ended June 30, 2014 Allowance for loan losses: Balance at April 1, $ 3,610 $ 1,272 $ 561 $ 340 $ 2,115 $ 6 $ 293 $ 8,197 Charge-offs - - - - - Recoveries - - - Provisions Balance at June 30, $ 3,977 $ 1,090 $ 573 $ 283 $ 1,735 $ 4 $ 388 $ 8,050 At and For the Six Months Ended June 30, 2014 Allowance for loan losses: Balance at January 1, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Charge-offs - - - - Recoveries - - - Provisions Balance at June 30, $ 3,977 $ 1,090 $ 573 $ 283 $ 1,735 $ 4 $ 388 $ 8,050 Ending balance: individually evaluated for impairment $ 311 $ 75 $ 81 $ 33 $ 269 $ - $ 90 $ 859 Ending balance: collectively evaluated for impairment $ 3,666 $ 1,015 $ 492 $ 250 $ 1,466 $ 4 $ 298 $ 7,191 Loan receivables: Ending balance $ 531,919 $ 156,833 $ 32,086 $ 21,225 $ 77,583 $ 736 $ 25,876 $ 846,258 Ending balance: individually evaluated for impairment $ 17,471 $ 3,078 $ 6,049 $ 403 $ 5,380 $ 5 $ 380 $ 32,766 Ending balance: collectively evaluated for impairment $ 514,448 $ 153,755 $ 26,037 $ 20,822 $ 72,203 $ 731 $ 25,496 $ 813,492 Credit Quality Indicators Credit quality indicators as of June 30, 2015 and December 31, 2014 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Unrated $ 69,819 $ 74,955 $ 6,607 $ 3,108 Pass Special mention - - Substandard Doubtful - - - - Loss - - - - Total $ 601,270 $ 561,080 $ 39,159 $ 36,370 Commercial Loans Commercial Equipment (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Unrated $ 10,349 $ 12,296 $ 8,765 $ 7,173 Pass Special mention - - Substandard Doubtful - - - - Loss - - - - Total $ 63,480 $ 73,625 $ 26,804 $ 26,152 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Performing $ 142,504 $ 152,304 $ 20,702 $ 21,053 $ 396 $ 613 Nonperforming - - Total $ 143,662 $ 152,837 $ 21,068 $ 21,452 $ 396 $ 613 Summary of Total Classified Loans (dollars in thousands) 6/30/2015 12/31/2014 By Internally Assigned Grade $ 35,974 $ 44,486 By Payment Activity Total Classified $ 37,439 $ 46,735 A risk grading scale is used to assign grades to commercial real estate, construction and land development, commercial loans and commercial equipment loans. Loans are graded at inception, annually thereafter when financial statements are received and at other times when there is an indication that a credit may have weakened or improved. Only commercial loan relationships with an aggregate exposure to the Bank of $750,000 or greater are subject to being risk rated. H ome equity and second mortgages and consumer loans are evaluated for creditworthiness in underwriting and are monitored based on borrower payment history. Residential first mortgages are evaluated for creditworthiness during credit due diligence before being purchased. Residential first mortgages, h ome equity and second mortgages and consumer loans are classified as unrated unless they are part of a larger commercial relationship that requires grading or are troubled debt restructures or nonperforming loans with an Other Assets Especially Mentioned (“OAEM”) or higher risk rating due to a delinquent payment history. Management regularly reviews credit quality indicators as part of its individual loan reviews and on a monthly and quarterly basis. The overall quality of the Bank’s loan portfolio is assessed using the Bank’s risk grading scale, the level and trends of net charge-offs, nonperforming loans and delinquencies, the performance of troubled debt restructured loans and the general economic conditions in the Company’s geographical market. This review process is assisted by frequent internal reporting of loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Credit quality indicators and allowance factors are adjusted based on management’s judgment during the monthly and quarterly review process. Loans subject to risk ratings are graded on a scale of one to ten. The Company considers loans classified substandard, doubtful and loss as classified assets for regulatory and financial reporting. Ratings 1 thru 6 - Pass Ratings 1 thru 6 have asset risks ranging from excellent low risk to adequate. The specific rating assigned considers customer history of earnings, cash flows, liquidity, leverage, capitalization, consistency of debt service coverage, the nature and extent of customer relationship and other relevant specific business factors such as the stability of the industry or market area, changes to management, litigation or unexpected events that could have an impact on risks. Rating 7 - OAEM (Other Assets Especially Mentioned) – Special Mention These credits, while protected by the financial strength of the borrowers, guarantors or collateral, have reduced quality due to economic conditions, less than adequate earnings performance or other factors which require the lending officer to direct more than normal attention to the credit. Financing alternatives may be limited and/or command higher risk interest rates. OAEM loans are the first adversely classified assets on our watch list. These relationships will be reviewed at least quarterly. Rating 8 - Substandard Substandard assets are assets that are inadequately protected by the sound worth or paying capacity of the borrower or of the collateral pledged. These assets have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. The loans may have a delinquent history or combination of weak collateral, weak guarantor strength or operating losses. When a loan is assigned to this category the Bank may estimate a specific reserve in the loan loss allowance analysis. These assets listed may include assets with histories of repossessions or some that are non-performing bankruptcies. These relationships will be reviewed at least quarterly. Rating 9 - Doubtful Doubtful assets have many of the same characteristics of Substandard with the exception that the Bank has determined that loss is not only possible but is probable and the risk is close to certain that loss will occur. When a loan is assigned to this category the Bank will identify the probable loss and the loan will receive a specific reserve in the loan loss allowance analysis. These relationships will be reviewed at least quarterly. Rating 10 – Loss Once an asset is identified as a definite loss to the Bank, it will receive the classification of “loss”. There may be some future potential recovery; however it is more practical to write off the loan at the time of classification. Losses will be taken in the period in which they are determined to be uncollectable. |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | NOTE 12 - REGULATORY CAPITAL On January 1, 2015, the Company and Bank became subject to the new Basel III Capital Rules with full compliance with all of the final rule's requirements phased in over a multi-year schedule, to be fully phased-in by January 1, 2019. In July 2013, the Company’s primary federal regulator, the Federal Reserve, published final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The rules implement the Basel Committee’s December 2010 framework known as “Basel III” for strengthening international capital standards as well as certain provisions of the Dodd-Frank Act. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions compared to the previous U.S. risk-based capital rules. The Basel III Capital Rules define the components of capital and address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address risk weights and other issues affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing risk-weighting approach with a more risk-sensitive approach. The Basel III Capital Rules also implement the requirements of Section 939A of the Dodd-Frank Act to remove references to credit ratings from the federal banking agencies’ rules. The rules include a new common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.5%, raise the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, require a minimum ratio (“Min. Ratio”) of Total Capital to risk-weighted assets of 8.0%, and require a minimum Tier 1 leverage ratio of 4.0%. A new capital conservation buffer (“CCB”) is also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased-in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the final rules. The final rules also revise the definition and calculation of Tier 1 capital, Total Capital, and risk-weighted assets. As of June 30 , 2015, the Company and Bank were well-capitalized under the regulatory framework for prompt corrective action under the new Basel III Capital Rules. Management believes, as of June 30 , 2015 and December 31, 2014, that the Company and the Bank met all capital adequacy requirements to which they were subject. The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Common Equity $ 99,084 $ 96,559 $ 130,922 $ 126,838 Preferred Stock -SBLF - - - Total Stockholders' Equity AOCI Losses (Gains) Common Equity Tier 1 Capital TRUPs - - Tier 1 Capital Allowable Reserve for Credit Losses and Other Tier 2 Adjustments Subordinated Notes - - - Tier 2 Capital $ 143,141 $ 137,474 $ 139,979 $ 135,753 Risk-Weighted Assets ("RWA") $ 956,159 $ 903,931 $ 953,552 $ 902,136 Average Assets ("AA") $ 1,085,573 $ 1,053,424 $ 1,082,973 $ 1,051,627 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) % % % % % Tier 1 Capital to RWA Tier 2 Capital to RWA Tier 1 Capital to AA (Leverage) n/a (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) The Common Tier 1 ratio became effective for regulatory reporting purposes when the Company and the Bank became subject to the new Basel III Capital Rules during the three months ended March 31, 2015. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 13 - FAIR VALUE MEASUREMENTS The Company adopted FASB ASC Topic 820, “Fair Value Measurements” and FASB ASC Topic 825, “The Fair Value Option for Financial Assets and Financial Liabilities” , which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. FASB ASC Topic 820 requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available for sale investment securities) or on a nonrecurring basis (for example, impaired loans). FASB ASC Topic 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis such as loans held for investment and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets. Under FASB ASC Topic 820, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine the fair value. These hierarchy levels are: Level 1 inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access at the measurement date. Level 2 inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with the Company’s monthly or quarterly valuation process. There were no transfers between levels of the fair value hierarchy and the Company had no Level 3 fair value assets or liabilities for the six months ended June 30 , 2015 and the year ended December 31, 2014, respectively. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value: Securities Available for Sale Investment securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include mortgage-backed securities issued by GSEs, municipal bonds and corporate debt securities. Securities classified as Level 3 include asset-backed securities in less liquid markets. Loans Receivable The Company does not record loans at fair value on a recurring basis, however, from time to time, a loan is considered impaired and an allowance for loan loss is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan are considered impaired. Management estimates the fair value of impaired loans using one of several methods, including the collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. Impaired loans not requiring a specific allowance represent loans for which the fair value of expected repayments or collateral exceed the recorded investment in such loans. At June 30 , 2015 and December 31, 2014, substantially all of the impaired loans were evaluated based upon the fair value of the collateral. In accordance with FASB ASC 820, impaired loans where an allowance is established based on the fair value of collateral (loans with impairment) require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the loan as nonrecurring Level 3. Other Real Estate Owned OREO is adjusted to fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised value of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset at nonrecurring Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets as of June 30 , 2015 and December 31, 2014 measured at fair value on a recurring basis. (dollars in thousands) June 30, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 33,959 $ - $ 33,959 $ - MBS - - Corporate equity securities - - Bond mutual funds - - Total available for sale securities $ 38,378 $ - $ 38,378 $ - (dollars in thousands) December 31, 2014 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 37,541 $ - $ 37,541 $ - MBS - - Corporate equity securities - - Bond mutual funds - - Total available for sale securities $ 41,939 $ - $ 41,939 $ - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The Company may be required from time to time to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis as of June 30 , 2015 and December 31, 2014 are included in the tables below. (dollars in thousands) June 30, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,406 $ - $ 2,406 $ - Residential first mortgages - - Commercial loans - - Commercial equipment - - Total loans with impairment $ 3,266 $ - $ 3,266 $ - Other real estate owned $ 6,422 $ - $ 6,422 $ - (dollars in thousands) December 31, 2014 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,524 $ - $ 2,524 $ - Residential first mortgage - - Commercial loans - - Commercial equipment - - Total loans with impairment $ 3,670 $ - $ 3,670 $ - Other real estate owned $ 5,883 $ - $ 5,883 $ - Loans with impairment have unpaid principal balances of $ 4.7 million a nd $ 4.1 million at June 30 , 2015 and December 31, 2014, respectively, and include impaired loans with a specific allowance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 14 - FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair value amounts have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Therefore, any aggregate unrealized gains or losses should not be interpreted as a forecast of future earnings or cash flows. Furthermore, the fair values disclosed should not be interpreted as the aggregate current value of the Company. Valuation Methodology Investment securities - Fair values are based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. FHLB and FRB stock - Fair values are at cost, which is the carrying value of the securities. Investment in bank owned life insurance (“BOLI”) – Fair values are at cash surrender value. Loans receivable - For conforming residential first-mortgage loans, the market price for loans with similar coupons and maturities was used. For nonconforming loans with maturities similar to conforming loans, the coupon was adjusted for credit risk. Loans that did not have quoted market prices were priced using the discounted cash flow method. The discount rate used was the rate currently offered on similar products. Loans priced using the discounted cash flow method included residential construction loans, commercial real estate loans and consumer loans. The estimated fair value of loans held for sale is based on the terms of the related sale commitments. Loans held for sale - Fair values are derived from secondary market quotations for similar instruments. Savings, NOW and money market d eposits - The fair value of checking accounts, saving accounts and money market accounts were the amount payable on demand at the reporting date. Time certificates - The fair value was determined using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar products. Long-term debt and short-term borrow ings - These were valued using the discounted cash flow method. The discount rate was equal to the rate currently offered on similar borrowings. Guaranteed preferred beneficial interest in junior subordinated securities (TRUPs) - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Subordinated notes - These were valued using discounted cash flows. The discount rate was equal to the rate currently offered on similar borrowings. Off-balance sheet instruments - The Company charges fees for commitments to extend credit. Interest rates on loans for which these commitments are extended are normally committed for periods of less than one month. Fees charged on standby letters of credit and other financial guarantees are deemed to be immaterial and these guarantees are expected to be settled at face amount or expire unused. It is impractical to assign any fair value to these commitments. The Company’s estimated fair values of financial instruments are presented in the following tables. June 30, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 38,378 $ 38,378 $ - $ 38,378 $ - Investment securities - HTM - FHLB and FRB Stock - - Loans Receivable - - Investment in BOLI - - Liabilities Savings, NOW and money market accounts $ 511,294 $ 511,294 $ - $ 511,294 $ - Time deposits - - Long-term debt - - Short term borrowings - - TRUPs - - Subordinated notes - - December 31, 2014 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 41,939 $ 41,939 $ - $ 41,939 $ - Investment securities - HTM - FHLB and FRB Stock - - Loans Receivable - - Investment in BOLI - - Liabilities Savings, NOW and money market accounts $ 483,973 $ 483,973 $ - $ 483,973 $ - Time deposits - - Long-term debt - - Short term borrowings - - TRUPs - - At June 30 , 2015, the Company had outstanding loan commitments and standby letters of credit of $55.7 million and $18.0 million, respectively. Based on the short-term lives of these instruments, the Company does not believe that the fair value of these instruments differs significantly from their carrying values. The fair value estimates presented herein are based on pertinent information available to management as of June 30 , 2015 and December 31, 2014, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since that date and, therefore, current estimates of fair value may differ significantly from the amount presented herein. |
New Accounting Standards
New Accounting Standards | 6 Months Ended |
Jun. 30, 2015 | |
New Accounting Standards [Abstract] | |
New Accounting Standards | NOTE 15 – NEW ACCOUNTING STANDARDS Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-04 - Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40) - Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure . The amendments clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction. ASU 2014-04 is effective for interim and annual periods beginning after December 15, 2014. The a doption of ASU 2014-04 did not have a material impact on the Company’s consolidated financial statements. ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 states that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update affects entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. ASU 2014-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 201 7 . Early adoption is permitted , but not before the original effective date of December 15, 2016 . The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2014-11 - Transfers and Servicing (Topic 860) - Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entails the transfer of a financial asset executed contemporaneously with a repurchase agreement from the same counterparty. ASU 2014-11 requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral, remaining contractual term and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 was effective for the Company on January 1, 2015 and did not have a material impact on the Company’s consolidated financial statements. ASU 2015-05 - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The new guidance does not change the accounting for a customer’s accounting for service contracts. ASU No. 2015-05 is effective for interim and annual reporting periods beginning after December 15, 2015. The Company is currently evaluating the provisions of ASU No. 2015-05 to determine the potential impact the new standard will have on the Company's Consolidated Financial Statements. |
Accumulated Other Comprehensi23
Accumulated Other Comprehensive Gain (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Gain (Loss) [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following tables present the components of comprehensive gain (loss) for the three and six months ended June 30, 2015 and 2014. The Company’s comprehensive gain (loss) was solely related to securities for the three and six months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ (330) $ (130) $ (200) $ 370 $ 126 $ 244 Reclassification adjustments - - - - - - Other comprehensive gain (loss) $ (330) $ (130) $ (200) $ 370 $ 126 $ 244 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains arising during period $ 129 $ 51 $ 78 $ 254 $ 87 $ 167 Reclassification adjustments - - - Other comprehensive gain $ 129 $ 51 $ 78 $ 246 $ 84 $ 162 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and six months ended June 30 , 2015 and 2014. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (100) $ (1,139) $ (378) $ (1,057) Other comprehensive gain (loss) before reclassifications Amounts reclassified from accumulated other comprehensive income - - - Net other comprehensive gain (loss) End of period $ (300) $ (895) $ (300) $ (895) |
Earnings Per Share ("EPS") (Tab
Earnings Per Share ("EPS") (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share ("EPS") [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands) 2015 2014 2015 2014 Net Income $ 1,711 $ 1,335 $ 3,532 $ 3,056 Less: dividends paid and accrued on preferred stock - Net income available to common shareholders $ 1,711 $ 1,285 $ 3,509 $ 2,956 Average number of common shares outstanding Dilutive effect of common stock equivalents Average number of shares used to calculate diluted EPS |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following tables below summarize outstanding and exercisable options at June 30, 2015 and December 31, 2014. Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2015 $ 23.60 $ - Exercised - - - Forfeited - - Outstanding at June 30, 2015 $ 23.60 $ - - Exercisable at June 30, 2015 $ 23.60 $ - - Weighted Weighted-Average Average Aggregate Contractual Life Exercise Intrinsic Remaining In (dollars in thousands, except per share amounts) Shares Price Value Years Outstanding at January 1, 2014 $ 20.12 $ 347 Exercised Forfeited Outstanding at December 31, 2014 $ 23.60 $ - - Exercisable at December 31, 2014 $ 23.60 $ - - |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options outstanding are all currently exercisable and are summarized as follows: Shares Outstanding Weighted Average Weighted Average June 30, 2015 Remaining Contractual Life Exercise Price 66,225 1 years $ 22.29 21,211 2 years 27.70 87,436 $ 23.60 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following tables summarize the unvested restricted stock awards and units outstanding at June 30, 2015 and December 31, 2014, respectively. There were no outstanding stock units at June 30, 2015 and December 31, 2014, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 $ 20.83 Granted Vested Nonvested at June 30, 2015 $ 19.83 Restricted Stock Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Number of Units Fair Value Nonvested at January 1, 2014 $ 17.86 $ 20.71 Granted - - Vested Nonvested at December 31, 2014 $ 20.83 - $ - |
Other Real Estate Owned ("ORE26
Other Real Estate Owned ("OREO") (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Foreclosed Real Estate Roll Forward | OREO assets are presented net of valuation allowances. The Company considers OREO as classified assets for regulatory and financial reporting. An analysis of OREO activity follows. Six Months Ended June 30, Year Ended December 31, (dollars in thousands) 2015 2014 2014 Balance at beginning of year $ 5,883 $ 6,797 $ 6,797 Additions of underlying property Disposals of underlying property Transfers of OREO to loans - - Valuation allowance Balance at end of period $ 6,422 $ 6,553 $ 5,883 |
Foreclosed Real Estate Expenses | Expenses applicable to OREO assets include the following. Three Months Ended June 30, Six Months Ended June 30, (dollars in thousands) 2015 2014 2015 2014 Valuation allowance $ 249 $ 152 $ 374 $ 234 Operating expenses $ 334 $ 165 $ 553 $ 294 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Trading Securities (and Certain Trading Assets) | June 30, 2015 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential Mortgage Backed Securities ("MBS") $ 25 $ 5 $ - $ 30 Residential Collateralized Mortgage Obligations ("CMOs") Corporate equity securities - Bond mutual funds - Total securities available for sale $ 38,873 $ 178 $ 673 $ 38,378 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 17,877 $ 601 $ 58 $ 18,420 Residential CMOs Asset-backed securities issued by Others: Residential CMOs - Total debt securities held to maturity U.S. government obligations - - Total securities held to maturity $ 85,985 $ 993 $ 763 $ 86,215 December 31, 2014 Amortized Gross Unrealized Gross Unrealized Estimated (dollars in thousands) Cost Gains Losses Fair Value Securities available for sale (AFS) Asset-backed securities issued by GSEs Residential MBS $ 33 $ 4 $ - $ 37 Residential CMOs Corporate equity securities - Bond mutual funds - Total securities available for sale $ 42,563 $ 206 $ 830 $ 41,939 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 19,501 $ 767 $ 45 $ 20,223 Residential CMOs Asset-backed securities issued by Others: Residential CMOs - Total debt securities held to maturity U.S. government obligations - - Total securities held to maturity $ 84,506 $ 1,146 $ 737 $ 84,915 |
Financing Receivable Credit Quality Indicators | GSE asset-backed security downgrades by Standard and Poor’s were treated as AAA based on regulatory guidance. June 30, 2015 December 31, 2014 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 117,953 AAA $ 119,762 BBB - BBB BB BB CCC+ CCC+ Total $ 119,224 Total $ 121,234 |
Held-To-Maturity Securities [Member] | |
Schedule of Unrealized Loss on Investments | Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at June 30, 2015 are as follows: June 30, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs Asset-backed securities issued by other - - $ 8,207 $ 89 $ 20,035 $ 674 $ 28,242 $ 763 Gross unrealized losses and estimated fair value by length of time that the individual HTM securities have been in a continuous unrealized loss position at December 31, 2014 were as follows: December 31, 2014 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 14,508 $ 85 $ 21,091 $ 540 $ 35,599 $ 625 Asset-backed securities issued by other - - $ 14,508 $ 85 $ 22,382 $ 652 $ 36,890 $ 737 |
Available-For-Sale Securities [Member] | |
Schedule of Unrealized Loss on Investments | Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at June 30, 2015 were as follows: June 30, 2015 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 2,261 $ 14 $ 22,193 $ 659 $ 24,454 $ 673 Gross unrealized losses and estimated fair value by length of time that the individual AFS securities have been in a continuous unrealized loss position at December 31, 2014 were as follows December 31, 2014 Less Than 12 More Than 12 Months Months Total (dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Losses Asset-backed securities issued by GSEs $ 294 $ - $ 26,856 $ 830 $ 27,150 $ 830 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consist of the following: (dollars in thousands) June 30, 2015 December 31, 2014 Commercial real estate $ 601,270 $ 561,080 Residential first mortgages Construction and land development Home equity and second mortgages Commercial loans Consumer loans Commercial equipment Less: Deferred loan fees Allowance for loan losses $ 885,914 $ 862,409 |
Schedule of Financing Receivables, Non-Accrual Status | Non-accrual loans as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Total Non-accrual Loans Total Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 6,119 $ 3,824 Residential first mortgages Construction and land development Home equity and second mortgages Commercial loans Commercial equipment $ 13,056 $ 10,263 |
Allowance for Credit Losses on Financing Receivables | (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Three Months Ended June 30, 2015 Allowance for loan losses: Balance at April 1, $ 4,348 $ 904 $ 1,099 $ 208 $ 1,740 $ 2 $ 320 $ 8,621 Charge-offs - - - - Recoveries - - - Provisions - Balance at June 30, $ 3,859 $ 885 $ 1,205 $ 206 $ 1,366 $ 2 $ 1,234 $ 8,757 At and For the Six Months Ended June 30, 2015 Allowance for loan losses: Balance at January 1, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Charge-offs - - - Recoveries - - Provisions Balance at June 30, $ 3,859 $ 885 $ 1,205 $ 206 $ 1,366 $ 2 $ 1,234 $ 8,757 Ending balance: individually evaluated for impairment $ 150 $ 75 $ - $ - $ 227 $ - $ 1,021 $ 1,473 Ending balance: collectively evaluated for impairment $ 3,709 $ 810 $ 1,205 $ 206 $ 1,139 $ 2 $ 213 $ 7,284 Loan receivables: Ending balance $ 601,270 $ 143,662 $ 39,159 $ 21,068 $ 63,480 $ 396 $ 26,804 $ 895,839 Ending balance: individually evaluated for impairment $ 27,980 $ 3,996 $ 4,329 $ 429 $ 5,080 $ - $ 1,389 $ 43,203 Ending balance: collectively evaluated for impairment $ 573,290 $ 139,666 $ 34,830 $ 20,639 $ 58,400 $ 396 $ 25,415 $ 852,636 (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Year Ended December 31, 2014 Allowance for loan losses: Balance at January 1, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Charge-offs Recoveries Provisions Balance at December 31, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Ending balance: individually evaluated for impairment $ 97 $ 76 $ - $ - $ 155 $ - $ 123 $ 451 Ending balance: collectively evaluated for impairment $ 3,979 $ 1,016 $ 1,071 $ 173 $ 1,522 $ 3 $ 266 $ 8,030 Loan receivables: Ending balance $ 561,080 $ 152,837 $ 36,370 $ 21,452 $ 73,625 $ 613 $ 26,152 $ 872,129 Ending balance: individually evaluated for impairment $ 31,529 $ 3,407 $ 6,102 $ 649 $ 7,436 $ - $ 586 $ 49,709 Ending balance: collectively evaluated for impairment $ 529,551 $ 149,430 $ 30,268 $ 20,803 $ 66,189 $ 613 $ 25,566 $ 822,420 (dollars in thousands) Commercial Real Estate Residential First Mortgage Construction and Land Development Home Equity and Second Mtg. Commercial Loans Consumer Loans Commercial Equipment Total At and For the Three Months Ended June 30, 2014 Allowance for loan losses: Balance at April 1, $ 3,610 $ 1,272 $ 561 $ 340 $ 2,115 $ 6 $ 293 $ 8,197 Charge-offs - - - - - Recoveries - - - Provisions Balance at June 30, $ 3,977 $ 1,090 $ 573 $ 283 $ 1,735 $ 4 $ 388 $ 8,050 At and For the Six Months Ended June 30, 2014 Allowance for loan losses: Balance at January 1, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Charge-offs - - - - Recoveries - - - Provisions Balance at June 30, $ 3,977 $ 1,090 $ 573 $ 283 $ 1,735 $ 4 $ 388 $ 8,050 Ending balance: individually evaluated for impairment $ 311 $ 75 $ 81 $ 33 $ 269 $ - $ 90 $ 859 Ending balance: collectively evaluated for impairment $ 3,666 $ 1,015 $ 492 $ 250 $ 1,466 $ 4 $ 298 $ 7,191 Loan receivables: Ending balance $ 531,919 $ 156,833 $ 32,086 $ 21,225 $ 77,583 $ 736 $ 25,876 $ 846,258 Ending balance: individually evaluated for impairment $ 17,471 $ 3,078 $ 6,049 $ 403 $ 5,380 $ 5 $ 380 $ 32,766 Ending balance: collectively evaluated for impairment $ 514,448 $ 153,755 $ 26,037 $ 20,822 $ 72,203 $ 731 $ 25,496 $ 813,492 |
Past Due Financing Receivables | An analysis of past due loans as of June 30, 2015 and December 31, 2014 was as follows: June 30, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 593,802 $ - $ 1,349 $ 6,119 $ 7,468 $ 601,270 Residential first mortgages Construction and land dev. - - Home equity and second mtg. Commercial loans - - Consumer loans - - - - Commercial equipment - Total $ 880,638 $ 221 $ 1,924 $ 13,056 $ 15,201 $ 895,839 December 31, 2014 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 556,584 $ - $ 672 $ 3,824 $ 4,496 $ 561,080 Residential first mortgages Construction and land dev. - - Home equity and second mtg. Commercial loans - Consumer loans - - Commercial equipment Total $ 860,046 $ 327 $ 1,493 $ 10,263 $ 12,083 $ 872,129 |
Schedule of Financing Receivable Recorded Investment Credit Quality Indicator | Credit quality indicators as of June 30, 2015 and December 31, 2014 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Unrated $ 69,819 $ 74,955 $ 6,607 $ 3,108 Pass Special mention - - Substandard Doubtful - - - - Loss - - - - Total $ 601,270 $ 561,080 $ 39,159 $ 36,370 Commercial Loans Commercial Equipment (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Unrated $ 10,349 $ 12,296 $ 8,765 $ 7,173 Pass Special mention - - Substandard Doubtful - - - - Loss - - - - Total $ 63,480 $ 73,625 $ 26,804 $ 26,152 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 6/30/2015 12/31/2014 6/30/2015 12/31/2014 6/30/2015 12/31/2014 Performing $ 142,504 $ 152,304 $ 20,702 $ 21,053 $ 396 $ 613 Nonperforming - - Total $ 143,662 $ 152,837 $ 21,068 $ 21,452 $ 396 $ 613 Summary of Total Classified Loans (dollars in thousands) 6/30/2015 12/31/2014 By Internally Assigned Grade $ 35,974 $ 44,486 By Payment Activity Total Classified $ 37,439 $ 46,735 |
Impaired Financing Receivables | Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at June 30, 2015 and 2014 and at December 31, 2014 were as follows: June 30, 2015 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Three Month Average Recorded Investment Three Month Interest Income Recognized Year to Date Average Recorded Investment Year to Date Interest Income Recognized Commercial real estate $ 28,010 $ 25,424 $ 2,556 $ 27,980 $ 150 $ 28,090 $ 232 $ 28,155 $ 488 Residential first mortgages Construction and land dev. - - Home equity and second mtg. - - Commercial loans Commercial equipment Total $ 43,469 $ 38,464 $ 4,739 $ 43,203 $ 1,473 $ 43,354 $ 328 $ 43,334 $ 697 December 31, 2014 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Average Recorded Investment Interest Income Recognized Commercial real estate $ 31,812 $ 28,907 $ 2,622 $ 31,529 $ 97 $ 31,672 $ 1,258 Residential first mortgages Construction and land dev. - - Home equity and second mtg. - - Commercial loans Consumer loans - - - - - - - Commercial equipment Total $ 50,521 $ 45,587 $ 4,122 $ 49,709 $ 451 $ 50,021 $ 1,840 June 30, 2014 (dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment With No Allowance Recorded Investment With Allowance Total Recorded Investment Related Allowance Three Month Average Recorded Investment Three Month Interest Income Recognized Year to Date Average Recorded Investment Year to Date Interest Income Recognized Commercial real estate $ 17,500 $ 13,143 $ 4,328 $ 17,471 $ 311 $ 17,473 $ 172 $ 17,446 $ 332 Residential first mortgages Construction and land dev. Home equity and second mtg. Commercial loans Consumer loans - - - Commercial equipment Total $ 32,814 $ 22,848 $ 9,918 $ 32,766 $ 32,943 $ 287 $ 32,886 $ 562 |
Troubled Debt Restructurings on Financing Receivables | TDRs, included in the impaired loan schedules above, as of June 30, 2015 and December 31, 2014 were as follows: June 30, 2015 December 31, 2014 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 12,237 $ 10,438 Residential first mortgages Construction and land development Commercial loans Commercial equipment Total TDRs $ 18,685 $ 18,136 Less: TDRs included in non-accrual loans Total accrual TDR loans $ 13,908 $ 13,249 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Capital [Abstract] | |
Regulatory Matters | The Company’s and the Bank’s actual regulatory capital amounts and ratios are presented in the following table. Regulatory Capital and Ratios The Company The Bank (dollars in thousands) June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Common Equity $ 99,084 $ 96,559 $ 130,922 $ 126,838 Preferred Stock -SBLF - - - Total Stockholders' Equity AOCI Losses (Gains) Common Equity Tier 1 Capital TRUPs - - Tier 1 Capital Allowable Reserve for Credit Losses and Other Tier 2 Adjustments Subordinated Notes - - - Tier 2 Capital $ 143,141 $ 137,474 $ 139,979 $ 135,753 Risk-Weighted Assets ("RWA") $ 956,159 $ 903,931 $ 953,552 $ 902,136 Average Assets ("AA") $ 1,085,573 $ 1,053,424 $ 1,082,973 $ 1,051,627 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) % % % % % Tier 1 Capital to RWA Tier 2 Capital to RWA Tier 1 Capital to AA (Leverage) n/a (1) These are the fully phased-in ratios as of January 1, 2019 that include the minimum capital ratio ("Min. Ratio") + the capital conservation buffer ("CCB"). The phase-in period is more fully described in the footnote above. (2) The Common Tier 1 ratio became effective for regulatory reporting purposes when the Company and the Bank became subject to the new Basel III Capital Rules during the three months ended March 31, 2015. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of June 30 , 2015 and December 31, 2014 measured at fair value on a recurring basis. (dollars in thousands) June 30, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 33,959 $ - $ 33,959 $ - MBS - - Corporate equity securities - - Bond mutual funds - - Total available for sale securities $ 38,378 $ - $ 38,378 $ - (dollars in thousands) December 31, 2014 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 37,541 $ - $ 37,541 $ - MBS - - Corporate equity securities - - Bond mutual funds - - Total available for sale securities $ 41,939 $ - $ 41,939 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | (dollars in thousands) June 30, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,406 $ - $ 2,406 $ - Residential first mortgages - - Commercial loans - - Commercial equipment - - Total loans with impairment $ 3,266 $ - $ 3,266 $ - Other real estate owned $ 6,422 $ - $ 6,422 $ - (dollars in thousands) December 31, 2014 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 2,524 $ - $ 2,524 $ - Residential first mortgage - - Commercial loans - - Commercial equipment - - Total loans with impairment $ 3,670 $ - $ 3,670 $ - Other real estate owned $ 5,883 $ - $ 5,883 $ - |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, by Balance Sheet Grouping | June 30, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 38,378 $ 38,378 $ - $ 38,378 $ - Investment securities - HTM - FHLB and FRB Stock - - Loans Receivable - - Investment in BOLI - - Liabilities Savings, NOW and money market accounts $ 511,294 $ 511,294 $ - $ 511,294 $ - Time deposits - - Long-term debt - - Short term borrowings - - TRUPs - - Subordinated notes - - December 31, 2014 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 41,939 $ 41,939 $ - $ 41,939 $ - Investment securities - HTM - FHLB and FRB Stock - - Loans Receivable - - Investment in BOLI - - Liabilities Savings, NOW and money market accounts $ 483,973 $ 483,973 $ - $ 483,973 $ - Time deposits - - Long-term debt - - Short term borrowings - - TRUPs - - |
Accumulated Other Comprehensi32
Accumulated Other Comprehensive Gain (Loss) (Schedule of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Gain (Loss) [Abstract] | ||||
Net unrealized holding gains (losses) arising during period, before tax | $ (330) | $ 370 | $ 129 | $ 254 |
Reclassification adjustments, before tax | (8) | |||
Other comprehensive gain (loss), before tax | $ (330) | $ 370 | $ 129 | 246 |
Net unrealized holding gains (losses) arising during period, tax effect | (130) | 126 | $ 51 | 87 |
Reclassification adjustments, tax effect | 0 | 0 | (3) | |
Other comprehensive gain (loss), tax effect | (130) | 126 | $ 51 | 84 |
Net unrealized holding gains (losses) arising during period, net of tax | $ (200) | $ 244 | $ 78 | 167 |
Reclassification adjustments, net of tax | (5) | |||
Other comprehensive gain (loss), net of tax | $ (200) | $ 244 | $ 78 | $ 162 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Gain (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accumulated Other Comprehensive Gain (Loss) [Abstract] | ||||
Net unrealized gains and losses, beginning balance | $ (100) | $ (1,139) | $ (378) | $ (1,057) |
Other comprehensive gain (loss) before reclassifications | $ (200) | $ 244 | $ 78 | 167 |
Amounts reclassified from accumulated other comprehensive Income | (5) | |||
Net other comprehensive gain (loss) | $ (200) | $ 244 | $ 78 | 162 |
Net unrealized gains and losses, ending balance | $ (300) | $ (895) | $ (300) | $ (895) |
Earnings Per Share ("EPS") (Nar
Earnings Per Share ("EPS") (Narrative) (Details) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from diluted net income per share | 87,436 | 87,436 |
Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from diluted net income per share | 37,078 |
Earnings Per Share (EPS) (Sched
Earnings Per Share (EPS) (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share ("EPS") [Abstract] | ||||
Net income | $ 1,711 | $ 1,335 | $ 3,532 | $ 3,056 |
Less: dividends paid and accrued on preferred stock | (50) | (23) | (100) | |
Net income available to common shareholders | $ 1,711 | $ 1,285 | $ 3,509 | $ 2,956 |
Average number of common shares outstanding | 4,650,153 | 4,651,716 | 4,653,763 | 4,645,963 |
Dilutive effect of common stock equivalents | 37,048 | 17,793 | 37,048 | 16,632 |
Average number of shares used to calculate diluted earnings per share | 4,687,201 | 4,669,509 | 4,690,811 | 4,662,595 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock based compensation | $ 122,000 | $ 146,000 | |
Sale of stock, price per share (in dollars per share) | $ 21.50 | $ 20.07 | |
Unrecognized stock compensation expense | $ 804,000 | ||
Option maximum term | 10 years | ||
Aggregate intrinsic value exercisable | $ 0 | $ 0 | |
Maximum [Member] | Restricted Stock and Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee benefit plan vesting period | 5 years | ||
Minimum [Member] | Restricted Stock and Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee benefit plan vesting period | 3 years |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | ||
Shares outstanding, beginning balance | 87,436 | 159,517 |
Shares exercised | (45,163) | |
Shares forfeited | (26,918) | |
Shares outstanding, ending balance | 87,436 | 87,436 |
Shares, exercisable | 87,436 | 87,436 |
Weighted average exercise price outstanding, beginning balance | $ 23.60 | $ 20.12 |
Weighted average exercise price exercised | 15.89 | |
Weighted average exercise price forfeited | 15.89 | |
Weighted average exercise price outstanding, ending balance | 23.60 | 23.60 |
Weighted average exercise price exercisable | $ 23.60 | $ 23.60 |
Aggregate intrinsic value outstanding, beginning balance | $ 347,000 | |
Aggregate intrinsic value exercised | 207,000 | |
Aggregate intrinsic value exercisable | $ 0 | $ 0 |
Weighted-average contractual life remaining in years outstanding (in years) | ||
Weighted-average contractual life remaining in years exercisable (in years) |
Stock-Based Compensation (Sch38
Stock-Based Compensation (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) - $ / shares shares in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding June 30, 2015 (in shares) | 87,436 | 87,436 |
Weighted average remaining contractual life (in years) | ||
Weighted average exercise price (in dollars per share) | $ 23.60 | $ 23.60 |
Option Exercisable One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding June 30, 2015 (in shares) | 66,225 | |
Weighted average remaining contractual life (in years) | 1 year | |
Weighted average exercise price (in dollars per share) | $ 22.29 | |
Option Exercisable Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding June 30, 2015 (in shares) | 21,211 | |
Weighted average remaining contractual life (in years) | 2 years | |
Weighted average exercise price (in dollars per share) | $ 27.70 |
Stock-Based Compensation (Sch39
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning period, nonvested | 29,472 | 16,832 |
Number of shares, granted | 28,040 | 33,460 |
Number of shares, vested | (20,464) | (20,820) |
Ending period, nonvested | 37,048 | 29,472 |
Beginning period, weighted average grant date fair value, nonvested | $ 20.83 | $ 17.86 |
Weighted average grant date fair value, granted | 18.63 | 21.35 |
Weighted average grant date fair value, vested | 19.62 | 19.26 |
Ending period, weighted average grant date fair value, nonvested | $ 19.83 | $ 20.83 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning period, nonvested | 4,210 | |
Number of shares, vested | (4,210) | |
Beginning period, weighted average grant date fair value, nonvested | $ 20.71 | |
Weighted average grant date fair value, vested | $ 20.28 |
Guaranteed Preferred Benefici40
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2005 | Jul. 31, 2004 | Jun. 30, 2015 | Jun. 15, 2005 | Jul. 22, 2004 | |
Debt Instrument [Line Items] | |||||
Junior subordinated notes purchased | $ 5,200,000 | ||||
Capital Trust I I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 5,000,000 | ||||
Additional amount contributed to purchase debt | $ 155,000 | ||||
Debt instrument, maturity date | Jun. 15, 2035 | ||||
Capital Trust I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 7,000,000 | ||||
Additional amount contributed to purchase debt | $ 217,000 | ||||
Junior subordinated notes purchased | $ 7,200,000 | ||||
Debt instrument, maturity date | Jul. 22, 2034 | ||||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 1.70% | ||||
Debt instrument, percent spread on variable rate | 1.70% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Capital Trust I [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, description of variable rate basis | 90-day LIBOR rate plus 2.60% | ||||
Debt instrument, percent spread on variable rate | 2.60% |
Subordinated Notes (Details)
Subordinated Notes (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2015 | Feb. 13, 2015 | Feb. 06, 2015 | Dec. 31, 2014 | |
Preferred stock, redemption date | Feb. 13, 2015 | |||
Preferred stock, value | $ 20,000,000 | $ 20,000,000 | ||
Subordinated Debt [Member] | ||||
Debt instrument, face amount | $ 23,000,000 | |||
Interest rate | 6.25% | 6.25% | ||
Redemption percentage | 100.00% | |||
Debt instrument, maturity date | Feb. 15, 2025 | |||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt instrument, percent spread on variable rate | 4.79% |
Other Real Estate Owned ("ORE42
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Additions of underlying property | $ 1,556,000 | $ 1,082,000 | $ 2,742,000 | ||
Valuation allowance | $ 249,000 | $ 152,000 | 374,000 | 234,000 | $ 234,000 |
Residential Real Estate [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Additions of underlying property | 442,000 | ||||
Five Residential Properties [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Additions of underlying property | 784,000 | ||||
Three Residential Properties [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Disposals | 4,000 | ||||
Two Residential Properties [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Disposals | (18,000) | ||||
Three Residential Lots [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Additions of underlying property | 378,000 | ||||
Commercial Lot [Member] | |||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||||
Additions of underlying property | $ 400,000 | $ 640,000 |
Other Real Estate Owned ("ORE43
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Other Real Estate Owned ("OREO") [Abstract] | |||||
Balance at beginning of year | $ 5,883 | $ 6,797 | $ 6,797 | ||
Additions of underlying property | 1,556 | 1,082 | 2,742 | ||
Disposals of underlying property | (643) | (1,092) | (2,422) | ||
Transfers of OREO to loans | (1,000) | ||||
Valuation allowance | $ (249) | $ (152) | (374) | (234) | (234) |
Balance at end of period | $ 6,422 | $ 6,553 | $ 6,422 | $ 6,553 | $ 5,883 |
Other Real Estate Owned ("ORE44
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Other Real Estate Owned ("OREO") [Abstract] | |||||
Valuation allowance | $ 249 | $ 152 | $ 374 | $ 234 | $ 234 |
Operating expenses | 85 | 13 | 179 | 60 | |
Miscellaneous expenses | $ 334 | $ 165 | $ 553 | $ 294 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Asset backed securities pledged to secure certain deposits | $ 21,600,000 | ||
Asset backed securities pledged as collateral | 2,100,000 | ||
Amount | 119,224,000 | $ 121,234,000 | |
Amortized cost, held to maturity | 85,985,000 | 84,506,000 | |
Amortized cost, available for sale | 38,300,000 | ||
Other than temporary impairment charges | 0 | $ 0 | |
Held-to-maturity securities, debt maturities, fair value | 86,215,000 | 84,915,000 | |
Gains on sales of HTM investment securities | (1,000) | 16,000 | |
Recognized net gain (loss) on sale of securities | (1,000) | 24,000 | |
Gains on sales of AFS investment securities | 8,000 | ||
Securities held to maturity (HTM), at amortized cost | 86,215,000 | 84,915,000 | |
Securities available for sale (AFS), at fair value | 38,378,000 | $ 41,939,000 | |
Held-to-maturity securities sold | $ 68,000 | ||
Asset Backed Securities Issued By Others [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities average life | 4 years 8 months 27 days | ||
Held to maturity securities, average duration | 3 years 10 months 24 days | ||
Asset Backed Securities Issued By GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Percentage of asset backed securities in investment portfolio | 99.00% | 99.00% | |
Available for sale securities average life | 4 years 6 months 18 days | 3 years 7 months 28 days | |
Available for sale securities, average duration | 4 years 2 months 9 days | 3 years 4 months 28 days | |
Held to maturity securities average life | 4 years 7 months 24 days | 3 years 4 months 24 days | |
Held to maturity securities, average duration | 4 years 3 months 26 days | 3 years 2 months 16 days | |
Amortized cost, held to maturity | $ 82,200,000 | ||
Gross unrealized losses, available for sale | $ 673,000 | 830,000 | |
Held-To-Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held-to-maturity securities, debt maturities, fair value | 86,200,000 | $ 84,900,000 | |
Gains on sales of HTM investment securities | 16,000 | ||
Securities held to maturity (HTM), at amortized cost | 3,200,000 | ||
Held-To-Maturity Securities [Member] | Asset Backed Securities Issued By Others [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 1,300,000 | ||
Held to maturity securities average life | 4 years 3 months 7 days | ||
Held to maturity securities, average duration | 3 years 7 months 13 days | ||
Held-to-maturity securities, debt maturities, fair value | $ 1,300,000 | ||
Gains on sales of HTM investment securities | $ (114,000) | $ 112,000 | |
Held-To-Maturity Securities [Member] | Asset Backed Securities Issued By GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities average life | 4 years 3 months 18 days | 3 years 2 months 23 days | |
Held to maturity securities, average duration | 3 years 11 months 12 days | 3 years 4 days | |
Amortized cost, held to maturity | $ 84,000,000 | $ 1,500,000 | |
Held-to-maturity securities, debt maturities, fair value | 35,600,000 | ||
Gross unrealized gain (loss) on securities | (649,000) | (625,000) | |
Available-For-Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 2,100,000 | ||
Gains on sales of AFS investment securities | $ 8,000 | ||
Securities available for sale (AFS), at fair value | $ 38,400,000 | $ 41,900,000 | |
Available-For-Sale Securities [Member] | Asset Backed Securities Issued By GSEs [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available for sale securities average life | 4 years 6 months 22 days | 3 years 9 months 7 days | |
Available for sale securities, average duration | 4 years 1 month 21 days | 3 years 5 months 16 days | |
Amortized cost, held to maturity | $ 34,600,000 | ||
Unrealized Loss [Member] | Held-To-Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held-to-maturity securities, debt maturities, fair value | 28,200,000 | $ 36,900,000 | |
Unrealized Loss [Member] | Held-To-Maturity Securities [Member] | Mortgage-Backed Securities, Issued By Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held-to-maturity securities, debt maturities, fair value | 27,000,000 | ||
Unrealized Loss [Member] | Held-To-Maturity Securities [Member] | Mortgage Backed Securities Issued By Others [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held-to-maturity securities, debt maturities, fair value | 1,200,000 | ||
Unrealized Loss [Member] | Available-For-Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities available for sale (AFS), at fair value | $ 24,500,000 | $ 27,200,000 |
Securities (Trading Securities
Securities (Trading Securities (and Certain Trading Assets)) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | $ 38,300 | |
Estimated fair value, available for sale | $ 38,378 | 41,939 |
Amortized cost, held to maturity | 85,985 | 84,506 |
Gross unrealized gains, held to maturity | 993 | 1,146 |
Gross unrealized losses, held to maturity | 763 | 737 |
Estimated fair value, held to maturity | 86,215 | 84,915 |
Asset Backed Securities Issued By Others [Member] | US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, held to maturity | 750 | 850 |
Estimated fair value, held to maturity | 750 | 850 |
Asset Backed Securities Issued By Others [Member] | Debt Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, held to maturity | 85,235 | 83,656 |
Gross unrealized gains, held to maturity | 993 | 1,146 |
Gross unrealized losses, held to maturity | 763 | 737 |
Estimated fair value, held to maturity | 85,465 | 84,065 |
Asset Backed Securities Issued By Others [Member] | Residential Collateralized Mortgage Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, held to maturity | 1,271 | 1,472 |
Gross unrealized losses, held to maturity | 114 | 112 |
Estimated fair value, held to maturity | 1,157 | 1,360 |
Asset Backed Securities Issued By GSEs [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 38,873 | 42,563 |
Gross unrealized gains, available for sale | 178 | 206 |
Gross unrealized losses, available for sale | 673 | 830 |
Estimated fair value, available for sale | 38,378 | 41,939 |
Asset Backed Securities Issued By GSEs [Member] | Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 4,243 | 4,199 |
Gross unrealized gains, available for sale | 106 | 122 |
Estimated fair value, available for sale | 4,349 | 4,321 |
Asset Backed Securities Issued By GSEs [Member] | Corporate Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 37 | 37 |
Gross unrealized gains, available for sale | 3 | 3 |
Estimated fair value, available for sale | 40 | 40 |
Asset Backed Securities Issued By GSEs [Member] | Residential Collateralized Mortgage Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 34,568 | 38,294 |
Gross unrealized gains, available for sale | 64 | 77 |
Gross unrealized losses, available for sale | 673 | 830 |
Estimated fair value, available for sale | 33,959 | 37,541 |
Amortized cost, held to maturity | 66,087 | 62,683 |
Gross unrealized gains, held to maturity | 392 | 379 |
Gross unrealized losses, held to maturity | 591 | 580 |
Estimated fair value, held to maturity | 65,888 | 62,482 |
Asset Backed Securities Issued By GSEs [Member] | Residential Mortgage Backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 25 | 33 |
Gross unrealized gains, available for sale | 5 | 4 |
Estimated fair value, available for sale | 30 | 37 |
Amortized cost, held to maturity | 17,877 | 19,501 |
Gross unrealized gains, held to maturity | 601 | 767 |
Gross unrealized losses, held to maturity | 58 | 45 |
Estimated fair value, held to maturity | $ 18,420 | $ 20,223 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Loss on Investments, AFS) (Details) - Asset Backed Securities Issued By GSEs [Member] - Available-For-Sale Securities [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Less than 12 months, fair value | $ 2,261 | $ 294 |
More than 12 months, fair value | 22,193 | 26,856 |
Fair value | 24,454 | $ 27,150 |
Less than 12 months, unrealized loss | 14 | |
More than 12 months, unrealized loss | 659 | $ 830 |
Unrealized loss | $ 673 | $ 830 |
Securities (Schedule of Unrea48
Securities (Schedule of Unrealized Loss on Investments, HTM) (Details) - Held-To-Maturity Securities [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 8,207 | $ 14,508 |
Less than 12 months, unrealized loss | 89 | 85 |
More than 12 months, fair value | 20,035 | 22,382 |
More than 12 months, unrealized loss | 674 | 652 |
Total, fair value | 28,242 | 36,890 |
Total, unrealized loss | $ 763 | $ 737 |
Asset Backed Securities Issued By Others [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | ||
Less than 12 months, unrealized loss | ||
More than 12 months, fair value | $ 1,155 | $ 1,291 |
More than 12 months, unrealized loss | 114 | 112 |
Total, fair value | 1,155 | 1,291 |
Total, unrealized loss | 114 | 112 |
Asset Backed Securities Issued By GSEs [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | 8,207 | 14,508 |
Less than 12 months, unrealized loss | 89 | 85 |
More than 12 months, fair value | 18,880 | 21,091 |
More than 12 months, unrealized loss | 560 | 540 |
Total, fair value | 27,087 | 35,599 |
Total, unrealized loss | $ 649 | $ 625 |
Securities (Financing Receivabl
Securities (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 119,224 | $ 121,234 |
Standard Poor's, AAA Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 117,953 | 119,762 |
Standard Poor's, BBB Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 68 | |
Standard Poor's, BB Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | 632 | 695 |
Standard Poor's CCC + Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 639 | $ 709 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | |
Jun. 30, 2015USD ($)loan | Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | Jun. 30, 2015USD ($)loan | Jun. 30, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases receivable, allowance percentage | 0.98% | 0.98% | 0.97% | 0.98% | |
Total number of loans | loan | 37 | 37 | 31 | 37 | |
Total non-accrual loans | $ 13,056,000 | $ 13,056,000 | $ 10,263,000 | $ 13,056,000 | |
Loan portfolio | 895,839,000 | 895,839,000 | 872,129,000 | 895,839,000 | $ 846,258,000 |
Allowance for loan loss | $ 8,757,000 | $ 8,757,000 | $ 8,481,000 | $ 8,757,000 | |
Loans added to troubled debt restructuring | loan | 6 | 15 | |||
Amount of loans added to troubled debt restructuring | $ 2,300,000 | $ 12,000,000 | |||
Number of accruing loans 90 days or greater past due | loan | 0 | 0 | 0 | 0 | |
90 or greater days | $ 13,056,000 | $ 13,056,000 | $ 10,263,000 | $ 13,056,000 | |
Financing Receivable Troubled Debt Restructuring [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Investment income, interest | $ 249,000 | $ 563,000 | |||
Loans removed from troubled debt restructuring | loan | 2 | ||||
Amount of loans removed from troubled debt restructuring | $ 1,600,000 | ||||
Seven Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | loan | 7 | ||||
Reserve of the allowance for loan losses | 447,000 | $ 447,000 | 447,000 | ||
90 or greater days | $ 3,000,000 | $ 3,000,000 | $ 3,000,000 | ||
Five Troubled Debt Restructuring Loans with Reserves [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | loan | 5 | ||||
Reserve of the allowance for loan losses | $ 251,000 | ||||
90 or greater days | 2,500,000 | ||||
Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans and leases receivable, allowance percentage | 80.00% | 80.00% | 80.00% | ||
Loan portfolio | $ 601,270,000 | $ 601,270,000 | $ 561,080,000 | $ 601,270,000 | 531,919,000 |
Percentage status of loan in portfolio | 5.20% | 5.20% | 4.40% | 5.20% | |
90 or greater days | $ 6,119,000 | $ 6,119,000 | $ 3,824,000 | $ 6,119,000 | |
Commercial Real Estate [Member] | Financing Receivable Troubled Debt Restructuring [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans with deferred collection of principal and interest for one year | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Number of accruing loans 90 days or greater past due | loan | 1 | 1 | 1 | ||
90 or greater days | $ 1,000,000 | $ 1,000,000 | $ 1,000,000 | ||
Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 63,480,000 | 63,480,000 | 73,625,000 | 63,480,000 | 77,583,000 |
90 or greater days | 1,472,000 | 1,472,000 | 1,587,000 | 1,472,000 | |
Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 26,804,000 | 26,804,000 | 26,152,000 | 26,804,000 | 25,876,000 |
90 or greater days | 387,000 | 387,000 | 286,000 | 387,000 | |
Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 143,662,000 | 143,662,000 | 152,837,000 | 143,662,000 | $ 156,833,000 |
90 or greater days | 1,158,000 | 1,158,000 | 533,000 | 1,158,000 | |
Adjustable Rate Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 23,400,000 | $ 23,400,000 | $ 23,400,000 | ||
Percentage status of loan in portfolio | 2.60% | 2.60% | 2.60% | ||
Four Loans Representing a Stalled Residential Development Project [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans | loan | 4 | ||||
Nonaccrual loans with deferred collection of principal and interest for one year | $ 3,800,000 | $ 3,800,000 | 3,900,000 | $ 3,800,000 | |
Nonaccrual Loans With No Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | $ 12,300,000 | 12,300,000 | 9,300,000 | $ 12,300,000 | |
Interest due to debt | 898,000 | $ 781,000 | |||
Increase (decrease) in loans | $ 2,800,000 | ||||
Percentage status of loan in portfolio | 1.46% | 1.46% | 1.18% | 1.46% | |
Nonaccrual Loans With Impairment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | $ 802,000 | $ 802,000 | $ 1,000,000 | $ 802,000 | |
Interest due to debt | $ 72,000 | 64,000 | |||
Maximum [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 20 years | ||||
Maximum [Member] | Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 30 years | ||||
Minimum [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Credit quality indicator | 750,000 | $ 750,000 | 750,000 | ||
Minimum [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 3 years | ||||
Minimum [Member] | Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Debt maturity period | 10 years | ||||
Unrated [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 69,819,000 | $ 69,819,000 | 74,955,000 | 69,819,000 | |
Unrated [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 10,349,000 | 10,349,000 | 12,296,000 | 10,349,000 | |
Unrated [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 8,765,000 | 8,765,000 | 7,173,000 | 8,765,000 | |
Pass [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 502,595,000 | 502,595,000 | 451,256,000 | 502,595,000 | |
Pass [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 48,414,000 | 48,414,000 | 53,844,000 | 48,414,000 | |
Pass [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 16,840,000 | 16,840,000 | 18,517,000 | 16,840,000 | |
Special Mention [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 3,078,000 | 3,078,000 | 4,383,000 | 3,078,000 | |
Special Mention [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 49,000 | 49,000 | 49,000 | 49,000 | |
Substandard [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 25,778,000 | 25,778,000 | 30,486,000 | 25,778,000 | |
Substandard [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 4,668,000 | 4,668,000 | 7,436,000 | 4,668,000 | |
Substandard [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | 1,199,000 | 1,199,000 | $ 462,000 | 1,199,000 | |
Substandard [Member] | Eighteen Loans Representing Five Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total non-accrual loans | $ 10,400,000 | $ 10,400,000 | $ 10,400,000 | ||
Percentage status of loan in portfolio | 80.00% | 80.00% | 80.00% | ||
Number of loans | loan | 18 | ||||
Substandard [Member] | Sixteen Loans Representing Six Customer Relationships [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage status of loan in portfolio | 86.00% | ||||
Number of loans | loan | 16 | ||||
Nonaccrual loans with deferred collection of principal and interest for one year | $ 8,800,000 | ||||
Doubtful [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | |||||
Loss [Member] | Commercial Real Estate [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | |||||
Loss [Member] | Commercial Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | |||||
Loss [Member] | Commercial Equipment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | |||||
Performing Financing Receivable [Member] | Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 142,504,000 | $ 142,504,000 | $ 152,304,000 | $ 142,504,000 | |
Nonperforming Financing Receivable [Member] | Residential Mortgage [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan portfolio | $ 1,158,000 | $ 1,158,000 | $ 533,000 | $ 1,158,000 |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 895,839 | $ 872,129 | $ 846,258 |
Less: | |||
Deferred loan fees | 1,168 | 1,239 | |
Allowance for loan loss | 8,757 | 8,481 | |
Loans and leases receivable adjustments | 9,925 | 9,720 | |
Loans and leases receivable net reported amount | 885,914 | 862,409 | |
Commercial Equipment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 26,804 | 26,152 | 25,876 |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 396 | 613 | 736 |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 63,480 | 73,625 | 77,583 |
Home Equity and Second Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 21,068 | 21,452 | 21,225 |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 39,159 | 36,370 | 32,086 |
Residential Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 143,662 | 152,837 | 156,833 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 601,270 | $ 561,080 | $ 531,919 |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) $ in Thousands | Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 13,056 | $ 10,263 |
Total number of loans | 37 | 31 |
Commercial Equipment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 387 | $ 286 |
Total number of loans | 5 | 4 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 1,472 | $ 1,587 |
Total number of loans | 7 | 6 |
Home Equity and Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 366 | $ 399 |
Total number of loans | 5 | 6 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 3,554 | $ 3,634 |
Total number of loans | 2 | 2 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 1,158 | $ 533 |
Total number of loans | 5 | 2 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total non-accrual loans | $ | $ 6,119 | $ 3,824 |
Total number of loans | 13 | 11 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Current | $ 880,638 | $ 860,046 | |
31-60 Days | 221 | 327 | |
61-89 Days | 1,924 | 1,493 | |
90 or greater days | 13,056 | 10,263 | |
Total Past Due | 15,201 | 12,083 | |
Total Loan Receivables | 895,839 | 872,129 | $ 846,258 |
Commercial Equipment [Member] | |||
Current | 26,400 | 25,848 | |
31-60 Days | 17 | 17 | |
61-89 Days | 1 | ||
90 or greater days | 387 | 286 | |
Total Past Due | 404 | 304 | |
Total Loan Receivables | 26,804 | 26,152 | 25,876 |
Consumer Loans [Member] | |||
Current | 396 | 612 | |
31-60 Days | 1 | ||
Total Past Due | 1 | ||
Total Loan Receivables | 396 | 613 | 736 |
Commercial Loans [Member] | |||
Current | 62,008 | 71,952 | |
31-60 Days | 86 | ||
90 or greater days | 1,472 | 1,587 | |
Total Past Due | 1,472 | 1,673 | |
Total Loan Receivables | 63,480 | 73,625 | 77,583 |
Home Equity and Second Mortgage [Member] | |||
Current | 20,456 | 20,939 | |
31-60 Days | 72 | 90 | |
61-89 Days | 174 | 24 | |
90 or greater days | 366 | 399 | |
Total Past Due | 612 | 513 | |
Total Loan Receivables | 21,068 | 21,452 | 21,225 |
Construction and Land Development [Member] | |||
Current | 35,605 | 32,736 | |
90 or greater days | 3,554 | 3,634 | |
Total Past Due | 3,554 | 3,634 | |
Total Loan Receivables | 39,159 | 36,370 | 32,086 |
Residential Mortgage [Member] | |||
Current | 141,971 | 151,375 | |
31-60 Days | 132 | 133 | |
61-89 Days | 401 | 796 | |
90 or greater days | 1,158 | 533 | |
Total Past Due | 1,691 | 1,462 | |
Total Loan Receivables | 143,662 | 152,837 | 156,833 |
Commercial Real Estate [Member] | |||
Current | 593,802 | 556,584 | |
61-89 Days | 1,349 | 672 | |
90 or greater days | 6,119 | 3,824 | |
Total Past Due | 7,468 | 4,496 | |
Total Loan Receivables | $ 601,270 | $ 561,080 | $ 531,919 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Unpaid contractual principal balance | $ 43,469 | $ 32,814 | $ 43,469 | $ 32,814 | $ 50,521 |
Recorded investment with no allowance | 38,464 | 22,848 | 38,464 | 22,848 | 45,587 |
Recorded investment with allowance | 4,739 | 9,918 | 4,739 | 9,918 | 4,122 |
Total recorded investment | 43,203 | 32,766 | 43,203 | 32,766 | 49,709 |
Related allowance | 1,473 | 859 | 1,473 | 859 | 451 |
Average recorded investment | 43,354 | 32,943 | 43,334 | 32,886 | 50,021 |
Interest income recognized | 328 | 287 | 697 | 562 | 1,840 |
Consumer Loans [Member] | |||||
Unpaid contractual principal balance | 5 | 5 | |||
Recorded investment with no allowance | 5 | 5 | |||
Total recorded investment | 5 | 5 | |||
Average recorded investment | 8 | 12 | |||
Interest income recognized | 1 | ||||
Commercial Loans [Member] | |||||
Unpaid contractual principal balance | 5,184 | 5,380 | 5,184 | 5,380 | 7,587 |
Recorded investment with no allowance | 4,499 | 4,800 | 4,499 | 4,800 | 7,030 |
Recorded investment with allowance | 581 | 580 | 581 | 580 | 406 |
Total recorded investment | 5,080 | 5,380 | 5,080 | 5,380 | 7,436 |
Related allowance | 227 | 269 | 227 | 269 | 155 |
Average recorded investment | 5,041 | 5,585 | 5,034 | 5,672 | 7,196 |
Interest income recognized | 44 | 46 | 96 | 93 | 252 |
Commercial Equipment [Member] | |||||
Unpaid contractual principal balance | 1,462 | 399 | 1,462 | 399 | 605 |
Recorded investment with no allowance | 292 | 212 | 292 | 212 | 373 |
Recorded investment with allowance | 1,097 | 168 | 1,097 | 168 | 213 |
Total recorded investment | 1,389 | 380 | 1,389 | 380 | 586 |
Related allowance | 1,021 | 90 | 1,021 | 90 | 123 |
Average recorded investment | 1,401 | 381 | 1,407 | 392 | 623 |
Interest income recognized | 12 | 4 | 26 | 8 | 23 |
Home Equity and Second Mortgage [Member] | |||||
Unpaid contractual principal balance | 488 | 403 | 488 | 403 | 708 |
Recorded investment with no allowance | 429 | 330 | 429 | 330 | 649 |
Recorded investment with allowance | 73 | 73 | |||
Total recorded investment | 429 | 403 | 429 | 403 | 649 |
Related allowance | 33 | 33 | |||
Average recorded investment | 434 | 378 | 437 | 335 | 630 |
Interest income recognized | 2 | 2 | 6 | 2 | 19 |
Construction and Land Development [Member] | |||||
Unpaid contractual principal balance | 4,329 | 6,049 | 4,329 | 6,049 | 6,402 |
Recorded investment with no allowance | 4,329 | 1,799 | 4,329 | 1,799 | 6,102 |
Recorded investment with allowance | 4,250 | 4,250 | |||
Total recorded investment | 4,329 | 6,049 | 4,329 | 6,049 | 6,102 |
Related allowance | 81 | 81 | |||
Average recorded investment | 4,382 | 6,015 | 4,285 | 5,916 | 6,474 |
Interest income recognized | 4 | 28 | 7 | 56 | 133 |
Residential Mortgage [Member] | |||||
Unpaid contractual principal balance | 3,996 | 3,078 | 3,996 | 3,078 | 3,407 |
Recorded investment with no allowance | 3,491 | 2,559 | 3,491 | 2,559 | 2,526 |
Recorded investment with allowance | 505 | 519 | 505 | 519 | 881 |
Total recorded investment | 3,996 | 3,078 | 3,996 | 3,078 | 3,407 |
Related allowance | 75 | 75 | 75 | 75 | 76 |
Average recorded investment | 4,006 | 3,103 | 4,016 | 3,113 | 3,426 |
Interest income recognized | 34 | 35 | 74 | 70 | 155 |
Commercial Real Estate [Member] | |||||
Unpaid contractual principal balance | 28,010 | 17,500 | 28,010 | 17,500 | 31,812 |
Recorded investment with no allowance | 25,424 | 13,143 | 25,424 | 13,143 | 28,907 |
Recorded investment with allowance | 2,556 | 4,328 | 2,556 | 4,328 | 2,622 |
Total recorded investment | 27,980 | 17,471 | 27,980 | 17,471 | 31,529 |
Related allowance | 150 | 311 | 150 | 311 | 97 |
Average recorded investment | 28,090 | 17,473 | 28,155 | 17,446 | 31,672 |
Interest income recognized | $ 232 | $ 172 | $ 488 | $ 332 | $ 1,258 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing receivable post modification recorded investment | $ | $ 18,685 | $ 18,136 |
Number of TDR loans | 28 | 24 |
Commercial Equipment [Member] | ||
Financing receivable post modification recorded investment | $ | $ 140 | $ 154 |
Number of TDR loans | 2 | 2 |
Commercial Loans [Member] | ||
Financing receivable post modification recorded investment | $ | $ 1,084 | $ 2,262 |
Number of TDR loans | 7 | 6 |
Construction and Land Development [Member] | ||
Financing receivable post modification recorded investment | $ | $ 4,329 | $ 4,376 |
Number of TDR loans | 4 | 4 |
Residential Mortgage [Member] | ||
Financing receivable post modification recorded investment | $ | $ 895 | $ 906 |
Number of TDR loans | 3 | 3 |
Commercial Real Estate [Member] | ||
Financing receivable post modification recorded investment | $ | $ 12,237 | $ 10,438 |
Number of TDR loans | 12 | 9 |
Accrual Loans [Member] | ||
Financing receivable post modification recorded investment | $ | $ 13,908 | $ 13,249 |
Number of TDR loans | 23 | 19 |
Non-Accrual Loans [Member] | ||
Non-accrual financing receivable post modification recorded investment | $ | $ (4,777) | $ (4,887) |
Number of non-accrual financing receivable post modification recorded investment | (5) | (5) |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Allowance for loan losses: | |||||
Beginning Balance | $ 8,621 | $ 8,197 | $ 8,481 | $ 8,138 | $ 8,138 |
Charge-offs | (299) | (748) | (345) | (898) | (2,642) |
Recoveries | 43 | 38 | 51 | 44 | 332 |
Provisions | 392 | 563 | 570 | 766 | 2,653 |
Ending Balance | 8,757 | 8,050 | 8,757 | 8,050 | 8,481 |
Ending balance: individually evaluated for impairment | 1,473 | 859 | 1,473 | 859 | 451 |
Ending balance: collectively evaluated for impairment | 7,284 | 7,191 | 7,284 | 7,191 | 8,030 |
Loan receivables: | |||||
Loans | 895,839 | 846,258 | 895,839 | 846,258 | 872,129 |
Ending balance: individually evaluated for impairment | 43,203 | 32,766 | 43,203 | 32,766 | 49,709 |
Ending balance: collectively evaluated for impairment | 852,636 | 813,492 | 852,636 | 813,492 | 822,420 |
Commercial Equipment [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 320 | 293 | 389 | 453 | 453 |
Charge-offs | (54) | (54) | (10) | ||
Recoveries | 1 | 24 | 4 | 24 | 25 |
Provisions | 967 | 71 | 895 | (89) | (79) |
Ending Balance | 1,234 | 388 | 1,234 | 388 | 389 |
Ending balance: individually evaluated for impairment | 1,021 | 90 | 1,021 | 90 | 123 |
Ending balance: collectively evaluated for impairment | 213 | 298 | 213 | 298 | 266 |
Loan receivables: | |||||
Loans | 26,804 | 25,876 | 26,804 | 25,876 | 26,152 |
Ending balance: individually evaluated for impairment | 1,389 | 380 | 1,389 | 380 | 586 |
Ending balance: collectively evaluated for impairment | 25,415 | 25,496 | 25,415 | 25,496 | 25,566 |
Commercial Loans [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 1,740 | 2,115 | 1,677 | 1,916 | 1,916 |
Charge-offs | (215) | (720) | (215) | (755) | (1,134) |
Recoveries | 6 | 2 | 7 | 3 | 5 |
Provisions | (165) | 338 | (103) | 571 | 890 |
Ending Balance | 1,366 | 1,735 | 1,366 | 1,735 | 1,677 |
Ending balance: individually evaluated for impairment | 227 | 269 | 227 | 269 | 155 |
Ending balance: collectively evaluated for impairment | 1,139 | 1,466 | 1,139 | 1,466 | 1,522 |
Loan receivables: | |||||
Loans | 63,480 | 77,583 | 63,480 | 77,583 | 73,625 |
Ending balance: individually evaluated for impairment | 5,080 | 5,380 | 5,080 | 5,380 | 7,436 |
Ending balance: collectively evaluated for impairment | 58,400 | 72,203 | 58,400 | 72,203 | 66,189 |
Consumer Loans [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 2 | 6 | 3 | 10 | 10 |
Charge-offs | (3) | ||||
Recoveries | 10 | 10 | 11 | ||
Provisions | (12) | (1) | (16) | (15) | |
Ending Balance | 2 | 4 | 2 | 4 | 3 |
Ending balance: collectively evaluated for impairment | 2 | 4 | 2 | 4 | 3 |
Loan receivables: | |||||
Loans | 396 | 736 | 396 | 736 | 613 |
Ending balance: individually evaluated for impairment | 5 | 5 | |||
Ending balance: collectively evaluated for impairment | 396 | 731 | 396 | 731 | 613 |
Home Equity and Second Mortgage [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 208 | 340 | 173 | 249 | 249 |
Charge-offs | (59) | ||||
Recoveries | 10 | ||||
Provisions | (2) | (57) | 33 | 34 | (27) |
Ending Balance | 206 | 283 | 206 | 283 | 173 |
Ending balance: individually evaluated for impairment | 33 | 33 | |||
Ending balance: collectively evaluated for impairment | 206 | 250 | 206 | 250 | 173 |
Loan receivables: | |||||
Loans | 21,068 | 21,225 | 21,068 | 21,225 | 21,452 |
Ending balance: individually evaluated for impairment | 429 | 403 | 429 | 403 | 649 |
Ending balance: collectively evaluated for impairment | 20,639 | 20,822 | 20,639 | 20,822 | 20,803 |
Construction and Land Development [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 1,099 | 561 | 1,071 | 584 | 584 |
Charge-offs | (992) | ||||
Recoveries | 32 | 32 | 84 | ||
Provisions | 74 | 12 | 102 | (11) | 1,395 |
Ending Balance | 1,205 | 573 | 1,205 | 573 | 1,071 |
Ending balance: individually evaluated for impairment | 81 | 81 | |||
Ending balance: collectively evaluated for impairment | 1,205 | 492 | 1,205 | 492 | 1,071 |
Loan receivables: | |||||
Loans | 39,159 | 32,086 | 39,159 | 32,086 | 36,370 |
Ending balance: individually evaluated for impairment | 4,329 | 6,049 | 4,329 | 6,049 | 6,102 |
Ending balance: collectively evaluated for impairment | 34,830 | 26,037 | 34,830 | 26,037 | 30,268 |
Residential Mortgage [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 904 | 1,272 | 1,092 | 1,401 | 1,401 |
Charge-offs | (30) | (30) | (94) | (94) | |
Recoveries | 1 | 186 | |||
Provisions | 11 | (182) | (178) | (217) | (401) |
Ending Balance | 885 | 1,090 | 885 | 1,090 | 1,092 |
Ending balance: individually evaluated for impairment | 75 | 75 | 75 | 75 | 76 |
Ending balance: collectively evaluated for impairment | 810 | 1,015 | 810 | 1,015 | 1,016 |
Loan receivables: | |||||
Loans | 143,662 | 156,833 | 143,662 | 156,833 | 152,837 |
Ending balance: individually evaluated for impairment | 3,996 | 3,078 | 3,996 | 3,078 | 3,407 |
Ending balance: collectively evaluated for impairment | 139,666 | 153,755 | 139,666 | 153,755 | 149,430 |
Commercial Real Estate [Member] | |||||
Allowance for loan losses: | |||||
Beginning Balance | 4,348 | 3,610 | 4,076 | 3,525 | 3,525 |
Charge-offs | (28) | (46) | (49) | (350) | |
Recoveries | 4 | 2 | 7 | 7 | 11 |
Provisions | (493) | 393 | (178) | 494 | 890 |
Ending Balance | 3,859 | 3,977 | 3,859 | 3,977 | 4,076 |
Ending balance: individually evaluated for impairment | 150 | 311 | 150 | 311 | 97 |
Ending balance: collectively evaluated for impairment | 3,709 | 3,666 | 3,709 | 3,666 | 3,979 |
Loan receivables: | |||||
Loans | 601,270 | 531,919 | 601,270 | 531,919 | 561,080 |
Ending balance: individually evaluated for impairment | 27,980 | 17,471 | 27,980 | 17,471 | 31,529 |
Ending balance: collectively evaluated for impairment | $ 573,290 | $ 514,448 | $ 573,290 | $ 514,448 | $ 529,551 |
Loans (Schedule of Financing 57
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 |
Loans | $ 895,839 | $ 872,129 | $ 846,258 |
Commercial Equipment [Member] | |||
Loans | 26,804 | 26,152 | 25,876 |
Commercial Equipment [Member] | Unrated [Member] | |||
Loans | 8,765 | 7,173 | |
Commercial Equipment [Member] | Pass [Member] | |||
Loans | 16,840 | 18,517 | |
Commercial Equipment [Member] | Substandard [Member] | |||
Loans | $ 1,199 | $ 462 | |
Commercial Equipment [Member] | Loss [Member] | |||
Loans | |||
Commercial Loans [Member] | |||
Loans | $ 63,480 | $ 73,625 | 77,583 |
Commercial Loans [Member] | Unrated [Member] | |||
Loans | 10,349 | 12,296 | |
Commercial Loans [Member] | Pass [Member] | |||
Loans | 48,414 | 53,844 | |
Commercial Loans [Member] | Special Mention [Member] | |||
Loans | 49 | 49 | |
Commercial Loans [Member] | Substandard [Member] | |||
Loans | $ 4,668 | $ 7,436 | |
Commercial Loans [Member] | Loss [Member] | |||
Loans | |||
Consumer Loans [Member] | |||
Loans | $ 396 | $ 613 | 736 |
Consumer Loans [Member] | Performing Financing Receivable [Member] | |||
Loans | 396 | 613 | |
Home Equity and Second Mortgage [Member] | |||
Loans | 21,068 | 21,452 | 21,225 |
Home Equity and Second Mortgage [Member] | Performing Financing Receivable [Member] | |||
Loans | 20,702 | 21,053 | |
Home Equity and Second Mortgage [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 366 | 399 | |
Residential Mortgage [Member] | |||
Loans | 143,662 | 152,837 | 156,833 |
Residential Mortgage [Member] | Performing Financing Receivable [Member] | |||
Loans | 142,504 | 152,304 | |
Residential Mortgage [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 1,158 | 533 | |
Construction and Land Development [Member] | |||
Loans | 39,159 | 36,370 | 32,086 |
Construction and Land Development [Member] | Unrated [Member] | |||
Loans | 6,607 | 3,108 | |
Construction and Land Development [Member] | Pass [Member] | |||
Loans | 28,223 | 27,160 | |
Construction and Land Development [Member] | Substandard [Member] | |||
Loans | $ 4,329 | $ 6,102 | |
Construction and Land Development [Member] | Doubtful [Member] | |||
Loans | |||
Construction and Land Development [Member] | Loss [Member] | |||
Loans | |||
Commercial Real Estate [Member] | |||
Loans | $ 601,270 | $ 561,080 | $ 531,919 |
Commercial Real Estate [Member] | Unrated [Member] | |||
Loans | 69,819 | 74,955 | |
Commercial Real Estate [Member] | Pass [Member] | |||
Loans | 502,595 | 451,256 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Loans | 3,078 | 4,383 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Loans | $ 25,778 | $ 30,486 | |
Commercial Real Estate [Member] | Doubtful [Member] | |||
Loans | |||
Commercial Real Estate [Member] | Loss [Member] | |||
Loans | |||
Classified Loans [Member] | |||
Loans | $ 37,439 | $ 46,735 | |
Classified Loans [Member] | Classified Loans By Internally Assigned Grade [Member] | |||
Loans | 35,974 | 44,486 | |
Classified Loans [Member] | Classified Loans By Payment Activity [Member] | |||
Loans | $ 1,465 | $ 2,249 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
Regulatory Assets | ||||||
Total stockholders' equity | $ 99,084 | $ 116,559 | ||||
Accumulated other comprehensive losses (gains) | 300 | $ 100 | 378 | $ 895 | $ 1,139 | $ 1,057 |
Common equity Tier 1 capital | 99,384 | 116,937 | ||||
TRUPs | 12,000 | 12,000 | ||||
Tier 1 capital | 111,384 | 128,937 | ||||
Allowable reserve for credit losses other | 8,757 | 8,537 | ||||
Subordinated notes | 23,000 | |||||
Tier 2 capital | 143,141 | 137,474 | ||||
Risk-weighted assets ("RWA") | 956,159 | 903,931 | ||||
Average Assets ("AA") | $ 1,085,573 | $ 1,053,424 | ||||
Common Tier 1 capital to RWA | 10.39% | 12.94% | ||||
Tier 1 capital to RWA | 11.65% | 14.26% | ||||
Tier 2 capital to RWA | 14.97% | 15.21% | ||||
Tier 1 capital to AA (leverage) | 10.26% | 12.24% | ||||
Common Stock [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | $ 99,084 | $ 96,559 | ||||
Preferred Stock, Senior Non-Cumulative Perpetual, Series C [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | 20,000 | |||||
Bank [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | 130,922 | 126,838 | ||||
Accumulated other comprehensive losses (gains) | 300 | 378 | ||||
Common equity Tier 1 capital | 131,222 | 127,216 | ||||
Tier 1 capital | 131,222 | 127,216 | ||||
Allowable reserve for credit losses other | 8,757 | 8,537 | ||||
Tier 2 capital | 139,979 | 135,753 | ||||
Risk-weighted assets ("RWA") | 953,552 | 902,136 | ||||
Average Assets ("AA") | $ 1,082,973 | $ 1,051,627 | ||||
Common Tier 1 capital to RWA | 13.76% | 14.10% | ||||
Tier 1 capital to RWA | 13.76% | 14.10% | ||||
Tier 2 capital to RWA | 14.68% | 15.05% | ||||
Tier 1 capital to AA (leverage) | 12.12% | 12.10% | ||||
Bank [Member] | Common Stock [Member] | ||||||
Regulatory Assets | ||||||
Total stockholders' equity | $ 130,922 | $ 126,838 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loans with impairment, unpaid principal | $ 4,739,000 | $ 4,122,000 | $ 9,918,000 |
Fair value transfers | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets, fair value | 0 | 0 | |
Liabilities, fair value | $ 0 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 0 | $ 0 |
Available-For-Sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 38,378,000 | 41,939,000 |
Available-For-Sale Securities [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 33,959,000 | 37,541,000 |
Available-For-Sale Securities [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 30,000 | 37,000 |
Available-For-Sale Securities [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 40,000 | 40,000 |
Available-For-Sale Securities [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 4,349,000 | $ 4,321,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 38,378,000 | $ 41,939,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 33,959,000 | 37,541,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 30,000 | 37,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | 40,000 | 40,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | $ 4,349,000 | $ 4,321,000 |
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value | ||
Available-For-Sale Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Bond Mutual Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value |
Fair Value Measurements (Fair61
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 6,422 | $ 5,883 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 6,422 | $ 5,883 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 3,266 | $ 3,670 |
Loans With Impairment [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 2,406 | 2,524 |
Loans With Impairment [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 430 | 805 |
Loans With Impairment [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 354 | 251 |
Loans With Impairment [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 76 | $ 90 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 1 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 3,266 | $ 3,670 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 2,406 | 2,524 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 430 | 805 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 354 | 251 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 76 | $ 90 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Residential Mortgage [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Loans With Impairment [Member] | Fair Value, Inputs, Level 3 [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring |
Fair Value of Financial Instr62
Fair Value of Financial Instruments (Narrative) (Details) $ in Millions | Jun. 30, 2015USD ($) |
Fair Value of Financial Instruments [Abstract] | |
Loans commitments | $ 55.7 |
Letters of credit outstanding, amount | $ 18 |
Fair Value of Financial Instr63
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Investment securities - AFS, carrying amount | $ 38,378 | $ 41,939 |
Investment securities - HTM, carrying amount | 85,985 | 84,506 |
Federal Home Loan Bank and Federal Reserve stock, carrying amount | 6,550 | 6,434 |
Loans, carrying amount | 885,914 | 862,409 |
Investment in BOLI, carrying amount | 27,432 | 27,021 |
Securities available for sale (AFS), at fair value | 38,378 | 41,939 |
Investment securities - HTM, fair value | 86,215 | 84,915 |
Federal Home Loan Bank and Federal Reserve stock, fair value | 6,550 | 6,434 |
Loans, fair value | 889,088 | 861,427 |
Investments in BOLI, fair value | 27,432 | 27,021 |
Liabilities | ||
Savings, NOW and money market accounts, carrying amount | 511,294 | 483,973 |
Time deposits, carrying amount | 389,091 | 385,411 |
Long-term debt, carrying amount | 70,645 | 74,672 |
Short term borrowings, carrying amount | 12,000 | 2,000 |
Guaranteed preferred beneficial interest in junior subordinated debentures, carrying amount | 12,000 | 12,000 |
Subordinated notes, carrying amount | 23,000 | |
Savings, NOW and money market accounts, fair value | 511,294 | 483,973 |
Time deposits, fair value | 389,983 | 386,510 |
Long-term debt, fair value | 72,996 | 77,919 |
Short term borrowings, fair value | 12,004 | 2,000 |
Guaranteed preferred beneficial interest in junior subordinated debentures, fair value | 8,200 | 7,400 |
Subordinated notes, fair value | 23,000 | |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Investment securities - HTM, fair value | $ 750 | 850 |
Loans, fair value | ||
Liabilities | ||
Savings, NOW and money market accounts, fair value | ||
Time deposits, fair value | ||
Long-term debt, fair value | ||
Short term borrowings, fair value | ||
Guaranteed preferred beneficial interest in junior subordinated debentures, fair value | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Investment securities - AFS, carrying amount | $ 38,378 | 41,939 |
Securities available for sale (AFS), at fair value | 38,378 | 41,939 |
Investment securities - HTM, fair value | 85,465 | 84,065 |
Federal Home Loan Bank and Federal Reserve stock, fair value | 6,550 | 6,434 |
Loans, fair value | 889,088 | 861,427 |
Investments in BOLI, fair value | 27,432 | 27,021 |
Liabilities | ||
Savings, NOW and money market accounts, fair value | 511,294 | 483,973 |
Time deposits, fair value | 389,983 | 386,510 |
Long-term debt, fair value | 72,996 | 77,919 |
Short term borrowings, fair value | 12,004 | 2,000 |
Guaranteed preferred beneficial interest in junior subordinated debentures, fair value | 8,200 | $ 7,400 |
Subordinated notes, fair value | $ 23,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Loans, fair value | ||
Liabilities | ||
Savings, NOW and money market accounts, fair value | ||
Time deposits, fair value | ||
Long-term debt, fair value | ||
Short term borrowings, fair value | ||
Guaranteed preferred beneficial interest in junior subordinated debentures, fair value |