Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 03, 2016 | Jun. 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 Public Float | $ 84.2 | ||
Entity Common Stock Shares Outstanding | 4,652,292 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 9,059 | $ 17,275 |
Federal funds sold | 225 | 965 |
Interest-bearing deposits with banks | 1,855 | 3,133 |
Securities available for sale (AFS), at fair value | 35,116 | 41,939 |
Securities held to maturity (HTM), at amortized cost | 109,420 | 84,506 |
Federal Home Loan Bank (FHLB) and Federal Reserve Bank (FRB) stock - at cost | 6,931 | 6,434 |
Loans receivable - net of allowance for loan losses of $8,540 and $8,481 | 909,200 | 862,409 |
Premises and equipment, net | 20,156 | 20,586 |
Premises and equipment held for sale | 2,000 | |
Other real estate owned (OREO) | 9,449 | 5,883 |
Accrued interest receivable | 3,218 | 3,036 |
Investment in bank owned life insurance | 27,836 | 27,021 |
Other assets | 8,867 | 9,691 |
Total assets | 1,143,332 | 1,082,878 |
Liabilities and Stockholders' Equity | ||
Non-interest-bearing deposits | 142,771 | 122,195 |
Interest-bearing deposits | 764,128 | 747,189 |
Total deposits | 906,899 | 869,384 |
Short-term borrowings | 36,000 | 2,000 |
Long-term debt | 55,617 | 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 | 10,033 | 8,263 |
Total liabilities | 1,043,549 | 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 December 31, 2015 | 20,000 | |
Common stock - par value $.01; authorized - 15,000,000 shares; issued 4,645,429 and 4,702,715 shares, respectively | 46 | 47 |
Additional paid in capital | 46,809 | 46,416 |
Retained earnings | 53,495 | 50,936 |
Accumulated other comprehensive loss | (251) | (378) |
Unearned ESOP shares | (316) | (462) |
Total stockholders' equity | 99,783 | 116,559 |
Total liabilities and stockholders' equity | $ 1,143,332 | $ 1,082,878 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Financial Position [Abstract] | ||
Loans receivable, allowance for loan losses (in dollars) | $ 8,540 | $ 8,481 |
Subordinated notes interest rate | 6.25% | 6.25% |
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 | 4,645,429 | 4,702,715 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and Dividend Income | |||
Loans, including fees | $ 41,386,000 | $ 39,475,000 | $ 37,196,000 |
Taxable interest and dividends on investment securities | 2,473,000 | 2,270,000 | 2,466,000 |
Interest on deposits with banks | 14,000 | 14,000 | 16,000 |
Total interest and dividend income | 43,873,000 | 41,759,000 | 39,678,000 |
Interest Expense | |||
Deposits | 4,152,000 | 4,586,000 | 5,581,000 |
Short-term borrowings | 37,000 | 12,000 | 14,000 |
Long-term debt | 3,156,000 | 2,100,000 | 2,051,000 |
Total interest expense | 7,345,000 | 6,698,000 | 7,646,000 |
Net interest income | 36,528,000 | 35,061,000 | 32,032,000 |
Provision for loan losses | 1,433,000 | 2,653,000 | 940,000 |
Net interest income after provision for loan losses | 35,095,000 | 32,408,000 | 31,092,000 |
Noninterest Income | |||
Loan appraisal, credit, and miscellaneous charges | 315,000 | 368,000 | 391,000 |
Gain on sale of asset | 19,000 | 7,000 | 11,000 |
Net (losses) gains on sale of OREO | (20,000) | 322,000 | 179,000 |
Net (losses) gains on sale of investment securities | 4,000 | 19,000 | |
Loss on premises and equipment held for sale | (426,000) | ||
Income from bank owned life insurance | 815,000 | 671,000 | 620,000 |
Service charges | 2,488,000 | 2,213,000 | 2,346,000 |
Gain on sale of loans held for sale | 104,000 | 493,000 | 627,000 |
Total noninterest income | 3,299,000 | 4,093,000 | 4,174,000 |
Noninterest Expense | |||
Salary and employee benefits | 16,366,000 | 15,851,000 | 14,521,000 |
Occupancy expense | 2,427,000 | 2,371,000 | 2,139,000 |
Advertising | 583,000 | 545,000 | 477,000 |
Data processing expense | 2,044,000 | 1,556,000 | 1,289,000 |
Professional fees | 1,323,000 | 1,129,000 | 1,095,000 |
Depreciation of furniture, fixtures, and equipment | 810,000 | 753,000 | 765,000 |
Telephone communications | 188,000 | 185,000 | 200,000 |
Office supplies | 157,000 | 204,000 | 226,000 |
FDIC insurance | 799,000 | 709,000 | 1,115,000 |
OREO valuation allowance and expenses | 1,059,000 | 386,000 | 787,000 |
Other | 2,662,000 | 2,546,000 | 2,230,000 |
Total noninterest expense | 28,418,000 | 26,235,000 | 24,844,000 |
Income before income taxes | 9,976,000 | 10,266,000 | 10,422,000 |
Income tax expense | 3,633,000 | 3,776,000 | 3,771,000 |
Net income | 6,343,000 | 6,490,000 | 6,651,000 |
Preferred stock dividends | 23,000 | 200,000 | 200,000 |
Net income available to common shareholders | $ 6,320,000 | $ 6,290,000 | $ 6,451,000 |
Earnings Per Common Share | |||
Basic (in dollars per share) | $ 1.36 | $ 1.35 | $ 1.90 |
Diluted (in dollars per share) | 1.35 | 1.35 | 1.88 |
Cash dividends paid per common share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 6,343 | $ 6,490 | $ 6,651 |
Net unrealized holding gains (losses) arising during period, net of tax expense (benefit) of $85, $300 and $(617), respectively | 131 | 681 | $ (1,196) |
Reclasssification adjustment for losses included in net income, net of tax benefit of $2, $1 and $0), respectively | (4) | (2) | |
Comprehensive income | $ 6,470 | $ 7,169 | $ 5,455 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net unrealized holding gains (losses) arising during period, tax effect | $ 85 | $ 300 | $ (617) |
Reclassification adjustments, tax effect | $ (2) | $ (1) | $ 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Unearned ESOP Shares [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Additional Paid-In Capital [Member] | Common Stock [Member] | SBLF Preferred Stock [Member] | Total |
Balance at Dec. 31, 2012 | $ (983) | $ 139 | $ 41,987 | $ 17,874 | $ 30 | $ 20,000 | $ 79,047 |
Comprehensive Income | |||||||
Net income | 6,651 | 6,651 | |||||
Unrealized holding loss on investment securities net of tax benefit | (1,203) | (1,203) | |||||
Other than temporary impairment amortization on HTM securities net of tax | 7 | 7 | |||||
Comprehensive income | 5,455 | ||||||
Cash dividend at $0.40 per common share | (1,379) | (1,379) | |||||
Preferred stock dividends | (200) | (200) | |||||
Proceeds from public offering | 27,371 | 16 | 27,387 | ||||
Exercise of stock options | 317 | 317 | |||||
Net change in unearned ESOP shares | 320 | 320 | |||||
Repurchase of common stock | (536) | (536) | |||||
Stock based compensation | 249 | 249 | |||||
Tax effect of exercise of stock based compensation | 35 | 35 | |||||
Tax effect of the ESOP dividend | 35 | 35 | |||||
Balance at Dec. 31, 2013 | (663) | (1,057) | 46,523 | 45,881 | 46 | 20,000 | 110,730 |
Comprehensive Income | |||||||
Net income | 6,490 | 6,490 | |||||
Unrealized holding loss on investment securities net of tax benefit | 541 | 541 | |||||
Other than temporary impairment amortization on HTM securities net of tax | 138 | 138 | |||||
Comprehensive income | 7,169 | ||||||
Cash dividend at $0.40 per common share | (1,855) | (1,855) | |||||
Preferred stock dividends | (200) | (200) | |||||
Dividend reinvestment | (22) | 22 | |||||
Exercise of stock options | 225 | 1 | 226 | ||||
Net change in unearned ESOP shares | 201 | 201 | |||||
Stock based compensation | 182 | 182 | |||||
Tax effect of exercise of stock based compensation | 71 | 71 | |||||
Tax effect of the ESOP dividend | 35 | 35 | |||||
Balance at Dec. 31, 2014 | (462) | (378) | 50,936 | 46,416 | 47 | 20,000 | 116,559 |
Comprehensive Income | |||||||
Net income | 6,343 | 6,343 | |||||
Unrealized holding loss on investment securities net of tax benefit | 127 | 127 | |||||
Comprehensive income | 6,470 | ||||||
Cash dividend at $0.40 per common share | (1,843) | (1,843) | |||||
Preferred stock dividends | (73) | (73) | |||||
Dividend reinvestment | (42) | 42 | |||||
Net change in unearned ESOP shares | 146 | 146 | |||||
Repurchase of common stock | (1,826) | (1) | (1,827) | ||||
Stock based compensation | 319 | 319 | |||||
Tax effect of the ESOP dividend | 32 | 32 | |||||
Balance at Dec. 31, 2015 | $ (316) | $ (251) | $ 53,495 | $ 46,809 | $ 46 | 99,783 | |
Comprehensive Income | |||||||
Redemptin of SBLF Loan | $ (20,000) | $ (20,000) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement Of Stockholders' Equity [Abstract] | |||
Net unrealized holding gains (losses) arising during period, tax effect | $ 83 | $ 238 | $ 620 |
Tax on reclassification adjustment for non credit portion of other than temporary impairment | $ 61 | $ 3 | |
Common stock, dividends, per share, cash paid | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | |||
Net income | $ 6,343 | $ 6,490 | $ 6,651 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for loan losses | 1,433 | 2,653 | 940 |
Depreciation and amortization | 1,439 | 1,299 | 1,274 |
Provision for loss on premises held for sale | 426 | ||
Loans originated for resale | (4,192) | (13,579) | (23,283) |
Proceeds from sale of loans originated for sale | 4,296 | 13,990 | 23,773 |
Gain on sale of loans held for sale | (104) | (493) | (627) |
Net loss (gains) on the sale of OREO | 20 | (322) | (179) |
Losses (gains) on sales of HTM investment securities | 1 | (11) | |
Gains on sales of AFS investment securities | (5) | (8) | |
Gain on sale of asset | (19) | (7) | (11) |
Net amortization of premium/discount on investment securities | 245 | 344 | 540 |
Increase in OREO valuation allowance | 664 | 234 | 601 |
Increase in cash surrender of bank owned life insurance | (815) | (671) | (620) |
Increase (decrease) in deferred income tax benefit | (750) | 1,138 | (117) |
Increase in accrued interest receivable | (182) | (62) | (70) |
Stock based compensation | 319 | 191 | 216 |
Decrease (increase) in deferred loan fees | 85 | 265 | 307 |
Increase (decrease) in accrued expenses and other liabilities | 1,770 | (1,060) | 489 |
Decrease (increase) in other assets | 1,523 | 242 | (1,377) |
Net cash provided by operating activities | 12,497 | 10,633 | 8,507 |
Cash Flows from Investing Activities | |||
Purchase of AFS investment securities | (2,084) | (3,253) | (13,517) |
Proceeds from redemption or principal payments of AFS investment securities | 8,986 | 8,111 | 10,476 |
Purchase of HTM investment securities | (42,949) | (16,230) | (11,683) |
Proceeds from maturities or principal payments of HTM investment securities | 17,860 | 14,020 | 37,551 |
Net increase of FHLB and FRB stock | (497) | (842) | (117) |
Purchase of bank owned life insurance policies | (7,000) | ||
Loans originated or acquired | (258,844) | (261,971) | (275,037) |
Principal collected on loans | 205,100 | 193,113 | 220,810 |
Purchase of premises and equipment | (3,450) | (2,355) | (1,035) |
Proceeds from sale of OREO | 1,184 | 3,742 | 1,300 |
Proceeds from sale of HTM investment securities | 66 | 4,153 | |
Proceeds from sale of AFS investment securities | 2,056 | ||
Proceeds from disposal of asset | 34 | 20 | 11 |
Net cash used in investing activities | (74,594) | (66,436) | (31,241) |
Cash Flows from Financing Activities | |||
Net increase (decrease) in deposits | 37,515 | 48,089 | 1,064 |
Proceeds from long-term debt | 5,000 | 15,000 | |
Payments of long-term debt | (19,055) | (804) | (5,051) |
Net increase in short term borrowings | 34,000 | 2,000 | (1,000) |
Exercise of stock options | 226 | 317 | |
Proceeds from public offering | 27,387 | ||
Proceeds from subordinated notes | 23,000 | ||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | ||
Dividends paid | (1,916) | (2,055) | (1,579) |
Net change in unearned ESOP shares | 146 | 201 | 355 |
Repurchase of common stock | (1,827) | (536) | |
Net cash provided by financing activities | 51,863 | 52,657 | 35,957 |
Decrease in Cash and Cash Equivalents | (10,234) | (3,146) | 13,223 |
Cash and cash equivalents - January 1 | 21,373 | 24,519 | 11,296 |
Cash and cash equivalents - December 31 | 11,139 | 21,373 | 24,519 |
Supplemental Disclosures of Cash Flow Information | |||
Interest | 6,799 | 6,661 | 7,648 |
Income taxes | 3,604 | 3,732 | 4,069 |
Supplemental Schedule of Non-Cash Operating Activities | |||
Issuance of common stock for payment of compensation | 319 | 182 | 249 |
Transfer from loans to OREO | 5,436 | 2,742 | $ 1,852 |
Transfer from premises and equipment to premises and equipment held for sale | $ 2,426 | ||
Transfer of OREO to loans | $ 1,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation 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 (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. Reclassification Certain reclassifications have been made in the Consolidated Financial Statements for 2014 to conform to the classification presented in 2015. Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Annapolis, Maryland, 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 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’s second branch in Fredericksburg is scheduled to open during the first quarter of 2016. The Company agreed to sell its King George, Virginia branch building and equipment to a credit union. The transaction closed in the first quarter of 2016. The Company’s 2015 operating results reflect the financial impact of the transaction. See Note 10 for additional information. Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the evaluation of other-than-temporary impairment on debt securities, and the valuation of OREO and deferred tax assets. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the Fredericksburg area of Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 5 and 6 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2015, 2014 and 2013. Securities not classified as held to maturity or trading securities, including equity securities with readily determinable fair values, are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Reserve Bank as a condition of membership and the Federal Home Loan Bank based upon levels of borrowings. Debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary impairment (“OTTI”). The term other-than-temporary is not necessarily intended to indicate a permanent decline in value. It means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Under accounting guidance, for recognition and presentation of other-than-temporary impairments the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security. The discount rate used to determine the credit loss is the expected book yield on the security. The Company does not evaluate declines in the value of securities of Government Sponsored Enterprises (“GSEs”) or investments backed by the full faith and credit of the United States government (e.g. US Treasury Bills), for other-than-temporary impairment. Loans Held for Sale Residential mortgage loans intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. The Company exited the residential mortgage origination line of business in April 2015 for individual owner occupied residential first mortgages and established third party sources to supply its residential whole loan portfolio. The Company continues to underwrite non-owner occupied residential loans. T he Company may sell certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best efforts basis. The Bank had no loans held for sale at December 31, 2015 and 2014, respectively. Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. A substantial portion of the loan portfolio is comprised of loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Interest is recognized on non-accrual loans on a cash-basis. Consumer loans are typically charged-off no later than 90 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses and Impaired Loans The allowance for loan losses is established as probable losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the composition and size of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of a general and a specific component. The general component is based upon historical loss experience and a review of qualitative risk factors by portfolio segment (See Note 5 for a description of portfolio segments). The historical loss experience factor is tracked over various time horizons for each portfolio segment. It is weighted as the most important factor of the general component of the allowance. The Company considers qualitative factors in addition to the loss experience factor. These include trends by portfolio segment in charge-offs, delinquencies, classified loans, loan concentrations and the rate of portfolio segment growth. Qualitative factors also include an assessment of the current regulatory environment, the quality of credit administration and loan portfolio management and national and local economic trends. The specific component of the allowance for loan losses relates to individual impaired loans with an identified impairment loss. The Company evaluates substandard and doubtful classified loans, loans delinquent 90 days or greater, non-accrual loans and troubled debt restructured loans (“TDRs”) to determine whether a loan is impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan. These circumstances include the length of the delay, the reasons for the delay, the borrower’s payment record and the amount of the shortfall in relation to the principal and interest owed. Loans not impaired are included in the pool of loans evaluated in the general component of the allowance. If a specific loan is deemed to be impaired it is evaluated for impairment. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than carrying value of the loan. The Company considers all TDRs to be impaired and defines TDRs as loans whose terms have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced at market rates with no debt forgiveness. TDRs are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. Servicing Servicing assets are recognized as separate assets when rights are acquired through the purchase or sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing based on relative estimated fair value. Estimated fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three to 15 years Automobiles: five years Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized. Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or estimated fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or estimated fair value less the cost to sell. Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest income. Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Advertising Costs The Company expenses advertising costs as incurred. 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. Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 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. The 2015 plan replaced the 2005 Equity Compensation Plan. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans, but as of year-end, it is not possible to identify the portion that will be paid out in the form of share-based compensation. Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. 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. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options were greater than the average market price of the common shares. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income as a separate component in the equity section of the balance sheet. Recent Accounting Pronouncements 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 adoption 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, 2017. 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 and is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2015-16 - Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments . ASU 2015-16 requires that adjustments to provisional amounts that are identified during the measurement period of a business combination be recognized in the reporting period in which the adjustment amounts are determined. Furthermore, the income statement effects of such adjustments, if any, must be calculated as if the accounting had been completed at the acquisition date. The portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Under previous guidance, adjustments to provisional amounts identified during the measurement period are to be recognized retrospectively. ASU 2015-16 will be effective January 1, 2016 and is not expected to have a significant impact on the Company’s consolidated financial statements. ASU 2016-1 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-1 will be effective on January 1, 2018 and is not expected to have a significant impact on the Company’s consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | NOTE 2 - ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents the components of comprehensive gain (loss) for the years ended December 31, 2015, 2014 and 2013. The Company’s comprehensive gains and losses were solely for securities for the years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ 216 $ 85 $ 131 $ 981 $ 300 $ 681 $ (1,813) $ (617) $ (1,196) Reclassification adjustments (6) (2) (4) (3) (1) (2) - - - Other comprehensive gain (loss) $ 210 $ 83 $ 127 $ 978 $ 299 $ 679 $ (1,813) $ (617) $ (1,196) The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (378) $ (1,057) $ 139 Other comprehensive gain (loss) before reclassifications 131 681 (1,196) Amounts reclassified from accumulated other comprehensive income (4) (2) - Net other comprehensive gain (loss) 127 679 (1,196) End of period $ (251) $ (378) $ (1,057) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 3 - EARNINGS PER SHARE 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. As of December 31, 2015, 2014 and 2013 , there were 21,211 , 87,435 and 184,201 options , respectively, 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 December 31, 2015 were anti-dilutive. Unvested restricted stock is excluded from the calculation of basic earnings per share. At December 31, 2015 there were 37,048 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: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Net Income $ 6,343 $ 6,490 $ 6,651 Less: dividends paid and accrued on preferred stock (23) (200) (200) Net income available to common shareholders $ 6,320 $ 6,290 $ 6,451 Weighted average number of common shares outstanding 4,639,700 4,646,424 3,402,432 Dilutive effect of common stock equivalents 37,048 8,703 24,361 Weighted average number of shares used to calculate diluted EPS 4,676,748 4,655,127 3,426,793 |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2015 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks | NOTE 4 -RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2015 and 2014, these reserve balances amounted to $797,000 and $500,000 , respectively. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Securities [Abstract] | |
Securities | NOTE 5 – SECURITIES December 31, 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") $ 22 $ 4 $ - $ 26 Residential Collateralized Mortgage Obligations ("CMOs") 31,182 39 557 30,664 Corporate equity securities 37 2 - 39 Bond mutual funds 4,289 98 - 4,387 Total securities available for sale $ 35,530 $ 143 $ 557 $ 35,116 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 34,085 $ 552 $ 242 $ 34,395 Residential CMOs 73,492 278 599 73,171 Asset-backed securities issued by Others: Residential CMOs 1,093 - 100 993 Total debt securities held to maturity 108,670 830 941 108,559 U.S. government obligations 750 - - 750 Total securities held to maturity $ 109,420 $ 830 $ 941 $ 109,309 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 38,294 77 830 37,541 Corporate equity securities 37 3 - 40 Bond mutual funds 4,199 122 - 4,321 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 62,683 379 580 62,482 Asset-backed securities issued by Others: Residential CMOs 1,472 - 112 1,360 Total debt securities held to maturity 83,656 1,146 737 84,065 U.S. government obligations 850 - - 850 Total securities held to maturity $ 84,506 $ 1,146 $ 737 $ 84,915 At December 31, 2015, certain asset-backed securities with an amortized cost of $ 21.4 million were pledged to secure certain deposits. At December 31, 2015, asset-backed securities with an amortized cost of $1.9 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. At December 31, 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 GSEs had an average life of 4.39 years and average duration of 4.04 years and are guaranteed by their issuer as to credit risk. HTM asset-backed securities issued by GSEs had an average life of 5.07 years and average duration of 4.58 years and are guaranteed by their issuer as to credit risk. At December 31, 2014, certain asset-backed securities with an amortized cost of $37.7 million were pledged to secure certain deposits. At December 31, 2014, asset-backed securities with an amortized cost of $2.3 million were pledged as collateral for advances from the Federal Home Loan Bank (“FHLB”) of Atlanta. 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 3.4 0 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 to 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. No charges related to other-than-temporary impairment were made during for the years ended December 31, 2015, 2014 and 2013. During the year ended December 31, 2015, the Company recognized net gains on the sale of securities of $4,000 , which consisted of the sale of one HTM security with a carrying value of $67,000 and the call of an AFS agency bond with a carrying value of $2.0 million. These sales resulted in a loss of $1,000 for the HTM security and a gain of $5,000 for the AFS security. During the year ended December 31, 2014, the Company recognized net gains on the sale of securities of $19,000 . The Company sold five AFS securities with aggregate carrying values of $2.1 million and 12 HTM securities with aggregate carrying values of $4.2 million, recognizing gains of $8,000 and $11,000 , respectively. There were no sales of AFS and HTM securities during the year ended December 31, 2013. The sale of HTM securities was 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 December 31, 2015 were as follows: December 31, 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 $ 4,658 $ 28 $ 17,344 $ 529 $ 22,002 $ 557 At December 31, 2015, the AFS investment portfolio had an estimated fair value of $35.1 million, of which $22.0 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 $557,000 of the portfolio amortized cost of $31.2 million. AFS asset-backed securities issued by GSEs with unrealized losses had an average life of 4.45 years and an average duration of 4.04 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 December 31, 2015 were as follows: December 31, 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 $ 36,337 $ 346 $ 16,431 $ 495 $ 52,768 $ 841 Asset-backed securities issued by other - - 992 100 992 100 $ 36,337 $ 346 $ 17,423 $ 595 $ 53,760 $ 941 At December 31, 2015, the HTM investment portfolio had an estimated fair value of $109.3 million, of which $53.8 million of the securities had some unrealized losses from their amortized cost. Of these securities, $52.8 million were asset-backed securities issued by GSEs and the remaining $992,000 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 $841,000 of the portfolio amortized cost of $107.6 million. HTM asset-backed securities issued by GSEs with unrealized losses had an average life of 5.42 years and an average duration of 4.78 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. 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 $100,000 of the portfolio amortized cost of $1.1 million. HTM asset-backed securities issued by others with unrealized losses have an average life of 4.04 years and an average duration of 3.29 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 - - 1,291 112 1,291 112 $ 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. Maturities The amortized cost and estimated fair value of debt securities at December 31, 2015 and 2014 by contractual maturity, are shown below. The Company has allocated the asset-backed securities into the four maturity groups listed below using the expected average life of the individual securities based on statistics provided by industry sources. Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to prepay obligations without prepayment penalties. Available for Sale Held to Maturity December 31, 2015 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,289 $ 4,387 $ - $ - U.S. government obligations - - 750 750 Asset-backed securities Within one year 6,075 5,975 21,850 21,828 Over one year through five years 15,355 15,102 50,895 50,843 Over five years through ten years 7,727 7,600 23,259 23,235 After ten years 2,047 2,013 12,666 12,653 Total asset-backed securities 31,204 30,690 108,670 108,559 $ 35,493 $ 35,077 $ 109,420 $ 109,309 Available for Sale Held to Maturity December 31, 2014 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,198 $ 4,320 $ - $ - U.S. government obligations - - 850 850 Asset-backed securities Within one year 8,084 7,926 20,647 20,748 Over one year through five years 19,708 19,323 44,575 44,793 Over five years through ten years 8,671 8,501 14,299 14,369 After ten years 1,865 1,829 4,135 4,155 Total asset-backed securities 38,328 37,579 83,656 84,065 $ 42,526 $ 41,899 $ 84,506 $ 84,915 Credit Quality of Asset-Backed Securities The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities and agency bonds issued by GSEs and others at December 31, 2015 and 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 securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. December 31, 2015 December 31, 2014 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 138,267 AAA $ 119,762 BBB - BBB 68 BB 518 BB 695 BB- - BB- - B+ 575 B+ - CCC+ - CCC+ 709 Total $ 139,360 Total $ 121,234 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2015 | |
Loans [Abstract] | |
Loans | NOTE 6 – LOANS Loans consist of the following: (dollars in thousands) December 31, 2015 December 31, 2014 Commercial real estate $ 613,479 $ 561,080 Residential first mortgages 149,967 152,837 Construction and land development 36,189 36,370 Home equity and second mortgages 21,716 21,452 Commercial loans 67,246 73,625 Consumer loans 366 613 Commercial equipment 29,931 26,152 918,894 872,129 Less: Deferred loan fees 1,154 1,239 Allowance for loan losses 8,540 8,481 9,694 9,720 $ 909,200 $ 862,409 At December 31, 2015 and 2014, the Bank’s allowance for loan losses totaled $8.5 million, or 0.93% and 0.97% , respectively, of loan balances. 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 5.3% and 4.4% of the CRE portfolio at December 31, 2015 and 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 $33.6 million or 3.7% of gross loans of $918.9 million at December 31, 2015 compared to $27.4 million or 3.1% of total gross loans of $872.1 million at December 31, 2014. 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. 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 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. These 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 have 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 December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 3,480 11 $ - - $ 3,480 11 Residential first mortgages 1,948 7 - - 1,948 7 Construction and land development 3,555 3 - - 3,555 3 Home equity and second mortgages 48 3 - - 48 3 Commercial loans 1,361 8 693 2 2,054 10 Commercial equipment 348 4 - - 348 4 $ 10,740 36 $ 693 2 $ 11,433 38 December 31, 2014 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 3,824 11 $ - - $ 3,824 11 Residential first mortgages 533 2 - - 533 2 Construction and land development 3,634 2 - - 3,634 2 Home equity and second mortgages 399 6 - - 399 6 Commercial loans 1,587 6 - - 1,587 6 Commercial equipment 286 4 - - 286 4 $ 10,263 31 $ - - $ 10,263 31 Non-accrual loans (90 days or greater delinquent and non-accrual only loans) increased $1.1 million from $10.3 million or 1.18% of total loans at December 31, 2014 to $11.4 million or 1.24% of total loans at December 31, 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. The Company had 38 non-accrual loans at December 31, 2015 compared to 31 non-accrual loans at December 31, 2014. Non-accrual loans at December 31, 2015 included $8.1 million, or 71% of non-accrual loans, attributed to 19 loans representing six 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 December 31, 2015 and December 31, 2014, four loans totaling $3.8 million and $3.9 million, respectively, represented a stalled residential development project. During the second quarter of 2014, the Company 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. At December 31, 2015, the Company had an additional three TDR loans totaling $1.7 million classified non-accrual. At December 31, 2014, the Company had one additional TDR loan totaling $1.0 million that was non-accrual. 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 $10.5 million and $9.3 million at December 31, 2015 and 2014, respectively. Interest due but not recognized on these balances at December 31, 2015 and 2014 was $953,000 and $781,000 , respectively. Non-accrual loans with a specific allowance for impairment on which the recognition of interest has been discontinued amounted to $902,000 and $1.0 million at December 31, 2015 and 2014, respectively. Interest due but not recognized on these balances at December 31, 2015 and 2014 was $34,000 and $64,000 , respectively. An analysis of past due loans as of December 31, 2015 and 2014 was as follows: December 31, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 609,999 $ - $ - $ 3,480 $ 3,480 $ 613,479 Residential first mortgages 147,720 - 299 1,948 2,247 149,967 Construction and land dev. 32,634 - - 3,555 3,555 36,189 Home equity and second mtg. 21,603 65 - 48 113 21,716 Commercial loans 65,747 - 138 1,361 1,499 67,246 Consumer loans 365 - 1 - 1 366 Commercial equipment 29,138 152 293 348 793 29,931 Total $ 907,206 $ 217 $ 731 $ 10,740 $ 11,688 $ 918,894 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 151,375 133 796 533 1,462 152,837 Construction and land dev. 32,736 - - 3,634 3,634 36,370 Home equity and second mtg. 20,939 90 24 399 513 21,452 Commercial loans 71,952 86 - 1,587 1,673 73,625 Consumer loans 612 1 - - 1 613 Commercial equipment 25,848 17 1 286 304 26,152 Total $ 860,046 $ 327 $ 1,493 $ 10,263 $ 12,083 $ 872,129 There were no loans greater than 90 days still accruing interest at December 31, 2015 and 2014, respectively. Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at December 31, 2015 and 2014 were as follows: December 31, 2015 (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 $ 25,429 $ 22,634 $ 2,367 $ 25,001 $ 602 $ 25,655 $ 908 Residential first mortgages 4,747 4,070 676 4,746 66 4,807 177 Construction and land dev. 4,283 3,780 504 4,284 471 4,302 13 Home equity and second mtg. 154 154 - 154 - 163 8 Commercial loans 4,775 4,195 380 4,575 330 4,524 251 Commercial equipment 518 338 139 477 139 491 9 Total $ 39,906 $ 35,171 $ 4,066 $ 39,237 $ 1,608 $ 39,942 $ 1,366 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 3,407 2,526 881 3,407 76 3,426 155 Construction and land dev. 6,402 6,102 - 6,102 - 6,474 133 Home equity and second mtg. 708 649 - 649 - 630 19 Commercial loans 7,587 7,030 406 7,436 155 7,196 252 Commercial equipment 605 373 213 586 123 623 23 Total $ 50,521 $ 45,587 $ 4,122 $ 49,709 $ 451 $ 50,021 $ 1,840 TDRs, included in the impaired loan schedules above, as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 11,897 13 $ 10,438 9 Residential first mortgages 881 3 906 3 Construction and land development 4,283 5 4,376 4 Commercial loans 1,384 7 2,262 6 Commercial equipment 123 2 154 2 Total TDRs $ 18,568 30 $ 18,136 24 Less: TDRs included in non-accrual loans (5,435) (7) (4,887) (5) Total accrual TDR loans $ 13,133 23 $ 13,249 19 At December 31, 2015, the Company had 23 accruing TDRs totaling $13.1 million compared to 19 accruing TDRs totaling $13.2 million as of December 31, 2014. The Company had specific reserves of $1.3 million on nine TDRs totaling $3.6 million at December 31, 2015 and $251,000 on five TDRs totaling $2.5 million at December 31, 2014. Interest income in the amount of $508,000 and $563,000 was recognized on outstanding TDR loans for the years ended December 31, 2015 and 2014, respectively. During the years ended December 31, 2015 and 2014 the Company added 10 TDR loans totaling $3.2 million and 19 TDR loans totaling $16.6 million, respectively. TDR disposals, which included payoffs and refinancing with other institutions for the years ended December 31, 2015 and 2014 decreased by four loans or $2.1 million and eight loans or $2.4 million, respectively. TDR loan principal curtailment was $677,000 and $810,000 for the years ended December 31, 2015 and 2014, respectively. During the year ended December 31, 2015, the $3.2 million of TDRs added consisted primarily of commercial real estate loans. During the year ended December 31, 2014, $10.1 million of the $16.6 million of new TDRs added related to concessions granted on two substandard customer loan relationships described below. In the fourth quarter of 2014, the Bank granted concessions on two loan relationships, each of which was classified as substandard. As a result of these concessions, the Bank determined that the loans were TDRs. As such, the loans became impaired and were evaluated for impairment in accordance with Bank policy. The first loan relationship, which totaled $8.6 million, consisted of commercial real estate and construction loans. The borrower agreed to provide additional collateral to cover most of the deficiency determined as a result of the impairment analysis and the Bank charged-off $500,000 in principal. The carrying value of the loans at December 31, 2015 and 2014 were $8.1 million and $8.2 million, respectively. The second loan relationship, which totaled approximately $3.8 million, consisted of construction and land development and commercial loans. As a result of the concessions granted and the impairment analysis, the Bank charged-off $843,000 and took 11 finished residential lots into other real estate owned (“OREO”). At December 31, 2015 and 2014, the carrying value of the loans and the OREO were $1.4 million and $1.9 million, respectively and $486,000 and $757,000 , respectively. Both loan relationships were current and making payments in accordance with their original contract terms before the restructuring occurred. Accordingly, the two loan relationships remained on accrual status at December 31, 2015 and 2014. Allowance for Loan Losses The following tables detail activity in the allowance for loan losses at and for the years ended December 31, 2015, 2014 and 2013 and loan receivable balances at December 31, 2015, 2014 and 2013. 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 Year Ended December 31, 2015 Allowance for loan losses: Balance at January 1, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Charge-offs (78) (30) - (100) (432) - (818) (1,458) Recoveries 17 1 32 - 11 - 23 84 Provisions (133) (358) - 69 221 (1) 1,635 1,433 Balance at December 31, $ 3,882 $ 705 $ 1,103 $ 142 $ 1,477 $ 2 $ 1,229 $ 8,540 Ending balance: individually evaluated for impairment $ 602 $ 66 $ 471 $ - $ 330 $ - $ 139 $ 1,608 Ending balance: collectively evaluated for impairment $ 3,280 $ 639 $ 632 $ 142 $ 1,147 $ 2 $ 1,090 $ 6,932 Loan receivables: Ending balance $ 613,479 $ 149,967 $ 36,189 $ 21,716 $ 67,246 $ 366 $ 29,931 $ 918,894 Ending balance: individually evaluated for impairment $ 25,001 $ 4,746 $ 4,284 $ 154 $ 4,575 $ - $ 477 $ 39,237 Ending balance: collectively evaluated for impairment $ 588,478 $ 145,221 $ 31,905 $ 21,562 $ 62,671 $ 366 $ 29,454 $ 879,657 (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 (350) (94) (992) (59) (1,134) (3) (10) (2,642) Recoveries 11 186 84 10 5 11 25 332 Provisions 890 (401) 1,395 (27) 890 (15) (79) 2,653 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 Year Ended December 31, 2013 Allowance for loan losses: Balance at January 1, $ 4,092 $ 1,083 $ 533 $ 280 $ 1,948 $ 19 $ 292 $ 8,247 Charge-offs (140) (348) (36) (111) (480) (12) (35) (1,162) Recoveries - 11 1 17 23 3 58 113 Provisions (427) 655 86 63 425 - 138 940 Balance at December 31, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Ending balance: individually evaluated for impairment $ 372 $ 171 $ 55 $ - $ 304 $ - $ 83 $ 985 Ending balance: collectively evaluated for impairment $ 3,153 $ 1,230 $ 529 $ 249 $ 1,612 $ 10 $ 370 $ 7,153 Loan receivables: Ending balance $ 476,648 $ 159,147 $ 32,001 $ 21,692 $ 94,176 $ 838 $ 23,738 $ 808,240 Ending balance: individually evaluated for impairment $ 18,173 $ 3,401 $ 5,666 $ 207 $ 10,218 $ 24 $ 317 $ 38,006 Ending balance: collectively evaluated for impairment $ 458,475 $ 155,746 $ 26,335 $ 21,485 $ 83,958 $ 814 $ 23,421 $ 770,234 C redit Quality Indicators Credit quality indicators as of December 31, 2015 and 2014 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Unrated $ 70,661 $ 74,955 $ 4,399 $ 3,108 Pass 519,330 451,256 27,507 27,160 Special mention 1,095 4,383 - - Substandard 22,393 30,486 3,845 6,102 Doubtful - - 438 - Loss - - - - Total $ 613,479 $ 561,080 $ 36,189 $ 36,370 Commercial Loans Commercial Equipment (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Unrated $ 11,281 $ 12,296 $ 10,074 $ 7,173 Pass 51,569 53,844 19,610 18,517 Special mention - 49 - - Substandard 4,110 7,436 110 462 Doubtful 286 - 137 - Loss - - - - Total $ 67,246 $ 73,625 $ 29,931 $ 26,152 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Performing $ 148,019 $ 152,304 $ 21,668 $ 21,053 $ 366 $ 613 Nonperforming 1,948 533 48 399 - - Total $ 149,967 $ 152,837 $ 21,716 $ 21,452 $ 366 $ 613 Summary of Total Classified Loans (dollars in thousands) 12/31/2015 12/31/2014 By Internally Assigned Grade $ 31,319 $ 44,486 By Payment Activity 1,485 2,249 Total Classified $ 32,804 $ 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. Home 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, home 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. Maturity of Loan Portfolio The following table sets forth certain information at December 31, 2015 and 2014 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. December 31, 2015 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2015 December 31, 2015 December 31, 2015 Real Estate Loans Commercial $ 53,502 $ 122,043 $ 437,934 Residential first mortgage 7,417 31,614 110,936 Construction and land development 27,609 5,025 3,555 Home equity and second mortgage 330 1,134 20,252 Commercial loans 67,246 - - Consumer loans 200 150 16 Commercial equipment 7,899 17,635 4,397 Total loans $ 164,203 $ 177,601 $ 577,090 December 31, 2014 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2014 December 31, 2014 December 31, 2014 Real Estate Loans Commercial $ 114,300 $ 184,317 $ 262,463 Residential first mortgage 21,110 58,320 73,407 Construction and land development 26,867 9,503 - Home equity and second mortgage 2,238 6,926 12,288 Commercial loans 73,625 - - Consumer loans 303 275 35 Commercial equipment 17,497 5,826 2,829 Total loans $ 255,940 $ 265,167 $ 351,022 The following table sets forth the dollar amount of all loans due after one year from December 31, 2015 and 2014, which have predetermined interest rates and have floating or adjustable interest rates. December 31, 2015 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 114,570 $ 445,407 $ 559,977 Residential first mortgage 109,041 33,509 142,550 Construction and land development 3,555 5,025 8,580 Home equity and second mortgage 1,806 19,580 21,386 Commercial loans - - - Consumer loans 166 - 166 Commercial equipment 20,145 1,887 22,032 $ 249,283 $ 505,408 $ 754,691 December 31, 2014 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 92,367 $ 354,413 $ 446,780 Residential first mortgage 105,082 26,645 131,727 Construction and land development 3,859 5,644 9,503 Home equity and second mortgage 2,362 16,852 19,214 Commercial loans - - - Consumer loans 310 - 310 Commercial equipment 6,625 2,030 8,655 $ 210,605 $ 405,584 $ 616,189 Related Party Loans Included in loans receivable were loans made to executive officers and directors of the Bank. These loans were made in the ordinary course of business at substantially the same terms and conditions as those prevailing at the time for comparable transactions with persons not affiliated with the Bank and are not considered to involve more than the normal risk of collectability. For the years ended December 31, 2015, 2014 and 2013, all loans to directors and executive officers of the Bank performed according to original loan terms. Activity in loans outstanding to executive officers and directors are summarized as follows: At and For the Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance, beginning of period $ 24,403 $ 16,601 $ 6,987 Loans and additions 6,822 407 536 Change in Directors' status (642) 8,953 10,077 Repayments (2,478) (1,558) (999) Balance, end of period $ 28,105 $ 24,403 $ 16,601 |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
Loan Servicing | NOTE 7 - LOAN SERVICING Loans serviced for others are not reflected in the accompanying balance sheets. The unpaid principal balances of mortgages serviced for others were $63.0 million and $68.7 million at December 31, 2015 and 2014, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors and foreclosure processing. Loan servicing income is recorded on an accrual basis and includes servicing fees from investors and certain charges collected from borrowers, such as late payment fees. The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance, beginning of the year $ 295 $ 306 $ 245 Additions 31 102 174 Amortization (107) (113) (113) Balance, end of the year $ 219 $ 295 $ 306 |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Other Real Estate Owned ("OREO") | NOTE 8 - OTHER REAL ESTATE OWNED (“OREO”) OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. 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. An analysis of the activity follows. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance at beginning of year $ 5,883 $ 6,797 $ 6,892 Additions of underlying property 5,436 2,742 1,852 Disposals of underlying property (1,206) (2,422) (1,346) Transfers of OREO to loans - (1,000) - Valuation allowance (664) (234) (601) Balance at end of period $ 9,449 $ 5,883 $ 6,797 During the year ended December 31, 2015, the Bank recognized $20,000 in losses on the sale of OREO which consisted of the sale of eight properties for net proceeds of $1.2 million. During the year ended December 31, 2014, the Bank recognized $322,000 in gains on the sale of OREO which consisted of the sale of eight properties for net proceeds of $3.7 million, which included the financing of $1.0 million dollars on a residential subdivision that was transferred from OREO to loans during the fourth quarter of 2014. The contracted sales price of $1.4 million on the residential subdivision qualified for full accrual sales treatment under ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”. During the year ended December 31, 2013, the Bank recognized $179,000 in gains on the sale of OREO which consisted of the sale of six properties for net proceeds of $1.3 million and net losses of $46,000 and the recognition of $225,000 of previously deferred gain from an OREO property that the Bank financed during 2011 that did not initially qualify for full accrual sales treatment. The Bank utilized the cost recovery method (ASC Topic 360-20-40 “Property Plant and Equipment – Derecognition”) to account for the sale. Expenses applicable to OREO assets include the following. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Valuation allowance $ 664 $ 234 $ 601 Operating expenses 395 152 186 $ 1,059 $ 386 $ 787 |
Premises and Equipment and Held
Premises and Equipment and Held for Sale Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
Premises and Equipment and Held for Sale Premises and Equipment | NOTE 9 - PREMISES AND EQUIPMENT AND HELD FOR SALE PREMISES AND EQUIPMENT A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2015 and 2014 follows: December 31, (dollars in thousands) 2015 2014 Land $ 4,172 $ 5,602 Building and improvements 19,737 18,286 Furniture and equipment 8,310 7,599 Automobiles 382 444 Total cost 32,601 31,931 Less accumulated depreciation 12,445 11,345 Premises and equipment, net $ 20,156 $ 20,586 Certain Bank facilities are leased under various operating leases. Rent expense was $701,000 , $647,000 and $569,000 for the ye ars ended December 31, 2015, 2014 and 2013, respectively. Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2015: (dollar in thousands) 2016 $ 705 2017 720 2018 585 2019 467 2020 356 Thereafter 3,430 Total $ 6,263 The Company agreed to sell its King George, Virginia branch building and equipment to a credit union. The required conditions were met during the three months ended September 30, 2015 to classify the asset as held for sale (“HFS”) under FASB 360-10-45-9 which addresses accounting and reporting for long-lived assets to be disposed of by sale. FASB ASC 360-10-35-43 states that a long-lived asset classified as HFS should be measured at the lower of carrying amount or fair value less cost to sell. Based on the contracted sales price, the Company recorded an impairment of $426,000 during the third quarter of 2015. The transaction closed on January 28, 2016. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | NOTE 10 - DEPOSITS Deposits consist of the following: December 31, (dollars in thousands) 2015 2014 Noninterest-bearing demand $ 142,771 $ 122,195 Interest-bearing: Demand 120,918 108,350 Money market deposits 219,956 211,929 Savings 47,703 41,499 Certificates of deposit 375,551 385,411 Total interest-bearing 764,128 747,189 Total Deposits $ 906,899 $ 869,384 The aggregate amount of certificates of deposit in denominations of $100,000 or more at December 31, 2015 and 2014 was $222.3 million and $216.2 million, respectively. The aggregate amount of certificates of deposit in denominations of $250,000 or more at December 31, 2015, and 2014 was $98.6 million and $83.9 million, respectively. At December 31, 2015 and 2014, the scheduled contractual maturities of certificates of deposit are as follows: December 31, (dollars in thousands) 2015 2014 Within one year $ 230,559 $ 240,648 Year 2 96,098 87,959 Year 3 32,975 40,675 Year 4 5,454 10,042 Year 5 10,465 6,087 $ 375,551 $ 385,411 |
Short-Term Borrowings and Long-
Short-Term Borrowings and Long-Term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Short-Term Borrowings and Long-Term Debt | NOTE 11 - SHORT-TERM BORROWINGS AND LONG-TERM DEBT The Bank’s long-term debt and short-term borrowings consist of advances from the FHLB of Atlanta. The Bank classifies debt based upon original maturity and does not reclassify debt to short-term status during its life. Long-term debt and short-term borrowings include fixed-rate long-term advances, short-term advances, daily advances, fixed-rate convertible advances, and variable-rate convertible advances. Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2015 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.26% 3.47% 4.00% Weighted average rate 1.07% 3.47% 4.00% Matures through 2036 2018 2020 December 31, 2014 Highest rate 3.99% 3.47% 4.00% Lowest rate 0.31% 3.47% 4.00% Weighted average rate 1.80% 3.47% 4.00% Matures through 2036 2018 2020 Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2015 2014 2013 Long-term debt Long-term debt outstanding at end of period $ 55,617 $ 74,672 $ 70,476 Weighted average rate on outstanding long-term debt 2.47% 2.35% 2.49% Maximum outstanding long-term debt of any month end 74,668 75,471 70,519 Average outstanding long-term debt 68,924 74,714 68,996 Approximate average rate paid on long-term debt 2.26% 2.39% 2.53% Short-term borrowings Short-term borrowings outstanding at end of period $ 36,000 $ 2,000 $ - Weighted average rate on short-term borrowings 0.38% 0.31% 0.00% Maximum outstanding short-term borrowings at any month end 36,000 15,000 24,000 Average outstanding short-term borrowings 13,463 4,344 4,278 Approximate average rate paid on short-term borrowings 0.27% 0.28% 0.33% The Bank’s fixed-rate debt generally consists of advances with monthly interest payments and principal due at maturity. The Bank’s fixed-rate convertible long-term debt is callable by the issuer, after an initial period ranging from six months to five years. The instruments are callable at the end of the initial period. As of December 31, 2015 and 2014, all fixed-rate convertible debt has passed its call date. All advances have a prepayment penalty, determined based upon prevailing interest rates. Variable convertible advances have an initial variable rate based on a discount to LIBOR. Variable convertible debt is scheduled to mature in 2020 . As of December 31, 2015 and 2014, all variable convertible debt has passed its call date and is fixed at 4.0% . During the year ended December 31, 2015, the Bank paid off $19.0 million of maturing long-term debt. There were no long-term advances added during the year ended December 31, 2015. During the year ended December 31, 2014, the Bank added $2.0 million and $5.0 million fixed-rate advances maturing in 2015 and 2016 at rates of 0.31% and 0.52% , respectively. Additionally, the Bank paid off a $750,000 maturing five year fixed-rate advance. During the year ended December 31, 2013, the Bank added $10.0 million and $5.0 million fixed-rate advances maturing in 2017 and 2015 at rates of 0.87% and 0.41% , respectively. At December 31, 2015 and 2014, $ 55.6 million or 100% and $74.7 million or 100% , respectively, of the Bank’s long-term debt was fixed for rate and term, as the conversion optionality of the advances have either been exercised or expired. The contractual maturities of long-term debt were as follows at December 31, 2015 and 2014: December 31, 2015 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2016 $ 5,000 $ - $ - $ 5,000 Due in 2017 20,000 - - 20,000 Due in 2018 - 10,000 - 10,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Thereafter 10,617 - - 10,617 $ 35,617 $ 10,000 $ 10,000 $ 55,617 December 31, 2014 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2015 $ 19,000 $ - $ - $ 19,000 Due in 2016 5,000 - - 5,000 Due in 2017 20,000 - - 20,000 Due in 2018 - 10,000 - 10,000 Due in 2019 - - - - Thereafter 10,672 - 10,000 20,672 $ 54,672 $ 10,000 $ 10,000 $ 74,672 The Bank also has daily advances outstanding and short-term advances with terms of less than one year, which are classified as short-term borrowings. Daily advances are repayable at the Bank’s option at any time and are re-priced daily. Daily advances were $7.0 million at December 31, 2015. There were no daily advances outstanding at December 31, 2014. The Bank had short-term advances of $29.0 million and $2.0 million, respectively, at December 31, 2015 and 2014. Under the terms of an Agreement for Advances and Security Agreement with Blanket Floating Lien (the “Agreement”), the Bank maintains collateral with the FHLB consisting of one-to four-family residential first mortgage loans, second mortgage loans, commercial real estate and securities. The Agreement limits total advances to 30% of assets, which were $332.8 million and $312.2 million at December 31, 2015 and 2014, respectively. At December 31, 2015, $365.4 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2015, FHLB lendable collateral was valued at $277.2 million. At December 31, 2015, the Bank had total lendable pledged collateral at the FHLB of $165.8 million of which $74.2 million was available to borrow in addition to outstanding advances of $91.6 million. Unpledged lendable collateral was $111.4 million, bringing total available borrowing capacity to $185.6 million at December 31, 2015. At December 31, 2014, $345.0 million of loans and securities were pledged or in safekeeping at the FHLB. Loans and securities are subject to collateral eligibility rules and are adjusted for market value and collateral value factors to arrive at lendable collateral values. At December 31, 2014, FHLB lendable collateral was valued at $265.3 million. At December 31, 2014, the Bank had total lendable pledged collateral at the FHLB of $188.0 million of which $111.3 million was available to borrow in addition to outstanding advances of $76.7 million. Unpledged lendable collateral was $77.3 million, bringing total available borrowing capacity to $188.6 million at December 31, 2014. Additionally, the Bank has established a short-term credit facility with the Federal Reserve Bank of Richmond under its Borrower in Custody program. The Bank had segregated collateral sufficient to draw $7.2 million and $10.8 million under this agreement at December 31, 2015 and 2014, respectively. In addition, the Bank has established short-term credit facilities with other commercial banks totaling $12.0 million at December 31, 2015 and 2014. No amounts were outstanding under the Borrower in Custody or commercial lines at December 31, 2015 and 2014. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 12 - INCOME TAXES Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Current Federal $ 3,255 $ 2,005 $ 3,043 State 1,128 699 845 4,383 2,704 3,888 Deferred Federal (643) 926 (94) State (107) 146 (23) (750) 1,072 (117) Income Tax Expense $ 3,633 $ 3,776 $ 3,771 The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 3,392 34.00% $ 3,490 34.00% $ 3,544 34.00% State taxes net of federal benefit 647 6.49% 604 5.88% 577 5.54% Nondeductible expenses 40 0.40% 39 0.38% 35 0.34% Nontaxable income (398) (3.99%) (345) (3.36%) (340) (3.26%) Other (48) (0.48%) (12) (0.12%) (45) (0.43%) $ 3,633 36.42% $ 3,776 36.78% $ 3,771 36.18% The net deferred tax assets in the accompanying balance sheets include the following components: December 31, (dollars in thousands) 2015 2014 Deferred tax assets Deferred fees $ 168 $ - Allowance for loan losses 3,369 3,346 Deferred compensation 2,332 2,181 OREO valuation allowance & expenses 507 308 Unrealized loss on investment securities 163 246 Other 442 228 6,981 6,309 Deferred tax liabilities FHLB stock dividends 156 156 Depreciation 56 51 212 207 Net Deferred Tax Assets $ 6,769 $ 6,102 Retained earnings at December 31, 2015 and 2014 included approximately $1.2 million of bad debt deductions allowed for federal income tax purposes (the “base year tax reserve”) for which no deferred income tax has been recognized. If, in the future, this portion of retained earnings is used for any purpose other than to absorb bad debt losses, it would create income for tax purposes only and income taxes would be imposed at the then prevailing rates. The unrecorded income tax liability on the above amount was approximately $463,000 at December 31, 2015 and 2014. The Company does not have uncertain tax positions that are deemed material and did not recognize any adjustments for unrecognized tax benefits. The Company’s policy is to recognize interest and penalties on income taxes as a component of tax expense. The Company is no longer subject to U.S. Federal tax examinations by tax authorities for years before 2012. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 13 - COMMITMENTS AND CONTINGENCIES The Bank is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are commitments to extend credit. These instruments may, but do not necessarily, involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the balance sheets. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet loans receivable. As of December 31, 2015 and 2014, the Bank had outstanding loan commitments of approximately $73.5 million and $36.3 million, respectively. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. These guarantees are issued primarily to support construction borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank holds cash or a secured interest in real estate as collateral to support those commitments for which collateral is deemed necessary. Standby letters of credit outstanding amounted to $21.4 million and $16.9 million at December 31, 2015 and 2014, respectively. In addition to the commitments noted above, customers had approximately $128.8 million and $114.7 million available under lines of credit at December 31, 2015 and 2014, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | NOTE 14 - STOCK-BASED COMPENSATION The Company has stock-based incentive arrangements to attract and retain key personnel. In May 2015, the 2015 Equity Compensation Plan (the “2015 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 and the probability of achieving goals specified at the time of the grant. The 2015 plan replaced the 2005 Equity Compensation Plan. Stock-based compensation expense totaled $319,000 , $191,000 and $216,000 for the years ended December 31, 2015, 2014 and 2013, respectively, which consisted of grants of restricted stock and restricted stock units. Stock-based compensation for the years ended December 31, 2013 included director compensation of $3,000 for stock granted in lieu of cash compensation. All outstanding options were fully vested at December 31, 2015 and 2014. 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 December 31, 2015 and 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 87,436 $ 23.60 $ - Expired (66,225) 22.29 Outstanding at December 31, 2015 21,211 $ 27.70 $ - 1.0 Exercisable at December 31, 2015 21,211 $ 27.70 $ - 1.0 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 159,517 $ 20.12 $ 347 Exercised (45,163) 15.89 207 Forfeited (26,918) 15.89 Outstanding at December 31, 2014 87,436 $ 23.60 $ - 1.4 Exercisable at December 31, 2014 87,436 $ 23.60 $ - 1.4 Options outstanding are all currently exercisable and are summarized as follows: Shares Outstanding Weighted Average Weighted Average December 31, 2015 Remaining Contractual Life Exercise Price 21,211 1 year $ 27.70 21,211 $ 27.70 The aggregate intrinsic value of outstanding stock options and exercisable stock options was $0 at December 31, 2015 and 2014 because all options outstanding were anti-dilutive. Aggregate intrinsic value represents the difference between the Company’s closing stock price on the last trading day of the period, which was $20.96 and $20.07 per share at December 31, 2015 and 2014, respectively, and the exercise price multiplied by the number of options outstanding. The Company has outstanding restricted stock and stock units granted in accordance with the Plan. The following tables summarize the unvested restricted stock awards and units outstanding at December 31, 2015 and 2014, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 29,472 $ 20.83 Granted 28,040 18.63 Vested (20,464) 19.62 Nonvested at December 31, 2015 37,048 $ 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 16,832 $ 17.86 4,210 $ 20.71 Granted 33,460 21.35 - - Vested (20,820) 19.26 (4,210) 20.28 Nonvested at December 31, 2014 29,472 $ 20.83 - $ - |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | NOTE 15 - EMPLOYEE BENEFIT PLANS The Company has an Employee Stock Ownership Plan (“ESOP”) that covers substantially all its employees. Employees qualify to participate after one year of service and vest in allocated shares after three years of service. The ESOP acquires stock of The Community Financial Corporation by purchasing shares. Dividends on ESOP shares are recorded as a reduction of retained earnings. Contributions are made at the discretion of the Board of Directors. ESOP contributions recognized for the years ended 2015, 2014 and 2013 totaled $129,000 , $141,000 and $262,000 , respectively. As of December 31, 2015 and 2014, the ESOP held 214,819 and 205,612 allocated shares and 19,044 and 29,362 unallocated shares. The approximate market values of the shares were $4.9 million and $4.7 million, respectively as of December 31, 2015 and 2014. The estimated value was determined using the Company’s closing stock price of $20.96 and $20.07 per share as of December 31, 2015 and 2014, respectively. The ESOP has promissory notes with the Company of $316,000 and $489,000 at December 31, 2015 and 2014, respectively. The promissory notes were originated for the purchase of TCFC common stock for the benefit of the participants in the Plan. Loan terms are at prime rate plus one -percentage point and amortize over seven (7) years. As principal is repaid, common shares are allocated to participants based on the participant account allocation rules described in the Plan. The Bank is a guarantor of the ESOP debt with the Company. The Company also has a 401(k) plan. The Company matches a portion of the employee contributions. This ratio is determined annually by the Board of Directors. In 2015, 2014 and 2013, the Company matched one -half of the first 8% of the employee’s contribution. Employees who have completed six months of service are covered under this defined contribution plan. Employee’s vest in the Company’s matching contributions after three years of service. Contributions are determined at the discretion of the Board of Directors. For the years ended December 31, 2015, 2014 and 2013, the expense recorded for this plan totaled $332,000 , $324,000 and $336,000 , respectively. The Company has a separate nonqualified retirement plan for non-employee directors. Directors are eligible for a maximum benefit of $3,500 a year for ten years following retirement from the Board of Community Bank of the Chesapeake. The maximum benefit is earned at 15 years of service as a non-employee director. Full vesting occurs after two years of service. Expense recorded for this plan was $22,000 , $21,000 and $20,000 for the years ended December 31, 2015, 2014 and 2013, respectively. In addition, the Company has established individual supplemental retirement plans and life insurance benefits for certain key executives and officers of the Bank. These plans and benefits provide a retirement income payment for 15 years from the date of the employee’s expected retirement date. The payments are set at the discretion of the Board of Directors and vesting occurs ratably from the date of employment to the expected retirement date. Expense recorded for this plan totaled $ 519,000 , $441,000 and $395,000 for 2015, 2014 and 2013, respectively. |
Guaranteed Preferred Beneficial
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | 12 Months Ended |
Dec. 31, 2015 | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures (TRUPs) [Abstract] | |
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") | NOTE 16 - 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 | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Notes [Abstract] | |
Subordinated Notes | NOTE 17 – 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. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital [Abstract] | |
Regulatory Capital | NOTE 18 - 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 December 31, 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 December 31, 2015 and 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) December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Common Equity $ 99,783 $ 96,559 $ 132,571 $ 126,838 Preferred Stock -SBLF - 20,000 - - Total Stockholders' Equity 99,783 116,559 132,571 126,838 AOCI Losses (Gains) 251 378 251 378 Common Equity Tier 1 Capital 100,034 116,937 132,822 127,216 TRUPs 12,000 12,000 - - Tier 1 Capital 112,034 128,937 132,822 127,216 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 8,540 8,537 8,540 8,537 Subordinated Notes 23,000 - - - Tier 2 Capital $ 143,574 $ 137,474 $ 141,362 $ 135,753 Risk-Weighted Assets ("RWA") $ 984,614 $ 903,931 $ 982,347 $ 902,136 Average Assets ("AA") $ 1,118,843 $ 1,053,424 $ 1,116,576 $ 1,051,627 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) 7.00 % 10.16 % n/a % 13.52 % n/a % Tier 1 Capital to RWA 8.50 11.38 14.26 13.52 14.10 Tier 2 Capital to RWA 10.50 14.58 15.21 14.39 15.05 Tier 1 Capital to AA (Leverage) n/a 10.01 12.24 11.90 12.10 (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 | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 19 - 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 years ended December 31, 2015 and 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 government sponsored entities (“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 December 31, 2015 and 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. Premises and Equipment Held For Sale Premises and equipment are adjusted to fair value upon transfer of the assets to held for sale. Subsequently, premises and equipment held for sale are 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 (e.g., contracted sales price) or a current appraised value, the Company records the assets 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 asset at nonrecurring Level 3. Other Real Estate Owned (“OREO”) OREO is adjusted for fair value upon transfer of the loans to foreclosed assets. Subsequently, OREO is carried at the lower of carrying value and 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 December 31, 2015 and December 31, 2014 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 30,664 $ - $ 30,664 $ - MBS 26 - 26 - Corporate equity securities 39 - 39 - Bond mutual funds 4,387 - 4,387 - Total available for sale securities $ 35,116 $ - $ 35,116 $ - (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 37 - 37 - Corporate equity securities 40 - 40 - Bond mutual funds 4,321 - 4,321 - 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 December 31, 2015 and 2014 are included in the tables below. (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,765 $ - $ 1,765 $ - Residential first mortgages 610 - 610 - Construction and land development 33 - 33 - Commercial loans 50 - 50 - Total loans with impairment $ 2,458 $ - $ 2,458 $ - Premises and equipment held for sale $ 2,000 $ - $ 2,000 $ - Other real estate owned $ 9,449 $ - $ 9,449 $ - (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 805 - 805 - Commercial loans 251 - 251 - Commercial equipment 90 - 90 - Total loans with impairment $ 3,670 $ - $ 3,670 $ - Other real estate owned $ 5,883 $ - $ 5,883 $ - Loans with impairment have unpaid principal balances of $4.0 million a nd $4.1 million at December 31, 2015 and 2014, respectively, and include impaired loans with a specific allowance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | NOTE 20 - 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. Loans held for sale – Fair values are derived from secondary market quotations for similar instruments. There were no loans held for sale at December 31, 2015 and 2014. Deposits - 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 borrowings - 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. December 31, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 35,116 $ 35,116 $ - $ 35,116 $ - Investment securities - HTM 109,420 109,309 750 108,559 - FHLB and FRB Stock 6,931 6,931 - 6,931 - Loans Receivable 909,200 913,506 - 913,506 - Investment in BOLI 27,836 27,836 - 27,836 - Liabilities Savings, NOW and money market accounts $ 531,348 $ 531,348 $ - $ 531,348 $ - Time deposits 375,551 375,376 - 375,376 - Long-term debt 55,617 56,987 - 56,987 - Short term borrowings 36,000 36,000 - 36,000 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 23,000 - 23,000 - 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 84,506 84,915 850 84,065 - FHLB and FRB Stock 6,434 6,434 - 6,434 - Loans Receivable 862,409 861,427 - 861,427 - Investment in BOLI 27,021 27,021 - 27,021 - Liabilities Savings, NOW and money market accounts $ 483,973 $ 483,973 $ - $ 483,973 $ - Time deposits 385,411 386,510 - 386,510 - Long-term debt 74,672 77,919 - 77,919 - Short term borrowings 2,000 2,000 - 2,000 - TRUPs 12,000 7,400 - 7,400 - At December 31, 2015 and 2014, the Company had outstanding loan commitments and standby letters of credit of $73.5 million and $36.3 million, respectively, and $21.4 million and $16.9 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 December 31, 2015 and 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. |
Condensed Financial Statements
Condensed Financial Statements - Parent Company Only | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Condensed Financial Statements - Parent Company Only | NOTE 21 - CONDENSED FINANCIAL STATEMENTS – PARENT COMPANY ONLY Balance Sheets December 31, (dollars in thousands) 2015 2014 Assets Cash - noninterest bearing $ 1,541 $ 1,064 Investment in wholly owned subsidiaries 132,943 127,210 Other assets 1,895 1,423 Total Assets $ 136,379 $ 129,697 Liabilities and Stockholders' Equity Current liabilities $ 1,224 $ 766 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 - Total Liabilities 36,596 13,138 Stockholders' Equity Preferred Stock - Series C - 20,000 Common stock 46 47 Additional paid in capital 46,809 46,416 Retained earnings 53,495 50,936 Accumulated other comprehensive loss (251) (378) Unearned ESOP shares (316) (462) Total Stockholders’ Equity 99,783 116,559 Total Liabilities and Stockholders’ Equity $ 136,379 $ 129,697 Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2015 2014 2013 Interest and Dividend Income Dividends from subsidiary $ 2,775 $ 3,500 $ - Interest income 51 6 46 Interest expense 1,599 312 305 Net Interest Income (Expense) 1,227 3,194 (259) Miscellaneous expenses (1,421) (1,427) (825) Income (Loss) before income taxes and equity in undistributed net income of subsidiary (194) 1,767 (1,084) Federal and state income tax benefit 1,009 589 368 Equity in undistributed net income of subsidiary 5,528 4,134 7,367 Net Income $ 6,343 $ 6,490 $ 6,651 Preferred stock dividends 23 200 200 Net Income Available to Common Shareholders $ 6,320 $ 6,290 $ 6,451 Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2015 2014 2013 Cash Flows from Operating Activities Net income $ 6,343 $ 6,490 $ 6,651 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (5,528) (4,134) (7,367) Stock based compensation 139 191 216 (Increase) Decrease in other assets (284) (259) 1,730 Decrease (Increase) deferred income tax benefit 23 162 (26) (Decrease) Increase in current liabilities 459 (145) 67 Net Cash Provided by Operating Activities 1,152 2,305 1,271 Cash Flows from Financing Activities Dividends paid (1,916) (2,055) (1,579) Proceeds from public offering - - 27,387 Downstream of capital to subsidiary (78) (15) (27,474) Proceeds from Subordinated Notes 23,000 - - Redemption of Small Business Lending Fund Preferred Stock (20,000) - - Exercise of stock options - 226 317 Net change in ESOP loan 146 201 355 Repurchase of common stock (1,827) - (536) Net Cash Used in Financing Activities (675) (1,643) (1,530) Increase (Decrease) in Cash 477 662 (259) Cash at Beginning of Year 1,064 402 661 Cash at End of Year $ 1,541 $ 1,064 $ 402 |
Quarterly Financial Comparison
Quarterly Financial Comparison (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Quarterly Financial Comparison (Unaudited) | NOTE 22 - QUARTERLY FINANCIAL COMPARISON (Unaudited) 2015 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 11,208 $ 11,002 $ 10,935 $ 10,728 Interest expense 1,860 1,918 1,902 1,665 Net interest income 9,348 9,084 9,033 9,063 Provision for loan losses 362 501 392 178 Net interest income after provision 8,986 8,583 8,641 8,885 Noninterest income 909 466 962 962 Noninterest expense 7,556 7,031 6,888 6,943 Income before income taxes 2,339 2,018 2,715 2,904 Provision for income taxes 811 735 1,004 1,083 Net Income (NI) $ 1,528 $ 1,283 $ 1,711 $ 1,821 Preferred stock dividends - - - 23 NI Available to Common Stockholders $ 1,528 $ 1,283 $ 1,711 $ 1,798 Earnings Per Common Share 1 Basic $ 0.33 $ 0.28 $ 0.37 $ 0.38 Diluted $ 0.33 $ 0.27 $ 0.37 $ 0.38 2014 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 10,663 $ 10,667 $ 10,254 $ 10,175 Interest expense 1,610 1,663 1,684 1,741 Net interest income 9,053 9,004 8,570 8,434 Provision for loan losses 1,502 385 563 203 Net interest income after provision 7,551 8,619 8,007 8,231 Noninterest income 1,225 1,118 855 895 Noninterest expense 6,652 6,485 6,767 6,331 Income before income taxes 2,124 3,252 2,095 2,795 Provision for income taxes 579 1,363 760 1,074 Net Income (NI) $ 1,545 $ 1,889 $ 1,335 $ 1,721 Preferred stock dividends 50 50 50 50 NI Available to Common Stockholders $ 1,495 $ 1,839 $ 1,285 $ 1,671 Earnings Per Common Share 1 Basic $ 0.32 $ 0.40 $ 0.28 $ 0.36 Diluted $ 0.32 $ 0.39 $ 0.28 $ 0.36 2013 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 10,112 $ 9,975 $ 9,750 $ 9,841 Interest expense 1,732 1,873 2,018 2,023 Net interest income 8,380 8,102 7,732 7,818 Provision for loan losses 300 286 200 154 Net interest income after provision 8,080 7,816 7,532 7,664 Noninterest income 797 1,119 1,069 1,189 Noninterest expense 6,348 6,245 6,107 6,144 Income before income taxes 2,529 2,690 2,494 2,709 Provision for income taxes 885 987 909 990 Net Income (NI) $ 1,644 $ 1,703 $ 1,585 $ 1,719 Preferred stock dividends 50 50 50 50 NI Available to Common Stockholders $ 1,594 $ 1,653 $ 1,535 $ 1,669 Earnings Per Common Share 1 Basic $ 0.35 $ 0.55 $ 0.51 $ 0.55 Diluted $ 0.35 $ 0.55 $ 0.51 $ 0.54 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. In October 2013, the Company issued 1,591,300 shares of common stock at a price of $18.75 per share resulting in net proceeds of $27.4 million after commissions and related offering expenses. The additional shares outstanding impacted year to year comparability of per share earnings beginning with fourth quarter 2013 results . |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of The Community Financial Corporation 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 (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and reporting policies of the Company conform with accounting principles generally accepted in the United States of America and to general practices within the banking industry. |
Reclassification | Reclassification Certain reclassifications have been made in the Consolidated Financial Statements for 2014 to conform to the classification presented in 2015. |
Nature of Operations | Nature of Operations The Company provides a variety of financial services to individuals and businesses through its offices in Southern Maryland and Annapolis, Maryland, 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 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’s second branch in Fredericksburg is scheduled to open during the first quarter of 2016. The Company agreed to sell its King George, Virginia branch building and equipment to a credit union. The transaction closed in the first quarter of 2016. The Company’s 2015 operating results reflect the financial impact of the transaction. See Note 10 for additional information. |
Use of Estimates | Use of Estimates In preparing Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the evaluation of other-than-temporary impairment on debt securities, and the valuation of OREO and deferred tax assets. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the Fredericksburg area of Virginia and the Southern Maryland counties of Calvert, Charles and St. Mary’s. Notes 5 and 6 discuss the types of securities and loans held by the Company. The Company does not have significant concentration in any one customer or industry. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company considers all highly liquid debt instruments with original maturities of three months or less when purchased to be cash equivalents. |
Securities | Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as held to maturity (“HTM”) and recorded at amortized cost. Securities purchased and held principally for trading in the near term are classified as “trading securities” and are reported at fair value, with unrealized gains and losses included in earnings. The Company held no trading securities for the years ended December 31, 2015, 2014 and 2013. Securities not classified as held to maturity or trading securities, including equity securities with readily determinable fair values, are classified as available for sale (“AFS”) and recorded at estimated fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the estimated fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other than temporary impairment losses, management considers: (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Investments in Federal Reserve Bank and Federal Home Loan Bank of Atlanta stocks are recorded at cost and are considered restricted as to marketability. The Bank is required to maintain investments in the Federal Reserve Bank as a condition of membership and the Federal Home Loan Bank based upon levels of borrowings. Debt securities are evaluated quarterly to determine whether a decline in their value is other-than-temporary impairment (“OTTI”). The term other-than-temporary is not necessarily intended to indicate a permanent decline in value. It means that the prospects for near term recovery of value are not necessarily favorable, or that there is a lack of evidence to support fair values equal to, or greater than, the carrying value of the investment. Under accounting guidance, for recognition and presentation of other-than-temporary impairments the amount of other-than-temporary impairment that is recognized through earnings for debt securities is determined by comparing the present value of the expected cash flows to the amortized cost of the security. The discount rate used to determine the credit loss is the expected book yield on the security. The Company does not evaluate declines in the value of securities of Government Sponsored Enterprises (“GSEs”) or investments backed by the full faith and credit of the United States government (e.g. US Treasury Bills), for other-than-temporary impairment. |
Loans Held for Sale | Loans Held for Sale Residential mortgage loans intended for sale in the secondary market are carried at the lower of cost or estimated fair value, in the aggregate. Fair value is derived from secondary market quotations for similar instruments. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Residential mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by the cost allocated to the associated servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold, using the specific identification method. The Company exited the residential mortgage origination line of business in April 2015 for individual owner occupied residential first mortgages and established third party sources to supply its residential whole loan portfolio. The Company continues to underwrite non-owner occupied residential loans. T he Company may sell certain loans forward into the secondary market at a specified price with a specified date on a best efforts basis. These forward sales are derivative financial instruments. The Company does not recognize gains or losses due to interest rate changes for loans sold forward on a best efforts basis. The Bank had no loans held for sale at December 31, 2015 and 2014, respectively. |
Loans Receivable | Loans Receivable The Company originates real estate mortgages, construction and land development loans, commercial loans and consumer loans. A substantial portion of the loan portfolio is comprised of loans throughout Southern Maryland and the Fredericksburg area of Virginia. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. Loans that the Company has the intent and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding unpaid principal balances, adjusted for the allowance for loan losses and any deferred fees or costs on originated loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. Loans are reviewed on a regular basis and are placed on non-accrual status when, in the opinion of management, the collection of additional interest is doubtful. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well secured and in the process of collection. Non-accrual loans include certain loans that are current with all loan payments and are placed on non-accrual status due to customer operating results and cash flows. Non-accrual loans are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. Interest is recognized on non-accrual loans on a cash-basis. Consumer loans are typically charged-off no later than 90 days past due. Mortgage and commercial loans are fully or partially charged-off when in management’s judgment all reasonable efforts to return a loan to performing status have occurred. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected from loans that are placed on non-accrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses and Impaired Loans | Allowance for Loan Losses and Impaired Loans The allowance for loan losses is established as probable losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the composition and size of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses consists of a general and a specific component. The general component is based upon historical loss experience and a review of qualitative risk factors by portfolio segment (See Note 5 for a description of portfolio segments). The historical loss experience factor is tracked over various time horizons for each portfolio segment. It is weighted as the most important factor of the general component of the allowance. The Company considers qualitative factors in addition to the loss experience factor. These include trends by portfolio segment in charge-offs, delinquencies, classified loans, loan concentrations and the rate of portfolio segment growth. Qualitative factors also include an assessment of the current regulatory environment, the quality of credit administration and loan portfolio management and national and local economic trends. The specific component of the allowance for loan losses relates to individual impaired loans with an identified impairment loss. The Company evaluates substandard and doubtful classified loans, loans delinquent 90 days or greater, non-accrual loans and troubled debt restructured loans (“TDRs”) to determine whether a loan is impaired. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration the circumstances surrounding the loan. These circumstances include the length of the delay, the reasons for the delay, the borrower’s payment record and the amount of the shortfall in relation to the principal and interest owed. Loans not impaired are included in the pool of loans evaluated in the general component of the allowance. If a specific loan is deemed to be impaired it is evaluated for impairment. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the fair value of the collateral, if the loan is collateral dependent. An allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than carrying value of the loan. The Company considers all TDRs to be impaired and defines TDRs as loans whose terms have been modified to provide for a reduction or a delay in the payment of either interest or principal because of deterioration in the financial condition of the borrower. A loan extended or renewed at a stated interest rate equal to the current interest rate for new debt with similar risk is not considered a TDR. Once an obligation has been classified as a TDR it continues to be considered a TDR until paid in full or until the debt is refinanced at market rates with no debt forgiveness. TDRs are evaluated for impairment on a loan-by-loan basis in accordance with the Company’s impairment methodology. The Company does not participate in any specific government or Company-sponsored loan modification programs. All restructured loan agreements are individual contracts negotiated with a borrower. |
Servicing | Servicing Servicing assets are recognized as separate assets when rights are acquired through the purchase or sale of financial assets. Generally, purchased servicing rights are capitalized at the cost to acquire the rights. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing based on relative estimated fair value. Estimated fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the estimated fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights into tranches based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the capitalized amount for the tranche. If the Company later determines that all or a portion of the impairment no longer exists for a particular tranche, a reduction of the allowance may be recorded as an increase to income. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises, improvements and equipment are carried at cost, less accumulated depreciation and amortization, computed by the straight-line method over the estimated useful lives of the assets, which are as follows: Buildings and Improvements: 10 to 50 years Furniture and Equipment: three to 15 years Automobiles: five years Maintenance and repairs are charged to expense as incurred, while improvements that extend the useful life of premises and equipment are capitalized. |
Other Real Estate Owned ("OREO") | Other Real Estate Owned (“OREO”) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at the lower of cost or estimated fair value at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management, and the assets are carried at the lower of carrying amount or estimated fair value less the cost to sell. Revenues and expenses from operations and changes in the valuation allowance are included in noninterest expense. Gains or losses on disposition are included in noninterest income. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as incurred. |
Income Taxes | 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. |
Off Balance Sheet Credit Related Financial Instruments | Off Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial lines of credit, letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded. |
Share-Based Compensation | Stock-Based Compensation The Company has stock-based incentive arrangements to attract and retain key personnel in order to promote the success of the business. In May 2015, the 2015 Equity Compensation Plan (the “2015 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. The 2015 plan replaced the 2005 Equity Compensation Plan. Compensation cost for all stock-based awards is measured at fair value on date of grant and recognized over the vesting period. Such value is recognized as expense over the service period, net of estimated forfeitures. The estimation of stock awards that ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised. The Company considers many factors when estimating expected forfeitures, including types of awards, employee class and historical experience. The Company and the Bank currently maintain incentive compensation plans which provide for payments to be made in cash or other share-based compensation. The Company has accrued the full amounts due under these plans, but as of year-end, it is not possible to identify the portion that will be paid out in the form of share-based compensation. |
Earnings Per Common Share | Earnings Per Common Share (“EPS”) Basic earnings per common share represent income available to common stockholders, divided by the weighted average number of common shares outstanding during the period. Unencumbered shares held by the Employee Stock Ownership Plan (“ESOP”) are treated as outstanding in computing earnings per share. Shares issued to the ESOP but pledged as collateral for loans obtained to provide funds to acquire the shares are not treated as outstanding in computing earnings per share. 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. The Company excludes from the diluted EPS calculation anti-dilutive options, because the exercise price of the options were greater than the average market price of the common shares. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as components of comprehensive income as a separate statement in the Consolidated Statements of Comprehensive Income. Additionally, the Company discloses accumulated other comprehensive income as a separate component in the equity section of the balance sheet. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 adoption 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, 2017. 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 and is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2015-16 - Business Combinations (Topic 805) – Simplifying the Accounting for Measurement-Period Adjustments . ASU 2015-16 requires that adjustments to provisional amounts that are identified during the measurement period of a business combination be recognized in the reporting period in which the adjustment amounts are determined. Furthermore, the income statement effects of such adjustments, if any, must be calculated as if the accounting had been completed at the acquisition date. The portion of the amount recorded in current-period earnings that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Under previous guidance, adjustments to provisional amounts identified during the measurement period are to be recognized retrospectively. ASU 2015-16 will be effective January 1, 2016 and is not expected to have a significant impact on the Company’s consolidated financial statements. ASU 2016-1 - Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (viii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-1 will be effective on January 1, 2018 and is not expected to have a significant impact on the Company’s consolidated financial statements. |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Comprehensive Income (Loss) | The following table presents the components of comprehensive gain (loss) for the years ended December 31, 2015, 2014 and 2013. The Company’s comprehensive gains and losses were solely for securities for the years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (dollars in thousands) Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Before Tax Tax Effect Net of Tax Net unrealized holding gains (losses) arising during period $ 216 $ 85 $ 131 $ 981 $ 300 $ 681 $ (1,813) $ (617) $ (1,196) Reclassification adjustments (6) (2) (4) (3) (1) (2) - - - Other comprehensive gain (loss) $ 210 $ 83 $ 127 $ 978 $ 299 $ 679 $ (1,813) $ (617) $ (1,196) |
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 years ended December 31, 2015, 2014 and 2013. Year Ended December 31, 2015 Year Ended December 31, 2014 Year Ended December 31, 2013 (dollars in thousands) Net Unrealized Gains And Losses Net Unrealized Gains And Losses Net Unrealized Gains And Losses Beginning of period $ (378) $ (1,057) $ 139 Other comprehensive gain (loss) before reclassifications 131 681 (1,196) Amounts reclassified from accumulated other comprehensive income (4) (2) - Net other comprehensive gain (loss) 127 679 (1,196) End of period $ (251) $ (378) $ (1,057) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | B asic and diluted earnings per share have been computed based on weighted-average common and common equivalent shares outstanding as follows: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Net Income $ 6,343 $ 6,490 $ 6,651 Less: dividends paid and accrued on preferred stock (23) (200) (200) Net income available to common shareholders $ 6,320 $ 6,290 $ 6,451 Weighted average number of common shares outstanding 4,639,700 4,646,424 3,402,432 Dilutive effect of common stock equivalents 37,048 8,703 24,361 Weighted average number of shares used to calculate diluted EPS 4,676,748 4,655,127 3,426,793 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Trading Securities (and Certain Trading Assets) | December 31, 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") $ 22 $ 4 $ - $ 26 Residential Collateralized Mortgage Obligations ("CMOs") 31,182 39 557 30,664 Corporate equity securities 37 2 - 39 Bond mutual funds 4,289 98 - 4,387 Total securities available for sale $ 35,530 $ 143 $ 557 $ 35,116 Securities held to maturity (HTM) Asset-backed securities issued by GSEs Residential MBS $ 34,085 $ 552 $ 242 $ 34,395 Residential CMOs 73,492 278 599 73,171 Asset-backed securities issued by Others: Residential CMOs 1,093 - 100 993 Total debt securities held to maturity 108,670 830 941 108,559 U.S. government obligations 750 - - 750 Total securities held to maturity $ 109,420 $ 830 $ 941 $ 109,309 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 38,294 77 830 37,541 Corporate equity securities 37 3 - 40 Bond mutual funds 4,199 122 - 4,321 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 62,683 379 580 62,482 Asset-backed securities issued by Others: Residential CMOs 1,472 - 112 1,360 Total debt securities held to maturity 83,656 1,146 737 84,065 U.S. government obligations 850 - - 850 Total securities held to maturity $ 84,506 $ 1,146 $ 737 $ 84,915 |
Investments Classified by Contractual Maturity Date | Available for Sale Held to Maturity December 31, 2015 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,289 $ 4,387 $ - $ - U.S. government obligations - - 750 750 Asset-backed securities Within one year 6,075 5,975 21,850 21,828 Over one year through five years 15,355 15,102 50,895 50,843 Over five years through ten years 7,727 7,600 23,259 23,235 After ten years 2,047 2,013 12,666 12,653 Total asset-backed securities 31,204 30,690 108,670 108,559 $ 35,493 $ 35,077 $ 109,420 $ 109,309 Available for Sale Held to Maturity December 31, 2014 Estimated Estimated Amortized Fair Amortized Fair (dollars in thousands) Cost Value Cost Value Within one year Bond mutual funds $ 4,198 $ 4,320 $ - $ - U.S. government obligations - - 850 850 Asset-backed securities Within one year 8,084 7,926 20,647 20,748 Over one year through five years 19,708 19,323 44,575 44,793 Over five years through ten years 8,671 8,501 14,299 14,369 After ten years 1,865 1,829 4,135 4,155 Total asset-backed securities 38,328 37,579 83,656 84,065 $ 42,526 $ 41,899 $ 84,506 $ 84,915 |
Financing Receivable Credit Quality Indicators | The tables below present the Standard & Poor’s (“S&P”) or equivalent credit rating from other major rating agencies for AFS and HTM asset-backed securities and agency bonds issued by GSEs and others at December 31, 2015 and 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 securities and GSE agency bonds with S&P AA+ ratings were treated as AAA based on regulatory guidance. December 31, 2015 December 31, 2014 Credit Rating Amount Credit Rating Amount (dollars in thousands) AAA $ 138,267 AAA $ 119,762 BBB - BBB 68 BB 518 BB 695 BB- - BB- - B+ 575 B+ - CCC+ - CCC+ 709 Total $ 139,360 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 December 31, 2015 were as follows: December 31, 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 $ 36,337 $ 346 $ 16,431 $ 495 $ 52,768 $ 841 Asset-backed securities issued by other - - 992 100 992 100 $ 36,337 $ 346 $ 17,423 $ 595 $ 53,760 $ 941 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 - - 1,291 112 1,291 112 $ 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 December 31, 2015 were as follows: December 31, 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 $ 4,658 $ 28 $ 17,344 $ 529 $ 22,002 $ 557 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) | 12 Months Ended |
Dec. 31, 2015 | |
Loans [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans consist of the following: (dollars in thousands) December 31, 2015 December 31, 2014 Commercial real estate $ 613,479 $ 561,080 Residential first mortgages 149,967 152,837 Construction and land development 36,189 36,370 Home equity and second mortgages 21,716 21,452 Commercial loans 67,246 73,625 Consumer loans 366 613 Commercial equipment 29,931 26,152 918,894 872,129 Less: Deferred loan fees 1,154 1,239 Allowance for loan losses 8,540 8,481 9,694 9,720 $ 909,200 $ 862,409 |
Schedule of Financing Receivables, Non-Accrual Status | Non-accrual loans as of December 31, 2015 and December 31, 2014 were as follows: December 31, 2015 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 3,480 11 $ - - $ 3,480 11 Residential first mortgages 1,948 7 - - 1,948 7 Construction and land development 3,555 3 - - 3,555 3 Home equity and second mortgages 48 3 - - 48 3 Commercial loans 1,361 8 693 2 2,054 10 Commercial equipment 348 4 - - 348 4 $ 10,740 36 $ 693 2 $ 11,433 38 December 31, 2014 (dollars in thousands) 90 or Greater Days Delinquent Number of Loans Non-accrual Only Loans Number of Loans Total Non-accrual Loans Total Number of Loans Commercial real estate $ 3,824 11 $ - - $ 3,824 11 Residential first mortgages 533 2 - - 533 2 Construction and land development 3,634 2 - - 3,634 2 Home equity and second mortgages 399 6 - - 399 6 Commercial loans 1,587 6 - - 1,587 6 Commercial equipment 286 4 - - 286 4 $ 10,263 31 $ - - $ 10,263 31 |
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 Year Ended December 31, 2015 Allowance for loan losses: Balance at January 1, $ 4,076 $ 1,092 $ 1,071 $ 173 $ 1,677 $ 3 $ 389 $ 8,481 Charge-offs (78) (30) - (100) (432) - (818) (1,458) Recoveries 17 1 32 - 11 - 23 84 Provisions (133) (358) - 69 221 (1) 1,635 1,433 Balance at December 31, $ 3,882 $ 705 $ 1,103 $ 142 $ 1,477 $ 2 $ 1,229 $ 8,540 Ending balance: individually evaluated for impairment $ 602 $ 66 $ 471 $ - $ 330 $ - $ 139 $ 1,608 Ending balance: collectively evaluated for impairment $ 3,280 $ 639 $ 632 $ 142 $ 1,147 $ 2 $ 1,090 $ 6,932 Loan receivables: Ending balance $ 613,479 $ 149,967 $ 36,189 $ 21,716 $ 67,246 $ 366 $ 29,931 $ 918,894 Ending balance: individually evaluated for impairment $ 25,001 $ 4,746 $ 4,284 $ 154 $ 4,575 $ - $ 477 $ 39,237 Ending balance: collectively evaluated for impairment $ 588,478 $ 145,221 $ 31,905 $ 21,562 $ 62,671 $ 366 $ 29,454 $ 879,657 (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 (350) (94) (992) (59) (1,134) (3) (10) (2,642) Recoveries 11 186 84 10 5 11 25 332 Provisions 890 (401) 1,395 (27) 890 (15) (79) 2,653 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 Year Ended December 31, 2013 Allowance for loan losses: Balance at January 1, $ 4,092 $ 1,083 $ 533 $ 280 $ 1,948 $ 19 $ 292 $ 8,247 Charge-offs (140) (348) (36) (111) (480) (12) (35) (1,162) Recoveries - 11 1 17 23 3 58 113 Provisions (427) 655 86 63 425 - 138 940 Balance at December 31, $ 3,525 $ 1,401 $ 584 $ 249 $ 1,916 $ 10 $ 453 $ 8,138 Ending balance: individually evaluated for impairment $ 372 $ 171 $ 55 $ - $ 304 $ - $ 83 $ 985 Ending balance: collectively evaluated for impairment $ 3,153 $ 1,230 $ 529 $ 249 $ 1,612 $ 10 $ 370 $ 7,153 Loan receivables: Ending balance $ 476,648 $ 159,147 $ 32,001 $ 21,692 $ 94,176 $ 838 $ 23,738 $ 808,240 Ending balance: individually evaluated for impairment $ 18,173 $ 3,401 $ 5,666 $ 207 $ 10,218 $ 24 $ 317 $ 38,006 Ending balance: collectively evaluated for impairment $ 458,475 $ 155,746 $ 26,335 $ 21,485 $ 83,958 $ 814 $ 23,421 $ 770,234 C |
Past Due Financing Receivables | An analysis of past due loans as of December 31, 2015 and 2014 was as follows: December 31, 2015 (dollars in thousands) Current 31-60 Days 61-89 Days 90 or Greater Days Total Past Due Total Loan Receivables Commercial real estate $ 609,999 $ - $ - $ 3,480 $ 3,480 $ 613,479 Residential first mortgages 147,720 - 299 1,948 2,247 149,967 Construction and land dev. 32,634 - - 3,555 3,555 36,189 Home equity and second mtg. 21,603 65 - 48 113 21,716 Commercial loans 65,747 - 138 1,361 1,499 67,246 Consumer loans 365 - 1 - 1 366 Commercial equipment 29,138 152 293 348 793 29,931 Total $ 907,206 $ 217 $ 731 $ 10,740 $ 11,688 $ 918,894 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 151,375 133 796 533 1,462 152,837 Construction and land dev. 32,736 - - 3,634 3,634 36,370 Home equity and second mtg. 20,939 90 24 399 513 21,452 Commercial loans 71,952 86 - 1,587 1,673 73,625 Consumer loans 612 1 - - 1 613 Commercial equipment 25,848 17 1 286 304 26,152 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 December 31, 2015 and 2014 were as follows: Credit Risk Profile by Internally Assigned Grade Commercial Real Estate Construction and Land Dev. (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Unrated $ 70,661 $ 74,955 $ 4,399 $ 3,108 Pass 519,330 451,256 27,507 27,160 Special mention 1,095 4,383 - - Substandard 22,393 30,486 3,845 6,102 Doubtful - - 438 - Loss - - - - Total $ 613,479 $ 561,080 $ 36,189 $ 36,370 Commercial Loans Commercial Equipment (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Unrated $ 11,281 $ 12,296 $ 10,074 $ 7,173 Pass 51,569 53,844 19,610 18,517 Special mention - 49 - - Substandard 4,110 7,436 110 462 Doubtful 286 - 137 - Loss - - - - Total $ 67,246 $ 73,625 $ 29,931 $ 26,152 Credit Risk Profile Based on Payment Activity Residential First Mortgages Home Equity and Second Mtg. Consumer Loans (dollars in thousands) 12/31/2015 12/31/2014 12/31/2015 12/31/2014 12/31/2015 12/31/2014 Performing $ 148,019 $ 152,304 $ 21,668 $ 21,053 $ 366 $ 613 Nonperforming 1,948 533 48 399 - - Total $ 149,967 $ 152,837 $ 21,716 $ 21,452 $ 366 $ 613 Summary of Total Classified Loans (dollars in thousands) 12/31/2015 12/31/2014 By Internally Assigned Grade $ 31,319 $ 44,486 By Payment Activity 1,485 2,249 Total Classified $ 32,804 $ 46,735 |
Impaired Financing Receivables | Impaired Loans and Troubled Debt Restructures (“TDRs”) Impaired loans, including TDRs, at December 31, 2015 and 2014 were as follows: December 31, 2015 (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 $ 25,429 $ 22,634 $ 2,367 $ 25,001 $ 602 $ 25,655 $ 908 Residential first mortgages 4,747 4,070 676 4,746 66 4,807 177 Construction and land dev. 4,283 3,780 504 4,284 471 4,302 13 Home equity and second mtg. 154 154 - 154 - 163 8 Commercial loans 4,775 4,195 380 4,575 330 4,524 251 Commercial equipment 518 338 139 477 139 491 9 Total $ 39,906 $ 35,171 $ 4,066 $ 39,237 $ 1,608 $ 39,942 $ 1,366 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 3,407 2,526 881 3,407 76 3,426 155 Construction and land dev. 6,402 6,102 - 6,102 - 6,474 133 Home equity and second mtg. 708 649 - 649 - 630 19 Commercial loans 7,587 7,030 406 7,436 155 7,196 252 Commercial equipment 605 373 213 586 123 623 23 Total $ 50,521 $ 45,587 $ 4,122 $ 49,709 $ 451 $ 50,021 $ 1,840 |
Troubled Debt Restructurings on Financing Receivables | TDRs, included in the impaired loan schedules above, as of December 31, 2015 and 2014 were as follows: December 31, 2015 December 31, 2014 (dollars in thousands) Dollars Number of Loans Dollars Number of Loans Commercial real estate $ 11,897 13 $ 10,438 9 Residential first mortgages 881 3 906 3 Construction and land development 4,283 5 4,376 4 Commercial loans 1,384 7 2,262 6 Commercial equipment 123 2 154 2 Total TDRs $ 18,568 30 $ 18,136 24 Less: TDRs included in non-accrual loans (5,435) (7) (4,887) (5) Total accrual TDR loans $ 13,133 23 $ 13,249 19 |
Schedule of Loans Contractual Terms to Maturity | The following table sets forth certain information at December 31, 2015 and 2014 regarding the dollar amount of loans maturing in the Bank’s portfolio based on their contractual terms to maturity. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. December 31, 2015 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2015 December 31, 2015 December 31, 2015 Real Estate Loans Commercial $ 53,502 $ 122,043 $ 437,934 Residential first mortgage 7,417 31,614 110,936 Construction and land development 27,609 5,025 3,555 Home equity and second mortgage 330 1,134 20,252 Commercial loans 67,246 - - Consumer loans 200 150 16 Commercial equipment 7,899 17,635 4,397 Total loans $ 164,203 $ 177,601 $ 577,090 December 31, 2014 Due within one Due after one year Due more than (dollars in thousands) year after through five years from five years from Description of Asset December 31, 2014 December 31, 2014 December 31, 2014 Real Estate Loans Commercial $ 114,300 $ 184,317 $ 262,463 Residential first mortgage 21,110 58,320 73,407 Construction and land development 26,867 9,503 - Home equity and second mortgage 2,238 6,926 12,288 Commercial loans 73,625 - - Consumer loans 303 275 35 Commercial equipment 17,497 5,826 2,829 Total loans $ 255,940 $ 265,167 $ 351,022 |
Schedule of Loans Due After One Year | The following table sets forth the dollar amount of all loans due after one year from December 31, 2015 and 2014, which have predetermined interest rates and have floating or adjustable interest rates. December 31, 2015 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 114,570 $ 445,407 $ 559,977 Residential first mortgage 109,041 33,509 142,550 Construction and land development 3,555 5,025 8,580 Home equity and second mortgage 1,806 19,580 21,386 Commercial loans - - - Consumer loans 166 - 166 Commercial equipment 20,145 1,887 22,032 $ 249,283 $ 505,408 $ 754,691 December 31, 2014 (dollars in thousands) Floating or Description of Asset Fixed Rates Adjustable Rates Total Real Estate Loans Commercial $ 92,367 $ 354,413 $ 446,780 Residential first mortgage 105,082 26,645 131,727 Construction and land development 3,859 5,644 9,503 Home equity and second mortgage 2,362 16,852 19,214 Commercial loans - - - Consumer loans 310 - 310 Commercial equipment 6,625 2,030 8,655 $ 210,605 $ 405,584 $ 616,189 |
Related Party Loans | At and For the Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance, beginning of period $ 24,403 $ 16,601 $ 6,987 Loans and additions 6,822 407 536 Change in Directors' status (642) 8,953 10,077 Repayments (2,478) (1,558) (999) Balance, end of period $ 28,105 $ 24,403 $ 16,601 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loan Servicing [Abstract] | |
Schedule of Participating Mortgage Loans | The following table presents the activity of the mortgage servicing rights. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance, beginning of the year $ 295 $ 306 $ 245 Additions 31 102 174 Amortization (107) (113) (113) Balance, end of the year $ 219 $ 295 $ 306 |
Other Real Estate Owned ("ORE38
Other Real Estate Owned ("OREO") (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Real Estate Owned ("OREO") [Abstract] | |
Foreclosed Real Estate Roll Forward | OREO assets are presented net of the allowance for losses. The Company considers OREO as classified assets for regulatory and financial reporting. 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. An analysis of the activity follows. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Balance at beginning of year $ 5,883 $ 6,797 $ 6,892 Additions of underlying property 5,436 2,742 1,852 Disposals of underlying property (1,206) (2,422) (1,346) Transfers of OREO to loans - (1,000) - Valuation allowance (664) (234) (601) Balance at end of period $ 9,449 $ 5,883 $ 6,797 |
Foreclosed Real Estate Expenses | Expenses applicable to OREO assets include the following. Years Ended December 31, (dollars in thousands) 2015 2014 2013 Valuation allowance $ 664 $ 234 $ 601 Operating expenses 395 152 186 $ 1,059 $ 386 $ 787 |
Premises and Equipment and He39
Premises and Equipment and Held for Sale Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
Property, Plant and Equipment | A summary of the cost and accumulated depreciation of premises and equipment at December 31, 2015 and 2014 follows: December 31, (dollars in thousands) 2015 2014 Land $ 4,172 $ 5,602 Building and improvements 19,737 18,286 Furniture and equipment 8,310 7,599 Automobiles 382 444 Total cost 32,601 31,931 Less accumulated depreciation 12,445 11,345 Premises and equipment, net $ 20,156 $ 20,586 |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum rental commitments under non-cancellable operating leases are as follows at December 31, 2015: (dollar in thousands) 2016 $ 705 2017 720 2018 585 2019 467 2020 356 Thereafter 3,430 Total $ 6,263 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of Deposits | Deposits consist of the following: December 31, (dollars in thousands) 2015 2014 Noninterest-bearing demand $ 142,771 $ 122,195 Interest-bearing: Demand 120,918 108,350 Money market deposits 219,956 211,929 Savings 47,703 41,499 Certificates of deposit 375,551 385,411 Total interest-bearing 764,128 747,189 Total Deposits $ 906,899 $ 869,384 |
Schedule of Deposits Maturities | At December 31, 2015 and 2014, the scheduled contractual maturities of certificates of deposit are as follows: December 31, (dollars in thousands) 2015 2014 Within one year $ 230,559 $ 240,648 Year 2 96,098 87,959 Year 3 32,975 40,675 Year 4 5,454 10,042 Year 5 10,465 6,087 $ 375,551 $ 385,411 |
Short-Term Borrowings and Lon41
Short-Term Borrowings and Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Short-Term Borrowings and Long-Term Debt [Abstract] | |
Schedule Related to the Classification of Debt Interest Rate | Rates and maturities on long-term advances and short-term borrowings were as follows: Fixed- Fixed-Rate Variable Rate Convertible Convertible December 31, 2015 Highest rate 2.83% 3.47% 4.00% Lowest rate 0.26% 3.47% 4.00% Weighted average rate 1.07% 3.47% 4.00% Matures through 2036 2018 2020 December 31, 2014 Highest rate 3.99% 3.47% 4.00% Lowest rate 0.31% 3.47% 4.00% Weighted average rate 1.80% 3.47% 4.00% Matures through 2036 2018 2020 |
Schedule of Debt | Average rates of long-term debt and short-term borrowings were as follows: At or for the Year Ended December 31, (dollars in thousands) 2015 2014 2013 Long-term debt Long-term debt outstanding at end of period $ 55,617 $ 74,672 $ 70,476 Weighted average rate on outstanding long-term debt 2.47% 2.35% 2.49% Maximum outstanding long-term debt of any month end 74,668 75,471 70,519 Average outstanding long-term debt 68,924 74,714 68,996 Approximate average rate paid on long-term debt 2.26% 2.39% 2.53% Short-term borrowings Short-term borrowings outstanding at end of period $ 36,000 $ 2,000 $ - Weighted average rate on short-term borrowings 0.38% 0.31% 0.00% Maximum outstanding short-term borrowings at any month end 36,000 15,000 24,000 Average outstanding short-term borrowings 13,463 4,344 4,278 Approximate average rate paid on short-term borrowings 0.27% 0.28% 0.33% |
Schedule of Maturities of Long-term Debt | The contractual maturities of long-term debt were as follows at December 31, 2015 and 2014: December 31, 2015 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2016 $ 5,000 $ - $ - $ 5,000 Due in 2017 20,000 - - 20,000 Due in 2018 - 10,000 - 10,000 Due in 2019 - - - - Due in 2020 - - 10,000 10,000 Thereafter 10,617 - - 10,617 $ 35,617 $ 10,000 $ 10,000 $ 55,617 December 31, 2014 Fixed- Fixed-Rate Variable (dollars in thousands) Rate Convertible Convertible Total Due in 2015 $ 19,000 $ - $ - $ 19,000 Due in 2016 5,000 - - 5,000 Due in 2017 20,000 - - 20,000 Due in 2018 - 10,000 - 10,000 Due in 2019 - - - - Thereafter 10,672 - 10,000 20,672 $ 54,672 $ 10,000 $ 10,000 $ 74,672 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes | Allocation of federal and state income taxes between current and deferred portions is as follows: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Current Federal $ 3,255 $ 2,005 $ 3,043 State 1,128 699 845 4,383 2,704 3,888 Deferred Federal (643) 926 (94) State (107) 146 (23) (750) 1,072 (117) Income Tax Expense $ 3,633 $ 3,776 $ 3,771 |
Schedule of Effective Income Tax Rate Reconciliation | The reasons for the differences between the statutory federal income tax rate and the effective tax rates are summarized as follows: Years Ended December 31, (dollars in thousands) 2015 2014 2013 Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Amount Percent of Pre-Tax Income Expected income tax expense at federal tax rate $ 3,392 34.00% $ 3,490 34.00% $ 3,544 34.00% State taxes net of federal benefit 647 6.49% 604 5.88% 577 5.54% Nondeductible expenses 40 0.40% 39 0.38% 35 0.34% Nontaxable income (398) (3.99%) (345) (3.36%) (340) (3.26%) Other (48) (0.48%) (12) (0.12%) (45) (0.43%) $ 3,633 36.42% $ 3,776 36.78% $ 3,771 36.18% |
Schedule of Deferred Tax Assets and Liabilities | The net deferred tax assets in the accompanying balance sheets include the following components: December 31, (dollars in thousands) 2015 2014 Deferred tax assets Deferred fees $ 168 $ - Allowance for loan losses 3,369 3,346 Deferred compensation 2,332 2,181 OREO valuation allowance & expenses 507 308 Unrealized loss on investment securities 163 246 Other 442 228 6,981 6,309 Deferred tax liabilities FHLB stock dividends 156 156 Depreciation 56 51 212 207 Net Deferred Tax Assets $ 6,769 $ 6,102 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following tables below summarize outstanding and exercisable options at December 31, 2015 and 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 87,436 $ 23.60 $ - Expired (66,225) 22.29 Outstanding at December 31, 2015 21,211 $ 27.70 $ - 1.0 Exercisable at December 31, 2015 21,211 $ 27.70 $ - 1.0 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 159,517 $ 20.12 $ 347 Exercised (45,163) 15.89 207 Forfeited (26,918) 15.89 Outstanding at December 31, 2014 87,436 $ 23.60 $ - 1.4 Exercisable at December 31, 2014 87,436 $ 23.60 $ - 1.4 |
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 December 31, 2015 Remaining Contractual Life Exercise Price 21,211 1 year $ 27.70 21,211 $ 27.70 |
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 December 31, 2015 and 2014, respectively. Restricted Stock Number of Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2015 29,472 $ 20.83 Granted 28,040 18.63 Vested (20,464) 19.62 Nonvested at December 31, 2015 37,048 $ 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 16,832 $ 17.86 4,210 $ 20.71 Granted 33,460 21.35 - - Vested (20,820) 19.26 (4,210) 20.28 Nonvested at December 31, 2014 29,472 $ 20.83 - $ - |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 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) December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Common Equity $ 99,783 $ 96,559 $ 132,571 $ 126,838 Preferred Stock -SBLF - 20,000 - - Total Stockholders' Equity 99,783 116,559 132,571 126,838 AOCI Losses (Gains) 251 378 251 378 Common Equity Tier 1 Capital 100,034 116,937 132,822 127,216 TRUPs 12,000 12,000 - - Tier 1 Capital 112,034 128,937 132,822 127,216 Allowable Reserve for Credit Losses and Other Tier 2 Adjustments 8,540 8,537 8,540 8,537 Subordinated Notes 23,000 - - - Tier 2 Capital $ 143,574 $ 137,474 $ 141,362 $ 135,753 Risk-Weighted Assets ("RWA") $ 984,614 $ 903,931 $ 982,347 $ 902,136 Average Assets ("AA") $ 1,118,843 $ 1,053,424 $ 1,116,576 $ 1,051,627 2019 Regulatory Min. Ratio + CCB (1) Common Tier 1 Capital to RWA (2) 7.00 % 10.16 % n/a % 13.52 % n/a % Tier 1 Capital to RWA 8.50 11.38 14.26 13.52 14.10 Tier 2 Capital to RWA 10.50 14.58 15.21 14.39 15.05 Tier 1 Capital to AA (Leverage) n/a 10.01 12.24 11.90 12.10 (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) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The tables below present the recorded amount of assets as of December 31, 2015 and December 31, 2014 measured at fair value on a recurring basis. (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Available for sale securities Asset-backed securities issued by GSEs CMOs $ 30,664 $ - $ 30,664 $ - MBS 26 - 26 - Corporate equity securities 39 - 39 - Bond mutual funds 4,387 - 4,387 - Total available for sale securities $ 35,116 $ - $ 35,116 $ - (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 37 - 37 - Corporate equity securities 40 - 40 - Bond mutual funds 4,321 - 4,321 - Total available for sale securities $ 41,939 $ - $ 41,939 $ - |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis as of December 31, 2015 and 2014 are included in the tables below. (dollars in thousands) December 31, 2015 Description of Asset Fair Value Level 1 Level 2 Level 3 Loans with impairment Commercial real estate $ 1,765 $ - $ 1,765 $ - Residential first mortgages 610 - 610 - Construction and land development 33 - 33 - Commercial loans 50 - 50 - Total loans with impairment $ 2,458 $ - $ 2,458 $ - Premises and equipment held for sale $ 2,000 $ - $ 2,000 $ - Other real estate owned $ 9,449 $ - $ 9,449 $ - (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 805 - 805 - Commercial loans 251 - 251 - Commercial equipment 90 - 90 - Total loans with impairment $ 3,670 $ - $ 3,670 $ - Other real estate owned $ 5,883 $ - $ 5,883 $ - |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value, by Balance Sheet Grouping | The Company’s estimated fair values of financial instruments are presented in the following tables. December 31, 2015 Fair Value Measurements Description of Asset (dollars in thousands) Carrying Amount Fair Value Level 1 Level 2 Level 3 Assets Investment securities - AFS $ 35,116 $ 35,116 $ - $ 35,116 $ - Investment securities - HTM 109,420 109,309 750 108,559 - FHLB and FRB Stock 6,931 6,931 - 6,931 - Loans Receivable 909,200 913,506 - 913,506 - Investment in BOLI 27,836 27,836 - 27,836 - Liabilities Savings, NOW and money market accounts $ 531,348 $ 531,348 $ - $ 531,348 $ - Time deposits 375,551 375,376 - 375,376 - Long-term debt 55,617 56,987 - 56,987 - Short term borrowings 36,000 36,000 - 36,000 - TRUPs 12,000 8,400 - 8,400 - Subordinated notes 23,000 23,000 - 23,000 - 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 84,506 84,915 850 84,065 - FHLB and FRB Stock 6,434 6,434 - 6,434 - Loans Receivable 862,409 861,427 - 861,427 - Investment in BOLI 27,021 27,021 - 27,021 - Liabilities Savings, NOW and money market accounts $ 483,973 $ 483,973 $ - $ 483,973 $ - Time deposits 385,411 386,510 - 386,510 - Long-term debt 74,672 77,919 - 77,919 - Short term borrowings 2,000 2,000 - 2,000 - TRUPs 12,000 7,400 - 7,400 - |
Condensed Financial Statement47
Condensed Financial Statements - Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Statements - Parent Company Only [Abstract] | |
Schedule of Condensed Balance Sheet | Balance Sheets December 31, (dollars in thousands) 2015 2014 Assets Cash - noninterest bearing $ 1,541 $ 1,064 Investment in wholly owned subsidiaries 132,943 127,210 Other assets 1,895 1,423 Total Assets $ 136,379 $ 129,697 Liabilities and Stockholders' Equity Current liabilities $ 1,224 $ 766 Guaranteed preferred beneficial interest in junior subordinated debentures 12,372 12,372 Subordinated notes - 6.25% 23,000 - Total Liabilities 36,596 13,138 Stockholders' Equity Preferred Stock - Series C - 20,000 Common stock 46 47 Additional paid in capital 46,809 46,416 Retained earnings 53,495 50,936 Accumulated other comprehensive loss (251) (378) Unearned ESOP shares (316) (462) Total Stockholders’ Equity 99,783 116,559 Total Liabilities and Stockholders’ Equity $ 136,379 $ 129,697 |
Schedule of Condensed Income Statement | Condensed Statements of Income Years Ended December 31, (dollars in thousands) 2015 2014 2013 Interest and Dividend Income Dividends from subsidiary $ 2,775 $ 3,500 $ - Interest income 51 6 46 Interest expense 1,599 312 305 Net Interest Income (Expense) 1,227 3,194 (259) Miscellaneous expenses (1,421) (1,427) (825) Income (Loss) before income taxes and equity in undistributed net income of subsidiary (194) 1,767 (1,084) Federal and state income tax benefit 1,009 589 368 Equity in undistributed net income of subsidiary 5,528 4,134 7,367 Net Income $ 6,343 $ 6,490 $ 6,651 Preferred stock dividends 23 200 200 Net Income Available to Common Shareholders $ 6,320 $ 6,290 $ 6,451 |
Schedule of Condensed Cash Flow Statement | Condensed Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2015 2014 2013 Cash Flows from Operating Activities Net income $ 6,343 $ 6,490 $ 6,651 Adjustments to reconcile net income to net cash provided by operating activities Equity in undistributed earnings of subsidiary (5,528) (4,134) (7,367) Stock based compensation 139 191 216 (Increase) Decrease in other assets (284) (259) 1,730 Decrease (Increase) deferred income tax benefit 23 162 (26) (Decrease) Increase in current liabilities 459 (145) 67 Net Cash Provided by Operating Activities 1,152 2,305 1,271 Cash Flows from Financing Activities Dividends paid (1,916) (2,055) (1,579) Proceeds from public offering - - 27,387 Downstream of capital to subsidiary (78) (15) (27,474) Proceeds from Subordinated Notes 23,000 - - Redemption of Small Business Lending Fund Preferred Stock (20,000) - - Exercise of stock options - 226 317 Net change in ESOP loan 146 201 355 Repurchase of common stock (1,827) - (536) Net Cash Used in Financing Activities (675) (1,643) (1,530) Increase (Decrease) in Cash 477 662 (259) Cash at Beginning of Year 1,064 402 661 Cash at End of Year $ 1,541 $ 1,064 $ 402 |
Quarterly Financial Compariso48
Quarterly Financial Comparison (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Comparison (Unaudited) [Abstract] | |
Schedule of Quarterly Financial Information | 2015 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 11,208 $ 11,002 $ 10,935 $ 10,728 Interest expense 1,860 1,918 1,902 1,665 Net interest income 9,348 9,084 9,033 9,063 Provision for loan losses 362 501 392 178 Net interest income after provision 8,986 8,583 8,641 8,885 Noninterest income 909 466 962 962 Noninterest expense 7,556 7,031 6,888 6,943 Income before income taxes 2,339 2,018 2,715 2,904 Provision for income taxes 811 735 1,004 1,083 Net Income (NI) $ 1,528 $ 1,283 $ 1,711 $ 1,821 Preferred stock dividends - - - 23 NI Available to Common Stockholders $ 1,528 $ 1,283 $ 1,711 $ 1,798 Earnings Per Common Share 1 Basic $ 0.33 $ 0.28 $ 0.37 $ 0.38 Diluted $ 0.33 $ 0.27 $ 0.37 $ 0.38 2014 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 10,663 $ 10,667 $ 10,254 $ 10,175 Interest expense 1,610 1,663 1,684 1,741 Net interest income 9,053 9,004 8,570 8,434 Provision for loan losses 1,502 385 563 203 Net interest income after provision 7,551 8,619 8,007 8,231 Noninterest income 1,225 1,118 855 895 Noninterest expense 6,652 6,485 6,767 6,331 Income before income taxes 2,124 3,252 2,095 2,795 Provision for income taxes 579 1,363 760 1,074 Net Income (NI) $ 1,545 $ 1,889 $ 1,335 $ 1,721 Preferred stock dividends 50 50 50 50 NI Available to Common Stockholders $ 1,495 $ 1,839 $ 1,285 $ 1,671 Earnings Per Common Share 1 Basic $ 0.32 $ 0.40 $ 0.28 $ 0.36 Diluted $ 0.32 $ 0.39 $ 0.28 $ 0.36 2013 Fourth Third Second First (dollars in thousands) Quarter Quarter Quarter Quarter Interest and dividend income $ 10,112 $ 9,975 $ 9,750 $ 9,841 Interest expense 1,732 1,873 2,018 2,023 Net interest income 8,380 8,102 7,732 7,818 Provision for loan losses 300 286 200 154 Net interest income after provision 8,080 7,816 7,532 7,664 Noninterest income 797 1,119 1,069 1,189 Noninterest expense 6,348 6,245 6,107 6,144 Income before income taxes 2,529 2,690 2,494 2,709 Provision for income taxes 885 987 909 990 Net Income (NI) $ 1,644 $ 1,703 $ 1,585 $ 1,719 Preferred stock dividends 50 50 50 50 NI Available to Common Stockholders $ 1,594 $ 1,653 $ 1,535 $ 1,669 Earnings Per Common Share 1 Basic $ 0.35 $ 0.55 $ 0.51 $ 0.55 Diluted $ 0.35 $ 0.55 $ 0.51 $ 0.54 (1) Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. In October 2013, the Company issued 1,591,300 shares of common stock at a price of $18.75 per share resulting in net proceeds of $27.4 million after commissions and related offering expenses. The additional shares outstanding impacted year to year comparability of per share earnings beginning with fourth quarter 2013 results |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Trading securities | $ 0 | $ 0 | $ 0 |
Loans held for sale | $ 0 | $ 0 | |
Building and Building Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 50 years | ||
Building and Building Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Schedule of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income [Abstract] | |||
Net unrealized holding gains (losses) arising during period, before tax | $ 216 | $ 981 | $ (1,813) |
Reclassification adjustments, before tax | (6) | (3) | |
Other comprehensive gain (loss), before tax | 210 | 978 | $ (1,813) |
Net unrealized holding gains (losses) arising during period, tax effect | 85 | 300 | (617) |
Reclassification adjustments, tax effect | (2) | (1) | 0 |
Other comprehensive gain (loss), tax effect | 83 | 299 | (617) |
Net unrealized holding gains (losses) arising during period, net of tax | 131 | 681 | $ (1,196) |
Reclassification adjustments, net of tax | (4) | (2) | |
Other comprehensive gain (loss), net of tax | $ 127 | $ 679 | $ (1,196) |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Income (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net unrealized gains and losses, beginning balance | $ (378) | $ (1,057) | $ 139 |
Other comprehensive gain (loss) before reclassifications | 131 | 681 | $ (1,196) |
Amounts reclassified from accumulated other comprehensive income | (4) | (2) | |
Net other comprehensive gain (loss) | 127 | 679 | $ (1,196) |
Net unrealized gains and losses, ending balance | (251) | (378) | $ (1,057) |
Parent Company [Member] | |||
Net unrealized gains and losses, beginning balance | (378) | ||
Net unrealized gains and losses, ending balance | $ (251) | $ (378) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted net income per share | 37,048 | ||
Employee Stock Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from diluted net income per share | 21,211 | 87,435 | 184,201 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 6,343 | $ 6,490 | $ 6,651 | ||||||||||||
Less: dividends paid and accrued on preferred stock | $ (23) | $ (50) | $ (50) | $ (50) | $ (50) | $ (50) | $ (50) | $ (50) | $ (50) | (23) | (200) | (200) | |||
Net income available to common shareholders | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | $ 1,495 | $ 1,839 | $ 1,285 | $ 1,671 | $ 1,594 | $ 1,653 | $ 1,535 | $ 1,669 | $ 6,320 | $ 6,290 | $ 6,451 |
Average number of common shares outstanding | 4,639,700 | 4,646,424 | 3,402,432 | ||||||||||||
Dilutive effect of common stock equivalents | 37,048 | 8,703 | 24,361 | ||||||||||||
Average number of shares used to calculate diluted earnings per share | 4,676,748 | 4,655,127 | 3,426,793 |
Restrictions on Cash and Amou54
Restrictions on Cash and Amounts Due from Banks (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Restrictions on Cash and Amounts Due from Banks [Abstract] | ||
Reserve balance maintained by bank | $ 797,000 | $ 500,000 |
Securities (Narrative) (Details
Securities (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Asset-backed securities pledged to secure certain deposits | $ 21,400,000 | $ 37,700,000 | |
Asset-backed securities pledged as collateral | 1,900,000 | 2,300,000 | |
Amount | 139,360,000 | 121,234,000 | |
Amortized cost, available for sale | 35,530,000 | 42,563,000 | |
Other than temporary impairment charges | 0 | 0 | $ 0 |
Losses (gains) on sales of HTM investment securities | 1,000 | (11,000) | |
Recognized net gain (loss) on sale of securities | 4,000 | 19,000 | |
Gains on sales of AFS investment securities | 5,000 | 8,000 | |
Securities held to maturity (HTM), at amortized cost | 109,420,000 | 84,506,000 | |
Securities available for sale (AFS), at fair value | 35,116,000 | 41,939,000 | |
Estimated Fair Value, held to maturity | 109,309,000 | 84,915,000 | |
Gross unrealized losses, available for sale | 557,000 | 830,000 | |
Fair value of HTM Securities with unrealized losses | 53,800,000 | 36,900,000 | |
Gross unrealized losses, held to maturity | 941,000 | 737,000 | |
Available-for-sale securities sold | 0 | ||
Held-to-maturity securities sold | $ 0 | ||
Held-To-Maturity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 67,000 | ||
Losses (gains) on sales of HTM investment securities | 1,000 | ||
Recognized net gain (loss) on sale of securities | 11,000 | ||
Held-to-maturity securities sold | 4,200,000 | ||
Available-For-Sale Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | 2,000,000 | ||
Recognized net gain (loss) on sale of securities | 8,000 | ||
Gains on sales of AFS investment securities | 5,000 | ||
Available-for-sale securities sold | 2,100,000 | ||
US Government Obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 850,000 | ||
Estimated Fair Value, held to maturity | 850,000 | ||
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 22,000 | 33,000 | |
Securities held to maturity (HTM), at amortized cost | 34,085,000 | 19,501,000 | |
Securities available for sale (AFS), at fair value | 26,000 | 37,000 | |
Estimated Fair Value, held to maturity | 34,395,000 | 20,223,000 | |
Gross unrealized losses, held to maturity | 242,000 | 45,000 | |
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 31,182,000 | 38,294,000 | |
Securities held to maturity (HTM), at amortized cost | 73,492,000 | 62,683,000 | |
Securities available for sale (AFS), at fair value | 30,664,000 | 37,541,000 | |
Estimated Fair Value, held to maturity | 73,171,000 | 62,482,000 | |
Gross unrealized losses, available for sale | 557,000 | 830,000 | |
Fair value of AFS Securities with unrealized losses | 22,000,000 | 27,200,000 | |
Gross unrealized losses, held to maturity | $ 599,000 | $ 580,000 | |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Available for sale securities, average life | 4 years 4 months 21 days | 3 years 7 months 28 days | |
Available for sale securities, average duration | 4 years 15 days | 3 years 4 months 28 days | |
Held to maturity securities, average life | 5 years 26 days | 3 years 4 months 24 days | |
Held to maturity securities, average duration | 4 years 6 months 29 days | 3 years 2 months 16 days | |
Available for sale securities with unrealized losses, average life | 4 years 5 months 12 days | 3 years 9 months 7 days | |
Available for sale securities with unrealized losses, average duration | 4 years 15 days | 3 years 5 months 16 days | |
Held to maturity securities with unrealized losses, average life | 5 years 5 months 1 day | 3 years 2 months 23 days | |
Held to maturity securities with unrealized losses, average duration | 4 years 9 months 11 days | 3 years 4 days | |
Securities held to maturity (HTM), at amortized cost | $ 107,600,000 | $ 82,200,000 | |
Gross unrealized losses, available for sale | 557,000 | 830,000 | |
Fair value of HTM Securities with unrealized losses | 52,800,000 | 35,600,000 | |
Gross unrealized losses, held to maturity | $ 841,000 | $ 625,000 | |
Asset-backed Securities, Issued by Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Held to maturity securities with unrealized losses, average life | 4 years 15 days | 4 years 3 months 7 days | |
Held to maturity securities with unrealized losses, average duration | 3 years 3 months 15 days | 3 years 7 months 13 days | |
Fair value of HTM Securities with unrealized losses | $ 992,000 | $ 1,300,000 | |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 1,093,000 | 1,472,000 | |
Estimated Fair Value, held to maturity | 993,000 | 1,360,000 | |
Gross unrealized losses, held to maturity | 100,000 | 112,000 | |
Debt Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 108,670,000 | 83,656,000 | |
Estimated Fair Value, held to maturity | 108,559,000 | 84,065,000 | |
Gross unrealized losses, held to maturity | 941,000 | 737,000 | |
Corporate Equity Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 37,000 | 37,000 | |
Securities available for sale (AFS), at fair value | 39,000 | 40,000 | |
Bond Mutual Funds [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amortized cost, available for sale | 4,289,000 | 4,199,000 | |
Securities available for sale (AFS), at fair value | 4,387,000 | 4,321,000 | |
US Government Obligations [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Securities held to maturity (HTM), at amortized cost | 750,000 | ||
Estimated Fair Value, held to maturity | 750,000 | ||
Standard Poor's, AAA Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 138,267,000 | $ 119,762,000 | |
Standard Poor's, AAA Rating [Member] | Asset Backed Securities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Percentage of asset backed securities in investment portfolio | 99.00% | 99.00% | |
Standard Poor's, BBB Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 68,000 | ||
Standard Poor's, BB Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 518,000 | $ 695,000 | |
Standard Poor's, BB - Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | |||
Standard Poor's, B+ Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 575,000 | ||
Standard Poor's CCC + Rating [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Amount | $ 709,000 |
Securities (Fair Value to Amort
Securities (Fair Value to Amortized Cost Basis) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | $ 35,530,000 | $ 42,563,000 |
Gross unrealized gains, available for sale | 143,000 | 206,000 |
Gross unrealized losses, available for sale | 557,000 | 830,000 |
Estimated fair value, available for sale | 35,116,000 | 41,939,000 |
Amortized cost, Held-to-maturity Securities | 109,420,000 | 84,506,000 |
Gross unrealized gains, held to maturity | 830,000 | 1,146,000 |
Gross unrealized losses, held to maturity | 941,000 | 737,000 |
Estimated Fair Value, held to maturity | 109,309,000 | 84,915,000 |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 850,000 | |
Estimated Fair Value, held to maturity | 850,000 | |
Residential Mortgage Backed Securities Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 22,000 | 33,000 |
Gross unrealized gains, available for sale | 4,000 | 4,000 |
Estimated fair value, available for sale | 26,000 | 37,000 |
Amortized cost, Held-to-maturity Securities | 34,085,000 | 19,501,000 |
Gross unrealized gains, held to maturity | 552,000 | 767,000 |
Gross unrealized losses, held to maturity | 242,000 | 45,000 |
Estimated Fair Value, held to maturity | 34,395,000 | 20,223,000 |
Residential Collateralized Mortgage Obligations, Issued By US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 31,182,000 | 38,294,000 |
Gross unrealized gains, available for sale | 39,000 | 77,000 |
Gross unrealized losses, available for sale | 557,000 | 830,000 |
Estimated fair value, available for sale | 30,664,000 | 37,541,000 |
Amortized cost, Held-to-maturity Securities | 73,492,000 | 62,683,000 |
Gross unrealized gains, held to maturity | 278,000 | 379,000 |
Gross unrealized losses, held to maturity | 599,000 | 580,000 |
Estimated Fair Value, held to maturity | 73,171,000 | 62,482,000 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Gross unrealized losses, available for sale | 557,000 | 830,000 |
Amortized cost, Held-to-maturity Securities | 107,600,000 | 82,200,000 |
Gross unrealized losses, held to maturity | 841,000 | 625,000 |
Residential Collateralized Mortgage Obligations, Issued By Private Enterprises [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 1,093,000 | 1,472,000 |
Gross unrealized losses, held to maturity | 100,000 | 112,000 |
Estimated Fair Value, held to maturity | 993,000 | 1,360,000 |
Debt Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 108,670,000 | 83,656,000 |
Gross unrealized gains, held to maturity | 830,000 | 1,146,000 |
Gross unrealized losses, held to maturity | 941,000 | 737,000 |
Estimated Fair Value, held to maturity | 108,559,000 | 84,065,000 |
Corporate Equity Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 37,000 | 37,000 |
Gross unrealized gains, available for sale | 2,000 | 3,000 |
Estimated fair value, available for sale | 39,000 | 40,000 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale | 4,289,000 | 4,199,000 |
Gross unrealized gains, available for sale | 98,000 | 122,000 |
Estimated fair value, available for sale | 4,387,000 | $ 4,321,000 |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, Held-to-maturity Securities | 750,000 | |
Estimated Fair Value, held to maturity | $ 750,000 |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Loss on Investments, AFS) (Details) - Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Less than 12 months, fair value | $ 4,658 | $ 294 |
More than 12 months, fair value | 17,344 | 26,856 |
Fair value | 22,002 | 27,150 |
Less than 12 months, unrealized loss | 28 | |
More than 12 months, unrealized loss | 529 | 830 |
Unrealized loss | $ 557 | $ 830 |
Securities (Schedule of Unrea58
Securities (Schedule of Unrealized Loss on Investments, HTM) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | $ 36,337 | $ 14,508 |
Less than 12 months, unrealized loss | 346 | 85 |
More than 12 months, fair value | 17,423 | 22,382 |
More than 12 months, unrealized loss | 595 | 652 |
Total, fair value | 53,760 | 36,890 |
Total, unrealized loss | 941 | 737 |
Asset-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Less than 12 months, fair value | 36,337 | 14,508 |
Less than 12 months, unrealized loss | 346 | 85 |
More than 12 months, fair value | 16,431 | 21,091 |
More than 12 months, unrealized loss | 495 | 540 |
Total, fair value | 52,768 | 35,599 |
Total, unrealized loss | 841 | 625 |
Asset-backed Securities, Issued by Private Enterprises [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
More than 12 months, fair value | 992 | 1,291 |
More than 12 months, unrealized loss | 100 | 112 |
Total, fair value | 992 | 1,291 |
Total, unrealized loss | $ 100 | $ 112 |
Securities (Investments Classif
Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, total | $ 35,493 | $ 42,526 |
Estimated fair value, available for sale, total | 35,077 | 41,899 |
Amortized cost, held to maturity, total | 109,420 | 84,506 |
Estimated fair value, held to maturity, total | 109,309 | 84,915 |
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, held to maturity, within one year | 750 | |
Estimated fair value, held to maturity, within one year | 750 | |
Asset Backed Securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | 6,075 | 8,084 |
Amortized cost, available for sale, over one year through five years | 15,355 | 19,708 |
Amortized cost, available for sale, over five years through ten years | 7,727 | 8,671 |
Amortized cost, available for sale, after ten years | 2,047 | 1,865 |
Amortized cost, available for sale, total | 31,204 | 38,328 |
Estimated fair value, available for sale, within one year | 5,975 | 7,926 |
Estimated fair value, available for sale, over one year through five years | 15,102 | 19,323 |
Estimated fair value, available for sale, over five years through ten years | 7,600 | 8,501 |
Estimated fair value, available for sale, after ten years | 2,013 | 1,829 |
Estimated fair value, available for sale, total | 30,690 | 37,579 |
Amortized cost, held to maturity, within one year | 21,850 | 20,647 |
Amortized cost, held to maturity, over one year through five years | 50,895 | 44,575 |
Amortized cost, held to maturity, over five years through ten years | 23,259 | 14,299 |
Amortized cost, held to maturity, after ten years | 12,666 | 4,135 |
Amortized cost, held to maturity, total | 108,670 | 83,656 |
Estimated fair value, held to maturity, within one year | 21,828 | 20,748 |
Estimated fair value, held to maturity, over one year through five years | 50,843 | 44,793 |
Estimated fair value, held to maturity, over five years through ten years | 23,235 | 14,369 |
Estimated fair value, held to maturity, after ten years | 12,653 | 4,155 |
Estimated fair value, held to maturity, total | 108,559 | 84,065 |
Bond Mutual Funds [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | 4,289 | 4,198 |
Estimated fair value, available for sale, within one year | $ 4,387 | $ 4,320 |
Amortized cost, held to maturity, within one year | ||
Estimated fair value, held to maturity, within one year | ||
US Government Obligations [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Amortized cost, available for sale, within one year | ||
Estimated fair value, available for sale, within one year | ||
Amortized cost, held to maturity, within one year | $ 850 | |
Estimated fair value, held to maturity, within one year | $ 850 |
Securities (Financing Receivabl
Securities (Financing Receivable Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 139,360 | $ 121,234 |
Standard Poor's, AAA Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 138,267 | 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 | $ 518 | $ 695 |
Standard Poor's, BB - Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | ||
Standard Poor's, B+ Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 575 | |
Standard Poor's CCC + Rating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Amount | $ 709 |
Loans (Narrative) (Details)
Loans (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)propertyloan | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable, allowance percentage | 0.93% | 0.97% | ||
Total number of loans | loan | 38 | 31 | ||
90 or greater days delinquent | $ 10,740,000 | $ 10,263,000 | ||
Total non-accrual loans | 11,433,000 | 10,263,000 | ||
Loan portfolio | 918,894,000 | 872,129,000 | $ 808,240,000 | |
Allowance for loan loss | $ 8,540,000 | $ 8,481,000 | ||
Loans added to troubled debt restructuring | loan | 10 | 19 | ||
Loans removed from troubled debt restructuring | loan | 4 | 8 | ||
Amount of loans added to troubled debt restructuring | $ 3,200,000 | $ 16,600,000 | ||
Amount of loans removed from troubled debt restructuring | 2,100,000 | 2,400,000 | ||
Interest income recognized on outstanding TDR loans | 508,000 | 563,000 | ||
TDR loan principal curtailment | 677,000 | 810,000 | ||
Charge-offs | 1,458,000 | 2,642,000 | 1,162,000 | |
Loans, carrying amount | 909,200,000 | 862,409,000 | ||
Non-accrual performing loans | 693,000 | |||
90 or greater days | 10,740,000 | 10,263,000 | ||
Loans receivable from related parties | $ 28,105,000 | $ 24,403,000 | 16,601,000 | $ 6,987,000 |
Number of TDR loans | loan | 30 | 24 | ||
Number of accrual TDR loans | loan | 23 | 19 | ||
Financing receivable post modification recorded investment | $ 18,568,000 | $ 18,136,000 | ||
Accrual TDR loans | 13,133,000 | 13,249,000 | ||
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 | $ 1,700,000 | $ 1,000,000 | ||
Number of accruing loans 90 days or greater past due | loan | 3 | 1 | ||
Nine Troubled Debt Restructuring Loans with Reserves [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Specific reserves for TDR loans | $ 1,300,000 | |||
Number of TDR loans | loan | 9 | |||
Financing receivable post modification recorded investment | $ 3,600,000 | |||
Five Troubled Debt Restructuring Loans with Reserves [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Specific reserves for TDR loans | $ 251,000 | |||
Number of TDR loans | loan | 5 | |||
Financing receivable post modification recorded investment | $ 2,500,000 | |||
Two Substandard Customer Loan Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount of loans added to troubled debt restructuring | 10,100,000 | |||
First Substandard Customer Loan Relationship [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount of loans added to troubled debt restructuring | 8,600,000 | |||
Charge-offs | 500,000 | |||
Loans, carrying amount | 8,100,000 | 8,200,000 | ||
Second Substandard Customer Loan Relationship [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Amount of loans added to troubled debt restructuring | 3,800,000 | |||
Charge-offs | $ 843,000 | |||
Number of finished lots taken into OREO | property | 11 | |||
Loans, carrying amount | 1,400,000 | $ 1,900,000 | ||
Other real estate, carrying amount | $ 486,000 | 757,000 | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and leases receivable, allowance percentage | 80.00% | |||
Loan portfolio | $ 613,479,000 | $ 561,080,000 | 476,648,000 | |
Percentage status of loan in portfolio | 5.30% | 4.40% | ||
Amount of loans added to troubled debt restructuring | $ 3,200,000 | |||
Charge-offs | 78,000 | $ 350,000 | 140,000 | |
90 or greater days | $ 3,480,000 | $ 3,824,000 | ||
Number of TDR loans | loan | 13 | 9 | ||
Financing receivable post modification recorded investment | $ 11,897,000 | $ 10,438,000 | ||
Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 67,246,000 | 73,625,000 | 94,176,000 | |
Charge-offs | 432,000 | 1,134,000 | 480,000 | |
90 or greater days | $ 1,361,000 | $ 1,587,000 | ||
Number of TDR loans | loan | 7 | 6 | ||
Financing receivable post modification recorded investment | $ 1,384,000 | $ 2,262,000 | ||
Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 29,931,000 | 26,152,000 | 23,738,000 | |
Charge-offs | 818,000 | 10,000 | 35,000 | |
90 or greater days | $ 348,000 | $ 286,000 | ||
Number of TDR loans | loan | 2 | 2 | ||
Financing receivable post modification recorded investment | $ 123,000 | $ 154,000 | ||
Residential First Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 149,967,000 | 152,837,000 | 159,147,000 | |
Charge-offs | 30,000 | 94,000 | $ 348,000 | |
90 or greater days | $ 1,948,000 | $ 533,000 | ||
Number of TDR loans | loan | 3 | 3 | ||
Financing receivable post modification recorded investment | $ 881,000 | $ 906,000 | ||
Adjustable Rate Residential First Mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 33,600,000 | $ 27,400,000 | ||
Percentage status of loan in portfolio | 3.70% | 3.10% | ||
Nineteen Loans Representing Six Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Nonaccrual loans with deferred collection of principal and interest for one year | $ 3,800,000 | |||
Sixteen Loans Representing Six Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Nonaccrual loans with deferred collection of principal and interest for one year | $ 3,900,000 | |||
Nonaccrual Loans With No Impairment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total non-accrual loans | 10,500,000 | 9,300,000 | ||
Interest due to debt | 953,000 | 781,000 | ||
Nonaccrual Loans With Impairment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total non-accrual loans | 902,000 | 1,000,000 | ||
Interest due to debt | $ 34,000 | 64,000 | ||
Minimum [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 3 years | |||
Minimum [Member] | Residential First Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 10 years | |||
Maximum [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 20 years | |||
Maximum [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 5 years | |||
Maximum [Member] | Residential First Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Debt maturity period | 30 years | |||
Unrated [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 70,661,000 | 74,955,000 | ||
Unrated [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 11,281,000 | 12,296,000 | ||
Unrated [Member] | Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 10,074,000 | 7,173,000 | ||
Pass [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 519,330,000 | 451,256,000 | ||
Pass [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 51,569,000 | 53,844,000 | ||
Pass [Member] | Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 19,610,000 | 18,517,000 | ||
Special Mention [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 1,095,000 | 4,383,000 | ||
Special Mention [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 49,000 | |||
Special Mention [Member] | Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | ||||
Substandard [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 22,393,000 | $ 30,486,000 | ||
Substandard [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 4,110,000 | 7,436,000 | ||
Substandard [Member] | Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | 110,000 | 462,000 | ||
Substandard [Member] | Nineteen Loans Representing Six Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 8,100,000 | |||
Percentage status of loan in portfolio | 71.00% | |||
Substandard [Member] | Sixteen Loans Representing Six Customer Relationships [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 8,800,000 | |||
Percentage status of loan in portfolio | 86.00% | |||
Doubtful [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | ||||
Doubtful [Member] | Commercial Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 286,000 | |||
Doubtful [Member] | Commercial Equipment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 137,000 | |||
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 First Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 148,019,000 | $ 152,304,000 | ||
Nonperforming Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
90 or greater days delinquent | $ 10,300,000 | |||
Increase (decrease) in loans | 1,100,000 | |||
Loan portfolio | $ 11,400,000 | |||
Percentage status of loan in portfolio | 1.24% | 1.18% | ||
Nonperforming Financing Receivable [Member] | Residential First Mortgages [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan portfolio | $ 1,948,000 | $ 533,000 |
Loans (Schedule of Accounts, No
Loans (Schedule of Accounts, Notes, Loans and Financing Receivable) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 918,894 | $ 872,129 | $ 808,240 |
Less: | |||
Deferred loan fees | 1,154 | 1,239 | |
Allowance for loan losses | 8,540 | 8,481 | |
Loans and leases receivable adjustments | 9,694 | 9,720 | |
Loans and leases receivable net reported amount | 909,200 | 862,409 | |
Commercial Equipment [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 29,931 | 26,152 | 23,738 |
Consumer Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 366 | 613 | 838 |
Commercial Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 67,246 | 73,625 | 94,176 |
Home Equity and Second Mortgage [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 21,716 | 21,452 | 21,692 |
Construction and Land Development [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 36,189 | 36,370 | 32,001 |
Residential First Mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 149,967 | 152,837 | 159,147 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 613,479 | $ 561,080 | $ 476,648 |
Loans (Schedule of Financing Re
Loans (Schedule of Financing Receivables, Non-Accrual Status) (Details) $ in Thousands | Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 10,740 | $ 10,263 |
Number of loans, 90 or greater days delinquent | loan | 36 | 31 |
Non-accrual performing loans | $ | $ 693 | |
Number of loans, non-accrual performing loans | loan | 2 | |
Total non-accrual loans | $ | $ 11,433 | $ 10,263 |
Total number of loans | loan | 38 | 31 |
Commercial Equipment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 348 | $ 286 |
Number of loans, 90 or greater days delinquent | loan | 4 | 4 |
Total non-accrual loans | $ | $ 348 | $ 286 |
Total number of loans | loan | 4 | 4 |
Commercial Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 1,361 | $ 1,587 |
Number of loans, 90 or greater days delinquent | loan | 8 | 6 |
Non-accrual performing loans | $ | $ 693 | |
Number of loans, non-accrual performing loans | loan | 2 | |
Total non-accrual loans | $ | $ 2,054 | $ 1,587 |
Total number of loans | loan | 10 | 6 |
Home Equity and Second Mortgage [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 48 | $ 399 |
Number of loans, 90 or greater days delinquent | loan | 3 | 6 |
Total non-accrual loans | $ | $ 48 | $ 399 |
Total number of loans | loan | 3 | 6 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 3,555 | $ 3,634 |
Number of loans, 90 or greater days delinquent | loan | 3 | 2 |
Total non-accrual loans | $ | $ 3,555 | $ 3,634 |
Total number of loans | loan | 3 | 2 |
Residential First Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 1,948 | $ 533 |
Number of loans, 90 or greater days delinquent | loan | 7 | 2 |
Total non-accrual loans | $ | $ 1,948 | $ 533 |
Total number of loans | loan | 7 | 2 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
90 or greater days delinquent | $ | $ 3,480 | $ 3,824 |
Number of loans, 90 or greater days delinquent | loan | 11 | 11 |
Total non-accrual loans | $ | $ 3,480 | $ 3,824 |
Total number of loans | loan | 11 | 11 |
Loans (Past Due Financing Recei
Loans (Past Due Financing Receivables) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current | $ 907,206 | $ 860,046 | |
31-60 Days | 217 | 327 | |
61-89 Days | 731 | 1,493 | |
90 or greater days | 10,740 | 10,263 | |
Total Past Due | 11,688 | 12,083 | |
Total Loan Receivables | 918,894 | 872,129 | $ 808,240 |
Commercial Equipment [Member] | |||
Current | 29,138 | 25,848 | |
31-60 Days | 152 | 17 | |
61-89 Days | 293 | 1 | |
90 or greater days | 348 | 286 | |
Total Past Due | 793 | 304 | |
Total Loan Receivables | 29,931 | 26,152 | 23,738 |
Consumer Loans [Member] | |||
Current | 365 | 612 | |
31-60 Days | 1 | ||
61-89 Days | 1 | ||
Total Past Due | 1 | 1 | |
Total Loan Receivables | 366 | 613 | 838 |
Commercial Loans [Member] | |||
Current | 65,747 | 71,952 | |
31-60 Days | 86 | ||
61-89 Days | 138 | ||
90 or greater days | 1,361 | 1,587 | |
Total Past Due | 1,499 | 1,673 | |
Total Loan Receivables | 67,246 | 73,625 | 94,176 |
Home Equity and Second Mortgage [Member] | |||
Current | 21,603 | 20,939 | |
31-60 Days | 65 | 90 | |
61-89 Days | 24 | ||
90 or greater days | 48 | 399 | |
Total Past Due | 113 | 513 | |
Total Loan Receivables | 21,716 | 21,452 | 21,692 |
Construction and Land Development [Member] | |||
Current | 32,634 | 32,736 | |
90 or greater days | 3,555 | 3,634 | |
Total Past Due | 3,555 | 3,634 | |
Total Loan Receivables | 36,189 | 36,370 | 32,001 |
Residential First Mortgages [Member] | |||
Current | 147,720 | 151,375 | |
31-60 Days | 133 | ||
61-89 Days | 299 | 796 | |
90 or greater days | 1,948 | 533 | |
Total Past Due | 2,247 | 1,462 | |
Total Loan Receivables | 149,967 | 152,837 | 159,147 |
Commercial Real Estate [Member] | |||
Current | 609,999 | 556,584 | |
61-89 Days | 672 | ||
90 or greater days | 3,480 | 3,824 | |
Total Past Due | 3,480 | 4,496 | |
Total Loan Receivables | $ 613,479 | $ 561,080 | $ 476,648 |
Loans (Impaired Financing Recei
Loans (Impaired Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Unpaid contractual principal balance | $ 39,906 | $ 50,521 |
Recorded investment with no allowance | 35,171 | 45,587 |
Recorded investment with allowance | 4,066 | 4,122 |
Total recorded investment | 39,237 | 49,709 |
Related allowance | 1,608 | 451 |
Average recorded investment | 39,942 | 50,021 |
Interest income recognized | 1,366 | 1,840 |
Commercial Loans [Member] | ||
Unpaid contractual principal balance | 4,775 | 7,587 |
Recorded investment with no allowance | 4,195 | 7,030 |
Recorded investment with allowance | 380 | 406 |
Total recorded investment | 4,575 | 7,436 |
Related allowance | 330 | 155 |
Average recorded investment | 4,524 | 7,196 |
Interest income recognized | 251 | 252 |
Commercial Equipment [Member] | ||
Unpaid contractual principal balance | 518 | 605 |
Recorded investment with no allowance | 338 | 373 |
Recorded investment with allowance | 139 | 213 |
Total recorded investment | 477 | 586 |
Related allowance | 139 | 123 |
Average recorded investment | 491 | 623 |
Interest income recognized | 9 | 23 |
Home Equity and Second Mortgage [Member] | ||
Unpaid contractual principal balance | 154 | 708 |
Recorded investment with no allowance | 154 | 649 |
Total recorded investment | 154 | 649 |
Average recorded investment | 163 | 630 |
Interest income recognized | 8 | 19 |
Construction and Land Development [Member] | ||
Unpaid contractual principal balance | 4,283 | 6,402 |
Recorded investment with no allowance | 3,780 | 6,102 |
Recorded investment with allowance | 504 | |
Total recorded investment | 4,284 | 6,102 |
Related allowance | 471 | |
Average recorded investment | 4,302 | 6,474 |
Interest income recognized | 13 | 133 |
Residential First Mortgages [Member] | ||
Unpaid contractual principal balance | 4,747 | 3,407 |
Recorded investment with no allowance | 4,070 | 2,526 |
Recorded investment with allowance | 676 | 881 |
Total recorded investment | 4,746 | 3,407 |
Related allowance | 66 | 76 |
Average recorded investment | 4,807 | 3,426 |
Interest income recognized | 177 | 155 |
Commercial Real Estate [Member] | ||
Unpaid contractual principal balance | 25,429 | 31,812 |
Recorded investment with no allowance | 22,634 | 28,907 |
Recorded investment with allowance | 2,367 | 2,622 |
Total recorded investment | 25,001 | 31,529 |
Related allowance | 602 | 97 |
Average recorded investment | 25,655 | 31,672 |
Interest income recognized | $ 908 | $ 1,258 |
Loans (Troubled Debt Restructur
Loans (Troubled Debt Restructurings on Financing Receivables) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Financing receivable post modification recorded investment | $ | $ 18,568 | $ 18,136 |
Less: TDRs included in non-accrual loans | $ | (5,435) | (4,887) |
Accrual TDR loans | $ | $ 13,133 | $ 13,249 |
Number of TDR loans | loan | 30 | 24 |
Number of non-accrual TDR loans | loan | (7) | (5) |
Number of accrual TDR loans | loan | 23 | 19 |
Commercial Equipment [Member] | ||
Financing receivable post modification recorded investment | $ | $ 123 | $ 154 |
Number of TDR loans | loan | 2 | 2 |
Commercial Loans [Member] | ||
Financing receivable post modification recorded investment | $ | $ 1,384 | $ 2,262 |
Number of TDR loans | loan | 7 | 6 |
Construction and Land Development [Member] | ||
Financing receivable post modification recorded investment | $ | $ 4,283 | $ 4,376 |
Number of TDR loans | loan | 5 | 4 |
Residential First Mortgages [Member] | ||
Financing receivable post modification recorded investment | $ | $ 881 | $ 906 |
Number of TDR loans | loan | 3 | 3 |
Commercial Real Estate [Member] | ||
Financing receivable post modification recorded investment | $ | $ 11,897 | $ 10,438 |
Number of TDR loans | loan | 13 | 9 |
Loans (Allowance for Credit Los
Loans (Allowance for Credit Losses on Financing Receivables) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for loan losses: | |||
Beginning Balance | $ 8,481 | $ 8,138 | $ 8,247 |
Charge-offs | (1,458) | (2,642) | (1,162) |
Recoveries | 84 | 332 | 113 |
Provisions | 1,433 | 2,653 | 940 |
Ending Balance | 8,540 | 8,481 | 8,138 |
Ending balance: individually evaluated for impairment | 1,608 | 451 | 985 |
Ending balance: collectively evaluated for impairment | 6,932 | 8,030 | 7,153 |
Loan receivables: | |||
Loans | 918,894 | 872,129 | 808,240 |
Ending balance: individually evaluated for impairment | 39,237 | 49,709 | 38,006 |
Ending balance: collectively evaluated for impairment | 879,657 | 822,420 | 770,234 |
Commercial Equipment [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 389 | 453 | 292 |
Charge-offs | (818) | (10) | (35) |
Recoveries | 23 | 25 | 58 |
Provisions | 1,635 | (79) | 138 |
Ending Balance | 1,229 | 389 | 453 |
Ending balance: individually evaluated for impairment | 139 | 123 | 83 |
Ending balance: collectively evaluated for impairment | 1,090 | 266 | 370 |
Loan receivables: | |||
Loans | 29,931 | 26,152 | 23,738 |
Ending balance: individually evaluated for impairment | 477 | 586 | 317 |
Ending balance: collectively evaluated for impairment | 29,454 | 25,566 | 23,421 |
Commercial Loans [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 1,677 | 1,916 | 1,948 |
Charge-offs | (432) | (1,134) | (480) |
Recoveries | 11 | 5 | 23 |
Provisions | 221 | 890 | 425 |
Ending Balance | 1,477 | 1,677 | 1,916 |
Ending balance: individually evaluated for impairment | 330 | 155 | 304 |
Ending balance: collectively evaluated for impairment | 1,147 | 1,522 | 1,612 |
Loan receivables: | |||
Loans | 67,246 | 73,625 | 94,176 |
Ending balance: individually evaluated for impairment | 4,575 | 7,436 | 10,218 |
Ending balance: collectively evaluated for impairment | 62,671 | 66,189 | 83,958 |
Consumer Loans [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 3 | 10 | 19 |
Charge-offs | (3) | (12) | |
Recoveries | 11 | 3 | |
Provisions | (1) | (15) | |
Ending Balance | 2 | 3 | 10 |
Ending balance: collectively evaluated for impairment | 2 | 3 | 10 |
Loan receivables: | |||
Loans | 366 | 613 | 838 |
Ending balance: individually evaluated for impairment | 24 | ||
Ending balance: collectively evaluated for impairment | 366 | 613 | 814 |
Home Equity and Second Mortgage [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 173 | 249 | 280 |
Charge-offs | (100) | (59) | (111) |
Recoveries | 10 | 17 | |
Provisions | 69 | (27) | 63 |
Ending Balance | 142 | 173 | 249 |
Ending balance: collectively evaluated for impairment | 142 | 173 | 249 |
Loan receivables: | |||
Loans | 21,716 | 21,452 | 21,692 |
Ending balance: individually evaluated for impairment | 154 | 649 | 207 |
Ending balance: collectively evaluated for impairment | 21,562 | 20,803 | 21,485 |
Construction and Land Development [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 1,071 | 584 | 533 |
Charge-offs | (992) | (36) | |
Recoveries | 32 | 84 | 1 |
Provisions | 1,395 | 86 | |
Ending Balance | 1,103 | 1,071 | 584 |
Ending balance: individually evaluated for impairment | 471 | 55 | |
Ending balance: collectively evaluated for impairment | 632 | 1,071 | 529 |
Loan receivables: | |||
Loans | 36,189 | 36,370 | 32,001 |
Ending balance: individually evaluated for impairment | 4,284 | 6,102 | 5,666 |
Ending balance: collectively evaluated for impairment | 31,905 | 30,268 | 26,335 |
Residential First Mortgages [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 1,092 | 1,401 | 1,083 |
Charge-offs | (30) | (94) | (348) |
Recoveries | 1 | 186 | 11 |
Provisions | (358) | (401) | 655 |
Ending Balance | 705 | 1,092 | 1,401 |
Ending balance: individually evaluated for impairment | 66 | 76 | 171 |
Ending balance: collectively evaluated for impairment | 639 | 1,016 | 1,230 |
Loan receivables: | |||
Loans | 149,967 | 152,837 | 159,147 |
Ending balance: individually evaluated for impairment | 4,746 | 3,407 | 3,401 |
Ending balance: collectively evaluated for impairment | 145,221 | 149,430 | 155,746 |
Commercial Real Estate [Member] | |||
Allowance for loan losses: | |||
Beginning Balance | 4,076 | 3,525 | 4,092 |
Charge-offs | (78) | (350) | (140) |
Recoveries | 17 | 11 | |
Provisions | (133) | 890 | (427) |
Ending Balance | 3,882 | 4,076 | 3,525 |
Ending balance: individually evaluated for impairment | 602 | 97 | 372 |
Ending balance: collectively evaluated for impairment | 3,280 | 3,979 | 3,153 |
Loan receivables: | |||
Loans | 613,479 | 561,080 | 476,648 |
Ending balance: individually evaluated for impairment | 25,001 | 31,529 | 18,173 |
Ending balance: collectively evaluated for impairment | $ 588,478 | $ 529,551 | $ 458,475 |
Loans (Schedule of Financing 68
Loans (Schedule of Financing Receivable Recorded Investment Credit Quality Indicator) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Loans | $ 918,894 | $ 872,129 | $ 808,240 |
Nonperforming Financing Receivable [Member] | |||
Loans | 11,400 | ||
Commercial Equipment [Member] | |||
Loans | 29,931 | 26,152 | 23,738 |
Commercial Equipment [Member] | Unrated [Member] | |||
Loans | 10,074 | 7,173 | |
Commercial Equipment [Member] | Pass [Member] | |||
Loans | $ 19,610 | $ 18,517 | |
Commercial Equipment [Member] | Special Mention [Member] | |||
Loans | |||
Commercial Equipment [Member] | Substandard [Member] | |||
Loans | $ 110 | $ 462 | |
Commercial Equipment [Member] | Doubtful [Member] | |||
Loans | $ 137 | ||
Commercial Equipment [Member] | Loss [Member] | |||
Loans | |||
Commercial Loans [Member] | |||
Loans | $ 67,246 | $ 73,625 | 94,176 |
Commercial Loans [Member] | Unrated [Member] | |||
Loans | 11,281 | 12,296 | |
Commercial Loans [Member] | Pass [Member] | |||
Loans | $ 51,569 | 53,844 | |
Commercial Loans [Member] | Special Mention [Member] | |||
Loans | 49 | ||
Commercial Loans [Member] | Substandard [Member] | |||
Loans | $ 4,110 | $ 7,436 | |
Commercial Loans [Member] | Doubtful [Member] | |||
Loans | $ 286 | ||
Commercial Loans [Member] | Loss [Member] | |||
Loans | |||
Consumer Loans [Member] | |||
Loans | $ 366 | $ 613 | 838 |
Consumer Loans [Member] | Performing Financing Receivable [Member] | |||
Loans | $ 366 | $ 613 | |
Consumer Loans [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | |||
Home Equity and Second Mortgage [Member] | |||
Loans | $ 21,716 | $ 21,452 | 21,692 |
Home Equity and Second Mortgage [Member] | Performing Financing Receivable [Member] | |||
Loans | 21,668 | 21,053 | |
Home Equity and Second Mortgage [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 48 | 399 | |
Residential First Mortgages [Member] | |||
Loans | 149,967 | 152,837 | 159,147 |
Residential First Mortgages [Member] | Performing Financing Receivable [Member] | |||
Loans | 148,019 | 152,304 | |
Residential First Mortgages [Member] | Nonperforming Financing Receivable [Member] | |||
Loans | 1,948 | 533 | |
Construction and Land Development [Member] | |||
Loans | 36,189 | 36,370 | 32,001 |
Construction and Land Development [Member] | Unrated [Member] | |||
Loans | 4,399 | 3,108 | |
Construction and Land Development [Member] | Pass [Member] | |||
Loans | $ 27,507 | $ 27,160 | |
Construction and Land Development [Member] | Special Mention [Member] | |||
Loans | |||
Construction and Land Development [Member] | Substandard [Member] | |||
Loans | $ 3,845 | $ 6,102 | |
Construction and Land Development [Member] | Doubtful [Member] | |||
Loans | $ 438 | ||
Construction and Land Development [Member] | Loss [Member] | |||
Loans | |||
Commercial Real Estate [Member] | |||
Loans | $ 613,479 | $ 561,080 | $ 476,648 |
Commercial Real Estate [Member] | Unrated [Member] | |||
Loans | 70,661 | 74,955 | |
Commercial Real Estate [Member] | Pass [Member] | |||
Loans | 519,330 | 451,256 | |
Commercial Real Estate [Member] | Special Mention [Member] | |||
Loans | 1,095 | 4,383 | |
Commercial Real Estate [Member] | Substandard [Member] | |||
Loans | $ 22,393 | $ 30,486 | |
Commercial Real Estate [Member] | Doubtful [Member] | |||
Loans | |||
Commercial Real Estate [Member] | Loss [Member] | |||
Loans | |||
Classified Loans [Member] | |||
Loans | $ 32,804 | $ 46,735 | |
Classified Loans [Member] | Classified Loans By Internally Assigned Grade [Member] | |||
Loans | 31,319 | 44,486 | |
Classified Loans [Member] | Classified Loans By Payment Activity [Member] | |||
Loans | $ 1,485 | $ 2,249 |
Loans (Loans Maturing in Portfo
Loans (Loans Maturing in Portfolio Based on Contractual Terms) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Contract receivable, due whithin one year | $ 164,203 | $ 255,940 |
Contract receivable, due after one year through five years | 177,601 | 265,167 |
Contract receivable, due in more than five years | 577,090 | 351,022 |
Commercial Equipment [Member] | ||
Contract receivable, due whithin one year | 7,899 | 17,497 |
Contract receivable, due after one year through five years | 17,635 | 5,826 |
Contract receivable, due in more than five years | 4,397 | 2,829 |
Consumer Loans [Member] | ||
Contract receivable, due whithin one year | 200 | 303 |
Contract receivable, due after one year through five years | 150 | 275 |
Contract receivable, due in more than five years | 16 | 35 |
Commercial Loans [Member] | ||
Contract receivable, due whithin one year | 67,246 | 73,625 |
Home Equity and Second Mortgage [Member] | ||
Contract receivable, due whithin one year | 330 | 2,238 |
Contract receivable, due after one year through five years | 1,134 | 6,926 |
Contract receivable, due in more than five years | 20,252 | 12,288 |
Construction and Land Development [Member] | ||
Contract receivable, due whithin one year | 27,609 | 26,867 |
Contract receivable, due after one year through five years | 5,025 | 9,503 |
Contract receivable, due in more than five years | 3,555 | |
Residential First Mortgages [Member] | ||
Contract receivable, due whithin one year | 7,417 | 21,110 |
Contract receivable, due after one year through five years | 31,614 | 58,320 |
Contract receivable, due in more than five years | 110,936 | 73,407 |
Commercial Real Estate [Member] | ||
Contract receivable, due whithin one year | 53,502 | 114,300 |
Contract receivable, due after one year through five years | 122,043 | 184,317 |
Contract receivable, due in more than five years | $ 437,934 | $ 262,463 |
Loans (Loans Due After One Year
Loans (Loans Due After One Year) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans with fixed rate | $ 249,283 | $ 210,605 |
Loans with floating or adjustable rates | 505,408 | 405,584 |
Loans, total | 754,691 | 616,189 |
Commercial Equipment [Member] | ||
Loans with fixed rate | 20,145 | 6,625 |
Loans with floating or adjustable rates | 1,887 | 2,030 |
Loans, total | 22,032 | 8,655 |
Consumer Loans [Member] | ||
Loans with fixed rate | 166 | 310 |
Loans, total | 166 | 310 |
Home Equity and Second Mortgage [Member] | ||
Loans with fixed rate | 1,806 | 2,362 |
Loans with floating or adjustable rates | 19,580 | 16,852 |
Loans, total | 21,386 | 19,214 |
Construction and Land Development [Member] | ||
Loans with fixed rate | 3,555 | 3,859 |
Loans with floating or adjustable rates | 5,025 | 5,644 |
Loans, total | 8,580 | 9,503 |
Residential First Mortgages [Member] | ||
Loans with fixed rate | 109,041 | 105,082 |
Loans with floating or adjustable rates | 33,509 | 26,645 |
Loans, total | 142,550 | 131,727 |
Commercial Real Estate [Member] | ||
Loans with fixed rate | 114,570 | 92,367 |
Loans with floating or adjustable rates | 445,407 | 354,413 |
Loans, total | $ 559,977 | $ 446,780 |
Loans - (Related Party Loans) (
Loans - (Related Party Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loans [Abstract] | |||
Balance, beginning of period | $ 24,403 | $ 16,601 | $ 6,987 |
Loans and additions | 6,822 | 407 | 536 |
Change in Directors' status | (642) | 8,953 | 10,077 |
Repayments | (2,478) | (1,558) | (999) |
Balance, end of period | $ 28,105 | $ 24,403 | $ 16,601 |
Loan Servicing (Narrative) (Det
Loan Servicing (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Mortgages [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Mortgages serviced for others | $ 63 | $ 68.7 |
Loan Servicing (Schedule of Par
Loan Servicing (Schedule of Participating Mortgage Loans) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Loan Servicing [Abstract] | |||
Balance, beginning of the year | $ 295 | $ 306 | $ 245 |
Additions | 31 | 102 | 174 |
Amortization | (107) | (113) | (113) |
Balance, end of year | $ 219 | $ 295 | $ 306 |
Other Real Estate Owned ("ORE74
Other Real Estate Owned ("OREO") (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Additions of underlying property | $ 5,436,000 | $ 2,742,000 | $ 1,852,000 |
Gains (losses) on sale of OREO | (20,000) | 179,000 | |
Recognition of deferred gain from sale of OREO | 225,000 | ||
Unrealized losses on sale of foreclosed assets | 46,000 | ||
Proceeds from sale of properties | 1,400,000 | ||
Transfers from OREO to loans | 1,000,000 | ||
Valuation allowance | 664,000 | 234,000 | 601,000 |
Proceeds From Sale Of Foreclosed Assets | $ 1,184,000 | 3,742,000 | $ 1,300,000 |
Foreclosed Real Estate [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gains (losses) on sale of OREO | $ 322,000 |
Other Real Estate Owned ("ORE75
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Roll Forward) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Balance at beginning of year | $ 5,883 | $ 6,797 | $ 6,892 |
Additions of underlying property | 5,436 | 2,742 | 1,852 |
Disposals of underlying property | (1,206) | (2,422) | (1,346) |
Transfers of OREO to loans | (1,000) | ||
Valuation allowance | (664) | (234) | (601) |
Balance at end of period | $ 9,449 | $ 5,883 | $ 6,797 |
Other Real Estate Owned ("ORE76
Other Real Estate Owned ("OREO") (Foreclosed Real Estate Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Real Estate Owned ("OREO") [Abstract] | |||
Valuation allowance | $ 664 | $ 234 | $ 601 |
Operating expenses | 395 | 152 | 186 |
Miscellaneous expenses | $ 1,059 | $ 386 | $ 787 |
Premises and Equipment and He77
Premises and Equipment and Held for Sale Premises and Equipment (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | ||||
Impairment of assets to be disposed of | $ 426,000 | |||
Operating leases, rent expense | $ 701,000 | $ 647,000 | $ 569,000 |
Premises and Equipment and He78
Premises and Equipment and Held for Sale Premises and Equipment (Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | ||
Land | $ 4,172 | $ 5,602 |
Building and improvements | 19,737 | 18,286 |
Furniture and equipment | 8,310 | 7,599 |
Automobiles | 382 | 444 |
Total cost | 32,601 | 31,931 |
Less accumulated depreciation | 12,445 | 11,345 |
Premises and equipment, net | $ 20,156 | $ 20,586 |
Premises and Equipment and He79
Premises and Equipment and Held for Sale Premises and Equipment (Schedule of Future Minimum Rental Payments for Operating Leases) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Premises and Equipment and Held for Sale Premises and Equipment [Abstract] | |
2,016 | $ 705 |
2,017 | 720 |
2,018 | 585 |
2,019 | 467 |
2,020 | 356 |
Thereafter | 3,430 |
Total | $ 6,263 |
Deposits (Narrative) (Details)
Deposits (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Time deposits, $100,000 or more | $ 222.3 | $ 216.2 |
Time deposits $250000 or more | $ 98.6 | $ 83.9 |
Deposits (Schedule Of Deposits)
Deposits (Schedule Of Deposits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Noninterest-bearing demand | $ 142,771 | $ 122,195 |
Interest-bearing | ||
Demand | 120,918 | 108,350 |
Money market deposits | 219,956 | 211,929 |
Savings | 47,703 | 41,499 |
Certificates of deposit | 375,551 | 385,411 |
Total interest-bearing | 764,128 | 747,189 |
Total deposits | $ 906,899 | $ 869,384 |
Deposits (Schedule Of Deposits
Deposits (Schedule Of Deposits Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits [Abstract] | ||
Within one year | $ 230,559 | $ 240,648 |
Year 2 | 96,098 | 87,959 |
Year 3 | 32,975 | 40,675 |
Year 4 | 5,454 | 10,042 |
Year 5 | 10,465 | 6,087 |
Time deposits | $ 375,551 | $ 385,411 |
Short-Term Borrowings and Lon83
Short-Term Borrowings and Long-Term Debt (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Percentage of the long term debt exercised or expired | 100.00% | 100.00% | |
Long term debt exercised or expired | $ 55,600,000 | $ 74,700,000 | |
Line of credit facility, fair value of amount outstanding | 7,000,000 | 0 | |
Short-term loan | 29,000,000 | 2,000,000 | |
Due in 2016 | 5,000,000 | 19,000,000 | |
Due in 2020 | 10,000,000 | ||
Fixed Rate Advances [Member] | |||
Debt Instrument [Line Items] | |||
Debt paid off | $ 750,000 | ||
Fixed rate advances revised maturity period | 5 years | ||
Third Fixed Rate Convertible Advance Matures in 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity year | 2,017 | ||
Interest rate | 0.87% | ||
Debt conversion, original debt, amount | $ 10,000,000 | ||
First Fixed Rate Convertible Advance Matures in 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity year | 2,016 | ||
Interest rate | 0.52% | ||
Debt conversion, original debt, amount | $ 5,000,000 | ||
First Fixed Rate Convertible Advance Matures in 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity year | 2,015 | 2,015 | |
Interest rate | 0.31% | 0.41% | |
Debt conversion, original debt, amount | $ 2,000,000 | $ 5,000,000 | |
Federal Reserve Bank Of Richmond [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | 10,800,000 | ||
Line of credit facility, fair value of amount outstanding | 0 | ||
Other Commercial Banks [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 12,000,000 | 12,000,000 | |
Line of credit facility, fair value of amount outstanding | $ 0 | ||
Fixed Rate Convertible Advances [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity year | 2,020 | ||
Debt conversion, converted instrument, rate | 4.00% | 4.00% | |
Federal Home Loan Bank Borrowings [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 185,600,000 | $ 188,600,000 | |
Security owned and pledged as collateral, fair value | 365,400,000 | 345,000,000 | |
FHLB lendable collateral | 277,200,000 | 265,300,000 | |
FHLB lendable pledged collateral | 165,800,000 | 188,000,000 | |
Line of credit facility, current borrowing capacity | 74,200,000 | 111,300,000 | |
Line of credit facility, fair value of amount outstanding | 91,600,000 | 76,700,000 | |
FHLB lendable unpledged collateral | $ 111,400,000 | 77,300,000 | |
Maximum [Member] | Fixed Rate Convertible Advances [Member] | |||
Debt Instrument [Line Items] | |||
Variable convertible debt maturity period | 5 years | ||
Minimum [Member] | Fixed Rate Convertible Advances [Member] | |||
Debt Instrument [Line Items] | |||
Variable convertible debt maturity period | 6 months | ||
Advances and Security Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 332,800,000 | $ 312,200,000 | |
Percentage of assets limited to maximum borrowing capacity | 30.00% |
Short-Term Borrowings and Lon84
Short-Term Borrowings and Long-Term Debt (Schedule Related to the Classification of Debt Interest Rate) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fixed Rate [Member] | ||
Debt Instrument [Line Items] | ||
Highest rate | 2.83% | 3.99% |
Lowest rate | 0.26% | 0.31% |
Weighted average rate | 1.07% | 1.80% |
Matures through | 2,036 | 2,036 |
Fixed Rate Convertible [Member] | ||
Debt Instrument [Line Items] | ||
Highest rate | 3.47% | 3.47% |
Lowest rate | 3.47% | 3.47% |
Weighted average rate | 3.47% | 3.47% |
Matures through | 2,018 | 2,018 |
Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Highest rate | 4.00% | 4.00% |
Lowest rate | 4.00% | 4.00% |
Weighted average rate | 4.00% | 4.00% |
Matures through | 2,020 | 2,020 |
Short-Term Borrowings and Lon85
Short-Term Borrowings and Long-Term Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Long-term debt | |||
Long-term debt outstanding at end of period | $ 55,617 | $ 74,672 | $ 70,476 |
Weighted average rate on outstanding long-term debt | 2.47% | 2.35% | 2.49% |
Maximum outstanding long-term debt of any month end | $ 74,668 | $ 75,471 | $ 70,519 |
Average outstanding long-term debt | $ 68,924 | $ 74,714 | $ 68,996 |
Approximate average rate paid on long-term debt | 2.26% | 2.39% | 2.53% |
Short-term borrowings | |||
Short-term borrowings outstanding at end of period | $ 36,000 | $ 2,000 | |
Weighted average rate on short-term borrowings | 0.38% | 0.31% | 0.00% |
Maximum outstanding short-term borrowings at any month end | $ 36,000 | $ 15,000 | $ 24,000 |
Average outstanding short-term borrowings | $ 13,463 | $ 4,344 | $ 4,278 |
Approximate average rate paid on short-term borrowings | 0.27% | 0.28% | 0.33% |
Short-Term Borrowings and Lon86
Short-Term Borrowings and Long-Term Debt (Schedule of Maturities of Long-term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | |||
Due in 2016 | $ 5,000 | $ 19,000 | |
Due in 2017 | 20,000 | 5,000 | |
Due in 2018 | 10,000 | 20,000 | |
Due in 2019 | 10,000 | ||
Due in 2020 | 10,000 | ||
Thereafter | 10,617 | 20,672 | |
Long-term debt, total | 55,617 | 74,672 | $ 70,476 |
Fixed Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2016 | 5,000 | 19,000 | |
Due in 2017 | 20,000 | 5,000 | |
Due in 2018 | 20,000 | ||
Thereafter | 10,617 | 10,672 | |
Long-term debt, total | 35,617 | 54,672 | |
Fixed Rate Convertible [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2018 | 10,000 | ||
Due in 2019 | 10,000 | ||
Long-term debt, total | 10,000 | 10,000 | |
Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Due in 2020 | 10,000 | ||
Thereafter | 10,000 | ||
Long-term debt, total | $ 10,000 | $ 10,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses | $ 3,369,000 | $ 3,346,000 |
Unrecorded income tax liability from bad debt deductions | 463,000 | |
Retained Earnings [Member] | ||
Allowance for loan losses | $ 1,200,000 | $ 1,200,000 |
Income Taxes (Schedule of Alloc
Income Taxes (Schedule of Allocation of Federal and State Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current | |||||||||||||||
Federal | $ 3,255 | $ 2,005 | $ 3,043 | ||||||||||||
State | 1,128 | 699 | 845 | ||||||||||||
Current income tax expense (benefit), total | 4,383 | 2,704 | 3,888 | ||||||||||||
Deferred | |||||||||||||||
Federal | (643) | 926 | (94) | ||||||||||||
State | (107) | 146 | (23) | ||||||||||||
Deferred income tax expense (benefit), total | (750) | 1,072 | (117) | ||||||||||||
Income tax expense (benefit), total | $ 811 | $ 735 | $ 1,004 | $ 1,083 | $ 579 | $ 1,363 | $ 760 | $ 1,074 | $ 885 | $ 987 | $ 909 | $ 990 | $ 3,633 | $ 3,776 | $ 3,771 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit) [Abstract] | |||||||||||||||
Expected income tax expense at federal tax rate | $ 3,392 | $ 3,490 | $ 3,544 | ||||||||||||
State taxes net of federal benefit | 647 | 604 | 577 | ||||||||||||
Nondeductible expenses | 40 | 39 | 35 | ||||||||||||
Nontaxable income | (398) | (345) | (340) | ||||||||||||
Other | (48) | (12) | (45) | ||||||||||||
Income tax expense (benefit), total | $ 811 | $ 735 | $ 1,004 | $ 1,083 | $ 579 | $ 1,363 | $ 760 | $ 1,074 | $ 885 | $ 987 | $ 909 | $ 990 | $ 3,633 | $ 3,776 | $ 3,771 |
Expected income tax expense at federal tax rate | 34.00% | 34.00% | 34.00% | ||||||||||||
State taxes net of federal benefit | 6.49% | 5.88% | 5.54% | ||||||||||||
Nondeductible expenses | 0.40% | 0.38% | 0.34% | ||||||||||||
Nontaxable income | (3.99%) | (3.36%) | (3.26%) | ||||||||||||
Other | (0.48%) | (0.12%) | (0.43%) | ||||||||||||
Total income tax expense | 36.42% | 36.78% | 36.18% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Deferred fees | $ 168 | |
Allowance for loan losses | 3,369 | $ 3,346 |
Deferred compensation | 2,332 | 2,181 |
OREO valuation allowance and expenses | 507 | 308 |
Unrealized loss on investment securities | 163 | 246 |
Other | 442 | 228 |
Deferred tax assets, gross | 6,981 | 6,309 |
Deferred tax liabilities | ||
FHLB stock dividends | 156 | 156 |
Depreciation | 56 | 51 |
Deferred tax liabilities, gross | 212 | 207 |
Net deferred tax assets | $ 6,769 | $ 6,102 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies [Abstract] | ||
Line of credit facility, commitment amount | $ 73,500 | $ 36,300 |
Letters of credit outstanding, amount | 21,400 | 16,900 |
Amounts available under lines of credit | $ 128,800 | $ 114,700 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 319,000 | $ 191,000 | $ 216,000 | |
Sale of stock, price per share (in dollars per share) | $ 20.96 | $ 20.07 | $ 18.75 | |
Option maximum term | 10 years | |||
Aggregate intrinsic value exercisable | ||||
Restricted Stock and Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 319,000 | $ 191,000 | 216,000 | |
Restricted Stock and Units [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation | $ 3,000 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Share-based Compensation, Stock Options, Activity) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-Based Compensation [Abstract] | ||
Shares outstanding, beginning balance | 87,436 | 159,517 |
Shares exercised | (45,163) | |
Shares expired | (66,225) | |
Shares forfeited | (26,918) | |
Shares outstanding, ending balance | 21,211 | 87,436 |
Shares, exercisable | 21,211 | 87,436 |
Weighted average exercise price outstanding, beginning balance | $ 23.60 | $ 20.12 |
Weighted average exercise price exercised | 15.89 | |
Weighted average exercise price expired | 22.29 | |
Weighted average exercise price forfeited | 15.89 | |
Weighted average exercise price outstanding, ending balance | 27.70 | 23.60 |
Weighted average exercise price exercisable | $ 27.70 | $ 23.60 |
Aggregate intrinsic value outstanding, beginning balance | $ 347,000 | |
Aggregate intrinsic value exercised | $ 207,000 | |
Aggregate intrinsic value outstanding, ending balance | $ 0 | |
Aggregate intrinsic value exercisable | ||
Weighted-average contractual life remaining in years outstanding (in years) | 1 year | 1 year 4 months 24 days |
Weighted-average contractual life remaining in years exercisable (in years) | 1 year | 1 year 4 months 24 days |
Stock-Based Compensation (Sch94
Stock-Based Compensation (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding September 30, 2015 (in shares) | 21,211 | 87,436 |
Weighted average remaining contractual life (in years) | 1 year | 1 year 4 months 24 days |
Weighted average exercise price (in dollars per share) | $ 27.70 | $ 23.60 |
Option Exercisable One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding September 30, 2015 (in shares) | 21,211 | |
Weighted average remaining contractual life (in years) | 1 year | |
Weighted average exercise price (in dollars per share) | $ 27.70 | |
Option Exercisable Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number outstanding September 30, 2015 (in shares) | 21,211 | |
Weighted average exercise price (in dollars per share) | $ 27.70 |
Stock-Based Compensation (Sch95
Stock-Based Compensation (Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity) (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 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, granted | ||
Number of shares, vested | (4,210) | |
Ending period, nonvested | ||
Beginning period, weighted average grant date fair value, nonvested | $ 20.71 | |
Weighted average grant date fair value, granted | ||
Weighted average grant date fair value, vested | $ 20.28 | |
Ending period, weighted average grant date fair value, nonvested |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Stock Ownership Plan (ESOP), cash contributions to ESOP | $ 129,000 | $ 141,000 | $ 262,000 |
Employee Stock Ownership Plan (ESOP), number of allocated shares | 214,819 | 205,612 | |
Employee Stock Ownership Plan (ESOP), number of unallocated shares | 19,044 | 29,362 | |
Employee Stock Ownership Plan (ESOP), allocated shares market value | $ 4,900,000 | $ 4,700,000 | |
Employee Stock Ownership Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite service period | 1 year | ||
Employee benefit plan vesting period | 3 years | ||
Employee Stock Ownership Plan (ESOP) promissory note amortization period | 7 years | ||
Promissory notes | $ 316,000 | $ 489,000 | |
Share Price | $ 20.96 | $ 20.07 | |
Employee Stock Ownership Plan [Member] | Prime Rate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee Stock Ownership Plan (ESOP) basis spread on variable rate | 1.00% | ||
401 (K) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite service period | 6 months | 6 months | 6 months |
Employee benefit plan vesting period | 3 years | 3 years | 3 years |
Percentage of employees contribution the employer will match | 50.00% | 50.00% | 50.00% |
Retirement plan expense | $ 332,000 | $ 324,000 | $ 336,000 |
Individual Supplemental Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement plan expense | $ 519,000 | 441,000 | 395,000 |
Number of years following retirement benefit is paid | 15 years | ||
Nonqualified Retirement Plan For Non Employee Directors [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan requisite service period | 15 years | ||
Employee benefit plan vesting period | 2 years | ||
Retirement plan expense | $ 22,000 | $ 21,000 | $ 20,000 |
Maximum annual benefit following retirement | $ 3,500 | ||
Number of years following retirement benefit is paid | 10 years | ||
Maximum [Member] | 401 (K) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum employee contribution employer will match | 8.00% | 8.00% | 8.00% |
Guaranteed Preferred Benefici97
Guaranteed Preferred Beneficial Interest in Junior Subordinated Debentures ("TRUPs") (Narrative) (Details) - USD ($) | Jun. 15, 2005 | Jul. 22, 2004 | Jun. 30, 2005 | Jul. 31, 2004 | Dec. 31, 2015 |
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 ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 13, 2015 | Feb. 06, 2015 | |
Subordinated notes interest rate | 6.25% | 6.25% | |||
Subordinated notes | $ 23,000 | $ 23,000 | |||
Preferred stock, redemption date | Feb. 13, 2015 | ||||
Preferred stock, value | $ 20,000 | $ 20,000 | |||
Subordinated Debt [Member] | |||||
Subordinated notes due date | Feb. 15, 2025 | ||||
Subordinated notes interest rate | 6.25% | ||||
Subordinated notes | $ 23,000 | ||||
Subordinated note terms and conditions | 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. | ||||
Redemption percentage | 100.00% | ||||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt instrument, percent spread on variable rate | 4.79% | ||||
Parent Company [Member] | |||||
Subordinated notes | $ 23,000 | $ 23,000 | |||
Preferred stock, value | $ 20,000 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2012 | |
Regulatory Assets | |||||
Common Equity | $ 99,783 | $ 96,559 | |||
Total stockholders' equity | $ 110,730 | 99,783 | 116,559 | $ 79,047 | |
Accumulated other comprehensive losses (gains) | 1,057 | 251 | 378 | (139) | |
Common equity Tier 1 capital | 100,034 | 116,937 | |||
TRUPs | 12,000 | 12,000 | |||
Tier 1 capital | 112,034 | 128,937 | |||
Allowable reserve for credit losses other | 8,540 | 8,537 | |||
Subordinated notes | 23,000 | ||||
Tier 2 capital | 143,574 | 137,474 | |||
Risk-weighted assets ("RWA") | 984,614 | 903,931 | |||
Average Assets ("AA") | $ 1,118,843 | $ 1,053,424 | |||
Common Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 7.00% | ||||
Tier 1 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 8.50% | ||||
Tier 2 capital to RWA, 2019 Regulatory Min. Ratio + CCB | 10.50% | ||||
Common Tier 1 capital to RWA | 10.16% | ||||
Tier 1 capital to RWA | 11.38% | 14.26% | |||
Tier 2 capital to RWA | 14.58% | 15.21% | |||
Tier 1 capital to AA (leverage) | 10.01% | 12.24% | |||
Proceeds from public offering | $ 27,400 | 27,387 | |||
Common Stock [Member] | |||||
Regulatory Assets | |||||
Total stockholders' equity | 46 | $ 46 | $ 47 | 30 | |
Proceeds from public offering | 16 | ||||
SBLF Preferred Stock [Member] | |||||
Regulatory Assets | |||||
Total stockholders' equity | $ 20,000 | 20,000 | $ 20,000 | ||
Bank [Member] | |||||
Regulatory Assets | |||||
Common Equity | 132,571 | 126,838 | |||
Total stockholders' equity | 132,571 | 126,838 | |||
Accumulated other comprehensive losses (gains) | 251 | 378 | |||
Common equity Tier 1 capital | 132,822 | 127,216 | |||
Tier 1 capital | 132,822 | 127,216 | |||
Allowable reserve for credit losses other | 8,540 | 8,537 | |||
Tier 2 capital | 141,362 | 135,753 | |||
Risk-weighted assets ("RWA") | 982,347 | 902,136 | |||
Average Assets ("AA") | $ 1,116,576 | $ 1,051,627 | |||
Common Tier 1 capital to RWA | 13.52% | ||||
Tier 1 capital to RWA | 13.52% | 14.10% | |||
Tier 2 capital to RWA | 14.39% | 15.05% | |||
Tier 1 capital to AA (leverage) | 11.90% | 12.10% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans with impairment, unpaid principal | $ 4,066,000 | $ 4,122,000 |
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 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets Measured on Recurring Basis) (Details) - USD ($) | Dec. 31, 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 | 35,116,000 | 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 | 30,664,000 | 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 | 26,000 | 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 | 39,000 | 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 | $ 4,387,000 | 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 | $ 35,116,000 | 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 | 30,664,000 | 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 | 26,000 | 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 | 39,000 | 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 | $ 4,387,000 | $ 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 (Fai102
Fair Value Measurements (Fair Value, Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 9,449 | $ 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 | $ 9,449 | $ 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 | $ 2,458 | $ 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 | 1,765 | 2,524 |
Loans With Impairment [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 610 | 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 | 50 | 251 |
Loans With Impairment [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 33 | |
Loans With Impairment [Member] | Commercial Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 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 First Mortgages [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] | Construction and Land Development [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 | $ 2,458 | $ 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 | 1,765 | 2,524 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Residential First Mortgages [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | 610 | 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 | 50 | 251 |
Loans With Impairment [Member] | Fair Value, Inputs, Level 2 [Member] | Construction and Land Development [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 33 | |
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 | $ 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 First Mortgages [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] | Construction and Land Development [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 | ||
Premises and Equipment Held for Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 2,000 | |
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 2,000 | |
Premises and Equipment Held for Sale [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value, nonrecurring |
Fair Value of Financial Inst103
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value of Financial Instruments [Abstract] | ||
Loans held for sale | $ 0 | $ 0 |
Loans commitments outstanding | 73,500 | 36,300 |
Letters of credit outstanding, amount | $ 21,400 | $ 16,900 |
Fair Value of Financial Inst104
Fair Value of Financial Instruments (Fair Value, by Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Investment securities - AFS | $ 35,116 | $ 41,939 |
Investment securities - HTM | $ 109,309 | $ 84,915 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | $ 750 | $ 850 |
FHLB and FRB stock | ||
Loans receivable | ||
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Fair Value, Inputs, Level 2 [Member] | ||
Assets | ||
Investment securities - AFS | $ 35,116 | $ 41,939 |
Investment securities - HTM | 108,559 | 84,065 |
FHLB and FRB stock | 6,931 | 6,434 |
Loans receivable | 913,506 | 861,427 |
Investments in BOLI | 27,836 | 27,021 |
Liabilities | ||
Savings, NOW and money market accounts | 531,348 | 483,973 |
Time deposits | 375,376 | 386,510 |
Long-term debt | 56,987 | 77,919 |
Short term borrowings | 36,000 | 2,000 |
TRUPs | 8,400 | $ 7,400 |
Subordinated notes | $ 23,000 | |
Fair Value, Inputs, Level 3 [Member] | ||
Assets | ||
Investment securities - AFS | ||
Investment securities - HTM | ||
FHLB and FRB stock | ||
Loans receivable | ||
Investments in BOLI | ||
Liabilities | ||
Savings, NOW and money market accounts | ||
Time deposits | ||
Long-term debt | ||
Short term borrowings | ||
TRUPs | ||
Subordinated notes | ||
Fair Value [Member] | ||
Assets | ||
Investment securities - AFS | $ 35,116 | $ 41,939 |
Investment securities - HTM | 109,309 | 84,915 |
FHLB and FRB stock | 6,931 | 6,434 |
Loans receivable | 913,506 | 861,427 |
Investments in BOLI | 27,836 | 27,021 |
Liabilities | ||
Savings, NOW and money market accounts | 531,348 | 483,973 |
Time deposits | 375,376 | 386,510 |
Long-term debt | 56,987 | 77,919 |
Short term borrowings | 36,000 | 2,000 |
TRUPs | 8,400 | 7,400 |
Subordinated notes | 23,000 | |
Carrying Amount [Member] | ||
Assets | ||
Investment securities - AFS | 35,116 | 41,939 |
Investment securities - HTM | 109,420 | 84,506 |
FHLB and FRB stock | 6,931 | 6,434 |
Loans receivable | 909,200 | 862,409 |
Investments in BOLI | 27,836 | 27,021 |
Liabilities | ||
Savings, NOW and money market accounts | 531,348 | 483,973 |
Time deposits | 375,551 | 385,411 |
Long-term debt | 55,617 | 74,672 |
Short term borrowings | 36,000 | 2,000 |
TRUPs | 12,000 | $ 12,000 |
Subordinated notes | $ 23,000 |
Condensed Financial Statemen105
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Feb. 13, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | |||||
Total assets | $ 1,143,332 | $ 1,082,878 | |||
Liabilities and Stockholders' Equity | |||||
Subordinated notes - 6.25% | 23,000 | ||||
Total liabilities | 1,043,549 | 966,319 | |||
Stockholders' Equity | |||||
Preferred stock, value | $ 20,000 | 20,000 | |||
Common stock | 46 | 47 | |||
Additional paid in capital | 46,809 | 46,416 | |||
Retained earnings | 53,495 | 50,936 | |||
Accumulated other comprehensive income | (251) | (378) | $ (1,057) | $ 139 | |
Unearned ESOP shares | (316) | (462) | |||
Total stockholders' equity | 99,783 | 116,559 | $ 110,730 | $ 79,047 | |
Total Liabilities and Stockholders' Equity | 1,143,332 | 1,082,878 | |||
Parent Company [Member] | |||||
Assets | |||||
Cash - noninterest bearing | 1,541 | 1,064 | |||
Investment in wholly owned subsidiaries | 132,943 | 127,210 | |||
Other assets | 1,895 | 1,423 | |||
Total assets | 136,379 | 129,697 | |||
Liabilities and Stockholders' Equity | |||||
Current liabilities | 1,224 | 766 | |||
Guaranteed preferred beneficial interest in junior subordinated debentures | 12,372 | 12,372 | |||
Subordinated notes - 6.25% | 23,000 | ||||
Total liabilities | 36,596 | 13,138 | |||
Stockholders' Equity | |||||
Preferred stock, value | 20,000 | ||||
Common stock | 46 | 47 | |||
Additional paid in capital | 46,809 | 46,416 | |||
Retained earnings | 53,495 | 50,936 | |||
Accumulated other comprehensive income | (251) | (378) | |||
Unearned ESOP shares | (316) | (462) | |||
Total stockholders' equity | 99,783 | 116,559 | |||
Total Liabilities and Stockholders' Equity | $ 136,379 | $ 129,697 |
Condensed Financial Statemen106
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest and Dividend Income | |||||||||||||||
Interest expense | $ 1,860 | $ 1,918 | $ 1,902 | $ 1,665 | $ 1,610 | $ 1,663 | $ 1,684 | $ 1,741 | $ 1,732 | $ 1,873 | $ 2,018 | $ 2,023 | $ 7,345 | $ 6,698 | $ 7,646 |
Net interest income | 9,348 | 9,084 | 9,033 | 9,063 | 9,053 | 9,004 | 8,570 | 8,434 | 8,380 | 8,102 | 7,732 | 7,818 | 36,528 | 35,061 | 32,032 |
Miscellaneous expenses | (1,059) | (386) | (787) | ||||||||||||
(Loss) income before income taxes and equity in undistributed net income of subsidiary | 2,339 | 2,018 | 2,715 | 2,904 | 2,124 | 3,252 | 2,095 | 2,795 | 2,529 | 2,690 | 2,494 | 2,709 | 9,976 | 10,266 | 10,422 |
Net income | 6,343 | 6,490 | 6,651 | ||||||||||||
Net income available to common shareholders | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | $ 1,495 | $ 1,839 | $ 1,285 | $ 1,671 | $ 1,594 | $ 1,653 | $ 1,535 | $ 1,669 | 6,320 | 6,290 | $ 6,451 |
Parent Company [Member] | |||||||||||||||
Interest and Dividend Income | |||||||||||||||
Dividends from subsidiary | 2,775 | 3,500 | |||||||||||||
Interest income | 51 | 6 | $ 46 | ||||||||||||
Interest expense | 1,599 | 312 | 305 | ||||||||||||
Net interest income | 1,227 | 3,194 | (259) | ||||||||||||
Miscellaneous expenses | (1,421) | (1,427) | (825) | ||||||||||||
(Loss) income before income taxes and equity in undistributed net income of subsidiary | (194) | 1,767 | (1,084) | ||||||||||||
Federal and state income tax benefit | 1,009 | 589 | 368 | ||||||||||||
Equity in undistributed net income of subsidiary | 5,528 | 4,134 | 7,367 | ||||||||||||
Net income | 6,343 | 6,490 | 6,651 | ||||||||||||
Preferred stock dividends | 23 | 200 | 200 | ||||||||||||
Net income available to common shareholders | $ 6,320 | $ 6,290 | $ 6,451 |
Condensed Financial Statemen107
Condensed Financial Statements - Parent Company Only (Schedule of Condensed Cash Flow Statement) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | ||||
Net income | $ 6,343 | $ 6,490 | $ 6,651 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Stock based compensation | 319 | 191 | 216 | |
Decrease (increase) deferred income tax benefit | (750) | 1,138 | (117) | |
Net Cash Provided by Operating Activities | 12,497 | 10,633 | 8,507 | |
Cash Flows from Financing Activities | ||||
Dividends paid | (1,916) | (2,055) | (1,579) | |
Proceeds from public offering | $ 27,400 | 27,387 | ||
Proceeds from subordinated notes | 23,000 | |||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | |||
Exercise of stock options | 226 | 317 | ||
Net change in ESOP loan | 146 | 201 | 355 | |
Repurchase of common stock | (1,827) | (536) | ||
Net cash used in financing activities | 51,863 | 52,657 | 35,957 | |
(Decrease) increase in cash | (10,234) | (3,146) | 13,223 | |
Cash and cash equivalents - January 1 | 21,373 | 24,519 | 11,296 | |
Cash and cash equivalents - December 31 | 11,139 | 21,373 | 24,519 | |
Parent Company [Member] | ||||
Cash Flows from Operating Activities | ||||
Net income | 6,343 | 6,490 | 6,651 | |
Adjustments to reconcile net income to net cash provided by operating activities | ||||
Equity in undistributed earnings of subsidiary | (5,528) | (4,134) | (7,367) | |
Stock based compensation | 139 | 191 | 216 | |
Decrease (increase) in other assets | (284) | (259) | 1,730 | |
Decrease (increase) deferred income tax benefit | 23 | 162 | (26) | |
(Decrease) increase in current liabilities | 459 | (145) | 67 | |
Net Cash Provided by Operating Activities | 1,152 | 2,305 | 1,271 | |
Cash Flows from Financing Activities | ||||
Dividends paid | (1,916) | (2,055) | (1,579) | |
Proceeds from public offering | 27,387 | |||
Downstream of capital to subsidiary | (78) | (15) | (27,474) | |
Proceeds from subordinated notes | 23,000 | |||
Redemption of Small Business Lending Fund Preferred Stock | (20,000) | |||
Exercise of stock options | 226 | 317 | ||
Net change in ESOP loan | 146 | 201 | 355 | |
Repurchase of common stock | (1,827) | (536) | ||
Net cash used in financing activities | (675) | (1,643) | (1,530) | |
(Decrease) increase in cash | 477 | 662 | (259) | |
Cash and cash equivalents - January 1 | 1,064 | 402 | 661 | |
Cash and cash equivalents - December 31 | $ 1,541 | $ 1,064 | $ 402 |
Quarterly Financial Comparis108
Quarterly Financial Comparison (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Oct. 31, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||||||
Interest and dividend income | $ 11,208 | $ 11,002 | $ 10,935 | $ 10,728 | $ 10,663 | $ 10,667 | $ 10,254 | $ 10,175 | $ 10,112 | $ 9,975 | $ 9,750 | $ 9,841 | $ 43,873 | $ 41,759 | $ 39,678 | |||||||||||||
Interest expense | 1,860 | 1,918 | 1,902 | 1,665 | 1,610 | 1,663 | 1,684 | 1,741 | 1,732 | 1,873 | 2,018 | 2,023 | 7,345 | 6,698 | 7,646 | |||||||||||||
Net interest income | 9,348 | 9,084 | 9,033 | 9,063 | 9,053 | 9,004 | 8,570 | 8,434 | 8,380 | 8,102 | 7,732 | 7,818 | 36,528 | 35,061 | 32,032 | |||||||||||||
Provision for loan loss | 362 | 501 | 392 | 178 | 1,502 | 385 | 563 | 203 | 300 | 286 | 200 | 154 | ||||||||||||||||
Net interest income after provision for loan losses | 8,986 | 8,583 | 8,641 | 8,885 | 7,551 | 8,619 | 8,007 | 8,231 | 8,080 | 7,816 | 7,532 | 7,664 | 35,095 | 32,408 | 31,092 | |||||||||||||
Noninterest income | 909 | 466 | 962 | 962 | 1,225 | 1,118 | 855 | 895 | 797 | 1,119 | 1,069 | 1,189 | 3,299 | 4,093 | 4,174 | |||||||||||||
Noninterest expense | 7,556 | 7,031 | 6,888 | 6,943 | 6,652 | 6,485 | 6,767 | 6,331 | 6,348 | 6,245 | 6,107 | 6,144 | 28,418 | 26,235 | 24,844 | |||||||||||||
Income before income taxes | 2,339 | 2,018 | 2,715 | 2,904 | 2,124 | 3,252 | 2,095 | 2,795 | 2,529 | 2,690 | 2,494 | 2,709 | 9,976 | 10,266 | 10,422 | |||||||||||||
Provision for income taxes | 811 | 735 | 1,004 | 1,083 | 579 | 1,363 | 760 | 1,074 | 885 | 987 | 909 | 990 | 3,633 | 3,776 | 3,771 | |||||||||||||
Net Income | $ 1,528 | $ 1,283 | $ 1,711 | 1,821 | 1,545 | 1,889 | 1,335 | 1,721 | 1,644 | 1,703 | 1,585 | 1,719 | ||||||||||||||||
Preferred stock dividends | 23 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 23 | 200 | 200 | ||||||||||||||||
Net income available to common shareholders | $ 1,528 | $ 1,283 | $ 1,711 | $ 1,798 | $ 1,495 | $ 1,839 | $ 1,285 | $ 1,671 | $ 1,594 | $ 1,653 | $ 1,535 | $ 1,669 | $ 6,320 | $ 6,290 | $ 6,451 | |||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||||
Basic | $ 0.33 | [1] | $ 0.28 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | $ 0.32 | [1] | $ 0.40 | [1] | $ 0.28 | [1] | $ 0.36 | [1] | $ 0.35 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.55 | [1] | $ 1.36 | $ 1.35 | $ 1.90 | |
Diluted | 0.33 | [1] | $ 0.27 | [1] | $ 0.37 | [1] | $ 0.38 | [1] | 0.32 | [1] | $ 0.39 | [1] | $ 0.28 | [1] | $ 0.36 | [1] | $ 0.35 | [1] | $ 0.55 | [1] | $ 0.51 | [1] | $ 0.54 | [1] | 1.35 | 1.35 | $ 1.88 | |
Stock offering shares issued | 1,591,300 | |||||||||||||||||||||||||||
Proceeds from public offering | $ 27,400 | $ 27,387 | ||||||||||||||||||||||||||
Sale of stock, price per share (in dollars per share) | $ 18.75 | $ 20.96 | $ 20.07 | $ 20.96 | $ 20.07 | |||||||||||||||||||||||
Parent Company [Member] | ||||||||||||||||||||||||||||
Interest expense | $ 1,599 | $ 312 | 305 | |||||||||||||||||||||||||
Net interest income | 1,227 | 3,194 | (259) | |||||||||||||||||||||||||
Income before income taxes | (194) | 1,767 | (1,084) | |||||||||||||||||||||||||
Net income available to common shareholders | $ 6,320 | $ 6,290 | 6,451 | |||||||||||||||||||||||||
Earnings Per Common Share | ||||||||||||||||||||||||||||
Proceeds from public offering | $ 27,387 | |||||||||||||||||||||||||||
[1] | Earnings per share are based upon quarterly results and, when added, may not total the annual earnings per share amounts. In October 2013, the Company issued 1,591,300 shares of common stock at a price of $18.75 per share resulting in net proceeds of $27.4 million after commissions and related offering expenses. The additional shares outstanding impacted year to year comparability of per share earnings beginning with fourth quarter 2013 results |