Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 01, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SEVERN BANCORP INC | ||
Entity Central Index Key | 868,271 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 30,849,450 | ||
Entity Common Stock, Shares Outstanding | 10,088,879 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 28,366 | $ 24,866 |
Interest bearing deposits in other banks | 15,225 | 8,469 |
Cash and cash equivalents | 43,591 | 33,335 |
Investment securities held to maturity (fair value: $76,310 at December 31, 2015; $60,123 at December 31, 2014) | 76,133 | 59,616 |
Loans held for sale | 13,203 | 7,165 |
Loans receivable, net of allowance for loan losses of $8,758 and $9,435 in 2015 and 2014, respectively | 589,656 | 633,882 |
Premises and equipment, net | 24,290 | 25,159 |
Foreclosed real estate | 1,744 | 1,947 |
Federal Home Loan Bank stock at cost | 5,626 | 5,936 |
Accrued interest receivable and other assets | 7,836 | 9,288 |
Total assets | 762,079 | 776,328 |
Liabilities | ||
Deposits | 523,771 | 543,814 |
Long-term borrowings | 115,000 | 115,000 |
Subordinated debentures | 24,119 | 24,119 |
Accrued interest payable and other liabilities | 12,733 | 9,585 |
Total Liabilities | 675,623 | 692,518 |
Stockholders' Equity | ||
Common stock, $0.01 par value, 20,000,000 shares authorized; 10,088,879 and 10,067,379 shares issued and outstanding, respectively | 101 | 101 |
Additional paid-in capital | 76,335 | 75,848 |
Retained earnings | 10,016 | 7,857 |
Total stockholders' equity | 86,456 | 83,810 |
Total liabilities and stockholders' equity | 762,079 | 776,328 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock | 4 | 4 |
Series B Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Investment securities held to maturity at fair value | $ 76,310 | $ 60,123 |
Loans receivable, allowance for loan losses | $ 8,758 | $ 9,435 |
Stockholders' Equity | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 10,088,879 | 10,067,379 |
Common stock, shares outstanding (in shares) | 10,088,879 | 10,067,379 |
Series A Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock, shares issued (in shares) | 437,500 | 437,500 |
Preferred stock, shares outstanding (in shares) | 437,500 | 437,500 |
Preferred stock, liquidation preference | $ 3,500 | $ 3,500 |
Series B Preferred Stock [Member] | ||
Stockholders' Equity | ||
Preferred stock, shares issued (in shares) | 23,393 | 23,393 |
Preferred stock, shares outstanding (in shares) | 23,393 | 23,393 |
Preferred stock, liquidation preference | $ 23,393 | $ 23,393 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Income | ||
Loans, including fees | $ 29,734 | $ 30,574 |
Securities, taxable | 1,104 | 951 |
Other | 315 | 291 |
Total interest income | 31,153 | 31,816 |
Interest Expense | ||
Deposits | 4,050 | 3,928 |
Long-term borrowings and subordinated debentures | 4,942 | 4,706 |
Total interest expense | 8,992 | 8,634 |
Net interest income | 22,161 | 23,182 |
Provision for loan losses | (280) | 831 |
Net interest income after provision for loan losses | 22,441 | 22,351 |
Non-Interest Income | ||
Mortgage banking activities | 2,928 | 1,600 |
Real estate commissions | 1,319 | 1,034 |
Real estate management fees | 658 | 742 |
Other | 1,205 | 949 |
Total non-interest income | 6,110 | 4,325 |
Non-Interest Expenses | ||
Compensation and related expenses | 15,630 | 14,654 |
Occupancy | 1,676 | 1,732 |
Foreclosed real estate expenses, net | 230 | 10 |
Legal | 354 | 316 |
FDIC assessments and regulatory expense | 1,234 | 1,331 |
Professional fees | 887 | 921 |
Advertising | 760 | 687 |
Online charges | 864 | 907 |
Credit reports and appraisal fees | 773 | 890 |
Other | 1,518 | 2,288 |
Total non-interest expenses | 23,926 | 23,736 |
Income before income tax provision | 4,625 | 2,940 |
Income tax provision | 90 | 31 |
Net income | 4,535 | 2,909 |
Amortization of discount on preferred stock | 271 | 270 |
Dividends on preferred stock | 2,105 | 2,072 |
Net income available to common stockholders | $ 2,159 | $ 567 |
Basic income per common share (in dollars per share) | $ 0.21 | $ 0.06 |
Diluted income per common share (in dollars per share) | $ 0.21 | $ 0.06 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Total | Series B Preferred Stock [Member]Preferred Stock [Member] | Series B Preferred Stock [Member]Common Stock [Member] | Series B Preferred Stock [Member]Additional Paid-In Capital [Member] | Series B Preferred Stock [Member]Retained Earnings [Member] | Series B Preferred Stock [Member] |
Balance at Dec. 31, 2013 | $ 4 | $ 101 | $ 75,374 | $ 7,290 | $ 82,769 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 0 | 0 | 0 | 2,909 | 2,909 | |||||
Stock-based compensation | 0 | 0 | 201 | 0 | 201 | |||||
Dividend declared on Series B preferred stock | $ 0 | $ 0 | $ 0 | $ (2,072) | $ (2,072) | |||||
Amortization of discount on Series B preferred stock | 0 | 0 | 270 | (270) | 0 | |||||
Exercised Options | 0 | 0 | 3 | 0 | 3 | |||||
Balance at Dec. 31, 2014 | 4 | 101 | 75,848 | 7,857 | 83,810 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net Income | 0 | 0 | 0 | 4,535 | 4,535 | |||||
Stock-based compensation | 0 | 0 | 120 | 0 | 120 | |||||
Dividend declared on Series B preferred stock | $ 0 | $ 0 | 0 | (2,105) | (2,105) | |||||
Amortization of discount on Series B preferred stock | $ 271 | $ (271) | $ 0 | |||||||
Exercised Options | 0 | 0 | 96 | 0 | 96 | |||||
Balance at Dec. 31, 2015 | $ 4 | $ 101 | $ 76,335 | $ 10,016 | $ 86,456 |
CONSOLIDATED STATEMENTS OF STO6
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Number of options exercised (in shares) | (21,500) | (700) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 4,535 | $ 2,909 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred loan fees | (1,283) | (995) |
Net amortization of premiums and Discounts | 458 | 239 |
Provision for loan losses | (280) | 831 |
Provision for depreciation | 1,137 | 1,110 |
Provision for foreclosed real estate | 58 | 0 |
Gain on sale of loans | (2,927) | (2,207) |
Gain on sale of foreclosed real estate | (49) | (302) |
Proceeds from loans sold to others | 160,236 | 92,767 |
Loans originated for sale | (163,347) | (93,999) |
Stock-based compensation expense | 120 | 201 |
Decrease (increase) in accrued interest receivable and other assets | 1,452 | (261) |
Increase in accrued interest payable and other liabilities | 1,043 | 1,047 |
Net cash provided by operating activities | 1,153 | 1,340 |
Cash Flows from Investing Activities | ||
Purchase of investment securities held to maturity | (27,830) | (21,549) |
Proceeds from maturing investment securities held to maturity | 7,000 | 5,000 |
Principal collected on mortgage-backed securities held to maturity | 3,855 | 1,355 |
Net decrease (increase) in loans | 43,555 | (31,752) |
Proceeds from sale of foreclosed real estate | 2,428 | 8,174 |
Investment in premises and equipment | (268) | (431) |
Redemption of FHLB Stock | 310 | 254 |
Net cash provided by (used in) investing activities | 29,050 | (38,949) |
Cash Flows from Financing Activities | ||
Net decrease in deposits | (20,043) | (27,435) |
Proceeds from exercise of options | 96 | 3 |
Net cash used in financing activities | (19,947) | (27,432) |
Increase (decrease) in cash and cash equivalents | 10,256 | (65,041) |
Cash and cash equivalents at beginning of year | 33,335 | 98,376 |
Cash and cash equivalents at end of year | 43,591 | 33,335 |
Cash (received) paid during year for: | ||
Interest | 7,991 | 7,874 |
Income taxes paid | 9 | |
Income taxes received | (273) | |
Transfer of net loans to foreclosed real estate | $ 2,234 | $ 847 |
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 A. Principles of Consolidation - B. Business - Bancorp has no reportable segments. Management does not separately allocate expenses, including the cost of funding loan demand, between the retail and real estate operations of Bancorp. As such, discrete financial information is not available and segment reporting would not be meaningful. C. Estimates - D. Investment Securities Held to Maturity – E. Federal Home Loan Bank Stock – The Bank evaluated the FHLB stock for impairment in accordance with generally accepted accounting principles. The Bank’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and accordingly on the customer base of the FHLB, and (4) the liquidity position of the FHLB. Management has evaluated the FHLB stock for impairment and believes that no impairment charge is necessary as of December 31, 2015. F. Loans Held for Sale - G. Derivative Financial Instruments H. Loan Servicing - Loans serviced for others not included in the accompanying consolidated statements of financial condition totaled $76,460,000 and $93,332,000 at December 31, 2015 and 2014, respectively. As of December 31, 2015, the Bank was servicing $20,454,000 in loans for Federal Home Loan Mortgage Corporation (“FHLMC”), $44,366,000 in loans for Federal National Mortgage Association (“FNMA”) and $11,640,000 in loans for other investors. I. Loans - Residential lending is generally considered to involve less risk than other forms of lending, although payment experience on these loans is dependent to some extent on economic and market conditions in the Bank's lending area. Multifamily residential, commercial, construction and other loan repayments are generally dependent on the operations of the related properties or the financial condition of its borrower or guarantor. Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. A substantial portion of the Bank's loans receivable is mortgage loans secured by residential and commercial real estate properties located in the State of Maryland. Loans are extended only after evaluation by management of customers' creditworthiness and other relevant factors on a case-by-case basis. The Bank generally does not lend more than 80% of the appraised value of a property and requires private mortgage insurance on residential mortgages with loan-to-value ratios in excess of 80%. In addition, the Bank generally obtains personal guarantees of repayment from borrowers and/or others for construction, commercial and multifamily residential loans and disburses the proceeds of construction and similar loans only as work progresses on the related projects. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on contractual terms of the loan. 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 in the current year, but not collected for loans that are placed on non-accrual or charged-off, is reversed against interest income. Any interest accrued in prior years for loans that are placed on non-accrual or charged-off is charged against the allowance for loan losses. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. J. Allowance for Loan Losses - The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. When a real estate secured loan becomes impaired, a decision is made as to whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an allowance is established when the current market value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge-off is taken for the difference between the net collateral value and the carrying value of the loan. For loans that are not solely collateral dependent, an allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. The general component relates to loans that are classified as doubtful, substandard or special mention that are not considered impaired, as well as non-classified loans. The general reserve is based on historical loss experience adjusted for qualitative factors. These qualitative factors include: · Levels and trends in delinquencies and nonaccruals; · Inherent risk in the loan portfolio; · Trends in volume and terms of the loan; · Effects of any change in lending policies and procedures; · Experience, ability and depth of management; · National and local economic trends and conditions; and · Effect of any changes in concentration of credit. A loan is generally considered impaired if it meets either of the following two criteria: · Loans that are 90 days or more in arrears (nonaccrual loans); or · Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. K . Foreclosed Real Estate L. Transfers of Financial Assets – M. Premises and Equipment - N. Statement of Cash Flows - O. Income Taxes - The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that current available evidence about the future raises doubt about the likelihood of a deferred tax asset being realized, a valuation allowance is established. Bancorp recognizes a tax position as a benefit only if it “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The judgment about the level of future taxable income is inherently subjective and is reviewed on a continual basis as regulatory and business factors change. Bancorp recognizes interest and penalties on income taxes as a component of income tax expense. P. Earnings Per Common Share Not included in the diluted earnings per share calculation for the years ended December 31, 2015 and 2014, because they were anti-dilutive, were shares of common stock issuable upon exercise of outstanding stock options totaling 151,500 and 172,000, respectively, 556,976 shares of common stock issuable upon the exercise of a warrant and 437,500 shares of common stock issuable upon conversion of Bancorp’s Series A preferred stock. Year Ended December 31, 2015 2014 Common shares – weighted average (basic) 10,083,942 10,067,379 Common share equivalents – weighted average 28,711 29,008 Common shares – weighted average (diluted) 10,112,653 10,096,387 Q. Advertising Cost R. Troubled Debt Restructuring – S . Significant Group Concentrations of Credit Risk – Bancorp’s investment portfolio consists principally of obligations of the United States and its agencies. In the opinion of management, there is no concentration of credit risk in its investment portfolio. Bancorp places deposits in correspondent accounts and, on occasion, sells Federal funds to qualified financial institutions. Management believes credit risk associated with correspondent accounts and with Federal funds sold is not significant. Therefore, management believes that these particular practices do not subject Bancorp to unusual credit risk. T. Off-Balance Sheet Financial Instruments – U. Recent Accounting Pronouncements – Under ASU 2014-09, Revenue from Contracts with Customers, establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. The new standard applies to all public entities for annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. Bancorp has evaluated the effect of ASU 2014-09 and believes adoption will not have a material effect on the Consolidated Financial Statements. Financial Statements. Under ASU 2016-01, Amendment to the Recognition and Measurement Guidance for Financial Instruments, an entity is required to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of Available For Sale debt securities in combination with other deferred tax assets. The Amendment provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Amendment also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard takes effect in 2018 for public companies. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities. Bancorp has evaluated the effect of ASU 2016-01 and believes adoption will not have a material effect on the Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact this update will have on its consolidated financial position and results of operations. V. Subsequent Events – W. Concentration of Credit Risk – . X. Reclassifications – . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Investment Securities | Note 2 - Investment Securities The amortized cost and fair value of investment securities held to maturity are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2015: US Treasury securities $ 21,057 $ 276 $ 8 $ 21,325 US Agency securities 20,011 139 76 20,074 US Government sponsored mortgage-backed securities 35,065 41 195 34,911 Total $ 76,133 $ 456 $ 279 $ 76,310 December 31, 2014: US Treasury securities $ 27,140 $ 465 $ 29 $ 27,576 US Agency securities 17,044 130 57 17,117 US Government sponsored mortgage-backed securities 15,432 48 50 15,430 Total $ 59,616 $ 643 $ 136 $ 60,123 As of December 31, 2015 and 2014, there were $0 and $4,244,000, respectively, of US Treasury securities or mortgage-backed securities pledged by Bancorp as collateral for borrowers’ letters of credit with Anne Arundel County. Bancorp is no longer required to pledge collateral due to its improved financial condition. The following table shows fair value and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2015. Included in the table are four US Treasury securities, Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: (dollars in thousands) US Treasury securities $ 3,992 $ 8 $ - $ - $ 3,992 $ 8 US Agency securities 12,958 76 - - 12,958 76 US Government sponsored mortgage-backed securities 31,091 195 - - 31,091 195 Total $ 48,041 $ 279 $ - $ - $ 48,041 $ 279 December 31, 2014: US Treasury securities $ 6,953 $ 29 $ - $ - $ 6,953 $ 29 US Agency securities 10,024 57 - - 10,024 57 US Government sponsored mortgage-backed securities 13,405 50 - - 13,405 50 Total $ 30,382 $ 136 $ - $ - $ 30,382 $ 136 The amortized cost and estimated fair value of debt securities as of December 31, 2015, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Held to Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 11,060 $ 11,125 Due from one year to five years 28,053 28,211 Due from five years to ten years 1,955 2,063 US Government sponsored mortgage-backed securities 35,065 34,911 $ 76,133 $ 76,310 |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2015 | |
Loans Receivable [Abstract] | |
Loans Receivable | Note 3 - Loans Receivable Loans receivable, including unfunded commitments consist of the following: December 31 2015 2014 (dollars in thousands) Residential mortgage, total $ 285,930 $ 309,461 Individually evaluated for impairment 26,087 28,535 Collectively evaluated for impairment 259,843 280,926 Construction, land acquisition and development, total 77,478 84,325 Individually evaluated for impairment 309 917 Collectively evaluated for impairment 77,169 83,408 Land, total 28,677 30,426 Individually evaluated for impairment 1,608 2,039 Collectively evaluated for impairment 27,069 28,387 Lines of credit, total 20,188 19,251 Individually evaluated for impairment 299 454 Collectively evaluated for impairment 19,889 18,797 Commercial real estate, total 174,912 198,539 Individually evaluated for impairment 6,321 6,309 Collectively evaluated for impairment 168,591 192,230 Commercial non-real estate, total 9,296 10,167 Individually evaluated for impairment 122 274 Collectively evaluated for impairment 9,174 9,893 Home equity, total 24,529 28,750 Individually evaluated for impairment 2,285 3,551 Collectively evaluated for impairment 22,244 25,199 Consumer, total 1,224 1,040 Individually evaluated for impairment 10 12 Collectively evaluated for impairment 1,214 1,028 Total Loans 622,234 681,959 Less Unfunded commitments included above (21,101 ) (36,162 ) 601,133 645,797 Individually evaluated for impairment 37,041 42,091 Collectively evaluated for impairment 564,092 603,706 601,133 645,797 Allowance for loan losses (8,758 ) (9,435 ) Deferred loan origination fees and costs, net (2,719 ) (2,480 ) Net Loans $ 589,656 $ 633,882 The inherent credit risks within the portfolio vary depending upon the loan class as follows: Residential mortgage loans Construction, land acquisition and development loans Land loans Line of credit loans Commercial real estate loans Commercial non-real estate loans Home equity loans Consumer loans The loan portfolio segments and loan classes disclosed above are the same because this is the level of detail management uses when the original loan is recorded and is the level of detail used by management to assess and monitor the risk and performance of the portfolio. Management has determined that this level of detail is adequate to understand and manage the inherent risks within each portfolio segment and loan class. A loan is considered a troubled debt restructuring when for economic or legal reasons relating to the borrowers financial difficulties Bancorp grants a concession to the borrower that it would not otherwise consider. Loan modifications made with terms consistent with current market conditions that the borrower could obtain in the open market are not considered troubled debt restructurings. With respect to all loan segments, management does not charge off a loan, or a portion of a loan, until one of the following conditions have been met: · The loan has been foreclosed on. Once the loan has been transferred from the Loans Receivable to Foreclosed Real Estate, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. · An agreement to accept less than the recorded balance of the loan has been made with the borrower. Once an agreement has been finalized, and any proceeds from the borrower are received, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. · The loan is considered to be impaired collateral dependent and its collateral valuation is less than the recorded balance. The loan is written down for accounting purposes by the amount of the difference between the recorded balance and collateral value. Prior to the above conditions, a loan is assessed for impairment when: (i) a loan becomes 90 days or more in arrears or (ii) based on current information and events, it is probable that the borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement. If a loan is considered to be impaired, it is then determined to be either cash flow or collateral dependent. For a cash flow dependent loan, if based on management’s calculation of discounted cash flows, a reserve is needed, a specific reserve is recorded. That reserve is included in the Allowance for Loan Losses in the Consolidated Statement of Financial Condition. Bancorp has experienced extension requests for commercial real estate and construction loans, some of which have related repayment guarantees. An extension may be granted to allow for the completion of the project, marketing or sales of completed units, or to provide for permanent financing, and is based on a re-underwriting of the loan and management's assessment of the borrower's ability to perform according to the agreed-upon terms. Typically, at the time of an extension, borrowers are performing in accordance with contractual loan terms. Extension terms generally do not exceed 12 to 18 months and typically require that the borrower provide additional economic support in the form of partial repayment, additional collateral or guarantees. In cases where the fair value of the collateral or the financial resources of the borrower are deemed insufficient to repay the loan, reliance may be placed on the support of a guarantee, if applicable. However, such guarantees are not relied on when evaluating a loan for impairment and never considered the sole source of repayment. Bancorp evaluates the financial condition of guarantors based on the most current financial information available. Most often, such information takes the form of (i) personal financial statements of net worth, cash flow statements and tax returns (for individual guarantors) and (ii) financial and operating statements, tax returns and financial projections (for legal entity guarantors). Bancorp’s evaluation is primarily focused on various key financial metrics, including net worth, leverage ratios, and liquidity. It is Bancorp's policy to update such information annually, or more frequently as warranted, over the life of the loan. While Bancorp does not specifically track the frequency with which it has pursued guarantor performance under a guarantee, its underwriting process, both at origination and upon extension, as applicable, includes an assessment of the guarantor's reputation, creditworthiness and willingness to perform. Historically, when Bancorp has found it necessary to seek performance under a guarantee, it has been able to effectively mitigate its losses. As stated above, Bancorp’s ability to seek performance under a guarantee is directly related to the guarantor's reputation, creditworthiness and willingness to perform. When a loan becomes impaired, repayment is sought from both the underlying collateral and the guarantor (as applicable). In the event that the guarantor is unwilling or unable to perform, a legal remedy is pursued. Construction loans are funded, at the request of the borrower, typically not more than once per month, based on the extent of work completed, and are monitored, throughout the life of the project, by independent professional construction inspectors and Bancorp's commercial real estate lending department. Interest is advanced to the borrower, upon request, based upon the progress of the project toward completion. The amount of interest advanced is added to the total outstanding principal under the loan commitment. Should the project not progress as scheduled, the adequacy of the interest reserve necessary to carry the project through to completion is subject to close monitoring by management. Should the interest reserve be deemed to be inadequate, the borrower is required to fund the deficiency. Similarly, once a loan is fully funded, the borrower is required to fund all interest payments. Construction loans are reviewed for extensions upon expiration of the loan term. Provided the loan is performing in accordance with contractual terms, extensions may be granted to allow for the completion of the project, marketing or sales of completed units, or to provide for permanent financing. Extension terms generally do not exceed 12 to 18 months. In general, Bancorp's construction loans are used to finance improvements to commercial, industrial or residential property. Repayment is typically derived from the sale of the property as a whole, the sale of smaller individual units, or by a take-out from a permanent mortgage. The term of the construction period generally does not exceed two years. Loan commitments are based on established construction budgets which represent an estimate of total costs to complete the proposed project including both hard (direct) costs (building materials, labor, etc.) and soft (indirect) costs (legal and architectural fees, etc.). In addition, project costs may include an appropriate level of interest reserve to carry the project through to completion. If established, such interest reserves are determined based on (i) a percentage of the committed loan amount, (ii) the loan term, and (iii) the applicable interest rate. Regardless of whether a loan contains an interest reserve, the total project cost statement serves as the basis for underwriting and determining which items will be funded by the loan and which items will be funded through borrower equity. Bancorp has not advanced additional interest reserves to keep a loan from becoming nonperforming. The following is a summary of the allowance for loan losses for the years ended December 31, 2015 and December 31, 2014 (dollars in thousands): 2015 Total Residential Mortgage Acquisition and Development Land Lines of Credit Commercial Real Estate Commercial Non-Real Estate Home Equity Consumer Beginning Balance $ 9,435 $ 4,664 $ 362 $ 646 $ 12 $ 2,504 $ 280 $ 963 $ 4 Provision (280 ) (651 ) 84 (185 ) (190 ) 368 59 236 (1 ) Charge-offs (1,522 ) (454 ) - - - (80 ) (154 ) (834 ) - Recoveries 1,125 629 - 49 235 - 49 163 - Ending Balance $ 8,758 $ 4,188 $ 446 $ 510 $ 57 $ 2,792 $ 234 $ 528 $ 3 Allowance on loans individually evaluated for impairment $ 2,282 $ 1,838 $ - $ 78 $ 30 $ 328 $ 5 $ 2 $ 1 Allowance on loans collectively evaluated for impairment $ 6,476 $ 2,350 $ 446 $ 432 $ 27 $ 2,464 $ 229 $ 526 $ 2 2014 Total Residential Mortgage Acquisition and Development Land Lines of Credit Commercial Real Estate Commercial Non-Real Estate Home Equity Consumer Beginning Balance $ 11,739 $ 6,291 $ 414 $ 1,346 $ 36 $ 2,512 $ 135 $ 1,003 $ 2 Provision 831 (1,089 ) 11 (1,049 ) 1,285 59 1,396 221 (3 ) Charge-offs (3,994 ) (844 ) (63 ) - (1,324 ) (92 ) (1,410 ) (261 ) - Recoveries 859 306 - 349 15 25 159 - 5 Ending Balance $ 9,435 $ 4,664 $ 362 $ 646 $ 12 $ 2,504 $ 280 $ 963 $ 4 Allowance on loans individually evaluated for impairment $ 2,777 $ 2,113 $ - $ 53 $ - $ 224 $ 15 $ 370 $ 2 Allowance on loans collectively evaluated for impairment $ 6,658 $ 2,551 $ 362 $ 593 $ 12 $ 2,280 $ 265 $ 593 $ 2 The allowance for loan losses is based on management’s judgment and evaluation of the loan portfolio. Management assesses the adequacy of the allowance for loan losses and the need for any addition thereto, by considering the nature and size of the loan portfolio, overall portfolio quality, review of specific problem loans, economic conditions that may affect the borrowers’ ability to pay or the value of property securing loans, and other relevant factors. While management believes the allowance was adequate at December 31, 2015, changing economic and market conditions may require future adjustments to the allowance for loan losses. For such loans that are classified as impaired, an allowance is established when the current market value of the underlying collateral less its estimated disposal costs is lower than the carrying value of that loan. For loans that are not solely collateral dependent, an allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. During the year ended December 31, 2015, the provision for loan losses was ($280,000) compared to $831,000 for the year ended December 31, 2014. This decrease of $1,111,000 was primarily due to lower total loans and improved asset quality at December 31, 2015 compared to December 31, 2014 and lower net charge-offs taken in 2015 compared to 2014. The following tables summarize impaired loans at December 31, 2015 and 2014 (dollars in thousands): Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2015 Residential mortgage $ 11,885 $ 1,838 $ 14,202 $ 26,087 $ 26,656 Construction, acquisition and development - - 309 309 309 Land 639 78 969 1,608 1,723 Lines of credit 299 30 - 299 299 Commercial real estate 3,214 328 3,107 6,321 6,469 Commercial non-real estate 103 5 19 122 123 Home equity 16 2 2,269 2,285 3,251 Consumer 10 1 - 10 10 Total Impaired loans $ 16,166 $ 2,282 $ 20,875 $ 37,041 $ 38,840 Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2014 Residential mortgage $ 14,094 $ 2,113 $ 14,441 $ 28,535 $ 29,487 Construction, acquisition and development - - 917 917 917 Land 355 53 1,684 2,039 2,157 Lines of credit - - 454 454 545 Commercial real estate 2,529 224 3,780 6,309 6,533 Commercial non-real estate 274 15 - 274 274 Home equity 1,472 370 2,079 3,551 4,274 Consumer 12 2 - 12 12 Total Impaired loans $ 18,736 $ 2,777 $ 23,355 $ 42,091 $ 44,199 The following tables summarize average impaired loans for the years ended December 31, 2015 and 2014 (dollars in thousands): Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized December 31, 2015 Residential mortgage $ 12,645 $ 540 $ 13,886 $ 564 $ 26,531 $ 1,104 Construction, acquisition and development 114 1 573 29 687 30 Land 822 21 1,035 72 1,857 93 Lines of credit 25 1 321 18 346 19 Commercial real estate 2,933 134 2,179 166 5,112 300 Commercial non-real estate 213 5 10 13 223 18 Home equity 337 8 2,520 115 2,857 123 Consumer 11 - 414 3 425 3 Total Impaired loans $ 17,100 $ 710 $ 20,938 $ 980 $ 38,038 1,690 Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized December 31, 2014 Residential mortgage $ 14,222 $ 592 $ 17,342 $ 648 $ 31,564 $ 1,240 Construction, acquisition and development - - 1,831 54 1,831 54 Land 359 13 1,774 89 2,133 102 Lines of credit 599 15 616 41 1,215 56 Commercial real estate 2,556 120 4,515 230 7,071 350 Commercial non-real estate 258 5 406 23 664 28 Home equity 1,460 - 2,174 65 3,634 65 Consumer 13 - - - 13 - Total Impaired loans $ 19,467 $ 745 $ 28,658 $ 1,150 $ 48,125 1,895 Included in the above impaired loans amount at December 31, 2015 is $28,067,000 of loans that are not in non-accrual status. In addition, there was a total of $26,087,000 of residential real estate loans included in impaired loans at December 31, 2015, of which $20,378,000 were to consumers and $5,709,000 to builders. The collateral supporting impaired loans is individually reviewed by management to determine its estimated fair market value, less estimated disposal cost and a charge-off to the loan is made, if necessary, for the difference between the carrying amount of any loan and the estimated fair value of the collateral less estimated disposal cost. A specific allowance is established if the net collateral value has not been finalized, but management determines that it is likely that the net collateral value of the loan is lower than the carrying value of the loan. The following tables present the classes of the loan portfolio, including unfunded commitments summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2015 and 2014 (dollars in thousands): Pass Special Mention Substandard Doubtful Total December 31, 2015 Residential mortgage $ 268,583 $ 12,457 $ 4,890 $ - $ 285,930 Construction acquisition and development 77,168 71 239 - 77,478 Land 26,845 1,268 564 - 28,677 Lines of credit 19,521 368 299 - 20,188 Commercial real estate 155,766 13,208 5,938 - 174,912 Commercial non-real estate 9,151 125 20 - 9,296 Home equity 22,018 588 1,923 - 24,529 Consumer 1,224 - - - 1,224 Total loans $ 580,276 $ 28,085 $ 13,873 $ - $ 622,234 Pass Special Mention Substandard Doubtful Total December 31, 2014 Residential mortgage $ 295,589 $ 1,331 $ 12,541 $ - $ 309,461 Construction acquisition and development 82,778 - 1,547 - 84,325 Land 30,285 - 141 - 30,426 Lines of credit 16,112 2,479 660 - 19,251 Commercial real estate 181,686 7,172 9,681 - 198,539 Commercial non-real estate 9,275 637 255 - 10,167 Home equity 25,769 - 2,981 - 28,750 Consumer 985 - 55 - 1,040 Total loans $ 642,479 $ 11,619 $ 27,861 $ - $ 681,959 Included in the Pass column were $21,101,000 and $36,162,000 in unfunded commitments at December 31, 2015 and 2014, respectively. Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. There were no loans past due greater than 90 days and still accruing as of December 31, 2015 and 2014. Included in the Current column were $21,101,000 and $36,162,000 in unfunded commitments at December 31, 2015 and 2014, respectively. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2015 and 2014 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Non-Accrual December 31, 2015 Residential mortgage $ 1,593 $ 65 $ 2,461 $ 4,119 $ 281,811 $ 285,930 $ 3,191 Construction acquisition and development - - - - 77,478 77,478 244 Land 137 - 156 293 28,384 28,677 277 Lines of credit 149 - - 149 20,039 20,188 483 Commercial real estate 253 - 292 545 174,367 174,912 2,681 Commercial non-real estate - - - - 9,296 9,296 - Home equity - - 625 625 23,904 24,529 2,098 Consumer 3 - - 3 1,221 1,224 - Total loans $ 2,135 $ 65 $ 3,534 $ 5,734 $ 616,500 $ 622,234 $ 8,974 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Non-Accrual December 31, 2014 Residential mortgage $ 2,549 $ 2,333 $ 3,095 $ 7,977 $ 301,484 $ 309,461 $ 6,052 Construction acquisition and development - - - - 84,325 84,325 115 Land - - 6 6 30,420 30,426 847 Lines of credit - - - - 19,251 19,251 388 Commercial real estate 447 45 375 867 197,672 198,539 652 Commercial non-real estate - - - - 10,167 10,167 1,775 Home equity 174 242 2,417 2,833 25,917 28,750 3,016 Consumer - - - - 1,040 1,040 - Total loans $ 3,170 $ 2,620 $ 5,893 $ 11,683 $ 670,276 $ 681,959 $ 12,845 The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statements of financial condition. The contract amounts of these instruments express the extent of involvement the Bank has in each class of financial instruments. The Bank's exposure to credit loss from non-performance by the other party to the above mentioned financial instruments is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Unless otherwise noted, the Bank requires collateral or other security to support financial instruments with off-balance-sheet credit risk. Financial Instruments Whose Contract Amounts Represent Credit Risk Contract Amount At December 31, 2015 2014 (dollars in thousands) Standby letters of credit $ 5,937 $ 7,357 Home equity lines of credit 7,467 8,571 Unadvanced construction commitments 21,101 36,162 Mortgage loan commitments 3,233 2,120 Lines of credit 27,189 23,844 Loans sold with limited repurchase provisions 65,107 38,247 Standby letters of credit are conditional commitments issued by the Bank guaranteeing performance by a customer to various municipalities. These guarantees are issued primarily to support performance arrangements, limited to real estate transactions. The majority of these standby letters of credit expire within the next twelve months. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending other loan commitments. The Bank requires collateral supporting these letters of credit as deemed necessary. Management believes, except for certain standby letters of credit, that the proceeds obtained through a liquidation of such collateral would be sufficient to cover the maximum potential amount of future payments required under the corresponding guarantees. The current amount of the liability as of December 31, 2015 and 2014 for guarantees under standby letters of credit issued was $115,000 and $314,000, respectively. Home equity lines of credit are loan commitments to individuals as long as there is no violation of any condition established in the contract. Commitments under home equity lines expire ten years after the date the loan closes and are secured by real estate. The Bank evaluates each customer's credit worthiness on a case-by-case basis. Unadvanced construction commitments are loan commitments made to borrowers for both residential and commercial projects that are either in process or are expected to begin construction shortly. Mortgage loan commitments not reflected in the accompanying statements of financial condition at December 31, 2015 include seven loans at a fixed interest rate range of 3.75% to 8.00% totaling $3,233,000 and two at floating interest rates totaling $0, and at December 31, 2014 included $2,120,000 at a fixed rate range of 3.75% to 4.50% and none at floating interest rates. Lines of credit are loan commitments to individuals and companies as long as there is no violation of any condition established in the contract. Lines of credit have a fixed expiration date. The Bank evaluates each customer's credit worthiness on a case-by-case basis. The Bank has entered into several agreements to sell mortgage loans to third parties. The loans sold under these agreements for the years ended December 31, 2015 and 2014 were $163,150,000 and $90,560,000, respectively. repurchased no loans under these agreements in 2015 or 2014 Only loans originated specifically for sale are recorded as held for sale at the period ended December 31, 2015 and December 31, 2014. Except for the liability recorded for standby letters of credit of $115,000 and $314,000 at December 31, 2015 and 2014, respectively, liabilities for credit losses associated with these commitments were not material at December 31, 2015 and 2014. Bancorp offers a variety of modifications to borrowers. The modification categories offered can generally be described in the following categories: · Rate Modification – A modification in which the interest rate is changed. · Term Modification – A modification in which the maturity date, timing of payments or frequency of payments is changed. · Interest Only Modification – A modification in which the loan is converted to interest only payments for a period of time. · Payment Modification – A modification in which the dollar amount of the payment is changed, other than an interest only modification above. · Loan Balance Modification – A modification in which a portion of the outstanding loan balance is forgiven. · Combination Modification – Any other type of modification, including the use of multiple categories above. Bancorp considers a modification of a loan term a TDR if Bancorp for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Prior to entering into a loan modification, Bancorp assesses the borrower’s financial condition to determine if the borrower has the means to meet the terms of the modification. This includes obtaining a credit report on the borrower as well as the borrower’s tax returns and financial statements. The following tables present newly restructured loans that occurred during the years ended December 31, 2015 and 2014 by the type of concession (dollars in thousands): Year ended December 31, 2015 Rate Modification Contracts Term Modifications Contracts Combination Modifications Contracts Total Total Contracts Pre-Modification Outstanding Recorded Investment: Residential mortgage $ - - $ 91 1 $ - 1 $ 91 2 Construction, acquisition and development - - - - - - - - Land - - - - 61 1 61 1 Lines of credit - - - - - - - - Commercial real estate - - - - - - - - Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans $ - - $ 91 1 $ 61 2 $ 152 3 Post-Modification Outstanding Recorded Investment: Residential mortgage $ - - $ 91 1 $ 109 1 $ 200 2 Construction, acquisition and development - - - - - - - - Land - - - - 31 1 31 1 Lines of credit - - - - - - - - Commercial real estate - - - - - - - - Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans $ - - $ 91 1 $ 140 2 $ 231 3 Year ended December 31, 2014 Rate Modification Contracts Term Modifications Contracts Combination Modifications Contracts Total Total Contracts Pre-Modification Outstanding Recorded Investment: Residential mortgage - - - - $ 447 2 $ 447 2 Construction, acquisition and development - - - - - - - - Land - - - - - - - - Lines of credit - - - - - - - - Commercial real estate - - - - 541 3 541 3 Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans - - - - $ 988 5 $ 988 5 Post-Modification Outstanding Recorded Investment: Residential mortgage - - - - $ 447 2 $ 447 2 Construction, acquisition and development - - - - - - - - Land - - - - - - - - Lines of credit - - - - - - - - Commercial real estate - - - - 541 3 541 3 Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans - - - - $ 988 5 $ 988 5 In addition, the TDR is considered an impaired loan. A determination is made as to whether an impaired TDR is cash flows or collateral dependent. If the TDR is cash flows dependent, an allowance for loan losses specific reserve is calculated based on the difference in net present value of future cash flows between the original and modified loan terms. If the TDR is collateral dependent, the collateral securing the TDR, which is always real estate, is evaluated for impairment based on an appraisal. If a TDR’s collateral valuation is less than its current loan balance, the TDR is written down for accounting purposes by the amount of the difference between the current loan balance and the collateral. If the borrower performs under the terms of the modification, generally six consecutive months, and the ultimate collectability of all amounts contractually due under the modified terms is not in doubt, the loan is returned to accrual status but continues to be an impaired loan. There are no loans that have been modified due to the financial difficulties of the borrower that are not considered a TDR. Interest on TDRs was accounted for under the following methods as of December 31, 2015 and December 31, 2014 (dollars in thousands): Number of Contracts Accrual Status Number of Contracts Non- Accrual Status Total Number of Contracts Total Modifications December 31, 2015 Residential mortgage 55 $ 20,831 3 $ 1,071 58 $ 21,902 Construction, acquisition and development 1 71 - - 1 71 Land 6 907 1 6 7 913 Lines of credit - - - - - - Commercial real estate 4 2,464 2 252 6 2,716 Commercial non-real estate 4 103 - - 4 103 Home equity - - - - - - Consumer 1 10 - - 1 10 Total loans 71 $ 24,386 6 $ 1,329 77 $ 25,715 December 31, 2014 Residential mortgage 57 $ 22,154 5 $ 2,402 62 $ 24,556 Construction, acquisition and development 2 803 - - 2 803 Land 5 982 1 6 6 988 Lines of credit - - - - - - Commercial real estate 6 3,623 1 109 7 3,732 Commercial non-real estate 5 150 2 124 7 274 Home equity - - - - - - Consumer 1 12 - - 1 12 Total loans 76 $ 27,724 9 $ 2,641 85 $ 30,365 Management does not charge off a TDR, or a portion of a TDR, until one of the following conditions has been met: · The loan has been foreclosed on. Once the loan has been transferred from the loans receivable to foreclosed real estate, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. · An agreement to accept less than the face value of the loan has been made with the borrower. Once an agreement has been finalized, and any proceeds from the borrower are received, a charge off is recorded for the difference between the recorded amount of the loan and the net value of the underlying collateral. Prior to either of the above conditions, a loan is assessed for impairment when a loan becomes a TDR. If, based on management’s assessment of the underlying collateral of the loan, it is determined that the TDR’s collateral valuation is less than its current loan balance, the TDR is written down for accounting purposes by the amount of the difference between the current loan balance and the collateral. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Note 4 - Premises and Equipment Premises and equipment are summarized by major classification as follows: December 31, Estimated 2015 2014 Useful Lives (dollars in thousands) Land $ 1,537 $ 1,537 - Building 29,464 29,423 39 Years Leasehold improvements 1,676 1,675 15-27.5 Years Furniture, fixtures and equipment 2,385 2,985 3-10 Years Construction in process 37 - Total at cost 35,099 35,620 Accumulated depreciation (10,809 ) (10,461 ) $ 24,290 $ 25,159 Depreciation expense was $1,137,000 and $1,110,000 for the years ended December 31, 2015 and 2014, respectively. Bancorp has four retail branch locations in Anne Arundel County, Maryland, of which it owns three and leases the fourth from a third party. The lease term expires July 2020. There is an option remaining to renew the lease for one additional five year term. In addition, the Bank leases office space in Annapolis, Maryland from a third party. The lease expires in January 2020. The minimum future annual rental payments on leases are as follows: Years Ended December 31, (in thousands) 2016 $ 152 2017 152 2018 134 2019 134 2020 94 Total rent expense was $131,000 and $121,000 for the years ended December 31, 2015 and 2014, respectively. The minimum future annual rental income on leases is as follows: Years Ended December 31, (in thousands) 2016 $ 974 2017 674 2018 455 2019 217 H.S. West, LLC, a subsidiary of the Bank, leases space to three unrelated companies and to a law firm of which the President of Bancorp and the Bank is a partner. Total gross rental income included in occupancy expense on the Consolidated Statements of Operations was $970,000 and $956,000 for the years ended December 31, 2015 and 2014, respectively. |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2015 | |
Foreclosed Real Estate [Abstract] | |
Foreclosed Real Estate | Note 5 – Foreclosed Real Estate As of December 31, 2015, Bancorp had foreclosed real estate consisting of seven residential properties with a carrying value of $1,419,000 and three land parcels with a carrying value of $325,000. During the year ended December 31, 2015, Bancorp sold a total of twelve properties previously included in foreclosed real estate. The properties sold during 2015 had a combined net book value of $2,379,000 after total write-downs taken subsequent to their transfer from loans to foreclosed real estate of $1,023,000, and were sold at a combined net gain of $49,000. In addition, Bancorp incurred Foreclosed real estate at December 31, 2013 $ 8,972 Transferred from impaired loans, net of specific reserves of $3,303 847 Property improvements - Additional write downs - Property sold, including loss on sale (7,872 ) Foreclosed real estate at December 31, 2014 $ 1,947 Transferred from impaired loans, net of specific reserves of $2,282 2,234 Property improvements - Additional write downs (58 ) Property sold, including loss on sale (2,379 ) Foreclosed real estate at December 31, 2015 $ 1,744 Total foreclosed real estate expense for 2015 was $230,000. Net gain on the property sales was $49,000, property write downs totaled $58,000 and operating expense was $221,000. Total foreclosed real estate expense for 2014 was $10,000. Net gain on the property sales was $302,000, property write downs totaled $0 and operating expense was $312,000. Consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process according to local requirements of the applicable jurisdiction totaled $1,487,000 as of December 31, 2015. |
Investment in Federal Home Loan
Investment in Federal Home Loan Bank of Atlanta Stock | 12 Months Ended |
Dec. 31, 2015 | |
Investment in Federal Home Loan Bank of Atlanta Stock [Abstract] | |
Investment in Federal Home Loan Bank of Atlanta Stock | Note 6 - Investment in Federal Home Loan Bank of Atlanta Stock The Bank is required to maintain an investment in the stock of the FHLB in an amount equal to at least 1% of the unpaid principal balances of the Bank's residential mortgage loans or 1/20 of its outstanding advances from the FHLB, whichever is greater. Purchases and sales of stock are made directly with the FHLB at par value. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Deposits | Note 7 – Deposits Deposits in the Bank as of December 31, 2015 and 2014 consisted of the following: December 31, 2015 December 31, 2014 Category Amount Percent Amount Percent (dollars in thousands) NOW accounts $ 56,096 10.71 % $ 54,827 10.08 % Money market accounts 47,690 9.11 % 39,579 7.28 % Passbooks 111,992 21.38 % 126,062 23.18 % Certificates of deposit 277,778 53.03 % 298,489 54.89 % Non-interest bearing accounts 30,215 5.77 % 24,857 4.57 % Total deposits $ 523,771 100.00 % $ 543,814 100.00 % At December 31, 2015 scheduled maturities of certificates of deposit are as follows: Amount (dollars in thousands) One year or less $ 169,298 More than 1 year to 2 years 56,335 More than 2 years to 3 years 21,899 More than 3 years to 4 years 5,936 More than 4 years to 5 years 24,310 $ 277,778 The aggregate amount of jumbo certificates of deposit with a minimum denomination of $250,000 was $25,713,000 and $30,702,000 at December 31, 2015 and 2014, respectively. |
Long Term Borrowings
Long Term Borrowings | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Borrowings [Abstract] | |
Long Term Borrowings | Note 8 – Long Term Borrowings The Bank's total credit availability under the FHLB’s credit availability program was $192,672,000 and $153,070,000 at December 31, 2015 and 2014, respectively. The Bank’s credit availability is based on the level of collateral pledged up to 25% of total assets. Rate Amount Maturity 1.81% to 1.83% $ 15,000 2016 2.43% to 4.05% 70,000 2017 2.58% to 3.43% 15,000 2018 4.00% 15,000 2019 $ 115,000 The Bank's stock in the FHLB is pledged as security for the advances and under a blanket floating lien security agreement with the FHLB. The Bank is required to maintain as collateral for its advances, qualified loans in varying amounts depending on the loan type. Loans with an approximate fair value of $274,783,000 are pledged as collateral at December 31, 2015. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Dec. 31, 2015 | |
Subordinated Debentures [Abstract] | |
Subordinated Debentures | Note 9 - Subordinated Debentures As of December 31, 2015, Bancorp had outstanding approximately $20,619,000 principal amount of Junior Subordinated Debt Securities Due 2035 (the “2035 Debentures”). The 2035 Debentures were issued pursuant to an Indenture dated as of December 17, 2004 (the “2035 Indenture”) between Bancorp and Wells Fargo Bank, National Association as Trustee. The 2035 Debentures pay interest quarterly at a floating rate of interest of 3-month LIBOR (0.32% December 31, 2015) plus 200 basis points, and mature on January 7, 2035. Payments of principal, interest, premium and other amounts under the 2035 Debentures are subordinated and junior in right of payment to the prior payment in full of all senior indebtedness of Bancorp, as defined in the 2035 Indenture. The 2035 Debentures became redeemable, in whole or in part, by Bancorp on January 7, 2010. The 2035 Debentures were issued and sold to Severn Capital Trust I (the “Trust”), of which 100% of the common equity is owned by Bancorp. The Trust was formed for the purpose of issuing corporation-obligated mandatorily redeemable Capital Securities (“Capital Securities”) to third-party investors and using the proceeds from the sale of such Capital Securities to purchase the 2035 Debentures. The 2035 Debentures held by the Trust are the sole assets of the Trust. Distributions on the Capital Securities issued by the Trust are payable quarterly at a rate per annum equal to the interest rate being earned by the Trust on the 2035 Debentures. The Capital Securities are subject to mandatory redemption, in whole or in part, upon repayment of the 2035 Debentures. Bancorp has entered into an agreement which, taken collectively, fully and unconditionally guarantees the Capital Securities subject to the terms of the guarantee. Under the terms of Bancorp’s 2035 Indenture, if Bancorp has deferred payments of interest on the 2035 Debentures, Bancorp may not, among other things, declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of its capital stock, including common stock until all such deferred interest has been paid. Accordingly, Bancorp will not be able to pay dividends on its common stock until the deferred interest on the 2035 Debentures has been paid in full. On November 15, 2008, Bancorp completed a private placement offering consisting of a total of 70 units, at an offering price of $100,000 per unit, for gross proceeds of $7.0 million. Each unit consisted of 6,250 shares of Bancorp's Series A preferred stock and Bancorp's Subordinated Note in the original principal amount of $50,000. The Subordinated Notes pay interest at an annual rate of 8.0%, payable quarterly in arrears on the last day of March, June, September and December commencing December 31, 2008. The Subordinated Notes are redeemable in whole or in part at the option of Bancorp at any time beginning on December 31, 2009 until maturity, which is December 31, 2018. Debt issuance costs totaled $245,000 and are being amortized over 10 years. Interest payments on the Subordinated Notes are current as of December 31, 2015. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | Note 10 – Employee Benefit Plans The Bank has a 401(k) Retirement Savings Plan. Employees may contribute a percentage of their salary up to the maximum amount allowed by law. The Bank is obligated to contribute 50% of the employee's contribution, not to exceed 6% of the employee's annual salary. All employees who have completed one year of service with the Bank are eligible to participate. The Bank's contributions to this plan were $217,000, and $198,000 for the years ended December 31, 2015 and 2014, respectively. The Bank has an Employee Stock Ownership Plan ("ESOP") for the exclusive benefit of participating employees. The Bank recognized ESOP expense of $140,000 for each of the years ended December 31, 2015 and 2014, and had unallocated shares to participants in the plan totaling 10,000 shares and 25,000 shares as of December 31, 2015 and 2014, respectively. The fair value of the unallocated shares at December 31, 2015 was approximately $58,000. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | Note 11 - Stockholders’ Equity As part of the private placement offering discussed in Note 9, Bancorp issued a total of 437,500 shares of its Series A 8.0% Non-Cumulative Convertible preferred stock (“Series A preferred stock”). The liquidation preference is $8.00 per share. Holders of Series A preferred stock will not be entitled to any further liquidation distribution on the Series A preferred stock. Each share of Series A preferred stock is convertible at the option of the holder into one share of Bancorp common stock, subject to adjustment upon certain corporate events. The initial conversion rate is equivalent to an initial conversion price of $8.00 per share of Bancorp common stock. At the option of Bancorp, on and after December 31, 2015, at any time and from time to time, some or all of the Series A preferred stock may be converted into shares of Bancorp common stock at the then-applicable conversion rate. Costs related to the issuance of the preferred stock totaled $247,000 and were netted against the proceeds. If declared by Bancorp's board of directors, cash dividends at an annual rate of 8.0% will be paid quarterly in arrears on the last day of March, June, September and December commencing December 31, 2008. Dividends will not be paid on Bancorp common stock in any quarter until the dividend on the Series A preferred stock has been paid for such quarter; however, there is no requirement that Bancorp's board of directors declare any dividends on the Series A preferred stock and any unpaid dividends shall not be cumulative. Dividends on the Series A preferred stock have not been declared since the first quarter of 2012. On November 21, 2008, Bancorp entered into an agreement with the United States Department of the Treasury (“Treasury”), pursuant to which Bancorp issued and sold (i) 23,393 shares of its Series B Fixed Rate Cumulative Perpetual preferred stock, par value $0.01 per share and liquidation preference $1,000 per share, (the “Series B preferred stock”) and (ii) a warrant (the “Warrant”) to purchase 556,976 shares of Bancorp’s common stock, par value $0.01 per share, for an aggregate purchase price of $23,393,000. Costs related to the issuance of the preferred stock and warrants totaled $45,000 and were netted against the proceeds. On September 25, 2013, the Treasury sold all of its 23,393 shares of Series B preferred stock to outside investors as part of their ongoing efforts to wind down and recover its remaining investments under the Troubled Asset Relief Program (“TARP’). The terms of the Series B preferred stock remain the same. The Treasury continues to hold the Warrant. The Series B preferred stock qualifies as Tier 1 capital and pays cumulative compounding dividends at a rate of 9% per annum. The Series B preferred stock may be redeemed by Bancorp. The Series B preferred stock has no maturity date and ranks pari passu with Bancorp’s existing Series A preferred stock, in terms of dividend payments and distributions upon liquidation, dissolution and winding up of Bancorp. The Series B preferred stock is non-voting, other than class voting rights on certain matters that could adversely affect the Series B preferred stock. If dividends on the Series B preferred stock have not been paid for an aggregate of six quarterly dividend periods or more, whether consecutive or not, Bancorp’s authorized number of directors will be automatically increased by two and the holders of the Series B preferred stock, voting together with holders of any then outstanding voting parity stock, will have the right to elect those directors at Bancorp’s next annual meeting of stockholders or at a special meeting of stockholders called for that purpose. These preferred share directors will be elected annually and serve until all accrued and unpaid dividends on the Series B preferred stock have been paid. In connection with the sale by the Treasury of the Series B preferred stock, the Federal Reserve obtained waivers from the outside investors who purchased the Series B preferred stock in which such investors agreed not to exercise their right to elect directors, and certain other voting or control rights, without the prior approval of the Federal Reserve. The Warrant has a 10-year term and is immediately exercisable at an exercise price of $6.30 per share of Common Stock. The exercise price and number of shares subject to the Warrant are both subject to anti-dilution adjustments. Pursuant to the Purchase Agreement, Treasury has agreed not to exercise voting power with respect to any shares of Common Stock issued upon exercise of the Warrant. Bancorp’s ability to declare dividends on its common stock are limited by the terms of Bancorp’s Series A preferred stock and Series B preferred stock. Bancorp may not declare or pay any dividend on, make any distributions relating to, or redeem, purchase, acquire or make a liquidation payment relating to, or make any guarantee payment with respect to its common stock in any quarter until the dividend on the Series A preferred stock has been declared and paid for such quarter, subject to certain minor exceptions. Additionally, Bancorp may not declare or pay dividend or distribution on its common stock, and Bancorp may not purchase, redeem or otherwise acquire for consideration any of its common stock, unless all accrued and unpaid dividends for all past dividend periods, including the latest completed dividend period, on all outstanding shares of Series B preferred stock have been or are contemporaneously declared and paid in full (or have been declared and a sum sufficient for the payment thereof has been set aside), subject to certain minor exceptions. As of December 31, 2015, the cumulative amount of dividends of the Series B preferred stock in arrears not declared, including interest on unpaid dividends was $7,033,000. Accordingly, Bancorp will not be able to pay dividends on its common stock until the dividend arrearages on its Series B preferred stock have been paid in full and until Bancorp declares and pays a dividend on its Series A preferred stock. Additionally, under the terms of Bancorp's 2035 Debentures, if (i) there has occurred and is continuing an event of default, (ii) Bancorp is in default with respect to payment of any obligations under the related guarantee or (iii) Bancorp has given notice of its election to defer payments of interest on the 2035 Debentures by extending the interest distribution period as provided in the indenture governing the 2035 Debentures and such period, or any extension thereof, has commenced and is continuing, then Bancorp may not, among other things, declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of its capital stock, including common stock. As permitted under the terms of the 2035 Debentures, as of December 31, 2015, Bancorp has deferred the payment of fifteen quarters of interest and the cumulative amount of interest in arrears not paid, including interest on unpaid interest, was $1,863,000. Accordingly, Bancorp will not be able to pay dividends on its common stock until the interest deferrals on the 2035 Debentures have been paid in full. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 12- Stock-Based Compensation Bancorp has a stock-based compensation plan for directors, officers, and other key employees of Bancorp. The aggregate number of shares of common stock that may be issued with respect to the awards granted under the plan is 500,000 plus any shares forfeited under Bancorp’s old stock-based compensation plan. Under the terms of the plan, Bancorp has the ability to grant various stock compensation incentives, including stock options, stock appreciation rights, and restricted stock. The number of shares available to grant under the plan was 260,501 at December 31, 2015. The stock-based compensation is granted under terms and conditions determined by the Compensation Committee of the Board of Directors. Under the stock based compensation plan, stock options generally have a maximum term of ten years, and are granted with an exercise price at least equal to the fair market value of the common stock on the date the options are granted. Generally, options granted to directors of Bancorp vest immediately, and options granted to officers and employees vest over a five-year period, although the Compensation Committee has the authority to provide for different vesting schedules. Bancorp follows FASB ASC 718, Compensation – Stock Compensation (FASB ASC 718) to account for stock-based compensation. FASB ASC 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized as compensation expense in the statement of operations at fair value. FASB ASC 718 requires an entity to recognize the expense of employee services received in share-based payment transactions and measure the expense based on the grant date fair value of the award. The expense is recognized over the period during which an employee is required to provide service in exchange for the award. Stock-based compensation expense included in the consolidated statements of operations for the years ended December 31, 2015 and 2014 totaled $120,000 and $201,000, respectively. There was no income tax benefit recognized in the consolidated statements of operations for stock-based compensation for the years ended December 31, 2015 and 2014. There were 111,500 options granted in 2015 and 50,000 options granted in 2014. Information regarding Bancorp’s stock option plan as of and for the years ended December 31, 2015 and 2014 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options outstanding, December 31, 2013 319,000 $ 4.23 Options granted 50,000 4.67 Options exercised (700 ) 3.37 Options forfeited (40,100 ) 3.93 Options outstanding, December 31, 2014 328,200 4.33 Options granted 111,500 5.85 Options exercised (21,500 ) 4.48 Options forfeited (78,400 ) 4.29 Options outstanding, December 31, 2015 339,800 4.83 3.48 $322,714 Options exercisable, December 31, 2015 104,230 4.17 2.53 $164,859 Option price range at December 31, 2015 $3.37 to $6.33 The stock-based compensation expense amounts were derived using the Black-Scholes option-pricing model. The following weighted average assumptions were used to value options granted in current and prior periods presented. 2015 2014 Expected life of options 5.5 years 5.5 years Risk-free interest rate 1.71 % 1.76 % Expected volatility 61.84 % 66.61 % Expected dividend yield 0.00 % 0.00 % Weighted average fair value of options granted $ 3.16 $ 2.63 The expected life of options amount is based on the vesting period and the expiration date of the options granted. The Risk-free interest rate is based on the US Treasury’s five year Treasury note rate at the time of the option grant. The expected volatility is based on the closing common stock price of Bancorp over a five year period. The expected dividend yield is based on Bancorp’s current policy of not paying a common stock dividend. In addition, option valuation models require the input of highly subjective assumptions including the expected stock price volatility. The following table summarizes the nonvested options in Bancorp’s stock option plan as of December 31, 2015. Shares Weighted Average Exercise Price Nonvested options outstanding, December 31, 2014 198,505 $ 4.44 Nonvested options granted 111,500 5.85 Nonvested options vested (45,435 ) 4.31 Nonvested options forfeited (29,000 ) 4.55 Nonvested options outstanding, December 31, 2015 235,570 $ 5.13 As of December 31, 2015, there was approximately $690,000 of total unrecognized stock-based compensation cost related to non-vested stock options, which is expected to be recognized over a period of fifty-eight months. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 13- Regulatory Matters As of December 31, 2015, Bancorp’s reservable liability was below the threshold established by the Federal Reserve Bank and therefore, Bancorp was not required to maintain reserves (in the form of deposits with the Federal Reserve Bank or a correspondent bank on behalf of the Federal Reserve Bank.) Federal banking agencies have adopted proposals that have substantially amended the regulatory capital rules applicable to Bancorp and the Bank. The amendments implement the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. The amended rules establish new higher capital ratio requirements, narrow the definitions of capital, impose new operating restrictions on banking organizations with insufficient capital buffers and increase the risk weighting of certain assets. The amended rules were effective with respect to Bancorp and the Bank in January 2015, with certain requirements to be phased in beginning in 2016. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As of December 31, 2015, the most recent notification from the regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, Common Equity Tier 1 and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios are also presented in the table. The following table presents the Bank's actual capital amounts and ratios at December 31, 2015 and 2014: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount % Amount % Amount % (dollars in thousands) December 31, 2015 Tangible (1) $ 112,959 14.8 % $ 11,423 1.50 % N/ A N/ A Tier 1 capital (2) 112,959 19.6 % 34,626 6.00 % $ 46,168 8.00 % Common Equity Tier 1 (2) 112,959 19.6 % 25,970 4.50 % $ 37,512 6.50 % Leverage (1) 112,959 14.8 % 30,461 4.00 % 38,076 5.00 % Total (2) 120,193 20.8 % 46,168 8.00 % 57,710 10.00 % December 31, 2014 Tangible (1) $ 106,916 13.8 % $ 11,590 1.50 % N/ A N/ A Tier 1 capital (2) 106,916 19.4 % N/ A N/ A $ 33,081 6.00 % Leverage (1) 106,916 13.8 % 30,906 4.00 % 38,633 5.00 % Total (2) 113,848 20.6 % 44,108 8.00 % 55,135 10.00 % (1) To adjusted total assets. (2) To risk-weighted assets. On November 23, 2009, Bancorp and the Bank each entered into a supervisory agreement with the Office of Thrift Supervision (“OTS”). As a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), effective as of July 21, 2011, the OTS was abolished, and the regulatory oversight functions and authority of the OTS related to the Bank were transferred to the Office of the Comptroller of the Currency (“OCC”) and the regulatory oversight functions and authority of the OTS related to Bancorp were transferred to the Board of Governors of the Federal Reserve System (“Federal Reserve” or “FRB”). The Bank’s supervisory agreement was replaced by a formal agreement dated April 23, 2013 with the OCC. On October 15, 2015, the Bank was notified by the OCC that its agreement was terminated. Bancorp’s supervisory agreement was enforced by the FRB. On January 21, 2016, Bancorp was notified by FRB that its agreement was terminated. On April 23, 2013, the Bank was notified by the OCC that the OCC established minimum capital ratios for the Bank requiring it to immediately maintain a Tier 1 Leverage Capital Ratio to Adjusted Total Assets of at least 10% and a Total Risk-Based Capital to Risk-Weighted Assets ratio of at least 15%. On October 15, 2015 the Bank was notified by the OCC that these additional minimum capital ratios were no longer required. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 14 - Income Taxes The income tax provision consists of the following for the years ended December 31: 2015 2014 Current Federal $ 83 $ 12 State 7 19 90 31 Deferred Federal 1,486 1,029 State 321 251 1,807 1,280 Valuation allowance (1,807 ) (1,280 ) Total income tax provision $ 90 $ 31 The amount computed by applying the statutory federal income tax rate to income before taxes is less than the tax provision for the following reasons for the years ended December 31: 2015 2014 Amount Percent of Pretax Income Amount Percent of Pretax Income Statutory Federal income tax rate $ 1,572 34.0 % $ 1,000 34.0 % State tax net of Federal income tax benefit 216 4.7 % 178 6.1 % Valuation allowance change (1,807 ) (39.1 )% (1,280 ) (43.5 )% Other adjustments 109 2.4 % 133 4.5 % $ 90 2.0 % $ 31 1.1 % Bancorp does not have a liability related to tax positions at December 31, 2015 or 2014. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: 2015 2014 (dollars in thousands) Deferred Tax Assets: Allowance for loan losses $ 5,456 $ 5,648 Loan charge-offs - - Reserve on foreclosed real estate 552 565 Reserve for uncollected interest 143 263 Reserve for contingent liability 57 128 Federal net operating loss carryforwards 7,306 8,593 State net operating loss carryforwards 1,457 1,606 Charitable contribution carryforwards 319 319 Other 88 12 Total deferred tax assets 15,378 17,134 Valuation allowance (12,485 ) (14,292 ) Total deferred tax assets, net of valuation allowance 2,893 2,842 Deferred Tax Liabilities: Federal Home Loan Bank stock dividends (84 ) (84 ) Loan origination costs (733 ) (627 ) Accelerated depreciation (1,544 ) (1,599 ) Prepaid expenses (278 ) (265 ) Mortgage servicing rights (252 ) (265 ) Other (2 ) (2 ) Total deferred tax liabilities (2,893 ) (2,842 ) Net deferred tax assets $ - $ - At December 31, 2015, federal net operating losses totaled $20,875,000 and expire in 2033 and 2034. The state net operating losses totaled $27,173,000 and expire at various times from 2023 through 2033. In assessing the realizability of federal or state deferred tax assets at December 31, 2015, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and prudent, feasible and permissible as well as available tax planning strategies in making this assessment. Based on its review of all available evidence, and after consideration of the losses recorded on the loan sales in 2013, management determined it was more likely than not that the deferred tax assets will not be realized and accordingly determined that a valuation allowance should be recorded as of December 31, 2015 and 2014. The deferred tax asset valuation may, in accordance with the requirements of generally accepted accounting principles, be reversed in future periods, depending upon Bancorp’s financial position and results of operations in the future, among other factors, and, in such event, may be available to increase future earnings. Bancorp will continue to have the benefit of the net operating loss carryforward relating to the deferred tax asset, and will have the ability to utilize the carryforward against future federal and state income taxes. The statute of limitations for Internal Revenue Service examination of Bancorp’s federal consolidated tax returns remains open for tax years 2012 through 2015. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15 - Related Party Transactions During the years ended December 31, 2015 and 2014, the Bank engaged in the transactions described below with parties that are deemed affiliated. During January 2007, a law firm, in which the President of Bancorp and the Bank is a partner, entered into a five year lease agreement with a subsidiary of Bancorp. The term of the lease is five years with the option to renew the lease for three additional five year terms. The first option to renew was exercised in January 2012. The total payments received by the subsidiary, which includes rent, common area maintenance and utilities were $404,000 and $385,000 for the years ended December 31, 2015 and 2014, respectively. In addition, the law firm represents Bancorp and the Bank in certain legal matters. The fees for services rendered by that firm were $206,000, and $324,000 for the years ended December 31, 2015 and 2014 respectively. Members of the Board of Directors of Bancorp had loans outstanding totaling $3,186,000 and $3,340,000 at December 31, 2015 and 2014, respectively. The following table shows loan activity for the year ended December 31, 2015: 2015 Beginning balance as of December 31, 2014 $ 3,340,000 Loan funding - Loan pay off/payment 154,000 Ending balance as of December 31, 2015 $ 3,186,000 |
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 16 - Fair Value of Financial Instruments A fair value hierarchy that prioritizes the inputs to valuation methods is used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair market hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Significant other observable inputs other than level 1 such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumption that market participants would use in pricing an asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following information should not be interpreted as an estimate of the fair value of Bancorp since a fair value calculation is only provided for a limited portion of Bancorp’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between Bancorp’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of Bancorp’s financial instruments at December 31, 2015 and December 31, 2014. Impaired Loans: Impaired loans are carried at the lower of cost or the present value of expected future cash flows of the loan. If it is determined that the repayment of the loan will be provided solely by the underlying collateral, and there are no other available and reliable sources of repayment, the loan is considered collateral dependent. Impaired loans that are considered collateral dependent are carried at the lower of cost or the fair value of the underlying collateral. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The use of independent appraisals and management’s best judgment are significant inputs in arriving at the fair value measure of the underlying collateral and impaired loans are therefore classified within level 3 of the fair value hierarchy. For such loans that are classified as impaired, an allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. For such loans that are classified as collateral dependent impaired loans, an allowance is established when the current market value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge-off is taken for the difference between the net collateral value and the carrying value of the loan. Impaired loans are those for which Bancorp has measured impairment based on the present value of expected future cash flows or on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consisted of the loan balances of $16,166,000 and $18,736,000 at December 31, 2015 and December 31, 2014, respectively, less their valuation allowances of $2,282,000 and $2,777,000 at December 31, 2015 and December 31, 2014, respectively. The fair value of seven impaired collateral-dependent loans that were partially charged off during the year ended December 31, 2015 totaled $3,219,000 net of charge-offs of $622,000. The fair value of nine impaired collateral-dependent loans that were partially charged off during the year ended December 31, 2014 totaled $3,834,000 net of charge-offs of $477,000. Foreclosed Real Estate: Real estate acquired through foreclosure is included in the following disclosure at the lower of carrying value or fair value less estimated disposal costs. Management periodically evaluates the recoverability of the carrying value of the real estate acquired through foreclosure using current estimates of fair value. In the event of a subsequent decline, management provides a specific allowance to reduce real estate acquired through foreclosure to fair value less estimated disposal cost. Expenses incurred on foreclosed real estate prior to disposition are charged to expense. Gains or losses on the sale of foreclosed real estate are recognized upon disposition of the property. The following table sets forth financial assets that were accounted for at fair value on a nonrecurring and recurring basis by level within the fair value hierarchy as of December 31, 2015: December 31, 2015 Fair Value Measurement Using: December 31, 2015 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nonrecurring fair value measurements Impaired loans $ 17,103 $ - $ - $ 17,103 Foreclosed real estate 543 - - 543 Total nonrecurring fair value measurements $ 17,646 $ - $ - $ 17,646 Recurring fair value measurements Mortgage servicing rights $ 623 $ - $ - $ 623 Rate lock commitments 141 - 141 - Mandatory forward contracts 111 - 111 - Total recurring fair value measurements $ 875 $ - $ 252 $ 623 The following table sets forth financial assets that were accounted for at fair value on a nonrecurring and recurring basis by level within the fair value hierarchy as of December, 31, 2014: December 31, 2014 Fair Value Measurement Using: December 31, 2014 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nonrecurring fair value measurements Impaired loans $ 15,959 $ - $ - $ 15,959 Foreclosed real estate 1,947 - - 1,947 Total nonrecurring fair value measurements $ 17,906 $ - $ - $ 17,906 Recurring fair value measurements Mortgage servicing rights $ 658 $ - $ - $ 658 Rate lock commitments 139 - 139 - Mandatory forward contracts (59 ) - (59 ) - Total recurring fair value measurements $ 738 $ - $ 80 $ 658 There were no liabilities that were required to be re-measured on a nonrecurring basis at December 31, 2015 or December 31, 2014. All appraisals are reviewed by the credit department; however, no modifications or adjustments are made to the appraisals received. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Bancorp has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 13,884 PV of future cash flows (1) Discount Rate -6.00 % $ 3,219 Appraisal of collateral (2) Liquidation expenses (3) -6.00 % Foreclosed real estate $ 543 Appraisal of collateral (2),(4) Appraisal adjustments (3) -6.12% to -7.31% (-6.24%) December 31, 2014 Impaired loans $ 15,589 PV of future cash flows (1) Discount Rate -6.00 % $ 370 Appraisal of collateral (2) Liquidation expenses (3) -6.00 % Foreclosed real estate $ 1,947 Appraisal of collateral (2),(4) Appraisal adjustments (3) -6.51% to -100% (-13.94%) (1) Cash flow which generally include various level 3 inputs which are not identifiable. (2) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (3) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (4) Includes qualitative adjustments by management and estimated liquidation expenses. The estimated fair values of Bancorp's financial instruments as of December 31, 2015 and December 31, 2014 were as follows: Fair Value Measurement at December 31, 2015 Carrying Amount Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets (dollars in thousands) Cash and cash equivalents $ 43,591 $ 43,591 $ 43,591 $ - $ - Investment securities (HTM) 76,133 76,310 - 76,310 - Loans held for sale 13,203 13,295 - 13,295 - Loans receivable, net 589,656 593,742 - - 593,742 FHLB stock 5,626 5,626 - 5,626 - Accrued interest receivable 2,218 2,218 - 2,218 - Mortgage servicing rights 623 623 - - 623 Rate lock commitments 141 141 - 141 - Mandatory forward contracts 111 111 - 111 - Financial Liabilities Deposits $ 523,771 $ 524,458 - 524,458 - FHLB advances 115,000 110,759 - 110,759 - Subordinated debentures 24,119 24,119 - - 24,119 Accrued interest payable 3,137 3,137 - 3,137 - Off Balance Sheet Commitments $ - $ - $ - $ - $ - Fair Value Measurement at December 31, 2014 Carrying Amount Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets (dollars in thousands) Cash and cash equivalents $ 33,335 $ 33,335 33,335 $ - $ - Investment securities (HTM) 59,616 60,123 - 60,123 - Loans held for sale 7,165 7,211 - 7,211 - Loans receivable, net 633,882 636,696 - - 636,696 FHLB stock 5,936 5,936 - 5,936 - Accrued interest receivable 2,297 2,297 - 2,297 - Mortgage servicing rights 658 658 - - 658 Rate lock commitments 139 139 - 139 - Financial Liabilities Deposits $ 543,814 $ 544,751 - 544,751 - FHLB advances 115,000 108,859 - 108,859 - Subordinated debentures 24,119 24,119 - - 24,119 Accrued interest payable 2,136 2,136 - 2,136 - Mandatory forward contracts 59 59 - 59 - Off Balance Sheet Commitments $ - $ - - $ - $ - The foregoing information should not be interpreted as an estimate of the fair value of Bancorp since a fair value calculation is only provided for a limited portion of Bancorp’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between Bancorp’s disclosures and those of other companies may not be meaningful. The following methods and assumptions were used to estimate the fair values of Bancorp’s financial instruments at December 31, 2015 and 2014. Cash and cash equivalents: The carrying amounts reported in the consolidated statements of financial condition for cash and cash equivalents approximate those assets’ fair values. Investment Securities: Bancorp utilizes a third party source to determine the fair value of its securities. The methodology consists of pricing models based on asset class and includes available trade, bid, other market information, broker quotes, proprietary models, various databases and trading desk quotes. All Bancorp’s investments are considered Level 2. FHLB stock: The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB. There have been no identified events or changes in circumstances that may have a significant adverse effect on the FHLB stock. Based on our evaluation, we have concluded that our FHLB stock was not impaired at December 31, 2015 and 2014. Loans held for sale: The fair value of loans held for sale is based primarily on mandatory contracts. Loans receivable: The fair values of loans receivable was estimated using discounted cash flow analyses, using market interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. These rates were used for each aggregated category of loans as reported on the OCC Quarterly Report. Accrued interest receivable and payable: The carrying amounts of accrued interest receivable and accrued interest payable approximates its fair value. Derivative Instruments: Mortgage banking derivatives used in the ordinary course of business primarily consist of mandatory forward sales contracts (“forward contract”) and rate lock commitments. The fair value of Bancorp’s derivative instruments is primarily measured by obtaining pricing from broker-dealers recognized to be market participants. The pricing is derived from observable market inputs that can generally be verified and do not typically involve significant judgment by Bancorp. Forward contracts and rate lock loan commitments are classified as Level 2 in the fair value hierarchy. Mortgage servicing rights: The fair value of mortgage servicing rights is determined using a valuation model administered by a third party that calculates the present value of estimated future net servicing income. The model incorporates assumptions that market participants use in estimating future net servicing income, including estimates of prepayment speeds, discount rate, default rates, cost to service (including delinquency and foreclosure costs), escrow account earnings, contractual servicing fee income and other ancillary income such as late fees. Management reviews all significant assumptions on a monthly basis. Mortgage loan prepayment speed, a key assumption in the model, is the annual rate at which borrowers are forecasted to repay their mortgage loan principal. The discount rate used to determine the present value of estimated future net servicing income, another key assumption in the model, is an estimate of the required rate of return investors in the market would require for an asset with similar risk. Both assumptions can, and generally will, change as market conditions and interest rates change. Deposit liabilities: The fair values disclosed for demand deposit accounts, savings accounts and money market deposits are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies market interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. FHLB advances: Fair values of long-term debt are estimated using discounted cash flow analysis, based on rates currently available for advances from the FHLB with similar terms and remaining maturities. Subordinated debentures: Current economic conditions have rendered the market for this liability inactive. As such, Bancorp is unable to determine a good estimate of fair value. Since the rate paid on the debentures held is lower than what would be required to secure an interest in the same debt at year end and we are unable to obtain a current fair value, Bancorp has disclosed that the carrying value approximates the fair value. Off-balance sheet financial instruments: Fair values for Bancorp’s off-balance sheet financial instruments (lending commitments and letters of credit) are not significant and are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information (Parent Company Only) [Abstract] | |
Condensed Financial Information (Parent Company Only) | Note 17 - Condensed Financial Information (Parent Company Only) Information as to the financial position of Severn Bancorp, Inc. as of December 31, 2015 and 2014 and results of operations and cash flows for each of the years ended December 31, 2015 and 2014 is summarized below. December 31, 2015 2014 (dollars in thousands) Statements of Financial Condition Cash $ 993 $ 1,316 Equity in net assets of subsidiaries: Bank 113,294 107,316 Non-Bank 3,881 3,758 Loans, net of allowance for loan losses - - Other assets 912 920 Total assets $ 119,080 $ 113,310 Subordinated debentures $ 24,119 $ 24,119 Other liabilities 8,505 5,381 Total liabilities 32,624 29,500 Stockholders’ equity 86,456 83,810 Total liabilities and stockholders’ equity $ 119,080 $ 113,310 December 31, 2015 2014 Statements of Operations Interest income $ - $ 34 Interest expense on subordinated debentures 1,322 1,086 Net interest expense (1,322 ) (1,052 ) General and administrative expenses 243 242 Provision for loan losses - (19 ) Loss before income taxes and equity in undistributed net income of subsidiaries (1,565 ) (1,275 ) Income tax expense - (20 ) Equity in undistributed net income of subsidiaries 6,100 4,204 Net income $ 4,535 $ 2,909 For the Years Ended December 31, 2015 2014 (dollars in thousands) Statements of Cash Flows Cash Flows from Operating Activities: Net income $ 4,535 $ 2,909 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries (6,100 ) (4,204 ) Provision for loan losses - (19 ) Decrease in other assets 8 559 Stock-based compensation expense 120 201 Increase in other liabilities 1,018 298 Cash used in operating activities (419 ) (256 ) Cash Flows from Investing Activities: Net decrease in loans - 350 Cash provided by investing activities - 350 Cash Flows from Financing Activities: Proceeds from sale of foreclosed real estate - 250 Proceeds from exercise of options 96 3 Cash provided by financing activities 96 253 (Decrease) increase in cash and cash equivalents (323 ) 347 Cash and cash equivalents at beginning of year 1,316 969 Cash and cash equivalents at end of year $ 993 $ 1,316 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | A. Principles of Consolidation - |
Business | B. Business - Bancorp has no reportable segments. Management does not separately allocate expenses, including the cost of funding loan demand, between the retail and real estate operations of Bancorp. As such, discrete financial information is not available and segment reporting would not be meaningful. |
Estimates | C. Estimates - |
Investment Securities Held to Maturity | D. Investment Securities Held to Maturity – |
Federal Home Loan Bank Stock | E. Federal Home Loan Bank Stock – The Bank evaluated the FHLB stock for impairment in accordance with generally accepted accounting principles. The Bank’s determination of whether this investment is impaired is based on an assessment of the ultimate recoverability of its cost rather than by recognizing temporary declines in value. The determination of whether a decline in value affects the ultimate recoverability of its cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, (3) the impact of legislative and regulatory changes on institutions and accordingly on the customer base of the FHLB, and (4) the liquidity position of the FHLB. Management has evaluated the FHLB stock for impairment and believes that no impairment charge is necessary as of December 31, 2015. |
Loans Held for Sale | F. Loans Held for Sale - |
Derivative Financial Instruments | G. Derivative Financial Instruments |
Loan Servicing | H. Loan Servicing - Loans serviced for others not included in the accompanying consolidated statements of financial condition totaled $76,460,000 and $93,332,000 at December 31, 2015 and 2014, respectively. As of December 31, 2015, the Bank was servicing $20,454,000 in loans for Federal Home Loan Mortgage Corporation (“FHLMC”), $44,366,000 in loans for Federal National Mortgage Association (“FNMA”) and $11,640,000 in loans for other investors. |
Loans | I. Loans - Residential lending is generally considered to involve less risk than other forms of lending, although payment experience on these loans is dependent to some extent on economic and market conditions in the Bank's lending area. Multifamily residential, commercial, construction and other loan repayments are generally dependent on the operations of the related properties or the financial condition of its borrower or guarantor. Accordingly, repayment of such loans can be more susceptible to adverse conditions in the real estate market and the regional economy. A substantial portion of the Bank's loans receivable is mortgage loans secured by residential and commercial real estate properties located in the State of Maryland. Loans are extended only after evaluation by management of customers' creditworthiness and other relevant factors on a case-by-case basis. The Bank generally does not lend more than 80% of the appraised value of a property and requires private mortgage insurance on residential mortgages with loan-to-value ratios in excess of 80%. In addition, the Bank generally obtains personal guarantees of repayment from borrowers and/or others for construction, commercial and multifamily residential loans and disburses the proceeds of construction and similar loans only as work progresses on the related projects. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Past due status is based on contractual terms of the loan. 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 in the current year, but not collected for loans that are placed on non-accrual or charged-off, is reversed against interest income. Any interest accrued in prior years for loans that are placed on non-accrual or charged-off is charged against the allowance for loan losses. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | J. Allowance for Loan Losses - The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired. When a real estate secured loan becomes impaired, a decision is made as to whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. For such loans that are classified as impaired, an allowance is established when the current market value of the underlying collateral less its estimated disposal costs has not been finalized, but management determines that it is likely that the value is lower than the carrying value of that loan. Once the net collateral value has been determined, a charge-off is taken for the difference between the net collateral value and the carrying value of the loan. For loans that are not solely collateral dependent, an allowance is established when the present value of the expected future cash flows of the impaired loan is lower than the carrying value of that loan. The general component relates to loans that are classified as doubtful, substandard or special mention that are not considered impaired, as well as non-classified loans. The general reserve is based on historical loss experience adjusted for qualitative factors. These qualitative factors include: · Levels and trends in delinquencies and nonaccruals; · Inherent risk in the loan portfolio; · Trends in volume and terms of the loan; · Effects of any change in lending policies and procedures; · Experience, ability and depth of management; · National and local economic trends and conditions; and · Effect of any changes in concentration of credit. A loan is generally considered impaired if it meets either of the following two criteria: · Loans that are 90 days or more in arrears (nonaccrual loans); or · Loans where, based on current information and events, it is probable that a borrower will be unable to pay all amounts due according to the contractual terms of the loan agreement. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. |
Foreclosed Real Estate | K . Foreclosed Real Estate |
Transfers of Financial Assets | L. Transfers of Financial Assets – |
Premises and Equipment | M. Premises and Equipment - |
Statement of Cash Flows | N. Statement of Cash Flows - |
Income Taxes | O. Income Taxes - The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. To the extent that current available evidence about the future raises doubt about the likelihood of a deferred tax asset being realized, a valuation allowance is established. Bancorp recognizes a tax position as a benefit only if it “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The judgment about the level of future taxable income is inherently subjective and is reviewed on a continual basis as regulatory and business factors change. Bancorp recognizes interest and penalties on income taxes as a component of income tax expense. |
Earnings Per Common Share | P. Earnings Per Common Share Not included in the diluted earnings per share calculation for the years ended December 31, 2015 and 2014, because they were anti-dilutive, were shares of common stock issuable upon exercise of outstanding stock options totaling 151,500 and 172,000, respectively, 556,976 shares of common stock issuable upon the exercise of a warrant and 437,500 shares of common stock issuable upon conversion of Bancorp’s Series A preferred stock. Year Ended December 31, 2015 2014 Common shares – weighted average (basic) 10,083,942 10,067,379 Common share equivalents – weighted average 28,711 29,008 Common shares – weighted average (diluted) 10,112,653 10,096,387 |
Advertising Cost | Q. Advertising Cost |
Troubled Debt Restructuring | R. Troubled Debt Restructuring – |
Significant Group Concentrations of Credit Risk | S . Significant Group Concentrations of Credit Risk – Bancorp’s investment portfolio consists principally of obligations of the United States and its agencies. In the opinion of management, there is no concentration of credit risk in its investment portfolio. Bancorp places deposits in correspondent accounts and, on occasion, sells Federal funds to qualified financial institutions. Management believes credit risk associated with correspondent accounts and with Federal funds sold is not significant. Therefore, management believes that these particular practices do not subject Bancorp to unusual credit risk. |
Off-Balance Sheet Financial Instruments | T. Off-Balance Sheet Financial Instruments – |
Recent Accounting Pronouncements | U. Recent Accounting Pronouncements – Under ASU 2014-09, Revenue from Contracts with Customers, establishes a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance. The revenue standard’s core principal is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. The new standard applies to all public entities for annual periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. Bancorp has evaluated the effect of ASU 2014-09 and believes adoption will not have a material effect on the Consolidated Financial Statements. Financial Statements. Under ASU 2016-01, Amendment to the Recognition and Measurement Guidance for Financial Instruments, an entity is required to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in Other Comprehensive Income the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price and; (v) assess a valuation allowance on deferred tax assets related to unrealized losses of Available For Sale debt securities in combination with other deferred tax assets. The Amendment provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes. The Amendment also requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. The new standard takes effect in 2018 for public companies. Early adoption is only permitted for the provision related to instrument-specific credit risk and the fair value disclosure exemption provided to nonpublic entities. Bancorp has evaluated the effect of ASU 2016-01 and believes adoption will not have a material effect on the Consolidated Financial Statements. In February 2016, the FASB issued ASU 2016-02, “Leases.” The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact this update will have on its consolidated financial position and results of operations. |
Subsequent Events | V. Subsequent Events – |
Concentration of Credit Risk | W. Concentration of Credit Risk – . |
Reclassifications | X. Reclassifications – . |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Earnings per share reconciliation | Year Ended December 31, 2015 2014 Common shares – weighted average (basic) 10,083,942 10,067,379 Common share equivalents – weighted average 28,711 29,008 Common shares – weighted average (diluted) 10,112,653 10,096,387 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investment Securities [Abstract] | |
Amortized cost and fair value of investment securities held to maturity | The amortized cost and fair value of investment securities held to maturity are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) December 31, 2015: US Treasury securities $ 21,057 $ 276 $ 8 $ 21,325 US Agency securities 20,011 139 76 20,074 US Government sponsored mortgage-backed securities 35,065 41 195 34,911 Total $ 76,133 $ 456 $ 279 $ 76,310 December 31, 2014: US Treasury securities $ 27,140 $ 465 $ 29 $ 27,576 US Agency securities 17,044 130 57 17,117 US Government sponsored mortgage-backed securities 15,432 48 50 15,430 Total $ 59,616 $ 643 $ 136 $ 60,123 |
Schedule of temporary impairment losses | The following table shows fair value and unrealized losses, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position as of December 31, 2015. Included in the table are four US Treasury securities, Less than 12 months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: (dollars in thousands) US Treasury securities $ 3,992 $ 8 $ - $ - $ 3,992 $ 8 US Agency securities 12,958 76 - - 12,958 76 US Government sponsored mortgage-backed securities 31,091 195 - - 31,091 195 Total $ 48,041 $ 279 $ - $ - $ 48,041 $ 279 December 31, 2014: US Treasury securities $ 6,953 $ 29 $ - $ - $ 6,953 $ 29 US Agency securities 10,024 57 - - 10,024 57 US Government sponsored mortgage-backed securities 13,405 50 - - 13,405 50 Total $ 30,382 $ 136 $ - $ - $ 30,382 $ 136 |
Amortized cost and estimated fair value of debt securities | The amortized cost and estimated fair value of debt securities as of December 31, 2015, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Held to Maturity (dollars in thousands) Amortized Cost Estimated Fair Value Due in one year or less $ 11,060 $ 11,125 Due from one year to five years 28,053 28,211 Due from five years to ten years 1,955 2,063 US Government sponsored mortgage-backed securities 35,065 34,911 $ 76,133 $ 76,310 |
Loans Receivable (Tables)
Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans Receivable [Abstract] | |
Loans receivable | Loans receivable, including unfunded commitments consist of the following: December 31 2015 2014 (dollars in thousands) Residential mortgage, total $ 285,930 $ 309,461 Individually evaluated for impairment 26,087 28,535 Collectively evaluated for impairment 259,843 280,926 Construction, land acquisition and development, total 77,478 84,325 Individually evaluated for impairment 309 917 Collectively evaluated for impairment 77,169 83,408 Land, total 28,677 30,426 Individually evaluated for impairment 1,608 2,039 Collectively evaluated for impairment 27,069 28,387 Lines of credit, total 20,188 19,251 Individually evaluated for impairment 299 454 Collectively evaluated for impairment 19,889 18,797 Commercial real estate, total 174,912 198,539 Individually evaluated for impairment 6,321 6,309 Collectively evaluated for impairment 168,591 192,230 Commercial non-real estate, total 9,296 10,167 Individually evaluated for impairment 122 274 Collectively evaluated for impairment 9,174 9,893 Home equity, total 24,529 28,750 Individually evaluated for impairment 2,285 3,551 Collectively evaluated for impairment 22,244 25,199 Consumer, total 1,224 1,040 Individually evaluated for impairment 10 12 Collectively evaluated for impairment 1,214 1,028 Total Loans 622,234 681,959 Less Unfunded commitments included above (21,101 ) (36,162 ) 601,133 645,797 Individually evaluated for impairment 37,041 42,091 Collectively evaluated for impairment 564,092 603,706 601,133 645,797 Allowance for loan losses (8,758 ) (9,435 ) Deferred loan origination fees and costs, net (2,719 ) (2,480 ) Net Loans $ 589,656 $ 633,882 |
Allowance for loan losses | The following is a summary of the allowance for loan losses for the years ended December 31, 2015 and December 31, 2014 (dollars in thousands): 2015 Total Residential Mortgage Acquisition and Development Land Lines of Credit Commercial Real Estate Commercial Non-Real Estate Home Equity Consumer Beginning Balance $ 9,435 $ 4,664 $ 362 $ 646 $ 12 $ 2,504 $ 280 $ 963 $ 4 Provision (280 ) (651 ) 84 (185 ) (190 ) 368 59 236 (1 ) Charge-offs (1,522 ) (454 ) - - - (80 ) (154 ) (834 ) - Recoveries 1,125 629 - 49 235 - 49 163 - Ending Balance $ 8,758 $ 4,188 $ 446 $ 510 $ 57 $ 2,792 $ 234 $ 528 $ 3 Allowance on loans individually evaluated for impairment $ 2,282 $ 1,838 $ - $ 78 $ 30 $ 328 $ 5 $ 2 $ 1 Allowance on loans collectively evaluated for impairment $ 6,476 $ 2,350 $ 446 $ 432 $ 27 $ 2,464 $ 229 $ 526 $ 2 2014 Total Residential Mortgage Acquisition and Development Land Lines of Credit Commercial Real Estate Commercial Non-Real Estate Home Equity Consumer Beginning Balance $ 11,739 $ 6,291 $ 414 $ 1,346 $ 36 $ 2,512 $ 135 $ 1,003 $ 2 Provision 831 (1,089 ) 11 (1,049 ) 1,285 59 1,396 221 (3 ) Charge-offs (3,994 ) (844 ) (63 ) - (1,324 ) (92 ) (1,410 ) (261 ) - Recoveries 859 306 - 349 15 25 159 - 5 Ending Balance $ 9,435 $ 4,664 $ 362 $ 646 $ 12 $ 2,504 $ 280 $ 963 $ 4 Allowance on loans individually evaluated for impairment $ 2,777 $ 2,113 $ - $ 53 $ - $ 224 $ 15 $ 370 $ 2 Allowance on loans collectively evaluated for impairment $ 6,658 $ 2,551 $ 362 $ 593 $ 12 $ 2,280 $ 265 $ 593 $ 2 |
Impaired loans | The following tables summarize impaired loans at December 31, 2015 and 2014 (dollars in thousands): Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2015 Residential mortgage $ 11,885 $ 1,838 $ 14,202 $ 26,087 $ 26,656 Construction, acquisition and development - - 309 309 309 Land 639 78 969 1,608 1,723 Lines of credit 299 30 - 299 299 Commercial real estate 3,214 328 3,107 6,321 6,469 Commercial non-real estate 103 5 19 122 123 Home equity 16 2 2,269 2,285 3,251 Consumer 10 1 - 10 10 Total Impaired loans $ 16,166 $ 2,282 $ 20,875 $ 37,041 $ 38,840 Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Recorded Investment Related Allowance Recorded Investment Recorded Investment Unpaid Principal Balance December 31, 2014 Residential mortgage $ 14,094 $ 2,113 $ 14,441 $ 28,535 $ 29,487 Construction, acquisition and development - - 917 917 917 Land 355 53 1,684 2,039 2,157 Lines of credit - - 454 454 545 Commercial real estate 2,529 224 3,780 6,309 6,533 Commercial non-real estate 274 15 - 274 274 Home equity 1,472 370 2,079 3,551 4,274 Consumer 12 2 - 12 12 Total Impaired loans $ 18,736 $ 2,777 $ 23,355 $ 42,091 $ 44,199 The following tables summarize average impaired loans for the years ended December 31, 2015 and 2014 (dollars in thousands): Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized December 31, 2015 Residential mortgage $ 12,645 $ 540 $ 13,886 $ 564 $ 26,531 $ 1,104 Construction, acquisition and development 114 1 573 29 687 30 Land 822 21 1,035 72 1,857 93 Lines of credit 25 1 321 18 346 19 Commercial real estate 2,933 134 2,179 166 5,112 300 Commercial non-real estate 213 5 10 13 223 18 Home equity 337 8 2,520 115 2,857 123 Consumer 11 - 414 3 425 3 Total Impaired loans $ 17,100 $ 710 $ 20,938 $ 980 $ 38,038 1,690 Impaired Loans with Specific Allowance Impaired Loans with No Specific Allowance Total Impaired Loans Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized December 31, 2014 Residential mortgage $ 14,222 $ 592 $ 17,342 $ 648 $ 31,564 $ 1,240 Construction, acquisition and development - - 1,831 54 1,831 54 Land 359 13 1,774 89 2,133 102 Lines of credit 599 15 616 41 1,215 56 Commercial real estate 2,556 120 4,515 230 7,071 350 Commercial non-real estate 258 5 406 23 664 28 Home equity 1,460 - 2,174 65 3,634 65 Consumer 13 - - - 13 - Total Impaired loans $ 19,467 $ 745 $ 28,658 $ 1,150 $ 48,125 1,895 |
Classes of the loan portfolio | The following tables present the classes of the loan portfolio, including unfunded commitments summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system as of December 31, 2015 and 2014 (dollars in thousands): Pass Special Mention Substandard Doubtful Total December 31, 2015 Residential mortgage $ 268,583 $ 12,457 $ 4,890 $ - $ 285,930 Construction acquisition and development 77,168 71 239 - 77,478 Land 26,845 1,268 564 - 28,677 Lines of credit 19,521 368 299 - 20,188 Commercial real estate 155,766 13,208 5,938 - 174,912 Commercial non-real estate 9,151 125 20 - 9,296 Home equity 22,018 588 1,923 - 24,529 Consumer 1,224 - - - 1,224 Total loans $ 580,276 $ 28,085 $ 13,873 $ - $ 622,234 Pass Special Mention Substandard Doubtful Total December 31, 2014 Residential mortgage $ 295,589 $ 1,331 $ 12,541 $ - $ 309,461 Construction acquisition and development 82,778 - 1,547 - 84,325 Land 30,285 - 141 - 30,426 Lines of credit 16,112 2,479 660 - 19,251 Commercial real estate 181,686 7,172 9,681 - 198,539 Commercial non-real estate 9,275 637 255 - 10,167 Home equity 25,769 - 2,981 - 28,750 Consumer 985 - 55 - 1,040 Total loans $ 642,479 $ 11,619 $ 27,861 $ - $ 681,959 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of December 31, 2015 and 2014 (dollars in thousands): 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Non-Accrual December 31, 2015 Residential mortgage $ 1,593 $ 65 $ 2,461 $ 4,119 $ 281,811 $ 285,930 $ 3,191 Construction acquisition and development - - - - 77,478 77,478 244 Land 137 - 156 293 28,384 28,677 277 Lines of credit 149 - - 149 20,039 20,188 483 Commercial real estate 253 - 292 545 174,367 174,912 2,681 Commercial non-real estate - - - - 9,296 9,296 - Home equity - - 625 625 23,904 24,529 2,098 Consumer 3 - - 3 1,221 1,224 - Total loans $ 2,135 $ 65 $ 3,534 $ 5,734 $ 616,500 $ 622,234 $ 8,974 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans Non-Accrual December 31, 2014 Residential mortgage $ 2,549 $ 2,333 $ 3,095 $ 7,977 $ 301,484 $ 309,461 $ 6,052 Construction acquisition and development - - - - 84,325 84,325 115 Land - - 6 6 30,420 30,426 847 Lines of credit - - - - 19,251 19,251 388 Commercial real estate 447 45 375 867 197,672 198,539 652 Commercial non-real estate - - - - 10,167 10,167 1,775 Home equity 174 242 2,417 2,833 25,917 28,750 3,016 Consumer - - - - 1,040 1,040 - Total loans $ 3,170 $ 2,620 $ 5,893 $ 11,683 $ 670,276 $ 681,959 $ 12,845 |
Financial instruments whose contract amounts represents credit risk | Unless otherwise noted, the Bank requires collateral or other security to support financial instruments with off-balance-sheet credit risk. Financial Instruments Whose Contract Amounts Represent Credit Risk Contract Amount At December 31, 2015 2014 (dollars in thousands) Standby letters of credit $ 5,937 $ 7,357 Home equity lines of credit 7,467 8,571 Unadvanced construction commitments 21,101 36,162 Mortgage loan commitments 3,233 2,120 Lines of credit 27,189 23,844 Loans sold with limited repurchase provisions 65,107 38,247 |
Newly restructured loans during the period | The following tables present newly restructured loans that occurred during the years ended December 31, 2015 and 2014 by the type of concession (dollars in thousands): Year ended December 31, 2015 Rate Modification Contracts Term Modifications Contracts Combination Modifications Contracts Total Total Contracts Pre-Modification Outstanding Recorded Investment: Residential mortgage $ - - $ 91 1 $ - 1 $ 91 2 Construction, acquisition and development - - - - - - - - Land - - - - 61 1 61 1 Lines of credit - - - - - - - - Commercial real estate - - - - - - - - Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans $ - - $ 91 1 $ 61 2 $ 152 3 Post-Modification Outstanding Recorded Investment: Residential mortgage $ - - $ 91 1 $ 109 1 $ 200 2 Construction, acquisition and development - - - - - - - - Land - - - - 31 1 31 1 Lines of credit - - - - - - - - Commercial real estate - - - - - - - - Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans $ - - $ 91 1 $ 140 2 $ 231 3 Year ended December 31, 2014 Rate Modification Contracts Term Modifications Contracts Combination Modifications Contracts Total Total Contracts Pre-Modification Outstanding Recorded Investment: Residential mortgage - - - - $ 447 2 $ 447 2 Construction, acquisition and development - - - - - - - - Land - - - - - - - - Lines of credit - - - - - - - - Commercial real estate - - - - 541 3 541 3 Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans - - - - $ 988 5 $ 988 5 Post-Modification Outstanding Recorded Investment: Residential mortgage - - - - $ 447 2 $ 447 2 Construction, acquisition and development - - - - - - - - Land - - - - - - - - Lines of credit - - - - - - - - Commercial real estate - - - - 541 3 541 3 Commercial non-real estate - - - - - - - - Home equity - - - - - - - - Consumer - - - - - - - - Total loans - - - - $ 988 5 $ 988 5 |
Methods used to account for interest on TDRs | Interest on TDRs was accounted for under the following methods as of December 31, 2015 and December 31, 2014 (dollars in thousands): Number of Contracts Accrual Status Number of Contracts Non- Accrual Status Total Number of Contracts Total Modifications December 31, 2015 Residential mortgage 55 $ 20,831 3 $ 1,071 58 $ 21,902 Construction, acquisition and development 1 71 - - 1 71 Land 6 907 1 6 7 913 Lines of credit - - - - - - Commercial real estate 4 2,464 2 252 6 2,716 Commercial non-real estate 4 103 - - 4 103 Home equity - - - - - - Consumer 1 10 - - 1 10 Total loans 71 $ 24,386 6 $ 1,329 77 $ 25,715 December 31, 2014 Residential mortgage 57 $ 22,154 5 $ 2,402 62 $ 24,556 Construction, acquisition and development 2 803 - - 2 803 Land 5 982 1 6 6 988 Lines of credit - - - - - - Commercial real estate 6 3,623 1 109 7 3,732 Commercial non-real estate 5 150 2 124 7 274 Home equity - - - - - - Consumer 1 12 - - 1 12 Total loans 76 $ 27,724 9 $ 2,641 85 $ 30,365 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment [Abstract] | |
Summary of premises and equipment by major classification | Premises and equipment are summarized by major classification as follows: December 31, Estimated 2015 2014 Useful Lives (dollars in thousands) Land $ 1,537 $ 1,537 - Building 29,464 29,423 39 Years Leasehold improvements 1,676 1,675 15-27.5 Years Furniture, fixtures and equipment 2,385 2,985 3-10 Years Construction in process 37 - Total at cost 35,099 35,620 Accumulated depreciation (10,809 ) (10,461 ) $ 24,290 $ 25,159 |
Minimum future annual rental payments on leases | The minimum future annual rental payments on leases are as follows: Years Ended December 31, (in thousands) 2016 $ 152 2017 152 2018 134 2019 134 2020 94 |
Minimum future annual rental income from leases | The minimum future annual rental income on leases is as follows: Years Ended December 31, (in thousands) 2016 $ 974 2017 674 2018 455 2019 217 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Foreclosed Real Estate [Abstract] | |
Summary of changes in foreclosed real estate | The following table summarizes the changes in foreclosed real estate for the years ended December 31, 2015 and 2014 (dollars in thousands): Foreclosed real estate at December 31, 2013 $ 8,972 Transferred from impaired loans, net of specific reserves of $3,303 847 Property improvements - Additional write downs - Property sold, including loss on sale (7,872 ) Foreclosed real estate at December 31, 2014 $ 1,947 Transferred from impaired loans, net of specific reserves of $2,282 2,234 Property improvements - Additional write downs (58 ) Property sold, including loss on sale (2,379 ) Foreclosed real estate at December 31, 2015 $ 1,744 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits [Abstract] | |
Schedule of deposits in the bank | Deposits in the Bank as of December 31, 2015 and 2014 consisted of the following: December 31, 2015 December 31, 2014 Category Amount Percent Amount Percent (dollars in thousands) NOW accounts $ 56,096 10.71 % $ 54,827 10.08 % Money market accounts 47,690 9.11 % 39,579 7.28 % Passbooks 111,992 21.38 % 126,062 23.18 % Certificates of deposit 277,778 53.03 % 298,489 54.89 % Non-interest bearing accounts 30,215 5.77 % 24,857 4.57 % Total deposits $ 523,771 100.00 % $ 543,814 100.00 % |
Scheduled of maturities of certificates of deposit | At December 31, 2015 scheduled maturities of certificates of deposit are as follows: Amount (dollars in thousands) One year or less $ 169,298 More than 1 year to 2 years 56,335 More than 2 years to 3 years 21,899 More than 3 years to 4 years 5,936 More than 4 years to 5 years 24,310 $ 277,778 |
Long Term Borrowings (Tables)
Long Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Long Term Borrowings [Abstract] | |
Schedule of maturities of long-term advances | The maturities of these long-term advances at December 31, 2015 are as follows (dollars in thousands): Rate Amount Maturity 1.81% to 1.83% $ 15,000 2016 2.43% to 4.05% 70,000 2017 2.58% to 3.43% 15,000 2018 4.00% 15,000 2019 $ 115,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stock-Based Compensation [Abstract] | |
Information regarding stock option plan | Information regarding Bancorp’s stock option plan as of and for the years ended December 31, 2015 and 2014 is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Life Aggregate Intrinsic Value Options outstanding, December 31, 2013 319,000 $ 4.23 Options granted 50,000 4.67 Options exercised (700 ) 3.37 Options forfeited (40,100 ) 3.93 Options outstanding, December 31, 2014 328,200 4.33 Options granted 111,500 5.85 Options exercised (21,500 ) 4.48 Options forfeited (78,400 ) 4.29 Options outstanding, December 31, 2015 339,800 4.83 3.48 $322,714 Options exercisable, December 31, 2015 104,230 4.17 2.53 $164,859 Option price range at December 31, 2015 $3.37 to $6.33 |
Stock options valuation assumptions | The following weighted average assumptions were used to value options granted in current and prior periods presented. 2015 2014 Expected life of options 5.5 years 5.5 years Risk-free interest rate 1.71 % 1.76 % Expected volatility 61.84 % 66.61 % Expected dividend yield 0.00 % 0.00 % Weighted average fair value of options granted $ 3.16 $ 2.63 |
Summary of nonvested options in stock option plan | The following table summarizes the nonvested options in Bancorp’s stock option plan as of December 31, 2015. Shares Weighted Average Exercise Price Nonvested options outstanding, December 31, 2014 198,505 $ 4.44 Nonvested options granted 111,500 5.85 Nonvested options vested (45,435 ) 4.31 Nonvested options forfeited (29,000 ) 4.55 Nonvested options outstanding, December 31, 2015 235,570 $ 5.13 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Matters [Abstract] | |
Bank's actual capital amounts and ratios | The following table presents the Bank's actual capital amounts and ratios at December 31, 2015 and 2014: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions Amount % Amount % Amount % (dollars in thousands) December 31, 2015 Tangible (1) $ 112,959 14.8 % $ 11,423 1.50 % N/ A N/ A Tier 1 capital (2) 112,959 19.6 % 34,626 6.00 % $ 46,168 8.00 % Common Equity Tier 1 (2) 112,959 19.6 % 25,970 4.50 % $ 37,512 6.50 % Leverage (1) 112,959 14.8 % 30,461 4.00 % 38,076 5.00 % Total (2) 120,193 20.8 % 46,168 8.00 % 57,710 10.00 % December 31, 2014 Tangible (1) $ 106,916 13.8 % $ 11,590 1.50 % N/ A N/ A Tier 1 capital (2) 106,916 19.4 % N/ A N/ A $ 33,081 6.00 % Leverage (1) 106,916 13.8 % 30,906 4.00 % 38,633 5.00 % Total (2) 113,848 20.6 % 44,108 8.00 % 55,135 10.00 % (1) To adjusted total assets. (2) To risk-weighted assets. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes [Abstract] | |
Summary of income tax provision (benefit) | The income tax provision consists of the following for the years ended December 31: 2015 2014 Current Federal $ 83 $ 12 State 7 19 90 31 Deferred Federal 1,486 1,029 State 321 251 1,807 1,280 Valuation allowance (1,807 ) (1,280 ) Total income tax provision $ 90 $ 31 |
Summary of statutory federal income tax rate to income (loss) | The amount computed by applying the statutory federal income tax rate to income before taxes is less than the tax provision for the following reasons for the years ended December 31: 2015 2014 Amount Percent of Pretax Income Amount Percent of Pretax Income Statutory Federal income tax rate $ 1,572 34.0 % $ 1,000 34.0 % State tax net of Federal income tax benefit 216 4.7 % 178 6.1 % Valuation allowance change (1,807 ) (39.1 )% (1,280 ) (43.5 )% Other adjustments 109 2.4 % 133 4.5 % $ 90 2.0 % $ 31 1.1 % |
Summary of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2015 and 2014 are presented below: 2015 2014 (dollars in thousands) Deferred Tax Assets: Allowance for loan losses $ 5,456 $ 5,648 Loan charge-offs - - Reserve on foreclosed real estate 552 565 Reserve for uncollected interest 143 263 Reserve for contingent liability 57 128 Federal net operating loss carryforwards 7,306 8,593 State net operating loss carryforwards 1,457 1,606 Charitable contribution carryforwards 319 319 Other 88 12 Total deferred tax assets 15,378 17,134 Valuation allowance (12,485 ) (14,292 ) Total deferred tax assets, net of valuation allowance 2,893 2,842 Deferred Tax Liabilities: Federal Home Loan Bank stock dividends (84 ) (84 ) Loan origination costs (733 ) (627 ) Accelerated depreciation (1,544 ) (1,599 ) Prepaid expenses (278 ) (265 ) Mortgage servicing rights (252 ) (265 ) Other (2 ) (2 ) Total deferred tax liabilities (2,893 ) (2,842 ) Net deferred tax assets $ - $ - |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related party loan activity | Members of the Board of Directors of Bancorp had loans outstanding totaling $3,186,000 and $3,340,000 at December 31, 2015 and 2014, respectively. The following table shows loan activity for the year ended December 31, 2015: 2015 Beginning balance as of December 31, 2014 $ 3,340,000 Loan funding - Loan pay off/payment 154,000 Ending balance as of December 31, 2015 $ 3,186,000 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Financial assets accounted for at fair value on a nonrecurring basis | The following table sets forth financial assets that were accounted for at fair value on a nonrecurring and recurring basis by level within the fair value hierarchy as of December 31, 2015: December 31, 2015 Fair Value Measurement Using: December 31, 2015 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nonrecurring fair value measurements Impaired loans $ 17,103 $ - $ - $ 17,103 Foreclosed real estate 543 - - 543 Total nonrecurring fair value measurements $ 17,646 $ - $ - $ 17,646 Recurring fair value measurements Mortgage servicing rights $ 623 $ - $ - $ 623 Rate lock commitments 141 - 141 - Mandatory forward contracts 111 - 111 - Total recurring fair value measurements $ 875 $ - $ 252 $ 623 The following table sets forth financial assets that were accounted for at fair value on a nonrecurring and recurring basis by level within the fair value hierarchy as of December, 31, 2014: December 31, 2014 Fair Value Measurement Using: December 31, 2014 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (dollars in thousands) Nonrecurring fair value measurements Impaired loans $ 15,959 $ - $ - $ 15,959 Foreclosed real estate 1,947 - - 1,947 Total nonrecurring fair value measurements $ 17,906 $ - $ - $ 17,906 Recurring fair value measurements Mortgage servicing rights $ 658 $ - $ - $ 658 Rate lock commitments 139 - 139 - Mandatory forward contracts (59 ) - (59 ) - Total recurring fair value measurements $ 738 $ - $ 80 $ 658 |
Assets measured at fair value on a nonrecurring basis utilizing level 3 input | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Bancorp has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2015 Impaired loans $ 13,884 PV of future cash flows (1) Discount Rate -6.00 % $ 3,219 Appraisal of collateral (2) Liquidation expenses (3) -6.00 % Foreclosed real estate $ 543 Appraisal of collateral (2),(4) Appraisal adjustments (3) -6.12% to -7.31% (-6.24%) December 31, 2014 Impaired loans $ 15,589 PV of future cash flows (1) Discount Rate -6.00 % $ 370 Appraisal of collateral (2) Liquidation expenses (3) -6.00 % Foreclosed real estate $ 1,947 Appraisal of collateral (2),(4) Appraisal adjustments (3) -6.51% to -100% (-13.94%) (1) Cash flow which generally include various level 3 inputs which are not identifiable. (2) Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. (3) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. (4) Includes qualitative adjustments by management and estimated liquidation expenses. |
Estimated fair values of financial instruments | The estimated fair values of Bancorp's financial instruments as of December 31, 2015 and December 31, 2014 were as follows: Fair Value Measurement at December 31, 2015 Carrying Amount Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets (dollars in thousands) Cash and cash equivalents $ 43,591 $ 43,591 $ 43,591 $ - $ - Investment securities (HTM) 76,133 76,310 - 76,310 - Loans held for sale 13,203 13,295 - 13,295 - Loans receivable, net 589,656 593,742 - - 593,742 FHLB stock 5,626 5,626 - 5,626 - Accrued interest receivable 2,218 2,218 - 2,218 - Mortgage servicing rights 623 623 - - 623 Rate lock commitments 141 141 - 141 - Mandatory forward contracts 111 111 - 111 - Financial Liabilities Deposits $ 523,771 $ 524,458 - 524,458 - FHLB advances 115,000 110,759 - 110,759 - Subordinated debentures 24,119 24,119 - - 24,119 Accrued interest payable 3,137 3,137 - 3,137 - Off Balance Sheet Commitments $ - $ - $ - $ - $ - Fair Value Measurement at December 31, 2014 Carrying Amount Fair Value Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets (dollars in thousands) Cash and cash equivalents $ 33,335 $ 33,335 33,335 $ - $ - Investment securities (HTM) 59,616 60,123 - 60,123 - Loans held for sale 7,165 7,211 - 7,211 - Loans receivable, net 633,882 636,696 - - 636,696 FHLB stock 5,936 5,936 - 5,936 - Accrued interest receivable 2,297 2,297 - 2,297 - Mortgage servicing rights 658 658 - - 658 Rate lock commitments 139 139 - 139 - Financial Liabilities Deposits $ 543,814 $ 544,751 - 544,751 - FHLB advances 115,000 108,859 - 108,859 - Subordinated debentures 24,119 24,119 - - 24,119 Accrued interest payable 2,136 2,136 - 2,136 - Mandatory forward contracts 59 59 - 59 - Off Balance Sheet Commitments $ - $ - - $ - $ - |
Condensed Financial Informati38
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information (Parent Company Only) [Abstract] | |
Summary of financial position, result of operation and cash flows | Information as to the financial position of Severn Bancorp, Inc. as of December 31, 2015 and 2014 and results of operations and cash flows for each of the years ended December 31, 2015 and 2014 is summarized below. December 31, 2015 2014 (dollars in thousands) Statements of Financial Condition Cash $ 993 $ 1,316 Equity in net assets of subsidiaries: Bank 113,294 107,316 Non-Bank 3,881 3,758 Loans, net of allowance for loan losses - - Other assets 912 920 Total assets $ 119,080 $ 113,310 Subordinated debentures $ 24,119 $ 24,119 Other liabilities 8,505 5,381 Total liabilities 32,624 29,500 Stockholders’ equity 86,456 83,810 Total liabilities and stockholders’ equity $ 119,080 $ 113,310 December 31, 2015 2014 Statements of Operations Interest income $ - $ 34 Interest expense on subordinated debentures 1,322 1,086 Net interest expense (1,322 ) (1,052 ) General and administrative expenses 243 242 Provision for loan losses - (19 ) Loss before income taxes and equity in undistributed net income of subsidiaries (1,565 ) (1,275 ) Income tax expense - (20 ) Equity in undistributed net income of subsidiaries 6,100 4,204 Net income $ 4,535 $ 2,909 For the Years Ended December 31, 2015 2014 (dollars in thousands) Statements of Cash Flows Cash Flows from Operating Activities: Net income $ 4,535 $ 2,909 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed earnings of subsidiaries (6,100 ) (4,204 ) Provision for loan losses - (19 ) Decrease in other assets 8 559 Stock-based compensation expense 120 201 Increase in other liabilities 1,018 298 Cash used in operating activities (419 ) (256 ) Cash Flows from Investing Activities: Net decrease in loans - 350 Cash provided by investing activities - 350 Cash Flows from Financing Activities: Proceeds from sale of foreclosed real estate - 250 Proceeds from exercise of options 96 3 Cash provided by financing activities 96 253 (Decrease) increase in cash and cash equivalents (323 ) 347 Cash and cash equivalents at beginning of year 1,316 969 Cash and cash equivalents at end of year $ 993 $ 1,316 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Classification$ / sharesshares | Dec. 31, 2014USD ($)shares | |
Federal Home Loan Bank Stock [Abstract] | ||
FHLB stock (in dollars per share) | $ / shares | $ 100 | |
Company owned shares | $ 5,626,000 | $ 5,936,000 |
Loan Servicing [Line Items] | ||
Mortgage servicing rights | 623,000 | 658,000 |
Mortgage loans serviced for others | $ 76,460,000 | $ 93,332,000 |
Loans [Abstract] | ||
Number of classifications | Classification | 8 | |
Maximum percentage of lending of appraised value of property | 80.00% | |
Weighted average number of shares outstanding reconciliation [Abstract] | ||
Common shares - weighted average (basic) (in shares) | shares | 10,083,942 | 10,067,379 |
Common share equivalents - weighted average (in shares) | shares | 28,711 | 29,008 |
Common shares - weighted average (diluted) (in shares) | shares | 10,112,653 | 10,096,387 |
Advertising Cost [Abstract] | ||
Advertising expenses | $ 760,000 | $ 687,000 |
Concentration of Credit Risk [Abstract] | ||
Federally insured deposit limit | 250,000 | |
Federal Home Loan Mortgage Corporation [Member] | ||
Loan Servicing [Line Items] | ||
Mortgage loans serviced for others | 20,454,000 | |
Federal National Mortgage Association [Member] | ||
Loan Servicing [Line Items] | ||
Mortgage loans serviced for others | 44,366,000 | |
Other Investors [Member] | ||
Loan Servicing [Line Items] | ||
Mortgage loans serviced for others | $ 11,640,000 | |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive number of shares of common stock outstanding (in shares) | shares | 151,500 | 172,000 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive number of shares of common stock outstanding (in shares) | shares | 556,976 | |
Series A Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive number of shares of common stock outstanding (in shares) | shares | 437,500 |
Investment Securities (Details)
Investment Securities (Details) | Dec. 31, 2015USD ($)Securities | Dec. 31, 2014USD ($)Securities |
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||
Amortized Cost | $ 76,133,000 | $ 59,616,000 |
Gross Unrealized Gains | 456,000 | 643,000 |
Gross Unrealized Losses | 279,000 | 136,000 |
Fair Value | 76,310,000 | 60,123,000 |
Securities pledged as collateral for borrowings | 0 | 4,244,000 |
Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | 48,041,000 | 30,382,000 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 48,041,000 | 30,382,000 |
Unrealized Losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | 279,000 | 136,000 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | 279,000 | 136,000 |
Amortized Cost [Abstract] | ||
Due in one year or less | 11,060,000 | |
Due from one year to five years | 28,053,000 | |
Due from five years to ten years | 1,955,000 | |
US Government sponsored mortgage-backed securities | 35,065,000 | |
Amortized Cost | 76,133,000 | 59,616,000 |
Estimated Fair Value [Abstract] | ||
Due in one year or less | 11,125,000 | |
Due from one year to five years | 28,211,000 | |
Due from five years to ten years | 2,063,000 | |
US Government sponsored mortgage-backed securities | 34,911,000 | |
Fair Value | 76,310,000 | 60,123,000 |
US Treasury Securities [Member] | ||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||
Amortized Cost | 21,057,000 | 27,140,000 |
Gross Unrealized Gains | 276,000 | 465,000 |
Gross Unrealized Losses | 8,000 | 29,000 |
Fair Value | $ 21,325,000 | $ 27,576,000 |
Number of securities in continuous unrealized loss position | Securities | 4 | 7 |
Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | $ 3,992,000 | $ 6,953,000 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 3,992,000 | 6,953,000 |
Unrealized Losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | 8,000 | 29,000 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | 8,000 | 29,000 |
Amortized Cost [Abstract] | ||
Amortized Cost | 21,057,000 | 27,140,000 |
Estimated Fair Value [Abstract] | ||
Fair Value | 21,325,000 | 27,576,000 |
US Agency Securities [Member] | ||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||
Amortized Cost | 20,011,000 | 17,044,000 |
Gross Unrealized Gains | 139,000 | 130,000 |
Gross Unrealized Losses | 76,000 | 57,000 |
Fair Value | $ 20,074,000 | $ 17,117,000 |
Number of securities in continuous unrealized loss position | Securities | 13 | 10 |
Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | $ 12,958,000 | $ 10,024,000 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 12,958,000 | 10,024,000 |
Unrealized Losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | 76,000 | 57,000 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | 76,000 | 57,000 |
Amortized Cost [Abstract] | ||
Amortized Cost | 20,011,000 | 17,044,000 |
Estimated Fair Value [Abstract] | ||
Fair Value | 20,074,000 | 17,117,000 |
US Government Sponsored Mortgage-Backed Securities [Member] | ||
Amortized cost and fair value of investment securities held to maturity [Abstract] | ||
Amortized Cost | 35,065,000 | 15,432,000 |
Gross Unrealized Gains | 41,000 | 48,000 |
Gross Unrealized Losses | 195,000 | 50,000 |
Fair Value | $ 34,911,000 | $ 15,430,000 |
Number of securities in continuous unrealized loss position | Securities | 12 | 5 |
Fair Value [Abstract] | ||
Less than 12 Months, Fair Value | $ 31,091,000 | $ 13,405,000 |
12 Months or More, Fair Value | 0 | 0 |
Total, Fair Value | 31,091,000 | 13,405,000 |
Unrealized Losses [Abstract] | ||
Less than 12 Months, Unrealized Losses | 195,000 | 50,000 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Unrealized Losses | 195,000 | 50,000 |
Amortized Cost [Abstract] | ||
Amortized Cost | 35,065,000 | 15,432,000 |
Estimated Fair Value [Abstract] | ||
Fair Value | $ 34,911,000 | $ 15,430,000 |
Loans Receivable, Loans Receiva
Loans Receivable, Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Loans receivable [Abstract] | ||
Total loans | $ 622,234 | $ 681,959 |
Less [Abstract] | ||
Unfunded commitments included above | (21,101) | (36,162) |
Total loans excluding unfunded commitments | 601,133 | 645,797 |
Individually evaluated for impairment | 37,041 | 42,091 |
Collectively evaluated for impairment | 564,092 | 603,706 |
Total loans excluding unfunded commitments | 601,133 | 645,797 |
Allowance for loan losses | (8,758) | (9,435) |
Deferred loan origination fees and costs, net | (2,719) | (2,480) |
Net Loans | $ 589,656 | 633,882 |
Nonaccrual period of loan considered to be impaired | 90 days | |
Residential Mortgage [Member] | ||
Loans receivable [Abstract] | ||
Total loans | $ 285,930 | 309,461 |
Less [Abstract] | ||
Individually evaluated for impairment | 26,087 | 28,535 |
Collectively evaluated for impairment | $ 259,843 | 280,926 |
Loan to value ratio | 80.00% | |
Construction, Land Acquisition and Development [Member] | ||
Loans receivable [Abstract] | ||
Total loans | $ 77,478 | 84,325 |
Less [Abstract] | ||
Individually evaluated for impairment | 309 | 917 |
Collectively evaluated for impairment | $ 77,169 | 83,408 |
Term of the construction period, maximum | 2 years | |
Construction, Land Acquisition and Development [Member] | Minimum [Member] | ||
Less [Abstract] | ||
Extension period for loans | 12 months | |
Construction, Land Acquisition and Development [Member] | Maximum [Member] | ||
Less [Abstract] | ||
Extension period for loans | 18 months | |
Land [Member] | ||
Loans receivable [Abstract] | ||
Total loans | $ 28,677 | 30,426 |
Less [Abstract] | ||
Individually evaluated for impairment | 1,608 | 2,039 |
Collectively evaluated for impairment | 27,069 | 28,387 |
Lines of Credit [Member] | ||
Loans receivable [Abstract] | ||
Total loans | 20,188 | 19,251 |
Less [Abstract] | ||
Individually evaluated for impairment | 299 | 454 |
Collectively evaluated for impairment | 19,889 | 18,797 |
Commercial Real Estate [Member] | ||
Loans receivable [Abstract] | ||
Total loans | 174,912 | 198,539 |
Less [Abstract] | ||
Individually evaluated for impairment | 6,321 | 6,309 |
Collectively evaluated for impairment | 168,591 | 192,230 |
Commercial Non-Real Estate [Member] | ||
Loans receivable [Abstract] | ||
Total loans | 9,296 | 10,167 |
Less [Abstract] | ||
Individually evaluated for impairment | 122 | 274 |
Collectively evaluated for impairment | 9,174 | 9,893 |
Home Equity [Member] | ||
Loans receivable [Abstract] | ||
Total loans | 24,529 | 28,750 |
Less [Abstract] | ||
Individually evaluated for impairment | 2,285 | 3,551 |
Collectively evaluated for impairment | 22,244 | 25,199 |
Consumer [Member] | ||
Loans receivable [Abstract] | ||
Total loans | 1,224 | 1,040 |
Less [Abstract] | ||
Individually evaluated for impairment | 10 | 12 |
Collectively evaluated for impairment | $ 1,214 | $ 1,028 |
Loans Receivable, Allowance For
Loans Receivable, Allowance For Loan Losses (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | $ 9,435,000 | $ 11,739,000 |
Provision | (280,000) | 831,000 |
Charge-offs | (1,522,000) | (3,994,000) |
Recoveries | 1,125,000 | 859,000 |
Ending Balance | 8,758,000 | 9,435,000 |
Allowance on loans individually evaluated for impairment | 2,282,000 | 2,777,000 |
Allowance on loans collectively evaluated for impairment | 6,476,000 | 6,658,000 |
Decrease in provision of loan losses | 1,111,000 | |
Residential Mortgage [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 4,664,000 | 6,291,000 |
Provision | (651,000) | (1,089,000) |
Charge-offs | (454,000) | (844,000) |
Recoveries | 629,000 | 306,000 |
Ending Balance | 4,188,000 | 4,664,000 |
Allowance on loans individually evaluated for impairment | 1,838,000 | 2,113,000 |
Allowance on loans collectively evaluated for impairment | 2,350,000 | 2,551,000 |
Acquisition and Development [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 362,000 | 414,000 |
Provision | 84,000 | 11,000 |
Charge-offs | 0 | (63,000) |
Recoveries | 0 | 0 |
Ending Balance | 446,000 | 362,000 |
Allowance on loans individually evaluated for impairment | 0 | 0 |
Allowance on loans collectively evaluated for impairment | 446,000 | 362,000 |
Land [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 646,000 | 1,346,000 |
Provision | (185,000) | (1,049,000) |
Charge-offs | 0 | 0 |
Recoveries | 49,000 | 349,000 |
Ending Balance | 510,000 | 646,000 |
Allowance on loans individually evaluated for impairment | 78,000 | 53,000 |
Allowance on loans collectively evaluated for impairment | 432,000 | 593,000 |
Lines of Credit [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 12,000 | 36,000 |
Provision | (190,000) | 1,285,000 |
Charge-offs | 0 | (1,324,000) |
Recoveries | 235,000 | 15,000 |
Ending Balance | 57,000 | 12,000 |
Allowance on loans individually evaluated for impairment | 30,000 | 0 |
Allowance on loans collectively evaluated for impairment | 27,000 | 12,000 |
Commercial Real Estate [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 2,504,000 | 2,512,000 |
Provision | 368,000 | 59,000 |
Charge-offs | (80,000) | (92,000) |
Recoveries | 0 | 25,000 |
Ending Balance | 2,792,000 | 2,504,000 |
Allowance on loans individually evaluated for impairment | 328,000 | 224,000 |
Allowance on loans collectively evaluated for impairment | 2,464,000 | 2,280,000 |
Commercial Non-Real Estate [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 280,000 | 135,000 |
Provision | 59,000 | 1,396,000 |
Charge-offs | (154,000) | (1,410,000) |
Recoveries | 49,000 | 159,000 |
Ending Balance | 234,000 | 280,000 |
Allowance on loans individually evaluated for impairment | 5,000 | 15,000 |
Allowance on loans collectively evaluated for impairment | 229,000 | 265,000 |
Home Equity [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 963,000 | 1,003,000 |
Provision | 236,000 | 221,000 |
Charge-offs | (834,000) | (261,000) |
Recoveries | 163,000 | 0 |
Ending Balance | 528,000 | 963,000 |
Allowance on loans individually evaluated for impairment | 2,000 | 370,000 |
Allowance on loans collectively evaluated for impairment | 526,000 | 593,000 |
Consumer [Member] | ||
Summary of allowance for loan losses [Abstract] | ||
Beginning Balance | 4,000 | 2,000 |
Provision | (1,000) | (3,000) |
Charge-offs | 0 | 0 |
Recoveries | 0 | 5,000 |
Ending Balance | 3,000 | 4,000 |
Allowance on loans individually evaluated for impairment | 1,000 | 2,000 |
Allowance on loans collectively evaluated for impairment | $ 2,000 | $ 2,000 |
Loans Receivable, Non-Performin
Loans Receivable, Non-Performing Assets and Impaired Loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | $ 16,166,000 | $ 18,736,000 |
Impaired Loans with Specific Allowance, Related Allowance | 2,282,000 | 2,777,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 20,875,000 | 23,355,000 |
Total Impaired Loans, Recorded Investment | 37,041,000 | 42,091,000 |
Total Impaired Loans, Unpaid Principal Balance | 38,840,000 | 44,199,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 17,100,000 | 19,467,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 710,000 | 745,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 20,938,000 | 28,658,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 980,000 | 1,150,000 |
Total Impaired Loans, Average Recorded Investment | 38,038,000 | 48,125,000 |
Total Impaired Loans Interest Income Recognized | 1,690,000 | 1,895,000 |
Loans in nonaccrual status included in impaired loans | 28,067,000 | |
Impaired loans | 37,041,000 | 42,091,000 |
Total loans | 622,234,000 | 681,959,000 |
Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 580,276,000 | 642,479,000 |
Residential Mortgage [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 11,885,000 | 14,094,000 |
Impaired Loans with Specific Allowance, Related Allowance | 1,838,000 | 2,113,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 14,202,000 | 14,441,000 |
Total Impaired Loans, Recorded Investment | 26,087,000 | 28,535,000 |
Total Impaired Loans, Unpaid Principal Balance | 26,656,000 | 29,487,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 12,645,000 | 14,222,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 540,000 | 592,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 13,886,000 | 17,342,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 564,000 | 648,000 |
Total Impaired Loans, Average Recorded Investment | 26,531,000 | 31,564,000 |
Total Impaired Loans Interest Income Recognized | 1,104,000 | 1,240,000 |
Impaired loans | 26,087,000 | 28,535,000 |
Total loans | 285,930,000 | 309,461,000 |
Residential Mortgage [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 268,583,000 | 295,589,000 |
Construction Acquisition and Development [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 0 | 0 |
Impaired Loans with Specific Allowance, Related Allowance | 0 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment | 309,000 | 917,000 |
Total Impaired Loans, Recorded Investment | 309,000 | 917,000 |
Total Impaired Loans, Unpaid Principal Balance | 309,000 | 917,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 114,000 | 0 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 1,000 | 0 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 573,000 | 1,831,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 29,000 | 54,000 |
Total Impaired Loans, Average Recorded Investment | 687,000 | 1,831,000 |
Total Impaired Loans Interest Income Recognized | 30,000 | 54,000 |
Impaired loans | 309,000 | 917,000 |
Total loans | 77,478,000 | 84,325,000 |
Construction Acquisition and Development [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 77,168,000 | 82,778,000 |
Land [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 639,000 | 355,000 |
Impaired Loans with Specific Allowance, Related Allowance | 78,000 | 53,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 969,000 | 1,684,000 |
Total Impaired Loans, Recorded Investment | 1,608,000 | 2,039,000 |
Total Impaired Loans, Unpaid Principal Balance | 1,723,000 | 2,157,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 822,000 | 359,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 21,000 | 13,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 1,035,000 | 1,774,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 72,000 | 89,000 |
Total Impaired Loans, Average Recorded Investment | 1,857,000 | 2,133,000 |
Total Impaired Loans Interest Income Recognized | 93,000 | 102,000 |
Impaired loans | 1,608,000 | 2,039,000 |
Total loans | 28,677,000 | 30,426,000 |
Land [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 26,845,000 | 30,285,000 |
Lines of Credit [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 299,000 | 0 |
Impaired Loans with Specific Allowance, Related Allowance | 30,000 | 0 |
Impaired Loans with No Specific Allowance, Recorded Investment | 0 | 454,000 |
Total Impaired Loans, Recorded Investment | 299,000 | 454,000 |
Total Impaired Loans, Unpaid Principal Balance | 299,000 | 545,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 25,000 | 599,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 1,000 | 15,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 321,000 | 616,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 18,000 | 41,000 |
Total Impaired Loans, Average Recorded Investment | 346,000 | 1,215,000 |
Total Impaired Loans Interest Income Recognized | 19,000 | 56,000 |
Impaired loans | 299,000 | 454,000 |
Total loans | 20,188,000 | 19,251,000 |
Lines of Credit [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 19,521,000 | 16,112,000 |
Commercial Real Estate [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 3,214,000 | 2,529,000 |
Impaired Loans with Specific Allowance, Related Allowance | 328,000 | 224,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 3,107,000 | 3,780,000 |
Total Impaired Loans, Recorded Investment | 6,321,000 | 6,309,000 |
Total Impaired Loans, Unpaid Principal Balance | 6,469,000 | 6,533,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 2,933,000 | 2,556,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 134,000 | 120,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 2,179,000 | 4,515,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 166,000 | 230,000 |
Total Impaired Loans, Average Recorded Investment | 5,112,000 | 7,071,000 |
Total Impaired Loans Interest Income Recognized | 300,000 | 350,000 |
Impaired loans | 6,321,000 | 6,309,000 |
Total loans | 174,912,000 | 198,539,000 |
Commercial Real Estate [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 155,766,000 | 181,686,000 |
Commercial Non-Real Estate [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 103,000 | 274,000 |
Impaired Loans with Specific Allowance, Related Allowance | 5,000 | 15,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 19,000 | 0 |
Total Impaired Loans, Recorded Investment | 122,000 | 274,000 |
Total Impaired Loans, Unpaid Principal Balance | 123,000 | 274,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 213,000 | 258,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 5,000 | 5,000 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 10,000 | 406,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 13,000 | 23,000 |
Total Impaired Loans, Average Recorded Investment | 223,000 | 664,000 |
Total Impaired Loans Interest Income Recognized | 18,000 | 28,000 |
Impaired loans | 122,000 | 274,000 |
Total loans | 9,296,000 | 10,167,000 |
Commercial Non-Real Estate [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 9,151,000 | 9,275,000 |
Home Equity [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 16,000 | 1,472,000 |
Impaired Loans with Specific Allowance, Related Allowance | 2,000 | 370,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 2,269,000 | 2,079,000 |
Total Impaired Loans, Recorded Investment | 2,285,000 | 3,551,000 |
Total Impaired Loans, Unpaid Principal Balance | 3,251,000 | 4,274,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 337,000 | 1,460,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 8,000 | 0 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 2,520,000 | 2,174,000 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 115,000 | 65,000 |
Total Impaired Loans, Average Recorded Investment | 2,857,000 | 3,634,000 |
Total Impaired Loans Interest Income Recognized | 123,000 | 65,000 |
Impaired loans | 2,285,000 | 3,551,000 |
Total loans | 24,529,000 | 28,750,000 |
Home Equity [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 22,018,000 | 25,769,000 |
Consumer [Member] | ||
Impaired loans [Abstract] | ||
Impaired Loans with Specific Allowance, Recorded Investment | 10,000 | 12,000 |
Impaired Loans with Specific Allowance, Related Allowance | 1,000 | 2,000 |
Impaired Loans with No Specific Allowance, Recorded Investment | 0 | 0 |
Total Impaired Loans, Recorded Investment | 10,000 | 12,000 |
Total Impaired Loans, Unpaid Principal Balance | 10,000 | 12,000 |
Impaired Loans with Specific Allowance, Average Recorded Investment | 11,000 | 13,000 |
Impaired Loans with Specific Allowance, Interest Income Recognized | 0 | 0 |
Impaired Loans with No Specific Allowance, Average Recorded Investment | 414,000 | 0 |
Impaired Loans with No Related Allowance, Interest Income Recognized | 3,000 | 0 |
Total Impaired Loans, Average Recorded Investment | 425,000 | 13,000 |
Total Impaired Loans Interest Income Recognized | 3,000 | 0 |
Impaired loans | 10,000 | 12,000 |
Total loans | 1,224,000 | 1,040,000 |
Consumer [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 1,224,000 | 985,000 |
Residential Real Estate [Member] | ||
Impaired loans [Abstract] | ||
Total Impaired Loans, Recorded Investment | 26,087,000 | |
Impaired loans | 26,087,000 | |
Unfunded [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 21,101,000 | 36,162,000 |
Unfunded [Member] | Pass [Member] | ||
Impaired loans [Abstract] | ||
Total loans | 21,101,000 | $ 36,162,000 |
Consumer Residential Real Estate [Member] | ||
Impaired loans [Abstract] | ||
Total Impaired Loans, Recorded Investment | 20,378,000 | |
Impaired loans | 20,378,000 | |
Builders Residential Real Estate [Member] | ||
Impaired loans [Abstract] | ||
Total Impaired Loans, Recorded Investment | 5,709,000 | |
Impaired loans | $ 5,709,000 |
Loans Receivable, Classes of Lo
Loans Receivable, Classes of Loan Portfolio within the Internal Risk Grading System (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 622,234 | $ 681,959 |
Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 285,930 | 309,461 |
Construction Acquisition and Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 77,478 | 84,325 |
Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 28,677 | 30,426 |
Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,188 | 19,251 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 174,912 | 198,539 |
Commercial Non-Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,296 | 10,167 |
Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,529 | 28,750 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,224 | 1,040 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 580,276 | 642,479 |
Pass [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 268,583 | 295,589 |
Pass [Member] | Construction Acquisition and Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 77,168 | 82,778 |
Pass [Member] | Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 26,845 | 30,285 |
Pass [Member] | Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,521 | 16,112 |
Pass [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 155,766 | 181,686 |
Pass [Member] | Commercial Non-Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,151 | 9,275 |
Pass [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 22,018 | 25,769 |
Pass [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,224 | 985 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 28,085 | 11,619 |
Special Mention [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 12,457 | 1,331 |
Special Mention [Member] | Construction Acquisition and Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 71 | 0 |
Special Mention [Member] | Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,268 | 0 |
Special Mention [Member] | Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 368 | 2,479 |
Special Mention [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,208 | 7,172 |
Special Mention [Member] | Commercial Non-Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 125 | 637 |
Special Mention [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 588 | 0 |
Special Mention [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,873 | 27,861 |
Substandard [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 4,890 | 12,541 |
Substandard [Member] | Construction Acquisition and Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 239 | 1,547 |
Substandard [Member] | Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 564 | 141 |
Substandard [Member] | Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 299 | 660 |
Substandard [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,938 | 9,681 |
Substandard [Member] | Commercial Non-Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20 | 255 |
Substandard [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,923 | 2,981 |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 55 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Residential Mortgage [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Construction Acquisition and Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Commercial Non-Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 0 | 0 |
Doubtful [Member] | Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 0 | $ 0 |
Loans Receivable, Classes of 45
Loans Receivable, Classes of Loan Portfolio by Aging Categories of Performing and Nonaccrual Loans (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | $ 5,734,000 | $ 11,683,000 |
Current | 616,500,000 | 670,276,000 |
Total loans | 622,234,000 | 681,959,000 |
Non-Accrual | 8,974,000 | 12,845,000 |
30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 2,135,000 | 3,170,000 |
60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 65,000 | 2,620,000 |
90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 3,534,000 | 5,893,000 |
Residential Mortgage [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 4,119,000 | 7,977,000 |
Current | 281,811,000 | 301,484,000 |
Total loans | 285,930,000 | 309,461,000 |
Non-Accrual | 3,191,000 | 6,052,000 |
Residential Mortgage [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 1,593,000 | 2,549,000 |
Residential Mortgage [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 65,000 | 2,333,000 |
Residential Mortgage [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 2,461,000 | 3,095,000 |
Construction Acquisition and Development [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 77,478,000 | 84,325,000 |
Total loans | 77,478,000 | 84,325,000 |
Non-Accrual | 244,000 | 115,000 |
Construction Acquisition and Development [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Construction Acquisition and Development [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Construction Acquisition and Development [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Land [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 293,000 | 6,000 |
Current | 28,384,000 | 30,420,000 |
Total loans | 28,677,000 | 30,426,000 |
Non-Accrual | 277,000 | 847,000 |
Land [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 137,000 | 0 |
Land [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Land [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 156,000 | 6,000 |
Lines of Credit [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 149,000 | 0 |
Current | 20,039,000 | 19,251,000 |
Total loans | 20,188,000 | 19,251,000 |
Non-Accrual | 483,000 | 388,000 |
Lines of Credit [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 149,000 | 0 |
Lines of Credit [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Lines of Credit [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Real Estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 545,000 | 867,000 |
Current | 174,367,000 | 197,672,000 |
Total loans | 174,912,000 | 198,539,000 |
Non-Accrual | 2,681,000 | 652,000 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 253,000 | 447,000 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 45,000 |
Commercial Real Estate [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 292,000 | 375,000 |
Commercial Non-Real Estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Current | 9,296,000 | 10,167,000 |
Total loans | 9,296,000 | 10,167,000 |
Non-Accrual | 0 | 1,775,000 |
Commercial Non-Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Non-Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Commercial Non-Real Estate [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Home Equity [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 625,000 | 2,833,000 |
Current | 23,904,000 | 25,917,000 |
Total loans | 24,529,000 | 28,750,000 |
Non-Accrual | 2,098,000 | 3,016,000 |
Home Equity [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 174,000 |
Home Equity [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 242,000 |
Home Equity [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 625,000 | 2,417,000 |
Consumer [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 3,000 | 0 |
Current | 1,221,000 | 1,040,000 |
Total loans | 1,224,000 | 1,040,000 |
Non-Accrual | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 3,000 | 0 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Consumer [Member] | 90+ Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total Past Due | 0 | 0 |
Unfunded [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans [Abstract] | ||
Total loans | $ 21,101,000 | $ 36,162,000 |
Loans Receivable, Financial Ins
Loans Receivable, Financial Instruments Whose Contract Amounts Represent Credit Risk (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Commitment | Dec. 31, 2014USD ($) | |
Standby Letters of Credit [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | $ 5,937,000 | $ 7,357,000 |
Current liability for guarantees | $ 115,000 | 314,000 |
Letters of credit expiry period | 12 months | |
Home Equity Lines of Credit [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | $ 7,467,000 | 8,571,000 |
Loan expiry period | 10 years | |
Unadvanced Construction Commitments [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | $ 21,101,000 | 36,162,000 |
Mortgage Loan Commitments [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | 3,233,000 | 2,120,000 |
Fixed rate loan commitments | $ 3,233,000 | $ 2,120,000 |
Fixed interest rate, minimum | 3.75% | 3.75% |
Fixed interest rate, maximum | 8.00% | 4.50% |
Number of mortgage loan commitments at floating rate of interest | Commitment | 2 | |
Number of mortgage loan commitments at fixed interest rate | Commitment | 7 | |
Floating rate loan commitments | $ 0 | |
Lines of Credit [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | 27,189,000 | $ 23,844,000 |
Loans Sold with Limited Repurchase Provisions [Member] | ||
Financial instruments whose contract amount represents credit risk [Abstract] | ||
Off-balance sheet credit risk | 65,107,000 | 38,247,000 |
Loans receivable held-for-sale, amount | $ 163,150,000 | $ 90,560,000 |
Period of delinquency under repurchase agreement, minimum | 120 days | 120 days |
Period of delinquency under repurchase agreement, maximum | 180 days | 180 days |
Loans Receivable, Troubled Debt
Loans Receivable, Troubled Debt Restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | |
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 3 | 5 |
Pre-Modification Outstanding Recorded Investment | $ | $ 152 | $ 988 |
Post-Modifications contracts | Contract | 3 | 5 |
Post-Modification Outstanding Recorded Investment | $ | $ 231 | $ 988 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 71 | 76 |
Accrual Status | $ | $ 24,386 | $ 27,724 |
Number of Contracts | Contract | 6 | 9 |
Non-Accrual Status | $ | $ 1,329 | $ 2,641 |
Total Number of Contracts | Contract | 77 | 85 |
Total Modifications | $ | $ 25,715 | $ 30,365 |
Residential Mortgage [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ | $ 91 | $ 447 |
Post-Modifications contracts | Contract | 2 | 2 |
Post-Modification Outstanding Recorded Investment | $ | $ 200 | $ 447 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 55 | 57 |
Accrual Status | $ | $ 20,831 | $ 22,154 |
Number of Contracts | Contract | 3 | 5 |
Non-Accrual Status | $ | $ 1,071 | $ 2,402 |
Total Number of Contracts | Contract | 58 | 62 |
Total Modifications | $ | $ 21,902 | $ 24,556 |
Construction Acquisition and Development [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 1 | 2 |
Accrual Status | $ | $ 71 | $ 803 |
Number of Contracts | Contract | 0 | 0 |
Non-Accrual Status | $ | $ 0 | $ 0 |
Total Number of Contracts | Contract | 1 | 2 |
Total Modifications | $ | $ 71 | $ 803 |
Land [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 61 | $ 0 |
Post-Modifications contracts | Contract | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 31 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 6 | 5 |
Accrual Status | $ | $ 907 | $ 982 |
Number of Contracts | Contract | 1 | 1 |
Non-Accrual Status | $ | $ 6 | $ 6 |
Total Number of Contracts | Contract | 7 | 6 |
Total Modifications | $ | $ 913 | $ 988 |
Lines of Credit [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 0 | 0 |
Accrual Status | $ | $ 0 | $ 0 |
Number of Contracts | Contract | 0 | 0 |
Non-Accrual Status | $ | $ 0 | $ 0 |
Total Number of Contracts | Contract | 0 | 0 |
Total Modifications | $ | $ 0 | $ 0 |
Commercial Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 3 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 541 |
Post-Modifications contracts | Contract | 0 | 3 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 541 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 4 | 6 |
Accrual Status | $ | $ 2,464 | $ 3,623 |
Number of Contracts | Contract | 2 | 1 |
Non-Accrual Status | $ | $ 252 | $ 109 |
Total Number of Contracts | Contract | 6 | 7 |
Total Modifications | $ | $ 2,716 | $ 3,732 |
Commercial Non-Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 4 | 5 |
Accrual Status | $ | $ 103 | $ 150 |
Number of Contracts | Contract | 0 | 2 |
Non-Accrual Status | $ | $ 0 | $ 124 |
Total Number of Contracts | Contract | 4 | 7 |
Total Modifications | $ | $ 103 | $ 274 |
Home Equity [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 0 | 0 |
Accrual Status | $ | $ 0 | $ 0 |
Number of Contracts | Contract | 0 | 0 |
Non-Accrual Status | $ | $ 0 | $ 0 |
Total Number of Contracts | Contract | 0 | 0 |
Total Modifications | $ | $ 0 | $ 0 |
Consumer [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Method used to account for interest on TDRs [Abstract] | ||
Number of Contracts | Contract | 1 | 1 |
Accrual Status | $ | $ 10 | $ 12 |
Number of Contracts | Contract | 0 | 0 |
Non-Accrual Status | $ | $ 0 | $ 0 |
Total Number of Contracts | Contract | 1 | 1 |
Total Modifications | $ | $ 10 | $ 12 |
Rate Modification [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Residential Mortgage [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Construction Acquisition and Development [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Land [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Lines of Credit [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Commercial Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Commercial Non-Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Home Equity [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Rate Modification [Member] | Consumer [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 91 | $ 0 |
Post-Modifications contracts | Contract | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 91 | $ 0 |
Term Modifications [Member] | Residential Mortgage [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 91 | $ 0 |
Post-Modifications contracts | Contract | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 91 | $ 0 |
Term Modifications [Member] | Construction Acquisition and Development [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Land [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Lines of Credit [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Commercial Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Commercial Non-Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Home Equity [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Term Modifications [Member] | Consumer [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Combination Modifications [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 2 | 5 |
Pre-Modification Outstanding Recorded Investment | $ | $ 61 | $ 988 |
Post-Modifications contracts | Contract | 2 | 5 |
Post-Modification Outstanding Recorded Investment | $ | $ 140 | $ 988 |
Combination Modifications [Member] | Residential Mortgage [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 1 | 2 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 447 |
Post-Modifications contracts | Contract | 1 | 2 |
Post-Modification Outstanding Recorded Investment | $ | $ 109 | $ 447 |
Combination Modifications [Member] | Construction Acquisition and Development [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Combination Modifications [Member] | Land [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 61 | $ 0 |
Post-Modifications contracts | Contract | 1 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 31 | $ 0 |
Combination Modifications [Member] | Lines of Credit [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Combination Modifications [Member] | Commercial Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 3 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 541 |
Post-Modifications contracts | Contract | 0 | 3 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 541 |
Combination Modifications [Member] | Commercial Non-Real Estate [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Combination Modifications [Member] | Home Equity [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Combination Modifications [Member] | Consumer [Member] | ||
Newly restructured loans during the period [Abstract] | ||
Pre-Modifications contracts | Contract | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Post-Modifications contracts | Contract | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $ | $ 0 | $ 0 |
Premises and Equipment (Details
Premises and Equipment (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)LocationBranch | Dec. 31, 2014USD ($) | |
Premises and equipment [Abstract] | ||
Total at cost | $ 35,099,000 | $ 35,620,000 |
Accumulated depreciation | (10,809,000) | (10,461,000) |
Premises and equipment, net | 24,290,000 | 25,159,000 |
Depreciation expense | $ 1,137,000 | 1,110,000 |
Period for which lease term renewed | 5 years | |
Minimum future rental payments [Abstract] | ||
2,016 | $ 152,000 | |
2,017 | 152,000 | |
2,018 | 134,000 | |
2,019 | 134,000 | |
2,020 | 94,000 | |
Minimum future rental income [Abstract] | ||
2,016 | 974,000 | |
2,017 | 674,000 | |
2,018 | 455,000 | |
2,019 | 217,000 | |
Rent expense | 131,000 | 121,000 |
Total gross rental income | $ 970,000 | 956,000 |
Anne Arundel County, Maryland [Member] | ||
Premises and equipment [Abstract] | ||
Number of retail branch locations | Location | 4 | |
Number of retail branch owned | Branch | 3 | |
Lease expiration date | Jul. 31, 2020 | |
Annapolis, Maryland [Member] | ||
Premises and equipment [Abstract] | ||
Lease expiration date | Jan. 31, 2020 | |
Land [Member] | ||
Premises and equipment [Abstract] | ||
Total at cost | $ 1,537,000 | 1,537,000 |
Estimated Useful Lives | 0 years | |
Building [Member] | ||
Premises and equipment [Abstract] | ||
Total at cost | $ 29,464,000 | 29,423,000 |
Estimated Useful Lives | 39 years | |
Leasehold Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Total at cost | $ 1,676,000 | 1,675,000 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Total at cost | 2,385,000 | 2,985,000 |
Construction in Process [Member] | ||
Premises and equipment [Abstract] | ||
Total at cost | $ 37,000 | $ 0 |
Minimum [Member] | Leasehold Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Estimated Useful Lives | 15 years | |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Estimated Useful Lives | 3 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Premises and equipment [Abstract] | ||
Estimated Useful Lives | 27 years 6 months | |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment [Abstract] | ||
Estimated Useful Lives | 10 years |
Foreclosed Real Estate (Details
Foreclosed Real Estate (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)PropertyLandParcel | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)Property | |
Real Estate Properties [Line Items] | |||
Carrying value of foreclosed real estate properties | $ 1,947,000 | $ 1,947,000 | $ 1,744,000 |
Number of properties sold | Property | 12 | ||
Transfer from loans to foreclosed real estate, write-downs | 1,023,000 | ||
Net gain on sale of foreclosed real estate | 49,000 | 302,000 | |
Expense on sale of property | 1,526,000 | ||
Foreclosed real estate [Abstract] | |||
Foreclosed real estate at beginning balance | 1,947,000 | 8,972,000 | |
Transferred from impaired loans | 2,234,000 | 847,000 | |
Property improvements | 0 | 0 | |
Additional write downs | (58,000) | 0 | |
Property sold, including loss on sale | (2,379,000) | (7,872,000) | |
Foreclosed real estate at ending balance | 1,744,000 | 1,947,000 | |
Specific reserves on transferred from impaired loans | 2,282,000 | 3,303,000 | |
Foreclosed real estate expenses, net | 230,000 | 10,000 | |
Foreclosed real estate operating expenses | $ 221,000 | $ 312,000 | |
Residential Properties [Member] | |||
Real Estate Properties [Line Items] | |||
Number of foreclosed residential properties | Property | 7 | ||
Carrying value of foreclosed real estate properties | $ 1,419,000 | $ 1,419,000 | |
Foreclosed real estate [Abstract] | |||
Foreclosed real estate at ending balance | $ 1,419,000 | ||
Consumer mortgage loans secured by residential real estate properties in formal foreclosure proceedings | 1,487,000 | ||
Land Parcel [Member] | |||
Real Estate Properties [Line Items] | |||
Number of foreclosed land parcels | LandParcel | 3 | ||
Carrying value of foreclosed real estate properties | $ 325,000 | $ 325,000 | |
Foreclosed real estate [Abstract] | |||
Foreclosed real estate at ending balance | $ 325,000 |
Investment in Federal Home Lo50
Investment in Federal Home Loan Bank of Atlanta Stock (Details) | Dec. 31, 2015 |
Investment in Federal Home Loan Bank of Atlanta Stock [Abstract] | |
Minimum percentage of the unpaid principal balances | 1.00% |
Ratio of outstanding advances from FHLB | 5.00% |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deposits by category [Abstract] | ||
NOW accounts | $ 56,096,000 | $ 54,827,000 |
Money market accounts | 47,690,000 | 39,579,000 |
Passbooks | 111,992,000 | 126,062,000 |
Certificates of deposit | 277,778,000 | 298,489,000 |
Non-interest bearing accounts | 30,215,000 | 24,857,000 |
Total deposits | $ 523,771,000 | $ 543,814,000 |
NOW accounts | 10.71% | 10.08% |
Money market accounts | 9.11% | 7.28% |
Passbooks | 21.38% | 23.18% |
Certificates of deposit | 53.03% | 54.89% |
Non-interest bearing accounts | 5.77% | 4.57% |
Total deposits | 100.00% | 100.00% |
Scheduled maturities of certificates of deposit [Abstract] | ||
One year or less | $ 169,298,000 | |
More than 1 year to 2 years | 56,335,000 | |
More than 2 years to 3 years | 21,899,000 | |
More than 3 years to 4 years | 5,936,000 | |
More than 4 years to 5 years | 24,310,000 | |
Time Deposits | 277,778,000 | $ 298,489,000 |
Jumbo certificates of deposit with a minimum denomination of $250,000 | $ 25,713,000 | $ 30,702,000 |
Long Term Borrowings (Details)
Long Term Borrowings (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Long-term advances outstanding | $ 115,000,000 | $ 115,000,000 |
FHLB of Atlanta [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Credit availability under the FHLB | $ 192,672,000 | 153,070,000 |
Maximum collateral pledge percentage total assets able to borrow | 25.00% | |
Short-term borrowings with the FHLB | $ 0 | 0 |
Long-term advances outstanding | $ 115,000,000 | $ 115,000,000 |
Interest rate on maturities of long-term advances [Abstract] | ||
2019 Maturity, Rate | 4.00% | |
Maturities of long-term advances [Abstract] | ||
2016 Maturity, Amount | $ 15,000,000 | |
2017 Maturity, Amount | 70,000,000 | |
2018 Maturity, Amount | 15,000,000 | |
2019 Maturity, Amount | 15,000,000 | |
Long-term advances Maturity, Amount | 115,000,000 | |
Loans pledged as collateral | $ 274,783,000 | |
FHLB of Atlanta [Member] | Minimum [Member] | ||
Interest rate on maturities of long-term advances [Abstract] | ||
2016 Maturity, Rate | 1.81% | |
2017 Maturity, Rate | 2.43% | |
2018 Maturity, Rate | 2.58% | |
FHLB of Atlanta [Member] | Maximum [Member] | ||
Interest rate on maturities of long-term advances [Abstract] | ||
2016 Maturity, Rate | 1.83% | |
2017 Maturity, Rate | 4.05% | |
2018 Maturity, Rate | 3.43% |
Subordinated Debentures (Detail
Subordinated Debentures (Details) | Nov. 15, 2008USD ($)Offering$ / shares | Dec. 31, 2015USD ($)Quarter | Dec. 31, 2008USD ($)shares |
Debt Instrument [Line Items] | |||
Number of consecutive quarterly periods | Quarter | 20 | ||
Number of private placement offering | Offering | 70 | ||
Private placement offering price (per unit) | $ / shares | $ 100,000 | ||
Gross proceeds of private placement | $ 7,000,000 | ||
Number of shares consisted in each unit (in shares) | shares | 6,250 | ||
Annual interest rate on subordinated notes | 8.00% | ||
Subordinated Note, original principal amount | $ 50,000 | ||
Debt issuance costs | $ 245,000 | ||
Finance cost amortization period | 10 years | ||
Interest on unpaid interest | $ 1,863,000 | ||
Junior Subordinated Debt Securities [Member] | |||
Debt Instrument [Line Items] | |||
Junior subordinated debt securities principal amount | $ 20,619,000 | ||
Floating rate of interest | 3-month LIBOR (0.32% December 31, 2015) | ||
Debt instrument base rate | 0.32% | ||
Basis points | 2.00% | ||
Maturity date | Jan. 7, 2035 | ||
Proceeds from issuance of debentures | $ 17,000,000 | ||
Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Maturity date | Dec. 31, 2018 | ||
Severn Capital Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Common equity owned | 100.00% |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
401 (k) Retirement Savings Plan [Abstract] | ||
Employee's contribution | 50.00% | |
Maximum percentage of the employee's annual salary | 6.00% | |
Bank's contribution to employee benefit plans | $ 217,000 | $ 198,000 |
Employee Stock Ownership Plan ("ESOP") [Abstract] | ||
Recognized ESOP expense | $ 140,000 | $ 140,000 |
Unallocated shares (in shares) | 10,000 | 25,000 |
Fair value of the unallocated shares | $ 58,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 25, 2013shares | Nov. 21, 2008USD ($)$ / sharesshares | Nov. 15, 2008USD ($)shares | Dec. 31, 2015USD ($)QuarterDirector$ / sharesshares | Dec. 31, 2014$ / sharesshares |
Class of Stock [Line Items] | |||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
2035 Debentures [Member] | |||||
Class of Stock [Line Items] | |||||
Number of quarters during which interest payment has been deferred | Quarter | 15 | ||||
Cumulative amount of interest in arrears not paid, including interest on unpaid interest | $ | $ 1,863,000 | ||||
Series A 8.0% Non-Cumulative Convertible Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | shares | 437,500 | 437,500 | 437,500 | ||
Preferred stock dividend rate percentage | 8.00% | ||||
Preferred stock liquidation preference (in dollars per share) | $ 8 | ||||
Number of shares issued upon conversion (in shares) | shares | 1 | ||||
Share conversion price (in dollars per share) | $ 8 | ||||
Stock issuance cost | $ | $ 247,000 | ||||
Series B Fixed Rate Cumulative Perpetual Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Preferred stock, shares issued (in shares) | shares | 23,393 | 23,393 | 23,393 | ||
Preferred stock liquidation preference (in dollars per share) | $ 1,000 | ||||
Stock issuance cost | $ | $ 45,000 | ||||
U.S. Treasury sales of shares to outside investors (in shares) | shares | 23,393 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Common stock purchase rights with issue of a warrant (in shares) | shares | 556,976 | 556,976 | |||
Aggregate purchase price, Preferred Stock and Warrants | $ | $ 23,393,000 | ||||
Common stock, par value (in dollars per share) | $ 0.01 | ||||
Compounding dividends percentage for after first five years | 9.00% | ||||
Number of directors authorized | Director | 2 | ||||
Amount of preferred dividends in arrears | $ | $ 7,033,000 | ||||
Term of warrant | 10 years | ||||
Exercise price of warrants (in dollars per share) | $ 6.30 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of shares authorized under the plan (in shares) | 500,000 | |
Number of shares available under the plan (in shares) | 260,501 | |
Stock-based compensation expense | $ 120,000 | $ 201,000 |
Shares [Roll Forward] | ||
Options outstanding, Beginning period (in shares) | 328,200 | 319,000 |
Options granted (in shares) | 111,500 | 50,000 |
Options exercised (in shares) | (21,500) | (700) |
Options forfeited (in shares) | (78,400) | (40,100) |
Options outstanding, Ending period (in shares) | 339,800 | 328,200 |
Options exercisable, Ending period (in shares) | 104,230 | |
Option price range lower range limit (in dollars per share) | $ 3.37 | |
Option price range upper range limit (in dollars per share) | 6.33 | |
Weighted Average Exercise Price [Roll Forward] | ||
Options outstanding, Beginning period (in dollars per share) | 4.33 | $ 4.23 |
Options granted (in dollars per share) | 5.85 | 4.67 |
Options exercised (in dollars per share) | 4.48 | 3.37 |
Options forfeited (in dollars per share) | 4.29 | 3.93 |
Options outstanding, Ending period (in dollars per share) | 4.83 | $ 4.33 |
Options exercisable, Ending period (in dollars per share) | $ 4.17 | |
Weighted Average Remaining Life [Abstract] | ||
Options outstanding, December 31, 2015 | 3 years 5 months 23 days | |
Options exercisable, December 31, 2015 | 2 years 6 months 11 days | |
Aggregate Intrinsic Value [Abstract] | ||
Options outstanding, December 31, 2015 | $ 322,714 | |
Options exercisable, December 31, 2015 | $ 164,859 | |
Fair value assumptions for options granted [Abstract] | ||
Expected life of options | 5 years 6 months | 5 years 6 months |
Risk-free interest rate | 1.71% | 1.76% |
Expected volatility | 61.84% | 66.61% |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 3.16 | $ 2.63 |
Nonvested Options, Shares [Roll Forward] | ||
Nonvested options outstanding, Beginning balance (in shares) | 198,505 | |
Nonvested options granted (in shares) | 111,500 | |
Nonvested options vested (in shares) | (45,435) | |
Nonvested options forfeited (in shares) | (29,000) | |
Nonvested options outstanding, Ending balance (in shares) | 235,570 | 198,505 |
Nonvested Options, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Nonvested options outstanding (in dollars per share) | $ 4.44 | |
Nonvested options granted (in dollars per share) | 5.85 | |
Nonvested options vested (in dollars per share) | 4.31 | |
Nonvested options forfeited (in dollars per share) | 4.55 | |
Nonvested options outstanding (in dollars per share) | $ 5.13 | $ 4.44 |
Unrecognized stock-based compensation expense | $ 690,000 | |
Unrecognized stock-based compensation expected to be recognized period | 58 months | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options expiry period | 10 years | |
Stock options vesting period | 5 years |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 23, 2013 | |||
Tangible [Abstract] | ||||||
Tangible Actual, Amount | [1] | $ 112,959 | $ 106,916 | |||
Tangible Actual, % | [1] | 14.80% | 13.80% | |||
Tangible For Capital Adequacy Purposes, Amount | [1] | $ 11,423 | $ 11,590 | |||
Tangible For Capital Adequacy Purposes, % | [1] | 1.50% | 1.50% | |||
Tier I capital [Abstract] | ||||||
Tier I capital Actual, Amount | [2] | $ 112,959 | $ 106,916 | |||
Tier I capital Actual, % | 19.60% | [2] | 19.40% | [2] | 10.00% | |
Tier I capital for Capital Adequacy Purposes, Amount | [2] | $ 34,626 | ||||
Tier I capital for Capital Adequacy Purposes, % | [2] | 6.00% | ||||
Tier I capital To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [2] | $ 46,168 | $ 33,081 | |||
Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, % | [2] | 8.00% | 6.00% | |||
Common Equity Tier 1 [Abstract] | ||||||
Common Equity Tier I Capital Actual, Amount | [2] | $ 112,959 | ||||
Common Equity Tier I Capital Actual, % | [2] | 19.60% | ||||
Common Equity Tier I Capital for Capital Adequacy Purposes, Amount | [2] | $ 25,970 | ||||
Common Equity Tier I Capital for Capital Adequacy Purposes, % | [2] | 4.50% | ||||
Common Equity Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, Amount | [2] | $ 37,512 | ||||
Common Equity Tier I Capital To Be Well Capitalized Under Prompt Corrective Provisions, % | [2] | 6.50% | ||||
Leverage [Abstract] | ||||||
Leverage Actual, Amount | [1] | $ 112,959 | $ 106,916 | |||
Leverage Actual, % | [1] | 14.80% | 13.80% | |||
Leverage For Capital Adequacy Purposes, Amount | [1] | $ 30,461 | $ 30,906 | |||
Leverage For Capital Adequacy Purposes, % | [1] | 4.00% | 4.00% | |||
Leverage To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [1] | $ 38,076 | $ 38,633 | |||
Leverage To Be Well Capitalized Under Prompt Corrective Action Provisions, % | [1] | 5.00% | 5.00% | |||
Total [Abstract] | ||||||
Total Actual, Amount | [2] | $ 120,193 | $ 113,848 | |||
Total Actual, % | 20.80% | [2] | 20.60% | [2] | 15.00% | |
Total For Capital Adequacy Purposes, Amount | [2] | $ 46,168 | $ 44,108 | |||
Total For Capital Adequacy Purposes, % | [2] | 8.00% | 8.00% | |||
Total To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | [2] | $ 57,710 | $ 55,135 | |||
Total To Be Well Capitalized Under Prompt Corrective Action Provisions, % | [2] | 10.00% | 10.00% | |||
[1] | To adjusted total assets. | |||||
[2] | To risk-weighted assets. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current [Abstract] | ||
Federal | $ 83,000 | $ 12,000 |
State | 7,000 | 19,000 |
Current, Total income tax provision (benefit) | 90,000 | 31,000 |
Deferred [Abstract] | ||
Federal | 1,486,000 | 1,029,000 |
State | 321,000 | 251,000 |
Deferred, Total income tax provision (benefit) | 1,807,000 | 1,280,000 |
Valuation allowance | (1,807,000) | (1,280,000) |
Total income tax provision (benefit) | 90,000 | 31,000 |
Income Tax Expense (Benefit), Amount [Abstract] | ||
Statutory Federal income tax rate | 1,572,000 | 1,000,000 |
State tax net of Federal income tax benefit | 216,000 | 178,000 |
Valuation allowance change | (1,807,000) | (1,280,000) |
Other adjustments | 109,000 | 133,000 |
Total income tax provision (benefit) | $ 90,000 | $ 31,000 |
Percent of Pretax Income [Abstract] | ||
Statutory Federal income tax rate | 34.00% | 34.00% |
State tax net of Federal income tax benefit | 4.70% | 6.10% |
Valuation allowance change | (39.10%) | (43.50%) |
Other adjustments | 2.40% | 4.50% |
Total income tax provision (benefit), Total | 2.00% | 1.10% |
Deferred Tax Assets [Abstract] | ||
Allowance for loan losses | $ 5,456,000 | $ 5,648,000 |
Loan charge-offs | 0 | 0 |
Reserve on foreclosed real estate | 552,000 | 565,000 |
Reserve for uncollected interest | 143,000 | 263,000 |
Reserve for contingent liability | 57,000 | 128,000 |
Federal net operating loss carryforwards | 7,306,000 | 8,593,000 |
State net operating loss carryforwards | 1,457,000 | 1,606,000 |
Charitable contribution carryforwards | 319,000 | 319,000 |
Other | 88,000 | 12,000 |
Total deferred tax assets | 15,378,000 | 17,134,000 |
Valuation allowance | (12,485,000) | (14,292,000) |
Total deferred tax assets, net of valuation allowance | 2,893,000 | 2,842,000 |
Deferred Tax Liabilities [Abstract] | ||
Federal Home Loan Bank stock dividends | (84,000) | (84,000) |
Loan origination costs | (733,000) | (627,000) |
Accelerated depreciation | (1,544,000) | (1,599,000) |
Prepaid expenses | (278,000) | (265,000) |
Mortgage servicing rights | (252,000) | (265,000) |
Other | (2,000) | (2,000) |
Total deferred tax liabilities | (2,893,000) | (2,842,000) |
Net deferred tax assets | 0 | $ 0 |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 20,875,000 | |
Expiration date | Dec. 31, 2033 | |
Expiration date description | expire in 2033 and 2034 | |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 27,173,000 | |
Expiration date | Dec. 31, 2033 | |
Expiration date description | expire at various times from 2023 through 2033 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Term | Dec. 31, 2014USD ($) | |
Board of Directors of Bancorp [Member] | ||
Related party loan activity [Roll forward] | ||
Beginning balance | $ 3,340,000 | |
Loan funding | 0 | |
Loan pay off/payment | 154,000 | |
Ending balance | $ 3,186,000 | $ 3,340,000 |
President of Bancorp, Law Firm Partner [Member] | Law Firm, Bank Partner [Member] | ||
Related Party Transaction [Line Items] | ||
Period for lease agreement with subsidiary | 5 years | |
Number of additional term for which period of lease agreement increase | Term | 3 | |
Total lease payments received by the subsidiary | $ 404,000 | 385,000 |
Related party transaction fees for services | $ 206,000 | $ 324,000 |
Fair Value of Financial Instr60
Fair Value of Financial Instruments (Details) | 12 Months Ended | |
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | |
Fair Value of Financial Instruments [Abstract] | ||
Impaired loan balance | $ 16,166,000 | $ 18,736,000 |
Valuation allowances | $ 2,282,000 | $ 2,777,000 |
Number of impaired collateral-dependent loans | Loan | 7 | 9 |
Fair value of impaired collateral-dependent loans partially charged off | $ 3,219,000 | $ 3,834,000 |
Charge-off impaired collateral-dependent loans | 622,000 | 477,000 |
Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Rate lock commitments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Rate lock commitments | 141,000 | 139,000 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Rate lock commitments | 0 | 0 |
Nonrecurring [Member] | ||
Nonrecurring fair value measurements [Abstract] | ||
Impaired loans | 17,103,000 | 15,959,000 |
Foreclosed real estate | 543,000 | 1,947,000 |
Total nonrecurring fair value measurements | 17,646,000 | 17,906,000 |
Liabilities required to be re-measured on a nonrecurring basis | 0 | 0 |
Nonrecurring [Member] | Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | ||
Nonrecurring fair value measurements [Abstract] | ||
Impaired loans | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Total nonrecurring fair value measurements | 0 | 0 |
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Nonrecurring fair value measurements [Abstract] | ||
Impaired loans | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Total nonrecurring fair value measurements | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Nonrecurring fair value measurements [Abstract] | ||
Impaired loans | 17,103,000 | 15,959,000 |
Foreclosed real estate | 543,000 | 1,947,000 |
Total nonrecurring fair value measurements | 17,646,000 | 17,906,000 |
Recurring [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Mortgage servicing rights | 623,000 | 658,000 |
Rate lock commitments | 141,000 | 139,000 |
Mandatory forward contracts | 111,000 | (59,000) |
Total recurring fair value measurements | 875,000 | 738,000 |
Recurring [Member] | Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Mortgage servicing rights | 0 | 0 |
Rate lock commitments | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Mortgage servicing rights | 0 | 0 |
Rate lock commitments | 141,000 | 139,000 |
Mandatory forward contracts | 111,000 | (59,000) |
Total recurring fair value measurements | 252,000 | 80,000 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Recurring Fair Value Measurements [Abstract] | ||
Mortgage servicing rights | 623,000 | 658,000 |
Rate lock commitments | 0 | 0 |
Mandatory forward contracts | 0 | 0 |
Total recurring fair value measurements | $ 623,000 | $ 658,000 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments, Roll Forward of Level 3 Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Impaired Loans [Member] | PV of Future Cash Flows [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Fair Value Estimate | $ 13,884 | $ 15,589 | |
Valuation Techniques | [1] | PV of future cash flows | PV of future cash flows |
Unobservable Input | Discount Rate | Discount Rate | |
Range and weighted average of liquidation expenses | (6.00%) | (6.00%) | |
Impaired Loans [Member] | Appraisal of Collateral [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Fair Value Estimate | $ 3,219 | $ 370 | |
Valuation Techniques | [2] | Appraisal of collateral | Appraisal of collateral |
Unobservable Input | [3] | Liquidation expenses | Liquidation expenses |
Range and weighted average of liquidation expenses | (6.00%) | (6.00%) | |
Foreclosed Real Estate [Member] | Appraisal of Collateral [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Fair Value Estimate | $ 543 | $ 1,947 | |
Valuation Techniques | [2],[4] | Appraisal of collateral | Appraisal of collateral |
Unobservable Input | [3] | Appraisal adjustments | Appraisal adjustments |
Minimum [Member] | Foreclosed Real Estate [Member] | Appraisal of Collateral [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Range and weighted average of appraisal adjustments | (6.12%) | (6.51%) | |
Maximum [Member] | Foreclosed Real Estate [Member] | Appraisal of Collateral [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Range and weighted average of appraisal adjustments | (7.31%) | (100.00%) | |
Weighted Average [Member] | Foreclosed Real Estate [Member] | Appraisal of Collateral [Member] | |||
Quantitative Information about Level 3 Fair Value Measurements [Abstract] | |||
Range and weighted average of appraisal adjustments | (6.24%) | (13.94%) | |
[1] | Cash flow which generally include various level 3 inputs which are not identifiable. | ||
[2] | Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||
[3] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. | ||
[4] | Includes qualitative adjustments by management and estimated liquidation expenses. |
Fair Value of Financial Instr62
Fair Value of Financial Instruments, Assets, Quantitative Information (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets [Abstract] | ||
Investment securities (HTM) | $ 76,310,000 | $ 60,123,000 |
Mortgage servicing rights | 623,000 | 658,000 |
Quoted Prices in Active Markets For Identical Assets (Level 1) [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 43,591,000 | 33,335,000 |
Investment securities (HTM) | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 0 | 0 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Rate lock commitments | 0 | 0 |
Mandatory forward contracts | 0 | |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Mandatory forward contracts | 0 | |
Off Balance Sheet Commitments | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities (HTM) | 76,310,000 | 60,123,000 |
Loans held for sale | 13,295,000 | 7,211,000 |
Loans receivable, net | 0 | 0 |
FHLB stock | 5,626,000 | 5,936,000 |
Accrued interest receivable | 2,218,000 | 2,297,000 |
Mortgage servicing rights | 0 | 0 |
Rate lock commitments | 141,000 | 139,000 |
Mandatory forward contracts | 111,000 | |
Financial Liabilities [Abstract] | ||
Deposits | 524,458,000 | 544,751,000 |
FHLB advances | 110,759,000 | 108,859,000 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,137,000 | 2,136,000 |
Mandatory forward contracts | 59,000 | |
Off Balance Sheet Commitments | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Investment securities (HTM) | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans receivable, net | 593,742,000 | 636,696,000 |
FHLB stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 623,000 | 658,000 |
Rate lock commitments | 0 | 0 |
Mandatory forward contracts | 0 | |
Financial Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated debentures | 24,119,000 | 24,119,000 |
Accrued interest payable | 0 | 0 |
Mandatory forward contracts | 0 | |
Off Balance Sheet Commitments | 0 | 0 |
Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 43,591,000 | 33,335,000 |
Investment securities (HTM) | 76,310,000 | 60,123,000 |
Loans held for sale | 13,295,000 | 7,211,000 |
Loans receivable, net | 593,742,000 | 636,696,000 |
FHLB stock | 5,626,000 | 5,936,000 |
Accrued interest receivable | 2,218,000 | 2,297,000 |
Mortgage servicing rights | 623,000 | 658,000 |
Rate lock commitments | 141,000 | 139,000 |
Mandatory forward contracts | 111,000 | |
Financial Liabilities [Abstract] | ||
Deposits | 524,458,000 | 544,751,000 |
FHLB advances | 110,759,000 | 108,859,000 |
Subordinated debentures | 24,119,000 | 24,119,000 |
Accrued interest payable | 3,137,000 | 2,136,000 |
Mandatory forward contracts | 59,000 | |
Off Balance Sheet Commitments | 0 | 0 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 43,591,000 | 33,335,000 |
Investment securities (HTM) | 76,133,000 | 59,616,000 |
Loans held for sale | 13,203,000 | 7,165,000 |
Loans receivable, net | 589,656,000 | 633,882,000 |
FHLB stock | 5,626,000 | 5,936,000 |
Accrued interest receivable | 2,218,000 | 2,297,000 |
Mortgage servicing rights | 623,000 | 658,000 |
Rate lock commitments | 141,000 | 139,000 |
Mandatory forward contracts | 111,000 | |
Financial Liabilities [Abstract] | ||
Deposits | 523,771,000 | 543,814,000 |
FHLB advances | 115,000,000 | 115,000,000 |
Subordinated debentures | 24,119,000 | 24,119,000 |
Accrued interest payable | 3,137,000 | 2,136,000 |
Mandatory forward contracts | 59,000 | |
Off Balance Sheet Commitments | $ 0 | $ 0 |
Condensed Financial Informati63
Condensed Financial Information (Parent Company Only) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity in net assets of subsidiaries [Abstract] | |||
Loans, net of allowance for loan losses | $ 589,656 | $ 633,882 | |
Total assets | 762,079 | 776,328 | |
Subordinated debentures | 24,119 | 24,119 | |
Total Liabilities | 675,623 | 692,518 | |
Stockholders' equity | 86,456 | 83,810 | $ 82,769 |
Total liabilities and stockholders' equity | 762,079 | 776,328 | |
Statements of Operations [Abstract] | |||
Interest income | 31,153 | 31,816 | |
Net interest income | 22,161 | 23,182 | |
Provision for loan losses | (280) | 831 | |
Income before income tax provision | 4,625 | 2,940 | |
Income tax expense | (90) | (31) | |
Net income | 4,535 | 2,909 | |
Cash Flows from Operating Activities [Abstract] | |||
Net income | 4,535 | 2,909 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Provision for loan losses | (280) | 831 | |
Stock-based compensation expense | 120 | 201 | |
Net cash provided by operating activities | 1,153 | 1,340 | |
Cash Flows from Investing Activities [Abstract] | |||
Net decrease in loans | 43,555 | (31,752) | |
Net cash provided by (used in) investing activities | 29,050 | (38,949) | |
Cash Flows from Financing Activities [Abstract] | |||
Proceeds from sale of foreclosed real estate | 2,428 | 8,174 | |
Proceeds from exercise of options | 96 | 3 | |
Net cash used in financing activities | (19,947) | (27,432) | |
Increase (decrease) in cash and cash equivalents | 10,256 | (65,041) | |
Cash and cash equivalents at beginning of year | 33,335 | 98,376 | |
Cash and cash equivalents at end of year | 43,591 | 33,335 | |
Severn Bancorp, Inc [Member] | |||
Statements of Financial Condition [Abstract] | |||
Cash | 993 | 1,316 | |
Equity in net assets of subsidiaries [Abstract] | |||
Bank | 113,294 | 107,316 | |
Non-Bank | 3,881 | 3,758 | |
Loans, net of allowance for loan losses | 0 | 0 | |
Other assets | 912 | 920 | |
Total assets | 119,080 | 113,310 | |
Subordinated debentures | 24,119 | 24,119 | |
Other liabilities | 8,505 | 5,381 | |
Total Liabilities | 32,624 | 29,500 | |
Stockholders' equity | 86,456 | 83,810 | |
Total liabilities and stockholders' equity | 119,080 | 113,310 | |
Statements of Operations [Abstract] | |||
Interest income | 0 | 34 | |
Interest expense on subordinated debentures | 1,322 | 1,086 | |
Net interest income | (1,322) | (1,052) | |
General and administrative expenses | 243 | 242 | |
Provision for loan losses | 0 | (19) | |
Income before income tax provision | (1,565) | (1,275) | |
Income tax expense | 0 | (20) | |
Equity in undistributed net income of subsidiaries | 6,100 | 4,204 | |
Net income | 4,535 | 2,909 | |
Cash Flows from Operating Activities [Abstract] | |||
Net income | 4,535 | 2,909 | |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity in undistributed earnings of subsidiaries | (6,100) | (4,204) | |
Provision for loan losses | 0 | (19) | |
Decrease in other assets | 8 | 559 | |
Stock-based compensation expense | 120 | 201 | |
Increase in other liabilities | 1,018 | 298 | |
Net cash provided by operating activities | (419) | (256) | |
Cash Flows from Investing Activities [Abstract] | |||
Net decrease in loans | 0 | 350 | |
Net cash provided by (used in) investing activities | 0 | 350 | |
Cash Flows from Financing Activities [Abstract] | |||
Proceeds from sale of foreclosed real estate | 0 | 250 | |
Proceeds from exercise of options | 96 | 3 | |
Net cash used in financing activities | 96 | 253 | |
Increase (decrease) in cash and cash equivalents | (323) | 347 | |
Cash and cash equivalents at beginning of year | 1,316 | 969 | |
Cash and cash equivalents at end of year | $ 993 | $ 1,316 |