Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 7-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'CAROLINA FINANCIAL CORP | ' |
Entity Central Index Key | '0000870385 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,041,460 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $6,553 | $4,489 |
Interest-bearing cash | 9,887 | 34,176 |
Cash and cash equivalents | 16,440 | 38,665 |
Securities available-for-sale (cost of $196,399 at March 31, 2014 and $166,997 at December 31, 2013) | 199,023 | 167,535 |
Securities held-to-maturity (fair value of $25,076 at March 31, 2014 and $23,547 at December 31, 2013) | 24,242 | 24,554 |
Federal Home Loan Bank stock, at cost | 3,380 | 4,103 |
Other investments | 1,921 | 1,858 |
Derivative assets | 1,216 | 1,412 |
Loans held for sale | 31,899 | 36,897 |
Loans receivable, net of allowance for loan losses of $8,401 at March 31, 2014 and $8,091 at December 31, 2013 | 571,388 | 535,221 |
Premises and equipment, net | 18,654 | 17,585 |
Accrued interest receivable | 2,784 | 2,802 |
Real estate acquired through foreclosure, net | 5,742 | 6,273 |
Deferred tax assets, net | 7,124 | 7,419 |
Income taxes receivable | 634 | ' |
Mortgage servicing rights | 10,003 | 10,908 |
Cash value life insurance | 21,069 | 20,910 |
Other assets | 3,281 | 5,442 |
Total assets | 918,800 | 881,584 |
Liabilities: | ' | ' |
Noninterest-bearing deposits | 88,105 | 83,500 |
Interest-bearing deposits | 657,563 | 614,081 |
Total deposits | 745,668 | 697,581 |
Short-term borrowed funds | 5,300 | 10,300 |
Long-term debt | 69,465 | 74,540 |
Derivative liabilities | ' | 55 |
Drafts outstanding | 1,910 | 2,703 |
Advances from borrowers for insurance and taxes | 457 | 284 |
Accrued interest payable | 324 | 311 |
Income taxes payable | ' | 749 |
Reserve for mortgage repurchase losses | 5,871 | 6,109 |
Dividends payable to shareholders | 201 | ' |
Accrued expenses and other liabilities | 4,027 | 6,725 |
Total liabilities | 833,223 | 799,357 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, par value $.01; 200,000 shares authorized; no shares issued or outstanding | ' | ' |
Common stock, par value $.01; 6,800,000 shares authorized; 4,027,827 and 4,015,204 issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 40 | 40 |
Additional paid-in capital | 22,640 | 22,393 |
Retained earnings | 63,912 | 62,169 |
Accumulated other comprehensive loss, net of tax benefit | -1,015 | -2,375 |
Total stockholders' equity | 85,577 | 82,227 |
Total liabilities and stockholders' equity | $918,800 | $881,584 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Securities available for sale at cost | $196,399 | $166,997 |
Securities held-to-maturity at fair value | 25,076 | 23,547 |
Loans, allowance for loan losses | $8,401 | $8,091 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 6,800,000 | 6,800,000 |
Common stock, shares issued | 4,027,827 | 4,015,204 |
Common stock, shares outstanding | 4,027,827 | 4,015,204 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income | ' | ' |
Loans | $6,833 | $7,079 |
Debt securities | 1,521 | 1,103 |
Dividends from FHLB | 34 | 29 |
Other interest income | 23 | 18 |
Total interest income | 8,411 | 8,229 |
Interest expense | ' | ' |
Deposits | 815 | 866 |
Short-term borrowed funds | 5 | 115 |
Long-term debt | 511 | 521 |
Total interest expense | 1,331 | 1,502 |
Net interest income | 7,080 | 6,727 |
Provision for loan losses | ' | ' |
Net interest income after provision for loan losses | 7,080 | 6,727 |
Noninterest income | ' | ' |
Net gain on sale of loans held for sale | 2,454 | 11,350 |
Deposit service charges | 431 | 318 |
Net gain on sale of securities | 316 | 16 |
Fair value adjustments on interest rate swaps | -255 | ' |
Net gain on sale of servicing assets | 776 | ' |
Net increase in cash value life insurance | 186 | 1 |
Mortgage loan servicing income | 1,277 | 1,492 |
Other | 184 | 206 |
Total noninterest income | 5,369 | 13,383 |
Noninterest expense | ' | ' |
Salaries and employee benefits | 5,344 | 6,460 |
Occupancy and equipment | 984 | 814 |
Marketing and public relations | 274 | 235 |
FDIC insurance | 127 | 256 |
Provision for mortgage loan repurchase losses | ' | 692 |
Legal expense | 170 | 150 |
Other real estate expense, net | 247 | 76 |
Mortgage subservicing expense | 363 | 466 |
Amortization of mortgage servicing rights | 472 | 593 |
Settlement of employment agreements | ' | 1,783 |
Other | 1,625 | 1,498 |
Total noninterest expense | 9,606 | 13,023 |
Income before income taxes | 2,843 | 7,087 |
Income tax expense | 899 | 2,664 |
Net income | $1,944 | $4,423 |
Earnings per common share: | ' | ' |
Basic (per share) | $0.50 | $1.15 |
Diluted (per share) | $0.49 | $1.15 |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 3,851,426 | 3,837,984 |
Diluted (in shares) | 3,936,087 | 3,837,984 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements Of Comprehensive Income | ' | ' |
Net income | $1,944 | $4,423 |
Unrealized gain on securities, net of tax of $861 and $(48) for the three months ended March 31, 2014 and 2013, respectively | 1,531 | -86 |
Reclassification adjustment for gains included in earnings, net of tax of $(114) and $(6) for the three months ended March 31, 2014 and 2013, respectively | -202 | -10 |
Accretion of unrealized losses on held-to-maturity securities previously recognized in other comprehensive income net of tax of $18 and $18 for the three months ended March 31, 2014 and 2013, respectively | 31 | 31 |
Other comprehensive income (loss), net of tax | 1,360 | -65 |
Comprehensive income | $3,304 | $4,358 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Consolidated Statements Of Comprehensive Income | ' | ' |
Unrealized holding gains (losses) on securities available for sale, tax | $861 | ($48) |
Reclassification adjustment for gains included in net income, tax | -114 | -6 |
Accretion of Unrealized losses on held-to-maturity securities, tax | $18 | $18 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2012 | $39 | $22,048 | $45,752 | ($325) | $67,514 |
Beginning Balance (in shares) at Dec. 31, 2012 | 3,837,984 | ' | ' | ' | ' |
Stock-based compensation expense, net | ' | 21 | ' | ' | 21 |
Net income | ' | ' | 4,423 | ' | 4,423 |
Other comprehensive income, net of tax | ' | ' | ' | -65 | -65 |
Ending Balance at Mar. 31, 2013 | 39 | 22,069 | 50,175 | -390 | 71,893 |
Ending Balance (in shares) at Mar. 31, 2013 | 3,837,984 | ' | ' | ' | ' |
Beginning Balance at Dec. 31, 2013 | 40 | 22,393 | 62,169 | -2,375 | 82,227 |
Beginning Balance (in shares) at Dec. 31, 2013 | 4,015,204 | ' | ' | ' | ' |
Stock awards | ' | 137 | ' | ' | 137 |
Stock awards (in shares) | 12,623 | ' | ' | ' | ' |
Stock-based compensation expense, net | ' | 110 | ' | ' | 110 |
Net income | ' | ' | 1,944 | ' | 1,944 |
Dividends declared to stockholders | ' | ' | -201 | ' | -201 |
Other comprehensive income, net of tax | ' | ' | ' | 1,360 | 1,360 |
Ending Balance at Mar. 31, 2014 | $40 | $22,640 | $63,912 | ($1,015) | $85,577 |
Ending Balance (in shares) at Mar. 31, 2014 | 4,027,827 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $1,944 | $4,423 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Provision for loan losses | ' | ' |
Deferred tax (benefit) expense | -448 | 2,301 |
Amortization of unearned discount/premiums on investments, net | 504 | 625 |
Amortization of deferred loan fees | -577 | -1,414 |
Amortization of mortgage servicing rights | 472 | 593 |
Gain on sale of available for sale securities, net | -316 | -16 |
Gain on sale of loans held for sale, net | -2,454 | -11,350 |
Originations of loans held for sale | -206,114 | -507,151 |
Proceeds from sale of loans held for sale | 213,452 | 568,893 |
Provision for mortgage loan repurchase losses | ' | 692 |
Mortgage loan losses paid, net of recoveries | -238 | -131 |
Fair value adjustments on interest rate swaps | 255 | ' |
Stock-based compensation | 110 | 21 |
(Increase) decrease in cash surrender value of bank owned life insurance | -159 | 28 |
Depreciation | 271 | 225 |
Gain on sale of real estate acquired through foreclosure | -28 | -65 |
Write-down of real estate acquired through foreclosure | 239 | 63 |
Net gain on sale of servicing assets | 776 | ' |
Proceeds from the sale of servicing assets | 1,576 | ' |
Originations of mortgage servicing assets | -367 | -3,118 |
Decrease (increase) in: | ' | ' |
Accrued interest receivable | 18 | 183 |
Income taxes receivable | -634 | ' |
Prepaid FDIC insurance | ' | 248 |
Other assets | 2,161 | 2,367 |
Increase (decrease) in: | ' | ' |
Accrued interest payable | 13 | 130 |
Income taxes payable | -788 | -3,038 |
Dividends payable to shareholders | 201 | ' |
Accrued expenses and other liabilities | -2,561 | 353 |
Cash flows provided by operating activities | 5,756 | 54,862 |
Activity in available-for-sale securities: | ' | ' |
Purchases | -47,805 | -34,281 |
Maturities, payments and calls | 8,448 | 14,039 |
Proceeds from sales | 9,818 | 6,216 |
Activity in held-to-maturity securities: | ' | ' |
Maturities, payments and calls | 317 | 255 |
(Increase) decrease in other investments | -63 | 2 |
Decrease in Federal Home Loan Bank stock | 723 | 2,310 |
(Increase) decrease in loans receivable, net | -36,427 | 854 |
Purchase of premises and equipment | -1,340 | -92 |
Proceeds from sale of real estate acquired through foreclosure | 1,157 | 483 |
Purchase of bank owned life insurance | ' | -53 |
Distribution of bank owned life insurance | ' | 116 |
Cash flows used in investing activities | -65,172 | -10,151 |
Cash flows from financing activities: | ' | ' |
Net increase in deposit accounts | 48,087 | 10,561 |
Net decrease in Federal Home Loan Bank advances | -10,000 | -47,500 |
Net increase in other short-term borrowed funds | ' | 1,504 |
Principal repayment of subordinated debt | -75 | -75 |
Net decrease in drafts outstanding | -793 | -1,349 |
Net increase (decrease) in advances from borrowers for insurance and taxes | 173 | -115 |
Cash dividends paid on common stock | -201 | ' |
Cash flows provided by (used in) financing activities | 37,191 | -36,974 |
Net (decrease) increase in cash and cash equivalents | -22,225 | 7,737 |
Cash and cash equivalents, beginning of quarter | 38,665 | 17,839 |
Cash and cash equivalents, end of quarter | 16,440 | 25,576 |
Supplemental disclosure | ' | ' |
Cash paid for Interest on deposits and borrowed funds | 1,318 | 1,372 |
Cash paid for Income taxes paid, net of (refunds) | 2,768 | 2,997 |
Noncash investing and financing activities: | ' | ' |
Transfer of loans receivable to real estate acquired through foreclosure | $837 | $876 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization | |
Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a bank holding company with two wholly-owned subsidiaries, CresCom Bank (the “Bank”) and Carolina Services Corporation of Charleston (“Carolina Services”). Effective July 31, 2012, Carolina Financial combined its wholly-owned subsidiary bank, Community FirstBank of Charleston (“Community FirstBank”), with and into its other wholly-owned subsidiary bank, Crescent Bank. In conjunction with this internal reorganization, Crescent Bank’s name was changed to CresCom Bank. Crescent Mortgage Company (“Crescent Mortgage”), formerly a wholly-owned subsidiary of Community FirstBank, became a wholly-owned subsidiary of CresCom Bank. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CresCom Bank and Carolina Services. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. | |
At March 31, 2014 and December 31, 2013, statutory business trusts (“Trusts”) created by the Company had outstanding trust preferred securities with an aggregate par value of $15,000,000. The principal assets of the Trusts are $15,465,000 of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $465,000 of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with GAAP. Because the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the Company’s audited consolidated financial statements and accompanying footnotes included in the Company’s Registration Statement on Form 10, as amended (File No. 000-19029) (the “Form 10”) filed with the Securities and Exchange Commission (“SEC”) on April 1, 2014. There have been no significant changes to the accounting polices as disclosed in the Company’s Form 10. | |
In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal, recurring adjustments necessary to present fairly the financial position of the Company as of March 31, 2014 and December 31, 2013, and the results of its operations and cash flows for the three-months ended March 31, 2014 and 2013. Operating results for the three-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year or for other interim periods. | |
Management’s Estimates | |
The financial statements are prepared in accordance with GAAP in the United States of America which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. | |
Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowances for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for loan losses and foreclosed real estate may change materially in the near term. | |
Earnings Per Share | |
Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the year. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. Weighted-average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. | |
On January 15, 2014, the Board of Directors of the Company declared a two-for-one stock split to stockholders of record dated February 10, 2014, payable on February 28, 2014. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect this stock split for all periods presented in accordance with GAAP. | |
Subsequent Events | |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure except for the following: | |
On April 23, 2014, the stockholders of the Company approved an increase in the number of authorized common shares from 6,800,000 to 10,000,000 and an increase in the number of authorized preferred shares from 200,000 to 1,000,000. | |
On April 23, 2014, the Company declared a $0.05 per share dividend to stockholders of record on June 20, 2014, payable July 10, 2014. | |
Reclassification | |
Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported. | |
Recently Issued Accounting Pronouncements | |
The Balance Sheet topic of the ASC was amended in December 2011 for companies with financial instruments and derivative instruments that offset or are subject to a master netting agreement. The amendments require disclosure of both gross information and net information about instruments and transactions eligible for offset or subject to an agreement similar to a master netting agreement. The amendments were effective for reporting periods beginning on or after January 1, 2013 and required retrospective presentation for all comparative periods presented. Additionally, in January 2013 the FASB clarified that the amendments apply only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in GAAP or subject to a master netting arrangement or similar agreement. These amendments did not have a material effect on the Company’s financial statements. | |
The FASB amended the Comprehensive Income topic of the ASC in February 2013. The amendments address reporting of amounts reclassified out of accumulated other comprehensive income. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments will be effective for the Company on a prospective basis for reporting periods beginning after December 15, 2013. Earlier adoption is permitted. The Company does not expect that these amendments will have a material effect on its financial statements. | |
In February 2013, the FASB also amended the Financial Instruments topic of the ASC to address the scope and applicability of certain disclosures to nonpublic companies. The amendments clarify that the requirement to disclose “the level of the fair value hierarchy within the fair value measurements are categorized in their entirety (Level 1, 2, or 3)” does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position but for which fair value is disclosed. The Company does not expect these amendments to have a material effect on its financial statements. | |
In April 2013, the FASB issued guidance addressing application of the liquidation basis of accounting. The guidance is intended to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments will be effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein, and those requirements should be applied prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company does not expect these amendments to have any effect on its financial statements. | |
In December 2013, the FASB amended the Master Glossary of the FASB Codification to define “Public Business Entity” to minimize the inconsistency and complexity of having multiple definitions of, or a diversity in practice as to what constitutes, a nonpublic entity and public entity within U.S. GAAP. The amendment does not affect existing requirements, however it will be used by the FASB, the Private Company Council (“PCC”), and the Emerging Issues Task Force (“EITF”) in specifying the scope of future financial accounting and reporting guidance. The Company does not expect this amendment to have any effect on its financial statements. | |
In January 2014, the FASB amended the Receivables—Troubled Debt Restructurings by Creditors subtopic of the Codification to address the reclassification of consumer mortgage loans collateralized by residential real estate upon foreclosure. The amendments clarify the criteria for concluding that an in-substance repossession or foreclosure has occurred, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The amendments also outline interim and annual disclosure requirements. The amendments will be effective for the Company’s annual reporting periods beginning after December 15, 2014. Companies are allowed to use either a modified retrospective transition method or a prospective transition method when adopting this update. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
SECURITIES
SECURITIES | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
SECURITIES | ' | ||||||||||||||||||||||||||||||||||||||||
NOTE 2 - SECURITIES | |||||||||||||||||||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments securities available-for-sale and held-to-maturity at March 31, 2014 and December 31, 2013 follows: | |||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 37,474 | 687 | (703 | ) | 37,458 | 39,790 | 99 | (1,390 | ) | 38,499 | ||||||||||||||||||||||||||||||
US government agencies | 7,975 | — | (36 | ) | 7,939 | 5,199 | — | (24 | ) | 5,175 | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 94,331 | 2,038 | (104 | ) | 96,265 | 68,813 | 1,433 | (317 | ) | 69,929 | |||||||||||||||||||||||||||||||
Non-agency | 56,619 | 914 | (172 | ) | 57,361 | 53,195 | 826 | (89 | ) | 53,932 | |||||||||||||||||||||||||||||||
Total mortgage-backed securities | 150,950 | 2,952 | (276 | ) | 153,626 | 122,008 | 2,259 | (406 | ) | 123,861 | |||||||||||||||||||||||||||||||
Total | $ | 196,399 | 3,639 | (1,015 | ) | 199,023 | 166,997 | 2,358 | (1,820 | ) | 167,535 | ||||||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 15,442 | 355 | (114 | ) | 15,683 | 15,488 | 30 | (341 | ) | 15,177 | ||||||||||||||||||||||||||||||
Asset-backed securities | 8,800 | 3,002 | (2,409 | ) | 9,393 | 9,066 | 2,107 | (2,803 | ) | 8,370 | |||||||||||||||||||||||||||||||
Total | $ | 24,242 | 3,357 | (2,523 | ) | 25,076 | 24,554 | 2,137 | (3,144 | ) | 23,547 | ||||||||||||||||||||||||||||||
The asset-backed securities portfolio is collateralized with trust preferred securities issued by other financial institutions in pooled issuances. | |||||||||||||||||||||||||||||||||||||||||
The following table presents unrealized losses related to the trust preferred securities that were recognized within other comprehensive income at the time of transfer to held-to-maturity as well as the unrealized gains and losses that are not presented in other comprehensive income for March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Not Recognized in | |||||||||||||||||||||||||||||||||||||||||
Recognized in OCI | OCI | ||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||
Collateral- | |||||||||||||||||||||||||||||||||||||||||
Purchased | Cumula- | Carrying | Amortized | Estimated | ization | ||||||||||||||||||||||||||||||||||||
Face Value | tive OTTI | Value | Gains | Losses | Cost | Gains | Losses | Fair Value | Percentage | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||||||||||||||||||
Trust Preferred Securities | |||||||||||||||||||||||||||||||||||||||||
Total A-Class | $ | 2,487 | — | 2,487 | — | (579 | ) | 1,908 | 365 | (89 | ) | 2,184 | 172%-378% | ||||||||||||||||||||||||||||
Total B-Class | 11,833 | (2,635 | ) | 9,198 | — | (2,541 | ) | 6,657 | 1,712 | (2,320 | ) | 6,049 | 94%-104% | ||||||||||||||||||||||||||||
Total C-Class | 2,698 | (1,340 | ) | 1,358 | — | (1,123 | ) | 235 | 925 | — | 1,160 | 86%-86% | |||||||||||||||||||||||||||||
$ | 17,018 | (3,975 | ) | 13,043 | — | (4,243 | ) | 8,800 | 3,002 | (2,409 | ) | 9,393 | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Not Recognized in | |||||||||||||||||||||||||||||||||||||||||
Recognized in OCI | OCI | ||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||
Collateral- | |||||||||||||||||||||||||||||||||||||||||
Purchased | Cumula- | Carrying | Amortized | Estimated | ization | ||||||||||||||||||||||||||||||||||||
Face Value | tive OTTI | Value | Gains | Losses | Cost | Gains | Losses | Fair Value | Percentage | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||||||||||||||||||
Trust Preferred Securities | |||||||||||||||||||||||||||||||||||||||||
Total A-Class | $ | 2,841 | — | 2,841 | — | (586 | ) | 2,255 | 354 | (99 | ) | 2,510 | 164% - 324% | ||||||||||||||||||||||||||||
Total B-Class | 11,804 | (2,635 | ) | 9,169 | — | (2,569 | ) | 6,600 | 1,190 | (2,704 | ) | 5,086 | 94% - 98% | ||||||||||||||||||||||||||||
Total C-Class | 2,688 | (1,340 | ) | 1,348 | — | (1,137 | ) | 211 | 563 | — | 774 | 83% - 83% | |||||||||||||||||||||||||||||
$ | 17,333 | (3,975 | ) | 13,358 | — | (4,292 | ) | 9,066 | 2,107 | (2,803 | ) | 8,370 | |||||||||||||||||||||||||||||
The pooled trust preferred securities consisted of positions in seven different securities. The underlying issuers in the pools were primarily financial institutions and to a lesser extent, insurance companies and real estate investment trusts. The Company owns both senior and mezzanine tranches in pooled trust preferred securities; however, the Company does not own any income notes. The senior and mezzanine tranches of trust preferred collateralized debt obligations generally have some protection from defaults in the form of over-collateralization and excess spread revenues, along with waterfall structures that redirect cash flows in the event certain coverage test requirements are failed. Generally, senior tranches have the greatest protection, with mezzanine tranches subordinated to the senior tranches, and income notes subordinated to the mezzanine tranches. Unrealized losses recognized in other comprehensive income relate to unrealized losses at the time of transfer from available-for-sale to held-to-maturity and are accreted in accordance with GAAP. | |||||||||||||||||||||||||||||||||||||||||
As of March 31, 2014, $900,000 of the pooled trust preferred securities were investment grade, $1.0 million were split-rated, and $6.9 million were below investment grade. As of December 31, 2013, $1.3 million of the pooled trust preferred securities were investment grade, $1.0 million were split-rated, and $6.8 million were below investment grade. In terms of risk-based capital calculation, the Company allocates additional risk-based capital to the below investment grade securities. | |||||||||||||||||||||||||||||||||||||||||
As of March 31, 2014, senior tranches represent $1.9 million of the Company’s pooled securities, while mezzanine tranches represented $6.9 million. All of the $6.9 million in mezzanine tranches are still subordinate to senior tranches as the senior notes have not been paid to a zero balance. As of December 31, 2013, senior tranches represent $2.3 million of the Company’s pooled securities, while mezzanine tranches represented $6.8 million. All of the $6.8 million in mezzanine tranches are still subordinate to senior tranches as the senior notes have not been paid to a zero balance. | |||||||||||||||||||||||||||||||||||||||||
The amortized cost and fair value of debt securities by contractual maturity at March 31, 2014 follows: | |||||||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Three to five years | $ | 510 | 505 | ||||||||||||||||||||||||||||||||||||||
Six to ten years | 15,621 | 15,501 | |||||||||||||||||||||||||||||||||||||||
After ten years | 180,268 | 183,017 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 196,399 | 199,023 | ||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Three to five years | $ | 980 | 890 | ||||||||||||||||||||||||||||||||||||||
Six to ten years | 3,545 | 3,476 | |||||||||||||||||||||||||||||||||||||||
After ten years | 19,717 | 20,710 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 24,242 | 25,076 | ||||||||||||||||||||||||||||||||||||||
The contractual maturity dates of the securities were used for mortgage-backed securities and asset-backed securities. No estimates were made to anticipate principal repayments. | |||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2014, the Company sold 13 securities available-for-sale totaling $9.5 million. The Company received gross proceeds of $9.8 million related to the sale of these securities and recognized gross gains of $316,000 and no gross losses. | |||||||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2013, the Company sold three securities available-for-sale totaling $6.2 million. The Company received gross proceeds of $6.2 million related to the sale of these securities and recognized gross gains of $16,000 and no gross losses. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2014, the Company had pledged $15.3 million of securities for FHLB advances. | |||||||||||||||||||||||||||||||||||||||||
The gross unrealized losses and fair value of the Company’s investments available-for-sale with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2014 are as follows: | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Cost | Value | Losses | Cost | Value | Losses | Cost | Value | Losses | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 14,907 | 14,365 | (542 | ) | 4,922 | 4,761 | (161 | ) | 19,829 | 19,126 | (703 | ) | ||||||||||||||||||||||||||||
US government agencies | 7,975 | 7,939 | (36 | ) | — | — | — | 7,975 | 7,939 | (36 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 8,239 | 8,135 | (104 | ) | — | — | — | 8,239 | 8,135 | (104 | ) | ||||||||||||||||||||||||||||||
Non-agency | 21,279 | 21,127 | (152 | ) | 2,314 | 2,294 | (20 | ) | 23,593 | 23,421 | (172 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 29,518 | 29,262 | (256 | ) | 2,314 | 2,294 | (20 | ) | 31,832 | 31,556 | (276 | ) | |||||||||||||||||||||||||||||
Total | $ | 52,400 | 51,566 | (834 | ) | 7,236 | 7,055 | (181 | ) | 59,636 | 58,621 | (1,015 | ) | ||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | — | — | — | 3,371 | 3,257 | (114 | ) | 3,371 | 3,257 | (114 | ) | |||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | 7,428 | 5,019 | (2,409 | ) | 7,428 | 5,019 | (2,409 | ) | ||||||||||||||||||||||||||||||
Total | $ | — | — | — | 10,799 | 8,276 | (2,523 | ) | 10,799 | 8,276 | (2,523 | ) | |||||||||||||||||||||||||||||
The gross unrealized losses and fair value of the Company’s investments available-for-sale with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013 are as follows: | |||||||||||||||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Cost | Value | Losses | Cost | Value | Losses | Cost | Value | Losses | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 27,108 | 25,917 | (1,191 | ) | 3,157 | 2,958 | (199 | ) | 30,265 | 28,875 | (1,390 | ) | ||||||||||||||||||||||||||||
US government agencies | 5,199 | 5,175 | (24 | ) | — | — | — | 5,199 | 5,175 | (24 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 27,140 | 26,823 | (317 | ) | — | — | — | 27,140 | 26,823 | (317 | ) | ||||||||||||||||||||||||||||||
Non-agency | 15,006 | 14,951 | (55 | ) | 3,660 | 3,626 | (34 | ) | 18,666 | 18,577 | (89 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 42,146 | 41,774 | (372 | ) | 3,660 | 3,626 | (34 | ) | 45,806 | 45,400 | (406 | ) | |||||||||||||||||||||||||||||
Total | $ | 74,453 | 72,866 | (1,587 | ) | 6,817 | 6,584 | (233 | ) | 81,270 | 79,450 | (1,820 | ) | ||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 11,945 | 11,734 | (211 | ) | 2,177 | 2,047 | (130 | ) | 14,122 | 13,781 | (341 | ) | ||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | 7,398 | 4,595 | (2,803 | ) | 7,398 | 4,595 | (2,803 | ) | ||||||||||||||||||||||||||||||
Total | $ | 11,945 | 11,734 | (211 | ) | 9,575 | 6,642 | (2,933 | ) | 21,520 | 18,376 | (3,144 | ) | ||||||||||||||||||||||||||||
The Company reviews its investment securities portfolio at least quarterly and more frequently when economic conditions warrant, assessing whether there is any indication of other-than-temporary impairment (“OTTI”). Factors considered in the review include estimated future cash flows, length of time and extent to which market value has been less than cost, the financial condition and near term prospect of the issuer, and our intent and ability to retain the security to allow for an anticipated recovery in market value. If the review determines that there is OTTI, then an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made, or a portion may be recognized in other comprehensive income. The fair value of investments on which OTTI is recognized then becomes the new cost basis of the investment. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 and December 31 2013, the Company had 42 and 58, respectively, individual investments available-for-sale that were in an unrealized loss position. The unrealized losses on the Company’s investments in US government-sponsored agencies, municipal securities and mortgage-backed securities (agency and non-agency) summarized above were attributable primarily to changes in interest rates. Management has performed various analyses, including cash flows, and determined that no OTTI expense was necessary for the three months ended March 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 and December 31, 2013, the Company had four trust preferred securities within the held-to-maturity portfolio that were in an unrealized loss position. The asset-backed securities portfolio is collateralized with trust preferred securities issued by other financial institutions in pooled issuances. | |||||||||||||||||||||||||||||||||||||||||
To determine the fair value, cash flow models for trust preferred securities are provided by a third-party pricing service. Impairment testing is performed on a quarterly basis using a detailed cash flow analysis for each security. The major assumptions used during the impairment test are described in the subsequent paragraph. | |||||||||||||||||||||||||||||||||||||||||
In 2009, the Company adopted a four year “burst” scenario for its modeled default rates (2010 - 2013) that replicated the default rates for the banking industry from the four peak years of the savings and loan crisis, which then reduced to 0.25% annually. The elevated default rate ended in 2013. The constant default rate used by the Company is now 0.25% annually. All issuers that were currently in deferral were presumed to be in default. Additionally, all defaults are assumed to have a 15% recovery after two years and 1% of the pool is presumed to prepay annually. If this analysis results in a present value of expected cash flows that is less than the book value of a security (that is, a credit loss exists), an OTTI is considered to have occurred. If there is no credit loss, any impairment is considered temporary. The cash flow analysis we performed used discount rates equal to the credit spread at the time of purchase for each security and then added the current three-month LIBOR forward interest rate curve. Based on the cash flow analysis performed at period end, management believes that there are no additional securities other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
There was no OTTI recognized for the three months ended March 31, 2014 or 2013. | |||||||||||||||||||||||||||||||||||||||||
The following table presents the cumulative credit related OTTI related to securities held-to-maturity taken as well as the activity at March 31, 2014 and December 31, 2013 for the trust preferred securities. | |||||||||||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 3,975 | 3,975 | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which OTTI was not previously recognized | — | — | |||||||||||||||||||||||||||||||||||||||
Additions for additional credit losses on securities for which OTTI was previously recognized | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 3,975 | 3,975 | ||||||||||||||||||||||||||||||||||||||
Management believes that there are no additional securities other-than-temporarily impaired at March 31, 2014. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities before recovery of their amortized cost. Management continues to monitor these securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of the securities may be sold or are other-than-temporarily impaired, which would require a charge to earnings in such periods. | |||||||||||||||||||||||||||||||||||||||||
The Company, as a member of the Federal Home Loan Bank (“FHLB”) of Atlanta, is required to own capital stock in the FHLB of Atlanta based generally upon a membership-based requirement and an activity-based requirement. FHLB capital stock is pledged to secure FHLB advances. No secondary market exists for this stock, and it has no quoted market price. However, redemption through the FHLB of this stock has historically been at par value. The Company’s investment in FHLB capital stock was $3.4 million and $4.1 million at March 31, 2014 and December 31, 2013, respectively. |
DERIVATIVES
DERIVATIVES | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
DERIVATIVES | ' | ||||||||||||||||
NOTE 3 – DERIVATIVES | |||||||||||||||||
The derivative positions of the Company at March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair | Notional | Fair | Notional | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Mortgage loan interest rate lock commitments | $ | 438 | 131,955 | — | — | ||||||||||||
Mortgage loan forward sales commitments | 261 | 20,992 | 106 | 20,516 | |||||||||||||
Mortgage-backed securities forward sales commitments | 270 | 107,000 | 878 | 88,000 | |||||||||||||
Interest rate swaps | 247 | 20,000 | 428 | 20,000 | |||||||||||||
$ | 1,216 | 279,947 | 1,412 | 128,516 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | 55 | 103,614 | |||||||||||||
$ | — | — | 55 | 103,614 | |||||||||||||
The primary uses of derivative instruments are related to the mortgage banking activities of the Company. As such, the Company holds derivative instruments, which consist of rate lock agreements related to expected funding of fixed-rate mortgage loans to customers (interest rate lock commitments) and forward commitments to sell mortgage-backed securities and individual fixed-rate mortgage loans. The Company’s objective in obtaining the forward commitments is to mitigate the interest rate risk associated with the interest rate lock commitments and the mortgage loans that are held for sale. Derivatives related to these commitments are recorded as either a derivative asset or a derivative liability in the balance sheet and are measured at fair value. Both the interest rate lock commitments and the forward commitments are reported at fair value, with adjustments recorded in current period earnings in net gain on sale of loans held for sale within the noninterest income of the consolidated statements of operations. | |||||||||||||||||
Derivative instruments not related to mortgage banking activities, including financial futures commitments and interest rate swap agreements that do not satisfy the hedge accounting requirements are recorded at fair value and are classified with resultant changes in fair value recorded in current period earnings in fair value adjustments on interest rate swaps within noninterest income in the consolidated statement of operations. | |||||||||||||||||
When using derivatives to hedge fair value and cash flow risks, the Company exposes itself to potential credit risk from the counterparty to the hedging instrument. This credit risk is normally a small percentage of the notional amount and fluctuates as interest rates change. The Company analyzes and approves credit risk for all potential derivative counterparties prior to execution of any derivative transaction. The Company seeks to minimize credit risk by dealing with highly rated counterparties and by obtaining collateralization for exposures above certain predetermined limits. If significant counterparty risk is determined, the Company would adjust the fair value of the derivative recorded asset balance to consider such risk. |
LOANS_RECEIVABLE_NET
LOANS RECEIVABLE, NET | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
LOANS RECEIVABLE, NET | ' | ||||||||||||||||||||||||||||||||
NOTE 4 - LOANS RECEIVABLE, NET | |||||||||||||||||||||||||||||||||
Loans receivable, net at March 31, 2014 and December 31, 2013 are summarized by category as follows: | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||||||||||||||
Amount | Loans | Amount | Loans | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 201,196 | 33.44 | % | 184,210 | 32.6 | % | ||||||||||||||||||||||||||
Home equity | 23,887 | 3.97 | % | 23,661 | 4.19 | % | |||||||||||||||||||||||||||
Commercial real estate | 256,523 | 42.64 | % | 253,035 | 44.79 | % | |||||||||||||||||||||||||||
Construction and development | 67,598 | 11.24 | % | 67,056 | 11.87 | % | |||||||||||||||||||||||||||
Consumer loans | 3,097 | 0.51 | % | 3,060 | 0.54 | % | |||||||||||||||||||||||||||
Commercial business loans | 49,339 | 8.2 | % | 33,938 | 6.01 | % | |||||||||||||||||||||||||||
Total gross loans receivable | 601,640 | 100 | % | 564,960 | 100 | % | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Undisbursed loans in process | 21,673 | 21,550 | |||||||||||||||||||||||||||||||
Allowance for loan losses | 8,401 | 8,091 | |||||||||||||||||||||||||||||||
Deferred fees, net | 178 | 98 | |||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 571,388 | 535,221 | ||||||||||||||||||||||||||||||
The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Variable rate loans | $ | 237,077 | 40.88 | % | 219,589 | 40.41 | % | ||||||||||||||||||||||||||
Fixed rate loans | 342,890 | 59.12 | % | 323,821 | 59.59 | % | |||||||||||||||||||||||||||
Total loans outstanding | $ | 579,967 | 100 | % | 543,410 | 100 | % | ||||||||||||||||||||||||||
The following table presents activity in the allowance for loan losses. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | ||||||||||||||||||||||||
Provision for loan losses | 114 | 3 | 444 | (339 | ) | (40 | ) | 115 | (297 | ) | — | ||||||||||||||||||||||
Charge-offs | (37 | ) | — | (28 | ) | (170 | ) | (13 | ) | — | — | (248 | ) | ||||||||||||||||||||
Recoveries | 19 | — | — | 327 | 40 | 172 | — | 558 | |||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 2,568 | 234 | 3,271 | 1,236 | 29 | 626 | 437 | 8,401 | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 3,193 | 276 | 3,315 | 1,792 | 82 | 862 | — | 9,520 | ||||||||||||||||||||||||
Provision for loan losses | (265 | ) | (47 | ) | (133 | ) | 86 | 14 | (75 | ) | 420 | — | |||||||||||||||||||||
Charge-offs | (33 | ) | — | — | (62 | ) | (33 | ) | — | — | (128 | ) | |||||||||||||||||||||
Recoveries | 115 | — | 52 | 7 | 24 | 48 | — | 246 | |||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 3,010 | 229 | 3,234 | 1,823 | 87 | 835 | 420 | 9,638 | ||||||||||||||||||||||||
Allowance for loan losses: | For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 3,193 | 276 | 3,315 | 1,792 | 82 | 862 | — | 9,520 | ||||||||||||||||||||||||
Provision for loan losses | (991 | ) | (18 | ) | (317 | ) | 281 | (58 | ) | (491 | ) | 734 | (860 | ) | |||||||||||||||||||
Charge-offs | (168 | ) | (28 | ) | (269 | ) | (765 | ) | (35 | ) | (410 | ) | — | (1,675 | ) | ||||||||||||||||||
Recoveries | 438 | 1 | 126 | 110 | 53 | 378 | — | 1,106 | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | ||||||||||||||||||||||||
The following table disaggregates our allowance for loan losses and recorded investment in loans by impairment methodology. | |||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
At March 31, 2014: | |||||||||||||||||||||||||||||||||
Allowance for loan losses ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 167 | — | 55 | — | 6 | 4 | — | 232 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 2,401 | 234 | 3,216 | 1,236 | 23 | 622 | 437 | 8,169 | |||||||||||||||||||||||||
$ | 2,568 | 234 | 3,271 | 1,236 | 29 | 626 | 437 | 8,401 | |||||||||||||||||||||||||
Loans receivable ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,747 | — | 16,529 | 407 | 26 | 2,293 | — | 25,002 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 194,923 | 23,681 | 233,368 | 59,712 | 2,813 | 40,468 | — | 554,965 | |||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | — | 579,967 | ||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Allowance for loan losses ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 103 | — | 55 | 165 | 20 | 6 | — | 349 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 2,369 | 231 | 2,800 | 1,253 | 22 | 333 | 734 | 7,742 | |||||||||||||||||||||||||
$ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | |||||||||||||||||||||||||
Loans receivable ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,220 | 125 | 17,008 | 1,493 | 40 | 2,560 | — | 27,446 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 177,516 | 23,217 | 230,859 | 58,611 | 2,775 | 22,986 | — | 515,964 | |||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | — | 543,410 | ||||||||||||||||||||||||
The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories, and the creresponding allowance for loan losses as of March 31, 2014, and December 31, 2013. The recorded investment is defined as the original amount of the loan, net of any deferred costs and fees, less any principal reductions and direct charge-offs. Unpaid principal balance includes amounts previously included in charge-offs. | |||||||||||||||||||||||||||||||||
At March 31, 2014 | At December 31, 2013 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | ||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 5,084 | 7,016 | — | 5,713 | 7,682 | — | ||||||||||||||||||||||||||
Home equity | — | 347 | — | 125 | 472 | — | |||||||||||||||||||||||||||
Commercial real estate | 16,220 | 16,764 | — | 16,695 | 17,240 | — | |||||||||||||||||||||||||||
Construction and development | 407 | 2,918 | — | 1,227 | 3,887 | — | |||||||||||||||||||||||||||
Consumer loans | 20 | 546 | — | 20 | 404 | — | |||||||||||||||||||||||||||
Commercial business loans | 2,289 | 3,335 | — | 2,554 | 3,599 | — | |||||||||||||||||||||||||||
24,020 | 30,926 | — | 26,334 | 33,284 | — | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 663 | 764 | 167 | 507 | 607 | 103 | |||||||||||||||||||||||||||
Home equity | — | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate | 309 | 309 | 55 | 313 | 313 | 55 | |||||||||||||||||||||||||||
Construction and development | — | — | — | 266 | 266 | 165 | |||||||||||||||||||||||||||
Consumer loans | 6 | 6 | 6 | 20 | 20 | 20 | |||||||||||||||||||||||||||
Commercial business loans | 4 | 4 | 4 | 6 | 6 | 6 | |||||||||||||||||||||||||||
982 | 1,083 | 232 | 1,112 | 1,212 | 349 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 5,747 | 7,780 | 167 | 6,220 | 8,289 | 103 | |||||||||||||||||||||||||||
Home equity | — | 347 | — | 125 | 472 | — | |||||||||||||||||||||||||||
Commercial real estate | 16,529 | 17,073 | 55 | 17,008 | 17,553 | 55 | |||||||||||||||||||||||||||
Construction and development | 407 | 2,918 | — | 1,493 | 4,153 | 165 | |||||||||||||||||||||||||||
Consumer loans | 26 | 552 | 6 | 40 | 424 | 20 | |||||||||||||||||||||||||||
Commercial business loans | 2,293 | 3,339 | 4 | 2,560 | 3,605 | 6 | |||||||||||||||||||||||||||
$ | 25,002 | 32,009 | 232 | 27,446 | 34,496 | 349 | |||||||||||||||||||||||||||
The following table presents the average recorded investment and interest income recognized on impaired loans individually evaluated for impairment in the segmented portfolio categories for the three months ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 5,107 | 53 | 4,724 | 28 | ||||||||||||||||||||||||||||
Home equity | — | — | 83 | (1 | ) | ||||||||||||||||||||||||||||
Commercial real estate | 16,807 | 148 | 15,245 | 102 | |||||||||||||||||||||||||||||
Construction and development | 450 | 2 | 376 | (6 | ) | ||||||||||||||||||||||||||||
Consumer loans | 23 | 4 | 37 | — | |||||||||||||||||||||||||||||
Commercial business loans | 2,480 | 77 | 2,238 | 30 | |||||||||||||||||||||||||||||
24,867 | 284 | 22,703 | 153 | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 545 | 5 | 2,590 | — | |||||||||||||||||||||||||||||
Home equity | — | — | — | — | |||||||||||||||||||||||||||||
Commercial real estate | 311 | 6 | 4,372 | (1 | ) | ||||||||||||||||||||||||||||
Construction and development | — | — | 2,228 | — | |||||||||||||||||||||||||||||
Consumer loans | 7 | — | 20 | — | |||||||||||||||||||||||||||||
Commercial business loans | 5 | — | 1,248 | (2 | ) | ||||||||||||||||||||||||||||
868 | 11 | 10,458 | (3 | ) | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 5,652 | 58 | 7,314 | 28 | |||||||||||||||||||||||||||||
Home equity | — | — | 83 | (1 | ) | ||||||||||||||||||||||||||||
Commercial real estate | 17,118 | 154 | 19,617 | 101 | |||||||||||||||||||||||||||||
Construction and development | 450 | 2 | 2,604 | (6 | ) | ||||||||||||||||||||||||||||
Consumer loans | 30 | 4 | 57 | — | |||||||||||||||||||||||||||||
Commercial business loans | 2,485 | 77 | 3,486 | 28 | |||||||||||||||||||||||||||||
$ | 25,735 | 295 | 33,161 | 150 | |||||||||||||||||||||||||||||
The Company is committed to advance up to $230,000 of additional funds in connection with impaired loans as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
A loan is considered past due if the required principal and interest payment has not been received as of the due date. The following schedule is an aging of past due loans receivable by portfolio segment as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
30-59 days past due | $ | 2,331 | 647 | 269 | 367 | — | 76 | 3,690 | |||||||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
90 days or more past due | 3,384 | — | 4,532 | 393 | 6 | 200 | 8,515 | ||||||||||||||||||||||||||
Total past due | 5,715 | 647 | 4,801 | 760 | 6 | 276 | 12,205 | ||||||||||||||||||||||||||
Current | 194,955 | 23,034 | 245,096 | 59,359 | 2,833 | 42,485 | 567,762 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
30-59 days past due | $ | 231 | — | 273 | 53 | — | — | 557 | |||||||||||||||||||||||||
60-89 days past due | 1,034 | — | — | — | — | — | 1,034 | ||||||||||||||||||||||||||
90 days or more past due | 3,440 | 125 | 5,074 | 1,477 | 7 | 431 | 10,554 | ||||||||||||||||||||||||||
Total past due | 4,705 | 125 | 5,347 | 1,530 | 7 | 431 | 12,145 | ||||||||||||||||||||||||||
Current | 179,031 | 23,217 | 242,520 | 58,574 | 2,808 | 25,115 | 531,265 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 | |||||||||||||||||||||||||
Loans are generally placed in nonaccrual status when the collection of principal and interest is 90 days or more past due, unless the obligation is both well-secured and in the process of collection. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest payments received while the loan is on nonaccrual are applied to the principal balance. No interest income was recognized on impaired loans subsequent to the nonaccrual status designation. A loan is returned to accrual status when the borrower makes consistent payments according to contractual terms and future payments are reasonably assured. There were no loans past due 90 days or more and still accruing at March 31, 2014 or December 31, 2013. | |||||||||||||||||||||||||||||||||
The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 3,841 | 3,902 | ||||||||||||||||||||||||||||||
Home equity | — | 125 | |||||||||||||||||||||||||||||||
Commercial real estate | 4,571 | 5,114 | |||||||||||||||||||||||||||||||
Construction and development | 396 | 1,481 | |||||||||||||||||||||||||||||||
Consumer loans | 7 | 20 | |||||||||||||||||||||||||||||||
Commercial business loans | 204 | 437 | |||||||||||||||||||||||||||||||
$ | 9,019 | 11,079 | |||||||||||||||||||||||||||||||
The Company uses several metrics as credit quality indicators of current or potential risks as part of the ongoing monitoring of credit quality of its loan portfolio. The credit quality indicators are periodically reviewed and updated on a case-by-case basis. The Company uses the following definitions for the internal risk rating grades, listed from the least risk to the highest risk. | |||||||||||||||||||||||||||||||||
Pass: These loans range from minimal credit risk to average, however, still acceptable credit risk. | |||||||||||||||||||||||||||||||||
Special mention: A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. | |||||||||||||||||||||||||||||||||
Substandard: A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. | |||||||||||||||||||||||||||||||||
Doubtful: A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. | |||||||||||||||||||||||||||||||||
The Company uses the following definitions in the tables below: | |||||||||||||||||||||||||||||||||
Nonperforming: Loans on nonaccrual status plus loans greater than 90 days past due still accruing interest. | |||||||||||||||||||||||||||||||||
Performing: All current loans plus loans less than 90 days past due. | |||||||||||||||||||||||||||||||||
The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of March 31, 2014 and December 31, 2013. | |||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Internal Risk Rating Grades: | |||||||||||||||||||||||||||||||||
Pass | $ | 195,547 | 23,681 | 233,914 | 59,404 | 2,832 | 41,617 | 556,995 | |||||||||||||||||||||||||
Special Mention | 1,052 | — | 10,712 | 290 | — | 939 | 12,993 | ||||||||||||||||||||||||||
Substandard | 4,071 | — | 5,271 | 426 | 7 | 204 | 9,979 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
Performing | $ | 196,829 | 23,681 | 245,326 | 59,723 | 2,832 | 42,557 | 570,948 | |||||||||||||||||||||||||
Nonperforming: | |||||||||||||||||||||||||||||||||
90 days or more and still accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Nonaccrual | 3,841 | — | 4,571 | 396 | 7 | 204 | 9,019 | ||||||||||||||||||||||||||
Total nonperforming | 3,841 | — | 4,571 | 396 | 7 | 204 | 9,019 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Internal Risk Rating Grades: | |||||||||||||||||||||||||||||||||
Pass | $ | 177,878 | 23,217 | 231,269 | 58,563 | 2,795 | 24,823 | 518,545 | |||||||||||||||||||||||||
Special Mention | 1,679 | — | 10,633 | 295 | — | 286 | 12,893 | ||||||||||||||||||||||||||
Substandard | 4,179 | 125 | 5,965 | 1,246 | 20 | 437 | 11,972 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 | |||||||||||||||||||||||||
Performing | $ | 179,834 | 23,217 | 242,753 | 58,623 | 2,795 | 25,109 | 532,331 | |||||||||||||||||||||||||
Nonperforming: | |||||||||||||||||||||||||||||||||
90 days or more and still accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Nonaccrual | 3,902 | 125 | 5,114 | 1,481 | 20 | 437 | 11,079 | ||||||||||||||||||||||||||
Total nonperforming | 3,902 | 125 | 5,114 | 1,481 | 20 | 437 | 11,079 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 | |||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
At March 31, 2014, there were $23.0 million in loans designated as troubled debt restructurings of which $15.7 million were accruing. At December 31, 2013, there were $23.7 million in loans designated as troubled debt restructurings of which $16.1 million were accruing. | |||||||||||||||||||||||||||||||||
There were no loans designated as troubled debt restructings during the three months ended March 31, 2014 or 2013. | |||||||||||||||||||||||||||||||||
No loans previously restructured in the twelve months prior to March 31, 2014 and 2013 went into default during the period ended March 31, 2014 and 2013. | |||||||||||||||||||||||||||||||||
Loans serviced for the benefit of others under loan participation arrangements amounted to $2.2 million and $2.3 million at March 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||||||||||
The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. |
REAL_ESTATE_ACQUIRED_THROUGH_F
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | ' | ||||||||
NOTE 5 – REAL ESTATE ACQUIRED THROUGH FORECLOSURE | |||||||||
The following presents summarized activity in other real estate owned for the periods ended March 31, 2014 and December 31, 2013: | |||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 6,273 | 6,284 | ||||||
Additions | 837 | 4,140 | |||||||
Sales | (1,129 | ) | (3,302 | ) | |||||
Write downs | (239 | ) | (849 | ) | |||||
Balance at end of year | $ | 5,742 | 6,273 | ||||||
A summary of the composition of real estate acquired through foreclosure follows: | |||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Real estate loans: | |||||||||
One-to-four family | $ | 122 | 959 | ||||||
Commercial real estate | 1,548 | 1,781 | |||||||
Construction and development | 4,072 | 3,533 | |||||||
$ | 5,742 | 6,273 |
DEPOSITS
DEPOSITS | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
DEPOSITS | ' | ||||||||
NOTE 6 - DEPOSITS | |||||||||
Deposits outstanding by type of account at March 31, 2014 and December 31, 2013 are summarized as follows: | |||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Noninterest-bearing demand accounts | $ | 88,105 | 83,500 | ||||||
Interest-bearing demand accounts | 105,457 | 92,067 | |||||||
Savings accounts | 25,153 | 17,816 | |||||||
Money market accounts | 218,861 | 220,915 | |||||||
Certificates of deposit: | |||||||||
Less than $100,000 | 214,772 | 195,239 | |||||||
$100,000 or more | 93,320 | 88,044 | |||||||
Total certificates of deposit | 308,092 | 283,283 | |||||||
Total deposits | $ | 745,668 | 697,581 | ||||||
The aggregate amount of brokered certificates of deposit was $80.9 million and $61.8 million at March 31, 2014 and December 31, 2013, respectively. Brokered certificates of deposit are included in the table above under certificates of deposit less than $100,000. The aggregate amount of institutional certificates of deposit was $38.2 million and $40.0 million at March 31, 2014 and December 31, 2013, respectively. Interest expense related to certificates of deposit over $100,000 was $178,000 and $158,000 for the three months ended March 31, 2014 and 2013, respectively. |
ESTIMATED_FAIR_VALUE_OF_FINANC
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
NOTE 7 – ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||||
Current accounting literature requires disclosures about the fair value of all financial instruments whether or not recognized in the balance sheet, for which it is practicable to estimate the value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized through immediate settlement of the instrument. Certain items are specifically excluded from disclosure requirements, including the Company’s stock, premises and equipment, accrued interest receivable and payable and other assets and liabilities. | |||||||||||||||||||||
The fair value of a financial instrument is an amount at which the asset or obligation could be exchanged in a current transaction between willing parties, other than in a forced sale. Fair values are estimated at a specific point in time based on relevant market information and information about the financial instruments. Because no market value exists for a significant portion of the financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. | |||||||||||||||||||||
The Company has used management’s best estimate of fair value based on the above assumptions. Thus the fair values presented may not be the amounts that could be realized in an immediate sale or settlement of the instrument. In addition, any income taxes or other expenses that would be incurred in an actual sale or settlement are not taken into consideration in the fair values presented. | |||||||||||||||||||||
The Company determines the fair value of its financial instruments based on the fair value hierarchy established under ASC 820-10, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the financial instrument’s fair value measurement in its entirety. There are three levels of inputs that may be used to measure fair value. The three levels of inputs of the valuation hierarchy are defined below: | |||||||||||||||||||||
Level 1 | Quoted prices (unadjusted) in active markets for identical assets and liabilities for the instrument or security to be valued. Level 1 assets include marketable equity securities as well as U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. | ||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active, or model-based valuation techniques for which all significant assumptions are derived principally from or corroborated by observable market data. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined by using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. U.S. Government sponsored agency securities, mortgage-backed securities issued by U.S. Government sponsored enterprises and agencies, obligations of states and municipalities, collateralized mortgage obligations issued by U.S. Government sponsored enterprises, and mortgage loans held-for-sale are generally included in this category. Certain private equity investments that invest in publicly traded companies are also considered Level 2 assets. | ||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little, if any, market activity for the asset or liability. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow models and similar techniques, and may also include the use of market prices of assets or liabilities that are not directly comparable to the subject asset or liability. These methods of valuation may result in a significant portion of the fair value being derived from unobservable assumptions that reflect The Company’s own estimates for assumptions that market participants would use in pricing the asset or liability. This category primarily includes collateral-dependent impaired loans, other real estate, certain equity investments, and certain private equity investments. | ||||||||||||||||||||
Cash and due from banks - The carrying amounts of these financial instruments approximate fair value. All mature within 90 days and present no anticipated credit concerns. | |||||||||||||||||||||
Interest-bearing cash - The carrying amounts of these financial instruments approximate fair value. | |||||||||||||||||||||
Securities available-for-sale and securities held to maturity – Fair values for investment securities available-for-sale and securities held to maturity are based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. | |||||||||||||||||||||
FHLB stock and other non-marketable equity securities - The carrying amounts of these financial instruments approximate fair value. | |||||||||||||||||||||
Mortgage loans held for sale – Mortgage loans held for sale are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Mortgage loans held for sale are classified within Level 2 of the valuation hierarchy. | |||||||||||||||||||||
Loans receivable - For variable rate loans that reprice frequently and have no significant change in credit risk, estimated fair values are based on carrying values and are classified as Level 2. Estimated fair values for certain mortgage loans, credit card loans, and other consumer loans are based on quoted market prices of similar loans sold in conjunction with securitization transactions, adjusted for differences in loan characteristics and are classified as Level 2. Estimated fair values for commercial real estate and commercial loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and are classified as Level 2. Estimated fair values on impaired loans are estimated using discounted cash flow analyses or underlying collateral values, where applicable. Impaired loans not requiring a specific charge against the allowance represent loans for which the fair value of the expected repayments or collateral meet or exceed the recorded investment in the loan. At December 31, 2013 and 2012, substantially all of the total impaired loans were evaluated based on the fair value of the underlying collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. | |||||||||||||||||||||
Accrued interest receivable - The fair value approximates the carrying value. | |||||||||||||||||||||
Mortgage servicing rights - The Company initially measures servicing assets and liabilities retained related to the sale of residential loans held for sale (“mortgage servicing rights”) at fair value, if practicable. For subsequent measurement purposes, the Company measures servicing assets and liabilities based on the lower of cost or market. | |||||||||||||||||||||
Deposits - The estimated fair value of demand deposits, savings accounts, and money market accounts is the amount payable on demand at the reporting date. The estimated fair value of fixed maturity certificates of deposits is estimated by discounting the future cash flows using rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||
Bank Owned Life Insurance - The cash surrender value of bank owned life insurance policies held by the Bank approximates fair values of the policies. | |||||||||||||||||||||
Short-term borrowed funds - The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings maturing within 90 days approximate their fair values. Estimated fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Long-term debt - The estimated fair values of the Company’s long-term debt are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Derivative asset and liabilities – The primary use of derivative instruments are related to the mortgage banking activities of the Company. The Company’s wholesale mortgage banking subsidiary enters into interest rate lock commitments related to expected funding of residential mortgage loans at specified times in the future. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative instruments under applicable accounting guidance. As such, The Company records its interest rate lock commitments and forward loan sales commitments at fair value, determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, the mortgage subsidiary enters into contractual interest rate lock commitments to extend credit, if approved, at a fixed interest rate and with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage banking subsidiary. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to borrowers, the mortgage banking subsidiary enters into best efforts forward sales contracts with third party investors. The forward sales contracts lock in a price for the sale of loans similar to the specific interest rate lock commitments. Both the interest rate lock commitments to the borrowers and the forward sales contracts to the investors that extend through to the date the loan may close are derivatives, and accordingly, are marked to fair value through earnings. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. The fair value of the interest rate lock commitment is also derived from inputs that include guarantee fees negotiated with the agencies and private investors, buy-up and buy-down values provided by the agencies and private investors, and interest rate spreads for the difference between retail and wholesale mortgage rates. Management also applies fall-out ratio assumptions for those interest rate lock commitments for which we do not close a mortgage loan. The fall-out ratio assumptions are based on the mortgage subsidiary’s historical experience, conversion ratios for similar loan commitments, and market conditions. While fall-out tendencies are not exact predictions of which loans will or will not close, historical performance review of loan-level data provides the basis for determining the appropriate hedge ratios. In addition, on a periodic basis, the mortgage banking subsidiary performs analysis of actual rate lock fall-out experience to determine the sensitivity of the mortgage pipeline to interest rate changes from the date of the commitment through loan origination, and then period end, using applicable published mortgage-backed investment security prices. The expected fall-out ratios (or conversely the “pull-through” percentages) are applied to the determined fair value of the unclosed mortgage pipeline in accordance with GAAP. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. The fair value of the forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. These instruments are defined as Level 2 within the valuation hierarchy. | |||||||||||||||||||||
Derivative instruments not related to mortgage banking activities, including financial futures commitments and interest rate swap agreements that do not satisfy the hedge accounting requirements are recorded at fair value and are classified with resultant changes in fair value being recognized in noninterest income in the consolidated statement of operations. Fair values for these instruments are based on quoted market prices, when available. As such, the fair value adjustments for derivatives with fair values based on quoted market prices are recurring Level 1. | |||||||||||||||||||||
Commitments to extend credit – The carrying amounts of these commitments are considered to be a reasonable estimate of fair value because the commitments underlying interest rates are based upon current market rates. | |||||||||||||||||||||
Accrued interest payable - The fair value approximates the carrying value. | |||||||||||||||||||||
Off-balance sheet financial instruments – Contract values and fair values for off-balance sheet, credit-related financial instruments are based on estimated fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and counterparties’ credit standing. | |||||||||||||||||||||
The carrying amount and estimated fair value of the Company’s financial instruments at March 31, 2014 and December 31, 2013 are as follows: | |||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 6,553 | 6,553 | 6,553 | — | — | |||||||||||||||
Interest-bearing cash | 9,887 | 9,887 | 9,887 | — | — | ||||||||||||||||
Securities available for sale | 199,023 | 199,023 | — | 199,023 | — | ||||||||||||||||
Securities held to maturity | 24,242 | 25,076 | — | 15,683 | 9,393 | ||||||||||||||||
Federal Home Loan Bank stock | 3,380 | 3,380 | — | — | 3,380 | ||||||||||||||||
Other investments | 1,921 | 1,921 | — | — | 1,921 | ||||||||||||||||
Derivative assets | 1,216 | 1,216 | 247 | 969 | — | ||||||||||||||||
Loans held for sale | 31,899 | 32,153 | — | 32,153 | — | ||||||||||||||||
Loans receivable, net | 571,388 | 580,366 | — | 555,596 | 24,770 | ||||||||||||||||
Accrued interest receivable | 2,784 | 2,784 | — | 2,784 | — | ||||||||||||||||
Mortgage servicing rights | 10,003 | 15,938 | — | 15,938 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 745,668 | 744,363 | — | 744,363 | — | ||||||||||||||||
Short-term borrowed funds | 5,300 | 5,300 | — | 5,300 | — | ||||||||||||||||
Long-term debt | 69,465 | 66,085 | — | 66,085 | — | ||||||||||||||||
Derivative liabilities | — | — | — | — | — | ||||||||||||||||
Accrued interest payable | 324 | 324 | — | 324 | — | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 4,489 | 4,489 | 4,489 | — | — | |||||||||||||||
Interest-bearing cash | 34,176 | 34,176 | 34,176 | — | — | ||||||||||||||||
Securities available for sale | 167,535 | 167,535 | — | 167,535 | — | ||||||||||||||||
Securities held to maturity | 24,554 | 23,547 | — | 15,177 | 8,370 | ||||||||||||||||
Federal Home Loan Bank stock | 4,103 | 4,103 | — | — | 4,103 | ||||||||||||||||
Other investments | 1,858 | 1,858 | — | — | 1,858 | ||||||||||||||||
Derivative assets | 1,412 | 1,412 | 428 | 984 | — | ||||||||||||||||
Loans held for sale | 36,897 | 37,041 | — | 37,041 | — | ||||||||||||||||
Loans receivable, net | 535,221 | 524,142 | — | 497,045 | 27,097 | ||||||||||||||||
Accrued interest receivable | 2,802 | 2,802 | — | 2,802 | — | ||||||||||||||||
Mortgage servicing rights | 10,908 | 17,718 | — | 17,718 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 697,581 | 696,674 | — | 696,674 | — | ||||||||||||||||
Short-term borrowed funds | 10,300 | 10,300 | — | 10,300 | — | ||||||||||||||||
Long-term debt | 74,540 | 71,462 | — | 71,462 | — | ||||||||||||||||
Derivative liabilities | 55 | 55 | — | 55 | — | ||||||||||||||||
Accrued interest payable | 311 | 311 | — | 311 | — | ||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Notional | Estimated | Notional | Estimated | ||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Off-Balance Sheet Financial Instruments: | |||||||||||||||||||||
Commitments to extend credit | $ | 39,528 | — | 38,595 | — | ||||||||||||||||
Standby letters of credit | 445 | — | 526 | — | |||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | 131,955 | 438 | — | — | |||||||||||||||||
Mortgage loan forward sales commitments | 20,992 | 261 | 20,516 | 106 | |||||||||||||||||
Mortgage-backed securities forward sales commitments | 107,000 | 270 | 88,000 | 878 | |||||||||||||||||
Interest rate swaps | 20,000 | 247 | 20,000 | 428 | |||||||||||||||||
Derivative liabilities - | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | 103,614 | 55 | |||||||||||||||||
In determining appropriate levels, the Company performs a detailed analysis of the assets and liabilities that are subject to fair value disclosures. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. | |||||||||||||||||||||
Following is a description of valuation methodologies used for assets recorded at fair value on a recurring and non-recurring basis. | |||||||||||||||||||||
Investment Securities Available-for-sale | |||||||||||||||||||||
Measurement is on a recurring basis upon quoted market prices, if available. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. At March 31, 2014 and December 31, 2013, the Company’s investment securities available-for-sale are recurring Level 2. | |||||||||||||||||||||
Mortgage loans held for sale | |||||||||||||||||||||
Mortgage loans held for sale are recorded at either fair value, if elected, or the lower of cost or fair value on an individual loan basis. Origination fees and costs for loans held for sale recorded at lower of cost or market are capitalized in the basis of the loan and are included in the calculation of realized gains and losses upon sale. Origination fees and costs are recognized in earnings at the time of origination for loans held for sale that are recorded at fair value. Fair value is derived from observable current market prices, when available, and includes loan servicing value. When observable market prices are not available, the Company uses judgment and estimates fair value using internal models, in which the Company uses its best estimates of assumptions it believes would be used by market participants in estimating fair value. Mortgage loans held for sale are classified within Level 2 of the valuation hierarchy. | |||||||||||||||||||||
Derivative Assets and Liabilities | |||||||||||||||||||||
The primary use of derivative instruments is related to the mortgage banking activities of the Company. The Company’s wholesale mortgage banking subsidiary enters into interest rate lock commitments related to expected funding of residential mortgage loans at specified times in the future. Interest rate lock commitments that relate to the origination of mortgage loans that will be held-for-sale are considered derivative instruments under applicable accounting guidance. As such, the Company records its interest rate lock commitments and forward loan sales commitments at fair value, determined as the amount that would be required to settle each of these derivative financial instruments at the balance sheet date. In the normal course of business, the mortgage subsidiary enters into contractual interest rate lock commitments to extend credit, if approved, at a fixed interest rate and with fixed expiration dates. The commitments become effective when the borrowers “lock-in” a specified interest rate within the time frames established by the mortgage banking subsidiary. Market risk arises if interest rates move adversely between the time of the interest rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing interest rate lock commitments to borrowers, the mortgage banking subsidiary enters into best efforts forward sales contracts with third party investors. The forward sales contracts lock in a price for the sale of loans similar to the specific interest rate lock commitments. Both the interest rate lock commitments to the borrowers and the forward sales contracts to the investors that extend through to the date the loan may close are derivatives, and accordingly, are marked to fair value through earnings. In estimating the fair value of an interest rate lock commitment, the Company assigns a probability to the interest rate lock commitment based on an expectation that it will be exercised and the loan will be funded. The fair value of the interest rate lock commitment is derived from the fair value of related mortgage loans, which is based on observable market data and includes the expected net future cash flows related to servicing of the loans. The fair value of the interest rate lock commitment is also derived from inputs that include guarantee fees negotiated with the agencies and private investors, buy-up and buy-down values provided by the agencies and private investors, and interest rate spreads for the difference between retail and wholesale mortgage rates. Management also applies fall-out ratio assumptions for those interest rate lock commitments for which we do not close a mortgage loan. The fall-out ratio assumptions are based on the mortgage subsidiary’s historical experience, conversion ratios for similar loan commitments, and market conditions. While fall-out tendencies are not exact predictions of which loans will or will not close, historical performance review of loan-level data provides the basis for determining the appropriate hedge ratios. In addition, on a periodic basis, the mortgage banking subsidiary performs analysis of actual rate lock fall-out experience to determine the sensitivity of the mortgage pipeline to interest rate changes from the date of the commitment through loan origination, and then period end, using applicable published mortgage-backed investment security prices. The expected fall-out ratios (or conversely the “pull-through” percentages) are applied to the determined fair value of the unclosed mortgage pipeline in accordance with GAAP. Changes to the fair value of interest rate lock commitments are recognized based on interest rate changes, changes in the probability that the commitment will be exercised, and the passage of time. The fair value of the forward sales contracts to investors considers the market price movement of the same type of security between the trade date and the balance sheet date. These instruments are defined as Level 2 within the valuation hierarchy. | |||||||||||||||||||||
Derivative instruments not related to mortgage banking activities, including financial futures commitments and interest rate swap agreements that do not satisfy the hedge accounting requirements are recorded at fair value and are classified with resultant changes in fair value being recognized in noninterest income in the consolidated statement of operations. Fair values for these instruments are based on quoted market prices, when available. As such, the fair value adjustments for derivatives with fair values based on quoted market prices in an active market are recurring Level 1. | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
Loans that are considered impaired are recorded at fair value on a non-recurring basis. Once a loan is considered impaired, the fair value is measured using one of several methods, including collateral liquidation value, market value of similar debt and discounted cash flows. Those impaired loans not requiring a specific charge against the allowance represent loans for which the fair value of the expected repayments or collateral meet or exceed the recorded investment in the loan. At March 31, 2014 and December 31, 2013, substantially all of the total impaired loans were evaluated based on the fair value of the underlying collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. | |||||||||||||||||||||
Other Real Estate Owned (OREO) | |||||||||||||||||||||
OREO is carried at the lower of carrying value or fair value on a non-recurring basis. Fair value is based upon independent appraisals or management’s estimation of the collateral and is considered a Level 3 measurement. When the OREO value is based upon a current appraisal or when a current appraisal is not available or there is estimated further impairment, the measurement is considered a Level 3 measurement. | |||||||||||||||||||||
Brokered Deposits | |||||||||||||||||||||
Fair Value accounting was elected for a brokered deposit entered into during 2013 as part of the Company’s interest rate risk management. Fair value of the brokered deposit is derived from quoted market prices. If quoted market prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for prepayment assumptions, projected credit losses, and liquidity. | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||
Quoted market price | Significant other | Significant other | |||||||||||||||||||
in active markets | observable inputs | unobservable inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||||||
Municipal securities | $ | — | 37,458 | — | |||||||||||||||||
US government agencies | — | 7,939 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | — | 96,265 | — | ||||||||||||||||||
Non-agency | — | 57,361 | — | ||||||||||||||||||
Loans held for sale | — | 32,153 | — | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | 438 | — | ||||||||||||||||||
Mortgage loan forward sales commitments | — | 261 | — | ||||||||||||||||||
Mortgage-backed securities forward sales commitments | — | 270 | — | ||||||||||||||||||
Interest rate swaps | 247 | — | — | ||||||||||||||||||
Brokered deposits | — | 4,948 | — | ||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | — | ||||||||||||||||||
Total | $ | 247 | 237,093 | — | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||||||
Municipal securities | $ | — | 38,499 | — | |||||||||||||||||
US government agencies | — | 5,175 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | — | 69,929 | — | ||||||||||||||||||
Non-agency | — | 53,932 | — | ||||||||||||||||||
Loans held for sale | — | 37,041 | — | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | — | ||||||||||||||||||
Mortgage loan forward sales commitments | — | 106 | — | ||||||||||||||||||
Mortgage-backed securities forward sales commitments | — | 878 | — | ||||||||||||||||||
Interest rate swaps | 428 | — | — | ||||||||||||||||||
Brokered deposits | — | 4,948 | — | ||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | 55 | — | ||||||||||||||||||
Total | $ | 428 | 210,563 | — | |||||||||||||||||
Assets measured at fair value on a nonrecurring basis are as follows as of March 31, 2014 and December 31, 2013: | |||||||||||||||||||||
Quoted market price | Significant other | Significant other | |||||||||||||||||||
in active markets | observable inputs | unobservable inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||
One-to-four family | $ | — | — | 5,580 | |||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||
Commercial real estate | — | — | 16,474 | ||||||||||||||||||
Construction and development | — | — | 407 | ||||||||||||||||||
Consumer loans | — | — | 20 | ||||||||||||||||||
Commercial business loans | — | — | 2,289 | ||||||||||||||||||
Real estate owned: | |||||||||||||||||||||
One-to-four family | — | — | 122 | ||||||||||||||||||
Commercial real estate | — | — | 1,548 | ||||||||||||||||||
Construction and development | — | — | 4,072 | ||||||||||||||||||
Total | $ | — | — | 30,512 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||
One-to-four family | $ | — | — | 6,117 | |||||||||||||||||
Home equity | — | — | 125 | ||||||||||||||||||
Commercial real estate | — | — | 16,953 | ||||||||||||||||||
Construction and development | — | — | 1,328 | ||||||||||||||||||
Consumer loans | — | — | 20 | ||||||||||||||||||
Commercial business loans | — | — | 2,554 | ||||||||||||||||||
Real estate owned: | |||||||||||||||||||||
One-to-four family | — | — | 959 | ||||||||||||||||||
Commercial real estate | — | — | 1,781 | ||||||||||||||||||
Construction and development | — | — | 3,533 | ||||||||||||||||||
Total | $ | — | — | 33,370 | |||||||||||||||||
The Company predominantly lends with real estate serving as collateral on a substantial majority of loans. Loans that are deemed to be impaired are primarily valued at fair values of the underlying real estate collateral. | |||||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or non-recurring basis as of March 31, 2014 and December 31, 2013, the significant unobservable inputs used in the fair value measurements were as follows: | |||||||||||||||||||||
March 31, 2014 and December 31, 2013 | |||||||||||||||||||||
Significant | Significant Unobservable | ||||||||||||||||||||
Valuation Technique | Observable Inputs | Inputs | |||||||||||||||||||
Impaired Loans | Appraisal Value | Appraisals and or sales of | Appraisals discounted 10% to 20% for | ||||||||||||||||||
comparable properties | sales commissions and other holding costs | ||||||||||||||||||||
Real estate owned | Appraisal Value/ | Appraisals and or sales of | Appraisals discounted 10% to 20% for | ||||||||||||||||||
Comparison Sales/ | comparable properties | sales commissions and other holding costs | |||||||||||||||||||
Other estimates |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings per common share: | ' | ||||||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||||||
NOTE 8 - EARNINGS PER SHARE | |||||||||||||||||
Basic earnings per share are calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares outstanding plus the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. Diluted earnings per share include the effects of outstanding stock options and restricted stock issued by the Company, if dilutive. The number of additional shares is calculated by assuming that outstanding stock options were exercised and that the proceeds from such exercises and vesting were used to acquire shares of common stock at the average market price during the reporting period. | |||||||||||||||||
As stated in Note 1, on January 15, 2014, the Board of Directors of the Company declared a two-for-one stock split to stockholders of record dated February 10, 2014, payable on February 28, 2014. All share, earnings per share, and per share data have been retroactively adjusted to reflect this stock split for all periods presented in accordance with GAAP. | |||||||||||||||||
The following is a summary of the reconciliation of average shares outstanding for the period ended March 31, 2014 and 2013: | |||||||||||||||||
At March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding | 3,851,426 | 3,851,426 | 3,837,984 | 3,837,984 | |||||||||||||
Effect of dilutive securities | — | 84,661 | — | — | |||||||||||||
Average shares outstanding | 3,851,426 | 3,936,087 | 3,837,984 | 3,837,984 | |||||||||||||
The average market price used in calculating the dilutive securities under the treasury stock method for the periods ended March 31, 2014 and 2013 was $18.58 and $9.46, respectively. For the periods ended March 31, 2014 and 2013, 1,000 and 16,480 option shares, respectively, were excluded from the calculation of diluted earnings per share during the period because the exercise prices were greater than the average market price of the common shares, and therefore were deemed not to be dilutive. The Company does not have an actively traded market for its shares and, accordingly, the average market price used in calculating dilutive securities is based either on a very limited number of transactions or on a valuation model. |
SUPPLEMENTAL_SEGMENT_INFORMATI
SUPPLEMENTAL SEGMENT INFORMATION | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
SUPPLEMENTAL SEGMENT INFORMATION | ' | ||||||||||||||||||||
NOTE 9 – SUPPLEMENTAL SEGMENT INFORMATION | |||||||||||||||||||||
The Company has three reportable segments: community banking, wholesale mortgage banking (“mortgage banking”) and other. The community banking segment provides traditional banking services offered through CresCom Bank. The mortgage banking segment provides mortgage loan origination and servicing offered through Crescent Mortgage. The other segment provides managerial and operational support to the other business segments through Carolina Services and Carolina Financial. | |||||||||||||||||||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on net income. | |||||||||||||||||||||
The Company accounts for intersegment revenues and expenses as if the revenue/expense transactions were generated to third parties, that is, at current market prices. | |||||||||||||||||||||
The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment has different types and levels of credit and interest rate risk. | |||||||||||||||||||||
The following tables present selected financial information for the Company’s reportable business segments for the periods ended March 31, 2014 and 2013: | |||||||||||||||||||||
Community | Mortgage | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Banking | Banking | Other | Eliminations | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest income | $ | 8,091 | 285 | 4 | 31 | 8,411 | |||||||||||||||
Interest expense | 1,197 | — | 134 | — | 1,331 | ||||||||||||||||
Net interest income (expense) | 6,894 | 285 | (130 | ) | 31 | 7,080 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | ||||||||||||||||
Noninterest income (expense) from external customers | 915 | 4,444 | 10 | — | 5,369 | ||||||||||||||||
Intersegment noninterest income | — | 72 | 1,510 | (1,582 | ) | — | |||||||||||||||
Noninterest expense | 4,114 | 3,846 | 1,646 | — | 9,606 | ||||||||||||||||
Intersegment noninterest expense | 1,270 | 240 | — | (1,510 | ) | — | |||||||||||||||
Income (loss) before income taxes | 2,425 | 715 | (256 | ) | (41 | ) | 2,843 | ||||||||||||||
Income tax expense (benefit) | 735 | 275 | (95 | ) | (16 | ) | 899 | ||||||||||||||
Net income (loss) | $ | 1,690 | 440 | (161 | ) | (25 | ) | 1,944 | |||||||||||||
Assets | $ | 918,290 | 58,654 | 103,667 | (161,811 | ) | 918,800 | ||||||||||||||
Loans receivable, net | 569,013 | 3,185 | — | (810 | ) | 571,388 | |||||||||||||||
Loans held for sale | 421 | 31,478 | — | — | 31,899 | ||||||||||||||||
Deposits | 753,919 | — | — | (8,251 | ) | 745,668 | |||||||||||||||
Borrowed funds | 59,301 | — | 15,465 | (1 | ) | 74,765 | |||||||||||||||
Community | Mortgage | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | Banking | Banking | Other | Eliminations | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest income | $ | 7,816 | 393 | 4 | 16 | 8,229 | |||||||||||||||
Interest expense | 1,276 | 47 | 181 | (2 | ) | 1,502 | |||||||||||||||
Net interest income (expense) | 6,540 | 346 | (177 | ) | 18 | 6,727 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | ||||||||||||||||
Noninterest income (expense) from external customers | 705 | 12,655 | 23 | — | 13,383 | ||||||||||||||||
Intersegment noninterest income | 42 | 127 | 1,453 | (1,622 | ) | — | |||||||||||||||
Noninterest expense | 5,393 | 6,324 | 1,306 | — | 13,023 | ||||||||||||||||
Intersegment noninterest expense | 1,213 | 282 | — | (1,495 | ) | — | |||||||||||||||
Income (loss) before income taxes | 681 | 6,522 | (7 | ) | (109 | ) | 7,087 | ||||||||||||||
Income tax expense (benefit) | 275 | 2,429 | (3 | ) | (37 | ) | 2,664 | ||||||||||||||
Net income (loss) | $ | 406 | 4,093 | (4 | ) | (72 | ) | 4,423 | |||||||||||||
Assets | $ | 840,776 | 60,235 | 92,997 | (136,855 | ) | 857,153 | ||||||||||||||
Loans receivable, net | 500,526 | 1,565 | — | (716 | ) | 501,375 | |||||||||||||||
Loans held for sale | 63,185 | 34,115 | — | — | 97,300 | ||||||||||||||||
Deposits | 665,942 | — | — | (2,134 | ) | 663,808 | |||||||||||||||
Borrowed funds | 79,601 | 3,486 | 18,315 | (151 | ) | 101,251 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Organization | |
Carolina Financial Corporation (“Carolina Financial” or the “Company”), incorporated under the laws of the State of Delaware, is a bank holding company with two wholly-owned subsidiaries, CresCom Bank (the “Bank”) and Carolina Services Corporation of Charleston (“Carolina Services”). Effective July 31, 2012, Carolina Financial combined its wholly-owned subsidiary bank, Community FirstBank of Charleston (“Community FirstBank”), with and into its other wholly-owned subsidiary bank, Crescent Bank. In conjunction with this internal reorganization, Crescent Bank’s name was changed to CresCom Bank. Crescent Mortgage Company (“Crescent Mortgage”), formerly a wholly-owned subsidiary of Community FirstBank, became a wholly-owned subsidiary of CresCom Bank. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, CresCom Bank and Carolina Services. In consolidation, all material intercompany accounts and transactions have been eliminated. The results of operations of the businesses acquired in transactions accounted for as purchases are included only from the dates of acquisition. All majority-owned subsidiaries are consolidated unless control is temporary or does not rest with the Company. | |
At March 31, 2014 and December 31, 2013, statutory business trusts (“Trusts”) created by the Company had outstanding trust preferred securities with an aggregate par value of $15,000,000. The principal assets of the Trusts are $15,465,000 of the Company’s subordinated debentures with identical rates of interest and maturities as the trust preferred securities. The Trusts have issued $465,000 of common securities to the Company and are included in other investments in the accompanying consolidated balance sheets. The Trusts are not consolidated subsidiaries of the Company. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and notes have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with GAAP. Because the accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP, they should be read in conjunction with the Company’s audited consolidated financial statements and accompanying footnotes included in the Company’s Registration Statement on Form 10, as amended (File No. 000-19029) (the “Form 10”) filed with the Securities and Exchange Commission (“SEC”) on April 1, 2014. There have been no significant changes to the accounting polices as disclosed in the Company’s Form 10. | |
In management’s opinion, the accompanying unaudited condensed consolidated financial statements reflect all normal, recurring adjustments necessary to present fairly the financial position of the Company as of March 31, 2014 and December 31, 2013, and the results of its operations and cash flows for the three-months ended March 31, 2014 and 2013. Operating results for the three-month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year or for other interim periods. | |
Management's Estimates | ' |
Management’s Estimates | |
The financial statements are prepared in accordance with GAAP in the United States of America which require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, including valuation for impaired loans, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans, the valuation of securities, the valuation of derivative instruments, the valuation of mortgage servicing rights, the determination of the reserve for mortgage loan repurchase losses, asserted and unasserted legal claims and deferred tax assets or liabilities. In connection with the determination of the allowance for loan losses and foreclosed real estate, management obtains independent appraisals for significant properties. Management must also make estimates in determining the estimated useful lives and methods for depreciating premises and equipment. | |
Management uses available information to recognize losses on loans and foreclosed real estate. However, future additions to the allowance may be necessary based on changes in local economic conditions. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowances for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these factors, it is reasonably possible that the allowances for loan losses and foreclosed real estate may change materially in the near term. | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per share (“EPS”) represents income available to common stockholders divided by the weighted-average number of shares outstanding during the year. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock (non-vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the period of the Company’s stock. Weighted-average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. | |
On January 15, 2014, the Board of Directors of the Company declared a two-for-one stock split to stockholders of record dated February 10, 2014, payable on February 28, 2014. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect this stock split for all periods presented in accordance with GAAP. | |
Subsequent Events | ' |
Subsequent Events | |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the statement of financial condition but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events occurred requiring accrual or disclosure except for the following: | |
On April 23, 2014, the stockholders of the Company approved an increase in the number of authorized common shares from 6,800,000 to 10,000,000 and an increase in the number of authorized preferred shares from 200,000 to 1,000,000. | |
On April 23, 2014, the Company declared a $0.05 per share dividend to stockholders of record on June 20, 2014, payable July 10, 2014. | |
Reclassification | ' |
Reclassification | |
Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholders’ equity or the net income as previously reported. | |
Recently Issued Accounting Pronouncements | ' |
Recently Issued Accounting Pronouncements | |
The Balance Sheet topic of the ASC was amended in December 2011 for companies with financial instruments and derivative instruments that offset or are subject to a master netting agreement. The amendments require disclosure of both gross information and net information about instruments and transactions eligible for offset or subject to an agreement similar to a master netting agreement. The amendments were effective for reporting periods beginning on or after January 1, 2013 and required retrospective presentation for all comparative periods presented. Additionally, in January 2013 the FASB clarified that the amendments apply only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in GAAP or subject to a master netting arrangement or similar agreement. These amendments did not have a material effect on the Company’s financial statements. | |
The FASB amended the Comprehensive Income topic of the ASC in February 2013. The amendments address reporting of amounts reclassified out of accumulated other comprehensive income. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments will be effective for the Company on a prospective basis for reporting periods beginning after December 15, 2013. Earlier adoption is permitted. The Company does not expect that these amendments will have a material effect on its financial statements. | |
In February 2013, the FASB also amended the Financial Instruments topic of the ASC to address the scope and applicability of certain disclosures to nonpublic companies. The amendments clarify that the requirement to disclose “the level of the fair value hierarchy within the fair value measurements are categorized in their entirety (Level 1, 2, or 3)” does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position but for which fair value is disclosed. The Company does not expect these amendments to have a material effect on its financial statements. | |
In April 2013, the FASB issued guidance addressing application of the liquidation basis of accounting. The guidance is intended to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments will be effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein, and those requirements should be applied prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Company does not expect these amendments to have any effect on its financial statements. | |
In December 2013, the FASB amended the Master Glossary of the FASB Codification to define “Public Business Entity” to minimize the inconsistency and complexity of having multiple definitions of, or a diversity in practice as to what constitutes, a nonpublic entity and public entity within U.S. GAAP. The amendment does not affect existing requirements, however it will be used by the FASB, the Private Company Council (“PCC”), and the Emerging Issues Task Force (“EITF”) in specifying the scope of future financial accounting and reporting guidance. The Company does not expect this amendment to have any effect on its financial statements. | |
In January 2014, the FASB amended the Receivables—Troubled Debt Restructurings by Creditors subtopic of the Codification to address the reclassification of consumer mortgage loans collateralized by residential real estate upon foreclosure. The amendments clarify the criteria for concluding that an in-substance repossession or foreclosure has occurred, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan. The amendments also outline interim and annual disclosure requirements. The amendments will be effective for the Company’s annual reporting periods beginning after December 15, 2014. Companies are allowed to use either a modified retrospective transition method or a prospective transition method when adopting this update. Early adoption is permitted. The Company does not expect these amendments to have a material effect on its financial statements. | |
Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
SECURITIES_Tables
SECURITIES (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Schedule of investment securities available for sale | ' | ||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 37,474 | 687 | (703 | ) | 37,458 | 39,790 | 99 | (1,390 | ) | 38,499 | ||||||||||||||||||||||||||||||
US government agencies | 7,975 | — | (36 | ) | 7,939 | 5,199 | — | (24 | ) | 5,175 | |||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 94,331 | 2,038 | (104 | ) | 96,265 | 68,813 | 1,433 | (317 | ) | 69,929 | |||||||||||||||||||||||||||||||
Non-agency | 56,619 | 914 | (172 | ) | 57,361 | 53,195 | 826 | (89 | ) | 53,932 | |||||||||||||||||||||||||||||||
Total mortgage-backed securities | 150,950 | 2,952 | (276 | ) | 153,626 | 122,008 | 2,259 | (406 | ) | 123,861 | |||||||||||||||||||||||||||||||
Total | $ | 196,399 | 3,639 | (1,015 | ) | 199,023 | 166,997 | 2,358 | (1,820 | ) | 167,535 | ||||||||||||||||||||||||||||||
Schedule of investment securities held to maturity | ' | ||||||||||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Dec-13 | ||||||||||||||||||||||||||||||||||||||||
Gross | Gross | Gross | Gross | ||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Value | Cost | Gains | Losses | Value | ||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 15,442 | 355 | (114 | ) | 15,683 | 15,488 | 30 | (341 | ) | 15,177 | ||||||||||||||||||||||||||||||
Asset-backed securities | 8,800 | 3,002 | (2,409 | ) | 9,393 | 9,066 | 2,107 | (2,803 | ) | 8,370 | |||||||||||||||||||||||||||||||
Total | $ | 24,242 | 3,357 | (2,523 | ) | 25,076 | 24,554 | 2,137 | (3,144 | ) | 23,547 | ||||||||||||||||||||||||||||||
Schedule of unrealized losses related to the trust preferred securities that were recognized within other comprehensive income at the time of transfer to held-to-maturity | ' | ||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Not Recognized in | |||||||||||||||||||||||||||||||||||||||||
Recognized in OCI | OCI | ||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||
Collateral- | |||||||||||||||||||||||||||||||||||||||||
Purchased | Cumula- | Carrying | Amortized | Estimated | ization | ||||||||||||||||||||||||||||||||||||
Face Value | tive OTTI | Value | Gains | Losses | Cost | Gains | Losses | Fair Value | Percentage | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||||||||||||||||||
Trust Preferred Securities | |||||||||||||||||||||||||||||||||||||||||
Total A-Class | $ | 2,487 | — | 2,487 | — | (579 | ) | 1,908 | 365 | (89 | ) | 2,184 | 172%-378% | ||||||||||||||||||||||||||||
Total B-Class | 11,833 | (2,635 | ) | 9,198 | — | (2,541 | ) | 6,657 | 1,712 | (2,320 | ) | 6,049 | 94%-104% | ||||||||||||||||||||||||||||
Total C-Class | 2,698 | (1,340 | ) | 1,358 | — | (1,123 | ) | 235 | 925 | — | 1,160 | 86%-86% | |||||||||||||||||||||||||||||
$ | 17,018 | (3,975 | ) | 13,043 | — | (4,243 | ) | 8,800 | 3,002 | (2,409 | ) | 9,393 | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Not Recognized in | |||||||||||||||||||||||||||||||||||||||||
Recognized in OCI | OCI | ||||||||||||||||||||||||||||||||||||||||
Gross Unrealized | Gross Unrealized | ||||||||||||||||||||||||||||||||||||||||
Collateral- | |||||||||||||||||||||||||||||||||||||||||
Purchased | Cumula- | Carrying | Amortized | Estimated | ization | ||||||||||||||||||||||||||||||||||||
Face Value | tive OTTI | Value | Gains | Losses | Cost | Gains | Losses | Fair Value | Percentage | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Held-to-Maturity: | |||||||||||||||||||||||||||||||||||||||||
Trust Preferred Securities | |||||||||||||||||||||||||||||||||||||||||
Total A-Class | $ | 2,841 | — | 2,841 | — | (586 | ) | 2,255 | 354 | (99 | ) | 2,510 | 164% - 324% | ||||||||||||||||||||||||||||
Total B-Class | 11,804 | (2,635 | ) | 9,169 | — | (2,569 | ) | 6,600 | 1,190 | (2,704 | ) | 5,086 | 94% - 98% | ||||||||||||||||||||||||||||
Total C-Class | 2,688 | (1,340 | ) | 1,348 | — | (1,137 | ) | 211 | 563 | — | 774 | 83% - 83% | |||||||||||||||||||||||||||||
$ | 17,333 | (3,975 | ) | 13,358 | — | (4,292 | ) | 9,066 | 2,107 | (2,803 | ) | 8,370 | |||||||||||||||||||||||||||||
Schedule of amortized costs and fair values of investment securities, by contractual maturity | ' | ||||||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Three to five years | $ | 510 | 505 | ||||||||||||||||||||||||||||||||||||||
Six to ten years | 15,621 | 15,501 | |||||||||||||||||||||||||||||||||||||||
After ten years | 180,268 | 183,017 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 196,399 | 199,023 | ||||||||||||||||||||||||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Three to five years | $ | 980 | 890 | ||||||||||||||||||||||||||||||||||||||
Six to ten years | 3,545 | 3,476 | |||||||||||||||||||||||||||||||||||||||
After ten years | 19,717 | 20,710 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 24,242 | 25,076 | ||||||||||||||||||||||||||||||||||||||
Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time | ' | ||||||||||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Cost | Value | Losses | Cost | Value | Losses | Cost | Value | Losses | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 14,907 | 14,365 | (542 | ) | 4,922 | 4,761 | (161 | ) | 19,829 | 19,126 | (703 | ) | ||||||||||||||||||||||||||||
US government agencies | 7,975 | 7,939 | (36 | ) | — | — | — | 7,975 | 7,939 | (36 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 8,239 | 8,135 | (104 | ) | — | — | — | 8,239 | 8,135 | (104 | ) | ||||||||||||||||||||||||||||||
Non-agency | 21,279 | 21,127 | (152 | ) | 2,314 | 2,294 | (20 | ) | 23,593 | 23,421 | (172 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 29,518 | 29,262 | (256 | ) | 2,314 | 2,294 | (20 | ) | 31,832 | 31,556 | (276 | ) | |||||||||||||||||||||||||||||
Total | $ | 52,400 | 51,566 | (834 | ) | 7,236 | 7,055 | (181 | ) | 59,636 | 58,621 | (1,015 | ) | ||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | — | — | — | 3,371 | 3,257 | (114 | ) | 3,371 | 3,257 | (114 | ) | |||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | 7,428 | 5,019 | (2,409 | ) | 7,428 | 5,019 | (2,409 | ) | ||||||||||||||||||||||||||||||
Total | $ | — | — | — | 10,799 | 8,276 | (2,523 | ) | 10,799 | 8,276 | (2,523 | ) | |||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||
Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | Amortized | Fair | Unrealized | |||||||||||||||||||||||||||||||||
Cost | Value | Losses | Cost | Value | Losses | Cost | Value | Losses | |||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 27,108 | 25,917 | (1,191 | ) | 3,157 | 2,958 | (199 | ) | 30,265 | 28,875 | (1,390 | ) | ||||||||||||||||||||||||||||
US government agencies | 5,199 | 5,175 | (24 | ) | — | — | — | 5,199 | 5,175 | (24 | ) | ||||||||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||||||||||||||||||
Agency | 27,140 | 26,823 | (317 | ) | — | — | — | 27,140 | 26,823 | (317 | ) | ||||||||||||||||||||||||||||||
Non-agency | 15,006 | 14,951 | (55 | ) | 3,660 | 3,626 | (34 | ) | 18,666 | 18,577 | (89 | ) | |||||||||||||||||||||||||||||
Total mortgage-backed securities | 42,146 | 41,774 | (372 | ) | 3,660 | 3,626 | (34 | ) | 45,806 | 45,400 | (406 | ) | |||||||||||||||||||||||||||||
Total | $ | 74,453 | 72,866 | (1,587 | ) | 6,817 | 6,584 | (233 | ) | 81,270 | 79,450 | (1,820 | ) | ||||||||||||||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||||||||||||||||||
Municipal securities | $ | 11,945 | 11,734 | (211 | ) | 2,177 | 2,047 | (130 | ) | 14,122 | 13,781 | (341 | ) | ||||||||||||||||||||||||||||
Asset-backed securities | — | — | — | 7,398 | 4,595 | (2,803 | ) | 7,398 | 4,595 | (2,803 | ) | ||||||||||||||||||||||||||||||
Total | $ | 11,945 | 11,734 | (211 | ) | 9,575 | 6,642 | (2,933 | ) | 21,520 | 18,376 | (3,144 | ) | ||||||||||||||||||||||||||||
Schedule of Cumulative credit related OTTI related to securities held-to-maturity | ' | ||||||||||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Balance at beginning of year | $ | 3,975 | 3,975 | ||||||||||||||||||||||||||||||||||||||
Additions for credit losses on securities for which OTTI was not previously recognized | — | — | |||||||||||||||||||||||||||||||||||||||
Additions for additional credit losses on securities for which OTTI was previously recognized | — | — | |||||||||||||||||||||||||||||||||||||||
Balance at end of year | $ | 3,975 | 3,975 |
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of derivative positions of Company | ' | ||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair | Notional | Fair | Notional | ||||||||||||||
Value | Value | Value | Value | ||||||||||||||
(In thousands) | |||||||||||||||||
Derivative assets: | |||||||||||||||||
Mortgage loan interest rate lock commitments | $ | 438 | 131,955 | — | — | ||||||||||||
Mortgage loan forward sales commitments | 261 | 20,992 | 106 | 20,516 | |||||||||||||
Mortgage-backed securities forward sales commitments | 270 | 107,000 | 878 | 88,000 | |||||||||||||
Interest rate swaps | 247 | 20,000 | 428 | 20,000 | |||||||||||||
$ | 1,216 | 279,947 | 1,412 | 128,516 | |||||||||||||
Derivative liabilities: | |||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | 55 | 103,614 | |||||||||||||
$ | — | — | 55 | 103,614 |
LOANS_RECEIVABLE_NET_Tables
LOANS RECEIVABLE, NET (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of categories of loans | ' | ||||||||||||||||||||||||||||||||
Loans receivable, net at March 31, 2014 and December 31, 2013 are summarized by category as follows: | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
% of Total | % of Total | ||||||||||||||||||||||||||||||||
Amount | Loans | Amount | Loans | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 201,196 | 33.44 | % | 184,210 | 32.6 | % | ||||||||||||||||||||||||||
Home equity | 23,887 | 3.97 | % | 23,661 | 4.19 | % | |||||||||||||||||||||||||||
Commercial real estate | 256,523 | 42.64 | % | 253,035 | 44.79 | % | |||||||||||||||||||||||||||
Construction and development | 67,598 | 11.24 | % | 67,056 | 11.87 | % | |||||||||||||||||||||||||||
Consumer loans | 3,097 | 0.51 | % | 3,060 | 0.54 | % | |||||||||||||||||||||||||||
Commercial business loans | 49,339 | 8.2 | % | 33,938 | 6.01 | % | |||||||||||||||||||||||||||
Total gross loans receivable | 601,640 | 100 | % | 564,960 | 100 | % | |||||||||||||||||||||||||||
Less: | |||||||||||||||||||||||||||||||||
Undisbursed loans in process | 21,673 | 21,550 | |||||||||||||||||||||||||||||||
Allowance for loan losses | 8,401 | 8,091 | |||||||||||||||||||||||||||||||
Deferred fees, net | 178 | 98 | |||||||||||||||||||||||||||||||
Total loans receivable, net | $ | 571,388 | 535,221 | ||||||||||||||||||||||||||||||
The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: | |||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Variable rate loans | $ | 237,077 | 40.88 | % | 219,589 | 40.41 | % | ||||||||||||||||||||||||||
Fixed rate loans | 342,890 | 59.12 | % | 323,821 | 59.59 | % | |||||||||||||||||||||||||||
Total loans outstanding | $ | 579,967 | 100 | % | 543,410 | 100 | % | ||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses | ' | ||||||||||||||||||||||||||||||||
Allowance for loan losses: | For the Three Months Ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2014 | $ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | ||||||||||||||||||||||||
Provision for loan losses | 114 | 3 | 444 | (339 | ) | (40 | ) | 115 | (297 | ) | — | ||||||||||||||||||||||
Charge-offs | (37 | ) | — | (28 | ) | (170 | ) | (13 | ) | — | — | (248 | ) | ||||||||||||||||||||
Recoveries | 19 | — | — | 327 | 40 | 172 | — | 558 | |||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 2,568 | 234 | 3,271 | 1,236 | 29 | 626 | 437 | 8,401 | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2013 | |||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 3,193 | 276 | 3,315 | 1,792 | 82 | 862 | — | 9,520 | ||||||||||||||||||||||||
Provision for loan losses | (265 | ) | (47 | ) | (133 | ) | 86 | 14 | (75 | ) | 420 | — | |||||||||||||||||||||
Charge-offs | (33 | ) | — | — | (62 | ) | (33 | ) | — | — | (128 | ) | |||||||||||||||||||||
Recoveries | 115 | — | 52 | 7 | 24 | 48 | — | 246 | |||||||||||||||||||||||||
Balance at March 31, 2013 | $ | 3,010 | 229 | 3,234 | 1,823 | 87 | 835 | 420 | 9,638 | ||||||||||||||||||||||||
Allowance for loan losses: | For the Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at January 1, 2013 | $ | 3,193 | 276 | 3,315 | 1,792 | 82 | 862 | — | 9,520 | ||||||||||||||||||||||||
Provision for loan losses | (991 | ) | (18 | ) | (317 | ) | 281 | (58 | ) | (491 | ) | 734 | (860 | ) | |||||||||||||||||||
Charge-offs | (168 | ) | (28 | ) | (269 | ) | (765 | ) | (35 | ) | (410 | ) | — | (1,675 | ) | ||||||||||||||||||
Recoveries | 438 | 1 | 126 | 110 | 53 | 378 | — | 1,106 | |||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | ||||||||||||||||||||||||
Schedule of allowance for loan losses and recorded investment in loans by impairment methodology | ' | ||||||||||||||||||||||||||||||||
Loans Secured by Real Estate | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Unallocated | Total | ||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
At March 31, 2014: | |||||||||||||||||||||||||||||||||
Allowance for loan losses ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 167 | — | 55 | — | 6 | 4 | — | 232 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 2,401 | 234 | 3,216 | 1,236 | 23 | 622 | 437 | 8,169 | |||||||||||||||||||||||||
$ | 2,568 | 234 | 3,271 | 1,236 | 29 | 626 | 437 | 8,401 | |||||||||||||||||||||||||
Loans receivable ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,747 | — | 16,529 | 407 | 26 | 2,293 | — | 25,002 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 194,923 | 23,681 | 233,368 | 59,712 | 2,813 | 40,468 | — | 554,965 | |||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | — | 579,967 | ||||||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||||||||||||||
Allowance for loan losses ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 103 | — | 55 | 165 | 20 | 6 | — | 349 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 2,369 | 231 | 2,800 | 1,253 | 22 | 333 | 734 | 7,742 | |||||||||||||||||||||||||
$ | 2,472 | 231 | 2,855 | 1,418 | 42 | 339 | 734 | 8,091 | |||||||||||||||||||||||||
Loans receivable ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 6,220 | 125 | 17,008 | 1,493 | 40 | 2,560 | — | 27,446 | ||||||||||||||||||||||||
Collectively evaluated for impairment | 177,516 | 23,217 | 230,859 | 58,611 | 2,775 | 22,986 | — | 515,964 | |||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | — | 543,410 | ||||||||||||||||||||||||
Schedule of impaired loans by class of loans | ' | ||||||||||||||||||||||||||||||||
At March 31, 2014 | At December 31, 2013 | ||||||||||||||||||||||||||||||||
Unpaid | Unpaid | ||||||||||||||||||||||||||||||||
Recorded | Principal | Related | Recorded | Principal | Related | ||||||||||||||||||||||||||||
Investment | Balance | Allowance | Investment | Balance | Allowance | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 5,084 | 7,016 | — | 5,713 | 7,682 | — | ||||||||||||||||||||||||||
Home equity | — | 347 | — | 125 | 472 | — | |||||||||||||||||||||||||||
Commercial real estate | 16,220 | 16,764 | — | 16,695 | 17,240 | — | |||||||||||||||||||||||||||
Construction and development | 407 | 2,918 | — | 1,227 | 3,887 | — | |||||||||||||||||||||||||||
Consumer loans | 20 | 546 | — | 20 | 404 | — | |||||||||||||||||||||||||||
Commercial business loans | 2,289 | 3,335 | — | 2,554 | 3,599 | — | |||||||||||||||||||||||||||
24,020 | 30,926 | — | 26,334 | 33,284 | — | ||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 663 | 764 | 167 | 507 | 607 | 103 | |||||||||||||||||||||||||||
Home equity | — | — | — | — | — | — | |||||||||||||||||||||||||||
Commercial real estate | 309 | 309 | 55 | 313 | 313 | 55 | |||||||||||||||||||||||||||
Construction and development | — | — | — | 266 | 266 | 165 | |||||||||||||||||||||||||||
Consumer loans | 6 | 6 | 6 | 20 | 20 | 20 | |||||||||||||||||||||||||||
Commercial business loans | 4 | 4 | 4 | 6 | 6 | 6 | |||||||||||||||||||||||||||
982 | 1,083 | 232 | 1,112 | 1,212 | 349 | ||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 5,747 | 7,780 | 167 | 6,220 | 8,289 | 103 | |||||||||||||||||||||||||||
Home equity | — | 347 | — | 125 | 472 | — | |||||||||||||||||||||||||||
Commercial real estate | 16,529 | 17,073 | 55 | 17,008 | 17,553 | 55 | |||||||||||||||||||||||||||
Construction and development | 407 | 2,918 | — | 1,493 | 4,153 | 165 | |||||||||||||||||||||||||||
Consumer loans | 26 | 552 | 6 | 40 | 424 | 20 | |||||||||||||||||||||||||||
Commercial business loans | 2,293 | 3,339 | 4 | 2,560 | 3,605 | 6 | |||||||||||||||||||||||||||
$ | 25,002 | 32,009 | 232 | 27,446 | 34,496 | 349 | |||||||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||||||||||||
31-Mar-14 | 31-Mar-14 | ||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||||||||||||
Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 5,107 | 53 | 4,724 | 28 | ||||||||||||||||||||||||||||
Home equity | — | — | 83 | (1 | ) | ||||||||||||||||||||||||||||
Commercial real estate | 16,807 | 148 | 15,245 | 102 | |||||||||||||||||||||||||||||
Construction and development | 450 | 2 | 376 | (6 | ) | ||||||||||||||||||||||||||||
Consumer loans | 23 | 4 | 37 | — | |||||||||||||||||||||||||||||
Commercial business loans | 2,480 | 77 | 2,238 | 30 | |||||||||||||||||||||||||||||
24,867 | 284 | 22,703 | 153 | ||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 545 | 5 | 2,590 | — | |||||||||||||||||||||||||||||
Home equity | — | — | — | — | |||||||||||||||||||||||||||||
Commercial real estate | 311 | 6 | 4,372 | (1 | ) | ||||||||||||||||||||||||||||
Construction and development | — | — | 2,228 | — | |||||||||||||||||||||||||||||
Consumer loans | 7 | — | 20 | — | |||||||||||||||||||||||||||||
Commercial business loans | 5 | — | 1,248 | (2 | ) | ||||||||||||||||||||||||||||
868 | 11 | 10,458 | (3 | ) | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | 5,652 | 58 | 7,314 | 28 | |||||||||||||||||||||||||||||
Home equity | — | — | 83 | (1 | ) | ||||||||||||||||||||||||||||
Commercial real estate | 17,118 | 154 | 19,617 | 101 | |||||||||||||||||||||||||||||
Construction and development | 450 | 2 | 2,604 | (6 | ) | ||||||||||||||||||||||||||||
Consumer loans | 30 | 4 | 57 | — | |||||||||||||||||||||||||||||
Commercial business loans | 2,485 | 77 | 3,486 | 28 | |||||||||||||||||||||||||||||
$ | 25,735 | 295 | 33,161 | 150 | |||||||||||||||||||||||||||||
Schedule of aging of the recorded investment in past due loans by class of loans | ' | ||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
30-59 days past due | $ | 2,331 | 647 | 269 | 367 | — | 76 | 3,690 | |||||||||||||||||||||||||
60-89 days past due | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
90 days or more past due | 3,384 | — | 4,532 | 393 | 6 | 200 | 8,515 | ||||||||||||||||||||||||||
Total past due | 5,715 | 647 | 4,801 | 760 | 6 | 276 | 12,205 | ||||||||||||||||||||||||||
Current | 194,955 | 23,034 | 245,096 | 59,359 | 2,833 | 42,485 | 567,762 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
30-59 days past due | $ | 231 | — | 273 | 53 | — | — | 557 | |||||||||||||||||||||||||
60-89 days past due | 1,034 | — | — | — | — | — | 1,034 | ||||||||||||||||||||||||||
90 days or more past due | 3,440 | 125 | 5,074 | 1,477 | 7 | 431 | 10,554 | ||||||||||||||||||||||||||
Total past due | 4,705 | 125 | 5,347 | 1,530 | 7 | 431 | 12,145 | ||||||||||||||||||||||||||
Current | 179,031 | 23,217 | 242,520 | 58,574 | 2,808 | 25,115 | 531,265 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 | |||||||||||||||||||||||||
Schedule of analysis of loans receivables on nonaccrual status | ' | ||||||||||||||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||||||||||||||
One-to-four family | $ | 3,841 | 3,902 | ||||||||||||||||||||||||||||||
Home equity | — | 125 | |||||||||||||||||||||||||||||||
Commercial real estate | 4,571 | 5,114 | |||||||||||||||||||||||||||||||
Construction and development | 396 | 1,481 | |||||||||||||||||||||||||||||||
Consumer loans | 7 | 20 | |||||||||||||||||||||||||||||||
Commercial business loans | 204 | 437 | |||||||||||||||||||||||||||||||
$ | 9,019 | 11,079 | |||||||||||||||||||||||||||||||
Schedule of analysis of loan portfolio by credit quality indicators | ' | ||||||||||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Internal Risk Rating Grades: | |||||||||||||||||||||||||||||||||
Pass | $ | 195,547 | 23,681 | 233,914 | 59,404 | 2,832 | 41,617 | 556,995 | |||||||||||||||||||||||||
Special Mention | 1,052 | — | 10,712 | 290 | — | 939 | 12,993 | ||||||||||||||||||||||||||
Substandard | 4,071 | — | 5,271 | 426 | 7 | 204 | 9,979 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
Performing | $ | 196,829 | 23,681 | 245,326 | 59,723 | 2,832 | 42,557 | 570,948 | |||||||||||||||||||||||||
Nonperforming: | |||||||||||||||||||||||||||||||||
90 days or more and still accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Nonaccrual | 3,841 | — | 4,571 | 396 | 7 | 204 | 9,019 | ||||||||||||||||||||||||||
Total nonperforming | 3,841 | — | 4,571 | 396 | 7 | 204 | 9,019 | ||||||||||||||||||||||||||
Total loans receivable | $ | 200,670 | 23,681 | 249,897 | 60,119 | 2,839 | 42,761 | 579,967 | |||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||
Real estate loans | |||||||||||||||||||||||||||||||||
One-to- | Commercial | Construction | |||||||||||||||||||||||||||||||
four | Home | real | and | Commercial | |||||||||||||||||||||||||||||
family | equity | estate | Development | Consumer | business | Total | |||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Internal Risk Rating Grades: | |||||||||||||||||||||||||||||||||
Pass | $ | 177,878 | 23,217 | 231,269 | 58,563 | 2,795 | 24,823 | 518,545 | |||||||||||||||||||||||||
Special Mention | 1,679 | — | 10,633 | 295 | — | 286 | 12,893 | ||||||||||||||||||||||||||
Substandard | 4,179 | 125 | 5,965 | 1,246 | 20 | 437 | 11,972 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 | |||||||||||||||||||||||||
Performing | $ | 179,834 | 23,217 | 242,753 | 58,623 | 2,795 | 25,109 | 532,331 | |||||||||||||||||||||||||
Nonperforming: | |||||||||||||||||||||||||||||||||
90 days or more and still accruing | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Nonaccrual | 3,902 | 125 | 5,114 | 1,481 | 20 | 437 | 11,079 | ||||||||||||||||||||||||||
Total nonperforming | 3,902 | 125 | 5,114 | 1,481 | 20 | 437 | 11,079 | ||||||||||||||||||||||||||
Total loans receivable | $ | 183,736 | 23,342 | 247,867 | 60,104 | 2,815 | 25,546 | 543,410 |
REAL_ESTATE_ACQUIRED_THROUGH_F1
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
Summary of Changes in Other Real Estate Owned | ' | ||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Balance at beginning of year | $ | 6,273 | 6,284 | ||||||
Additions | 837 | 4,140 | |||||||
Sales | (1,129 | ) | (3,302 | ) | |||||
Write downs | (239 | ) | (849 | ) | |||||
Balance at end of year | $ | 5,742 | 6,273 | ||||||
Schedule of composition of other real estate owned | ' | ||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Real estate loans: | |||||||||
One-to-four family | $ | 122 | 959 | ||||||
Commercial real estate | 1,548 | 1,781 | |||||||
Construction and development | 4,072 | 3,533 | |||||||
$ | 5,742 | 6,273 |
DEPOSITS_Tables
DEPOSITS (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Banking and Thrift [Abstract] | ' | ||||||||
Summary of Deposits outstanding | ' | ||||||||
Deposits outstanding by type of account at March 31, 2014 and December 31, 2013 are summarized as follows: | |||||||||
At March 31, | At December 31, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Noninterest-bearing demand accounts | $ | 88,105 | 83,500 | ||||||
Interest-bearing demand accounts | 105,457 | 92,067 | |||||||
Savings accounts | 25,153 | 17,816 | |||||||
Money market accounts | 218,861 | 220,915 | |||||||
Certificates of deposit: | |||||||||
Less than $100,000 | 214,772 | 195,239 | |||||||
$100,000 or more | 93,320 | 88,044 | |||||||
Total certificates of deposit | 308,092 | 283,283 | |||||||
Total deposits | $ | 745,668 | 697,581 |
ESTIMATED_FAIR_VALUE_OF_FINANC1
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of carrying amount and estimated fair value of the Company's financial instruments | ' | ||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 6,553 | 6,553 | 6,553 | — | — | |||||||||||||||
Interest-bearing cash | 9,887 | 9,887 | 9,887 | — | — | ||||||||||||||||
Securities available for sale | 199,023 | 199,023 | — | 199,023 | — | ||||||||||||||||
Securities held to maturity | 24,242 | 25,076 | — | 15,683 | 9,393 | ||||||||||||||||
Federal Home Loan Bank stock | 3,380 | 3,380 | — | — | 3,380 | ||||||||||||||||
Other investments | 1,921 | 1,921 | — | — | 1,921 | ||||||||||||||||
Derivative assets | 1,216 | 1,216 | 247 | 969 | — | ||||||||||||||||
Loans held for sale | 31,899 | 32,153 | — | 32,153 | — | ||||||||||||||||
Loans receivable, net | 571,388 | 580,366 | — | 555,596 | 24,770 | ||||||||||||||||
Accrued interest receivable | 2,784 | 2,784 | — | 2,784 | — | ||||||||||||||||
Mortgage servicing rights | 10,003 | 15,938 | — | 15,938 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 745,668 | 744,363 | — | 744,363 | — | ||||||||||||||||
Short-term borrowed funds | 5,300 | 5,300 | — | 5,300 | — | ||||||||||||||||
Long-term debt | 69,465 | 66,085 | — | 66,085 | — | ||||||||||||||||
Derivative liabilities | — | — | — | — | — | ||||||||||||||||
Accrued interest payable | 324 | 324 | — | 324 | — | ||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||
Carrying | Fair Value | ||||||||||||||||||||
Amount | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||
(In thousands) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks | $ | 4,489 | 4,489 | 4,489 | — | — | |||||||||||||||
Interest-bearing cash | 34,176 | 34,176 | 34,176 | — | — | ||||||||||||||||
Securities available for sale | 167,535 | 167,535 | — | 167,535 | — | ||||||||||||||||
Securities held to maturity | 24,554 | 23,547 | — | 15,177 | 8,370 | ||||||||||||||||
Federal Home Loan Bank stock | 4,103 | 4,103 | — | — | 4,103 | ||||||||||||||||
Other investments | 1,858 | 1,858 | — | — | 1,858 | ||||||||||||||||
Derivative assets | 1,412 | 1,412 | 428 | 984 | — | ||||||||||||||||
Loans held for sale | 36,897 | 37,041 | — | 37,041 | — | ||||||||||||||||
Loans receivable, net | 535,221 | 524,142 | — | 497,045 | 27,097 | ||||||||||||||||
Accrued interest receivable | 2,802 | 2,802 | — | 2,802 | — | ||||||||||||||||
Mortgage servicing rights | 10,908 | 17,718 | — | 17,718 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | 697,581 | 696,674 | — | 696,674 | — | ||||||||||||||||
Short-term borrowed funds | 10,300 | 10,300 | — | 10,300 | — | ||||||||||||||||
Long-term debt | 74,540 | 71,462 | — | 71,462 | — | ||||||||||||||||
Derivative liabilities | 55 | 55 | — | 55 | — | ||||||||||||||||
Accrued interest payable | 311 | 311 | — | 311 | — | ||||||||||||||||
Schedule of notional amount and estimated fair values of off-balance sheet financial instruments | ' | ||||||||||||||||||||
At March 31, | At December 31, | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Notional | Estimated | Notional | Estimated | ||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Off-Balance Sheet Financial Instruments: | |||||||||||||||||||||
Commitments to extend credit | $ | 39,528 | — | 38,595 | — | ||||||||||||||||
Standby letters of credit | 445 | — | 526 | — | |||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | 131,955 | 438 | — | — | |||||||||||||||||
Mortgage loan forward sales commitments | 20,992 | 261 | 20,516 | 106 | |||||||||||||||||
Mortgage-backed securities forward sales commitments | 107,000 | 270 | 88,000 | 878 | |||||||||||||||||
Interest rate swaps | 20,000 | 247 | 20,000 | 428 | |||||||||||||||||
Derivative liabilities - | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | 103,614 | 55 | |||||||||||||||||
Summary of assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||
Quoted market price | Significant other | Significant other | |||||||||||||||||||
in active markets | observable inputs | unobservable inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||||||
Municipal securities | $ | — | 37,458 | — | |||||||||||||||||
US government agencies | — | 7,939 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | — | 96,265 | — | ||||||||||||||||||
Non-agency | — | 57,361 | — | ||||||||||||||||||
Loans held for sale | — | 32,153 | — | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | 438 | — | ||||||||||||||||||
Mortgage loan forward sales commitments | — | 261 | — | ||||||||||||||||||
Mortgage-backed securities forward sales commitments | — | 270 | — | ||||||||||||||||||
Interest rate swaps | 247 | — | — | ||||||||||||||||||
Brokered deposits | — | 4,948 | — | ||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | — | ||||||||||||||||||
Total | $ | 247 | 237,093 | — | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Available-for-sale investment securities: | |||||||||||||||||||||
Municipal securities | $ | — | 38,499 | — | |||||||||||||||||
US government agencies | — | 5,175 | — | ||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | — | 69,929 | — | ||||||||||||||||||
Non-agency | — | 53,932 | — | ||||||||||||||||||
Loans held for sale | — | 37,041 | — | ||||||||||||||||||
Derivative assets: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | — | — | ||||||||||||||||||
Mortgage loan forward sales commitments | — | 106 | — | ||||||||||||||||||
Mortgage-backed securities forward sales commitments | — | 878 | — | ||||||||||||||||||
Interest rate swaps | 428 | — | — | ||||||||||||||||||
Brokered deposits | — | 4,948 | — | ||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||
Mortgage loan interest rate lock commitments | — | 55 | — | ||||||||||||||||||
Total | $ | 428 | 210,563 | — | |||||||||||||||||
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | ' | ||||||||||||||||||||
Quoted market price | Significant other | Significant other | |||||||||||||||||||
in active markets | observable inputs | unobservable inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
(In thousands) | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||
One-to-four family | $ | — | — | 5,580 | |||||||||||||||||
Home equity | — | — | — | ||||||||||||||||||
Commercial real estate | — | — | 16,474 | ||||||||||||||||||
Construction and development | — | — | 407 | ||||||||||||||||||
Consumer loans | — | — | 20 | ||||||||||||||||||
Commercial business loans | — | — | 2,289 | ||||||||||||||||||
Real estate owned: | |||||||||||||||||||||
One-to-four family | — | — | 122 | ||||||||||||||||||
Commercial real estate | — | — | 1,548 | ||||||||||||||||||
Construction and development | — | — | 4,072 | ||||||||||||||||||
Total | $ | — | — | 30,512 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Loans secured by real estate: | |||||||||||||||||||||
One-to-four family | $ | — | — | 6,117 | |||||||||||||||||
Home equity | — | — | 125 | ||||||||||||||||||
Commercial real estate | — | — | 16,953 | ||||||||||||||||||
Construction and development | — | — | 1,328 | ||||||||||||||||||
Consumer loans | — | — | 20 | ||||||||||||||||||
Commercial business loans | — | — | 2,554 | ||||||||||||||||||
Real estate owned: | |||||||||||||||||||||
One-to-four family | — | — | 959 | ||||||||||||||||||
Commercial real estate | — | — | 1,781 | ||||||||||||||||||
Construction and development | — | — | 3,533 | ||||||||||||||||||
Total | $ | — | — | 33,370 | |||||||||||||||||
Schedule of significant unobservable inputs used in the fair value measurements | ' | ||||||||||||||||||||
March 31, 2014 and December 31, 2013 | |||||||||||||||||||||
Significant | Significant Unobservable | ||||||||||||||||||||
Valuation Technique | Observable Inputs | Inputs | |||||||||||||||||||
Impaired Loans | Appraisal Value | Appraisals and or sales of | Appraisals discounted 10% to 20% for | ||||||||||||||||||
comparable properties | sales commissions and other holding costs | ||||||||||||||||||||
Real estate owned | Appraisal Value/ | Appraisals and or sales of | Appraisals discounted 10% to 20% for | ||||||||||||||||||
Comparison Sales/ | comparable properties | sales commissions and other holding costs | |||||||||||||||||||
Other estimates |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings per common share: | ' | ||||||||||||||||
Schedule of reconciliation of average shares outstanding | ' | ||||||||||||||||
The following is a summary of the reconciliation of average shares outstanding for the period ended March 31, 2014 and 2013: | |||||||||||||||||
At March 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Basic | Diluted | Basic | Diluted | ||||||||||||||
Weighted average shares outstanding | 3,851,426 | 3,851,426 | 3,837,984 | 3,837,984 | |||||||||||||
Effect of dilutive securities | — | 84,661 | — | — | |||||||||||||
Average shares outstanding | 3,851,426 | 3,936,087 | 3,837,984 | 3,837,984 |
SUPPLEMENTAL_SEGMENT_INFORMATI1
SUPPLEMENTAL SEGMENT INFORMATION (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||
Schedule of Selected Financial Information of Company's reportable business segments | ' | ||||||||||||||||||||
The following tables present selected financial information for the Company’s reportable business segments for the periods ended March 31, 2014 and 2013: | |||||||||||||||||||||
Community | Mortgage | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | Banking | Banking | Other | Eliminations | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest income | $ | 8,091 | 285 | 4 | 31 | 8,411 | |||||||||||||||
Interest expense | 1,197 | — | 134 | — | 1,331 | ||||||||||||||||
Net interest income (expense) | 6,894 | 285 | (130 | ) | 31 | 7,080 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | ||||||||||||||||
Noninterest income (expense) from external customers | 915 | 4,444 | 10 | — | 5,369 | ||||||||||||||||
Intersegment noninterest income | — | 72 | 1,510 | (1,582 | ) | — | |||||||||||||||
Noninterest expense | 4,114 | 3,846 | 1,646 | — | 9,606 | ||||||||||||||||
Intersegment noninterest expense | 1,270 | 240 | — | (1,510 | ) | — | |||||||||||||||
Income (loss) before income taxes | 2,425 | 715 | (256 | ) | (41 | ) | 2,843 | ||||||||||||||
Income tax expense (benefit) | 735 | 275 | (95 | ) | (16 | ) | 899 | ||||||||||||||
Net income (loss) | $ | 1,690 | 440 | (161 | ) | (25 | ) | 1,944 | |||||||||||||
Assets | $ | 918,290 | 58,654 | 103,667 | (161,811 | ) | 918,800 | ||||||||||||||
Loans receivable, net | 569,013 | 3,185 | — | (810 | ) | 571,388 | |||||||||||||||
Loans held for sale | 421 | 31,478 | — | — | 31,899 | ||||||||||||||||
Deposits | 753,919 | — | — | (8,251 | ) | 745,668 | |||||||||||||||
Borrowed funds | 59,301 | — | 15,465 | (1 | ) | 74,765 | |||||||||||||||
Community | Mortgage | ||||||||||||||||||||
For the Three Months Ended March 31, 2013 | Banking | Banking | Other | Eliminations | Total | ||||||||||||||||
(In thousands) | |||||||||||||||||||||
Interest income | $ | 7,816 | 393 | 4 | 16 | 8,229 | |||||||||||||||
Interest expense | 1,276 | 47 | 181 | (2 | ) | 1,502 | |||||||||||||||
Net interest income (expense) | 6,540 | 346 | (177 | ) | 18 | 6,727 | |||||||||||||||
Provision for loan losses | — | — | — | — | — | ||||||||||||||||
Noninterest income (expense) from external customers | 705 | 12,655 | 23 | — | 13,383 | ||||||||||||||||
Intersegment noninterest income | 42 | 127 | 1,453 | (1,622 | ) | — | |||||||||||||||
Noninterest expense | 5,393 | 6,324 | 1,306 | — | 13,023 | ||||||||||||||||
Intersegment noninterest expense | 1,213 | 282 | — | (1,495 | ) | — | |||||||||||||||
Income (loss) before income taxes | 681 | 6,522 | (7 | ) | (109 | ) | 7,087 | ||||||||||||||
Income tax expense (benefit) | 275 | 2,429 | (3 | ) | (37 | ) | 2,664 | ||||||||||||||
Net income (loss) | $ | 406 | 4,093 | (4 | ) | (72 | ) | 4,423 | |||||||||||||
Assets | $ | 840,776 | 60,235 | 92,997 | (136,855 | ) | 857,153 | ||||||||||||||
Loans receivable, net | 500,526 | 1,565 | — | (716 | ) | 501,375 | |||||||||||||||
Loans held for sale | 63,185 | 34,115 | — | — | 97,300 | ||||||||||||||||
Deposits | 665,942 | — | — | (2,134 | ) | 663,808 | |||||||||||||||
Borrowed funds | 79,601 | 3,486 | 18,315 | (151 | ) | 101,251 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jan. 23, 2014 | Apr. 23, 2014 | Apr. 22, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Statutory Business Trusts [Member] | Statutory Business Trusts [Member] | ||
Principal amount owed | ' | ' | ' | ' | ' | $15,000 | $15,000 |
Principal assets of the Trusts | ' | ' | ' | ' | ' | 15,465 | 15,465 |
Value of common stock issued to company | $40 | $40 | ' | ' | ' | $465 | $465 |
Preferred stock, shares authorized increased | 200,000 | 200,000 | ' | 1,000,000 | 200,000 | ' | ' |
Common stock, shares authorized increased | 6,800,000 | 6,800,000 | ' | 10,000,000 | 6,800,000 | ' | ' |
Dividend declared per share | ' | ' | ' | ' | $0.05 | ' | ' |
Dividend payable, record date | ' | ' | 20-Jun-14 | ' | ' | ' | ' |
Date of payment of dividend | ' | ' | 10-Jul-14 | ' | ' | ' | ' |
SECURITIES_Details
SECURITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available For Sale | ' | ' |
Amortized Cost | $196,399 | $166,997 |
Unrealized Gains | 3,639 | 2,358 |
Unrealized Losses | -1,015 | -1,820 |
Securities available for sale | 199,023 | 167,535 |
Held-to-maturity Securities | ' | ' |
Amortized Cost | 24,242 | 24,554 |
Unrealized Gains | 3,357 | 2,137 |
Unrealized Loss | -2,523 | -3,144 |
Fair Value | 25,076 | 23,547 |
Municipal securities [Member] | ' | ' |
Available For Sale | ' | ' |
Amortized Cost | 37,474 | 39,790 |
Unrealized Gains | 687 | 99 |
Unrealized Losses | -703 | -1,390 |
Securities available for sale | 37,458 | 38,499 |
Held-to-maturity Securities | ' | ' |
Amortized Cost | 15,442 | 15,488 |
Unrealized Gains | 355 | 30 |
Unrealized Loss | -114 | -341 |
Fair Value | 15,683 | 15,177 |
US government agencies [Member] | ' | ' |
Available For Sale | ' | ' |
Amortized Cost | 7,975 | 5,199 |
Unrealized Gains | ' | ' |
Unrealized Losses | -36 | -24 |
Securities available for sale | 7,939 | 5,175 |
Mortgage-backed securities Agency [Member] | ' | ' |
Available For Sale | ' | ' |
Amortized Cost | 94,331 | 68,813 |
Unrealized Gains | 2,038 | 1,433 |
Unrealized Losses | -104 | -317 |
Securities available for sale | 96,265 | 69,929 |
Mortgage-backed securities Non-agency [Member] | ' | ' |
Available For Sale | ' | ' |
Amortized Cost | 56,619 | 53,195 |
Unrealized Gains | 914 | 826 |
Unrealized Losses | -172 | -89 |
Securities available for sale | 57,361 | 53,932 |
Total mortgage-backed securities [Member] | ' | ' |
Available For Sale | ' | ' |
Amortized Cost | 150,950 | 122,008 |
Unrealized Gains | 2,952 | 2,259 |
Unrealized Losses | -276 | -406 |
Securities available for sale | 153,626 | 123,861 |
Asset-backed securities [Member] | ' | ' |
Held-to-maturity Securities | ' | ' |
Amortized Cost | 8,800 | 9,066 |
Unrealized Gains | 3,002 | 2,107 |
Unrealized Loss | -2,409 | -2,803 |
Fair Value | $9,393 | $8,370 |
SECURITIES_Details_2
SECURITIES (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Value | $199,023 | $167,535 |
Amortizied Cost | 196,399 | 166,997 |
Held-to-maturity Securities [Member] | ' | ' |
Purchased Face Value | 17,018 | 17,333 |
Cumulative OTTI | -3,975 | -3,975 |
Carrying Value | 13,043 | 13,358 |
Gross Gains Unrealized Recognized in OCI | ' | ' |
Gross Loss Unrealized Recognized in OCI | -4,243 | -4,292 |
Amortizied Cost | 8,800 | 9,066 |
Gross Gains Unrealized Not Recognized in OCI | 3,002 | 2,107 |
Gross Loss Unrealized Not Recognized in OCI | -2,409 | -2,803 |
Estimated Fair Value | 9,393 | 8,370 |
Held to Maturity, Securities in Unrealized Loss Positions, Number of Positions | 4 | 4 |
Held-to-maturity Securities [Member] | Total A Class [Member] | ' | ' |
Purchased Face Value | 2,487 | 2,841 |
Cumulative OTTI | ' | ' |
Carrying Value | 2,487 | 2,841 |
Gross Gains Unrealized Recognized in OCI | ' | ' |
Gross Loss Unrealized Recognized in OCI | -579 | -586 |
Amortizied Cost | 1,908 | 2,255 |
Gross Gains Unrealized Not Recognized in OCI | 365 | 354 |
Gross Loss Unrealized Not Recognized in OCI | -89 | -99 |
Estimated Fair Value | 2,184 | 2,510 |
Held-to-maturity Securities [Member] | Total A Class [Member] | Minimum [Member] | ' | ' |
Collateralization Percentage | 172.00% | 164.00% |
Held-to-maturity Securities [Member] | Total A Class [Member] | Maximum [Member] | ' | ' |
Collateralization Percentage | 378.00% | 324.00% |
Held-to-maturity Securities [Member] | Total B Class [Member] | ' | ' |
Purchased Face Value | 11,833 | 11,804 |
Cumulative OTTI | -2,635 | -2,635 |
Carrying Value | 9,198 | 9,169 |
Gross Gains Unrealized Recognized in OCI | ' | ' |
Gross Loss Unrealized Recognized in OCI | -2,541 | -2,569 |
Amortizied Cost | 6,657 | 6,600 |
Gross Gains Unrealized Not Recognized in OCI | 1,712 | 1,190 |
Gross Loss Unrealized Not Recognized in OCI | -2,320 | -2,704 |
Estimated Fair Value | 6,049 | 5,086 |
Held-to-maturity Securities [Member] | Total B Class [Member] | Minimum [Member] | ' | ' |
Collateralization Percentage | 94.00% | 94.00% |
Held-to-maturity Securities [Member] | Total B Class [Member] | Maximum [Member] | ' | ' |
Collateralization Percentage | 104.00% | 98.00% |
Held-to-maturity Securities [Member] | Total C Class [Member] | ' | ' |
Purchased Face Value | 2,698 | 2,688 |
Cumulative OTTI | -1,340 | -1,340 |
Carrying Value | 1,358 | 1,348 |
Gross Gains Unrealized Recognized in OCI | ' | ' |
Gross Loss Unrealized Recognized in OCI | -1,123 | -1,137 |
Amortizied Cost | 235 | 211 |
Gross Gains Unrealized Not Recognized in OCI | 925 | 563 |
Gross Loss Unrealized Not Recognized in OCI | ' | ' |
Estimated Fair Value | $1,160 | $774 |
Held-to-maturity Securities [Member] | Total C Class [Member] | Minimum [Member] | ' | ' |
Collateralization Percentage | 86.00% | 83.00% |
Held-to-maturity Securities [Member] | Total C Class [Member] | Maximum [Member] | ' | ' |
Collateralization Percentage | 86.00% | 83.00% |
SECURITIES_Details_3
SECURITIES (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investment securities, Amortized Cost | ' | ' |
Three to five years | $510 | ' |
Six to ten years | 15,621 | ' |
After ten years | 180,268 | ' |
Total | 196,399 | 166,997 |
Investment securities, Fair Value | ' | ' |
Three to five years | 505 | ' |
Six to ten years | 15,501 | ' |
After ten years | 183,017 | ' |
Securities available for sale | 199,023 | 167,535 |
Amortized Cost | ' | ' |
Three to five years | 980 | ' |
Six to ten years | 3,545 | ' |
After ten years | 19,717 | ' |
Total | 24,242 | 24,554 |
Fair Value | ' | ' |
Three to five years | 890 | ' |
Six to ten years | 3,476 | ' |
After ten years | 20,710 | ' |
Total | $25,076 | $23,547 |
SECURITIES_Details_4
SECURITIES (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | $52,400 | $74,453 |
Less than 12 Months, Fair Value | 51,566 | 72,866 |
Less than 12 Months, Unrealized Losses | -834 | -1,587 |
Greater than 12 Months, Amortized Cost | 7,236 | 6,817 |
Greater than 12 Months, Fair Value | 7,055 | 6,584 |
Greater than 12 Months, Unrealized Losses | -181 | -233 |
Total, Amortized Cost | 59,636 | 81,270 |
Total, Fair Value | 58,621 | 79,450 |
Total, Unrealized Losses | -1,015 | -1,820 |
Held to Maturity | ' | ' |
Less than 12 Months, Amortized Cost | ' | 11,945 |
Less than 12 Months, Fair Value | ' | 11,734 |
Less than 12 Months, Unrealized Losses | ' | -211 |
Greater than 12 Months, Amortized Cost | 10,799 | 9,575 |
Greater than 12 Months, Fair Value | 8,276 | 6,642 |
Greater than 12 Months, Unrealized Losses | -2,523 | -2,933 |
Total, Amortized Cost | 10,799 | 21,520 |
Total, Fair Value | 8,276 | 18,376 |
Total, Unrealized Losses | -2,523 | -3,144 |
Municipal securities [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | 14,907 | 27,108 |
Less than 12 Months, Fair Value | 14,365 | 25,917 |
Less than 12 Months, Unrealized Losses | -542 | -1,191 |
Greater than 12 Months, Amortized Cost | 4,922 | 3,157 |
Greater than 12 Months, Fair Value | 4,761 | 2,958 |
Greater than 12 Months, Unrealized Losses | -161 | -199 |
Total, Amortized Cost | 19,829 | 30,265 |
Total, Fair Value | 19,126 | 28,875 |
Total, Unrealized Losses | -703 | -1,390 |
Held to Maturity | ' | ' |
Less than 12 Months, Amortized Cost | ' | 11,945 |
Less than 12 Months, Fair Value | ' | 11,734 |
Less than 12 Months, Unrealized Losses | ' | -211 |
Greater than 12 Months, Amortized Cost | 3,371 | 2,177 |
Greater than 12 Months, Fair Value | 3,257 | 2,047 |
Greater than 12 Months, Unrealized Losses | -114 | -130 |
Total, Amortized Cost | 3,371 | 14,122 |
Total, Fair Value | 3,257 | 13,781 |
Total, Unrealized Losses | -114 | -341 |
US government agencies [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | 7,975 | 5,199 |
Less than 12 Months, Fair Value | 7,939 | 5,175 |
Less than 12 Months, Unrealized Losses | -36 | -24 |
Greater than 12 Months, Amortized Cost | ' | ' |
Greater than 12 Months, Fair Value | ' | ' |
Greater than 12 Months, Unrealized Losses | ' | ' |
Total, Amortized Cost | 7,975 | 5,199 |
Total, Fair Value | 7,939 | 5,175 |
Total, Unrealized Losses | -36 | -24 |
Mortgage-backed securities Agency [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | 8,239 | 27,140 |
Less than 12 Months, Fair Value | 8,135 | 26,823 |
Less than 12 Months, Unrealized Losses | -104 | -317 |
Greater than 12 Months, Amortized Cost | ' | ' |
Greater than 12 Months, Fair Value | ' | ' |
Greater than 12 Months, Unrealized Losses | ' | ' |
Total, Amortized Cost | 8,239 | 27,140 |
Total, Fair Value | 8,135 | 26,823 |
Total, Unrealized Losses | -104 | -317 |
Mortgage-backed securities Non-agency [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | 21,279 | 15,006 |
Less than 12 Months, Fair Value | 21,127 | 14,951 |
Less than 12 Months, Unrealized Losses | -152 | -55 |
Greater than 12 Months, Amortized Cost | 2,314 | 3,660 |
Greater than 12 Months, Fair Value | 2,294 | 3,626 |
Greater than 12 Months, Unrealized Losses | -20 | -34 |
Total, Amortized Cost | 23,593 | 18,666 |
Total, Fair Value | 23,421 | 18,577 |
Total, Unrealized Losses | -172 | -89 |
Total mortgage-backed securities [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Less than 12 Months, Amortized Cost | 29,518 | 42,146 |
Less than 12 Months, Fair Value | 29,262 | 41,774 |
Less than 12 Months, Unrealized Losses | -256 | -372 |
Greater than 12 Months, Amortized Cost | 2,314 | 3,660 |
Greater than 12 Months, Fair Value | 2,294 | 3,626 |
Greater than 12 Months, Unrealized Losses | -20 | -34 |
Total, Amortized Cost | 31,832 | 45,806 |
Total, Fair Value | 31,556 | 45,400 |
Total, Unrealized Losses | -276 | -406 |
Asset-backed securities [Member] | ' | ' |
Held to Maturity | ' | ' |
Less than 12 Months, Amortized Cost | ' | ' |
Less than 12 Months, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | ' | ' |
Greater than 12 Months, Amortized Cost | 7,428 | 7,398 |
Greater than 12 Months, Fair Value | 5,019 | 4,595 |
Greater than 12 Months, Unrealized Losses | -2,409 | -2,803 |
Total, Amortized Cost | 7,428 | 7,398 |
Total, Fair Value | 5,019 | 4,595 |
Total, Unrealized Losses | ($2,409) | ($2,803) |
SECURITIES_Details_5
SECURITIES (Details 5) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Securities Details 3 | ' | ' |
Balance at beginning of year | $3,975 | $3,975 |
Additions for credit losses on securities for which OTTI was not previously recognized | ' | ' |
Additions for additional credit losses on securities for which OTTI was previously recognized | ' | ' |
Balance at end of year | $3,975 | $3,975 |
SECURITIES_Details_Narrative
SECURITIES (Details Narrative) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Item | Item | Item | |
Securities Details 3 | ' | ' | ' |
Pooled trust preferred securities in Investment Grade | $900 | ' | $1,300 |
Split-rated security | 1,000 | ' | 1,000 |
Below investment grade security | 6,900 | ' | 6,800 |
Senior tranches representing Company's Pooled securities | 1,900 | ' | 2,300 |
Mezzanine tranches subordinate to senior tranches | 6,900 | ' | 6,800 |
Number of Available-for-sale Securities Sold | 13 | 3 | ' |
Available-for-sale Securities, Cost of Securities Sold | 9,500 | 9,800 | ' |
Available-for-sale Securities, Gross Gain | 316 | 16 | ' |
Proceeds from Sale of Available-for-sale Securities | 9,818 | 6,216 | ' |
Available for Sale Securities pledged for FHLB advances | 15,300 | ' | ' |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | 42 | ' | 58 |
Investment in FHLB Stock | $3,380 | ' | $4,103 |
DERIVATIVES_Details
DERIVATIVES (Details) (Designated as Hedging Instrument [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Asset derivatives, Fair value | $1,216 | $1,412 |
Notional Value, Assets | 279,947 | 128,516 |
Liability derivatives, Fair value | ' | 55 |
Notional Value, Liability | ' | 103,614 |
Mortgage loan interest rate lock commitments [Member] | ' | ' |
Asset derivatives, Fair value | 438 | ' |
Notional Value, Assets | 131,955 | ' |
Liability derivatives, Fair value | ' | 55 |
Notional Value, Liability | ' | 103,614 |
Mortgage loan forward sales commitments [Member] | ' | ' |
Asset derivatives, Fair value | 261 | 106 |
Notional Value, Assets | 20,992 | 20,516 |
Mortgage-backed securities forward sales commitments [Member] | ' | ' |
Asset derivatives, Fair value | 270 | 878 |
Notional Value, Assets | 107,000 | 88,000 |
Interest rate swaps [Member] | ' | ' |
Asset derivatives, Fair value | 247 | 428 |
Notional Value, Assets | $20,000 | $20,000 |
LOANS_RECEIVABLE_NET_Details
LOANS RECEIVABLE, NET (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Total gross loans receivable | $601,640 | $564,960 | ' | ' |
Percentage of Total Loan | 100.00% | 100.00% | ' | ' |
Undisbursed loans in process | 21,673 | 21,550 | ' | ' |
Allowance for loan losses | 8,401 | 8,091 | 9,638 | 9,520 |
Deferred fees, net | 178 | 98 | ' | ' |
Total loans receivable, net | 571,388 | 535,221 | 501,375 | ' |
Consumer loans [Member] | ' | ' | ' | ' |
Total gross loans receivable | 3,097 | 3,060 | ' | ' |
Percentage of Total Loan | 0.51% | 0.54% | ' | ' |
Allowance for loan losses | 29 | 42 | 87 | 82 |
Commercial business loans [Member] | ' | ' | ' | ' |
Total gross loans receivable | 49,339 | 33,938 | ' | ' |
Percentage of Total Loan | 8.20% | 6.01% | ' | ' |
Allowance for loan losses | 626 | 339 | 835 | 862 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' | ' | ' |
Total gross loans receivable | 201,196 | 184,210 | ' | ' |
Percentage of Total Loan | 33.44% | 32.60% | ' | ' |
Allowance for loan losses | 2,568 | 2,472 | 3,010 | 3,193 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' | ' | ' |
Total gross loans receivable | 23,887 | 23,661 | ' | ' |
Percentage of Total Loan | 3.97% | 4.19% | ' | ' |
Allowance for loan losses | 234 | 231 | 229 | 276 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' | ' | ' |
Total gross loans receivable | 256,523 | 253,035 | ' | ' |
Percentage of Total Loan | 42.64% | 44.79% | ' | ' |
Allowance for loan losses | 3,271 | 2,855 | 3,234 | 3,315 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' | ' | ' |
Total gross loans receivable | 67,598 | 67,056 | ' | ' |
Percentage of Total Loan | 11.24% | 11.87% | ' | ' |
Allowance for loan losses | $1,236 | $1,418 | $1,823 | $1,792 |
LOANS_RECEIVABLE_NET_Details_2
LOANS RECEIVABLE, NET (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Receivable Net Details 2 | ' | ' |
Variable rate loans | $237,077 | $219,589 |
Variable rate loans (as a percentage) | 40.88% | 40.41% |
Fixed rate loans | 342,890 | 323,821 |
Fixed rate loans (as a percentage) | 59.12% | 59.59% |
Total loans outstanding | $579,967 | $543,410 |
Total loans outstanding (as a percentage) | 100.00% | 100.00% |
LOANS_RECEIVABLE_NET_Details_3
LOANS RECEIVABLE, NET (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | $8,091 | $9,520 | $9,520 |
Provision for Loan Losses | ' | ' | -860 |
Charge-Offs | -248 | -128 | -1,675 |
Recoveries | 558 | 246 | 1,106 |
Ending Balance | 8,401 | 9,638 | 8,091 |
Consumer loans [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 42 | 82 | 82 |
Provision for Loan Losses | -40 | 14 | -58 |
Charge-Offs | -13 | -33 | -35 |
Recoveries | 40 | 24 | 53 |
Ending Balance | 29 | 87 | 42 |
Commercial business loans [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 339 | 862 | 862 |
Provision for Loan Losses | 115 | -75 | -491 |
Charge-Offs | ' | ' | -410 |
Recoveries | 172 | 48 | 378 |
Ending Balance | 626 | 835 | 339 |
Unallocated [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 734 | ' | ' |
Provision for Loan Losses | -297 | 420 | 734 |
Charge-Offs | ' | ' | ' |
Recoveries | ' | ' | ' |
Ending Balance | 437 | 420 | 734 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 2,472 | 3,193 | 3,193 |
Provision for Loan Losses | 114 | -265 | -991 |
Charge-Offs | -37 | -33 | -168 |
Recoveries | 19 | 115 | 438 |
Ending Balance | 2,568 | 3,010 | 2,472 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 231 | 276 | 276 |
Provision for Loan Losses | 3 | -47 | -18 |
Charge-Offs | ' | ' | -28 |
Recoveries | ' | ' | 1 |
Ending Balance | 234 | 229 | 231 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 2,855 | 3,315 | 3,315 |
Provision for Loan Losses | 444 | -133 | -317 |
Charge-Offs | -28 | ' | -269 |
Recoveries | ' | 52 | 126 |
Ending Balance | 3,271 | 3,234 | 2,855 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' | ' |
Allowance for Loan and Lease Losses [Roll Forward] | ' | ' | ' |
Beginning Balance | 1,418 | 1,792 | 1,792 |
Provision for Loan Losses | -339 | 86 | 281 |
Charge-Offs | -170 | -62 | -765 |
Recoveries | 327 | 7 | 110 |
Ending Balance | $1,236 | $1,823 | $1,418 |
LOANS_RECEIVABLE_NET_Details_4
LOANS RECEIVABLE, NET (Details 4) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | $232 | $349 |
Loans Collectively Evaluated for Impairment | 8,169 | 7,742 |
Ending Balance | 8,401 | 8,091 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 25,002 | 27,446 |
Collectively Evaluated for Impairment | 554,965 | 515,964 |
Total | 579,967 | 543,410 |
Consumer loans [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | 6 | 20 |
Loans Collectively Evaluated for Impairment | 23 | 22 |
Ending Balance | 29 | 42 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 26 | 40 |
Collectively Evaluated for Impairment | 2,813 | 2,775 |
Total | 2,839 | 2,815 |
Commercial business loans [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | 4 | 6 |
Loans Collectively Evaluated for Impairment | 622 | 333 |
Ending Balance | 626 | 339 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 2,293 | 2,560 |
Collectively Evaluated for Impairment | 40,468 | 22,986 |
Total | 42,761 | 25,546 |
Unallocated [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | ' | ' |
Loans Collectively Evaluated for Impairment | 437 | 734 |
Ending Balance | 437 | 734 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | ' | ' |
Collectively Evaluated for Impairment | ' | ' |
Total | ' | ' |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | 167 | 103 |
Loans Collectively Evaluated for Impairment | 2,401 | 2,369 |
Ending Balance | 2,568 | 2,472 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 5,747 | 6,220 |
Collectively Evaluated for Impairment | 194,923 | 177,516 |
Total | 200,670 | 183,736 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | ' | ' |
Loans Collectively Evaluated for Impairment | 234 | 231 |
Ending Balance | 234 | 231 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | ' | 125 |
Collectively Evaluated for Impairment | 23,681 | 23,217 |
Total | 23,681 | 23,342 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | 55 | 55 |
Loans Collectively Evaluated for Impairment | 3,216 | 2,800 |
Ending Balance | 3,271 | 2,855 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 16,529 | 17,008 |
Collectively Evaluated for Impairment | 233,368 | 230,859 |
Total | 249,897 | 247,867 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Allowance for loan losses ending balances: | ' | ' |
Loans Individually Evaluated for Impairment | ' | 165 |
Loans Collectively Evaluated for Impairment | 1,236 | 1,253 |
Ending Balance | 1,236 | 1,418 |
Loans receivable ending balances: | ' | ' |
Individually Evaluated for Impairment | 407 | 1,493 |
Collectively Evaluated for Impairment | 59,712 | 58,611 |
Total | $60,119 | $60,104 |
LOANS_RECEIVABLE_NET_Details_5
LOANS RECEIVABLE, NET (Details 5) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $24,020 | ' | $26,334 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 982 | ' | 1,112 |
Impaired Financing Receivable, Recorded Investment | 25,002 | ' | 27,446 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 30,926 | ' | 33,284 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,083 | ' | 1,212 |
Impaired Financing Receivable, Unpaid Principal Balance | 32,009 | ' | 34,496 |
Impaired Financing Receivable, Related Allowance | 232 | ' | 349 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 24,867 | 22,703 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 868 | 10,458 | ' |
Impaired Financing Receivable, Average Recorded Investment | 25,735 | 33,161 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 284 | 153 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 11 | -3 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | 295 | 150 | ' |
Consumer loans [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 20 | ' | 20 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 6 | ' | 20 |
Impaired Financing Receivable, Recorded Investment | 26 | ' | 40 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 546 | ' | 404 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 6 | ' | 20 |
Impaired Financing Receivable, Unpaid Principal Balance | 552 | ' | 424 |
Impaired Financing Receivable, Related Allowance | 6 | ' | 20 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 23 | 37 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 7 | 20 | ' |
Impaired Financing Receivable, Average Recorded Investment | 30 | 57 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 4 | ' | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | ' | ' | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | 4 | ' | ' |
Commercial business loans [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 2,289 | ' | 2,554 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 4 | ' | 6 |
Impaired Financing Receivable, Recorded Investment | 2,293 | ' | 2,560 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,335 | ' | 3,599 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 4 | ' | 6 |
Impaired Financing Receivable, Unpaid Principal Balance | 3,339 | ' | 3,605 |
Impaired Financing Receivable, Related Allowance | 4 | ' | 6 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 2,480 | 2,238 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 5 | 1,248 | ' |
Impaired Financing Receivable, Average Recorded Investment | 2,485 | 3,486 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 77 | 30 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | ' | -2 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | 77 | 28 | ' |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 5,084 | ' | 5,713 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 663 | ' | 507 |
Impaired Financing Receivable, Recorded Investment | 5,747 | ' | 6,220 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 7,016 | ' | 7,682 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 764 | ' | 607 |
Impaired Financing Receivable, Unpaid Principal Balance | 7,780 | ' | 8,289 |
Impaired Financing Receivable, Related Allowance | 167 | ' | 103 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 5,107 | 4,724 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 545 | 2,590 | ' |
Impaired Financing Receivable, Average Recorded Investment | 5,652 | 7,314 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 53 | 28 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 5 | ' | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | 58 | 28 | ' |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | ' | ' | 125 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment | ' | ' | 125 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 347 | ' | 472 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | ' | ' | ' |
Impaired Financing Receivable, Unpaid Principal Balance | 347 | ' | 472 |
Impaired Financing Receivable, Related Allowance | ' | ' | ' |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | ' | 83 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | ' | ' | ' |
Impaired Financing Receivable, Average Recorded Investment | ' | 83 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | ' | -1 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | ' | ' | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | ' | -1 | ' |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 16,220 | ' | 16,695 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 309 | ' | 313 |
Impaired Financing Receivable, Recorded Investment | 16,529 | ' | 17,008 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 16,764 | ' | 17,240 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 309 | ' | 313 |
Impaired Financing Receivable, Unpaid Principal Balance | 17,073 | ' | 17,553 |
Impaired Financing Receivable, Related Allowance | 55 | ' | 55 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 16,807 | 15,245 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 311 | 4,372 | ' |
Impaired Financing Receivable, Average Recorded Investment | 17,118 | 19,617 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 148 | 102 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 6 | -1 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | 154 | 101 | ' |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' | ' |
Impaired Financing Receivable, Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 407 | ' | 1,227 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | ' | ' | 266 |
Impaired Financing Receivable, Recorded Investment | 407 | ' | 1,493 |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,918 | ' | 3,887 |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | ' | ' | 266 |
Impaired Financing Receivable, Unpaid Principal Balance | 2,918 | ' | 4,153 |
Impaired Financing Receivable, Related Allowance | ' | ' | 165 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 450 | 376 | ' |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | ' | 2,228 | ' |
Impaired Financing Receivable, Average Recorded Investment | 450 | 2,604 | ' |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ' | ' | ' |
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 2 | -6 | ' |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | ' | ' | ' |
Impaired Financing Receivable, Interest Income, Accrual Method | $2 | ($6) | ' |
LOANS_RECEIVABLE_NET_Details_6
LOANS RECEIVABLE, NET (Details 6) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | $3,690 | $557 |
60-89 days past due | ' | 1,034 |
90 days or more past due | 8,515 | 10,554 |
Total Past Due | 12,205 | 12,145 |
Current | 567,762 | 531,265 |
Total loans receivable | 579,967 | 543,410 |
Nonaccrual | 9,019 | 11,079 |
Consumer loans [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | ' | ' |
60-89 days past due | ' | ' |
90 days or more past due | 6 | 7 |
Total Past Due | 6 | 7 |
Current | 2,833 | 2,808 |
Total loans receivable | 2,839 | 2,815 |
Nonaccrual | 7 | 20 |
Commercial business loans [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | 76 | ' |
60-89 days past due | ' | ' |
90 days or more past due | 200 | 431 |
Total Past Due | 276 | 431 |
Current | 42,485 | 25,115 |
Total loans receivable | 42,761 | 25,546 |
Nonaccrual | 204 | 437 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | 2,331 | 231 |
60-89 days past due | ' | 1,034 |
90 days or more past due | 3,384 | 3,440 |
Total Past Due | 5,715 | 4,705 |
Current | 194,955 | 179,031 |
Total loans receivable | 200,670 | 183,736 |
Nonaccrual | 3,841 | 3,902 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | 647 | ' |
60-89 days past due | ' | ' |
90 days or more past due | ' | 125 |
Total Past Due | 647 | 125 |
Current | 23,034 | 23,217 |
Total loans receivable | 23,681 | 23,342 |
Nonaccrual | ' | 125 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | 269 | 273 |
60-89 days past due | ' | ' |
90 days or more past due | 4,532 | 5,074 |
Total Past Due | 4,801 | 5,347 |
Current | 245,096 | 242,520 |
Total loans receivable | 249,897 | 247,867 |
Nonaccrual | 4,571 | 5,114 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Aging of the recorded investment in past due loans by class of loans | ' | ' |
30-59 days past due | 367 | 53 |
60-89 days past due | ' | ' |
90 days or more past due | 393 | 1,477 |
Total Past Due | 760 | 1,530 |
Current | 59,359 | 58,574 |
Total loans receivable | 60,119 | 60,104 |
Nonaccrual | $396 | $1,481 |
LOANS_RECEIVABLE_NET_Details_7
LOANS RECEIVABLE, NET (Details 7) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total loans receivable | $579,967 | $543,410 |
Pass [Member] | ' | ' |
Total loans receivable | 556,995 | 518,545 |
Special Mention [Member] | ' | ' |
Total loans receivable | 12,993 | 12,893 |
Substandard [Member] | ' | ' |
Total loans receivable | 9,979 | 11,972 |
Consumer loans [Member] | ' | ' |
Total loans receivable | 2,839 | 2,815 |
Consumer loans [Member] | Pass [Member] | ' | ' |
Total loans receivable | 2,832 | 2,795 |
Consumer loans [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | ' | ' |
Consumer loans [Member] | Substandard [Member] | ' | ' |
Total loans receivable | 7 | 20 |
Commercial business loans [Member] | ' | ' |
Total loans receivable | 42,761 | 25,546 |
Commercial business loans [Member] | Pass [Member] | ' | ' |
Total loans receivable | 41,617 | 24,823 |
Commercial business loans [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | 939 | 286 |
Commercial business loans [Member] | Substandard [Member] | ' | ' |
Total loans receivable | 204 | 437 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Total loans receivable | 200,670 | 183,736 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Pass [Member] | ' | ' |
Total loans receivable | 195,547 | 177,878 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | 1,052 | 1,679 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Substandard [Member] | ' | ' |
Total loans receivable | 4,071 | 4,179 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Total loans receivable | 23,681 | 23,342 |
Loans secured by Real Estate [Member] | Home equity [Member] | Pass [Member] | ' | ' |
Total loans receivable | 23,681 | 23,217 |
Loans secured by Real Estate [Member] | Home equity [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | ' | ' |
Loans secured by Real Estate [Member] | Home equity [Member] | Substandard [Member] | ' | ' |
Total loans receivable | ' | 125 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Total loans receivable | 249,897 | 247,867 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Pass [Member] | ' | ' |
Total loans receivable | 233,914 | 231,269 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | 10,712 | 10,633 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Substandard [Member] | ' | ' |
Total loans receivable | 5,271 | 5,965 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Total loans receivable | 60,119 | 60,104 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Pass [Member] | ' | ' |
Total loans receivable | 59,404 | 58,563 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Special Mention [Member] | ' | ' |
Total loans receivable | 290 | 295 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Substandard [Member] | ' | ' |
Total loans receivable | $426 | $1,246 |
LOANS_RECEIVABLE_NET_Details_8
LOANS RECEIVABLE, NET (Details 8) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Total loans receivable | $579,967 | $543,410 |
Nonaccrual | 9,019 | 11,079 |
Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 570,948 | 532,331 |
Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 9,019 | 11,079 |
90 days or more past due | ' | ' |
Nonaccrual | 9,019 | 11,079 |
Consumer loans [Member] | ' | ' |
Total loans receivable | 2,839 | 2,815 |
Nonaccrual | 7 | 20 |
Consumer loans [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 2,832 | 2,795 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 7 | 20 |
90 days or more past due | ' | ' |
Nonaccrual | 7 | 20 |
Commercial business loans [Member] | ' | ' |
Total loans receivable | 42,761 | 25,546 |
Nonaccrual | 204 | 437 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 42,557 | 25,109 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 204 | 437 |
90 days or more past due | ' | ' |
Nonaccrual | 204 | 437 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Total loans receivable | 200,670 | 183,736 |
Nonaccrual | 3,841 | 3,902 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 196,829 | 179,834 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 3,841 | 3,902 |
90 days or more past due | ' | ' |
Nonaccrual | 3,841 | 3,902 |
Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Total loans receivable | 23,681 | 23,342 |
Nonaccrual | ' | 125 |
Loans secured by Real Estate [Member] | Home equity [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 23,681 | 23,217 |
Loans secured by Real Estate [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | ' | 125 |
90 days or more past due | ' | ' |
Nonaccrual | ' | 125 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Total loans receivable | 249,897 | 247,867 |
Nonaccrual | 4,571 | 5,114 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 245,326 | 242,753 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 4,571 | 5,114 |
90 days or more past due | ' | ' |
Nonaccrual | 4,571 | 5,114 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Total loans receivable | 60,119 | 60,104 |
Nonaccrual | 396 | 1,481 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | ' | ' |
Total loans receivable | 59,723 | 58,623 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | ' | ' |
Total loans receivable | 396 | 1,481 |
90 days or more past due | ' | ' |
Nonaccrual | $396 | $1,481 |
LOANS_RECEIVABLE_NET_Details_N
LOANS RECEIVABLE, NET (Details Narrative) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans Receivable Net Details 2 | ' | ' |
Committed to advance additional funds in connection with impaired loans | $230 | $230 |
Loans designated as troubled debt restructurings | 23,000 | 23,700 |
Troubled debt restructurings, still accruing | 15,700 | 16,100 |
Loans serviced for the benefit of others under loan participation arrangements | $2,200 | $2,300 |
REAL_ESTATE_ACQUIRED_THROUGH_F2
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Real Estate Acquired Through Foreclosure Details | ' | ' |
Balance at beginning of year | $6,273 | $6,284 |
Additions | 837 | 4,140 |
Sales | -1,129 | -3,302 |
Write downs | -239 | -849 |
Balance at end of year | $5,742 | $6,273 |
REAL_ESTATE_ACQUIRED_THROUGH_F3
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Real Estate Acquired Through Foreclosure | $5,742 | $6,273 | $6,284 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 122 | 959 | ' |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 1,548 | 1,781 | ' |
Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' | ' |
Real Estate Acquired Through Foreclosure | $4,072 | $3,533 | ' |
DEPOSITS_Details
DEPOSITS (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Deposits Details | ' | ' | ' |
Noninterest-bearing demand accounts | $88,105 | ' | $83,500 |
Interest-bearing demand accounts | 105,457 | ' | 92,067 |
Savings accounts | 25,153 | ' | 17,816 |
Money market accounts | 218,861 | ' | 220,915 |
Less than $100,000 | 214,772 | ' | 195,239 |
$100,000 or more | 93,320 | ' | 88,044 |
Total certificates of deposit | 308,092 | ' | 283,283 |
Total deposits | 745,668 | 663,808 | 697,581 |
Brokered certificates of deposit | 80,900 | ' | 61,800 |
Institutional certificates of deposit | 38,200 | ' | 40,000 |
Interest Expense, Time Deposits, $100,000 or More | $178 | $158 | ' |
ESTIMATED_FAIR_VALUE_OF_FINANC2
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Financial assets: | ' | ' | ' |
Cash and due from banks | $6,553 | $4,489 | ' |
Interest-bearing cash | 9,887 | 34,176 | ' |
Securities available for sale | 199,023 | 167,535 | ' |
Securities held to maturity | 24,242 | 24,554 | ' |
Federal Home Loan Bank stock | 3,380 | 4,103 | ' |
Other investments | 1,921 | 1,858 | ' |
Derivative assets | 1,216 | 1,412 | ' |
Loans held for sale | 31,899 | 36,897 | 97,300 |
Loans receivable, net | 571,388 | 535,221 | 501,375 |
Accrued interest receivable | 2,784 | 2,802 | ' |
Mortgage servicing rights | 10,003 | 10,908 | ' |
Financial liabilities: | ' | ' | ' |
Deposits | 745,668 | 697,581 | 663,808 |
Short-term borrowed funds | 5,300 | 10,300 | ' |
Long-term debt | 69,465 | 74,540 | ' |
Derivative liabilities | ' | 55 | ' |
Accrued interest payable | 324 | 311 | ' |
Fair Value [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and due from banks | 6,553 | 4,489 | ' |
Interest-bearing cash | 9,887 | 34,176 | ' |
Securities available for sale | 199,023 | 167,535 | ' |
Securities held to maturity | 25,076 | 23,547 | ' |
Federal Home Loan Bank stock | 3,380 | 4,103 | ' |
Other investments | 1,921 | 1,858 | ' |
Derivative assets | 1,216 | 1,412 | ' |
Loans held for sale | 32,153 | 37,041 | ' |
Loans receivable, net | 580,366 | 524,142 | ' |
Accrued interest receivable | 2,784 | 2,802 | ' |
Mortgage servicing rights | 15,938 | 17,718 | ' |
Financial liabilities: | ' | ' | ' |
Deposits | 744,363 | 696,674 | ' |
Short-term borrowed funds | 5,300 | 10,300 | ' |
Long-term debt | 66,085 | 71,462 | ' |
Derivative liabilities | ' | 55 | ' |
Accrued interest payable | 324 | 311 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and due from banks | 6,553 | 4,489 | ' |
Interest-bearing cash | 9,887 | 34,176 | ' |
Securities available for sale | ' | ' | ' |
Securities held to maturity | ' | ' | ' |
Federal Home Loan Bank stock | ' | ' | ' |
Other investments | ' | ' | ' |
Derivative assets | 247 | 428 | ' |
Loans held for sale | ' | ' | ' |
Loans receivable, net | ' | ' | ' |
Accrued interest receivable | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' |
Financial liabilities: | ' | ' | ' |
Deposits | ' | ' | ' |
Short-term borrowed funds | ' | ' | ' |
Long-term debt | ' | ' | ' |
Derivative liabilities | ' | ' | ' |
Accrued interest payable | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and due from banks | ' | ' | ' |
Interest-bearing cash | ' | ' | ' |
Securities available for sale | 199,023 | 167,535 | ' |
Securities held to maturity | 15,683 | 15,177 | ' |
Federal Home Loan Bank stock | ' | ' | ' |
Other investments | ' | ' | ' |
Derivative assets | 969 | 984 | ' |
Loans held for sale | 32,153 | 37,041 | ' |
Loans receivable, net | 555,596 | 497,045 | ' |
Accrued interest receivable | 2,784 | 2,802 | ' |
Mortgage servicing rights | 15,938 | 17,718 | ' |
Financial liabilities: | ' | ' | ' |
Deposits | 744,363 | 696,674 | ' |
Short-term borrowed funds | 5,300 | 10,300 | ' |
Long-term debt | 66,085 | 71,462 | ' |
Derivative liabilities | ' | 55 | ' |
Accrued interest payable | 324 | 311 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and due from banks | ' | ' | ' |
Interest-bearing cash | ' | ' | ' |
Securities available for sale | ' | ' | ' |
Securities held to maturity | 9,393 | 8,370 | ' |
Federal Home Loan Bank stock | 3,380 | 4,103 | ' |
Other investments | 1,921 | 1,858 | ' |
Derivative assets | ' | ' | ' |
Loans held for sale | ' | ' | ' |
Loans receivable, net | 24,770 | 27,097 | ' |
Accrued interest receivable | ' | ' | ' |
Mortgage servicing rights | ' | ' | ' |
Financial liabilities: | ' | ' | ' |
Deposits | ' | ' | ' |
Short-term borrowed funds | ' | ' | ' |
Long-term debt | ' | ' | ' |
Derivative liabilities | ' | ' | ' |
Accrued interest payable | ' | ' | ' |
Carrying Amount [Member] | ' | ' | ' |
Financial assets: | ' | ' | ' |
Cash and due from banks | 6,553 | 4,489 | ' |
Interest-bearing cash | 9,887 | 34,176 | ' |
Securities available for sale | 199,023 | 167,535 | ' |
Securities held to maturity | 24,242 | 24,554 | ' |
Federal Home Loan Bank stock | 3,380 | 4,103 | ' |
Other investments | 1,921 | 1,858 | ' |
Derivative assets | 1,216 | 1,412 | ' |
Loans held for sale | 31,899 | 36,897 | ' |
Loans receivable, net | 571,388 | 535,221 | ' |
Accrued interest receivable | 2,784 | 2,802 | ' |
Mortgage servicing rights | 10,003 | 10,908 | ' |
Financial liabilities: | ' | ' | ' |
Deposits | 745,668 | 697,581 | ' |
Short-term borrowed funds | 5,300 | 10,300 | ' |
Long-term debt | 69,465 | 74,540 | ' |
Derivative liabilities | ' | 55 | ' |
Accrued interest payable | $324 | $311 | ' |
ESTIMATED_FAIR_VALUE_OF_FINANC3
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Designated as Hedging Instrument [Member] | ' | ' |
Derivative Assets | ' | ' |
Asset derivatives, Fair value | $1,216 | $1,412 |
Notional Value, Assets | 279,947 | 128,516 |
Derivative Liability | ' | ' |
Liability derivatives, Fair value | ' | 55 |
Notional Value, Liability | ' | 103,614 |
Designated as Hedging Instrument [Member] | Mortgage loan interest rate lock commitments [Member] | ' | ' |
Derivative Assets | ' | ' |
Asset derivatives, Fair value | 438 | ' |
Notional Value, Assets | 131,955 | ' |
Derivative Liability | ' | ' |
Liability derivatives, Fair value | ' | 55 |
Notional Value, Liability | ' | 103,614 |
Designated as Hedging Instrument [Member] | Mortgage loan forward sales commitments [Member] | ' | ' |
Derivative Assets | ' | ' |
Asset derivatives, Fair value | 261 | 106 |
Notional Value, Assets | 20,992 | 20,516 |
Designated as Hedging Instrument [Member] | Mortgage-backed securities forward sales commitments [Member] | ' | ' |
Derivative Assets | ' | ' |
Asset derivatives, Fair value | 270 | 878 |
Notional Value, Assets | 107,000 | 88,000 |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ' | ' |
Derivative Assets | ' | ' |
Asset derivatives, Fair value | 247 | 428 |
Notional Value, Assets | 20,000 | 20,000 |
Commitments to Extend Credit [Member] | ' | ' |
Off-Balance Sheet Financial Instruments: | ' | ' |
Notional Amount | 39,528 | 38,595 |
Estimated Fair Value | ' | ' |
Standby Letters of Credit [Member] | ' | ' |
Off-Balance Sheet Financial Instruments: | ' | ' |
Notional Amount | 445 | 526 |
Estimated Fair Value | ' | ' |
ESTIMATED_FAIR_VALUE_OF_FINANC4
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Securities available for sale | $199,023 | $167,535 | ' |
Loans held for sale | 31,899 | 36,897 | 97,300 |
Derivative Asset | 1,216 | 1,412 | ' |
Brokered deposits | 80,900 | 61,800 | ' |
Derivative Liability | ' | 55 | ' |
Municipal securities [Member] | ' | ' | ' |
Securities available for sale | 37,458 | 38,499 | ' |
US government agencies [Member] | ' | ' | ' |
Securities available for sale | 7,939 | 5,175 | ' |
Mortgage-backed securities Agency [Member] | ' | ' | ' |
Securities available for sale | 96,265 | 69,929 | ' |
Mortgage-backed securities Non-agency [Member] | ' | ' | ' |
Securities available for sale | 57,361 | 53,932 | ' |
Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Securities available for sale | ' | ' | ' |
Loans held for sale | ' | ' | ' |
Derivative Asset | 247 | 428 | ' |
Derivative Liability | ' | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Securities available for sale | 199,023 | 167,535 | ' |
Loans held for sale | 32,153 | 37,041 | ' |
Derivative Asset | 969 | 984 | ' |
Derivative Liability | ' | 55 | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Securities available for sale | ' | ' | ' |
Loans held for sale | ' | ' | ' |
Derivative Asset | ' | ' | ' |
Derivative Liability | ' | ' | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' |
Assets and liabilities measured at fair value | 247 | 428 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate swaps [Member] | ' | ' | ' |
Derivative Asset | 247 | 428 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' |
Loans held for sale | 32,153 | 37,041 | ' |
Brokered deposits | 4,948 | 4,948 | ' |
Assets and liabilities measured at fair value | 237,093 | 210,563 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan interest rate lock commitments [Member] | ' | ' | ' |
Derivative Asset | 438 | ' | ' |
Derivative Liability | ' | 55 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan forward sales commitments [Member] | ' | ' | ' |
Derivative Asset | 261 | 106 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities forward sales commitments [Member] | ' | ' | ' |
Derivative Asset | 270 | 878 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member] | ' | ' | ' |
Securities available for sale | 37,458 | 38,499 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US government agencies [Member] | ' | ' | ' |
Securities available for sale | 7,939 | 5,175 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Agency [Member] | ' | ' | ' |
Securities available for sale | 96,265 | 69,929 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Non-agency [Member] | ' | ' | ' |
Securities available for sale | 57,361 | 53,932 | ' |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' |
Assets and liabilities measured at fair value | ' | ' | ' |
ESTIMATED_FAIR_VALUE_OF_FINANC5
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) (us-gaap:FairValueMeasurementsRecurringMember, USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Consumer loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Commercial business loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 1 [Member] | Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Consumer loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Commercial business loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 2 [Member] | Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | ' |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 30,512 | 33,370 |
Fair Value, Inputs, Level 3 [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 122 | 959 |
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 1,548 | 1,781 |
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 4,072 | 3,533 |
Fair Value, Inputs, Level 3 [Member] | Consumer loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 20 | 20 |
Fair Value, Inputs, Level 3 [Member] | Commercial business loans [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 2,289 | 2,554 |
Fair Value, Inputs, Level 3 [Member] | Loans secured by Real Estate [Member] | One-to-four family [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 5,580 | 6,117 |
Fair Value, Inputs, Level 3 [Member] | Loans secured by Real Estate [Member] | Home equity [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | ' | 125 |
Fair Value, Inputs, Level 3 [Member] | Loans secured by Real Estate [Member] | Commercial real estate [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | 16,474 | 16,953 |
Fair Value, Inputs, Level 3 [Member] | Loans secured by Real Estate [Member] | Construction and development [Member] | ' | ' |
Assets measured at fair value on a nonrecurring basis | $407 | $1,328 |
ESTIMATED_FAIR_VALUE_OF_FINANC6
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) (Fair Value, Inputs, Level 3 [Member]) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Impaired Loans [Member] | ' | ' |
Valuation Techniques | 'Appraisal Value | 'Appraisal Value |
Significant Unobservable Inputs | 'Appraisals and or sales of comparable properties | 'Appraisals and or sales of comparable properties |
Impaired Loans [Member] | Minimum [Member] | ' | ' |
Significant Unobservable Input Range | 10.00% | 10.00% |
Impaired Loans [Member] | Maximum [Member] | ' | ' |
Significant Unobservable Input Range | 20.00% | 20.00% |
Real estate owned [Member] | ' | ' |
Valuation Techniques | 'Appraisal Value/ Comparison Sales/ Other estimates | 'Appraisal Value/ Comparison Sales/ Other estimates |
Significant Unobservable Inputs | 'Appraisals and or sales of comparable properties | 'Appraisals and or sales of comparable properties |
Real estate owned [Member] | Minimum [Member] | ' | ' |
Significant Unobservable Input Range | 10.00% | 10.00% |
Real estate owned [Member] | Maximum [Member] | ' | ' |
Significant Unobservable Input Range | 20.00% | 20.00% |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share Details | ' | ' |
Weighted average shares outstanding | 3,851,426 | 3,837,984 |
Effect of dilutive securities | 84,661 | ' |
Average shares outstanding | 3,936,087 | 3,837,984 |
Stock Split, Conversion Ratio | 2 | ' |
Average market price of dilutive securities under the treasury stock method (per share) | $18.58 | $9.46 |
Stock options not considered in computing diluted earnings per common share (in shares) | 1,000 | 16,480 |
SUPPLEMENTAL_SEGMENT_INFORMATI2
SUPPLEMENTAL SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income | $8,411 | $8,229 |
Interest expense | 1,331 | 1,502 |
Net interest income (expense) | 7,080 | 6,727 |
Provision for loan losses | ' | ' |
Noninterest income (expense) from external customers | 5,369 | 13,383 |
Noninterest expense | 9,606 | 13,023 |
Income (loss) before income taxes | 2,843 | 7,087 |
Income tax expense (benefit) | 899 | 2,664 |
Net income (loss) | 1,944 | 4,423 |
Community Banking [Member] | ' | ' |
Interest income | 8,091 | 7,816 |
Interest expense | 1,197 | 1,276 |
Net interest income (expense) | 6,894 | 6,540 |
Provision for loan losses | ' | ' |
Noninterest income (expense) from external customers | 915 | 705 |
Intersegment noninterest income | ' | 42 |
Noninterest expense | 4,114 | 5,393 |
Intersegment noninterest expense | 1,270 | 1,213 |
Income (loss) before income taxes | 2,425 | 681 |
Income tax expense (benefit) | 735 | 275 |
Net income (loss) | 1,690 | 406 |
Mortgage Banking [Member] | ' | ' |
Interest income | 285 | 393 |
Interest expense | ' | 47 |
Net interest income (expense) | 285 | 346 |
Provision for loan losses | ' | ' |
Noninterest income (expense) from external customers | 4,444 | 12,655 |
Intersegment noninterest income | 72 | 127 |
Noninterest expense | 3,846 | 6,324 |
Intersegment noninterest expense | 240 | 282 |
Income (loss) before income taxes | 715 | 6,522 |
Income tax expense (benefit) | 275 | 2,429 |
Net income (loss) | 440 | 4,093 |
Other [Member] | ' | ' |
Interest income | 4 | 4 |
Interest expense | 134 | 181 |
Net interest income (expense) | -130 | -177 |
Provision for loan losses | ' | ' |
Noninterest income (expense) from external customers | 10 | 23 |
Intersegment noninterest income | 1,510 | 1,453 |
Noninterest expense | 1,646 | 1,306 |
Intersegment noninterest expense | ' | ' |
Income (loss) before income taxes | -256 | -7 |
Income tax expense (benefit) | -95 | -3 |
Net income (loss) | -161 | -4 |
Eliminations [Member] | ' | ' |
Interest income | 31 | 16 |
Interest expense | ' | -2 |
Net interest income (expense) | 31 | 18 |
Provision for loan losses | ' | ' |
Noninterest income (expense) from external customers | ' | ' |
Intersegment noninterest income | -1,582 | -1,622 |
Noninterest expense | ' | ' |
Intersegment noninterest expense | -1,510 | -1,495 |
Income (loss) before income taxes | -41 | -109 |
Income tax expense (benefit) | -16 | -37 |
Net income (loss) | ($25) | ($72) |
SUPPLEMENTAL_SEGMENT_INFORMATI3
SUPPLEMENTAL SEGMENT INFORMATION (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 |
In Thousands, unless otherwise specified | |||
Assets | $918,800 | $881,584 | $857,153 |
Loans receivable, net | 571,388 | 535,221 | 501,375 |
Loans held for sale | 31,899 | 36,897 | 97,300 |
Deposits | 745,668 | 697,581 | 663,808 |
Borrowed funds | 74,765 | ' | 101,251 |
Community Banking [Member] | ' | ' | ' |
Assets | 918,290 | ' | 840,776 |
Loans receivable, net | 569,013 | ' | 500,526 |
Loans held for sale | 421 | ' | 63,185 |
Deposits | 753,919 | ' | 665,942 |
Borrowed funds | 59,301 | ' | 79,601 |
Mortgage Banking [Member] | ' | ' | ' |
Assets | 58,654 | ' | 60,235 |
Loans receivable, net | 3,185 | ' | 1,565 |
Loans held for sale | 31,478 | ' | 34,115 |
Deposits | ' | ' | ' |
Borrowed funds | ' | ' | 3,486 |
Other [Member] | ' | ' | ' |
Assets | 103,667 | ' | 92,997 |
Loans receivable, net | ' | ' | ' |
Loans held for sale | ' | ' | ' |
Deposits | ' | ' | ' |
Borrowed funds | 15,465 | ' | 18,315 |
Eliminations [Member] | ' | ' | ' |
Assets | -161,811 | ' | -136,855 |
Loans receivable, net | -810 | ' | -716 |
Loans held for sale | ' | ' | ' |
Deposits | -8,251 | ' | -2,134 |
Borrowed funds | ($1) | ' | ($151) |