Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | CAROLINA FINANCIAL CORP | |
Entity Central Index Key | 870,385 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
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? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 9,758,583 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,015 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 11,473 | $ 10,453 |
Interest-bearing cash | 10,617 | 10,694 |
Cash and cash equivalents | 22,090 | 21,147 |
Securities available-for-sale (cost of $313,312 at September 30, 2015 and $246,435 at December 31, 2014) | 313,981 | 251,717 |
Securities held-to-maturity (fair value of $17,975 at September 30, 2015 and $27,385 at December 31, 2014) | 17,112 | 25,544 |
Federal Home Loan Bank stock, at cost | 7,794 | 5,405 |
Other investments | 3,281 | 2,309 |
Derivative assets | 2,812 | 1,689 |
Loans held for sale | 31,697 | 40,912 |
Loans receivable, net of allowance for loan losses of $9,889 at September 30, 2015 and $9,035 at December 31, 2014 | 846,883 | 768,122 |
Premises and equipment, net | 32,099 | 31,075 |
Accrued interest receivable | 4,100 | 3,628 |
Real estate acquired through foreclosure, net | 2,744 | 3,239 |
Deferred tax assets, net | 4,907 | 4,715 |
Mortgage servicing rights | 11,079 | 10,181 |
Cash value life insurance | 21,893 | 21,532 |
Core deposit intangible | 3,046 | 3,303 |
Other assets | 4,647 | 4,499 |
Total assets | 1,330,165 | 1,199,017 |
Liabilities: | ||
Noninterest-bearing deposits | 188,191 | 142,900 |
Interest-bearing deposits | 845,760 | 821,290 |
Total deposits | 1,033,951 | 964,190 |
Short-term borrowed funds | 105,000 | 57,800 |
Long-term debt | 68,465 | 61,740 |
Derivative liabilities | 2,094 | 1,036 |
Drafts outstanding | 2,657 | 3,320 |
Advances from borrowers for insurance and taxes | 1,640 | 613 |
Accrued interest payable | 304 | 312 |
Reserve for mortgage repurchase losses | 4,088 | 4,999 |
Dividends payable to shareholders | 293 | 243 |
Accrued expenses and other liabilities | 7,433 | 11,064 |
Total liabilities | $ 1,225,925 | $ 1,105,317 |
Stockholders' equity: | ||
Preferred stock, par value $.01; 1,000,000 shares authorized at September 30, 2015 and December 31, 2014; no shares issued or outstanding | ||
Common stock, par value $.01; 15,000,000 and 10,000,000 shares authorized at September 30, 2015 and December 31, 2014, respectively; 9,763,383 and 9,717,043 issued and outstanding at September 30, 2015 and December 31, 2014, respectively | $ 98 | $ 97 |
Additional paid-in capital | 24,073 | 23,194 |
Retained earnings | 79,614 | 69,625 |
Accumulated other comprehensive income (loss), net of tax benefit | 455 | 784 |
Total stockholders' equity | 104,240 | 93,700 |
Total liabilities and stockholders' equity | $ 1,330,165 | $ 1,199,017 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Securities available for sale at cost | $ 313,312 | $ 246,435 |
Securities held-to-maturity at fair value | 17,975 | 27,385 |
Loans, allowance for loan losses | $ 9,889 | $ 9,035 |
Preferred stock, par value (in dollars per share) | $ .01 | $ .01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
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 | 15,000,000 | 10,000,000 |
Common stock, shares issued | 9,763,383 | 9,717,043 |
Common stock, shares outstanding | 9,763,383 | 9,717,043 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income | ||||
Loans | $ 10,345 | $ 7,975 | $ 30,273 | $ 21,965 |
Investment securities | 2,058 | 1,465 | 6,031 | 4,512 |
Dividends from FHLB | 93 | 34 | 238 | 103 |
Other interest income | 16 | 22 | 60 | 71 |
Total interest income | 12,512 | 9,496 | 36,602 | 26,651 |
Interest expense | ||||
Deposits | 1,122 | 894 | 3,094 | 2,607 |
Short-term borrowed funds | 75 | 30 | 217 | 46 |
Long-term debt | 426 | 514 | 1,391 | 1,538 |
Total interest expense | 1,623 | 1,438 | 4,702 | 4,191 |
Net interest income | $ 10,889 | $ 8,058 | $ 31,900 | $ 22,460 |
Provision for loan losses | ||||
Net interest income after provision for loan losses | $ 10,889 | $ 8,058 | $ 31,900 | $ 22,460 |
Noninterest income | ||||
Mortgage banking income | 4,753 | 3,294 | 13,874 | 9,174 |
Deposit service charges | $ 915 | 520 | 2,638 | 1,468 |
Net loss on extinguishment of debt | (38) | (1,215) | (69) | |
Net gain on sale of securities | $ 1,017 | 213 | 1,459 | 693 |
Fair value adjustments on interest rate swaps | $ (1,246) | $ (56) | $ (1,253) | (574) |
Net gain on sale of servicing assets | 775 | |||
Net increase in cash value life insurance | $ 172 | $ 178 | $ 530 | 551 |
Mortgage loan servicing income | 1,330 | 1,262 | 3,956 | 3,793 |
Other | 381 | 134 | 1,187 | 514 |
Total noninterest income | 7,322 | 5,507 | 21,176 | 16,325 |
Noninterest expense | ||||
Salaries and employee benefits | 7,204 | 5,865 | 21,453 | 16,724 |
Occupancy and equipment | 1,821 | 1,239 | 5,332 | 3,274 |
Marketing and public relations | 378 | 290 | 1,147 | 861 |
FDIC insurance | 190 | 162 | 540 | 425 |
Provision for mortgage loan repurchase losses | (250) | (250) | (750) | (500) |
Legal expense | 97 | 248 | 347 | 609 |
Other real estate expense, net | 4 | 75 | 114 | 382 |
Mortgage subservicing expense | 418 | 360 | 1,236 | 1,049 |
Amortization of mortgage servicing rights | 515 | 431 | 1,460 | 1,344 |
Other | 2,004 | 1,813 | 6,084 | 5,163 |
Total noninterest expense | 12,381 | 10,233 | 36,963 | 29,331 |
Income before income taxes | 5,830 | 3,332 | 16,113 | 9,454 |
Income tax expense | 1,949 | 931 | 5,302 | 2,861 |
Net income | $ 3,881 | $ 2,401 | $ 10,811 | $ 6,593 |
Earnings per common share: | ||||
Basic (per share) | $ 0.41 | $ 0.26 | $ 1.15 | $ 0.71 |
Diluted (per share) | $ 0.4 | $ 0.25 | $ 1.13 | $ 0.69 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 9,463,722 | 9,344,683 | 9,421,042 | 9,335,495 |
Diluted (in shares) | 9,674,994 | 9,548,695 | 9,595,991 | 9,513,882 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Consolidated Statements Of Comprehensive Income | ||||
Net income | $ 3,881 | $ 2,401 | $ 10,811 | $ 6,593 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized (loss) gain on securities | 1,150 | 361 | (834) | 5,023 |
Tax effect | (414) | (130) | 300 | (1,808) |
Reclassification adjustment for (gains) losses included in earnings | (1,017) | (213) | (1,459) | (693) |
Tax effect | $ 366 | $ 77 | 525 | $ 249 |
Transfer from held-to-maturity to available for sale securities | 1,604 | |||
Tax effect | (577) | |||
Accretion of unrealized losses on held-to-maturity securities previously recognized in other comprehensive income | $ 49 | 175 | $ 148 | |
Tax effect | (18) | (63) | (53) | |
Other comprehensive income (loss), net of tax | $ 85 | 126 | (329) | 2,866 |
Comprehensive income | $ 3,966 | $ 2,527 | $ 10,482 | $ 9,459 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2013 | $ 96 | $ 22,337 | $ 62,169 | $ (2,375) | $ 82,227 |
Beginning Balance (in shares) at Dec. 31, 2013 | 9,636,490 | ||||
Stock awards | $ 1 | 65 | 66 | ||
Stock awards (in shares) | 68,025 | ||||
Stock options exercised | 49 | 49 | |||
Stock options exercised (in shares) | 11,328 | ||||
Excess tax benefit in connection with equity awards | 126 | 126 | |||
Stock-based compensation expense, net | $ 490 | 490 | |||
Net income | $ 6,593 | 6,593 | |||
Dividends declared to stockholders | $ (612) | (612) | |||
Other comprehensive income, net of tax | $ 2,866 | 2,866 | |||
Ending Balance at Sep. 30, 2014 | $ 97 | $ 23,067 | $ 68,150 | 491 | 91,805 |
Ending Balance (in shares) at Sep. 30, 2014 | 9,715,843 | ||||
Beginning Balance at Dec. 31, 2014 | $ 97 | 23,194 | $ 69,625 | $ 784 | $ 93,700 |
Beginning Balance (in shares) at Dec. 31, 2014 | 9,717,043 | ||||
Stock awards | $ 1 | (1) | |||
Stock awards (in shares) | 39,291 | ||||
Vested stock awards surrendered in cashless exercise | (40) | $ (41) | $ (81) | ||
Vested stock awards surrendered in cashless exercise (in shares) | (6,567) | ||||
Stock options exercised | 70 | 70 | |||
Stock options exercised (in shares) | 13,616 | ||||
Excess tax benefit in connection with equity awards | 189 | 189 | |||
Stock-based compensation expense, net | $ 661 | 661 | |||
Net income | $ 10,811 | 10,811 | |||
Dividends declared to stockholders | $ (781) | (781) | |||
Other comprehensive income, net of tax | $ (329) | (329) | |||
Ending Balance at Sep. 30, 2015 | $ 98 | $ 24,073 | $ 79,614 | $ 455 | $ 104,240 |
Ending Balance (in shares) at Sep. 30, 2015 | 9,763,383 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 10,811 | $ 6,593 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Deferred tax benefit | 126 | 182 |
Amortization of unearned discount/premiums on investments, net | 2,377 | 1,906 |
Amortization of deferred loan fees | 989 | (2,088) |
Amortization of mortgage servicing rights | 1,460 | 1,344 |
Amortization of core deposit intangibles | 257 | 15 |
Gain on sale of available-for-sale securities, net | (1,459) | (693) |
Mortgage banking income | (13,874) | (9,174) |
Originations of loans held for sale | (820,109) | (736,211) |
Proceeds from sale of loans held for sale | 841,880 | 746,650 |
Loss on extinquishment of debt | (1,215) | (69) |
Provision for mortgage loan repurchase losses | (750) | (500) |
Mortgage loan losses paid, net of recoveries | (161) | (335) |
Fair value adjustments on interest rate swaps | 1,253 | 574 |
Stock-based compensation | 661 | 490 |
Decrease in cash surrender value of bank owned life insurance | 18 | 81 |
Depreciation | 1,318 | 859 |
Loss on disposals of premises and equipment | 8 | 8 |
Loss (gain) on sale of real estate acquired through foreclosure | $ 3 | (129) |
Write-down of real estate acquired through foreclosure | 351 | |
Gain on sale of servicing assets | (775) | |
Originations of mortgage servicing assets | $ (2,358) | (1,122) |
Decrease (increase) in: | ||
Accrued interest receivable | (472) | (186) |
Other assets | 303 | 1,800 |
Increase (decrease) in: | ||
Accrued interest payable | (8) | (12) |
Dividends payable to shareholders | 50 | 202 |
Accrued expenses and other liabilities | (3,645) | (2,501) |
Cash flows used in operating activities | 19,893 | 7,398 |
Activity in available-for-sale securities: | ||
Purchases | (189,117) | (134,519) |
Maturities, payments and calls | 38,876 | 26,739 |
Proceeds from sales | 94,638 | $ 56,164 |
Activity in held-to-maturity securities: | ||
Purchases | (497) | |
Maturities, payments and calls | 199 | $ 416 |
Increase in other investments | (967) | (69) |
Increase in Federal Home Loan Bank stock | (2,389) | (2,652) |
Increase in loans receivable, net | $ (80,942) | (115,271) |
Proceeds from the sale of servicing assets | 1,575 | |
Purchase of premises and equipment | $ (2,403) | $ (2,416) |
Proceeds from disposals of premises and equipment | 34 | |
Proceeds from sale of real estate acquired through foreclosure | $ 1,684 | $ 3,142 |
Increase in core deposit intangibles | (175) | |
Purchase of bank owned life insurance | $ (554) | $ (550) |
Distribution of bank owned life insurance | 175 | |
Cash flows used in investing activities | (141,263) | $ (167,616) |
Cash flows from financing activities: | ||
Net increase in deposit accounts | 69,761 | 86,371 |
Net increase in Federal Home Loan Bank advances | 54,285 | 64,931 |
Principal repayment of subordinated debt | (1,575) | (225) |
Net decrease in drafts outstanding | (663) | (623) |
Net increase in advances from borrowers for insurance and taxes | 1,027 | 567 |
Cash dividends paid on common stock | (781) | (612) |
Net increase in excess tax benefit in connection with equity awards | 189 | 126 |
Proceeds from exercise of stock options | 70 | 49 |
Cash flows provided by financing activities | 122,313 | 150,584 |
Net increase (decrease) in cash and cash equivalents | 943 | (9,634) |
Cash and cash equivalents, beginning of period | 21,147 | 38,665 |
Cash and cash equivalents, end of period | 22,090 | 29,031 |
Supplemental disclosure | ||
Cash paid for Interest on deposits and borrowed funds | 4,710 | 4,203 |
Cash paid for Income taxes paid, net of (refunds) | 4,261 | 3,061 |
Noncash investing and financing activities: | ||
Transfer of loans receivable to real estate acquired through foreclosure | 1,192 | $ 1,327 |
Transfer of held-to-maturity securities to available-for-sale securities | 12,652 | |
Change in unrealized gain on available-for-sale securities | $ (534) | $ 3,215 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2015 | |
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”). Crescent Mortgage Company operates as a wholly-owned subsidiary of CresCom Bank. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the 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 September 30, 2015 and December 31, 2014, 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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 20, 2015. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K. Management’s Estimates The financial statements are prepared in accordance with GAAP, 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 allowance for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowance 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 allowance for loan losses and valuation of 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 period. 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, issued on February 28, 2014. On October 15, 2014, the Board of Directors of the Company declared an additional two-for-one stock split to stockholders of record as of October 31, 2014, issued on November 14, 2014. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. Subsequent Events Subsequent events are material 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 October 21, 2015, the Company declared a $0.03 per share dividend to stockholders of record on December 18, 2015, payable January 7, 2016. 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 In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Receivables topic of the Accounting Standards Codification (“ASC”). The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (“OREO”). In addition, the amendments require a creditor reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments are effective for the Company for annual periods, and interim periods within those annual periods beginning after December 15, 2014 with early implementation of the guidance permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company applied the amendments prospectively. These amendments did not have a material effect on its financial statements. In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The new guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments will be effective for the Company for annual period beginning after December 15, 2014. These amendments did not have a material effect on its financial statements. In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments will be effective for the Company for fiscal years that begin after December 15, 2015. The Company will apply the guidance to stock awards with performance targets that are outstanding at the start of the first fiscal year in the financial statements and to all stock awards that are granted or modified after the effective date. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from GAAP. Existing GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. 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 | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014 follows: September 30, 2015 December 31, 2014 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 63,882 1,105 (188 ) 64,799 43,119 1,621 (23 ) 44,717 US government agencies 7,015 105 — 7,120 4,770 — (22 ) 4,748 Collateralized loan obligations 38,956 — (328 ) 38,628 25,883 11 (22 ) 25,872 Mortgage-backed securities: Agency 110,483 2,234 (125 ) 112,592 122,727 2,856 (41 ) 125,542 Non-agency 81,597 719 (394 ) 81,922 49,936 1,065 (163 ) 50,838 Total mortgage-backed securities 192,080 2,953 (519 ) 194,514 172,663 3,921 (204 ) 176,380 Trust preferred securities 11,379 1,228 (3,687 ) 8,920 — — — — Total $ 313,312 5,391 (4,722 ) 313,981 246,435 5,553 (271 ) 251,717 Securities held-to-maturity: Municipal securities $ 17,112 863 — 17,975 16,787 882 (17 ) 17,652 Trust preferred securities — — — — 8,757 3,125 (2,149 ) 9,733 Total $ 17,112 863 — 17,975 25,544 4,007 (2,166 ) 27,385 As of December 31, 2014, the Company had all trust preferred securities classified as held-to-maturity. As a result of the implementation of the regulatory changes in risk weightings and capital deductions dictated by Basel III, the Company transferred all trust preferred securities to available-for-sale during 2015. The transfer was in accordance with ASC 320-10-25-6; therefore, management has determined the transfer out of held-to-maturity is consistent with the original designation and does not taint the remaining portfolio. The amortized cost of the securities reclassified to available-for-sale from held-to-maturity was $11.4 million. The net unrealized gains recorded in other comprehensive income during 2015 as result of this reclassification were approximately $1.0 million. 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 at December 31, 2014. At December 31, 2014 Recognized in OCI Not Recognized in OCI Gross Unrealized Gross Unrealized Purchased Cumulative Carrying Amortized Estimated Collateralization Face Value OTTI Value Gains Losses Cost Gains Losses Fair Value Percentage (In thousands) Held-to-Maturity: Trust Preferred Securities Total A-Class $ 2,381 — 2,381 — (558 ) 1,823 336 (75 ) 2,084 175% - 378% Total B-Class 11,718 (2,635 ) 9,083 — (2,458 ) 6,625 1,788 (2,074 ) 6,339 96% - 111% Total C-Class 2,727 (1,340 ) 1,387 — (1,078 ) 309 1,001 — 1,310 92% - 92% $ 16,826 (3,975 ) 12,851 — (4,094 ) 8,757 3,125 (2,149 ) 9,733 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 September 30, 2015, the Company had one senior trust preferred that was split-rated with an amortized cost of $1.1 million and a fair value of $779,000 and the Company had six mezzanine trust preferred securities with an amortized cost of $10.3 million and a fair value of $8.1 million that was below investment grade. As of December 31, 2014, $0.9 million of the pooled trust preferred securities were investment grade, $1.0 million were split-rated, and $6.9 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. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2015 follows: At September 30, 2015 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ — — One to five years 289 294 Six to ten years 21,454 21,684 After ten years 291,569 292,003 Total $ 313,312 313,981 Securities held-to-maturity: Less than one year $ — — One to five years — — Six to ten years 4,852 4,947 After ten years 12,260 13,028 Total $ 17,112 17,975 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. The following table summarizes the gross realized gains and losses from sales of investment securities available-for-sale for the periods indicated. For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) Proceeds $ 32,829 27,604 94,638 56,164 Realized gains 1,026 340 1,605 860 Realized losses (9 ) (127 ) (146 ) (167 ) Total investment securities gains, net $ 1,017 213 1,459 693 At September 30, 2015, the Company had pledged with a market value of $48.7 million of securities for Federal Home Loan Bank (“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 September 30, 2015 are as follows: At September 30, 2015 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 $ 19,191 19,003 (188 ) — — — 19,191 19,003 (188 ) Collateralized loan obligations 25,249 25,021 (228 ) 9,707 9,607 (100 ) 34,956 34,628 (328 ) Mortgage-backed securities: Agency 22,540 22,417 (123 ) 866 864 (2 ) 23,406 23,281 (125 ) Non-agency 26,319 26,064 (255 ) 9,601 9,462 (139 ) 35,920 35,526 (394 ) Total mortgage-backed securities 48,859 48,481 (378 ) 10,467 10,326 (141 ) 59,326 58,807 (519 ) Trust preferred securities — — — 8,825 5,138 (3,687 ) 8,825 5,138 (3,687 ) Total $ 93,299 92,505 (794 ) 28,999 25,071 (3,928 ) 122,298 117,576 (4,722 ) Held-to-maturity: Municipal securities $ — — — — — — — — — 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, 2014 are as follows: At December 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 $ 2,479 2,475 (4 ) 1,504 1,485 (19 ) 3,983 3,960 (23 ) US government agencies 4,770 4,748 (22 ) — — — 4,770 4,748 (22 ) Collateralized loan obligations 14,708 14,686 (22 ) — — — 14,708 14,686 (22 ) Mortgage-backed securities: Agency 17,541 17,500 (41 ) — — — 17,541 17,500 (41 ) Non-agency 14,284 14,138 (146 ) 3,114 3,097 (17 ) 17,398 17,235 (163 ) Total mortgage-backed securities 31,825 31,638 (187 ) 3,114 3,097 (17 ) 34,939 34,735 (204 ) Total $ 53,782 53,547 (235 ) 4,618 4,582 (36 ) 58,400 58,129 (271 ) Held-to-maturity: Municipal securities $ — — — 2,363 2,346 (17 ) 2,363 2,346 (17 ) Trust preferred securities — — — 7,326 5,177 (2,149 ) 7,326 5,177 (2,149 ) Total $ — — — 9,689 7,523 (2,166 ) 9,689 7,523 (2,166 ) 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. As of September 30, 2015, trust preferred securities had an amortized cost of $11.4 million and a fair value of $8.9 million. For each trust preferred security, impairment testing is performed on a quarterly basis using a detailed cash flow analysis. The major assumptions used during the quarterly impairment testing 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, and 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), 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 September 30, 2015. At September 30, 2015 and December 31, 2014, the Company had 55 and 26, 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 or nine months ended September 30, 2015 or 2014. The Company had 1 municipal securities and 4 trust preferred securities within the held-to-maturity portfolio that were in an unrealized loss position at December 31, 2014. There were no securities held-to-maturity in an unrealized loss position at September 30, 2015. Management believes that there are no additional securities other-than-temporarily impaired at September 30, 2015. 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. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 3 – DERIVATIVES The derivative positions of the Company at September 30, 2015 and December 31, 2014 are as follows: At September 30, At December 31, 2015 2014 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Mortgage loan interest rate lock commitments $ 2,299 160,207 1,122 106,440 Mortgage loan forward sales commitments 513 20,959 567 27,292 $ 2,812 181,166 1,689 133,732 Derivative liabilities: Mortgage-backed securities forward sales commitments $ 773 112,301 506 93,000 Interest rate swaps 1,321 30,000 530 20,000 $ 2,094 142,301 1,036 113,000 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 mortgage banking income within noninterest income in the consolidated statements of operations. Derivative instruments not related to mortgage banking activities, were 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 statements 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 to consider such risk. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 4 - LOANS RECEIVABLE, NET Loans receivable, net at September 30, 2015 and December 31, 2014 are summarized by category as follows: At September 30, At December 31, 2015 2014 % of Total % of Total Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 298,882 34.85 % 252,819 32.48 % Home equity 23,915 2.79 % 27,547 3.54 % Commercial real estate 338,767 39.49 % 317,912 40.85 % Construction and development 81,352 9.48 % 92,008 11.82 % Consumer loans 5,529 0.64 % 5,675 0.73 % Commercial business loans 109,343 12.75 % 82,305 10.58 % Total gross loans receivable 857,788 100.00 % 778,266 100.00 % Less: Allowance for loan losses 9,889 9,035 Deferred fees, net 1,016 1,109 Total loans receivable, net $ 846,883 768,122 Included in the loan totals were $69.2 and $80.2 million in loans acquired through branch acquisitions at September 30, 2015 and December 31, 2014, respectively. No allowance for loan losses related to the acquired loans is recorded on the acquisition date because the fair value of the loans acquired incorporates assumptions regarding credit risk. The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At September 30, At December 31, 2015 2014 (Dollars in thousands) Variable rate loans $ 379,024 44.19 % 337,802 43.40 % Fixed rate loans 478,764 55.81 % 440,464 56.60 % Total loans outstanding $ 857,788 100.00 % 778,266 100.00 % The following table presents activity in the allowance for loan losses for the period indicated. 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 September 30, 2015 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 July 1, 2015 $ 3,213 208 3,434 1,072 50 1,891 149 10,017 Provision for loan losses 241 (42 ) (17 ) (241 ) (28 ) 53 34 — Charge-offs (623 ) — — — (6 ) (26 ) — (655 ) Recoveries 198 — 100 166 5 58 — 527 Balance at September 30, 2015 $ 3,029 166 3,517 997 21 1,976 183 9,889 For the Three Months Ended September 30, 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 July 1, 2014 $ 2,504 207 3,173 1,225 28 947 578 8,662 Provision for loan losses 82 10 (399 ) (49 ) (11 ) 282 85 — Charge-offs — — — (2 ) (1 ) (59 ) — (62 ) Recoveries 18 — 101 124 11 51 — 305 Balance at September 30, 2014 $ 2,604 217 2,875 1,298 27 1,221 663 8,905 Allowance for loan losses: For the Nine Months Ended September 30, 2015 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, 2015 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Provision for loan losses 240 (55 ) (116 ) (458 ) (25 ) 345 69 — Charge-offs (623 ) — — (90 ) (9 ) (67 ) — (789 ) Recoveries 524 — 350 476 25 268 — 1,643 Balance at September 30, 2015 $ 3,029 166 3,517 997 21 1,976 183 9,889 For the Nine Months Ended September 30, 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 116 (14 ) (53 ) (401 ) (62 ) 485 (71 ) — Charge-offs (73 ) — (28 ) (172 ) (14 ) (59 ) — (346 ) Recoveries 89 — 101 453 61 456 — 1,160 Balance at September 30, 2014 $ 2,604 217 2,875 1,298 27 1,221 663 8,905 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 September 30, 2015: Allowance for loan losses ending balances: Individually evaluated for impairment $ 255 — 343 129 9 3 — 739 Collectively evaluated for impairment 2,774 166 3,174 868 12 1,973 183 9,150 $ 3,029 166 3,517 997 21 1,976 183 9,889 Loans receivable ending balances: Individually evaluated for impairment $ 4,184 — 9,504 633 75 1,065 — 15,461 Collectively evaluated for impairment 294,698 23,915 329,263 80,719 5,455 108,278 — 842,328 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 — 857,788 At December 31, 2014: Allowance for loan losses ending balances: Individually evaluated for impairment $ 364 — 30 90 1 — — 485 Collectively evaluated for impairment 2,524 221 3,253 979 29 1,430 114 8,550 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Loans receivable ending balances: Individually evaluated for impairment $ 3,249 63 8,153 267 30 1,730 — 13,492 Collectively evaluated for impairment 249,570 27,484 309,759 91,741 5,645 80,575 — 764,774 Total loans receivable $ 252,819 27,547 317,912 92,008 5,675 82,305 — 778,266 The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories and the corresponding allowance for loan losses as of September 30, 2015 and December 31, 2014. 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 September 30, 2015 At December 31, 2014 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 $ 3,870 5,367 — 2,008 3,731 — Home equity — 347 — 63 410 — Commercial real estate 7,657 8,202 — 7,893 8,439 — Construction and development 16 1,854 — — 1,733 — Consumer loans 66 431 — 29 506 — Commercial business loans 1,062 2,257 — 1,730 2,927 — 12,671 18,458 — 11,723 17,746 — With an allowance recorded: Loans secured by real estate: One-to-four family 314 314 255 1,241 1,241 364 Home equity — — — — — — Commercial real estate 1,847 1,847 343 260 260 30 Construction and development 617 617 129 267 267 90 Consumer loans 9 9 9 1 1 1 Commercial business loans 3 3 3 — — — 2,790 2,790 739 1,769 1,769 485 Total: Loans secured by real estate: One-to-four family 4,184 5,681 255 3,249 4,972 364 Home equity — 347 — 63 410 — Commercial real estate 9,504 10,049 343 8,153 8,699 30 Construction and development 633 2,471 129 267 2,000 90 Consumer loans 75 440 9 30 507 1 Commercial business loans 1,065 2,260 3 1,730 2,927 — $ 15,461 21,248 739 13,492 19,515 485 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 and nine months ended September 30, 2015 and 2014. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,631 71 5,051 39 3,305 190 5,413 84 Home equity — — — — 31 2 — — Commercial real estate 8,511 120 11,093 166 8,154 303 14,647 433 Construction and development 6 — 307 6 128 — 388 9 Consumer loans 54 27 23 — 41 28 22 1 Commercial business loans 1,140 25 2,358 55 1,500 112 2,367 107 13,342 243 18,832 266 13,159 635 22,837 634 With an allowance recorded: Loans secured by real estate: One-to-four family 315 — 908 4 317 — 505 6 Home equity — — — — — — — — Commercial real estate 1,046 (20 ) 263 5 606 22 267 14 Construction and development 617 (2 ) 267 — 257 15 156 1 Consumer loans 9 — 3 — 7 — 5 — Commercial business loans 3 — 2 — 3 — 4 — 1,990 (22 ) 1,443 9 1,190 37 937 21 Total: Loans secured by real estate: One-to-four family 3,946 71 5,959 43 3,622 190 5,918 90 Home equity — — — — 31 2 — — Commercial real estate 9,557 100 11,356 171 8,760 325 14,914 447 Construction and development 623 (2 ) 574 6 385 15 544 10 Consumer loans 63 27 26 — 48 28 27 1 Commercial business loans 1,143 25 2,360 55 1,503 112 2,371 107 $ 15,332 221 20,275 275 14,349 672 23,774 655 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 September 30, 2015 and December 31, 2014. At September 30, 2015 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 $ — — — 9 14 30 53 60-89 days past due 106 — — — — — 106 90 days or more past due 2,114 — 547 490 59 3 3,213 Total past due 2,220 — 547 499 73 33 3,372 Current 296,662 23,915 338,220 80,853 5,456 109,310 854,416 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 At December 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 $ 336 17 260 60 22 27 722 60-89 days past due 188 — — — 6 — 194 90 days or more past due 1,589 — 333 267 6 — 2,195 Total past due 2,113 17 593 327 34 27 3,111 Current 250,706 27,530 317,319 91,681 5,641 82,278 775,155 Total loans receivable $ 252,819 27,547 317,912 92,008 5,675 82,305 778,266 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 September 30, 2015 or December 31, 2014. The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at September 30, 2015 and December 31, 2014. At September 30, At December 31, 2015 2014 Loans secured by real estate: (In thousands) One-to-four family $ 2,154 1,720 Home equity — 63 Commercial real estate 2,019 333 Construction and development 633 267 Consumer loans 59 12 Commercial business loans 33 39 $ 4,898 2,434 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: Special mention: Substandard: Doubtful: The Company uses the following definitions in the tables below: Nonperforming: Performing: The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of September 30, 2015 and December 31, 2014. At September 30, 2015 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 $ 296,007 23,915 328,778 80,510 5,470 109,019 843,699 Special Mention 545 — 7,823 209 — 169 8,746 Substandard 2,330 — 2,166 633 59 155 5,343 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 Performing $ 296,728 23,915 336,748 80,719 5,470 109,310 852,890 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,154 — 2,019 633 59 33 4,898 Total nonperforming 2,154 — 2,019 633 59 33 4,898 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 At December 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 $ 249,781 27,485 307,283 91,441 5,661 81,499 763,150 Special Mention 1,318 — 10,037 300 1 217 11,873 Substandard 1,720 63 592 267 12 589 3,243 Total loans receivable $ 252,819 27,548 317,912 92,008 5,674 82,305 778,266 Performing $ 251,099 27,485 317,579 91,741 5,662 82,266 775,832 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 1,720 63 333 267 12 39 2,434 Total nonperforming 1,720 63 333 267 12 39 2,434 Total loans receivable $ 252,819 27,548 317,912 92,008 5,674 82,305 778,266 Troubled Debt Restructurings At September 30, 2015, there were $10.6 million in loans designated as troubled debt restructurings of which $10.6 million were accruing. At December 31, 2014, there were $10.8 million in loans designated as troubled debt restructurings of which $10.7 million were accruing. There were no loans designated as troubled debt restructuring during the three months ended September 30, 2015 or the three and nine months ended September 30, 2014. There was one relationship totaling fourteen loans designated as a troubled debt restructuring during the nine months ended September 30, 2015. All loans within this relationship were designated as a troubled debt restructuring due to a change in payment structure. Eleven loans were within the one-to-four family loan segment with a pre-modification and post-modification recorded investment of $749,000. Two loans were within the commercial real estate loan segment with a pre-modification and post-modification recorded investment of $147,000. One loan was within the commercial and industrial loan segment with a pre-modification and post-modification recorded investment of $14,000. No loans previously restructured in the twelve months prior to September 30, 2015 and 2014 went into default during the three and nine months ended September 30, 2015 and 2014. 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 FO
REAL ESTATE ACQUIRED THROUGH FORECLOSURE | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014: September 30, December 31, 2015 2014 (In thousands) Balance at beginning of period $ 3,239 6,273 Additions 1,192 1,461 Sales (1,687 ) (3,969 ) Write downs — (526 ) Balance at end of period $ 2,744 3,239 A summary of the composition of real estate acquired through foreclosure follows: At September 30, At December 31, 2015 2014 (In thousands) Real estate loans: One-to-four family $ 884 245 Commercial real estate 468 954 Construction and development 1,392 2,040 $ 2,744 3,239 |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 6 - DEPOSITS Deposits outstanding by type of account at September 30, 2015 and December 31, 2014 are summarized as follows: At September 30, At December 31, 2015 2014 (In thousands) Noninterest-bearing demand accounts $ 188,191 142,900 Interest-bearing demand accounts 158,981 183,550 Savings accounts 39,050 36,630 Money market accounts 224,219 246,116 Certificates of deposit: Less than $250,000 404,802 335,740 $250,000 or more 18,708 19,254 Total certificates of deposit 423,510 354,994 Total deposits $ 1,033,951 964,190 The aggregate amount of brokered certificates of deposit was $92.1 million and $77.3 million at September 30, 2015 and December 31, 2014, respectively. The aggregate amount of institutional certificates of deposit was $48.9 million and $44.8 million at September 30, 2015 and December 31, 2014, respectively. Brokered certificates of deposit and institutional certificates are included in the table above under certificates of deposit less than $250,000. The Company has pledged $15.1 million of securities as of September 30, 2015 to secure public agency funds. |
ESTIMATED FAIR VALUE OF FINANCI
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2015 | |
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 investments - 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 3. Estimated fair values for certain mortgage loans and 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 3. 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 3. 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. 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. 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. Bank-owned life insurance - The cash surrender value of bank owned life insurance policies held by the Bank approximates fair values of the policies. 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. 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 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 fall out 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. 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 September 30, 2015 and December 31, 2014 are as follows: At September 30, 2015 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 11,473 11,473 11,473 — — Interest-bearing cash 10,617 10,617 10,617 — — Securities available-for-sale 313,981 313,981 — 313,981 — Securities held-to-maturity 17,112 17,975 — 17,975 — Federal Home Loan Bank stock 7,794 7,794 — — 7,794 Other investments 3,281 3,281 — — 3,281 Derivative assets 2,812 2,812 — 2,812 — Loans held for sale 31,697 31,697 — 31,697 — Loans receivable, net 846,883 849,630 — — 849,630 Cash value life insurance 21,893 21,893 — 21,893 — Accrued interest receivable 4,100 4,100 — 4,100 — Mortgage servicing rights 11,079 16,218 — 16,218 — Financial liabilities: Deposits 1,033,951 1,034,347 — 1,034,347 — Short-term borrowed funds 105,000 104,895 — 104,895 — Long-term debt 68,465 71,192 — 71,192 — Derivative liabilities 2,094 2,094 1,321 773 — Accrued interest payable 304 304 — 304 — At December 31, 2014 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,453 10,453 10,453 — — Interest-bearing cash 10,694 10,694 10,694 — — Securities available-for-sale 251,717 251,717 — 251,717 — Securities held-to-maturity 25,544 27,385 — 27,385 — Federal Home Loan Bank stock 5,405 5,405 — — 5,405 Other investments 2,309 2,309 — — 2,309 Derivative assets 1,689 1,689 — 1,689 — Loans held for sale 40,912 40,912 — 40,912 — Loans receivable, net 768,122 785,109 — — 785,109 Cash value life insurance 21,532 21,532 — 21,532 — Accrued interest receivable 3,628 3,628 — 3,628 — Mortgage servicing rights 10,181 15,147 — 15,147 — Financial liabilities: Deposits 964,190 962,763 — 962,763 — Short-term borrowed funds 57,800 57,745 — 57,745 — Long-term debt 61,740 65,516 — 65,516 — Derivative liabilities 1,036 1,036 530 506 — Accrued interest payable 312 312 — 312 — At September 30, 2015 At December 31, 2014 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 68,854 — 68,181 — Standby letters of credit 835 — 1,982 — Derivative assets: Mortgage loan interest rate lock commitments 160,207 2,299 106,440 1,122 Mortgage loan forward sales commitments 20,959 513 27,292 567 Derivative liabilities: Mortgage-backed securities forward sales commitments 112,301 773 93,000 506 Interest rate swaps 30,000 1,321 20,000 530 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 September 30, 2015 and December 31, 2014, 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 fall-out 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 nonrecurring 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. 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 nonrecurring 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. Assets and liabilities measured at fair value on a recurring basis are as follows as of September 30, 2015 and December 31, 2014: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2015 Available-for-sale investment securities: Municipal securities $ — 64,799 — US government agencies — 7,120 — Collateralized loan obligations — 38,628 — Mortgage-backed securities: Agency — 112,592 — Non-agency — 81,922 — Trust Preferred Securities — 8,920 — Loans held for sale — 31,697 — Derivative assets: Mortgage loan interest rate lock commitments — 2,299 — Mortgage loan forward sales commitments — 513 — Derivative liabilities: Mortgage-backed securities forward sales commitments — 773 — Interest rate swaps 1,321 — — Total $ 1,321 349,263 — December 31, 2014 Available-for-sale investment securities: Municipal securities $ — 44,717 — US government agencies — 4,748 — Collateralized loan obligations — 25,872 — Mortgage-backed securities: Agency — 125,542 — Non-agency — 50,838 — Loans held for sale — 40,912 — Derivative assets: Mortgage loan interest rate lock commitments — 1,122 — Mortgage loan forward sales commitment — 567 — Derivative liabilities: Mortgage-backed securities forward sales commitments — 506 — Interest rate swaps 530 — — Total $ 530 294,824 — Assets measured at fair value on a nonrecurring basis are as follows as of September 30, 2015 and December 31, 2014: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2015 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,929 Home equity — — — Commercial real estate — — 9,161 Construction and development — — 504 Consumer loans — — 66 Commercial business loans — — 1,062 Real estate owned: One-to-four family — — 884 Commercial real estate — — 468 Construction and development — — 1,392 Total $ — — 17,466 December 31, 2014 Impaired loans: Loans secured by real estate: One-to-four family $ — — 2,885 Home equity — — 63 Commercial real estate — — 8,123 Construction and development — — 177 Consumer loans — — 29 Commercial business loans — — 1,730 Real estate owned: One-to-four family — — 2,040 Commercial real estate — — 245 Construction and development — — 954 Total $ — — 16,246 For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2015 and December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2015 and December 31, 2014 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 | 9 Months Ended |
Sep. 30, 2015 | |
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. 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, issued on February 28, 2014. On October 15, 2014, the Board of Directors of the Company declared an additional two-for-one stock split to stockholders of record as of October 31, 2014, issued on November 14, 2014. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. All share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. The following is a summary of the reconciliation of weighted average shares outstanding for the three months and nine months ended September 30, 2015 and 2014: For the Three Months Ended September 30, 2015 2014 Basic Diluted Basic Diluted Weighted average shares outstanding 9,463,722 9,463,722 9,344,683 9,344,683 Effect of dilutive securities — 211,272 — 204,012 Weighted average shares outstanding 9,463,722 9,674,994 9,344,683 9,548,695 For the Nine Months Ended September 30, 2015 2014 Basic Diluted Basic Diluted Weighted average shares outstanding 9,421,042 9,421,042 9,335,495 9,335,495 Effect of dilutive securities — 174,949 — 178,387 Weighted average shares outstanding 9,421,042 9,595,991 9,335,495 9,513,882 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of September 30, 2015 and 2014: As of September 30, 2015 2014 Issued and outstanding shares 9,763,383 9,715,843 Less nonvested restricted stock awards (299,606 ) (370,680 ) Period end dilutive shares 9,463,777 9,345,163 |
SUPPLEMENTAL SEGMENT INFORMATIO
SUPPLEMENTAL SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2015 | |
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 wholesale mortgage loan origination and servicing offered through Crescent Mortgage Company. 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 three months and nine months ended September 30, 2015 and 2014: Community Mortgage For the Three Months Ended September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 11,971 550 4 (13 ) 12,512 Interest expense 1,475 37 148 (37 ) 1,623 Net interest income (expense) 10,496 513 (144 ) 24 10,889 Provision for loan losses (5 ) 5 — — — Noninterest income from external customers 1,670 5,652 — — 7,322 Intersegment noninterest income 1 8 1,768 (1,777 ) — Noninterest expense 6,444 3,901 2,036 — 12,381 Intersegment noninterest expense 1,528 241 — (1,769 ) — Income (loss) before income taxes 4,200 2,026 (412 ) 16 5,830 Income tax expense (benefit) 1,346 753 (156 ) 6 1,949 Net income (loss) $ 2,854 1,273 (256 ) 10 3,881 Community Mortgage For the Three Months Ended September 30, 2014 Banking Banking Other Eliminations Total (In thousands) Interest income $ 9,034 436 4 22 9,496 Interest expense 1,303 12 136 (13 ) 1,438 Net interest income (expense) 7,731 424 (132 ) 35 8,058 Provision for loan losses (31 ) 31 — — — Noninterest income from external customers 1,139 4,351 17 — 5,507 Intersegment noninterest income — 31 1,510 (1,541 ) — Noninterest expense 4,792 3,783 1,658 — 10,233 Intersegment noninterest expense 1,269 240 — (1,509 ) — Income (loss) before income taxes 2,840 752 (263 ) 3 3,332 Income tax expense (benefit) 850 177 (97 ) 1 931 Net income (loss) $ 1,990 575 (166 ) 2 2,401 The following tables present selected financial information for the Company’s reportable business segments for the nine months ended September 30, 2015 and 2014: Community Mortgage For the Nine Months Ended September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 35,139 1,423 12 28 36,602 Interest expense 4,263 89 439 (89 ) 4,702 Net interest income (expense) 30,876 1,334 (427 ) 117 31,900 Provision for loan losses (57 ) 57 — — — Noninterest income from external customers 4,569 16,605 2 — 21,176 Intersegment noninterest income 3 84 5,304 (5,391 ) — Noninterest expense 19,019 11,989 5,955 — 36,963 Intersegment noninterest expense 4,584 723 — (5,307 ) — Income (loss) before income taxes 11,902 5,254 (1,076 ) 33 16,113 Income tax expense (benefit) 3,758 1,947 (416 ) 13 5,302 Net income (loss) $ 8,144 3,307 (660 ) 20 10,811 Community Mortgage For the Nine Months Ended September 30, 2014 Banking Banking Other Eliminations Total (In thousands) Interest income $ 25,555 995 12 89 26,651 Interest expense 3,786 12 405 (12 ) 4,191 Net interest income (expense) 21,769 983 (393 ) 101 22,460 Provision for loan losses (41 ) 41 — — — Noninterest income from external customers 3,012 13,277 36 — 16,325 Intersegment noninterest income — 126 4,529 (4,655 ) — Noninterest expense 13,173 11,183 4,975 — 29,331 Intersegment noninterest expense 3,809 720 — (4,529 ) — Income (loss) before income taxes 7,840 2,442 (803 ) (25 ) 9,454 Income tax expense (benefit) 2,351 816 (296 ) (10 ) 2,861 Net income (loss) $ 5,489 1,626 (507 ) (15 ) 6,593 The following tables present selected financial information for the Company’s reportable business segments for September 30, 2015 and December 31, 2014: Community Mortgage At September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,321,448 66,716 120,851 (178,850 ) 1,330,165 Loans receivable, net 832,418 16,699 — (2,234 ) 846,883 Loans held for sale 2,306 29,391 — — 31,697 Deposits 1,036,124 — — (2,173 ) 1,033,951 Borrowed funds 158,000 1,500 15,465 (1,500 ) 173,465 Community Mortgage At December 31, 2014 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,192,419 67,952 111,096 (172,450 ) 1,199,017 Loans receivable, net 764,881 10,808 — (7,567 ) 768,122 Loans held for sale 1,547 39,365 — — 40,912 Deposits 966,309 — — (2,119 ) 964,190 Borrowed funds 104,076 6,800 15,465 (6,801 ) 119,540 |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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”). Crescent Mortgage Company operates as a wholly-owned subsidiary of CresCom Bank. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, the 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 September 30, 2015 and December 31, 2014, 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 consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 20, 2015. There have been no significant changes to the accounting policies as disclosed in the Company’s Form 10-K. |
Management's Estimates | ManagementÂ’s Estimates The financial statements are prepared in accordance with GAAP, 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 BankÂ’s allowance for loan losses and foreclosed real estate. Such agencies may require the Bank to recognize additions to the allowance 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 allowance for loan losses and valuation of 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 period. 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, issued on February 28, 2014. On October 15, 2014, the Board of Directors of the Company declared an additional two-for-one stock split to stockholders of record as of October 31, 2014, issued on November 14, 2014. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. As such, all share, earnings per share, and per share data have been retroactively adjusted to reflect the stock splits for all periods presented in accordance with GAAP. |
Subsequent Events | Subsequent Events Subsequent events are material 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 October 21, 2015, the Company declared a $0.03 per share dividend to stockholders of record on December 18, 2015, payable January 7, 2016. |
Reclassification | Reclassification Certain reclassifications of accounts reported for previous periods have been made in these consolidated financial statements. Such reclassifications had no effect on stockholdersÂ’ equity or the net income as previously reported. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In January 2014, the Financial Accounting Standards Board (“FASB”) amended the Receivables topic of the Accounting Standards Codification (“ASC”). The amendments are intended to resolve diversity in practice with respect to when a creditor should reclassify a collateralized consumer mortgage loan to other real estate owned (“OREO”). In addition, the amendments require a creditor reclassify a collateralized consumer mortgage loan to OREO upon obtaining legal title to the real estate collateral, or the borrower voluntarily conveying all interest in the real estate property to the lender to satisfy the loan through a deed in lieu of foreclosure or similar legal agreement. The amendments are effective for the Company for annual periods, and interim periods within those annual periods beginning after December 15, 2014 with early implementation of the guidance permitted. In implementing this guidance, assets that are reclassified from real estate to loans are measured at the carrying value of the real estate at the date of adoption. Assets reclassified from loans to real estate are measured at the lower of the net amount of the loan receivable or the fair value of the real estate less costs to sell at the date of adoption. The Company applied the amendments prospectively. These amendments did not have a material effect on its financial statements. In May 2014, the FASB issued guidance to change the recognition of revenue from contracts with customers. The core principle of the new guidance is that an entity should recognize revenue to reflect the transfer of goods and services to customers in an amount equal to the consideration the entity receives or expects to receive. The guidance will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a modified retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB deferred the effective date of ASU 2014-09, Revenue from Contracts with Customers. As a result of the deferral, the guidance in ASU 2014-09 will be effective for the Company for reporting periods beginning after December 15, 2017. The Company will apply the guidance using a full retrospective approach. The Company does not expect these amendments to have a material effect on its financial statements. In June 2014, the FASB issued guidance which makes limited amendments to the guidance on accounting for certain repurchase agreements. The new guidance (1) requires entities to account for repurchase-to-maturity transactions as secured borrowings (rather than as sales with forward repurchase agreements), (2) eliminates accounting guidance on linked repurchase financing transactions, and (3) expands disclosure requirements related to certain transfers of financial assets that are accounted for as sales and certain transfers (specifically, repos, securities lending transactions, and repurchase-to-maturity transactions) accounted for as secured borrowings. The amendments will be effective for the Company for annual period beginning after December 15, 2014. These amendments did not have a material effect on its financial statements. In June 2014, the FASB issued guidance which clarifies that performance targets associated with stock compensation should be treated as a performance condition and should not be reflected in the grant date fair value of the stock award. The amendments will be effective for the Company for fiscal years that begin after December 15, 2015. The Company will apply the guidance to stock awards with performance targets that are outstanding at the start of the first fiscal year in the financial statements and to all stock awards that are granted or modified after the effective date. The Company does not expect these amendments to have a material effect on its financial statements. In January 2015, the FASB issued guidance that eliminated the concept of extraordinary items from GAAP. Existing GAAP required that an entity separately classify, present, and disclose extraordinary events and transactions. The amendments will eliminate the requirements for reporting entities to consider whether an underlying event or transaction is extraordinary, however, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied either prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect these amendments to have a material effect on its financial statements. In February 2015, the FASB issued guidance which amends the consolidation requirements and significantly changes the consolidation analysis required under GAAP. Although the amendments are expected to result in the deconsolidation of many entities, the Company will need to reevaluate all its previous consolidation conclusions. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 with early adoption permitted (including during an interim period), provided that the guidance is applied as of the beginning of the annual period containing the adoption date. The Company does not expect these amendments to have a material effect on its financial statements. In August 2015, the FASB issued amendments to the Interest topic of the Accounting Standards Codification to clarify the SEC staff’s position on presenting and measuring debt issuance costs incurred in connection with line-of-credit arrangements. The amendments were effective upon issuance. 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) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of investment securities available for sale | September 30, 2015 December 31, 2014 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities available-for-sale: (In thousands) Municipal securities $ 63,882 1,105 (188 ) 64,799 43,119 1,621 (23 ) 44,717 US government agencies 7,015 105 — 7,120 4,770 — (22 ) 4,748 Collateralized loan obligations 38,956 — (328 ) 38,628 25,883 11 (22 ) 25,872 Mortgage-backed securities: Agency 110,483 2,234 (125 ) 112,592 122,727 2,856 (41 ) 125,542 Non-agency 81,597 719 (394 ) 81,922 49,936 1,065 (163 ) 50,838 Total mortgage-backed securities 192,080 2,953 (519 ) 194,514 172,663 3,921 (204 ) 176,380 Trust preferred securities 11,379 1,228 (3,687 ) 8,920 — — — — Total $ 313,312 5,391 (4,722 ) 313,981 246,435 5,553 (271 ) 251,717 |
Schedule of investment securities held to maturity | September 30, 2015 December 31, 2014 Gross Gross Gross Gross Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Securities held-to-maturity: Municipal securities $ 17,112 863 — 17,975 16,787 882 (17 ) 17,652 Trust preferred securities — — — — 8,757 3,125 (2,149 ) 9,733 Total $ 17,112 863 — 17,975 25,544 4,007 (2,166 ) 27,385 |
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 | 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 at December 31, 2014. At December 31, 2014 Recognized in OCI Not Recognized in OCI Gross Unrealized Gross Unrealized Purchased Cumulative Carrying Amortized Estimated Collateralization Face Value OTTI Value Gains Losses Cost Gains Losses Fair Value Percentage (In thousands) Held-to-Maturity: Trust Preferred Securities Total A-Class $ 2,381 — 2,381 — (558 ) 1,823 336 (75 ) 2,084 175% - 378% Total B-Class 11,718 (2,635 ) 9,083 — (2,458 ) 6,625 1,788 (2,074 ) 6,339 96% - 111% Total C-Class 2,727 (1,340 ) 1,387 — (1,078 ) 309 1,001 — 1,310 92% - 92% $ 16,826 (3,975 ) 12,851 — (4,094 ) 8,757 3,125 (2,149 ) 9,733 |
Schedule of amortized costs and fair values of investment securities, by contractual maturity | The amortized cost and fair value of debt securities by contractual maturity at September 30, 2015 follows: At September 30, 2015 Amortized Fair Cost Value (In thousands) Securities available-for-sale: Less than one year $ — — One to five years 289 294 Six to ten years 21,454 21,684 After ten years 291,569 292,003 Total $ 313,312 313,981 Securities held-to-maturity: Less than one year $ — — One to five years — — Six to ten years 4,852 4,947 After ten years 12,260 13,028 Total $ 17,112 17,975 |
Schedule of gross realized gains and losses from sales of investment securities available-for-sale | The following table summarizes the gross realized gains and losses from sales of investment securities available-for-sale for the periods indicated. For the Three Months For the Nine Months Ended September 30, Ended September 30, 2015 2014 2015 2014 (In thousands) Proceeds $ 32,829 27,604 94,638 56,164 Realized gains 1,026 340 1,605 860 Realized losses (9 ) (127 ) (146 ) (167 ) Total investment securities gains, net $ 1,017 213 1,459 693 |
Schedule of securities in a continuous unrealized loss position aggregated by investment category and length of time | 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 September 30, 2015 are as follows: At September 30, 2015 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 $ 19,191 19,003 (188 ) — — — 19,191 19,003 (188 ) Collateralized loan obligations 25,249 25,021 (228 ) 9,707 9,607 (100 ) 34,956 34,628 (328 ) Mortgage-backed securities: Agency 22,540 22,417 (123 ) 866 864 (2 ) 23,406 23,281 (125 ) Non-agency 26,319 26,064 (255 ) 9,601 9,462 (139 ) 35,920 35,526 (394 ) Total mortgage-backed securities 48,859 48,481 (378 ) 10,467 10,326 (141 ) 59,326 58,807 (519 ) Trust preferred securities — — — 8,825 5,138 (3,687 ) 8,825 5,138 (3,687 ) Total $ 93,299 92,505 (794 ) 28,999 25,071 (3,928 ) 122,298 117,576 (4,722 ) Held-to-maturity: Municipal securities $ — — — — — — — — — 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, 2014 are as follows: At December 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 $ 2,479 2,475 (4 ) 1,504 1,485 (19 ) 3,983 3,960 (23 ) US government agencies 4,770 4,748 (22 ) — — — 4,770 4,748 (22 ) Collateralized loan obligations 14,708 14,686 (22 ) — — — 14,708 14,686 (22 ) Mortgage-backed securities: Agency 17,541 17,500 (41 ) — — — 17,541 17,500 (41 ) Non-agency 14,284 14,138 (146 ) 3,114 3,097 (17 ) 17,398 17,235 (163 ) Total mortgage-backed securities 31,825 31,638 (187 ) 3,114 3,097 (17 ) 34,939 34,735 (204 ) Total $ 53,782 53,547 (235 ) 4,618 4,582 (36 ) 58,400 58,129 (271 ) Held-to-maturity: Municipal securities $ — — — 2,363 2,346 (17 ) 2,363 2,346 (17 ) Trust preferred securities — — — 7,326 5,177 (2,149 ) 7,326 5,177 (2,149 ) Total $ — — — 9,689 7,523 (2,166 ) 9,689 7,523 (2,166 ) |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative positions of Company | The derivative positions of the Company at September 30, 2015 and December 31, 2014 are as follows: At September 30, At December 31, 2015 2014 Fair Notional Fair Notional Value Value Value Value (In thousands) Derivative assets: Mortgage loan interest rate lock commitments $ 2,299 160,207 1,122 106,440 Mortgage loan forward sales commitments 513 20,959 567 27,292 $ 2,812 181,166 1,689 133,732 Derivative liabilities: Mortgage-backed securities forward sales commitments $ 773 112,301 506 93,000 Interest rate swaps 1,321 30,000 530 20,000 $ 2,094 142,301 1,036 113,000 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of categories of loans | Loans receivable, net at September 30, 2015 and December 31, 2014 are summarized by category as follows: At September 30, At December 31, 2015 2014 % of Total % of Total Amount Loans Amount Loans (Dollars in thousands) Loans secured by real estate: One-to-four family $ 298,882 34.85 % 252,819 32.48 % Home equity 23,915 2.79 % 27,547 3.54 % Commercial real estate 338,767 39.49 % 317,912 40.85 % Construction and development 81,352 9.48 % 92,008 11.82 % Consumer loans 5,529 0.64 % 5,675 0.73 % Commercial business loans 109,343 12.75 % 82,305 10.58 % Total gross loans receivable 857,788 100.00 % 778,266 100.00 % Less: Allowance for loan losses 9,889 9,035 Deferred fees, net 1,016 1,109 Total loans receivable, net $ 846,883 768,122 The composition of gross loans outstanding, net of undisbursed amounts, by rate type is as follows: At September 30, At December 31, 2015 2014 (Dollars in thousands) Variable rate loans $ 379,024 44.19 % 337,802 43.40 % Fixed rate loans 478,764 55.81 % 440,464 56.60 % Total loans outstanding $ 857,788 100.00 % 778,266 100.00 % |
Schedule of activity in the allowance for loan losses | The following table presents activity in the allowance for loan losses for the period indicated. 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 September 30, 2015 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 July 1, 2015 $ 3,213 208 3,434 1,072 50 1,891 149 10,017 Provision for loan losses 241 (42 ) (17 ) (241 ) (28 ) 53 34 — Charge-offs (623 ) — — — (6 ) (26 ) — (655 ) Recoveries 198 — 100 166 5 58 — 527 Balance at September 30, 2015 $ 3,029 166 3,517 997 21 1,976 183 9,889 For the Three Months Ended September 30, 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 July 1, 2014 $ 2,504 207 3,173 1,225 28 947 578 8,662 Provision for loan losses 82 10 (399 ) (49 ) (11 ) 282 85 — Charge-offs — — — (2 ) (1 ) (59 ) — (62 ) Recoveries 18 — 101 124 11 51 — 305 Balance at September 30, 2014 $ 2,604 217 2,875 1,298 27 1,221 663 8,905 Allowance for loan losses: For the Nine Months Ended September 30, 2015 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, 2015 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Provision for loan losses 240 (55 ) (116 ) (458 ) (25 ) 345 69 — Charge-offs (623 ) — — (90 ) (9 ) (67 ) — (789 ) Recoveries 524 — 350 476 25 268 — 1,643 Balance at September 30, 2015 $ 3,029 166 3,517 997 21 1,976 183 9,889 For the Nine Months Ended September 30, 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 116 (14 ) (53 ) (401 ) (62 ) 485 (71 ) — Charge-offs (73 ) — (28 ) (172 ) (14 ) (59 ) — (346 ) Recoveries 89 — 101 453 61 456 — 1,160 Balance at September 30, 2014 $ 2,604 217 2,875 1,298 27 1,221 663 8,905 |
Schedule of allowance for loan losses and recorded investment in loans by impairment methodology | 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 September 30, 2015: Allowance for loan losses ending balances: Individually evaluated for impairment $ 255 — 343 129 9 3 — 739 Collectively evaluated for impairment 2,774 166 3,174 868 12 1,973 183 9,150 $ 3,029 166 3,517 997 21 1,976 183 9,889 Loans receivable ending balances: Individually evaluated for impairment $ 4,184 — 9,504 633 75 1,065 — 15,461 Collectively evaluated for impairment 294,698 23,915 329,263 80,719 5,455 108,278 — 842,328 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 — 857,788 At December 31, 2014: Allowance for loan losses ending balances: Individually evaluated for impairment $ 364 — 30 90 1 — — 485 Collectively evaluated for impairment 2,524 221 3,253 979 29 1,430 114 8,550 $ 2,888 221 3,283 1,069 30 1,430 114 9,035 Loans receivable ending balances: Individually evaluated for impairment $ 3,249 63 8,153 267 30 1,730 — 13,492 Collectively evaluated for impairment 249,570 27,484 309,759 91,741 5,645 80,575 — 764,774 Total loans receivable $ 252,819 27,547 317,912 92,008 5,675 82,305 — 778,266 |
Schedule of impaired loans by class of loans | The following table presents impaired loans individually evaluated for impairment in the segmented portfolio categories and the corresponding allowance for loan losses as of September 30, 2015 and December 31, 2014. 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 September 30, 2015 At December 31, 2014 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 $ 3,870 5,367 — 2,008 3,731 — Home equity — 347 — 63 410 — Commercial real estate 7,657 8,202 — 7,893 8,439 — Construction and development 16 1,854 — — 1,733 — Consumer loans 66 431 — 29 506 — Commercial business loans 1,062 2,257 — 1,730 2,927 — 12,671 18,458 — 11,723 17,746 — With an allowance recorded: Loans secured by real estate: One-to-four family 314 314 255 1,241 1,241 364 Home equity — — — — — — Commercial real estate 1,847 1,847 343 260 260 30 Construction and development 617 617 129 267 267 90 Consumer loans 9 9 9 1 1 1 Commercial business loans 3 3 3 — — — 2,790 2,790 739 1,769 1,769 485 Total: Loans secured by real estate: One-to-four family 4,184 5,681 255 3,249 4,972 364 Home equity — 347 — 63 410 — Commercial real estate 9,504 10,049 343 8,153 8,699 30 Construction and development 633 2,471 129 267 2,000 90 Consumer loans 75 440 9 30 507 1 Commercial business loans 1,065 2,260 3 1,730 2,927 — $ 15,461 21,248 739 13,492 19,515 485 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 and nine months ended September 30, 2015 and 2014. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2015 2014 2015 2014 Average Interest Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Investment Recognized (In thousands) With no related allowance recorded: Loans secured by real estate: One-to-four family $ 3,631 71 5,051 39 3,305 190 5,413 84 Home equity — — — — 31 2 — — Commercial real estate 8,511 120 11,093 166 8,154 303 14,647 433 Construction and development 6 — 307 6 128 — 388 9 Consumer loans 54 27 23 — 41 28 22 1 Commercial business loans 1,140 25 2,358 55 1,500 112 2,367 107 13,342 243 18,832 266 13,159 635 22,837 634 With an allowance recorded: Loans secured by real estate: One-to-four family 315 — 908 4 317 — 505 6 Home equity — — — — — — — — Commercial real estate 1,046 (20 ) 263 5 606 22 267 14 Construction and development 617 (2 ) 267 — 257 15 156 1 Consumer loans 9 — 3 — 7 — 5 — Commercial business loans 3 — 2 — 3 — 4 — 1,990 (22 ) 1,443 9 1,190 37 937 21 Total: Loans secured by real estate: One-to-four family 3,946 71 5,959 43 3,622 190 5,918 90 Home equity — — — — 31 2 — — Commercial real estate 9,557 100 11,356 171 8,760 325 14,914 447 Construction and development 623 (2 ) 574 6 385 15 544 10 Consumer loans 63 27 26 — 48 28 27 1 Commercial business loans 1,143 25 2,360 55 1,503 112 2,371 107 $ 15,332 221 20,275 275 14,349 672 23,774 655 |
Schedule of aging of the recorded investment in past due loans by class of loans | 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 September 30, 2015 and December 31, 2014. At September 30, 2015 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 $ — — — 9 14 30 53 60-89 days past due 106 — — — — — 106 90 days or more past due 2,114 — 547 490 59 3 3,213 Total past due 2,220 — 547 499 73 33 3,372 Current 296,662 23,915 338,220 80,853 5,456 109,310 854,416 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 At December 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 $ 336 17 260 60 22 27 722 60-89 days past due 188 — — — 6 — 194 90 days or more past due 1,589 — 333 267 6 — 2,195 Total past due 2,113 17 593 327 34 27 3,111 Current 250,706 27,530 317,319 91,681 5,641 82,278 775,155 Total loans receivable $ 252,819 27,547 317,912 92,008 5,675 82,305 778,266 |
Schedule of analysis of loans receivables on nonaccrual status | The following is a schedule of loans receivable, by portfolio segment, on nonaccrual at September 30, 2015 and December 31, 2014. At September 30, At December 31, 2015 2014 Loans secured by real estate: (In thousands) One-to-four family $ 2,154 1,720 Home equity — 63 Commercial real estate 2,019 333 Construction and development 633 267 Consumer loans 59 12 Commercial business loans 33 39 $ 4,898 2,434 |
Schedule of analysis of loan portfolio by credit quality indicators | The following is a schedule of the credit quality of loans receivable, by portfolio segment, as of September 30, 2015 and December 31, 2014. At September 30, 2015 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 $ 296,007 23,915 328,778 80,510 5,470 109,019 843,699 Special Mention 545 — 7,823 209 — 169 8,746 Substandard 2,330 — 2,166 633 59 155 5,343 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 Performing $ 296,728 23,915 336,748 80,719 5,470 109,310 852,890 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 2,154 — 2,019 633 59 33 4,898 Total nonperforming 2,154 — 2,019 633 59 33 4,898 Total loans receivable $ 298,882 23,915 338,767 81,352 5,529 109,343 857,788 At December 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 $ 249,781 27,485 307,283 91,441 5,661 81,499 763,150 Special Mention 1,318 — 10,037 300 1 217 11,873 Substandard 1,720 63 592 267 12 589 3,243 Total loans receivable $ 252,819 27,548 317,912 92,008 5,674 82,305 778,266 Performing $ 251,099 27,485 317,579 91,741 5,662 82,266 775,832 Nonperforming: 90 days or more and still accruing — — — — — — — Nonaccrual 1,720 63 333 267 12 39 2,434 Total nonperforming 1,720 63 333 267 12 39 2,434 Total loans receivable $ 252,819 27,548 317,912 92,008 5,674 82,305 778,266 |
REAL ESTATE ACQUIRED THROUGH 21
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Summary of Changes in Other Real Estate Owned | The following presents summarized activity in other real estate owned for the periods ended September 30, 2015 and December 31, 2014: September 30, December 31, 2015 2014 (In thousands) Balance at beginning of period $ 3,239 6,273 Additions 1,192 1,461 Sales (1,687 ) (3,969 ) Write downs — (526 ) Balance at end of period $ 2,744 3,239 |
Schedule of composition of other real estate owned | A summary of the composition of real estate acquired through foreclosure follows: At September 30, At December 31, 2015 2014 (In thousands) Real estate loans: One-to-four family $ 884 245 Commercial real estate 468 954 Construction and development 1,392 2,040 $ 2,744 3,239 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Summary of Deposits outstanding | Deposits outstanding by type of account at September 30, 2015 and December 31, 2014 are summarized as follows: At September 30, At December 31, 2015 2014 (In thousands) Noninterest-bearing demand accounts $ 188,191 142,900 Interest-bearing demand accounts 158,981 183,550 Savings accounts 39,050 36,630 Money market accounts 224,219 246,116 Certificates of deposit: Less than $250,000 404,802 335,740 $250,000 or more 18,708 19,254 Total certificates of deposit 423,510 354,994 Total deposits $ 1,033,951 964,190 |
ESTIMATED FAIR VALUE OF FINAN23
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value of the Company's financial instruments | The carrying amount and estimated fair value of the Company’s financial instruments at September 30, 2015 and December 31, 2014 are as follows: At September 30, 2015 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 11,473 11,473 11,473 — — Interest-bearing cash 10,617 10,617 10,617 — — Securities available-for-sale 313,981 313,981 — 313,981 — Securities held-to-maturity 17,112 17,975 — 17,975 — Federal Home Loan Bank stock 7,794 7,794 — — 7,794 Other investments 3,281 3,281 — — 3,281 Derivative assets 2,812 2,812 — 2,812 — Loans held for sale 31,697 31,697 — 31,697 — Loans receivable, net 846,883 849,630 — — 849,630 Cash value life insurance 21,893 21,893 — 21,893 — Accrued interest receivable 4,100 4,100 — 4,100 — Mortgage servicing rights 11,079 16,218 — 16,218 — Financial liabilities: Deposits 1,033,951 1,034,347 — 1,034,347 — Short-term borrowed funds 105,000 104,895 — 104,895 — Long-term debt 68,465 71,192 — 71,192 — Derivative liabilities 2,094 2,094 1,321 773 — Accrued interest payable 304 304 — 304 — At December 31, 2014 Carrying Fair Value Amount Total Level 1 Level 2 Level 3 Financial assets: (In thousands) Cash and due from banks $ 10,453 10,453 10,453 — — Interest-bearing cash 10,694 10,694 10,694 — — Securities available-for-sale 251,717 251,717 — 251,717 — Securities held-to-maturity 25,544 27,385 — 27,385 — Federal Home Loan Bank stock 5,405 5,405 — — 5,405 Other investments 2,309 2,309 — — 2,309 Derivative assets 1,689 1,689 — 1,689 — Loans held for sale 40,912 40,912 — 40,912 — Loans receivable, net 768,122 785,109 — — 785,109 Cash value life insurance 21,532 21,532 — 21,532 — Accrued interest receivable 3,628 3,628 — 3,628 — Mortgage servicing rights 10,181 15,147 — 15,147 — Financial liabilities: Deposits 964,190 962,763 — 962,763 — Short-term borrowed funds 57,800 57,745 — 57,745 — Long-term debt 61,740 65,516 — 65,516 — Derivative liabilities 1,036 1,036 530 506 — Accrued interest payable 312 312 — 312 — |
Schedule of notional amount and estimated fair values of off-balance sheet financial instruments | At September 30, 2015 At December 31, 2014 Notional Estimated Notional Estimated Amount Fair Value Amount Fair Value Off-Balance Sheet Financial Instruments: (In thousands) Commitments to extend credit $ 68,854 — 68,181 — Standby letters of credit 835 — 1,982 — Derivative assets: Mortgage loan interest rate lock commitments 160,207 2,299 106,440 1,122 Mortgage loan forward sales commitments 20,959 513 27,292 567 Derivative liabilities: Mortgage-backed securities forward sales commitments 112,301 773 93,000 506 Interest rate swaps 30,000 1,321 20,000 530 |
Summary of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are as follows as of September 30, 2015 and December 31, 2014: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2015 Available-for-sale investment securities: Municipal securities $ — 64,799 — US government agencies — 7,120 — Collateralized loan obligations — 38,628 — Mortgage-backed securities: Agency — 112,592 — Non-agency — 81,922 — Trust Preferred Securities — 8,920 — Loans held for sale — 31,697 — Derivative assets: Mortgage loan interest rate lock commitments — 2,299 — Mortgage loan forward sales commitments — 513 — Derivative liabilities: Mortgage-backed securities forward sales commitments — 773 — Interest rate swaps 1,321 — — Total $ 1,321 349,263 — December 31, 2014 Available-for-sale investment securities: Municipal securities $ — 44,717 — US government agencies — 4,748 — Collateralized loan obligations — 25,872 — Mortgage-backed securities: Agency — 125,542 — Non-agency — 50,838 — Loans held for sale — 40,912 — Derivative assets: Mortgage loan interest rate lock commitments — 1,122 — Mortgage loan forward sales commitment — 567 — Derivative liabilities: Mortgage-backed securities forward sales commitments — 506 — Interest rate swaps 530 — — Total $ 530 294,824 — |
Summary of assets and liabilities measured at a fair value on a nonrecurring basis | Assets measured at fair value on a nonrecurring basis are as follows as of September 30, 2015 and December 31, 2014: Quoted market price Significant other Significant other in active markets observable inputs unobservable inputs (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2015 Impaired loans: Loans secured by real estate: One-to-four family $ — — 3,929 Home equity — — — Commercial real estate — — 9,161 Construction and development — — 504 Consumer loans — — 66 Commercial business loans — — 1,062 Real estate owned: One-to-four family — — 884 Commercial real estate — — 468 Construction and development — — 1,392 Total $ — — 17,466 December 31, 2014 Impaired loans: Loans secured by real estate: One-to-four family $ — — 2,885 Home equity — — 63 Commercial real estate — — 8,123 Construction and development — — 177 Consumer loans — — 29 Commercial business loans — — 1,730 Real estate owned: One-to-four family — — 2,040 Commercial real estate — — 245 Construction and development — — 954 Total $ — — 16,246 |
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2015 and December 31, 2014, the significant unobservable inputs used in the fair value measurements were as follows: September 30, 2015 and December 31, 2014 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) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings per common share: | |
Schedule of reconciliation of average shares outstanding | The following is a summary of the reconciliation of weighted average shares outstanding for the three months and nine months ended September 30, 2015 and 2014: For the Three Months Ended September 30, 2015 2014 Basic Diluted Basic Diluted Weighted average shares outstanding 9,463,722 9,463,722 9,344,683 9,344,683 Effect of dilutive securities — 211,272 — 204,012 Weighted average shares outstanding 9,463,722 9,674,994 9,344,683 9,548,695 For the Nine Months Ended September 30, 2015 2014 Basic Diluted Basic Diluted Weighted average shares outstanding 9,421,042 9,421,042 9,335,495 9,335,495 Effect of dilutive securities — 174,949 — 178,387 Weighted average shares outstanding 9,421,042 9,595,991 9,335,495 9,513,882 The following is a summary of the reconciliation of shares issued and outstanding and unvested restricted stock awards as of September 30, 2015 and 2014: As of September 30, 2015 2014 Issued and outstanding shares 9,763,383 9,715,843 Less nonvested restricted stock awards (299,606 ) (370,680 ) Period end dilutive shares 9,463,777 9,345,163 |
SUPPLEMENTAL SEGMENT INFORMAT25
SUPPLEMENTAL SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 three months and nine months ended September 30, 2015 and 2014: Community Mortgage For the Three Months Ended September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 11,971 550 4 (13 ) 12,512 Interest expense 1,475 37 148 (37 ) 1,623 Net interest income (expense) 10,496 513 (144 ) 24 10,889 Provision for loan losses (5 ) 5 — — — Noninterest income from external customers 1,670 5,652 — — 7,322 Intersegment noninterest income 1 8 1,768 (1,777 ) — Noninterest expense 6,444 3,901 2,036 — 12,381 Intersegment noninterest expense 1,528 241 — (1,769 ) — Income (loss) before income taxes 4,200 2,026 (412 ) 16 5,830 Income tax expense (benefit) 1,346 753 (156 ) 6 1,949 Net income (loss) $ 2,854 1,273 (256 ) 10 3,881 Community Mortgage For the Three Months Ended September 30, 2014 Banking Banking Other Eliminations Total (In thousands) Interest income $ 9,034 436 4 22 9,496 Interest expense 1,303 12 136 (13 ) 1,438 Net interest income (expense) 7,731 424 (132 ) 35 8,058 Provision for loan losses (31 ) 31 — — — Noninterest income from external customers 1,139 4,351 17 — 5,507 Intersegment noninterest income — 31 1,510 (1,541 ) — Noninterest expense 4,792 3,783 1,658 — 10,233 Intersegment noninterest expense 1,269 240 — (1,509 ) — Income (loss) before income taxes 2,840 752 (263 ) 3 3,332 Income tax expense (benefit) 850 177 (97 ) 1 931 Net income (loss) $ 1,990 575 (166 ) 2 2,401 The following tables present selected financial information for the Company’s reportable business segments for the nine months ended September 30, 2015 and 2014: Community Mortgage For the Nine Months Ended September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Interest income $ 35,139 1,423 12 28 36,602 Interest expense 4,263 89 439 (89 ) 4,702 Net interest income (expense) 30,876 1,334 (427 ) 117 31,900 Provision for loan losses (57 ) 57 — — — Noninterest income from external customers 4,569 16,605 2 — 21,176 Intersegment noninterest income 3 84 5,304 (5,391 ) — Noninterest expense 19,019 11,989 5,955 — 36,963 Intersegment noninterest expense 4,584 723 — (5,307 ) — Income (loss) before income taxes 11,902 5,254 (1,076 ) 33 16,113 Income tax expense (benefit) 3,758 1,947 (416 ) 13 5,302 Net income (loss) $ 8,144 3,307 (660 ) 20 10,811 Community Mortgage For the Nine Months Ended September 30, 2014 Banking Banking Other Eliminations Total (In thousands) Interest income $ 25,555 995 12 89 26,651 Interest expense 3,786 12 405 (12 ) 4,191 Net interest income (expense) 21,769 983 (393 ) 101 22,460 Provision for loan losses (41 ) 41 — — — Noninterest income from external customers 3,012 13,277 36 — 16,325 Intersegment noninterest income — 126 4,529 (4,655 ) — Noninterest expense 13,173 11,183 4,975 — 29,331 Intersegment noninterest expense 3,809 720 — (4,529 ) — Income (loss) before income taxes 7,840 2,442 (803 ) (25 ) 9,454 Income tax expense (benefit) 2,351 816 (296 ) (10 ) 2,861 Net income (loss) $ 5,489 1,626 (507 ) (15 ) 6,593 The following tables present selected financial information for the Company’s reportable business segments for September 30, 2015 and December 31, 2014: Community Mortgage At September 30, 2015 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,321,448 66,716 120,851 (178,850 ) 1,330,165 Loans receivable, net 832,418 16,699 — (2,234 ) 846,883 Loans held for sale 2,306 29,391 — — 31,697 Deposits 1,036,124 — — (2,173 ) 1,033,951 Borrowed funds 158,000 1,500 15,465 (1,500 ) 173,465 Community Mortgage At December 31, 2014 Banking Banking Other Eliminations Total (In thousands) Assets $ 1,192,419 67,952 111,096 (172,450 ) 1,199,017 Loans receivable, net 764,881 10,808 — (7,567 ) 768,122 Loans held for sale 1,547 39,365 — — 40,912 Deposits 966,309 — — (2,119 ) 964,190 Borrowed funds 104,076 6,800 15,465 (6,801 ) 119,540 |
SUMMARY OF SIGNIFICANT ACCOUN26
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Oct. 21, 2015 | Dec. 31, 2014 | |
Value of common stock issued to company | $ 98 | $ 97 | |
Description of stock split | 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, issued on February 28, 2014. On October 15, 2014, the Board of Directors of the Company declared an additional two-for-one stock split to stockholders of record as of October 31, 2014, issued on November 14, 2014. On June 22, 2015, the Board of Directors of the Company declared a six-for-five stock split representing a 20% stock dividend to stockholders of record as of July 15, 2015, payable on July 31, 2015. | ||
Subseqent event [Member] | |||
Dividends Payable, Amount Per Share | $ .03 | ||
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 | $ 465 | $ 465 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available For Sale | ||
Amortized Cost | $ 313,312 | $ 246,435 |
Unrealized Gains | 5,391 | 5,553 |
Unrealized Losses | (4,722) | (271) |
Securities available for sale | 313,981 | 251,717 |
Held-to-maturity Securities | ||
Amortized Cost | 17,112 | 25,544 |
Unrealized Gains | $ 863 | 4,007 |
Unrealized Loss | (2,166) | |
Fair Value | $ 17,975 | 27,385 |
Municipal securities [Member] | ||
Available For Sale | ||
Amortized Cost | 63,882 | 43,119 |
Unrealized Gains | 1,105 | 1,621 |
Unrealized Losses | (188) | (23) |
Securities available for sale | 64,799 | 44,717 |
Held-to-maturity Securities | ||
Amortized Cost | 17,112 | 16,787 |
Unrealized Gains | $ 863 | 882 |
Unrealized Loss | (17) | |
Fair Value | $ 17,975 | 17,652 |
US government agencies [Member] | ||
Available For Sale | ||
Amortized Cost | 7,015 | $ 4,770 |
Unrealized Gains | $ 105 | |
Unrealized Losses | $ (22) | |
Securities available for sale | $ 7,120 | 4,748 |
Collateralized loan obligations [Member] | ||
Available For Sale | ||
Amortized Cost | $ 38,956 | 25,883 |
Unrealized Gains | 11 | |
Unrealized Losses | $ (328) | (22) |
Securities available for sale | 38,628 | 25,872 |
Mortgage-backed securities Agency [Member] | ||
Available For Sale | ||
Amortized Cost | 110,483 | 122,727 |
Unrealized Gains | 2,234 | 2,856 |
Unrealized Losses | (125) | (41) |
Securities available for sale | 112,592 | 125,542 |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale | ||
Amortized Cost | 81,597 | 49,936 |
Unrealized Gains | 719 | 1,065 |
Unrealized Losses | (394) | (163) |
Securities available for sale | 81,922 | 50,838 |
Total mortgage-backed securities [Member] | ||
Available For Sale | ||
Amortized Cost | 192,080 | 172,663 |
Unrealized Gains | 2,953 | 3,921 |
Unrealized Losses | (519) | (204) |
Securities available for sale | 194,514 | 176,380 |
Trust preferred securities [Member] | ||
Available For Sale | ||
Amortized Cost | 11,379 | |
Unrealized Gains | 1,228 | |
Unrealized Losses | (3,687) | |
Securities available for sale | $ 8,920 | |
Held-to-maturity Securities | ||
Amortized Cost | 8,757 | |
Unrealized Gains | 3,125 | |
Unrealized Loss | (2,149) | |
Fair Value | $ 9,733 |
SECURITIES (Details 2)
SECURITIES (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Value | $ 313,981 | $ 251,717 |
Amortizied Cost | $ 313,312 | 246,435 |
Held-to-maturity Securities [Member] | ||
Purchased Face Value | 16,826 | |
Cumulative OTTI | (3,975) | |
Carrying Value | $ 12,851 | |
Gross Gains Unrealized Recognized in OCI | ||
Gross Loss Unrealized Recognized in OCI | $ (4,094) | |
Amortizied Cost | 8,757 | |
Gross Gains Unrealized Not Recognized in OCI | 3,125 | |
Gross Loss Unrealized Not Recognized in OCI | (2,149) | |
Estimated Fair Value | 9,733 | |
Held-to-maturity Securities [Member] | Total A Class [Member] | ||
Purchased Face Value | $ 2,381 | |
Cumulative OTTI | ||
Carrying Value | $ 2,381 | |
Gross Gains Unrealized Recognized in OCI | ||
Gross Loss Unrealized Recognized in OCI | $ (558) | |
Amortizied Cost | 1,823 | |
Gross Gains Unrealized Not Recognized in OCI | 336 | |
Gross Loss Unrealized Not Recognized in OCI | (75) | |
Estimated Fair Value | $ 2,084 | |
Held-to-maturity Securities [Member] | Total A Class [Member] | Minimum [Member] | ||
Collateralization Percentage | 175.00% | |
Held-to-maturity Securities [Member] | Total A Class [Member] | Maximum [Member] | ||
Collateralization Percentage | 378.00% | |
Held-to-maturity Securities [Member] | Total B Class [Member] | ||
Purchased Face Value | $ 11,718 | |
Cumulative OTTI | (2,635) | |
Carrying Value | $ 9,083 | |
Gross Gains Unrealized Recognized in OCI | ||
Gross Loss Unrealized Recognized in OCI | $ (2,458) | |
Amortizied Cost | 6,625 | |
Gross Gains Unrealized Not Recognized in OCI | 1,788 | |
Gross Loss Unrealized Not Recognized in OCI | (2,074) | |
Estimated Fair Value | $ 6,339 | |
Held-to-maturity Securities [Member] | Total B Class [Member] | Minimum [Member] | ||
Collateralization Percentage | 96.00% | |
Held-to-maturity Securities [Member] | Total B Class [Member] | Maximum [Member] | ||
Collateralization Percentage | 111.00% | |
Held-to-maturity Securities [Member] | Total C Class [Member] | ||
Purchased Face Value | $ 2,727 | |
Cumulative OTTI | (1,340) | |
Carrying Value | $ 1,387 | |
Gross Gains Unrealized Recognized in OCI | ||
Gross Loss Unrealized Recognized in OCI | $ (1,078) | |
Amortizied Cost | 309 | |
Gross Gains Unrealized Not Recognized in OCI | $ 1,001 | |
Gross Loss Unrealized Not Recognized in OCI | ||
Estimated Fair Value | $ 1,310 | |
Held-to-maturity Securities [Member] | Total C Class [Member] | Minimum [Member] | ||
Collateralization Percentage | 92.00% | |
Held-to-maturity Securities [Member] | Total C Class [Member] | Maximum [Member] | ||
Collateralization Percentage | 92.00% |
SECURITIES (Details 3)
SECURITIES (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Investment securities, Amortized Cost | ||
Less than one year | ||
One to five years | $ 289 | |
Six to ten years | 21,454 | |
After ten years | 291,569 | |
Total | $ 313,312 | $ 246,435 |
Investment securities, Fair Value | ||
Less than one year | ||
One to five years | $ 294 | |
Six to ten years | 21,684 | |
After ten years | 292,003 | |
Securities available for sale | $ 313,981 | 251,717 |
Amortized Cost | ||
Less than one year | ||
One to five years | ||
Six to ten years | $ 4,852 | |
After ten years | 12,260 | |
Total | $ 17,112 | 25,544 |
Fair Value | ||
Less than one year | ||
One to five years | ||
Six to ten years | $ 4,947 | |
After ten years | 13,028 | |
Total | $ 17,975 | $ 27,385 |
SECURITIES (Details 4)
SECURITIES (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gross realized gains and losses, Available-for-sale | ||||
Proceeds | $ 32,829 | $ 27,604 | $ 94,638 | $ 56,164 |
Realized gains | 1,026 | 340 | 1,605 | 860 |
Realized losses | (9) | (127) | (146) | (167) |
Total investment securities gains, net | $ 1,017 | $ 213 | $ 1,459 | $ 693 |
SECURITIES (Details 5)
SECURITIES (Details 5) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | $ 93,299 | $ 53,782 |
Less than 12 Months, Fair Value | 92,505 | 53,547 |
Less than 12 Months, Unrealized Losses | (794) | (235) |
Greater than 12 Months, Amortized Cost | 28,999 | 4,618 |
Greater than 12 Months, Fair Value | 25,071 | 4,582 |
Greater than 12 Months, Unrealized Losses | (3,928) | (36) |
Total, Amortized Cost | 122,298 | 58,400 |
Total, Fair Value | 117,576 | 58,129 |
Total, Unrealized Losses | (4,722) | $ (271) |
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 | $ 9,689 | |
Greater than 12 Months, Fair Value | 7,523 | |
Greater than 12 Months, Unrealized Losses | (2,166) | |
Total, Amortized Cost | 9,689 | |
Total, Fair Value | 7,523 | |
Total, Unrealized Losses | (2,166) | |
Municipal securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 19,191 | 2,479 |
Less than 12 Months, Fair Value | 19,003 | 2,475 |
Less than 12 Months, Unrealized Losses | $ (188) | (4) |
Greater than 12 Months, Amortized Cost | 1,504 | |
Greater than 12 Months, Fair Value | 1,485 | |
Greater than 12 Months, Unrealized Losses | (19) | |
Total, Amortized Cost | $ 19,191 | 3,983 |
Total, Fair Value | 19,003 | 3,960 |
Total, Unrealized Losses | $ (188) | $ (23) |
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 | $ 2,363 | |
Greater than 12 Months, Fair Value | 2,346 | |
Greater than 12 Months, Unrealized Losses | (17) | |
Total, Amortized Cost | 2,363 | |
Total, Fair Value | 2,346 | |
Total, Unrealized Losses | (17) | |
US government agencies [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 4,770 | |
Less than 12 Months, Fair Value | 4,748 | |
Less than 12 Months, Unrealized Losses | $ (22) | |
Greater than 12 Months, Amortized Cost | ||
Greater than 12 Months, Fair Value | ||
Greater than 12 Months, Unrealized Losses | ||
Total, Amortized Cost | $ 4,770 | |
Total, Fair Value | 4,748 | |
Total, Unrealized Losses | (22) | |
Collateralized loan obligations [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | $ 25,249 | 14,708 |
Less than 12 Months, Fair Value | 25,021 | 14,686 |
Less than 12 Months, Unrealized Losses | (228) | $ (22) |
Greater than 12 Months, Amortized Cost | 9,707 | |
Greater than 12 Months, Fair Value | 9,607 | |
Greater than 12 Months, Unrealized Losses | (100) | |
Total, Amortized Cost | 34,956 | $ 14,708 |
Total, Fair Value | 34,628 | 14,686 |
Total, Unrealized Losses | (328) | (22) |
Mortgage-backed securities Agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 22,540 | 17,541 |
Less than 12 Months, Fair Value | 22,417 | 17,500 |
Less than 12 Months, Unrealized Losses | (123) | $ (41) |
Greater than 12 Months, Amortized Cost | 866 | |
Greater than 12 Months, Fair Value | 864 | |
Greater than 12 Months, Unrealized Losses | (2) | |
Total, Amortized Cost | 23,406 | $ 17,541 |
Total, Fair Value | 23,281 | 17,500 |
Total, Unrealized Losses | (125) | (41) |
Mortgage-backed securities Non-agency [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 26,319 | 14,284 |
Less than 12 Months, Fair Value | 26,064 | 14,138 |
Less than 12 Months, Unrealized Losses | (255) | (146) |
Greater than 12 Months, Amortized Cost | 9,601 | 3,114 |
Greater than 12 Months, Fair Value | 9,462 | 3,097 |
Greater than 12 Months, Unrealized Losses | (139) | (17) |
Total, Amortized Cost | 35,920 | 17,398 |
Total, Fair Value | 35,526 | 17,235 |
Total, Unrealized Losses | (394) | (163) |
Total mortgage-backed securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | 48,859 | 31,825 |
Less than 12 Months, Fair Value | 48,481 | 31,638 |
Less than 12 Months, Unrealized Losses | (378) | (187) |
Greater than 12 Months, Amortized Cost | 10,467 | 3,114 |
Greater than 12 Months, Fair Value | 10,326 | 3,097 |
Greater than 12 Months, Unrealized Losses | (141) | (17) |
Total, Amortized Cost | 59,326 | 34,939 |
Total, Fair Value | 58,807 | 34,735 |
Total, Unrealized Losses | $ (519) | $ (204) |
Trust preferred securities [Member] | ||
Available For Sale Securities | ||
Less than 12 Months, Amortized Cost | ||
Less than 12 Months, Fair Value | ||
Less than 12 Months, Unrealized Losses | ||
Greater than 12 Months, Amortized Cost | $ 8,825 | |
Greater than 12 Months, Fair Value | 5,138 | |
Greater than 12 Months, Unrealized Losses | (3,687) | |
Total, Amortized Cost | 8,825 | |
Total, Fair Value | 5,138 | |
Total, Unrealized Losses | $ (3,687) | |
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 | $ 7,326 | |
Greater than 12 Months, Fair Value | 5,177 | |
Greater than 12 Months, Unrealized Losses | (2,149) | |
Total, Amortized Cost | 7,326 | |
Total, Fair Value | 5,177 | |
Total, Unrealized Losses | $ (2,149) |
SECURITIES (Details Narrative)
SECURITIES (Details Narrative) $ in Thousands | Sep. 30, 2015USD ($)Item | Dec. 31, 2014USD ($)Item |
Securities Details 3 | ||
Amortized cost of securities reclassified to available-for-sale from held-to-maturity | $ 11,400 | |
Pooled trust preferred securities in Investment Grade | $ 900 | |
Split-rated security | 1,100 | 1,000 |
Split rated security, fair valie | 779 | |
Below investment grade security | $ 6,900 | |
Mezzanine tranches subordinate to senior tranches | 10,300 | |
Mezzanine tranches fair value | 8,100 | |
Available for Sale Securities pledged for FHLB advances | $ 48,700 | |
Available-for-sale, Securities in Unrealized Loss Positions, Number of Positions | Item | 55 | 26 |
DERIVATIVES (Details)
DERIVATIVES (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Asset derivatives, Fair value | $ 2,812 | $ 1,689 |
Notional Value, Assets | 181,166 | 133,732 |
Liability derivatives, Fair value | 2,094 | 1,036 |
Notional Value, Liability | 142,301 | 113,000 |
Mortgage loan interest rate lock commitments [Member] | ||
Asset derivatives, Fair value | 2,299 | 1,122 |
Notional Value, Assets | 160,207 | 106,440 |
Mortgage loan forward sales commitments [Member] | ||
Asset derivatives, Fair value | 513 | 567 |
Notional Value, Assets | 20,959 | $ 27,292 |
Mortgage-backed securities forward sales commitments [Member] | ||
Asset derivatives, Fair value | ||
Notional Value, Assets | ||
Liability derivatives, Fair value | 773 | $ 506 |
Notional Value, Liability | 112,301 | $ 93,000 |
Interest rate swaps [Member] | ||
Asset derivatives, Fair value | ||
Notional Value, Assets | ||
Liability derivatives, Fair value | 1,321 | $ 530 |
Notional Value, Liability | $ 30,000 | $ 20,000 |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Total gross loans receivable | $ 857,788 | $ 778,266 | ||||
Percentage of Total Loan | 100.00% | 100.00% | ||||
Allowance for loan losses | $ 9,889 | $ 10,017 | $ 9,035 | $ 8,905 | $ 8,662 | $ 8,091 |
Deferred fees, net | 1,016 | 1,109 | ||||
Total loans receivable, net | 846,883 | 768,122 | ||||
Consumer loans [Member] | ||||||
Total gross loans receivable | $ 5,529 | $ 5,675 | ||||
Percentage of Total Loan | 0.64% | 0.73% | ||||
Allowance for loan losses | $ 21 | 50 | $ 30 | 27 | 28 | 42 |
Commercial business loans [Member] | ||||||
Total gross loans receivable | $ 109,343 | $ 82,305 | ||||
Percentage of Total Loan | 12.75% | 10.58% | ||||
Allowance for loan losses | $ 1,976 | 1,891 | $ 1,430 | 1,221 | 947 | 339 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ||||||
Total gross loans receivable | $ 298,882 | $ 252,819 | ||||
Percentage of Total Loan | 34.85% | 32.48% | ||||
Allowance for loan losses | $ 3,029 | 3,213 | $ 2,888 | 2,604 | 2,504 | 2,472 |
Loans secured by Real Estate [Member] | Home equity [Member] | ||||||
Total gross loans receivable | $ 23,915 | $ 27,547 | ||||
Percentage of Total Loan | 2.79% | 3.54% | ||||
Allowance for loan losses | $ 166 | 208 | $ 221 | 217 | 207 | 231 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||||||
Total gross loans receivable | $ 338,767 | $ 317,912 | ||||
Percentage of Total Loan | 39.49% | 40.85% | ||||
Allowance for loan losses | $ 3,517 | 3,434 | $ 3,283 | 2,875 | 3,173 | 2,855 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ||||||
Total gross loans receivable | $ 81,352 | $ 92,008 | ||||
Percentage of Total Loan | 9.48% | 11.82% | ||||
Allowance for loan losses | $ 997 | $ 1,072 | $ 1,069 | $ 1,298 | $ 1,225 | $ 1,418 |
LOANS RECEIVABLE, NET (Details
LOANS RECEIVABLE, NET (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans Receivable Net Details 2 | ||
Variable rate loans | $ 379,024 | $ 337,802 |
Variable rate loans (as a percentage) | 44.19% | 43.40% |
Fixed rate loans | $ 478,764 | $ 440,464 |
Fixed rate loans (as a percentage) | 55.81% | 56.60% |
Total loans outstanding | $ 857,788 | $ 778,266 |
Total loans outstanding (as a percentage) | 100.00% | 100.00% |
LOANS RECEIVABLE, NET (Detail36
LOANS RECEIVABLE, NET (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | $ 10,017 | $ 8,662 | $ 9,035 | $ 8,091 |
Provision for Loan Losses | ||||
Charge-Offs | $ (655) | $ (62) | $ (789) | $ (346) |
Recoveries | 527 | 305 | 1,643 | 1,160 |
Ending Balance | 9,889 | 8,905 | 9,889 | 8,905 |
Consumer loans [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 50 | 28 | 30 | 42 |
Provision for Loan Losses | (28) | (11) | (25) | (62) |
Charge-Offs | (6) | (1) | (9) | (14) |
Recoveries | 5 | 11 | 25 | 61 |
Ending Balance | 21 | 27 | 21 | 27 |
Commercial business loans [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,891 | 947 | 1,430 | 339 |
Provision for Loan Losses | 53 | 282 | 345 | 485 |
Charge-Offs | (26) | (59) | (67) | (59) |
Recoveries | 58 | 51 | 268 | 456 |
Ending Balance | 1,976 | 1,221 | 1,976 | 1,221 |
Unallocated [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 149 | 578 | 114 | 734 |
Provision for Loan Losses | $ 34 | $ 85 | $ 69 | $ (71) |
Charge-Offs | ||||
Recoveries | ||||
Ending Balance | $ 183 | $ 663 | $ 183 | $ 663 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 3,213 | 2,504 | 2,888 | 2,472 |
Provision for Loan Losses | 241 | $ 82 | 240 | 116 |
Charge-Offs | (623) | (623) | (73) | |
Recoveries | 198 | $ 18 | 524 | 89 |
Ending Balance | 3,029 | 2,604 | 3,029 | 2,604 |
Loans secured by Real Estate [Member] | Home equity [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 208 | 207 | 221 | 231 |
Provision for Loan Losses | $ (42) | $ 10 | $ (55) | $ (14) |
Charge-Offs | ||||
Recoveries | ||||
Ending Balance | $ 166 | $ 217 | $ 166 | $ 217 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 3,434 | 3,173 | 3,283 | 2,855 |
Provision for Loan Losses | $ (17) | $ (399) | $ (116) | (53) |
Charge-Offs | (28) | |||
Recoveries | $ 100 | $ 101 | $ 350 | 101 |
Ending Balance | 3,517 | 2,875 | 3,517 | 2,875 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning Balance | 1,072 | 1,225 | 1,069 | 1,418 |
Provision for Loan Losses | $ (241) | (49) | (458) | (401) |
Charge-Offs | (2) | (90) | (172) | |
Recoveries | $ 166 | 124 | 476 | 453 |
Ending Balance | $ 997 | $ 1,298 | $ 997 | $ 1,298 |
LOANS RECEIVABLE, NET (Detail37
LOANS RECEIVABLE, NET (Details 4) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | $ 739 | $ 485 |
Loans Collectively Evaluated for Impairment | 9,150 | 8,550 |
Ending Balance | 9,889 | 9,035 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 15,461 | 13,492 |
Collectively Evaluated for Impairment | 842,328 | 764,774 |
Total | 857,788 | 778,266 |
Consumer loans [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 9 | 1 |
Loans Collectively Evaluated for Impairment | 12 | 29 |
Ending Balance | 21 | 30 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 75 | 30 |
Collectively Evaluated for Impairment | 5,455 | 5,644 |
Total | 5,529 | $ 5,674 |
Commercial business loans [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 3 | |
Loans Collectively Evaluated for Impairment | 1,973 | $ 1,430 |
Ending Balance | 1,976 | 1,430 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 1,065 | 1,730 |
Collectively Evaluated for Impairment | 108,278 | 80,575 |
Total | $ 109,343 | $ 82,305 |
Unallocated [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | ||
Loans Collectively Evaluated for Impairment | $ 183 | $ 114 |
Ending Balance | $ 183 | $ 114 |
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 | $ 255 | $ 364 |
Loans Collectively Evaluated for Impairment | 2,774 | 2,524 |
Ending Balance | 3,029 | 2,888 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 4,184 | 3,249 |
Collectively Evaluated for Impairment | 294,698 | 249,570 |
Total | $ 298,882 | $ 252,819 |
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 | $ 166 | $ 221 |
Ending Balance | $ 166 | 221 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 63 | |
Collectively Evaluated for Impairment | $ 23,915 | 27,485 |
Total | 23,915 | 27,548 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 343 | 30 |
Loans Collectively Evaluated for Impairment | 3,174 | 3,253 |
Ending Balance | 3,517 | 3,283 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 9,504 | 8,153 |
Collectively Evaluated for Impairment | 329,263 | 309,759 |
Total | 338,767 | 317,912 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ||
Allowance for loan losses ending balances: | ||
Loans Individually Evaluated for Impairment | 129 | 90 |
Loans Collectively Evaluated for Impairment | 868 | 979 |
Ending Balance | 997 | 1,069 |
Loans receivable ending balances: | ||
Individually Evaluated for Impairment | 633 | 267 |
Collectively Evaluated for Impairment | 80,719 | 91,741 |
Total | $ 81,352 | $ 92,008 |
LOANS RECEIVABLE, NET (Detail38
LOANS RECEIVABLE, NET (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 12,671 | $ 12,671 | $ 11,723 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 2,790 | 2,790 | 1,769 | ||
Impaired Financing Receivable, Recorded Investment | 15,461 | 15,461 | 13,492 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 18,458 | 18,458 | 17,746 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 2,790 | 2,790 | 1,769 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 21,248 | 21,248 | 19,515 | ||
Impaired Financing Receivable, Related Allowance | 739 | 739 | 485 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 13,342 | $ 18,832 | 13,159 | $ 22,837 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,990 | 1,443 | 1,190 | 937 | |
Impaired Financing Receivable, Average Recorded Investment | 15,332 | 20,275 | 14,349 | 23,774 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 243 | 266 | 635 | 634 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | (22) | 9 | 37 | 21 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 221 | 275 | 672 | 655 | |
Consumer loans [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 66 | 66 | 29 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 9 | 9 | 1 | ||
Impaired Financing Receivable, Recorded Investment | 75 | 75 | 30 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 431 | 431 | 506 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 9 | 9 | 1 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 440 | 440 | 507 | ||
Impaired Financing Receivable, Related Allowance | 9 | 9 | 1 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 54 | 23 | 41 | 22 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 9 | 3 | 7 | 5 | |
Impaired Financing Receivable, Average Recorded Investment | 63 | $ 26 | 48 | 27 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | $ 27 | $ 28 | $ 1 | ||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 27 | $ 28 | $ 1 | ||
Commercial business loans [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,062 | 1,062 | $ 1,730 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 3 | 3 | |||
Impaired Financing Receivable, Recorded Investment | 1,065 | 1,065 | $ 1,730 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,257 | 2,257 | $ 2,927 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 3 | 3 | |||
Impaired Financing Receivable, Unpaid Principal Balance | 2,260 | 2,260 | $ 2,927 | ||
Impaired Financing Receivable, Related Allowance | 3 | 3 | |||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 1,140 | $ 2,358 | 1,500 | 2,367 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 3 | 2 | 3 | 4 | |
Impaired Financing Receivable, Average Recorded Investment | 1,143 | 2,360 | 1,503 | 2,371 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | $ 25 | $ 55 | $ 112 | $ 107 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 25 | $ 55 | $ 112 | $ 107 | |
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 | 3,870 | 3,870 | $ 2,008 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 314 | 314 | 1,241 | ||
Impaired Financing Receivable, Recorded Investment | 4,184 | 4,184 | 3,249 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 5,367 | 5,367 | 3,731 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 314 | 314 | 1,241 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 5,681 | 5,681 | 4,972 | ||
Impaired Financing Receivable, Related Allowance | 255 | 255 | 364 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 3,631 | 5,051 | 3,305 | 5,413 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 315 | 908 | 317 | 505 | |
Impaired Financing Receivable, Average Recorded Investment | 3,946 | 5,959 | 3,622 | 5,918 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | $ 71 | 39 | $ 190 | 84 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | 4 | 6 | |||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 71 | $ 43 | $ 190 | $ 90 | |
Loans secured by Real Estate [Member] | Home equity [Member] | |||||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 63 | ||||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | |||||
Impaired Financing Receivable, Recorded Investment | $ 63 | ||||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | $ 347 | $ 347 | $ 410 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | |||||
Impaired Financing Receivable, Unpaid Principal Balance | $ 347 | $ 347 | $ 410 | ||
Impaired Financing Receivable, Related Allowance | |||||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | $ 31 | ||||
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | |||||
Impaired Financing Receivable, Average Recorded Investment | $ 31 | ||||
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | $ 2 | ||||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | |||||
Impaired Financing Receivable, Interest Income, Accrual Method | $ 2 | ||||
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 | $ 7,657 | 7,657 | $ 7,893 | ||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 1,847 | 1,847 | 260 | ||
Impaired Financing Receivable, Recorded Investment | 9,504 | 9,504 | 8,153 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 8,202 | 8,202 | 8,439 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 1,847 | 1,847 | 260 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 10,049 | 10,049 | 8,699 | ||
Impaired Financing Receivable, Related Allowance | 343 | 343 | $ 30 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 8,511 | $ 11,093 | 8,154 | $ 14,647 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 1,046 | 263 | 606 | 267 | |
Impaired Financing Receivable, Average Recorded Investment | 9,557 | 11,356 | 8,760 | 14,914 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | 120 | 166 | 303 | 433 | |
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | (20) | 5 | 22 | 14 | |
Impaired Financing Receivable, Interest Income, Accrual Method | 100 | 171 | 325 | 447 | |
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 | 16 | 16 | |||
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 617 | 617 | $ 267 | ||
Impaired Financing Receivable, Recorded Investment | 633 | 633 | 267 | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,854 | 1,854 | 1,733 | ||
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 617 | 617 | 267 | ||
Impaired Financing Receivable, Unpaid Principal Balance | 2,471 | 2,471 | 2,000 | ||
Impaired Financing Receivable, Related Allowance | 129 | 129 | $ 90 | ||
Impaired Financing Receivable, Average Recorded Investment [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment | 6 | 307 | 128 | 388 | |
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment | 617 | 267 | 257 | 156 | |
Impaired Financing Receivable, Average Recorded Investment | $ 623 | 574 | $ 385 | 544 | |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | |||||
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method | $ 6 | 9 | |||
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method | $ (2) | $ 15 | 1 | ||
Impaired Financing Receivable, Interest Income, Accrual Method | $ (2) | $ 6 | $ 15 | $ 10 |
LOANS RECEIVABLE, NET (Detail39
LOANS RECEIVABLE, NET (Details 6) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Aging of the recorded investment in past due loans by class of loans | ||
30-59 days past due | $ 53 | $ 722 |
60-89 days past due | 106 | 194 |
90 days or more past due | 3,213 | 2,195 |
Total Past Due | 3,372 | 3,111 |
Current | 854,416 | 775,155 |
Total loans receivable | 857,788 | 778,266 |
Nonaccrual | 4,898 | 2,434 |
Consumer loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
30-59 days past due | $ 14 | 22 |
60-89 days past due | 6 | |
90 days or more past due | $ 59 | 6 |
Total Past Due | 73 | 34 |
Current | 5,456 | 5,641 |
Total loans receivable | 5,529 | 5,674 |
Nonaccrual | 59 | 12 |
Commercial business loans [Member] | ||
Aging of the recorded investment in past due loans by class of loans | ||
30-59 days past due | $ 30 | $ 27 |
60-89 days past due | ||
90 days or more past due | $ 3 | |
Total Past Due | 33 | $ 27 |
Current | 109,310 | 82,278 |
Total loans receivable | 109,343 | 82,305 |
Nonaccrual | $ 33 | 39 |
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 | 336 | |
60-89 days past due | $ 106 | 188 |
90 days or more past due | 2,114 | 1,589 |
Total Past Due | 2,220 | 2,113 |
Current | 296,662 | 250,706 |
Total loans receivable | 298,882 | 252,819 |
Nonaccrual | $ 2,154 | 1,720 |
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 | $ 17 | |
60-89 days past due | ||
90 days or more past due | ||
Total Past Due | $ 17 | |
Current | $ 23,915 | 27,530 |
Total loans receivable | $ 23,915 | 27,548 |
Nonaccrual | 63 | |
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 | $ 260 | |
60-89 days past due | ||
90 days or more past due | $ 547 | $ 333 |
Total Past Due | 547 | 593 |
Current | 338,220 | 317,319 |
Total loans receivable | 338,767 | 317,912 |
Nonaccrual | 2,019 | 333 |
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 | $ 9 | $ 60 |
60-89 days past due | ||
90 days or more past due | $ 490 | $ 267 |
Total Past Due | 499 | 327 |
Current | 80,853 | 91,681 |
Total loans receivable | 81,352 | 92,008 |
Nonaccrual | $ 633 | $ 267 |
LOANS RECEIVABLE, NET (Detail40
LOANS RECEIVABLE, NET (Details 7) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Total loans receivable | $ 857,788 | $ 778,266 |
Pass [Member] | ||
Total loans receivable | 843,699 | 763,150 |
Special Mention [Member] | ||
Total loans receivable | 8,746 | 11,873 |
Substandard [Member] | ||
Total loans receivable | 5,343 | 3,243 |
Consumer loans [Member] | ||
Total loans receivable | 5,529 | 5,674 |
Consumer loans [Member] | Pass [Member] | ||
Total loans receivable | $ 5,470 | 5,661 |
Consumer loans [Member] | Special Mention [Member] | ||
Total loans receivable | 1 | |
Consumer loans [Member] | Substandard [Member] | ||
Total loans receivable | $ 59 | 12 |
Commercial business loans [Member] | ||
Total loans receivable | 109,343 | 82,305 |
Commercial business loans [Member] | Pass [Member] | ||
Total loans receivable | 109,019 | 81,499 |
Commercial business loans [Member] | Special Mention [Member] | ||
Total loans receivable | 169 | 217 |
Commercial business loans [Member] | Substandard [Member] | ||
Total loans receivable | 155 | 589 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ||
Total loans receivable | 298,882 | 252,819 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Pass [Member] | ||
Total loans receivable | 296,007 | 249,781 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Special Mention [Member] | ||
Total loans receivable | 545 | 1,318 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Substandard [Member] | ||
Total loans receivable | 2,330 | 1,720 |
Loans secured by Real Estate [Member] | Home equity [Member] | ||
Total loans receivable | 23,915 | 27,548 |
Loans secured by Real Estate [Member] | Home equity [Member] | Pass [Member] | ||
Total loans receivable | $ 23,915 | $ 27,485 |
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 | $ 63 | |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||
Total loans receivable | $ 338,767 | 317,912 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Pass [Member] | ||
Total loans receivable | 328,778 | 307,283 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Special Mention [Member] | ||
Total loans receivable | 7,823 | 10,037 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Substandard [Member] | ||
Total loans receivable | 2,166 | 592 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ||
Total loans receivable | 81,352 | 92,008 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Pass [Member] | ||
Total loans receivable | 80,510 | 91,441 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Special Mention [Member] | ||
Total loans receivable | 209 | 300 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Substandard [Member] | ||
Total loans receivable | $ 633 | $ 267 |
LOANS RECEIVABLE, NET (Detail41
LOANS RECEIVABLE, NET (Details 8) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Total loans receivable | $ 857,788 | $ 778,266 |
Nonaccrual | 4,898 | 2,434 |
Performing Financing Receivable [Member] | ||
Total loans receivable | 852,890 | 775,832 |
Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 4,898 | $ 2,434 |
90 days or more past due | ||
Nonaccrual | $ 4,898 | $ 2,434 |
Consumer loans [Member] | ||
Total loans receivable | 5,529 | 5,674 |
Nonaccrual | 59 | 12 |
Consumer loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 5,470 | 5,662 |
Consumer loans [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 59 | $ 12 |
90 days or more past due | ||
Nonaccrual | $ 59 | $ 12 |
Commercial business loans [Member] | ||
Total loans receivable | 109,343 | 82,305 |
Nonaccrual | 33 | 39 |
Commercial business loans [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 109,310 | 82,266 |
Commercial business loans [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 33 | $ 39 |
90 days or more past due | ||
Nonaccrual | $ 33 | $ 39 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ||
Total loans receivable | 298,882 | 252,819 |
Nonaccrual | 2,154 | 1,720 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 296,728 | 251,099 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 2,154 | $ 1,720 |
90 days or more past due | ||
Nonaccrual | $ 2,154 | $ 1,720 |
Loans secured by Real Estate [Member] | Home equity [Member] | ||
Total loans receivable | $ 23,915 | 27,548 |
Nonaccrual | 63 | |
Loans secured by Real Estate [Member] | Home equity [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | $ 23,915 | 27,485 |
Loans secured by Real Estate [Member] | Home equity [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 63 | |
90 days or more past due | ||
Nonaccrual | $ 63 | |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||
Total loans receivable | $ 338,767 | 317,912 |
Nonaccrual | 2,019 | 333 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 336,748 | 317,579 |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 2,019 | $ 333 |
90 days or more past due | ||
Nonaccrual | $ 2,019 | $ 333 |
Loans secured by Real Estate [Member] | Construction and development [Member] | ||
Total loans receivable | 81,352 | 92,008 |
Nonaccrual | 633 | 267 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Performing Financing Receivable [Member] | ||
Total loans receivable | 80,719 | 91,741 |
Loans secured by Real Estate [Member] | Construction and development [Member] | Nonperforming Financing Receivable [Member] | ||
Total loans receivable | $ 633 | $ 267 |
90 days or more past due | ||
Nonaccrual | $ 633 | $ 267 |
LOANS RECEIVABLE, NET (Detail42
LOANS RECEIVABLE, NET (Details Narrative) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)Item | Dec. 31, 2014USD ($) | |
Loans receivable acquired through Branch Acquisitions | $ 69,200 | $ 80,200 |
Loans designated as troubled debt restructurings | 10,600 | 10,800 |
Troubled debt restructurings, still accruing | $ 10,600 | $ 10,700 |
Number of Contracts due to modification identified as a TDR | Item | 14 | |
Commercial business loans [Member] | ||
Number of Contracts due to modification identified as a TDR | Item | 1 | |
Pre-Modification Recorded Investment | $ 14 | |
Post-Modification Recorded Investment | $ 14 | |
Loans secured by Real Estate [Member] | One-to-four family [Member] | ||
Number of Contracts due to modification identified as a TDR | Item | 11 | |
Pre-Modification Recorded Investment | $ 749 | |
Post-Modification Recorded Investment | $ 749 | |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | ||
Number of Contracts due to modification identified as a TDR | Item | 2 | |
Pre-Modification Recorded Investment | $ 147 | |
Post-Modification Recorded Investment | $ 147 |
REAL ESTATE ACQUIRED THROUGH 43
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Real Estate Acquired Through Foreclosure Details | ||
Balance at beginning of period | $ 3,239 | $ 6,273 |
Additions | 1,192 | 1,461 |
Sales | $ (1,687) | (3,969) |
Write downs | (526) | |
Balance at end of period | $ 2,744 | $ 3,239 |
REAL ESTATE ACQUIRED THROUGH 44
REAL ESTATE ACQUIRED THROUGH FORECLOSURE (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Acquired Through Foreclosure | $ 2,744 | $ 3,239 | $ 6,273 |
Loans secured by Real Estate [Member] | One-to-four family [Member] | |||
Real Estate Acquired Through Foreclosure | 884 | 245 | |
Loans secured by Real Estate [Member] | Commercial real estate [Member] | |||
Real Estate Acquired Through Foreclosure | 468 | 954 | |
Loans secured by Real Estate [Member] | Construction and development [Member] | |||
Real Estate Acquired Through Foreclosure | $ 1,392 | $ 2,040 |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Deposits Details | ||
Noninterest-bearing demand accounts | $ 188,191 | $ 142,900 |
Interest-bearing demand accounts | 158,981 | 183,550 |
Savings accounts | 39,050 | 36,630 |
Money market accounts | 224,219 | 246,116 |
Certificates of deposit: | ||
Less than $250,000 | 404,802 | 335,740 |
$250,000 or more | 18,708 | 19,254 |
Total certificates of deposit | 423,510 | 354,994 |
Total deposits | 1,033,951 | 964,190 |
Brokered certificates of deposit | 92,100 | 77,300 |
Institutional certificates of deposit | 48,900 | $ 44,800 |
Available for Sale Securities pledged to secure public agency funds | $ 15,100 |
ESTIMATED FAIR VALUE OF FINAN46
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Cash and due from banks | $ 11,473 | $ 10,453 |
Interest-bearing cash | 10,617 | 10,694 |
Securities available for sale | 313,981 | 251,717 |
Securities held to maturity | 17,112 | 25,544 |
Federal Home Loan Bank stock | 7,794 | 5,405 |
Other investments | 3,281 | 2,309 |
Derivative assets | 2,812 | 1,689 |
Loans held for sale | 31,697 | 40,912 |
Loans receivable, net | 846,883 | 768,122 |
Cash value life insurance | 21,893 | 21,532 |
Accrued interest receivable | 4,100 | 3,628 |
Mortgage servicing rights | 11,079 | 10,181 |
Financial liabilities: | ||
Deposits | 1,033,951 | 964,190 |
Short-term borrowed funds | 105,000 | 57,800 |
Long-term debt | 68,465 | 61,740 |
Derivative liabilities | 2,094 | 1,036 |
Accrued interest payable | 304 | 312 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and due from banks | 11,473 | 10,453 |
Interest-bearing cash | 10,617 | 10,694 |
Securities available for sale | 313,981 | 251,717 |
Securities held to maturity | 17,975 | 27,385 |
Federal Home Loan Bank stock | 7,794 | 5,405 |
Other investments | 3,281 | 2,309 |
Derivative assets | 2,812 | 1,689 |
Loans held for sale | 31,697 | 39,729 |
Loans receivable, net | 849,630 | 785,109 |
Cash value life insurance | 21,893 | 21,532 |
Accrued interest receivable | 4,100 | 3,628 |
Mortgage servicing rights | 16,218 | 15,147 |
Financial liabilities: | ||
Deposits | 1,034,347 | 962,763 |
Short-term borrowed funds | 104,895 | 57,745 |
Long-term debt | 71,192 | 65,516 |
Derivative liabilities | 2,094 | 1,036 |
Accrued interest payable | 304 | 312 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and due from banks | 11,473 | 10,453 |
Interest-bearing cash | $ 10,617 | $ 10,694 |
Securities available for sale | ||
Securities held to maturity | ||
Federal Home Loan Bank stock | ||
Other investments | ||
Derivative assets | ||
Loans held for sale | ||
Loans receivable, net | ||
Cash value life insurance | ||
Accrued interest receivable | ||
Mortgage servicing rights | ||
Financial liabilities: | ||
Deposits | ||
Short-term borrowed funds | ||
Long-term debt | ||
Derivative liabilities | $ 1,321 | $ 530 |
Accrued interest payable | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Cash and due from banks | ||
Interest-bearing cash | ||
Securities available for sale | $ 313,981 | $ 251,717 |
Securities held to maturity | $ 17,975 | $ 17,652 |
Federal Home Loan Bank stock | ||
Other investments | ||
Derivative assets | $ 2,812 | $ 1,689 |
Loans held for sale | $ 31,697 | $ 39,729 |
Loans receivable, net | ||
Cash value life insurance | $ 21,893 | $ 21,532 |
Accrued interest receivable | 4,100 | 3,628 |
Mortgage servicing rights | 16,218 | 15,147 |
Financial liabilities: | ||
Deposits | 1,034,347 | 962,763 |
Short-term borrowed funds | 104,895 | 57,745 |
Long-term debt | 71,192 | 65,516 |
Derivative liabilities | 773 | 506 |
Accrued interest payable | $ 304 | $ 312 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Cash and due from banks | ||
Interest-bearing cash | ||
Securities available for sale | ||
Securities held to maturity | $ 9,733 | |
Federal Home Loan Bank stock | $ 7,794 | 5,405 |
Other investments | $ 3,281 | $ 2,309 |
Derivative assets | ||
Loans held for sale | ||
Loans receivable, net | $ 849,630 | $ 785,109 |
Cash value life insurance | ||
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 | $ 11,473 | $ 10,453 |
Interest-bearing cash | 10,617 | 10,694 |
Securities available for sale | 313,981 | 251,717 |
Securities held to maturity | 17,112 | 25,544 |
Federal Home Loan Bank stock | 7,794 | 5,405 |
Other investments | 3,281 | 2,309 |
Derivative assets | 2,812 | 1,689 |
Loans held for sale | 31,697 | 40,912 |
Loans receivable, net | 846,883 | 768,122 |
Cash value life insurance | 21,893 | 21,532 |
Accrued interest receivable | 4,100 | 3,628 |
Mortgage servicing rights | 11,079 | 10,181 |
Financial liabilities: | ||
Deposits | 1,033,951 | 964,190 |
Short-term borrowed funds | 105,000 | 57,800 |
Long-term debt | 68,465 | 61,740 |
Derivative liabilities | 2,094 | 1,036 |
Accrued interest payable | $ 304 | $ 312 |
ESTIMATED FAIR VALUE OF FINAN47
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument [Member] | ||
Derivative Assets | ||
Notional Value, Assets | $ 181,166 | $ 133,732 |
Asset derivatives, Fair value | 2,812 | 1,689 |
Derivative Liability | ||
Notional Value, Liability | 142,301 | 113,000 |
Liability derivatives, Fair value | 2,094 | 1,036 |
Designated as Hedging Instrument [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Assets | ||
Notional Value, Assets | 160,207 | 106,440 |
Asset derivatives, Fair value | 2,299 | 1,122 |
Designated as Hedging Instrument [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Assets | ||
Notional Value, Assets | 20,959 | 27,292 |
Asset derivatives, Fair value | 513 | $ 567 |
Designated as Hedging Instrument [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Assets | ||
Notional Value, Assets | ||
Asset derivatives, Fair value | ||
Derivative Liability | ||
Notional Value, Liability | 112,301 | $ 93,000 |
Liability derivatives, Fair value | 773 | $ 506 |
Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivative Assets | ||
Notional Value, Assets | ||
Asset derivatives, Fair value | ||
Derivative Liability | ||
Notional Value, Liability | 30,000 | $ 20,000 |
Liability derivatives, Fair value | 1,321 | 530 |
Commitments to Extend Credit [Member] | ||
Off-Balance Sheet Financial Instruments: | ||
Notional Amount | $ 68,854 | $ 68,181 |
Estimated Fair Value | ||
Standby Letters of Credit [Member] | ||
Off-Balance Sheet Financial Instruments: | ||
Notional Amount | $ 835 | $ 1,982 |
Estimated Fair Value |
ESTIMATED FAIR VALUE OF FINAN48
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Securities available for sale | $ 313,981 | $ 251,717 |
Loans held for sale | 31,697 | 40,912 |
Derivative Asset | 2,812 | 1,689 |
Brokered deposits | 92,100 | 77,300 |
Derivative Liability | 2,094 | 1,036 |
Municipal securities [Member] | ||
Securities available for sale | 64,799 | 44,717 |
US government agencies [Member] | ||
Securities available for sale | 7,120 | 4,748 |
Mortgage-backed securities Agency [Member] | ||
Securities available for sale | 112,592 | 125,542 |
Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | 81,922 | 50,838 |
Collateralized loan obligations [Member] | ||
Securities available for sale | 38,628 | $ 25,872 |
Trust preferred securities [Member] | ||
Securities available for sale | $ 8,920 | |
Fair Value, Inputs, Level 1 [Member] | ||
Securities available for sale | ||
Loans held for sale | ||
Derivative Asset | ||
Derivative Liability | $ 1,321 | $ 530 |
Fair Value, Inputs, Level 2 [Member] | ||
Securities available for sale | 313,981 | 251,717 |
Loans held for sale | 31,697 | 39,729 |
Derivative Asset | 2,812 | 1,689 |
Derivative Liability | $ 773 | $ 506 |
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] | ||
Loans held for sale | ||
Assets and liabilities measured at fair value | $ 1,321 | $ 530 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest rate swaps [Member] | ||
Derivative Liability | $ 1,321 | $ 530 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal securities [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | US government agencies [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Trust preferred securities [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Loans held for sale | $ 31,697 | $ 40,912 |
Assets and liabilities measured at fair value | 349,263 | 294,824 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | 2,299 | 1,122 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | 513 | 567 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Liability | $ 773 | $ 506 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest rate swaps [Member] | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal securities [Member] | ||
Securities available for sale | $ 64,799 | $ 44,717 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | US government agencies [Member] | ||
Securities available for sale | 7,120 | 4,748 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | 112,592 | 125,542 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | 81,922 | 50,838 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | 38,628 | $ 25,872 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Trust preferred securities [Member] | ||
Securities available for sale | $ 8,920 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Loans held for sale | ||
Assets and liabilities measured at fair value | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan interest rate lock commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage loan forward sales commitments [Member] | ||
Derivative Asset | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities forward sales commitments [Member] | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest rate swaps [Member] | ||
Derivative Liability | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal securities [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | US government agencies [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities Non-agency [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Collateralized loan obligations [Member] | ||
Securities available for sale | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Trust preferred securities [Member] | ||
Securities available for sale |
ESTIMATED FAIR VALUE OF FINAN49
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 4) - Nonrecurring basis [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
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 | $ 17,466 | $ 16,246 |
Fair Value, Inputs, Level 3 [Member] | One-to-four family [Member] | ||
Assets measured at fair value on a nonrecurring basis | 884 | 2,040 |
Fair Value, Inputs, Level 3 [Member] | Commercial real estate [Member] | ||
Assets measured at fair value on a nonrecurring basis | 468 | 245 |
Fair Value, Inputs, Level 3 [Member] | Construction and development [Member] | ||
Assets measured at fair value on a nonrecurring basis | 1,392 | 954 |
Fair Value, Inputs, Level 3 [Member] | Consumer loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 66 | 29 |
Fair Value, Inputs, Level 3 [Member] | Commercial business loans [Member] | ||
Assets measured at fair value on a nonrecurring basis | 1,062 | 1,730 |
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 | $ 3,929 | 2,885 |
Fair Value, Inputs, Level 3 [Member] | Loans secured by Real Estate [Member] | Home equity [Member] | ||
Assets measured at fair value on a nonrecurring basis | 63 | |
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 | $ 9,161 | 8,123 |
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 | $ 504 | $ 177 |
ESTIMATED FAIR VALUE OF FINAN50
ESTIMATED FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 5) - Fair Value, Inputs, Level 3 [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
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) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Details | ||||
Weighted average shares outstanding | 9,463,722 | 9,344,683 | 9,421,042 | 9,335,495 |
Effect of dilutive securities | 211,272 | 204,012 | 174,949 | 178,387 |
Average shares outstanding | 9,674,994 | 9,548,695 | 9,595,991 | 9,513,882 |
EARNINGS PER SHARE (Details 2)
EARNINGS PER SHARE (Details 2) - shares | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 |
Earnings Per Share Details | |||
Issued and outstanding shares | 9,763,383 | 9,717,043 | 9,715,843 |
Less nonvested restricted stock award | (299,606) | (370,680) | |
Period end dilutive shares | 9,463,777 | 9,345,163 |
SUPPLEMENTAL SEGMENT INFORMAT53
SUPPLEMENTAL SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income | $ 12,512 | $ 9,496 | $ 36,602 | $ 26,651 |
Interest expense | 1,623 | 1,438 | 4,702 | 4,191 |
Net interest income (expense) | $ 10,889 | $ 8,058 | $ 31,900 | $ 22,460 |
Provision for loan losses | ||||
Noninterest income from external customers | $ 7,322 | $ 5,507 | $ 21,176 | $ 16,325 |
Intersegment noninterest income | ||||
Noninterest expense | $ 12,381 | $ 10,233 | $ 36,963 | $ 29,331 |
Intersegment noninterest expense | ||||
Income (loss) before income taxes | $ 5,830 | $ 3,332 | $ 16,113 | $ 9,454 |
Income tax expense (benefit) | 1,949 | 931 | 5,302 | 2,861 |
Net income (loss) | 3,881 | 2,401 | 10,811 | 6,593 |
Community Banking [Member] | ||||
Interest income | 11,971 | 9,034 | 35,139 | 25,555 |
Interest expense | 1,475 | 1,303 | 4,263 | 3,786 |
Net interest income (expense) | 10,496 | 7,731 | 30,876 | 21,769 |
Provision for loan losses | (5) | (31) | (57) | (41) |
Noninterest income from external customers | 1,670 | $ 1,139 | 4,569 | $ 3,012 |
Intersegment noninterest income | 1 | 3 | ||
Noninterest expense | 6,444 | $ 4,792 | 19,019 | $ 13,173 |
Intersegment noninterest expense | 1,528 | 1,269 | 4,584 | 3,809 |
Income (loss) before income taxes | 4,200 | 2,840 | 11,902 | 7,840 |
Income tax expense (benefit) | 1,346 | 850 | 3,758 | 2,351 |
Net income (loss) | 2,854 | 1,990 | 8,144 | 5,489 |
Mortgage Banking [Member] | ||||
Interest income | 550 | 436 | 1,423 | 995 |
Interest expense | 37 | 12 | 89 | 12 |
Net interest income (expense) | 513 | 424 | 1,334 | 983 |
Provision for loan losses | 5 | 31 | 57 | 41 |
Noninterest income from external customers | 5,652 | 4,351 | 16,605 | 13,277 |
Intersegment noninterest income | 8 | 31 | 84 | 126 |
Noninterest expense | 3,901 | 3,783 | 11,989 | 11,183 |
Intersegment noninterest expense | 241 | 240 | 723 | 720 |
Income (loss) before income taxes | 2,026 | 752 | 5,254 | 2,442 |
Income tax expense (benefit) | 753 | 177 | 1,947 | 816 |
Net income (loss) | 1,273 | 575 | 3,307 | 1,626 |
Other [Member] | ||||
Interest income | 4 | 4 | 12 | 12 |
Interest expense | 148 | 136 | 439 | 405 |
Net interest income (expense) | $ (144) | $ (132) | $ (427) | $ (393) |
Provision for loan losses | ||||
Noninterest income from external customers | $ 17 | $ 2 | $ 36 | |
Intersegment noninterest income | $ 1,768 | 1,510 | 5,304 | 4,529 |
Noninterest expense | $ 2,036 | $ 1,658 | $ 5,955 | $ 4,975 |
Intersegment noninterest expense | ||||
Income (loss) before income taxes | $ (412) | $ (263) | $ (1,076) | $ (803) |
Income tax expense (benefit) | (156) | (97) | (416) | (296) |
Net income (loss) | (256) | (166) | (660) | (507) |
Eliminations [Member] | ||||
Interest income | (13) | 22 | 28 | 89 |
Interest expense | (37) | (13) | (89) | (12) |
Net interest income (expense) | $ 24 | $ 35 | $ 117 | $ 101 |
Provision for loan losses | ||||
Noninterest income from external customers | ||||
Intersegment noninterest income | $ (1,777) | $ (1,541) | $ (5,391) | $ (4,655) |
Noninterest expense | ||||
Intersegment noninterest expense | $ (1,769) | $ (1,509) | $ (5,307) | $ (4,529) |
Income (loss) before income taxes | 16 | 3 | 33 | (25) |
Income tax expense (benefit) | 6 | 1 | 13 | (10) |
Net income (loss) | $ 10 | $ 2 | $ 20 | $ (15) |
SUPPLEMENTAL SEGMENT INFORMAT54
SUPPLEMENTAL SEGMENT INFORMATION (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | $ 1,330,165 | $ 1,199,017 |
Loans receivable, net | 846,883 | 768,122 |
Loans held for sale | 31,697 | 40,912 |
Deposits | 1,033,951 | 964,190 |
Borrowed funds | 173,465 | 119,540 |
Community Banking [Member] | ||
Assets | 1,321,448 | 1,192,419 |
Loans receivable, net | 832,418 | 764,881 |
Loans held for sale | 2,306 | 1,547 |
Deposits | 1,036,124 | 966,309 |
Borrowed funds | 158,000 | 104,076 |
Mortgage Banking [Member] | ||
Assets | 66,716 | 67,952 |
Loans receivable, net | 16,699 | 10,808 |
Loans held for sale | $ 29,391 | $ 39,365 |
Deposits | ||
Borrowed funds | $ 1,500 | $ 6,800 |
Other [Member] | ||
Assets | $ 120,851 | $ 111,096 |
Loans receivable, net | ||
Loans held for sale | ||
Deposits | ||
Borrowed funds | $ 15,465 | $ 15,465 |
Eliminations [Member] | ||
Assets | (178,850) | (172,450) |
Loans receivable, net | $ (2,234) | $ (7,567) |
Loans held for sale | ||
Deposits | $ (2,173) | $ (2,119) |
Borrowed funds | $ (1,500) | $ (6,801) |