Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MIDDLEBURG FINANCIAL CORP | ' |
Entity Central Index Key | '0000914138 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 7,089,091 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Cash and due from banks | $9,417 | $7,139 | ||
Interest-bearing deposits with other institutions | 53,228 | 47,276 | ||
Total cash and cash equivalents | 62,645 | 54,415 | ||
Securities available for sale, at fair value | 328,378 | 319,457 | ||
Loans held for sale | 41,855 | 82,114 | ||
Restricted securities, at cost | 7,005 | 6,990 | ||
Loans receivable, net of allowance for loan losses of $13,382 at September 30, 2013 and $14,311 at December 31, 2012 | 702,724 | 695,166 | ||
Premises and equipment, net | 20,465 | 20,587 | ||
Goodwill and identified intangibles | 5,889 | 6,017 | ||
Other real estate owned, net of valuation allowance of $603 at September 30, 2013 and $1,707 at December 31, 2012 | 4,530 | 9,929 | ||
Prepaid federal deposit insurance | 0 | 3,015 | ||
Bank owned life insurance | 16,851 | 16,484 | ||
Accrued interest receivable and other assets | 24,985 | 22,607 | ||
TOTAL ASSETS | 1,215,327 | 1,236,781 | ||
Deposits: | ' | ' | ||
Non-interest-bearing demand deposits | 190,680 | 167,137 | ||
Savings and interest-bearing demand deposits | 495,348 | 522,740 | ||
Time deposits | 272,538 | 292,023 | ||
Total deposits | 958,566 | 981,900 | ||
Securities sold under agreements to repurchase | 35,005 | 33,975 | ||
Short-term borrowings | 5,451 | 11,873 | ||
FHLB borrowings | 85,000 | 77,912 | ||
Subordinated notes | 5,155 | 5,155 | ||
Accrued interest payable and other liabilities | 10,967 | 8,844 | ||
Commitments and contingent liabilities | 0 | 0 | ||
TOTAL LIABILITIES | 1,100,144 | 1,119,659 | ||
SHAREHOLDERS' EQUITY | ' | ' | ||
Common stock ($2.50 par value; 20,000,000 shares authorized, 7,089,091 and 7,052,554 issued and outstanding at September 30, 2013 and December 31, 2012, respectively) | 17,403 | 17,357 | ||
Capital surplus | 44,139 | 43,869 | ||
Retained earnings | 50,063 | 46,235 | ||
Accumulated other comprehensive income | 833 | [1] | 6,467 | [1] |
Total Middleburg Financial Corporation shareholders' equity | 112,438 | 113,928 | ||
Non-controlling interest in consolidated subsidiary | 2,745 | 3,194 | ||
TOTAL SHAREHOLDERS' EQUITY | 115,183 | 117,122 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,215,327 | $1,236,781 | ||
[1] | All amounts shown are net of applicable income taxes using an income tax rate of 34%. |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Loans, allowance for loan losses | $13,382 | $14,311 |
Other real estate owned, valuation allowance | $603 | $1,707 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, par value | $2.50 | $2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,089,091 | 7,052,554 |
Common stock, shares outstanding | 7,089,091 | 7,052,554 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
INTEREST AND DIVIDEND INCOME | ' | ' | ' | ' |
Interest and fees on loans | $8,744 | $9,189 | $26,504 | $28,565 |
Interest and dividends on securities available for sale | ' | ' | ' | ' |
Taxable | 1,468 | 1,537 | 4,467 | 4,976 |
Tax-exempt | 640 | 596 | 1,917 | 1,799 |
Dividends | 59 | 46 | 169 | 135 |
Interest on deposits in banks and federal funds sold | 43 | 39 | 101 | 88 |
Total interest and dividend income | 10,954 | 11,407 | 33,158 | 35,563 |
INTEREST EXPENSE | ' | ' | ' | ' |
Interest on deposits | 1,190 | 1,728 | 3,817 | 5,467 |
Interest on securities sold under agreements to repurchase | 82 | 83 | 243 | 250 |
Interest on short-term borrowings | 59 | 74 | 106 | 311 |
Interest on FHLB borrowings and other debt | 303 | 305 | 896 | 889 |
Total interest expense | 1,634 | 2,190 | 5,062 | 6,917 |
NET INTEREST INCOME | 9,320 | 9,217 | 28,096 | 28,646 |
Provision for (recovery of) loan losses | 3 | 635 | -1 | 2,156 |
FOR (RECOVERY OF) LOAN LOSSES | 9,317 | 8,582 | 28,097 | 26,490 |
NON-INTEREST INCOME | ' | ' | ' | ' |
Service charges on deposit accounts | 590 | 557 | 1,699 | 1,625 |
Trust services income | 963 | 928 | 2,937 | 2,828 |
Gains on loans held for sale | 4,162 | 6,161 | 12,538 | 15,088 |
Gains on securities available for sale, net | 23 | 164 | 397 | 452 |
Total other-than-temporary impairment losses | 0 | 0 | 0 | -46 |
Portion of loss recognized in other comprehensive income | 0 | 0 | 0 | 46 |
Net impairment losses | 0 | 0 | 0 | 0 |
Commissions on investment sales | 159 | 117 | 363 | 389 |
Fees on mortgages held for sale | 28 | 37 | 103 | 143 |
Bank owned life insurance | 125 | 118 | 367 | 363 |
Other operating income | 78 | 236 | 732 | 585 |
Total non-interest income | 6,128 | 8,318 | 19,136 | 21,473 |
NON-INTEREST EXPENSE | ' | ' | ' | ' |
Salaries and employee benefits | 7,750 | 7,276 | 23,242 | 22,139 |
Net occupancy and equipment expense | 1,820 | 1,732 | 5,412 | 5,265 |
Advertising | 318 | 652 | 1,021 | 1,399 |
Computer operations | 456 | 322 | 1,375 | 1,101 |
Other real estate owned | 416 | 1,506 | 1,377 | 2,666 |
Other taxes | 186 | 203 | 565 | 611 |
Federal deposit insurance expense | 149 | 262 | 683 | 781 |
Other operating expenses | 2,210 | 1,883 | 6,666 | 6,501 |
Total non-interest expense | 13,305 | 13,836 | 40,341 | 40,463 |
Income before income taxes | 2,140 | 3,064 | 6,892 | 7,500 |
Income tax expense | 491 | 565 | 1,628 | 1,578 |
NET INCOME | 1,649 | 2,499 | 5,264 | 5,922 |
Net income attributable to non-controlling interest | -38 | -785 | -233 | -856 |
Net income attributable to Middleburg Financial Corporation | $1,611 | $1,714 | $5,031 | $5,066 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.23 | $0.24 | $0.71 | $0.72 |
Diluted (in dollars per share) | $0.23 | $0.24 | $0.71 | $0.72 |
Dividends per common share (in dollars per share) | $0.07 | $0.05 | $0.17 | $0.15 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' | ||
Net income | $1,649 | $2,499 | $5,264 | $5,922 | ||
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' | ||
Unrealized holding gains (losses) arising during the period (net of tax of $902, $673, $2,870 and $1,421 respectively for the periods presented) | -1,748 | 1,307 | -5,572 | 2,758 | ||
Reclassification adjustment for gains included in net income (net of tax of $8, $56, $135, and $154 respectively for the periods presented) | -15 | -108 | -262 | -298 | ||
Unrealized gain (loss) on interest rate swap (net of tax of $2, $18, $103, and $63, respectively) | -4 | -35 | 200 | -122 | ||
Total other comprehensive income (loss) | -1,767 | 1,164 | -5,634 | [1] | 2,338 | [1] |
Total comprehensive income (loss) | -118 | 3,663 | -370 | 8,260 | ||
Comprehensive income attributable to non-controlling interest | -38 | -785 | -233 | -856 | ||
Comprehensive income (loss) attributable to Middleburg Financial Corporation | ($156) | $2,878 | ($603) | $7,404 | ||
[1] | All amounts shown are net of applicable income taxes using an income tax rate of 34%. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Unrealized holding gains arising during the period, tax | $902 | $673 | $2,870 | $1,421 |
Reclassification adjustment for gains included in net income, tax | 8 | 56 | 135 | 154 |
Unrealized gain on interest rate swap, tax | $2 | $18 | $103 | $63 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (USD $) | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] | |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | $108,013 | $17,331 | $43,498 | $41,157 | $3,926 | $2,101 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Net income | 5,922 | ' | ' | 5,066 | ' | 856 | |
Other comprehensive income (loss), net of tax | 2,338 | [1] | ' | ' | ' | 2,338 | ' |
Cash dividends declared | -1,055 | ' | ' | -1,055 | ' | ' | |
Vesting of restricted stock awards (12,432 and 21,455 shares in 2012 and 2013, respectively) | 0 | 33 | -33 | ' | ' | ' | |
Repurchase of restricted stock (2,736 and 5,467 shares in 2012 and 2013, respectively) | -43 | -7 | -36 | ' | ' | ' | |
Distributions to non-controlling interest | -59 | ' | ' | ' | ' | -59 | |
Share-based compensation | 317 | ' | 317 | ' | ' | ' | |
Balance at Sep. 30, 2012 | 115,433 | 17,357 | 43,746 | 45,168 | 6,264 | 2,898 | |
Balance at Dec. 31, 2012 | 117,122 | 17,357 | 43,869 | 46,235 | 6,467 | 3,194 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Net income | 5,264 | ' | ' | 5,031 | ' | 233 | |
Other comprehensive income (loss), net of tax | -5,634 | [1] | ' | ' | ' | -5,634 | ' |
Cash dividends declared | -1,203 | ' | ' | -1,203 | ' | ' | |
Exercise of stock options (2,743 shares) | 38 | 7 | 31 | ' | ' | ' | |
Vesting of restricted stock awards (12,432 and 21,455 shares in 2012 and 2013, respectively) | 0 | 53 | -53 | ' | ' | ' | |
Repurchase of restricted stock (2,736 and 5,467 shares in 2012 and 2013, respectively) | -102 | -14 | -88 | ' | ' | ' | |
Distributions to non-controlling interest | -682 | ' | ' | ' | ' | -682 | |
Share-based compensation | 380 | ' | 380 | ' | ' | ' | |
Balance at Sep. 30, 2013 | $115,183 | $17,403 | $44,139 | $50,063 | $833 | $2,745 | |
[1] | All amounts shown are net of applicable income taxes using an income tax rate of 34%. |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Vesting of restricted stock awards (in shares) | 21,455 | 12,432 |
Repurchase of restricted stock (in shares) | 5,467 | 2,736 |
Exercise of stock options (in shares) | 2,743 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities | ' | ' |
Net income | $5,264 | $5,922 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,466 | 1,442 |
Undistributed earnings of affiliate | -202 | -4 |
Provision for (recovery of) loan losses | -1 | 2,156 |
Net gain on securities available for sale | -397 | -452 |
Net loss on disposal of assets | 141 | 8 |
Premium amortization on securities, net | 2,764 | 2,765 |
Origination of loans held for sale | -590,369 | -696,327 |
Proceeds from sales of loans held for sale | 643,166 | 711,428 |
Net gains on mortgages held for sale | -12,538 | -15,088 |
Share-based compensation | 380 | 317 |
Net loss on sale of other real estate owned | 747 | 128 |
Valuation adjustment on other real estate owned | 235 | 1,616 |
Decrease in prepaid FDIC insurance | 3,015 | 727 |
Changes in other assets and liabilities: | ' | ' |
Decrease (increase) in other assets | 129 | -1,081 |
Increase in other liabilities | 2,123 | 696 |
Net cash provided by operating activities | 55,923 | 14,253 |
Cash Flows from Investing Activities | ' | ' |
Proceeds from maturity, principal paydowns and calls of securities available for sale | 70,540 | 71,036 |
Proceeds from sale of securities available for sale | 12,713 | 39,475 |
Purchase of securities available for sale | -103,380 | -109,228 |
Purchase of restricted stock | -15 | 352 |
Purchases of bank premises and equipment | -1,273 | -541 |
Net increase in loans | -9,946 | -31,091 |
Proceeds from sale of other real estate owned | 6,806 | 2,126 |
Net cash used in investing activities | -24,555 | -27,871 |
Cash Flows from Financing Activities | ' | ' |
Net (decrease) increase in non-interest-bearing and interest-bearing demand deposits and savings accounts | -3,849 | 85,328 |
Net (decrease) in time deposits | -19,485 | -30,750 |
Increase in securities sold under agreements to repurchase | 1,030 | 1,081 |
Decrease in short-term borrowings | -6,422 | -10,674 |
Increase (decrease) in FHLB borrowings | 7,088 | -10,000 |
Distributions to non-controlling interest | -233 | -59 |
Payment of dividends on common stock | -1,203 | -1,055 |
Issuance of common stock | 38 | 0 |
Repurchase of common stock | -102 | 0 |
Net cash (used in) provided by financing activities | -23,138 | 33,871 |
Increase in cash and and cash equivalents | 8,230 | 20,253 |
Cash and Cash Equivalents | ' | ' |
Beginning | 54,415 | 51,270 |
Ending | 62,645 | 71,523 |
Cash payments for: | ' | ' |
Interest | 5,189 | 7,080 |
Income taxes | 0 | 1,850 |
Supplemental Disclosure of Non-cash Transactions | ' | ' |
Unrealized gain (loss) on securities available for sale | -8,839 | 3,727 |
Change in market value of interest rate swap | 303 | -185 |
Transfer of loans to other real estate owned | 2,389 | 7,431 |
Loans originated from sale of other real estate owned | $0 | $149 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
General | ' |
General | |
In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position at September 30, 2013 and December 31, 2012, the results of operations and comprehensive income (loss) for the three and nine months ended September 30, 2013 and 2012, and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2013 and 2012, in accordance with accounting principles generally accepted in the United States of America. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”) of Middleburg Financial Corporation (the “Company”). The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
In preparing these financial statements, management has evaluated subsequent events and transactions for potential recognition or disclosure through the date these financial statements were issued. Management has concluded there were no additional material subsequent events to be disclosed. | |
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform to the 2013 presentation. The amounts of these items are not considered to be material variations from the original classifications and presentations. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
Share–Based Compensation | |||||||||||
As of September 30, 2013, the Company sponsored one share-based compensation plan (the 2006 Equity Compensation Plan), which provides for the granting of stock options, stock appreciation rights, stock awards, performance share awards, incentive awards and stock units. The 2006 Equity Compensation Plan was approved by the Company’s shareholders at the Annual Meeting held on April 26, 2006 and has succeeded the Company’s 1997 Stock Incentive Plan. The 2006 Equity Compensation plan was amended by the Company's shareholders at the Annual Meeting held on May 1, 2013 to increase the total number of shares which may be awarded. Under the plan, the Company may grant share-based compensation to its directors, officers, employees and other persons the Company determines have contributed to the profits or growth of the Company. The Company may grant awards of up to 430,000 shares of common stock under the 2006 Equity Compensation Plan as amended. | |||||||||||
The Company recognized $380,000 of share-based compensation expenses for the nine months ended September 30, 2013. | |||||||||||
The following table summarizes stock options awarded under the 2006 Equity Compensation Plan and remaining unexercised options under the 1997 Stock Incentive Plan at the end of the reporting period. | |||||||||||
September 30, 2013 | |||||||||||
Shares | Weighted | Aggregate | |||||||||
Average | Intrinsic | ||||||||||
Exercise | Value | ||||||||||
Price | |||||||||||
Outstanding at beginning of year | 82,171 | $ | 17.32 | ||||||||
Granted | — | — | |||||||||
Exercised | (2,743 | ) | 14 | ||||||||
Forfeited | (16,000 | ) | 22 | ||||||||
Outstanding at end of period | 63,428 | $ | 16.29 | $ | 182,000 | ||||||
As of the end of the reporting period, 63,428 options were vested and exercisable representing 6,000 shares issued under the original 1997 plan and 57,428 vested options under the 2006 Plan. As of September 30, 2013, no outstanding options were unvested. | |||||||||||
The weighted average remaining contractual term for options outstanding and exercisable at September 30, 2013 was 5.01 years. As of September 30, 2013, all compensation expense related to stock option awards has been recognized. The Aggregate Intrinsic Value above represents the difference between the market value of the stock at the end of the period and the weighted average exercise price of the options at the end of the period. | |||||||||||
The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan at the end of the reportable period. | |||||||||||
September 30, 2013 | |||||||||||
Shares | Weighted | Aggregate | |||||||||
Average | Intrinsic | ||||||||||
Grant-Date | Value | ||||||||||
Fair Value | |||||||||||
Outstanding at beginning of year | 120,455 | $ | 15.66 | ||||||||
Granted | 32,500 | 17.96 | |||||||||
Vested | (21,455 | ) | (14.72 | ) | |||||||
Forfeited | (3,750 | ) | (16.85 | ) | |||||||
Non-vested at end of period | 127,750 | $ | 16.36 | $ | 2,463,000 | ||||||
The weighted average remaining contractual term for non-vested restricted stock at September 30, 2013 was 4.07years. As of September 30, 2013, there was approximately $1.6 million of total unrecognized compensation expense related to non-vested restricted stock awards under the 2006 Equity Compensation Plan. |
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Amortized costs and fair values of securities available for sale at September 30, 2013 are summarized as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,360 | $ | 349 | $ | (244 | ) | $ | 21,465 | ||||||||||||||||
Obligations of states and political subdivisions | 77,788 | 1,483 | (3,167 | ) | 76,104 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 158,204 | 3,864 | (1,013 | ) | 161,055 | ||||||||||||||||||||
Non-agency | 18,113 | 151 | (141 | ) | 18,123 | ||||||||||||||||||||
Other asset backed securities | 35,728 | 659 | (150 | ) | 36,237 | ||||||||||||||||||||
Corporate preferred stock | 68 | 5 | — | 73 | |||||||||||||||||||||
Corporate securities | 15,695 | 32 | (406 | ) | 15,321 | ||||||||||||||||||||
Total | $ | 326,956 | $ | 6,543 | $ | (5,121 | ) | $ | 328,378 | ||||||||||||||||
Amortized costs and fair values of securities available for sale at December 31, 2012 are summarized as follows: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 15,391 | $ | 459 | $ | (28 | ) | $ | 15,822 | ||||||||||||||||
Obligations of states and political subdivisions | 74,485 | 3,920 | (105 | ) | 78,300 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 161,564 | 5,659 | (280 | ) | 166,943 | ||||||||||||||||||||
Non-agency | 15,310 | 287 | (18 | ) | 15,579 | ||||||||||||||||||||
Other asset backed securities | 33,648 | 1,079 | (85 | ) | 34,642 | ||||||||||||||||||||
Corporate preferred stock | 68 | — | (6 | ) | 62 | ||||||||||||||||||||
Corporate securities | 8,730 | 12 | (633 | ) | 8,109 | ||||||||||||||||||||
Total | $ | 309,196 | $ | 11,416 | $ | (1,155 | ) | $ | 319,457 | ||||||||||||||||
The amortized cost and fair value of securities available for sale as of September 30, 2013, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed, other asset-backed, and corporate securities because the mortgages, loans, and securities underlying the securities may be called or repaid without any penalties. Therefore, these securities are not included in the maturity categories in the following maturity summary. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | 2,520 | $ | 2,555 | |||||||||||||||||||||
Due after one year through five years | 38,469 | 39,035 | |||||||||||||||||||||||
Due after one year through ten years | 29,434 | 28,617 | |||||||||||||||||||||||
Due after ten years | 44,420 | 42,683 | |||||||||||||||||||||||
Mortgage-backed securities | 176,317 | 179,178 | |||||||||||||||||||||||
Other asset backed securities | 35,728 | 36,237 | |||||||||||||||||||||||
Corporate preferred stock | 68 | 73 | |||||||||||||||||||||||
Total | $ | 326,956 | $ | 328,378 | |||||||||||||||||||||
Proceeds from the sale of securities during the nine months ended September 30, 2013 were $12.7 million and net gains of $397,000 were realized on those sales. The tax expense applicable to the net realized gains amounted to $135,000. Additionally, no loss on securities with other than temporary impairment was recognized during the nine months ended September 30, 2013. | |||||||||||||||||||||||||
The carrying value of securities pledged to qualify for fiduciary powers, to secure public monies and for other purposes as required by law amounted to $104.5 million at September 30, 2013. | |||||||||||||||||||||||||
At September 30, 2013, investments in an unrealized loss position that were temporarily impaired are as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 11,019 | $ | (244 | ) | $ | 82 | $ | — | $ | 11,101 | $ | (244 | ) | |||||||||||
Obligations of states and | |||||||||||||||||||||||||
political subdivisions | 29,161 | (3,129 | ) | 847 | (38 | ) | 30,008 | (3,167 | ) | ||||||||||||||||
Mortgage backed securities: | |||||||||||||||||||||||||
Agency | 37,619 | (878 | ) | 5,256 | (135 | ) | 42,875 | (1,013 | ) | ||||||||||||||||
Non-agency | 3,938 | (81 | ) | 1,354 | (60 | ) | 5,292 | (141 | ) | ||||||||||||||||
Other asset backed securities | 1,592 | (42 | ) | 2,284 | (108 | ) | 3,876 | (150 | ) | ||||||||||||||||
Corporate securities | 5,656 | (167 | ) | 4,261 | (239 | ) | 9,917 | (406 | ) | ||||||||||||||||
Total | $ | 88,985 | $ | (4,541 | ) | $ | 14,084 | $ | (580 | ) | $ | 103,069 | $ | (5,121 | ) | ||||||||||
At December 31, 2012, investments in an unrealized loss position that were temporarily impaired are as follows: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 3,850 | $ | (28 | ) | $ | 16 | $ | — | $ | 3,866 | $ | (28 | ) | |||||||||||
Obligations of states and | |||||||||||||||||||||||||
political subdivisions | 6,966 | (105 | ) | — | — | 6,966 | (105 | ) | |||||||||||||||||
Mortgage backed securities: | |||||||||||||||||||||||||
Agency | 24,344 | (234 | ) | 1,241 | (46 | ) | 25,585 | (280 | ) | ||||||||||||||||
Non-agency | 3,295 | (18 | ) | — | — | 3,295 | (18 | ) | |||||||||||||||||
Other asset backed securities | 2,791 | (57 | ) | 1,418 | (28 | ) | 4,209 | (85 | ) | ||||||||||||||||
Corporate preferred stock | — | — | 33 | (6 | ) | 33 | (6 | ) | |||||||||||||||||
Corporate securities | — | — | 6,867 | (633 | ) | 6,867 | (633 | ) | |||||||||||||||||
Total | $ | 41,246 | $ | (442 | ) | $ | 9,575 | $ | (713 | ) | $ | 50,821 | $ | (1,155 | ) | ||||||||||
A total of 117 securities were identified by the Company as temporarily impaired at September 30, 2013. Of the 117 securities, 116 were investment grade and 1 was speculative grade. Agency, non-agency mortgage-backed securities, municipal and corporate debt securities make up the majority of temporarily impaired securities at September 30, 2013. The speculative grade security was a municipal bond. During the nine months ended September 30, 2013, the municipal bond sector, which is included in the Company's obligations of states and political subdivisions category of securities, and securities of U.S. government agencies and corporations experienced falling securities prices as improvement in select U.S. economic indicators and statements made by certain Federal Reserve officials raised concerns that the Federal Reserve would reduce its efforts to stimulate economic recovery through its bond-buying program known as "quantitative easing." Interest rates rose during this period, causing corresponding unrealized losses on the Company's portfolio of securities of U.S. government agencies and corporations and obligations of states and political subdivisions. Although the Company has the ability to hold these securities until the temporary loss is recovered, decisions by management may necessitate a sale before the loss is fully recovered. No such sales are anticipated or required as of September 30, 2013. Investment decisions reflect the strategic asset/liability objectives of the Company. | |||||||||||||||||||||||||
Trust preferred securities | |||||||||||||||||||||||||
As of September 30, 2013, the Company held no trust preferred securities in its investment portfolio. | |||||||||||||||||||||||||
The Company previously held trust preferred securities that were identified as other-than-temporarily impaired. These securities were sold during the second quarter of 2012 with a recognized net loss of approximately $142,000. Additionally, these securities incurred cumulative other-than-temporary credit losses recognized in prior period earnings of approximately $2.4 million through December 31, 2011. | |||||||||||||||||||||||||
The Company also previously owned one trust preferred security that was not considered other-than-temporarily impaired while held in its investment portfolio. This security was sold during the third quarter of 2012 with a recognized net loss of approximately $149,000. No credit losses were recognized by the Company for this security. | |||||||||||||||||||||||||
Other-than-temporary impairment losses | |||||||||||||||||||||||||
At September 30, 2013, the Company concluded that no adverse changes in cash flows occurred during the quarter and did not consider any portfolio securities to be other-than-temporarily impaired. Based on this analysis and because the Company does not intend to sell securities prior to maturity and it is more likely than not that the Company will not be required to sell any securities before recovery of amortized cost basis, which may be at maturity, the Company does not consider the investments in these assets to be other than temporarily impaired at September 30, 2013. However, there is a risk that the Company’s continuing reviews could result in recognition of other-than-temporary impairment charges in the future. During the nine months ended September 30, 2013 and the nine months ended September 30, 2012, no credit related impairment losses were recognized by the Company. |
Loan_Portfolio
Loan Portfolio | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Loan Portfolio | ' | |||||||||||||||||||||||||||
Loan Portfolio | ||||||||||||||||||||||||||||
The Company segregates its loan portfolio into three primary loan segments: Real Estate Loans, Commercial Loans, and Consumer Loans. Real estate loans are further segregated into the following classes: construction loans, loans secured by farmland, loans secured by 1-4 family residential real estate, and other real estate loans. Other real estate loans include commercial real estate loans. The consolidated loan portfolio was composed of the following on the dates indicated: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Outstanding | Percent of | Outstanding | Percent of | |||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 37,155 | 5.2 | % | $ | 50,218 | 7.1 | % | ||||||||||||||||||||
Secured by farmland | 11,504 | 1.6 | % | 11,876 | 1.7 | % | ||||||||||||||||||||||
Secured by 1-4 family residential | 269,986 | 37.7 | % | 260,620 | 36.7 | % | ||||||||||||||||||||||
Other real estate loans | 261,095 | 36.5 | % | 254,930 | 35.9 | % | ||||||||||||||||||||||
Commercial loans | 123,285 | 17.2 | % | 118,573 | 16.8 | % | ||||||||||||||||||||||
Consumer loans | 13,081 | 1.8 | % | 13,260 | 1.8 | % | ||||||||||||||||||||||
716,106 | 100 | % | 709,477 | 100 | % | |||||||||||||||||||||||
Less allowance for loan losses | 13,382 | 14,311 | ||||||||||||||||||||||||||
Net loans | $ | 702,724 | $ | 695,166 | ||||||||||||||||||||||||
Loans presented in the table above exclude loans held for sale. The Company had $41.9 million in mortgages held for sale at September 30, 2013 and $82.1 million at December 31, 2012. | ||||||||||||||||||||||||||||
The following table presents a contractual aging of the recorded investment in past due loans by class of loans as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Current | Total | |||||||||||||||||||||||
Past Due | Past Due | Or Greater | Due | Loans | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 174 | $ | — | $ | 935 | $ | 1,109 | $ | 36,046 | $ | 37,155 | ||||||||||||||||
Secured by farmland | — | — | — | — | 11,504 | 11,504 | ||||||||||||||||||||||
Secured by 1-4 family residential | 940 | 396 | 1,604 | 2,940 | 267,046 | 269,986 | ||||||||||||||||||||||
Other real estate loans | 576 | — | 4,068 | 4,644 | 256,451 | 261,095 | ||||||||||||||||||||||
Commercial loans | 118 | — | 55 | 173 | 123,112 | 123,285 | ||||||||||||||||||||||
Consumer loans | 7 | 9 | 38 | 54 | 13,027 | 13,081 | ||||||||||||||||||||||
Total | $ | 1,815 | $ | 405 | $ | 6,700 | $ | 8,920 | $ | 707,186 | $ | 716,106 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Current | Total | |||||||||||||||||||||||
Past Due | Past Due | Or Greater | Due | Loans | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | — | $ | 108 | $ | 2,043 | $ | 2,151 | $ | 48,067 | $ | 50,218 | ||||||||||||||||
Secured by farmland | 415 | — | — | 415 | 11,461 | 11,876 | ||||||||||||||||||||||
Secured by 1-4 family residential | 1,625 | 568 | 1,910 | 4,103 | 256,517 | 260,620 | ||||||||||||||||||||||
Other real estate loans | 197 | 361 | 6,112 | 6,670 | 248,260 | 254,930 | ||||||||||||||||||||||
Commercial loans | — | 44 | 144 | 188 | 118,385 | 118,573 | ||||||||||||||||||||||
Consumer loans | 27 | 10 | 32 | 69 | 13,191 | 13,260 | ||||||||||||||||||||||
Total | $ | 2,264 | $ | 1,091 | $ | 10,241 | $ | 13,596 | $ | 695,881 | $ | 709,477 | ||||||||||||||||
The following table presents the recorded investment in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Non-accrual | Past due 90 | Non-accrual | Past due 90 | |||||||||||||||||||||||||
days or more | days or more | |||||||||||||||||||||||||||
and still accruing | and still accruing | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 2,629 | $ | 400 | $ | 2,861 | $ | 780 | ||||||||||||||||||||
Secured by 1-4 family residential | 9,768 | 227 | 8,761 | 228 | ||||||||||||||||||||||||
Other real estate loans | 6,236 | — | 7,866 | — | ||||||||||||||||||||||||
Commercial loans | 1,862 | — | 2,146 | 34 | ||||||||||||||||||||||||
Consumer loans | 30 | 9 | 30 | 2 | ||||||||||||||||||||||||
Total | $ | 20,525 | $ | 636 | $ | 21,664 | $ | 1,044 | ||||||||||||||||||||
If interest on non-accrual loans had been accrued, such income would have approximated $839,000 for the nine months ended September 30, 2013 and $1.35 million for the year ended December 31, 2012. | ||||||||||||||||||||||||||||
The Company utilizes an internal asset classification system as a means of measuring and monitoring credit risk in the loan portfolio. Under the Company’s classification system, problem and potential problem loans are classified as “Special Mention”, “Substandard”, “Doubtful” and “Loss”. | ||||||||||||||||||||||||||||
Special Mention: Loans classified as special mention have potential weaknesses that deserve management’s close attention. If left uncorrected, the potential weaknesses may result in the deterioration of the repayment prospects for the credit. | ||||||||||||||||||||||||||||
Substandard: Loans classified as substandard have a well-defined weakness that jeopardizes the liquidation of the debt. Either the paying capacity of the borrower or the value of the collateral may be inadequate to protect the Company from potential losses. | ||||||||||||||||||||||||||||
Doubtful: Loans classified as doubtful have a very high possibility of loss. However, because of important and reasonably specific pending factors, classification as a loss is deferred until a more exact status can be determined. | ||||||||||||||||||||||||||||
Loss: Loans are classified as loss when they are deemed uncollectible and are charged off immediately. | ||||||||||||||||||||||||||||
The following tables present a summary of loan classifications by class of loan as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Pass | $ | 31,061 | $ | 2,994 | $ | 249,447 | $ | 236,543 | $ | 119,731 | $ | 12,980 | $ | 652,756 | ||||||||||||||
Special Mention | 2,363 | 7,903 | 2,488 | 12,291 | 951 | 12 | 26,008 | |||||||||||||||||||||
Substandard | 3,171 | 607 | 16,053 | 12,261 | 2,489 | 59 | 34,640 | |||||||||||||||||||||
Doubtful | 560 | — | 1,998 | — | 114 | 30 | 2,702 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 37,155 | $ | 11,504 | $ | 269,986 | $ | 261,095 | $ | 123,285 | $ | 13,081 | $ | 716,106 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Pass | $ | 29,741 | $ | 11,068 | $ | 237,121 | $ | 228,052 | $ | 112,298 | $ | 13,134 | $ | 631,414 | ||||||||||||||
Special Mention | 15,540 | 199 | 3,767 | 12,949 | 3,332 | 47 | 35,834 | |||||||||||||||||||||
Substandard | 3,902 | 609 | 18,333 | 12,887 | 2,831 | 49 | 38,611 | |||||||||||||||||||||
Doubtful | 1,035 | — | 1,399 | 1,042 | 112 | 30 | 3,618 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
The following table presents loans identified as impaired by class of loan as of and for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,910 | $ | 2,187 | $ | — | $ | 1,927 | $ | 13 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 4,363 | 4,840 | — | 4,664 | 6 | |||||||||||||||||||||||
Other real estate loans | 4,347 | 4,581 | — | 4,421 | 111 | |||||||||||||||||||||||
Commercial loans | 2,132 | 2,139 | — | 2,275 | 19 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | 12,752 | 13,747 | — | 13,287 | 149 | |||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 987 | 1,037 | 508 | 1,016 | — | |||||||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 6,477 | 6,707 | 2,904 | 6,644 | 51 | |||||||||||||||||||||||
Other real estate loans | 4,995 | 5,288 | 830 | 5,077 | 71 | |||||||||||||||||||||||
Commercial loans | 373 | 403 | 285 | 408 | 10 | |||||||||||||||||||||||
Consumer loans | 30 | 30 | 30 | 30 | — | |||||||||||||||||||||||
Total with a related allowance | 12,862 | 13,465 | 4,557 | 13,175 | 132 | |||||||||||||||||||||||
Total | $ | 25,614 | $ | 27,212 | $ | 4,557 | $ | 26,462 | $ | 281 | ||||||||||||||||||
The following table presents loans identified as impaired by class of loan as of and for the year ended December 31, 2012: | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,819 | $ | 2,370 | $ | — | $ | 2,543 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,248 | 3,667 | — | 3,712 | 50 | |||||||||||||||||||||||
Other real estate loans | 3,135 | 3,178 | — | 3,141 | 91 | |||||||||||||||||||||||
Commercial loans | 1,947 | 1,947 | — | 1,924 | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | 10,149 | 11,162 | — | 11,320 | 141 | |||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 1,150 | 2,250 | 166 | 1,685 | — | |||||||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 7,544 | 8,203 | 2,724 | 7,842 | 65 | |||||||||||||||||||||||
Other real estate loans | 7,505 | 7,605 | 1,045 | 7,691 | 73 | |||||||||||||||||||||||
Commercial loans | 417 | 464 | 338 | 446 | 14 | |||||||||||||||||||||||
Consumer loans | 30 | 30 | 30 | 30 | — | |||||||||||||||||||||||
Total with a related allowance | 16,646 | 18,552 | 4,303 | 17,694 | 152 | |||||||||||||||||||||||
Total | $ | 26,795 | $ | 29,714 | $ | 4,303 | $ | 29,014 | $ | 293 | ||||||||||||||||||
The “Recorded Investment” amounts in the tables above represent the outstanding principal balance on each loan represented in the tables plus any accrued interest receivable on such loans. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the tables plus any amounts that have been charged off on each loan. | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||||||
Included in certain loan categories in the impaired loans table above are troubled debt restructurings (“TDRs”) that were classified as impaired. The total balance of TDRs at September 30, 2013 was $15.8 million of which $11.0 million were included in the Company’s non-accrual loan totals at that date and $4.8 million represented loans performing as agreed according to the restructured terms. The total amount of TDRs at September 30, 2013 represents an increase of $3.8 million or 31.7% from the amount at December 31, 2012 of $12.0 million. The amount of the valuation allowance related to total TDRs was $2.6 million and $2.0 million as of September 30, 2013 and December 31, 2012 respectively. | ||||||||||||||||||||||||||||
The $11.0 million in nonaccrual TDRs as of September 30, 2013 is comprised of $651,000 in real estate construction loans, $5.4 million in 1-4 family real estate loans, $4.9 million in other real estate loans, and $80,000 in commercial loans. The $4.8 million in TDRs which were performing as agreed under the restructured terms as of September 30, 2013 is comprised of $1.1 million in 1-4 family real estate loans, $3.1 million in other real estate loans and $642,000 in commercial loans. The Company considers all loans classified as TDRs to be impaired. | ||||||||||||||||||||||||||||
The following tables present by class of loan, information related to loans modified in a TDR during the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||
Loans modified as TDR's | ||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 1 | $ | 45 | $ | 41 | |||||||||||||||||||||||
Secured by farmland | — | — | — | |||||||||||||||||||||||||
Secured by 1-4 family residential | 6 | 2,300 | 1,986 | |||||||||||||||||||||||||
Other real estate loans | 3 | 701 | 676 | |||||||||||||||||||||||||
Total real estate loans | 10 | 3,046 | 2,703 | |||||||||||||||||||||||||
Commercial loans | 1 | 50 | 49 | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Total | 11 | $ | 3,096 | $ | 2,752 | |||||||||||||||||||||||
Loans modified as TDR's | ||||||||||||||||||||||||||||
For the nine months ended | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 2 | $ | 557 | $ | 514 | |||||||||||||||||||||||
Secured by farmland | — | — | — | |||||||||||||||||||||||||
Secured by 1-4 family residential | 11 | 3,549 | 3,227 | |||||||||||||||||||||||||
Other real estate loans | 5 | 869 | 824 | |||||||||||||||||||||||||
Total real estate loans | 18 | 4,975 | 4,565 | |||||||||||||||||||||||||
Commercial loans | 2 | 517 | 515 | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Total | 20 | $ | 5,492 | $ | 5,080 | |||||||||||||||||||||||
During the three months ended September 30, 2013, the Company modified eleven loans that were considered to be TDRs and are summarized in the above table. The interest rates were reduced on ten of the loans and maturity dates were extended on nine of the loans. | ||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, the Company modified twenty loans that were considered to be TDRs and are summarized in the above table. The interest rates were reduced on fifteen of the loans and maturity dates were extended on fifteen of the loans. | ||||||||||||||||||||||||||||
During the nine months ended September 30, 2013, the Company identified ten loans with an aggregate recorded investment of $3.8 million as TDRs for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying these loans as TDRs, the Company evaluated them for impairment and determined, based on a current evaluation, that these loans required an allowance for loan losses balance of $1.1 million at September 30, 2013. | ||||||||||||||||||||||||||||
One loan modified as a TDR in the past twelve months subsequently defaulted (i.e., 90 days or more past due following a restructuring) during the nine months ended September 30, 2013. The recorded investment of this loan was $712,000 as is classified as a 1-4 family residential loan. | ||||||||||||||||||||||||||||
Management considers troubled debt restructurings and subsequent defaults in restructured loans in the determination of the adequacy of the Company’s allowance for loan losses. When identified as a TDR, a loan is evaluated for potential loss based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the estimated fair value of the collateral, less any selling costs if the loan is collateral dependent. Loans identified as TDRs frequently are on non-accrual status at the time of the restructuring and, in some cases, partial charge-offs may have already been taken against the loan and a specific allowance may have already been established for the loan. As a result of any modification as a TDR, the specific reserve associated with the loan may be increased. Additionally, loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future defaults. If loans modified in a TDR subsequently default, the Company evaluates the loan for possible further impairment. As a result, any specific allowance may be increased, adjustments may be made in the allocation of the total allowance balance, or partial charge-offs may be taken to further write-down the carrying value of the loan. |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
The Company recorded a provision for loan losses of $3,000 for the three months ended September 30, 2013, compared to a provision for loan losses of $635,000 for the three months ended September 30, 2012. The Company recorded a recovery of loan losses of $1,000 for the nine months ended September 30, 2013, compared to a provision for loan losses of $2.2 million for the nine months ended September 30, 2012. Non-accruals as a percentage of total loans have decreased from 3.05% as of December 31, 2012 to 2.87% in the quarter ended September 30, 2013. The reserve for loan losses ratio decreased to 1.87% of portfolio loans at September 30, 2013 from 2.02% at December 31, 2012. | ||||||||||||||||||||||||||||
The following tables present a rollforward of the changes in the allowance for loan losses balance by class of loan, the balances in the allowance for loan losses and the recorded investment in loans by class of loan and, for the ending loan balances, based on impairment evaluation method as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balances as of December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Charge-offs | (194 | ) | — | (783 | ) | (97 | ) | (38 | ) | (28 | ) | (1,140 | ) | |||||||||||||||
Recoveries | 47 | — | 109 | 30 | 7 | 19 | 212 | |||||||||||||||||||||
Provision (Recovery) | 257 | (26 | ) | 459 | (434 | ) | (277 | ) | 20 | (1 | ) | |||||||||||||||||
Balances as of September 30 2013 | $ | 1,368 | $ | 109 | $ | 6,061 | $ | 3,847 | $ | 1,790 | $ | 207 | $ | 13,382 | ||||||||||||||
Ending allowance balance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 508 | $ | — | $ | 2,904 | $ | 830 | $ | 285 | $ | 30 | $ | 4,557 | ||||||||||||||
Collectively evaluated for impairment | 860 | 109 | 3,157 | 3,017 | 1,505 | 177 | 8,825 | |||||||||||||||||||||
Total ending allowance balances | $ | 1,368 | $ | 109 | $ | 6,061 | $ | 3,847 | $ | 1,790 | $ | 207 | $ | 13,382 | ||||||||||||||
Ending loan recorded investment balances: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,897 | $ | — | $ | 10,840 | $ | 9,342 | $ | 2,505 | $ | 30 | $ | 25,614 | ||||||||||||||
Collectively evaluated for impairment | 34,258 | 11,504 | 259,146 | 251,753 | 120,780 | 13,051 | 690,492 | |||||||||||||||||||||
Total ending loan balances | $ | 37,155 | $ | 11,504 | $ | 269,986 | $ | 261,095 | $ | 123,285 | $ | 13,081 | $ | 716,106 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balances at December 31, 2011 | $ | 897 | $ | 110 | $ | 7,465 | $ | 4,385 | $ | 1,621 | $ | 145 | $ | 14,623 | ||||||||||||||
Charge-offs | (2,152 | ) | — | (893 | ) | (760 | ) | (394 | ) | (72 | ) | (4,271 | ) | |||||||||||||||
Recoveries | 2 | — | 388 | 86 | 12 | 33 | 521 | |||||||||||||||||||||
Provision | 2,511 | 25 | (684 | ) | 637 | 859 | 90 | 3,438 | ||||||||||||||||||||
Balances at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending allowance balance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | — | $ | 2,724 | $ | 1,045 | $ | 338 | $ | 30 | $ | 4,303 | ||||||||||||||
Collectively evaluated for impairment | 1,092 | 135 | 3,552 | 3,303 | 1,760 | 166 | 10,008 | |||||||||||||||||||||
Total ending allowance balances | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending loan recorded investment balances: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | — | $ | 10,792 | $ | 10,640 | $ | 2,364 | $ | 30 | $ | 26,795 | ||||||||||||||
Collectively evaluated for impairment | 47,249 | 11,876 | 249,828 | 244,290 | 116,209 | 13,230 | 682,682 | |||||||||||||||||||||
Total ending loan balances | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ||||||||||||||
The following table shows the weighted average number of common shares used in computing earnings per share and the effect on the weighted average number of shares of potential dilutive common stock. Potential dilutive common stock has no effect on income available to common shareholders. | ||||||||||||||
Three months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Weighted Average Shares | Per share | Weighted Average Shares | Per share | |||||||||||
Amount | Amount | |||||||||||||
Basic earnings per share | 7,080,244 | $ | 0.23 | 7,036,536 | $ | 0.24 | ||||||||
Effect of dilutive securities: | ||||||||||||||
stock options and grants | 37,964 | — | 15,324 | — | ||||||||||
Diluted earnings per share | 7,118,208 | $ | 0.23 | 7,051,860 | $ | 0.24 | ||||||||
Nine months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Weighted Average Shares | Per share Amount | Weighted Average Shares | Per share Amount | |||||||||||
Basic earnings per share | 7,072,372 | $ | 0.71 | 7,026,663 | $ | 0.72 | ||||||||
Effect of dilutive securities: | ||||||||||||||
stock options and grants | 32,777 | — | 9,987 | $ | — | |||||||||
Diluted earnings per share | 7,105,149 | $ | 0.71 | 7,036,650 | $ | 0.72 | ||||||||
At September 30, 2013 and 2012, stock options, restricted grants and warrants representing approximately 6,000 and 33,000 shares, respectively, were not included in the calculation of earnings per share because they would have been anti-dilutive. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Segment Reporting | ||||||||||||||||||||
The Company operates in a decentralized fashion in three principal business activities: retail banking services; wealth management services; and mortgage banking services. Revenue from retail banking activities consists primarily of interest earned on loans and investment securities and service charges on deposit accounts. | ||||||||||||||||||||
Revenue from the wealth management activities is comprised of fees based upon the market value of the accounts under administration as well as commissions on investment transactions. The wealth management services are conducted by Middleburg Investment Group. | ||||||||||||||||||||
Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process. The Company recognizes gains on the sale of loans as part of other income. The mortgage banking services are conducted by Southern Trust Mortgage, LLC. | ||||||||||||||||||||
Middleburg Bank and the Company have assets in custody with Middleburg Trust Company and accordingly pay Middleburg Trust Company a monthly fee. Middleburg Bank also pays interest to Middleburg Trust Company on deposit accounts with Middleburg Bank. As of September 30, 2013, Southern Trust Mortgage had no balances in interest bearing accounts with Middleburg Bank. Southern Trust Mortgage has an outstanding line of credit of $5.0 million and a participation agreement of $75.0 million for which it pays interest to Middleburg Bank on any outstanding balance. Middleburg Bank provides office space and data processing and accounting services to Southern Trust Mortgage for which it receives rental and fee income. Transactions related to these relationships are eliminated to reach consolidated totals. | ||||||||||||||||||||
The following table presents segment information for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 10,750 | $ | 4 | $ | 520 | $ | (320 | ) | $ | 10,954 | |||||||||
Trust and investment fee income | — | 1,000 | — | (37 | ) | 963 | ||||||||||||||
Other income | 899 | — | 4,358 | (92 | ) | 5,165 | ||||||||||||||
Total operating income | 11,649 | 1,004 | 4,878 | (449 | ) | 17,082 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 1,574 | — | 380 | (320 | ) | 1,634 | ||||||||||||||
Salaries and employee benefits | 4,183 | 393 | 3,174 | — | 7,750 | |||||||||||||||
Provision for loan losses | — | — | 3 | — | 3 | |||||||||||||||
Other | 4,240 | 223 | 1,221 | (129 | ) | 5,555 | ||||||||||||||
Total operating expenses | 9,997 | 616 | 4,778 | (449 | ) | 14,942 | ||||||||||||||
Income before income taxes and non-controlling interest | 1,652 | 388 | 100 | — | 2,140 | |||||||||||||||
Income tax expense | 440 | 51 | — | — | 491 | |||||||||||||||
Net Income | 1,212 | 337 | 100 | — | 1,649 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (38 | ) | — | (38 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,212 | $ | 337 | $ | 62 | $ | — | $ | 1,611 | ||||||||||
Total assets | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | |||||||||
Capital expenditures | $ | 693 | $ | 5 | $ | 115 | $ | — | $ | 813 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||
For the three months ended | ||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 11,262 | $ | 2 | $ | 630 | $ | (487 | ) | $ | 11,407 | |||||||||
Trust and investment fee income | — | 963 | — | (35 | ) | 928 | ||||||||||||||
Other income | 1,164 | — | 6,306 | (80 | ) | 7,390 | ||||||||||||||
Total operating income | 12,426 | 965 | 6,936 | (602 | ) | 19,725 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 2,115 | — | 562 | (487 | ) | 2,190 | ||||||||||||||
Salaries and employee benefits | 3,912 | 358 | 3,006 | — | 7,276 | |||||||||||||||
Provision for (recovery of) loan losses | 642 | — | (7 | ) | — | 635 | ||||||||||||||
Other | 5,221 | 232 | 1,222 | (115 | ) | 6,560 | ||||||||||||||
Total operating expenses | 11,890 | 590 | 4,783 | (602 | ) | 16,661 | ||||||||||||||
Income before income taxes and non-controlling interest | 536 | 375 | 2,153 | — | 3,064 | |||||||||||||||
Income tax expense | 514 | 51 | — | — | 565 | |||||||||||||||
Net Income | 22 | 324 | 2,153 | — | 2,499 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (785 | ) | — | (785 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 22 | $ | 324 | $ | 1,368 | $ | — | $ | 1,714 | ||||||||||
Total assets | $ | 1,209,455 | $ | 12,789 | $ | 104,919 | $ | (91,202 | ) | $ | 1,235,961 | |||||||||
Capital expenditures | $ | 6 | $ | — | $ | — | $ | — | $ | 6 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,193 | $ | 1,867 | $ | — | $ | 6,060 | ||||||||||
The following table presents segment information for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 32,742 | $ | 11 | $ | 1,398 | $ | (993 | ) | $ | 33,158 | |||||||||
Trust and investment fee income | — | 3,052 | — | (115 | ) | 2,937 | ||||||||||||||
Other income | 3,363 | — | 13,161 | (325 | ) | 16,199 | ||||||||||||||
Total operating income | 36,105 | 3,063 | 14,559 | (1,433 | ) | 52,294 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 4,956 | — | 1,099 | (993 | ) | 5,062 | ||||||||||||||
Salaries and employee benefits | 12,485 | 1,623 | 9,134 | — | 23,242 | |||||||||||||||
Provision for (recovery of) loan losses | (9 | ) | — | 8 | — | (1 | ) | |||||||||||||
Other | 12,930 | 910 | 3,699 | (440 | ) | 17,099 | ||||||||||||||
Total operating expenses | 30,362 | 2,533 | 13,940 | (1,433 | ) | 45,402 | ||||||||||||||
Income before income taxes and non-controlling interest | 5,743 | 530 | 619 | — | 6,892 | |||||||||||||||
Income tax expense | 1,403 | 225 | — | — | 1,628 | |||||||||||||||
Net Income | 4,340 | 305 | 619 | — | 5,264 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (233 | ) | — | (233 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 4,340 | $ | 305 | $ | 386 | $ | — | $ | 5,031 | ||||||||||
Total assets | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | |||||||||
Capital expenditures | $ | 1,144 | $ | 5 | $ | 124 | $ | — | $ | 1,273 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||
For the nine months ended | ||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 34,837 | $ | 7 | $ | 2,067 | $ | (1,348 | ) | $ | 35,563 | |||||||||
Trust and investment fee income | — | 2,932 | — | (104 | ) | 2,828 | ||||||||||||||
Other income | 3,351 | — | 15,719 | (425 | ) | 18,645 | ||||||||||||||
Total operating income | 38,188 | 2,939 | 17,786 | (1,877 | ) | 57,036 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 6,606 | — | 1,659 | (1,348 | ) | 6,917 | ||||||||||||||
Salaries and employee benefits | 11,585 | 1,438 | 9,116 | — | 22,139 | |||||||||||||||
Provision for loan losses | 2,127 | — | 29 | — | 2,156 | |||||||||||||||
Other | 13,267 | 874 | 4,712 | (529 | ) | 18,324 | ||||||||||||||
Total operating expenses | 33,585 | 2,312 | 15,516 | (1,877 | ) | 49,536 | ||||||||||||||
Income before income taxes and non-controlling interest | 4,603 | 627 | 2,270 | — | 7,500 | |||||||||||||||
Income tax expense | 1,319 | 259 | — | — | 1,578 | |||||||||||||||
Net Income | 3,284 | 368 | 2,270 | — | 5,922 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (856 | ) | — | (856 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 3,284 | $ | 368 | $ | 1,414 | $ | — | $ | 5,066 | ||||||||||
Total assets | $ | 1,209,455 | $ | 12,789 | $ | 104,919 | $ | (91,202 | ) | $ | 1,235,961 | |||||||||
Capital expenditures | $ | 541 | $ | — | $ | — | $ | — | $ | 541 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,193 | $ | 1,867 | $ | — | $ | 6,060 | ||||||||||
Capital_Purchase_Program
Capital Purchase Program | 9 Months Ended |
Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Capital Purchase Program | ' |
Capital Purchase Program | |
During 2009, the Company participated in the Capital Purchase Program established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008 and issued 22,000 shares of preferred stock to the Treasury as well as a warrant (“the Warrant”) to purchase 208,202 shares of the Company’s common stock at an initial exercise price of $15.85 per share. As a result of the completion of the Company’s public stock offering in August 2009, the number of shares of common stock underlying the Warrant was reduced by one-half to 104,101. On December 23, 2009, the Company redeemed all of the shares of preferred stock issued to the Treasury. During 2011, the Warrant was sold by the U.S. Treasury at public auction and has not been exercised as of September 30, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
The Company adopted ASC 820, Fair Value Measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. ASC 820 clarifies that fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. | ||||||||||||||||||||
ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. The three levels of the fair value hierarchy under ASC 820 based on these two types of inputs are as follows: | ||||||||||||||||||||
Level I: | Quoted prices are available in active markets for identical assets or liabilities as of the reported date. | |||||||||||||||||||
Level II: | Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. | |||||||||||||||||||
Level III: | Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. | |||||||||||||||||||
Measured on recurring basis | ||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: | ||||||||||||||||||||
Securities available for sale | ||||||||||||||||||||
Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level I). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level II). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified as Level III of the valuation hierarchy. | ||||||||||||||||||||
Loans Held for Sale | ||||||||||||||||||||
Loans held for sale are carried at market value. These loans currently consist of 1-4 family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data (Level II). Gains and losses on the sale of loans are recorded within income from mortgage banking activities on the consolidated statements of income. | ||||||||||||||||||||
Derivatives | ||||||||||||||||||||
Derivatives are recorded at fair value on a recurring basis. Third party vendors compile prices from various sources and may determine the fair value of identical or similar instruments by using pricing models that consider observable market data (Level II). | ||||||||||||||||||||
Mortgage Servicing Rights | ||||||||||||||||||||
The Company obtains the fair value of mortgage servicing rights from an independent valuation service. The model used by the independent service to value mortgage servicing rights incorporates inputs and assumptions such as loan characteristics, contractually specified servicing fees, prepayment speeds, delinquency rates, late charges, escrow income, other ancillary revenue, costs to service and other economic factors. Fair value estimates from the model are adjusted for recent market activity, actual experience and, when available, other observable market data (Level II). | ||||||||||||||||||||
The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | ||||||||||||||||||||
U.S. government agencies | $ | 21,465 | $ | — | $ | 21,465 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 76,104 | — | 76,104 | — | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | 161,055 | — | 161,055 | — | ||||||||||||||||
Non-agency | 18,123 | — | 18,123 | — | ||||||||||||||||
Other asset-backed securities | 36,237 | — | 36,237 | — | ||||||||||||||||
Corporate preferred stock | 73 | — | 73 | — | ||||||||||||||||
Corporate securities | 15,321 | — | 14,836 | 485 | ||||||||||||||||
Mortgage interest rate locks | 651 | — | 651 | — | ||||||||||||||||
Loans held for sale | 41,855 | — | 41,855 | — | ||||||||||||||||
Interest rate swaps | 167 | — | 167 | — | ||||||||||||||||
Mortgage servicing rights | 155 | — | 155 | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swaps | $ | 326 | $ | — | $ | 326 | $ | — | ||||||||||||
Mortgage banking hedge instruments | 613 | — | 613 | — | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | ||||||||||||||||||||
U.S. government agencies | $ | 15,822 | $ | — | $ | 15,822 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 78,300 | — | 78,300 | — | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | 166,943 | — | 166,943 | — | ||||||||||||||||
Non-agency | 15,579 | — | 15,579 | — | ||||||||||||||||
Other asset-backed securities | 34,642 | — | 34,642 | — | ||||||||||||||||
Corporate preferred stock | 62 | — | 62 | — | ||||||||||||||||
Corporate securities | 8,109 | — | 8,109 | — | ||||||||||||||||
Loans held for sale | 82,114 | — | 82,114 | — | ||||||||||||||||
Mortgage interest rate locks | 35 | — | 35 | — | ||||||||||||||||
Interest rate swaps | 80 | — | 80 | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swap | $ | 541 | $ | — | $ | 541 | $ | — | ||||||||||||
Mortgage banking hedge instruments | 39 | — | 39 | — | ||||||||||||||||
The following table presents quantitative information as of September 30, 2013 related to Level III fair value measurements for financial assets measured at fair value on a recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | ||||||||||||||||||
Corporate Securities | $ | 485 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | ||||||||||||||||
Measured on nonrecurring basis | ||||||||||||||||||||
Certain financial assets and certain financial liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or impairment of individual assets. | ||||||||||||||||||||
The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: | ||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||
Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan, or the fair value of the underlying collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level II). However, if the collateral is a house or building in the process of construction or if an appraisal of the real estate property is over two years old, then the fair value is considered Level III. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level III). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments as a result of the evaluation process are recorded in the period incurred as provision for loan losses on the consolidated statements of income. | ||||||||||||||||||||
When collateral-dependent loans are performing in accordance with the original terms of their contract, the Company continues to use the appraisal that was done at origination as the basis for the collateral value. When collateral-dependent loans are considered non-performing, they are assessed to determine the next appropriate course of action: either foreclosure or modification with forbearance agreement. The loans would then be re-appraised prior to foreclosure or before a forbearance agreement is executed. Thereafter, collateral for loans under a forbearance agreement may be re-appraised as the circumstances warrant. This process does not vary by loan type. | ||||||||||||||||||||
The Company’s procedure to monitor the value of collateral for collateral-dependent impaired loans between the receipt of an original appraisal and an updated appraisal is to review tax assessment records when they change annually. At the time of any change in tax assessment, an appropriate adjustment is made to the appraised value. Information considered in a determination not to order an updated appraisal includes the availability and reliability of tax assessment records and any significant changes in capitalization rates for income properties since the original appraisal. Other facts and circumstances on a case by case basis may be considered relative to a decision to order or not to order an updated appraisal. If, in the judgment of management, a reliable collateral value estimate cannot be obtained by an alternative method, an updated appraisal would be obtained. | ||||||||||||||||||||
Circumstances that may warrant a re-appraisal for non-performing (impaired) loans might include foreclosure proceedings or a material adverse change in the borrower’s condition or that of the collateral underlying the loan. Examples include bankruptcy filing by the debtor or guarantors, loss of a major tenant in an income property, or a significant increase in capitalization rates for income properties. In some cases, management may decide that an updated appraisal for a non-performing loan is not necessary. In such cases, an estimate of the fair value of the collateral for the loans would be made by management by reference to current tax assessment records, the latest appraised value, and knowledge of collateral value fluctuations in a loan’s market area. If, in the judgment of management, a reliable collateral value estimate cannot be obtained by an alternative method, an updated appraisal would be obtained. | ||||||||||||||||||||
For the purpose of the evaluation of the adequacy of our allowance for loan losses, new appraisals are discounted approximately 10% for selling costs when determining the amount of the specific reserve. Thereafter, for collateral-dependent impaired loans, we consider each loan on a case-by-case basis to determine whether or not the recorded values are appropriate given current market conditions. When warranted, new appraisals are obtained. If an appraisal is less than 12 months old, the only adjustment made to appraised values is the 10% discount for selling costs. If an appraisal is older than 12 months, management will use judgment based on knowledge of current market values and specific facts surrounding any particular property to determine if an additional valuation adjustment may be necessary. | ||||||||||||||||||||
For real estate secured impaired loans, if the Company does not have an adequate appraisal a new one is ordered to determine fair value. An appraisal that would be considered adequate for real estate-secured loans is one that is less than 12 months or one that is more than 12 months old but alternative methods with which to monitor the collateral value exist, such as reference to frequently updated tax assessments. Appraisals that would be considered inadequate for real estate secured loans include appraisals older than 12 months and with a property located in a jurisdiction that does not reassess property values on a regular basis, or with a property to which substantial changes have been made since the last assessment. If the loan is secured by assets other than real estate and an appraisal is neither available nor feasible, the loan is treated as unsecured. | ||||||||||||||||||||
It is the Company’s policy to account for partially charged-off loans consistently both before and after updated appraisals are obtained. Partially charged-off loans are placed in non-accrual status and remain in that status until the borrower has made a minimum of six consecutive monthly payments on a timely basis and there is evidence that the borrower has the ability to repay the balance of the loan plus accrued interest in full. Partially charged-off loans are not automatically returned to accrual status when updated appraisals are obtained. | ||||||||||||||||||||
The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Impaired loans | $ | 8,305 | $ | — | $ | 3,691 | $ | 4,614 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Impaired loans | $ | 12,343 | $ | — | $ | 11,165 | $ | 1,178 | ||||||||||||
Other Real Estate Owned | ||||||||||||||||||||
The value of other real estate owned (“OREO”) is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level II). For other real estate owned properties, the Company’s policy is to obtain “as-is” appraisals on an annual basis as opposed to “as-completed” appraisals. This approach provides current values without regard to completion of any construction or renovation that may be in process on OREO properties. Accordingly, the Company considers the valuations to be Level II valuations even though some properties may be in process of renovation or construction. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability or other factors, then the fair value is considered Level III. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Any subsequent fair value adjustments are recorded in the period incurred and included in other non-interest expense on the consolidated statements of income. | ||||||||||||||||||||
For the purpose of OREO valuations, appraisals are discounted approximately 10% for selling and holding costs and it is the policy of the Company to obtain annual appraisals for properties held in OREO. | ||||||||||||||||||||
The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period. | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Other real estate owned | $ | 4,530 | $ | — | $ | 4,530 | $ | — | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Other real estate owned | $ | 9,929 | $ | — | $ | 7,619 | $ | 2,310 | ||||||||||||
The following table presents quantitative information as of September 30, 2013 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||||||||||
Impaired Loans | $ | 4,614 | Market comparables | Discount applied to market comparables (1) | 10% - 30% (21%) | |||||||||||||||
(1) A discount percentage is applied based on age of independent appraisals, current market conditions, and experience within the local markets. | ||||||||||||||||||||
The following table presents quantitative information as of December 31, 2012 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||||||||||
Impaired Loans | $ | 1,178 | Discounted appraised value | Discount for selling costs and age of appraisals. | 10% - 30% (21%) | |||||||||||||||
Other real estate owned | $ | 2,310 | Discounted appraised value | Discount for selling costs, construction status, and age of appraisals. | 12% (12%) | |||||||||||||||
The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. U.S. generally accepted accounting principles excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. | ||||||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | ||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||
For those cash equivalents, the carrying amount is a reasonable estimate of fair value. | ||||||||||||||||||||
Loans, Net and Loans Held for Sale | ||||||||||||||||||||
For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair value is estimated by discounting future cash flows using current market inputs at which loans with similar terms and qualities would be made to borrowers of similar credit quality. Where quoted market prices were available, primarily for certain residential mortgage loans, such market rates were utilized as estimates for fair value. (See "Impaired Loans" above for a discussion of valuation methodologies for loans considered to be impaired.) | ||||||||||||||||||||
Bank Owned Life Insurance | ||||||||||||||||||||
The carrying amount of bank owned life insurance is a reasonable estimate of fair value. | ||||||||||||||||||||
Accrued Interest Receivable and Payable | ||||||||||||||||||||
The carrying amounts of accrued interest approximate fair values. | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. For all other deposits, the fair value is determined using the discounted cash flow method. The discount rate used is equal to the rate currently offered on similar products. | ||||||||||||||||||||
Securities Sold Under Agreements to Repurchase and Short-Term Borrowings | ||||||||||||||||||||
The carrying amounts approximate fair values. | ||||||||||||||||||||
FHLB Borrowings, Long-Term Borrowings and Subordinated Notes | ||||||||||||||||||||
For variable rate long-term debt, fair values are based on carrying values. For fixed rate debt, fair values are estimated based on observable market prices and discounted cash flow analysis using interest rates for borrowings of similar remaining maturities and characteristics. The fair values of the Company's Subordinated Debentures are estimated using discounted cash flow analysis based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. | ||||||||||||||||||||
Off-Balance-Sheet Financial Instruments | ||||||||||||||||||||
The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of standby letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligations with the counterparties at the reporting date. At September 30, 2013 and December 31, 2012, the fair values of loan commitments and standby letters of credit were deemed immaterial; therefore, they have not been included in the table below. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments as of September 30, 2013 are as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | ||||||||||||||||
Amount | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 62,645 | $ | 62,645 | $ | 62,645 | $ | — | $ | — | ||||||||||
Securities | 328,378 | 328,378 | — | 327,893 | 485 | |||||||||||||||
Loans held for sale | 41,855 | 41,855 | — | 41,855 | — | |||||||||||||||
Net portfolio loans | 702,724 | 716,046 | — | 3,691 | 712,355 | |||||||||||||||
Bank owned life insurance | 16,851 | 16,851 | — | 16,851 | — | |||||||||||||||
Accrued interest receivable | 3,924 | 3,924 | — | 3,924 | — | |||||||||||||||
Mortgage interest rate locks | 651 | 651 | — | 651 | — | |||||||||||||||
Interest rate swaps | 167 | 167 | — | 167 | — | |||||||||||||||
Mortgage servicing rights | 155 | 155 | — | 155 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 958,566 | $ | 961,035 | $ | — | $ | 961,035 | $ | — | ||||||||||
Securities sold under agreements to repurchase | 35,005 | 35,005 | — | 35,005 | — | |||||||||||||||
Short-term borrowings | 5,451 | 5,451 | — | 5,451 | — | |||||||||||||||
FHLB borrowings | 85,000 | 85,862 | — | 85,862 | — | |||||||||||||||
Subordinated notes | 5,155 | 5,207 | — | 5,207 | — | |||||||||||||||
Accrued interest payable | 527 | 527 | — | 527 | — | |||||||||||||||
Interest rate swaps | 326 | 326 | — | 312 | — | |||||||||||||||
Mortgage banking hedge instruments | 613 | 613 | — | 613 | — | |||||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments at December 31, 2012 are as follows: | ||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | ||||||||||||||||
Amount | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 54,415 | $ | 54,415 | $ | 54,415 | $ | — | $ | — | ||||||||||
Securities | 319,457 | 319,457 | — | 319,457 | — | |||||||||||||||
Loans held for sale | 82,114 | 82,114 | — | 82,114 | — | |||||||||||||||
Net portfolio loans | 695,166 | 716,358 | — | 1,178 | 715,180 | |||||||||||||||
Bank owned life insurance | 16,484 | 16,484 | — | 16,484 | — | |||||||||||||||
Accrued interest receivable | 3,974 | 3,974 | — | 3,974 | — | |||||||||||||||
Mortgage interest rate locks | 35 | 35 | — | 35 | — | |||||||||||||||
Interest rate swaps | 80 | 80 | — | 80 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 981,900 | $ | 984,682 | $ | — | $ | 984,682 | $ | — | ||||||||||
Securities sold under agreements to repurchase | 33,975 | 33,975 | — | 33,975 | — | |||||||||||||||
Short-term borrowings | 11,873 | 11,873 | — | 11,873 | — | |||||||||||||||
FHLB borrowings | 72,912 | 78,912 | — | 78,912 | — | |||||||||||||||
Subordinated notes | 5,155 | 5,221 | — | 5,221 | — | |||||||||||||||
Accrued interest payable | 654 | 654 | — | 654 | — | |||||||||||||||
Interest rate swaps | 541 | 541 | — | 541 | — | |||||||||||||||
Mortgage banking hedge instruments | 39 | 39 | — | 39 | — | |||||||||||||||
The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company's financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company's overall interest rate risk. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In December 2011, the FASB issued ASU 2011-11, “Balance Sheet (Topic 210) - Disclosures about Offsetting Assets and Liabilities.” This ASU requires entities to disclose both gross information and net information about both instruments and transactions eligible for offset in the balance sheet and instruments and transactions subject to an agreement similar to a master netting arrangement. An entity is required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In July 2012, the FASB issued ASU 2012-02, “Intangibles - Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment.” The amendments in this ASU apply to all entities that have indefinite-lived intangible assets, other than goodwill, reported in their financial statements. The amendments in this ASU provide an entity with the option to make a qualitative assessment about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset's fair value when testing an indefinite-lived intangible asset for impairment. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In January 2013, the FASB issued ASU 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” The amendments in this ASU clarify the scope for derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements and securities borrowing and securities lending transactions that are either offset or subject to netting arrangements. An entity is required to apply the amendments for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. | |
In February 2013, the FASB issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The amendments in this ASU require an entity to present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income. In addition, the amendments require a cross-reference to other disclosures currently required for other reclassification items to be reclassified directly to net income in their entirety in the same reporting period. Companies should apply these amendments for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. The Company has included the required disclosures from ASU 2013-02 in the consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-10, “Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this ASU permit the Fed Funds Effective Swap Rate (also referred to as the Overnight Index Swap Rate) to be used as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815, in addition to interest rates on direct Treasury obligations of the U.S. government and the London Interbank Offered Rate. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments apply to all entities that elect to apply hedge accounting of the benchmark interest rate under Topic 815. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of the new guidance did not have a material impact on the Company's consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
The following table presents information on changes in each component of accumulated other comprehensive income and the ending balances for the periods indicated: | ||||||||||||
Accumulated Other Comprehensive Income (1) | ||||||||||||
(in thousands) | ||||||||||||
Net Unrealized Gains (Losses) on Securities | Derivatives | Total | ||||||||||
Balance December 31, 2011 | $ | 4,133 | $ | (207 | ) | $ | 3,926 | |||||
Other comprehensive income (loss) before reclassifications | 2,758 | (122 | ) | 2,636 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (298 | ) | — | (298 | ) | |||||||
Change during period | 2,460 | (122 | ) | 2,338 | ||||||||
Balance September 30, 2012 | $ | 6,593 | $ | (329 | ) | $ | 6,264 | |||||
Balance December 31, 2012 | $ | 6,771 | $ | (304 | ) | $ | 6,467 | |||||
Other comprehensive income (loss) before reclassifications | (5,572 | ) | 200 | (5,372 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (262 | ) | — | (262 | ) | |||||||
Change during period | (5,834 | ) | 200 | (5,634 | ) | |||||||
Balance September 30, 2013 | $ | 937 | $ | (104 | ) | $ | 833 | |||||
(1) All amounts shown are net of applicable income taxes using an income tax rate of 34%. | ||||||||||||
The following tables present information related to reclassifications from accumulated other comprehensive income during the periods indicated. | ||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||||
(in thousands) | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | For the three months ended September 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||||
2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (23 | ) | $ | (164 | ) | Gain on securities available for sale | |||||
Related income tax expense | 8 | 56 | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (15 | ) | (108 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (15 | ) | $ | (108 | ) | Net of tax | |||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||||
(in thousands) | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | For the nine months ended September 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||||
2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (397 | ) | $ | (452 | ) | Gain on securities available for sale | |||||
Related income tax expense | 135 | 154 | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (262 | ) | (298 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (262 | ) | $ | (298 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities." |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Stock options awarded under the 2006 Equity Compensation Plan | ' | ||||||||||
The following table summarizes stock options awarded under the 2006 Equity Compensation Plan and remaining unexercised options under the 1997 Stock Incentive Plan at the end of the reporting period. | |||||||||||
September 30, 2013 | |||||||||||
Shares | Weighted | Aggregate | |||||||||
Average | Intrinsic | ||||||||||
Exercise | Value | ||||||||||
Price | |||||||||||
Outstanding at beginning of year | 82,171 | $ | 17.32 | ||||||||
Granted | — | — | |||||||||
Exercised | (2,743 | ) | 14 | ||||||||
Forfeited | (16,000 | ) | 22 | ||||||||
Outstanding at end of period | 63,428 | $ | 16.29 | $ | 182,000 | ||||||
Restricted stock awarded under the 2006 Equity Compensation Plan | ' | ||||||||||
The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan at the end of the reportable period. | |||||||||||
September 30, 2013 | |||||||||||
Shares | Weighted | Aggregate | |||||||||
Average | Intrinsic | ||||||||||
Grant-Date | Value | ||||||||||
Fair Value | |||||||||||
Outstanding at beginning of year | 120,455 | $ | 15.66 | ||||||||
Granted | 32,500 | 17.96 | |||||||||
Vested | (21,455 | ) | (14.72 | ) | |||||||
Forfeited | (3,750 | ) | (16.85 | ) | |||||||
Non-vested at end of period | 127,750 | $ | 16.36 | $ | 2,463,000 | ||||||
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Amortized costs and fair values of securities available for sale | ' | ||||||||||||||||||||||||
Amortized costs and fair values of securities available for sale at September 30, 2013 are summarized as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,360 | $ | 349 | $ | (244 | ) | $ | 21,465 | ||||||||||||||||
Obligations of states and political subdivisions | 77,788 | 1,483 | (3,167 | ) | 76,104 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 158,204 | 3,864 | (1,013 | ) | 161,055 | ||||||||||||||||||||
Non-agency | 18,113 | 151 | (141 | ) | 18,123 | ||||||||||||||||||||
Other asset backed securities | 35,728 | 659 | (150 | ) | 36,237 | ||||||||||||||||||||
Corporate preferred stock | 68 | 5 | — | 73 | |||||||||||||||||||||
Corporate securities | 15,695 | 32 | (406 | ) | 15,321 | ||||||||||||||||||||
Total | $ | 326,956 | $ | 6,543 | $ | (5,121 | ) | $ | 328,378 | ||||||||||||||||
Amortized costs and fair values of securities available for sale at December 31, 2012 are summarized as follows: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 15,391 | $ | 459 | $ | (28 | ) | $ | 15,822 | ||||||||||||||||
Obligations of states and political subdivisions | 74,485 | 3,920 | (105 | ) | 78,300 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 161,564 | 5,659 | (280 | ) | 166,943 | ||||||||||||||||||||
Non-agency | 15,310 | 287 | (18 | ) | 15,579 | ||||||||||||||||||||
Other asset backed securities | 33,648 | 1,079 | (85 | ) | 34,642 | ||||||||||||||||||||
Corporate preferred stock | 68 | — | (6 | ) | 62 | ||||||||||||||||||||
Corporate securities | 8,730 | 12 | (633 | ) | 8,109 | ||||||||||||||||||||
Total | $ | 309,196 | $ | 11,416 | $ | (1,155 | ) | $ | 319,457 | ||||||||||||||||
Amortized cost and fair value of securities available for sale by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale as of September 30, 2013, by contractual maturity are shown below. Maturities may differ from contractual maturities in mortgage-backed, other asset-backed, and corporate securities because the mortgages, loans, and securities underlying the securities may be called or repaid without any penalties. Therefore, these securities are not included in the maturity categories in the following maturity summary. | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Amortized | Fair | ||||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Due in one year or less | $ | 2,520 | $ | 2,555 | |||||||||||||||||||||
Due after one year through five years | 38,469 | 39,035 | |||||||||||||||||||||||
Due after one year through ten years | 29,434 | 28,617 | |||||||||||||||||||||||
Due after ten years | 44,420 | 42,683 | |||||||||||||||||||||||
Mortgage-backed securities | 176,317 | 179,178 | |||||||||||||||||||||||
Other asset backed securities | 35,728 | 36,237 | |||||||||||||||||||||||
Corporate preferred stock | 68 | 73 | |||||||||||||||||||||||
Total | $ | 326,956 | $ | 328,378 | |||||||||||||||||||||
Investments in continuous unrealized loss position | ' | ||||||||||||||||||||||||
At September 30, 2013, investments in an unrealized loss position that were temporarily impaired are as follows: | |||||||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 11,019 | $ | (244 | ) | $ | 82 | $ | — | $ | 11,101 | $ | (244 | ) | |||||||||||
Obligations of states and | |||||||||||||||||||||||||
political subdivisions | 29,161 | (3,129 | ) | 847 | (38 | ) | 30,008 | (3,167 | ) | ||||||||||||||||
Mortgage backed securities: | |||||||||||||||||||||||||
Agency | 37,619 | (878 | ) | 5,256 | (135 | ) | 42,875 | (1,013 | ) | ||||||||||||||||
Non-agency | 3,938 | (81 | ) | 1,354 | (60 | ) | 5,292 | (141 | ) | ||||||||||||||||
Other asset backed securities | 1,592 | (42 | ) | 2,284 | (108 | ) | 3,876 | (150 | ) | ||||||||||||||||
Corporate securities | 5,656 | (167 | ) | 4,261 | (239 | ) | 9,917 | (406 | ) | ||||||||||||||||
Total | $ | 88,985 | $ | (4,541 | ) | $ | 14,084 | $ | (580 | ) | $ | 103,069 | $ | (5,121 | ) | ||||||||||
At December 31, 2012, investments in an unrealized loss position that were temporarily impaired are as follows: | |||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Less than Twelve Months | Twelve Months or Greater | Total | |||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 3,850 | $ | (28 | ) | $ | 16 | $ | — | $ | 3,866 | $ | (28 | ) | |||||||||||
Obligations of states and | |||||||||||||||||||||||||
political subdivisions | 6,966 | (105 | ) | — | — | 6,966 | (105 | ) | |||||||||||||||||
Mortgage backed securities: | |||||||||||||||||||||||||
Agency | 24,344 | (234 | ) | 1,241 | (46 | ) | 25,585 | (280 | ) | ||||||||||||||||
Non-agency | 3,295 | (18 | ) | — | — | 3,295 | (18 | ) | |||||||||||||||||
Other asset backed securities | 2,791 | (57 | ) | 1,418 | (28 | ) | 4,209 | (85 | ) | ||||||||||||||||
Corporate preferred stock | — | — | 33 | (6 | ) | 33 | (6 | ) | |||||||||||||||||
Corporate securities | — | — | 6,867 | (633 | ) | 6,867 | (633 | ) | |||||||||||||||||
Total | $ | 41,246 | $ | (442 | ) | $ | 9,575 | $ | (713 | ) | $ | 50,821 | $ | (1,155 | ) | ||||||||||
Loan_Portfolio_Tables
Loan Portfolio (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Consolidated loan portfolio | ' | |||||||||||||||||||||||||||
The consolidated loan portfolio was composed of the following on the dates indicated: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Outstanding | Percent of | Outstanding | Percent of | |||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
(In Thousands) | (In Thousands) | |||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 37,155 | 5.2 | % | $ | 50,218 | 7.1 | % | ||||||||||||||||||||
Secured by farmland | 11,504 | 1.6 | % | 11,876 | 1.7 | % | ||||||||||||||||||||||
Secured by 1-4 family residential | 269,986 | 37.7 | % | 260,620 | 36.7 | % | ||||||||||||||||||||||
Other real estate loans | 261,095 | 36.5 | % | 254,930 | 35.9 | % | ||||||||||||||||||||||
Commercial loans | 123,285 | 17.2 | % | 118,573 | 16.8 | % | ||||||||||||||||||||||
Consumer loans | 13,081 | 1.8 | % | 13,260 | 1.8 | % | ||||||||||||||||||||||
716,106 | 100 | % | 709,477 | 100 | % | |||||||||||||||||||||||
Less allowance for loan losses | 13,382 | 14,311 | ||||||||||||||||||||||||||
Net loans | $ | 702,724 | $ | 695,166 | ||||||||||||||||||||||||
Past due loans by class of loans | ' | |||||||||||||||||||||||||||
The following table presents a contractual aging of the recorded investment in past due loans by class of loans as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Current | Total | |||||||||||||||||||||||
Past Due | Past Due | Or Greater | Due | Loans | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 174 | $ | — | $ | 935 | $ | 1,109 | $ | 36,046 | $ | 37,155 | ||||||||||||||||
Secured by farmland | — | — | — | — | 11,504 | 11,504 | ||||||||||||||||||||||
Secured by 1-4 family residential | 940 | 396 | 1,604 | 2,940 | 267,046 | 269,986 | ||||||||||||||||||||||
Other real estate loans | 576 | — | 4,068 | 4,644 | 256,451 | 261,095 | ||||||||||||||||||||||
Commercial loans | 118 | — | 55 | 173 | 123,112 | 123,285 | ||||||||||||||||||||||
Consumer loans | 7 | 9 | 38 | 54 | 13,027 | 13,081 | ||||||||||||||||||||||
Total | $ | 1,815 | $ | 405 | $ | 6,700 | $ | 8,920 | $ | 707,186 | $ | 716,106 | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 Days | Total Past | Current | Total | |||||||||||||||||||||||
Past Due | Past Due | Or Greater | Due | Loans | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | — | $ | 108 | $ | 2,043 | $ | 2,151 | $ | 48,067 | $ | 50,218 | ||||||||||||||||
Secured by farmland | 415 | — | — | 415 | 11,461 | 11,876 | ||||||||||||||||||||||
Secured by 1-4 family residential | 1,625 | 568 | 1,910 | 4,103 | 256,517 | 260,620 | ||||||||||||||||||||||
Other real estate loans | 197 | 361 | 6,112 | 6,670 | 248,260 | 254,930 | ||||||||||||||||||||||
Commercial loans | — | 44 | 144 | 188 | 118,385 | 118,573 | ||||||||||||||||||||||
Consumer loans | 27 | 10 | 32 | 69 | 13,191 | 13,260 | ||||||||||||||||||||||
Total | $ | 2,264 | $ | 1,091 | $ | 10,241 | $ | 13,596 | $ | 695,881 | $ | 709,477 | ||||||||||||||||
The following table presents the recorded investment in nonaccrual loans and loans past due 90 days or more and still accruing by class of loans as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Non-accrual | Past due 90 | Non-accrual | Past due 90 | |||||||||||||||||||||||||
days or more | days or more | |||||||||||||||||||||||||||
and still accruing | and still accruing | |||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 2,629 | $ | 400 | $ | 2,861 | $ | 780 | ||||||||||||||||||||
Secured by 1-4 family residential | 9,768 | 227 | 8,761 | 228 | ||||||||||||||||||||||||
Other real estate loans | 6,236 | — | 7,866 | — | ||||||||||||||||||||||||
Commercial loans | 1,862 | — | 2,146 | 34 | ||||||||||||||||||||||||
Consumer loans | 30 | 9 | 30 | 2 | ||||||||||||||||||||||||
Total | $ | 20,525 | $ | 636 | $ | 21,664 | $ | 1,044 | ||||||||||||||||||||
Summary of loan classifications by class of loan | ' | |||||||||||||||||||||||||||
The following tables present a summary of loan classifications by class of loan as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Pass | $ | 31,061 | $ | 2,994 | $ | 249,447 | $ | 236,543 | $ | 119,731 | $ | 12,980 | $ | 652,756 | ||||||||||||||
Special Mention | 2,363 | 7,903 | 2,488 | 12,291 | 951 | 12 | 26,008 | |||||||||||||||||||||
Substandard | 3,171 | 607 | 16,053 | 12,261 | 2,489 | 59 | 34,640 | |||||||||||||||||||||
Doubtful | 560 | — | 1,998 | — | 114 | 30 | 2,702 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 37,155 | $ | 11,504 | $ | 269,986 | $ | 261,095 | $ | 123,285 | $ | 13,081 | $ | 716,106 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Pass | $ | 29,741 | $ | 11,068 | $ | 237,121 | $ | 228,052 | $ | 112,298 | $ | 13,134 | $ | 631,414 | ||||||||||||||
Special Mention | 15,540 | 199 | 3,767 | 12,949 | 3,332 | 47 | 35,834 | |||||||||||||||||||||
Substandard | 3,902 | 609 | 18,333 | 12,887 | 2,831 | 49 | 38,611 | |||||||||||||||||||||
Doubtful | 1,035 | — | 1,399 | 1,042 | 112 | 30 | 3,618 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
Loans identified as impaired by class of loan | ' | |||||||||||||||||||||||||||
The following table presents loans identified as impaired by class of loan as of and for the nine months ended September 30, 2013: | ||||||||||||||||||||||||||||
30-Sep-13 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,910 | $ | 2,187 | $ | — | $ | 1,927 | $ | 13 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 4,363 | 4,840 | — | 4,664 | 6 | |||||||||||||||||||||||
Other real estate loans | 4,347 | 4,581 | — | 4,421 | 111 | |||||||||||||||||||||||
Commercial loans | 2,132 | 2,139 | — | 2,275 | 19 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | 12,752 | 13,747 | — | 13,287 | 149 | |||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 987 | 1,037 | 508 | 1,016 | — | |||||||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 6,477 | 6,707 | 2,904 | 6,644 | 51 | |||||||||||||||||||||||
Other real estate loans | 4,995 | 5,288 | 830 | 5,077 | 71 | |||||||||||||||||||||||
Commercial loans | 373 | 403 | 285 | 408 | 10 | |||||||||||||||||||||||
Consumer loans | 30 | 30 | 30 | 30 | — | |||||||||||||||||||||||
Total with a related allowance | 12,862 | 13,465 | 4,557 | 13,175 | 132 | |||||||||||||||||||||||
Total | $ | 25,614 | $ | 27,212 | $ | 4,557 | $ | 26,462 | $ | 281 | ||||||||||||||||||
The following table presents loans identified as impaired by class of loan as of and for the year ended December 31, 2012: | ||||||||||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | ||||||||||||||||||||||||
Balance | Investment | Recognized | ||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,819 | $ | 2,370 | $ | — | $ | 2,543 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,248 | 3,667 | — | 3,712 | 50 | |||||||||||||||||||||||
Other real estate loans | 3,135 | 3,178 | — | 3,141 | 91 | |||||||||||||||||||||||
Commercial loans | 1,947 | 1,947 | — | 1,924 | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | 10,149 | 11,162 | — | 11,320 | 141 | |||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 1,150 | 2,250 | 166 | 1,685 | — | |||||||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 7,544 | 8,203 | 2,724 | 7,842 | 65 | |||||||||||||||||||||||
Other real estate loans | 7,505 | 7,605 | 1,045 | 7,691 | 73 | |||||||||||||||||||||||
Commercial loans | 417 | 464 | 338 | 446 | 14 | |||||||||||||||||||||||
Consumer loans | 30 | 30 | 30 | 30 | — | |||||||||||||||||||||||
Total with a related allowance | 16,646 | 18,552 | 4,303 | 17,694 | 152 | |||||||||||||||||||||||
Total | $ | 26,795 | $ | 29,714 | $ | 4,303 | $ | 29,014 | $ | 293 | ||||||||||||||||||
Loans modified in TDR by class of loan | ' | |||||||||||||||||||||||||||
The following tables present by class of loan, information related to loans modified in a TDR during the three and nine months ended September 30, 2013: | ||||||||||||||||||||||||||||
Loans modified as TDR's | ||||||||||||||||||||||||||||
For the three months ended | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification | Post-Modification | |||||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||||||
Recorded Investment | Recorded Investment | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 1 | $ | 45 | $ | 41 | |||||||||||||||||||||||
Secured by farmland | — | — | — | |||||||||||||||||||||||||
Secured by 1-4 family residential | 6 | 2,300 | 1,986 | |||||||||||||||||||||||||
Other real estate loans | 3 | 701 | 676 | |||||||||||||||||||||||||
Total real estate loans | 10 | 3,046 | 2,703 | |||||||||||||||||||||||||
Commercial loans | 1 | 50 | 49 | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Total | 11 | $ | 3,096 | $ | 2,752 | |||||||||||||||||||||||
Loans modified as TDR's | ||||||||||||||||||||||||||||
For the nine months ended | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | 2 | $ | 557 | $ | 514 | |||||||||||||||||||||||
Secured by farmland | — | — | — | |||||||||||||||||||||||||
Secured by 1-4 family residential | 11 | 3,549 | 3,227 | |||||||||||||||||||||||||
Other real estate loans | 5 | 869 | 824 | |||||||||||||||||||||||||
Total real estate loans | 18 | 4,975 | 4,565 | |||||||||||||||||||||||||
Commercial loans | 2 | 517 | 515 | |||||||||||||||||||||||||
Consumer loans | — | — | — | |||||||||||||||||||||||||
Total | 20 | $ | 5,492 | $ | 5,080 | |||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||
Allowance for loan losses | ' | |||||||||||||||||||||||||||
The following tables present a rollforward of the changes in the allowance for loan losses balance by class of loan, the balances in the allowance for loan losses and the recorded investment in loans by class of loan and, for the ending loan balances, based on impairment evaluation method as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balances as of December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Charge-offs | (194 | ) | — | (783 | ) | (97 | ) | (38 | ) | (28 | ) | (1,140 | ) | |||||||||||||||
Recoveries | 47 | — | 109 | 30 | 7 | 19 | 212 | |||||||||||||||||||||
Provision (Recovery) | 257 | (26 | ) | 459 | (434 | ) | (277 | ) | 20 | (1 | ) | |||||||||||||||||
Balances as of September 30 2013 | $ | 1,368 | $ | 109 | $ | 6,061 | $ | 3,847 | $ | 1,790 | $ | 207 | $ | 13,382 | ||||||||||||||
Ending allowance balance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 508 | $ | — | $ | 2,904 | $ | 830 | $ | 285 | $ | 30 | $ | 4,557 | ||||||||||||||
Collectively evaluated for impairment | 860 | 109 | 3,157 | 3,017 | 1,505 | 177 | 8,825 | |||||||||||||||||||||
Total ending allowance balances | $ | 1,368 | $ | 109 | $ | 6,061 | $ | 3,847 | $ | 1,790 | $ | 207 | $ | 13,382 | ||||||||||||||
Ending loan recorded investment balances: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,897 | $ | — | $ | 10,840 | $ | 9,342 | $ | 2,505 | $ | 30 | $ | 25,614 | ||||||||||||||
Collectively evaluated for impairment | 34,258 | 11,504 | 259,146 | 251,753 | 120,780 | 13,051 | 690,492 | |||||||||||||||||||||
Total ending loan balances | $ | 37,155 | $ | 11,504 | $ | 269,986 | $ | 261,095 | $ | 123,285 | $ | 13,081 | $ | 716,106 | ||||||||||||||
December 31, 2012 | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||
Real Estate | Real Estate | Real Estate | Other Real | Commercial | Consumer | Total | ||||||||||||||||||||||
Construction | Secured by | Secured by 1-4 | Estate Loans | |||||||||||||||||||||||||
Farmland | Family Residential | |||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balances at December 31, 2011 | $ | 897 | $ | 110 | $ | 7,465 | $ | 4,385 | $ | 1,621 | $ | 145 | $ | 14,623 | ||||||||||||||
Charge-offs | (2,152 | ) | — | (893 | ) | (760 | ) | (394 | ) | (72 | ) | (4,271 | ) | |||||||||||||||
Recoveries | 2 | — | 388 | 86 | 12 | 33 | 521 | |||||||||||||||||||||
Provision | 2,511 | 25 | (684 | ) | 637 | 859 | 90 | 3,438 | ||||||||||||||||||||
Balances at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending allowance balance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | — | $ | 2,724 | $ | 1,045 | $ | 338 | $ | 30 | $ | 4,303 | ||||||||||||||
Collectively evaluated for impairment | 1,092 | 135 | 3,552 | 3,303 | 1,760 | 166 | 10,008 | |||||||||||||||||||||
Total ending allowance balances | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending loan recorded investment balances: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | — | $ | 10,792 | $ | 10,640 | $ | 2,364 | $ | 30 | $ | 26,795 | ||||||||||||||
Collectively evaluated for impairment | 47,249 | 11,876 | 249,828 | 244,290 | 116,209 | 13,230 | 682,682 | |||||||||||||||||||||
Total ending loan balances | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Weighted-average number of shares used in computing earnings per share and the effect on weighted-average number of shares of diluted potential common stock | ' | |||||||||||||
The following table shows the weighted average number of common shares used in computing earnings per share and the effect on the weighted average number of shares of potential dilutive common stock. Potential dilutive common stock has no effect on income available to common shareholders. | ||||||||||||||
Three months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Weighted Average Shares | Per share | Weighted Average Shares | Per share | |||||||||||
Amount | Amount | |||||||||||||
Basic earnings per share | 7,080,244 | $ | 0.23 | 7,036,536 | $ | 0.24 | ||||||||
Effect of dilutive securities: | ||||||||||||||
stock options and grants | 37,964 | — | 15,324 | — | ||||||||||
Diluted earnings per share | 7,118,208 | $ | 0.23 | 7,051,860 | $ | 0.24 | ||||||||
Nine months ended | ||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||
Weighted Average Shares | Per share Amount | Weighted Average Shares | Per share Amount | |||||||||||
Basic earnings per share | 7,072,372 | $ | 0.71 | 7,026,663 | $ | 0.72 | ||||||||
Effect of dilutive securities: | ||||||||||||||
stock options and grants | 32,777 | — | 9,987 | $ | — | |||||||||
Diluted earnings per share | 7,105,149 | $ | 0.71 | 7,036,650 | $ | 0.72 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of segment information | ' | |||||||||||||||||||
The following table presents segment information for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
For the three months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 10,750 | $ | 4 | $ | 520 | $ | (320 | ) | $ | 10,954 | |||||||||
Trust and investment fee income | — | 1,000 | — | (37 | ) | 963 | ||||||||||||||
Other income | 899 | — | 4,358 | (92 | ) | 5,165 | ||||||||||||||
Total operating income | 11,649 | 1,004 | 4,878 | (449 | ) | 17,082 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 1,574 | — | 380 | (320 | ) | 1,634 | ||||||||||||||
Salaries and employee benefits | 4,183 | 393 | 3,174 | — | 7,750 | |||||||||||||||
Provision for loan losses | — | — | 3 | — | 3 | |||||||||||||||
Other | 4,240 | 223 | 1,221 | (129 | ) | 5,555 | ||||||||||||||
Total operating expenses | 9,997 | 616 | 4,778 | (449 | ) | 14,942 | ||||||||||||||
Income before income taxes and non-controlling interest | 1,652 | 388 | 100 | — | 2,140 | |||||||||||||||
Income tax expense | 440 | 51 | — | — | 491 | |||||||||||||||
Net Income | 1,212 | 337 | 100 | — | 1,649 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (38 | ) | — | (38 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,212 | $ | 337 | $ | 62 | $ | — | $ | 1,611 | ||||||||||
Total assets | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | |||||||||
Capital expenditures | $ | 693 | $ | 5 | $ | 115 | $ | — | $ | 813 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||
For the three months ended | ||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 11,262 | $ | 2 | $ | 630 | $ | (487 | ) | $ | 11,407 | |||||||||
Trust and investment fee income | — | 963 | — | (35 | ) | 928 | ||||||||||||||
Other income | 1,164 | — | 6,306 | (80 | ) | 7,390 | ||||||||||||||
Total operating income | 12,426 | 965 | 6,936 | (602 | ) | 19,725 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 2,115 | — | 562 | (487 | ) | 2,190 | ||||||||||||||
Salaries and employee benefits | 3,912 | 358 | 3,006 | — | 7,276 | |||||||||||||||
Provision for (recovery of) loan losses | 642 | — | (7 | ) | — | 635 | ||||||||||||||
Other | 5,221 | 232 | 1,222 | (115 | ) | 6,560 | ||||||||||||||
Total operating expenses | 11,890 | 590 | 4,783 | (602 | ) | 16,661 | ||||||||||||||
Income before income taxes and non-controlling interest | 536 | 375 | 2,153 | — | 3,064 | |||||||||||||||
Income tax expense | 514 | 51 | — | — | 565 | |||||||||||||||
Net Income | 22 | 324 | 2,153 | — | 2,499 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (785 | ) | — | (785 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 22 | $ | 324 | $ | 1,368 | $ | — | $ | 1,714 | ||||||||||
Total assets | $ | 1,209,455 | $ | 12,789 | $ | 104,919 | $ | (91,202 | ) | $ | 1,235,961 | |||||||||
Capital expenditures | $ | 6 | $ | — | $ | — | $ | — | $ | 6 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,193 | $ | 1,867 | $ | — | $ | 6,060 | ||||||||||
The following table presents segment information for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 32,742 | $ | 11 | $ | 1,398 | $ | (993 | ) | $ | 33,158 | |||||||||
Trust and investment fee income | — | 3,052 | — | (115 | ) | 2,937 | ||||||||||||||
Other income | 3,363 | — | 13,161 | (325 | ) | 16,199 | ||||||||||||||
Total operating income | 36,105 | 3,063 | 14,559 | (1,433 | ) | 52,294 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 4,956 | — | 1,099 | (993 | ) | 5,062 | ||||||||||||||
Salaries and employee benefits | 12,485 | 1,623 | 9,134 | — | 23,242 | |||||||||||||||
Provision for (recovery of) loan losses | (9 | ) | — | 8 | — | (1 | ) | |||||||||||||
Other | 12,930 | 910 | 3,699 | (440 | ) | 17,099 | ||||||||||||||
Total operating expenses | 30,362 | 2,533 | 13,940 | (1,433 | ) | 45,402 | ||||||||||||||
Income before income taxes and non-controlling interest | 5,743 | 530 | 619 | — | 6,892 | |||||||||||||||
Income tax expense | 1,403 | 225 | — | — | 1,628 | |||||||||||||||
Net Income | 4,340 | 305 | 619 | — | 5,264 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (233 | ) | — | (233 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 4,340 | $ | 305 | $ | 386 | $ | — | $ | 5,031 | ||||||||||
Total assets | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | |||||||||
Capital expenditures | $ | 1,144 | $ | 5 | $ | 124 | $ | — | $ | 1,273 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||
For the nine months ended | ||||||||||||||||||||
30-Sep-12 | ||||||||||||||||||||
Retail | Wealth | Mortgage | Intercompany | Consolidated | ||||||||||||||||
Banking | Management | Banking | Eliminations | |||||||||||||||||
(In Thousands) | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 34,837 | $ | 7 | $ | 2,067 | $ | (1,348 | ) | $ | 35,563 | |||||||||
Trust and investment fee income | — | 2,932 | — | (104 | ) | 2,828 | ||||||||||||||
Other income | 3,351 | — | 15,719 | (425 | ) | 18,645 | ||||||||||||||
Total operating income | 38,188 | 2,939 | 17,786 | (1,877 | ) | 57,036 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 6,606 | — | 1,659 | (1,348 | ) | 6,917 | ||||||||||||||
Salaries and employee benefits | 11,585 | 1,438 | 9,116 | — | 22,139 | |||||||||||||||
Provision for loan losses | 2,127 | — | 29 | — | 2,156 | |||||||||||||||
Other | 13,267 | 874 | 4,712 | (529 | ) | 18,324 | ||||||||||||||
Total operating expenses | 33,585 | 2,312 | 15,516 | (1,877 | ) | 49,536 | ||||||||||||||
Income before income taxes and non-controlling interest | 4,603 | 627 | 2,270 | — | 7,500 | |||||||||||||||
Income tax expense | 1,319 | 259 | — | — | 1,578 | |||||||||||||||
Net Income | 3,284 | 368 | 2,270 | — | 5,922 | |||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | (856 | ) | — | (856 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 3,284 | $ | 368 | $ | 1,414 | $ | — | $ | 5,066 | ||||||||||
Total assets | $ | 1,209,455 | $ | 12,789 | $ | 104,919 | $ | (91,202 | ) | $ | 1,235,961 | |||||||||
Capital expenditures | $ | 541 | $ | — | $ | — | $ | — | $ | 541 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,193 | $ | 1,867 | $ | — | $ | 6,060 | ||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||
The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 and December 31, 2012. | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | ||||||||||||||||||||
U.S. government agencies | $ | 21,465 | $ | — | $ | 21,465 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 76,104 | — | 76,104 | — | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | 161,055 | — | 161,055 | — | ||||||||||||||||
Non-agency | 18,123 | — | 18,123 | — | ||||||||||||||||
Other asset-backed securities | 36,237 | — | 36,237 | — | ||||||||||||||||
Corporate preferred stock | 73 | — | 73 | — | ||||||||||||||||
Corporate securities | 15,321 | — | 14,836 | 485 | ||||||||||||||||
Mortgage interest rate locks | 651 | — | 651 | — | ||||||||||||||||
Loans held for sale | 41,855 | — | 41,855 | — | ||||||||||||||||
Interest rate swaps | 167 | — | 167 | — | ||||||||||||||||
Mortgage servicing rights | 155 | — | 155 | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swaps | $ | 326 | $ | — | $ | 326 | $ | — | ||||||||||||
Mortgage banking hedge instruments | 613 | — | 613 | — | ||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | ||||||||||||||||||||
U.S. government agencies | $ | 15,822 | $ | — | $ | 15,822 | $ | — | ||||||||||||
Obligations of states and political subdivisions | 78,300 | — | 78,300 | — | ||||||||||||||||
Mortgage-backed securities: | ||||||||||||||||||||
Agency | 166,943 | — | 166,943 | — | ||||||||||||||||
Non-agency | 15,579 | — | 15,579 | — | ||||||||||||||||
Other asset-backed securities | 34,642 | — | 34,642 | — | ||||||||||||||||
Corporate preferred stock | 62 | — | 62 | — | ||||||||||||||||
Corporate securities | 8,109 | — | 8,109 | — | ||||||||||||||||
Loans held for sale | 82,114 | — | 82,114 | — | ||||||||||||||||
Mortgage interest rate locks | 35 | — | 35 | — | ||||||||||||||||
Interest rate swaps | 80 | — | 80 | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swap | $ | 541 | $ | — | $ | 541 | $ | — | ||||||||||||
Mortgage banking hedge instruments | 39 | — | 39 | — | ||||||||||||||||
Quantitative information about Level III fair value measurements | ' | |||||||||||||||||||
The following table presents quantitative information as of September 30, 2013 related to Level III fair value measurements for financial assets measured at fair value on a recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | ||||||||||||||||||
Corporate Securities | $ | 485 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | ||||||||||||||||
The following table presents quantitative information as of September 30, 2013 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||||||||||
Impaired Loans | $ | 4,614 | Market comparables | Discount applied to market comparables (1) | 10% - 30% (21%) | |||||||||||||||
(1) A discount percentage is applied based on age of independent appraisals, current market conditions, and experience within the local markets. | ||||||||||||||||||||
The following table presents quantitative information as of December 31, 2012 about Level III fair value measurements for financial assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||
Fair Value (in thousands) | Valuation Technique | Unobservable Inputs | Range (Weighted Average) | |||||||||||||||||
Impaired Loans | $ | 1,178 | Discounted appraised value | Discount for selling costs and age of appraisals. | 10% - 30% (21%) | |||||||||||||||
Other real estate owned | $ | 2,310 | Discounted appraised value | Discount for selling costs, construction status, and age of appraisals. | 12% (12%) | |||||||||||||||
Financial and non-financial assets measured at fair value on a nonrecurring basis | ' | |||||||||||||||||||
The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period. | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Other real estate owned | $ | 4,530 | $ | — | $ | 4,530 | $ | — | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Other real estate owned | $ | 9,929 | $ | — | $ | 7,619 | $ | 2,310 | ||||||||||||
The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis as of September 30, 2013 and December 31, 2012: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Impaired loans | $ | 8,305 | $ | — | $ | 3,691 | $ | 4,614 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | ||||||||||||||||
Assets: | ||||||||||||||||||||
Impaired loans | $ | 12,343 | $ | — | $ | 11,165 | $ | 1,178 | ||||||||||||
Estimated fair values and related carrying amounts of financial instruments | ' | |||||||||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments as of September 30, 2013 are as follows: | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | ||||||||||||||||
Amount | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 62,645 | $ | 62,645 | $ | 62,645 | $ | — | $ | — | ||||||||||
Securities | 328,378 | 328,378 | — | 327,893 | 485 | |||||||||||||||
Loans held for sale | 41,855 | 41,855 | — | 41,855 | — | |||||||||||||||
Net portfolio loans | 702,724 | 716,046 | — | 3,691 | 712,355 | |||||||||||||||
Bank owned life insurance | 16,851 | 16,851 | — | 16,851 | — | |||||||||||||||
Accrued interest receivable | 3,924 | 3,924 | — | 3,924 | — | |||||||||||||||
Mortgage interest rate locks | 651 | 651 | — | 651 | — | |||||||||||||||
Interest rate swaps | 167 | 167 | — | 167 | — | |||||||||||||||
Mortgage servicing rights | 155 | 155 | — | 155 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 958,566 | $ | 961,035 | $ | — | $ | 961,035 | $ | — | ||||||||||
Securities sold under agreements to repurchase | 35,005 | 35,005 | — | 35,005 | — | |||||||||||||||
Short-term borrowings | 5,451 | 5,451 | — | 5,451 | — | |||||||||||||||
FHLB borrowings | 85,000 | 85,862 | — | 85,862 | — | |||||||||||||||
Subordinated notes | 5,155 | 5,207 | — | 5,207 | — | |||||||||||||||
Accrued interest payable | 527 | 527 | — | 527 | — | |||||||||||||||
Interest rate swaps | 326 | 326 | — | 312 | — | |||||||||||||||
Mortgage banking hedge instruments | 613 | 613 | — | 613 | — | |||||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments at December 31, 2012 are as follows: | ||||||||||||||||||||
31-Dec-12 | ||||||||||||||||||||
Fair value measurements using: | ||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | ||||||||||||||||
Amount | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Financial assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 54,415 | $ | 54,415 | $ | 54,415 | $ | — | $ | — | ||||||||||
Securities | 319,457 | 319,457 | — | 319,457 | — | |||||||||||||||
Loans held for sale | 82,114 | 82,114 | — | 82,114 | — | |||||||||||||||
Net portfolio loans | 695,166 | 716,358 | — | 1,178 | 715,180 | |||||||||||||||
Bank owned life insurance | 16,484 | 16,484 | — | 16,484 | — | |||||||||||||||
Accrued interest receivable | 3,974 | 3,974 | — | 3,974 | — | |||||||||||||||
Mortgage interest rate locks | 35 | 35 | — | 35 | — | |||||||||||||||
Interest rate swaps | 80 | 80 | — | 80 | — | |||||||||||||||
Financial liabilities: | ||||||||||||||||||||
Deposits | $ | 981,900 | $ | 984,682 | $ | — | $ | 984,682 | $ | — | ||||||||||
Securities sold under agreements to repurchase | 33,975 | 33,975 | — | 33,975 | — | |||||||||||||||
Short-term borrowings | 11,873 | 11,873 | — | 11,873 | — | |||||||||||||||
FHLB borrowings | 72,912 | 78,912 | — | 78,912 | — | |||||||||||||||
Subordinated notes | 5,155 | 5,221 | — | 5,221 | — | |||||||||||||||
Accrued interest payable | 654 | 654 | — | 654 | — | |||||||||||||||
Interest rate swaps | 541 | 541 | — | 541 | — | |||||||||||||||
Mortgage banking hedge instruments | 39 | 39 | — | 39 | — | |||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Changes in component of accumulated other comprehensive income for the period | ' | |||||||||||
The following table presents information on changes in each component of accumulated other comprehensive income and the ending balances for the periods indicated: | ||||||||||||
Accumulated Other Comprehensive Income (1) | ||||||||||||
(in thousands) | ||||||||||||
Net Unrealized Gains (Losses) on Securities | Derivatives | Total | ||||||||||
Balance December 31, 2011 | $ | 4,133 | $ | (207 | ) | $ | 3,926 | |||||
Other comprehensive income (loss) before reclassifications | 2,758 | (122 | ) | 2,636 | ||||||||
Amounts reclassified from accumulated other comprehensive income | (298 | ) | — | (298 | ) | |||||||
Change during period | 2,460 | (122 | ) | 2,338 | ||||||||
Balance September 30, 2012 | $ | 6,593 | $ | (329 | ) | $ | 6,264 | |||||
Balance December 31, 2012 | $ | 6,771 | $ | (304 | ) | $ | 6,467 | |||||
Other comprehensive income (loss) before reclassifications | (5,572 | ) | 200 | (5,372 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | (262 | ) | — | (262 | ) | |||||||
Change during period | (5,834 | ) | 200 | (5,634 | ) | |||||||
Balance September 30, 2013 | $ | 937 | $ | (104 | ) | $ | 833 | |||||
(1) All amounts shown are net of applicable income taxes using an income tax rate of 34%. | ||||||||||||
Information related to reclassifications from accumulated other comprehensive income during the period | ' | |||||||||||
The following tables present information related to reclassifications from accumulated other comprehensive income during the periods indicated. | ||||||||||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||||
(in thousands) | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | For the three months ended September 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||||
2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (23 | ) | $ | (164 | ) | Gain on securities available for sale | |||||
Related income tax expense | 8 | 56 | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (15 | ) | (108 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (15 | ) | $ | (108 | ) | Net of tax | |||||
Amount Reclassified from Accumulated Other Comprehensive Income | ||||||||||||
(in thousands) | ||||||||||||
Details about Accumulated Other Comprehensive Income Components | For the nine months ended September 30, | Affected Line Item in the Consolidated Statements of Income | ||||||||||
2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (397 | ) | $ | (452 | ) | Gain on securities available for sale | |||||
Related income tax expense | 135 | 154 | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (262 | ) | (298 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (262 | ) | $ | (298 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities." |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
share_based_compensation_plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of plans | 1 |
Share based compensation expense | $380,000 |
Shares [Roll Forward] | ' |
Exercised (in shares) | -2,743 |
Stock Options [Member] | ' |
Shares [Roll Forward] | ' |
Outstanding at beginning of year (in shares) | 82,171 |
Granted (in shares) | 0 |
Exercised (in shares) | -2,743 |
Forfeited (in shares) | -16,000 |
Outstanding at end of period (in shares) | 63,428 |
Weighted Average Exercise Price [Roll Forward] | ' |
Outstanding at beginning of year (in dollars per share) | $17.32 |
Granted (in dollars per share) | $0 |
Exercised (in dollars per share) | $14 |
Forfeited (in dollars per share) | $22 |
Outstanding at end of period (in dollars per share) | $16.29 |
Aggregate intrinsic value of options outstanding at end of period | 182,000 |
Options vested and exercisable (in shares) | 63,428 |
Non vested stock option (in shares) | 0 |
Weighted average remaining contractual term for options | '5 years 4 days |
2006 Equity Compensation Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized (in shares) | 430,000 |
2006 Equity Compensation Plan [Member] | Stock Options [Member] | ' |
Weighted Average Exercise Price [Roll Forward] | ' |
Options vested and exercisable (in shares) | 57,428 |
2006 Equity Compensation Plan [Member] | Restricted Stock [Member] | ' |
Shares [Roll Forward] | ' |
Outstanding at beginning of year (in shares) | 120,455 |
Granted (in shares) | 32,500 |
Vested (in shares) | -21,455 |
Forfeited (in shares) | -3,750 |
Non-vested at end of period (in shares) | 127,750 |
Weighted Average Grant-Date Fair Value [Roll Forward] | ' |
Outstanding at beginning of year (in dollars per share) | $15.66 |
Granted (in dollars per share) | $17.96 |
Vested (in dollars per share) | ($14.72) |
Forfeited (in dollars per share) | ($16.85) |
Non-vested at end of period (in dollars per share) | $16.36 |
Aggregate Intrinsic Value [Abstract] | ' |
Outstanding at end of period | 2,463,000 |
Restricted stock nonvested outstanding, Weighted average remaining contractual terms | '4 years 26 days |
Unrecognized compensation expense related to nonvested restricted stock awards | $1,600,000 |
1997 Stock Incentive Plan [Member] | Stock Options [Member] | ' |
Weighted Average Exercise Price [Roll Forward] | ' |
Options vested and exercisable (in shares) | 6,000 |
Securities_Details
Securities (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | $326,956,000 | ' | $309,196,000 |
Gross Unrealized Gains | 6,543,000 | ' | 11,416,000 |
Gross Unrealized Losses | -5,121,000 | ' | -1,155,000 |
Fair Value | 328,378,000 | ' | 319,457,000 |
Amortized Cost [Abstract] | ' | ' | ' |
Due in one year or less | 2,520,000 | ' | ' |
Due after one year through five years | 38,469,000 | ' | ' |
Due after one year through ten years | 29,434,000 | ' | ' |
Due after ten years | 44,420,000 | ' | ' |
Total | 326,956,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Due in one year or less | 2,555,000 | ' | ' |
Due after one year through five years | 39,035,000 | ' | ' |
Due after one year through ten years | 28,617,000 | ' | ' |
Due after ten years | 42,683,000 | ' | ' |
Total | 328,378,000 | ' | ' |
Proceeds from sales of securities | 12,700,000 | ' | ' |
Net gains realized on sale of securities | 397,000 | ' | ' |
Tax expense related to realized gains | 135,000 | ' | ' |
Carrying value of securities pledged for fiduciary powers | 104,500,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 88,985,000 | ' | 41,246,000 |
Twelve Months or Greater | 14,084,000 | ' | 9,575,000 |
Total | 103,069,000 | ' | 50,821,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -4,541,000 | ' | -442,000 |
Twelve Months or Greater | -580,000 | ' | -713,000 |
Total | -5,121,000 | ' | -1,155,000 |
Credit losses recognized in prior period earnings | 0 | 0 | ' |
U.S. government agencies [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 21,360,000 | ' | 15,391,000 |
Gross Unrealized Gains | 349,000 | ' | 459,000 |
Gross Unrealized Losses | -244,000 | ' | -28,000 |
Fair Value | 21,465,000 | ' | 15,822,000 |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 11,019,000 | ' | 3,850,000 |
Twelve Months or Greater | 82,000 | ' | 16,000 |
Total | 11,101,000 | ' | 3,866,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -244,000 | ' | -28,000 |
Twelve Months or Greater | 0 | ' | 0 |
Total | -244,000 | ' | -28,000 |
Obligations of states and political subdivisions [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 77,788,000 | ' | 74,485,000 |
Gross Unrealized Gains | 1,483,000 | ' | 3,920,000 |
Gross Unrealized Losses | -3,167,000 | ' | -105,000 |
Fair Value | 76,104,000 | ' | 78,300,000 |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 29,161,000 | ' | 6,966,000 |
Twelve Months or Greater | 847,000 | ' | 0 |
Total | 30,008,000 | ' | 6,966,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -3,129,000 | ' | -105,000 |
Twelve Months or Greater | -38,000 | ' | 0 |
Total | -3,167,000 | ' | -105,000 |
Mortgage-backed securities [Member] | ' | ' | ' |
Amortized Cost [Abstract] | ' | ' | ' |
Total | 176,317,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Total | 179,178,000 | ' | ' |
Mortgage-backed securities, Agency [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 158,204,000 | ' | 161,564,000 |
Gross Unrealized Gains | 3,864,000 | ' | 5,659,000 |
Gross Unrealized Losses | -1,013,000 | ' | -280,000 |
Fair Value | 161,055,000 | ' | 166,943,000 |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 37,619,000 | ' | 24,344,000 |
Twelve Months or Greater | 5,256,000 | ' | 1,241,000 |
Total | 42,875,000 | ' | 25,585,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -878,000 | ' | -234,000 |
Twelve Months or Greater | -135,000 | ' | -46,000 |
Total | -1,013,000 | ' | -280,000 |
Mortgage-backed securities, Non-agency [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 18,113,000 | ' | 15,310,000 |
Gross Unrealized Gains | 151,000 | ' | 287,000 |
Gross Unrealized Losses | -141,000 | ' | -18,000 |
Fair Value | 18,123,000 | ' | 15,579,000 |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 3,938,000 | ' | 3,295,000 |
Twelve Months or Greater | 1,354,000 | ' | 0 |
Total | 5,292,000 | ' | 3,295,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -81,000 | ' | -18,000 |
Twelve Months or Greater | -60,000 | ' | 0 |
Total | -141,000 | ' | -18,000 |
Other asset backed securities [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 35,728,000 | ' | 33,648,000 |
Gross Unrealized Gains | 659,000 | ' | 1,079,000 |
Gross Unrealized Losses | -150,000 | ' | -85,000 |
Fair Value | 36,237,000 | ' | 34,642,000 |
Amortized Cost [Abstract] | ' | ' | ' |
Total | 35,728,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Total | 36,237,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 1,592,000 | ' | 2,791,000 |
Twelve Months or Greater | 2,284,000 | ' | 1,418,000 |
Total | 3,876,000 | ' | 4,209,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -42,000 | ' | -57,000 |
Twelve Months or Greater | -108,000 | ' | -28,000 |
Total | -150,000 | ' | -85,000 |
Corporate preferred stock [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 68,000 | ' | 68,000 |
Gross Unrealized Gains | 5,000 | ' | 0 |
Gross Unrealized Losses | 0 | ' | -6,000 |
Fair Value | 73,000 | ' | 62,000 |
Amortized Cost [Abstract] | ' | ' | ' |
Total | 68,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Total | 73,000 | ' | ' |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | ' | ' | 0 |
Twelve Months or Greater | ' | ' | 33,000 |
Total | ' | ' | 33,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | ' | ' | 0 |
Twelve Months or Greater | ' | ' | -6,000 |
Total | ' | ' | -6,000 |
Corporate securities [Member] | ' | ' | ' |
Amortized costs and fair values of securities available for sale [Abstract] | ' | ' | ' |
Amortized Cost | 15,695,000 | ' | 8,730,000 |
Gross Unrealized Gains | 32,000 | ' | 12,000 |
Gross Unrealized Losses | -406,000 | ' | -633,000 |
Fair Value | 15,321,000 | ' | 8,109,000 |
Fair Value [Abstract] | ' | ' | ' |
Less than Twelve Months | 5,656,000 | ' | 0 |
Twelve Months or Greater | 4,261,000 | ' | 6,867,000 |
Total | 9,917,000 | ' | 6,867,000 |
Gross Unrealized Losses [Abstract] | ' | ' | ' |
Less than Twelve Months | -167,000 | ' | 0 |
Twelve Months or Greater | -239,000 | ' | -633,000 |
Total | ($406,000) | ' | ($633,000) |
Securities_Other_Than_Temporar
Securities, Other Than Temporary Impairment (Details) (USD $) | 9 Months Ended | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 |
Security | Trust Preferred Securities Subject to Mandatory Redemption [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | Trust Preferred Securities Subject to Mandatory Redemption [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of securities temporarily impaired | 117 | ' | ' | ' | ' | ' | ' |
Number of securities temporarily impaired in investment grade | 116 | ' | ' | ' | ' | ' | ' |
Number of securities temporarily impaired in speculative grade | 1 | ' | ' | ' | ' | ' | ' |
Securities in investment portfolio | $103,069 | ' | $50,821 | ' | ' | ' | $0 |
Recognized net loss | ' | ' | ' | 149 | 142 | ' | ' |
Credit losses recognized | $0 | $0 | ' | $0 | ' | $2,400 | ' |
Number of securities not temporarily impaired | 1 | ' | ' | ' | ' | ' | ' |
Loan_Portfolio_Details
Loan Portfolio (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | $716,106 | $709,477 |
Less allowance for loan losses | 13,382 | 14,311 |
Net loans | 702,724 | 695,166 |
Percent of Total Portfolio | 100.00% | 100.00% |
Mortgages held for sale | 41,855 | 82,114 |
Real estate loans, Construction [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 37,155 | 50,218 |
Less allowance for loan losses | 1,368 | 1,258 |
Percent of Total Portfolio | 5.20% | 7.10% |
Real estate loans, Secured by farmland [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 11,504 | 11,876 |
Percent of Total Portfolio | 1.60% | 1.70% |
Real estate loans, Secured by 1 - 4 family residential [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 269,986 | 260,620 |
Less allowance for loan losses | 6,061 | 6,276 |
Percent of Total Portfolio | 37.70% | 36.70% |
Other real estate loans [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 261,095 | 254,930 |
Less allowance for loan losses | 3,847 | 4,348 |
Percent of Total Portfolio | 36.50% | 35.90% |
Commercial loans [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 123,285 | 118,573 |
Less allowance for loan losses | 1,790 | 2,098 |
Percent of Total Portfolio | 17.20% | 16.80% |
Consumer loans [Member] | ' | ' |
Consolidated Loan Portfolio [Abstract] | ' | ' |
Outstanding Balance, Gross | 13,081 | 13,260 |
Less allowance for loan losses | $207 | $196 |
Percent of Total Portfolio | 1.80% | 1.80% |
Loan_Portfolio_Past_Due_Detail
Loan Portfolio, Past Due (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | $1,815 | $2,264 |
60-89 Days Past Due | 405 | 1,091 |
90 Days Or Greater | 6,700 | 10,241 |
Total Past Due | 8,920 | 13,596 |
Current | 707,186 | 695,881 |
Total Loans | 716,106 | 709,477 |
Non-accrual | 20,525 | 21,664 |
Past due 90 days or more and still accruing | 636 | 1,044 |
Interest on non-accrual loans foregone | 839 | 1,350 |
Real estate loans, Construction [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 174 | 0 |
60-89 Days Past Due | 0 | 108 |
90 Days Or Greater | 935 | 2,043 |
Total Past Due | 1,109 | 2,151 |
Current | 36,046 | 48,067 |
Total Loans | 37,155 | 50,218 |
Non-accrual | 2,629 | 2,861 |
Past due 90 days or more and still accruing | 400 | 780 |
Real estate loans, Secured by farmland [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 0 | 415 |
60-89 Days Past Due | 0 | 0 |
90 Days Or Greater | 0 | 0 |
Total Past Due | 0 | 415 |
Current | 11,504 | 11,461 |
Total Loans | 11,504 | 11,876 |
Real estate loans, Secured by 1 - 4 family residential [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 940 | 1,625 |
60-89 Days Past Due | 396 | 568 |
90 Days Or Greater | 1,604 | 1,910 |
Total Past Due | 2,940 | 4,103 |
Current | 267,046 | 256,517 |
Total Loans | 269,986 | 260,620 |
Non-accrual | 9,768 | 8,761 |
Past due 90 days or more and still accruing | 227 | 228 |
Other real estate loans [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 576 | 197 |
60-89 Days Past Due | 0 | 361 |
90 Days Or Greater | 4,068 | 6,112 |
Total Past Due | 4,644 | 6,670 |
Current | 256,451 | 248,260 |
Total Loans | 261,095 | 254,930 |
Non-accrual | 6,236 | 7,866 |
Past due 90 days or more and still accruing | 0 | 0 |
Commercial loans [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 118 | 0 |
60-89 Days Past Due | 0 | 44 |
90 Days Or Greater | 55 | 144 |
Total Past Due | 173 | 188 |
Current | 123,112 | 118,385 |
Total Loans | 123,285 | 118,573 |
Non-accrual | 1,862 | 2,146 |
Past due 90 days or more and still accruing | 0 | 34 |
Consumer loans [Member] | ' | ' |
Past due loans by class of loans [Abstract] | ' | ' |
30-59 Days Past Due | 7 | 27 |
60-89 Days Past Due | 9 | 10 |
90 Days Or Greater | 38 | 32 |
Total Past Due | 54 | 69 |
Current | 13,027 | 13,191 |
Total Loans | 13,081 | 13,260 |
Non-accrual | 30 | 30 |
Past due 90 days or more and still accruing | $9 | $2 |
Loan_Portfolio_Credit_Quality_
Loan Portfolio, Credit Quality Indicator (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | $716,106 | $709,477 |
Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 652,756 | 631,414 |
Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 26,008 | 35,834 |
Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 34,640 | 38,611 |
Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 2,702 | 3,618 |
Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Real Estate Construction [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 37,155 | 50,218 |
Real Estate Construction [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 31,061 | 29,741 |
Real Estate Construction [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 2,363 | 15,540 |
Real Estate Construction [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 3,171 | 3,902 |
Real Estate Construction [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 560 | 1,035 |
Real Estate Construction [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Real Estate Secured by Farmland [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 11,504 | 11,876 |
Real Estate Secured by Farmland [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 2,994 | 11,068 |
Real Estate Secured by Farmland [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 7,903 | 199 |
Real Estate Secured by Farmland [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 607 | 609 |
Real Estate Secured by Farmland [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Real Estate Secured by Farmland [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Real Estate Secured by 1 - 4 Family Residential [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 269,986 | 260,620 |
Real Estate Secured by 1 - 4 Family Residential [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 249,447 | 237,121 |
Real Estate Secured by 1 - 4 Family Residential [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 2,488 | 3,767 |
Real Estate Secured by 1 - 4 Family Residential [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 16,053 | 18,333 |
Real Estate Secured by 1 - 4 Family Residential [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 1,998 | 1,399 |
Real Estate Secured by 1 - 4 Family Residential [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Other Real Estate Loans [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 261,095 | 254,930 |
Other Real Estate Loans [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 236,543 | 228,052 |
Other Real Estate Loans [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 12,291 | 12,949 |
Other Real Estate Loans [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 12,261 | 12,887 |
Other Real Estate Loans [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 1,042 |
Other Real Estate Loans [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Commercial [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 123,285 | 118,573 |
Commercial [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 119,731 | 112,298 |
Commercial [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 951 | 3,332 |
Commercial [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 2,489 | 2,831 |
Commercial [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 114 | 112 |
Commercial [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 0 | 0 |
Consumer [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 13,081 | 13,260 |
Consumer [Member] | Pass [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 12,980 | 13,134 |
Consumer [Member] | Special Mention [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 12 | 47 |
Consumer [Member] | Substandard [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 59 | 49 |
Consumer [Member] | Doubtful [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | 30 | 30 |
Consumer [Member] | Loss [Member] | ' | ' |
Summary of loan classifications by class of loan [Abstract] | ' | ' |
Summary of loan quality by class of loan | $0 | $0 |
Loan_Portfolio_Impaired_Receiv
Loan Portfolio, Impaired Receivables (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Recorded Investment | ' | ' |
With no related allowance recorded | $12,752 | $10,149 |
With an allowance recorded | 12,862 | 16,646 |
Total | 25,614 | 26,795 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 13,747 | 11,162 |
With an allowance recorded | 13,465 | 18,552 |
Total | 27,212 | 29,714 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 4,557 | 4,303 |
Total | 4,557 | 4,303 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 13,287 | 11,320 |
With an allowance recorded | 13,175 | 17,694 |
Total | 26,462 | 29,014 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 149 | 141 |
With an allowance recorded | 132 | 152 |
Total | 281 | 293 |
Real estate loans, Construction [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 1,910 | 1,819 |
With an allowance recorded | 987 | 1,150 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 2,187 | 2,370 |
With an allowance recorded | 1,037 | 2,250 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 508 | 166 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 1,927 | 2,543 |
With an allowance recorded | 1,016 | 1,685 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 13 | 0 |
With an allowance recorded | 0 | 0 |
Real estate loans, Secured by farmland [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Real estate loans, Secured by 1 - 4 family residential [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 4,363 | 3,248 |
With an allowance recorded | 6,477 | 7,544 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 4,840 | 3,667 |
With an allowance recorded | 6,707 | 8,203 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 2,904 | 2,724 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 4,664 | 3,712 |
With an allowance recorded | 6,644 | 7,842 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 6 | 50 |
With an allowance recorded | 51 | 65 |
Other real estate loans [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 4,347 | 3,135 |
With an allowance recorded | 4,995 | 7,505 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 4,581 | 3,178 |
With an allowance recorded | 5,288 | 7,605 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 830 | 1,045 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 4,421 | 3,141 |
With an allowance recorded | 5,077 | 7,691 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 111 | 91 |
With an allowance recorded | 71 | 73 |
Commercial loans [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 2,132 | 1,947 |
With an allowance recorded | 373 | 417 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 2,139 | 1,947 |
With an allowance recorded | 403 | 464 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 285 | 338 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 2,275 | 1,924 |
With an allowance recorded | 408 | 446 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 19 | 0 |
With an allowance recorded | 10 | 14 |
Consumer loans [Member] | ' | ' |
Recorded Investment | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 30 | 30 |
Unpaid Principal Balance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 30 | 30 |
Related Allowance | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 30 | 30 |
Average Recorded Investment | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 30 | 30 |
Interest Income Recognized | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | $0 | $0 |
Loan_Portfolio_Troubled_Debt_R
Loan Portfolio, Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Loan | Contract | ||
Contract | Loan | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
Total TDR | $15,800,000 | $15,800,000 | $12,000,000 |
TDR included in nonaccrual loans | 11,000,000 | 11,000,000 | ' |
TDR performing as agreed | 4,800,000 | 4,800,000 | ' |
Increase in TDR | ' | 3,800,000 | ' |
Increase in TDR percent | ' | 31.70% | ' |
Valuation Allowance related to total TDR | 2,600,000 | 2,600,000 | 2,000,000 |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 11 | 20 | ' |
Pre-Modification Outstanding Recorded Investment | 3,096,000 | 5,492,000 | ' |
Post-Modification Outstanding Recorded Investment | 2,752,000 | 5,080,000 | ' |
Number of loans for extended terms | 10 | ' | ' |
Number of loans for which allowance for loan losses measured under general allowance methodology | ' | 10 | ' |
Recorded investment as TDR for which allowance for loan losses measured under general allowance methodology | ' | 3,800,000 | ' |
Allowance for loan losses on recorded investment as TDR | 1,100,000 | 1,100,000 | ' |
Recorded investment restructured as TDR included in non accrual loans | 712,000 | 712,000 | ' |
Number of loans modified as TDRs in the past 12 months subsequently defaulted | 1 | 1 | ' |
Total real estate loans [Member] | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 10 | 18 | ' |
Pre-Modification Outstanding Recorded Investment | 3,046,000 | 4,975,000 | ' |
Post-Modification Outstanding Recorded Investment | 2,703,000 | 4,565,000 | ' |
Real Estate Loans Construction [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
TDR included in nonaccrual loans | 651,000 | 651,000 | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 45,000 | 557,000 | ' |
Post-Modification Outstanding Recorded Investment | 41,000 | 514,000 | ' |
Real estate loans, Secured by farmland [Member] | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | 0 | 0 | ' |
Real estate loans, Secured by 1 - 4 family residential [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
TDR included in nonaccrual loans | 5,400,000 | 5,400,000 | ' |
TDR performing as agreed | 1,100,000 | 1,100,000 | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 6 | 11 | ' |
Pre-Modification Outstanding Recorded Investment | 2,300,000 | 3,549,000 | ' |
Post-Modification Outstanding Recorded Investment | 1,986,000 | 3,227,000 | ' |
Other real estate loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
TDR included in nonaccrual loans | 4,900,000 | 4,900,000 | ' |
TDR performing as agreed | 3,100,000 | 3,100,000 | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 3 | 5 | ' |
Pre-Modification Outstanding Recorded Investment | 701,000 | 869,000 | ' |
Post-Modification Outstanding Recorded Investment | 676,000 | 824,000 | ' |
Commercial loans [Member] | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' |
TDR included in nonaccrual loans | 80,000 | 80,000 | ' |
TDR performing as agreed | 642,000 | 642,000 | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 1 | 2 | ' |
Pre-Modification Outstanding Recorded Investment | 50,000 | 517,000 | ' |
Post-Modification Outstanding Recorded Investment | 49,000 | 515,000 | ' |
Consumer loans [Member] | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' |
Number of Contracts | 0 | 0 | ' |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | ' |
Post-Modification Outstanding Recorded Investment | $0 | $0 | ' |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Financing Receivable Allowance For Credit Losses [Line Items] | ' | ' | ' | ' | ' |
Provision (Recovery) of loan losses | $3 | $635 | ($1) | $2,156 | ' |
Increase percentage non accrual loans to total loans (in hundredths) | 2.87% | ' | 2.87% | ' | 3.05% |
Reserve ratio decrease percentage of portfolio loans (in hundredths) | 1.87% | ' | 1.87% | ' | 2.02% |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 14,311 | 14,623 | 14,623 |
Charge-offs | ' | ' | -1,140 | ' | -4,271 |
Recoveries | ' | ' | 212 | ' | 521 |
Provision (Recovery) | ' | ' | -1 | ' | 3,438 |
Ending Balance | 13,382 | ' | 13,382 | ' | 14,311 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 4,557 | ' | 4,557 | ' | 4,303 |
Collectively evaluated for impairment | 8,825 | ' | 8,825 | ' | 10,008 |
Total ending allowance balances | 13,382 | ' | 13,382 | ' | 14,311 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 25,614 | ' | 25,614 | ' | 26,795 |
Collectively evaluated for impairment | 690,492 | ' | 690,492 | ' | 682,682 |
Total Loans | 716,106 | ' | 716,106 | ' | 709,477 |
Real Estate Construction [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 1,258 | 897 | 897 |
Charge-offs | ' | ' | -194 | ' | -2,152 |
Recoveries | ' | ' | 47 | ' | 2 |
Provision (Recovery) | ' | ' | 257 | ' | 2,511 |
Ending Balance | 1,368 | ' | 1,368 | ' | 1,258 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 508 | ' | 508 | ' | 166 |
Collectively evaluated for impairment | 860 | ' | 860 | ' | 1,092 |
Total ending allowance balances | 1,368 | ' | 1,368 | ' | 1,258 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 2,897 | ' | 2,897 | ' | 2,969 |
Collectively evaluated for impairment | 34,258 | ' | 34,258 | ' | 47,249 |
Total Loans | 37,155 | ' | 37,155 | ' | 50,218 |
Real Estate Secured by Farmland [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 135 | 110 | 110 |
Charge-offs | ' | ' | 0 | ' | 0 |
Recoveries | ' | ' | 0 | ' | 0 |
Provision (Recovery) | ' | ' | -26 | ' | 25 |
Ending Balance | 109 | ' | 109 | ' | 135 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 109 | ' | 109 | ' | 135 |
Total ending allowance balances | 109 | ' | 109 | ' | 135 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 0 | ' | 0 | ' | 0 |
Collectively evaluated for impairment | 11,504 | ' | 11,504 | ' | 11,876 |
Total Loans | 11,504 | ' | 11,504 | ' | 11,876 |
Real Estate Secured by 1 - 4 Family Residential [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 6,276 | 7,465 | 7,465 |
Charge-offs | ' | ' | -783 | ' | -893 |
Recoveries | ' | ' | 109 | ' | 388 |
Provision (Recovery) | ' | ' | 459 | ' | -684 |
Ending Balance | 6,061 | ' | 6,061 | ' | 6,276 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 2,904 | ' | 2,904 | ' | 2,724 |
Collectively evaluated for impairment | 3,157 | ' | 3,157 | ' | 3,552 |
Total ending allowance balances | 6,061 | ' | 6,061 | ' | 6,276 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 10,840 | ' | 10,840 | ' | 10,792 |
Collectively evaluated for impairment | 259,146 | ' | 259,146 | ' | 249,828 |
Total Loans | 269,986 | ' | 269,986 | ' | 260,620 |
Other Real Estate Loans [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 4,348 | 4,385 | 4,385 |
Charge-offs | ' | ' | -97 | ' | -760 |
Recoveries | ' | ' | 30 | ' | 86 |
Provision (Recovery) | ' | ' | -434 | ' | 637 |
Ending Balance | 3,847 | ' | 3,847 | ' | 4,348 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 830 | ' | 830 | ' | 1,045 |
Collectively evaluated for impairment | 3,017 | ' | 3,017 | ' | 3,303 |
Total ending allowance balances | 3,847 | ' | 3,847 | ' | 4,348 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 9,342 | ' | 9,342 | ' | 10,640 |
Collectively evaluated for impairment | 251,753 | ' | 251,753 | ' | 244,290 |
Total Loans | 261,095 | ' | 261,095 | ' | 254,930 |
Commercial [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 2,098 | 1,621 | 1,621 |
Charge-offs | ' | ' | -38 | ' | -394 |
Recoveries | ' | ' | 7 | ' | 12 |
Provision (Recovery) | ' | ' | -277 | ' | 859 |
Ending Balance | 1,790 | ' | 1,790 | ' | 2,098 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 285 | ' | 285 | ' | 338 |
Collectively evaluated for impairment | 1,505 | ' | 1,505 | ' | 1,760 |
Total ending allowance balances | 1,790 | ' | 1,790 | ' | 2,098 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 2,505 | ' | 2,505 | ' | 2,364 |
Collectively evaluated for impairment | 120,780 | ' | 120,780 | ' | 116,209 |
Total Loans | 123,285 | ' | 123,285 | ' | 118,573 |
Consumer [Member] | ' | ' | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | 196 | 145 | 145 |
Charge-offs | ' | ' | -28 | ' | -72 |
Recoveries | ' | ' | 19 | ' | 33 |
Provision (Recovery) | ' | ' | 20 | ' | 90 |
Ending Balance | 207 | ' | 207 | ' | 196 |
Ending allowance balance attributable to loans: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 30 | ' | 30 | ' | 30 |
Collectively evaluated for impairment | 177 | ' | 177 | ' | 166 |
Total ending allowance balances | 207 | ' | 207 | ' | 196 |
Ending loan recorded investment balances: | ' | ' | ' | ' | ' |
Individually evaluated for impairment | 30 | ' | 30 | ' | 30 |
Collectively evaluated for impairment | 13,051 | ' | 13,051 | ' | 13,230 |
Total Loans | $13,081 | ' | $13,081 | ' | $13,260 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted Average Shares | ' | ' | ' | ' |
Basic earnings per share (in shares) | 7,080,244 | 7,036,536 | 7,072,372 | 7,026,663 |
Effect of dilutive securities: | ' | ' | ' | ' |
stock options and grants (in shares) | 37,964 | 15,324 | 32,777 | 9,987 |
Diluted earnings per share (in shares) | 7,118,208 | 7,051,860 | 7,105,149 | 7,036,650 |
Per share Amount | ' | ' | ' | ' |
Basic earnings per share (in dollars per share) | $0.23 | $0.24 | $0.71 | $0.72 |
stock options and grant (in dollars per share) | $0 | $0 | $0 | $0 |
Diluted earnings per share (in dollars per share) | $0.23 | $0.24 | $0.71 | $0.72 |
Stock options, restricted grants and warrants excluded computation of earning per share (in shares) | ' | ' | 6,000 | 33,000 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Segment | |||||
Segment Reporting [Abstract] | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 3 | ' | ' |
Line of credit | $5,000,000 | ' | $5,000,000 | ' | ' |
Participating agreement | 75,000,000 | ' | 75,000,000 | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 10,954,000 | 11,407,000 | 33,158,000 | 35,563,000 | ' |
Trust and investment fee income | 963,000 | 928,000 | 2,937,000 | 2,828,000 | ' |
Other income | 5,165,000 | 7,390,000 | 16,199,000 | 18,645,000 | ' |
Total operating income | 17,082,000 | 19,725,000 | 52,294,000 | 57,036,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 1,634,000 | 2,190,000 | 5,062,000 | 6,917,000 | ' |
Salaries and employee benefits | 7,750,000 | 7,276,000 | 23,242,000 | 22,139,000 | ' |
Provision for (recovery of) loan losses | 3,000 | 635,000 | -1,000 | 2,156,000 | ' |
Other | 5,555,000 | 6,560,000 | 17,099,000 | 18,324,000 | ' |
Total operating expenses | 14,942,000 | 16,661,000 | 45,402,000 | 49,536,000 | ' |
Income before income taxes | 2,140,000 | 3,064,000 | 6,892,000 | 7,500,000 | ' |
Income tax expense | 491,000 | 565,000 | 1,628,000 | 1,578,000 | ' |
NET INCOME | 1,649,000 | 2,499,000 | 5,264,000 | 5,922,000 | ' |
Non-controlling interest in income of consolidated subsidiary | -38,000 | -785,000 | -233,000 | -856,000 | ' |
Net income attributable to Middleburg Financial Corporation | 1,611,000 | 1,714,000 | 5,031,000 | 5,066,000 | ' |
Total assets | 1,215,327,000 | 1,235,961,000 | 1,215,327,000 | 1,235,961,000 | 1,236,781,000 |
Capital expenditures | 813,000 | 6,000 | 1,273,000 | 541,000 | ' |
Goodwill and other intangibles | 5,889,000 | 6,060,000 | 5,889,000 | 6,060,000 | 6,017,000 |
Retail Banking [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 10,750,000 | 11,262,000 | 32,742,000 | 34,837,000 | ' |
Trust and investment fee income | 0 | 0 | 0 | 0 | ' |
Other income | 899,000 | 1,164,000 | 3,363,000 | 3,351,000 | ' |
Total operating income | 11,649,000 | 12,426,000 | 36,105,000 | 38,188,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 1,574,000 | 2,115,000 | 4,956,000 | 6,606,000 | ' |
Salaries and employee benefits | 4,183,000 | 3,912,000 | 12,485,000 | 11,585,000 | ' |
Provision for (recovery of) loan losses | 0 | 642,000 | -9,000 | 2,127,000 | ' |
Other | 4,240,000 | 5,221,000 | 12,930,000 | 13,267,000 | ' |
Total operating expenses | 9,997,000 | 11,890,000 | 30,362,000 | 33,585,000 | ' |
Income before income taxes | 1,652,000 | 536,000 | 5,743,000 | 4,603,000 | ' |
Income tax expense | 440,000 | 514,000 | 1,403,000 | 1,319,000 | ' |
NET INCOME | 1,212,000 | 22,000 | 4,340,000 | 3,284,000 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | 0 | 0 | 0 | ' |
Net income attributable to Middleburg Financial Corporation | 1,212,000 | 22,000 | 4,340,000 | 3,284,000 | ' |
Total assets | 1,202,151,000 | 1,209,455,000 | 1,202,151,000 | 1,209,455,000 | ' |
Capital expenditures | 693,000 | 6,000 | 1,144,000 | 541,000 | ' |
Goodwill and other intangibles | 0 | 0 | 0 | 0 | ' |
Wealth Management [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 4,000 | 2,000 | 11,000 | 7,000 | ' |
Trust and investment fee income | 1,000,000 | 963,000 | 3,052,000 | 2,932,000 | ' |
Other income | 0 | 0 | 0 | 0 | ' |
Total operating income | 1,004,000 | 965,000 | 3,063,000 | 2,939,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Salaries and employee benefits | 393,000 | 358,000 | 1,623,000 | 1,438,000 | ' |
Provision for (recovery of) loan losses | 0 | 0 | 0 | 0 | ' |
Other | 223,000 | 232,000 | 910,000 | 874,000 | ' |
Total operating expenses | 616,000 | 590,000 | 2,533,000 | 2,312,000 | ' |
Income before income taxes | 388,000 | 375,000 | 530,000 | 627,000 | ' |
Income tax expense | 51,000 | 51,000 | 225,000 | 259,000 | ' |
NET INCOME | 337,000 | 324,000 | 305,000 | 368,000 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | 0 | 0 | 0 | ' |
Net income attributable to Middleburg Financial Corporation | 337,000 | 324,000 | 305,000 | 368,000 | ' |
Total assets | 12,192,000 | 12,789,000 | 12,192,000 | 12,789,000 | ' |
Capital expenditures | 5,000 | 0 | 5,000 | 0 | ' |
Goodwill and other intangibles | 4,022,000 | 4,193,000 | 4,022,000 | 4,193,000 | ' |
Mortgage Banking [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 520,000 | 630,000 | 1,398,000 | 2,067,000 | ' |
Trust and investment fee income | 0 | 0 | 0 | 0 | ' |
Other income | 4,358,000 | 6,306,000 | 13,161,000 | 15,719,000 | ' |
Total operating income | 4,878,000 | 6,936,000 | 14,559,000 | 17,786,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 380,000 | 562,000 | 1,099,000 | 1,659,000 | ' |
Salaries and employee benefits | 3,174,000 | 3,006,000 | 9,134,000 | 9,116,000 | ' |
Provision for (recovery of) loan losses | 3,000 | -7,000 | 8,000 | 29,000 | ' |
Other | 1,221,000 | 1,222,000 | 3,699,000 | 4,712,000 | ' |
Total operating expenses | 4,778,000 | 4,783,000 | 13,940,000 | 15,516,000 | ' |
Income before income taxes | 100,000 | 2,153,000 | 619,000 | 2,270,000 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
NET INCOME | 100,000 | 2,153,000 | 619,000 | 2,270,000 | ' |
Non-controlling interest in income of consolidated subsidiary | -38,000 | -785,000 | -233,000 | -856,000 | ' |
Net income attributable to Middleburg Financial Corporation | 62,000 | 1,368,000 | 386,000 | 1,414,000 | ' |
Total assets | 52,281,000 | 104,919,000 | 52,281,000 | 104,919,000 | ' |
Capital expenditures | 115,000 | 0 | 124,000 | 0 | ' |
Goodwill and other intangibles | 1,867,000 | 1,867,000 | 1,867,000 | 1,867,000 | ' |
Intercompany Eliminations [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | -320,000 | -487,000 | -993,000 | -1,348,000 | ' |
Trust and investment fee income | -37,000 | -35,000 | -115,000 | -104,000 | ' |
Other income | -92,000 | -80,000 | -325,000 | -425,000 | ' |
Total operating income | -449,000 | -602,000 | -1,433,000 | -1,877,000 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | -320,000 | -487,000 | -993,000 | -1,348,000 | ' |
Salaries and employee benefits | 0 | 0 | 0 | 0 | ' |
Provision for (recovery of) loan losses | 0 | 0 | 0 | 0 | ' |
Other | -129,000 | -115,000 | -440,000 | -529,000 | ' |
Total operating expenses | -449,000 | -602,000 | -1,433,000 | -1,877,000 | ' |
Income before income taxes | 0 | 0 | 0 | 0 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
NET INCOME | 0 | 0 | 0 | 0 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | 0 | 0 | 0 | ' |
Net income attributable to Middleburg Financial Corporation | 0 | 0 | 0 | 0 | ' |
Total assets | -51,297,000 | -91,202,000 | -51,297,000 | -91,202,000 | ' |
Capital expenditures | 0 | 0 | 0 | 0 | ' |
Goodwill and other intangibles | $0 | $0 | $0 | $0 | ' |
Capital_Purchase_Program_Detai
Capital Purchase Program (Details) | 12 Months Ended | |
Dec. 31, 2009 | Aug. 31, 2009 | |
Stockholders' Equity Note [Abstract] | ' | ' |
Preferred stock issued under capital repurchase program (in shares) | 22,000 | ' |
Warrants issued under capital repurchase program (in shares) | 208,202 | ' |
Exercise price of warrants (in dollars per share) | 15.85 | ' |
Class of warrant or right outstanding (in shares) | ' | 104,101 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Percentage at which new appraisals are discounted (in hundredths) | 10.00% | ' |
Number of consecutive monthly payments on timely basis | 6 | ' |
Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
U.S. government agencies | $21,465 | $15,822 |
Obligations of states and political subdivisions | 76,104 | 78,300 |
Mortgage-backed securities: | ' | ' |
Agency | 161,055 | 166,943 |
Non-agency | 18,123 | 15,579 |
Other asset-backed securities | 36,237 | 34,642 |
Corporate preferred stock | 73 | 62 |
Corporate securities | 15,321 | 8,109 |
Mortgage interest rate locks | 651 | 35 |
Loans held for sale | 41,855 | 82,114 |
Interest rate swaps | 167 | 80 |
Mortgage servicing rights | 155 | ' |
Liabilities: | ' | ' |
Interest rate swaps | 326 | 541 |
Mortgage banking hedge instruments | 613 | 39 |
Nonrecurring [Member] | ' | ' |
Financial assets measured at fair value on a nonrecurring basis [Abstract] | ' | ' |
Impaired loans | 8,305 | 12,343 |
Assets [Abstract] | ' | ' |
Other real estate owned | 4,530 | 9,929 |
Level I [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage interest rate locks | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Level I [Member] | Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
U.S. government agencies | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities: | ' | ' |
Agency | 0 | 0 |
Non-agency | 0 | 0 |
Other asset-backed securities | 0 | 0 |
Corporate preferred stock | 0 | 0 |
Corporate securities | 0 | 0 |
Mortgage interest rate locks | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Liabilities: | ' | ' |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | 0 | 0 |
Level I [Member] | Nonrecurring [Member] | ' | ' |
Financial assets measured at fair value on a nonrecurring basis [Abstract] | ' | ' |
Impaired loans | 0 | 0 |
Assets [Abstract] | ' | ' |
Other real estate owned | 0 | 0 |
Level II [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage interest rate locks | 167 | 80 |
Loans held for sale | 41,855 | 82,114 |
Mortgage servicing rights | 155 | ' |
Level II [Member] | Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
U.S. government agencies | 21,465 | 15,822 |
Obligations of states and political subdivisions | 76,104 | 78,300 |
Mortgage-backed securities: | ' | ' |
Agency | 161,055 | 166,943 |
Non-agency | 18,123 | 15,579 |
Other asset-backed securities | 36,237 | 34,642 |
Corporate preferred stock | 73 | 62 |
Corporate securities | 14,836 | 8,109 |
Mortgage interest rate locks | 651 | 35 |
Loans held for sale | 41,855 | 82,114 |
Interest rate swaps | 167 | 80 |
Mortgage servicing rights | 155 | ' |
Liabilities: | ' | ' |
Interest rate swaps | 326 | 541 |
Mortgage banking hedge instruments | 613 | 39 |
Level II [Member] | Nonrecurring [Member] | ' | ' |
Financial assets measured at fair value on a nonrecurring basis [Abstract] | ' | ' |
Impaired loans | 3,691 | 11,165 |
Assets [Abstract] | ' | ' |
Other real estate owned | 4,530 | 7,619 |
Level III [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage interest rate locks | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Level III [Member] | Recurring [Member] | ' | ' |
Assets [Abstract] | ' | ' |
U.S. government agencies | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities: | ' | ' |
Agency | 0 | 0 |
Non-agency | 0 | 0 |
Other asset-backed securities | 0 | 0 |
Corporate preferred stock | 0 | 0 |
Corporate securities | 485 | 0 |
Mortgage interest rate locks | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Liabilities: | ' | ' |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | 0 | 0 |
Level III [Member] | Nonrecurring [Member] | ' | ' |
Financial assets measured at fair value on a nonrecurring basis [Abstract] | ' | ' |
Impaired loans | 4,614 | 1,178 |
Assets [Abstract] | ' | ' |
Other real estate owned | $0 | $2,310 |
Fair_Value_Measurements_Quanti
Fair Value Measurements, Quantitative information (Details) (Level III [Member], USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Recurring [Member] | Corporate securities [Member] | Third Party Trading Desk [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Level III financial assets fair value | 485 | ' | |
Nonrecurring [Member] | Impaired Loans [Member] | Market Comparables [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Level III financial assets fair value | 4,614 | [1] | ' |
Nonrecurring [Member] | Impaired Loans [Member] | Discounted Appraised Value [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Level III financial assets fair value | ' | 1,178 | |
Nonrecurring [Member] | Impaired Loans [Member] | Discounted Appraised Value [Member] | Minimum [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Unobservable inputs value assumptions percentage (in hundredths) | 10.00% | [1] | 10.00% |
Nonrecurring [Member] | Impaired Loans [Member] | Discounted Appraised Value [Member] | Maximum [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Unobservable inputs value assumptions percentage (in hundredths) | 30.00% | [1] | 30.00% |
Nonrecurring [Member] | Impaired Loans [Member] | Discounted Appraised Value [Member] | Weighted Average [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Unobservable inputs value assumptions percentage (in hundredths) | 21.00% | [1] | 21.00% |
Nonrecurring [Member] | Other real estate owned [Member] | Discounted Appraised Value [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Level III financial assets fair value | ' | 2,310 | |
Unobservable inputs value assumptions percentage (in hundredths) | ' | 12.00% | |
Nonrecurring [Member] | Other real estate owned [Member] | Discounted Appraised Value [Member] | Weighted Average [Member] | ' | ' | |
Fair Value, Option, Quantitative Disclosures [Line Items] | ' | ' | |
Unobservable inputs value assumptions percentage (in hundredths) | ' | 12.00% | |
[1] | A discount percentage is applied based on age of independent appraisals, current market conditions, and experience within the local markets. |
Fair_Value_Measurements_Balanc
Fair Value Measurements, Balance Sheet Grouping (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Level I [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | $62,645 | $54,415 |
Securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Net portfolio loans | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage interest rate locks | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Financial liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | 0 | 0 |
Level II [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Securities | 327,893 | 319,457 |
Loans held for sale | 41,855 | 82,114 |
Net portfolio loans | 3,691 | 1,178 |
Bank owned life insurance | 16,851 | 16,484 |
Accrued interest receivable | 3,924 | 3,974 |
Mortgage interest rate locks | 651 | 35 |
Interest rate swaps | 167 | 80 |
Mortgage servicing rights | 155 | ' |
Financial liabilities: | ' | ' |
Deposits | 961,035 | 984,682 |
Securities sold under agreements to repurchase | 35,005 | 33,975 |
Short-term borrowings | 5,451 | 11,873 |
FHLB borrowings | 85,862 | 78,912 |
Subordinated notes | 5,207 | 5,221 |
Accrued interest payable | 527 | 654 |
Interest rate swaps | 312 | 541 |
Mortgage banking hedge instruments | 613 | 39 |
Level III [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Securities | 485 | 0 |
Loans held for sale | 0 | 0 |
Net portfolio loans | 712,355 | 715,180 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage interest rate locks | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | 0 | ' |
Financial liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Short-term borrowings | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | 0 | 0 |
Carrying Amount [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 62,645 | 54,415 |
Securities | 328,378 | 319,457 |
Loans held for sale | 41,855 | 82,114 |
Net portfolio loans | 702,724 | 695,166 |
Bank owned life insurance | 16,851 | 16,484 |
Accrued interest receivable | 3,924 | 3,974 |
Mortgage interest rate locks | 651 | 35 |
Interest rate swaps | 167 | 80 |
Mortgage servicing rights | 155 | ' |
Financial liabilities: | ' | ' |
Deposits | 958,566 | 981,900 |
Securities sold under agreements to repurchase | 35,005 | 33,975 |
Short-term borrowings | 5,451 | 11,873 |
FHLB borrowings | 85,000 | 72,912 |
Subordinated notes | 5,155 | 5,155 |
Accrued interest payable | 527 | 654 |
Interest rate swaps | 326 | 541 |
Mortgage banking hedge instruments | 613 | 39 |
Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 62,645 | 54,415 |
Securities | 328,378 | 319,457 |
Loans held for sale | 41,855 | 82,114 |
Net portfolio loans | 716,046 | 716,358 |
Bank owned life insurance | 16,851 | 16,484 |
Accrued interest receivable | 3,924 | 3,974 |
Mortgage interest rate locks | 651 | 35 |
Interest rate swaps | 167 | 80 |
Mortgage servicing rights | 155 | ' |
Financial liabilities: | ' | ' |
Deposits | 961,035 | 984,682 |
Securities sold under agreements to repurchase | 35,005 | 33,975 |
Short-term borrowings | 5,451 | 11,873 |
FHLB borrowings | 85,862 | 78,912 |
Subordinated notes | 5,207 | 5,221 |
Accrued interest payable | 527 | 654 |
Interest rate swaps | 326 | 541 |
Mortgage banking hedge instruments | $613 | $39 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | |||||
Balance beginning of period | ' | $6,467 | [1] | ' | $6,467 | [1] | $3,926 | [1] | ||
Other comprehensive income (loss) before reclassifications | ' | ' | ' | -5,372 | [1] | 2,636 | [1] | |||
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | -262 | [1] | -298 | [1] | |||
Total other comprehensive income (loss) | -1,767 | ' | 1,164 | -5,634 | [1] | 2,338 | [1] | |||
Balance end of period | 833 | [1] | ' | 6,264 | [1] | 833 | [1] | 6,264 | [1] | |
Income tax rate | ' | 34.00% | ' | ' | ' | |||||
Net Unrealized Gains (Losses) on Securities [Member] | ' | ' | ' | ' | ' | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | |||||
Balance beginning of period | ' | 6,771 | [1] | ' | 6,771 | [1] | 4,133 | [1] | ||
Other comprehensive income (loss) before reclassifications | ' | ' | ' | -5,572 | [1] | 2,758 | [1] | |||
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | -262 | [1] | -298 | [1] | |||
Total other comprehensive income (loss) | ' | ' | ' | -5,834 | [1] | 2,460 | [1] | |||
Balance end of period | 937 | [1] | ' | 6,593 | [1] | 937 | [1] | 6,593 | [1] | |
Derivatives [Member] | ' | ' | ' | ' | ' | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | ' | ' | ' | ' | ' | |||||
Balance beginning of period | ' | -304 | [1] | ' | -304 | [1] | -207 | [1] | ||
Other comprehensive income (loss) before reclassifications | ' | ' | ' | 200 | [1] | -122 | [1] | |||
Amounts reclassified from accumulated other comprehensive income | ' | ' | ' | 0 | [1] | 0 | [1] | |||
Total other comprehensive income (loss) | ' | ' | ' | 200 | [1] | -122 | [1] | |||
Balance end of period | ($104) | [1] | ' | ($329) | [1] | ($104) | [1] | ($329) | [1] | |
[1] | All amounts shown are net of applicable income taxes using an income tax rate of 34%. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Amount Reclassified from Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Income tax expense | $491 | $565 | $1,628 | $1,578 | ||||
Total reclassifications for the period | ' | ' | -262 | [1] | -298 | [1] | ||
Net Unrealized Gains (Losses) on Securities [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total reclassifications for the period | ' | ' | -262 | [1] | -298 | [1] | ||
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Total reclassifications for the period | -15 | -108 | -262 | -298 | ||||
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | Net Unrealized Gains (Losses) on Securities [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gain on securities available for sale | -23 | [2] | -164 | [2] | -397 | [2] | -452 | [2] |
Income tax expense | 8 | [2] | 56 | [2] | 135 | [2] | 154 | [2] |
Net of tax | ($15) | ($108) | ($262) | ($298) | ||||
[1] | All amounts shown are net of applicable income taxes using an income tax rate of 34%. | |||||||
[2] | For more information related to unrealized gains on securities available for sale, see Note 3, "Securities." |