Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MIDDLEBURG FINANCIAL CORP | ' |
Entity Central Index Key | '0000914138 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 7,123,914 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $5,861 | $6,648 |
Interest bearing deposits with other institutions | 73,264 | 60,695 |
Total cash and cash equivalents | 79,125 | 67,343 |
Securities available for sale | 335,034 | 328,423 |
Loans held for sale, net | 0 | 33,175 |
Restricted securities, at cost | 4,829 | 6,780 |
Loans, net of allowance for loan losses of $11,423 and $13,320, respectively | 717,329 | 715,160 |
Premises and equipment, net | 17,796 | 20,017 |
Goodwill and identified intangibles | 3,850 | 5,346 |
Other real estate owned, net of valuation allowance of $867 and $398, respectively | 5,064 | 3,424 |
Bank owned life insurance | 22,450 | 21,955 |
Accrued interest receivable and other assets | 22,250 | 26,130 |
TOTAL ASSETS | 1,207,727 | 1,227,753 |
Deposits: | ' | ' |
Non-interest bearing demand deposits | 210,112 | 185,577 |
Savings and interest bearing demand deposits | 528,229 | 528,879 |
Time deposits | 248,225 | 267,940 |
Total deposits | 986,566 | 982,396 |
Securities sold under agreements to repurchase | 36,469 | 34,539 |
Federal Home Loan Bank borrowings | 45,000 | 80,000 |
Subordinated notes | 5,155 | 5,155 |
Accrued interest payable and other liabilities | 13,615 | 10,590 |
TOTAL LIABILITIES | 1,086,805 | 1,112,680 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock ($2.50 par value; 20,000,000 shares authorized; 7,123,914 and 7,080,591 issued and outstanding, respectively) | 17,480 | 17,403 |
Capital surplus | 44,683 | 44,251 |
Retained earnings | 54,937 | 50,689 |
Accumulated other comprehensive income | 3,822 | 232 |
Total Middleburg Financial Corporation shareholders' equity | 120,922 | 112,575 |
Non-controlling interest in consolidated subsidiary | 0 | 2,498 |
TOTAL SHAREHOLDERS' EQUITY | 120,922 | 115,073 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,207,727 | $1,227,753 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
ASSETS | ' | ' |
Loans, allowance for loan losses | $11,423 | $13,320 |
Other real estate owned, valuation allowance | $867 | $398 |
SHAREHOLDERS' EQUITY | ' | ' |
Common stock, par value (in dollars per share) | $2.50 | $2.50 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 7,123,914 | 7,123,914 |
Common stock, shares outstanding (in shares) | 7,080,591 | 7,080,591 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
INTEREST INCOME | ' | ' | ' | ' |
Interest and fees on loans | $8,357 | $8,744 | $25,656 | $26,504 |
Interest and dividends on securities available for sale | ' | ' | ' | ' |
Taxable | 1,763 | 1,468 | 5,173 | 4,467 |
Tax-exempt | 535 | 640 | 1,656 | 1,917 |
Dividends | 84 | 59 | 230 | 169 |
Interest on deposits in banks and federal funds sold | 51 | 43 | 123 | 101 |
Total interest and dividend income | 10,790 | 10,954 | 32,838 | 33,158 |
INTEREST EXPENSE | ' | ' | ' | ' |
Interest on deposits | 955 | 1,190 | 2,952 | 3,817 |
Interest on securities sold under agreements to repurchase | 81 | 82 | 243 | 243 |
Interest on short-term borrowings | 0 | 59 | 0 | 106 |
Interest on FHLB borrowings and other debt | 209 | 303 | 876 | 896 |
Total interest expense | 1,245 | 1,634 | 4,071 | 5,062 |
NET INTEREST INCOME | 9,545 | 9,320 | 28,767 | 28,096 |
Provision for (recovery of) loan losses | 550 | 3 | 1,510 | -1 |
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES | 8,995 | 9,317 | 27,257 | 28,097 |
NON-INTEREST INCOME | ' | ' | ' | ' |
Service charges on deposit accounts | 635 | 590 | 1,815 | 1,699 |
Trust services income | 1,119 | 963 | 3,224 | 2,937 |
Gains on loans held for sale | 1 | 4,162 | 4,859 | 12,538 |
Gains on securities available for sale, net | 12 | 23 | 141 | 397 |
Commissions on investment sales | 193 | 159 | 479 | 363 |
Bank owned life insurance | 168 | 125 | 494 | 367 |
Gain on sale of majority interest in consolidated subsidiary | 0 | 0 | 24 | 0 |
Other operating income | 152 | 106 | 1,399 | 835 |
Total non-interest income | 2,280 | 6,128 | 12,435 | 19,136 |
NON-INTEREST EXPENSE | ' | ' | ' | ' |
Salaries and employee benefits | 4,441 | 7,750 | 17,467 | 23,242 |
Occupancy and equipment | 1,262 | 1,820 | 4,841 | 5,412 |
Advertising | 136 | 318 | 430 | 1,021 |
Computer operations | 439 | 456 | 1,408 | 1,375 |
Other real estate owned | -33 | 416 | 145 | 1,377 |
Other taxes | 220 | 186 | 637 | 565 |
Federal deposit insurance | 220 | 149 | 687 | 683 |
Other operating expenses | 1,706 | 2,210 | 6,042 | 6,666 |
Total non-interest expense | 8,391 | 13,305 | 31,657 | 40,341 |
Income before income taxes | 2,884 | 2,140 | 8,035 | 6,892 |
Income tax expense | 763 | 491 | 2,179 | 1,628 |
NET INCOME | 2,121 | 1,649 | 5,856 | 5,264 |
Net (income) loss attributable to non-controlling interest | 0 | -38 | 98 | -233 |
Net income attributable to Middleburg Financial Corporation | $2,121 | $1,611 | $5,954 | $5,031 |
Earnings per share: | ' | ' | ' | ' |
Basic (in dollars per share) | $0.30 | $0.23 | $0.84 | $0.71 |
Diluted (in dollars per share) | $0.30 | $0.23 | $0.84 | $0.71 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $2,121 | $1,649 | $5,856 | $5,264 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized holding gains (losses) arising during the period, net of tax of $89, $902, $1,911 and $2,870, respectively | 173 | -1,748 | 3,710 | -5,572 |
Reclassification adjustment for gains included in net income, net of tax of $4, $8, $48 and $135, respectively | -8 | -15 | -93 | -262 |
Unrealized gain (loss) on interest rate swaps, net of tax of $39, $2, $14 and $103, respectively | 81 | -4 | -27 | 200 |
Reclassification adjustment for gain on interest rate swap ineffectiveness included in net income, net of tax of $3, $0, $0 and $0, respectively | -5 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 241 | -1,767 | 3,590 | -5,634 |
Total comprehensive income (loss) | 2,362 | -118 | 9,446 | -370 |
Comprehensive (income) loss attributable to non-controlling interest | 0 | -38 | 98 | -233 |
Comprehensive income (loss) attributable to Middleburg Financial Corporation | $2,362 | ($156) | $9,544 | ($603) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Net unrealized gains on investment securities tax | $89 | $902 | $1,911 | $2,870 |
Reclassification adjustment for investment securities transactions tax | 4 | 8 | 48 | 135 |
Unrealized gain on interest rate swaps tax | 39 | 2 | 14 | 103 |
Reclassification adjustment for loss on interest rate swap ineffectiveness included in net income, tax | $3 | $0 | $0 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (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, 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 | ' | ' | ' | -5,634 | ' |
Cash dividends ($0.17 declared for 9 months ended September 30, 2013 and $0.24 for 9 months ended September 30, 2014) | -1,203 | ' | ' | -1,203 | ' | ' |
Distributions to non-controlling interest | -682 | ' | ' | ' | ' | -682 |
Exercise of stock options (2,743 and 19,772 shares for the 9 months ended September 30, 2013 and 2014, respectively) | 38 | 7 | 31 | ' | ' | ' |
Restricted stock vesting (21,455 and 15,425 in 9 months ended September 30, 2013 and 2014, respectively) | 0 | 53 | -53 | ' | ' | ' |
Repurchase of restricted stock (5,467 and 4,732 for the 9 months ended September 30, 2013 and 2014, respectively) | -102 | -14 | -88 | ' | ' | ' |
Share-based compensation | 380 | ' | 380 | ' | ' | ' |
Balance at Sep. 30, 2013 | 115,183 | 17,403 | 44,139 | 50,063 | 833 | 2,745 |
Balance at Dec. 31, 2013 | 115,073 | 17,403 | 44,251 | 50,689 | 232 | 2,498 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net income | 5,856 | ' | ' | 5,954 | ' | -98 |
Other comprehensive income (loss), net of tax | 3,590 | ' | ' | ' | 3,590 | ' |
Cash dividends ($0.17 declared for 9 months ended September 30, 2013 and $0.24 for 9 months ended September 30, 2014) | -1,706 | ' | ' | -1,706 | ' | ' |
Distributions to non-controlling interest | -2,400 | ' | ' | ' | ' | -2,400 |
Exercise of stock options (2,743 and 19,772 shares for the 9 months ended September 30, 2013 and 2014, respectively) | 300 | 50 | 250 | ' | ' | ' |
Restricted stock vesting (21,455 and 15,425 in 9 months ended September 30, 2013 and 2014, respectively) | 0 | 39 | -39 | ' | ' | ' |
Repurchase of restricted stock (5,467 and 4,732 for the 9 months ended September 30, 2013 and 2014, respectively) | -88 | -12 | -76 | ' | ' | ' |
Share-based compensation | 297 | ' | 297 | ' | ' | ' |
Balance at Sep. 30, 2014 | $120,922 | $17,480 | $44,683 | $54,937 | $3,822 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash dividends: | ' | ' |
Cash dividends, common stock (in dollars per share) | $0.24 | $0.17 |
Exercise of stock options (in shares) | 19,772 | 2,743 |
Restricted stock vesting (in shares) | 15,425 | 21,455 |
Repurchase of restricted stock (in shares) | 4,732 | 5,467 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash Flows From Operating Activities | ' | ' |
Net income | $5,856 | $5,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,536 | 1,466 |
Provision for (recovery of) loan losses | 1,510 | -1 |
Gain on securities available for sale, net | -141 | -397 |
Loss on disposal of assets, net | 59 | 141 |
Premium amortization on securities, net | 2,114 | 2,764 |
Decrease in loans held for sale, net | 33,175 | 40,259 |
Share-based compensation | 297 | 380 |
Gain on sale of majority interest in consolidated subsidiary | -24 | 0 |
(Gain) loss on sale of other real estate owned and repossessed assets, net | -238 | 747 |
Valuation adjustment on other real estate owned | 222 | 235 |
Valuation adjustment on property held for sale | 200 | 0 |
Decrease in prepaid FDIC insurance | 0 | 3,015 |
Changes in assets and liabilities: | ' | ' |
Decrease in other assets | -2,431 | -73 |
Decrease in other liabilities | 3,025 | 2,123 |
Net cash provided by operating activities | 45,160 | 55,923 |
Cash Flows from Investing Activities | ' | ' |
Proceeds from maturity, calls and sales of securities available for sale | 102,344 | 83,253 |
Purchase of securities available for sale | -105,448 | -103,380 |
Redemption (purchase) of restricted stock | 1,951 | -15 |
(Sales) purchases of bank premises and equipment, net | 988 | -1,273 |
Increase in loans, net | -8,117 | -9,946 |
Proceeds from sale of majority interest in consolidated subsidiary, net | 3,618 | 0 |
Proceeds from sale of other real estate owned and repossessed assets | 1,680 | 6,806 |
Net cash provided by (used in) investing activities | -2,984 | -24,555 |
Cash Flows from Financing Activities | ' | ' |
Increase (decrease) in demand, interest-bearing demand and savings deposits | 23,885 | -3,849 |
Decrease in certificates of deposit | -19,715 | -19,485 |
Increase in securities sold under agreements to repurchase | 1,930 | 1,030 |
Decrease in short-term borrowings | 0 | -6,422 |
(Decrease) increase in FHLB borrowings | -35,000 | 7,088 |
Distributions to non-controlling interest | 0 | -233 |
Payment of dividends on common stock | -1,706 | -1,203 |
Proceeds from issuance of common stock, net | 300 | 38 |
Repurchase of common stock | -88 | -102 |
Net cash provided by (used in) financing activities | -30,394 | -23,138 |
Increase in cash and and cash equivalents | 11,782 | 8,230 |
Cash and cash equivalents at beginning of the period | 67,343 | 54,415 |
Cash and cash equivalents at end of the period | 79,125 | 62,645 |
Supplemental Disclosures of Cash Flow Information | ' | ' |
Interest paid | 4,194 | 5,189 |
Income taxes | 500 | 0 |
Supplemental Disclosure of Non-Cash Transactions | ' | ' |
Unrealized gain (loss) on securities available for sale | 5,480 | -8,839 |
Change in market value of interest rate swap | -41 | 303 |
Transfer of loans to other real estate owned and repossessed assets | $4,438 | $2,389 |
General
General | 9 Months Ended |
Sep. 30, 2014 | |
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, 2014 and December 31, 2013, the results of operations, comprehensive income (loss), for the three and nine month periods ending September 30, 2014 and 2013 and changes in shareholders’ equity and cash flows for the nine months ended September 30, 2014 and 2013, 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, 2013 (the “2013 Form 10-K”) of Middleburg Financial Corporation (the “Company”). The results of operations for the three and nine month periods ended September 30, 2014 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 2013 consolidated financial statements have been reclassified to conform to the 2014 presentation. The amounts of these items are not considered to be material variations from the original classifications and presentations. | |
On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage to a consortium of banks and the President of Southern Trust Mortgage. While the Company no longer has a direct financial interest in Southern Trust Mortgage, the Company has maintained a warehouse participation agreement with Southern Trust Mortgage in the amount of $17.00 million. |
ShareBased_Compensation_Plan
Share-Based Compensation Plan | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Share-Based Compensation Plan | ' | ||||||||||
Share-Based Compensation Plan | |||||||||||
The Company sponsors 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. 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. During 2013, the Company's Board of Directors and shareholders approved an amendment to this Plan to increase the number of shares reserved for issuance from 255,000 shares to 430,000 shares, an increase of 175,000 shares. | |||||||||||
For the nine months ended September 30, 2014, the Company recorded $297,000 in share-based compensation expense related to restricted stock. As of September 30, 2014, there was $1.5 million of total unrecognized compensation expense related to the non-vested service and performance awards under the 2006 Equity Compensation Plan. For the nine months ended September 30, 2014, the Company recorded no compensation expense related to option awards. As of September 30, 2014 all outstanding option awards were previously vested and, accordingly, there was no unrecognized compensation expense as of September 30, 2014. | |||||||||||
The aggregate intrinsic value, noted in the tables below, represents the amount by which the current market value of the underlying stock exceeds the exercise price. This amount changes based on changes in the market value of the Company’s common stock. | |||||||||||
The Company granted 35,000 shares of restricted stock on May 7, 2014 to certain employees and executive officers. The restricted stock awards are performance based awards that contain performance based acceleration provisions if certain financial performance targets are met during pre-defined monitoring periods. Under the terms of the award, vesting may be accelerated on a partial basis depending on financial results for the years 2014 - 2018 based on the percentile ranking of the Company compared to its peer group over the period 2014 - 2018. All unearned restricted stock awards are forfeited if the employee leaves the Company prior to vesting. On January 27, 2014 and May 7, 2014 the Company awarded 133 shares and 4,400 shares, respectively, of restricted stock to members of the board of directors. These shares became fully vested on April 30, 2014 and will become fully vested on April 30, 2015, respectively. | |||||||||||
The following table summarizes restricted stock service and performance awards under the 2006 Equity Compensation Plan: | |||||||||||
30-Sep-14 | |||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||
(in thousands) | |||||||||||
Non-vested at December 31, 2013 | 119,250 | $ | 16.39 | ||||||||
Granted | 39,533 | 17.45 | |||||||||
Vested | (15,425 | ) | 15.57 | ||||||||
Forfeited | (11,250 | ) | 16.05 | ||||||||
Non-vested at September 30, 2014 | 132,108 | $ | 16.83 | $ | 2,344 | ||||||
The weighted-average remaining contractual term for non-vested service award grants at September 30, 2014, was 3.78 years. | |||||||||||
The following table summarizes options outstanding under the 2006 Equity Compensation Plan and remaining outstanding unexercised options under the 1997 Stock Incentive Plan. | |||||||||||
30-Sep-14 | |||||||||||
Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | |||||||||
(in thousands) | |||||||||||
Outstanding at December 31, 2013 | 58,513 | $ | 15.3 | $ | 160 | ||||||
Granted | — | — | — | ||||||||
Exercised | (19,772 | ) | 14 | 74 | |||||||
Forfeited | (3,000 | ) | 39.4 | — | |||||||
Outstanding at September 30, 2014 | 35,741 | $ | 14 | $ | 134 | ||||||
Options exercisable at September 30, 2014 | 35,741 | $ | 14 | $ | 134 | ||||||
As of September 30, 2014, options outstanding and exercisable are summarized as follows: | |||||||||||
Exercise Prices | Options Outstanding | Weighted-Average Remaining Contractual Life (years) | Options Exercisable | ||||||||
$ | 14 | 30,741 | 4.45 | 30,741 | |||||||
$ | 14 | 5,000 | 5.09 | 5,000 | |||||||
$ | 14 | 35,741 | 4.52 | 35,741 | |||||||
Securities
Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Securities | ' | ||||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Amortized costs and fair values of securities available for sale are summarized as follows: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 32,330 | $ | 243 | $ | (210 | ) | $ | 32,363 | ||||||||||||||||
Obligations of states and political subdivisions | 58,141 | 2,351 | (482 | ) | 60,010 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 164,872 | 4,691 | (800 | ) | 168,763 | ||||||||||||||||||||
Non-agency | 27,978 | 124 | (151 | ) | 27,951 | ||||||||||||||||||||
Other asset backed securities | 27,215 | 523 | (48 | ) | 27,690 | ||||||||||||||||||||
Corporate preferred stock | 15 | — | — | 15 | |||||||||||||||||||||
Corporate securities | 18,608 | 151 | (517 | ) | 18,242 | ||||||||||||||||||||
Total | $ | 329,159 | $ | 8,083 | $ | (2,208 | ) | $ | 335,034 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,367 | $ | 304 | $ | (332 | ) | $ | 21,339 | ||||||||||||||||
Obligations of states and political subdivisions | 68,904 | 1,083 | (2,749 | ) | 67,238 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 166,095 | 3,539 | (1,624 | ) | 168,010 | ||||||||||||||||||||
Non-agency | 22,029 | 116 | (211 | ) | 21,934 | ||||||||||||||||||||
Other asset backed securities | 33,883 | 710 | (175 | ) | 34,418 | ||||||||||||||||||||
Corporate preferred stock | 69 | 5 | — | 74 | |||||||||||||||||||||
Corporate securities | 15,680 | 58 | (328 | ) | 15,410 | ||||||||||||||||||||
Total | $ | 328,027 | $ | 5,815 | $ | (5,419 | ) | $ | 328,423 | ||||||||||||||||
The amortized cost and fair value of securities available for sale as of September 30, 2014, by contractual maturity are shown below. Maturities may differ from contractual maturities in corporate and mortgage-backed securities because the securities and mortgages 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, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due in one year or less | $ | 6,564 | $ | 6,629 | |||||||||||||||||||||
Due after one year through five years | 43,635 | 45,418 | |||||||||||||||||||||||
Due after five years through ten years | 39,747 | 39,516 | |||||||||||||||||||||||
Due after ten years | 19,133 | 19,052 | |||||||||||||||||||||||
Mortgage-backed securities | 192,850 | 196,714 | |||||||||||||||||||||||
Other asset backed securities | 27,215 | 27,690 | |||||||||||||||||||||||
Corporate preferred stock | 15 | 15 | |||||||||||||||||||||||
Total | $ | 329,159 | $ | 335,034 | |||||||||||||||||||||
Proceeds from sales of securities during the nine months ended September 30, 2014, were $52.2 million. Gross gains of $679,000 and gross losses of $538,000 were realized on those sales, respectively. The tax expense applicable to these net realized gains amounted to $48,000. | |||||||||||||||||||||||||
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 $163.3 million at September 30, 2014. | |||||||||||||||||||||||||
Investments in an unrealized loss position that are temporarily impaired are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
September 30, 2014 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 9,746 | $ | (116 | ) | $ | 4,254 | $ | (94 | ) | $ | 14,000 | $ | (210 | ) | ||||||||||
Obligations of states and political subdivisions | 2,642 | (14 | ) | 7,209 | (468 | ) | 9,851 | (482 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 26,289 | (306 | ) | 12,507 | (494 | ) | 38,796 | (800 | ) | ||||||||||||||||
Non-agency | 19,317 | (151 | ) | — | — | 19,317 | (151 | ) | |||||||||||||||||
Other asset backed securities | 2,452 | (35 | ) | 1,077 | (13 | ) | 3,529 | (48 | ) | ||||||||||||||||
Corporate preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Corporate securities | 9,293 | (344 | ) | 1,792 | (173 | ) | 11,085 | (517 | ) | ||||||||||||||||
Total | $ | 69,739 | $ | (966 | ) | $ | 26,839 | $ | (1,242 | ) | $ | 96,578 | $ | (2,208 | ) | ||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
December 31, 2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
U.S. government agencies | $ | 10,218 | $ | (273 | ) | $ | 1,416 | $ | (59 | ) | $ | 11,634 | $ | (332 | ) | ||||||||||
Obligations of states and political subdivisions | 24,568 | (2,539 | ) | 1,798 | (210 | ) | 26,366 | (2,749 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 50,048 | (1,264 | ) | 8,228 | (360 | ) | 58,276 | (1,624 | ) | ||||||||||||||||
Non-agency | 14,505 | (152 | ) | 1,351 | (59 | ) | 15,856 | (211 | ) | ||||||||||||||||
Other asset backed securities | 1,585 | (39 | ) | 2,187 | (136 | ) | 3,772 | (175 | ) | ||||||||||||||||
Corporate preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Corporate securities | 6,247 | (274 | ) | 4,446 | (54 | ) | 10,693 | (328 | ) | ||||||||||||||||
Total | $ | 107,171 | $ | (4,541 | ) | $ | 19,426 | $ | (878 | ) | $ | 126,597 | $ | (5,419 | ) | ||||||||||
A total of 93 securities have been identified by the Company as temporarily impaired at September 30, 2014. Of the 93 securities, 92 are investment grade and one is speculative grade. Mortgage-backed securities, municipal securities and corporate securities make up the majority of the gross unrealized losses for temporarily impaired securities at September 30, 2014. Market prices change daily and are affected by conditions beyond the control of the Company. 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 were anticipated or required as of September 30, 2014. Investment decisions reflect the strategic asset/liability objectives of the Company. The investment portfolio is analyzed frequently by the Company and managed to provide an overall positive impact to the Company’s consolidated income statement and balance sheet. | |||||||||||||||||||||||||
Other-than-temporary impairment losses | |||||||||||||||||||||||||
At September 30, 2014, the Company evaluated the investment portfolio for possible other-than-temporary impairment losses and concluded that no adverse change in cash flows occurred 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 the Company will not be required to sell any securities before recovery of amortized cost basis, which may be at maturity. For debt securities related to corporate securities, the Company determined that there was no other adverse change in the cash flows as viewed by a market participant; therefore, the Company does not consider the investments in these assets to be other-than-temporarily impaired at September 30, 2014. However, there is a risk that the Company’s continuing reviews could result in recognition of other-than-temporary impairment charges in the future. For the nine months ended September 30, 2014 and the year ended December 31, 2013, no credit related impairment losses were recognized by the Company. | |||||||||||||||||||||||||
The Company’s investment in FHLB stock totaled $3.1 million at September 30, 2014. FHLB stock is generally viewed as a long-term investment and as a restricted security which is carried at cost because there is no market for the stock other than the FHLB or member institutions. Therefore, when evaluating FHLB stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider this investment to be other-than-temporarily impaired at September 30, 2014, and no impairment has been recognized. FHLB stock is shown in restricted securities on the consolidated balance sheets and is not part of the available for sale portfolio. |
Loans_Net
Loans, Net | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Loans, Net | ' | |||||||||||||||||||||||||||
Loans, Net | ||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Percent of | Outstanding | Percent of | ||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 32,057 | 4.4 | % | $ | 36,025 | 5 | % | ||||||||||||||||||||
Secured by farmland | 17,332 | 2.4 | 16,578 | 2.3 | ||||||||||||||||||||||||
Secured by 1-4 family residential | 267,216 | 36.7 | 273,384 | 37.5 | ||||||||||||||||||||||||
Other real estate loans | 254,686 | 34.9 | 260,333 | 35.7 | ||||||||||||||||||||||||
Commercial loans | 140,555 | 19.3 | 129,554 | 17.8 | ||||||||||||||||||||||||
Consumer loans | 16,906 | 2.3 | 12,606 | 1.7 | ||||||||||||||||||||||||
Total Gross Loans (1) | $ | 728,752 | 100 | % | $ | 728,480 | 100 | % | ||||||||||||||||||||
Less allowance for loan losses | 11,423 | 13,320 | ||||||||||||||||||||||||||
Net loans | $ | 717,329 | $ | 715,160 | ||||||||||||||||||||||||
(1) | Gross loan balances at September 30, 2014 and December 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. | |||||||||||||||||||||||||||
Loans presented in the table above exclude loans held for sale. The Company had no mortgages held for sale at September 30, 2014 and $33.2 million in mortgages held for sale at December 31, 2013. | ||||||||||||||||||||||||||||
The Company sold, on a non-recourse basis, $6.6 million in portfolio loans during the nine months ended September 30, 2014. Of this amount, $5.9 million were on nonaccrual status and $6.3 million were classified as TDRs. Specific reserves associated with these loans totaled $655,000. | ||||||||||||||||||||||||||||
The following tables present a contractual aging of the recorded investment in past due loans by class of loans: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | 76 | $ | 76 | $ | 31,981 | $ | 32,057 | ||||||||||||||||
Secured by farmland | — | — | — | — | 17,332 | 17,332 | ||||||||||||||||||||||
Secured by 1-4 family residential | 629 | — | 748 | 1,377 | 265,839 | 267,216 | ||||||||||||||||||||||
Other real estate loans | — | — | — | — | 254,686 | 254,686 | ||||||||||||||||||||||
Commercial loans | 650 | — | 328 | 978 | 139,577 | 140,555 | ||||||||||||||||||||||
Consumer loans | 1 | 1 | 3 | 5 | 16,901 | 16,906 | ||||||||||||||||||||||
Total | $ | 1,280 | $ | 1 | $ | 1,155 | $ | 2,436 | $ | 726,316 | $ | 728,752 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 76 | $ | 1,649 | $ | 554 | $ | 2,279 | $ | 33,746 | $ | 36,025 | ||||||||||||||||
Secured by farmland | — | — | — | — | 16,578 | 16,578 | ||||||||||||||||||||||
Secured by 1-4 family residential | 590 | 3,751 | 1,022 | 5,363 | 268,021 | 273,384 | ||||||||||||||||||||||
Other real estate loans | 116 | — | 4,197 | 4,313 | 256,020 | 260,333 | ||||||||||||||||||||||
Commercial loans | 162 | 1,513 | 27 | 1,702 | 127,852 | 129,554 | ||||||||||||||||||||||
Consumer loans | 31 | 9 | 38 | 78 | 12,528 | 12,606 | ||||||||||||||||||||||
Total | $ | 975 | $ | 6,922 | $ | 5,838 | $ | 13,735 | $ | 714,745 | $ | 728,480 | ||||||||||||||||
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: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Past due 90 days or more and still accruing | Nonaccrual | Past due 90 days or more and still accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 258 | $ | — | $ | 2,368 | $ | 268 | ||||||||||||||||||||
Secured by 1-4 family residential | 5,265 | — | 9,458 | 539 | ||||||||||||||||||||||||
Other real estate loans | 1,507 | — | 6,045 | — | ||||||||||||||||||||||||
Commercial loans | 299 | 30 | 1,844 | — | ||||||||||||||||||||||||
Consumer loans | 3 | — | 37 | 1 | ||||||||||||||||||||||||
Total | $ | 7,332 | $ | 30 | $ | 19,752 | $ | 808 | ||||||||||||||||||||
If interest on nonaccrual loans had been accrued, such income would have approximated $325,600 and $1.1 million for the nine months ended September 30, 2014 and the year ended December 31, 2013, respectively. The Company sold $6.6 million in loans during the nine months ended September 30, 2014. Of this amount, $5.9 million were on nonaccrual status. | ||||||||||||||||||||||||||||
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”, and “Doubtful”. | ||||||||||||||||||||||||||||
Special Mention: Loans with 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 with well-defined weakness that jeopardize 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 with 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 may be determined. | ||||||||||||||||||||||||||||
Loss: Loans are deemed uncollectible and are charged off immediately. | ||||||||||||||||||||||||||||
The following tables present the recorded investment in loans by class of loan that have been classified according to the internal classification system: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 24,637 | $ | 8,824 | $ | 256,919 | $ | 230,626 | $ | 136,787 | $ | 13,853 | $ | 671,646 | ||||||||||||||
Special Mention | 6,818 | 7,903 | 2,012 | 16,618 | 3,129 | 24 | 36,504 | |||||||||||||||||||||
Substandard | 602 | 605 | 7,740 | 7,442 | 389 | 3,026 | 19,804 | |||||||||||||||||||||
Doubtful | — | — | 545 | — | 250 | 3 | 798 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 32,057 | $ | 17,332 | $ | 267,216 | $ | 254,686 | $ | 140,555 | $ | 16,906 | $ | 728,752 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 31,143 | $ | 8,067 | $ | 253,654 | $ | 238,811 | $ | 126,246 | $ | 12,510 | $ | 670,431 | ||||||||||||||
Special Mention | 2,245 | 7,903 | 1,732 | 9,475 | 775 | 15 | 22,145 | |||||||||||||||||||||
Substandard | 2,090 | 608 | 16,158 | 12,047 | 2,419 | 44 | 33,366 | |||||||||||||||||||||
Doubtful | 547 | — | 1,840 | — | 114 | 37 | 2,538 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 36,025 | $ | 16,578 | $ | 273,384 | $ | 260,333 | $ | 129,554 | $ | 12,606 | $ | 728,480 | ||||||||||||||
The following tables present loans individually evaluated for impairment by class of loan: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 140 | $ | 140 | $ | — | $ | 172 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 2,061 | 2,190 | — | 2,169 | 26 | |||||||||||||||||||||||
Other real estate loans | 3,325 | 3,325 | — | 3,373 | 104 | |||||||||||||||||||||||
Commercial loans | 451 | 451 | — | 456 | 18 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 5,977 | $ | 6,106 | $ | — | $ | 6,170 | $ | 148 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 119 | $ | 119 | $ | 69 | $ | 125 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,965 | 4,017 | 1,141 | 3,978 | 12 | |||||||||||||||||||||||
Other real estate loans | 1,253 | 1,253 | 305 | 1,266 | 69 | |||||||||||||||||||||||
Commercial loans | 421 | 421 | 309 | 794 | 8 | |||||||||||||||||||||||
Consumer loans | 3,003 | 3,003 | 630 | 3,002 | 128 | |||||||||||||||||||||||
Total with a related allowance | $ | 8,761 | $ | 8,813 | $ | 2,454 | $ | 9,165 | $ | 217 | ||||||||||||||||||
Total | $ | 14,738 | $ | 14,919 | $ | 2,454 | $ | 15,335 | $ | 365 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,924 | $ | 2,475 | $ | — | $ | 1,975 | $ | 13 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,930 | 4,452 | — | 4,415 | 6 | |||||||||||||||||||||||
Other real estate loans | 4,458 | 4,458 | — | 4,552 | 104 | |||||||||||||||||||||||
Commercial loans | 2,115 | 2,115 | — | 2,267 | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 12,427 | $ | 13,500 | $ | — | $ | 13,209 | $ | 123 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 712 | $ | 712 | $ | 486 | $ | 878 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 6,481 | 6,428 | 3,045 | 6,632 | 47 | |||||||||||||||||||||||
Other real estate loans | 4,684 | 4,684 | 812 | 4,840 | 71 | |||||||||||||||||||||||
Commercial loans | 355 | 377 | 275 | 399 | 10 | |||||||||||||||||||||||
Consumer loans | 37 | 37 | 37 | 39 | — | |||||||||||||||||||||||
Total with a related allowance | $ | 12,269 | $ | 12,238 | $ | 4,655 | $ | 12,788 | $ | 128 | ||||||||||||||||||
Total | $ | 24,696 | $ | 25,738 | $ | 4,655 | $ | 25,997 | $ | 251 | ||||||||||||||||||
The “Recorded Investment” amounts in the table above represent the outstanding principal balance net of charge-offs and nonaccrual payments to interest on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged-off on each loan and nonaccrual payments applied to principal. | ||||||||||||||||||||||||||||
Included in certain loan categories of impaired loans are troubled debt restructurings (“TDRs”). The total balance of TDRs at September 30, 2014 was $7.4 million of which $2.9 million were included in the Company’s nonaccrual loan totals at that date and $4.5 million represented loans performing as agreed according to the restructured terms. This compares with $15.6 million in total restructured loans at December 31, 2013. The amount of the valuation allowance related to TDRs was $730,200 and $2.8 million as of September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||||||
Loan modifications that were classified as TDRs during the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
Loans Modified as TDRs | ||||||||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
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 TDRs | ||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | $ | — | 2 | $ | 557 | $ | 514 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | — | ||||||||||||||||||||||
Secured by 1-4 family residential | 4 | 1,190 | 1,142 | 11 | 3,549 | 3,227 | ||||||||||||||||||||||
Other real estate loans | 1 | 200 | 173 | 5 | 869 | 824 | ||||||||||||||||||||||
Total real estate loans | 5 | $ | 1,390 | $ | 1,315 | 18 | $ | 4,975 | $ | 4,565 | ||||||||||||||||||
Commercial loans | — | — | — | 2 | 517 | 515 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 5 | $ | 1,390 | $ | 1,315 | 20 | $ | 5,492 | $ | 5,080 | ||||||||||||||||||
Of the five TDRs identified during the nine months ended September 30, 2014, two loans had previously been measured under the general allowance methodology of the allowance for loan losses. Upon identifying these loans as TDRs, the Company evaluated them for impairment. Accounting guidance requires prospective application of the impairment measurement for those loans newly identified as impaired. As of September 30, 2014, the recorded investment in the loans restructured during the period for which the allowance was previously measured under the general allowance methodology was $916,000. There was no allowance for loan losses associated with those loans on the basis of a current evaluation of loss. | ||||||||||||||||||||||||||||
Of the five TDRs identified above, one paid off and two were sold totaling $707,000 during the nine months ended September 30, 2014. There were no outstanding commitments to lend additional amounts to troubled debt restructured borrowers at September 30, 2014. | ||||||||||||||||||||||||||||
TDR payment defaults during three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | — | $ | — | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | — | — | ||||||||||||||||||||||||
Other real estate loans | 1 | 91 | — | — | ||||||||||||||||||||||||
Total real estate loans | 1 | $ | 91 | — | $ | — | ||||||||||||||||||||||
Commercial loans | 1 | 49 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 2 | $ | 140 | — | $ | — | ||||||||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | — | $ | — | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | 1 | 712 | ||||||||||||||||||||||||
Other real estate loans | 1 | 91 | — | — | ||||||||||||||||||||||||
Total real estate loans | 1 | $ | 91 | 1 | $ | 712 | ||||||||||||||||||||||
Commercial loans | 1 | 49 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 2 | $ | 140 | 1 | $ | 712 | ||||||||||||||||||||||
For purposes of this disclosure, a TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses | ' | |||||||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||||||||
The following table presents, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), the total loans and loans by impairment methodology(individually evaluated for impairment or collectively evaluated for impairment). | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Adjustment for the sale of majority interest in consolidated subsidiary | — | — | (95 | ) | — | — | — | (95 | ) | |||||||||||||||||||
Charge-offs | (1,187 | ) | — | (1,186 | ) | (748 | ) | (958 | ) | (35 | ) | (4,114 | ) | |||||||||||||||
Recoveries | 181 | — | 321 | 109 | 101 | 90 | 802 | |||||||||||||||||||||
Provision | 582 | 13 | (1,279 | ) | 526 | 1,084 | 584 | 1,510 | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 423 | $ | 179 | $ | 4,495 | $ | 3,393 | $ | 2,117 | $ | 816 | $ | 11,423 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 69 | $ | — | $ | 1,141 | $ | 305 | $ | 309 | $ | 630 | $ | 2,454 | ||||||||||||||
Collectively evaluated for impairment | 354 | 179 | 3,354 | 3,088 | 1,808 | 186 | 8,969 | |||||||||||||||||||||
Total ending allowance balance | $ | 423 | $ | 179 | $ | 4,495 | $ | 3,393 | $ | 2,117 | $ | 816 | $ | 11,423 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 259 | $ | — | $ | 6,026 | $ | 4,578 | $ | 872 | $ | 3,003 | $ | 14,738 | ||||||||||||||
Collectively evaluated for impairment | 31,798 | 17,332 | 261,190 | 250,108 | 139,683 | 13,903 | 714,014 | |||||||||||||||||||||
Total ending loans balance | $ | 32,057 | $ | 17,332 | $ | 267,216 | $ | 254,686 | $ | 140,555 | $ | 16,906 | $ | 728,752 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Charge-offs | (394 | ) | — | (785 | ) | (97 | ) | (75 | ) | (30 | ) | (1,381 | ) | |||||||||||||||
Recoveries | 68 | — | 140 | 37 | 9 | 27 | 281 | |||||||||||||||||||||
Provision | (85 | ) | 31 | 1,103 | (782 | ) | (142 | ) | (16 | ) | 109 | |||||||||||||||||
Balance at December 31, 2013 | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 486 | $ | — | $ | 3,045 | $ | 812 | $ | 275 | $ | 37 | $ | 4,655 | ||||||||||||||
Collectively evaluated for impairment | 361 | 166 | 3,689 | 2,694 | 1,615 | 140 | 8,665 | |||||||||||||||||||||
Total ending allowance balance | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,636 | $ | — | $ | 10,411 | $ | 9,142 | $ | 2,470 | $ | 37 | $ | 24,696 | ||||||||||||||
Collectively evaluated for impairment | 33,389 | 16,578 | 262,973 | 251,191 | 127,084 | 12,569 | 703,784 | |||||||||||||||||||||
Total ending loans balance | $ | 36,025 | $ | 16,578 | $ | 273,384 | $ | 260,333 | $ | 129,554 | $ | 12,606 | $ | 728,480 | ||||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share | ' | |||||||||||||
Earnings Per Share | ||||||||||||||
The following shows the 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. Potential dilutive common stock had no effect on income available to common stockholders. | ||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||||
Earnings per share, basic | 7,108,450 | $ | 0.3 | 7,080,244 | $ | 0.23 | ||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, grants and warrant | 25,812 | — | 37,964 | — | ||||||||||
Earnings per share, diluted | 7,134,262 | $ | 0.3 | 7,118,208 | $ | 0.23 | ||||||||
For the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||||
Earnings per share, basic | 7,099,506 | $ | 0.84 | 7,072,372 | $ | 0.71 | ||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, grants and warrant | 24,669 | — | 32,777 | — | ||||||||||
Earnings per share, diluted | 7,124,175 | $ | 0.84 | 7,105,149 | $ | 0.71 | ||||||||
The warrant and none of the stock options were considered anti-dilutive for the three and nine months ended September 30, 2014. Stock options and restricted stock representing approximately 6,000 shares and 14,833 shares for the three and nine months ended September 30, 2013, 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, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||||||||||||||
Segment Reporting | ||||||||||||||||||||||||||||||||
The Company operates in a decentralized fashion in the following principal business activities: retail banking services; wealth management services; and mortgage banking services. | ||||||||||||||||||||||||||||||||
• | Revenue from retail banking activity 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. | |||||||||||||||||||||||||||||||
• | Revenue from the mortgage banking activities is comprised of interest earned on loans and fees received as a result of the mortgage origination process through the Company's affiliation with Southern Trust Mortgage. The Company recognized gains on the sale of loans as part of other income. On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and as a result, any mortgage banking activity for the Company for the third quarter of 2014 is included with the results of the retail banking segment. Any activity since the sale of Southern Trust Mortgage is considered to be immaterial and incidental to the Company's retail banking activities. The mortgage banking activities will continue to be evaluated and will be separately reported as a distinguishable segment if determined to be of significance to the reader of these financial statements or if the related operating results are believed to meet the quantitative tests for disclosure. Mortgage banking activities for the nine months ended September 30, 2014 are the result of Southern Trust Mortgage activity that was consolidated with the Company through the date of sale. | |||||||||||||||||||||||||||||||
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. Middleburg Bank provided a warehouse line and office space, data processing and accounting services to Southern Trust Mortgage for which it received income. Transactions related to these relationships are eliminated to reach consolidated totals. | ||||||||||||||||||||||||||||||||
The following tables represent reportable segment information for the three and nine months ended September 30, 2014 and 2013, respectively: | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||||
(In Thousands) | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | ||||||||||||||||||||||
Banking | Management | Banking | Banking | Management | Banking | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 10,876 | $ | 4 | $ | — | $ | (90 | ) | $ | 10,790 | $ | 10,750 | $ | 4 | $ | 520 | $ | (320 | ) | $ | 10,954 | ||||||||||
Trust and investment fee income | 193 | 1,158 | — | (38 | ) | 1,313 | — | 1,000 | — | (37 | ) | 963 | ||||||||||||||||||||
Other income | 969 | — | — | (21 | ) | 948 | 899 | — | 4,358 | (92 | ) | 5,165 | ||||||||||||||||||||
Total operating income | 12,038 | 1,162 | — | (149 | ) | 13,051 | 11,649 | 1,004 | 4,878 | (449 | ) | 17,082 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Interest expense | 1,335 | — | — | (90 | ) | 1,245 | 1,574 | — | 380 | (320 | ) | 1,634 | ||||||||||||||||||||
Salaries and employee benefits | 3,877 | 564 | — | — | 4,441 | 4,183 | 393 | 3,174 | — | 7,750 | ||||||||||||||||||||||
Provision for loan losses | 550 | — | — | — | 550 | — | — | 3 | — | 3 | ||||||||||||||||||||||
Other | 3,703 | 287 | — | (59 | ) | 3,931 | 4,240 | 223 | 1,221 | (129 | ) | 5,555 | ||||||||||||||||||||
Total operating expenses | 9,465 | 851 | — | (149 | ) | 10,167 | 9,997 | 616 | 4,778 | (449 | ) | 14,942 | ||||||||||||||||||||
Income before income taxes and non-controlling interest | 2,573 | 311 | — | — | 2,884 | 1,652 | 388 | 100 | — | 2,140 | ||||||||||||||||||||||
Income tax expense | 635 | 128 | — | — | 763 | 440 | 51 | — | — | 491 | ||||||||||||||||||||||
Net Income | 1,938 | 183 | — | — | 2,121 | 1,212 | 337 | 100 | — | 1,649 | ||||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | — | — | — | — | — | (38 | ) | — | (38 | ) | ||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,938 | $ | 183 | $ | — | $ | — | $ | 2,121 | $ | 1,212 | $ | 337 | $ | 62 | $ | — | $ | 1,611 | ||||||||||||
Total assets | $ | 1,322,493 | $ | 12,505 | $ | — | $ | (127,271 | ) | $ | 1,207,727 | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | ||||||||||
Capital expenditures | $ | 307 | $ | 1 | $ | 3 | $ | — | $ | 311 | $ | 693 | $ | 5 | $ | 115 | $ | — | $ | 813 | ||||||||||||
Goodwill and other intangibles | $ | — | $ | 3,850 | $ | — | $ | — | $ | 3,850 | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||
(In Thousands) | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | ||||||||||||||||||||||
Banking | Management | Banking | Banking | Management | Banking | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 32,665 | $ | 11 | $ | 450 | $ | (288 | ) | $ | 32,838 | $ | 32,742 | $ | 11 | $ | 1,398 | $ | (993 | ) | $ | 33,158 | ||||||||||
Trust and investment fee income | 479 | 3,339 | — | (115 | ) | 3,703 | — | 3,052 | — | (115 | ) | 2,937 | ||||||||||||||||||||
Other income | 3,659 | — | 5,121 | (46 | ) | 8,734 | 3,363 | — | 13,161 | (325 | ) | 16,199 | ||||||||||||||||||||
Total operating income | 36,803 | 3,350 | 5,571 | (449 | ) | 45,275 | 36,105 | 3,063 | 14,559 | (1,433 | ) | 52,294 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Interest expense | 4,055 | — | 304 | (288 | ) | 4,071 | 4,956 | — | 1,099 | (993 | ) | 5,062 | ||||||||||||||||||||
Salaries and employee benefits | 11,996 | 1,699 | 3,772 | — | 17,467 | 12,485 | 1,623 | 9,134 | — | 23,242 | ||||||||||||||||||||||
Provision for (recovery of) loan losses | 1,476 | — | 34 | — | 1,510 | (9 | ) | — | 8 | — | (1 | ) | ||||||||||||||||||||
Other | 11,794 | 837 | 1,722 | (161 | ) | 14,192 | 12,930 | 910 | 3,699 | (440 | ) | 17,099 | ||||||||||||||||||||
Total operating expenses | 29,321 | 2,536 | 5,832 | (449 | ) | 37,240 | 30,362 | 2,533 | 13,940 | (1,433 | ) | 45,402 | ||||||||||||||||||||
Income before income taxes and non-controlling interest | 7,482 | 814 | (261 | ) | — | 8,035 | 5,743 | 530 | 619 | — | 6,892 | |||||||||||||||||||||
Income tax expense | 1,847 | 332 | — | — | 2,179 | 1,403 | 225 | — | — | 1,628 | ||||||||||||||||||||||
Net Income | 5,635 | 482 | (261 | ) | — | 5,856 | 4,340 | 305 | 619 | — | 5,264 | |||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | 98 | — | 98 | — | — | (233 | ) | — | (233 | ) | ||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 5,635 | $ | 482 | $ | (163 | ) | $ | — | $ | 5,954 | $ | 4,340 | $ | 305 | $ | 386 | — | $ | 5,031 | ||||||||||||
Total assets | $ | 1,322,493 | $ | 12,505 | $ | — | $ | (127,271 | ) | $ | 1,207,727 | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | ||||||||||
Capital expenditures | $ | 748 | $ | 11 | $ | 3 | $ | — | $ | 762 | $ | 1,144 | $ | 5 | $ | 124 | $ | — | $ | 1,273 | ||||||||||||
Goodwill and other intangibles | $ | — | $ | 3,850 | $ | — | $ | — | $ | 3,850 | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||||
Capital_Purchase_Program
Capital Purchase Program | 9 Months Ended |
Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Capital Purchase Program | ' |
Capital Purchase Program | |
On January 30, 2009, as part of the Capital Purchase Program established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008, the Company entered into a Letter Agreement and Securities Purchase Agreement—Standard Terms (collectively, the “Purchase Agreement”) with the Treasury, pursuant to which the Company sold (i) 22,000 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $2.50 per share, having a liquidation preference of $1,000 per share (the “Preferred Stock”) and (ii) a warrant (the “Warrant”) to purchase 208,202 shares of the Company’s common stock, par value $2.50 per share, at an initial exercise price of $15.85 per share. As a result of the completion of a public stock offering in 2009, the number of shares of common stock underlying the Warrant was reduced by one-half to 104,101 and the Company redeemed all 22,000 shares of Preferred Stock pursuant to the Purchase Agreement. During 2011, the Warrant was sold by the U.S. Treasury at public auction and has not been exercised as of September 30, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
The Company follows 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 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 a recurring basis | |||||||||||||||||||||
The following describes the valuation techniques and inputs used by the Company in determining the fair value of certain assets recorded at fair value on a recurring basis in the financial statements. | |||||||||||||||||||||
Securities Available for Sale | |||||||||||||||||||||
The Company primarily values its investment portfolio using Level II fair value measurements, but may also use Level I or Level III measurements if required by the composition of the portfolio. 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. There has been no activity since May 15, 2014, the date the Company sold its majority interest in Southern Trust Mortgage, and therefore, there were no loans held for sale on the consolidated balance sheet as of September 30, 2014. | |||||||||||||||||||||
Mortgage Interest Rate Locks | |||||||||||||||||||||
The Company recognizes mortgage interest rate locks at fair value. Fair value is based on either (i) the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis or (ii) the observable price for individual loans traded in the secondary market for loans that will be delivered on a mandatory basis. All of the Company's mortgage interest rate locks are classified as Level II. On May 15, 2014, the Company sold its majority interest in Southern Trust Mortgage. Activity subsequent to the sale is deemed immaterial. | |||||||||||||||||||||
Mortgage Banking Hedge Instruments | |||||||||||||||||||||
Mortgage banking hedge instruments are used to mitigate interest rate risk for certain residential mortgage loans held for sale and interest rate locks. These instruments are considered derivatives and are recorded at fair value, based on (i) committed sales prices from investors for commitments to sell mortgage loans or (ii) observable market data inputs for commitments to sell mortgage backed securities. The Company's mortgage banking hedge instruments are classified as Level II. On May 15, 2014, the Company sold its majority interest in Southern Trust Mortgage and on this date, this activity ceased. | |||||||||||||||||||||
Interest Rate Swaps | |||||||||||||||||||||
Interest rate swaps are recorded at fair value based on third party vendors who compile prices from various sources and may determine 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). On May 15, 2014, the Company sold its majority interest in Southern Trust Mortgage and on this date, mortgage servicing rights ceased. | |||||||||||||||||||||
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 32,363 | $ | — | $ | 32,363 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 60,010 | — | 60,010 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 168,763 | — | 168,763 | — | |||||||||||||||||
Non-agency | 27,951 | — | 27,951 | — | |||||||||||||||||
Other asset backed securities | 27,690 | — | 27,690 | — | |||||||||||||||||
Corporate preferred stock | 15 | — | 15 | — | |||||||||||||||||
Corporate securities | 18,242 | — | 17,752 | 490 | |||||||||||||||||
Mortgage loans held for sale | 5,344 | — | 5,344 | — | |||||||||||||||||
Interest rate swaps | 164 | — | 164 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 248 | — | 248 | — | |||||||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 21,339 | $ | — | $ | 21,339 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 67,238 | — | 67,238 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 168,010 | — | 168,010 | — | |||||||||||||||||
Non-agency | 21,934 | — | 21,934 | — | |||||||||||||||||
Other asset backed securities | 34,418 | — | 34,418 | — | |||||||||||||||||
Corporate preferred stock | 74 | — | 74 | — | |||||||||||||||||
Corporate securities | 15,410 | — | 14,922 | 488 | |||||||||||||||||
Mortgage loans held for sale | 33,175 | — | 33,175 | — | |||||||||||||||||
Mortgage interest rate locks | 16 | — | 16 | — | |||||||||||||||||
Interest rate swaps | 334 | — | 334 | — | |||||||||||||||||
Mortgage servicing rights | 203 | — | 203 | — | |||||||||||||||||
Mortgage banking hedge instruments | 202 | — | 202 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 303 | — | 303 | — | |||||||||||||||||
The following table presents changes in Level III assets measured at fair value on a recurring basis during the nine months ended September 30, 2014: | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Description | Balance | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance | ||||||||||||||||
31-Dec-13 | 30-Sep-14 | ||||||||||||||||||||
Available for sale securities - corporate securities | $ | 488 | $ | — | $ | 2 | $ | — | $ | 490 | |||||||||||
The following table presents quantitative information as of September 30, 2014 and December 31, 2013 related to Level III fair value measurements for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Corporate securities | $ | 490 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | |||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Corporate securities | $ | 488 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | |||||||||||||||||
Measured on nonrecurring basis | |||||||||||||||||||||
The Company may be required, from time to time, to measure and recognize certain other assets at fair value on a nonrecurring basis in accordance with GAAP. The following describes the valuation techniques and inputs used by the Company in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the 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 collateral. Fair value is measured based on the value of the collateral securing the loans. 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 outside of the Company 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's 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 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 performed at origination as the basis for the collateral value. When collateral-dependent loans are considered nonperforming, they are reviewed to determine the next appropriate course of action, either foreclosure or modification with forbearance agreement. The loans would then be reappraised prior to foreclosure or before a forbearance agreement is executed. 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 the original appraisal and an updated appraisal is to review annual tax assessment records. At this time, adjustments are made, if necessary. Information considered in the determination not to order an updated appraisal includes the availability and reliability of tax assessment records and significant changes in capitalization rates for income properties. Other facts and circumstances on a case-by-case basis may be considered relative to a decision not to order an updated appraisal. If, in the judgment of management, a reliable collateral value cannot be obtained by an alternative method, an updated appraisal would be obtained. | |||||||||||||||||||||
Circumstances that may warrant a reappraisal for nonperforming loans might include foreclosure proceedings or a material adverse change in the borrower's condition or that of the collateral underlying the loan. In some cases, management may decide that an updated appraisal for a nonperforming loan is not necessary, In such cases, an estimate of the fair value of the collateral would be made by management by reference to current tax assessments, the latest appraised value, and knowledge of collateral value fluctuations in a loan's market area. If, in management's judgment, a reliable collateral value cannot be obtained by an alternative method, an updated appraisal would be obtained. | |||||||||||||||||||||
For the purpose of evaluating the allowance for loan losses, new appraisals are discounted 10% for estimated selling costs when determining the amount of specific reserves. 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 necessary, new appraisals are obtained. If an appraisal is less than 12 months old, the only adjustment made 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. | |||||||||||||||||||||
Other Real Estate Owned | |||||||||||||||||||||
The value of other real estate owned (“OREO”) is determined utilizing a 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 that may be in construction, 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. 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 10% for selling costs and it is the policy of the Company to obtain annual appraisals for properties held in OREO. Any fair value adjustments are recorded in the period incurred as loss on other real estate owned on the consolidated statements of income. | |||||||||||||||||||||
Repossessed Assets | |||||||||||||||||||||
The value of repossessed assets is determined by the Company based on marketability and other factors and is considered Level III. | |||||||||||||||||||||
The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period. | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 6,307 | $ | — | $ | 1,396 | $ | 4,911 | |||||||||||||
Other real estate owned | $ | 5,064 | $ | — | $ | 5,064 | $ | — | |||||||||||||
Repossessed assets | $ | 1,132 | $ | — | $ | — | $ | 1,132 | |||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 7,614 | $ | — | $ | 5,756 | $ | 1,858 | |||||||||||||
Other real estate owned | $ | 3,424 | $ | — | $ | 3,424 | $ | — | |||||||||||||
The following table presents quantitative information as of September 30, 2014 and December 31, 2013 about Level III fair value measurements for assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||
September 30, 2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 4,911 | Discounted appraised value | Discount for selling costs and age of appraisals | 0% - 100% (7%) | ||||||||||||||||
Repossessed assets | $ | 1,132 | Market analysis | Historical sales activity | 50% | ||||||||||||||||
31-Dec-13 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 1,858 | Discounted appraised value | Discount for selling costs and age of appraisals. | 0% - 100% (4%) | ||||||||||||||||
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 (not previously described) for which it is practicable to estimate that value: | |||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||
For cash and cash equivalents, the carrying amount is a reasonable estimate of fair value. | |||||||||||||||||||||
Loans, Net | |||||||||||||||||||||
For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. For fixed rate loans, 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. Fair value for impaired loans is described above. | |||||||||||||||||||||
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 is equal to the rate currently offered on similar products. | |||||||||||||||||||||
Securities Sold Under Agreements to Repurchase and Short-Term Debt | |||||||||||||||||||||
The carrying amounts approximate fair values. | |||||||||||||||||||||
FHLB Borrowings and Subordinated Debt | |||||||||||||||||||||
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, 2014 and December 31, 2013, the fair values of loan commitments and standby letters of credit were deemed immaterial; therefore, they have not been included in the tables below. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments are as follows: | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 79,125 | $ | 79,125 | $ | 79,125 | $ | — | $ | — | |||||||||||
Securities available for sale | 335,034 | 335,034 | — | 334,544 | 490 | ||||||||||||||||
Loans held for sale | — | — | — | — | — | ||||||||||||||||
Loans, net | 717,329 | 726,311 | — | 1,396 | 724,915 | ||||||||||||||||
Bank owned life insurance | 22,450 | 22,450 | — | 22,450 | — | ||||||||||||||||
Accrued interest receivable | 3,964 | 3,964 | — | 3,964 | — | ||||||||||||||||
Interest rate swaps | 164 | 164 | — | 164 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 986,566 | $ | 987,276 | $ | — | $ | 987,276 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 36,469 | 36,469 | — | 36,469 | — | ||||||||||||||||
FHLB borrowings | 45,000 | 45,275 | — | 45,275 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,186 | — | 5,186 | — | ||||||||||||||||
Accrued interest payable | 378 | 378 | — | 378 | — | ||||||||||||||||
Interest rate swaps | 248 | 248 | — | 248 | — | ||||||||||||||||
(Dollars in thousands) | 31-Dec-13 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 67,343 | $ | 67,343 | $ | 67,343 | $ | — | $ | — | |||||||||||
Securities available for sale | 328,423 | 328,423 | — | 327,935 | 488 | ||||||||||||||||
Loans held for sale | 33,175 | 33,175 | — | 33,175 | — | ||||||||||||||||
Net loans | 715,160 | 726,239 | — | 5,756 | 720,483 | ||||||||||||||||
Bank-owned life insurance | 21,955 | 21,955 | — | 21,955 | — | ||||||||||||||||
Accrued interest receivable | 3,992 | 3,992 | — | 3,992 | — | ||||||||||||||||
Mortgage interest rate locks | 16 | 16 | — | 16 | — | ||||||||||||||||
Interest rate swap | 334 | 334 | — | 334 | — | ||||||||||||||||
Mortgage banking hedge instruments | 202 | 202 | — | 202 | — | ||||||||||||||||
Mortgage servicing rights | 203 | 203 | — | 203 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 982,396 | $ | 984,420 | $ | — | $ | 984,420 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 34,539 | 34,539 | — | 34,539 | — | ||||||||||||||||
FHLB borrowings and other debt | 80,000 | 80,666 | — | 80,666 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,198 | — | 5,198 | — | ||||||||||||||||
Accrued interest payable | 501 | 501 | — | 501 | — | ||||||||||||||||
Interest rate swap | 303 | 303 | — | 303 | — | ||||||||||||||||
The Company assumes interest rate risk 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, which 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, 2014 | |
Accounting Policies [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In January 2014, the FASB issued ASU 2014-01, “Investments-Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this ASU should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this ASU are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company is currently assessing the impact that ASU 2014-01 will have on its consolidated financial statements. | |
In January 2014, the FASB issued ASU 2014-04, “Receivables-Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force).” The amendments in this ASU clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently assessing the impact that ASU 2014-04 will have on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-10, “Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation”. The amendments in this ASU remove all incremental financial reporting requirements from U.S. GAAP for development stage entities, including the removal of Topic 915, “Development Stage Entities”, from the FASB Accounting Standards Codification. In addition, this ASU adds an example disclosure and removes an exception provided to development stage entities in Topic 810, “Consolidation”, for determining whether an entity is a variable interest entity. The presentation and disclosure requirements in Topic 915 will no longer be required for the first annual period beginning after December 15, 2014. The revised consolidation standards are effective for annual periods beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-10 to have a material impact on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-11, “Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures”. This ASU aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. The new guidance eliminates sale accounting for repurchase-to-maturity transactions and supersedes the guidance under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement. The amendments in the ASU also require a new disclosure for transactions economically similar to repurchase agreements in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets throughout the term of the transaction. Additional disclosures will be required for the nature of collateral pledged in repurchase agreements and similar transactions accounted for as secured borrowings. The amendments in this ASU are effective for the first interim or annual period beginning after December 15, 2014; however, the disclosure for transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and interim periods beginning after March 15, 2015. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-11 will have on its consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation - Stock Compensation (Topic 718)”, should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-14, “Receivables - Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure”. The amendments in this ASU apply to creditors that hold government-guaranteed mortgage loans and is intended to eliminate the diversity in practice related to the classification of these guaranteed loans upon foreclosure. The new guidance stipulates that a mortgage loan be derecognized and a separate other receivable be recognized upon foreclosure if (1) the loan has a government guarantee that is not separable from the loan prior to foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the other receivable should be measured on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2014. Entities may adopt the amendments on a prospective basis or modified retrospective basis as of the beginning of the annual period of adoption; however, the entity must apply the same method of transition as elected under ASU 2014-04. Early adoption is permitted provided the entity has already adopted ASU 2014-04. The Company is currently assessing the impact that ASU 2014-14 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. This update is intended to provide guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. Management is required under the new guidance to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued when preparing financial statements for each interim and annual reporting period. If conditions or events are identified, the ASU specifies the process that must be followed by management and also clarifies the timing and content of going concern footnote disclosures in order to reduce diversity in practice. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-15 to have a material impact on its consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||
Accumulated Other Comprehensive Income | ||||||||||||
Changes in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 were: | ||||||||||||
(Dollars in thousands) | Unrealized Gains on Securities | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||
Balance December 31, 2012 | $ | 6,771 | $ | (304 | ) | $ | 6,467 | |||||
Unrealized holding losses (net of tax, $2,870) | (5,572 | ) | — | (5,572 | ) | |||||||
Reclassification adjustment (net of tax, $135) | (262 | ) | — | (262 | ) | |||||||
Unrealized gain on interest rate swaps (net of tax, $103) | — | 200 | 200 | |||||||||
Balance September 30, 2013 | $ | 937 | $ | (104 | ) | $ | 833 | |||||
Balance December 31, 2013 | $ | 261 | $ | (29 | ) | $ | 232 | |||||
Unrealized holding gains (net of tax of $1,911) | 3,710 | — | 3,710 | |||||||||
Reclassification adjustment (net of tax, $48) | (93 | ) | — | (93 | ) | |||||||
Unrealized loss on interest rate swap (net of tax, $14) | — | (27 | ) | (27 | ) | |||||||
Balance September 30, 2014 | $ | 3,878 | $ | (56 | ) | $ | 3,822 | |||||
The following table presents information related to reclassifications from accumulated other comprehensive income: | ||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
For the Three Months Ended September 30, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (12 | ) | $ | (23 | ) | Gain on securities available for sale | |||||
Related income tax expense | 4 | 8 | Income tax expense | |||||||||
Derivatives (2): | ||||||||||||
Gain on interest rate swap ineffectiveness | (8 | ) | — | Other operating expenses | ||||||||
Related income tax expense | 3 | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income | (13 | ) | (15 | ) | Net of tax | |||||||
Total reclassifications | $ | (13 | ) | $ | (15 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities". | ||||||||||||
(2) For more information related to unrealized losses on derivatives, see Note 12, "Derivatives". | ||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
For the Nine Months Ended September 30, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (141 | ) | $ | (397 | ) | Gain on securities available for sale | |||||
Related income tax expense | 48 | 135 | Income tax expense | |||||||||
Derivatives (2): | ||||||||||||
Loss (gain) on interest rate swap ineffectiveness | — | — | Other operating expenses | |||||||||
Related income tax expense | — | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income | (93 | ) | (262 | ) | Net of tax | |||||||
Total reclassifications | $ | (93 | ) | $ | (262 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities". | ||||||||||||
(2) For more information related to unrealized losses on derivatives, see Note 12, "Derivatives". |
Derivatives
Derivatives | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||
Derivatives | ' | ||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||
The Company utilizes derivative instruments as a part of its asset-liability management program to control fluctuation of market values and cash flows to changes in interest rates associated with certain financial instruments. The Company accounts for derivatives in accordance with ASC 815, "Derivatives and Hedging". Under current guidance, derivative transactions are classified as either cash flow hedges or fair value hedges or they are not designated as hedging instruments. The Company designates each derivative instrument at the inception of the derivative transaction in accordance with this guidance. Information concerning each of the Company's categories of derivatives as of September 30, 2014 and December 31, 2013 is presented below. | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||
During 2010, the Company entered into an interest rate swap agreement as part of the interest rate risk management process. The swap was designated as a cash flow hedge intended to hedge the variability of cash flows associated with the Company’s trust preferred capital securities. The swap hedges the cash flow associated with the trust preferred capital notes wherein the Company receives a floating rate based on LIBOR from a counterparty and pays a fixed rate of 2.59% to the same counterparty. The swap is calculated on a notional amount of $5.2 million. The term of the swap is 10 years and commenced on October 23, 2010. The swap was entered into with a counterparty that met the Company’s credit standards and the agreement contains collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. | |||||||||||||||||||||||
During 2013, the Company entered into an interest rate swap agreement as part of the interest rate risk management process. The swap has been designated as a cash flow hedge intended to hedge the variability of cash flows associated with the Company’s FHLB borrowings. The swap hedges the cash flows associated with the FHLB borrowings wherein the Company receives a floating rate based on LIBOR from a counterparty and pays a fixed rate of 1.43% to the same counterparty. The swap is calculated on a notional amount of $10.0 million. The term of the swap is 5 years and commenced on November 25, 2013. The swap was entered into with a counterparty that met the Company’s credit standards and the agreement contains collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in the contract is not significant. | |||||||||||||||||||||||
Amounts receivable or payable are recognized as accrued under the terms of the agreement, with the effective portion of the derivative’s unrealized gain or loss recorded as a component of other comprehensive income. The ineffective portion of the unrealized gain or loss, if any, would be recorded in other income or other expense. The Company has assessed the effectiveness of the hedging relationship by comparing the changes in cash flows on the designated hedged item. As a result of this assessment, there was no hedge ineffectiveness identified for the nine months ended September 30, 2014 or the year ended December 31, 2013. | |||||||||||||||||||||||
The amounts included in accumulated other comprehensive income (loss) as unrealized losses (market value net of tax) were $55,800 and $29,100 as of September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||
Information concerning the derivative designated as a cash flow hedge at September 30, 2014 and December 31, 2013 is presented in the following tables: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 142 | 0.23 | % | 2.59 | % | 6.1 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | 58 | $ | — | 0.15 | % | 1.43 | % | 4.2 | |||||||||||
31-Dec-13 | |||||||||||||||||||||||
Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 72 | 0.32 | % | 2.59 | % | 6.8 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | 102 | $ | — | 0.17 | % | 1.43 | % | 5 | |||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Two-way client loan swaps | |||||||||||||||||||||||
During the fourth quarter of 2012, the Company entered into certain interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which we enter into an interest rate swap with a customer while at the same time entering into an offsetting interest rate swap with another financial institution. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on an identical notional amount at a fixed interest rate. At the same time, the Company agrees to pay the counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The transaction allows our clients to effectively convert a variable rate loan into a fixed rate loan. Because the Company acts as an intermediary for our customers, changes in the fair value of the underlying derivatives contracts offset each other and do not significantly impact our results of operations. The Company had no undesignated interest rate swaps at September 30, 2014 and December 31, 2013. | |||||||||||||||||||||||
Certain additional risks arise from interest rate swap contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. We do not expect any counterparty to fail to meet its obligations. | |||||||||||||||||||||||
Information concerning two-way client interest rate swaps not designated as either fair value or cash flow hedges is presented in the following table: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,061 | $ | — | $ | 106 | 1 month | 3.9 | % | 13.2 | ||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,061 | 106 | — | 3.9 | % | 1 month | 13.2 | |||||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Total derivatives not designated | $ | 8,122 | $ | 106 | $ | 106 | 13.2 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,235 | $ | — | $ | 232 | 1 month | 3.9 | % | 13.9 | ||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,235 | 232 | — | 3.9 | % | 1 month | 13.9 | |||||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Total derivatives not designated | $ | 8,470 | $ | 232 | $ | 232 | 13.9 | ||||||||||||||||
ShareBased_Compensation_Plan_T
Share-Based Compensation Plan (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Restricted stock service awards awarded under the 2006 Equity Compensation Plan | ' | ||||||||||
The following table summarizes restricted stock service and performance awards under the 2006 Equity Compensation Plan: | |||||||||||
30-Sep-14 | |||||||||||
Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | |||||||||
(in thousands) | |||||||||||
Non-vested at December 31, 2013 | 119,250 | $ | 16.39 | ||||||||
Granted | 39,533 | 17.45 | |||||||||
Vested | (15,425 | ) | 15.57 | ||||||||
Forfeited | (11,250 | ) | 16.05 | ||||||||
Non-vested at September 30, 2014 | 132,108 | $ | 16.83 | $ | 2,344 | ||||||
Stock options outstanding activity | ' | ||||||||||
The following table summarizes options outstanding under the 2006 Equity Compensation Plan and remaining outstanding unexercised options under the 1997 Stock Incentive Plan. | |||||||||||
30-Sep-14 | |||||||||||
Shares | Weighted-Average Exercise Price | Aggregate Intrinsic Value | |||||||||
(in thousands) | |||||||||||
Outstanding at December 31, 2013 | 58,513 | $ | 15.3 | $ | 160 | ||||||
Granted | — | — | — | ||||||||
Exercised | (19,772 | ) | 14 | 74 | |||||||
Forfeited | (3,000 | ) | 39.4 | — | |||||||
Outstanding at September 30, 2014 | 35,741 | $ | 14 | $ | 134 | ||||||
Options exercisable at September 30, 2014 | 35,741 | $ | 14 | $ | 134 | ||||||
Schedule of options outstanding and exercisable | ' | ||||||||||
As of September 30, 2014, options outstanding and exercisable are summarized as follows: | |||||||||||
Exercise Prices | Options Outstanding | Weighted-Average Remaining Contractual Life (years) | Options Exercisable | ||||||||
$ | 14 | 30,741 | 4.45 | 30,741 | |||||||
$ | 14 | 5,000 | 5.09 | 5,000 | |||||||
$ | 14 | 35,741 | 4.52 | 35,741 | |||||||
Securities_Tables
Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
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 are summarized as follows: | |||||||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 32,330 | $ | 243 | $ | (210 | ) | $ | 32,363 | ||||||||||||||||
Obligations of states and political subdivisions | 58,141 | 2,351 | (482 | ) | 60,010 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 164,872 | 4,691 | (800 | ) | 168,763 | ||||||||||||||||||||
Non-agency | 27,978 | 124 | (151 | ) | 27,951 | ||||||||||||||||||||
Other asset backed securities | 27,215 | 523 | (48 | ) | 27,690 | ||||||||||||||||||||
Corporate preferred stock | 15 | — | — | 15 | |||||||||||||||||||||
Corporate securities | 18,608 | 151 | (517 | ) | 18,242 | ||||||||||||||||||||
Total | $ | 329,159 | $ | 8,083 | $ | (2,208 | ) | $ | 335,034 | ||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 21,367 | $ | 304 | $ | (332 | ) | $ | 21,339 | ||||||||||||||||
Obligations of states and political subdivisions | 68,904 | 1,083 | (2,749 | ) | 67,238 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 166,095 | 3,539 | (1,624 | ) | 168,010 | ||||||||||||||||||||
Non-agency | 22,029 | 116 | (211 | ) | 21,934 | ||||||||||||||||||||
Other asset backed securities | 33,883 | 710 | (175 | ) | 34,418 | ||||||||||||||||||||
Corporate preferred stock | 69 | 5 | — | 74 | |||||||||||||||||||||
Corporate securities | 15,680 | 58 | (328 | ) | 15,410 | ||||||||||||||||||||
Total | $ | 328,027 | $ | 5,815 | $ | (5,419 | ) | $ | 328,423 | ||||||||||||||||
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, 2014, by contractual maturity are shown below. Maturities may differ from contractual maturities in corporate and mortgage-backed securities because the securities and mortgages 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, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due in one year or less | $ | 6,564 | $ | 6,629 | |||||||||||||||||||||
Due after one year through five years | 43,635 | 45,418 | |||||||||||||||||||||||
Due after five years through ten years | 39,747 | 39,516 | |||||||||||||||||||||||
Due after ten years | 19,133 | 19,052 | |||||||||||||||||||||||
Mortgage-backed securities | 192,850 | 196,714 | |||||||||||||||||||||||
Other asset backed securities | 27,215 | 27,690 | |||||||||||||||||||||||
Corporate preferred stock | 15 | 15 | |||||||||||||||||||||||
Total | $ | 329,159 | $ | 335,034 | |||||||||||||||||||||
Investments in continuous unrealized loss position | ' | ||||||||||||||||||||||||
Investments in an unrealized loss position that are temporarily impaired are as follows: | |||||||||||||||||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
September 30, 2014 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
U.S. government agencies | $ | 9,746 | $ | (116 | ) | $ | 4,254 | $ | (94 | ) | $ | 14,000 | $ | (210 | ) | ||||||||||
Obligations of states and political subdivisions | 2,642 | (14 | ) | 7,209 | (468 | ) | 9,851 | (482 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 26,289 | (306 | ) | 12,507 | (494 | ) | 38,796 | (800 | ) | ||||||||||||||||
Non-agency | 19,317 | (151 | ) | — | — | 19,317 | (151 | ) | |||||||||||||||||
Other asset backed securities | 2,452 | (35 | ) | 1,077 | (13 | ) | 3,529 | (48 | ) | ||||||||||||||||
Corporate preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Corporate securities | 9,293 | (344 | ) | 1,792 | (173 | ) | 11,085 | (517 | ) | ||||||||||||||||
Total | $ | 69,739 | $ | (966 | ) | $ | 26,839 | $ | (1,242 | ) | $ | 96,578 | $ | (2,208 | ) | ||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
December 31, 2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
U.S. government agencies | $ | 10,218 | $ | (273 | ) | $ | 1,416 | $ | (59 | ) | $ | 11,634 | $ | (332 | ) | ||||||||||
Obligations of states and political subdivisions | 24,568 | (2,539 | ) | 1,798 | (210 | ) | 26,366 | (2,749 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 50,048 | (1,264 | ) | 8,228 | (360 | ) | 58,276 | (1,624 | ) | ||||||||||||||||
Non-agency | 14,505 | (152 | ) | 1,351 | (59 | ) | 15,856 | (211 | ) | ||||||||||||||||
Other asset backed securities | 1,585 | (39 | ) | 2,187 | (136 | ) | 3,772 | (175 | ) | ||||||||||||||||
Corporate preferred stock | — | — | — | — | — | — | |||||||||||||||||||
Corporate securities | 6,247 | (274 | ) | 4,446 | (54 | ) | 10,693 | (328 | ) | ||||||||||||||||
Total | $ | 107,171 | $ | (4,541 | ) | $ | 19,426 | $ | (878 | ) | $ | 126,597 | $ | (5,419 | ) | ||||||||||
Loans_Net_Tables
Loans, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ' | |||||||||||||||||||||||||||
Consolidated loan portfolio | ' | |||||||||||||||||||||||||||
The consolidated loan portfolio was composed of the following: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Percent of | Outstanding | Percent of | ||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 32,057 | 4.4 | % | $ | 36,025 | 5 | % | ||||||||||||||||||||
Secured by farmland | 17,332 | 2.4 | 16,578 | 2.3 | ||||||||||||||||||||||||
Secured by 1-4 family residential | 267,216 | 36.7 | 273,384 | 37.5 | ||||||||||||||||||||||||
Other real estate loans | 254,686 | 34.9 | 260,333 | 35.7 | ||||||||||||||||||||||||
Commercial loans | 140,555 | 19.3 | 129,554 | 17.8 | ||||||||||||||||||||||||
Consumer loans | 16,906 | 2.3 | 12,606 | 1.7 | ||||||||||||||||||||||||
Total Gross Loans (1) | $ | 728,752 | 100 | % | $ | 728,480 | 100 | % | ||||||||||||||||||||
Less allowance for loan losses | 11,423 | 13,320 | ||||||||||||||||||||||||||
Net loans | $ | 717,329 | $ | 715,160 | ||||||||||||||||||||||||
(1) | Gross loan balances at September 30, 2014 and December 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. | |||||||||||||||||||||||||||
Past due loans by class of loans | ' | |||||||||||||||||||||||||||
The following tables present a contractual aging of the recorded investment in past due loans by class of loans: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | — | $ | — | $ | 76 | $ | 76 | $ | 31,981 | $ | 32,057 | ||||||||||||||||
Secured by farmland | — | — | — | — | 17,332 | 17,332 | ||||||||||||||||||||||
Secured by 1-4 family residential | 629 | — | 748 | 1,377 | 265,839 | 267,216 | ||||||||||||||||||||||
Other real estate loans | — | — | — | — | 254,686 | 254,686 | ||||||||||||||||||||||
Commercial loans | 650 | — | 328 | 978 | 139,577 | 140,555 | ||||||||||||||||||||||
Consumer loans | 1 | 1 | 3 | 5 | 16,901 | 16,906 | ||||||||||||||||||||||
Total | $ | 1,280 | $ | 1 | $ | 1,155 | $ | 2,436 | $ | 726,316 | $ | 728,752 | ||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days Or Greater | Total Past Due | Current | Total Loans | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 76 | $ | 1,649 | $ | 554 | $ | 2,279 | $ | 33,746 | $ | 36,025 | ||||||||||||||||
Secured by farmland | — | — | — | — | 16,578 | 16,578 | ||||||||||||||||||||||
Secured by 1-4 family residential | 590 | 3,751 | 1,022 | 5,363 | 268,021 | 273,384 | ||||||||||||||||||||||
Other real estate loans | 116 | — | 4,197 | 4,313 | 256,020 | 260,333 | ||||||||||||||||||||||
Commercial loans | 162 | 1,513 | 27 | 1,702 | 127,852 | 129,554 | ||||||||||||||||||||||
Consumer loans | 31 | 9 | 38 | 78 | 12,528 | 12,606 | ||||||||||||||||||||||
Total | $ | 975 | $ | 6,922 | $ | 5,838 | $ | 13,735 | $ | 714,745 | $ | 728,480 | ||||||||||||||||
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: | ||||||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Nonaccrual | Past due 90 days or more and still accruing | Nonaccrual | Past due 90 days or more and still accruing | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 258 | $ | — | $ | 2,368 | $ | 268 | ||||||||||||||||||||
Secured by 1-4 family residential | 5,265 | — | 9,458 | 539 | ||||||||||||||||||||||||
Other real estate loans | 1,507 | — | 6,045 | — | ||||||||||||||||||||||||
Commercial loans | 299 | 30 | 1,844 | — | ||||||||||||||||||||||||
Consumer loans | 3 | — | 37 | 1 | ||||||||||||||||||||||||
Total | $ | 7,332 | $ | 30 | $ | 19,752 | $ | 808 | ||||||||||||||||||||
Summary of loan classifications by class of loan | ' | |||||||||||||||||||||||||||
The following tables present the recorded investment in loans by class of loan that have been classified according to the internal classification system: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 24,637 | $ | 8,824 | $ | 256,919 | $ | 230,626 | $ | 136,787 | $ | 13,853 | $ | 671,646 | ||||||||||||||
Special Mention | 6,818 | 7,903 | 2,012 | 16,618 | 3,129 | 24 | 36,504 | |||||||||||||||||||||
Substandard | 602 | 605 | 7,740 | 7,442 | 389 | 3,026 | 19,804 | |||||||||||||||||||||
Doubtful | — | — | 545 | — | 250 | 3 | 798 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 32,057 | $ | 17,332 | $ | 267,216 | $ | 254,686 | $ | 140,555 | $ | 16,906 | $ | 728,752 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Pass | $ | 31,143 | $ | 8,067 | $ | 253,654 | $ | 238,811 | $ | 126,246 | $ | 12,510 | $ | 670,431 | ||||||||||||||
Special Mention | 2,245 | 7,903 | 1,732 | 9,475 | 775 | 15 | 22,145 | |||||||||||||||||||||
Substandard | 2,090 | 608 | 16,158 | 12,047 | 2,419 | 44 | 33,366 | |||||||||||||||||||||
Doubtful | 547 | — | 1,840 | — | 114 | 37 | 2,538 | |||||||||||||||||||||
Loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Ending Balance | $ | 36,025 | $ | 16,578 | $ | 273,384 | $ | 260,333 | $ | 129,554 | $ | 12,606 | $ | 728,480 | ||||||||||||||
Loans identified as impaired by class of loan | ' | |||||||||||||||||||||||||||
The following tables present loans individually evaluated for impairment by class of loan: | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 140 | $ | 140 | $ | — | $ | 172 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 2,061 | 2,190 | — | 2,169 | 26 | |||||||||||||||||||||||
Other real estate loans | 3,325 | 3,325 | — | 3,373 | 104 | |||||||||||||||||||||||
Commercial loans | 451 | 451 | — | 456 | 18 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 5,977 | $ | 6,106 | $ | — | $ | 6,170 | $ | 148 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 119 | $ | 119 | $ | 69 | $ | 125 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,965 | 4,017 | 1,141 | 3,978 | 12 | |||||||||||||||||||||||
Other real estate loans | 1,253 | 1,253 | 305 | 1,266 | 69 | |||||||||||||||||||||||
Commercial loans | 421 | 421 | 309 | 794 | 8 | |||||||||||||||||||||||
Consumer loans | 3,003 | 3,003 | 630 | 3,002 | 128 | |||||||||||||||||||||||
Total with a related allowance | $ | 8,761 | $ | 8,813 | $ | 2,454 | $ | 9,165 | $ | 217 | ||||||||||||||||||
Total | $ | 14,738 | $ | 14,919 | $ | 2,454 | $ | 15,335 | $ | 365 | ||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Recorded Investment | Unpaid Principal Balance | Related Allowance | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 1,924 | $ | 2,475 | $ | — | $ | 1,975 | $ | 13 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,930 | 4,452 | — | 4,415 | 6 | |||||||||||||||||||||||
Other real estate loans | 4,458 | 4,458 | — | 4,552 | 104 | |||||||||||||||||||||||
Commercial loans | 2,115 | 2,115 | — | 2,267 | — | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 12,427 | $ | 13,500 | $ | — | $ | 13,209 | $ | 123 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 712 | $ | 712 | $ | 486 | $ | 878 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 6,481 | 6,428 | 3,045 | 6,632 | 47 | |||||||||||||||||||||||
Other real estate loans | 4,684 | 4,684 | 812 | 4,840 | 71 | |||||||||||||||||||||||
Commercial loans | 355 | 377 | 275 | 399 | 10 | |||||||||||||||||||||||
Consumer loans | 37 | 37 | 37 | 39 | — | |||||||||||||||||||||||
Total with a related allowance | $ | 12,269 | $ | 12,238 | $ | 4,655 | $ | 12,788 | $ | 128 | ||||||||||||||||||
Total | $ | 24,696 | $ | 25,738 | $ | 4,655 | $ | 25,997 | $ | 251 | ||||||||||||||||||
Loans modified in TDR by class of loan | ' | |||||||||||||||||||||||||||
TDR payment defaults during three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | — | $ | — | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | — | — | ||||||||||||||||||||||||
Other real estate loans | 1 | 91 | — | — | ||||||||||||||||||||||||
Total real estate loans | 1 | $ | 91 | — | $ | — | ||||||||||||||||||||||
Commercial loans | 1 | 49 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 2 | $ | 140 | — | $ | — | ||||||||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | — | $ | — | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | 1 | 712 | ||||||||||||||||||||||||
Other real estate loans | 1 | 91 | — | — | ||||||||||||||||||||||||
Total real estate loans | 1 | $ | 91 | 1 | $ | 712 | ||||||||||||||||||||||
Commercial loans | 1 | 49 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 2 | $ | 140 | 1 | $ | 712 | ||||||||||||||||||||||
Loan modifications that were classified as TDRs during the three and nine months ended September 30, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
Loans Modified as TDRs | ||||||||||||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
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 TDRs | ||||||||||||||||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | ||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | $ | — | 2 | $ | 557 | $ | 514 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | — | ||||||||||||||||||||||
Secured by 1-4 family residential | 4 | 1,190 | 1,142 | 11 | 3,549 | 3,227 | ||||||||||||||||||||||
Other real estate loans | 1 | 200 | 173 | 5 | 869 | 824 | ||||||||||||||||||||||
Total real estate loans | 5 | $ | 1,390 | $ | 1,315 | 18 | $ | 4,975 | $ | 4,565 | ||||||||||||||||||
Commercial loans | — | — | — | 2 | 517 | 515 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 5 | $ | 1,390 | $ | 1,315 | 20 | $ | 5,492 | $ | 5,080 | ||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||
Allowance for Loan Losses [Abstract] | ' | |||||||||||||||||||||||||||
Allowance for loan losses | ' | |||||||||||||||||||||||||||
The following table presents, the total allowance for loan losses, the allowance by impairment methodology (individually evaluated for impairment or collectively evaluated for impairment), the total loans and loans by impairment methodology(individually evaluated for impairment or collectively evaluated for impairment). | ||||||||||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Adjustment for the sale of majority interest in consolidated subsidiary | — | — | (95 | ) | — | — | — | (95 | ) | |||||||||||||||||||
Charge-offs | (1,187 | ) | — | (1,186 | ) | (748 | ) | (958 | ) | (35 | ) | (4,114 | ) | |||||||||||||||
Recoveries | 181 | — | 321 | 109 | 101 | 90 | 802 | |||||||||||||||||||||
Provision | 582 | 13 | (1,279 | ) | 526 | 1,084 | 584 | 1,510 | ||||||||||||||||||||
Balance at September 30, 2014 | $ | 423 | $ | 179 | $ | 4,495 | $ | 3,393 | $ | 2,117 | $ | 816 | $ | 11,423 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 69 | $ | — | $ | 1,141 | $ | 305 | $ | 309 | $ | 630 | $ | 2,454 | ||||||||||||||
Collectively evaluated for impairment | 354 | 179 | 3,354 | 3,088 | 1,808 | 186 | 8,969 | |||||||||||||||||||||
Total ending allowance balance | $ | 423 | $ | 179 | $ | 4,495 | $ | 3,393 | $ | 2,117 | $ | 816 | $ | 11,423 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 259 | $ | — | $ | 6,026 | $ | 4,578 | $ | 872 | $ | 3,003 | $ | 14,738 | ||||||||||||||
Collectively evaluated for impairment | 31,798 | 17,332 | 261,190 | 250,108 | 139,683 | 13,903 | 714,014 | |||||||||||||||||||||
Total ending loans balance | $ | 32,057 | $ | 17,332 | $ | 267,216 | $ | 254,686 | $ | 140,555 | $ | 16,906 | $ | 728,752 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(Dollars in thousands) | Real Estate Construction | Real Estate Secured by Farmland | Real Estate Secured by 1-4 Family Residential | Other Real Estate Loans | Commercial | Consumer | Total | |||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Charge-offs | (394 | ) | — | (785 | ) | (97 | ) | (75 | ) | (30 | ) | (1,381 | ) | |||||||||||||||
Recoveries | 68 | — | 140 | 37 | 9 | 27 | 281 | |||||||||||||||||||||
Provision | (85 | ) | 31 | 1,103 | (782 | ) | (142 | ) | (16 | ) | 109 | |||||||||||||||||
Balance at December 31, 2013 | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 486 | $ | — | $ | 3,045 | $ | 812 | $ | 275 | $ | 37 | $ | 4,655 | ||||||||||||||
Collectively evaluated for impairment | 361 | 166 | 3,689 | 2,694 | 1,615 | 140 | 8,665 | |||||||||||||||||||||
Total ending allowance balance | $ | 847 | $ | 166 | $ | 6,734 | $ | 3,506 | $ | 1,890 | $ | 177 | $ | 13,320 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,636 | $ | — | $ | 10,411 | $ | 9,142 | $ | 2,470 | $ | 37 | $ | 24,696 | ||||||||||||||
Collectively evaluated for impairment | 33,389 | 16,578 | 262,973 | 251,191 | 127,084 | 12,569 | 703,784 | |||||||||||||||||||||
Total ending loans balance | $ | 36,025 | $ | 16,578 | $ | 273,384 | $ | 260,333 | $ | 129,554 | $ | 12,606 | $ | 728,480 | ||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Weighted-average number of shares used in computing earnings (loss) per share and the effect on weighted-average number of shares of diluted potential common stock | ' | |||||||||||||
The following shows the 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. Potential dilutive common stock had no effect on income available to common stockholders. | ||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||||
Earnings per share, basic | 7,108,450 | $ | 0.3 | 7,080,244 | $ | 0.23 | ||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, grants and warrant | 25,812 | — | 37,964 | — | ||||||||||
Earnings per share, diluted | 7,134,262 | $ | 0.3 | 7,118,208 | $ | 0.23 | ||||||||
For the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | |||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | |||||||||||
Earnings per share, basic | 7,099,506 | $ | 0.84 | 7,072,372 | $ | 0.71 | ||||||||
Effect of dilutive securities: | ||||||||||||||
Stock options, grants and warrant | 24,669 | — | 32,777 | — | ||||||||||
Earnings per share, diluted | 7,124,175 | $ | 0.84 | 7,105,149 | $ | 0.71 | ||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of reportable segments and reconciliation to the consolidated financial statements | ' | |||||||||||||||||||||||||||||||
The following tables represent reportable segment information for the three and nine months ended September 30, 2014 and 2013, respectively: | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||||
(In Thousands) | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | ||||||||||||||||||||||
Banking | Management | Banking | Banking | Management | Banking | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 10,876 | $ | 4 | $ | — | $ | (90 | ) | $ | 10,790 | $ | 10,750 | $ | 4 | $ | 520 | $ | (320 | ) | $ | 10,954 | ||||||||||
Trust and investment fee income | 193 | 1,158 | — | (38 | ) | 1,313 | — | 1,000 | — | (37 | ) | 963 | ||||||||||||||||||||
Other income | 969 | — | — | (21 | ) | 948 | 899 | — | 4,358 | (92 | ) | 5,165 | ||||||||||||||||||||
Total operating income | 12,038 | 1,162 | — | (149 | ) | 13,051 | 11,649 | 1,004 | 4,878 | (449 | ) | 17,082 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Interest expense | 1,335 | — | — | (90 | ) | 1,245 | 1,574 | — | 380 | (320 | ) | 1,634 | ||||||||||||||||||||
Salaries and employee benefits | 3,877 | 564 | — | — | 4,441 | 4,183 | 393 | 3,174 | — | 7,750 | ||||||||||||||||||||||
Provision for loan losses | 550 | — | — | — | 550 | — | — | 3 | — | 3 | ||||||||||||||||||||||
Other | 3,703 | 287 | — | (59 | ) | 3,931 | 4,240 | 223 | 1,221 | (129 | ) | 5,555 | ||||||||||||||||||||
Total operating expenses | 9,465 | 851 | — | (149 | ) | 10,167 | 9,997 | 616 | 4,778 | (449 | ) | 14,942 | ||||||||||||||||||||
Income before income taxes and non-controlling interest | 2,573 | 311 | — | — | 2,884 | 1,652 | 388 | 100 | — | 2,140 | ||||||||||||||||||||||
Income tax expense | 635 | 128 | — | — | 763 | 440 | 51 | — | — | 491 | ||||||||||||||||||||||
Net Income | 1,938 | 183 | — | — | 2,121 | 1,212 | 337 | 100 | — | 1,649 | ||||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | — | — | — | — | — | (38 | ) | — | (38 | ) | ||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 1,938 | $ | 183 | $ | — | $ | — | $ | 2,121 | $ | 1,212 | $ | 337 | $ | 62 | $ | — | $ | 1,611 | ||||||||||||
Total assets | $ | 1,322,493 | $ | 12,505 | $ | — | $ | (127,271 | ) | $ | 1,207,727 | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | ||||||||||
Capital expenditures | $ | 307 | $ | 1 | $ | 3 | $ | — | $ | 311 | $ | 693 | $ | 5 | $ | 115 | $ | — | $ | 813 | ||||||||||||
Goodwill and other intangibles | $ | — | $ | 3,850 | $ | — | $ | — | $ | 3,850 | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||||
(In Thousands) | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | Retail | Wealth | Mortgage | Elimina-tions | Consolidated | ||||||||||||||||||||||
Banking | Management | Banking | Banking | Management | Banking | |||||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Interest income | $ | 32,665 | $ | 11 | $ | 450 | $ | (288 | ) | $ | 32,838 | $ | 32,742 | $ | 11 | $ | 1,398 | $ | (993 | ) | $ | 33,158 | ||||||||||
Trust and investment fee income | 479 | 3,339 | — | (115 | ) | 3,703 | — | 3,052 | — | (115 | ) | 2,937 | ||||||||||||||||||||
Other income | 3,659 | — | 5,121 | (46 | ) | 8,734 | 3,363 | — | 13,161 | (325 | ) | 16,199 | ||||||||||||||||||||
Total operating income | 36,803 | 3,350 | 5,571 | (449 | ) | 45,275 | 36,105 | 3,063 | 14,559 | (1,433 | ) | 52,294 | ||||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||||||||
Interest expense | 4,055 | — | 304 | (288 | ) | 4,071 | 4,956 | — | 1,099 | (993 | ) | 5,062 | ||||||||||||||||||||
Salaries and employee benefits | 11,996 | 1,699 | 3,772 | — | 17,467 | 12,485 | 1,623 | 9,134 | — | 23,242 | ||||||||||||||||||||||
Provision for (recovery of) loan losses | 1,476 | — | 34 | — | 1,510 | (9 | ) | — | 8 | — | (1 | ) | ||||||||||||||||||||
Other | 11,794 | 837 | 1,722 | (161 | ) | 14,192 | 12,930 | 910 | 3,699 | (440 | ) | 17,099 | ||||||||||||||||||||
Total operating expenses | 29,321 | 2,536 | 5,832 | (449 | ) | 37,240 | 30,362 | 2,533 | 13,940 | (1,433 | ) | 45,402 | ||||||||||||||||||||
Income before income taxes and non-controlling interest | 7,482 | 814 | (261 | ) | — | 8,035 | 5,743 | 530 | 619 | — | 6,892 | |||||||||||||||||||||
Income tax expense | 1,847 | 332 | — | — | 2,179 | 1,403 | 225 | — | — | 1,628 | ||||||||||||||||||||||
Net Income | 5,635 | 482 | (261 | ) | — | 5,856 | 4,340 | 305 | 619 | — | 5,264 | |||||||||||||||||||||
Non-controlling interest in income of consolidated subsidiary | — | — | 98 | — | 98 | — | — | (233 | ) | — | (233 | ) | ||||||||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 5,635 | $ | 482 | $ | (163 | ) | $ | — | $ | 5,954 | $ | 4,340 | $ | 305 | $ | 386 | — | $ | 5,031 | ||||||||||||
Total assets | $ | 1,322,493 | $ | 12,505 | $ | — | $ | (127,271 | ) | $ | 1,207,727 | $ | 1,202,151 | $ | 12,192 | $ | 52,281 | $ | (51,297 | ) | $ | 1,215,327 | ||||||||||
Capital expenditures | $ | 748 | $ | 11 | $ | 3 | $ | — | $ | 762 | $ | 1,144 | $ | 5 | $ | 124 | $ | — | $ | 1,273 | ||||||||||||
Goodwill and other intangibles | $ | — | $ | 3,850 | $ | — | $ | — | $ | 3,850 | $ | — | $ | 4,022 | $ | 1,867 | $ | — | $ | 5,889 | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||||||||||
The following tables present the balances of assets and liabilities measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013. | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 32,363 | $ | — | $ | 32,363 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 60,010 | — | 60,010 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 168,763 | — | 168,763 | — | |||||||||||||||||
Non-agency | 27,951 | — | 27,951 | — | |||||||||||||||||
Other asset backed securities | 27,690 | — | 27,690 | — | |||||||||||||||||
Corporate preferred stock | 15 | — | 15 | — | |||||||||||||||||
Corporate securities | 18,242 | — | 17,752 | 490 | |||||||||||||||||
Mortgage loans held for sale | 5,344 | — | 5,344 | — | |||||||||||||||||
Interest rate swaps | 164 | — | 164 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 248 | — | 248 | — | |||||||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 21,339 | $ | — | $ | 21,339 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 67,238 | — | 67,238 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 168,010 | — | 168,010 | — | |||||||||||||||||
Non-agency | 21,934 | — | 21,934 | — | |||||||||||||||||
Other asset backed securities | 34,418 | — | 34,418 | — | |||||||||||||||||
Corporate preferred stock | 74 | — | 74 | — | |||||||||||||||||
Corporate securities | 15,410 | — | 14,922 | 488 | |||||||||||||||||
Mortgage loans held for sale | 33,175 | — | 33,175 | — | |||||||||||||||||
Mortgage interest rate locks | 16 | — | 16 | — | |||||||||||||||||
Interest rate swaps | 334 | — | 334 | — | |||||||||||||||||
Mortgage servicing rights | 203 | — | 203 | — | |||||||||||||||||
Mortgage banking hedge instruments | 202 | — | 202 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 303 | — | 303 | — | |||||||||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||||||||||||||||||
The following table presents changes in Level III assets measured at fair value on a recurring basis during the nine months ended September 30, 2014: | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Description | Balance | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance | ||||||||||||||||
31-Dec-13 | 30-Sep-14 | ||||||||||||||||||||
Available for sale securities - corporate securities | $ | 488 | $ | — | $ | 2 | $ | — | $ | 490 | |||||||||||
Quantitative information related to Level III inputs | ' | ||||||||||||||||||||
The following table presents quantitative information as of September 30, 2014 and December 31, 2013 related to Level III fair value measurements for assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
Corporate securities | $ | 490 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | |||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Corporate securities | $ | 488 | Third party trading desk | Prices heavily influenced by unobservable market inputs. | |||||||||||||||||
Estimated fair values and related carrying amounts of financial instruments | ' | ||||||||||||||||||||
The following table summarizes the Company’s non-financial assets that were measured at fair value on a nonrecurring basis during the period. | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 6,307 | $ | — | $ | 1,396 | $ | 4,911 | |||||||||||||
Other real estate owned | $ | 5,064 | $ | — | $ | 5,064 | $ | — | |||||||||||||
Repossessed assets | $ | 1,132 | $ | — | $ | — | $ | 1,132 | |||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 7,614 | $ | — | $ | 5,756 | $ | 1,858 | |||||||||||||
Other real estate owned | $ | 3,424 | $ | — | $ | 3,424 | $ | — | |||||||||||||
The estimated fair values, and related carrying amounts, of the Company's financial instruments are as follows: | |||||||||||||||||||||
(Dollars in thousands) | September 30, 2014 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 79,125 | $ | 79,125 | $ | 79,125 | $ | — | $ | — | |||||||||||
Securities available for sale | 335,034 | 335,034 | — | 334,544 | 490 | ||||||||||||||||
Loans held for sale | — | — | — | — | — | ||||||||||||||||
Loans, net | 717,329 | 726,311 | — | 1,396 | 724,915 | ||||||||||||||||
Bank owned life insurance | 22,450 | 22,450 | — | 22,450 | — | ||||||||||||||||
Accrued interest receivable | 3,964 | 3,964 | — | 3,964 | — | ||||||||||||||||
Interest rate swaps | 164 | 164 | — | 164 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 986,566 | $ | 987,276 | $ | — | $ | 987,276 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 36,469 | 36,469 | — | 36,469 | — | ||||||||||||||||
FHLB borrowings | 45,000 | 45,275 | — | 45,275 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,186 | — | 5,186 | — | ||||||||||||||||
Accrued interest payable | 378 | 378 | — | 378 | — | ||||||||||||||||
Interest rate swaps | 248 | 248 | — | 248 | — | ||||||||||||||||
(Dollars in thousands) | 31-Dec-13 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 67,343 | $ | 67,343 | $ | 67,343 | $ | — | $ | — | |||||||||||
Securities available for sale | 328,423 | 328,423 | — | 327,935 | 488 | ||||||||||||||||
Loans held for sale | 33,175 | 33,175 | — | 33,175 | — | ||||||||||||||||
Net loans | 715,160 | 726,239 | — | 5,756 | 720,483 | ||||||||||||||||
Bank-owned life insurance | 21,955 | 21,955 | — | 21,955 | — | ||||||||||||||||
Accrued interest receivable | 3,992 | 3,992 | — | 3,992 | — | ||||||||||||||||
Mortgage interest rate locks | 16 | 16 | — | 16 | — | ||||||||||||||||
Interest rate swap | 334 | 334 | — | 334 | — | ||||||||||||||||
Mortgage banking hedge instruments | 202 | 202 | — | 202 | — | ||||||||||||||||
Mortgage servicing rights | 203 | 203 | — | 203 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 982,396 | $ | 984,420 | $ | — | $ | 984,420 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 34,539 | 34,539 | — | 34,539 | — | ||||||||||||||||
FHLB borrowings and other debt | 80,000 | 80,666 | — | 80,666 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,198 | — | 5,198 | — | ||||||||||||||||
Accrued interest payable | 501 | 501 | — | 501 | — | ||||||||||||||||
Interest rate swap | 303 | 303 | — | 303 | — | ||||||||||||||||
Quantitative information about Level III fair value measurements | ' | ||||||||||||||||||||
The following table presents quantitative information as of September 30, 2014 and December 31, 2013 about Level III fair value measurements for assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||
September 30, 2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 4,911 | Discounted appraised value | Discount for selling costs and age of appraisals | 0% - 100% (7%) | ||||||||||||||||
Repossessed assets | $ | 1,132 | Market analysis | Historical sales activity | 50% | ||||||||||||||||
31-Dec-13 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 1,858 | Discounted appraised value | Discount for selling costs and age of appraisals. | 0% - 100% (4%) | ||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Change in other comprehensive income (loss) for the period | ' | |||||||||||
Changes in accumulated other comprehensive income for the nine months ended September 30, 2014 and 2013 were: | ||||||||||||
(Dollars in thousands) | Unrealized Gains on Securities | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||
Balance December 31, 2012 | $ | 6,771 | $ | (304 | ) | $ | 6,467 | |||||
Unrealized holding losses (net of tax, $2,870) | (5,572 | ) | — | (5,572 | ) | |||||||
Reclassification adjustment (net of tax, $135) | (262 | ) | — | (262 | ) | |||||||
Unrealized gain on interest rate swaps (net of tax, $103) | — | 200 | 200 | |||||||||
Balance September 30, 2013 | $ | 937 | $ | (104 | ) | $ | 833 | |||||
Balance December 31, 2013 | $ | 261 | $ | (29 | ) | $ | 232 | |||||
Unrealized holding gains (net of tax of $1,911) | 3,710 | — | 3,710 | |||||||||
Reclassification adjustment (net of tax, $48) | (93 | ) | — | (93 | ) | |||||||
Unrealized loss on interest rate swap (net of tax, $14) | — | (27 | ) | (27 | ) | |||||||
Balance September 30, 2014 | $ | 3,878 | $ | (56 | ) | $ | 3,822 | |||||
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||
The following table presents information related to reclassifications from accumulated other comprehensive income: | ||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
For the Three Months Ended September 30, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (12 | ) | $ | (23 | ) | Gain on securities available for sale | |||||
Related income tax expense | 4 | 8 | Income tax expense | |||||||||
Derivatives (2): | ||||||||||||
Gain on interest rate swap ineffectiveness | (8 | ) | — | Other operating expenses | ||||||||
Related income tax expense | 3 | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income | (13 | ) | (15 | ) | Net of tax | |||||||
Total reclassifications | $ | (13 | ) | $ | (15 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities". | ||||||||||||
(2) For more information related to unrealized losses on derivatives, see Note 12, "Derivatives". | ||||||||||||
Details about Accumulated Other Comprehensive Income | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||||
For the Nine Months Ended September 30, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Securities available for sale (1): | ||||||||||||
Net securities gains reclassified into earnings | $ | (141 | ) | $ | (397 | ) | Gain on securities available for sale | |||||
Related income tax expense | 48 | 135 | Income tax expense | |||||||||
Derivatives (2): | ||||||||||||
Loss (gain) on interest rate swap ineffectiveness | — | — | Other operating expenses | |||||||||
Related income tax expense | — | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income | (93 | ) | (262 | ) | Net of tax | |||||||
Total reclassifications | $ | (93 | ) | $ | (262 | ) | Net of tax | |||||
(1) For more information related to unrealized gains on securities available for sale, see Note 3, "Securities". | ||||||||||||
(2) For more information related to unrealized losses on derivatives, see Note 12, "Derivatives". |
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||
Derivative designated as a cash flow hedge | ' | ||||||||||||||||||||||
Information concerning the derivative designated as a cash flow hedge at September 30, 2014 and December 31, 2013 is presented in the following tables: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 142 | 0.23 | % | 2.59 | % | 6.1 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | 58 | $ | — | 0.15 | % | 1.43 | % | 4.2 | |||||||||||
31-Dec-13 | |||||||||||||||||||||||
Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | |||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 72 | 0.32 | % | 2.59 | % | 6.8 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | 102 | $ | — | 0.17 | % | 1.43 | % | 5 | |||||||||||
Two-way client interest rate swaps not designated as either fair value or cash flow hedges | ' | ||||||||||||||||||||||
Information concerning two-way client interest rate swaps not designated as either fair value or cash flow hedges is presented in the following table: | |||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,061 | $ | — | $ | 106 | 1 month | 3.9 | % | 13.2 | ||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,061 | 106 | — | 3.9 | % | 1 month | 13.2 | |||||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Total derivatives not designated | $ | 8,122 | $ | 106 | $ | 106 | 13.2 | ||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay | Life (Years) | ||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | Rate | ||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,235 | $ | — | $ | 232 | 1 month | 3.9 | % | 13.9 | ||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,235 | 232 | — | 3.9 | % | 1 month | 13.9 | |||||||||||||||
LIBOR | |||||||||||||||||||||||
plus 200 BP | |||||||||||||||||||||||
Total derivatives not designated | $ | 8,470 | $ | 232 | $ | 232 | 13.9 | ||||||||||||||||
General_General_Details
General General (Details) (Southern Trust Mortgage [Member], USD $) | 5 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Southern Trust Mortgage [Member] | ' |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | ' |
Warehouse participation agreement, maximum lending capacity | $17 |
ShareBased_Compensation_Plan_N
Share-Based Compensation Plan Narrative (Details) (USD $) | 9 Months Ended | 0 Months Ended | 12 Months Ended | 9 Months Ended | 0 Months Ended | ||
Sep. 30, 2014 | 7-May-14 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | 7-May-14 | Jan. 27, 2014 | |
share_based_compensation_plan | Restricted Stock [Member] | 2006 Equity Compensation Plan [Member] | 2006 Equity Compensation Plan [Member] | 2006 Equity Compensation Plan [Member] | Director [Member] | Director [Member] | |
Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of plans | 1 | ' | ' | ' | ' | ' | ' |
Number of shares authorized (in shares) | ' | ' | 430,000 | 255,000 | ' | ' | ' |
Number of additional shares authorized (in shares) | ' | ' | 175,000 | ' | ' | ' | ' |
Share based compensation expense | $297,000 | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | 35,000 | ' | ' | 39,533 | 4,400 | 133 |
Restricted stock nonvested outstanding, Weighted average remaining contractual terms | ' | ' | ' | ' | '3 years 9 months 10 days | ' | ' |
Unrecognized compensation expense related to nonvested restricted stock awards | ' | ' | ' | ' | $1,500,000 | ' | ' |
ShareBased_Compensation_Plan_R
Share-Based Compensation Plan Restricted stock service awards and performance awarded under the 2006 Equity Compensation Plan (Details) (Restricted Stock [Member], USD $) | 0 Months Ended | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | 7-May-14 | Sep. 30, 2014 |
2006 Equity Compensation Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' |
Non-vested at beginning of year (in shares) | ' | 119,250 |
Granted (in shares) | 35,000 | 39,533 |
Vested (in shares) | ' | -15,425 |
Forfeited (in shares) | ' | -11,250 |
Non-vested at end of period (in shares) | ' | 132,108 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' |
Non-vested at beginning of year (in dollars per share) | ' | $16.39 |
Granted (in dollars per share) | ' | $17.45 |
Vested (in dollars per share) | ' | $15.57 |
Forfeited (in dollars per share) | ' | $16.05 |
Non-vested at end of period (in dollars per share) | ' | $16.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | ' | ' |
Non-vested at end of period | ' | $2,344 |
ShareBased_Compensation_Plan_S
Share-Based Compensation Plan Stock options outstanding activity (Details) (USD $) | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Shares [Roll Forward] | ' | ' | ' |
Outstanding at beginning of year (in shares) | 58,513 | ' | ' |
Granted (in shares) | 0 | ' | ' |
Exercised (in shares) | -19,772 | -2,743 | ' |
Forfeited (in shares) | -3,000 | ' | ' |
Outstanding at end of period (in shares) | 35,741 | ' | ' |
Options exercisable at year end (in shares) | 35,741 | ' | ' |
Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Outstanding at beginning of year (in dollars per share) | $15.30 | ' | ' |
Granted (in dollars per share) | $0 | ' | ' |
Exercised (in dollars per share) | $14 | ' | ' |
Forfeited (in dollars per share) | $39.40 | ' | ' |
Outstanding at end of period (in dollars per share) | $14 | ' | ' |
Options exercisable at year end (in dollars per share) | $14 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $134 | ' | $160 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | 74 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $134 | ' | ' |
ShareBased_Compensation_Plan_S1
Share-Based Compensation Plan Schedule of options outstanding and exercisable (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
14.00 [Member] | 14.00 [Member] | 14.00 [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' | ' |
Range of Exercise Prices (in dollars per share) | $14 | $15.30 | $14 | $14 | $14 |
Options Outstanding (in shares) | 35,741 | 58,513 | 30,741 | 5,000 | 35,741 |
Weighted average remaining contractual life (years) | ' | ' | '4 years 5 months 12 days | '5 years 1 month 2 days | '4 years 6 months 7 days |
Options Exercisable (in shares) | 35,741 | ' | 30,741 | 5,000 | 35,741 |
Securities_Amortized_costs_and
Securities Amortized costs and fair values of securities available for sale (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $329,159 | $328,027 |
Gross Unrealized Gains | 8,083 | 5,815 |
Gross Unrealized Losses | -2,208 | -5,419 |
Fair Value | 335,034 | 328,423 |
U.S. government agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 32,330 | 21,367 |
Gross Unrealized Gains | 243 | 304 |
Gross Unrealized Losses | -210 | -332 |
Fair Value | 32,363 | 21,339 |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 58,141 | 68,904 |
Gross Unrealized Gains | 2,351 | 1,083 |
Gross Unrealized Losses | -482 | -2,749 |
Fair Value | 60,010 | 67,238 |
Mortgage-backed securities, Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 164,872 | 166,095 |
Gross Unrealized Gains | 4,691 | 3,539 |
Gross Unrealized Losses | -800 | -1,624 |
Fair Value | 168,763 | 168,010 |
Mortgage-backed securities, Non-agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 27,978 | 22,029 |
Gross Unrealized Gains | 124 | 116 |
Gross Unrealized Losses | -151 | -211 |
Fair Value | 27,951 | 21,934 |
Other asset backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 27,215 | 33,883 |
Gross Unrealized Gains | 523 | 710 |
Gross Unrealized Losses | -48 | -175 |
Fair Value | 27,690 | 34,418 |
Corporate preferred stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 15 | 69 |
Gross Unrealized Gains | 0 | 5 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 15 | 74 |
Corporate securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 18,608 | 15,680 |
Gross Unrealized Gains | 151 | 58 |
Gross Unrealized Losses | -517 | -328 |
Fair Value | $18,242 | $15,410 |
Securities_Amortized_cost_and_
Securities Amortized cost and fair value of securities available for sale by contractual maturity (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost | ' |
Due in one year or less | $6,564 |
Due after one year through five years | 43,635 |
Due after five years through ten years | 39,747 |
Due after ten years | 19,133 |
Total | 329,159 |
Fair Value | ' |
Due in one year or less | 6,629 |
Due after one year through five years | 45,418 |
Due after five years through ten years | 39,516 |
Due after ten years | 19,052 |
Total | 335,034 |
Mortgage-backed securities [Member] | ' |
Amortized Cost | ' |
Total | 192,850 |
Fair Value | ' |
Total | 196,714 |
Other asset backed securities [Member] | ' |
Amortized Cost | ' |
Total | 27,215 |
Fair Value | ' |
Total | 27,690 |
Corporate preferred stock [Member] | ' |
Amortized Cost | ' |
Total | 15 |
Fair Value | ' |
Total | $15 |
Securities_Narrative_Details
Securities Narrative (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Security | |
Investments, Debt and Equity Securities [Abstract] | ' |
Proceeds from sales of securities | $52,200,000 |
Gross gains realized on sale of securities | 679,000 |
Gross loss realized on sale of securities | 538,000 |
Tax expense related to realized gains | 48,000 |
Carrying value of securities pledged for fiduciary powers | $163,300,000 |
Number of securities temporarily impaired | 93 |
Number of securities temporarily impaired in investment grade | 92 |
Number of securities temporarily impaired in speculative grade | 1 |
Securities_Investments_in_cont
Securities Investments in continuous unrealized loss position (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | $69,739 | $107,171 |
Gross Unrealized Losses, Less than Twelve Months | -966 | -4,541 |
Fair Value, Twelve Months or Greater | 26,839 | 19,426 |
Gross Unrealized Losses, Twelve Months or Greater | -1,242 | -878 |
Fair Value, Total | 96,578 | 126,597 |
Gross Unrealized Losses, Total | -2,208 | -5,419 |
U.S. government agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 9,746 | 10,218 |
Gross Unrealized Losses, Less than Twelve Months | -116 | -273 |
Fair Value, Twelve Months or Greater | 4,254 | 1,416 |
Gross Unrealized Losses, Twelve Months or Greater | -94 | -59 |
Fair Value, Total | 14,000 | 11,634 |
Gross Unrealized Losses, Total | -210 | -332 |
Obligations of states and political subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 2,642 | 24,568 |
Gross Unrealized Losses, Less than Twelve Months | -14 | -2,539 |
Fair Value, Twelve Months or Greater | 7,209 | 1,798 |
Gross Unrealized Losses, Twelve Months or Greater | -468 | -210 |
Fair Value, Total | 9,851 | 26,366 |
Gross Unrealized Losses, Total | -482 | -2,749 |
Mortgage-backed securities, Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 26,289 | 50,048 |
Gross Unrealized Losses, Less than Twelve Months | -306 | -1,264 |
Fair Value, Twelve Months or Greater | 12,507 | 8,228 |
Gross Unrealized Losses, Twelve Months or Greater | -494 | -360 |
Fair Value, Total | 38,796 | 58,276 |
Gross Unrealized Losses, Total | -800 | -1,624 |
Mortgage-backed securities, Non-agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 19,317 | 14,505 |
Gross Unrealized Losses, Less than Twelve Months | -151 | -152 |
Fair Value, Twelve Months or Greater | 0 | 1,351 |
Gross Unrealized Losses, Twelve Months or Greater | 0 | -59 |
Fair Value, Total | 19,317 | 15,856 |
Gross Unrealized Losses, Total | -151 | -211 |
Other asset backed securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 2,452 | 1,585 |
Gross Unrealized Losses, Less than Twelve Months | -35 | -39 |
Fair Value, Twelve Months or Greater | 1,077 | 2,187 |
Gross Unrealized Losses, Twelve Months or Greater | -13 | -136 |
Fair Value, Total | 3,529 | 3,772 |
Gross Unrealized Losses, Total | -48 | -175 |
Corporate preferred stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 0 | 0 |
Gross Unrealized Losses, Less than Twelve Months | 0 | 0 |
Fair Value, Twelve Months or Greater | 0 | 0 |
Gross Unrealized Losses, Twelve Months or Greater | 0 | 0 |
Fair Value, Total | 0 | 0 |
Gross Unrealized Losses, Total | 0 | 0 |
Corporate securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair Value, Less than Twelve Months | 9,293 | 6,247 |
Gross Unrealized Losses, Less than Twelve Months | -344 | -274 |
Fair Value, Twelve Months or Greater | 1,792 | 4,446 |
Gross Unrealized Losses, Twelve Months or Greater | -173 | -54 |
Fair Value, Total | 11,085 | 10,693 |
Gross Unrealized Losses, Total | ($517) | ($328) |
Securities_Otherthan_temporary
Securities Other-than temporary impairment losses Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Credit losses recognized in prior period earnings | $0 | $0 |
Investment in FHLB stock | $3,100,000 | ' |
Loans_Net_Narrative_Details
Loans, Net Narrative (Details) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2014 | Dec. 31, 2013 | |
loan_segment | ||
Receivables [Abstract] | ' | ' |
Number of loan segments | 3 | ' |
Mortgages held for sale | $0 | $33,175,000 |
Interest on non-accrual loans foregone | 325,600 | 1,100,000 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Nonaccrual | 7,332,000 | 19,752,000 |
Total TDR | 7,400,000 | 15,600,000 |
Mortgage Held For Sale [Member] | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Proceeds from sale of loans | 6,600,000 | ' |
Nonaccrual | 5,900,000 | ' |
Total TDR | 6,300,000 | ' |
Specific reserves associated with loans sold | $655,000 | ' |
Loans_Net_Consolidated_loan_po
Loans, Net Consolidated loan portfolio (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | $728,752,000 | [1] | $728,480,000 | [1] | ' |
Less allowance for loan losses | 11,423,000 | 13,320,000 | 14,311,000 | ||
Net loans | 717,329,000 | 715,160,000 | ' | ||
Percent of Total Portfolio | 100.00% | [1] | 100.00% | [1] | ' |
Net of deferred loan costs | 2,700,000 | 2,400,000 | ' | ||
Real Estate Loans Construction [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 32,057,000 | 36,025,000 | ' | ||
Less allowance for loan losses | 423,000 | 847,000 | 1,258,000 | ||
Percent of Total Portfolio | 4.40% | 5.00% | ' | ||
Real Estate Loans Secured by farmland [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 17,332,000 | 16,578,000 | ' | ||
Percent of Total Portfolio | 2.40% | 2.30% | ' | ||
Real Estate Loans Secured by 1 - 4 family residential [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 267,216,000 | 273,384,000 | ' | ||
Less allowance for loan losses | 4,495,000 | 6,734,000 | 6,276,000 | ||
Percent of Total Portfolio | 36.70% | 37.50% | ' | ||
Other real estate loans [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 254,686,000 | 260,333,000 | ' | ||
Less allowance for loan losses | 3,393,000 | 3,506,000 | 4,348,000 | ||
Percent of Total Portfolio | 34.90% | 35.70% | ' | ||
Commercial loans [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 140,555,000 | 129,554,000 | ' | ||
Less allowance for loan losses | 2,117,000 | 1,890,000 | 2,098,000 | ||
Percent of Total Portfolio | 19.30% | 17.80% | ' | ||
Consumer loans [Member] | ' | ' | ' | ||
Consolidated Loan Portfolio [Abstract] | ' | ' | ' | ||
Outstanding Balance, Gross | 16,906,000 | 12,606,000 | ' | ||
Less allowance for loan losses | $816,000 | $177,000 | $196,000 | ||
Percent of Total Portfolio | 2.30% | 1.70% | ' | ||
[1] | Gross loan balances at SeptemberB 30, 2014 and DecemberB 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. |
Loans_Net_Recorded_investment_
Loans, Net Recorded investment in past due loans by class of loans (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | $1,280 | $975 | ||
60-89 Days Past Due | 1 | 6,922 | ||
90 Days Or Greater | 1,155 | 5,838 | ||
Total Past Due | 2,436 | 13,735 | ||
Current | 726,316 | 714,745 | ||
Total Loans | 728,752 | [1] | 728,480 | [1] |
Real Estate Loans Construction [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 0 | 76 | ||
60-89 Days Past Due | 0 | 1,649 | ||
90 Days Or Greater | 76 | 554 | ||
Total Past Due | 76 | 2,279 | ||
Current | 31,981 | 33,746 | ||
Total Loans | 32,057 | 36,025 | ||
Real Estate Loans Secured by farmland [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 0 | 0 | ||
60-89 Days Past Due | 0 | 0 | ||
90 Days Or Greater | 0 | 0 | ||
Total Past Due | 0 | 0 | ||
Current | 17,332 | 16,578 | ||
Total Loans | 17,332 | 16,578 | ||
Real Estate Loans Secured by 1 - 4 family residential [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 629 | 590 | ||
60-89 Days Past Due | 0 | 3,751 | ||
90 Days Or Greater | 748 | 1,022 | ||
Total Past Due | 1,377 | 5,363 | ||
Current | 265,839 | 268,021 | ||
Total Loans | 267,216 | 273,384 | ||
Other real estate loans [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 0 | 116 | ||
60-89 Days Past Due | 0 | 0 | ||
90 Days Or Greater | 0 | 4,197 | ||
Total Past Due | 0 | 4,313 | ||
Current | 254,686 | 256,020 | ||
Total Loans | 254,686 | 260,333 | ||
Commercial loans [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 650 | 162 | ||
60-89 Days Past Due | 0 | 1,513 | ||
90 Days Or Greater | 328 | 27 | ||
Total Past Due | 978 | 1,702 | ||
Current | 139,577 | 127,852 | ||
Total Loans | 140,555 | 129,554 | ||
Consumer loans [Member] | ' | ' | ||
Past due loans by class of loans [Abstract] | ' | ' | ||
30-59 Days Past Due | 1 | 31 | ||
60-89 Days Past Due | 1 | 9 | ||
90 Days Or Greater | 3 | 38 | ||
Total Past Due | 5 | 78 | ||
Current | 16,901 | 12,528 | ||
Total Loans | $16,906 | $12,606 | ||
[1] | Gross loan balances at SeptemberB 30, 2014 and DecemberB 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. |
Loans_Net_Recorded_investment_1
Loans, Net Recorded investment in nonaccrual loans and loans past due and still accruing by class of loans (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | $7,332 | $19,752 |
Past due 90 days or more and still accruing | 30 | 808 |
Real Estate Loans Construction [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | 258 | 2,368 |
Past due 90 days or more and still accruing | 0 | 268 |
Real Estate Loans Secured by 1 - 4 family residential [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | 5,265 | 9,458 |
Past due 90 days or more and still accruing | 0 | 539 |
Other real estate loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | 1,507 | 6,045 |
Past due 90 days or more and still accruing | 0 | 0 |
Commercial loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | 299 | 1,844 |
Past due 90 days or more and still accruing | 30 | 0 |
Consumer loans [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual | 3 | 37 |
Past due 90 days or more and still accruing | $0 | $1 |
Loans_Net_Summary_of_loan_clas
Loans, Net Summary of loan classifications by class of loan (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | $728,752 | [1] | $728,480 | [1] |
Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 671,646 | 670,431 | ||
Special Mention [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 36,504 | 22,145 | ||
Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 19,804 | 33,366 | ||
Doubtful [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 798 | 2,538 | ||
Loss [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 0 | 0 | ||
Real Estate Loans Construction [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 32,057 | 36,025 | ||
Real Estate Loans Construction [Member] | Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 24,637 | 31,143 | ||
Real Estate Loans Construction [Member] | Special Mention [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 6,818 | 2,245 | ||
Real Estate Loans Construction [Member] | Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 602 | 2,090 | ||
Real Estate Loans Construction [Member] | Doubtful [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 0 | 547 | ||
Real Estate Loans 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 Loans Secured by Farmland [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 17,332 | 16,578 | ||
Real Estate Loans Secured by Farmland [Member] | Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 8,824 | 8,067 | ||
Real Estate Loans 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 | 7,903 | ||
Real Estate Loans Secured by Farmland [Member] | Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 605 | 608 | ||
Real Estate Loans 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 Loans 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 Loans Secured by 1 - 4 Family Residential [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 267,216 | 273,384 | ||
Real Estate Loans 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 | 256,919 | 253,654 | ||
Real Estate Loans 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 | 2,012 | 1,732 | ||
Real Estate Loans 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 | 7,740 | 16,158 | ||
Real Estate Loans 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 | 545 | 1,840 | ||
Real Estate Loans 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 | 254,686 | 260,333 | ||
Other Real Estate Loans [Member] | Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 230,626 | 238,811 | ||
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 | 16,618 | 9,475 | ||
Other Real Estate Loans [Member] | Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 7,442 | 12,047 | ||
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 | 0 | ||
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 | 140,555 | 129,554 | ||
Commercial [Member] | Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 136,787 | 126,246 | ||
Commercial [Member] | Special Mention [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 3,129 | 775 | ||
Commercial [Member] | Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 389 | 2,419 | ||
Commercial [Member] | Doubtful [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 250 | 114 | ||
Commercial [Member] | Loss [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 0 | 0 | ||
Consumer loans [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 16,906 | 12,606 | ||
Consumer loans [Member] | Pass [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 13,853 | 12,510 | ||
Consumer loans [Member] | Special Mention [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 24 | 15 | ||
Consumer loans [Member] | Substandard [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 3,026 | 44 | ||
Consumer loans [Member] | Doubtful [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | 3 | 37 | ||
Consumer loans [Member] | Loss [Member] | ' | ' | ||
Summary of loan classifications by class of loan [Abstract] | ' | ' | ||
Summary of loan quality by class of loan | $0 | $0 | ||
[1] | Gross loan balances at SeptemberB 30, 2014 and DecemberB 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. |
Loans_Net_Loans_identified_as_
Loans, Net Loans identified as impaired by class of loan (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | $5,977 | $12,427 |
With an allowance recorded | 8,761 | 12,269 |
Total | 14,738 | 24,696 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 6,106 | 13,500 |
With an allowance recorded | 8,813 | 12,238 |
Total | 14,919 | 25,738 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 2,454 | 4,655 |
Total | 2,454 | 4,655 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 6,170 | 13,209 |
With an allowance recorded | 9,165 | 12,788 |
Total | 15,335 | 25,997 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 148 | 123 |
With an allowance recorded | 217 | 128 |
Total | 365 | 251 |
Real Estate Loans Construction [Member] | ' | ' |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 140 | 1,924 |
With an allowance recorded | 119 | 712 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 140 | 2,475 |
With an allowance recorded | 119 | 712 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 69 | 486 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 172 | 1,975 |
With an allowance recorded | 125 | 878 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 0 | 13 |
With an allowance recorded | 0 | 0 |
Real Estate Loans Secured by farmland [Member] | ' | ' |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 0 | 0 |
Interest Income Recognized [Abstract] | ' | ' |
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 [Abstract] | ' | ' |
With no related allowance recorded | 2,061 | 3,930 |
With an allowance recorded | 3,965 | 6,481 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 2,190 | 4,452 |
With an allowance recorded | 4,017 | 6,428 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 1,141 | 3,045 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 2,169 | 4,415 |
With an allowance recorded | 3,978 | 6,632 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 26 | 6 |
With an allowance recorded | 12 | 47 |
Other real estate loans [Member] | ' | ' |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 3,325 | 4,458 |
With an allowance recorded | 1,253 | 4,684 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 3,325 | 4,458 |
With an allowance recorded | 1,253 | 4,684 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 305 | 812 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 3,373 | 4,552 |
With an allowance recorded | 1,266 | 4,840 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 104 | 104 |
With an allowance recorded | 69 | 71 |
Commercial loans [Member] | ' | ' |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 451 | 2,115 |
With an allowance recorded | 421 | 355 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 451 | 2,115 |
With an allowance recorded | 421 | 377 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 309 | 275 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 456 | 2,267 |
With an allowance recorded | 794 | 399 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 18 | 0 |
With an allowance recorded | 8 | 10 |
Consumer loans [Member] | ' | ' |
Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,003 | 37 |
Unpaid Principal Balance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,003 | 37 |
Related Allowance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 630 | 37 |
Average Recorded Investment [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,002 | 39 |
Interest Income Recognized [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | $128 | $0 |
Loans_Net_Troubled_Debt_Restru
Loans, Net Troubled Debt Restructurings Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
loan | loan | loan | loan | ||
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Total TDR | $7,400,000 | ' | $7,400,000 | ' | $15,600,000 |
TDR included in nonaccrual loans | 2,900,000 | ' | 2,900,000 | ' | ' |
TDR performing as agreed | 4,500,000 | ' | 4,500,000 | ' | ' |
Valuation Allowance related to total TDR | 730,200 | ' | 730,200 | ' | 2,800,000 |
Number of Contracts | 0 | 11 | 5 | 20 | ' |
Number of loans for which allowance for loan losses measured under general allowance methodology | ' | ' | 2 | ' | ' |
Recorded investment as TDR for which allowance for loan losses measured under general allowance methodology | ' | ' | 916,000 | ' | ' |
Allowance for loan losses on recorded investment as TDR | 0 | ' | 0 | ' | ' |
Number of contracts paid off | ' | ' | 1 | ' | ' |
Number of contracts sold | ' | ' | 2 | ' | ' |
Mortgage Loans on Real Estate [Member] | ' | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' | ' |
Proceeds from Sale of Finance Receivables, TDRs | ' | ' | $707,000 | ' | ' |
Loans_Net_Loans_modified_in_TD
Loans, Net Loans modified in TDR by class of loan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
loan | loan | loan | loan | |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 11 | 5 | 20 |
Pre-Modification Outstanding Recorded Investment | $0 | $3,096 | $1,390 | $5,492 |
Post-Modification Outstanding Recorded Investment | 0 | 2,752 | 1,315 | 5,080 |
Real Estate Loans [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 10 | 5 | 18 |
Pre-Modification Outstanding Recorded Investment | 0 | 3,046 | 1,390 | 4,975 |
Post-Modification Outstanding Recorded Investment | 0 | 2,703 | 1,315 | 4,565 |
Real Estate Loans Construction [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 1 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | 0 | 45 | 0 | 557 |
Post-Modification Outstanding Recorded Investment | 0 | 41 | 0 | 514 |
Real Estate Loans Secured by farmland [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Real Estate Loans Secured by 1 - 4 family residential [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 6 | 4 | 11 |
Pre-Modification Outstanding Recorded Investment | 0 | 2,300 | 1,190 | 3,549 |
Post-Modification Outstanding Recorded Investment | 0 | 1,986 | 1,142 | 3,227 |
Other real estate loans [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 3 | 1 | 5 |
Pre-Modification Outstanding Recorded Investment | 0 | 701 | 200 | 869 |
Post-Modification Outstanding Recorded Investment | 0 | 676 | 173 | 824 |
Commercial loans [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 1 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | 0 | 50 | 0 | 517 |
Post-Modification Outstanding Recorded Investment | 0 | 49 | 0 | 515 |
Consumer loans [Member] | ' | ' | ' | ' |
Loans modified in a TDR by class of loan [Abstract] | ' | ' | ' | ' |
Number of Contracts | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Post-Modification Outstanding Recorded Investment | $0 | $0 | $0 | $0 |
Loans_Net_Schedule_of_TDR_paym
Loans, Net Schedule of TDR payment defaults (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
loan | loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 2 | 0 | 2 | 1 |
Recorded Investment | $140 | $0 | $140 | $712 |
Real Estate Loans [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 1 |
Recorded Investment | 91 | 0 | 91 | 712 |
Real Estate Loans Construction [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 |
Real Estate Loans Secured by farmland [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | 0 | 0 | 0 | 0 |
Real Estate Loans Secured by 1 - 4 family residential [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 1 |
Recorded Investment | 0 | 0 | 0 | 712 |
Other real estate loans [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Recorded Investment | 91 | 0 | 91 | 0 |
Commercial loans [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 1 | 0 | 1 | 0 |
Recorded Investment | 49 | 0 | 49 | 0 |
Consumer loans [Member] | ' | ' | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' | ' | ' |
Number of Loans | 0 | 0 | 0 | 0 |
Recorded Investment | $0 | $0 | $0 | $0 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | $13,320 | $14,311 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | -95 | ' | ||
Charge-offs | -4,114 | -1,381 | ||
Recoveries | 802 | 281 | ||
Provision | 1,510 | 109 | ||
Ending balance | 11,423 | 13,320 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 2,454 | 4,655 | ||
Collectively evaluated for impairment | 8,969 | 8,665 | ||
Total ending allowance balance | 11,423 | 13,320 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 14,738 | 24,696 | ||
Collectively evaluated for impairment | 714,014 | 703,784 | ||
Total Loans | 728,752 | [1] | 728,480 | [1] |
Real Estate Construction [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 847 | 1,258 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | ' | ||
Charge-offs | -1,187 | -394 | ||
Recoveries | 181 | 68 | ||
Provision | 582 | -85 | ||
Ending balance | 423 | 847 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 69 | 486 | ||
Collectively evaluated for impairment | 354 | 361 | ||
Total ending allowance balance | 423 | 847 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 259 | 2,636 | ||
Collectively evaluated for impairment | 31,798 | 33,389 | ||
Total Loans | 32,057 | 36,025 | ||
Real Estate Loans Secured by Farmland [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 166 | 135 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | ' | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provision | 13 | 31 | ||
Ending balance | 179 | 166 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 179 | 166 | ||
Total ending allowance balance | 179 | 166 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 17,332 | 16,578 | ||
Total Loans | 17,332 | 16,578 | ||
Real Estate Loans Secured by 1 - 4 Family Residential [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 6,734 | 6,276 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | -95 | ' | ||
Charge-offs | -1,186 | -785 | ||
Recoveries | 321 | 140 | ||
Provision | -1,279 | 1,103 | ||
Ending balance | 4,495 | 6,734 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 1,141 | 3,045 | ||
Collectively evaluated for impairment | 3,354 | 3,689 | ||
Total ending allowance balance | 4,495 | 6,734 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 6,026 | 10,411 | ||
Collectively evaluated for impairment | 261,190 | 262,973 | ||
Total Loans | 267,216 | 273,384 | ||
Other Real Estate Loans [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 3,506 | 4,348 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | ' | ||
Charge-offs | -748 | -97 | ||
Recoveries | 109 | 37 | ||
Provision | 526 | -782 | ||
Ending balance | 3,393 | 3,506 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 305 | 812 | ||
Collectively evaluated for impairment | 3,088 | 2,694 | ||
Total ending allowance balance | 3,393 | 3,506 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 4,578 | 9,142 | ||
Collectively evaluated for impairment | 250,108 | 251,191 | ||
Total Loans | 254,686 | 260,333 | ||
Commercial [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 1,890 | 2,098 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | ' | ||
Charge-offs | -958 | -75 | ||
Recoveries | 101 | 9 | ||
Provision | 1,084 | -142 | ||
Ending balance | 2,117 | 1,890 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 309 | 275 | ||
Collectively evaluated for impairment | 1,808 | 1,615 | ||
Total ending allowance balance | 2,117 | 1,890 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 872 | 2,470 | ||
Collectively evaluated for impairment | 139,683 | 127,084 | ||
Total Loans | 140,555 | 129,554 | ||
Consumer [Member] | ' | ' | ||
Allowance for loan losses [Roll Forward] | ' | ' | ||
Beginning balance | 177 | 196 | ||
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | ' | ||
Charge-offs | -35 | -30 | ||
Recoveries | 90 | 27 | ||
Provision | 584 | -16 | ||
Ending balance | 816 | 177 | ||
Ending allowance balance attributable to loans: | ' | ' | ||
Individually evaluated for impairment | 630 | 37 | ||
Collectively evaluated for impairment | 186 | 140 | ||
Total ending allowance balance | 816 | 177 | ||
Loans: | ' | ' | ||
Individually evaluated for impairment | 3,003 | 37 | ||
Collectively evaluated for impairment | 13,903 | 12,569 | ||
Total Loans | $16,906 | $12,606 | ||
[1] | Gross loan balances at SeptemberB 30, 2014 and DecemberB 31, 2013 are net of deferred loan costs of $2.7 million and $2.4 million, respectively. |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Shares [Abstract] | ' | ' | ' | ' |
Earning per share, basic (in shares) | 7,108,450 | 7,080,244 | 7,099,506 | 7,072,372 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options, grants and warrant (in shares) | 25,812 | 37,964 | 24,669 | 32,777 |
Earnings per share, diluted (in shares) | 7,134,262 | 7,118,208 | 7,124,175 | 7,105,149 |
Per Share Amount [Abstract] | ' | ' | ' | ' |
Earnings per share, basic (in dollars per share) | $0.30 | $0.23 | $0.84 | $0.71 |
Incremental per share effect of dilutive common shares (in dollars per share) | ' | $0 | ' | ' |
Earnings per share, diluted (in dollars per share) | $0.30 | $0.23 | $0.84 | $0.71 |
Stock options and warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities not included in the calculation of earning per share (in shares) | ' | 6,000 | 0 | 14,833 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Revenues: | ' | ' | ' | ' | ' |
Interest income | $10,790 | $10,954 | $32,838 | $33,158 | ' |
Trust and investment fee income | 1,313 | 963 | 3,703 | 2,937 | ' |
Other income | 948 | 5,165 | 8,734 | 16,199 | ' |
Total operating income | 13,051 | 17,082 | 45,275 | 52,294 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 1,245 | 1,634 | 4,071 | 5,062 | ' |
Salaries and employee benefits | 4,441 | 7,750 | 17,467 | 23,242 | ' |
Provision for loan losses | 550 | 3 | 1,510 | -1 | ' |
Other | 3,931 | 5,555 | 14,192 | 17,099 | ' |
Total operating expenses | 10,167 | 14,942 | 37,240 | 45,402 | ' |
Income before income taxes | 2,884 | 2,140 | 8,035 | 6,892 | ' |
Income tax expense | 763 | 491 | 2,179 | 1,628 | ' |
NET INCOME | 2,121 | 1,649 | 5,856 | 5,264 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | -38 | 98 | -233 | ' |
Net income attributable to Middleburg Financial Corporation | 2,121 | 1,611 | 5,954 | 5,031 | ' |
Total assets | 1,207,727 | 1,215,327 | 1,207,727 | 1,215,327 | 1,227,753 |
Capital expenditures | 311 | 813 | 762 | 1,273 | ' |
Goodwill and other intangibles | 3,850 | 5,889 | 3,850 | 5,889 | 5,346 |
Commercial & Retail Banking [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 10,876 | 10,750 | 32,665 | 32,742 | ' |
Trust and investment fee income | 193 | 0 | 479 | 0 | ' |
Other income | 969 | 899 | 3,659 | 3,363 | ' |
Total operating income | 12,038 | 11,649 | 36,803 | 36,105 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 1,335 | 1,574 | 4,055 | 4,956 | ' |
Salaries and employee benefits | 3,877 | 4,183 | 11,996 | 12,485 | ' |
Provision for loan losses | 550 | 0 | 1,476 | -9 | ' |
Other | 3,703 | 4,240 | 11,794 | 12,930 | ' |
Total operating expenses | 9,465 | 9,997 | 29,321 | 30,362 | ' |
Income before income taxes | 2,573 | 1,652 | 7,482 | 5,743 | ' |
Income tax expense | 635 | 440 | 1,847 | 1,403 | ' |
NET INCOME | 1,938 | 1,212 | 5,635 | 4,340 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | 0 | 0 | 0 | ' |
Net income attributable to Middleburg Financial Corporation | 1,938 | 1,212 | 5,635 | 4,340 | ' |
Total assets | 1,322,493 | 1,202,151 | 1,322,493 | 1,202,151 | ' |
Capital expenditures | 307 | 693 | 748 | 1,144 | ' |
Goodwill and other intangibles | 0 | 0 | 0 | 0 | ' |
Wealth Management [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 4 | 4 | 11 | 11 | ' |
Trust and investment fee income | 1,158 | 1,000 | 3,339 | 3,052 | ' |
Other income | 0 | 0 | 0 | 0 | ' |
Total operating income | 1,162 | 1,004 | 3,350 | 3,063 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 0 | 0 | 0 | 0 | ' |
Salaries and employee benefits | 564 | 393 | 1,699 | 1,623 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Other | 287 | 223 | 837 | 910 | ' |
Total operating expenses | 851 | 616 | 2,536 | 2,533 | ' |
Income before income taxes | 311 | 388 | 814 | 530 | ' |
Income tax expense | 128 | 51 | 332 | 225 | ' |
NET INCOME | 183 | 337 | 482 | 305 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | 0 | 0 | 0 | ' |
Net income attributable to Middleburg Financial Corporation | 183 | 337 | 482 | 305 | ' |
Total assets | 12,505 | 12,192 | 12,505 | 12,192 | ' |
Capital expenditures | 1 | 5 | 11 | 5 | ' |
Goodwill and other intangibles | 3,850 | 4,022 | 3,850 | 4,022 | ' |
Mortgage Banking [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | 0 | 520 | 450 | 1,398 | ' |
Trust and investment fee income | 0 | 0 | 0 | 0 | ' |
Other income | 0 | 4,358 | 5,121 | 13,161 | ' |
Total operating income | 0 | 4,878 | 5,571 | 14,559 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | 0 | 380 | 304 | 1,099 | ' |
Salaries and employee benefits | 0 | 3,174 | 3,772 | 9,134 | ' |
Provision for loan losses | 0 | 3 | 34 | 8 | ' |
Other | 0 | 1,221 | 1,722 | 3,699 | ' |
Total operating expenses | 0 | 4,778 | 5,832 | 13,940 | ' |
Income before income taxes | 0 | 100 | -261 | 619 | ' |
Income tax expense | 0 | 0 | 0 | 0 | ' |
NET INCOME | 0 | 100 | -261 | 619 | ' |
Non-controlling interest in income of consolidated subsidiary | 0 | -38 | 98 | -233 | ' |
Net income attributable to Middleburg Financial Corporation | 0 | 62 | -163 | 386 | ' |
Total assets | 0 | 52,281 | 0 | 52,281 | ' |
Capital expenditures | 3 | 115 | 3 | 124 | ' |
Goodwill and other intangibles | 0 | 1,867 | 0 | 1,867 | ' |
Intercompany Eliminations [Member] | ' | ' | ' | ' | ' |
Revenues: | ' | ' | ' | ' | ' |
Interest income | -90 | -320 | -288 | -993 | ' |
Trust and investment fee income | -38 | -37 | -115 | -115 | ' |
Other income | -21 | -92 | -46 | -325 | ' |
Total operating income | -149 | -449 | -449 | -1,433 | ' |
Expenses: | ' | ' | ' | ' | ' |
Interest expense | -90 | -320 | -288 | -993 | ' |
Salaries and employee benefits | 0 | 0 | 0 | 0 | ' |
Provision for loan losses | 0 | 0 | 0 | 0 | ' |
Other | -59 | -129 | -161 | -440 | ' |
Total operating expenses | -149 | -449 | -449 | -1,433 | ' |
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 | -127,271 | -51,297 | -127,271 | -51,297 | ' |
Capital expenditures | 0 | 0 | 0 | 0 | ' |
Goodwill and other intangibles | $0 | $0 | $0 | $0 | ' |
Capital_Purchase_Program_and_S
Capital Purchase Program and Stock Warrant (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Jan. 30, 2009 | Jan. 30, 2009 | Dec. 31, 2009 | Jan. 30, 2009 |
Series A Cumulative Perpetual Preferred Stock [Member] | Series A Cumulative Perpetual Preferred Stock [Member] | Series A Cumulative Perpetual Preferred Stock [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued under capital repurchase program (in shares) | ' | ' | ' | ' | 22,000 | ' | ' |
Preferred stock, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | $2.50 |
Liquidation preference per share (in dollars per shares) | ' | ' | ' | ' | ' | ' | $1,000 |
Warrants issued under capital repurchase program (in shares) | ' | ' | 104,101 | 208,202 | ' | ' | ' |
Common stock, par value (in dollars per share) | $2.50 | $2.50 | ' | $2.50 | ' | ' | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | 15.85 | ' | ' | ' |
Shares redeemed during period (in shares) | ' | ' | ' | ' | ' | 22,000 | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level I [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage loans held for sale | $0 | $0 |
Mortgage interest rate locks | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Mortgage banking hedge instruments | ' | 0 |
Liabilities: | ' | ' |
Interest rate swaps | 0 | 0 |
Level II [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage loans held for sale | 0 | 33,175 |
Mortgage interest rate locks | 164 | 334 |
Mortgage servicing rights | ' | 203 |
Mortgage banking hedge instruments | ' | 202 |
Liabilities: | ' | ' |
Interest rate swaps | 248 | 303 |
Level III [Member] | ' | ' |
Mortgage-backed securities: | ' | ' |
Mortgage loans held for sale | 0 | 0 |
Mortgage interest rate locks | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Mortgage banking hedge instruments | ' | 0 |
Liabilities: | ' | ' |
Interest rate swaps | 0 | 0 |
Recurring [Member] | ' | ' |
Assets: | ' | ' |
U.S. government agencies | 32,363 | 21,339 |
Obligations of states and political subdivisions | 60,010 | 67,238 |
Mortgage-backed securities: | ' | ' |
Agency | 168,763 | 168,010 |
Non-agency | 27,951 | 21,934 |
Other asset backed securities | 27,690 | 34,418 |
Corporate preferred stock | 15 | 74 |
Corporate securities | 18,242 | 15,410 |
Mortgage loans held for sale | 5,344 | 33,175 |
Mortgage interest rate locks | ' | 16 |
Interest rate swaps | 164 | 334 |
Mortgage servicing rights | ' | 203 |
Mortgage banking hedge instruments | ' | 202 |
Liabilities: | ' | ' |
Interest rate swaps | 248 | 303 |
Recurring [Member] | Level I [Member] | ' | ' |
Assets: | ' | ' |
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 loans held for sale | 0 | 0 |
Mortgage interest rate locks | ' | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Mortgage banking hedge instruments | ' | 0 |
Liabilities: | ' | ' |
Interest rate swaps | 0 | 0 |
Recurring [Member] | Level II [Member] | ' | ' |
Assets: | ' | ' |
U.S. government agencies | 32,363 | 21,339 |
Obligations of states and political subdivisions | 60,010 | 67,238 |
Mortgage-backed securities: | ' | ' |
Agency | 168,763 | 168,010 |
Non-agency | 27,951 | 21,934 |
Other asset backed securities | 27,690 | 34,418 |
Corporate preferred stock | 15 | 74 |
Corporate securities | 17,752 | 14,922 |
Mortgage loans held for sale | 5,344 | 33,175 |
Mortgage interest rate locks | ' | 16 |
Interest rate swaps | 164 | 334 |
Mortgage servicing rights | ' | 203 |
Mortgage banking hedge instruments | ' | 202 |
Liabilities: | ' | ' |
Interest rate swaps | 248 | 303 |
Recurring [Member] | Level III [Member] | ' | ' |
Assets: | ' | ' |
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 | 490 | 488 |
Mortgage loans held for sale | 0 | 0 |
Mortgage interest rate locks | ' | 0 |
Interest rate swaps | 0 | 0 |
Mortgage servicing rights | ' | 0 |
Mortgage banking hedge instruments | ' | 0 |
Liabilities: | ' | ' |
Interest rate swaps | $0 | $0 |
Fair_Value_Measurements_Schedu
Fair Value Measurements Schedule of Level III Activity (Details) (Level III [Member], Securities (Assets) [Member], USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Level III [Member] | Securities (Assets) [Member] | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' |
Beginning balance | $488 |
Included in Earnings | 0 |
Included in Other Comprehensive Income | 2 |
Transfers In/Out of Level II and III | 0 |
Ending balance | $490 |
Fair_Value_Measurements_Quanti
Fair Value Measurements Quantitative information related to Level III inputs (Details) (Recurring [Member], USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Corporate securities | $18,242 | $15,410 |
Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Corporate securities | 490 | 488 |
Level III [Member] | Third Party Trading Desk [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Corporate securities | $490 | $488 |
Fair_Value_Measurements_Narrat
Fair Value Measurements Narrative (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Level III Requirement, Age of Real Estate Property Appraisal, In Years | '2 years |
Impaired loans discount rate | 10.00% |
Percentage at which new appraisals are discounted | 10.00% |
Fair_Value_Measurements_Financ1
Fair Value Measurements Financial and non-financial assets measured at fair value on a nonrecurring basis (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Repossessed Assets Fair Value Disclosure | $1,132 | ' |
Nonrecurring [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | 6,307 | 7,614 |
Other real estate owned | 5,064 | 3,424 |
Nonrecurring [Member] | Level I [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Repossessed Assets Fair Value Disclosure | 0 | ' |
Nonrecurring [Member] | Level II [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | 1,396 | 5,756 |
Other real estate owned | 5,064 | 3,424 |
Repossessed Assets Fair Value Disclosure | 0 | ' |
Nonrecurring [Member] | Level III [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | 4,911 | 1,858 |
Other real estate owned | 0 | 0 |
Repossessed Assets Fair Value Disclosure | $1,132 | ' |
Fair_Value_Measurements_Quanti1
Fair Value Measurements Quantitative information about Level III fair value measurements (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Repossessed Assets Fair Value Disclosure | 1,132 | ' |
Impaired Loans [Member] | Discounted appraised value [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, Fair Value | 4,911 | 1,858 |
Impaired Loans [Member] | Discounted appraised value [Member] | Minimum [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount rate | 0.00% | 0.00% |
Impaired Loans [Member] | Discounted appraised value [Member] | Maximum [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount rate | 100.00% | 100.00% |
Impaired Loans [Member] | Discounted appraised value [Member] | Weighted Average [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount rate | 7.00% | 4.00% |
Repossessed Assets [Member] | Market Approach Valuation Technique [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Repossessed Assets Fair Value Disclosure | 1,132 | ' |
Repossessed Assets [Member] | Market Approach Valuation Technique [Member] | Weighted Average [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Discount rate | 50.00% | ' |
Nonrecurring [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, Fair Value | 6,307 | 7,614 |
Nonrecurring [Member] | Level III [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Impaired Loans, Fair Value | 4,911 | 1,858 |
Repossessed Assets Fair Value Disclosure | 1,132 | ' |
Fair_Value_Measurements_Estima
Fair Value Measurements Estimated fair values and related carrying values of financial instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level I [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | $79,125 | $67,343 |
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage interest rate locks | ' | 0 |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | ' | 0 |
Mortgage servicing rights | ' | 0 |
Financial liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Level II [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 334,544 | 327,935 |
Loans held for sale | 0 | 33,175 |
Loans, net | 1,396 | 5,756 |
Bank owned life insurance | 22,450 | 21,955 |
Accrued interest receivable | 3,964 | 3,992 |
Mortgage interest rate locks | ' | 16 |
Interest rate swaps | 164 | 334 |
Mortgage banking hedge instruments | ' | 202 |
Mortgage servicing rights | ' | 203 |
Financial liabilities: | ' | ' |
Deposits | 987,276 | 984,420 |
Securities sold under agreements to repurchase | 36,469 | 34,539 |
FHLB borrowings | 45,275 | 80,666 |
Subordinated notes | 5,186 | 5,198 |
Accrued interest payable | 378 | 501 |
Interest rate swaps | 248 | 303 |
Level III [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 490 | 488 |
Loans held for sale | 0 | 0 |
Loans, net | 724,915 | 720,483 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage interest rate locks | ' | 0 |
Interest rate swaps | 0 | 0 |
Mortgage banking hedge instruments | ' | 0 |
Mortgage servicing rights | ' | 0 |
Financial liabilities: | ' | ' |
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
FHLB borrowings | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Carrying Amount [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 79,125 | 67,343 |
Securities available for sale | 335,034 | 328,423 |
Loans held for sale | 0 | 33,175 |
Loans, net | 717,329 | 715,160 |
Bank owned life insurance | 22,450 | 21,955 |
Accrued interest receivable | 3,964 | 3,992 |
Mortgage interest rate locks | ' | 16 |
Interest rate swaps | 164 | 334 |
Mortgage banking hedge instruments | ' | 202 |
Mortgage servicing rights | ' | 203 |
Financial liabilities: | ' | ' |
Deposits | 986,566 | 982,396 |
Securities sold under agreements to repurchase | 36,469 | 34,539 |
FHLB borrowings | 45,000 | 80,000 |
Subordinated notes | 5,155 | 5,155 |
Accrued interest payable | 378 | 501 |
Interest rate swaps | 248 | 303 |
Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 79,125 | 67,343 |
Securities available for sale | 335,034 | 328,423 |
Loans held for sale | 0 | 33,175 |
Loans, net | 726,311 | 726,239 |
Bank owned life insurance | 22,450 | 21,955 |
Accrued interest receivable | 3,964 | 3,992 |
Mortgage interest rate locks | ' | 16 |
Interest rate swaps | 164 | 334 |
Mortgage banking hedge instruments | ' | 202 |
Mortgage servicing rights | ' | 203 |
Financial liabilities: | ' | ' |
Deposits | 987,276 | 984,420 |
Securities sold under agreements to repurchase | 36,469 | 34,539 |
FHLB borrowings | 45,275 | 80,666 |
Subordinated notes | 5,186 | 5,198 |
Accrued interest payable | 378 | 501 |
Interest rate swaps | $248 | $303 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income Change in other comprehensive income for the period (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance beginning of period | ' | ' | $232 | $6,467 |
Unrealized holding gains (losses) (net of tax, $1,972 and $1,822 for 9 months ended September 30, 2013 and 2014, respectively) | 173 | -1,748 | 3,710 | -5,572 |
Reclassification adjustment (net of tax, $127 and $44 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | -93 | -262 |
Unrealized gain (loss) on interest rate swaps (net of tax, $105 and $53 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | -27 | 200 |
Reclassification adjustment, (net of tax of $3) | -5 | 0 | 0 | 0 |
Balance end of period | 3,822 | 833 | 3,822 | 833 |
Unrealized Gains on Securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance beginning of period | ' | ' | 261 | 6,771 |
Unrealized holding gains (losses) (net of tax, $1,972 and $1,822 for 9 months ended September 30, 2013 and 2014, respectively) | ' | ' | 3,710 | -5,572 |
Reclassification adjustment (net of tax, $127 and $44 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | -93 | -262 |
Unrealized gain (loss) on interest rate swaps (net of tax, $105 and $53 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | 0 | 0 |
Balance end of period | 3,878 | 937 | 3,878 | 937 |
Cash Flow Hedges [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance beginning of period | ' | ' | -29 | -304 |
Unrealized holding gains (losses) (net of tax, $1,972 and $1,822 for 9 months ended September 30, 2013 and 2014, respectively) | ' | ' | 0 | 0 |
Reclassification adjustment (net of tax, $127 and $44 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | 0 | 0 |
Unrealized gain (loss) on interest rate swaps (net of tax, $105 and $53 for 6 months ended September 30, 2013 and 2014, respectively) | ' | ' | -27 | 200 |
Balance end of period | ($56) | ($104) | ($56) | ($104) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gain on securities available for sale | ($12) | ($23) | ($141) | ($397) | ||||
Income tax expense | 763 | 491 | 2,179 | 1,628 | ||||
NET INCOME | 2,121 | 1,649 | 5,856 | 5,264 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
NET INCOME | -13 | -15 | -93 | -262 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gain on securities available for sale | -12 | [1] | -23 | [1] | -141 | [1] | -397 | [1] |
Income tax expense | 4 | [1] | 8 | [1] | 48 | [1] | 135 | [1] |
NET INCOME | ' | ' | -93 | -262 | ||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Cash Flow Hedges [Member] | ' | ' | ' | ' | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' | ||||
Gain on interest rate swap ineffectiveness | -8 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Income tax expense | $3 | [2] | $0 | [2] | $0 | [2] | $0 | [2] |
[1] | For more information related to unrealized gains on securities available for sale, see Note 3, "Securities". | |||||||
[2] | For more information related to unrealized losses on derivatives, see Note 12, "Derivatives". |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income Change in other comprehensive income for period (Parenthetical) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Net unrealized gains on investment securities tax | $89 | $902 | $1,911 | $2,870 |
Reclassification adjustment for investment securities transactions tax | 4 | 8 | 48 | 135 |
Unrealized gain on interest rate swaps tax | $39 | $2 | $14 | $103 |
Derivatives_designated_as_cash
Derivatives designated as cash flow hedges narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 25, 2013 | Oct. 23, 2010 | Dec. 31, 2010 | Sep. 30, 2014 | Nov. 25, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | |||
Operating Expense [Member] | Interest Rate Swap 2 [Member] | Pay fixed - receive floating interest rate swap [Member] | Pay fixed - receive floating interest rate swap [Member] | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pay rate | ' | ' | ' | ' | 2.59% | ' | 1.43% | 2.59% | 2.59% |
Notional Amount | $8,122,000 | $8,470,000 | ' | ' | $5,200,000 | ' | $10,000,000 | $5,155,000 | $5,155,000 |
Term | ' | ' | '5 years | '10 years | ' | ' | ' | ' | ' |
Loss on Cash Flow Hedge Ineffectiveness | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Amounts included in accumulated other comprehensive income as unrealized losses | ' | ' | ' | ' | ' | ' | ' | $55,800 | $29,100 |
Derivatives_designated_as_a_ca
Derivatives designated as a cash flow hedge (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Pay fixed receive floating rate interest rate swap [Member] | Pay fixed receive floating rate interest rate swap [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | Hedging Instrument [Member] | |||
position | position | Pay fixed - receive floating interest rate swap [Member] | Pay fixed - receive floating interest rate swap [Member] | Pay fixed receive floating rate interest rate swap [Member] | Pay fixed receive floating rate interest rate swap [Member] | ||||
position | position | position | position | ||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Positions | ' | ' | 1 | 1 | ' | 1 | 1 | 1 | 1 |
Notional Amount | $8,122 | $8,470 | $4,061 | $4,235 | $5,200 | $5,155 | $5,155 | $10,000 | $10,000 |
Asset | 106 | 232 | 0 | 0 | ' | 0 | 0 | 58 | 102 |
Liability | $106 | $232 | $106 | $232 | ' | $142 | $72 | $0 | $0 |
Receive Rate | ' | ' | ' | ' | ' | 0.23% | 0.32% | 0.15% | 0.17% |
Pay rate | ' | ' | 3.90% | 3.90% | 2.59% | 2.59% | 2.59% | 1.43% | 1.43% |
Life (Years) | '13 years 2 months 24 days | '13 years 10 months 24 days | '13 years 2 months 24 days | '13 years 10 months 24 days | ' | '6 years 1 month 7 days | '6 years 9 months 18 days | '4 years 2 months 5 days | '5 years 0 months 0 days |
Derivatives_Twoway_client_inte
Derivatives Two-way client interest rate swaps not designated as either fair value or cash flow hedges (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ' | ' |
Notional Amount | $8,122 | $8,470 |
Asset | 106 | 232 |
Liability | 106 | 232 |
Life (Years) | '13 years 2 months 24 days | '13 years 10 months 24 days |
Pay fixed receive floating rate interest rate swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Number of Positions | 1 | 1 |
Notional Amount | 4,061 | 4,235 |
Asset | 0 | 0 |
Liability | 106 | 232 |
Pay rate | 3.90% | 3.90% |
Spread on Variable Rate | 2.00% | 2.00% |
Life (Years) | '13 years 2 months 24 days | '13 years 10 months 24 days |
Pay floating receive floating rate interest rate swap [Member] | ' | ' |
Derivative [Line Items] | ' | ' |
Number of Positions | 1 | 1 |
Notional Amount | 4,061 | 4,235 |
Asset | 106 | 232 |
Liability | $0 | $0 |
Receive Rate | 3.90% | 3.90% |
Spread on Variable Rate | 2.00% | 2.00% |
Life (Years) | '13 years 2 months 24 days | '13 years 10 months 24 days |