Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MIDDLEBURG FINANCIAL CORP | ||
Entity Central Index Key | 914138 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $139,629,380 | ||
Entity Common Stock, Shares Outstanding | 7,131,643 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from banks | $7,396 | $6,648 |
Interest bearing deposits with other banks | 47,626 | 60,695 |
Total cash and cash equivalents | 55,022 | 67,343 |
Securities held to maturity, fair value of $1,397 and $0, respectively | 1,500 | 0 |
Securities available for sale, at fair value | 348,263 | 328,423 |
Loans held for sale, net | 0 | 33,175 |
Restricted securities, at cost | 5,279 | 6,780 |
Loans, net of allowance for loan losses of $11,786 and $13,320, respectively | 743,060 | 715,160 |
Premises and equipment, net | 18,104 | 20,017 |
Goodwill and identified intangibles, net | 3,807 | 5,346 |
Other real estate owned, net of valuation allowance of $755 and $398, respectively | 4,051 | 3,424 |
Bank owned life insurance | 22,617 | 21,955 |
Accrued interest receivable and other assets | 21,154 | 26,130 |
TOTAL ASSETS | 1,222,857 | 1,227,753 |
Deposits: | ||
Non-interest bearing demand deposits | 216,912 | 185,577 |
Savings and interest bearing demand deposits | 523,230 | 528,879 |
Time deposits | 248,938 | 267,940 |
Total deposits | 989,080 | 982,396 |
Securities sold under agreements to repurchase | 38,551 | 34,539 |
Federal Home Loan Bank borrowings | 55,000 | 80,000 |
Subordinated notes | 5,155 | 5,155 |
Accrued interest payable and other liabilities | 13,037 | 10,590 |
TOTAL LIABILITIES | 1,100,823 | 1,112,680 |
SHAREHOLDERS' EQUITY | ||
Common stock ($2.50 par value; 20,000,000 shares authorized; 7,131,643 and 7,080,591 issued and outstanding, respectively) | 17,494 | 17,403 |
Capital surplus | 44,892 | 44,251 |
Retained earnings | 55,854 | 50,689 |
Accumulated other comprehensive income | 3,794 | 232 |
Total Middleburg Financial Corporation shareholders' equity | 122,034 | 112,575 |
Non-controlling interest in consolidated subsidiary | 0 | 2,498 |
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 115,073 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $1,222,857 | $1,227,753 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Securities held to maturity | $1,397 | $0 |
ASSETS | ||
Loans, allowance for loan losses | 11,786 | 13,320 |
Other real estate owned, valuation allowance | $755 | $398 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value | $2.50 | $2.50 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,131,643 | 7,131,643 |
Common stock, shares outstanding | 7,080,591 | 7,080,591 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INTEREST INCOME | |||
Interest and fees on loans | $33,833 | $35,248 | $37,895 |
Interest and dividends on securities | |||
Taxable | 6,900 | 6,105 | 6,408 |
Tax-exempt | 2,137 | 2,555 | 2,403 |
Dividends | 293 | 232 | 193 |
Interest on deposits with other banks and federal funds sold | 162 | 132 | 124 |
Total interest and dividend income | 43,325 | 44,272 | 47,023 |
INTEREST EXPENSE | |||
Interest on deposits | 3,889 | 4,911 | 6,916 |
Interest on securities sold under agreements to repurchase | 318 | 325 | 332 |
Interest on short-term borrowings | 0 | 123 | 392 |
Interest on FHLB borrowings and other debt | 1,036 | 1,208 | 1,184 |
Total interest expense | 5,243 | 6,567 | 8,824 |
NET INTEREST INCOME | 38,082 | 37,705 | 38,199 |
Provision for loan losses | 1,960 | 109 | 3,438 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 36,122 | 37,596 | 34,761 |
NON-INTEREST INCOME | |||
Service charges on deposit accounts | 2,422 | 2,291 | 2,197 |
Trust services income | 4,362 | 3,970 | 3,751 |
Gains on sales of loans held for sale | 4,860 | 15,652 | 21,014 |
Gains on sales of securities available for sale, net | 186 | 418 | 445 |
Total other-than-temporary impairment losses | 0 | 0 | -46 |
Portion of loss recognized in other comprehensive income | 0 | 0 | 46 |
Net impairment losses | 0 | 0 | 0 |
Commissions on investment sales | 611 | 470 | 518 |
Bank owned life insurance | 662 | 472 | 459 |
Gain on sale of majority interest in consolidated subsidiary | 24 | 0 | 0 |
Other operating income | 1,659 | 1,266 | 1,070 |
Total non-interest income | 14,786 | 24,539 | 29,454 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 22,601 | 30,627 | 30,417 |
Occupancy and equipment | 6,177 | 7,269 | 7,050 |
Advertising | 365 | 1,457 | 2,034 |
Computer operations | 1,893 | 1,860 | 1,572 |
Other real estate owned | 256 | 1,455 | 2,721 |
Other taxes | 849 | 751 | 813 |
Federal deposit insurance | 899 | 822 | 1,050 |
Goodwill impairment | 0 | 500 | 0 |
Other operating expenses | 8,041 | 9,300 | 8,602 |
Total non-interest expense | 41,081 | 54,041 | 54,259 |
Income before income taxes | 9,827 | 8,094 | 9,956 |
Income tax expense | 2,341 | 1,931 | 1,966 |
NET INCOME | 7,486 | 6,163 | 7,990 |
Net (income) loss attributable to non-controlling interest | 98 | -9 | -1,504 |
Net income attributable to Middleburg Financial Corporation | $7,584 | $6,154 | $6,486 |
Earnings per share: | |||
Basic (in dollars per share) | $1.07 | $0.87 | $0.92 |
Diluted (in dollars per share) | $1.06 | $0.87 | $0.92 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $7,486 | $6,163 | $7,990 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains (losses) arising during the period, net of tax of ($1,979), $3,212, and ($1,511), respectively | 3,841 | -6,234 | 2,932 |
Reclassification adjustment for gains included in net income, net of tax of $63, $142, and $151, respectively | -123 | -276 | -294 |
Unrealized gain (loss) on interest rate swap, net of tax of $82, ($142), and $50, respectively | -160 | 275 | -97 |
Reclassification adjustment for loss on interest rate swap ineffectiveness included in net income, net of tax of ($2) for 2014 | 4 | 0 | 0 |
Total other comprehensive income (loss) | 3,562 | -6,235 | 2,541 |
Total comprehensive income (loss) | 11,048 | -72 | 10,531 |
Comprehensive loss (income) attributable to non-controlling interest | 98 | -9 | -1,504 |
Comprehensive income (loss) attributable to Middleburg Financial Corporation | $11,146 | ($81) | $9,027 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income (loss), net of tax: | |||
Unrealized holding gains arising during the period, tax | ($1,979) | $3,212 | ($1,511) |
Reclassification adjustment for gains included in net income, tax | 63 | 142 | 151 |
Unrealized gain on interest rate swap, tax | 82 | -142 | 50 |
Reclassification adjustment for loss on interest rate swap ineffectiveness, tax | ($2) | $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 (Loss) [Member] | Noncontrolling Interest [Member] |
In Thousands, unless otherwise specified | ||||||
Balance at Dec. 31, 2011 | $108,013 | $17,331 | $43,498 | $41,157 | $3,926 | $2,101 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 7,990 | 6,486 | 1,504 | |||
Other comprehensive income (loss), net of tax | 2,541 | 2,541 | ||||
Cash dividends ($0.20, $0.24 and $0.34 for 2012, 2013 and 2014, respectively) | -1,408 | -1,408 | ||||
Distributions to non-controlling interest | -411 | -411 | ||||
Restricted stock vesting (12,932, 21,455, and 15,425 shares for 2012, 2013 and 2014, respectively) | 33 | -33 | ||||
Repurchase of restricted stock (2,736, 5,467, and 4,732 shares for 2012, 2013, and 2014 respectively) | -43 | -7 | -36 | |||
Share-based compensation | 440 | 440 | ||||
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 | 6,163 | 6,154 | 9 | |||
Other comprehensive income (loss), net of tax | -6,235 | -6,235 | ||||
Cash dividends ($0.20, $0.24 and $0.34 for 2012, 2013 and 2014, respectively) | -1,700 | -1,700 | ||||
Distributions to non-controlling interest | -705 | -705 | ||||
Restricted stock vesting (12,932, 21,455, and 15,425 shares for 2012, 2013 and 2014, respectively) | 54 | -54 | ||||
Repurchase of restricted stock (2,736, 5,467, and 4,732 shares for 2012, 2013, and 2014 respectively) | -103 | -15 | -88 | |||
Exercise of stock options (2,743 and 25,501 shares in 2013 and 2014 respectively) | 39 | 7 | 32 | |||
Share-based compensation | 492 | 492 | ||||
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 | 7,486 | 7,584 | -98 | |||
Other comprehensive income (loss), net of tax | 3,562 | 3,562 | ||||
Cash dividends ($0.20, $0.24 and $0.34 for 2012, 2013 and 2014, respectively) | -2,419 | -2,419 | ||||
Sale of majority interest in consolidated subsidiary | -2,400 | -2,400 | ||||
Restricted stock vesting (12,932, 21,455, and 15,425 shares for 2012, 2013 and 2014, respectively) | 0 | 39 | -39 | |||
Repurchase of restricted stock (2,736, 5,467, and 4,732 shares for 2012, 2013, and 2014 respectively) | -88 | -12 | -76 | |||
Exercise of stock options (2,743 and 25,501 shares in 2013 and 2014 respectively) | 394 | 64 | 330 | |||
Share-based compensation | 426 | 426 | ||||
Balance at Dec. 31, 2014 | $122,034 | $17,494 | $44,892 | $55,854 | $3,794 | $0 |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash dividends: | |||
Cash dividends, Common stock (in dollars per share) | $0.34 | $0.24 | $0.20 |
Exercise of stock options (in shares) | 25,501 | 2,743 | 0 |
Restricted stock vesting (in shares) | 15,425 | 21,455 | 12,932 |
Repurchase of restricted stock (in shares) | 4,732 | 5,467 | 2,736 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows From Operating Activities | |||
Net income | $7,486 | $6,163 | $7,990 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,339 | 1,983 | 1,953 |
Provision for loan losses | 1,960 | 109 | 3,438 |
Gain on sales of securities available for sale, net | -186 | -418 | -445 |
Loss on disposal of assets, net | 59 | 141 | 107 |
Goodwill impairment | 0 | 500 | 0 |
Premium amortization on securities, net | 2,981 | 3,530 | 3,691 |
Deferred income tax expense (benefit) | 1,181 | -384 | 1,207 |
Gain on sale of majority interest in consolidated subsidiary | -24 | 0 | 0 |
Decrease in loans held for sale, net | 33,175 | 48,939 | 10,400 |
Share-based compensation | 426 | 492 | 440 |
(Gain) loss on sale of other real estate owned and repossessed assets, net | 14 | 747 | -125 |
Valuation adjustment on other real estate owned | -3 | 235 | 1,727 |
Valuation adjustment on property held for sale | 200 | 0 | 0 |
Decrease in prepaid FDIC insurance | 0 | 3,015 | 978 |
Changes in assets and liabilities: | |||
Decrease (increase) in other assets | -3,266 | 293 | -4,955 |
Increase (decrease) in other liabilities | 2,447 | 1,746 | 1,950 |
Net cash provided by operating activities | 48,789 | 67,091 | 28,356 |
Cash Flows from Investing Activities | |||
Proceeds from maturity, calls and sales of securities available for sale | 132,286 | 109,794 | 134,040 |
Purchase of securities held to maturity | -1,500 | 0 | 0 |
Purchase of securities available for sale | -149,287 | -132,155 | -144,503 |
(Purchases) sales of bank premises and equipment, net | 1,501 | 210 | 127 |
(Purchases) sales of bank premises and equipment, net | 321 | -928 | -1,045 |
Origination of loans, net | -39,790 | -22,492 | -50,178 |
Proceeds from sale of loans | 5,492 | 0 | 0 |
Proceeds from sale of majority interest in consolidated subsidiary, net | 3,618 | 0 | 0 |
Proceeds from sale of other real estate owned and repossessed assets | 2,666 | 7,602 | 5,348 |
Purchase of bank-owned life insurance | 0 | -5,000 | 0 |
Net cash (used in) investing activities | -44,693 | -42,969 | -56,211 |
Cash Flows from Financing Activities | |||
Increase in demand, interest-bearing demand and savings deposits | 25,686 | 24,579 | 85,903 |
Decrease in certificates of deposit | -19,002 | -24,083 | -33,872 |
Increase in securities sold under agreements to repurchase | 4,012 | 564 | 2,289 |
Decrease in short-term borrowings | 0 | -11,873 | -16,458 |
Increase (decrease) in FHLB borrowings | -25,000 | 2,088 | -5,000 |
Distributions to non-controlling interest | 0 | -705 | -411 |
Payment of dividends on common stock | -2,419 | -1,700 | -1,408 |
Proceeds from issuance of common stock, net | 394 | 39 | 0 |
Repurchase of common stock | -88 | -103 | -43 |
Net cash (used in) provided by financing activities | -16,417 | -11,194 | 31,000 |
Increase (decrease) in cash and cash equivalents | -12,321 | 12,928 | 3,145 |
Cash and cash equivalents at beginning of year | 67,343 | 54,415 | 51,270 |
Cash and cash equivalents at end of year | 55,022 | 67,343 | 54,415 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 5,341 | 6,720 | 9,014 |
Income taxes | 800 | 0 | 2,500 |
Supplemental Disclosure of Non-Cash Transactions | |||
Unrealized (loss) gain on securities available for sale | 5,634 | -9,864 | 3,998 |
Change in market value of interest rate swap | -236 | 417 | -147 |
Transfer of loans to other real estate owned and repossessed assets | 4,438 | 2,389 | 8,493 |
Loans originated for sale of other real estate owned | 0 | 0 | 149 |
Transfer of other real estate owned to premises and equipment | $0 | $310 | $0 |
Nature_of_Banking_Activities_a
Nature of Banking Activities and Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Banking Activities and Significant Accounting Policies | Nature of Banking Activities and Significant Accounting Policies | |
Middleburg Financial Corporation (the “Company”) is a bank holding company and through its banking subsidiary, Middleburg Bank, grants commercial, financial, agricultural, residential and consumer loans to customers principally in Loudoun County, Fauquier County and Fairfax County, Virginia as well as the Town of Williamsburg and the City of Richmond. The loan portfolio is well diversified and generally is collateralized by assets of the borrowers. The loans are expected to be repaid from cash flow or proceeds from the sale of selected assets of the borrowers. Middleburg Trust Company is a non-banking subsidiary of Middleburg Financial Corporation which offers a comprehensive range of fiduciary and investment management services to individuals and businesses. On May 15, 2014, Middleburg Financial Corporation, through its banking subsidiary, Middleburg Bank, sold all of its majority interest in Southern Trust Mortgage LLC, which originated and sold mortgages secured by personal residences primarily in the southeastern United States. | ||
The accounting and reporting policies of the Company conform to U. S. generally accepted accounting principles and to accepted practice within the banking industry. | ||
Principles of Consolidation | ||
The consolidated financial statements of Middleburg Financial Corporation and its wholly owned subsidiaries, Middleburg Bank, Middleburg Investment Group, Inc., Middleburg Trust Company and Middleburg Bank Service Corporation include the accounts of all companies. Through May 15, 2014, the Company owned 62.3% of the issued and outstanding membership interest units of Southern Trust Mortgage, through its subsidiary, Middleburg Bank. The issued and outstanding interest of Southern Trust Mortgage not held by the Company is reported as Non-Controlling Interest in Consolidated Subsidiary. Accounting Standards Codification Topic 810, Consolidation, requires that the Company no longer eliminate through consolidation the equity investment in MFC Capital Trust II, which approximated $155,000 for each of the years ended December 31, 2014 and 2013. The subordinate debt of the trust preferred entity is reflected as a liability of the Company. All material intercompany balances and transactions have been eliminated in consolidation. | ||
Securities | ||
Certain debt securities that management has the positive intent and ability to hold until maturity are classified as "held-to-maturity" and recorded at amortized cost. Securities not classified as held-to-maturity, including equity securities with readily determinable fair values, are classified as "available-for-sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | ||
Equity investments in the FHLB and the Federal Reserve Bank of Richmond are separately classified as restricted securities and are carried at cost. | ||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (i) the intent is to sell the security or (ii) it is more likely than not that it will be necessary to sell the security prior to recovery of its amortized cost. If, however, management’s intent is not to sell the security and it is not more than likely that management will be required to sell the security before recovery, management must determine what portion of the impairment is attributable to credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). | ||
For equity securities carried at cost as restricted securities, impairment is considered to be other-than-temporary based on our ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. We regularly review each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, our best estimate of the present value of cash flows expected to be collected from debt securities, the intention with regards to holding the security to maturity and the likelihood that we would be required to sell the security before recovery. | ||
Loans | ||
The Company grants mortgage, commercial, and consumer loans to clients. The loan portfolio is segmented into commercial loans, real estate loans, and consumer loans. Real estate loans are further divided into the following classes: construction; farmland; 1-4 family residential; and other real estate loans. Descriptions of the Company’s loan classes are as follows: | ||
Commercial Loans: Commercial loans are typically secured with non-real estate commercial property. The Company makes commercial loans primarily to middle market businesses located within our market area. | ||
Real Estate Loans – Construction: The Company originates construction loans for the acquisition and development of land and construction of condominiums, townhomes, and 1-4 family residences. This class also includes acquisition, development and construction loans for retail and other commercial purposes, primarily in our market areas. | ||
Real Estate Loans- Farmland: Loans secured by agricultural property and not included in Real Estate – Other. | ||
Real Estate Loans – 1-4 Family: This class of loans includes loans secured by 1-4 family homes. The Company’s general practice is to sell the majority of its newly originated fixed-rate residential real estate loans in the secondary mortgage market, and to hold in its portfolio adjustable rate residential real estate loans and loans in close proximity to its financial service centers. | ||
Real Estate Loans – Other: This loan class consists primarily of loans secured by multi-unit residential property and owner and non-owner occupied commercial and industrial property. This class also includes loans secured by real estate which do not fall into other classifications. | ||
Consumer Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include new and used auto loans, unsecured loans, lines of credit and home equity loans and lines of credit. | ||
The ability of the debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. | ||
For all classes of loans, the Company considers loans to be past due when a payment is not received by the payment due date according to the contractual terms of the loan. The Company monitors past due loans according to the following categories: less than 30 days past due, 30 – 59 days past due, 60 – 89 days past due, and 90 days or greater past due. The accrual of interest on all classes of loans is discontinued at the time the loans are 90 days delinquent unless they are well-secured and in the process of collection. | ||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Deferred fees and costs include discounts and premiums on syndicated and guaranteed loans purchased. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees, net of certain direct loan origination costs, are deferred and recognized as an adjustment of the loan yield over the life of the related loan. | ||
All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||
Allowance for Loan Losses | ||
The allowance for loan losses reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the allowance for losses each quarter. To determine the total allowance for loan losses, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and loans analyzed on a pooled basis. The allowance for loan losses consists of amounts applicable to: (i) the commercial loan portfolio; (ii) the real estate portfolio; and (iii) the consumer loan portfolio. | ||
To determine the allowance for loan losses, loans are pooled by portfolio segment and losses are modeled using historical experience, and quantitative and other mathematical techniques over the loss emergence period. Each class of loan requires exercising significant judgment to determine the estimation that fits the credit risk characteristics of its portfolio segment. The Company uses internally developed models in this process. Management must use judgment in establishing additional input metrics for the modeling processes. The models and assumptions used to determine the allowance are reviewed to ensure that their theoretical foundation, assumptions, data integrity, computational processes, reporting practices, and end user controls are appropriate and properly documented. | ||
The establishment of the allowance for loan losses relies on a consistent process that requires multiple layers of management review and judgment and responds to changes in economic conditions, customer behavior, and collateral value, among other influences. From time to time, events or economic factors may affect the loan portfolio, causing management to provide additional amounts to or release balances from the allowance for loan losses. Qualitative factors considered in the allowance for loan losses evaluation include the levels and trends in delinquencies and nonperforming loans, trends in volume and terms of loans, the effects of any changes in lending policies, the experience, ability, and depth of management, national and local economic trends and conditions, concentrations of credit, the quality of the Company’s loan review system, competition and regulatory requirements. The Company’s allowance for loan losses is sensitive to risk ratings and economic assumptions and delinquency trends driving statistically modeled reserves. Individual loan risk ratings are evaluated based on each situation by experienced senior credit officers. | ||
Management monitors differences between estimated and actual incurred loan losses. This monitoring process includes periodic assessments by senior management of loan portfolios and the models used to estimate incurred losses in those portfolios. Additions to the allowance for loan losses are made by charges to the provision for loan losses. Credit exposures deemed to be uncollectible are charged against the allowance for loan losses. Recoveries of previously charged-off amounts are credited to the allowance for loans losses. | ||
Loan Charge-off Policies | ||
Commercial and consumer loans are generally charged off when: | ||
•they are 90 days past due; | ||
•the collateral is repossessed; or | ||
•the borrower has filed bankruptcy. | ||
All classes of real estate loans are charged down to the net realizable value when the Company determines that the sole source of repayment is liquidation of the collateral. | ||
Impaired Loans | ||
For all classes of loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | ||
For all classes of loans, impairment is measured on a loan-by-loan basis by comparing the loan balance to either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Any variance in values is charged-off when determined. | ||
Troubled Debt Restructurings | ||
In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and works with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. All identified TDRs are considered to be impaired loans. | ||
Management considers troubled debt restructurings and subsequent defaults in restructured loans in the determination of the adequacy of the Company's allowance for loan losses. When identified as a TDR, a loan is evaluated for potential loss as noted above for impaired loans. Loans identified as TDRs frequently are on nonaccrual status at the time of the restructuring and, in some cases, partial charge-offs may have already been taken against the loan and a specific allowance may have already been established for the loan. As a result of any modification as a TDR, the specific reserve associated with the loan may be increased. Additionally, loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future defaults. If loans modified in a TDR subsequently default, the Company evaluates them for possible further impairment. As a result, any specific allowance may be increased, adjustments may be made in the allocation of the total allowance balance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Management exercises significant judgment in developing estimates for potential losses associated with TDRs. | ||
Mortgage Loans Held for Sale | ||
Mortgage loans held for sale are carried at the lower of aggregate cost or fair value. The fair value of mortgage loans held for sale is determined using current secondary market prices for loans with similar coupons, maturities, and credit quality and fair value of loans committed at year-end. There has been no significant 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 December 31, 2014. | ||
Premises and Equipment | ||
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed principally on the straight-line method over the following estimated useful lives: | ||
Years | ||
Buildings and improvements | Oct-40 | |
Furniture and equipment | 15-Mar | |
Maintenance and repairs of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and gain or loss is included in income. | ||
Other Real Estate Owned and Repossessed Assets | ||
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure. Subsequent to foreclosure, management periodically performs valuations of the foreclosed assets based on updated appraisals, general market conditions, recent sales of like properties, length of time the properties have been held, and our ability and intention with regard to continued ownership of the properties. The Company may incur additional write-downs of foreclosed assets to fair value less costs to sell if valuations indicate a further deterioration in market conditions. Revenue and expenses from operations and changes in the property valuations are included in net expenses from foreclosed assets and improvements are capitalized. | ||
Goodwill and Intangible Assets | ||
With the adoption of Accounting Standards Update (ASU) 2011-08, "Intangible-Goodwill and Other-Testing Goodwill for Impairment", the Company is no longer required to perform a test for impairment unless, based on an assessment of qualitative factors related to goodwill, the Company determines that it is more likely than not that the fair value is less than its carrying amount. If the likelihood of impairment is more than 50%, the Company must perform a test for impairment and may be required to record impairment charges. | ||
Additionally, acquired intangible assets (customer relationships) are separately recognized and amortized over their useful life of 15 years. | ||
Bank-Owned Life Insurance | ||
The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as non-interest income on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit which would be recorded as other income. | ||
Income Taxes | ||
Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | ||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statements of income. No liabilities for unrecognized tax benefits have been recognized as of December 31, 2014 or 2013. | ||
Trust Company Assets | ||
Securities and other properties held by Middleburg Trust Company in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. | ||
Earnings Per Share | ||
Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Nonvested restricted shares are included in basic earnings per share because of dividend participation rights. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and the warrant, and are determined using the treasury stock method. | ||
Cash and Cash Equivalents | ||
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from other banks and federal funds sold. Generally, federal funds are sold and purchased for one-day periods. | ||
Use of Estimates | ||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of goodwill and intangible assets, valuation of other real estate owned, and other-than-temporary impairment of securities. | ||
Advertising Costs | ||
The Company follows the policy of charging the costs of advertising to expense as incurred. | ||
Comprehensive Income (Loss) | ||
Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, and changes in the fair value of interest rate swaps, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). | ||
Securities Sold Under Agreements to Repurchase | ||
Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company does not account for repurchase agreement transactions as sales. All repurchase agreement transactions entered into by the Company are accounted for as collateralized financings. The Company may be required to provide additional collateral based on the fair value of the underlying securities. | ||
Derivative Financial Instruments | ||
The Company utilizes derivative financial instruments as a part of its asset-liability management program to control exposure to interest rate changes and fluctuations in market values and cash flows 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 transaction at its inception. | ||
The Company documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges or cash flow hedges to specific assets or liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in fair values or cash flows of hedged items. | ||
As of December 31, 2014, the Company had both fair value and cash flow hedges on its balance sheet as well as derivative financial instruments that have not been designated as hedging instruments. The derivatives are reported at fair value as of each balance sheet date. For designated cash flow hedges, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings as are changes in market value of derivatives not designated as hedging instruments. | ||
Information concerning each of the Company's categories of derivatives as of December 31, 2014 and 2013 is presented in Note 24 to the consolidated financial statements. | ||
Reclassifications | ||
Certain reclassifications have been made to prior period balances to conform to current year presentation. No reclassifications were significant and had no effect on net income. | ||
Transfers of Financial Assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | ||
Share-Based Employee Compensation Plan | ||
At December 31, 2014, the Company had a share-based employee compensation plan which is described more fully in Note 8 to the consolidated financial statements. Compensation cost relating to share-based payment transactions is recognized in the consolidated financial statements. That cost is measured based on the fair value of the equity instruments issued and recognized over the applicable vesting period. The Company recognized $426,000, $492,000, and $440,000 in compensation expense during 2014, 2013, and 2012, respectively. | ||
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 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 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 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 are 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. | ||
In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. | ||
In November 2014, the FASB issued ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments in ASU provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. The amendments in this ASU are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. The Company does not expect the adoption of ASU 2014-17 to have a material impact on its consolidated financial statements. | ||
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. |
Securities
Securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
Amortized costs and fair values of securities being held to maturity as of December 31, 2014 are summarized as follows. There were no securities held to maturity as of December 31, 2013. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,500 | $ | — | $ | (103 | ) | $ | 1,397 | ||||||||||||||||
Total | $ | 1,500 | $ | — | $ | (103 | ) | $ | 1,397 | ||||||||||||||||
The amortized cost and fair value of securities being held to maturity as of December 31, 2014, by contractual maturity are shown below. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Due after ten years | $ | 1,500 | $ | 1,397 | |||||||||||||||||||||
Total | $ | 1,500 | $ | 1,397 | |||||||||||||||||||||
Amortized costs and fair values of securities available for sale as of December 31, 2014 and 2013, are summarized as follows: | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 41,317 | $ | 283 | $ | (203 | ) | $ | 41,397 | ||||||||||||||||
Obligations of states and political subdivisions | 55,541 | 2,408 | (209 | ) | 57,740 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 169,257 | 4,698 | (742 | ) | 173,213 | ||||||||||||||||||||
Non-agency | 28,235 | 115 | (227 | ) | 28,123 | ||||||||||||||||||||
Other asset backed securities | 31,338 | 433 | (58 | ) | 31,713 | ||||||||||||||||||||
Corporate securities | 16,545 | 131 | (599 | ) | 16,077 | ||||||||||||||||||||
Total | $ | 342,233 | $ | 8,068 | $ | (2,038 | ) | $ | 348,263 | ||||||||||||||||
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 December 31, 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. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Due in one year or less | $ | 3,801 | $ | 3,838 | |||||||||||||||||||||
Due after one year through five years | 48,256 | 50,105 | |||||||||||||||||||||||
Due after five years through ten years | 42,227 | 42,035 | |||||||||||||||||||||||
Due after ten years | 19,119 | 19,236 | |||||||||||||||||||||||
Mortgage-backed securities | 197,492 | 201,336 | |||||||||||||||||||||||
Other asset backed securities | 31,338 | 31,713 | |||||||||||||||||||||||
Total | $ | 342,233 | $ | 348,263 | |||||||||||||||||||||
Proceeds from sales of securities during 2014, 2013, and 2012 were $58.9 million, $24.2 million, and $41.0 million, respectively. Gross gains of $770,000, $732,000, and $743,000, and gross losses of $584,000, $314,000, and $298,000, were realized on those sales, respectively. There were no losses recognized for impaired securities in 2014, 2013, and 2012. The tax expense applicable to these net realized gains, losses amounted to $63,000, $142,000, and $151,000, respectively. | |||||||||||||||||||||||||
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 $125.7 million and $102.3 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, 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 | ||||||||||||||||||||||
2014 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,397 | $ | (103 | ) | $ | — | $ | — | $ | 1,397 | $ | (103 | ) | |||||||||||
Total | $ | 1,397 | $ | (103 | ) | $ | — | $ | — | $ | 1,397 | $ | (103 | ) | |||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 15,331 | $ | (65 | ) | $ | 5,833 | $ | (138 | ) | $ | 21,164 | $ | (203 | ) | ||||||||||
Obligations of states and political subdivisions | 2,780 | (14 | ) | 3,456 | (195 | ) | 6,236 | (209 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 28,065 | (327 | ) | 11,027 | (415 | ) | 39,092 | (742 | ) | ||||||||||||||||
Non-agency | 15,488 | (167 | ) | 4,730 | (60 | ) | 20,218 | (227 | ) | ||||||||||||||||
Other asset backed securities | 6,594 | (45 | ) | 1,077 | (13 | ) | 7,671 | (58 | ) | ||||||||||||||||
Corporate securities | 9,192 | (391 | ) | 792 | (208 | ) | 9,984 | (599 | ) | ||||||||||||||||
Total | $ | 77,450 | $ | (1,009 | ) | $ | 26,915 | $ | (1,029 | ) | $ | 104,365 | $ | (2,038 | ) | ||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
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 118 securities have been identified by the Company as temporarily impaired at December 31, 2014. Of the 118 securities, 116 are investment grade and 2 are speculative grade. Mortgage-backed securities make up the majority of temporarily impaired securities at December 31, 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 December 31, 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 income statement and balance sheet. | |||||||||||||||||||||||||
Trust preferred securities | |||||||||||||||||||||||||
As of December 31, 2014 and 2013 the Company held no trust preferred securities in its investment portfolio. | |||||||||||||||||||||||||
Other-than-temporary impairment losses | |||||||||||||||||||||||||
At December 31, 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 December 31, 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 years ended December 31, 2014, 2013, and 2012, no credit related impairment losses were recognized by the Company. | |||||||||||||||||||||||||
The Company’s investment in FHLB stock totaled $3.6 million and $5.1 million at December 31, 2014 and 2013, respectively. 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 December 31, 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. | |||||||||||||||||||||||||
The Company also had an investment in Federal Reserve Bank (“FRB”) stock which totaled $1.7 million at December 31, 2014 and 2013, respectively. The investment in FRB stock is a required investment and is carried at cost since there is no ready market. The Company does not consider this investment to be other-than-temporarily impaired at December 31, 2014 and no impairment has been recognized. FRB stock is shown in the restricted securities line item on the consolidated balance sheets and is not part of the available for sale securities portfolio. |
Loans_Net
Loans, Net | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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: | ||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Percent of | Outstanding | Percent of | ||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 33,050 | 4.4 | % | $ | 36,025 | 5 | % | ||||||||||||||||||||
Secured by farmland | 19,708 | 2.6 | 16,578 | 2.3 | ||||||||||||||||||||||||
Secured by 1-4 family residential | 265,216 | 35.1 | 273,384 | 37.5 | ||||||||||||||||||||||||
Other real estate loans | 255,236 | 33.8 | 260,333 | 35.7 | ||||||||||||||||||||||||
Commercial loans | 163,269 | 21.6 | 129,554 | 17.8 | ||||||||||||||||||||||||
Consumer loans | 18,367 | 2.5 | 12,606 | 1.7 | ||||||||||||||||||||||||
Total Gross Loans (1) | 754,846 | 100 | % | 728,480 | 100 | % | ||||||||||||||||||||||
Less allowance for loan losses | 11,786 | 13,320 | ||||||||||||||||||||||||||
Net loans | $ | 743,060 | $ | 715,160 | ||||||||||||||||||||||||
(1) | Includes net deferred loan costs and premiums of $3.0 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 December 31, 2014 and $33.2 million at December 31, 2013. | ||||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company sold $6.6 million in portfolio loans on a non-recourse basis. 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 as of December 31, 2014 and December 31, 2013, respectively: | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(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 | $ | — | $ | — | $ | — | $ | — | $ | 33,050 | $ | 33,050 | ||||||||||||||||
Secured by farmland | — | — | — | — | 19,708 | 19,708 | ||||||||||||||||||||||
Secured by 1-4 family residential | 819 | — | 548 | 1,367 | 263,849 | 265,216 | ||||||||||||||||||||||
Other real estate loans | — | — | — | — | 255,236 | 255,236 | ||||||||||||||||||||||
Commercial loans | 138 | — | 320 | 458 | 162,811 | 163,269 | ||||||||||||||||||||||
Consumer loans | 16 | 1 | 3,003 | 3,020 | 15,347 | 18,367 | ||||||||||||||||||||||
Total | $ | 973 | $ | 1 | $ | 3,871 | $ | 4,845 | $ | 750,001 | $ | 754,846 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(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 ninety days or more and still accruing by class of loans as of December 31, 2014 and 2013, respectively: | ||||||||||||||||||||||||||||
2014 | 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 | $ | 247 | $ | — | $ | 2,368 | $ | 268 | ||||||||||||||||||||
Secured by 1-4 family residential | 4,932 | — | 9,458 | 539 | ||||||||||||||||||||||||
Other real estate loans | 1,472 | — | 6,045 | — | ||||||||||||||||||||||||
Commercial loans | 290 | 30 | 1,844 | — | ||||||||||||||||||||||||
Consumer loans | 3,003 | — | 37 | 1 | ||||||||||||||||||||||||
Total | $ | 9,944 | $ | 30 | $ | 19,752 | $ | 808 | ||||||||||||||||||||
If interest on nonaccrual loans had been accrued, such income would have approximated $544,000, $1.1 million, and $1.4 million for the years ended December 31, 2014, 2013, and 2012, respectively. The Company sold $6.6 million in loans during 2014, of which, $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 as of December 31, 2014 and 2013, respectively: | ||||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(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 | $ | 25,637 | $ | 11,203 | $ | 255,898 | $ | 232,169 | $ | 159,595 | $ | 15,310 | $ | 699,812 | ||||||||||||||
Special Mention | 6,764 | 7,903 | 1,518 | 15,687 | 3,059 | 18 | 34,949 | |||||||||||||||||||||
Substandard | 649 | 602 | 7,348 | 7,380 | 369 | 3,019 | 19,367 | |||||||||||||||||||||
Doubtful | — | — | 452 | — | 246 | 3 | 701 | |||||||||||||||||||||
Loss | — | — | — | — | — | 17 | 17 | |||||||||||||||||||||
Ending Balance | $ | 33,050 | $ | 19,708 | $ | 265,216 | $ | 255,236 | $ | 163,269 | $ | 18,367 | $ | 754,846 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(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 as of and for the year ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
December 31, 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 | $ | 131 | $ | 131 | $ | — | $ | 138 | $ | — | ||||||||||||||||||
Secured by farmland | 7,903 | 7,903 | — | 7,903 | 454 | |||||||||||||||||||||||
Secured by 1-4 family residential | 1,919 | 2,047 | — | 2,032 | 16 | |||||||||||||||||||||||
Other real estate loans | 3,289 | 3,289 | — | 3,352 | 104 | |||||||||||||||||||||||
Commercial loans | 448 | 448 | — | 454 | 18 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 13,690 | $ | 13,818 | $ | — | $ | 13,879 | $ | 592 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 115 | $ | 115 | $ | 66 | $ | 124 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,694 | 3,746 | 1,370 | 3,704 | 11 | |||||||||||||||||||||||
Other real estate loans | 1,242 | 1,242 | 294 | 1,260 | 69 | |||||||||||||||||||||||
Commercial loans | 398 | 1,248 | 292 | 783 | 7 | |||||||||||||||||||||||
Consumer loans | 3,019 | 3,019 | 647 | 3,021 | 2 | |||||||||||||||||||||||
Total with a related allowance | $ | 8,468 | $ | 9,370 | $ | 2,669 | $ | 8,892 | $ | 89 | ||||||||||||||||||
Total | $ | 22,158 | $ | 23,188 | $ | 2,669 | $ | 22,771 | $ | 681 | ||||||||||||||||||
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 December 31, 2014 was $6.9 million of which $2.6 million were included in the Company’s nonaccrual loan totals at that date and $4.3 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 $517,000 and $2.8 million as of December 31, 2014 and 2013 respectively. | ||||||||||||||||||||||||||||
Loan modifications that were classified as TDRs during the years ended December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(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 | — | $ | — | $ | — | 4 | $ | 765 | $ | 698 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | — | ||||||||||||||||||||||
Secured by 1-4 family residential | 4 | 1,190 | 1,190 | 12 | 3,627 | 3,207 | ||||||||||||||||||||||
Other real estate loans | 1 | 200 | 200 | 5 | 869 | 805 | ||||||||||||||||||||||
Total real estate loans | 5 | 1,390 | 1,390 | 21 | 5,261 | 4,710 | ||||||||||||||||||||||
Commercial loans | — | — | — | 2 | 516 | 509 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 5 | $ | 1,390 | $ | 1,390 | 23 | $ | 5,777 | $ | 5,219 | ||||||||||||||||||
Of the five contracts classified as TDRs during 2014, two were sold and two were paid off totaling $907,000. The interest rate was lowered for the one remaining contract outstanding. There were no outstanding commitments to lend additional amounts to troubled debt restructured borrowers at December 31, 2014. During 2013, of the 23 loans that were considered to be TDRs, the terms were extended for 18 loans, the interest rates were lowered for 18 loans and 12 loans were placed on interest only payment methods. | ||||||||||||||||||||||||||||
During the year ended December 31, 2014, the Company identified as TDRs two loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying these loans as TDRs, the Company evaluated them for impairment. The accounting amendments require prospective application of the impairment measurement guidance for those loans newly identified as impaired. As of December 31, 2014, the recorded investment in the loans restructured during 2014 for which the allowance was previously measured under a general allowance methodology was $916,000, and there was no allowance for loan losses associated with those loans on the basis of a current evaluation of loss. | ||||||||||||||||||||||||||||
During the year ended December 31, 2013, the Company identified as TDRs, 13 loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying these loans as TDRs, the Company evaluated them for impairment. As of December 31, 2013, the recorded investment in the loans restructured during 2013 for which the allowance was previously measured under a general allowance methodology was $3.5 million, and the allowance for loan losses associated with those loans, on the basis of a current evaluation of loss was $1.3 million. | ||||||||||||||||||||||||||||
TDR payment defaults as of December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | 1 | $ | 132 | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | — | — | ||||||||||||||||||||||||
Other real estate loans | — | — | — | — | ||||||||||||||||||||||||
Total real estate loans | — | — | 1 | 132 | ||||||||||||||||||||||||
Commercial loans | 1 | 44 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 44 | 1 | $ | 132 | ||||||||||||||||||||||
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 | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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). | ||||||||||||||||||||||||||||
December 31, 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 | (1,186 | ) | — | (1,380 | ) | (747 | ) | (959 | ) | (36 | ) | (4,308 | ) | |||||||||||||||
Recoveries | 258 | — | 342 | 110 | 104 | 95 | 909 | |||||||||||||||||||||
Provision | 631 | 13 | (1,635 | ) | 1,047 | 1,319 | 585 | 1,960 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 550 | $ | 179 | $ | 3,966 | $ | 3,916 | $ | 2,354 | $ | 821 | $ | 11,786 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 66 | $ | — | $ | 1,370 | $ | 294 | $ | 292 | $ | 647 | $ | 2,669 | ||||||||||||||
Collectively evaluated for impairment | 484 | 179 | 2,596 | 3,622 | 2,062 | 174 | 9,117 | |||||||||||||||||||||
Total ending allowance balance | $ | 550 | $ | 179 | $ | 3,966 | $ | 3,916 | $ | 2,354 | $ | 821 | $ | 11,786 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 246 | $ | 7,903 | $ | 5,613 | $ | 4,531 | $ | 846 | $ | 3,019 | $ | 22,158 | ||||||||||||||
Collectively evaluated for impairment | 32,804 | 11,805 | 259,603 | 250,705 | 162,423 | 15,348 | 732,688 | |||||||||||||||||||||
Total ending loans balance | $ | 33,050 | $ | 19,708 | $ | 265,216 | $ | 255,236 | $ | 163,269 | $ | 18,367 | $ | 754,846 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(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 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
(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, 2011 | $ | 897 | $ | 110 | $ | 7,465 | $ | 4,385 | $ | 1,621 | $ | 145 | $ | 14,623 | ||||||||||||||
Charge-offs | (2,152 | ) | — | (893 | ) | (760 | ) | (394 | ) | (72 | ) | (4,271 | ) | |||||||||||||||
Recoveries | 2 | — | 388 | 86 | 12 | 33 | 521 | |||||||||||||||||||||
Provision | 2,511 | 25 | (684 | ) | 637 | 859 | 90 | 3,438 | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | — | $ | 2,724 | $ | 1,045 | $ | 338 | $ | 30 | $ | 4,303 | ||||||||||||||
Collectively evaluated for impairment | 1,092 | 135 | 3,552 | 3,303 | 1,760 | 166 | 10,008 | |||||||||||||||||||||
Total ending allowance balance | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | — | $ | 10,792 | $ | 10,640 | $ | 2,364 | $ | 30 | $ | 26,795 | ||||||||||||||
Collectively evaluated for impairment | 47,249 | 11,876 | 249,828 | 244,290 | 116,209 | 13,230 | 682,682 | |||||||||||||||||||||
Total ending loans balance | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
Premises_and_Equipment_Net
Premises and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Premises and Equipment, Net | Premises and Equipment, Net | |||||||
Premises and equipment consists of the following: | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 1,858 | $ | 2,370 | ||||
Facilities | 20,189 | 20,675 | ||||||
Furniture, fixtures, and equipment | 11,392 | 12,473 | ||||||
Construction in process and deposits on equipment | 2,016 | 1,867 | ||||||
35,455 | 37,385 | |||||||
Less accumulated depreciation | (17,351 | ) | (17,368 | ) | ||||
Total | $ | 18,104 | $ | 20,017 | ||||
Depreciation expense was $1.5 million for the year ended December 31, 2014 and $1.8 million for the years ended December 31, 2013, and 2012. | ||||||||
Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2014, pertaining to banking premises and equipment, future minimum rent commitments (in thousands) under various operating leases are as follows: | ||||||||
2015 | $ | 2,011 | ||||||
2016 | 1,713 | |||||||
2017 | 1,554 | |||||||
2018 | 1,502 | |||||||
2019 | 1,514 | |||||||
Thereafter | 15,954 | |||||||
$ | 24,248 | |||||||
Rent expense was $2.8 million, $3.7 million, and $3.6 million for the years ended December 31, 2014, 2013, and 2012, respectively, and is included in occupancy and equipment expense on the consolidated statements of income. |
Deposits
Deposits | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Banking and Thrift [Abstract] | ||||
Deposits | Deposits | |||
The Company has developed an interest bearing product that integrates the use of the cash within client accounts at Middleburg Trust Company for overnight funding at Middleburg Bank. The overall balance of this product was $42.2 million and $42.1 million at December 31, 2014 and 2013, respectively. | ||||
The aggregate amount of jumbo time deposits, each with a minimum denomination of $250,000, was approximately $81.5 million and $80.5 million at December 31, 2014 and 2013, respectively. | ||||
At December 31, 2014, the scheduled maturities of time deposits (in thousands) are as follows: | ||||
2015 | $ | 114,838 | ||
2016 | 79,841 | |||
2017 | 48,722 | |||
2018 | 2,374 | |||
2019 | 3,163 | |||
$ | 248,938 | |||
At December 31, 2014 and 2013, overdraft demand deposits reclassified to loans totaled $148,000 and $133,000, respectively. | ||||
Middleburg Bank obtains certain deposits through the efforts of third-party brokers. At December 31, 2014 and 2013, brokered deposits totaled $48.7 million and $61.0 million, respectively, and were included in time deposits. |
Borrowings
Borrowings | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Disclosure [Abstract] | ||||
Borrowings | Borrowings | |||
As of December 31, 2014, Middleburg Bank had remaining credit availability in the amount of $305.5 million at the Federal Home Loan Bank of Atlanta. This line may be utilized for short and/or long-term borrowing. Advances on the line are secured by all of the Company’s first lien residential real estate loans on 1-4 unit, single-family dwellings; home equity lines of credit; and eligible commercial real estate loans. The amount of the available credit is limited to a percentage of the estimated market value of the loans as determined periodically by the FHLB of Atlanta. Any borrowings in excess of the qualifying collateral require pledging of additional assets. | ||||
The Company had $55.0 million of Federal Home Loan Bank advances outstanding as of December 31, 2014. The interest rates on these advances ranged from 0.20% to 1.11% and the weighted-average rate was 0.46%. The Company’s Federal Home Loan Bank advances totaled $80.0 million at December 31, 2013. The weighted-average interest rate on these advances at December 31, 2013 was 1.13%. | ||||
The contractual maturities of the Company’s long-term debt are as follows: | ||||
(Dollars in thousands) | December 31, 2014 | |||
Due in 2015 | $ | 50,000 | ||
Due in 2016 | 5,000 | |||
Total | $ | 55,000 | ||
Securities sold under agreements to repurchase include: | ||||
• | Secured transactions with customers which generally mature the day following the day sold totaling $26.3 million and $22.17 million at December 31, 2014 and December 31, 2013, respectively. | |||
• | Two structured repurchase agreements in the amounts of $7.2 million and $5.0 million at December 31, 2014 and $7.4 million and $5.0 million at December 31, 2013 with maturities of January 18, 2015 and May 27, 2015, respectively. | |||
The outstanding balances and related information for securities sold under agreements to repurchase are summarized as follows: | ||||
(Dollars in thousands) | Securities sold under agreements to repurchase | |||
At December 31: | ||||
2014 | $ | 38,551 | ||
2013 | 34,539 | |||
Weighted-average interest rate at year-end: | ||||
2014 | 0.8 | % | ||
2013 | 0.9 | |||
Maximum amount outstanding at any month's end: | ||||
2014 | $ | 43,989 | ||
2013 | 41,684 | |||
Average amount outstanding during the year: | ||||
2014 | $ | 37,035 | ||
2013 | 36,227 | |||
Weighted-average interest rate during the year: | ||||
2014 | 0.86 | % | ||
2013 | 0.91 | |||
At December 31, 2013, Southern Trust Mortgage had a $75 million line of credit for financing mortgage notes it originated until such time the mortgage notes were sold and a $5 million line of credit for operating purposes with Middleburg Bank, of which $32.3 million and $89,000, respectively, were outstanding at December 31, 2013. These lines of credit were eliminated in the consolidation process and were not reflected in the consolidated financial statements of the Company. On May 15, 2014, Middleburg Financial Corporation, through its banking subsidiary, Middleburg Bank, sold all of its majority interest in Southern Trust Mortgage. As of the date of sale, the Company reduced the line of credit to $17 million of which $8.5 million was outstanding at December 31, 2014 and is classified as a loan in the consolidated financial statements of the Company. | ||||
The Company also has a line of credit with the Federal Reserve Bank of Richmond of $35.8 million of which there was no outstanding balance at December 31, 2014. | ||||
The Company has an additional $24 million in lines of credit available from other institutions at December 31, 2014. |
ShareBased_Compensation_Plan
Share-Based Compensation Plan | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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. | |||||||||||||||||||||||||||||||||
The Company granted 35,000 shares of restricted stock on May 7, 2014 to certain employees and executive officers. The restricted stock awards are a hybrid performance and service-based awards that contain performance-based acceleration provisions if certain financial performance targets are met during pre-defined monitoring periods. If the performance targets are not met during the monitoring periods, only 50% of the awarded shares will vest on December 31, 2018. Under the terms of the award, vesting may be accelerated on a partial basis after December 31, 2016 depending on financial results for the years 2014 through 2016. Vesting may be accelerated each year thereafter until December 31, 2018 based on financial results as compared to a selected peer group for the preceding three years. If the stock award is not vested through acceleration, 50% of any unvested shares will become vested on December 31, 2018. All unearned restricted stock grants are forfeited if the employee leaves the Company prior to vesting. | |||||||||||||||||||||||||||||||||
The following service-based restricted stock, not included in the above group, were issued: | |||||||||||||||||||||||||||||||||
• | On November 3, 2014, 2,000 shares of service-based restricted stock was issued to an employee. These shares will vest over a three-year period. | ||||||||||||||||||||||||||||||||
• | On January 27, 2014 and May 7, 2014, 133 shares and 4,400 shares of restricted stock, respectively, were awarded to members of the board of directors. These shares will vest at 100% on April 30, 2014 and April 30, 2015, respectively. | ||||||||||||||||||||||||||||||||
For the years ended December 31, 2014, 2013, and 2012, the Company recorded $426,000, $492,000, and $440,000, respectively, in share-based compensation expense related to restricted stock and option grants. The total income tax benefit related to share-based compensation was $63,000, $54,000, and $79,000 in 2014, 2013, and 2012, respectively. | |||||||||||||||||||||||||||||||||
The following table summarizes restricted stock awarded under the 2006 Equity Compensation Plan: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Non-vested at the beginning of the year | 119,250 | $ | 16.39 | 109,944 | $ | 15.83 | 64,518 | $ | 14.96 | ||||||||||||||||||||||||
Granted | 41,533 | 17.65 | 32,500 | 17.96 | 49,975 | 16.86 | |||||||||||||||||||||||||||
Vested | (15,425 | ) | 15.59 | (10,944 | ) | 15.54 | (4,549 | ) | 14.79 | ||||||||||||||||||||||||
Forfeited or expired | (11,250 | ) | 16.05 | (12,250 | ) | 16.33 | — | — | |||||||||||||||||||||||||
Non-vested at end of the year | 134,108 | $ | 16.66 | $ | 2,415 | 119,250 | $ | 16.39 | $ | 2,151 | 109,944 | $ | 15.83 | $ | 1,942 | ||||||||||||||||||
The weighted-average remaining contractual term for non-vested grants at December 31, 2014, 2013, and 2012 was 3.5 , 3.9, and 4.3 years, respectively. As of December 31, 2014, there was $1.4 million of total unrecognized compensation expense related to the non-vested service awards granted under the 2006 Equity Compensation Plan. | |||||||||||||||||||||||||||||||||
The aggregate intrinsic value 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 following table summarizes restricted stock performance awards granted under the 2006 Equity Compensation Plan: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Non-vested at the beginning of the year | — | $ | — | 10,511 | $ | 13.92 | 21,702 | $ | 14.27 | ||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||
Vested | — | — | (10,511 | ) | 13.92 | (8,383 | ) | 14.59 | |||||||||||||||||||||||||
Forfeited or expired | — | — | — | — | (2,808 | ) | 14.59 | ||||||||||||||||||||||||||
Non-vested at end of the year | — | $ | — | $ | — | — | $ | — | $ | — | 10,511 | $ | 13.92 | $ | 186 | ||||||||||||||||||
There were no performance-based restricted stock granted during the years ended December 31, 2014, 2013, and 2012. Performance-based restricted stock awards vest based on the target levels being reached over a three-year period. Compensation expense is recognized based on the grant-date fair value of the awards and the estimated forfeiture rate associated with achieving the target result level. As of December 31, 2014, there was no unrecognized compensation expense related to non-vested awards. | |||||||||||||||||||||||||||||||||
Stock options may be granted periodically to certain officers and employees under the Company’s share-based compensation plan at prices equal to the market value of the stock on the date the options are granted. Options granted vest over a three-year time period over which 25% vests on each of the first and second anniversaries of the grant and 50% on the third anniversary of the grant. As of December 31, 2014, all outstanding option awards were vested and, accordingly, there was no unrecognized compensation expense related to unvested stock-based option awards. Shares issued in connection with stock option exercises may be issued from available treasury shares or from market purchases. There were no stock option awards granted during the years ended December 31, 2014, 2013 or 2012. | |||||||||||||||||||||||||||||||||
The following table summarizes options outstanding under the 2006 Equity Compensation Plan at the end of the reportable periods. | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||||||||
Outstanding at beginning of year | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | 160,171 | $ | 20.4 | ||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercised | (25,501 | ) | 14 | (2,743 | ) | 14 | — | — | |||||||||||||||||||||||||
Forfeited or expired | (3,000 | ) | 39.4 | (20,915 | ) | 23.42 | (78,000 | ) | 23.64 | ||||||||||||||||||||||||
Outstanding at end of year | 30,012 | $ | 14 | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | ||||||||||||||||||||||||
Options exercisable at year end | 30,012 | $ | 14 | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | ||||||||||||||||||||||||
The total intrinsic value of options exercised was $126,500 and $11,100 during 2014 and 2013, respectively. There was $120,300 and $160,300 aggregate intrinsic value of options outstanding at December 31, 2014 and 2013, respectively. There was no aggregate intrinsic value of options outstanding at December 31, 2012. | |||||||||||||||||||||||||||||||||
As of December 31, 2014, options outstanding and exercisable are summarized as follows: | |||||||||||||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted-Average Remaining Contractual Life (years) | Options Exercisable | ||||||||||||||||||||||||||||||
$ | 14 | 25,012 | 4.2 | 25,012 | |||||||||||||||||||||||||||||
$ | 14 | 5,000 | 4.84 | 5,000 | |||||||||||||||||||||||||||||
$ | 14 | 30,012 | 4.31 | 30,012 | |||||||||||||||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans |
401(k) Plan | |
The Company has a 401(k) plan whereby a majority of employees participate in the plan. Employees may contribute up to 100% of their compensation subject to certain limits based on federal tax laws. The Company makes matching contributions equal to 50% of the first 6% of an employee’s compensation contributed to the plan. Matching contributions vest to the employee equally over a five year period. For the years ended December 31, 2014, 2013, and 2012, expense attributable to the plan amounted to $340,000, $355,000 and $308,000, respectively. | |
Money Purchase Pension Plan (MPPP) | |
The Middleburg Financial Corporation Defined Benefit Pension Plan was replaced by a Money Purchase Pension Plan effective on January 1, 2010. Employees who have attained age 21 and completed one year of service are eligible to participate in the plan as of the first day of the month following the completion of such eligibility provisions. Employees earn a year of service if they complete one thousand hours of service in a plan year. Service with Middleburg Financial Corporation and its subsidiaries prior to the effective date of the Plan counts toward a participant's initial eligibility to participate in the plan. | |
Each year, a participant receives an allocation of an employer contribution equal to 6.5% of total compensation (up to the statutory maximum) plus an additional contribution of 2.75% of compensation in excess of the Social Security taxable wage base (up to the statutory maximum). To receive an allocation, the participant must complete one thousand hours of service in the plan year and be employed on the last day of the plan year. The requirement to be employed on the last day of the plan year does not apply if a participant dies, retires, or becomes disabled during the plan year. | |
Participants become vested in their employer contributions according to a schedule which allows for graduated vesting and full vesting after five years of service. Service with Middleburg Financial Corporation and its subsidiaries prior to the effective date of the Plan count toward a participant's vested percentage. | |
Assets are held in a pooled investment account managed by Middleburg Trust Company, a wholly owned subsidiary of the Company. Distributions may be made upon termination of employment, death or disability. | |
The plan is administered by the Benefits Committee of the Company. The plan may be amended from time to time by the Board or its delegate and may be terminated by the Board at any time for any reason. | |
For the years ended December 31, 2014 , 2013, and 2012 expense attributable to the plan was $898,000, $1.0 million, and $940,000, respectively. | |
Deferred Compensation Plans | |
The Company has adopted several deferred compensation plans; including a defined benefit SERP, an elective deferral plan for the Chairman, and a defined contribution SERP for certain Executive Officers. The two plans for the Chairman made installment payouts in 2014, 2013 and 2012. The defined contribution SERP for Executive Officers includes a vesting schedule, and is currently credited at a rate using the 10-year treasury plus 1.5%. The deferred compensation expense for 2014, 2013, and 2012, was $222,000, $210,000, and $204,000, respectively. The plans are unfunded; however, life insurance has been acquired on the life of the employees in amounts sufficient to help meet the costs of the obligations. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The Company files income tax returns in the U.S. federal jurisdiction and the state of Virginia and various other states. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years prior to 2011. | ||||||||||||
The Company believes it is more likely than not that the benefit of deferred tax assets will be realized. Consequently, no valuation allowance for deferred tax assets is deemed necessary at December 31, 2014 and 2013. | ||||||||||||
Net deferred tax assets consist of the following components as of December 31, 2014 and 2013: | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loan losses | $ | 4,007 | $ | 4,508 | ||||||||
Deferred compensation | 613 | 581 | ||||||||||
Investment in affiliate | — | 401 | ||||||||||
Interest rate swap | 98 | 15 | ||||||||||
Other real estate owned | 256 | 263 | ||||||||||
Other | 1,833 | 2,204 | ||||||||||
Total deferred tax assets | $ | 6,807 | $ | 7,972 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred loan costs, net | $ | 125 | $ | 25 | ||||||||
Securities available for sale | 2,050 | 135 | ||||||||||
Property and equipment | 55 | 222 | ||||||||||
Total deferred tax liabilities | $ | 2,230 | $ | 382 | ||||||||
Net deferred tax assets | $ | 4,577 | $ | 7,590 | ||||||||
The provision for income taxes charged to operations for the years ended December 31, 2014, 2013, and 2012, consists of the following: | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current tax expense | $ | 1,160 | $ | 2,315 | $ | 759 | ||||||
Deferred tax expense (benefit) | 1,181 | (384 | ) | 1,207 | ||||||||
Total income tax expense | $ | 2,341 | $ | 1,931 | $ | 1,966 | ||||||
The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2014, 2013, and 2012, due to the following: | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Computed "expected" tax expense | $ | 3,374 | $ | 2,749 | $ | 2,874 | ||||||
Increase (decrease) in income taxes resulting from: | ||||||||||||
Tax-exempt income | (959 | ) | (1,037 | ) | (975 | ) | ||||||
Other, net | (74 | ) | 219 | 67 | ||||||||
$ | 2,341 | $ | 1,931 | $ | 1,966 | |||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions | Related Party Transactions | |||||||
The Company’s commercial and retail banking segment has, and may be expected to have in the future, banking transactions in the ordinary course of business with directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders, commonly referred to as related parties. Any loans made to related parties were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time of origination for comparable loans with persons not related to the lender; and did not involve more than the normal risk of collectability or present other unfavorable features. Loans outstanding to directors and executive officers at December 31, 2014 and 2013 were: | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | 2,983 | $ | 8,798 | ||||
Decrease due to status changes | — | (5,890 | ) | |||||
Principal additions | 1,590 | 762 | ||||||
Principal payments | (769 | ) | (687 | ) | ||||
Balance, December 31 | $ | 3,804 | $ | 2,983 | ||||
Additionally, unused commitments to extend credit to related parties were $1.5 million at December 31, 2014 and $2.3 million at December 31, 2013. | ||||||||
Related party deposits totaled $12.7 million and $11.6 million at December 31, 2014 and 2013, respectively. |
Contingent_Liabilities_and_Com
Contingent Liabilities and Commitments | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | Contingent Liabilities and Commitments |
In the normal course of business, there are various outstanding commitments and contingent liabilities, which are not reflected in the accompanying consolidated financial statements. The Company does not anticipate any material loss as a result of these transactions. | |
See Note 15 with respect to financial instruments with off-balance sheet risk. | |
The Company must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the years ended December 31, 2014 and 2013, the aggregate amount of gross daily average required reserves was approximately $2.3 million and $2.1 million, respectively. | |
On February 6, 2015, the Company entered into an agreement to purchase a building for $2.2 million. The building is located in Richmond, Virginia, and will be used in the operations of the Company. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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. | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | Shares | Per Share Amount | ||||||||||||||||
Earnings per share, basic | 7,106,171 | $ | 1.07 | 7,074,410 | $ | 0.87 | 7,031,971 | $ | 0.92 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Stock options | 6,939 | 14,887 | 8,962 | ||||||||||||||||||
Warrant (See note 23) | 13,491 | 17,849 | 2,186 | ||||||||||||||||||
Earnings per share, diluted | 7,126,601 | $ | 1.06 | 7,107,146 | $ | 0.87 | 7,043,119 | $ | 0.92 | ||||||||||||
In 2014, 2013, and 2012, stock options representing approximately 23,500, 11,900, and 37,700 shares, respectively, ranging in price from $22.00 to $39.40, were not included in the calculation of earnings per share because they would have been anti-dilutive. |
Retained_Earnings
Retained Earnings | 12 Months Ended |
Dec. 31, 2014 | |
Equity [Abstract] | |
Retained Earnings | Retained Earnings |
Transfers of funds from the banking subsidiary to the Parent Company in the form of loans, advances, and cash dividends are restricted by federal and state regulatory authorities. Federal regulations limit the payment of dividends to the sum of a bank’s current net income and retained net income of the two prior years. As of December 31, 2014, the subsidiary bank had approximately $15.2 million in excess of regulatory limitations available for transfer to the Parent Company. |
Financial_Instruments_With_Off
Financial Instruments With Off-Balance-Sheet Risk and Credit Risk | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Financial Instruments With Off-Balance-Sheet Risk and Credit Risk | Financial Instruments With Off-Balance Sheet Risk and Credit Risk | |||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, and interest rate swaps. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. See Note 24 for more information regarding the Company’s use of derivatives. | ||||||||
The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | ||||||||
A summary of the contract amount of the Company's exposure to off-balance sheet risk as of December 31, 2014 and 2013, is as follows: | ||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 143,012 | $ | 116,528 | ||||
Standby letters of credit | 3,617 | 2,849 | ||||||
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income producing commercial properties. | ||||||||
Unfunded commitments under lines of credit are commitments for possible future extensions of credit to existing customers. Those lines of credit may not be drawn upon to the total extent to which the Company is committed. | ||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company holds certificates of deposit, deposit accounts, and real estate as collateral supporting those commitments for which collateral is deemed necessary. | ||||||||
The Company had approximately $2.9 million in deposits in financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation (FDIC) at December 31, 2014. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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 December 31, 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 financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013. | |||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 41,397 | $ | — | $ | 41,397 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 57,740 | — | 57,740 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 173,213 | — | 173,213 | — | |||||||||||||||||
Non-agency | 28,123 | — | 28,123 | — | |||||||||||||||||
Other asset backed securities | 31,713 | — | 31,713 | — | |||||||||||||||||
Corporate securities | 16,077 | — | 16,077 | ||||||||||||||||||
Interest rate swaps | 50 | — | 50 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 337 | — | 337 | — | |||||||||||||||||
(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 | 333 | — | 333 | — | |||||||||||||||||
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 periods ended December 31, 2014 and 2013: | |||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | ||||||||||||||||||||
Description | Balance December 31, 2013 | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance December 31, 2014 | ||||||||||||||||
Corporate securities | $ | 488 | $ | — | $ | — | $ | (488 | ) | $ | — | ||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Description | Balance December 31, 2012 | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance December 31, 2013 | ||||||||||||||||
Corporate securities | $ | — | $ | — | $ | — | $ | 488 | $ | 488 | |||||||||||
The following table presents quantitative information as of December 31, 2013 related to Level III fair value measurements for financial assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
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 receivables 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 a loan becomes collateral-dependent and 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 and holding 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) | December 31, 2014 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 5,799 | $ | — | $ | 1,289 | $ | 4,510 | |||||||||||||
Other real estate owned | $ | 4,051 | $ | — | $ | 4,051 | $ | — | |||||||||||||
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 December 31, 2014 and 2013 about Level III fair value measurements for assets measured at fair value on a non-recurring basis: | |||||||||||||||||||||
2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 4,510 | Discounted appraised value | Discount for selling costs and age of appraisals | 0% - 100% (7%) | ||||||||||||||||
Repossessed assets | 1,132 | Market analysis | Historical sales activity | 50% | |||||||||||||||||
2013 | 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. | |||||||||||||||||||||
Securities held to maturity | |||||||||||||||||||||
Certain debt securities that management has the positive intent and ability to hold until maturity are recorded at amortized cost. Fair values are determined in a manner that is consistent with securities available for sale. | |||||||||||||||||||||
Restricted Securities | |||||||||||||||||||||
The restricted security category is comprised of FHLB and Federal Reserve Bank stock. These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and they lack a market. When the FHLB or Federal Reserve Bank repurchases stock, they repurchase at the stock's book value. Therefore, the carrying amounts of restricted securities approximate 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 December 31, 2014 and 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) | December 31, 2014 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 55,022 | $ | 55,022 | $ | 55,022 | $ | — | $ | — | |||||||||||
Securities held to maturity | 1,500 | 1,397 | — | 1,397 | — | ||||||||||||||||
Securities available for sale | 348,263 | 348,263 | — | 348,263 | — | ||||||||||||||||
Loans, net | 743,060 | 751,572 | — | 1,289 | 750,283 | ||||||||||||||||
Bank owned life insurance | 22,617 | 22,617 | — | 22,617 | — | ||||||||||||||||
Accrued interest receivable | 4,285 | 4,285 | — | 4,285 | — | ||||||||||||||||
Interest rate swaps | 50 | 50 | — | 50 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 989,080 | $ | 989,563 | $ | — | $ | 989,563 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 38,551 | 38,551 | — | 38,551 | — | ||||||||||||||||
FHLB borrowings | 55,000 | 55,042 | — | 55,042 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,159 | — | 5,159 | — | ||||||||||||||||
Accrued interest payable | 403 | 403 | — | 403 | — | ||||||||||||||||
Interest rate swaps | 337 | 337 | — | 337 | — | ||||||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
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 | — | ||||||||||||||||
Loans, net | 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 swaps | 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 | 80,000 | 80,666 | — | 80,666 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,198 | — | 5,198 | — | ||||||||||||||||
Accrued interest payable | 501 | 501 | — | 501 | — | ||||||||||||||||
Interest rate swaps | 304 | 304 | — | 304 | — | ||||||||||||||||
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. |
Capital_Requirements
Capital Requirements | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||
Capital Requirements | Capital Requirements | |||||||||||||||||
The Company, on a consolidated basis, and Middleburg Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Middleburg Bank must meet specific capital guidelines that involve quantitative measures of the Company's and Middleburg Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | ||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Company and Middleburg Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes, as of December 31, 2014 and 2013, that the Company and Middleburg Bank meet all capital adequacy requirements to which they are subject. | ||||||||||||||||||
As of December 31, 2014, the most recent notification from the Federal Reserve Bank categorized Middleburg Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the institution's category. | ||||||||||||||||||
The Company’s and Middleburg Bank’s actual capital amounts and ratios are also presented in the following table. | ||||||||||||||||||
Actual | Minimum Capital Requirement | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||
Total Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 128,971 | 17.00% | $ | 60,857 | 8.00% | N/A | N/A | ||||||||||
Middleburg Bank | 123,801 | 16.30% | 60,660 | 8.00% | $ | 75,825 | 10.00% | |||||||||||
Tier 1 Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 119,433 | 15.70% | $ | 30,428 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 114,293 | 15.10% | 30,330 | 4.00% | $ | 45,495 | 6.00% | |||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||
Consolidated | $ | 119,433 | 9.90% | $ | 48,232 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 114,293 | 9.50% | 48,141 | 4.00% | $ | 60,176 | 5.00% | |||||||||||
As of December 31, 2013 | ||||||||||||||||||
Total Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 124,313 | 15.90% | $ | 62,577 | 8.00% | N/A | N/A | ||||||||||
Middleburg Bank | 120,015 | 15.40% | 62,417 | 8.00% | $ | 78,022 | 10.00% | |||||||||||
Tier 1 Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 114,490 | 14.60% | $ | 31,289 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 110,217 | 14.10% | 31,209 | 4.00% | $ | 46,813 | 6.00% | |||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||
Consolidated | $ | 114,490 | 9.40% | $ | 48,550 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 110,217 | 9.10% | 48,484 | 4.00% | $ | 60,605 | 5.00% | |||||||||||
Goodwill_and_Intangibles_Asset
Goodwill and Intangibles Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Intangibles Assets | Goodwill and Intangibles Assets | ||||||||||||||||
As of December 31, 2014, goodwill and intangible assets relate to the Company’s acquisition of Middleburg Trust Company and Middleburg Investment Advisors. On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and on this date the related goodwill was eliminated. As of December 31, 2013, goodwill and intangible assets relate to the Company’s acquisition of Middleburg Trust Company and Middleburg Investment Advisors and the consolidation of Southern Trust Mortgage. | |||||||||||||||||
Goodwill is not amortized and the Company is no longer required to perform a test for impairment unless, based on an assessment of qualitative factors related to goodwill, the Company determines that it is more likely than not that the fair value is less than its carrying amount. If the likelihood of impairment is more than 50%, the Company must perform a test for impairment and may be required to record impairment charges. | |||||||||||||||||
As of December 31, 2013, the Company recorded a $500,000 goodwill impairment charge related to Southern Trust Mortgage which is reflected on the consolidated statements of income for 2013. Identifiable intangible assets are being amortized over the period of expected benefit, which is 15 years. | |||||||||||||||||
Information concerning goodwill and intangible assets is presented in the following table: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(Dollars In thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Identifiable intangibles | $ | 3,734 | $ | 3,348 | $ | 3,734 | $ | 3,177 | |||||||||
Unamortizable goodwill | 3,421 | — | 4,789 | — | |||||||||||||
Amortization expense of intangible assets for each of the three years ended December 31, 2014, 2013, and 2012 totaled $171,000. Estimated amortization expense of identifiable intangibles for the years ended December 31 follows: | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2015 | $ | 171 | |||||||||||||||
2016 | 171 | ||||||||||||||||
2017 | 44 | ||||||||||||||||
$ | 386 | ||||||||||||||||
Subordinated_Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2014 | |
Trust Preferred Capital Notes [Abstract] | |
Subordinated Notes | Subordinated Notes |
On December 12, 2003, MFC Capital Trust II, a wholly owned subsidiary of the Company, was formed for the purpose of issuing redeemable Capital Securities. On December 19, 2003, $5.0 million of trust-preferred securities were issued through a pooled underwriting totaling approximately $344 million. The securities have a LIBOR-indexed floating rate of interest. | |
During 2014, the interest rates ranged from 3.07% to 3.09%. For the year ended December 31, 2014, the weighted-average interest rate was 3.08%. The securities have a mandatory redemption date of January 23, 2034, and are subject to varying call provisions beginning January 23, 2009. The principal asset of the trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Capital Securities. See Note 24 for information regarding an interest rate swap entered into by the Company to manage the cash flows associated with these trust preferred securities. | |
The trust-preferred securities may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 Capital after its inclusion. The portion of the trust-preferred securities not considered as Tier 1 Capital may be included in Tier 2 Capital. On December 31, 2014, all of the Company’s trust-preferred securities are included in Tier I Capital. | |
The obligations of the Company with respect to the issuance of the Capital Securities constitute a full and unconditional guarantee by the Company of the trusts’ obligations with respect to the Capital Securities. | |
Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Capital Securities. There were no deferred interest payments on our junior subordinated debt securities at December 31, 2014, 2013 and 2012. |
Ownership_of_Southern_Trust_Mo
Ownership of Southern Trust Mortgage | 12 Months Ended |
Dec. 31, 2014 | |
Business Combinations [Abstract] | |
Ownership of Southern Trust Mortgage | Ownership of Southern Trust Mortgage |
In May 2008, Middleburg Bank acquired the membership interest units of one of the partners of Southern Trust Mortgage for $1.6 million. As a result, the Company’s ownership interest exceeded 50% of the issued and outstanding membership units. At December 31, 2013, the Company owned 62.3% of the issued and outstanding membership interest units of Southern Trust Mortgage, through its subsidiary, Middleburg Bank. On May 15, 2014, the Company sold 100% of its ownership interest in Southern Trust Mortgage. |
Condensed_Financial_Informatio
Condensed Financial Information - Parent Corporation Only | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
Condensed Financial Information - Parent Corporation Only | Condensed Financial Information – Parent Corporation Only | |||||||||||
BALANCE SHEETS | ||||||||||||
December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
ASSETS | ||||||||||||
Cash on deposit with subsidiary bank | $ | 563 | $ | 638 | ||||||||
Money market fund | — | 8 | ||||||||||
Investment securities available for sale | — | 44 | ||||||||||
Investment in subsidiaries | 124,242 | 115,444 | ||||||||||
Other assets | 2,651 | 1,650 | ||||||||||
TOTAL ASSETS | $ | 127,456 | $ | 117,784 | ||||||||
LIABILITIES | ||||||||||||
Subordinated notes | $ | 5,155 | $ | 5,155 | ||||||||
Other liabilities | 267 | 54 | ||||||||||
TOTAL LIABILITIES | 5,422 | 5,209 | ||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common stock | 17,494 | 17,403 | ||||||||||
Capital surplus | 44,892 | 44,251 | ||||||||||
Retained earnings | 55,854 | 50,689 | ||||||||||
Accumulated other comprehensive income, net | 3,794 | 232 | ||||||||||
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 112,575 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 127,456 | $ | 117,784 | ||||||||
STATEMENTS OF INCOME | ||||||||||||
Year End December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
INCOME: | ||||||||||||
Dividends from subsidiaries | $ | 3,440 | $ | 2,670 | $ | 1,880 | ||||||
Interest and dividends from investments | 15 | — | — | |||||||||
Other income | — | 41 | 37 | |||||||||
Total income | 3,455 | 2,711 | 1,917 | |||||||||
EXPENSES: | ||||||||||||
Salaries and employee benefits | 746 | 671 | 517 | |||||||||
Legal and professional fees | 56 | 20 | 27 | |||||||||
Directors fees | 280 | 279 | 251 | |||||||||
Interest expense | 279 | 279 | 280 | |||||||||
Other | 401 | 361 | 416 | |||||||||
Total expenses | 1,762 | 1,610 | 1,491 | |||||||||
Income before allocated tax benefits and undistributed income of subsidiaries | 1,693 | 1,101 | 426 | |||||||||
Income tax benefit | (753 | ) | (542 | ) | (559 | ) | ||||||
Income before equity in undistributed income of subsidiaries | 2,446 | 1,643 | 985 | |||||||||
Equity in undistributed income of subsidiaries | 5,138 | 4,511 | 5,501 | |||||||||
Net income | $ | 7,584 | $ | 6,154 | $ | 6,486 | ||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 7,584 | $ | 6,154 | $ | 6,486 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (5,138 | ) | (4,511 | ) | (5,501 | ) | ||||||
Share-based compensation | 426 | 492 | 440 | |||||||||
Increase in other assets | (1,099 | ) | (87 | ) | (112 | ) | ||||||
Increase (decrease) in other liabilities | 213 | 2 | (2 | ) | ||||||||
Net cash provided by operating activities | 1,986 | 2,050 | 1,311 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Proceeds from sales, calls and maturities of available for sale securities | 44 | — | — | |||||||||
Net cash provided by investing activities | 44 | — | — | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Net proceeds from issuance of common stock | 394 | 39 | — | |||||||||
Cash dividends paid on common stock | (2,419 | ) | (1,700 | ) | (1,408 | ) | ||||||
Repurchase of stock | (88 | ) | (103 | ) | (43 | ) | ||||||
Net cash (used in) financing activities | (2,113 | ) | (1,764 | ) | (1,451 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (83 | ) | 286 | (140 | ) | |||||||
Cash and Cash Equivalents at beginning of year | 646 | 360 | 500 | |||||||||
Cash and Cash Equivalents at end of year | $ | 563 | $ | 646 | $ | 360 | ||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||||||
Dec. 31, 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 subsequent to the sale date 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 twelve months ended December 31, 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 provides 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. | ||||||||||||||||||||
Information about reportable segments and reconciliation to the consolidated financial statements follows: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 43,149 | $ | 14 | $ | 450 | $ | (288 | ) | $ | 43,325 | |||||||||
Wealth management fees | — | 4,516 | — | (154 | ) | 4,362 | ||||||||||||||
Other income | 5,349 | — | 5,121 | (46 | ) | 10,424 | ||||||||||||||
Total operating income | 48,498 | 4,530 | 5,571 | (488 | ) | 58,111 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 5,227 | — | 304 | (288 | ) | 5,243 | ||||||||||||||
Salaries and employee benefits | 16,567 | 2,262 | 3,772 | — | 22,601 | |||||||||||||||
Provision for loan losses | 1,926 | — | 34 | — | 1,960 | |||||||||||||||
Other expense | 15,818 | 1,140 | 1,722 | (200 | ) | 18,480 | ||||||||||||||
Total operating expenses | 39,538 | 3,402 | 5,832 | (488 | ) | 48,284 | ||||||||||||||
Income before income taxes and non-controlling interest | 8,960 | 1,128 | (261 | ) | — | 9,827 | ||||||||||||||
Income tax expense | 1,894 | 447 | — | — | 2,341 | |||||||||||||||
Net income | 7,066 | 681 | (261 | ) | — | 7,486 | ||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | 98 | — | 98 | |||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 7,066 | $ | 681 | $ | (163 | ) | $ | — | $ | 7,584 | |||||||||
Total assets | $ | 1,338,604 | $ | 12,953 | $ | — | $ | (128,700 | ) | $ | 1,222,857 | |||||||||
Capital expenditures | $ | 911 | $ | 6 | $ | 3 | $ | — | $ | 920 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 3,807 | $ | — | $ | — | $ | 3,807 | ||||||||||
2013 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 43,702 | $ | 14 | $ | 1,773 | $ | (1,217 | ) | $ | 44,272 | |||||||||
Wealth management fees | — | 4,139 | — | (169 | ) | 3,970 | ||||||||||||||
Other income | 4,527 | — | 16,473 | (431 | ) | 20,569 | ||||||||||||||
Total operating income | 48,229 | 4,153 | 18,246 | (1,817 | ) | 68,811 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 6,444 | — | 1,340 | (1,217 | ) | 6,567 | ||||||||||||||
Salaries and employee benefits | 16,464 | 2,187 | 11,976 | — | 30,627 | |||||||||||||||
Provision for loan losses | 105 | — | 4 | — | 109 | |||||||||||||||
Other expense | 17,916 | 1,195 | 4,903 | (600 | ) | 23,414 | ||||||||||||||
Total operating expenses | 40,929 | 3,382 | 18,223 | (1,817 | ) | 60,717 | ||||||||||||||
Income before income taxes and non-controlling interest | 7,300 | 771 | 23 | — | 8,094 | |||||||||||||||
Income tax expense | 1,608 | 323 | — | — | 1,931 | |||||||||||||||
Net income | 5,692 | 448 | 23 | — | 6,163 | |||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 5,692 | $ | 448 | $ | 14 | $ | — | $ | 6,154 | ||||||||||
Total assets | $ | 1,222,837 | $ | 5,909 | $ | 41,745 | $ | (42,738 | ) | $ | 1,227,753 | |||||||||
Capital expenditures | $ | 895 | $ | — | $ | 33 | $ | — | $ | 928 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 3,979 | $ | 1,367 | $ | — | $ | 5,346 | ||||||||||
2012 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 46,095 | $ | 10 | $ | 2,740 | $ | (1,822 | ) | $ | 47,023 | |||||||||
Wealth management fees | — | 3,891 | — | (140 | ) | 3,751 | ||||||||||||||
Other income | 4,413 | — | 21,787 | (497 | ) | 25,703 | ||||||||||||||
Total operating income | 50,508 | 3,901 | 24,527 | (2,459 | ) | 76,477 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 8,433 | — | 2,213 | (1,822 | ) | 8,824 | ||||||||||||||
Salaries and employee benefits | 15,678 | 2,208 | 12,531 | — | 30,417 | |||||||||||||||
Provision for loan losses | 3,410 | — | 28 | — | 3,438 | |||||||||||||||
Other expense | 17,413 | 1,300 | 5,766 | (637 | ) | 23,842 | ||||||||||||||
Total operating expenses | 44,934 | 3,508 | 20,538 | (2,459 | ) | 66,521 | ||||||||||||||
Income before income taxes and non-controlling interest | 5,574 | 393 | 3,989 | — | 9,956 | |||||||||||||||
Income tax expense | 1,593 | 373 | — | — | 1,966 | |||||||||||||||
Net income | 3,981 | 20 | 3,989 | — | 7,990 | |||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | (1,504 | ) | — | (1,504 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 3,981 | $ | 20 | $ | 2,485 | $ | — | $ | 6,486 | ||||||||||
Total assets | $ | 1,216,813 | $ | 6,416 | $ | 94,282 | $ | (80,730 | ) | $ | 1,236,781 | |||||||||
Capital expenditures | $ | 947 | $ | — | $ | 98 | $ | — | $ | 1,045 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,150 | $ | 1,867 | $ | — | $ | 6,017 | ||||||||||
Capital_Purchase_Program_and_S
Capital Purchase Program and Stock Warrant | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Capital Purchase Program and Stock Warrant | Capital Purchase Program and Stock Warrant |
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 December 31, 2014. |
Derivatives
Derivatives | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 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 described in Note 19, “Subordinated Notes”. 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 described in Note 7, “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 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, hedge ineffectiveness for this interest rate swap of $6,000 was identified during 2014 and is classified as other operating expenses on the consolidated statements of income. | |||||||||||||||||||||||
The amounts included in accumulated other comprehensive income (loss) as unrealized losses (market value net of tax) were $185,000 and $29,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
Information concerning the derivative designated as a cash flow hedge at December 31, 2014 and 2013 is presented in the following tables: | |||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 213 | 0.23 | % | 2.59 | % | 5.8 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | — | $ | 74 | 0.16 | % | 1.43 | % | 4 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 72 | 0.23 | % | 2.59 | % | 6.8 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | 102 | $ | — | 0.17 | % | 1.43 | % | 5 | |||||||||||
Derivatives designated as fair value hedges | |||||||||||||||||||||||
The Company will from time to time utilize derivatives to limit exposure to the variability of fair market values of certain financial instruments. Information below is presented on derivatives designated as fair value hedges as of December 31, 2014 and 2013. | |||||||||||||||||||||||
Mortgage banking activities | |||||||||||||||||||||||
As a result of the Company's affiliation with Southern Trust Mortgage, and as part of the related mortgage banking activities, Southern Trust Mortgage entered into interest rate lock commitments which are commitments to originate loans whereby the interest rate on the loan is determined prior to funding and the customers have locked the interest rate. The period of time between the origination of a loan commitment and closing and sale of the loan generally ranges from 60 to 120 days. Southern Trust Mortgage either locked the loan and associated rate in with an investor and committed to deliver the loan only if settlement occurs ("best efforts delivery") or it committed to deliver the locked loan in a binding ("mandatory") delivery program with an investor. Because of the high correlation between best efforts delivery contracts and interest rate lock commitments, no gain or loss was recognized on best efforts contracts and any resulting interest rate risk associated with these transactions was borne by the ultimate purchaser of the loan. Accordingly, as of December 31, 2013, the Company did not designate best efforts delivery contracts and the related interest rate lock commitments as hedging instruments (See discussion below under "Derivatives not designated as hedging instruments"). On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and as a result, on this date, this activity ceased. | |||||||||||||||||||||||
Mandatory delivery of mortgage loans | |||||||||||||||||||||||
For the portion of interest rate lock commitments that were designated to be delivered under a mandatory delivery method, the Company, through its affiliation with Southern Trust Mortgage, bore the risk of changes in value of the commitment from the time a rate was locked with the mortgage customer until a loan was closed and ultimately sold to an investor. To mitigate this risk, the Company entered into forward sales contracts of mortgage backed securities ("MBS") with similar characteristics to the rate lock commitments. Both the rate lock commitments and the associated forward sales contracts were designated as fair value hedges by the Company as of December 31, 2013. On May 15, 2014, the Company sold all of its ownership interest in Southern Trust Mortgage and as a result, on this date, this activity ceased. Until the sate of sale, rate lock commitments and forward sales contracts of MBS were recorded at fair value with changes in fair value recorded through non-interest income on the consolidated statements of income. | |||||||||||||||||||||||
The notional amount of interest rate lock commitments related to mandatory delivery methods totaled $22.2 million at December 31, 2013. This represented a total of 110 open interest rate lock commitments under mandatory delivery at December 31, 2013. The fair value of the open interest rate lock commitments under mandatory delivery at December 31, 2013 were $16,000. | |||||||||||||||||||||||
At December 31, 2013, Southern Trust Mortgage had 27 open forward sales contracts of MBS with a notional value of $33.0 million. The fair value of these open forward sales contracts was $202,000 at December 31, 2013. Certain additional risks could arise from these forward delivery contracts in that the counterparties to the contracts may not be able to meet the terms of the contracts. At December 31, 2013, we did not expect any counterparty to fail to meet its obligations. Additional risks inherent in mandatory delivery programs include the risk that if Southern Trust Mortgage did not close the loans subject to interest rate lock commitments, they would be obligated to deliver MBS to the counterparty under the forward sales agreement. If this would have been required, Southern Trust Mortgage could have incurred significant costs in acquiring replacement loans or MBS. On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and as a result, on this date, this activity ceased. | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Best efforts delivery mortgage banking derivatives | |||||||||||||||||||||||
Interest rate lock commitments under best efforts delivery and the resulting commitments to deliver loans to investors on a best efforts basis are considered derivatives. For loans to be delivered under a best efforts delivery method, the Company mitigates any risk from changes in interest rates through the use of best effort forward delivery commitments, whereby the Company commits to sell a loan at the time the borrower commits to an interest rate with the intent that the investor has assumed interest rate risk on the loan. As a result, the Company is not exposed to losses nor will it realize gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitment and the best efforts contracts is very high. | |||||||||||||||||||||||
As of December 31, 2013, the notional amount of open best efforts interest rate lock commitments was $103.5 million. The related notional amounts of open forward sales commitments to investors as of December 31, 2013 was $114.4 million. | |||||||||||||||||||||||
The market value of best effort rate lock commitments and best efforts forward delivery contracts is not readily ascertainable with | |||||||||||||||||||||||
precision because the rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. Because of the high correlation between rate lock commitments and best efforts contracts, no gain or loss occurs on the rate lock commitments. | |||||||||||||||||||||||
Since the time between when a loan is locked under a best efforts contract and delivery of that loan to an investor is short, and the investor has committed to purchase the loan at an agreed-upon price, if it settles, we have concluded that the difference between the fair value of the loans and the fair value of the best efforts commitments was not material. | |||||||||||||||||||||||
On May 15, 2014, the Company sold all of its majority interest in Southern Trust Mortgage and as a result, on this date, this activity ceased. | |||||||||||||||||||||||
Two-way client loan swaps | |||||||||||||||||||||||
During the fourth quarter of 2014 and 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 December 31, 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: | |||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,002 | $ | — | $ | 19 | 1 month LIBOR plus 200 BP | 3.9 | % | 12.9 | ||||||||||||
Pay fixed - receive floating interest rate swap | 1 | 1,747 | — | 31 | 1 month LIBOR plus 180 BP | 4.09 | % | 9.9 | |||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,002 | 19 | — | 3.9 | % | 1 month LIBOR plus 200 BP | 12.9 | |||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 1,747 | 31 | — | 4.09 | % | 1 month LIBOR plus 180 BP | 9.9 | |||||||||||||||
Total derivatives not designated | $ | 11,498 | $ | 50 | $ | 50 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,235 | $ | — | $ | 232 | 1 month LIBOR plus 200 BP | 3.9 | % | 13.9 | ||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,235 | 232 | — | 3.9 | % | 1 month LIBOR plus 200 BP | 13.9 | |||||||||||||||
Total derivatives not designated | $ | 8,470 | $ | 232 | $ | 232 | |||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
The following table presents information on changes in accumulated other comprehensive income (loss) for the periods indicated: | ||||||||||||||
(Dollars in thousands) | Unrealized Gains (Losses) on Securities | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance December 31, 2011 | $ | 4,133 | $ | (207 | ) | $ | 3,926 | |||||||
Unrealized holding gains (net of tax of $1,511) | 2,932 | — | 2,932 | |||||||||||
Reclassification adjustment (net of tax, $151) | (294 | ) | — | (294 | ) | |||||||||
Unrealized loss on interest rate swap (net of tax, $50) | — | (97 | ) | (97 | ) | |||||||||
Balance December 31, 2012 | 6,771 | (304 | ) | 6,467 | ||||||||||
Unrealized holding losses (net of tax of $3,212) | (6,234 | ) | — | (6,234 | ) | |||||||||
Reclassification adjustment (net of tax, $142) | (276 | ) | — | (276 | ) | |||||||||
Unrealized gain on interest rate swap (net of tax, $142) | — | 275 | 275 | |||||||||||
Balance December 31, 2013 | 261 | (29 | ) | 232 | ||||||||||
Unrealized holding losses (net of tax of $1,979) | 3,841 | — | 3,841 | |||||||||||
Reclassification adjustment (net of tax, $63) | (123 | ) | — | (123 | ) | |||||||||
Unrealized gain on interest rate swap (net of tax, $82) | — | (160 | ) | (160 | ) | |||||||||
Reclassification adjustment (net of tax, $2) | — | 4 | 4 | |||||||||||
Balance December 31, 2014 | $ | 3,979 | $ | (185 | ) | $ | 3,794 | |||||||
The following table presents information related to reclassifications from accumulated other comprehensive income (loss): | ||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||||
Net securities gains reclassified into earnings | $ | (186 | ) | $ | (418 | ) | $ | (445 | ) | Gain on securities available for sale | ||||
Related income tax expense | 63 | 142 | 151 | Income tax expense | ||||||||||
Derivatives (2): | ||||||||||||||
Loss on interest rate swap ineffectiveness | 6 | — | — | Other operating expense | ||||||||||
Related income tax benefit | (2 | ) | — | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (119 | ) | (276 | ) | (294 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (119 | ) | $ | (276 | ) | $ | (294 | ) | 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 24, "Derivatives". |
Nature_of_Banking_Activities_a1
Nature of Banking Activities and Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Principles of Consolidation | Principles of Consolidation | |
The consolidated financial statements of Middleburg Financial Corporation and its wholly owned subsidiaries, Middleburg Bank, Middleburg Investment Group, Inc., Middleburg Trust Company and Middleburg Bank Service Corporation include the accounts of all companies. Through May 15, 2014, the Company owned 62.3% of the issued and outstanding membership interest units of Southern Trust Mortgage, through its subsidiary, Middleburg Bank. The issued and outstanding interest of Southern Trust Mortgage not held by the Company is reported as Non-Controlling Interest in Consolidated Subsidiary. Accounting Standards Codification Topic 810, Consolidation, requires that the Company no longer eliminate through consolidation the equity investment in MFC Capital Trust II, which approximated $155,000 for each of the years ended December 31, 2014 and 2013. The subordinate debt of the trust preferred entity is reflected as a liability of the Company. All material intercompany balances and transactions have been eliminated in consolidation. | ||
Securities | Securities | |
Certain debt securities that management has the positive intent and ability to hold until maturity are classified as "held-to-maturity" and recorded at amortized cost. Securities not classified as held-to-maturity, including equity securities with readily determinable fair values, are classified as "available-for-sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss). Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. | ||
Equity investments in the FHLB and the Federal Reserve Bank of Richmond are separately classified as restricted securities and are carried at cost. | ||
Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either (i) the intent is to sell the security or (ii) it is more likely than not that it will be necessary to sell the security prior to recovery of its amortized cost. If, however, management’s intent is not to sell the security and it is not more than likely that management will be required to sell the security before recovery, management must determine what portion of the impairment is attributable to credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). | ||
For equity securities carried at cost as restricted securities, impairment is considered to be other-than-temporary based on our ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. We regularly review each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, our best estimate of the present value of cash flows expected to be collected from debt securities, the intention with regards to holding the security to maturity and the likelihood that we would be required to sell the security before recovery. | ||
Loans | Loans | |
The Company grants mortgage, commercial, and consumer loans to clients. The loan portfolio is segmented into commercial loans, real estate loans, and consumer loans. Real estate loans are further divided into the following classes: construction; farmland; 1-4 family residential; and other real estate loans. Descriptions of the Company’s loan classes are as follows: | ||
Commercial Loans: Commercial loans are typically secured with non-real estate commercial property. The Company makes commercial loans primarily to middle market businesses located within our market area. | ||
Real Estate Loans – Construction: The Company originates construction loans for the acquisition and development of land and construction of condominiums, townhomes, and 1-4 family residences. This class also includes acquisition, development and construction loans for retail and other commercial purposes, primarily in our market areas. | ||
Real Estate Loans- Farmland: Loans secured by agricultural property and not included in Real Estate – Other. | ||
Real Estate Loans – 1-4 Family: This class of loans includes loans secured by 1-4 family homes. The Company’s general practice is to sell the majority of its newly originated fixed-rate residential real estate loans in the secondary mortgage market, and to hold in its portfolio adjustable rate residential real estate loans and loans in close proximity to its financial service centers. | ||
Real Estate Loans – Other: This loan class consists primarily of loans secured by multi-unit residential property and owner and non-owner occupied commercial and industrial property. This class also includes loans secured by real estate which do not fall into other classifications. | ||
Consumer Loans: Consumer loans include all loans made to individuals for consumer or personal purposes. They include new and used auto loans, unsecured loans, lines of credit and home equity loans and lines of credit. | ||
The ability of the debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area. | ||
For all classes of loans, the Company considers loans to be past due when a payment is not received by the payment due date according to the contractual terms of the loan. The Company monitors past due loans according to the following categories: less than 30 days past due, 30 – 59 days past due, 60 – 89 days past due, and 90 days or greater past due. The accrual of interest on all classes of loans is discontinued at the time the loans are 90 days delinquent unless they are well-secured and in the process of collection. | ||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs on originated loans. Deferred fees and costs include discounts and premiums on syndicated and guaranteed loans purchased. Interest income is accrued on the unpaid principal balance. Loan origination and commitment fees, net of certain direct loan origination costs, are deferred and recognized as an adjustment of the loan yield over the life of the related loan. | ||
All interest accrued but not collected for loans that are placed on nonaccrual or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. | ||
Allowance for Loan Losses | Allowance for Loan Losses | |
The allowance for loan losses reflects management’s judgment of probable loan losses inherent in the portfolio at the balance sheet date. Management uses a disciplined process and methodology to establish the allowance for losses each quarter. To determine the total allowance for loan losses, the Company estimates the reserves needed for each segment of the portfolio, including loans analyzed individually and loans analyzed on a pooled basis. The allowance for loan losses consists of amounts applicable to: (i) the commercial loan portfolio; (ii) the real estate portfolio; and (iii) the consumer loan portfolio. | ||
To determine the allowance for loan losses, loans are pooled by portfolio segment and losses are modeled using historical experience, and quantitative and other mathematical techniques over the loss emergence period. Each class of loan requires exercising significant judgment to determine the estimation that fits the credit risk characteristics of its portfolio segment. The Company uses internally developed models in this process. Management must use judgment in establishing additional input metrics for the modeling processes. The models and assumptions used to determine the allowance are reviewed to ensure that their theoretical foundation, assumptions, data integrity, computational processes, reporting practices, and end user controls are appropriate and properly documented. | ||
The establishment of the allowance for loan losses relies on a consistent process that requires multiple layers of management review and judgment and responds to changes in economic conditions, customer behavior, and collateral value, among other influences. From time to time, events or economic factors may affect the loan portfolio, causing management to provide additional amounts to or release balances from the allowance for loan losses. Qualitative factors considered in the allowance for loan losses evaluation include the levels and trends in delinquencies and nonperforming loans, trends in volume and terms of loans, the effects of any changes in lending policies, the experience, ability, and depth of management, national and local economic trends and conditions, concentrations of credit, the quality of the Company’s loan review system, competition and regulatory requirements. The Company’s allowance for loan losses is sensitive to risk ratings and economic assumptions and delinquency trends driving statistically modeled reserves. Individual loan risk ratings are evaluated based on each situation by experienced senior credit officers. | ||
Management monitors differences between estimated and actual incurred loan losses. This monitoring process includes periodic assessments by senior management of loan portfolios and the models used to estimate incurred losses in those portfolios. Additions to the allowance for loan losses are made by charges to the provision for loan losses. Credit exposures deemed to be uncollectible are charged against the allowance for loan losses. Recoveries of previously charged-off amounts are credited to the allowance for loans losses. | ||
Loan Charge-off Policies | Loan Charge-off Policies | |
Commercial and consumer loans are generally charged off when: | ||
•they are 90 days past due; | ||
•the collateral is repossessed; or | ||
•the borrower has filed bankruptcy. | ||
All classes of real estate loans are charged down to the net realizable value when the Company determines that the sole source of repayment is liquidation of the collateral. | ||
Impaired Loans | Impaired Loans | |
For all classes of loans, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. | ||
For all classes of loans, impairment is measured on a loan-by-loan basis by comparing the loan balance to either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Any variance in values is charged-off when determined. | ||
Troubled Debt Restructurings | Troubled Debt Restructurings | |
In situations where, for economic or legal reasons related to a borrower’s financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a troubled debt restructuring (“TDR”). Management strives to identify borrowers in financial difficulty early and works with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. All identified TDRs are considered to be impaired loans. | ||
Management considers troubled debt restructurings and subsequent defaults in restructured loans in the determination of the adequacy of the Company's allowance for loan losses. When identified as a TDR, a loan is evaluated for potential loss as noted above for impaired loans. Loans identified as TDRs frequently are on nonaccrual status at the time of the restructuring and, in some cases, partial charge-offs may have already been taken against the loan and a specific allowance may have already been established for the loan. As a result of any modification as a TDR, the specific reserve associated with the loan may be increased. Additionally, loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future defaults. If loans modified in a TDR subsequently default, the Company evaluates them for possible further impairment. As a result, any specific allowance may be increased, adjustments may be made in the allocation of the total allowance balance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Management exercises significant judgment in developing estimates for potential losses associated with TDRs. | ||
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale | |
Mortgage loans held for sale are carried at the lower of aggregate cost or fair value. The fair value of mortgage loans held for sale is determined using current secondary market prices for loans with similar coupons, maturities, and credit quality and fair value of loans committed at year-end. There has been no significant 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 December 31, 2014. | ||
Premises and Equipment | Premises and Equipment | |
Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation of property and equipment is computed principally on the straight-line method over the following estimated useful lives: | ||
Years | ||
Buildings and improvements | Oct-40 | |
Furniture and equipment | 15-Mar | |
Maintenance and repairs of property and equipment are charged to operations and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the cost and accumulated depreciation are eliminated from the accounts and gain or loss is included in income. | ||
Other Real Estate Owned | Other Real Estate Owned and Repossessed Assets | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |
With the adoption of Accounting Standards Update (ASU) 2011-08, "Intangible-Goodwill and Other-Testing Goodwill for Impairment", the Company is no longer required to perform a test for impairment unless, based on an assessment of qualitative factors related to goodwill, the Company determines that it is more likely than not that the fair value is less than its carrying amount. If the likelihood of impairment is more than 50%, the Company must perform a test for impairment and may be required to record impairment charges. | ||
Additionally, acquired intangible assets (customer relationships) are separately recognized and amortized over their useful life of 15 years. | ||
Bank-Owned Life Insurance | Bank-Owned Life Insurance | |
The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as non-interest income on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit which would be recorded as other income. | ||
Income Taxes | Income Taxes | |
Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. | ||
When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the consolidated statements of income. No liabilities for unrecognized tax benefits have been recognized as of December 31, 2014 or 2013. | ||
Trust Company Assets | Trust Company Assets | |
Securities and other properties held by Middleburg Trust Company in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. | ||
Earnings Per Share | Earnings Per Share | |
Basic earnings per share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Nonvested restricted shares are included in basic earnings per share because of dividend participation rights. Diluted earnings per share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and the warrant, and are determined using the treasury stock method. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from other banks and federal funds sold. Generally, federal funds are sold and purchased for one-day periods. | ||
Use of Estimates | Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, impairment of goodwill and intangible assets, valuation of other real estate owned, and other-than-temporary impairment of securities. | ||
Advertising Costs | Advertising Costs | |
The Company follows the policy of charging the costs of advertising to expense as incurred. | ||
Comprehensive Income (Loss) | Comprehensive Income (Loss) | |
Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, and changes in the fair value of interest rate swaps, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss). | ||
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase | |
Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company does not account for repurchase agreement transactions as sales. All repurchase agreement transactions entered into by the Company are accounted for as collateralized financings. The Company may be required to provide additional collateral based on the fair value of the underlying securities. | ||
Derivative Financial Instruments | Derivative Financial Instruments | |
The Company utilizes derivative financial instruments as a part of its asset-liability management program to control exposure to interest rate changes and fluctuations in market values and cash flows 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 transaction at its inception. | ||
The Company documents all relationships between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges or cash flow hedges to specific assets or liabilities on the balance sheet. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are effective in offsetting changes in fair values or cash flows of hedged items. | ||
As of December 31, 2014, the Company had both fair value and cash flow hedges on its balance sheet as well as derivative financial instruments that have not been designated as hedging instruments. The derivatives are reported at fair value as of each balance sheet date. For designated cash flow hedges, the effective portions of changes in the fair value of the derivative are recorded in other comprehensive income (loss) and are recognized in the income statement when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges are recognized in earnings as are changes in market value of derivatives not designated as hedging instruments. | ||
Information concerning each of the Company's categories of derivatives as of December 31, 2014 and 2013 is presented in Note 24 to the consolidated financial statements. | ||
Reclassifications | Reclassifications | |
Certain reclassifications have been made to prior period balances to conform to current year presentation. No reclassifications were significant and had no effect on net income. | ||
Transfers of Financial Assets | Transfers of Financial Assets | |
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | ||
Share-Based Employee Compensation Plan | Share-Based Employee Compensation Plan | |
At December 31, 2014, the Company had a share-based employee compensation plan which is described more fully in Note 8 to the consolidated financial statements. Compensation cost relating to share-based payment transactions is recognized in the consolidated financial statements. That cost is measured based on the fair value of the equity instruments issued and recognized over the applicable vesting period. | ||
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 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 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 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 are 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. | ||
In November 2014, the FASB issued ASU No. 2014-16, “Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity.” The amendments in ASU do not change the current criteria in U.S. GAAP for determining when separation of certain embedded derivative features in a hybrid financial instrument is required. The amendments clarify how current U.S. GAAP should be interpreted in evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Specifically, the amendments clarify that an entity should consider all relevant terms and features, including the embedded derivative feature being evaluated for bifurcation, in evaluating the nature of the host contract. Furthermore, the amendments clarify that no single term or feature would necessarily determine the economic characteristics and risks of the host contract. Rather, the nature of the host contract depends upon the economic characteristics and risks of the entire hybrid financial instrument. The amendments in this ASU also clarify that, in evaluating the nature of a host contract, an entity should assess the substance of the relevant terms and features (i.e., the relative strength of the debt-like or equity-like terms and features given the facts and circumstances) when considering how to weight those terms and features. The amendments in this ASU are effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption, including adoption in an interim period, is permitted. The Company does not expect the adoption of ASU 2014-16 to have a material impact on its consolidated financial statements. | ||
In November 2014, the FASB issued ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments in ASU provide an acquired entity with an option to apply pushdown accounting in its separate financial statements upon occurrence of an event in which an acquirer obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. An acquired entity should determine whether to elect to apply pushdown accounting for each individual change-in-control event in which an acquirer obtains control of the acquired entity. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. An election to apply pushdown accounting in a reporting period after the reporting period in which the change-in-control event occurred should be considered a change in accounting principle in accordance with Topic 250, Accounting Changes and Error Corrections. If pushdown accounting is applied to an individual change-in-control event, that election is irrevocable. The amendments in this ASU are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. However, if the financial statements for the period in which the most recent change-in-control event occurred already have been issued or made available to be issued, the application of this guidance would be a change in accounting principle. The Company does not expect the adoption of ASU 2014-17 to have a material impact on its consolidated financial statements. | ||
In January 2015, the FASB issued ASU No. 2015-01, “Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.” The amendments in this ASU eliminate from U.S. GAAP the concept of extraordinary items. Subtopic 225-20, Income Statement - Extraordinary and Unusual Items, required that an entity separately classify, present, and disclose extraordinary events and transactions. Presently, an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item. If an event or transaction meets the criteria for extraordinary classification, an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of ASU 2015-01 to have a material impact on its consolidated financial statements. |
Nature_of_Banking_Activities_a2
Nature of Banking Activities and Significant Accounting Policies (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Estimated useful lives of property and equipment | Depreciation of property and equipment is computed principally on the straight-line method over the following estimated useful lives: | |
Years | ||
Buildings and improvements | Oct-40 | |
Furniture and equipment | 15-Mar |
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Held to maturity securities | Amortized costs and fair values of securities being held to maturity as of December 31, 2014 are summarized as follows. There were no securities held to maturity as of December 31, 2013. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,500 | $ | — | $ | (103 | ) | $ | 1,397 | ||||||||||||||||
Total | $ | 1,500 | $ | — | $ | (103 | ) | $ | 1,397 | ||||||||||||||||
The amortized cost and fair value of securities being held to maturity as of December 31, 2014, by contractual maturity are shown below. | |||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Due after ten years | $ | 1,500 | $ | 1,397 | |||||||||||||||||||||
Total | $ | 1,500 | $ | 1,397 | |||||||||||||||||||||
Amortized costs and fair values of securities available for sale | Amortized costs and fair values of securities available for sale as of December 31, 2014 and 2013, are summarized as follows: | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 41,317 | $ | 283 | $ | (203 | ) | $ | 41,397 | ||||||||||||||||
Obligations of states and political subdivisions | 55,541 | 2,408 | (209 | ) | 57,740 | ||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 169,257 | 4,698 | (742 | ) | 173,213 | ||||||||||||||||||||
Non-agency | 28,235 | 115 | (227 | ) | 28,123 | ||||||||||||||||||||
Other asset backed securities | 31,338 | 433 | (58 | ) | 31,713 | ||||||||||||||||||||
Corporate securities | 16,545 | 131 | (599 | ) | 16,077 | ||||||||||||||||||||
Total | $ | 342,233 | $ | 8,068 | $ | (2,038 | ) | $ | 348,263 | ||||||||||||||||
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 | Therefore, these securities are not included in the maturity categories in the following maturity summary. | ||||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||
(Dollars in thousands) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
Due in one year or less | $ | 3,801 | $ | 3,838 | |||||||||||||||||||||
Due after one year through five years | 48,256 | 50,105 | |||||||||||||||||||||||
Due after five years through ten years | 42,227 | 42,035 | |||||||||||||||||||||||
Due after ten years | 19,119 | 19,236 | |||||||||||||||||||||||
Mortgage-backed securities | 197,492 | 201,336 | |||||||||||||||||||||||
Other asset backed securities | 31,338 | 31,713 | |||||||||||||||||||||||
Total | $ | 342,233 | $ | 348,263 | |||||||||||||||||||||
Investments in continuous unrealized loss position | At December 31, 2014 and 2013, 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 | ||||||||||||||||||||||
2014 | Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | |||||||||||||||||||
Unrealized Losses | Unrealized Losses | Unrealized Losses | |||||||||||||||||||||||
Held to Maturity | |||||||||||||||||||||||||
Obligations of states and political subdivisions | $ | 1,397 | $ | (103 | ) | $ | — | $ | — | $ | 1,397 | $ | (103 | ) | |||||||||||
Total | $ | 1,397 | $ | (103 | ) | $ | — | $ | — | $ | 1,397 | $ | (103 | ) | |||||||||||
Available for Sale | |||||||||||||||||||||||||
U.S. government agencies | $ | 15,331 | $ | (65 | ) | $ | 5,833 | $ | (138 | ) | $ | 21,164 | $ | (203 | ) | ||||||||||
Obligations of states and political subdivisions | 2,780 | (14 | ) | 3,456 | (195 | ) | 6,236 | (209 | ) | ||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
Agency | 28,065 | (327 | ) | 11,027 | (415 | ) | 39,092 | (742 | ) | ||||||||||||||||
Non-agency | 15,488 | (167 | ) | 4,730 | (60 | ) | 20,218 | (227 | ) | ||||||||||||||||
Other asset backed securities | 6,594 | (45 | ) | 1,077 | (13 | ) | 7,671 | (58 | ) | ||||||||||||||||
Corporate securities | 9,192 | (391 | ) | 792 | (208 | ) | 9,984 | (599 | ) | ||||||||||||||||
Total | $ | 77,450 | $ | (1,009 | ) | $ | 26,915 | $ | (1,029 | ) | $ | 104,365 | $ | (2,038 | ) | ||||||||||
(Dollars in thousands) | Less than Twelve Months | Twelve Months or Greater | Total | ||||||||||||||||||||||
2013 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||
Available for Sale | |||||||||||||||||||||||||
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) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||
Consolidated loan portfolio | The consolidated loan portfolio was composed of the following: | |||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||
(Dollars in thousands) | Outstanding | Percent of | Outstanding | Percent of | ||||||||||||||||||||||||
Balance | Total Portfolio | Balance | Total Portfolio | |||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 33,050 | 4.4 | % | $ | 36,025 | 5 | % | ||||||||||||||||||||
Secured by farmland | 19,708 | 2.6 | 16,578 | 2.3 | ||||||||||||||||||||||||
Secured by 1-4 family residential | 265,216 | 35.1 | 273,384 | 37.5 | ||||||||||||||||||||||||
Other real estate loans | 255,236 | 33.8 | 260,333 | 35.7 | ||||||||||||||||||||||||
Commercial loans | 163,269 | 21.6 | 129,554 | 17.8 | ||||||||||||||||||||||||
Consumer loans | 18,367 | 2.5 | 12,606 | 1.7 | ||||||||||||||||||||||||
Total Gross Loans (1) | 754,846 | 100 | % | 728,480 | 100 | % | ||||||||||||||||||||||
Less allowance for loan losses | 11,786 | 13,320 | ||||||||||||||||||||||||||
Net loans | $ | 743,060 | $ | 715,160 | ||||||||||||||||||||||||
(1) | Includes net deferred loan costs and premiums of $3.0 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 as of December 31, 2014 and December 31, 2013, respectively: | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(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 | $ | — | $ | — | $ | — | $ | — | $ | 33,050 | $ | 33,050 | ||||||||||||||||
Secured by farmland | — | — | — | — | 19,708 | 19,708 | ||||||||||||||||||||||
Secured by 1-4 family residential | 819 | — | 548 | 1,367 | 263,849 | 265,216 | ||||||||||||||||||||||
Other real estate loans | — | — | — | — | 255,236 | 255,236 | ||||||||||||||||||||||
Commercial loans | 138 | — | 320 | 458 | 162,811 | 163,269 | ||||||||||||||||||||||
Consumer loans | 16 | 1 | 3,003 | 3,020 | 15,347 | 18,367 | ||||||||||||||||||||||
Total | $ | 973 | $ | 1 | $ | 3,871 | $ | 4,845 | $ | 750,001 | $ | 754,846 | ||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(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 ninety days or more and still accruing by class of loans as of December 31, 2014 and 2013, respectively: | ||||||||||||||||||||||||||||
2014 | 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 | $ | 247 | $ | — | $ | 2,368 | $ | 268 | ||||||||||||||||||||
Secured by 1-4 family residential | 4,932 | — | 9,458 | 539 | ||||||||||||||||||||||||
Other real estate loans | 1,472 | — | 6,045 | — | ||||||||||||||||||||||||
Commercial loans | 290 | 30 | 1,844 | — | ||||||||||||||||||||||||
Consumer loans | 3,003 | — | 37 | 1 | ||||||||||||||||||||||||
Total | $ | 9,944 | $ | 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 as of December 31, 2014 and 2013, respectively: | |||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||||
(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 | $ | 25,637 | $ | 11,203 | $ | 255,898 | $ | 232,169 | $ | 159,595 | $ | 15,310 | $ | 699,812 | ||||||||||||||
Special Mention | 6,764 | 7,903 | 1,518 | 15,687 | 3,059 | 18 | 34,949 | |||||||||||||||||||||
Substandard | 649 | 602 | 7,348 | 7,380 | 369 | 3,019 | 19,367 | |||||||||||||||||||||
Doubtful | — | — | 452 | — | 246 | 3 | 701 | |||||||||||||||||||||
Loss | — | — | — | — | — | 17 | 17 | |||||||||||||||||||||
Ending Balance | $ | 33,050 | $ | 19,708 | $ | 265,216 | $ | 255,236 | $ | 163,269 | $ | 18,367 | $ | 754,846 | ||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||||
(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 as of and for the year ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||
December 31, 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 | $ | 131 | $ | 131 | $ | — | $ | 138 | $ | — | ||||||||||||||||||
Secured by farmland | 7,903 | 7,903 | — | 7,903 | 454 | |||||||||||||||||||||||
Secured by 1-4 family residential | 1,919 | 2,047 | — | 2,032 | 16 | |||||||||||||||||||||||
Other real estate loans | 3,289 | 3,289 | — | 3,352 | 104 | |||||||||||||||||||||||
Commercial loans | 448 | 448 | — | 454 | 18 | |||||||||||||||||||||||
Consumer loans | — | — | — | — | — | |||||||||||||||||||||||
Total with no related allowance | $ | 13,690 | $ | 13,818 | $ | — | $ | 13,879 | $ | 592 | ||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | $ | 115 | $ | 115 | $ | 66 | $ | 124 | $ | — | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | |||||||||||||||||||||||
Secured by 1-4 family residential | 3,694 | 3,746 | 1,370 | 3,704 | 11 | |||||||||||||||||||||||
Other real estate loans | 1,242 | 1,242 | 294 | 1,260 | 69 | |||||||||||||||||||||||
Commercial loans | 398 | 1,248 | 292 | 783 | 7 | |||||||||||||||||||||||
Consumer loans | 3,019 | 3,019 | 647 | 3,021 | 2 | |||||||||||||||||||||||
Total with a related allowance | $ | 8,468 | $ | 9,370 | $ | 2,669 | $ | 8,892 | $ | 89 | ||||||||||||||||||
Total | $ | 22,158 | $ | 23,188 | $ | 2,669 | $ | 22,771 | $ | 681 | ||||||||||||||||||
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 | Loan modifications that were classified as TDRs during the years ended December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(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 | — | $ | — | $ | — | 4 | $ | 765 | $ | 698 | ||||||||||||||||||
Secured by farmland | — | — | — | — | — | — | ||||||||||||||||||||||
Secured by 1-4 family residential | 4 | 1,190 | 1,190 | 12 | 3,627 | 3,207 | ||||||||||||||||||||||
Other real estate loans | 1 | 200 | 200 | 5 | 869 | 805 | ||||||||||||||||||||||
Total real estate loans | 5 | 1,390 | 1,390 | 21 | 5,261 | 4,710 | ||||||||||||||||||||||
Commercial loans | — | — | — | 2 | 516 | 509 | ||||||||||||||||||||||
Consumer loans | — | — | — | — | — | — | ||||||||||||||||||||||
Total | 5 | $ | 1,390 | $ | 1,390 | 23 | $ | 5,777 | $ | 5,219 | ||||||||||||||||||
TDR payment defaults as of December 31, 2014 and December 31, 2013 were as follows: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||
Class of Loan | Number of Loans | Recorded Investment | Number of Loans | Recorded Investment | ||||||||||||||||||||||||
Real estate loans: | ||||||||||||||||||||||||||||
Construction | — | $ | — | 1 | $ | 132 | ||||||||||||||||||||||
Secured by farmland | — | — | — | — | ||||||||||||||||||||||||
Secured by 1-4 family residential | — | — | — | — | ||||||||||||||||||||||||
Other real estate loans | — | — | — | — | ||||||||||||||||||||||||
Total real estate loans | — | — | 1 | 132 | ||||||||||||||||||||||||
Commercial loans | 1 | 44 | — | — | ||||||||||||||||||||||||
Consumer loans | — | — | — | — | ||||||||||||||||||||||||
Total | 1 | $ | 44 | 1 | $ | 132 | ||||||||||||||||||||||
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 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). | |||||||||||||||||||||||||||
December 31, 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 | (1,186 | ) | — | (1,380 | ) | (747 | ) | (959 | ) | (36 | ) | (4,308 | ) | |||||||||||||||
Recoveries | 258 | — | 342 | 110 | 104 | 95 | 909 | |||||||||||||||||||||
Provision | 631 | 13 | (1,635 | ) | 1,047 | 1,319 | 585 | 1,960 | ||||||||||||||||||||
Balance at December 31, 2014 | $ | 550 | $ | 179 | $ | 3,966 | $ | 3,916 | $ | 2,354 | $ | 821 | $ | 11,786 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 66 | $ | — | $ | 1,370 | $ | 294 | $ | 292 | $ | 647 | $ | 2,669 | ||||||||||||||
Collectively evaluated for impairment | 484 | 179 | 2,596 | 3,622 | 2,062 | 174 | 9,117 | |||||||||||||||||||||
Total ending allowance balance | $ | 550 | $ | 179 | $ | 3,966 | $ | 3,916 | $ | 2,354 | $ | 821 | $ | 11,786 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 246 | $ | 7,903 | $ | 5,613 | $ | 4,531 | $ | 846 | $ | 3,019 | $ | 22,158 | ||||||||||||||
Collectively evaluated for impairment | 32,804 | 11,805 | 259,603 | 250,705 | 162,423 | 15,348 | 732,688 | |||||||||||||||||||||
Total ending loans balance | $ | 33,050 | $ | 19,708 | $ | 265,216 | $ | 255,236 | $ | 163,269 | $ | 18,367 | $ | 754,846 | ||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||||||
(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 | ||||||||||||||
31-Dec-12 | ||||||||||||||||||||||||||||
(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, 2011 | $ | 897 | $ | 110 | $ | 7,465 | $ | 4,385 | $ | 1,621 | $ | 145 | $ | 14,623 | ||||||||||||||
Charge-offs | (2,152 | ) | — | (893 | ) | (760 | ) | (394 | ) | (72 | ) | (4,271 | ) | |||||||||||||||
Recoveries | 2 | — | 388 | 86 | 12 | 33 | 521 | |||||||||||||||||||||
Provision | 2,511 | 25 | (684 | ) | 637 | 859 | 90 | 3,438 | ||||||||||||||||||||
Balance at December 31, 2012 | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Ending allowance: | ||||||||||||||||||||||||||||
Ending allowance balance attributable to loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 166 | $ | — | $ | 2,724 | $ | 1,045 | $ | 338 | $ | 30 | $ | 4,303 | ||||||||||||||
Collectively evaluated for impairment | 1,092 | 135 | 3,552 | 3,303 | 1,760 | 166 | 10,008 | |||||||||||||||||||||
Total ending allowance balance | $ | 1,258 | $ | 135 | $ | 6,276 | $ | 4,348 | $ | 2,098 | $ | 196 | $ | 14,311 | ||||||||||||||
Loans: | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,969 | $ | — | $ | 10,792 | $ | 10,640 | $ | 2,364 | $ | 30 | $ | 26,795 | ||||||||||||||
Collectively evaluated for impairment | 47,249 | 11,876 | 249,828 | 244,290 | 116,209 | 13,230 | 682,682 | |||||||||||||||||||||
Total ending loans balance | $ | 50,218 | $ | 11,876 | $ | 260,620 | $ | 254,930 | $ | 118,573 | $ | 13,260 | $ | 709,477 | ||||||||||||||
Premises_and_Equipment_Net_Tab
Premises and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Schedule of premises and equipment | Premises and equipment consists of the following: | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Land | $ | 1,858 | $ | 2,370 | ||||
Facilities | 20,189 | 20,675 | ||||||
Furniture, fixtures, and equipment | 11,392 | 12,473 | ||||||
Construction in process and deposits on equipment | 2,016 | 1,867 | ||||||
35,455 | 37,385 | |||||||
Less accumulated depreciation | (17,351 | ) | (17,368 | ) | ||||
Total | $ | 18,104 | $ | 20,017 | ||||
Schedule of future minimum rent commitments under various operating leases | Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2014, pertaining to banking premises and equipment, future minimum rent commitments (in thousands) under various operating leases are as follows: | |||||||
2015 | $ | 2,011 | ||||||
2016 | 1,713 | |||||||
2017 | 1,554 | |||||||
2018 | 1,502 | |||||||
2019 | 1,514 | |||||||
Thereafter | 15,954 | |||||||
$ | 24,248 | |||||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Banking and Thrift [Abstract] | ||||
Scheduled maturities of time deposits | At December 31, 2014, the scheduled maturities of time deposits (in thousands) are as follows: | |||
2015 | $ | 114,838 | ||
2016 | 79,841 | |||
2017 | 48,722 | |||
2018 | 2,374 | |||
2019 | 3,163 | |||
$ | 248,938 | |||
Borrowings_Tables
Borrowings (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Debt Disclosure [Abstract] | ||||
Contractual maturities of the Company's long-term debt | The contractual maturities of the Company’s long-term debt are as follows: | |||
(Dollars in thousands) | December 31, 2014 | |||
Due in 2015 | $ | 50,000 | ||
Due in 2016 | 5,000 | |||
Total | $ | 55,000 | ||
Federal Funds Purchased, Securities Sold Under Agreements to Repurchase and Short-term Borrowings | The outstanding balances and related information for securities sold under agreements to repurchase are summarized as follows: | |||
(Dollars in thousands) | Securities sold under agreements to repurchase | |||
At December 31: | ||||
2014 | $ | 38,551 | ||
2013 | 34,539 | |||
Weighted-average interest rate at year-end: | ||||
2014 | 0.8 | % | ||
2013 | 0.9 | |||
Maximum amount outstanding at any month's end: | ||||
2014 | $ | 43,989 | ||
2013 | 41,684 | |||
Average amount outstanding during the year: | ||||
2014 | $ | 37,035 | ||
2013 | 36,227 | |||
Weighted-average interest rate during the year: | ||||
2014 | 0.86 | % | ||
2013 | 0.91 | |||
ShareBased_Compensation_Plan_T
Share-Based Compensation Plan (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 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 awarded under the 2006 Equity Compensation Plan: | ||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Non-vested at the beginning of the year | 119,250 | $ | 16.39 | 109,944 | $ | 15.83 | 64,518 | $ | 14.96 | ||||||||||||||||||||||||
Granted | 41,533 | 17.65 | 32,500 | 17.96 | 49,975 | 16.86 | |||||||||||||||||||||||||||
Vested | (15,425 | ) | 15.59 | (10,944 | ) | 15.54 | (4,549 | ) | 14.79 | ||||||||||||||||||||||||
Forfeited or expired | (11,250 | ) | 16.05 | (12,250 | ) | 16.33 | — | — | |||||||||||||||||||||||||
Non-vested at end of the year | 134,108 | $ | 16.66 | $ | 2,415 | 119,250 | $ | 16.39 | $ | 2,151 | 109,944 | $ | 15.83 | $ | 1,942 | ||||||||||||||||||
The following table summarizes restricted stock performance awards granted under the 2006 Equity Compensation Plan: | |||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | Shares | Weighted-Average Grant Date Fair Value | Aggregate Intrinsic Value | ||||||||||||||||||||||||
Non-vested at the beginning of the year | — | $ | — | 10,511 | $ | 13.92 | 21,702 | $ | 14.27 | ||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||
Vested | — | — | (10,511 | ) | 13.92 | (8,383 | ) | 14.59 | |||||||||||||||||||||||||
Forfeited or expired | — | — | — | — | (2,808 | ) | 14.59 | ||||||||||||||||||||||||||
Non-vested at end of the year | — | $ | — | $ | — | — | $ | — | $ | — | 10,511 | $ | 13.92 | $ | 186 | ||||||||||||||||||
Stock options outstanding activity | The following table summarizes options outstanding under the 2006 Equity Compensation Plan at the end of the reportable periods. | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | ||||||||||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||||||||
Outstanding at beginning of year | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | 160,171 | $ | 20.4 | ||||||||||||||||||||||||
Granted | — | — | — | — | — | — | |||||||||||||||||||||||||||
Exercised | (25,501 | ) | 14 | (2,743 | ) | 14 | — | — | |||||||||||||||||||||||||
Forfeited or expired | (3,000 | ) | 39.4 | (20,915 | ) | 23.42 | (78,000 | ) | 23.64 | ||||||||||||||||||||||||
Outstanding at end of year | 30,012 | $ | 14 | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | ||||||||||||||||||||||||
Options exercisable at year end | 30,012 | $ | 14 | 58,513 | $ | 15.3 | 82,171 | $ | 17.32 | ||||||||||||||||||||||||
Schedule of options outstanding and exercisable | As of December 31, 2014, options outstanding and exercisable are summarized as follows: | ||||||||||||||||||||||||||||||||
Range of Exercise Prices | Options Outstanding | Weighted-Average Remaining Contractual Life (years) | Options Exercisable | ||||||||||||||||||||||||||||||
$ | 14 | 25,012 | 4.2 | 25,012 | |||||||||||||||||||||||||||||
$ | 14 | 5,000 | 4.84 | 5,000 | |||||||||||||||||||||||||||||
$ | 14 | 30,012 | 4.31 | 30,012 | |||||||||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of net deferred tax assets | Net deferred tax assets consist of the following components as of December 31, 2014 and 2013: | |||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
Deferred tax assets: | ||||||||||||
Allowance for loan losses | $ | 4,007 | $ | 4,508 | ||||||||
Deferred compensation | 613 | 581 | ||||||||||
Investment in affiliate | — | 401 | ||||||||||
Interest rate swap | 98 | 15 | ||||||||||
Other real estate owned | 256 | 263 | ||||||||||
Other | 1,833 | 2,204 | ||||||||||
Total deferred tax assets | $ | 6,807 | $ | 7,972 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred loan costs, net | $ | 125 | $ | 25 | ||||||||
Securities available for sale | 2,050 | 135 | ||||||||||
Property and equipment | 55 | 222 | ||||||||||
Total deferred tax liabilities | $ | 2,230 | $ | 382 | ||||||||
Net deferred tax assets | $ | 4,577 | $ | 7,590 | ||||||||
Provision for income taxes charged to operations | The provision for income taxes charged to operations for the years ended December 31, 2014, 2013, and 2012, consists of the following: | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Current tax expense | $ | 1,160 | $ | 2,315 | $ | 759 | ||||||
Deferred tax expense (benefit) | 1,181 | (384 | ) | 1,207 | ||||||||
Total income tax expense | $ | 2,341 | $ | 1,931 | $ | 1,966 | ||||||
Income tax provision differs from federal income tax rate to pretax income | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2014, 2013, and 2012, due to the following: | |||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Computed "expected" tax expense | $ | 3,374 | $ | 2,749 | $ | 2,874 | ||||||
Increase (decrease) in income taxes resulting from: | ||||||||||||
Tax-exempt income | (959 | ) | (1,037 | ) | (975 | ) | ||||||
Other, net | (74 | ) | 219 | 67 | ||||||||
$ | 2,341 | $ | 1,931 | $ | 1,966 | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Indebted to subsidiary bank | Loans outstanding to directors and executive officers at December 31, 2014 and 2013 were: | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | 2,983 | $ | 8,798 | ||||
Decrease due to status changes | — | (5,890 | ) | |||||
Principal additions | 1,590 | 762 | ||||||
Principal payments | (769 | ) | (687 | ) | ||||
Balance, December 31 | $ | 3,804 | $ | 2,983 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 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. | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Per Share Amount | Shares | Per Share Amount | Shares | Per Share Amount | ||||||||||||||||
Earnings per share, basic | 7,106,171 | $ | 1.07 | 7,074,410 | $ | 0.87 | 7,031,971 | $ | 0.92 | ||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||
Stock options | 6,939 | 14,887 | 8,962 | ||||||||||||||||||
Warrant (See note 23) | 13,491 | 17,849 | 2,186 | ||||||||||||||||||
Earnings per share, diluted | 7,126,601 | $ | 1.06 | 7,107,146 | $ | 0.87 | 7,043,119 | $ | 0.92 | ||||||||||||
Financial_Instruments_With_Off1
Financial Instruments With Off-Balance-Sheet Risk and Credit Risk (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Risks and Uncertainties [Abstract] | ||||||||
Summary of the contract amount of the Company's exposure to off-balance-sheet risk | A summary of the contract amount of the Company's exposure to off-balance sheet risk as of December 31, 2014 and 2013, is as follows: | |||||||
(Dollars in thousands) | 2014 | 2013 | ||||||
Financial instruments whose contract amounts represent credit risk: | ||||||||
Commitments to extend credit | $ | 143,012 | $ | 116,528 | ||||
Standby letters of credit | 3,617 | 2,849 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Financial assets and liabilities measured at fair value on a recurring basis | The following tables present the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and 2013. | ||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | ||||||||||||||||||||
Description | Total | Level I | Level II | Level III | |||||||||||||||||
Assets: | |||||||||||||||||||||
U.S. government agencies | $ | 41,397 | $ | — | $ | 41,397 | $ | — | |||||||||||||
Obligations of states and political subdivisions | 57,740 | — | 57,740 | — | |||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
Agency | 173,213 | — | 173,213 | — | |||||||||||||||||
Non-agency | 28,123 | — | 28,123 | — | |||||||||||||||||
Other asset backed securities | 31,713 | — | 31,713 | — | |||||||||||||||||
Corporate securities | 16,077 | — | 16,077 | ||||||||||||||||||
Interest rate swaps | 50 | — | 50 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 337 | — | 337 | — | |||||||||||||||||
(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 | 333 | — | 333 | — | |||||||||||||||||
Mortgage servicing rights | 203 | — | 203 | — | |||||||||||||||||
Mortgage banking hedge instruments | 202 | — | 202 | — | |||||||||||||||||
Liabilities: | |||||||||||||||||||||
Interest rate swaps | 303 | — | 303 | — | |||||||||||||||||
Quantitative information related to Level III inputs | The following table presents changes in Level III assets measured at fair value on a recurring basis during the periods ended December 31, 2014 and 2013: | ||||||||||||||||||||
(Dollars in thousands) | December 31, 2014 | ||||||||||||||||||||
Description | Balance December 31, 2013 | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance December 31, 2014 | ||||||||||||||||
Corporate securities | $ | 488 | $ | — | $ | — | $ | (488 | ) | $ | — | ||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
Description | Balance December 31, 2012 | Included in Earnings | Included in Other Comprehensive Income | Transfers In/Out of Level II and III | Balance December 31, 2013 | ||||||||||||||||
Corporate securities | $ | — | $ | — | $ | — | $ | 488 | $ | 488 | |||||||||||
The following table presents quantitative information as of December 31, 2013 related to Level III fair value measurements for financial assets measured at fair value on a recurring basis: | |||||||||||||||||||||
Fair Value (Dollars in thousands) | Valuation Technique | Unobservable Inputs | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
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) | December 31, 2014 | ||||||||||||||||||||
Total | Level I | Level II | Level III | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Impaired loans | $ | 5,799 | $ | — | $ | 1,289 | $ | 4,510 | |||||||||||||
Other real estate owned | $ | 4,051 | $ | — | $ | 4,051 | $ | — | |||||||||||||
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) | December 31, 2014 | ||||||||||||||||||||
Fair value measurements using: | |||||||||||||||||||||
Carrying | Total Fair Value | Level I | Level II | Level III | |||||||||||||||||
Amount | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 55,022 | $ | 55,022 | $ | 55,022 | $ | — | $ | — | |||||||||||
Securities held to maturity | 1,500 | 1,397 | — | 1,397 | — | ||||||||||||||||
Securities available for sale | 348,263 | 348,263 | — | 348,263 | — | ||||||||||||||||
Loans, net | 743,060 | 751,572 | — | 1,289 | 750,283 | ||||||||||||||||
Bank owned life insurance | 22,617 | 22,617 | — | 22,617 | — | ||||||||||||||||
Accrued interest receivable | 4,285 | 4,285 | — | 4,285 | — | ||||||||||||||||
Interest rate swaps | 50 | 50 | — | 50 | — | ||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 989,080 | $ | 989,563 | $ | — | $ | 989,563 | $ | — | |||||||||||
Securities sold under agreements to repurchase | 38,551 | 38,551 | — | 38,551 | — | ||||||||||||||||
FHLB borrowings | 55,000 | 55,042 | — | 55,042 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,159 | — | 5,159 | — | ||||||||||||||||
Accrued interest payable | 403 | 403 | — | 403 | — | ||||||||||||||||
Interest rate swaps | 337 | 337 | — | 337 | — | ||||||||||||||||
(Dollars in thousands) | December 31, 2013 | ||||||||||||||||||||
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 | — | ||||||||||||||||
Loans, net | 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 swaps | 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 | 80,000 | 80,666 | — | 80,666 | — | ||||||||||||||||
Subordinated notes | 5,155 | 5,198 | — | 5,198 | — | ||||||||||||||||
Accrued interest payable | 501 | 501 | — | 501 | — | ||||||||||||||||
Interest rate swaps | 304 | 304 | — | 304 | — | ||||||||||||||||
Quantitative information about Level III fair value measurements | The following table presents quantitative information as of December 31, 2014 and 2013 about Level III fair value measurements for assets measured at fair value on a non-recurring basis: | ||||||||||||||||||||
2014 | Fair Value | Valuation Technique | Unobservable Inputs | Range | |||||||||||||||||
(in thousands) | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 4,510 | Discounted appraised value | Discount for selling costs and age of appraisals | 0% - 100% (7%) | ||||||||||||||||
Repossessed assets | 1,132 | Market analysis | Historical sales activity | 50% | |||||||||||||||||
2013 | 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%) | ||||||||||||||||
Capital_Requirements_Tables
Capital Requirements (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ||||||||||||||||||
Schedule of actual capital amounts and ratios | The Company’s and Middleburg Bank’s actual capital amounts and ratios are also presented in the following table. | |||||||||||||||||
Actual | Minimum Capital Requirement | Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||
Total Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 128,971 | 17.00% | $ | 60,857 | 8.00% | N/A | N/A | ||||||||||
Middleburg Bank | 123,801 | 16.30% | 60,660 | 8.00% | $ | 75,825 | 10.00% | |||||||||||
Tier 1 Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 119,433 | 15.70% | $ | 30,428 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 114,293 | 15.10% | 30,330 | 4.00% | $ | 45,495 | 6.00% | |||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||
Consolidated | $ | 119,433 | 9.90% | $ | 48,232 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 114,293 | 9.50% | 48,141 | 4.00% | $ | 60,176 | 5.00% | |||||||||||
As of December 31, 2013 | ||||||||||||||||||
Total Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 124,313 | 15.90% | $ | 62,577 | 8.00% | N/A | N/A | ||||||||||
Middleburg Bank | 120,015 | 15.40% | 62,417 | 8.00% | $ | 78,022 | 10.00% | |||||||||||
Tier 1 Capital (to Risk- Weighted Assets): | ||||||||||||||||||
Consolidated | $ | 114,490 | 14.60% | $ | 31,289 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 110,217 | 14.10% | 31,209 | 4.00% | $ | 46,813 | 6.00% | |||||||||||
Tier 1 Capital (to Average Assets): | ||||||||||||||||||
Consolidated | $ | 114,490 | 9.40% | $ | 48,550 | 4.00% | N/A | N/A | ||||||||||
Middleburg Bank | 110,217 | 9.10% | 48,484 | 4.00% | $ | 60,605 | 5.00% | |||||||||||
Goodwill_and_Intangibles_Asset1
Goodwill and Intangibles Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of intangible assets and goodwill | Information concerning goodwill and intangible assets is presented in the following table: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
(Dollars In thousands) | Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | |||||||||||||
Identifiable intangibles | $ | 3,734 | $ | 3,348 | $ | 3,734 | $ | 3,177 | |||||||||
Unamortizable goodwill | 3,421 | — | 4,789 | — | |||||||||||||
Estimated amortization expense of identifiable intangibles | Estimated amortization expense of identifiable intangibles for the years ended December 31 follows: | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||
2015 | $ | 171 | |||||||||||||||
2016 | 171 | ||||||||||||||||
2017 | 44 | ||||||||||||||||
$ | 386 | ||||||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information - Parent Corporation Only (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||
BALANCE SHEETS | ||||||||||||
BALANCE SHEETS | ||||||||||||
December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | ||||||||||
ASSETS | ||||||||||||
Cash on deposit with subsidiary bank | $ | 563 | $ | 638 | ||||||||
Money market fund | — | 8 | ||||||||||
Investment securities available for sale | — | 44 | ||||||||||
Investment in subsidiaries | 124,242 | 115,444 | ||||||||||
Other assets | 2,651 | 1,650 | ||||||||||
TOTAL ASSETS | $ | 127,456 | $ | 117,784 | ||||||||
LIABILITIES | ||||||||||||
Subordinated notes | $ | 5,155 | $ | 5,155 | ||||||||
Other liabilities | 267 | 54 | ||||||||||
TOTAL LIABILITIES | 5,422 | 5,209 | ||||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common stock | 17,494 | 17,403 | ||||||||||
Capital surplus | 44,892 | 44,251 | ||||||||||
Retained earnings | 55,854 | 50,689 | ||||||||||
Accumulated other comprehensive income, net | 3,794 | 232 | ||||||||||
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 112,575 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 127,456 | $ | 117,784 | ||||||||
STATEMENTS OF OPERATIONS | ||||||||||||
STATEMENTS OF INCOME | ||||||||||||
Year End December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
INCOME: | ||||||||||||
Dividends from subsidiaries | $ | 3,440 | $ | 2,670 | $ | 1,880 | ||||||
Interest and dividends from investments | 15 | — | — | |||||||||
Other income | — | 41 | 37 | |||||||||
Total income | 3,455 | 2,711 | 1,917 | |||||||||
EXPENSES: | ||||||||||||
Salaries and employee benefits | 746 | 671 | 517 | |||||||||
Legal and professional fees | 56 | 20 | 27 | |||||||||
Directors fees | 280 | 279 | 251 | |||||||||
Interest expense | 279 | 279 | 280 | |||||||||
Other | 401 | 361 | 416 | |||||||||
Total expenses | 1,762 | 1,610 | 1,491 | |||||||||
Income before allocated tax benefits and undistributed income of subsidiaries | 1,693 | 1,101 | 426 | |||||||||
Income tax benefit | (753 | ) | (542 | ) | (559 | ) | ||||||
Income before equity in undistributed income of subsidiaries | 2,446 | 1,643 | 985 | |||||||||
Equity in undistributed income of subsidiaries | 5,138 | 4,511 | 5,501 | |||||||||
Net income | $ | 7,584 | $ | 6,154 | $ | 6,486 | ||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||
December 31, | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 7,584 | $ | 6,154 | $ | 6,486 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in undistributed earnings of subsidiaries | (5,138 | ) | (4,511 | ) | (5,501 | ) | ||||||
Share-based compensation | 426 | 492 | 440 | |||||||||
Increase in other assets | (1,099 | ) | (87 | ) | (112 | ) | ||||||
Increase (decrease) in other liabilities | 213 | 2 | (2 | ) | ||||||||
Net cash provided by operating activities | 1,986 | 2,050 | 1,311 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Proceeds from sales, calls and maturities of available for sale securities | 44 | — | — | |||||||||
Net cash provided by investing activities | 44 | — | — | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Net proceeds from issuance of common stock | 394 | 39 | — | |||||||||
Cash dividends paid on common stock | (2,419 | ) | (1,700 | ) | (1,408 | ) | ||||||
Repurchase of stock | (88 | ) | (103 | ) | (43 | ) | ||||||
Net cash (used in) financing activities | (2,113 | ) | (1,764 | ) | (1,451 | ) | ||||||
Increase (decrease) in cash and cash equivalents | (83 | ) | 286 | (140 | ) | |||||||
Cash and Cash Equivalents at beginning of year | 646 | 360 | 500 | |||||||||
Cash and Cash Equivalents at end of year | $ | 563 | $ | 646 | $ | 360 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of reportable segments and reconciliation to the consolidated financial statements | Information about reportable segments and reconciliation to the consolidated financial statements follows: | |||||||||||||||||||
2014 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 43,149 | $ | 14 | $ | 450 | $ | (288 | ) | $ | 43,325 | |||||||||
Wealth management fees | — | 4,516 | — | (154 | ) | 4,362 | ||||||||||||||
Other income | 5,349 | — | 5,121 | (46 | ) | 10,424 | ||||||||||||||
Total operating income | 48,498 | 4,530 | 5,571 | (488 | ) | 58,111 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 5,227 | — | 304 | (288 | ) | 5,243 | ||||||||||||||
Salaries and employee benefits | 16,567 | 2,262 | 3,772 | — | 22,601 | |||||||||||||||
Provision for loan losses | 1,926 | — | 34 | — | 1,960 | |||||||||||||||
Other expense | 15,818 | 1,140 | 1,722 | (200 | ) | 18,480 | ||||||||||||||
Total operating expenses | 39,538 | 3,402 | 5,832 | (488 | ) | 48,284 | ||||||||||||||
Income before income taxes and non-controlling interest | 8,960 | 1,128 | (261 | ) | — | 9,827 | ||||||||||||||
Income tax expense | 1,894 | 447 | — | — | 2,341 | |||||||||||||||
Net income | 7,066 | 681 | (261 | ) | — | 7,486 | ||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | 98 | — | 98 | |||||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 7,066 | $ | 681 | $ | (163 | ) | $ | — | $ | 7,584 | |||||||||
Total assets | $ | 1,338,604 | $ | 12,953 | $ | — | $ | (128,700 | ) | $ | 1,222,857 | |||||||||
Capital expenditures | $ | 911 | $ | 6 | $ | 3 | $ | — | $ | 920 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 3,807 | $ | — | $ | — | $ | 3,807 | ||||||||||
2013 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 43,702 | $ | 14 | $ | 1,773 | $ | (1,217 | ) | $ | 44,272 | |||||||||
Wealth management fees | — | 4,139 | — | (169 | ) | 3,970 | ||||||||||||||
Other income | 4,527 | — | 16,473 | (431 | ) | 20,569 | ||||||||||||||
Total operating income | 48,229 | 4,153 | 18,246 | (1,817 | ) | 68,811 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 6,444 | — | 1,340 | (1,217 | ) | 6,567 | ||||||||||||||
Salaries and employee benefits | 16,464 | 2,187 | 11,976 | — | 30,627 | |||||||||||||||
Provision for loan losses | 105 | — | 4 | — | 109 | |||||||||||||||
Other expense | 17,916 | 1,195 | 4,903 | (600 | ) | 23,414 | ||||||||||||||
Total operating expenses | 40,929 | 3,382 | 18,223 | (1,817 | ) | 60,717 | ||||||||||||||
Income before income taxes and non-controlling interest | 7,300 | 771 | 23 | — | 8,094 | |||||||||||||||
Income tax expense | 1,608 | 323 | — | — | 1,931 | |||||||||||||||
Net income | 5,692 | 448 | 23 | — | 6,163 | |||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 5,692 | $ | 448 | $ | 14 | $ | — | $ | 6,154 | ||||||||||
Total assets | $ | 1,222,837 | $ | 5,909 | $ | 41,745 | $ | (42,738 | ) | $ | 1,227,753 | |||||||||
Capital expenditures | $ | 895 | $ | — | $ | 33 | $ | — | $ | 928 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 3,979 | $ | 1,367 | $ | — | $ | 5,346 | ||||||||||
2012 | ||||||||||||||||||||
(Dollars in thousands) | Commercial & Retail Banking | Wealth Management | Mortgage Banking | Intercompany Eliminations | Consolidated | |||||||||||||||
Revenues: | ||||||||||||||||||||
Interest income | $ | 46,095 | $ | 10 | $ | 2,740 | $ | (1,822 | ) | $ | 47,023 | |||||||||
Wealth management fees | — | 3,891 | — | (140 | ) | 3,751 | ||||||||||||||
Other income | 4,413 | — | 21,787 | (497 | ) | 25,703 | ||||||||||||||
Total operating income | 50,508 | 3,901 | 24,527 | (2,459 | ) | 76,477 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Interest expense | 8,433 | — | 2,213 | (1,822 | ) | 8,824 | ||||||||||||||
Salaries and employee benefits | 15,678 | 2,208 | 12,531 | — | 30,417 | |||||||||||||||
Provision for loan losses | 3,410 | — | 28 | — | 3,438 | |||||||||||||||
Other expense | 17,413 | 1,300 | 5,766 | (637 | ) | 23,842 | ||||||||||||||
Total operating expenses | 44,934 | 3,508 | 20,538 | (2,459 | ) | 66,521 | ||||||||||||||
Income before income taxes and non-controlling interest | 5,574 | 393 | 3,989 | — | 9,956 | |||||||||||||||
Income tax expense | 1,593 | 373 | — | — | 1,966 | |||||||||||||||
Net income | 3,981 | 20 | 3,989 | — | 7,990 | |||||||||||||||
Non-controlling interest in consolidated subsidiary | — | — | (1,504 | ) | — | (1,504 | ) | |||||||||||||
Net income attributable to Middleburg Financial Corporation | $ | 3,981 | $ | 20 | $ | 2,485 | $ | — | $ | 6,486 | ||||||||||
Total assets | $ | 1,216,813 | $ | 6,416 | $ | 94,282 | $ | (80,730 | ) | $ | 1,236,781 | |||||||||
Capital expenditures | $ | 947 | $ | — | $ | 98 | $ | — | $ | 1,045 | ||||||||||
Goodwill and other intangibles | $ | — | $ | 4,150 | $ | 1,867 | $ | — | $ | 6,017 | ||||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 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 December 31, 2014 and 2013 is presented in the following tables: | ||||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 213 | 0.23 | % | 2.59 | % | 5.8 | |||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 10,000 | $ | — | $ | 74 | 0.16 | % | 1.43 | % | 4 | |||||||||||
December 31, 2013 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 5,155 | $ | — | $ | 72 | 0.23 | % | 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: | ||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,002 | $ | — | $ | 19 | 1 month LIBOR plus 200 BP | 3.9 | % | 12.9 | ||||||||||||
Pay fixed - receive floating interest rate swap | 1 | 1,747 | — | 31 | 1 month LIBOR plus 180 BP | 4.09 | % | 9.9 | |||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,002 | 19 | — | 3.9 | % | 1 month LIBOR plus 200 BP | 12.9 | |||||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 1,747 | 31 | — | 4.09 | % | 1 month LIBOR plus 180 BP | 9.9 | |||||||||||||||
Total derivatives not designated | $ | 11,498 | $ | 50 | $ | 50 | |||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||
(Dollars in thousands) | Positions (#) | Notional Amount | Asset | Liability | Receive Rate | Pay Rate | Life (Years) | ||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Pay fixed - receive floating interest rate swap | 1 | $ | 4,235 | $ | — | $ | 232 | 1 month LIBOR plus 200 BP | 3.9 | % | 13.9 | ||||||||||||
Pay floating - receive fixed interest rate swap | 1 | 4,235 | 232 | — | 3.9 | % | 1 month LIBOR plus 200 BP | 13.9 | |||||||||||||||
Total derivatives not designated | $ | 8,470 | $ | 232 | $ | 232 | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Equity [Abstract] | ||||||||||||||
Change in other comprehensive income (loss) for the period | The following table presents information on changes in accumulated other comprehensive income (loss) for the periods indicated: | |||||||||||||
(Dollars in thousands) | Unrealized Gains (Losses) on Securities | Cash Flow Hedges | Accumulated Other Comprehensive Income (Loss) | |||||||||||
Balance December 31, 2011 | $ | 4,133 | $ | (207 | ) | $ | 3,926 | |||||||
Unrealized holding gains (net of tax of $1,511) | 2,932 | — | 2,932 | |||||||||||
Reclassification adjustment (net of tax, $151) | (294 | ) | — | (294 | ) | |||||||||
Unrealized loss on interest rate swap (net of tax, $50) | — | (97 | ) | (97 | ) | |||||||||
Balance December 31, 2012 | 6,771 | (304 | ) | 6,467 | ||||||||||
Unrealized holding losses (net of tax of $3,212) | (6,234 | ) | — | (6,234 | ) | |||||||||
Reclassification adjustment (net of tax, $142) | (276 | ) | — | (276 | ) | |||||||||
Unrealized gain on interest rate swap (net of tax, $142) | — | 275 | 275 | |||||||||||
Balance December 31, 2013 | 261 | (29 | ) | 232 | ||||||||||
Unrealized holding losses (net of tax of $1,979) | 3,841 | — | 3,841 | |||||||||||
Reclassification adjustment (net of tax, $63) | (123 | ) | — | (123 | ) | |||||||||
Unrealized gain on interest rate swap (net of tax, $82) | — | (160 | ) | (160 | ) | |||||||||
Reclassification adjustment (net of tax, $2) | — | 4 | 4 | |||||||||||
Balance December 31, 2014 | $ | 3,979 | $ | (185 | ) | $ | 3,794 | |||||||
Reclassification out of Accumulated Other Comprehensive Income | The following table presents information related to reclassifications from accumulated other comprehensive income (loss): | |||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Line Item in the Consolidated Statements of Income | ||||||||||||
(Dollars in thousands) | 2014 | 2013 | 2012 | |||||||||||
Securities available for sale (1): | ||||||||||||||
Net securities gains reclassified into earnings | $ | (186 | ) | $ | (418 | ) | $ | (445 | ) | Gain on securities available for sale | ||||
Related income tax expense | 63 | 142 | 151 | Income tax expense | ||||||||||
Derivatives (2): | ||||||||||||||
Loss on interest rate swap ineffectiveness | 6 | — | — | Other operating expense | ||||||||||
Related income tax benefit | (2 | ) | — | — | Income tax expense | |||||||||
Net effect on accumulated other comprehensive income for the period | (119 | ) | (276 | ) | (294 | ) | Net of tax | |||||||
Total reclassifications for the period | $ | (119 | ) | $ | (276 | ) | $ | (294 | ) | 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 24, "Derivatives". |
Nature_of_Banking_Activities_a3
Nature of Banking Activities and Significant Accounting Policies Principles of Consolidation Narrative (Details) (USD $) | Dec. 31, 2014 | 31-May-14 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Ownership interest in Southern Trust Mortgage | 62.30% | ||
Investment in subsidiaries | $155 | $155 |
Nature_of_Banking_Activities_a4
Nature of Banking Activities and Significant Accounting Policies Estimated useful lives of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Buildings and Improvements [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 10 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 40 years |
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 3 years |
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 15 years |
Nature_of_Banking_Activities_a5
Nature of Banking Activities and Significant Accounting Policies Goodwill and Intangible Assets Narrative (Details) (Customer Relationships [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Expected life of intangible assets | 15 years |
Nature_of_Banking_Activities_a6
Nature of Banking Activities and Significant Accounting Policies Cash and Cash Equivalents Narrative (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Maturity period of federal funds sold and purchase | 1 day |
Nature_of_Banking_Activities_a7
Nature of Banking Activities and Significant Accounting Policies Share-Based Employee Compensation Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Share-based compensation | $426 | $492 | $440 |
Securities_Amortized_costs_and
Securities Amortized costs and fair values of securities held to maturity (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $1,500 | $0 |
Gross unrealized gains | 0 | |
Gross unrealized losses | -103 | |
Fair value | 1,397 | 0 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,500 | |
Gross unrealized gains | 0 | |
Gross unrealized losses | -103 | |
Fair value | $1,397 |
Securities_Amortized_cost_and_
Securities Amortized cost and fair value of securities held to maturity by contractual maturity (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized cost | |
Due after ten years | $1,500 |
Fair value | |
Due after ten years | $1,397 |
Securities_Amortized_costs_and1
Securities Amortized costs and fair values of securities available for sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $342,233 | $328,027 |
Gross Unrealized Gains | 8,068 | 5,815 |
Gross Unrealized Losses | -2,038 | -5,419 |
Fair Value | 348,263 | 328,423 |
U.S. government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 41,317 | 21,367 |
Gross Unrealized Gains | 283 | 304 |
Gross Unrealized Losses | -203 | -332 |
Fair Value | 41,397 | 21,339 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 55,541 | 68,904 |
Gross Unrealized Gains | 2,408 | 1,083 |
Gross Unrealized Losses | -209 | -2,749 |
Fair Value | 57,740 | 67,238 |
Mortgage-backed securities, Agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 169,257 | 166,095 |
Gross Unrealized Gains | 4,698 | 3,539 |
Gross Unrealized Losses | -742 | -1,624 |
Fair Value | 173,213 | 168,010 |
Mortgage-backed securities, Non-agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 28,235 | 22,029 |
Gross Unrealized Gains | 115 | 116 |
Gross Unrealized Losses | -227 | -211 |
Fair Value | 28,123 | 21,934 |
Other Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 31,338 | 33,883 |
Gross Unrealized Gains | 433 | 710 |
Gross Unrealized Losses | -58 | -175 |
Fair Value | 31,713 | 34,418 |
Corporate preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 69 | |
Gross Unrealized Gains | 5 | |
Gross Unrealized Losses | 0 | |
Fair Value | 74 | |
Corporate securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 16,545 | 15,680 |
Gross Unrealized Gains | 131 | 58 |
Gross Unrealized Losses | -599 | -328 |
Fair Value | $16,077 | $15,410 |
Securities_Amortized_cost_and_1
Securities Amortized cost and fair value of securities available for sale by contractual maturity (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost [Abstract] | |
Due in one year or less | $3,801 |
Due after one year through five years | 48,256 |
Due after five years through ten years | 42,227 |
Due after ten years | 19,119 |
Total | 342,233 |
Fair Value [Abstract] | |
Due in one year or less | 3,838 |
Due after one year through five years | 50,105 |
Due after five years through ten years | 42,035 |
Due after ten years | 19,236 |
Total | 348,263 |
Mortgage-backed securities [Member] | |
Amortized Cost [Abstract] | |
Total | 197,492 |
Fair Value [Abstract] | |
Total | 201,336 |
Other Asset Backed Securities [Member] | |
Amortized Cost [Abstract] | |
Total | 31,338 |
Fair Value [Abstract] | |
Total | $31,713 |
Securities_Investments_in_cont
Securities Investments in continuous unrealized loss position (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held to Maturity, Fair Value, Less than Twelve Months | $1,397 | |
Held to Maturity, Gross Unrealized Losses, Less than Twelve Months | -103 | |
Held to Maturity, Fair Value, Twelve Months or Greater | 0 | |
Held to Maturity, Gross Unrealized Losses, Twelve Months or Greater | 0 | |
Held to Maturity, Fair Value | 1,397 | |
Held to Maturity, Gross Unrealized Losses, Total | -103 | |
Available for Sale, Fair Value, Less than Twelve Months, Total | 77,450 | 107,171 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -1,009 | -4,541 |
Available for Sale, Fair Value, Twelve Months or Greater | 26,915 | 19,426 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -1,029 | -878 |
Available for Sale, Fair Value, Total | 104,365 | 126,597 |
Available for Sale, Gross Unrealized Losses, Total | -2,038 | -5,419 |
U.S. government agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 15,331 | 10,218 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -65 | -273 |
Available for Sale, Fair Value, Twelve Months or Greater | 5,833 | 1,416 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -138 | -59 |
Available for Sale, Fair Value, Total | 21,164 | 11,634 |
Available for Sale, Gross Unrealized Losses, Total | -203 | -332 |
Obligations of states and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Held to Maturity, Fair Value, Less than Twelve Months | 1,397 | |
Held to Maturity, Gross Unrealized Losses, Less than Twelve Months | -103 | |
Held to Maturity, Fair Value, Twelve Months or Greater | 0 | |
Held to Maturity, Gross Unrealized Losses, Twelve Months or Greater | 0 | |
Held to Maturity, Fair Value | 1,397 | |
Held to Maturity, Gross Unrealized Losses, Total | -103 | |
Available for Sale, Fair Value, Less than Twelve Months, Total | 2,780 | 24,568 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -14 | -2,539 |
Available for Sale, Fair Value, Twelve Months or Greater | 3,456 | 1,798 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -195 | -210 |
Available for Sale, Fair Value, Total | 6,236 | 26,366 |
Available for Sale, Gross Unrealized Losses, Total | -209 | -2,749 |
Mortgage-backed securities, Agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 28,065 | 50,048 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -327 | -1,264 |
Available for Sale, Fair Value, Twelve Months or Greater | 11,027 | 8,228 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -415 | -360 |
Available for Sale, Fair Value, Total | 39,092 | 58,276 |
Available for Sale, Gross Unrealized Losses, Total | -742 | -1,624 |
Mortgage-backed securities, Non-agency [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 15,488 | 14,505 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -167 | -152 |
Available for Sale, Fair Value, Twelve Months or Greater | 4,730 | 1,351 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -60 | -59 |
Available for Sale, Fair Value, Total | 20,218 | 15,856 |
Available for Sale, Gross Unrealized Losses, Total | -227 | -211 |
Other Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 6,594 | 1,585 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -45 | -39 |
Available for Sale, Fair Value, Twelve Months or Greater | 1,077 | 2,187 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -13 | -136 |
Available for Sale, Fair Value, Total | 7,671 | 3,772 |
Available for Sale, Gross Unrealized Losses, Total | -58 | -175 |
Corporate preferred stock [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 0 | |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | 0 | |
Available for Sale, Fair Value, Twelve Months or Greater | 0 | |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | 0 | |
Available for Sale, Fair Value, Total | 0 | |
Available for Sale, Gross Unrealized Losses, Total | 0 | |
Corporate securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for Sale, Fair Value, Less than Twelve Months, Total | 9,192 | 6,247 |
Available for Sale, Gross Unrealized Losses, Less than Twelve Months | -391 | -274 |
Available for Sale, Fair Value, Twelve Months or Greater | 792 | 4,446 |
Available for Sale, Gross Unrealized Losses, Twelve Months or Greater | -208 | -54 |
Available for Sale, Fair Value, Total | 9,984 | 10,693 |
Available for Sale, Gross Unrealized Losses, Total | ($599) | ($328) |
Securities_Narrative_Details
Securities Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Security | |||
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales of securities | $58,900,000 | $24,200,000 | $41,000,000 |
Gross gains realized on sale of securities | 770,000 | 732,000 | 743,000 |
Gross loss realized on sale of securities | 584,000 | 314,000 | 298,000 |
Net impairment losses | 0 | 0 | 0 |
Tax expense related to realized gains | 63,000 | 142,000 | 151,000 |
Carrying value of securities pledged for fiduciary powers | $125,700,000 | $102,300,000 | |
Number of securities temporarily impaired | 118 | ||
Number of securities temporarily impaired in investment grade | 116 | ||
Number of securities temporarily impaired in speculative grade | 2 |
Securities_Otherthan_temporary
Securities Other-than temporary impairment losses Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investments, Debt and Equity Securities [Abstract] | |||
Credit losses recognized in prior period earnings | $0 | $0 | $0 |
Investment in FHLB stock | 3,600,000 | 5,100,000 | |
Federal Reserve Bank Stock | $1,700,000 | $1,700,000 |
Loans_Net_Narrative_Details
Loans, Net Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
loan_segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loan segments | 3 | ||
Mortgages held for sale | $0 | $33,175,000 | |
Total TDR | 6,900,000 | 15,600,000 | |
Nonaccrual | 9,944,000 | 19,752,000 | |
Interest on non-accrual loans foregone | 544,000 | 1,100,000 | 1,400,000 |
Fund Mortgage Held For Sale [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from held for sale loans | 6,600,000 | ||
Total TDR | 6,300,000 | ||
Nonaccrual | 5,900,000 | ||
Allowance for Loan and Lease Losses, Loans Sold | $655,000 |
Loans_Net_Consolidated_loan_po
Loans, Net Consolidated loan portfolio (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | $754,846,000 | [1] | $728,480,000 | $709,477,000 | |
Less allowance for loan losses | 11,786,000 | 13,320,000 | 14,311,000 | 14,623,000 | |
Net loans | 743,060,000 | 715,160,000 | |||
Percent of Total Portfolio | 100.00% | [1] | 100.00% | ||
Net of deferred loan costs | 3,000,000 | 2,400,000 | |||
Real Estate Loans Construction [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 33,050,000 | 36,025,000 | 50,218,000 | ||
Less allowance for loan losses | 550,000 | 847,000 | 1,258,000 | 897,000 | |
Percent of Total Portfolio | 4.40% | 5.00% | |||
Real Estate Loans Secured by Farmland [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 19,708,000 | 16,578,000 | |||
Percent of Total Portfolio | 2.60% | 2.30% | |||
Real Estate Loans Secured by 1 - 4 Family Residential [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 265,216,000 | 273,384,000 | 260,620,000 | ||
Less allowance for loan losses | 3,966,000 | 6,734,000 | 6,276,000 | 7,465,000 | |
Percent of Total Portfolio | 35.10% | 37.50% | |||
Other Real Estate Loans [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 255,236,000 | 260,333,000 | 254,930,000 | ||
Less allowance for loan losses | 3,916,000 | 3,506,000 | 4,348,000 | 4,385,000 | |
Percent of Total Portfolio | 33.80% | 35.70% | |||
Commercial Loans [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 163,269,000 | 129,554,000 | 118,573,000 | ||
Less allowance for loan losses | 2,354,000 | 1,890,000 | 2,098,000 | 1,621,000 | |
Percent of Total Portfolio | 21.60% | 17.80% | |||
Consumer Loans [Member] | |||||
Consolidated Loan Portfolio [Abstract] | |||||
Outstanding Balance, Gross | 18,367,000 | 12,606,000 | 13,260,000 | ||
Less allowance for loan losses | $821,000 | $177,000 | $196,000 | $145,000 | |
Percent of Total Portfolio | 2.50% | 1.70% | |||
[1] | net deferred loan costs and premiums of $3.0 million and $2.4 million, respectively. |
Loans_Net_Recorded_investment_
Loans, Net Recorded investment in past due loans by class of loans (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | ||||
Past due loans by class of loans [Abstract] | ||||
30-59 Days Past Due | $973 | $975 | ||
60-89 Days Past Due | 1 | 6,922 | ||
90 Days Or Greater | 3,871 | 5,838 | ||
Total Past Due | 4,845 | 13,735 | ||
Current | 750,001 | 714,745 | ||
Total Loans | 754,846 | [1] | 728,480 | 709,477 |
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 | 0 | 554 | ||
Total Past Due | 0 | 2,279 | ||
Current | 33,050 | 33,746 | ||
Total Loans | 33,050 | 36,025 | 50,218 | |
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 | 19,708 | 16,578 | ||
Total Loans | 19,708 | 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 | 819 | 590 | ||
60-89 Days Past Due | 0 | 3,751 | ||
90 Days Or Greater | 548 | 1,022 | ||
Total Past Due | 1,367 | 5,363 | ||
Current | 263,849 | 268,021 | ||
Total Loans | 265,216 | 273,384 | 260,620 | |
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 | 255,236 | 256,020 | ||
Total Loans | 255,236 | 260,333 | 254,930 | |
Commercial Loans [Member] | ||||
Past due loans by class of loans [Abstract] | ||||
30-59 Days Past Due | 138 | 162 | ||
60-89 Days Past Due | 0 | 1,513 | ||
90 Days Or Greater | 320 | 27 | ||
Total Past Due | 458 | 1,702 | ||
Current | 162,811 | 127,852 | ||
Total Loans | 163,269 | 129,554 | 118,573 | |
Consumer Loans [Member] | ||||
Past due loans by class of loans [Abstract] | ||||
30-59 Days Past Due | 16 | 31 | ||
60-89 Days Past Due | 1 | 9 | ||
90 Days Or Greater | 3,003 | 38 | ||
Total Past Due | 3,020 | 78 | ||
Current | 15,347 | 12,528 | ||
Total Loans | $18,367 | $12,606 | $13,260 | |
[1] | net deferred loan costs and premiums of $3.0 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $9,944 | $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 | 247 | 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 | 4,932 | 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 | 1,472 | 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 | 290 | 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 | 3,003 | 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 $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
In Thousands, unless otherwise specified | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | $754,846 | [1] | $728,480 | $709,477 |
Pass [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 699,812 | 670,431 | ||
Special Mention [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 34,949 | 22,145 | ||
Substandard [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 19,367 | 33,366 | ||
Doubtful [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 701 | 2,538 | ||
Loss [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 17 | 0 | ||
Real Estate Loans Construction [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 33,050 | 36,025 | 50,218 | |
Real Estate Loans Construction [Member] | Pass [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 25,637 | 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 | 6,764 | 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 | 649 | 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 | 19,708 | 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 | 11,203 | 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 | 602 | 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 | 265,216 | 273,384 | 260,620 | |
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 | 255,898 | 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 | 1,518 | 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 | 7,348 | 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 | 452 | 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 | 255,236 | 260,333 | 254,930 | |
Other Real Estate Loans [Member] | Pass [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 232,169 | 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 | 15,687 | 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 | 7,380 | 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 Loans [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 163,269 | 129,554 | 118,573 | |
Commercial Loans [Member] | Pass [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 159,595 | 126,246 | ||
Commercial Loans [Member] | Special Mention [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 3,059 | 775 | ||
Commercial Loans [Member] | Substandard [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 369 | 2,419 | ||
Commercial Loans [Member] | Doubtful [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 246 | 114 | ||
Commercial Loans [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 | 18,367 | 12,606 | 13,260 | |
Consumer Loans [Member] | Pass [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 15,310 | 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 | 18 | 15 | ||
Consumer Loans [Member] | Substandard [Member] | ||||
Summary of loan classifications by class of loan [Abstract] | ||||
Summary of loan quality by class of loan | 3,019 | 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 | $17 | $0 | ||
[1] | net deferred loan costs and premiums of $3.0 million and $2.4 million, respectively. |
Loans_Net_Loans_identified_as_
Loans, Net Loans identified as impaired by class of loan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Recorded Investment [Abstract] | ||
With no related allowance recorded | $13,690 | $12,427 |
With an allowance recorded | 8,468 | 12,269 |
Total | 22,158 | 24,696 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 13,818 | 13,500 |
With an allowance recorded | 9,370 | 12,238 |
Total | 23,188 | 25,738 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 2,669 | 4,655 |
Total | 2,669 | 4,655 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 13,879 | 13,209 |
With an allowance recorded | 8,892 | 12,788 |
Total | 22,771 | 25,997 |
Interest Income Recognized [Abstract] | ||
With no related allowance recorded | 592 | 123 |
With an allowance recorded | 89 | 128 |
Total | 681 | 251 |
Real Estate Loans Construction [Member] | ||
Recorded Investment [Abstract] | ||
With no related allowance recorded | 131 | 1,924 |
With an allowance recorded | 115 | 712 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 131 | 2,475 |
With an allowance recorded | 115 | 712 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 66 | 486 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 138 | 1,975 |
With an allowance recorded | 124 | 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 | 7,903 | 0 |
With an allowance recorded | 0 | 0 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 7,903 | 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 | 7,903 | 0 |
With an allowance recorded | 0 | 0 |
Interest Income Recognized [Abstract] | ||
With no related allowance recorded | 454 | 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 | 1,919 | 3,930 |
With an allowance recorded | 3,694 | 6,481 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 2,047 | 4,452 |
With an allowance recorded | 3,746 | 6,428 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 1,370 | 3,045 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 2,032 | 4,415 |
With an allowance recorded | 3,704 | 6,632 |
Interest Income Recognized [Abstract] | ||
With no related allowance recorded | 16 | 6 |
With an allowance recorded | 11 | 47 |
Other Real Estate Loans [Member] | ||
Recorded Investment [Abstract] | ||
With no related allowance recorded | 3,289 | 4,458 |
With an allowance recorded | 1,242 | 4,684 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 3,289 | 4,458 |
With an allowance recorded | 1,242 | 4,684 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 294 | 812 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 3,352 | 4,552 |
With an allowance recorded | 1,260 | 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 | 448 | 2,115 |
With an allowance recorded | 398 | 355 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 448 | 2,115 |
With an allowance recorded | 1,248 | 377 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 292 | 275 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 454 | 2,267 |
With an allowance recorded | 783 | 399 |
Interest Income Recognized [Abstract] | ||
With no related allowance recorded | 18 | 0 |
With an allowance recorded | 7 | 10 |
Consumer Loans [Member] | ||
Recorded Investment [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,019 | 37 |
Unpaid Principal Balance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,019 | 37 |
Related Allowance [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 647 | 37 |
Average Recorded Investment [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 3,021 | 39 |
Interest Income Recognized [Abstract] | ||
With no related allowance recorded | 0 | 0 |
With an allowance recorded | $2 | $0 |
Loans_Net_Troubled_Debt_Restru
Loans, Net Troubled Debt Restructurings Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
loan | loan | loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total TDR | $6,900,000 | $6,900,000 | $15,600,000 |
TDR included in nonaccrual loans | 2,600,000 | 2,600,000 | |
TDR performing as agreed | 4,300,000 | 4,300,000 | |
Valuation Allowance related to total TDR | 517,000 | 517,000 | 2,800,000 |
Number of Contracts | 1 | 5 | 23 |
Number of loans for extended terms | 18 | ||
Number of loans for lowering interest | 18 | ||
Number of loans on interest only payments methods | 12 | ||
Number of loans for which allowance for loan losses measured under general allowance methodology | 2 | 13 | |
Recorded investment as TDR for which allowance for loan losses measured under general allowance methodology | 916,000 | 3,500,000 | |
Allowance for loan losses on recorded investment as TDR | 0 | 0 | 1,300,000 |
TDR subsequently defaulted | 44,000 | 132,000 | |
Financing receivable, modifications, number of contracts sold | 2 | ||
Financing receivable, modifications, number of contracts paid off | 2 | ||
Real Estate Loans Secured by 1 - 4 Family Residential [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of Contracts | 4 | 12 | |
TDR subsequently defaulted | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from Sale of Finance Receivables | $907,000 |
Loans_Net_Loans_modified_in_TD
Loans, Net Loans modified in TDR by class of loan (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | loan | |
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 1 | 5 | 23 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $1,390 | $5,777 | |
Post-Modification Outstanding Recorded Investment | 1,390 | 5,219 | |
Real Estate Loans Construction [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 0 | 4 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 0 | 765 | |
Post-Modification Outstanding Recorded Investment | 0 | 698 | |
Real Estate Loans Secured by Farmland [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 0 | 0 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | 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 | 4 | 12 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,190 | 3,627 | |
Post-Modification Outstanding Recorded Investment | 1,190 | 3,207 | |
Other Real Estate Loans [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 1 | 5 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 200 | 869 | |
Post-Modification Outstanding Recorded Investment | 200 | 805 | |
Real Estate Loans [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 5 | 21 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 1,390 | 5,261 | |
Post-Modification Outstanding Recorded Investment | 1,390 | 4,710 | |
Commercial Loans [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 0 | 2 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 0 | 516 | |
Post-Modification Outstanding Recorded Investment | 0 | 509 | |
Consumer Loans [Member] | |||
Loans modified in a TDR by class of loan [Abstract] | |||
Number of Contracts | 0 | 0 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | 0 | 0 | |
Post-Modification Outstanding Recorded Investment | $0 | $0 |
Loans_Net_Schedule_of_TDR_paym
Loans, Net Schedule of TDR payment defaults (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 1 | 1 |
Recorded Investment | $44 | $132 |
Real Estate Loans Construction [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 1 |
Recorded Investment | 0 | 132 |
Real Estate Loans Secured by Farmland [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Recorded Investment | 0 | 0 |
Real Estate Loans Secured by 1 - 4 Family Residential [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Recorded Investment | 0 | 0 |
Other Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Recorded Investment | 0 | 0 |
Real Estate Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 1 |
Recorded Investment | 0 | 132 |
Commercial Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 1 | 0 |
Recorded Investment | 44 | 0 |
Consumer Loans [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | 0 | 0 |
Recorded Investment | $0 | $0 |
Allowance_for_Loan_Losses_Deta
Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | $13,320 | $14,311 | $14,623 | |
Adjustment for the sale of majority interest in consolidated subsidiary | -95 | |||
Charge-offs | -4,308 | -1,381 | -4,271 | |
Recoveries | 909 | 281 | 521 | |
Provision | 1,960 | 109 | 3,438 | |
Ending balance | 11,786 | 13,320 | 14,311 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 2,669 | 4,655 | 4,303 | |
Collectively evaluated for impairment | 9,117 | 8,665 | 10,008 | |
Total ending allowance balance | 11,786 | 13,320 | 14,311 | |
Loans: | ||||
Individually evaluated for impairment | 22,158 | 24,696 | 26,795 | |
Collectively evaluated for impairment | 732,688 | 703,784 | 682,682 | |
Total Loans | 754,846 | [1] | 728,480 | 709,477 |
Real Estate Construction [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 847 | 1,258 | 897 | |
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | |||
Charge-offs | -1,186 | -394 | -2,152 | |
Recoveries | 258 | 68 | 2 | |
Provision | 631 | -85 | 2,511 | |
Ending balance | 550 | 847 | 1,258 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 66 | 486 | 166 | |
Collectively evaluated for impairment | 484 | 361 | 1,092 | |
Total ending allowance balance | 550 | 847 | 1,258 | |
Loans: | ||||
Individually evaluated for impairment | 246 | 2,636 | 2,969 | |
Collectively evaluated for impairment | 32,804 | 33,389 | 47,249 | |
Total Loans | 33,050 | 36,025 | 50,218 | |
Real Estate Loans Secured by Farmland [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 166 | 135 | 110 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision | 13 | 31 | 25 | |
Ending balance | 179 | 166 | 135 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 0 | 0 | 0 | |
Collectively evaluated for impairment | 179 | 166 | 135 | |
Total ending allowance balance | 179 | 166 | 135 | |
Loans: | ||||
Individually evaluated for impairment | 7,903 | 0 | 0 | |
Collectively evaluated for impairment | 11,805 | 16,578 | 11,876 | |
Total Loans | 19,708 | 16,578 | 11,876 | |
Real Estate Loans Secured by 1 - 4 Family Residential [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 6,734 | 6,276 | 7,465 | |
Adjustment for the sale of majority interest in consolidated subsidiary | -95 | |||
Charge-offs | -1,380 | -785 | -893 | |
Recoveries | 342 | 140 | 388 | |
Provision | -1,635 | 1,103 | -684 | |
Ending balance | 3,966 | 6,734 | 6,276 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 1,370 | 3,045 | 2,724 | |
Collectively evaluated for impairment | 2,596 | 3,689 | 3,552 | |
Total ending allowance balance | 3,966 | 6,734 | 6,276 | |
Loans: | ||||
Individually evaluated for impairment | 5,613 | 10,411 | 10,792 | |
Collectively evaluated for impairment | 259,603 | 262,973 | 249,828 | |
Total Loans | 265,216 | 273,384 | 260,620 | |
Other Real Estate Loans [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 3,506 | 4,348 | 4,385 | |
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | |||
Charge-offs | -747 | -97 | -760 | |
Recoveries | 110 | 37 | 86 | |
Provision | 1,047 | -782 | 637 | |
Ending balance | 3,916 | 3,506 | 4,348 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 294 | 812 | 1,045 | |
Collectively evaluated for impairment | 3,622 | 2,694 | 3,303 | |
Total ending allowance balance | 3,916 | 3,506 | 4,348 | |
Loans: | ||||
Individually evaluated for impairment | 4,531 | 9,142 | 10,640 | |
Collectively evaluated for impairment | 250,705 | 251,191 | 244,290 | |
Total Loans | 255,236 | 260,333 | 254,930 | |
Commercial [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 1,890 | 2,098 | 1,621 | |
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | |||
Charge-offs | -959 | -75 | -394 | |
Recoveries | 104 | 9 | 12 | |
Provision | 1,319 | -142 | 859 | |
Ending balance | 2,354 | 1,890 | 2,098 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 292 | 275 | 338 | |
Collectively evaluated for impairment | 2,062 | 1,615 | 1,760 | |
Total ending allowance balance | 2,354 | 1,890 | 2,098 | |
Loans: | ||||
Individually evaluated for impairment | 846 | 2,470 | 2,364 | |
Collectively evaluated for impairment | 162,423 | 127,084 | 116,209 | |
Total Loans | 163,269 | 129,554 | 118,573 | |
Consumer [Member] | ||||
Allowance for loan losses [Roll Forward] | ||||
Beginning balance | 177 | 196 | 145 | |
Adjustment for the sale of majority interest in consolidated subsidiary | 0 | |||
Charge-offs | -36 | -30 | -72 | |
Recoveries | 95 | 27 | 33 | |
Provision | 585 | -16 | 90 | |
Ending balance | 821 | 177 | 196 | |
Ending allowance balance attributable to loans: | ||||
Individually evaluated for impairment | 647 | 37 | 30 | |
Collectively evaluated for impairment | 174 | 140 | 166 | |
Total ending allowance balance | 821 | 177 | 196 | |
Loans: | ||||
Individually evaluated for impairment | 3,019 | 37 | 30 | |
Collectively evaluated for impairment | 15,348 | 12,569 | 13,230 | |
Total Loans | $18,367 | $12,606 | $13,260 | |
[1] | net deferred loan costs and premiums of $3.0 million and $2.4 million, respectively. |
Premises_and_Equipment_Net_Det
Premises and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $35,455,000 | $37,385,000 | |
Less accumulated depreciation | -17,351,000 | -17,368,000 | |
Total | 18,104,000 | 20,017,000 | |
Depreciation expense | 1,500,000 | 1,800,000 | 1,800,000 |
Future minimum rent commitments under various operating leases [Abstract] | |||
2015 | 2,011,000 | ||
2016 | 1,713,000 | ||
2017 | 1,554,000 | ||
2018 | 1,502,000 | ||
2019 | 1,514,000 | ||
Thereafter | 15,954,000 | ||
Net Total | 24,248,000 | ||
Rent expense | 2,800,000 | 3,700,000 | 3,600,000 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | 1,858,000 | 2,370,000 | |
Facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | 20,189,000 | 20,675,000 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | 11,392,000 | 12,473,000 | |
Construction in Process and Deposits on Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $2,016,000 | $1,867,000 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Banking and Thrift [Abstract] | ||
Interest bearing product for overnight funding | $42,200,000 | $42,100,000 |
Time deposits of $100,000 or more | 81,500,000 | 80,500,000 |
Scheduled maturities of time deposits [Abstract] | ||
2015 | 114,838,000 | |
2016 | 79,841,000 | |
2017 | 48,722,000 | |
2018 | 2,374,000 | |
2019 | 3,163,000 | |
Total | 248,938,000 | 267,940,000 |
Overdraft demand deposits reclassified to loans | 148,000 | 133,000 |
Brokered deposits | $48,700,000 | $61,000,000 |
Borrowings_Narrative_Details
Borrowings Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Line of Credit Facility [Line Items] | ||
Remaining credit availability | $305,500,000 | |
Long-term Debt | 55,000,000 | |
Federal Home Loan Bank advances, Interest rate, range from (in hundredths) | 0.20% | |
Federal Home Loan Bank advances, Interest rate, range to (in hundredths) | 1.11% | |
Federal Home Loan Bank advances, Weighted-average rate (in hundredths) | 0.46% | 1.13% |
Federal Home Loan Bank borrowings | 55,000,000 | 80,000,000 |
Securities sold under agreements to repurchase, maturing the day following the day sold | 26,300,000 | 22,170,000 |
Federal Reserve Bank of Richmond [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum credit limit | 35,800,000 | |
Revolving lines of credit, outstanding balance | 0 | |
Other Institutions [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum credit limit | 24,000,000 | |
Southern Trust Mortgage [Member] | Regional Bank [Member] | Fund Mortgage Held For Sale [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum credit limit | 75,000,000 | |
Revolving lines of credit, outstanding balance | 32,300,000 | |
Southern Trust Mortgage [Member] | Subsidiary Bank [Member] | Fund Mortgage Held For Sale [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum credit limit | 17,000,000 | |
Revolving lines of credit, outstanding balance | 8,500,000 | |
Southern Trust Mortgage [Member] | Subsidiary Bank [Member] | Operating Purpose [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum credit limit | 5,000,000 | |
Revolving lines of credit, outstanding balance | 89,000 | |
Counterparty One [Member] | ||
Line of Credit Facility [Line Items] | ||
Securities sold under agreements to repurchase, structured repurchase agreements, January 18, 2015 | 7,200,000 | 7,400,000 |
Counterparty Two [Member] | ||
Line of Credit Facility [Line Items] | ||
Securities sold under agreements to repurchase, structured repurchase agreements, January 18, 2015 | $5,000,000 | $5,000,000 |
Borrowings_Contractual_maturit
Borrowings Contractual maturities of the Company's long-term debt (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Due in 2015 | $50,000 |
Due in 2016 | 5,000 |
Total | $55,000 |
Borrowings_Federal_Funds_Purch
Borrowings Federal Funds Purchased, Securities Sold Under Agreements to Repurchase and Short-term Borrowings (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities sold under agreements to repurchase | ||
Securities sold under agreements to repurchase | $38,551 | $34,539 |
Weighted-average interest rate at year-end | 0.80% | 0.90% |
Maximum amount outstanding at any month's end | 43,989 | 41,684 |
Average amount outstanding during the year | $37,035 | $36,227 |
Weighted-average interest rate during the year | 0.86% | 0.91% |
ShareBased_Compensation_Plan_N
Share-Based Compensation Plan Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 03, 2014 | 7-May-14 | Jan. 27, 2014 | |
share_based_compensation_plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of plans | 1 | |||||
Share based compensation expense | $426,000 | $492,000 | $440,000 | |||
Total income tax benefit related to share-based compensation | 63,000 | 54,000 | 79,000 | |||
Unrecognized compensation expense related to nonvested stock options awards | 0 | |||||
Aggregate intrinsic value of options exercised | 126,500 | 11,100 | ||||
Aggregate intrinsic value of options outstanding | 120,300 | 160,300 | 0 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based award vesting percentage | 50.00% | |||||
Restricted Stock [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Service-based award vesting percentage | 100.00% | |||||
Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Unrecognized compensation expense related to nonvested restricted stock awards | 0 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Options vesting percentage each on first and second anniversary | 25.00% | |||||
Options vesting percentage on third anniversary | 50.00% | |||||
2006 Equity Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 430,000 | 255,000 | ||||
Number of additional shares authorized | 175,000 | |||||
2006 Equity Compensation Plan [Member] | Executive Officer [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 2,000 | 35,000 | ||||
2006 Equity Compensation Plan [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 41,533 | 32,500 | 49,975 | |||
Vesting period | 3 years | |||||
Unrecognized compensation expense related to nonvested restricted stock awards | $1,400,000 | |||||
Restricted stock nonvested outstanding, Weighted average remaining contractual terms | 3 years 6 months 18 days | 3 years 10 months 24 days | 4 years 3 months 18 days | |||
2006 Equity Compensation Plan [Member] | Restricted Stock [Member] | Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 4,400 | 133 | ||||
2006 Equity Compensation Plan [Member] | Performance Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 0 | 0 | 0 | |||
2006 Equity Compensation Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options vesting percentage on third anniversary | 50.00% |
ShareBased_Compensation_Plan_R
Share-Based Compensation Plan Restricted stock service awards and performance awarded under the 2006 Equity Compensation Plan (Details) (2006 Equity Compensation Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Performance Shares [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) | 0 | 10,511 | 21,702 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | 0 | -10,511 | -8,383 |
Forfeited (in shares) | 0 | 0 | -2,808 |
Non-vested at end of period (in shares) | 0 | 0 | 10,511 |
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) | $0 | $13.92 | $14.27 |
Granted (in dollars per share) | $0 | $0 | $0 |
Vested (in dollars per share) | $0 | $13.92 | $14.59 |
Forfeited (in dollars per share) | $0 | $0 | $14.59 |
Non-vested at end of period (in dollars per share) | $0 | $0 | $13.92 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |||
Non-vested at end of period | $0 | $0 | $186 |
Restricted Stock [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 | 109,944 | 64,518 |
Granted (in shares) | 41,533 | 32,500 | 49,975 |
Vested (in shares) | -15,425 | -10,944 | -4,549 |
Forfeited (in shares) | -11,250 | -12,250 | 0 |
Non-vested at end of period (in shares) | 134,108 | 119,250 | 109,944 |
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 | $15.83 | $14.96 |
Granted (in dollars per share) | $17.65 | $17.96 | $16.86 |
Vested (in dollars per share) | $15.59 | $15.54 | $14.79 |
Forfeited (in dollars per share) | $16.05 | $16.33 | $0 |
Non-vested at end of period (in dollars per share) | $16.66 | $16.39 | $15.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Abstract] | |||
Non-vested at end of period | $2,415 | $2,151 | $1,942 |
ShareBased_Compensation_Plan_S
Share-Based Compensation Plan Stock options outstanding activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares [Roll Forward] | |||
Outstanding at beginning of year (in shares) | 58,513 | 82,171 | 160,171 |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | -25,501 | -2,743 | 0 |
Forfeited (in shares) | -3,000 | -20,915 | -78,000 |
Outstanding at end of period (in shares) | 30,012 | 58,513 | 82,171 |
Options exercisable at year end (in shares) | 30,012 | 58,513 | 82,171 |
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of year (in dollars per share) | $15.30 | $17.32 | $20.40 |
Granted (in dollars per share) | $0 | $0 | $0 |
Exercised (in dollars per share) | $14 | $14 | $0 |
Forfeited (in dollars per share) | $39.40 | $23.42 | $23.64 |
Outstanding at end of period (in dollars per share) | $14 | $15.30 | $17.32 |
Options exercisable at year end (in dollars per share) | $14 | $15.30 | $17.32 |
ShareBased_Compensation_Plan_S1
Share-Based Compensation Plan Schedule of options outstanding and exercisable (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
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 | $17.32 | $20.40 |
Options Outstanding (in shares) | 30,012 | 58,513 | 82,171 | 160,171 |
Options Exercisable (in shares) | 30,012 | 58,513 | 82,171 | |
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 | |||
Options Outstanding (in shares) | 25,012 | |||
Remaining Contractual Life | 4 years 2 months 12 days | |||
Options Exercisable (in shares) | 25,012 | |||
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 | |||
Options Outstanding (in shares) | 5,000 | |||
Remaining Contractual Life | 4 years 10 months 2 days | |||
Options Exercisable (in shares) | 5,000 | |||
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 | |||
Options Outstanding (in shares) | 30,012 | |||
Remaining Contractual Life | 4 years 3 months 21 days | |||
Options Exercisable (in shares) | 30,012 |
Employee_Benefit_Plans_401k_Pl
Employee Benefit Plans 401(k) Plan Narrative (Details) (401(k) Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
401(k) Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees contribution, maximum | 100.00% | ||
Matching contribution | 50.00% | ||
Percentage of employer matching contribution to employees compensation | 6.00% | ||
Matching contributions vesting period | 5 years | ||
Expense attributable to the plan | $340 | $355 | $308 |
Employee_Benefit_Plans_Money_M
Employee Benefit Plans Money Market Pension Plan (MPPP) (Details) (Money Purchase Pension Plan [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
year | |||
Money Purchase Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum qualifying age under plan | 21 | ||
Service period | 1 year | ||
Minimum number of hours for allocation of an employer contribution | 1000 hours | ||
Employer contribution | 6.50% | ||
Additional contribution by employer | 2.75% | ||
Matching contributions vesting period | 5 years | ||
Expense attributable to the plan | $898 | $1,000 | $940 |
Employee_Benefit_Plans_Deferre
Employee Benefit Plans Deferred Compensation Plans (Details) (Deferred Compensation Plans [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
plan | |||
Deferred Compensation Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of deferred compensation plans | 2 | ||
Basis spread on credit rate | 1.50% | ||
Deferred compensation expense | $222 | $210 | $204 |
Income_Taxes_Schedule_of_net_d
Income Taxes Schedule of net deferred tax assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Valuation allowance | $0 | $0 |
Deferred tax assets: | ||
Allowance for loan losses | 4,007,000 | 4,508,000 |
Deferred compensation | 613,000 | 581,000 |
Investment in affiliate | 0 | 401,000 |
Interest rate swap | 98,000 | 15,000 |
Other real estate owned | 256,000 | 263,000 |
Other | 1,833,000 | 2,204,000 |
Total deferred tax assets | 6,807,000 | 7,972,000 |
Deferred tax liabilities: | ||
Deferred loan costs, net | 125,000 | 25,000 |
Securities available for sale | 2,050,000 | 135,000 |
Property and equipment | 55,000 | 222,000 |
Total deferred tax liabilities | 2,230,000 | 382,000 |
Net deferred tax assets | $4,577,000 | $7,590,000 |
Income_Taxes_Provision_for_inc
Income Taxes Provision for income taxes charged to operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $1,160 | $2,315 | $759 |
Deferred tax expense (benefit) | 1,181 | -384 | 1,207 |
Total income tax expense | $2,341 | $1,931 | $1,966 |
Income_Taxes_Income_tax_provis
Income Taxes Income tax provision differs from federal income tax rate to pretax income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Computed expected tax expense | $3,374 | $2,749 | $2,874 |
Tax-exempt income | -959 | -1,037 | -975 |
Other, net | -74 | 219 | 67 |
Total income tax expense | $2,341 | $1,931 | $1,966 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Subsidiary Bank [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Subsidiary Bank [Member] | ||
Indebted to subsidiary bank [Roll Forward] | ||
Balance, beginning | $2,983,000 | $8,798,000 |
Decrease due to status changes | 0 | -5,890,000 |
Principal additions | 1,590,000 | 762,000 |
Principal payments | -769,000 | -687,000 |
Balance, ending | 3,804,000 | 2,983,000 |
Unused commitments to extend credit | 1,500,000 | 2,300,000 |
Related party deposit | $12,700,000 | $11,600,000 |
Contingent_Liabilities_and_Com1
Contingent Liabilities and Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 06, 2015 |
Property, Plant and Equipment [Line Items] | |||
Daily average required reserves | $2.30 | $2.10 | |
Subsequent Event [Member] | Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Building purchase agreement, purchase price | $2.20 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Shares [Abstract] | ||||
Earning (loss) per share, basic (in shares) | 7,106,171 | 7,074,410 | 7,031,971 | |
Effect of dilutive securities [Abstract] | ||||
Stock options (in shares) | 6,939 | 14,887 | 8,962 | |
Warrant (in shares) | 13,491 | 17,849 | 2,186 | |
Earnings per share, diluted (in shares) | 7,126,601 | 7,107,146 | 7,043,119 | |
Per Share Amount [Abstract] | ||||
Earnings per share, basic (in dollars per share) | $1.07 | $0.87 | $0.92 | |
Earnings per share, diluted (in dollars per share) | $1.06 | $0.87 | $0.92 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options exercise price (in dollars per shares) | $14 | $15.30 | $17.32 | $20.40 |
Options [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) | 23,500 | 11,900 | 37,700 | |
Options [Member] | Minimum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options exercise price (in dollars per shares) | $22 | $22 | $22 | |
Options [Member] | Maximum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options exercise price (in dollars per shares) | $39.40 | $39.40 | $39.40 |
Retained_Earnings_Details
Retained Earnings (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Equity [Abstract] | |
Excess of regulatory limitations available for transfer to Parent Company | $15.20 |
Financial_Instruments_With_Off2
Financial Instruments With Off-Balance-Sheet Risk and Credit Risk (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Deposits in financial institutions in excess of amounts insured by the FDIC | $2,900,000 | |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument contract amount | 143,012,000 | 116,528,000 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instrument contract amount | $3,617,000 | $2,849,000 |
Fair_Value_Measurements_Financ
Fair Value Measurements Financial assets and liabilities measured at fair value on a recurring basis (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level I [Member] | ||
Mortgage-backed securities: | ||
Mortgage loans held for sale | $0 | |
Mortgage interest rate locks | 0 | 0 |
Mortgage servicing rights | 0 | |
Mortgage banking hedge instruments | 0 | |
Level II [Member] | ||
Mortgage-backed securities: | ||
Mortgage loans held for sale | 33,175 | |
Mortgage interest rate locks | 50 | 334 |
Mortgage servicing rights | 203 | |
Mortgage banking hedge instruments | 202 | |
Level III [Member] | ||
Mortgage-backed securities: | ||
Mortgage loans held for sale | 0 | |
Mortgage interest rate locks | 0 | 0 |
Mortgage servicing rights | 0 | |
Mortgage banking hedge instruments | 0 | |
Recurring [Member] | ||
Assets: | ||
U.S. government agencies | 41,397 | 21,339 |
Obligations of states and political subdivisions | 57,740 | 67,238 |
Mortgage-backed securities: | ||
Agency | 173,213 | 168,010 |
Non-agency | 28,123 | 21,934 |
Other asset backed securities | 31,713 | 34,418 |
Corporate preferred stock | 74 | |
Corporate securities | 16,077 | 15,410 |
Mortgage loans held for sale | 33,175 | |
Mortgage interest rate locks | 16 | |
Interest rate swaps | 50 | 333 |
Mortgage servicing rights | 203 | |
Mortgage banking hedge instruments | 202 | |
Liabilities: | ||
Interest rate swaps | 337 | 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 | |
Corporate securities | 0 | 0 |
Mortgage loans held for sale | 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 | 41,397 | 21,339 |
Obligations of states and political subdivisions | 57,740 | 67,238 |
Mortgage-backed securities: | ||
Agency | 173,213 | 168,010 |
Non-agency | 28,123 | 21,934 |
Other asset backed securities | 31,713 | 34,418 |
Corporate preferred stock | 74 | |
Corporate securities | 16,077 | 14,922 |
Mortgage loans held for sale | 33,175 | |
Mortgage interest rate locks | 16 | |
Interest rate swaps | 50 | 333 |
Mortgage servicing rights | 203 | |
Mortgage banking hedge instruments | 202 | |
Liabilities: | ||
Interest rate swaps | 337 | 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 | |
Corporate securities | 488 | |
Mortgage loans held for sale | 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_Quanti
Fair Value Measurements Quantitative information related to Level III inputs (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Recurring [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Corporate securities | $16,077 | $15,410 |
Recurring [Member] | Level III [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Corporate securities | 488 | |
Securities (Assets) [Member] | Level III [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 488 | 0 |
Included in earnings | 0 | 0 |
Included in other comprehensive income | 0 | 0 |
Transfers in/out of level II and III | -488 | 488 |
Ending balance | $0 | $488 |
Fair_Value_Measurements_Narrat
Fair Value Measurements Narrative (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Fair Value Disclosures [Abstract] | |
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 $) | Dec. 31, 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 | 5,799 | 7,614 |
Other real estate owned | 4,051 | 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 | 1,289 | 5,756 |
Other real estate owned | 4,051 | 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 | 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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 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 | 4,510 | |
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] | 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 | 5,799 | 7,614 |
Nonrecurring [Member] | Level III [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Impaired Loans, Fair Value | 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 $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Securities held to maturity | $1,397 | $0 |
Level I [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 55,022 | 67,343 |
Securities held to maturity | 0 | |
Securities available for sale | 0 | 0 |
Loans held for sale | 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 held to maturity | 1,397 | |
Securities available for sale | 348,263 | 327,935 |
Loans held for sale | 33,175 | |
Loans, net | 1,289 | 5,756 |
Bank owned life insurance | 22,617 | 21,955 |
Accrued interest receivable | 4,285 | 3,992 |
Mortgage interest rate locks | 16 | |
Interest rate swaps | 50 | 334 |
Mortgage banking hedge instruments | 202 | |
Mortgage servicing rights | 203 | |
Financial liabilities: | ||
Deposits | 989,563 | 984,420 |
Securities sold under agreements to repurchase | 38,551 | 34,539 |
FHLB borrowings | 55,042 | 80,666 |
Subordinated notes | 5,159 | 5,198 |
Accrued interest payable | 403 | 501 |
Interest rate swaps | 337 | 304 |
Level III [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Securities held to maturity | 0 | |
Securities available for sale | 0 | 488 |
Loans held for sale | 0 | |
Loans, net | 750,283 | 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 | 55,022 | 67,343 |
Securities held to maturity | 1,500 | |
Securities available for sale | 348,263 | 328,423 |
Loans held for sale | 33,175 | |
Loans, net | 743,060 | 715,160 |
Bank owned life insurance | 22,617 | 21,955 |
Accrued interest receivable | 4,285 | 3,992 |
Mortgage interest rate locks | 16 | |
Interest rate swaps | 50 | 334 |
Mortgage banking hedge instruments | 202 | |
Mortgage servicing rights | 203 | |
Financial liabilities: | ||
Deposits | 989,080 | 982,396 |
Securities sold under agreements to repurchase | 38,551 | 34,539 |
FHLB borrowings | 55,000 | 80,000 |
Subordinated notes | 5,155 | 5,155 |
Accrued interest payable | 403 | 501 |
Interest rate swaps | 337 | 304 |
Fair Value [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 55,022 | 67,343 |
Securities held to maturity | 1,397 | |
Securities available for sale | 348,263 | 328,423 |
Loans held for sale | 33,175 | |
Loans, net | 751,572 | 726,239 |
Bank owned life insurance | 22,617 | 21,955 |
Accrued interest receivable | 4,285 | 3,992 |
Mortgage interest rate locks | 16 | |
Interest rate swaps | 50 | 334 |
Mortgage banking hedge instruments | 202 | |
Mortgage servicing rights | 203 | |
Financial liabilities: | ||
Deposits | 989,563 | 984,420 |
Securities sold under agreements to repurchase | 38,551 | 34,539 |
FHLB borrowings | 55,042 | 80,666 |
Subordinated notes | 5,159 | 5,198 |
Accrued interest payable | 403 | 501 |
Interest rate swaps | $337 | $304 |
Capital_Requirements_Details
Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Consolidated [Member] | ||
Total Capital (to Risk- Weighted Assets), Amount [Abstract] | ||
Actual | $128,971 | $124,313 |
Minimum Capital Requirement | 60,857 | 62,577 |
Total Capital (to Risk- Weighted Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 17.00% | 15.90% |
Minimum Capital Requirement, Ratio (in hundredths) | 8.00% | 8.00% |
Tier 1 Capital (to Risk- Weighted Assets), Amount [Abstract] | ||
Actual | 119,433 | 114,490 |
Minimum Capital Requirement | 30,428 | 31,289 |
Tier 1 Capital (to Risk- Weighted Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 15.70% | 14.60% |
Minimum Capital Requirement, Ratio (in hundredths) | 4.00% | 4.00% |
Tier 1 Capital (to Average Assets), Amount [Abstract] | ||
Actual | 119,433 | 114,490 |
Minimum Capital Requirement | 48,232 | 48,550 |
Tier 1 Capital (to Average Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 9.90% | 9.40% |
Minimum Capital Requirement, Ratio (in hundredths) | 4.00% | 4.00% |
Middleburg Bank [Member] | ||
Total Capital (to Risk- Weighted Assets), Amount [Abstract] | ||
Actual | 123,801 | 120,015 |
Minimum Capital Requirement | 60,660 | 62,417 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | 75,825 | 78,022 |
Total Capital (to Risk- Weighted Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 16.30% | 15.40% |
Minimum Capital Requirement, Ratio (in hundredths) | 8.00% | 8.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths) | 10.00% | 10.00% |
Tier 1 Capital (to Risk- Weighted Assets), Amount [Abstract] | ||
Actual | 114,293 | 110,217 |
Minimum Capital Requirement | 30,330 | 31,209 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | 45,495 | 46,813 |
Tier 1 Capital (to Risk- Weighted Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 15.10% | 14.10% |
Minimum Capital Requirement, Ratio (in hundredths) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths) | 6.00% | 6.00% |
Tier 1 Capital (to Average Assets), Amount [Abstract] | ||
Actual | 114,293 | 110,217 |
Minimum Capital Requirement | 48,141 | 48,484 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions | $60,176 | $60,605 |
Tier 1 Capital (to Average Assets), Ratio [Abstract] | ||
Actual, Ratio (in hundredths) | 9.50% | 9.10% |
Minimum Capital Requirement, Ratio (in hundredths) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio (in hundredths) | 5.00% | 5.00% |
Goodwill_and_Intangibles_Asset2
Goodwill and Intangibles Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment charges for goodwill and intangible assets | $500 | ||
Identifiable intangible assets, amortization period | 15 years | ||
Identifiable intangibles | |||
Gross Carrying Value | 3,734 | 3,734 | |
Accumulated Amortization | 3,348 | 3,177 | |
Unamortizable goodwill | |||
Gross Carrying Value | 3,421 | 4,789 | |
Accumulated Amortization | 0 | 0 | |
Amortization | 171 | 171 | 171 |
Estimated amortization expense of identifiable intangibles [Abstract] | |||
2015 | 171 | ||
2016 | 171 | ||
2017 | 44 | ||
Estimated amortization expense of identifiable intangibles, Total | $386 |
Subordinated_Notes_Details
Subordinated Notes (Details) (MFC Capital Trust II [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 19, 2003 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Principal asset of the trust of junior subordinate debt securities | 5,200,000 | |
Trust-Preferred Securities [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Trust-preferred securities issued | 5,000,000 | |
Pooled underwriting total | $344,000,000 | |
Interest rate, minimum (in hundredths) | 3.07% | |
Interest rate, maximum (in hundredths) | 3.09% | |
Weighted-average interest rate | 3.08% | |
Mandatory redemption date | 23-Jan-34 | |
Percentage Tier 1 capital covered by trust preferred securities, maximum (in hundredths) | 25.00% |
Ownership_of_Southern_Trust_Mo1
Ownership of Southern Trust Mortgage (Details) (USD $) | 1 Months Ended | ||||
In Millions, unless otherwise specified | 30-May-08 | 31-May-14 | Dec. 31, 2014 | 14-May-14 | 31-May-08 |
membership_unit | |||||
Business Acquisition [Line Items] | |||||
Percentage interest in issued and outstanding membership interest | 62.30% | ||||
Southern Trust Mortgage [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of membership units acquired | 1 | ||||
Cost to acquire membership interest | $1.60 | ||||
Percentage ownership interest, minimum | 50.00% | ||||
Percentage interest in issued and outstanding membership interest | 62.30% | ||||
Ownership interest, percentage sold | 100.00% |
Condensed_Financial_Informatio2
Condensed Financial Information - Parent Corporation Only BALANCE SHEETS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash on deposit with subsidiary bank | $7,396 | $6,648 | ||
Investment securities available for sale | 348,263 | 328,423 | ||
Investment in subsidiaries | 155 | 155 | ||
TOTAL ASSETS | 1,222,857 | 1,227,753 | 1,236,781 | |
Subordinated notes | 5,155 | 5,155 | ||
TOTAL LIABILITIES | 1,100,823 | 1,112,680 | ||
Common stock | 17,494 | 17,403 | ||
Capital surplus | 44,892 | 44,251 | ||
Retained earnings | 55,854 | 50,689 | ||
Accumulated other comprehensive income, net | 3,794 | 232 | 6,467 | 3,926 |
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 115,073 | 117,122 | 108,013 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 1,222,857 | 1,227,753 | ||
Middleburg Financial Corporation [Member] | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash on deposit with subsidiary bank | 563 | 638 | ||
Money market fund | 0 | 8 | ||
Investment securities available for sale | 0 | 44 | ||
Investment in subsidiaries | 124,242 | 115,444 | ||
Other assets | 2,651 | 1,650 | ||
TOTAL ASSETS | 127,456 | 117,784 | ||
Subordinated notes | 5,155 | 5,155 | ||
Other liabilities | 267 | 54 | ||
TOTAL LIABILITIES | 5,422 | 5,209 | ||
Common stock | 17,494 | 17,403 | ||
Capital surplus | 44,892 | 44,251 | ||
Retained earnings | 55,854 | 50,689 | ||
Accumulated other comprehensive income, net | 3,794 | 232 | ||
TOTAL SHAREHOLDERS' EQUITY | 122,034 | 112,575 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $127,456 | $117,784 |
Condensed_Financial_Informatio3
Condensed Financial Information - Parent Corporation Only STATEMENTS OF OPERATIONS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME: | |||
Interest and dividends from investments | $43,325 | $44,272 | $47,023 |
EXPENSES: | |||
Salaries and employee benefits | 22,601 | 30,627 | 30,417 |
Interest expense | 5,243 | 6,567 | 8,824 |
Other | 8,041 | 9,300 | 8,602 |
Income before income taxes | 9,827 | 8,094 | 9,956 |
Income tax benefit | 2,341 | 1,931 | 1,966 |
Net income attributable to Middleburg Financial Corporation | 7,584 | 6,154 | 6,486 |
Middleburg Financial Corporation [Member] | |||
INCOME: | |||
Dividends from subsidiaries | 3,440 | 2,670 | 1,880 |
Interest and dividends from investments | 15 | 0 | 0 |
Other income | 0 | 41 | 37 |
Total income | 3,455 | 2,711 | 1,917 |
EXPENSES: | |||
Salaries and employee benefits | 746 | 671 | 517 |
Legal and professional fees | 56 | 20 | 27 |
Directors fees | 280 | 279 | 251 |
Interest expense | 279 | 279 | 280 |
Other | 401 | 361 | 416 |
Total expenses | 1,762 | 1,610 | 1,491 |
Income before income taxes | 1,693 | 1,101 | 426 |
Income tax benefit | -753 | -542 | -559 |
Income before equity in undistributed income of subsidiaries | 2,446 | 1,643 | 985 |
Equity in undistributed income of subsidiaries | 5,138 | 4,511 | 5,501 |
Net income attributable to Middleburg Financial Corporation | $7,584 | $6,154 | $6,486 |
STATEMENTS_OF_CASH_FLOWS_Detai
STATEMENTS OF CASH FLOWS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income | $7,584 | $6,154 | $6,486 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation | 426 | 492 | 440 |
Increase in other assets | -3,266 | 293 | -4,955 |
Increase (decrease) in other liabilities | 2,447 | 1,746 | 1,950 |
Net cash provided by operating activities | 48,789 | 67,091 | 28,356 |
Cash Flows from Investing Activities | |||
Net cash (used in) investing activities | -44,693 | -42,969 | -56,211 |
Cash Flows from Financing Activities | |||
Net proceeds from issuance of common stock | 394 | 39 | 0 |
Cash dividends paid on common stock | -2,419 | -1,700 | -1,408 |
Net cash (used in) provided by financing activities | -16,417 | -11,194 | 31,000 |
Increase (decrease) in cash and cash equivalents | -12,321 | 12,928 | 3,145 |
Cash and cash equivalents at beginning of year | 67,343 | 54,415 | 51,270 |
Cash and cash equivalents at end of year | 55,022 | 67,343 | 54,415 |
Middleburg Financial Corporation [Member] | |||
Cash Flows from Operating Activities | |||
Net income | 7,584 | 6,154 | 6,486 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries | -5,138 | -4,511 | -5,501 |
Share-based compensation | 426 | 492 | 440 |
Increase in other assets | -1,099 | -87 | -112 |
Increase (decrease) in other liabilities | 213 | 2 | -2 |
Net cash provided by operating activities | 1,986 | 2,050 | 1,311 |
Cash Flows from Investing Activities | |||
Proceeds from sales, calls and maturities of available for sale securities | 44 | 0 | 0 |
Net cash (used in) investing activities | 44 | 0 | 0 |
Cash Flows from Financing Activities | |||
Net proceeds from issuance of common stock | 394 | 39 | 0 |
Cash dividends paid on common stock | -2,419 | -1,700 | -1,408 |
Repurchase of stock | -88 | -103 | -43 |
Net cash (used in) provided by financing activities | -2,113 | -1,764 | -1,451 |
Increase (decrease) in cash and cash equivalents | -83 | 286 | -140 |
Cash and cash equivalents at beginning of year | 646 | 360 | 500 |
Cash and cash equivalents at end of year | $563 | $646 | $360 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME: | |||
Interest income | $43,325 | $44,272 | $47,023 |
Wealth management fees | 4,362 | 3,970 | 3,751 |
Other income | 10,424 | 20,569 | 25,703 |
Total operating income | 58,111 | 68,811 | 76,477 |
Expenses: | |||
Interest expense | 5,243 | 6,567 | 8,824 |
Salaries and employee benefits | 22,601 | 30,627 | 30,417 |
Provision for loan losses | 1,960 | 109 | 3,438 |
Other expense | 18,480 | 23,414 | 23,842 |
Total operating expenses | 48,284 | 60,717 | 66,521 |
Income before income taxes | 9,827 | 8,094 | 9,956 |
Income tax expense | 2,341 | 1,931 | 1,966 |
NET INCOME | 7,486 | 6,163 | 7,990 |
Non-controlling interest in consolidated subsidiary | 98 | -9 | -1,504 |
Net income attributable to Middleburg Financial Corporation | 7,584 | 6,154 | 6,486 |
Total assets | 1,222,857 | 1,227,753 | 1,236,781 |
Capital expenditures | 920 | 928 | 1,045 |
Goodwill and other intangibles | 3,807 | 5,346 | 6,017 |
Commercial & Retail Banking [Member] | |||
INCOME: | |||
Interest income | 43,149 | 43,702 | 46,095 |
Wealth management fees | 0 | 0 | 0 |
Other income | 5,349 | 4,527 | 4,413 |
Total operating income | 48,498 | 48,229 | 50,508 |
Expenses: | |||
Interest expense | 5,227 | 6,444 | 8,433 |
Salaries and employee benefits | 16,567 | 16,464 | 15,678 |
Provision for loan losses | 1,926 | 105 | 3,410 |
Other expense | 15,818 | 17,916 | 17,413 |
Total operating expenses | 39,538 | 40,929 | 44,934 |
Income before income taxes | 8,960 | 7,300 | 5,574 |
Income tax expense | 1,894 | 1,608 | 1,593 |
NET INCOME | 7,066 | 5,692 | 3,981 |
Non-controlling interest in consolidated subsidiary | 0 | 0 | 0 |
Net income attributable to Middleburg Financial Corporation | 7,066 | 5,692 | 3,981 |
Total assets | 1,338,604 | 1,222,837 | 1,216,813 |
Capital expenditures | 911 | 895 | 947 |
Goodwill and other intangibles | 0 | 0 | 0 |
Wealth Management [Member] | |||
INCOME: | |||
Interest income | 14 | 14 | 10 |
Wealth management fees | 4,516 | 4,139 | 3,891 |
Other income | 0 | 0 | 0 |
Total operating income | 4,530 | 4,153 | 3,901 |
Expenses: | |||
Interest expense | 0 | 0 | 0 |
Salaries and employee benefits | 2,262 | 2,187 | 2,208 |
Provision for loan losses | 0 | 0 | 0 |
Other expense | 1,140 | 1,195 | 1,300 |
Total operating expenses | 3,402 | 3,382 | 3,508 |
Income before income taxes | 1,128 | 771 | 393 |
Income tax expense | 447 | 323 | 373 |
NET INCOME | 681 | 448 | 20 |
Non-controlling interest in consolidated subsidiary | 0 | 0 | 0 |
Net income attributable to Middleburg Financial Corporation | 681 | 448 | 20 |
Total assets | 12,953 | 5,909 | 6,416 |
Capital expenditures | 6 | 0 | 0 |
Goodwill and other intangibles | 3,807 | 3,979 | 4,150 |
Mortgage Banking [Member] | |||
INCOME: | |||
Interest income | 450 | 1,773 | 2,740 |
Wealth management fees | 0 | 0 | 0 |
Other income | 5,121 | 16,473 | 21,787 |
Total operating income | 5,571 | 18,246 | 24,527 |
Expenses: | |||
Interest expense | 304 | 1,340 | 2,213 |
Salaries and employee benefits | 3,772 | 11,976 | 12,531 |
Provision for loan losses | 34 | 4 | 28 |
Other expense | 1,722 | 4,903 | 5,766 |
Total operating expenses | 5,832 | 18,223 | 20,538 |
Income before income taxes | -261 | 23 | 3,989 |
Income tax expense | 0 | 0 | 0 |
NET INCOME | -261 | 23 | 3,989 |
Non-controlling interest in consolidated subsidiary | 98 | -9 | -1,504 |
Net income attributable to Middleburg Financial Corporation | -163 | 14 | 2,485 |
Total assets | 0 | 41,745 | 94,282 |
Capital expenditures | 3 | 33 | 98 |
Goodwill and other intangibles | 0 | 1,367 | 1,867 |
Intercompany Eliminations [Member] | |||
INCOME: | |||
Interest income | -288 | -1,217 | -1,822 |
Wealth management fees | -154 | -169 | -140 |
Other income | -46 | -431 | -497 |
Total operating income | -488 | -1,817 | -2,459 |
Expenses: | |||
Interest expense | -288 | -1,217 | -1,822 |
Salaries and employee benefits | 0 | 0 | 0 |
Provision for loan losses | 0 | 0 | 0 |
Other expense | -200 | -600 | -637 |
Total operating expenses | -488 | -1,817 | -2,459 |
Income before income taxes | 0 | 0 | 0 |
Income tax expense | 0 | 0 | 0 |
NET INCOME | 0 | 0 | 0 |
Non-controlling interest in consolidated subsidiary | 0 | 0 | 0 |
Net income attributable to Middleburg Financial Corporation | 0 | 0 | 0 |
Total assets | -128,700 | -42,738 | -80,730 |
Capital expenditures | 0 | 0 | 0 |
Goodwill and other intangibles | $0 | $0 | $0 |
Capital_Purchase_Program_and_S1
Capital Purchase Program and Stock Warrant (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 30, 2009 | Dec. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Warrants issued under capital repurchase program (in shares) | 208,202 | 104,101 | ||
Common stock, par value (in dollars per share) | $2.50 | $2.50 | $2.50 | |
Exercise price of warrants (in dollars per share) | $15.85 | |||
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 | |||
Shares redeemed during period (in shares) | 22,000 |
Derivatives_Derivatives_design
Derivatives Derivatives designated as cash flow hedges narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
Oct. 23, 2010 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 25, 2013 | |
Derivative [Line Items] | |||||
Notional Amount | $11,498,000 | $8,470,000 | |||
Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Pay Rate | 2.59% | ||||
Notional Amount | 5,200,000 | ||||
Term | 10 years | 5 years | |||
Hedging Instrument [Member] | Pay fixed - receive floating interest rate swap [Member] | |||||
Derivative [Line Items] | |||||
Amounts included in accumulated other comprehensive income as unrealized losses | 185,000 | 29,000 | |||
Hedging Instrument [Member] | Interest Rate Swap 2 [Member] | |||||
Derivative [Line Items] | |||||
Pay Rate | 1.43% | ||||
Notional Amount | 10,000,000 | ||||
Operating Expense [Member] | Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Loss on Cash Flow Hedge Ineffectiveness | $6,000 |
Derivatives_Derivatives_design1
Derivatives Derivatives designated as cash flow hedges (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | |
position | |||
Derivative [Line Items] | |||
Notional Amount | $11,498,000 | $8,470,000 | |
Life (Years) | |||
Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional Amount | 5,200,000 | ||
Pay Rate | 2.59% | ||
Interest Rate Swap One [Member] | Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Number of positions | 1 | 1 | |
Notional Amount | 5,155,000 | 5,155,000 | |
Asset | 0 | 0 | |
Liability | 213,000 | 72,000 | |
Receive Rate | 0.23% | 0.23% | |
Pay Rate | 2.59% | 2.59% | |
Life (Years) | 5 years 9 months 18 days | 6 years 9 months 18 days | |
Interest Rate Swap Two [Member] | Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Number of positions | 1 | 1 | |
Notional Amount | 10,000,000 | 10,000,000 | |
Asset | 0 | 102,000 | |
Liability | $74,000 | $0 | |
Receive Rate | 0.16% | 0.17% | |
Pay Rate | 1.43% | 1.43% | |
Life (Years) | 4 years 0 months 0 days | 5 years 0 months 0 days |
Derivatives_Derivatives_design2
Derivatives Derivatives designated as fair value hedges narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2010 | |
Derivative [Line Items] | |||
Notional Amount | 11,498,000 | $8,470,000 | |
Interest Rate Lock Commitments [Member] | Minimum [Member] | |||
Derivative [Line Items] | |||
Period between issuance of a loan commitment and closing and sale of the loan, maximum | 60 days | ||
Interest Rate Lock Commitments [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Period between issuance of a loan commitment and closing and sale of the loan, maximum | 120 days | ||
Hedging Instrument [Member] | |||
Derivative [Line Items] | |||
Notional Amount | 5,200,000 | ||
Hedging Instrument [Member] | Interest rate lock commitments related to mandatory delivery methods [Member] | |||
Derivative [Line Items] | |||
Notional Amount | 22,200,000 | ||
Number of positions | 110 | ||
Fair value of hedge agreement | 16,000 | ||
Hedging Instrument [Member] | Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Notional Amount | 33,000,000 | ||
Number of positions | 27 | ||
Fair value of hedge agreement | $202,000 |
Derivatives_Derivatives_not_de
Derivatives Derivatives not designated as hedging instruments narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
Notional Amount | $11,498,000 | $8,470,000 |
Not Designated as Hedging Instrument [Member] | Open best efforts interest rate lock commitments [Member] | ||
Derivative [Line Items] | ||
Notional Amount | 103,500,000 | |
Not Designated as Hedging Instrument [Member] | Open forward sales commitments to investors [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $114,400,000 |
Derivatives_Twoway_client_inte
Derivatives Two-way client interest rate swaps not designated as either fair value or cash flow hedges (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
position | ||
Derivative [Line Items] | ||
Notional Amount | $11,498,000 | $8,470,000 |
Asset | 50,000 | 232,000 |
Liability | 50,000 | 232,000 |
Life (Years) | ||
Pay fixed - receive floating interest rate swap [Member] | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 4,235,000 | |
Asset | 0 | |
Liability | 232,000 | |
Pay Rate | 3.90% | |
Spread on variable rate | 2.00% | |
Life (Years) | 13 years 10 months 24 days | |
Pay floating - Receive fixed interest rate swap | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 4,235,000 | |
Asset | 232,000 | |
Liability | 0 | |
Pay Rate | 3.90% | |
Spread on variable rate | 2.00% | |
Life (Years) | 13 years 10 months 24 days | |
Interest Rate Swap One [Member] | Pay fixed - receive floating interest rate swap [Member] | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 4,002,000 | |
Asset | 0 | |
Liability | 19,000 | |
Pay Rate | 3.90% | |
Spread on variable rate | 2.00% | |
Life (Years) | 12 years 10 months 24 days | |
Interest Rate Swap One [Member] | Pay floating - Receive fixed interest rate swap | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 4,002,000 | |
Asset | 19,000 | |
Liability | 0 | |
Pay Rate | 3.90% | |
Spread on variable rate | 2.00% | |
Life (Years) | 12 years 10 months 24 days | |
Interest Rate Swap Two [Member] | Pay fixed - receive floating interest rate swap [Member] | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 1,747,000 | |
Asset | 0 | |
Liability | 31,000 | |
Pay Rate | 4.09% | |
Spread on variable rate | 1.80% | |
Life (Years) | 9 years 10 months 24 days | |
Interest Rate Swap Two [Member] | Pay floating - Receive fixed interest rate swap | ||
Derivative [Line Items] | ||
Number of positions | 1 | |
Notional Amount | 1,747,000 | |
Asset | $31,000 | |
Pay Rate | 4.09% | |
Spread on variable rate | 1.80% | |
Life (Years) | 9 years 10 months 24 days |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Change in other comprehensive income (loss) for the period (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance beginning of period | $232 | $6,467 | $3,926 |
Unrealized holding gains (net of tax, $1,511, $3,212, and 1,979 for 2012, 2013 and 2014, respectively) | 3,841 | -6,234 | 2,932 |
Reclassification adjustment (net of tax, $151, $142, and $63 for 2012, 2013 and 2014, respectively) | -123 | ||
Unrealized gain on interest rate swaps (net of tax, $50, $142, and $82 for 2012, 2013 and 2014, respectively) | -160 | ||
Reclassification adjustment for loss on interest rate swap ineffectiveness included in net income, net of tax of ($2) for 2014 | 4 | 0 | 0 |
Balance end of period | 3,794 | 232 | 6,467 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
Unrealized holding gains losses arising during the period, taxes | 1,979 | -3,212 | 1,511 |
Reclassification adjustment for investment securities, taxes | 63 | 142 | 151 |
Unrealized gain on interest rate swaps, tax | -82 | 142 | -50 |
Reclassification adjustment for loss on interest rate swap ineffectiveness, tax | 2 | 0 | 0 |
Unrealized Gains (Losses) on Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance beginning of period | 261 | 6,771 | 4,133 |
Unrealized holding gains (net of tax, $1,511, $3,212, and 1,979 for 2012, 2013 and 2014, respectively) | 3,841 | -6,234 | 2,932 |
Reclassification adjustment (net of tax, $151, $142, and $63 for 2012, 2013 and 2014, respectively) | -123 | -276 | -294 |
Unrealized gain on interest rate swaps (net of tax, $50, $142, and $82 for 2012, 2013 and 2014, respectively) | 0 | 0 | 0 |
Reclassification adjustment for loss on interest rate swap ineffectiveness included in net income, net of tax of ($2) for 2014 | 0 | ||
Balance end of period | 3,979 | 261 | 6,771 |
Derivatives [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Balance beginning of period | -29 | -304 | -207 |
Unrealized holding gains (net of tax, $1,511, $3,212, and 1,979 for 2012, 2013 and 2014, respectively) | 0 | 0 | 0 |
Reclassification adjustment (net of tax, $151, $142, and $63 for 2012, 2013 and 2014, respectively) | 0 | 0 | 0 |
Unrealized gain on interest rate swaps (net of tax, $50, $142, and $82 for 2012, 2013 and 2014, respectively) | -160 | 275 | -97 |
Reclassification adjustment for loss on interest rate swap ineffectiveness included in net income, net of tax of ($2) for 2014 | 4 | ||
Balance end of period | -185 | -29 | -304 |
Defined Benefit Pension Plan [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Reclassification adjustment (net of tax, $151, $142, and $63 for 2012, 2013 and 2014, respectively) | -276 | -294 | |
Unrealized gain on interest rate swaps (net of tax, $50, $142, and $82 for 2012, 2013 and 2014, respectively) | 275 | -97 | |
Balance end of period | $232 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Gain on securities available for sale | ($186) | ($418) | ($445) | |||
Income tax expense | 2,341 | 1,931 | 1,966 | |||
NET INCOME | 7,486 | 6,163 | 7,990 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
NET INCOME | -119 | [1] | -276 | [1] | -294 | [1] |
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 | -186 | [1] | -418 | [1] | -445 | [1] |
Income tax expense | 63 | [1] | 142 | [1] | 151 | [1] |
NET INCOME | -119 | [1] | -276 | [1] | -294 | [1] |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax expense | -2 | [2] | 0 | [2] | 0 | [2] |
Other operating expense | $6 | [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 24, "Derivatives". |