Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 25, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'HERITAGE OAKS BANCORP | ' |
Entity Central Index Key | '0000921547 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,391,343 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $25,672 | $23,425 |
Interest bearing deposits in other banks | 7,609 | 10,691 |
Total cash and cash equivalents | 33,281 | 34,116 |
Investment securities available for sale | 267,179 | 287,682 |
Federal Home Loan Bank stock | 4,739 | 4,575 |
Loans held for sale | 5,463 | 22,549 |
Gross loans | 777,154 | 689,608 |
Net deferred loan fees | -1,454 | -937 |
Allowance for loan losses | -17,468 | -18,118 |
Net loans held for investment | 758,232 | 670,553 |
Premises and equipment | 24,129 | 15,956 |
Deferred tax assets, net | 21,361 | 21,933 |
Bank owned life insurance | 15,710 | 15,349 |
Goodwill and other intangible assets | 12,681 | 12,981 |
Other assets | 11,068 | 11,838 |
Total assets | 1,153,843 | 1,097,532 |
Liabilities | ' | ' |
Non-interest bearing deposits | 285,428 | 273,242 |
Interest bearing deposits | 671,524 | 597,628 |
Total deposits | 956,952 | 870,870 |
Short term FHLB borrowing | 5,000 | 33,000 |
Long term FHLB borrowing | 52,500 | 33,500 |
Junior subordinated debentures | 8,248 | 8,248 |
Other liabilities | 6,051 | 6,385 |
Total liabilities | 1,028,751 | 952,003 |
Stockholders' equity | ' | ' |
Common stock, no par value; authorized: 100,000,000 shares; issued and outstanding: 25,391,343 shares and 25,307,110 shares as of September 30, 2013 and December 31, 2012, respectively | 101,439 | 101,354 |
Paid in capital | 5,879 | 7,337 |
Retained earnings | 17,083 | 8,773 |
Accumulated other comprehensive (loss) / income, net of tax (benefit) / expense of ($2,037) and $2,745 as of September 30, 2013 and December 31, 2012, respectively | -2,913 | 3,925 |
Total stockholders' equity | 125,092 | 145,529 |
Total liabilities and stockholders' equity | 1,153,843 | 1,097,532 |
Series A senior preferred stock | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock | ' | 20,536 |
Series C preferred stock | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock | $3,604 | $3,604 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Preferred stock | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, no par value (in dollars per share) | ' | ' |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 25,391,343 | 25,307,110 |
Common stock, shares outstanding | 25,391,343 | 25,307,110 |
Accumulated other comprehensive income, tax expense (in dollars) | ($2,037) | $2,745 |
Series A senior preferred stock | ' | ' |
Preferred stock | ' | ' |
Preferred stock, per share stated value (in dollars per share) | ' | $1,000 |
Preferred stock, shares issued | 0 | 21,000 |
Preferred stock, shares outstanding | 0 | 21,000 |
Series C preferred stock | ' | ' |
Preferred stock | ' | ' |
Preferred stock, per share stated value (in dollars per share) | $3.25 | $3.25 |
Preferred stock, shares issued | 1,189,538 | 1,189,538 |
Preferred stock, shares outstanding | 1,189,538 | 1,189,538 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income | ' | ' | ' | ' |
Loans | $10,064 | $9,716 | $29,448 | $29,289 |
Investment securities | 1,347 | 1,783 | 3,993 | 5,311 |
Other | 98 | 20 | 216 | 72 |
Total interest income | 11,509 | 11,519 | 33,657 | 34,672 |
Interest Expense | ' | ' | ' | ' |
Interest on deposits | 731 | 719 | 2,101 | 2,315 |
Other borrowings | 296 | 215 | 717 | 617 |
Total interest expense | 1,027 | 934 | 2,818 | 2,932 |
Net interest income before provision for loan losses | 10,482 | 10,585 | 30,839 | 31,740 |
Provision for loan losses | ' | 1,286 | ' | 7,681 |
Net interest income after provision for loan losses | 10,482 | 9,299 | 30,839 | 24,059 |
Non-Interest Income | ' | ' | ' | ' |
Fees and service charges | 1,195 | 1,071 | 3,330 | 3,270 |
Mortgage gain on sale and origination fees | 656 | 1,181 | 2,519 | 3,071 |
Gain on sale of investment securities | 344 | 329 | 3,935 | 1,696 |
Gain on sale of other real estate owned | ' | 102 | ' | 112 |
Other income | 228 | 301 | 1,212 | 851 |
Total non-interest income | 2,423 | 2,984 | 10,996 | 9,000 |
Non-Interest Expense | ' | ' | ' | ' |
Salaries and employee benefits | 4,529 | 4,532 | 14,535 | 13,522 |
Occupancy | 781 | 728 | 2,384 | 2,542 |
Information technology | 658 | 551 | 1,925 | 1,911 |
Professional services | 729 | 1,002 | 2,082 | 2,403 |
Regulatory | 212 | 371 | 851 | 1,238 |
Equipment | 395 | 395 | 1,245 | 1,223 |
Sales and marketing | 170 | 171 | 438 | 432 |
Foreclosed asset costs and write-downs | 23 | 107 | 131 | 303 |
Provision for mortgage loan repurchases | ' | 125 | 570 | 982 |
Amortization of intangible assets | 100 | 86 | 300 | 258 |
Other expense | 954 | 727 | 2,478 | 1,843 |
Total non-interest expense | 8,551 | 8,795 | 26,939 | 26,657 |
Income before income tax expense / (benefit) | 4,354 | 3,488 | 14,896 | 6,402 |
Income tax expense / (benefit) | 1,593 | -2,940 | 5,689 | -3,508 |
Net income | 2,761 | 6,428 | 9,207 | 9,910 |
Dividends and accretion on preferred stock | 181 | 357 | 898 | 1,113 |
Net income available to common shareholders | $2,580 | $6,071 | $8,309 | $8,797 |
Earnings Per Common Share | ' | ' | ' | ' |
Basic (in dollars per share) | $0.10 | $0.24 | $0.33 | $0.35 |
Diluted (in dollars per share) | $0.10 | $0.23 | $0.31 | $0.33 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Comprehensive Income | ' | ' | ' | ' |
Net income | $2,761 | $6,428 | $9,207 | $9,910 |
Other comprehensive (loss) / income: | ' | ' | ' | ' |
Unrealized security holding (losses) / gains | -1,959 | 2,477 | -7,685 | 7,240 |
Reclassification for net gains on investments included in earnings | -344 | -329 | -3,935 | -1,696 |
Other comprehensive (loss) / income, before income tax (benefit) / expense | -2,303 | 2,148 | -11,620 | 5,544 |
Income tax (benefit) / expense related to items of other comprehensive income | -947 | 883 | -4,782 | 2,281 |
Other comprehensive (loss) / income | -1,356 | 1,265 | -6,838 | 3,263 |
Comprehensive income | $1,405 | $7,693 | $2,369 | $13,173 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $9,207 | $9,910 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 1,050 | 1,007 |
Provision for loan losses | ' | 7,681 |
Amortization of premiums / discounts on investment securities, net | 3,110 | 2,488 |
Amortization of intangible assets | 300 | 258 |
Share-based compensation expense | 391 | 234 |
Gain on sale of available for sale securities | -3,935 | -1,696 |
Originations of loans held for sale | -120,520 | -132,905 |
Proceeds from sale of loans held for sale | 137,606 | 142,262 |
Net increase in bank owned life insurance | -361 | -388 |
Decrease / (increase) in deferred tax asset | 5,354 | -1,349 |
Deferred tax assets valuation allowance adjustment | ' | -5,605 |
Decrease in other assets | 770 | 478 |
Decrease in other liabilities | -334 | -2,809 |
Net Cash Provided By Operating Activities | 32,638 | 19,566 |
Cash flows from investing activities: | ' | ' |
Purchase of securities, available for sale | -170,063 | -150,783 |
Sale of securities, available for sale | 144,027 | 95,786 |
Maturities and calls of securities, available for sale | 544 | 3 |
Proceeds from principal paydowns of securities, available for sale | 35,200 | 35,278 |
(Purchase) / redemption of Federal Home Loan Bank stock | -164 | 110 |
Increase in loans, net | -90,254 | -42,710 |
Allowance for loan loss recoveries | 1,201 | 737 |
Purchase of property, premises and equipment, net | -9,223 | -10,761 |
Proceeds from sale of property, premises and equipment | ' | 19 |
Proceeds from sale of foreclosed collateral | 1,374 | 1,335 |
Net Cash Used In Investing Activities | -87,358 | -70,986 |
Cash flows from financing activities: | ' | ' |
Increase in deposits, net | 86,082 | 68,824 |
Proceeds from Federal Home Loan Bank borrowing | 183,500 | 166,500 |
Repayments of Federal Home Loan Bank borrowing | -192,500 | -172,000 |
Proceeds from exercise of stock options | 85 | 131 |
Preferred stock dividends paid | -707 | -2,751 |
Retirement of Series A preferred stock and related warrants | -22,575 | ' |
Net Cash Provided By Financing Activities | 53,885 | 60,704 |
Net (decrease) / increase in cash and cash equivalents | -835 | 9,284 |
Cash and cash equivalents, beginning of period | 34,116 | 34,892 |
Cash and cash equivalents, end of period | 33,281 | 44,176 |
Cash Flow Information | ' | ' |
Interest paid | 2,791 | 3,176 |
Income taxes paid | 2,100 | 2,735 |
Non-Cash Flow Information | ' | ' |
Change in unrealized gain on available for sale securities | -11,620 | 5,545 |
Loans transferred to foreclosed collateral | 1,374 | 769 |
Accretion of preferred stock discount | $189 | $281 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Description of Business | |
Heritage Oaks Bancorp (the “Bancorp”) is a California corporation organized in 1994 to act as the holding company for Heritage Oaks Bank (the “Bank”), which opened for business in 1983. The Bank operates within San Luis Obispo, Santa Barbara and Ventura counties. The Bank offers traditional banking products such as checking, savings, money market accounts and certificates of deposit, as well as commercial and consumer loans to customers who are predominately small to medium-sized businesses and individuals. As such, the Company is subject to a concentration risk associated with its banking operations in San Luis Obispo, Santa Barbara and Ventura Counties. No one customer accounts for more than 10% of revenue or assets in any period presented. The Company has no assets nor does it generate any revenue from outside of the United States. While the chief decision-makers of the Company monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements of Heritage Oaks Bancorp and subsidiaries (the “Company”) have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for annual financial statements are not included herein. In the opinion of Management, all adjustments (which consist solely of normal recurring accruals) considered necessary for a fair presentation of results for the interim periods presented have been included. These interim condensed consolidated financial statements should be read in conjunction with the financial statements and related notes contained in the Company’s 2012 Annual Report filed on Form 10-K, filed with the Securities and Exchange Commission on March 4, 2013, file number 000-25020. | |
The condensed consolidated financial statements include the accounts of Heritage Oaks Bancorp and its wholly-owned financial subsidiary, Heritage Oaks Bank. All significant inter-company balances and transactions have been eliminated. Heritage Oaks Capital Trust II, which was formed solely for the purpose of issuing trust preferred securities, is an unconsolidated subsidiary as the Company is not the primary beneficiary of the trust. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. Certain amounts in the consolidated financial statements for the year ended December 31, 2012 and for the three and nine months ended September 30, 2012 may have been reclassified to conform to the presentation of the condensed consolidated financial statements in 2013. | |
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of 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 these estimates. Estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of real estate acquired through foreclosure, the carrying value of the Company’s deferred tax assets and estimates used in the determination of the fair value of certain financial instruments. | |
The significant accounting policies that the Company applies are detailed in Note 1. Summary of Significant Accounting Policies, of the Company’s Annual Report filed on Form 10-K. There have been no changes to these policies or their application other than as noted below, related to the adoption of standard updates issued by the Financial Accounting Standards Board (“FASB”). | |
Recent Accounting Guidance Adopted | |
On July 27, 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This update, like ASU 2011-08 which the Company adopted in 2011, allows companies the option to first evaluate qualitative factors to determine if events or circumstances exist that indicate that it is more likely than not that an indefinite-lived intangible asset is impaired. If based on this assessment, a company concludes that there are no indicators that suggest an indefinitely-lived asset is more likely than not of having been impaired, then no further quantitative analysis is required. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The Company currently does not have any indefinite-lived intangible assets, other than goodwill, therefore adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
On October 1, 2012, the FASB issued ASU No. 2012-04, Technical Corrections and Improvements. The amendments in ASU 2012-04 cover a wide range of Topics in the Codification and address technical corrections and improvements and conforming amendments related to fair value measurements. For public entities, the amendments that are subject to the transition guidance are effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
On February 15, 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires companies to present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts of reclassifications from each component of accumulated other comprehensive income based on its source and the income statement lines affected by the reclassification. For public entities, the amendments that are subject to the transition guidance are effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
Recent Accounting Guidance Not Yet Effective | |
There has been no recently released accounting guidance that is directly applicable to the Company, which is not yet effective. | |
Fair_Value_of_Assets_and_Liabi
Fair Value of Assets and Liabilities | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value of Assets and Liabilities | ' | |||||||||||||||||||
Fair Value of Assets and Liabilities | ' | |||||||||||||||||||
Note 2. Fair Value of Assets and Liabilities | ||||||||||||||||||||
Recurring Basis | ||||||||||||||||||||
The following table provides a summary of the financial instruments the Company measures at fair value on a recurring basis: | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | ||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||
Assets | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 7,728 | $ | - | $ | 7,728 | ||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
Agency | - | 175,432 | - | 175,432 | ||||||||||||||||
Non-agency | - | 13,390 | - | 13,390 | ||||||||||||||||
Obligations of state and municipal securities | - | 44,060 | - | 44,060 | ||||||||||||||||
Asset backed securities | - | 26,569 | - | 26,569 | ||||||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 267,179 | $ | - | $ | 267,179 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 7,567 | $ | - | $ | 7,567 | ||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
Agency | - | 145,768 | - | 145,768 | ||||||||||||||||
Non-agency | - | 44,795 | - | 44,795 | ||||||||||||||||
Obligations of state and municipal securities | - | 68,968 | - | 68,968 | ||||||||||||||||
Asset backed securities | 20,584 | - | 20,584 | |||||||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 287,682 | $ | - | $ | 287,682 | ||||||||||||
In determining the fair value of Level 3 instruments on a recurring basis the Company takes into consideration several variables, including but not limited to: expectations about interest rate movements, prepayment speeds of the underlying mortgages for mortgage backed securities, expected default rates, and credit spreads over the risk free rate. Of these variables, default rates and credit spreads are perhaps the least observable and most impactful on the long-term value of a Level 3 security. Since a bond’s value is represented by its yield which reflects the risk-free yield curve plus compensation for various risks incurred in buying the bond, changes to the risk assumptions including probability of default and timing of future cash flows can materially impact the market value. | ||||||||||||||||||||
As of September 30, 2013 and December 31, 2012, there were no Level 3 instruments. There were also no changes in the balance sheet carrying value associated with recurring Level 3 financial instruments for the three and nine months ended September 30, 2013. The following table provides a summary of the 2012 changes in balance sheet carrying values associated with recurring Level 3 financial instruments: | ||||||||||||||||||||
Purchases, | ||||||||||||||||||||
Beginning | Gain / (Loss) | Issuances, and | Sales and | Transfers to / (from) | Ending | |||||||||||||||
(dollar amounts in thousands) | Balance | Included in OCI (1) | Settlements | Maturities | Level III | Balance | ||||||||||||||
For the three months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Obligations of state and municipal securities | $ | 262 | $ | - | $ | - | $ | - | $ | (262 | ) | $ | - | |||||||
Purchases, | ||||||||||||||||||||
Beginning | Gain / (Loss) | Issuances, and | Sales and | Transfers to / (from) | Ending | |||||||||||||||
(dollar amounts in thousands) | Balance | Included in OCI (1) | Settlements | Maturities | Level III | Balance | ||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Obligations of state and municipal securities | $ | 259 | $ | 3 | $ | - | $ | - | $ | (262 | ) | $ | - | |||||||
Agency mortgage baked securities | $ | - | $ | (191 | ) | $ | 4,674 | $ | - | $ | (4,483 | ) | $ | - | ||||||
Non-agency mortgage backed securities | $ | 3,074 | $ | - | $ | - | $ | - | $ | (3,074 | ) | $ | - | |||||||
(1) Realized or unrealized gains from the changes in values of Level 3 financial instruments represent gains from changes in values of financial instruments only for the period(s) in which the instruments were classified as Level 3. | ||||||||||||||||||||
The assets presented under Level 3 of the fair value hierarchy, which are classified as obligations of state and municipal subdivisions, represent available for sale investment securities in the form of certificates of participation, where an active market for such securities is not currently available. | ||||||||||||||||||||
Non-recurring Basis | ||||||||||||||||||||
The Company may be required, from time to time, to measure certain assets and liabilities at fair value on a non-recurring basis. These include assets and liabilities that are measured at the lower of cost or fair value that were recognized at fair value which was below cost. Certain impaired loans measured at fair value at December 31, 2012 are no longer recorded at fair value due to borrower payments reducing the carrying value of these loans to less than fair value and due to other impaired loans now being evaluated under the discounted cash flow method versus the collateral method. The discounted cash flow method as prescribed by ASC 310 Receivables, is not a fair value measurement since the discount rate utilized is the loan’s effective interest rate, which is not a market rate. The discounted cash flow approach was determined to be the most appropriate impairment method to use for these impaired loans based on their significant payment history and the global cash flow analysis performed on each borrower. | ||||||||||||||||||||
The following table provides a summary of assets the Company measures at fair value on a non-recurring basis: | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Year to | |||||||||||||||||
Active Markets for | Observable | Unobservable | Date | |||||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | Total Losses/ | |||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Fair Value | (Recoveries) | |||||||||||||||
Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Residential 1 to 4 family | $ | - | $ | - | $ | 348 | $ | 348 | $ | - | ||||||||||
Commercial real estate | - | - | 521 | 521 | 88 | |||||||||||||||
Commercial and industrial | - | - | 76 | 76 | 959 | |||||||||||||||
Land | - | - | 3,023 | 3,023 | (8 | ) | ||||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 3,968 | $ | 3,968 | $ | 1,039 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | 820 | $ | 213 | $ | 1,033 | $ | 1,941 | ||||||||||
Agriculture | - | 72 | - | 72 | 28 | |||||||||||||||
Construction | - | 1,656 | - | 1,656 | 460 | |||||||||||||||
Land | - | - | 2,048 | 2,048 | 3,802 | |||||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | 2,548 | $ | 2,261 | $ | 4,809 | $ | 6,231 | ||||||||||
There were no transfers in or out of Level 1 and Level 2 for assets reported at fair value on either a recurring and non-recurring basis during the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||
The following table provides a summary of the estimated fair value of financial instruments: | ||||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
(dollar amounts in thousands) | Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
September 30, 2013 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 33,281 | $ | 33,281 | $ | - | $ | - | $ | 33,281 | ||||||||||
Investment securities available for sale | 267,179 | - | 267,179 | - | 267,179 | |||||||||||||||
Federal Home Loan Bank stock | 4,739 | - | - | - | N/A | |||||||||||||||
Loans receivable, net of deferred fees and costs | 775,700 | - | - | 779,769 | 779,769 | |||||||||||||||
Loans held for sale | 5,463 | - | 5,463 | - | 5,463 | |||||||||||||||
Accrued interest receivable | 3,629 | - | 1,194 | 2,435 | 3,629 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | 285,428 | 285,428 | - | - | 285,428 | |||||||||||||||
Interest bearing deposits | 671,524 | - | 673,207 | - | 673,207 | |||||||||||||||
Federal Home Loan Bank advances | 57,500 | - | 55,803 | - | 55,803 | |||||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,062 | 7,062 | |||||||||||||||
Accrued interest payable | 177 | - | 177 | - | 177 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 34,116 | $ | 34,116 | $ | - | $ | - | $ | 34,116 | ||||||||||
Investments and mortgage-backed securities | 287,682 | - | 287,682 | - | 287,682 | |||||||||||||||
Federal Home Loan Bank stock | 4,575 | - | - | - | N/A | |||||||||||||||
Loans receivable, net of deferred fees and costs | 688,671 | - | 2,548 | 701,144 | 703,692 | |||||||||||||||
Loans held for sale | 22,549 | - | 22,549 | - | 22,549 | |||||||||||||||
Accrued interest receivable | 3,915 | - | 1,497 | 2,418 | 3,915 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Non interest-bearing deposits | 273,242 | 273,242 | - | - | 273,242 | |||||||||||||||
Interest-bearing deposits | 597,628 | - | 598,664 | - | 598,664 | |||||||||||||||
Federal Home Loan Bank advances | 66,500 | - | 67,059 | - | 67,059 | |||||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,078 | 7,078 | |||||||||||||||
Accrued interest payable | 192 | - | 192 | - | 192 | |||||||||||||||
Information on off-balance sheet instruments follows: | ||||||||||||||||||||
30-Sep-13 | December 31, 2012 | |||||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | |||||||||||||||||
(dollar amounts in thousands) | Amount | or Assume | Amount | or Assume | ||||||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 170,047 | $ | 1,700 | $ | 178,432 | $ | 1,784 | ||||||||||||
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||
Note 3. Investment Securities | |||||||||||||||||||||
The following table sets forth the amortized cost and fair values of the Company’s investment securities, all of which are reported as available for sale: | |||||||||||||||||||||
(dollar amounts in thousands) | Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
September 30, 2013 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
Obligations of U.S. government agencies | $ | 7,738 | $ | 37 | $ | (47 | ) | $ | 7,728 | ||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 178,856 | 446 | (3,870 | ) | 175,432 | ||||||||||||||||
Non-agency | 13,266 | 168 | (44 | ) | 13,390 | ||||||||||||||||
State and municipal securities | 45,333 | 385 | (1,658 | ) | 44,060 | ||||||||||||||||
Asset backed securities | 26,936 | - | (367 | ) | 26,569 | ||||||||||||||||
Total | $ | 272,129 | $ | 1,036 | $ | (5,986 | ) | $ | 267,179 | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 7,307 | $ | 262 | $ | (2 | ) | $ | 7,567 | ||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 145,430 | 1,136 | (798 | ) | 145,768 | ||||||||||||||||
Non-agency | 43,402 | 1,578 | (185 | ) | 44,795 | ||||||||||||||||
State and municipal securities | 64,824 | 4,240 | (96 | ) | 68,968 | ||||||||||||||||
Asset backed securities | 20,049 | 568 | (33 | ) | 20,584 | ||||||||||||||||
Total | $ | 281,012 | $ | 7,784 | $ | (1,114 | ) | $ | 287,682 | ||||||||||||
Other than Temporary Impairment (“OTTI”) | |||||||||||||||||||||
At the end of the first quarter of 2013, the Company sold the two private labeled mortgage backed securities in which OTTI losses had been recognized, as part of its repositioning of the longer duration portion of the investment portfolio, thereby eliminating all securities in the portfolio for which OTTI losses had been incurred. These securities had an aggregate recorded fair value of $0.7 million ($1.0 million historical cost) at December 31, 2012. The following tables provide information related to these two securities: | |||||||||||||||||||||
For the Three Months Ended September 30, 2013 | For the Three Months Ended September 30, 2012 | ||||||||||||||||||||
OTTI Related | OTTI Related | ||||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | ||||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | |||||||||||||||
Balance, beginning of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 283 | $ | 392 | |||||||||
Change in value attributable to other factors | - | - | - | - | (140 | ) | (140 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 143 | $ | 252 | |||||||||
For the Nine Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
OTTI Related | OTTI Related | ||||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | ||||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | |||||||||||||||
Balance, beginning of the period | $ | 109 | $ | 170 | $ | 279 | $ | 109 | $ | 361 | $ | 470 | |||||||||
Less: losses related to OTTI securities sold | (109 | ) | (170 | ) | (279 | ) | - | - | - | ||||||||||||
Change in value attributable to other factors | - | - | - | - | (218 | ) | (218 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 143 | $ | 252 | |||||||||
The following table provides a summary of investment securities in an unrealized loss position: | |||||||||||||||||||||
Securities In A Loss Position For | |||||||||||||||||||||
(dollar amounts in thousands) | Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
September 30, 2013 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Obligations of U.S. government agencies | $ | 3,100 | $ | (46 | ) | $ | 41 | $ | (1 | ) | $ | 3,141 | $ | (47 | ) | ||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 111,209 | (3,566 | ) | 5,749 | (304 | ) | 116,958 | (3,870 | ) | ||||||||||||
Non-agency | 1,218 | (44 | ) | - | - | 1,218 | (44 | ) | |||||||||||||
State and municipal securities | 25,638 | (1,658 | ) | - | - | 25,638 | (1,658 | ) | |||||||||||||
Asset backed securities | 17,700 | (367 | ) | - | - | 17,700 | (367 | ) | |||||||||||||
Total | $ | 158,865 | $ | (5,681 | ) | $ | 5,790 | $ | (305 | ) | $ | 164,655 | $ | (5,986 | ) | ||||||
December 31, 2012 | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | - | $ | 44 | $ | (2 | ) | $ | 44 | $ | (2 | ) | |||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 83,092 | (798 | ) | - | - | 83,092 | (798 | ) | |||||||||||||
Non-agency | 7,204 | (15 | ) | 719 | (170 | ) | 7,923 | (185 | ) | ||||||||||||
State and municipal securities | 9,813 | (96 | ) | - | - | 9,813 | (96 | ) | |||||||||||||
Asset backed securities | 9,828 | (33 | ) | - | - | 9,828 | (33 | ) | |||||||||||||
Total | $ | 109,937 | $ | (942 | ) | $ | 763 | $ | (172 | ) | $ | 110,700 | $ | (1,114 | ) | ||||||
As of September 30, 2013, the Company believes that unrealized losses on its investment securities are not attributable to credit quality, but rather fluctuations in market prices for these investments. In the case of the agency mortgage related securities, they have contractual cash flows guaranteed by agencies of the U.S. Government. While the Company’s investment security holdings have contractual maturity dates that range from 1 to 40 years, they have a much shorter effective duration dependent on the instrument’s priority in the overall cash flow structure and the characteristics of the loans underlying the investment security. Management does not intend to sell and it is unlikely that management will be required to sell the securities prior to their anticipated recovery. As of September 30, 2013, the Company does not believe unrealized losses related to any of its securities are other than temporary. | |||||||||||||||||||||
The proceeds from the sales and calls of securities and the associated gains and losses are listed below: | |||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Proceeds | $ | 38,930 | $ | 41,899 | $ | 144,571 | $ | 95,789 | |||||||||||||
Gross gains | 970 | 448 | 5,349 | 2,160 | |||||||||||||||||
Gross losses | (626 | ) | (119 | ) | (1,414 | ) | (464 | ) | |||||||||||||
The income tax expense related to these net realized gains was $0.1 million, for both the three months ended September 30, 2013 and 2012 and $1.6 million and $0.7 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||
The amortized cost and fair value maturities of available for sale investment securities at September 30, 2013 are shown below. The table reflects the expected lives of mortgage backed securities, based on the Company’s historical prepayment experience, because borrowers have the right to prepay obligations without prepayment penalties. Contractual maturities are reflected for all other security types. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||||||
September 30, 2013 | One Year Or | Over 1 Through | Over 5 Years | Over 10 Years | Total | ||||||||||||||||
Less | 5 Years | Through | |||||||||||||||||||
10 Years | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 100 | $ | 3,481 | $ | 1,729 | $ | 2,418 | $ | 7,728 | |||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 24,910 | 75,551 | 29,616 | 45,355 | 175,432 | ||||||||||||||||
Non-agency | 5,426 | 6,443 | 1,521 | - | 13,390 | ||||||||||||||||
State and municipal securities | 40 | 6,516 | 34,300 | 3,204 | 44,060 | ||||||||||||||||
Asset backed securities | - | - | 14,569 | 12,000 | 26,569 | ||||||||||||||||
Total available for sale securities | $ | 30,476 | $ | 91,991 | $ | 81,735 | $ | 62,977 | $ | 267,179 | |||||||||||
Amortized cost | $ | 30,658 | $ | 93,028 | $ | 83,805 | $ | 64,638 | $ | 272,129 | |||||||||||
Weighted average yield | 2.35% | 2.26% | 2.54% | 2.67% | 2.45% | ||||||||||||||||
Securities having an amortized cost and a fair value of $42.8 million and $41.7 million, respectively at September 30, 2013, and $8.7 million and $9.0 million, respectively at December 31, 2012 were pledged to secure public deposits. As of September 30, 2013 and December 31, 2012, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of total securities. | |||||||||||||||||||||
The following table summarizes earnings on both taxable and tax-exempt investment securities: | |||||||||||||||||||||
For The Three Months | For The Nine Months | ||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Taxable earnings on investment securities | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 33 | $ | 25 | $ | 86 | $ | 79 | |||||||||||||
Mortgage backed securities | 847 | 973 | 2,470 | 2,971 | |||||||||||||||||
State and municipal securities | - | 5 | 5 | 183 | |||||||||||||||||
Corporate debt securities | - | 181 | - | 504 | |||||||||||||||||
Asset backed securities | 113 | 72 | 350 | 146 | |||||||||||||||||
Non-taxable earnings on investment securities | |||||||||||||||||||||
State and municipal securities | 354 | 527 | 1,082 | 1,428 | |||||||||||||||||
Total | $ | 1,347 | $ | 1,783 | $ | 3,993 | $ | 5,311 | |||||||||||||
Loans
Loans | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||||||||
Note 4. Loans | ||||||||||||||||||||||||||||||||||
The following table provides a summary of outstanding loan balances: | ||||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 25,782 | $ | 21,467 | ||||||||||||||||||||||||||||||
Residential 1 to 4 family | 57,016 | 41,444 | ||||||||||||||||||||||||||||||||
Home equity lines of credit | 32,388 | 31,863 | ||||||||||||||||||||||||||||||||
Commercial | 442,322 | 372,592 | ||||||||||||||||||||||||||||||||
Farmland | 45,573 | 25,642 | ||||||||||||||||||||||||||||||||
Total real estate secured | 603,081 | 493,008 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 103,540 | 125,340 | ||||||||||||||||||||||||||||||||
Agriculture | 28,523 | 21,663 | ||||||||||||||||||||||||||||||||
Other | 44 | 61 | ||||||||||||||||||||||||||||||||
Total commercial | 132,107 | 147,064 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 4,619 | 8,074 | ||||||||||||||||||||||||||||||||
Single family residential - Spec. | 1,114 | 535 | ||||||||||||||||||||||||||||||||
Multi-family | 747 | 778 | ||||||||||||||||||||||||||||||||
Commercial | 6,694 | 10,329 | ||||||||||||||||||||||||||||||||
Total construction | 13,174 | 19,716 | ||||||||||||||||||||||||||||||||
Land | 25,042 | 24,664 | ||||||||||||||||||||||||||||||||
Installment loans to individuals | 3,495 | 4,895 | ||||||||||||||||||||||||||||||||
All other loans (including overdrafts) | 255 | 261 | ||||||||||||||||||||||||||||||||
Total gross loans | 777,154 | 689,608 | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (1,454 | ) | (937 | ) | ||||||||||||||||||||||||||||||
Allowance for loan losses | (17,468 | ) | (18,118 | ) | ||||||||||||||||||||||||||||||
Total net loans | $ | 758,232 | $ | 670,553 | ||||||||||||||||||||||||||||||
Loans held for sale | $ | 5,463 | $ | 22,549 | ||||||||||||||||||||||||||||||
Loans held for sale are primarily single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans in this category are sold within thirty to sixty days. Under the terms of the mortgage purchase agreements, the purchaser has the right to require the Company to either repurchase the mortgage or reimburse losses incurred by the purchaser, which are determined to have been directly caused by borrower fraud or misrepresentation. Although the Company intends to vigorously challenge these and any future claims, the Company has a reserve of $0.5 million for these potential repurchases at September 30, 2013. The Company has incurred losses of $1.4 million related to the settlement of nine loans since the beginning of 2011, the majority of which were associated with a group of related loans to a borrower found guilty of financial fraud that were originated and sold in 2007. | ||||||||||||||||||||||||||||||||||
Concentration of Credit Risk | ||||||||||||||||||||||||||||||||||
The Company held loans that were collateralized by various forms of real estate of $641.3 million and $537.4 million at September 30, 2013 and December 31, 2012, respectively. Such loans are generally made to borrowers located in the counties of San Luis Obispo, Santa Barbara and Ventura. The Company attempts to reduce its concentration of credit risk by making loans which are diversified by product type. While Management believes that the collateral presently securing this portfolio is adequate, there can be no assurances that further deterioration in the California real estate market would not expose the Company to significantly greater credit risk. | ||||||||||||||||||||||||||||||||||
Loans Serviced for Others | ||||||||||||||||||||||||||||||||||
Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $20.1 million at September 30, 2013 and $7.1 million at December 31, 2012. | ||||||||||||||||||||||||||||||||||
From time to time, the Company also originates SBA loans for sale for which it retains the servicing of the guaranteed portion of the loan sold. At September 30, 2013 and December 31, 2012, the unpaid principal balance of SBA loans serviced for others totaled $6.8 million and $3.1 million, respectively. The Company recognized $0.4 million in gains related to the sale of SBA loans in both the three and nine months ended September 30, 2013, respectively, as compared to no gains from the sale of SBA loans in the first three and nine months of 2012. The gain on sale of SBA loans was included as a component of other income in non-interest income. | ||||||||||||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||||||||||||
The following tables provide a summary of the Company’s investment in impaired loans: | ||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | |||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | ||||||||||||||||||||||||||||||
September 30, 2013 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | |||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 812 | $ | 965 | $ | 109 | $ | 703 | $ | 17 | ||||||||||||||||||||||||
Commercial | 1,194 | 1,925 | 642 | 552 | 91 | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,671 | 5,196 | 3,463 | 1,208 | 2,826 | |||||||||||||||||||||||||||||
Agriculture | 810 | 848 | 65 | 745 | 27 | |||||||||||||||||||||||||||||
Land | 8,063 | 12,093 | 7,050 | 1,013 | 3,854 | |||||||||||||||||||||||||||||
Installment loans to individuals | 26 | 71 | 26 | - | 10 | |||||||||||||||||||||||||||||
Totals | $ | 15,576 | $ | 21,098 | $ | 11,355 | $ | 4,221 | $ | 6,825 | ||||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | ||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | |||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | ||||||||||||||||||||||||||||||
December 31, 2012 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | |||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 831 | $ | 1,035 | $ | 246 | $ | 585 | $ | 18 | ||||||||||||||||||||||||
Home equity lines of credit | 58 | 152 | 58 | - | 7 | |||||||||||||||||||||||||||||
Commercial | 933 | 1,799 | 42 | 891 | - | |||||||||||||||||||||||||||||
Farmland | 1,077 | 1,089 | - | 1,077 | - | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,337 | 4,813 | 3,410 | 927 | 2,172 | |||||||||||||||||||||||||||||
Agriculture | 907 | 1,235 | 30 | 877 | 13 | |||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Commercial | 1,380 | 2,508 | - | 1,380 | - | |||||||||||||||||||||||||||||
Land | 7,504 | 11,307 | 6,106 | 1,398 | 3,829 | |||||||||||||||||||||||||||||
Installment loans to individuals | 285 | 333 | 285 | - | 22 | |||||||||||||||||||||||||||||
Totals | $ | 17,312 | $ | 24,271 | $ | 10,177 | $ | 7,135 | $ | 6,061 | ||||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | ||||||||||||||||||||||||||||||||||
The average recorded investment in impaired loans and the interest income recognized on impaired loans was: | ||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||
(dollar amounts in thousands) | Investment | Recognized | Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 783 | $ | - | $ | 801 | $ | - | $ | 750 | $ | - | $ | 756 | $ | - | ||||||||||||||||||
Home equity lines of credit | 28 | - | 384 | - | 43 | - | 378 | - | ||||||||||||||||||||||||||
Commercial | 745 | - | 3,492 | - | 781 | - | 3,757 | - | ||||||||||||||||||||||||||
Farmland | - | - | 363 | - | 269 | - | 272 | - | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,342 | 8 | 4,129 | - | 4,223 | 11 | 3,644 | 4 | ||||||||||||||||||||||||||
Agriculture | 1,064 | - | 1,905 | - | 966 | - | 2,010 | - | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | - | - | - | - | - | - | 234 | - | ||||||||||||||||||||||||||
Commercial | - | - | 1,257 | - | 345 | - | 943 | - | ||||||||||||||||||||||||||
Land | 7,760 | 4 | 7,189 | - | 7,605 | 4 | 5,863 | - | ||||||||||||||||||||||||||
Installment loans to individuals | 28 | - | 89 | - | 111 | - | 82 | - | ||||||||||||||||||||||||||
Totals | $ | 14,750 | $ | 12 | $ | 19,609 | $ | - | $ | 15,093 | $ | 15 | $ | 17,939 | $ | 4 | ||||||||||||||||||
The Company did not record income from the receipt of cash payments related to non-accruing loans during the three and nine month periods ended September 30, 2013 and 2012. If interest on non-accruing loans had been recognized at the original interest rates stipulated in the respective loan agreements, interest income would have increased $0.2 million and $0.3 million for the three months ended September 30, 2013 and 2012, respectively, and $0.6 million and $1.0 million for the nine months ended September 30, 2013 and 2012, respectively. Interest income recognized on impaired loans in the table above, if any, represents interest the Company recognized on accruing troubled debt restructurings (“TDRs”). Because the loans currently identified as impaired have unique risk characteristics, the Company determined the related valuation allowances for such loans on a loan-by-loan basis. | ||||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, $9.8 million and $11.6 million, respectively, in loans were classified as TDRs. Of those balances, $2.9 million and $17 thousand were accruing as of September 30, 2013 and December 31, 2012, respectively and the remaining balance of TDRs were non-accruing loans. In a majority of these loans, the Company has granted concessions regarding interest rates, payment structure and maturity. During the three and nine months ended September 30, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings. These term modifications included a combination of a partial charge-off of principal along with extensions of the maturity date at the loan’s original interest rate, which was lower than the current market rate for new debt with similar risk. The maturity date extensions granted were for periods ranging from 12 months to 18 months. Forgone interest related to concessions granted on TDRs totaled $43 thousand and $46 thousand for the three months ended September 30, 2013 and 2012, respectively, and $131 thousand and $85 thousand for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. | ||||||||||||||||||||||||||||||||||
The following tables present loan modifications by class which resulted in TDRs: | ||||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 227 | $ | 227 | 1 | $ | 227 | $ | 227 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | - | - | 3 | 91 | 91 | ||||||||||||||||||||||||||||
Agriculture | 1 | 49 | 49 | 2 | 67 | 67 | ||||||||||||||||||||||||||||
Totals | 2 | $ | 276 | $ | 276 | 6 | $ | 385 | $ | 385 | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | $ | - | 1 | $ | 439 | $ | 439 | ||||||||||||||||||||||||
Farmland | 1 | 1,089 | 1,089 | 1 | 1,089 | 1,089 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 6 | 1,120 | 1,099 | 9 | 2,115 | 2,094 | ||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Land | 1 | 63 | 63 | 3 | 8,433 | 7,063 | ||||||||||||||||||||||||||||
Totals | 8 | $ | 2,272 | $ | 2,251 | 14 | $ | 12,076 | $ | 10,685 | ||||||||||||||||||||||||
The following tables present loans by class modified as troubled debt restructurings, for which there was a payment default within twelve months following the modification: | ||||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
That Subsequently Defaulted | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | 1 | $ | 97 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | - | 3 | 843 | ||||||||||||||||||||||||||||||
Agriculture | 1 | 18 | 1 | 18 | ||||||||||||||||||||||||||||||
Totals | 1 | $ | 18 | 5 | $ | 958 | ||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
That Subsequently Defaulted | ||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | 3 | $ | 254 | ||||||||||||||||||||||||||||
Totals | - | $ | - | 3 | $ | 254 | ||||||||||||||||||||||||||||
The Bank is actively working with the borrowers to resolve their delinquencies. | ||||||||||||||||||||||||||||||||||
Credit Quality | ||||||||||||||||||||||||||||||||||
The following tables stratify the loan portfolio by the Company’s internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio: | ||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | ||||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | ||||||||||||||||||||||||||||||
September 30, 2013 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | ||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 25,782 | $ | 25,198 | $ | - | $ | 584 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Residential 1 to 4 family | 57,016 | 56,080 | 4 | 932 | - | - | - | - | 452 | 361 | ||||||||||||||||||||||||
Home equity lines of credit | 32,388 | 32,230 | - | 158 | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 442,322 | 414,892 | 3,710 | 23,720 | - | - | - | - | 964 | 226 | ||||||||||||||||||||||||
Farmland | 45,573 | 44,388 | 980 | 205 | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 103,540 | 93,743 | 820 | 7,991 | 986 | 61 | 35 | - | 3,224 | 1,430 | ||||||||||||||||||||||||
Agriculture | 28,523 | 26,947 | 280 | 1,296 | - | - | - | - | 811 | - | ||||||||||||||||||||||||
Other | 44 | 44 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 4,619 | 4,619 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Single family residential - Spec. | 1,114 | 1,114 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Multi-family | 747 | 747 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 6,694 | 6,694 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Land | 25,042 | 15,583 | 131 | 9,328 | - | - | - | - | 7,194 | 866 | ||||||||||||||||||||||||
Installment loans to individuals | 3,495 | 3,397 | - | 98 | - | - | - | - | 27 | - | ||||||||||||||||||||||||
All other loans (including overdrafts) | 255 | 255 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Totals | $ | 777,154 | $ | 725,931 | $ | 5,925 | $ | 44,312 | $ | 986 | $ | 61 | $ | 35 | $ | - | $ | 12,672 | $ | 2,883 | ||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | ||||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | ||||||||||||||||||||||||||||||
December 31, 2012 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | ||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 21,467 | $ | 20,869 | $ | - | $ | 598 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Residential 1 to 4 family | 41,444 | 40,234 | 6 | 1,204 | - | 199 | - | - | 835 | - | ||||||||||||||||||||||||
Home equity lines of credit | 31,863 | 30,808 | - | 1,055 | - | - | 47 | - | 58 | - | ||||||||||||||||||||||||
Commercial | 372,592 | 332,968 | 14,235 | 25,389 | - | - | - | - | 928 | - | ||||||||||||||||||||||||
Farmland | 25,642 | 20,492 | 3,260 | 1,890 | - | - | - | - | 1,077 | - | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 125,340 | 114,126 | 2,245 | 8,969 | - | 446 | 104 | 15 | 4,657 | 17 | ||||||||||||||||||||||||
Agriculture | 21,663 | 19,771 | 106 | 1,786 | - | - | - | - | 907 | - | ||||||||||||||||||||||||
Other | 61 | 61 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 8,074 | 8,074 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Single family residential - Spec. | 535 | 535 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Multi-family | 778 | 778 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 10,329 | 8,469 | - | 1,860 | - | - | - | - | 1,380 | - | ||||||||||||||||||||||||
Land | 24,664 | 12,461 | 4,124 | 8,079 | - | 50 | - | - | 7,182 | - | ||||||||||||||||||||||||
Installment loans to individuals | 4,895 | 4,365 | 230 | 300 | - | - | - | - | 285 | - | ||||||||||||||||||||||||
All other loans (including overdrafts) | 261 | 261 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Totals | $ | 689,608 | $ | 614,272 | $ | 24,206 | $ | 51,130 | $ | - | $ | 695 | $ | 151 | $ | 15 | $ | 17,309 | $ | 17 | ||||||||||||||
Allowance_for_Loan_Losses_ALLL
Allowance for Loan Losses ("ALLL") | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Allowance for Loan Losses ("ALLL") | ' | ||||||||||||||||||||||
Allowance for Loan Losses ("ALLL") | ' | ||||||||||||||||||||||
Note 5. Allowance for Loan Losses (“ALLL”) | |||||||||||||||||||||||
The following tables summarize the activity in the allowance attributed to various segments in the loan portfolio: | |||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Balance, June 30, 2013 | $ | 6,509 | $ | 6,618 | $ | 198 | $ | 4,465 | $ | 108 | $ | 36 | $ | 17,934 | |||||||||
Charge-offs | (41 | ) | (736 | ) | - | - | (207 | ) | - | (984 | ) | ||||||||||||
Recoveries | 19 | 475 | 1 | 11 | 12 | - | 518 | ||||||||||||||||
Provisions for loan losses | (180 | ) | (207 | ) | 44 | 170 | 174 | (1 | ) | - | |||||||||||||
Balance, September 30, 2013 | $ | 6,307 | $ | 6,150 | $ | 243 | $ | 4,646 | $ | 87 | $ | 35 | $ | 17,468 | |||||||||
Balance, June 30, 2012 | $ | 6,897 | $ | 6,261 | $ | 381 | $ | 4,483 | $ | 91 | $ | 36 | $ | 18,149 | |||||||||
Charge-offs | (106 | ) | (1,511 | ) | (92 | ) | - | (9 | ) | - | (1,718 | ) | |||||||||||
Recoveries | 12 | 246 | 1 | 5 | 5 | 1 | 270 | ||||||||||||||||
Provisions for loan losses | 1,184 | 75 | 268 | (225 | ) | (15 | ) | (1 | ) | 1,286 | |||||||||||||
Balance, September 30, 2012 | $ | 7,987 | $ | 5,071 | $ | 558 | $ | 4,263 | $ | 72 | $ | 36 | $ | 17,987 | |||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Balance, December 31, 2012 | $ | 6,879 | $ | 6,154 | $ | 313 | $ | 4,670 | $ | 64 | $ | 38 | $ | 18,118 | |||||||||
Charge-offs | (131 | ) | (1,137 | ) | (169 | ) | (34 | ) | (380 | ) | - | (1,851 | ) | ||||||||||
Recoveries | 143 | 947 | 2 | 45 | 64 | - | 1,201 | ||||||||||||||||
Provisions for loan losses | (584 | ) | 186 | 97 | (35 | ) | 339 | (3 | ) | - | |||||||||||||
Balance, September 30, 2013 | $ | 6,307 | $ | 6,150 | $ | 243 | $ | 4,646 | $ | 87 | $ | 35 | $ | 17,468 | |||||||||
Balance, December 31, 2011 | $ | 9,645 | $ | 6,549 | $ | 488 | $ | 2,416 | $ | 175 | $ | 41 | $ | 19,314 | |||||||||
Charge-offs | (2,471 | ) | (4,272 | ) | (668 | ) | (2,168 | ) | (29 | ) | (137 | ) | (9,745 | ) | |||||||||
Recoveries | 74 | 623 | 1 | 18 | 18 | 3 | 737 | ||||||||||||||||
Provisions for loan losses (1) | 739 | 2,171 | 737 | 3,997 | (92 | ) | 129 | 7,681 | |||||||||||||||
Balance, September 30, 2012 | $ | 7,987 | $ | 5,071 | $ | 558 | $ | 4,263 | $ | 72 | $ | 36 | $ | 17,987 | |||||||||
(1) The provision for loan losses includes the transfer of $3.9 million from C&I to Land related to the re-characterization of a loan as part of a TDR in the second quarter of 2012, as the restructured loan became collateral dependent on a parcel of land. | |||||||||||||||||||||||
The following tables summarize comparative metrics about the allowance attributed to various segments of the loan portfolio: | |||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 108 | $ | 2,853 | $ | - | $ | 3,854 | $ | 10 | $ | - | $ | 6,825 | |||||||||
General portfolio allocation | $ | 6,199 | $ | 3,297 | $ | 243 | $ | 792 | $ | 77 | $ | 35 | $ | 10,643 | |||||||||
Loans individually evaluated for impairment | $ | 2,003 | $ | 5,465 | $ | - | $ | 8,060 | $ | 27 | $ | - | $ | 15,555 | |||||||||
Loans collectively evaluated for impairment | $ | 601,078 | $ | 126,642 | $ | 13,174 | $ | 16,982 | $ | 3,468 | $ | 255 | $ | 761,599 | |||||||||
General reserves to total loans collectively evaluated for impairment | 1.03% | 2.60% | 1.84% | 4.66% | 2.22% | 13.73% | 1.40% | ||||||||||||||||
Total gross loans | $ | 603,081 | $ | 132,107 | $ | 13,174 | $ | 25,042 | $ | 3,495 | $ | 255 | $ | 777,154 | |||||||||
Total allowance to gross loans | 1.05% | 4.66% | 1.84% | 18.55% | 2.49% | 13.73% | 2.25% | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 25 | $ | 2,185 | $ | - | $ | 3,829 | $ | 22 | $ | - | $ | 6,061 | |||||||||
General portfolio allocation | $ | 6,854 | $ | 3,969 | $ | 313 | $ | 841 | $ | 42 | $ | 38 | $ | 12,057 | |||||||||
Loans individually evaluated for impairment | $ | 2,898 | $ | 5,596 | $ | 1,380 | $ | 7,182 | $ | 285 | $ | - | $ | 17,341 | |||||||||
Loans collectively evaluated for impairment | $ | 490,110 | $ | 141,468 | $ | 18,336 | $ | 17,482 | $ | 4,610 | $ | 261 | $ | 672,267 | |||||||||
General reserves to total loans collectively evaluated for impairment | 1.40% | 2.81% | 1.71% | 4.81% | 0.91% | 14.56% | 1.79% | ||||||||||||||||
Total gross loans | $ | 493,008 | $ | 147,064 | $ | 19,716 | $ | 24,664 | $ | 4,895 | $ | 261 | $ | 689,608 | |||||||||
Total allowance to gross loans | 1.40% | 4.18% | 1.59% | 18.93% | 1.31% | 14.56% | 2.63% | ||||||||||||||||
Deferred_Tax_Assets_and_Income
Deferred Tax Assets and Income Taxes | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Deferred Tax Assets and Income Taxes | ' | |||||||||||||||||||||
Deferred Tax Assets and Income Taxes | ' | |||||||||||||||||||||
Note 6. Deferred Tax Assets and Income Taxes | ||||||||||||||||||||||
The table below summarizes the Company’s net deferred tax asset: | ||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||
Provision for loan losses | $ | 8,669 | $ | 14,348 | ||||||||||||||||||
Forgone interest on non-accrual loans | 855 | 884 | ||||||||||||||||||||
Fixed assets | 459 | 405 | ||||||||||||||||||||
Accruals | 929 | 792 | ||||||||||||||||||||
Alternative minimum tax credit | 2,855 | 2,153 | ||||||||||||||||||||
Deferred income | 2,129 | 1,838 | ||||||||||||||||||||
Deferred compensation | 1,602 | 1,477 | ||||||||||||||||||||
Net operating loss carryforward | 6 | 907 | ||||||||||||||||||||
Investment securities valuation | 2,037 | - | ||||||||||||||||||||
Other than temporary impairment | - | 45 | ||||||||||||||||||||
Realized built-in loss subject to § 382 | 2,433 | 3,234 | ||||||||||||||||||||
Charitable contribution | - | 61 | ||||||||||||||||||||
State deferred tax | 781 | 59 | ||||||||||||||||||||
Total deferred tax assets | 22,755 | 26,203 | ||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||
Fair value adjustment for purchased assets | 362 | 455 | ||||||||||||||||||||
Investment securities valuation | - | 2,745 | ||||||||||||||||||||
Deferred costs, prepaids and FHLB advances | 1,032 | 1,070 | ||||||||||||||||||||
Total deferred tax liabilities | 1,394 | 4,270 | ||||||||||||||||||||
Net deferred tax assets | $ | 21,361 | $ | 21,933 | ||||||||||||||||||
Deferred Tax Assets Valuation Allowance | ||||||||||||||||||||||
U.S. GAAP requires that companies assess whether a valuation allowance should be established against deferred tax assets based on the consideration of all available evidence using a “more likely than not” standard. In making such judgments, significant weight is given to evidence, both positive and negative, that can be objectively verified. U.S. GAAP provides that a cumulative loss in recent years is significant negative evidence in considering whether deferred tax assets are realizable, and also limits projections of future taxable income to that which can be estimated over a reasonable amount of time. | ||||||||||||||||||||||
The pre-tax losses the Company reported in 2010 and 2009 resulted in a three year cumulative loss position, which provided significant negative evidence about the Company’s ability to realize a portion of its deferred tax assets as of December 31, 2011 and 2010. Due to the three year cumulative pre-tax loss position as of December 31, 2010, management believed that it was no longer more likely than not that the Company would generate enough future taxable income over the projection period in order for all of its deferred tax assets to be realized. As a result of this negative evidence, the Company recorded a partial valuation allowance of approximately $7.1 million for its deferred tax assets in 2010 through a charge to income tax expense. The Company’s determination of the valuation allowance for a portion of its deferred tax assets was based on a determination that the recovery of the entire deferred tax asset was no longer more likely than not due to: (1) an analysis of cumulative pre-tax losses over a three year horizon, through December 31, 2010; (2) a projection of future taxable income over a period of time the Company believed to be reasonably estimable (“the projection period”); and (3) a detailed analysis to determine the amount of the deferred tax asset expected to be realized over the projection period of five years. | ||||||||||||||||||||||
The ultimate realization of the Company’s deferred tax assets is dependent on the generation of future taxable income during the periods in which those temporary differences reverse. The deferred tax assets for which there is no valuation allowance relate to amounts that are expected to be realized through subsequent reversals of existing taxable temporary differences over the projection period. The accounting for deferred taxes is based on an estimate of future results. Differences between anticipated and actual outcomes of these future tax consequences could have an impact on the Company’s consolidated results of operations or financial position. | ||||||||||||||||||||||
The Company’s return to profitability in 2011 and continued profits in 2012 substantially eliminated the three year cumulative loss position. In addition, declines in the level of deferred tax assets and changes in their composition, along with projections of profitability for the foreseeable future and an improvement in the credit quality of the Company’s loan portfolio have combined to improve the outlook for the recovery of the valuation allowance provided for in 2010. As a result of this improved outlook, the Company reduced the level of valuation allowance in the fourth quarter of 2011 by $1.5 million and then reversed the remaining $5.6 million valuation allowance in 2012, of which amount $4.1 million was reversed in the third quarter of 2012 and a total of $1.5 million was reduced in the first half of 2012, based on the Company’s determination that it was more likely than not that its entire deferred tax asset position would be realized. | ||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||
The Company is subject to income taxation by both federal and state taxing authorities. Income tax returns for the years ended December 31, 2011, 2010, 2009 and 2008 are open to audit by federal and state taxing authorities. The Company does not have any uncertain income tax positions and has not accrued for any interest or penalties as of September 30, 2013 and December 31, 2012. The following table provides a summary for the current and deferred amounts of the Company’s income tax expense / (benefit): | ||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Current: | ||||||||||||||||||||||
Federal | $ | 495 | $ | 936 | $ | 306 | $ | 2,489 | ||||||||||||||
State | (249 | ) | 485 | 29 | 957 | |||||||||||||||||
Total current (benefit) / expense | 246 | 1,421 | 335 | 3,446 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||
Federal | 630 | (141 | ) | 3,777 | (1,061 | ) | ||||||||||||||||
State | 717 | (115 | ) | 1,577 | (288 | ) | ||||||||||||||||
Total deferred expense / (benefit) | 1,347 | (256 | ) | 5,354 | (1,349 | ) | ||||||||||||||||
Deferred Tax Valuation Allowance: | ||||||||||||||||||||||
Federal | - | (2,552 | ) | - | (3,662 | ) | ||||||||||||||||
State | - | (1,553 | ) | - | (1,943 | ) | ||||||||||||||||
Total deferred tax valuation allowance change | - | (4,105 | ) | - | (5,605 | ) | ||||||||||||||||
Total income tax expense / (benefit) | $ | 1,593 | $ | (2,940 | ) | $ | 5,689 | $ | (3,508 | ) | ||||||||||||
The following table reconciles the statutory federal income tax expense / (benefit) and rate to the Company’s effective income tax expense / (benefit) and rate: | ||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(dollar amounts in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Tax expense at federal statutory tax rate | $ | 1,525 | 35.00% | $ | 1,221 | 35.00% | $ | 5,214 | 35.00% | $ | 2,241 | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 304 | 7.00% | 241 | 6.90% | 1,044 | 7.00% | 435 | 6.8 | % | |||||||||||||
Change in deferred tax asset valuation allowance | - | 0.00% | (4,105 | ) | -117.70% | - | 0.00% | (5,605 | ) | -87.6 | % | |||||||||||
Bank owned life insurance | (38 | ) | -0.90% | (56 | ) | -1.60% | (115 | ) | -0.80% | (109 | ) | -1.7 | % | |||||||||
Tax exempt income, net of interest expense | (176 | ) | -4.00% | (217 | ) | -6.20% | (402 | ) | -2.70% | (415 | ) | -6.5 | % | |||||||||
Other, net | (22 | ) | -0.50% | (24 | ) | -0.70% | (52 | ) | -0.30% | (55 | ) | -0.8 | % | |||||||||
Total income tax expense / (benefit) | $ | 1,593 | 36.60% | $ | (2,940 | ) | -84.30% | $ | 5,689 | 38.20% | $ | (3,508 | ) | -54.8 | % | |||||||
Other_Real_Estate_Owned_OREO
Other Real Estate Owned ("OREO") | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Note 7. Other Real Estate Owned (“OREO”) | |||||||||||||||||
The Company had no OREO activity for the quarter ended September 30, 2013. The following table provides a summary of the third quarter 2012 change in the balance of OREO: | |||||||||||||||||
Balance | Balance | ||||||||||||||||
June 30, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2012 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | 431 | $ | - | $ | - | $ | (31 | ) | $ | 400 | ||||||
Commercial | 215 | - | - | - | 215 | ||||||||||||
Construction | |||||||||||||||||
Single family residential - Spec. | 397 | - | (397 | ) | - | - | |||||||||||
Land | 32 | - | - | (32 | ) | - | |||||||||||
Totals | $ | 1,075 | $ | - | $ | (397 | ) | $ | (63 | ) | $ | 615 | |||||
The following tables provide a summary of the year to date change in the balance of OREO: | |||||||||||||||||
Balance | Balance | ||||||||||||||||
December 31, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2013 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Commercial | $ | - | $ | 1,374 | $ | (1,374 | ) | $ | - | $ | - | ||||||
Totals | $ | - | $ | 1,374 | $ | (1,374 | ) | $ | - | $ | - | ||||||
Balance | Balance | ||||||||||||||||
December 31, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2011 | Additions | Disposals | Writedowns | 2012 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 607 | $ | (176 | ) | $ | (31 | ) | $ | 400 | |||||
Commercial | 215 | - | - | - | 215 | ||||||||||||
Construction | |||||||||||||||||
Single family residential - Spec. | 423 | - | (397 | ) | (26 | ) | - | ||||||||||
Tract | 100 | - | (100 | ) | - | - | |||||||||||
Land | 179 | 162 | (300 | ) | (41 | ) | - | ||||||||||
Totals | $ | 917 | $ | 769 | $ | (973 | ) | $ | (98 | ) | $ | 615 | |||||
The Company did not realize any gains or losses related to disposal of OREO during the three or nine months ended September 30, 2013. | |||||||||||||||||
Deposits
Deposits | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deposits. | ' | |||||||
Deposits | ' | |||||||
Note 8. Deposits | ||||||||
The following table provides a summary of deposits by product type: | ||||||||
September 30, | December 31, | |||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||
Non-interest bearing deposits | $ | 285,428 | $ | 273,242 | ||||
Interest bearing deposits: | ||||||||
NOW accounts | 83,961 | 76,728 | ||||||
Money market deposit accounts | 324,990 | 293,525 | ||||||
Other savings deposits | 43,089 | 41,021 | ||||||
Time certificates of $100 or more | 145,315 | 97,105 | ||||||
Other time deposits | 74,169 | 89,249 | ||||||
Total deposits | $ | 956,952 | $ | 870,870 | ||||
Capital
Capital | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Capital | ' | ||||||||||||
Capital | ' | ||||||||||||
Note 9. Capital | |||||||||||||
The following table sets forth the Company’s and the Bank’s actual regulatory ratios and the regulatory standard: | |||||||||||||
Regulatory | September 30, 2013 | December 31, 2012 | |||||||||||
Standard | |||||||||||||
Well | Heritage Oaks | Heritage Oaks | |||||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||||
Leverage ratio | 5.00% | 10.58% | 10.05% | 12.32% | 11.93% | ||||||||
Tier I capital to risk weighted assets | 6.00% | 13.27% | 12.59% | 15.55% | 15.02% | ||||||||
Total risk based capital to risk weighted assets | 10.00% | 14.53% | 13.85% | 16.81% | 16.28% | ||||||||
ShareBased_Compensation_Plans
Share-Based Compensation Plans | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Share-Based Compensation Plans | ' | |||||||||||||||
Share-Based Compensation Plans | ' | |||||||||||||||
Note 10. Share-Based Compensation Plans | ||||||||||||||||
As of September 30, 2013, the Company had two share-based employee compensation plans, which are more fully described in Note 14. Share-Based Compensation Plans, of the consolidated financial statements in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2012. These plans include the “1997 Stock Option Plan” and the “2005 Equity Based Compensation Plan.” | ||||||||||||||||
The following table provides a summary of the expenses the Company has recognized related to share-based compensation for the periods indicated below: | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Share-based compensation expense: | ||||||||||||||||
Stock option expense | $ | 68 | $ | 39 | $ | 183 | $ | 92 | ||||||||
Restricted stock expense | 80 | 67 | 208 | 142 | ||||||||||||
Total expense | $ | 148 | $ | 106 | $ | 391 | $ | 234 | ||||||||
Unrecognized compensation expense: | ||||||||||||||||
Stock option expense | $ | 762 | $ | 620 | ||||||||||||
Restricted stock expense | 775 | 624 | ||||||||||||||
Total unrecognized expense | $ | 1,537 | $ | 1,244 | ||||||||||||
At September 30, 2013, there was a total of $0.8 million of unrecognized compensation expense related to non-vested stock options. That expense is expected to be recognized over a weighted-average period of 3.3 years. | ||||||||||||||||
The Company periodically grants restricted share awards to employees and directors. These restricted shares generally vest over a period of one to five years depending on the terms of the grant. Recipients of restricted shares have the right to vote all shares subject to such grant, and receive all dividends with respect to such shares, whether or not the shares have vested. Recipients do not pay any cash consideration for the shares. The total unrecognized compensation expense related to restricted share awards at September 30, 2013 was $0.8 million. That expense is expected to be recognized over the next 2.9 years. | ||||||||||||||||
The following table provides a summary of activity related to options granted, exercised, and forfeited: | ||||||||||||||||
Options Outstanding | Options | |||||||||||||||
Number | Weighted Average | Available for | ||||||||||||||
of Shares | Exercise Price | Grant | ||||||||||||||
Balance, December 31, 2012 | 523,129 | $ | 6.11 | 1,715,616 | ||||||||||||
Granted | 167,415 | 6.3 | ||||||||||||||
Forfeited | (65,356 | ) | 5.81 | |||||||||||||
Expired | (4,275 | ) | 4.62 | |||||||||||||
Exercised | (20,339 | ) | 3.9 | |||||||||||||
Balance, September 30, 2013 | 600,574 | $ | 6.28 | 1,565,670 | ||||||||||||
The following table provides a summary of activity related to restricted stock granted, vested and forfeited: | ||||||||||||||||
Number of | Average Grant | |||||||||||||||
Shares | Date Fair Value | |||||||||||||||
Balance December 31, 2012 | 196,850 | $ | 4.27 | |||||||||||||
Granted | 72,786 | 6.26 | ||||||||||||||
Vested | (57,508 | ) | 4.4 | |||||||||||||
Forfeited | (8,892 | ) | 5.17 | |||||||||||||
Balance September 30, 2013 | 203,236 | $ | 4.91 | |||||||||||||
The aggregate intrinsic value in the following table represents the total pre-tax intrinsic value, which is subject to change based on the fair market value of the Company’s stock. The aggregate intrinsic value of options exercised was $42 thousand for the year to date period ended September 30, 2013. The following table provides a summary of the aggregate intrinsic value of options vested and expected to vest and exercisable: | ||||||||||||||||
Weighted Average | ||||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||||
Average | Contractual Life | Intrinsic | ||||||||||||||
Shares | Exercise Price | (Years) | Value | |||||||||||||
Vested or expected to vest | 572,450 | $ | 6.29 | 7.46 | $ | 720,971 | ||||||||||
Exercisable at September 30, 2013 | 304,409 | $ | 6.62 | 5.84 | $ | 572,600 | ||||||||||
The following table presents the assumptions used in the calculation of the weighted average fair value of options granted: | ||||||||||||||||
For the Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Expected volatility | 55.32% | 52.26% | ||||||||||||||
Expected term (years) | 6 | 7 | ||||||||||||||
Dividend yield | 0.00% | 0.00% | ||||||||||||||
Risk free rate | 1.55% | 1.11% | ||||||||||||||
Weighted-average grant date fair value | $ | 3.31 | $ | 2.87 | ||||||||||||
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
Note 11. Preferred Stock | |
Under its Amended Articles of Incorporation, the Company is authorized to issue up to 5,000,000 shares of preferred stock, in one or more series, having such voting powers, designations, preferences, rights, qualifications, limitations and restrictions as determined by the Board of Directors. | |
U.S Treasury’s Capital Purchase Program (“CPP”) | |
On March 20, 2009, the Company issued 21,000 shares of Series A Senior Preferred Stock to the United States Department of Treasury (“U.S. Treasury”) under the terms of the CPP for $21.0 million with a liquidation preference of $1,000 per share. The preferred stock carries a coupon of 5% for five years and 9% thereafter. Senior preferred stock issued to the U.S. Treasury is non-voting, cumulative, and perpetual and may be redeemed at 100% of their liquidation preference plus accrued and unpaid dividends following three years from the date of issue. In addition, the Company issued a warrant to the U.S. Treasury to purchase shares of the Company’s common stock in an amount equal to 15% of the preferred equity issuance or approximately $3.2 million (611,650 shares). The warrant was exercisable immediately at a price of $5.15 per share, would have expired after a period of 10 years from issuance and is transferable by the U.S. Treasury. The warrant would have been dilutive to earnings per common share during reporting periods in which the market price of the Company’s common stock was above the warrant’s exercise price. | |
In July 2013, the Company received approval to dividend $25.0 million from the Bank to the Company, to facilitate the repurchase of the 21,000 shares of Series A Preferred Stock and the related warrant to purchase 611,650 shares of the Company’s common stock. The Company completed the repurchase of the Series A Preferred Stock at par, including accrued but unpaid dividends, for $21.2 million on July 17, 2013. On July 29, 2013, the Company made a bid to repurchase the warrant to purchase 611,650 shares of the Company’s common stock for $1.6 million. On July 30, 2013, the United States Department of Treasury accepted the Company’s bid. The repurchase of the warrant occurred on August 7, 2013. | |
Series C Convertible Perpetual Preferred Stock | |
On March 12, 2010, the Company sold 1,189,538 shares of its Series C Convertible Perpetual Preferred Stock (“Series C Preferred Stock”) for $3.6 million as part of the overall $60 million private placement of securities completed at that time. Series C Preferred Stock is a non-voting class of stock substantially similar in priority to the common stock of the Company, except for a liquidation preference over the Company’s common stock. The Series C Preferred Stock will convert to shares of common stock on a one share for one share basis if the original holder of such shares transfers them to an unaffiliated third party or otherwise makes a “Permissible Transfer”, as defined in the terms of the Series C Preferred Stock. The Series C Preferred Stock will not be redeemable by either the Company or by the holders. Holders of the Series C Preferred Stock do not have any voting rights, including the right to elect any directors, other than the customary limited voting rights with respect to matters significantly and adversely affecting the rights and privileges of the Series C Preferred Stock. There is no stated dividend rate for shares of Series C Preferred Stock. However, in the event that a common stock dividend is declared, holders of Series C Preferred Stock are entitled to a per share dividend equivalent to that declared for each common share into which Series C Preferred Stock is then convertible. | |
The fair market value of the Company’s common stock was higher than the conversion price of $3.25 per share of the Series C Preferred Stock on the date the Company made a firm commitment to issue the Series C Preferred Stock. Therefore, the Series C Preferred Stock has a contingent beneficial conversion feature associated with it. However, since the conversion of the Series C Preferred Stock remains contingent upon the holder’s transfer of the securities to an unaffiliated third party with no specified date for its conversion to common stock, the Company will record the contingent beneficial conversion feature as an initial discount on Series C Preferred Stock and additional paid in capital, with a concurrent immediate accretion of the established discount and corresponding charge to retained earnings on the date the Series C Preferred Stock converts to common stock. The amount of the contingent beneficial conversion feature is approximately $0.2 million and will be recorded as described upon the original holder’s transfer of Series C Preferred Stock through a Permissible Transfer. Such transfer has not occurred as of September 30, 2013. | |
Two investors in the Company’s March 2010 private placement have Board observation rights, while one of the two investors also has Board nomination rights. | |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Note 12. Earnings Per Share | ||||||||||||||||||
Basic earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the reporting period. Diluted earnings per common share are computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding over the reporting period, adjusted to include the effect of potentially dilutive common shares. Potentially dilutive common shares are calculated using the treasury stock method and include incremental shares issuable upon exercise of outstanding stock options, other share-based compensation awards and any other security in which its conversion / exercise may result in the issuance of common stock, such as the warrant the Company issued to the U.S. Treasury during 2009, which was retired unexercised in August 2013, or the Series C Perpetual Preferred Stock the Company issued during 2010. The computation of diluted earnings per common share excludes the impacts of the assumed exercise or issuance of securities that would have an anti-dilutive effect, which can occur when the Company reports a net loss or when the market price for the Company’s stock falls below the exercise price of equity awards issued by the Company. For the three months ended September 30, 2013 and 2012, common stock equivalents, primarily options, totaling approximately 418,000 shares and 299,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive. For the nine months ended September 30, 2013 and 2012, common stock equivalents, primarily options, totaling approximately 358,000 shares and 278,000 shares, respectively, were excluded from the calculation of diluted earnings per share, as their impact would be anti-dilutive. | ||||||||||||||||||
The following tables set forth the number of shares used in the calculation of both basic and diluted earnings per common share: | ||||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Net | |||||||||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||||||||
Net income | $ | 2,761 | $ | 6,428 | ||||||||||||||
Dividends and accretion on preferred stock | (181 | ) | (357 | ) | ||||||||||||||
Net income available to common shareholders | $ | 2,580 | $ | 6,071 | ||||||||||||||
Weighted average shares outstanding | 25,172,929 | 25,089,325 | ||||||||||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.24 | ||||||||||||||
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock | 1,376,639 | 1,341,392 | ||||||||||||||||
Weighted average diluted shares outstanding | 26,549,568 | 26,430,717 | ||||||||||||||||
Diluted earnings per common share | $ | 0.1 | $ | 0.23 | ||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Net | |||||||||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||||||||
Net income | $ | 9,207 | $ | 9,910 | ||||||||||||||
Dividends and accretion on preferred stock | (898 | ) | (1,113 | ) | ||||||||||||||
Net applicable to common shareholders | $ | 8,309 | $ | 8,797 | ||||||||||||||
Weighted average shares outstanding | 25,138,410 | 25,074,405 | ||||||||||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.35 | ||||||||||||||
Dilutive effect of share-based compensation awards, common stock warrant, and convertible perpetual preferred stock | 1,401,694 | 1,280,238 | ||||||||||||||||
Weighted average diluted shares outstanding | 26,540,104 | 26,354,643 | ||||||||||||||||
Diluted earnings per common share | $ | 0.31 | $ | 0.33 | ||||||||||||||
Regulatory_Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2013 | |
Regulatory Matters | ' |
Regulatory Matters | ' |
Note 13. Regulatory Matters | |
Memorandums of Understanding | |
Since April 2012, the Bank has operated under a Memorandum of Understanding (“MOU”) with the FDIC and California Department of Financial Institutions (“DFI”), which replaced the Consent Order entered into in 2010. In the MOU, the Company committed to, among other things; continue to make progress in improving credit quality and processes as well as to continue to comply with the 10% Leverage Ratio as originally established by the Order. | |
Effective April 24, 2013, the FDIC and DFI terminated their MOU with the Bank, signifying full resolution of all open matters raised as part of their examination in 2010 and recognition of the improved financial health of the Bank. As such the Bank will no longer be subject to the MOU’s 10% Leverage Ratio requirement, as well as the other provisions of the MOU. | |
Since July 2012, the Company has operated under a MOU with the FRB, which replaced the Written Agreement entered into in 2010. In the MOU the Company committed among other things, to continue to seek FRB approval prior to: paying any dividends on its common and preferred stock; paying interest, principal or other sums on subordinated debt or trust preferred securities; or incurring, increasing, or guaranteeing any debt. On September 4, 2013, the Federal Reserve Bank of San Francisco terminated the MOU with the Bank. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
Note 14. Subsequent Events | |
On October 21, 2013, the Company signed a definitive agreement and plan of merger (the “Merger Agreement”) whereby the Company will acquire Mission Community Bancorp and merge their respective banks, Heritage Oaks Bank and Mission Community Bank. Under the terms of the Merger Agreement, holders of Mission Community Bancorp’s common stock, warrants and options will receive aggregate cash consideration of $8.0 million and aggregate stock consideration of 7,541,353 shares of the Company’s common stock. The total value of the merger consideration is $56.4 million, based on a $6.42 closing price of the Company’s common stock on October 18, 2013. The transaction is currently expected to close in the first quarter of 2014, subject to customary conditions, including the approval of bank regulatory authorities and the shareholders of both companies. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies | ' |
Recent Accounting Guidance Adopted | ' |
Recent Accounting Guidance Adopted | |
On July 27, 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This update, like ASU 2011-08 which the Company adopted in 2011, allows companies the option to first evaluate qualitative factors to determine if events or circumstances exist that indicate that it is more likely than not that an indefinite-lived intangible asset is impaired. If based on this assessment, a company concludes that there are no indicators that suggest an indefinitely-lived asset is more likely than not of having been impaired, then no further quantitative analysis is required. The amendments are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance. The Company currently does not have any indefinite-lived intangible assets, other than goodwill, therefore adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
On October 1, 2012, the FASB issued ASU No. 2012-04, Technical Corrections and Improvements. The amendments in ASU 2012-04 cover a wide range of Topics in the Codification and address technical corrections and improvements and conforming amendments related to fair value measurements. For public entities, the amendments that are subject to the transition guidance are effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
On February 15, 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The update requires companies to present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts of reclassifications from each component of accumulated other comprehensive income based on its source and the income statement lines affected by the reclassification. For public entities, the amendments that are subject to the transition guidance are effective for fiscal periods beginning after December 15, 2012. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. | |
Recent Accounting Guidance Not Yet Effective | ' |
Recent Accounting Guidance Not Yet Effective | |
There has been no recently released accounting guidance that is directly applicable to the Company, which is not yet effective. | |
Fair_Value_of_Assets_and_Liabi1
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value of Assets and Liabilities | ' | |||||||||||||||||||
Summary of the financial instruments the Company measures at fair value on a recurring basis | ' | |||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | ||||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Fair Value | ||||||||||||||||
Assets | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 7,728 | $ | - | $ | 7,728 | ||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
Agency | - | 175,432 | - | 175,432 | ||||||||||||||||
Non-agency | - | 13,390 | - | 13,390 | ||||||||||||||||
Obligations of state and municipal securities | - | 44,060 | - | 44,060 | ||||||||||||||||
Asset backed securities | - | 26,569 | - | 26,569 | ||||||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 267,179 | $ | - | $ | 267,179 | ||||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | 7,567 | $ | - | $ | 7,567 | ||||||||||||
Mortgage backed securities: | ||||||||||||||||||||
Agency | - | 145,768 | - | 145,768 | ||||||||||||||||
Non-agency | - | 44,795 | - | 44,795 | ||||||||||||||||
Obligations of state and municipal securities | - | 68,968 | - | 68,968 | ||||||||||||||||
Asset backed securities | 20,584 | - | 20,584 | |||||||||||||||||
Total assets measured on a recurring basis | $ | - | $ | 287,682 | $ | - | $ | 287,682 | ||||||||||||
Summary of the changes in balance sheet carrying values associated with recurring Level 3 financial instruments | ' | |||||||||||||||||||
Purchases, | ||||||||||||||||||||
Beginning | Gain / (Loss) | Issuances, and | Sales and | Transfers to / (from) | Ending | |||||||||||||||
(dollar amounts in thousands) | Balance | Included in OCI (1) | Settlements | Maturities | Level III | Balance | ||||||||||||||
For the three months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Obligations of state and municipal securities | $ | 262 | $ | - | $ | - | $ | - | $ | (262 | ) | $ | - | |||||||
Purchases, | ||||||||||||||||||||
Beginning | Gain / (Loss) | Issuances, and | Sales and | Transfers to / (from) | Ending | |||||||||||||||
(dollar amounts in thousands) | Balance | Included in OCI (1) | Settlements | Maturities | Level III | Balance | ||||||||||||||
For the nine months ended | ||||||||||||||||||||
September 30, 2012 | ||||||||||||||||||||
Obligations of state and municipal securities | $ | 259 | $ | 3 | $ | - | $ | - | $ | (262 | ) | $ | - | |||||||
Agency mortgage baked securities | $ | - | $ | (191 | ) | $ | 4,674 | $ | - | $ | (4,483 | ) | $ | - | ||||||
Non-agency mortgage backed securities | $ | 3,074 | $ | - | $ | - | $ | - | $ | (3,074 | ) | $ | - | |||||||
(1) Realized or unrealized gains from the changes in values of Level 3 financial instruments represent gains from changes in values of financial instruments only for the period(s) in which the instruments were classified as Level 3. | ||||||||||||||||||||
Summary of assets the Company measures at fair value on a non-recurring basis | ' | |||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Year to | |||||||||||||||||
Active Markets for | Observable | Unobservable | Date | |||||||||||||||||
(dollar amounts in thousands) | Identical Assets | Inputs | Inputs | Assets At | Total Losses/ | |||||||||||||||
September 30, 2013 | (Level 1) | (Level 2) | (Level 3) | Fair Value | (Recoveries) | |||||||||||||||
Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Residential 1 to 4 family | $ | - | $ | - | $ | 348 | $ | 348 | $ | - | ||||||||||
Commercial real estate | - | - | 521 | 521 | 88 | |||||||||||||||
Commercial and industrial | - | - | 76 | 76 | 959 | |||||||||||||||
Land | - | - | 3,023 | 3,023 | (8 | ) | ||||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | - | $ | 3,968 | $ | 3,968 | $ | 1,039 | ||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Impaired loans | ||||||||||||||||||||
Commercial and industrial | $ | - | $ | 820 | $ | 213 | $ | 1,033 | $ | 1,941 | ||||||||||
Agriculture | - | 72 | - | 72 | 28 | |||||||||||||||
Construction | - | 1,656 | - | 1,656 | 460 | |||||||||||||||
Land | - | - | 2,048 | 2,048 | 3,802 | |||||||||||||||
Total assets measured on a non-recurring basis | $ | - | $ | 2,548 | $ | 2,261 | $ | 4,809 | $ | 6,231 | ||||||||||
Summary of the estimated fair value of financial instruments | ' | |||||||||||||||||||
Fair Value Measurements Using | ||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||||||
(dollar amounts in thousands) | Carrying | Identical Assets | Inputs | Inputs | ||||||||||||||||
September 30, 2013 | Amount | (Level 1) | (Level 2) | (Level 3) | Fair Value | |||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 33,281 | $ | 33,281 | $ | - | $ | - | $ | 33,281 | ||||||||||
Investment securities available for sale | 267,179 | - | 267,179 | - | 267,179 | |||||||||||||||
Federal Home Loan Bank stock | 4,739 | - | - | - | N/A | |||||||||||||||
Loans receivable, net of deferred fees and costs | 775,700 | - | - | 779,769 | 779,769 | |||||||||||||||
Loans held for sale | 5,463 | - | 5,463 | - | 5,463 | |||||||||||||||
Accrued interest receivable | 3,629 | - | 1,194 | 2,435 | 3,629 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Non-interest bearing deposits | 285,428 | 285,428 | - | - | 285,428 | |||||||||||||||
Interest bearing deposits | 671,524 | - | 673,207 | - | 673,207 | |||||||||||||||
Federal Home Loan Bank advances | 57,500 | - | 55,803 | - | 55,803 | |||||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,062 | 7,062 | |||||||||||||||
Accrued interest payable | 177 | - | 177 | - | 177 | |||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 34,116 | $ | 34,116 | $ | - | $ | - | $ | 34,116 | ||||||||||
Investments and mortgage-backed securities | 287,682 | - | 287,682 | - | 287,682 | |||||||||||||||
Federal Home Loan Bank stock | 4,575 | - | - | - | N/A | |||||||||||||||
Loans receivable, net of deferred fees and costs | 688,671 | - | 2,548 | 701,144 | 703,692 | |||||||||||||||
Loans held for sale | 22,549 | - | 22,549 | - | 22,549 | |||||||||||||||
Accrued interest receivable | 3,915 | - | 1,497 | 2,418 | 3,915 | |||||||||||||||
Liabilities | ||||||||||||||||||||
Non interest-bearing deposits | 273,242 | 273,242 | - | - | 273,242 | |||||||||||||||
Interest-bearing deposits | 597,628 | - | 598,664 | - | 598,664 | |||||||||||||||
Federal Home Loan Bank advances | 66,500 | - | 67,059 | - | 67,059 | |||||||||||||||
Junior subordinated debentures | 8,248 | - | - | 7,078 | 7,078 | |||||||||||||||
Accrued interest payable | 192 | - | 192 | - | 192 | |||||||||||||||
Summary of off-balance sheet commitments | ' | |||||||||||||||||||
30-Sep-13 | December 31, 2012 | |||||||||||||||||||
Notional | Cost to Cede | Notional | Cost to Cede | |||||||||||||||||
(dollar amounts in thousands) | Amount | or Assume | Amount | or Assume | ||||||||||||||||
Off-balance sheet instruments, commitments to extend credit and standby letters of credit | $ | 170,047 | $ | 1,700 | $ | 178,432 | $ | 1,784 | ||||||||||||
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||
Schedule of amortized cost and fair values of the Company's investment securities, all of which are reported as available for sale | ' | ||||||||||||||||||||
(dollar amounts in thousands) | Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | |||||||||||||||||||
September 30, 2013 | Cost | Gains | Losses | Fair Value | |||||||||||||||||
Obligations of U.S. government agencies | $ | 7,738 | $ | 37 | $ | (47 | ) | $ | 7,728 | ||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 178,856 | 446 | (3,870 | ) | 175,432 | ||||||||||||||||
Non-agency | 13,266 | 168 | (44 | ) | 13,390 | ||||||||||||||||
State and municipal securities | 45,333 | 385 | (1,658 | ) | 44,060 | ||||||||||||||||
Asset backed securities | 26,936 | - | (367 | ) | 26,569 | ||||||||||||||||
Total | $ | 272,129 | $ | 1,036 | $ | (5,986 | ) | $ | 267,179 | ||||||||||||
December 31, 2012 | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 7,307 | $ | 262 | $ | (2 | ) | $ | 7,567 | ||||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 145,430 | 1,136 | (798 | ) | 145,768 | ||||||||||||||||
Non-agency | 43,402 | 1,578 | (185 | ) | 44,795 | ||||||||||||||||
State and municipal securities | 64,824 | 4,240 | (96 | ) | 68,968 | ||||||||||||||||
Asset backed securities | 20,049 | 568 | (33 | ) | 20,584 | ||||||||||||||||
Total | $ | 281,012 | $ | 7,784 | $ | (1,114 | ) | $ | 287,682 | ||||||||||||
Schedule of roll forward of the OTTI balances against the investment securities for both credit loss and all other factor components | ' | ||||||||||||||||||||
For the Three Months Ended September 30, 2013 | For the Three Months Ended September 30, 2012 | ||||||||||||||||||||
OTTI Related | OTTI Related | ||||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | ||||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | |||||||||||||||
Balance, beginning of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 283 | $ | 392 | |||||||||
Change in value attributable to other factors | - | - | - | - | (140 | ) | (140 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 143 | $ | 252 | |||||||||
For the Nine Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2012 | ||||||||||||||||||||
OTTI Related | OTTI Related | ||||||||||||||||||||
OTTI Related | to All Other | Total | OTTI Related | to All Other | Total | ||||||||||||||||
(dollars in thousands) | to Credit Loss | Factors | OTTI | to Credit Loss | Factors | OTTI | |||||||||||||||
Balance, beginning of the period | $ | 109 | $ | 170 | $ | 279 | $ | 109 | $ | 361 | $ | 470 | |||||||||
Less: losses related to OTTI securities sold | (109 | ) | (170 | ) | (279 | ) | - | - | - | ||||||||||||
Change in value attributable to other factors | - | - | - | - | (218 | ) | (218 | ) | |||||||||||||
Balance, end of the period | $ | - | $ | - | $ | - | $ | 109 | $ | 143 | $ | 252 | |||||||||
Summary of investment securities in an unrealized loss position | ' | ||||||||||||||||||||
Securities In A Loss Position For | |||||||||||||||||||||
(dollar amounts in thousands) | Less Than Twelve Months | Twelve Months or More | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||
September 30, 2013 | Value | Loss | Value | Loss | Value | Loss | |||||||||||||||
Obligations of U.S. government agencies | $ | 3,100 | $ | (46 | ) | $ | 41 | $ | (1 | ) | $ | 3,141 | $ | (47 | ) | ||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 111,209 | (3,566 | ) | 5,749 | (304 | ) | 116,958 | (3,870 | ) | ||||||||||||
Non-agency | 1,218 | (44 | ) | - | - | 1,218 | (44 | ) | |||||||||||||
State and municipal securities | 25,638 | (1,658 | ) | - | - | 25,638 | (1,658 | ) | |||||||||||||
Asset backed securities | 17,700 | (367 | ) | - | - | 17,700 | (367 | ) | |||||||||||||
Total | $ | 158,865 | $ | (5,681 | ) | $ | 5,790 | $ | (305 | ) | $ | 164,655 | $ | (5,986 | ) | ||||||
December 31, 2012 | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | - | $ | - | $ | 44 | $ | (2 | ) | $ | 44 | $ | (2 | ) | |||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 83,092 | (798 | ) | - | - | 83,092 | (798 | ) | |||||||||||||
Non-agency | 7,204 | (15 | ) | 719 | (170 | ) | 7,923 | (185 | ) | ||||||||||||
State and municipal securities | 9,813 | (96 | ) | - | - | 9,813 | (96 | ) | |||||||||||||
Asset backed securities | 9,828 | (33 | ) | - | - | 9,828 | (33 | ) | |||||||||||||
Total | $ | 109,937 | $ | (942 | ) | $ | 763 | $ | (172 | ) | $ | 110,700 | $ | (1,114 | ) | ||||||
Schedule of proceeds from the sales and calls of securities and the associated gains and losses | ' | ||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Proceeds | $ | 38,930 | $ | 41,899 | $ | 144,571 | $ | 95,789 | |||||||||||||
Gross gains | 970 | 448 | 5,349 | 2,160 | |||||||||||||||||
Gross losses | (626 | ) | (119 | ) | (1,414 | ) | (464 | ) | |||||||||||||
Schedule of amortized cost and fair value maturities of available for sale investment securities | ' | ||||||||||||||||||||
(dollar amounts in thousands) | |||||||||||||||||||||
September 30, 2013 | One Year Or | Over 1 Through | Over 5 Years | Over 10 Years | Total | ||||||||||||||||
Less | 5 Years | Through | |||||||||||||||||||
10 Years | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 100 | $ | 3,481 | $ | 1,729 | $ | 2,418 | $ | 7,728 | |||||||||||
Mortgage backed securities | |||||||||||||||||||||
U.S. government sponsored entities and agencies | 24,910 | 75,551 | 29,616 | 45,355 | 175,432 | ||||||||||||||||
Non-agency | 5,426 | 6,443 | 1,521 | - | 13,390 | ||||||||||||||||
State and municipal securities | 40 | 6,516 | 34,300 | 3,204 | 44,060 | ||||||||||||||||
Asset backed securities | - | - | 14,569 | 12,000 | 26,569 | ||||||||||||||||
Total available for sale securities | $ | 30,476 | $ | 91,991 | $ | 81,735 | $ | 62,977 | $ | 267,179 | |||||||||||
Amortized cost | $ | 30,658 | $ | 93,028 | $ | 83,805 | $ | 64,638 | $ | 272,129 | |||||||||||
Weighted average yield | 2.35% | 2.26% | 2.54% | 2.67% | 2.45% | ||||||||||||||||
Summary of earnings on both taxable and tax-exempt investment securities | ' | ||||||||||||||||||||
For The Three Months | For The Nine Months | ||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Taxable earnings on investment securities | |||||||||||||||||||||
Obligations of U.S. government agencies | $ | 33 | $ | 25 | $ | 86 | $ | 79 | |||||||||||||
Mortgage backed securities | 847 | 973 | 2,470 | 2,971 | |||||||||||||||||
State and municipal securities | - | 5 | 5 | 183 | |||||||||||||||||
Corporate debt securities | - | 181 | - | 504 | |||||||||||||||||
Asset backed securities | 113 | 72 | 350 | 146 | |||||||||||||||||
Non-taxable earnings on investment securities | |||||||||||||||||||||
State and municipal securities | 354 | 527 | 1,082 | 1,428 | |||||||||||||||||
Total | $ | 1,347 | $ | 1,783 | $ | 3,993 | $ | 5,311 | |||||||||||||
Loans_Tables
Loans (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||
Loans | ' | |||||||||||||||||||||||||||||||||
Summary of outstanding loan balances | ' | |||||||||||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 25,782 | $ | 21,467 | ||||||||||||||||||||||||||||||
Residential 1 to 4 family | 57,016 | 41,444 | ||||||||||||||||||||||||||||||||
Home equity lines of credit | 32,388 | 31,863 | ||||||||||||||||||||||||||||||||
Commercial | 442,322 | 372,592 | ||||||||||||||||||||||||||||||||
Farmland | 45,573 | 25,642 | ||||||||||||||||||||||||||||||||
Total real estate secured | 603,081 | 493,008 | ||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 103,540 | 125,340 | ||||||||||||||||||||||||||||||||
Agriculture | 28,523 | 21,663 | ||||||||||||||||||||||||||||||||
Other | 44 | 61 | ||||||||||||||||||||||||||||||||
Total commercial | 132,107 | 147,064 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 4,619 | 8,074 | ||||||||||||||||||||||||||||||||
Single family residential - Spec. | 1,114 | 535 | ||||||||||||||||||||||||||||||||
Multi-family | 747 | 778 | ||||||||||||||||||||||||||||||||
Commercial | 6,694 | 10,329 | ||||||||||||||||||||||||||||||||
Total construction | 13,174 | 19,716 | ||||||||||||||||||||||||||||||||
Land | 25,042 | 24,664 | ||||||||||||||||||||||||||||||||
Installment loans to individuals | 3,495 | 4,895 | ||||||||||||||||||||||||||||||||
All other loans (including overdrafts) | 255 | 261 | ||||||||||||||||||||||||||||||||
Total gross loans | 777,154 | 689,608 | ||||||||||||||||||||||||||||||||
Net deferred loan fees | (1,454 | ) | (937 | ) | ||||||||||||||||||||||||||||||
Allowance for loan losses | (17,468 | ) | (18,118 | ) | ||||||||||||||||||||||||||||||
Total net loans | $ | 758,232 | $ | 670,553 | ||||||||||||||||||||||||||||||
Loans held for sale | $ | 5,463 | $ | 22,549 | ||||||||||||||||||||||||||||||
Summary of the Company's investment in impaired loans | ' | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | |||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | ||||||||||||||||||||||||||||||
September 30, 2013 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | |||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 812 | $ | 965 | $ | 109 | $ | 703 | $ | 17 | ||||||||||||||||||||||||
Commercial | 1,194 | 1,925 | 642 | 552 | 91 | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,671 | 5,196 | 3,463 | 1,208 | 2,826 | |||||||||||||||||||||||||||||
Agriculture | 810 | 848 | 65 | 745 | 27 | |||||||||||||||||||||||||||||
Land | 8,063 | 12,093 | 7,050 | 1,013 | 3,854 | |||||||||||||||||||||||||||||
Installment loans to individuals | 26 | 71 | 26 | - | 10 | |||||||||||||||||||||||||||||
Totals | $ | 15,576 | $ | 21,098 | $ | 11,355 | $ | 4,221 | $ | 6,825 | ||||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | ||||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Unpaid | Impaired Loans | Specific | |||||||||||||||||||||||||||||||
Recorded | Principal | With Specific | Without Specific | Allowance for | ||||||||||||||||||||||||||||||
December 31, 2012 | Investment (1) | Balance | Allowance | Allowance | Impaired Loans | |||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 831 | $ | 1,035 | $ | 246 | $ | 585 | $ | 18 | ||||||||||||||||||||||||
Home equity lines of credit | 58 | 152 | 58 | - | 7 | |||||||||||||||||||||||||||||
Commercial | 933 | 1,799 | 42 | 891 | - | |||||||||||||||||||||||||||||
Farmland | 1,077 | 1,089 | - | 1,077 | - | |||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,337 | 4,813 | 3,410 | 927 | 2,172 | |||||||||||||||||||||||||||||
Agriculture | 907 | 1,235 | 30 | 877 | 13 | |||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Commercial | 1,380 | 2,508 | - | 1,380 | - | |||||||||||||||||||||||||||||
Land | 7,504 | 11,307 | 6,106 | 1,398 | 3,829 | |||||||||||||||||||||||||||||
Installment loans to individuals | 285 | 333 | 285 | - | 22 | |||||||||||||||||||||||||||||
Totals | $ | 17,312 | $ | 24,271 | $ | 10,177 | $ | 7,135 | $ | 6,061 | ||||||||||||||||||||||||
(1) The recorded investment in loans includes the book value of impaired loans as adjusted for the net deferred costs and fees related to the impaired loans. | ||||||||||||||||||||||||||||||||||
Schedule of average recorded investment in impaired loans and the interest income recognized on impaired loans | ' | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | Average | Interest | Average | Interest | |||||||||||||||||||||||||||
Recorded | Income | Recorded | Income | Recorded | Income | Recorded | Income | |||||||||||||||||||||||||||
(dollar amounts in thousands) | Investment | Recognized | Investment | Recognized | Investment | Recognized | Investment | Recognized | ||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | $ | 783 | $ | - | $ | 801 | $ | - | $ | 750 | $ | - | $ | 756 | $ | - | ||||||||||||||||||
Home equity lines of credit | 28 | - | 384 | - | 43 | - | 378 | - | ||||||||||||||||||||||||||
Commercial | 745 | - | 3,492 | - | 781 | - | 3,757 | - | ||||||||||||||||||||||||||
Farmland | - | - | 363 | - | 269 | - | 272 | - | ||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,342 | 8 | 4,129 | - | 4,223 | 11 | 3,644 | 4 | ||||||||||||||||||||||||||
Agriculture | 1,064 | - | 1,905 | - | 966 | - | 2,010 | - | ||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | - | - | - | - | - | - | 234 | - | ||||||||||||||||||||||||||
Commercial | - | - | 1,257 | - | 345 | - | 943 | - | ||||||||||||||||||||||||||
Land | 7,760 | 4 | 7,189 | - | 7,605 | 4 | 5,863 | - | ||||||||||||||||||||||||||
Installment loans to individuals | 28 | - | 89 | - | 111 | - | 82 | - | ||||||||||||||||||||||||||
Totals | $ | 14,750 | $ | 12 | $ | 19,609 | $ | - | $ | 15,093 | $ | 15 | $ | 17,939 | $ | 4 | ||||||||||||||||||
Schedule of loan modifications by class which resulted in TDRs | ' | |||||||||||||||||||||||||||||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Commercial real estate | 1 | $ | 227 | $ | 227 | 1 | $ | 227 | $ | 227 | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | - | - | 3 | 91 | 91 | ||||||||||||||||||||||||||||
Agriculture | 1 | 49 | 49 | 2 | 67 | 67 | ||||||||||||||||||||||||||||
Totals | 2 | $ | 276 | $ | 276 | 6 | $ | 385 | $ | 385 | ||||||||||||||||||||||||
For the Three Months Ended September 30, 2012 | For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||||||||||||||
Pre-Modification | Post-Modification | Pre-Modification | Post-Modification | |||||||||||||||||||||||||||||||
Number of | Outstanding Recorded | Outstanding Recorded | Number of | Outstanding Recorded | Outstanding Recorded | |||||||||||||||||||||||||||||
(dollar amounts in thousands) | TDRs | Investment | Investment | TDRs | Investment | Investment | ||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | $ | - | 1 | $ | 439 | $ | 439 | ||||||||||||||||||||||||
Farmland | 1 | 1,089 | 1,089 | 1 | 1,089 | 1,089 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 6 | 1,120 | 1,099 | 9 | 2,115 | 2,094 | ||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Land | 1 | 63 | 63 | 3 | 8,433 | 7,063 | ||||||||||||||||||||||||||||
Totals | 8 | $ | 2,272 | $ | 2,251 | 14 | $ | 12,076 | $ | 10,685 | ||||||||||||||||||||||||
Summary of loans by class modified as troubled debt restructurings | ' | |||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-13 | 30-Sep-13 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
That Subsequently Defaulted | ||||||||||||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Residential 1 to 4 family | - | $ | - | 1 | $ | 97 | ||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | - | 3 | 843 | ||||||||||||||||||||||||||||||
Agriculture | 1 | 18 | 1 | 18 | ||||||||||||||||||||||||||||||
Totals | 1 | $ | 18 | 5 | $ | 958 | ||||||||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||||||
30-Sep-12 | 30-Sep-12 | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Number of | Recorded | Number of | Recorded | ||||||||||||||||||||||||||||||
TDRs | Investment | TDRs | Investment | |||||||||||||||||||||||||||||||
Trouble Debt Restructurings | ||||||||||||||||||||||||||||||||||
That Subsequently Defaulted | ||||||||||||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | - | $ | - | 3 | $ | 254 | ||||||||||||||||||||||||||||
Totals | - | $ | - | 3 | $ | 254 | ||||||||||||||||||||||||||||
Schedule of loan portfolio by the Company's internal risk grading system as well as certain other information concerning the credit quality of the loan portfolio | ' | |||||||||||||||||||||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | ||||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | ||||||||||||||||||||||||||||||
September 30, 2013 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | ||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 25,782 | $ | 25,198 | $ | - | $ | 584 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Residential 1 to 4 family | 57,016 | 56,080 | 4 | 932 | - | - | - | - | 452 | 361 | ||||||||||||||||||||||||
Home equity lines of credit | 32,388 | 32,230 | - | 158 | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 442,322 | 414,892 | 3,710 | 23,720 | - | - | - | - | 964 | 226 | ||||||||||||||||||||||||
Farmland | 45,573 | 44,388 | 980 | 205 | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 103,540 | 93,743 | 820 | 7,991 | 986 | 61 | 35 | - | 3,224 | 1,430 | ||||||||||||||||||||||||
Agriculture | 28,523 | 26,947 | 280 | 1,296 | - | - | - | - | 811 | - | ||||||||||||||||||||||||
Other | 44 | 44 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 4,619 | 4,619 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Single family residential - Spec. | 1,114 | 1,114 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Multi-family | 747 | 747 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 6,694 | 6,694 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Land | 25,042 | 15,583 | 131 | 9,328 | - | - | - | - | 7,194 | 866 | ||||||||||||||||||||||||
Installment loans to individuals | 3,495 | 3,397 | - | 98 | - | - | - | - | 27 | - | ||||||||||||||||||||||||
All other loans (including overdrafts) | 255 | 255 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Totals | $ | 777,154 | $ | 725,931 | $ | 5,925 | $ | 44,312 | $ | 986 | $ | 61 | $ | 35 | $ | - | $ | 12,672 | $ | 2,883 | ||||||||||||||
(dollar amounts in thousands) | Credit Risk Grades | Days Past Due | ||||||||||||||||||||||||||||||||
Total Gross | Special | 90+ and Still | Non- | Accruing | ||||||||||||||||||||||||||||||
December 31, 2012 | Loans | Pass | Mention | Substandard | Doubtful | 30-59 | 60-89 | Accruing | Accruing | TDR | ||||||||||||||||||||||||
Real Estate Secured | ||||||||||||||||||||||||||||||||||
Multi-family residential | $ | 21,467 | $ | 20,869 | $ | - | $ | 598 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Residential 1 to 4 family | 41,444 | 40,234 | 6 | 1,204 | - | 199 | - | - | 835 | - | ||||||||||||||||||||||||
Home equity lines of credit | 31,863 | 30,808 | - | 1,055 | - | - | 47 | - | 58 | - | ||||||||||||||||||||||||
Commercial | 372,592 | 332,968 | 14,235 | 25,389 | - | - | - | - | 928 | - | ||||||||||||||||||||||||
Farmland | 25,642 | 20,492 | 3,260 | 1,890 | - | - | - | - | 1,077 | - | ||||||||||||||||||||||||
Commercial | ||||||||||||||||||||||||||||||||||
Commercial and industrial | 125,340 | 114,126 | 2,245 | 8,969 | - | 446 | 104 | 15 | 4,657 | 17 | ||||||||||||||||||||||||
Agriculture | 21,663 | 19,771 | 106 | 1,786 | - | - | - | - | 907 | - | ||||||||||||||||||||||||
Other | 61 | 61 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||||
Single family residential | 8,074 | 8,074 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Single family residential - Spec. | 535 | 535 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Multi-family | 778 | 778 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Commercial | 10,329 | 8,469 | - | 1,860 | - | - | - | - | 1,380 | - | ||||||||||||||||||||||||
Land | 24,664 | 12,461 | 4,124 | 8,079 | - | 50 | - | - | 7,182 | - | ||||||||||||||||||||||||
Installment loans to individuals | 4,895 | 4,365 | 230 | 300 | - | - | - | - | 285 | - | ||||||||||||||||||||||||
All other loans (including overdrafts) | 261 | 261 | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Totals | $ | 689,608 | $ | 614,272 | $ | 24,206 | $ | 51,130 | $ | - | $ | 695 | $ | 151 | $ | 15 | $ | 17,309 | $ | 17 | ||||||||||||||
Allowance_for_Loan_Losses_ALLL1
Allowance for Loan Losses ("ALLL") (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Allowance for Loan Losses ("ALLL") | ' | ||||||||||||||||||||||
Summary of activity in the allowance attributed to various segments in the loan portfolio | ' | ||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Balance, June 30, 2013 | $ | 6,509 | $ | 6,618 | $ | 198 | $ | 4,465 | $ | 108 | $ | 36 | $ | 17,934 | |||||||||
Charge-offs | (41 | ) | (736 | ) | - | - | (207 | ) | - | (984 | ) | ||||||||||||
Recoveries | 19 | 475 | 1 | 11 | 12 | - | 518 | ||||||||||||||||
Provisions for loan losses | (180 | ) | (207 | ) | 44 | 170 | 174 | (1 | ) | - | |||||||||||||
Balance, September 30, 2013 | $ | 6,307 | $ | 6,150 | $ | 243 | $ | 4,646 | $ | 87 | $ | 35 | $ | 17,468 | |||||||||
Balance, June 30, 2012 | $ | 6,897 | $ | 6,261 | $ | 381 | $ | 4,483 | $ | 91 | $ | 36 | $ | 18,149 | |||||||||
Charge-offs | (106 | ) | (1,511 | ) | (92 | ) | - | (9 | ) | - | (1,718 | ) | |||||||||||
Recoveries | 12 | 246 | 1 | 5 | 5 | 1 | 270 | ||||||||||||||||
Provisions for loan losses | 1,184 | 75 | 268 | (225 | ) | (15 | ) | (1 | ) | 1,286 | |||||||||||||
Balance, September 30, 2012 | $ | 7,987 | $ | 5,071 | $ | 558 | $ | 4,263 | $ | 72 | $ | 36 | $ | 17,987 | |||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Balance, December 31, 2012 | $ | 6,879 | $ | 6,154 | $ | 313 | $ | 4,670 | $ | 64 | $ | 38 | $ | 18,118 | |||||||||
Charge-offs | (131 | ) | (1,137 | ) | (169 | ) | (34 | ) | (380 | ) | - | (1,851 | ) | ||||||||||
Recoveries | 143 | 947 | 2 | 45 | 64 | - | 1,201 | ||||||||||||||||
Provisions for loan losses | (584 | ) | 186 | 97 | (35 | ) | 339 | (3 | ) | - | |||||||||||||
Balance, September 30, 2013 | $ | 6,307 | $ | 6,150 | $ | 243 | $ | 4,646 | $ | 87 | $ | 35 | $ | 17,468 | |||||||||
Balance, December 31, 2011 | $ | 9,645 | $ | 6,549 | $ | 488 | $ | 2,416 | $ | 175 | $ | 41 | $ | 19,314 | |||||||||
Charge-offs | (2,471 | ) | (4,272 | ) | (668 | ) | (2,168 | ) | (29 | ) | (137 | ) | (9,745 | ) | |||||||||
Recoveries | 74 | 623 | 1 | 18 | 18 | 3 | 737 | ||||||||||||||||
Provisions for loan losses (1) | 739 | 2,171 | 737 | 3,997 | (92 | ) | 129 | 7,681 | |||||||||||||||
Balance, September 30, 2012 | $ | 7,987 | $ | 5,071 | $ | 558 | $ | 4,263 | $ | 72 | $ | 36 | $ | 17,987 | |||||||||
(1) The provision for loan losses includes the transfer of $3.9 million from C&I to Land related to the re-characterization of a loan as part of a TDR in the second quarter of 2012, as the restructured loan became collateral dependent on a parcel of land. | |||||||||||||||||||||||
Summary of comparative metrics about the allowance attributed to various segments in the loan portfolio | ' | ||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 108 | $ | 2,853 | $ | - | $ | 3,854 | $ | 10 | $ | - | $ | 6,825 | |||||||||
General portfolio allocation | $ | 6,199 | $ | 3,297 | $ | 243 | $ | 792 | $ | 77 | $ | 35 | $ | 10,643 | |||||||||
Loans individually evaluated for impairment | $ | 2,003 | $ | 5,465 | $ | - | $ | 8,060 | $ | 27 | $ | - | $ | 15,555 | |||||||||
Loans collectively evaluated for impairment | $ | 601,078 | $ | 126,642 | $ | 13,174 | $ | 16,982 | $ | 3,468 | $ | 255 | $ | 761,599 | |||||||||
General reserves to total loans collectively evaluated for impairment | 1.03% | 2.60% | 1.84% | 4.66% | 2.22% | 13.73% | 1.40% | ||||||||||||||||
Total gross loans | $ | 603,081 | $ | 132,107 | $ | 13,174 | $ | 25,042 | $ | 3,495 | $ | 255 | $ | 777,154 | |||||||||
Total allowance to gross loans | 1.05% | 4.66% | 1.84% | 18.55% | 2.49% | 13.73% | 2.25% | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||
Real Estate | All Other | ||||||||||||||||||||||
(dollar amounts in thousands) | Secured | Commercial | Construction | Land | Installment | Loans | Total | ||||||||||||||||
Amount of allowance attributed to: | |||||||||||||||||||||||
Specifically evaluated impaired loans | $ | 25 | $ | 2,185 | $ | - | $ | 3,829 | $ | 22 | $ | - | $ | 6,061 | |||||||||
General portfolio allocation | $ | 6,854 | $ | 3,969 | $ | 313 | $ | 841 | $ | 42 | $ | 38 | $ | 12,057 | |||||||||
Loans individually evaluated for impairment | $ | 2,898 | $ | 5,596 | $ | 1,380 | $ | 7,182 | $ | 285 | $ | - | $ | 17,341 | |||||||||
Loans collectively evaluated for impairment | $ | 490,110 | $ | 141,468 | $ | 18,336 | $ | 17,482 | $ | 4,610 | $ | 261 | $ | 672,267 | |||||||||
General reserves to total loans collectively evaluated for impairment | 1.40% | 2.81% | 1.71% | 4.81% | 0.91% | 14.56% | 1.79% | ||||||||||||||||
Total gross loans | $ | 493,008 | $ | 147,064 | $ | 19,716 | $ | 24,664 | $ | 4,895 | $ | 261 | $ | 689,608 | |||||||||
Total allowance to gross loans | 1.40% | 4.18% | 1.59% | 18.93% | 1.31% | 14.56% | 2.63% | ||||||||||||||||
Deferred_Tax_Assets_and_Income1
Deferred Tax Assets and Income Taxes (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Deferred Tax Assets and Income Taxes | ' | |||||||||||||||||||||
Summary of Company's net deferred tax asset | ' | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||||||||||||||||
Deferred tax assets | ||||||||||||||||||||||
Provision for loan losses | $ | 8,669 | $ | 14,348 | ||||||||||||||||||
Forgone interest on non-accrual loans | 855 | 884 | ||||||||||||||||||||
Fixed assets | 459 | 405 | ||||||||||||||||||||
Accruals | 929 | 792 | ||||||||||||||||||||
Alternative minimum tax credit | 2,855 | 2,153 | ||||||||||||||||||||
Deferred income | 2,129 | 1,838 | ||||||||||||||||||||
Deferred compensation | 1,602 | 1,477 | ||||||||||||||||||||
Net operating loss carryforward | 6 | 907 | ||||||||||||||||||||
Investment securities valuation | 2,037 | - | ||||||||||||||||||||
Other than temporary impairment | - | 45 | ||||||||||||||||||||
Realized built-in loss subject to § 382 | 2,433 | 3,234 | ||||||||||||||||||||
Charitable contribution | - | 61 | ||||||||||||||||||||
State deferred tax | 781 | 59 | ||||||||||||||||||||
Total deferred tax assets | 22,755 | 26,203 | ||||||||||||||||||||
Deferred tax liabilities | ||||||||||||||||||||||
Fair value adjustment for purchased assets | 362 | 455 | ||||||||||||||||||||
Investment securities valuation | - | 2,745 | ||||||||||||||||||||
Deferred costs, prepaids and FHLB advances | 1,032 | 1,070 | ||||||||||||||||||||
Total deferred tax liabilities | 1,394 | 4,270 | ||||||||||||||||||||
Net deferred tax assets | $ | 21,361 | $ | 21,933 | ||||||||||||||||||
Summary for the current and deferred amounts of the Company's income tax provision expense / (benefit) | ' | |||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
Current: | ||||||||||||||||||||||
Federal | $ | 495 | $ | 936 | $ | 306 | $ | 2,489 | ||||||||||||||
State | (249 | ) | 485 | 29 | 957 | |||||||||||||||||
Total current (benefit) / expense | 246 | 1,421 | 335 | 3,446 | ||||||||||||||||||
Deferred: | ||||||||||||||||||||||
Federal | 630 | (141 | ) | 3,777 | (1,061 | ) | ||||||||||||||||
State | 717 | (115 | ) | 1,577 | (288 | ) | ||||||||||||||||
Total deferred expense / (benefit) | 1,347 | (256 | ) | 5,354 | (1,349 | ) | ||||||||||||||||
Deferred Tax Valuation Allowance: | ||||||||||||||||||||||
Federal | - | (2,552 | ) | - | (3,662 | ) | ||||||||||||||||
State | - | (1,553 | ) | - | (1,943 | ) | ||||||||||||||||
Total deferred tax valuation allowance change | - | (4,105 | ) | - | (5,605 | ) | ||||||||||||||||
Total income tax expense / (benefit) | $ | 1,593 | $ | (2,940 | ) | $ | 5,689 | $ | (3,508 | ) | ||||||||||||
Schedule of reconciliation of the statutory federal income tax expense / (benefit) rate to the Company's effective income tax expense / (benefit) and rate | ' | |||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(dollar amounts in thousands) | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||
Tax expense at federal statutory tax rate | $ | 1,525 | 35.00% | $ | 1,221 | 35.00% | $ | 5,214 | 35.00% | $ | 2,241 | 35 | % | |||||||||
State income taxes, net of federal income tax benefit | 304 | 7.00% | 241 | 6.90% | 1,044 | 7.00% | 435 | 6.8 | % | |||||||||||||
Change in deferred tax asset valuation allowance | - | 0.00% | (4,105 | ) | -117.70% | - | 0.00% | (5,605 | ) | -87.6 | % | |||||||||||
Bank owned life insurance | (38 | ) | -0.90% | (56 | ) | -1.60% | (115 | ) | -0.80% | (109 | ) | -1.7 | % | |||||||||
Tax exempt income, net of interest expense | (176 | ) | -4.00% | (217 | ) | -6.20% | (402 | ) | -2.70% | (415 | ) | -6.5 | % | |||||||||
Other, net | (22 | ) | -0.50% | (24 | ) | -0.70% | (52 | ) | -0.30% | (55 | ) | -0.8 | % | |||||||||
Total income tax expense / (benefit) | $ | 1,593 | 36.60% | $ | (2,940 | ) | -84.30% | $ | 5,689 | 38.20% | $ | (3,508 | ) | -54.8 | % | |||||||
Other_Real_Estate_Owned_OREO_T
Other Real Estate Owned ("OREO") (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Other Real Estate Owned ("OREO") | ' | ||||||||||||||||
Summary of the changes in the balance of OREO | ' | ||||||||||||||||
Balance | Balance | ||||||||||||||||
June 30, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2012 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | 431 | $ | - | $ | - | $ | (31 | ) | $ | 400 | ||||||
Commercial | 215 | - | - | - | 215 | ||||||||||||
Construction | |||||||||||||||||
Single family residential - Spec. | 397 | - | (397 | ) | - | - | |||||||||||
Land | 32 | - | - | (32 | ) | - | |||||||||||
Totals | $ | 1,075 | $ | - | $ | (397 | ) | $ | (63 | ) | $ | 615 | |||||
Balance | Balance | ||||||||||||||||
December 31, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2012 | Additions | Disposals | Writedowns | 2013 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Commercial | $ | - | $ | 1,374 | $ | (1,374 | ) | $ | - | $ | - | ||||||
Totals | $ | - | $ | 1,374 | $ | (1,374 | ) | $ | - | $ | - | ||||||
Balance | Balance | ||||||||||||||||
December 31, | September 30, | ||||||||||||||||
(dollar amounts in thousands) | 2011 | Additions | Disposals | Writedowns | 2012 | ||||||||||||
Real Estate Secured | |||||||||||||||||
Residential 1 to 4 family | $ | - | $ | 607 | $ | (176 | ) | $ | (31 | ) | $ | 400 | |||||
Commercial | 215 | - | - | - | 215 | ||||||||||||
Construction | |||||||||||||||||
Single family residential - Spec. | 423 | - | (397 | ) | (26 | ) | - | ||||||||||
Tract | 100 | - | (100 | ) | - | - | |||||||||||
Land | 179 | 162 | (300 | ) | (41 | ) | - | ||||||||||
Totals | $ | 917 | $ | 769 | $ | (973 | ) | $ | (98 | ) | $ | 615 | |||||
Deposits_Tables
Deposits (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deposits. | ' | |||||||
Schedule of interest bearing and non-interest bearing deposits | ' | |||||||
September 30, | December 31, | |||||||
(dollar amounts in thousands) | 2013 | 2012 | ||||||
Non-interest bearing deposits | $ | 285,428 | $ | 273,242 | ||||
Interest bearing deposits: | ||||||||
NOW accounts | 83,961 | 76,728 | ||||||
Money market deposit accounts | 324,990 | 293,525 | ||||||
Other savings deposits | 43,089 | 41,021 | ||||||
Time certificates of $100 or more | 145,315 | 97,105 | ||||||
Other time deposits | 74,169 | 89,249 | ||||||
Total deposits | $ | 956,952 | $ | 870,870 |
Capital_Tables
Capital (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Capital | ' | ||||||||||||
Schedule of the Company's and the Bank's actual regulatory ratios and the regulatory standards | ' | ||||||||||||
Regulatory | September 30, 2013 | December 31, 2012 | |||||||||||
Standard | |||||||||||||
Well | Heritage Oaks | Heritage Oaks | |||||||||||
Ratio | Capitalized | Bancorp | Bank | Bancorp | Bank | ||||||||
Leverage ratio | 5.00% | 10.58% | 10.05% | 12.32% | 11.93% | ||||||||
Tier I capital to risk weighted assets | 6.00% | 13.27% | 12.59% | 15.55% | 15.02% | ||||||||
Total risk based capital to risk weighted assets | 10.00% | 14.53% | 13.85% | 16.81% | 16.28% | ||||||||
ShareBased_Compensation_Plans_
Share-Based Compensation Plans (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Share-Based Compensation Plans | ' | |||||||||||||||
Summary of recognized and unrecognized share based compensation expense | ' | |||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
(dollar amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||||
Share-based compensation expense: | ||||||||||||||||
Stock option expense | $ | 68 | $ | 39 | $ | 183 | $ | 92 | ||||||||
Restricted stock expense | 80 | 67 | 208 | 142 | ||||||||||||
Total expense | $ | 148 | $ | 106 | $ | 391 | $ | 234 | ||||||||
Unrecognized compensation expense: | ||||||||||||||||
Stock option expense | $ | 762 | $ | 620 | ||||||||||||
Restricted stock expense | 775 | 624 | ||||||||||||||
Total unrecognized expense | $ | 1,537 | $ | 1,244 | ||||||||||||
Summary of activity related to options granted, exercised, and forfeited | ' | |||||||||||||||
Options Outstanding | Options | |||||||||||||||
Number | Weighted Average | Available for | ||||||||||||||
of Shares | Exercise Price | Grant | ||||||||||||||
Balance, December 31, 2012 | 523,129 | $ | 6.11 | 1,715,616 | ||||||||||||
Granted | 167,415 | 6.3 | ||||||||||||||
Forfeited | (65,356 | ) | 5.81 | |||||||||||||
Expired | (4,275 | ) | 4.62 | |||||||||||||
Exercised | (20,339 | ) | 3.9 | |||||||||||||
Balance, September 30, 2013 | 600,574 | $ | 6.28 | 1,565,670 | ||||||||||||
Summary of activity related to restricted stock granted, vested and forfeited | ' | |||||||||||||||
Number of | Average Grant | |||||||||||||||
Shares | Date Fair Value | |||||||||||||||
Balance December 31, 2012 | 196,850 | $ | 4.27 | |||||||||||||
Granted | 72,786 | 6.26 | ||||||||||||||
Vested | (57,508 | ) | 4.4 | |||||||||||||
Forfeited | (8,892 | ) | 5.17 | |||||||||||||
Balance September 30, 2013 | 203,236 | $ | 4.91 | |||||||||||||
Summary of the aggregate intrinsic value of options vested and expected to vest and exercisable | ' | |||||||||||||||
Weighted Average | ||||||||||||||||
Weighted | Remaining | Aggregate | ||||||||||||||
Average | Contractual Life | Intrinsic | ||||||||||||||
Shares | Exercise Price | (Years) | Value | |||||||||||||
Vested or expected to vest | 572,450 | $ | 6.29 | 7.46 | $ | 720,971 | ||||||||||
Exercisable at September 30, 2013 | 304,409 | $ | 6.62 | 5.84 | $ | 572,600 | ||||||||||
Schedule of assumptions used in the calculation of weighted average fair value of options granted | ' | |||||||||||||||
For the Nine Months Ended | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Expected volatility | 55.32% | 52.26% | ||||||||||||||
Expected term (years) | 6 | 7 | ||||||||||||||
Dividend yield | 0.00% | 0.00% | ||||||||||||||
Risk free rate | 1.55% | 1.11% | ||||||||||||||
Weighted-average grant date fair value | $ | 3.31 | $ | 2.87 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Earnings Per Share | ' | |||||||||||||||||
Schedule of calculation of both basic and diluted earnings per common share | ' | |||||||||||||||||
For the Three Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Net | |||||||||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||||||||
Net income | $ | 2,761 | $ | 6,428 | ||||||||||||||
Dividends and accretion on preferred stock | (181 | ) | (357 | ) | ||||||||||||||
Net income available to common shareholders | $ | 2,580 | $ | 6,071 | ||||||||||||||
Weighted average shares outstanding | 25,172,929 | 25,089,325 | ||||||||||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.24 | ||||||||||||||
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock | 1,376,639 | 1,341,392 | ||||||||||||||||
Weighted average diluted shares outstanding | 26,549,568 | 26,430,717 | ||||||||||||||||
Diluted earnings per common share | $ | 0.1 | $ | 0.23 | ||||||||||||||
For the Nine Months Ended September 30, | ||||||||||||||||||
2013 | 2012 | |||||||||||||||||
Net | Net | |||||||||||||||||
(dollar amounts in thousands except per share data) | Income | Shares | Income | Shares | ||||||||||||||
Net income | $ | 9,207 | $ | 9,910 | ||||||||||||||
Dividends and accretion on preferred stock | (898 | ) | (1,113 | ) | ||||||||||||||
Net applicable to common shareholders | $ | 8,309 | $ | 8,797 | ||||||||||||||
Weighted average shares outstanding | 25,138,410 | 25,074,405 | ||||||||||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.35 | ||||||||||||||
Dilutive effect of share-based compensation awards, common stock warrant, and convertible perpetual preferred stock | 1,401,694 | 1,280,238 | ||||||||||||||||
Weighted average diluted shares outstanding | 26,540,104 | 26,354,643 | ||||||||||||||||
Diluted earnings per common share | $ | 0.31 | $ | 0.33 | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
item | ||
Description of Business | ' | ' |
Number of business segments | 1 | ' |
Investment Holdings | ' | ' |
Total assets | $1,153,843 | $1,097,532 |
All Non-United States countries | ' | ' |
Investment Holdings | ' | ' |
Total assets | 0 | ' |
Revenue | $0 | ' |
Fair_Value_of_Assets_and_Liabi2
Fair Value of Assets and Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | $267,179 | ' |
Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 7,728 | ' |
Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 175,432 | ' |
Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 13,390 | ' |
Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 44,060 | ' |
Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 26,569 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 267,179 | 287,682 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Number of Instruments Held | 0 | 0 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 267,179 | 287,682 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 7,728 | 7,567 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 175,432 | 145,768 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 13,390 | 44,795 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 44,060 | 68,968 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 26,569 | 20,584 |
Recurring basis | Assets At Fair Value | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 267,179 | 287,682 |
Recurring basis | Assets At Fair Value | Obligations of U.S. government agencies | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 7,728 | 7,567 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 175,432 | 145,768 |
Recurring basis | Assets At Fair Value | Mortgage-backed securities - Non-agency | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 13,390 | 44,795 |
Recurring basis | Assets At Fair Value | Obligations of state and municipal securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | 44,060 | 68,968 |
Recurring basis | Assets At Fair Value | Asset backed securities | ' | ' |
Financial instruments of the Company measured at fair value on a recurring basis | ' | ' |
Total assets measured on recurring basis | $26,569 | $20,584 |
Fair_Value_of_Assets_and_Liabi3
Fair Value of Assets and Liabilities (Details 2) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Obligations of state and municipal securities | ' | ' |
Changes in balance sheet carrying values associated with recurring Level 3 financial instruments | ' | ' |
Beginning balance | $262 | $259 |
Gain / (Loss) Included in OCI | ' | 3 |
Transfers to / (from) Level III | -262 | -262 |
Agency mortgage backed securities | ' | ' |
Changes in balance sheet carrying values associated with recurring Level 3 financial instruments | ' | ' |
Gain / (Loss) Included in OCI | ' | -191 |
Purchases, Issuances, and Settlements | ' | 4,674 |
Transfers to / (from) Level III | ' | -4,483 |
Non-agency mortgage backed securities | ' | ' |
Changes in balance sheet carrying values associated with recurring Level 3 financial instruments | ' | ' |
Beginning balance | ' | 3,074 |
Transfers to / (from) Level III | ' | ($3,074) |
Fair_Value_of_Assets_and_Liabi4
Fair Value of Assets and Liabilities (Details 3) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Recurring basis | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Assets transfer from Level 1 to level 2 | $0 | ' | $0 |
Assets transfer from Level 2 to level 1 | 0 | ' | 0 |
Nonrecurring basis | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) | 1,039 | 6,231 | ' |
Assets transfer from Level 1 to level 2 | 0 | ' | 0 |
Assets transfer from Level 2 to level 1 | 0 | ' | 0 |
Nonrecurring basis | Commercial real estate | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) on impaired loans | 88 | ' | ' |
Nonrecurring basis | Commercial and industrial | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) on impaired loans | 959 | 1,941 | ' |
Nonrecurring basis | Agriculture | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) on impaired loans | ' | 28 | ' |
Nonrecurring basis | Construction | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) on impaired loans | ' | 460 | ' |
Nonrecurring basis | Land | ' | ' | ' |
Total Losses for assets measured at fair value on a non-recurring basis | ' | ' | ' |
Total Losses/(Recoveries) on impaired loans | -8 | 3,802 | ' |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Assets | ' | ' | ' |
Total assets measured on a non-recurring basis | ' | 2,548 | ' |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | Commercial and industrial | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | ' | 820 | ' |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | Agriculture | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | ' | 72 | ' |
Nonrecurring basis | Significant Other Observable Inputs (Level 2) | Construction | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | ' | 1,656 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Assets | ' | ' | ' |
Total assets measured on a non-recurring basis | 3,968 | 2,261 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Residential 1 to 4 family | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 348 | ' | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Commercial real estate | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 521 | ' | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Commercial and industrial | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 76 | 213 | ' |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 3,023 | 2,048 | ' |
Nonrecurring basis | Assets At Fair Value | ' | ' | ' |
Assets | ' | ' | ' |
Total assets measured on a non-recurring basis | 3,968 | 4,809 | ' |
Nonrecurring basis | Assets At Fair Value | Residential 1 to 4 family | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 348 | ' | ' |
Nonrecurring basis | Assets At Fair Value | Commercial real estate | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 521 | ' | ' |
Nonrecurring basis | Assets At Fair Value | Commercial and industrial | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | 76 | 1,033 | ' |
Nonrecurring basis | Assets At Fair Value | Agriculture | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | ' | 72 | ' |
Nonrecurring basis | Assets At Fair Value | Construction | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | ' | 1,656 | ' |
Nonrecurring basis | Assets At Fair Value | Land | ' | ' | ' |
Assets | ' | ' | ' |
Impaired loans | $3,023 | $2,048 | ' |
Fair_Value_of_Assets_and_Liabi5
Fair Value of Assets and Liabilities (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment securities available for sale | $267,179 | ' |
Liabilities | ' | ' |
Non-interest bearing deposits | 285,428 | 273,242 |
Junior subordinated debentures | 8,248 | 8,248 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Notional Amount | 170,047 | 178,432 |
Off-balance sheet instruments, commitments to extend credit and standby letters of credit, Cost to Cede or Assume | 1,700 | 1,784 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 33,281 | 34,116 |
Liabilities | ' | ' |
Non-interest bearing deposits | 285,428 | 273,242 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Investment securities available for sale | 267,179 | 287,682 |
Loans receivable, net of deferred fees and costs | ' | 2,548 |
Loans held for sale | 5,463 | 22,549 |
Accrued interest receivable | 1,194 | 1,497 |
Liabilities | ' | ' |
Interest bearing deposits | 673,207 | 598,664 |
Federal Home Loan Bank advances | 55,803 | 67,059 |
Accrued interest payable | 177 | 192 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Loans receivable, net of deferred fees and costs | 779,769 | 701,144 |
Accrued interest receivable | 2,435 | 2,418 |
Liabilities | ' | ' |
Junior subordinated debentures | 7,062 | 7,078 |
Carrying Amount | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 33,281 | 34,116 |
Investment securities available for sale | 267,179 | 287,682 |
Federal Home Loan Bank stock | 4,739 | 4,575 |
Loans receivable, net of deferred fees and costs | 775,700 | 688,671 |
Loans held for sale | 5,463 | 22,549 |
Accrued interest receivable | 3,629 | 3,915 |
Liabilities | ' | ' |
Non-interest bearing deposits | 285,428 | 273,242 |
Interest bearing deposits | 671,524 | 597,628 |
Federal Home Loan Bank advances | 57,500 | 66,500 |
Junior subordinated debentures | 8,248 | 8,248 |
Accrued interest payable | 177 | 192 |
Fair Value | ' | ' |
Assets | ' | ' |
Cash and cash equivalents | 33,281 | 34,116 |
Investment securities available for sale | 267,179 | 287,682 |
Loans receivable, net of deferred fees and costs | 779,769 | 703,692 |
Loans held for sale | 5,463 | 22,549 |
Accrued interest receivable | 3,629 | 3,915 |
Liabilities | ' | ' |
Non-interest bearing deposits | 285,428 | 273,242 |
Interest bearing deposits | 673,207 | 598,664 |
Federal Home Loan Bank advances | 55,803 | 67,059 |
Junior subordinated debentures | 7,062 | 7,078 |
Accrued interest payable | $177 | $192 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | $272,129 | $281,012 |
Gross Unrealized Gains | 1,036 | 7,784 |
Gross Unrealized Losses | -5,986 | -1,114 |
Fair Value | 267,179 | 287,682 |
Obligations of U.S. government agencies | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | 7,738 | 7,307 |
Gross Unrealized Gains | 37 | 262 |
Gross Unrealized Losses | -47 | -2 |
Fair Value | 7,728 | 7,567 |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | 178,856 | 145,430 |
Gross Unrealized Gains | 446 | 1,136 |
Gross Unrealized Losses | -3,870 | -798 |
Fair Value | 175,432 | 145,768 |
Mortgage-backed securities - Non-agency | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | 13,266 | 43,402 |
Gross Unrealized Gains | 168 | 1,578 |
Gross Unrealized Losses | -44 | -185 |
Fair Value | 13,390 | 44,795 |
State and municipal securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | 45,333 | 64,824 |
Gross Unrealized Gains | 385 | 4,240 |
Gross Unrealized Losses | -1,658 | -96 |
Fair Value | 44,060 | 68,968 |
Asset backed securities | ' | ' |
Reconciliation of amortized cost to fair value of investment securities reported as available for sale | ' | ' |
Amortized Cost | 26,936 | 20,049 |
Gross Unrealized Gains | ' | 568 |
Gross Unrealized Losses | -367 | -33 |
Fair Value | $26,569 | $20,584 |
Investment_Securities_Details_
Investment Securities (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | |
OTTI Related to Credit Loss | OTTI Related to Credit Loss | OTTI Related to Credit Loss | OTTI Related to Credit Loss | OTTI Related to All Other Factors | OTTI Related to All Other Factors | OTTI Related to All Other Factors | Private labeled mortgage backed securities | Private labeled mortgage backed securities | ||||
item | ||||||||||||
Other than Temporary Impairment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investment securities in which other than temporary impairment losses were recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Other than temporary impairment investments, fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $700,000 |
Other than temporary impairment investments, historical cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 |
Additional information related to the recognized OTTI losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of the period | 392,000 | 279,000 | 470,000 | 109,000 | 109,000 | 109,000 | 109,000 | 283,000 | 170,000 | 361,000 | ' | ' |
Less: losses related to OTTI securities sold | ' | -279,000 | ' | -109,000 | ' | ' | ' | ' | -170,000 | ' | ' | ' |
Change in value attributable to other factors | -140,000 | ' | -218,000 | ' | ' | ' | ' | -140,000 | ' | -218,000 | ' | ' |
Balance, end of the period | $252,000 | ' | $252,000 | ' | $109,000 | $109,000 | $109,000 | $143,000 | ' | $143,000 | ' | ' |
Investment_Securities_Details_1
Investment Securities (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | $158,865,000 | ' | $158,865,000 | ' | $109,937,000 |
Less Than Twelve Months, Unrealized Loss | -5,681,000 | ' | -5,681,000 | ' | -942,000 |
Twelve Months or More, Fair Value | 5,790,000 | ' | 5,790,000 | ' | 763,000 |
Twelve Months or More, Unrealized Loss | -305,000 | ' | -305,000 | ' | -172,000 |
Total, Fair Value | 164,655,000 | ' | 164,655,000 | ' | 110,700,000 |
Total, Unrealized Loss | -5,986,000 | ' | -5,986,000 | ' | -1,114,000 |
Proceeds from the sales and calls of securities and the associated gains and losses | ' | ' | ' | ' | ' |
Proceeds | 38,930,000 | 41,899,000 | 144,571,000 | 95,789,000 | ' |
Gross gains | 970,000 | 448,000 | 5,349,000 | 2,160,000 | ' |
Gross losses | -626,000 | -119,000 | -1,414,000 | -464,000 | ' |
Income tax expense related to net realized gains on sales and calls of securities | 100,000 | 100,000 | 1,600,000 | 700,000 | ' |
Available for sale securities | ' | ' | ' | ' | ' |
One Year Or Less | 30,476,000 | ' | 30,476,000 | ' | ' |
Over 1 Through 5 Years | 91,991,000 | ' | 91,991,000 | ' | ' |
Over 5 Years Through 10 Years | 81,735,000 | ' | 81,735,000 | ' | ' |
Over 10 Years | 62,977,000 | ' | 62,977,000 | ' | ' |
Total | 267,179,000 | ' | 267,179,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
One Year Or Less | 30,658,000 | ' | 30,658,000 | ' | ' |
Over 1 Through 5 Years | 93,028,000 | ' | 93,028,000 | ' | ' |
Over 5 Years Through 10 Years | 83,805,000 | ' | 83,805,000 | ' | ' |
Over 10 Years | 64,638,000 | ' | 64,638,000 | ' | ' |
Total | 272,129,000 | ' | 272,129,000 | ' | 281,012,000 |
Weighted average yield | ' | ' | ' | ' | ' |
One Year Or Less (as a percent) | ' | ' | 2.35% | ' | ' |
Over 1 Through 5 Years (as a percent) | ' | ' | 2.26% | ' | ' |
Over 5 Years Through 10 Years (as a percent) | ' | ' | 2.54% | ' | ' |
Over 10 Years (as a percent) | ' | ' | 2.67% | ' | ' |
Total (as a percent) | ' | ' | 2.45% | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Total | 1,347,000 | 1,783,000 | 3,993,000 | 5,311,000 | ' |
Investment securities | Minimum | ' | ' | ' | ' | ' |
Securities in an unrealized loss position | ' | ' | ' | ' | ' |
Maturity period of available-for-sale securities | ' | ' | '1 year | ' | ' |
Investment securities | Maximum | ' | ' | ' | ' | ' |
Securities in an unrealized loss position | ' | ' | ' | ' | ' |
Maturity period of available-for-sale securities | ' | ' | '40 years | ' | ' |
Obligations of U.S. government agencies | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | 3,100,000 | ' | 3,100,000 | ' | ' |
Less Than Twelve Months, Unrealized Loss | -46,000 | ' | -46,000 | ' | ' |
Twelve Months or More, Fair Value | 41,000 | ' | 41,000 | ' | 44,000 |
Twelve Months or More, Unrealized Loss | -1,000 | ' | -1,000 | ' | -2,000 |
Total, Fair Value | 3,141,000 | ' | 3,141,000 | ' | 44,000 |
Total, Unrealized Loss | -47,000 | ' | -47,000 | ' | -2,000 |
Available for sale securities | ' | ' | ' | ' | ' |
One Year Or Less | 100,000 | ' | 100,000 | ' | ' |
Over 1 Through 5 Years | 3,481,000 | ' | 3,481,000 | ' | ' |
Over 5 Years Through 10 Years | 1,729,000 | ' | 1,729,000 | ' | ' |
Over 10 Years | 2,418,000 | ' | 2,418,000 | ' | ' |
Total | 7,728,000 | ' | 7,728,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | 7,738,000 | ' | 7,738,000 | ' | 7,307,000 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Taxable earnings on investment securities | 33,000 | 25,000 | 86,000 | 79,000 | ' |
Mortgage backed securities | ' | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Taxable earnings on investment securities | 847,000 | 973,000 | 2,470,000 | 2,971,000 | ' |
Mortgage-backed securities - U.S. government sponsored entities and agencies | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | 111,209,000 | ' | 111,209,000 | ' | 83,092,000 |
Less Than Twelve Months, Unrealized Loss | -3,566,000 | ' | -3,566,000 | ' | -798,000 |
Twelve Months or More, Fair Value | 5,749,000 | ' | 5,749,000 | ' | ' |
Twelve Months or More, Unrealized Loss | -304,000 | ' | -304,000 | ' | ' |
Total, Fair Value | 116,958,000 | ' | 116,958,000 | ' | 83,092,000 |
Total, Unrealized Loss | -3,870,000 | ' | -3,870,000 | ' | -798,000 |
Available for sale securities | ' | ' | ' | ' | ' |
One Year Or Less | 24,910,000 | ' | 24,910,000 | ' | ' |
Over 1 Through 5 Years | 75,551,000 | ' | 75,551,000 | ' | ' |
Over 5 Years Through 10 Years | 29,616,000 | ' | 29,616,000 | ' | ' |
Over 10 Years | 45,355,000 | ' | 45,355,000 | ' | ' |
Total | 175,432,000 | ' | 175,432,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | 178,856,000 | ' | 178,856,000 | ' | 145,430,000 |
Mortgage-backed securities - Non-agency | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | 1,218,000 | ' | 1,218,000 | ' | 7,204,000 |
Less Than Twelve Months, Unrealized Loss | -44,000 | ' | -44,000 | ' | -15,000 |
Twelve Months or More, Fair Value | ' | ' | ' | ' | 719,000 |
Twelve Months or More, Unrealized Loss | ' | ' | ' | ' | -170,000 |
Total, Fair Value | 1,218,000 | ' | 1,218,000 | ' | 7,923,000 |
Total, Unrealized Loss | -44,000 | ' | -44,000 | ' | -185,000 |
Available for sale securities | ' | ' | ' | ' | ' |
One Year Or Less | 5,426,000 | ' | 5,426,000 | ' | ' |
Over 1 Through 5 Years | 6,443,000 | ' | 6,443,000 | ' | ' |
Over 5 Years Through 10 Years | 1,521,000 | ' | 1,521,000 | ' | ' |
Total | 13,390,000 | ' | 13,390,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | 13,266,000 | ' | 13,266,000 | ' | 43,402,000 |
State and municipal securities | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | 25,638,000 | ' | 25,638,000 | ' | 9,813,000 |
Less Than Twelve Months, Unrealized Loss | -1,658,000 | ' | -1,658,000 | ' | -96,000 |
Total, Fair Value | 25,638,000 | ' | 25,638,000 | ' | 9,813,000 |
Total, Unrealized Loss | -1,658,000 | ' | -1,658,000 | ' | -96,000 |
Available for sale securities | ' | ' | ' | ' | ' |
One Year Or Less | 40,000 | ' | 40,000 | ' | ' |
Over 1 Through 5 Years | 6,516,000 | ' | 6,516,000 | ' | ' |
Over 5 Years Through 10 Years | 34,300,000 | ' | 34,300,000 | ' | ' |
Over 10 Years | 3,204,000 | ' | 3,204,000 | ' | ' |
Total | 44,060,000 | ' | 44,060,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | 45,333,000 | ' | 45,333,000 | ' | 64,824,000 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Taxable earnings on investment securities | ' | 5,000 | 5,000 | 183,000 | ' |
Non-taxable earnings on investment securities | 354,000 | 527,000 | 1,082,000 | 1,428,000 | ' |
Corporate debt securities | ' | ' | ' | ' | ' |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Taxable earnings on investment securities | ' | 181,000 | ' | 504,000 | ' |
Asset backed securities | ' | ' | ' | ' | ' |
Investment securities | ' | ' | ' | ' | ' |
Less Than Twelve Months, Fair Value | 17,700,000 | ' | 17,700,000 | ' | 9,828,000 |
Less Than Twelve Months, Unrealized Loss | -367,000 | ' | -367,000 | ' | -33,000 |
Total, Fair Value | 17,700,000 | ' | 17,700,000 | ' | 9,828,000 |
Total, Unrealized Loss | -367,000 | ' | -367,000 | ' | -33,000 |
Available for sale securities | ' | ' | ' | ' | ' |
Over 5 Years Through 10 Years | 14,569,000 | ' | 14,569,000 | ' | ' |
Over 10 Years | 12,000,000 | ' | 12,000,000 | ' | ' |
Total | 26,569,000 | ' | 26,569,000 | ' | ' |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | 26,936,000 | ' | 26,936,000 | ' | 20,049,000 |
Earnings on both taxable and tax-exempt investment securities | ' | ' | ' | ' | ' |
Taxable earnings on investment securities | 113,000 | 72,000 | 350,000 | 146,000 | ' |
Securities pledged to secure public deposits | ' | ' | ' | ' | ' |
Available for sale securities | ' | ' | ' | ' | ' |
Total | 41,700,000 | ' | 41,700,000 | ' | 9,000,000 |
Available for sale securities, Amortized cost | ' | ' | ' | ' | ' |
Total | $42,800,000 | ' | $42,800,000 | ' | $8,700,000 |
Loans_Details
Loans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 33 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
item | |||||||||
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | $777,154,000 | ' | $777,154,000 | ' | $777,154,000 | ' | $689,608,000 | ' | ' |
Net deferred loan fees | -1,454,000 | ' | -1,454,000 | ' | -1,454,000 | ' | -937,000 | ' | ' |
Allowance for loan losses | -17,468,000 | -17,987,000 | -17,468,000 | -17,987,000 | -17,468,000 | -17,934,000 | -18,118,000 | -18,149,000 | -19,314,000 |
Net loans held for investment | 758,232,000 | ' | 758,232,000 | ' | 758,232,000 | ' | 670,553,000 | ' | ' |
Loans held for sale | 5,463,000 | ' | 5,463,000 | ' | 5,463,000 | ' | 22,549,000 | ' | ' |
Reserve maintained for the exercise of repurchase option by buyer | 500,000 | ' | 500,000 | ' | 500,000 | ' | ' | ' | ' |
Losses incurred on settlement | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' |
Number of loans settled | ' | ' | ' | ' | 9 | ' | ' | ' | ' |
Concentration of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan portfolio collateralized by various forms of real estate | 641,300,000 | ' | 641,300,000 | ' | 641,300,000 | ' | 537,400,000 | ' | ' |
Loans Serviced for Others | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpaid principal balance of loans serviced for others, exclusive of SBA loans | 20,100,000 | ' | 20,100,000 | ' | 20,100,000 | ' | 7,100,000 | ' | ' |
Unpaid principal balance of SBA loans serviced for others | 6,800,000 | ' | 6,800,000 | ' | 6,800,000 | ' | 3,100,000 | ' | ' |
Recognized gains from the sale of SBA loans | 400,000 | 0 | 400,000 | 0 | ' | ' | ' | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for sale of loans categorized as held for sale | ' | ' | '30 days | ' | ' | ' | ' | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period for sale of loans categorized as held for sale | ' | ' | '60 days | ' | ' | ' | ' | ' | ' |
Real Estate Secured | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 603,081,000 | ' | 603,081,000 | ' | 603,081,000 | ' | 493,008,000 | ' | ' |
Allowance for loan losses | -6,307,000 | -7,987,000 | -6,307,000 | -7,987,000 | -6,307,000 | -6,509,000 | -6,879,000 | -6,897,000 | -9,645,000 |
Real Estate Secured | Multi-family residential | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 25,782,000 | ' | 25,782,000 | ' | 25,782,000 | ' | 21,467,000 | ' | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 57,016,000 | ' | 57,016,000 | ' | 57,016,000 | ' | 41,444,000 | ' | ' |
Real Estate Secured | Home equity lines of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 32,388,000 | ' | 32,388,000 | ' | 32,388,000 | ' | 31,863,000 | ' | ' |
Real Estate Secured | Commercial | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 442,322,000 | ' | 442,322,000 | ' | 442,322,000 | ' | 372,592,000 | ' | ' |
Real Estate Secured | Farmland | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 45,573,000 | ' | 45,573,000 | ' | 45,573,000 | ' | 25,642,000 | ' | ' |
Commercial | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 132,107,000 | ' | 132,107,000 | ' | 132,107,000 | ' | 147,064,000 | ' | ' |
Allowance for loan losses | -6,150,000 | -5,071,000 | -6,150,000 | -5,071,000 | -6,150,000 | -6,618,000 | -6,154,000 | -6,261,000 | -6,549,000 |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 103,540,000 | ' | 103,540,000 | ' | 103,540,000 | ' | 125,340,000 | ' | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 28,523,000 | ' | 28,523,000 | ' | 28,523,000 | ' | 21,663,000 | ' | ' |
Commercial | Other | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 44,000 | ' | 44,000 | ' | 44,000 | ' | 61,000 | ' | ' |
Construction | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 13,174,000 | ' | 13,174,000 | ' | 13,174,000 | ' | 19,716,000 | ' | ' |
Allowance for loan losses | -243,000 | -558,000 | -243,000 | -558,000 | -243,000 | -198,000 | -313,000 | -381,000 | -488,000 |
Construction | Single family residential | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 4,619,000 | ' | 4,619,000 | ' | 4,619,000 | ' | 8,074,000 | ' | ' |
Construction | Single family residential - Spec. | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 1,114,000 | ' | 1,114,000 | ' | 1,114,000 | ' | 535,000 | ' | ' |
Construction | Multi-family | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 747,000 | ' | 747,000 | ' | 747,000 | ' | 778,000 | ' | ' |
Construction | Commercial | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 6,694,000 | ' | 6,694,000 | ' | 6,694,000 | ' | 10,329,000 | ' | ' |
Land | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 25,042,000 | ' | 25,042,000 | ' | 25,042,000 | ' | 24,664,000 | ' | ' |
Allowance for loan losses | -4,646,000 | -4,263,000 | -4,646,000 | -4,263,000 | -4,646,000 | -4,465,000 | -4,670,000 | -4,483,000 | -2,416,000 |
Installment loans to individuals | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 3,495,000 | ' | 3,495,000 | ' | 3,495,000 | ' | 4,895,000 | ' | ' |
Allowance for loan losses | -87,000 | -72,000 | -87,000 | -72,000 | -87,000 | -108,000 | -64,000 | -91,000 | -175,000 |
All other loans (including overdrafts) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding loan balances | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 255,000 | ' | 255,000 | ' | 255,000 | ' | 261,000 | ' | ' |
Allowance for loan losses | ($35,000) | ($36,000) | ($35,000) | ($36,000) | ($35,000) | ($36,000) | ($38,000) | ($36,000) | ($41,000) |
Loans_Details_2
Loans (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | $15,576,000 | ' | $15,576,000 | ' | $17,312,000 |
Unpaid Principal Balance | 21,098,000 | ' | 21,098,000 | ' | 24,271,000 |
Impaired Loans With Specific Allowance | 11,355,000 | ' | 11,355,000 | ' | 10,177,000 |
Impaired Loans Without Specific Allowance | 4,221,000 | ' | 4,221,000 | ' | 7,135,000 |
Specific Allowance for Impaired Loans | 6,825,000 | ' | 6,825,000 | ' | 6,061,000 |
Average Recorded Investment | 14,750,000 | 19,609,000 | 15,093,000 | 17,939,000 | ' |
Interest Income Recognized | 12,000 | ' | 15,000 | 4,000 | ' |
Increase in interest income if interest on non-accruing loans had been recognized at original interest rates stipulated in the respective loan agreements | 200,000 | 300,000 | 600,000 | 1,000,000 | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 812,000 | ' | 812,000 | ' | 831,000 |
Unpaid Principal Balance | 965,000 | ' | 965,000 | ' | 1,035,000 |
Impaired Loans With Specific Allowance | 109,000 | ' | 109,000 | ' | 246,000 |
Impaired Loans Without Specific Allowance | 703,000 | ' | 703,000 | ' | 585,000 |
Specific Allowance for Impaired Loans | 17,000 | ' | 17,000 | ' | 18,000 |
Average Recorded Investment | 783,000 | 801,000 | 750,000 | 756,000 | ' |
Real Estate Secured | Home equity lines of credit | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | 58,000 |
Unpaid Principal Balance | ' | ' | ' | ' | 152,000 |
Impaired Loans With Specific Allowance | ' | ' | ' | ' | 58,000 |
Specific Allowance for Impaired Loans | ' | ' | ' | ' | 7,000 |
Average Recorded Investment | 28,000 | 384,000 | 43,000 | 378,000 | ' |
Real Estate Secured | Commercial | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 1,194,000 | ' | 1,194,000 | ' | 933,000 |
Unpaid Principal Balance | 1,925,000 | ' | 1,925,000 | ' | 1,799,000 |
Impaired Loans With Specific Allowance | 642,000 | ' | 642,000 | ' | 42,000 |
Impaired Loans Without Specific Allowance | 552,000 | ' | 552,000 | ' | 891,000 |
Specific Allowance for Impaired Loans | 91,000 | ' | 91,000 | ' | ' |
Average Recorded Investment | 745,000 | 3,492,000 | 781,000 | 3,757,000 | ' |
Real Estate Secured | Farmland | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | 1,077,000 |
Unpaid Principal Balance | ' | ' | ' | ' | 1,089,000 |
Impaired Loans Without Specific Allowance | ' | ' | ' | ' | 1,077,000 |
Average Recorded Investment | ' | 363,000 | 269,000 | 272,000 | ' |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 4,671,000 | ' | 4,671,000 | ' | 4,337,000 |
Unpaid Principal Balance | 5,196,000 | ' | 5,196,000 | ' | 4,813,000 |
Impaired Loans With Specific Allowance | 3,463,000 | ' | 3,463,000 | ' | 3,410,000 |
Impaired Loans Without Specific Allowance | 1,208,000 | ' | 1,208,000 | ' | 927,000 |
Specific Allowance for Impaired Loans | 2,826,000 | ' | 2,826,000 | ' | 2,172,000 |
Average Recorded Investment | 4,342,000 | 4,129,000 | 4,223,000 | 3,644,000 | ' |
Interest Income Recognized | 8,000 | ' | 11,000 | 4,000 | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 810,000 | ' | 810,000 | ' | 907,000 |
Unpaid Principal Balance | 848,000 | ' | 848,000 | ' | 1,235,000 |
Impaired Loans With Specific Allowance | 65,000 | ' | 65,000 | ' | 30,000 |
Impaired Loans Without Specific Allowance | 745,000 | ' | 745,000 | ' | 877,000 |
Specific Allowance for Impaired Loans | 27,000 | ' | 27,000 | ' | 13,000 |
Average Recorded Investment | 1,064,000 | 1,905,000 | 966,000 | 2,010,000 | ' |
Construction | Single family residential | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Average Recorded Investment | ' | ' | ' | 234,000 | ' |
Construction | Commercial | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | ' | ' | ' | ' | 1,380,000 |
Unpaid Principal Balance | ' | ' | ' | ' | 2,508,000 |
Impaired Loans Without Specific Allowance | ' | ' | ' | ' | 1,380,000 |
Average Recorded Investment | ' | 1,257,000 | 345,000 | 943,000 | ' |
Land | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 8,063,000 | ' | 8,063,000 | ' | 7,504,000 |
Unpaid Principal Balance | 12,093,000 | ' | 12,093,000 | ' | 11,307,000 |
Impaired Loans With Specific Allowance | 7,050,000 | ' | 7,050,000 | ' | 6,106,000 |
Impaired Loans Without Specific Allowance | 1,013,000 | ' | 1,013,000 | ' | 1,398,000 |
Specific Allowance for Impaired Loans | 3,854,000 | ' | 3,854,000 | ' | 3,829,000 |
Average Recorded Investment | 7,760,000 | 7,189,000 | 7,605,000 | 5,863,000 | ' |
Interest Income Recognized | 4,000 | ' | 4,000 | ' | ' |
Installment loans to individuals | ' | ' | ' | ' | ' |
Investment in impaired loans | ' | ' | ' | ' | ' |
Recorded Investment | 26,000 | ' | 26,000 | ' | 285,000 |
Unpaid Principal Balance | 71,000 | ' | 71,000 | ' | 333,000 |
Impaired Loans With Specific Allowance | 26,000 | ' | 26,000 | ' | 285,000 |
Specific Allowance for Impaired Loans | 10,000 | ' | 10,000 | ' | 22,000 |
Average Recorded Investment | $28,000 | $89,000 | $111,000 | $82,000 | ' |
Loans_Details_3
Loans (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
item | item | item | item | ||
Troubled debt restructurings | ' | ' | ' | ' | ' |
Loans classified as TDRs | $9,800,000 | ' | $9,800,000 | ' | $11,600,000 |
Accruing loans that were classified as TDRs | 2,900,000 | ' | 2,900,000 | ' | 17,000 |
Interest loss related to rate concessions on certain TDRs | 43,000 | 46,000 | 131,000 | 85,000 | ' |
Number of TDRs | 2 | 8 | 6 | 14 | ' |
Pre-Modification Outstanding Recorded Investment | 276,000 | 2,272,000 | 385,000 | 12,076,000 | ' |
Post-Modification Outstanding Recorded Investment | 276,000 | 2,251,000 | 385,000 | 10,685,000 | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | 1 | ' | 5 | 3 | ' |
Recorded Investment | 18,000 | ' | 958,000 | 254,000 | ' |
Minimum | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Period of maturity date extensions granted | ' | ' | '12 months | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Period of maturity date extensions granted | ' | ' | '18 months | ' | ' |
Real Estate Secured | Residential 1 to 4 family | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | ' | 1 | ' |
Pre-Modification Outstanding Recorded Investment | ' | ' | ' | 439,000 | ' |
Post-Modification Outstanding Recorded Investment | ' | ' | ' | 439,000 | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | 1 | ' | ' |
Recorded Investment | ' | ' | 97,000 | ' | ' |
Real Estate Secured | Commercial real estate | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | 1 | ' | 1 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 227,000 | ' | 227,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 227,000 | ' | 227,000 | ' | ' |
Real Estate Secured | Farmland | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | ' | 1 | ' | 1 | ' |
Pre-Modification Outstanding Recorded Investment | ' | 1,089,000 | ' | 1,089,000 | ' |
Post-Modification Outstanding Recorded Investment | ' | 1,089,000 | ' | 1,089,000 | ' |
Commercial | Commercial and industrial | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | ' | 6 | 3 | 9 | ' |
Pre-Modification Outstanding Recorded Investment | ' | 1,120,000 | 91,000 | 2,115,000 | ' |
Post-Modification Outstanding Recorded Investment | ' | 1,099,000 | 91,000 | 2,094,000 | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | ' | ' | 3 | 3 | ' |
Recorded Investment | ' | ' | 843,000 | 254,000 | ' |
Commercial | Agriculture | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | 1 | ' | 2 | ' | ' |
Pre-Modification Outstanding Recorded Investment | 49,000 | ' | 67,000 | ' | ' |
Post-Modification Outstanding Recorded Investment | 49,000 | ' | 67,000 | ' | ' |
Troubled Debt Restructurings That Subsequently Defaulted | ' | ' | ' | ' | ' |
Number of TDRs | 1 | ' | 1 | ' | ' |
Recorded Investment | 18,000 | ' | 18,000 | ' | ' |
Land | ' | ' | ' | ' | ' |
Troubled debt restructurings | ' | ' | ' | ' | ' |
Number of TDRs | ' | 1 | ' | 3 | ' |
Pre-Modification Outstanding Recorded Investment | ' | 63,000 | ' | 8,433,000 | ' |
Post-Modification Outstanding Recorded Investment | ' | $63,000 | ' | $7,063,000 | ' |
Loans_Details_4
Loans (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | $777,154 | $689,608 |
Days Past Due | ' | ' |
30-59 | 61 | 695 |
60-89 | 35 | 151 |
90+ and Still Accruing | ' | 15 |
Non-Accruing | 12,672 | 17,309 |
Accruing TDR | 2,883 | 17 |
Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 725,931 | 614,272 |
Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 5,925 | 24,206 |
Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 44,312 | 51,130 |
Credit Risk Grades, Doubtful | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 986 | ' |
Real Estate Secured | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 603,081 | 493,008 |
Real Estate Secured | Multi-family residential | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 25,782 | 21,467 |
Real Estate Secured | Multi-family residential | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 25,198 | 20,869 |
Real Estate Secured | Multi-family residential | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 584 | 598 |
Real Estate Secured | Residential 1 to 4 family | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 57,016 | 41,444 |
Days Past Due | ' | ' |
30-59 | ' | 199 |
Non-Accruing | 452 | 835 |
Accruing TDR | 361 | ' |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 56,080 | 40,234 |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 4 | 6 |
Real Estate Secured | Residential 1 to 4 family | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 932 | 1,204 |
Real Estate Secured | Home equity lines of credit | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 32,388 | 31,863 |
Days Past Due | ' | ' |
60-89 | ' | 47 |
Non-Accruing | ' | 58 |
Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 32,230 | 30,808 |
Real Estate Secured | Home equity lines of credit | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 158 | 1,055 |
Real Estate Secured | Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 442,322 | 372,592 |
Days Past Due | ' | ' |
Non-Accruing | 964 | 928 |
Accruing TDR | 226 | ' |
Real Estate Secured | Commercial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 414,892 | 332,968 |
Real Estate Secured | Commercial | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,710 | 14,235 |
Real Estate Secured | Commercial | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 23,720 | 25,389 |
Real Estate Secured | Farmland | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 45,573 | 25,642 |
Days Past Due | ' | ' |
Non-Accruing | ' | 1,077 |
Real Estate Secured | Farmland | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 44,388 | 20,492 |
Real Estate Secured | Farmland | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 980 | 3,260 |
Real Estate Secured | Farmland | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 205 | 1,890 |
Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 132,107 | 147,064 |
Commercial | Commercial and industrial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 103,540 | 125,340 |
Days Past Due | ' | ' |
30-59 | 61 | 446 |
60-89 | 35 | 104 |
90+ and Still Accruing | ' | 15 |
Non-Accruing | 3,224 | 4,657 |
Accruing TDR | 1,430 | 17 |
Commercial | Commercial and industrial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 93,743 | 114,126 |
Commercial | Commercial and industrial | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 820 | 2,245 |
Commercial | Commercial and industrial | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 7,991 | 8,969 |
Commercial | Commercial and industrial | Credit Risk Grades, Doubtful | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 986 | ' |
Commercial | Agriculture | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 28,523 | 21,663 |
Days Past Due | ' | ' |
Non-Accruing | 811 | 907 |
Commercial | Agriculture | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 26,947 | 19,771 |
Commercial | Agriculture | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 280 | 106 |
Commercial | Agriculture | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,296 | 1,786 |
Commercial | Other | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 44 | 61 |
Commercial | Other | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 44 | 61 |
Construction | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 13,174 | 19,716 |
Construction | Single family residential | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 4,619 | 8,074 |
Construction | Single family residential | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 4,619 | 8,074 |
Construction | Single family residential - Spec. | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,114 | 535 |
Construction | Single family residential - Spec. | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 1,114 | 535 |
Construction | Multi-family | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 747 | 778 |
Construction | Multi-family | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 747 | 778 |
Construction | Commercial | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 6,694 | 10,329 |
Days Past Due | ' | ' |
Non-Accruing | ' | 1,380 |
Construction | Commercial | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 6,694 | 8,469 |
Construction | Commercial | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | ' | 1,860 |
Land | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 25,042 | 24,664 |
Days Past Due | ' | ' |
30-59 | ' | 50 |
Non-Accruing | 7,194 | 7,182 |
Accruing TDR | 866 | ' |
Land | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 15,583 | 12,461 |
Land | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 131 | 4,124 |
Land | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 9,328 | 8,079 |
Installment loans to individuals | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,495 | 4,895 |
Days Past Due | ' | ' |
Non-Accruing | 27 | 285 |
Installment loans to individuals | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 3,397 | 4,365 |
Installment loans to individuals | Credit Risk Grades, Special Mention | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | ' | 230 |
Installment loans to individuals | Credit Risk Grades, Substandard | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 98 | 300 |
All other loans (including overdrafts) | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | 255 | 261 |
All other loans (including overdrafts) | Credit Risk Grades, Pass | ' | ' |
Loan portfolio by internal risk grading system as well as certain other information concerning the credit quality | ' | ' |
Total Gross loans | $255 | $261 |
Allowance_for_Loan_Losses_ALLL2
Allowance for Loan Losses ("ALLL") (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | $17,934,000 | $18,149,000 | ' | $18,118,000 | $19,314,000 | ' |
Charge-offs | -984,000 | -1,718,000 | ' | -1,851,000 | -9,745,000 | ' |
Recoveries | 518,000 | 270,000 | ' | 1,201,000 | 737,000 | ' |
Provisions for loan losses | ' | 1,286,000 | ' | ' | 7,681,000 | ' |
Balance, at the end of the period | 17,468,000 | 17,987,000 | 18,149,000 | 17,468,000 | 17,987,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
Specifically evaluated impaired loans | 6,825,000 | ' | ' | 6,825,000 | ' | 6,061,000 |
General portfolio allocation | 10,643,000 | ' | ' | 10,643,000 | ' | 12,057,000 |
Loans individually evaluated for impairment | 15,555,000 | ' | ' | 15,555,000 | ' | 17,341,000 |
Loans collectively evaluated for impairment | 761,599,000 | ' | ' | 761,599,000 | ' | 672,267,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.40% | ' | ' | 1.40% | ' | 1.79% |
Total gross loans | 777,154,000 | ' | ' | 777,154,000 | ' | 689,608,000 |
Total allowance to gross loans (as a percent) | 2.25% | ' | ' | 2.25% | ' | 2.63% |
Provision for loan losses, transfer from C&I to Land related to the re-characterization of a loan as part of a TDR | ' | ' | 3,900,000 | ' | ' | ' |
Real Estate Secured | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 6,509,000 | 6,897,000 | ' | 6,879,000 | 9,645,000 | ' |
Charge-offs | -41,000 | -106,000 | ' | -131,000 | -2,471,000 | ' |
Recoveries | 19,000 | 12,000 | ' | 143,000 | 74,000 | ' |
Provisions for loan losses | -180,000 | 1,184,000 | ' | -584,000 | 739,000 | ' |
Balance, at the end of the period | 6,307,000 | 7,987,000 | ' | 6,307,000 | 7,987,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
Specifically evaluated impaired loans | 108,000 | ' | ' | 108,000 | ' | 25,000 |
General portfolio allocation | 6,199,000 | ' | ' | 6,199,000 | ' | 6,854,000 |
Loans individually evaluated for impairment | 2,003,000 | ' | ' | 2,003,000 | ' | 2,898,000 |
Loans collectively evaluated for impairment | 601,078,000 | ' | ' | 601,078,000 | ' | 490,110,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.03% | ' | ' | 1.03% | ' | 1.40% |
Total gross loans | 603,081,000 | ' | ' | 603,081,000 | ' | 493,008,000 |
Total allowance to gross loans (as a percent) | 1.05% | ' | ' | 1.05% | ' | 1.40% |
Commercial | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 6,618,000 | 6,261,000 | ' | 6,154,000 | 6,549,000 | ' |
Charge-offs | -736,000 | -1,511,000 | ' | -1,137,000 | -4,272,000 | ' |
Recoveries | 475,000 | 246,000 | ' | 947,000 | 623,000 | ' |
Provisions for loan losses | -207,000 | 75,000 | ' | 186,000 | 2,171,000 | ' |
Balance, at the end of the period | 6,150,000 | 5,071,000 | ' | 6,150,000 | 5,071,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
Specifically evaluated impaired loans | 2,853,000 | ' | ' | 2,853,000 | ' | 2,185,000 |
General portfolio allocation | 3,297,000 | ' | ' | 3,297,000 | ' | 3,969,000 |
Loans individually evaluated for impairment | 5,465,000 | ' | ' | 5,465,000 | ' | 5,596,000 |
Loans collectively evaluated for impairment | 126,642,000 | ' | ' | 126,642,000 | ' | 141,468,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 2.60% | ' | ' | 2.60% | ' | 2.81% |
Total gross loans | 132,107,000 | ' | ' | 132,107,000 | ' | 147,064,000 |
Total allowance to gross loans (as a percent) | 4.66% | ' | ' | 4.66% | ' | 4.18% |
Construction | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 198,000 | 381,000 | ' | 313,000 | 488,000 | ' |
Charge-offs | ' | -92,000 | ' | -169,000 | -668,000 | ' |
Recoveries | 1,000 | 1,000 | ' | 2,000 | 1,000 | ' |
Provisions for loan losses | 44,000 | 268,000 | ' | 97,000 | 737,000 | ' |
Balance, at the end of the period | 243,000 | 558,000 | ' | 243,000 | 558,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
General portfolio allocation | 243,000 | ' | ' | 243,000 | ' | 313,000 |
Loans individually evaluated for impairment | ' | ' | ' | ' | ' | 1,380,000 |
Loans collectively evaluated for impairment | 13,174,000 | ' | ' | 13,174,000 | ' | 18,336,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 1.84% | ' | ' | 1.84% | ' | 1.71% |
Total gross loans | 13,174,000 | ' | ' | 13,174,000 | ' | 19,716,000 |
Total allowance to gross loans (as a percent) | 1.84% | ' | ' | 1.84% | ' | 1.59% |
Land | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 4,465,000 | 4,483,000 | ' | 4,670,000 | 2,416,000 | ' |
Charge-offs | ' | ' | ' | -34,000 | -2,168,000 | ' |
Recoveries | 11,000 | 5,000 | ' | 45,000 | 18,000 | ' |
Provisions for loan losses | 170,000 | -225,000 | ' | -35,000 | 3,997,000 | ' |
Balance, at the end of the period | 4,646,000 | 4,263,000 | ' | 4,646,000 | 4,263,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
Specifically evaluated impaired loans | 3,854,000 | ' | ' | 3,854,000 | ' | 3,829,000 |
General portfolio allocation | 792,000 | ' | ' | 792,000 | ' | 841,000 |
Loans individually evaluated for impairment | 8,060,000 | ' | ' | 8,060,000 | ' | 7,182,000 |
Loans collectively evaluated for impairment | 16,982,000 | ' | ' | 16,982,000 | ' | 17,482,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 4.66% | ' | ' | 4.66% | ' | 4.81% |
Total gross loans | 25,042,000 | ' | ' | 25,042,000 | ' | 24,664,000 |
Total allowance to gross loans (as a percent) | 18.55% | ' | ' | 18.55% | ' | 18.93% |
Installment | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 108,000 | 91,000 | ' | 64,000 | 175,000 | ' |
Charge-offs | -207,000 | -9,000 | ' | -380,000 | -29,000 | ' |
Recoveries | 12,000 | 5,000 | ' | 64,000 | 18,000 | ' |
Provisions for loan losses | 174,000 | -15,000 | ' | 339,000 | -92,000 | ' |
Balance, at the end of the period | 87,000 | 72,000 | ' | 87,000 | 72,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
Specifically evaluated impaired loans | 10,000 | ' | ' | 10,000 | ' | 22,000 |
General portfolio allocation | 77,000 | ' | ' | 77,000 | ' | 42,000 |
Loans individually evaluated for impairment | 27,000 | ' | ' | 27,000 | ' | 285,000 |
Loans collectively evaluated for impairment | 3,468,000 | ' | ' | 3,468,000 | ' | 4,610,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 2.22% | ' | ' | 2.22% | ' | 0.91% |
Total gross loans | 3,495,000 | ' | ' | 3,495,000 | ' | 4,895,000 |
Total allowance to gross loans (as a percent) | 2.49% | ' | ' | 2.49% | ' | 1.31% |
All Other Loans | ' | ' | ' | ' | ' | ' |
Allocation of the allowance to various segments in the loan portfolio | ' | ' | ' | ' | ' | ' |
Balance, at the beginning of the period | 36,000 | 36,000 | ' | 38,000 | 41,000 | ' |
Charge-offs | ' | ' | ' | ' | -137,000 | ' |
Recoveries | ' | 1,000 | ' | ' | 3,000 | ' |
Provisions for loan losses | -1,000 | -1,000 | ' | -3,000 | 129,000 | ' |
Balance, at the end of the period | 35,000 | 36,000 | ' | 35,000 | 36,000 | ' |
Amount of allowance attributed to: | ' | ' | ' | ' | ' | ' |
General portfolio allocation | 35,000 | ' | ' | 35,000 | ' | 38,000 |
Loans collectively evaluated for impairment | 255,000 | ' | ' | 255,000 | ' | 261,000 |
General reserves to total loans collectively evaluated for impairment (as a percent) | 13.73% | ' | ' | 13.73% | ' | 14.56% |
Total gross loans | $255,000 | ' | ' | $255,000 | ' | $261,000 |
Total allowance to gross loans (as a percent) | 13.73% | ' | ' | 13.73% | ' | 14.56% |
Deferred_Tax_Assets_and_Income2
Deferred Tax Assets and Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2011 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2010 | Dec. 31, 2009 | |
Deferred tax assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for loan losses | $8,669,000 | ' | ' | ' | $8,669,000 | ' | $14,348,000 | ' | ' |
Forgone interest on non-accrual loans | 855,000 | ' | ' | ' | 855,000 | ' | 884,000 | ' | ' |
Fixed assets | 459,000 | ' | ' | ' | 459,000 | ' | 405,000 | ' | ' |
Accruals | 929,000 | ' | ' | ' | 929,000 | ' | 792,000 | ' | ' |
Alternative minimum tax credit | 2,855,000 | ' | ' | ' | 2,855,000 | ' | 2,153,000 | ' | ' |
Deferred income | 2,129,000 | ' | ' | ' | 2,129,000 | ' | 1,838,000 | ' | ' |
Deferred compensation | 1,602,000 | ' | ' | ' | 1,602,000 | ' | 1,477,000 | ' | ' |
Net operating loss carryforward | 6,000 | ' | ' | ' | 6,000 | ' | 907,000 | ' | ' |
Investment securities valuation | 2,037,000 | ' | ' | ' | 2,037,000 | ' | ' | ' | ' |
Other than temporary impairment | ' | ' | ' | ' | ' | ' | 45,000 | ' | ' |
Realized built-in loss subject to 382 | 2,433,000 | ' | ' | ' | 2,433,000 | ' | 3,234,000 | ' | ' |
Charitable contribution | ' | ' | ' | ' | ' | ' | 61,000 | ' | ' |
State deferred tax | 781,000 | ' | ' | ' | 781,000 | ' | 59,000 | ' | ' |
Total deferred tax assets | 22,755,000 | ' | ' | ' | 22,755,000 | ' | 26,203,000 | ' | ' |
Deferred tax liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value adjustment for purchased assets | 362,000 | ' | ' | ' | 362,000 | ' | 455,000 | ' | ' |
Investment securities valuation | ' | ' | ' | ' | ' | ' | 2,745,000 | ' | ' |
Deferred costs, prepaids and FHLB advances | 1,032,000 | ' | ' | ' | 1,032,000 | ' | 1,070,000 | ' | ' |
Total deferred tax liabilities | 1,394,000 | ' | ' | ' | 1,394,000 | ' | 4,270,000 | ' | ' |
Net deferred tax assets | 21,361,000 | ' | ' | ' | 21,361,000 | ' | 21,933,000 | ' | ' |
Cumulative loss position period | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years |
Change in deferred tax asset valuation allowance | ' | -4,100,000 | -1,500,000 | -1,500,000 | ' | ' | -5,600,000 | 7,100,000 | ' |
Determination of the valuation allowance, cumulative pre-tax losses period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' |
Determination of the valuation allowance, expected deferred tax assets realization period | ' | ' | ' | ' | ' | ' | ' | '5 years | ' |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | 495,000 | 936,000 | ' | ' | 306,000 | 2,489,000 | ' | ' | ' |
State | -249,000 | 485,000 | ' | ' | 29,000 | 957,000 | ' | ' | ' |
Total current (benefit) / expense | 246,000 | 1,421,000 | ' | ' | 335,000 | 3,446,000 | ' | ' | ' |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | 630,000 | -141,000 | ' | ' | 3,777,000 | -1,061,000 | ' | ' | ' |
State | 717,000 | -115,000 | ' | ' | 1,577,000 | -288,000 | ' | ' | ' |
Total deferred expense / (benefit) | 1,347,000 | -256,000 | ' | ' | 5,354,000 | -1,349,000 | ' | ' | ' |
Deferred Tax Valuation Allowance: | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | -2,552,000 | ' | ' | ' | -3,662,000 | ' | ' | ' |
State | ' | -1,553,000 | ' | ' | ' | -1,943,000 | ' | ' | ' |
Total deferred tax valuation allowance change | ' | -4,105,000 | ' | ' | ' | -5,605,000 | ' | ' | ' |
Total income tax expense / (benefit) | 1,593,000 | -2,940,000 | ' | ' | 5,689,000 | -3,508,000 | ' | ' | ' |
Reconciliation of the statutory federal income tax expense / (benefit) to the Company's effective income tax expense / (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax expense at federal statutory tax rate | 1,525,000 | 1,221,000 | ' | ' | 5,214,000 | 2,241,000 | ' | ' | ' |
State income taxes, net of federal income tax benefit | 304,000 | 241,000 | ' | ' | 1,044,000 | 435,000 | ' | ' | ' |
Change in deferred tax asset valuation allowance | ' | -4,105,000 | ' | ' | ' | -5,605,000 | ' | ' | ' |
Bank owned life insurance | -38,000 | -56,000 | ' | ' | -115,000 | -109,000 | ' | ' | ' |
Tax exempt income, net of interest expense | -176,000 | -217,000 | ' | ' | -402,000 | -415,000 | ' | ' | ' |
Other, net | -22,000 | -24,000 | ' | ' | -52,000 | -55,000 | ' | ' | ' |
Total income tax expense / (benefit) | $1,593,000 | ($2,940,000) | ' | ' | $5,689,000 | ($3,508,000) | ' | ' | ' |
Reconciliation of the statutory federal income tax expense / (benefit) rate to the Company's effective income tax expense / (benefit) rate | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax expense at federal statutory tax rate (as a percent) | 35.00% | 35.00% | ' | ' | 35.00% | 35.00% | ' | ' | ' |
State income taxes, net of federal income tax benefit (as a percent) | 7.00% | 6.90% | ' | ' | 7.00% | 6.80% | ' | ' | ' |
Change in deferred tax asset valuation allowance (as a percent) | 0.00% | -117.70% | ' | ' | 0.00% | -87.60% | ' | ' | ' |
Bank owned life insurance (as a percent) | -0.90% | -1.60% | ' | ' | -0.80% | -1.70% | ' | ' | ' |
Tax exempt income, net of interest expense (as a percent) | -4.00% | -6.20% | ' | ' | -2.70% | -6.50% | ' | ' | ' |
Other, net (as a percent) | -0.50% | -0.70% | ' | ' | -0.30% | -0.80% | ' | ' | ' |
Total income tax expense / (benefit) (as a percent) | 36.60% | -84.30% | ' | ' | 38.20% | -54.80% | ' | ' | ' |
Other_Real_Estate_Owned_OREO_D
Other Real Estate Owned ("OREO") (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 |
Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Real Estate Secured | Construction | Construction | Construction | Land | Land | ||||
Residential 1 to 4 family | Residential 1 to 4 family | Commercial | Commercial | Commercial | Commercial | Single family residential - Spec. | Single family residential - Spec. | Tract | ||||||
Other Real Estate Owned ("OREO") | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Real Estate Owned, balance at the beginning of the period | $1,075 | ' | $917 | $431 | ' | ' | $215 | $215 | $215 | $397 | $423 | $100 | $32 | $179 |
Additions | ' | 1,374 | 769 | ' | 607 | 1,374 | ' | ' | ' | ' | ' | ' | ' | 162 |
Disposals | -397 | -1,374 | -973 | ' | -176 | -1,374 | ' | ' | ' | -397 | -397 | -100 | ' | -300 |
Writedowns | -63 | ' | -98 | -31 | -31 | ' | ' | ' | ' | ' | -26 | ' | -32 | -41 |
Other Real Estate Owned, balance at the end of the period | $615 | ' | $615 | $400 | $400 | ' | $215 | $215 | $215 | ' | ' | ' | ' | ' |
Deposits_Details
Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deposits. | ' | ' |
Non-interest bearing deposits | $285,428 | $273,242 |
Interest bearing deposits: | ' | ' |
NOW accounts | 83,961 | 76,728 |
Money market deposit accounts | 324,990 | 293,525 |
Other savings deposits | 43,089 | 41,021 |
Time certificates of $100 or more | 145,315 | 97,105 |
Other time deposits | 74,169 | 89,249 |
Total deposits | $956,952 | $870,870 |
Capital_Details
Capital (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Leverage ratio | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 5.00% | ' |
Actual regulatory, Leverage ratio (as a percent) | 10.58% | 12.32% |
Tier I capital to risk weighted assets | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 6.00% | ' |
Actual regulatory, Tier I capital to risk weighted assets (as a percent) | 13.27% | 15.55% |
Total risk based capital to risk weighted assets | ' | ' |
Regulatory Standard, Well Capitalized Ratio (as a percent) | 10.00% | ' |
Actual regulatory, Total risk based capital to risk weighted assets (as a percent) | 14.53% | 16.81% |
Heritage Oaks Bank | ' | ' |
Leverage ratio | ' | ' |
Actual regulatory, Leverage ratio (as a percent) | 10.05% | 11.93% |
Tier I capital to risk weighted assets | ' | ' |
Actual regulatory, Tier I capital to risk weighted assets (as a percent) | 12.59% | 15.02% |
Total risk based capital to risk weighted assets | ' | ' |
Actual regulatory, Total risk based capital to risk weighted assets (as a percent) | 13.85% | 16.28% |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Share-Based Compensation Plans | ' | ' | ' | ' | ' |
Number of share-based employee compensation plans | 2 | ' | 2 | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | $148 | $106 | $391 | $234 | ' |
Unrecognized compensation expense | 1,537 | 1,244 | 1,537 | 1,244 | ' |
Stock option | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | 68 | 39 | 183 | 92 | ' |
Unrecognized compensation expense | 762 | 620 | 762 | 620 | ' |
Weighted-average period over which expense is expected to be recognized | ' | ' | '3 years 3 months 18 days | ' | ' |
Number of shares | ' | ' | ' | ' | ' |
Options outstanding, at the beginning of the period (in shares) | ' | ' | 523,129 | ' | ' |
Granted (in shares) | ' | ' | 167,415 | ' | ' |
Forfeited (in shares) | ' | ' | -65,356 | ' | ' |
Expired (in shares) | ' | ' | -4,275 | ' | ' |
Exercised (in shares) | ' | ' | -20,339 | ' | ' |
Options outstanding, at the end of the period (in shares) | 600,574 | ' | 600,574 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' | ' | ' |
Options outstanding, at the beginning of the period (in dollars per share) | ' | ' | $6.11 | ' | ' |
Granted (in dollars per share) | ' | ' | $6.30 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $5.81 | ' | ' |
Expired (in dollars per share) | ' | ' | $4.62 | ' | ' |
Exercised (in dollars per share) | ' | ' | $3.90 | ' | ' |
Options outstanding, at the end of the period (in dollars per share) | $6.28 | ' | $6.28 | ' | ' |
Options Available for Grant (in shares) | 1,565,670 | ' | 1,565,670 | ' | 1,715,616 |
Aggregate intrinsic value of options exercised | ' | ' | ' | ' | ' |
Aggregate intrinsic value of options exercised | ' | ' | 42 | ' | ' |
Aggregate intrinsic value of options vested or expected to vest | ' | ' | ' | ' | ' |
Shares | 572,450 | ' | 572,450 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.29 | ' | $6.29 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | '7 years 5 months 16 days | ' | ' |
Aggregate Intrinsic Value | 720,971 | ' | 720,971 | ' | ' |
Aggregate intrinsic value of options exercisable | ' | ' | ' | ' | ' |
Shares | 304,409 | ' | 304,409 | ' | ' |
Weighted Average Exercise Price (in dollars per share) | $6.62 | ' | $6.62 | ' | ' |
Weighted Average Remaining Contractual Life | ' | ' | '5 years 10 months 2 days | ' | ' |
Aggregate Intrinsic Value | 572,600 | ' | 572,600 | ' | ' |
Assumptions used in the calculation of the weighted average fair value of options granted | ' | ' | ' | ' | ' |
Expected volatility (as a percent) | ' | ' | 55.32% | 52.26% | ' |
Expected term | ' | ' | '6 years | '7 years | ' |
Dividend yield (as a percent) | ' | ' | 0.00% | 0.00% | ' |
Risk free rate (as a percent) | ' | ' | 1.55% | 1.11% | ' |
Weighted-average grant date fair value (in dollars per share) | ' | ' | $3.31 | $2.87 | ' |
Restricted stock | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Share-based compensation expense | 80 | 67 | 208 | 142 | ' |
Unrecognized compensation expense | $775 | $624 | $775 | $624 | ' |
Weighted-average period over which expense is expected to be recognized | ' | ' | '2 years 10 months 24 days | ' | ' |
Number of Shares | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 196,850 | ' | ' |
Granted (in shares) | ' | ' | 72,786 | ' | ' |
Vested (in shares) | ' | ' | -57,508 | ' | ' |
Forfeited (in shares) | ' | ' | -8,892 | ' | ' |
Balance at the end of the period (in shares) | 203,236 | ' | 203,236 | ' | ' |
Average Grant Date fair Value | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | $4.27 | ' | ' |
Granted (in dollars per share) | ' | ' | $6.26 | ' | ' |
Vested (in dollars per share) | ' | ' | $4.40 | ' | ' |
Forfeited (in dollars per share) | ' | ' | $5.17 | ' | ' |
Balance at the end of the period (in dollars per share) | $4.91 | ' | $4.91 | ' | ' |
Restricted stock | Minimum | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '1 year | ' | ' |
Restricted stock | Maximum | ' | ' | ' | ' | ' |
Summary of the expenses the Company has recognized related to share-based compensation | ' | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' | ' |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 0 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Mar. 12, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 17, 2013 | Sep. 30, 2013 | Jul. 17, 2013 | Mar. 20, 2009 | Sep. 30, 2013 | Jul. 31, 2012 | Mar. 12, 2010 | Sep. 30, 2013 | Jul. 29, 2013 |
item | Bank | Minimum | Series A senior preferred stock | Series A senior preferred stock | Series A senior preferred stock | Series A senior preferred stock | Series C preferred stock | Series C preferred stock | Common Stock | |||
item | ||||||||||||
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock, shares authorized | ' | 5,000,000 | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of series of preferred stock | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' |
Issuance of stock (in shares) | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | 1,189,538 | ' | ' |
Repurchase price paid for warrant issued to U.S. Treasury under CPP | ' | ' | ' | ' | ' | ' | $21 | ' | ' | ' | ' | $1.60 |
Liquidation preference per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | ' |
Coupon rate for five years (as a percent) | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Coupon rate thereafter (as a percent) | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' |
Percentage of liquidation preference amount at which the stock may be redeemed | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' |
Period of redemption from the date of issue | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' |
Warrants issued as a percentage of preferred equity issuance amount | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' |
Value of warrants issued to U.S. Treasury to purchase shares of common stock | ' | ' | ' | ' | ' | ' | ' | 3.2 | ' | ' | ' | ' |
Numbers of shares to be exchanged from warrants subject to Company's offer to repurchase (in shares) | ' | ' | ' | ' | ' | ' | 611,650 | ' | ' | ' | ' | 611,650 |
Exercise price of warrants outstanding (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $5.15 | ' | ' | ' | ' |
Expiration period of warrants issued | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Amount of dividend approved for repurchase of shares | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of shares | ' | ' | ' | ' | ' | ' | ' | ' | 21,000 | ' | ' | ' |
Amount of shares repurchased, including accrued but unpaid dividends | ' | ' | ' | ' | ' | 21.2 | ' | ' | ' | ' | ' | ' |
Gross proceeds from private placement | 60 | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | ' | ' |
Preferred stock conversion ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Stated dividend rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' |
Conversion price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.25 | ' |
Value of contingent beneficial conversion feature to be recognized upon conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' |
Number of investors having board observation rights | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of investors having board nomination rights | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Calculation of both basic and diluted earnings per common share | ' | ' | ' | ' |
Net income | $2,761 | $6,428 | $9,207 | $9,910 |
Dividends and accretion on preferred stock | -181 | -357 | -898 | -1,113 |
Net income available to common shareholders | $2,580 | $6,071 | $8,309 | $8,797 |
Weighted average shares outstanding | 25,172,929 | 25,089,325 | 25,138,410 | 25,074,405 |
Basic earnings per common share (in dollars per share) | $0.10 | $0.24 | $0.33 | $0.35 |
Dilutive effect of share-based compensation awards, common stock warrants, and convertible perpetual preferred stock (in shares) | 1,376,639 | 1,341,392 | 1,401,694 | 1,280,238 |
Weighted average diluted shares outstanding | 26,549,568 | 26,430,717 | 26,540,104 | 26,354,643 |
Diluted earnings per common share (in dollars per share) | $0.10 | $0.23 | $0.31 | $0.33 |
Options | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | ' | ' | ' | ' |
Shares excluded from the calculation of diluted earnings per share | 418,000 | 299,000 | 358,000 | 278,000 |
Regulatory_Matters_Details
Regulatory Matters (Details) (Heritage Oaks Bank) | 1 Months Ended |
Apr. 30, 2012 | |
Heritage Oaks Bank | ' |
Company's and the Bank's actual regulatory capital amounts and ratios | ' |
Minimum Leverage Ratio (as a percent) | 10.00% |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Events, Mission Community Bancorp, USD $) | 0 Months Ended | |
In Millions, except Share data, unless otherwise specified | Oct. 21, 2013 | Oct. 18, 2013 |
Subsequent Events | Mission Community Bancorp | ' | ' |
Subsequent events | ' | ' |
Aggregate cash consideration | $8 | ' |
Aggregate stock consideration (in shares) | 7,541,353 | ' |
Total value of merger consideration | $56.40 | ' |
Closing price (in dollars per share) | ' | $6.42 |