Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Sep. 30, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | |
Common Class A [Member] | Common Class B [Member] | ||
Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'ROYAL BANCSHARES OF PENNSYLVANIA INC | ' | ' |
Entity Central Index Key | '0000922487 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 10,998,693 | 2,002,943 |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Document Type | '10-Q | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Consolidated_Balance_Sheets_un
Consolidated Balance Sheets (unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and due from banks | $10,274,000 | $10,621,000 |
Interest bearing deposits | 8,580,000 | 18,181,000 |
Total cash and cash equivalents | 18,854,000 | 28,802,000 |
Investment securities available-for-sale ("AFS") | 291,345,000 | 349,203,000 |
Other investment, at cost | 2,250,000 | 2,250,000 |
Federal Home Loan Bank ("FHLB") stock, at cost | 4,364,000 | 6,011,000 |
Loans and leases held for sale ("LHFS") | 0 | 1,572,000 |
Loans and leases held for investment ("LHFI") | 377,329,000 | 344,165,000 |
Less allowance for loan and lease losses | 14,679,000 | 17,261,000 |
Net loans and leases | 362,650,000 | 326,904,000 |
Bank owned life insurance | 14,986,000 | 14,585,000 |
Accrued interest receivable | 7,869,000 | 10,256,000 |
Other real estate owned ("OREO"), net | 13,906,000 | 13,435,000 |
Premises and equipment, net | 4,770,000 | 5,232,000 |
Other assets | 16,006,000 | 15,466,000 |
Total assets | 737,000,000 | 773,716,000 |
Deposits | ' | ' |
Non-interest bearing | 63,338,000 | 58,531,000 |
Interest bearing | 459,282,000 | 496,386,000 |
Total deposits | 522,620,000 | 554,917,000 |
Short-term borrowings | 14,000,000 | 0 |
Long-term borrowings | 97,994,000 | 108,333,000 |
Subordinated debentures | 25,774,000 | 25,774,000 |
Accrued interest payable | 2,471,000 | 3,760,000 |
Other liabilities | 22,019,000 | 22,517,000 |
Total liabilities | 684,878,000 | 715,301,000 |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Preferred stock, Series A perpetual, $1,000 liquidation value, 500,000 shares authorized, 30,407 shares issued and outstanding at September 30, 2013 and December 31, 2012 | 29,808,000 | 29,396,000 |
Additional paid in capital | 125,930,000 | 126,287,000 |
Accumulated deficit | -117,835,000 | -117,080,000 |
Accumulated other comprehensive loss | -5,610,000 | -142,000 |
Treasury stock - at cost, shares of Class A, 468,373 and 498,488 at September 30, 2013 and December 31, 2012, respectively | -6,550,000 | -6,971,000 |
Total Royal Bancshares of Pennsylvania, Inc. shareholders' equity | 48,808,000 | 54,555,000 |
Noncontrolling interest | 3,314,000 | 3,860,000 |
Total equity | 52,122,000 | 58,415,000 |
Total liabilities and shareholders' equity | 737,000,000 | 773,716,000 |
Common Class A [Member] | ' | ' |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Common stock | 22,863,000 | 22,863,000 |
Total equity | 22,863,000 | 22,863,000 |
Common Class B [Member] | ' | ' |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Common stock | 202,000 | 202,000 |
Total equity | $202,000 | $202,000 |
Consolidated_Balance_Sheets_un1
Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 30,407 | 30,407 |
Preferred stock, shares outstanding (in shares) | 30,407 | 30,407 |
Common Class A [Member] | ' | ' |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Common stock, par value (in dollars per share) | $2 | $2 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 11,431,638 | 11,431,638 |
Treasury stock, shares (in shares) | 468,373 | 498,488 |
Common Class B [Member] | ' | ' |
Royal Bancshares of Pennsylvania, Inc. equity: | ' | ' |
Common stock, par value (in dollars per share) | $0.10 | $0.10 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 2,020,499 | 2,020,499 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations - (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest income | ' | ' | ' | ' |
Loans and leases, including fees | $5,426,000 | $6,298,000 | $16,331,000 | $19,766,000 |
Investment securities available-for-sale | 1,528,000 | 1,453,000 | 4,103,000 | 5,196,000 |
Deposits in banks | 6,000 | 10,000 | 21,000 | 28,000 |
Total Interest Income | 6,960,000 | 7,761,000 | 20,455,000 | 24,990,000 |
Interest expense | ' | ' | ' | ' |
Deposits | 983,000 | 1,440,000 | 3,061,000 | 4,641,000 |
Short-term borrowings | 6,000 | 1,000 | 17,000 | 309,000 |
Long-term borrowings | 901,000 | 938,000 | 2,589,000 | 2,759,000 |
Total Interest Expense | 1,890,000 | 2,379,000 | 5,667,000 | 7,709,000 |
Net Interest Income | 5,070,000 | 5,382,000 | 14,788,000 | 17,281,000 |
Provision (credit) for loan and lease losses | 218,000 | 1,761,000 | -196,000 | 3,360,000 |
Net Interest Income after Provision (Credit) for Loan and Lease Losses | 4,852,000 | 3,621,000 | 14,984,000 | 13,921,000 |
Other income | ' | ' | ' | ' |
Net gains on sales of other real estate owned | 629,000 | 228,000 | 1,209,000 | 345,000 |
Gain on sale of premises and equipment | 526,000 | 0 | 1,204,000 | 0 |
Service charges and fees | 363,000 | 315,000 | 1,001,000 | 893,000 |
Gains on sales of loans and leases | 241,000 | 39,000 | 257,000 | 2,044,000 |
Income from bank owned life insurance | 134,000 | 139,000 | 401,000 | 414,000 |
Income related to real estate owned via equity investments | 0 | 18,000 | 0 | 56,000 |
Net (losses) gains on the sale of AFS investment securities | -1,000 | 225,000 | 69,000 | 384,000 |
Other income | 45,000 | 187,000 | 165,000 | 480,000 |
Total other-than-temporary impairment on investment securities | 0 | 0 | 0 | -859,000 |
Total Other Income | 1,937,000 | 1,151,000 | 4,306,000 | 3,757,000 |
Other expenses | ' | ' | ' | ' |
Employee salaries and benefits | 2,547,000 | 2,866,000 | 7,998,000 | 8,911,000 |
OREO expenses and impairment | 844,000 | 2,624,000 | 1,741,000 | 4,898,000 |
Professional and legal fees | 569,000 | 986,000 | 2,037,000 | 3,296,000 |
Occupancy and equipment | 566,000 | 499,000 | 1,682,000 | 1,619,000 |
Pennsylvania shares tax | 283,000 | 314,000 | 840,000 | 951,000 |
FDIC and state assessments | 253,000 | 287,000 | 781,000 | 778,000 |
Directors' fees | 138,000 | 95,000 | 356,000 | 304,000 |
Loan collection expenses | 130,000 | 133,000 | 408,000 | 326,000 |
Restructuring charges | 119,000 | 0 | 230,000 | 0 |
Loss contingency | 0 | 0 | 1,650,000 | 0 |
Impairment of loans held for sale | 0 | 856,000 | 153,000 | 856,000 |
Department of Justice fine | 0 | 0 | 0 | 2,000,000 |
Other operating expenses | 841,000 | 749,000 | 2,121,000 | 2,129,000 |
Total Other Expenses | 6,290,000 | 9,409,000 | 19,997,000 | 26,068,000 |
Income (Loss) Before Tax Benefit | 499,000 | -4,637,000 | -707,000 | -8,390,000 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net Income (Loss) | 499,000 | -4,637,000 | -707,000 | -8,390,000 |
Less net income (loss) attributable to noncontrolling interest | 157,000 | 175,000 | -364,000 | -759,000 |
Net income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | 342,000 | -4,812,000 | -343,000 | -7,631,000 |
Less Preferred stock Series A accumulated dividend and accretion | 520,000 | 511,000 | 1,553,000 | 1,525,000 |
Net loss to common shareholders | ($178,000) | ($5,323,000) | ($1,896,000) | ($9,156,000) |
Per common share data | ' | ' | ' | ' |
Net loss - basic and diluted (in dollars per share) | ($0.01) | ($0.40) | ($0.14) | ($0.69) |
Statements_of_Consolidated_Com
Statements of Consolidated Comprehensive Loss - (unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Statements of Consolidated Comprehensive Loss - (unaudited) [Abstract] | ' | ' | ' | ' | ||||
Net income (loss) | $499 | ($4,637) | ($707) | ($8,390) | ||||
Unrealized (losses) gains on investment securities: | ' | ' | ' | ' | ||||
Unrealized holding (losses) gains arising during period | -1,687 | 1,067 | -5,705 | 838 | ||||
Less adjustment for impaired investments | 0 | [1] | 0 | [1] | 0 | [1] | -558 | [1] |
Less reclassification adjustment for gains realized in net income (loss) | 0 | [2] | 147 | [2] | 46 | [2] | 250 | [2] |
Unrealized (losses) gains on investment securities | -1,687 | 920 | -5,751 | 1,146 | ||||
Unrecognized benefit obligation expense: | ' | ' | ' | ' | ||||
Less reclassification adjustment for amortization | -94 | [3] | -150 | [3] | -283 | [3] | -264 | [3] |
Other comprehensive (loss) income | -1,593 | 1,070 | -5,468 | 1,410 | ||||
Comprehensive loss | -1,094 | -3,567 | -6,175 | -6,980 | ||||
Less net income (loss) attributable to noncontrolling interest | 157 | 261 | -364 | -759 | ||||
Comprehensive loss attributable to Royal Bancshares of Pennsylvania, Inc. | ($1,251) | ($3,828) | ($5,811) | ($6,221) | ||||
[1] | Amounts are included in total other-than-temporary impairment on investment securities on the Consolidated Statements of Operations in total non-interest income. | |||||||
[2] | Amounts are included in net gains on the sale of available for sale investment securities on the Consolidated Statements of Operations in total non-interest income. | |||||||
[3] | Amounts are included in salaries and benefits on the Consolidated Statements of Operations in non-interest expense. |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (unaudited) (USD $) | Preferred Stock Series A [Member] | Common Class A [Member] | Common Class B [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||||
Balance at Dec. 31, 2011 | $28,878 | $22,723 | $208 | $126,245 | ($100,803) | $800 | ($6,971) | $4,865 | $75,945 |
Balance (in shares) at Dec. 31, 2011 | ' | 11,362 | 2,081 | ' | ' | ' | ' | ' | ' |
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | -7,631 | ' | ' | -759 | -8,390 |
Other comprehensive income (loss), net of reclassifications and taxes | ' | ' | ' | ' | ' | 1,410 | ' | ' | 1,410 |
Common stock conversion from Class B to Class A | ' | 17 | -1 | ' | -16 | ' | ' | ' | 0 |
Common stock conversion from Class B to Class A (in shares) | ' | 8 | -7 | ' | ' | ' | ' | ' | ' |
Accretion of discount on preferred stock | 385 | ' | ' | ' | -385 | ' | ' | ' | 0 |
Stock option expense | ' | ' | ' | 35 | ' | ' | ' | ' | 35 |
Balance at Sep. 30, 2012 | 29,263 | 22,740 | 207 | 126,280 | -108,835 | 2,210 | -6,971 | 4,106 | 69,000 |
Balance (in shares) at Sep. 30, 2012 | ' | 11,370 | 2,074 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 29,396 | 22,863 | 202 | 126,287 | -117,080 | -142 | -6,971 | 3,860 | 58,415 |
Balance (in shares) at Dec. 31, 2012 | ' | 11,432 | 2,020 | ' | ' | ' | ' | ' | ' |
Comprehensive loss | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ' | ' | ' | ' | -343 | ' | ' | -364 | -707 |
Other comprehensive income (loss), net of reclassifications and taxes | ' | ' | ' | ' | ' | -5,468 | ' | ' | -5,468 |
Distributions to non controlling interests | ' | ' | ' | ' | ' | ' | ' | -182 | -182 |
Accretion of discount on preferred stock | 412 | ' | ' | ' | -412 | ' | ' | ' | 0 |
Treasury shares issued for compensation | ' | ' | ' | -377 | ' | ' | 421 | ' | 44 |
Stock option expense | ' | ' | ' | 20 | ' | ' | ' | ' | 20 |
Balance at Sep. 30, 2013 | $29,808 | $22,863 | $202 | $125,930 | ($117,835) | ($5,610) | ($6,550) | $3,314 | $52,122 |
Balance (in shares) at Sep. 30, 2013 | ' | 11,432 | 2,020 | ' | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($343,000) | ($7,631,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 311,000 | 300,000 |
Stock compensation expense | 20,000 | 35,000 |
(Credit) provision for loan and lease losses | -196,000 | 3,360,000 |
Impairment charge for other real estate owned | 953,000 | 3,413,000 |
Net amortization of investment securities | 3,492,000 | 4,776,000 |
Net accretion on loans | -263,000 | -192,000 |
Net gains on sales of other real estate | -1,209,000 | -345,000 |
Proceeds from sales of loans and leases | 4,042,000 | 11,039,000 |
Gains on sales of loans and leases | -257,000 | -2,044,000 |
Net gains on sales of AFS investment securities | -69,000 | -384,000 |
Distribution from investments in real estate | 0 | -56,000 |
Net gains on sales of premises and equipment | -1,204,000 | 0 |
Income from bank owned life insurance | -401,000 | -414,000 |
Impairment of loans held for sale | 153,000 | 856,000 |
Impairment of AFS investment securities | 0 | 859,000 |
Changes in assets and liabilities: | ' | ' |
Decrease in accrued interest receivable | 2,387,000 | 4,570,000 |
(Increase) decrease in other assets | -540,000 | 5,059,000 |
(Decrease) increase in accrued interest payable | -1,289,000 | 2,482,000 |
(Decrease) increase in other liabilities | -498,000 | 1,916,000 |
Net cash provided by operating activities | 5,089,000 | 27,599,000 |
Cash flows from investing activities: | ' | ' |
Proceeds from maturities, calls and paydowns of AFS investment securities | 77,237,000 | 109,503,000 |
Proceeds from sales of AFS investment securities | 20,428,000 | 27,089,000 |
Purchase of AFS investment securities | -52,131,000 | -170,090,000 |
Net redemption of Federal Home Loan Bank stock | 1,647,000 | 1,558,000 |
Net (increase) decrease in loans | -41,150,000 | 57,308,000 |
Purchase of premises and equipment | -296,000 | -219,000 |
Proceeds from the sales of premises and equipment | 1,651,000 | 0 |
Distribution from investments in real estate | 0 | 56,000 |
Proceeds from sales of real estate owned | 6,213,000 | 6,360,000 |
Net cash provided by investing activities | 13,599,000 | 31,565,000 |
Cash flows from financing activities: | ' | ' |
Increase in demand and NOW accounts | 1,384,000 | 1,332,000 |
Decrease in money market and savings accounts | -17,726,000 | -3,461,000 |
Decrease in certificates of deposit | -15,955,000 | -2,537,000 |
Change in short-term borrowings | 14,000,000 | -54,218,000 |
Repayments of long-term borrowings | -50,339,000 | -336,000 |
Proceeds from long-term borrowings | 40,000,000 | 15,000,000 |
Net cash used in financing activities | -28,636,000 | -44,220,000 |
Net (decrease) increase in cash and cash equivalents | -9,948,000 | 14,944,000 |
Cash and cash equivalents at the beginning of the period | 28,802,000 | 24,506,000 |
Cash and cash equivalents at the end of the period | 18,854,000 | 39,450,000 |
Supplemental Disclosure | ' | ' |
Interest paid | 6,802,000 | 5,227,000 |
Transfers to other real estate owned | $6,428,000 | $10,492,000 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Note 1. Summary of Significant Accounting Policies | |
Basis of Financial Presentation | |
The accompanying unaudited consolidated financial statements include the accounts of Royal Bancshares of Pennsylvania, Inc. (“Royal Bancshares” or the “Company”) and its wholly-owned subsidiaries, Royal Investments of Delaware, Inc., including Royal Investments of Delaware, Inc.’s wholly-owned subsidiary, Royal Preferred, LLC, and Royal Bank America (“Royal Bank”), including Royal Bank’s subsidiaries, Royal Real Estate of Pennsylvania, Inc., Royal Investments America, LLC, RBA Property LLC, Narberth Property Acquisition LLC, Rio Marina LLC, and its three 60% ownership interests in Crusader Servicing Corporation, Royal Tax Lien Services, LLC, and Royal Bank America Leasing, LP. The two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). These consolidated financial statements reflect the historical information of the Company. All significant intercompany transactions and balances have been eliminated. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Applications of the principles in the Company’s preparation of the consolidated financial statements in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from those estimates. The interim financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
Reclassifications | |
Certain items in the 2012 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net loss for the periods presented herein as a result of reclassification. | |
Accounting Policies Recently Adopted and Pending Accounting Pronouncements | |
In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). Because of the significant differences in requirements under U.S. GAAP and IFRS, FASB and the International Accounting Standards Board (“IASB”) are issuing joint requirements that will enhance current disclosures. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. ASU 2011-11 is effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should provide the disclosures required by these amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 did not have a significant impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”) to improve the reporting of reclassifications out of accumulated comprehensive income. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements. ASU 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: | |
a. The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors | |
b. Any additional amount the reporting entity expects to pay on behalf of its co-obligors. | |
ASU 2013-04 also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. For public companies ASU 2013-04 is effective for reporting periods beginning after December 15, 2013. The adoption of ASU 2013-04 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). Currently there is diversity in practice in the presentation of unrecognized tax benefits. The aim of ASU 2013-11 is to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except for circumstances outlined in ASU 2013-11. For public companies ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-04 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
Regulatory_Matters_and_Signifi
Regulatory Matters and Significant Risks or Uncertainties | 9 Months Ended |
Sep. 30, 2013 | |
Regulatory Matters and Significant Risks or Uncertainties [Abstract] | ' |
Regulatory Matters and Significant Risks or Uncertainties | ' |
Note 2. Regulatory Matters and Significant Risks or Uncertainties | |
FDIC and Department of Banking Memorandum of Understanding | |
On July 15, 2009, Royal Bank agreed to enter into a Stipulation and Consent to the Issuance of an Order to Cease and Desist (the “Orders”) with each of the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (the “Department”). The material terms of the Orders were identical and required Royal Bank among other items to maintain, after establishing an adequate allowance for loan and lease losses, a ratio of Tier 1 capital to total assets (“leverage ratio”) equal to or greater than 8% and a ratio of qualifying total capital to risk-weighted assets (“total risk-based capital ratio”) equal to or greater than 12%. The FDIC and the Department replaced the Orders in the fourth quarter of 2011 with an informal agreement, known as a memorandum of understanding (“MOU”). Included in the MOU is the continued requirement of maintaining a leverage ratio equal to or greater than 8% and a total risk-based capital ratio equal to or greater than 12%. At September 30, 2013, based on capital levels calculated under regulatory accounting principles (“RAP”), Royal Bank’s Tier 1 leverage and total risk-based capital ratios were 9.39% and 15.70%, respectively. Please refer to “Note 11 – Regulatory Capital Requirements” to the consolidated financial statements. | |
Following the issuance of the Orders, management implemented plans to address key areas that were noted in the Orders. Management has reduced classified assets, delinquencies, commercial real estate concentrations, reliance on non-core deposits and wholesale funding sources and maintained capital ratios above required minimums which were all factors that contributed to replacing the Orders with the MOU. Management has continued to improve in each of these areas since the Orders were replaced with the MOU. | |
Federal Reserve Memorandum of Understanding | |
As previously disclosed, in March 2010, the Company agreed to enter into a written agreement (the “Federal Reserve Agreement”) with the Federal Reserve Bank of Philadelphia (the “Federal Reserve Bank”). In July 2013, the Board of Governors of the Federal Reserve System terminated the enforcement action under Federal Reserve Agreement, and it was replaced with an informal non-public agreement, an MOU, with the Federal Reserve Bank, effective July 17, 2013. Included in the MOU are certain continued reporting requirements and a requirement that the Company receive the prior approval of the Federal Reserve Bank prior to declaring or paying any dividends on the Company’s common stock, making interest payments related to the Company’s outstanding trust preferred securities or subordinate securities, incurring or guaranteeing certain debt with an original maturity date greater than one year, and purchasing or redeeming any shares of stock. The MOU will remain in effect until stayed, modified, terminated or suspended in writing by the Federal Reserve Bank. | |
Our success as a Company is dependent upon pursuing various alternatives in not only achieving the growth and expansion of our banking franchise but also in managing our day to day operations. The existence of the two MOUs may limit or impact our ability to pursue all previously available alternatives in the management of the Company. Our ability to retain existing retail and commercial customers as well as the ability to attract potentially new customers may be impacted by the existence of the MOUs. Additionally, the Company’s ability to raise capital in the current economic environment could be potentially limited or impacted as a result of the MOUs. Attracting new management talent is critical to the success of our business and could be potentially effected due to the existence of the MOUs. | |
Significant Losses | |
For the period 2008 through 2012, the Company recorded significant losses totaling $119.6 million which were primarily related to charge-offs on the loan and lease portfolio, impairment charges on investment securities, impairment charges on OREO, credit related expenses and the establishment of a deferred tax valuation allowance. For the third quarter of 2013, the Company recorded net income of $342,000 compared to a net loss of $4.8 million for the comparable period in 2012. The quarter over quarter improvement was mainly related to a $2.6 million decrease in credit related expenses, a $1.5 million decline in provision for loan and lease losses, and a $526,000 gain on the sale of premises and equipment, a parking lot in Philadelphia. For the nine months ended September 30, 2013, the Company recorded a net loss of $343,000 compared to a net loss of $7.6 million for the same period in 2012. The reduction in net loss was mainly related to a $3.8 million decrease in credit related expenses, $3.6 million decline in provision for loan and lease losses, and a $1.3 million decline in professional and legal fees, which were partially offset by a decrease of $1.8 million in gains on the sale of loans and leases. In addition to reducing the total shareholders’ equity, the continued losses and negative retained earnings impacts the Company’s ability to pay cash dividends to its shareholders now and in future years. | |
Credit Quality | |
Adverse economic conditions in our specific market areas and decreases in real estate property values due to the nature of our loan portfolio in particular had affected the ability of customers to repay their loans and impacted our financial condition and results of operations. The financial services and real estate industries were hit particularly hard during the “Great Recession”. As a result the Company’s loan and investment portfolios were directly affected. The Company’s commercial real estate loans, including construction and land development loans, realized a decline in the collateral values, and a reduction in the borrowers’ ability to meet the payment terms of their loans due to reduced cash flow. Further declines in collateral values and borrowers’ liquidity with sustained unemployment at current levels may lead to additional increases in foreclosures, delinquencies and customer bankruptcies. The Company is less able than a larger institution to spread the risks of unfavorable local economic conditions across a large number of more diverse economies. | |
The Company had non-performing loans of $13.5 million and $23.0 million at September 30, 2013 and December 31, 2012, respectively. The Company recorded $837,000 and $3.2 million in charge-offs and write-downs for the three and nine months ended September 30, 2013, respectively compared to $2.9 million and $3.7 million in charge-offs and write-downs for the comparable periods of 2012, respectively. OREO balances were $13.9 million at September 30, 2013 and $13.4 million at December 31, 2012. | |
Royal Bank was successful in reducing net classified loans, which includes LHFS and OREO from $51.8 million at December 31, 2012 to $42.1 million at September 30, 2013. Royal Bank’s delinquent loans held for investment (30 to 90 days) amounted to $5.1 million at September 30, 2013 versus $4.6 million at December 31, 2012. Material advances on any classified or delinquent loan are to be approved by the Board of Directors and determined to be in Royal Bank’s best interest. The Company has restructured the investment portfolio to reduce credit risk by selling corporate debt securities and equity securities and replacing their maturities with U.S. government issued or sponsored securities. Royal Bank recorded $859,000 in other-than-temporary-impairment (“OTTI”) losses during the nine months ended September 30, 2012 compared to $0 for the comparable period in 2013. | |
Commercial Real Estate Concentrations | |
As mentioned previously the adverse economic conditions primarily impacted the real estate secured loan portfolio. Commercial real estate and construction and development loans are often riskier and tend to have significantly larger balances than home equity loans or residential mortgage loans to individuals. While the Company believes that the commercial real estate concentration risk is mitigated by diversification among the types and characteristics of real estate collateral properties, sound underwriting practices, and ongoing portfolio monitoring and market analysis, the repayments of these loans usually depend on the profitable operation of a business or the sale of the underlying property. As a result, these loans are more likely to be unfavorably affected by adverse conditions in the real estate market or the economy in general, which may result in increasing levels of loan charge-offs and non-performing assets and the reduction of earnings. When we take collateral in foreclosures and similar proceedings, we are required to mark the related asset to the then fair market value of the collateral, which may ultimately result in a loss. It is possible that Royal Bank may be required to maintain higher levels of capital than it would be otherwise be expected to maintain as a result of the Bank’s commercial real estate loans, which may require the Company to obtain additional capital. | |
Commercial real estate, multi-family and construction and land development loans held for investment were $209.5 million at September 30, 2013 comprising 56% of total loans compared to $216.1 million or 63% of total loans at December 31, 2012. Based on capital levels calculated under U.S. GAAP and RAP, Royal Bank does not have a concentration of commercial real estate loans as defined in the joint agency “Guidance on Concentrations in Commercial Real Estate Lending, Sound Risk Management Practices” issued on December 12, 2006. Please see discussion in “Note 11 – Regulatory Capital Requirements” to the Consolidated Financial Statements. | |
Liquidity and Funds Management | |
Royal Bank has limited capacity to borrow additional funds in the event it is needed for liquidity purposes. However, Royal Bank has continued to maintain liquidity measures that are well in excess of the target levels. During the third quarter, the FHLB released Royal Bank from the over collateralized delivery requirement of 105% subject to reevaluation on a quarterly basis. The ability to borrow additional funds is based on the amount of collateral that is available to be pledged. As of September 30, 2013, Royal Bank had $20.4 million of available borrowing capacity at the FHLB as a result of excess collateral that has been pledged. In addition at September 30, 2013, Royal Bank had $138.3 million in unpledged agency securities that were available to be pledged as collateral if needed and $17.4 million in cash on hand. Royal Bank also has limited availability to borrow from the Federal Reserve Discount Window, which was $7.8 million at September 30, 2013, and was based on collateral pledged. | |
At September 30, 2013, the liquidity to deposits ratio was 37.6% compared to Royal Bank’s 12% policy target and the liquidity to total liabilities ratio was 28.7% compared to Royal Bank’s 10% policy target. Borrowings were $112.0 million and $108.3 million at September 30, 2013 and December 31, 2012, respectively. | |
The Company also has unfunded pension plan obligations, which potentially could impact liquidity, of $16.6 million as of September 30, 2013. The Company plans to fund the pension plan obligations through existing Company owned life insurance policies. | |
Dividend and Interest Restrictions | |
Due to the MOU, our ability to obtain lines of credit, to receive attractive collateral treatment from funding sources, and to pursue all attractive funding alternatives in this current low interest rate environment could be impacted and thereby limit liquidity alternatives. On August 13, 2009, the Company’s Board determined to suspend regular quarterly cash dividends on the $30.4 million in Series A Preferred Stock and to suspend interest payments on the $25.8 million in trust preferred securities. As of September 30, 2013, the Series A Preferred stock dividend in arrears was $7.2 million and has not been recognized in the consolidated financial statements. During the third quarter of 2013, the Company received approval from the Federal Reserve Bank to pay the $3.1 million interest payment in arrears on the trust preferred securities. On September 16, 2013, the Company became current on the interest payments on the trust preferred securities which included an interest penalty of $174,000. The Company believes the decision to suspend the preferred cash dividends will better support the liquidity position of Royal Bank. | |
At September 30, 2013, as a result of significant losses within Royal Bank, the Company had negative retained earnings and therefore would not have been able to declare and pay any cash dividends. Royal Bank must receive prior approval from the FDIC and the Department before declaring and paying a dividend to the Company. Under the Federal Reserve MOU the Company may not declare or pay any dividends without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. | |
Capital Adequacy | |
In connection with a prior bank regulatory examination, the FDIC concluded, based upon its interpretation of the Consolidated Reports of Condition and Income (the “Call Report”) instructions and under RAP, that income from Royal Bank’s tax lien business should be recognized on a cash basis, not an accrual basis. Royal Bank’s current accrual method is in accordance with U.S. GAAP. Royal Bank disagrees with the FDIC’s conclusion and filed the Call Report for September 30, 2013 and the previous twelve quarters in accordance with U.S. GAAP. However, the change in the manner of revenue recognition for the tax lien business for regulatory accounting purposes affects Royal Bank’s and potentially the Company’s capital ratios as disclosed in “Note 11 - Regulatory Capital Requirements” to the Consolidated Financial Statements. Royal Bank is in discussions with the FDIC to resolve the matter. | |
Under the MOU, Royal Bank must maintain a minimum Tier 1 leverage ratio and a minimum total risk-based capital ratio of 8% and 12%, respectively. At September 30, 2013, based on capital levels calculated under RAP, Royal Bank’s Tier 1 leverage and total risk-based capital ratios were 9.39% and 15.70%, respectively. | |
Department of Justice Investigation (“DOJ”) | |
Royal Bank holds a 60% equity interest in each of CSC and RTL. The Company acquired its ownership interest in CSC in 2001. CSC and RTL acquired, through public auction, delinquent tax liens in various jurisdictions thereby assuming a superior lien position to most other lien holders, including mortgage lien holders. On March 4, 2009, each of CSC and RTL received grand jury subpoenas issued by the U.S. District Court for New Jersey (“Court”) upon application of the Antitrust Division of the United States DOJ. On February 23, 2012, the former President of CSC and RTL entered a plea of guilty to one count of conspiring to rig bids at certain auctions for tax liens in New Jersey from 1998 until the spring of 2009. On September 26, 2012, as a result of the former President’s guilty plea and pursuant to a plea agreement with the DOJ, CSC entered a guilty plea in the United States District Court for the District of New Jersey to one count of conspiracy to commit bid-rigging at certain auctions for tax liens in New Jersey. Under the terms of the plea agreement, which the Court accepted at the September 26, 2012 plea hearing, the DOJ agreed not to bring further criminal charges against CSC and not to bring criminal charges against RTL, or any current or former director, officer, or employee of CSC and/or RTL, for any act or offense committed prior to the date of the plea agreement that was in furtherance of any agreement to rig bids at municipal tax lien sales or auctions in the State of New Jersey. The former President of CSC and RTL and any person who bid at any time at a tax lien auction on behalf of CSC and/or RTL are excluded from this non-prosecution protection. At the sentencing hearing held in December 2012, the sentencing judge agreed with the DOJ’s recommendation and imposed a $2.0 million fine for CSC, which had been previously recognized in the Company’s consolidated financial statements. After adjusting for the noncontrolling interest, the Company’s 60% share of the fine amounted to $1.2 million. | |
Additionally a number of lawsuits have been filed in the Superior Court of New Jersey against the former President of CSC and RTL, CSC, RTL, Royal Bancshares of Pennsylvania and certain other parties on behalf of a proposed class of taxpayers who became delinquent in paying their municipal tax obligations. These lawsuits allege violations of the New Jersey Antitrust Act and unjust enrichment, and seek treble damages, attorney fees and injunctive relief. CSC, RTL and Royal Bancshares removed these cases to the U.S. District Court for the District of New Jersey. On June 12, 2012, the Court entered an Order consolidating for pretrial purposes the above actions with all subsequently filed or transferred related actions, collectively referred to as In re New Jersey Tax Sale Certificates Antitrust Litigation. On October 22, 2012, the Court appointed two law firms as interim class counsel and another law firm as liaison class counsel and further ordered appointed counsel to file a master complaint for the consolidated action. On December 21, 2012, plaintiffs filed a Consolidated Master Class Action Complaint (the “Complaint”) against numerous defendants, including the former President of CSC and RTL, Royal Bancshares of Pennsylvania, Inc., Royal Bank America, CSC and RTL. The Company filed a motion to dismiss the Complaint on March 8, 2013, which is currently pending before the Court. During the second quarter of 2013, the Company accrued a loss contingency of $1.65 million for a potential settlement with the plaintiffs. After adjusting for the noncontrolling interest, the Company’s 60% share of the loss contingency amounted to $990,000. Subsequently, Royal Bancshares of Pennsylvania, Inc., Royal Bank America, CSC, and RTL reached a settlement agreement with plaintiffs to settle the litigation for $1.65 million and other terms and conditions, including an opportunity for members of the proposed settlement class whose tax liens are currently held by CSC or RTL to redeem those liens for a one-time cash payment equaling 85% of the redemption amount by making such payment within 35 days of the date of written notice. The proposed settlement class does not include, and therefore the offer to redeem does not apply to, tax liens acquired at 0% interest or at a premium. The settlement is subject to Court approval after notice and a hearing. Members of the proposed settlement class will have an opportunity to object to the proposed settlement or opt-out. | |
Company Plans and Strategy | |
The Company has enhanced the Board through the addition of experienced directors with diverse backgrounds. During the first quarter of 2012, the Board elected a Lead Independent Director to further improve corporate governance by serving as a liaison between the Chairman of the Board, management, and the independent directors. During 2012, Royal Bank hired a new Chief Lending Officer (“CLO”) who has significant experience in commercial and consumer lending with a larger bank within the Philadelphia market. On December 18, 2012 the Company announced F. Kevin Tylus as President and CEO of Royal Bank. On February 20, 2013, the Company announced that Mr. Tylus was appointed President, CEO and a Class III member of the Board of Directors of the Company. Former CEO, Robert Tabas, remains as Chairman of the Board of Directors. | |
In order to meet the requirements in the previous Orders, the previous Federal Reserve Agreement, and the current MOUs, management adopted a strategy to deleverage the balance sheet in order to maintain capital ratios at required regulatory minimums. The Board and management remain committed to meeting the capital level requirements for Royal Bank as set forth in the FDIC MOU. As a result, the Board and management have developed a contingency plan to maintain capital ratios at required levels which may include selling interest-earning assets. This strategy also assisted in reducing the level of classified assets by giving management the ability to actively pursue exit strategies on loans and OREO which were at historically high levels. The deleveraging was largely accomplished by the continued reduction of brokered deposits from $89.1 million at December 31, 2010 to $0 as of September 30, 2013. In addition, borrowings were reduced by $43.0 million during the same period. The Company’s strategic plan includes improving the overall level of credit quality, maintaining reduced credit risk within the investment portfolio, reducing the overall level of expenses, and returning to profitability. | |
During the past few years, the Company recorded significant impairment charges and carrying costs on non-accrual loans and OREO which has weighed heavily on earnings and was the largest contributing factor to the Company’s losses. While sustaining capital ratios above the required minimum, the Company has made progress in improving credit quality, reducing the CRE concentration, strengthening the Board and maintaining liquidity. As a result of the decline in level of classified assets, there has been a corresponding reduction in the provision for loan and lease losses and the overall carrying costs associated with classified assets. The deleveraging of the balance sheet has also reduced earning assets which has resulted in a decline in net interest income and has had a significant impact on overall earnings. To improve net interest margin and net interest income, management is diligently working on changing the mix of earning assets and interest-bearing liabilities. In the event further deleveraging is necessary to maintain the required capital levels, net interest income would be negatively impacted. | |
The Company is focused on transitioning Royal Bank into a more traditional community bank with the branches becoming selling centers and not just service centers. Traditional consumer products such as home equity loans and a new mobile banking application are part of the expanded product offerings. Recently the Company launched a new website, which takes advantage of the latest technologies and trends in web development, including responsive design which reformats content to fit any screen, improving both aesthetics and user experience. Visitors will also find a renewed emphasis on our most important products and services, including quick links to key revenue driving product lines, our secure home equity application and our powerful online and mobile banking tools. During the fourth quarter of 2013, the Company expects to complete the hiring process, which includes regulatory approval, of an experienced retail executive who will expand retail sales capabilities, refresh the branch footprint and achieve further penetration of our recently-expanded retail and web-based products. | |
The Company has developed a management Profitability Improvement Plan (the “Plan”) to generate steady revenue growth, expense management and gain operational efficiencies. Specific initiatives of the Plan effectuated in the first three quarters of 2013 focused on adjustments to personnel of the Company and discretionary expenses. These efforts, which included a 21% reduction in workforce and an annualized reduction of approximately 10% of discretionary expenses, were implemented and enhanced day-to-day operations and the ability of the Company to drive new revenue. The Company has reorganized and relocated certain personnel to improve departmental synergies and better align managers and staff so they can work together in cohesive teams to accomplish these objectives. The Company also finalized a unique opportunity to reduce employee expenses as eight individuals became employees of a local company that provides servicing of the remaining tax lien and non-performing assets portfolios. Those portfolios continue to diminish per the Company's strategic plan. This outsourcing arrangement enables the Company to focus on the expansion of its core banking products while de-emphasizing legacy non-core activity such as tax liens. Under the Plan, the Company has developed a facilities rationalization plan as part of the overall strategic goal to return to profitability. During 2013, the Company sold its storage facility site and a parking lot in Philadelphia and a building in Narberth that housed the training center. The Company recorded gains of $1.2 million as a result of these sales. During 2013, Royal Bank consolidated the leased Henderson Road office between the King of Prussia and Bridgeport offices and consolidated the 15th Street branch office into the Walnut Street branch office, which are both located in Center City Philadelphia. These branch consolidations had minimal effect on deposit levels. As a result of the reduction in workforce and the vacating of leased real estate, the Company recorded $230,000 in restructuring charges directly related to one-time employee termination benefits and an effective termination of a lease. The Company is negotiating the relocations of approximately three branches to more attractive facilities and nearby locations over the next six to eight months. The Company has targeted to have the Plan fully implemented by the end of 2013. Through the reorganizing of the lending and credit departments during the last half of 2012, Royal Bank was able to increase LHFI $33.1 million from $344.2 million at December 31, 2012 to $377.3 million at September 30, 2013. All of these plans are focused on repositioning the Company for 2013 and beyond. | |
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Note 3. Investment Securities | |||||||||||||||||||||||||
The carrying value and fair value of investment securities AFS at September 30, 2013 are as follows: | |||||||||||||||||||||||||
Included in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss (AOCL) | |||||||||||||||||||||||||
Gross unrealized losses | |||||||||||||||||||||||||
(In thousands) | Amortized | Gross | Non-OTTI | Non-credit | Fair value | ||||||||||||||||||||
cost | unrealized | in AOCL | related OTTI | ||||||||||||||||||||||
gains | in AOCL | ||||||||||||||||||||||||
U.S. government agencies | $ | 74,355 | $ | 9 | $ | (4,613 | ) | $ | - | $ | 69,751 | ||||||||||||||
Mortgage-backed securities-residential | 32,460 | 340 | (961 | ) | - | 31,839 | |||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 164,729 | 2,876 | (1,647 | ) | - | 165,958 | |||||||||||||||||||
Non-agency | 4,566 | - | - | - | 4,566 | ||||||||||||||||||||
Corporate bonds | 9,777 | 30 | (214 | ) | - | 9,593 | |||||||||||||||||||
Municipal bonds | 5,514 | - | (186 | ) | - | 5,328 | |||||||||||||||||||
Other securities | 3,489 | 920 | (147 | ) | - | 4,262 | |||||||||||||||||||
Common stocks | 33 | 15 | - | - | 48 | ||||||||||||||||||||
Total available for sale | $ | 294,923 | $ | 4,190 | $ | (7,768 | ) | $ | - | $ | 291,345 | ||||||||||||||
The carrying value and fair value of investment securities AFS at December 31, 2012 are as follows: | |||||||||||||||||||||||||
Included in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss (AOCL) | |||||||||||||||||||||||||
Gross unrealized losses | |||||||||||||||||||||||||
(In thousands) | Amortized | Gross | Non-OTTI | Non-credit | Fair value | ||||||||||||||||||||
cost | unrealized | in AOCL | related OTTI | ||||||||||||||||||||||
gains | in AOCL | ||||||||||||||||||||||||
U.S. government agencies | $ | 66,371 | $ | 151 | $ | (78 | ) | $ | - | $ | 66,444 | ||||||||||||||
Mortgage-backed securities-residential | 30,038 | 518 | (47 | ) | - | 30,509 | |||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 229,556 | 5,031 | (611 | ) | - | 233,976 | |||||||||||||||||||
Non-agency | 1,007 | 4 | - | - | 1,011 | ||||||||||||||||||||
Corporate bonds | 7,477 | 32 | (72 | ) | - | 7,437 | |||||||||||||||||||
Municipal bonds | 5,645 | - | (30 | ) | - | 5,615 | |||||||||||||||||||
Other securities | 3,752 | 520 | (108 | ) | - | 4,164 | |||||||||||||||||||
Common stocks | 33 | 14 | - | - | 47 | ||||||||||||||||||||
Total available for sale | $ | 343,879 | $ | 6,270 | $ | (946 | ) | $ | - | $ | 349,203 | ||||||||||||||
The amortized cost and fair value of investment securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
(In thousands) | Amortized | Fair value | |||||||||||||||||||||||
cost | |||||||||||||||||||||||||
Within 1 year | $ | 15,906 | $ | 14,911 | |||||||||||||||||||||
After 1 but within 5 years | 6,443 | 6,394 | |||||||||||||||||||||||
After 5 but within 10 years | 34,864 | 32,909 | |||||||||||||||||||||||
After 10 years | 32,433 | 30,458 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 32,460 | 31,839 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 164,729 | 165,958 | |||||||||||||||||||||||
Non-agency | 4,566 | 4,566 | |||||||||||||||||||||||
Total available for sale debt securities | 291,401 | 287,035 | |||||||||||||||||||||||
No contractual maturity | 3,522 | 4,310 | |||||||||||||||||||||||
Total available for sale securities | $ | 294,923 | $ | 291,345 | |||||||||||||||||||||
Proceeds from the sales of investments AFS during the three months ended September 30, 2013 and 2012 were $0 and $15.2 million, respectively. Proceeds from the sales of investments AFS for the nine months ended September 30, 2013 and 2012 were $20.4 million and $27.1 million, respectively. The following table summarizes gross gains and losses realized on the sale of securities recognized in earnings in the periods indicated: | |||||||||||||||||||||||||
For the three months | For the nine months | ||||||||||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Gross realized gains | $ | - | $ | 225 | $ | 181 | $ | 565 | |||||||||||||||||
Gross realized losses | (1 | ) | - | (112 | ) | (181 | ) | ||||||||||||||||||
Net realized (losses) gains | $ | (1 | ) | $ | 225 | $ | 69 | $ | 384 | ||||||||||||||||
The Company evaluates securities for OTTI at least on a quarterly basis. The Company assesses whether OTTI is present when the fair value of a security is less than its amortized cost. All investment securities are evaluated for OTTI under FASB ASC Topic 320, “Investments-Debt & Equity Securities” (“ASC Topic 320”). The non-agency collateralized mortgage obligations that are rated below AA are evaluated under FASB ASC Topic 325 Subtopic 40, “Beneficial Interests in Securitized Financial Assets” under FASB ASC Topic 325, “Investments-Other”. In determining whether OTTI exists, management considers numerous factors, including but not limited to: (1) the length of time and the extent to which the fair value is less than the amortized cost, (2) the Company’s intent to hold or sell the security, (3) the financial condition and results of the issuer including changes in capital, (4) the credit rating of the issuer, (5) analysts’ earnings estimate, (6) industry trends specific to the security, and (7) timing of debt maturity and status of debt payments. | |||||||||||||||||||||||||
Under ASC Topic 320, OTTI is considered to have occurred with respect to debt securities (1) if an entity intends to sell the security; (2) if it is more likely than not an entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of the expected cash flows is not sufficient to recover the entire amortized cost basis. In addition, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell or will more likely than not be required to sell the security. If an entity intends to sell the security or will be required to sell the security, the OTTI shall be recognized in earnings equal to the entire difference between the fair value and the amortized cost basis at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before the recovery of its amortized cost basis, the OTTI shall be separated into two amounts, the credit-related loss and the noncredit-related loss. The credit-related loss is based on the present value of the expected cash flows and is recognized in earnings. The noncredit-related loss is based on other factors such as illiquidity and is recognized in other comprehensive income. | |||||||||||||||||||||||||
The following table summarizes OTTI losses on securities recognized in earnings in the periods indicated: | |||||||||||||||||||||||||
For the three months | For the nine months | ||||||||||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Other securities | $ | - | $ | - | $ | - | $ | 859 | |||||||||||||||||
Total OTTI charges | $ | - | $ | - | $ | - | $ | 859 | |||||||||||||||||
The following table presents a roll-forward of the balance of credit-related impairment losses on debt securities held at September 30, 2013 and 2012 for which a portion of OTTI was recognized in other comprehensive income: | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Balance at January 1, | $ | 173 | $ | 173 | |||||||||||||||||||||
Reductions for securities sold during the period (realized) | (173 | ) | - | ||||||||||||||||||||||
Balance at September 30, | $ | - | $ | 173 | |||||||||||||||||||||
The tables below indicate the length of time individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
30-Sep-13 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(In thousands) | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | |||||||||||||||||||
U.S. government agencies | $ | 65,743 | $ | (4,613 | ) | $ | - | $ | - | $ | 65,743 | $ | (4,613 | ) | |||||||||||
Mortgage-backed securities-residential | 23,156 | (961 | ) | - | - | 23,156 | (961 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 56,816 | (1,647 | ) | - | - | 56,816 | (1,647 | ) | |||||||||||||||||
Corporate bonds | 5,875 | (203 | ) | 988 | (11 | ) | 6,863 | (214 | ) | ||||||||||||||||
Municipal bonds | 5,328 | (186 | ) | - | - | 5,328 | (186 | ) | |||||||||||||||||
Other securities | 297 | (147 | ) | - | - | 297 | (147 | ) | |||||||||||||||||
Total available-for-sale | $ | 157,215 | $ | (7,757 | ) | $ | 988 | $ | (11 | ) | $ | 158,203 | $ | (7,768 | ) | ||||||||||
31-Dec-12 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(In thousands) | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | |||||||||||||||||||
U.S. government agencies | $ | 23,818 | $ | (78 | ) | $ | - | $ | - | $ | 23,818 | $ | (78 | ) | |||||||||||
Mortgage-backed securities-residential | 7,280 | (47 | ) | - | - | 7,280 | (47 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 44,937 | (592 | ) | 3,975 | (19 | ) | 48,912 | (611 | ) | ||||||||||||||||
Corporate bonds | 2,165 | (13 | ) | 941 | (59 | ) | 3,106 | (72 | ) | ||||||||||||||||
Municipal bonds | 4,597 | (21 | ) | 882 | (9 | ) | 5,479 | (30 | ) | ||||||||||||||||
Other securities | 289 | (38 | ) | 255 | (70 | ) | 544 | (108 | ) | ||||||||||||||||
Total available-for-sale | $ | 83,086 | $ | (789 | ) | $ | 6,053 | $ | (157 | ) | $ | 89,139 | $ | (946 | ) | ||||||||||
The AFS portfolio had gross unrealized losses of $7.8 million and $946,000 at September 30, 2013 and December 31, 2012, respectively. The considerable increase in the gross unrealized loss was directly impacted by increases of $4.5 million, $1.0 million and $914,000 in the gross unrealized loss on government agency debt securities, MBS, and CMOs, respectively. These securities carry lower coupons and their market value was negatively impacted by a 49% increase in the 10-year Treasury yield from 1.76% at December 31, 2012 to 2.62% at September 30, 2013. The Company has not recorded OTTI charges in 2013. For the nine months ended September 30, 2012, the Company recorded $859,000 in OTTI on a private equity real estate fund due to the fund’s financial performance. In determining the Company’s intent not to sell and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, management considers the following factors: current liquidity and availability of other non-pledged assets that permits the investment to be held for an extended period of time but not necessarily until maturity, capital planning, and any specific investment committee goals or guidelines related to the disposition of specific investments. | |||||||||||||||||||||||||
Common stocks: As of September 30, 2013, the Company owns common stock of two financial institutions with a total fair value of $48,000 and an unrealized gain of $15,000. During the first quarter of 2012 the Company sold one common stock investment and recorded a gain of $112,000. | |||||||||||||||||||||||||
For all debt security types discussed below the fair value is based on prices provided by brokers and safekeeping custodians with the exception of trust preferred securities which are described below. | |||||||||||||||||||||||||
U.S. government-sponsored agencies (“US Agencies”): As of September 30, 2013, the Company had 22 callable U.S. Agencies with a fair value of $65.7 million and gross unrealized losses of $4.6 million. All of these U.S. Agencies have been in an unrealized loss position for twelve months or less and are callable at par. Management believes that the unrealized loss on these debt securities is a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. The Company does not intend to sell the securities before recovery of the cost basis and will not more likely than not be required to sell these securities before recovery of the cost basis. Therefore, management has determined that these 22 securities are not other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government sponsored enterprises: As of September 30, 2013, the Company had ten mortgage-backed securities with a fair value of $23.2 million and gross unrealized losses of $961,000. All of these mortgage-backed securities have been in an unrealized loss position for twelve months or less. The unrealized loss is attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on its assessment of these factors, management believes that the unrealized losses on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. The Company does not intend to sell these securities before recovery of their cost basis and will not more likely than not be required to sell these securities before recovery of their cost basis. Therefore, management has determined that these securities are not other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||
U.S. government issued or sponsored collateralized mortgage obligations (“Agency CMOs”): As of September 30, 2013, the Company had sixteen Agency CMOs with a fair value of $56.8 million and gross unrealized losses of $1.6 million. All of these Agency CMOs have been in an unrealized loss position for twelve months or less. The unrealized loss is attributable to a combination of factors, including relative changes in interest rates since the time of purchase. The contractual cash flows for these securities are guaranteed by U.S. government agencies and U.S. government-sponsored enterprises. Based on its assessment of these factors, management believes that the unrealized losses on these debt securities are a function of changes in investment spreads and interest rate movements and not changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. The Company does not intend to sell these securities before recovery of their cost basis and will not more likely than not be required to sell these securities before recovery of their cost basis. Therefore, management has determined that these securities are not other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||
Corporate bonds: As of September 30, 2013, the Company had seven corporate bonds with a fair value of $6.9 million and gross unrealized losses of $214,000. Six bonds have been in an unrealized loss position for twelve months or less. The one bond that has been in an unrealized loss position for more than twelve months has a fair market value of $988,000 and an unrealized loss of $11,000 at September 30, 2013. All seven bonds are above investment grade. The Company’s unrealized losses in investments in corporate bonds represent interest rate risk and not credit risk of the underlying issuers. As previously mentioned management also considered (1) the length of time and the extent to which the fair value is less than the amortized cost, (2) the Company’s intent to hold or sell the security, (3) the financial condition and results of the issuer including changes in capital, (4) the credit rating of the issuer, (5) analysts’ earnings estimate, (6) industry trends specific to the security, and (7) timing of debt maturity and status of debt payments. Management utilized discounted cash flow analysis based upon the credit ratings of the securities, liquidity risk premiums, and the recent corporate spreads for similar securities as required under ASC Topic 320 to determine the credit risk component of the corporate bonds. Based on these analyses, there was no credit-related loss on the seven bonds. Because the Company does not intend to sell the corporate bonds and it is not more likely than not that the Company will be required to sell the bonds before recovery of their amortized cost basis, which may be maturity, the Company does not consider these bonds to be other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||
Municipal bonds: As of September 30, 2013, the Company had seven municipal bonds with a fair value of $5.3 million and gross unrealized losses of $186,000. The municipal bonds have been in an unrealized loss position for twelve months or less and are investment grade. Because the Company does not intend to sell the bonds and it is not more likely than not that the Company will be required to sell the bonds before recovery of its amortized cost basis, which may be maturity, the Company does not consider the bonds to be other-than-temporarily impaired at September 30, 2013. | |||||||||||||||||||||||||
Other securities: As of September 30, 2013, the Company had seven investments in private equity funds which were predominantly invested in real estate. In determining whether or not OTTI exists, the Company reviews the funds’ financials, asset values, and its near-term projections. At September 30, 2013, two of the private equity funds had a combined fair value of $297,000 and a gross unrealized loss of $147,000. OTTI charges were recorded in prior periods on these two funds. These two private equity funds have been in an unrealized loss position for more than twelve months. The Company receives capital distributions on these funds. Management concluded that there was no additional impairment on these two funds as of September 30, 2013. | |||||||||||||||||||||||||
The Company will continue to monitor these investments to determine if the discounted cash flow analysis, continued negative trends, market valuations or credit defaults result in impairment that is other-than-temporary. | |||||||||||||||||||||||||
Loans_and_Leases
Loans and Leases | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans and Leases [Abstract] | ' | ||||||||||||||||||||||||||||||||
Loans and Leases | ' | ||||||||||||||||||||||||||||||||
Note 4. Loans and Leases | |||||||||||||||||||||||||||||||||
Major classifications of LHFI are as follows: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 158,223 | $ | 167,115 | |||||||||||||||||||||||||||||
Construction and land development | 39,594 | 37,215 | |||||||||||||||||||||||||||||||
Commercial and industrial | 86,401 | 40,560 | |||||||||||||||||||||||||||||||
Multi-family | 11,678 | 11,756 | |||||||||||||||||||||||||||||||
Residential real estate | 24,830 | 24,981 | |||||||||||||||||||||||||||||||
Leases | 40,408 | 37,347 | |||||||||||||||||||||||||||||||
Tax certificates | 15,364 | 24,569 | |||||||||||||||||||||||||||||||
Consumer | 831 | 1,139 | |||||||||||||||||||||||||||||||
Total gross loans | $ | 377,329 | $ | 344,682 | |||||||||||||||||||||||||||||
Deferred fees, net* | - | (517 | ) | ||||||||||||||||||||||||||||||
Total loans and leases | $ | 377,329 | $ | 344,165 | |||||||||||||||||||||||||||||
*For the 2013 period net deferred fees were allocated among the loan types. | |||||||||||||||||||||||||||||||||
The Company grants commercial and real estate loans, including construction and land development loans primarily in the greater Philadelphia metropolitan area as well as selected locations throughout the mid-Atlantic region. The Company also has participated with other financial institutions in selected construction and land development loans outside our geographic area. The Company has a concentration of credit risk in commercial real estate and construction and land development loans at September 30, 2013. A substantial portion of its debtors’ ability to honor their contracts is dependent upon the housing sector specifically and the economy in general. | |||||||||||||||||||||||||||||||||
Loans and leases are classified as LHFI when management has the intent and ability to hold the loan or lease for the foreseeable future or until maturity or payoff. LHFI are stated at their outstanding unpaid principal balances, net of an allowance for loan and leases losses (“ALLL”) and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. | |||||||||||||||||||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company had $0 and $1.6 million; respectively, in non-accrual LHFS. During the third quarter of 2013, the Company transferred a $2.3 million non-accrual loan from LHFI to LHFS at the lower of cost or fair market value using expected net sales proceeds. For the nine months ended September 30, 2013, the Company recording impairment charges of $153,000. During the third quarter of 2013, the Company sold two loans and received proceeds of $3.9 million and recorded gains of $241,000 as a result of these sales. | |||||||||||||||||||||||||||||||||
The Company classifies its leases as finance leases, in accordance with FASB ASC Topic 840, “Leases”. The difference between the Company’s gross investment in the lease and the cost or carrying amount of the leased property, if different, is recorded as unearned income, which is amortized to income over the lease term by the interest method. | |||||||||||||||||||||||||||||||||
The Company uses a nine point grading risk classification system commonly used in the financial services industry as the credit quality indicator. The first five classifications are rated Pass. The riskier classifications include Special Mention, Substandard, Doubtful and Loss. The risk rating is related to the underlying credit quality and probability of default. These risk ratings are used to calculate the historical loss component of the allowance. | |||||||||||||||||||||||||||||||||
· | Pass: includes credits that demonstrate a low probability of default; | ||||||||||||||||||||||||||||||||
· | Pass-Watch: a warning classification which includes credits that are beginning to demonstrate above average risk through declining earnings, strained cash flows, increased leverage and/or weakening market fundamentals; | ||||||||||||||||||||||||||||||||
· | Special mention: includes credits that have potential weaknesses that if left uncorrected could weaken the credit or result in inadequate protection of the Company’s position at some future date. While potentially weak, credits in this classification are marginally acceptable and loss of principal or interest is not anticipated; | ||||||||||||||||||||||||||||||||
· | Substandard accrual: includes credits that exhibit a well-defined weakness which currently jeopardizes the repayment of debt and liquidation of collateral even though they are currently performing. These credits are characterized by the distinct possibility that the Company may incur a loss in the future if these weaknesses are not corrected; | ||||||||||||||||||||||||||||||||
· | Non-accrual: (substandard non-accrual, doubtful, loss): includes credits that demonstrate serious problems to the point that it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. | ||||||||||||||||||||||||||||||||
All loans, at the time of presentation to the appropriate loan committee, are given an initial loan risk rating by the Chief Credit Officer (“CCO”). From time to time, and at the general direction of any of the various loan committees, the ratings may be changed based on the findings of that committee. Items considered in assigning ratings include the financial strength of the borrower and/or guarantors, the type of collateral, the collateral lien position, the type of loan and loan structure, any potential risk inherent in the specific loan type, higher than normal monitoring of the loan or any other factor deemed appropriate by any of the various committees for changing the rating of the loan. Any such change in rating is reflected in the minutes of that committee. | |||||||||||||||||||||||||||||||||
The following tables present risk ratings for each loan portfolio segment at September 30, 2013 and December 31, 2012, excluding LHFS. | |||||||||||||||||||||||||||||||||
30-Sep-13 | Special | ||||||||||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Mention | Substandard | Non-accrual | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 95,250 | $ | 37,150 | $ | 16,667 | $ | 3,679 | $ | 5,477 | $ | 158,223 | |||||||||||||||||||||
Construction and land development | 7,235 | 17,493 | 11,595 | 572 | 2,699 | 39,594 | |||||||||||||||||||||||||||
Commercial and industrial | 48,108 | 18,064 | 5,971 | 10,403 | 3,855 | 86,401 | |||||||||||||||||||||||||||
Multi-family | 8,994 | 2,108 | 576 | - | - | 11,678 | |||||||||||||||||||||||||||
Residential real estate | 24,310 | - | - | - | 520 | 24,830 | |||||||||||||||||||||||||||
Leases | 39,890 | 56 | 77 | - | 385 | 40,408 | |||||||||||||||||||||||||||
Tax certificates | 14,832 | - | - | - | 532 | 15,364 | |||||||||||||||||||||||||||
Consumer | 772 | 59 | - | - | - | 831 | |||||||||||||||||||||||||||
Total LHFI | $ | 239,391 | $ | 74,930 | $ | 34,886 | $ | 14,654 | $ | 13,468 | $ | 377,329 | |||||||||||||||||||||
31-Dec-12 | Special | ||||||||||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Mention | Substandard | Non-accrual | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 64,308 | $ | 69,510 | $ | 19,529 | $ | 3,423 | $ | 10,345 | $ | 167,115 | |||||||||||||||||||||
Construction and land development | 2,139 | 13,872 | 16,343 | 581 | 4,280 | 37,215 | |||||||||||||||||||||||||||
Commercial and industrial | 14,764 | 10,774 | 92 | 9,969 | 4,961 | 40,560 | |||||||||||||||||||||||||||
Multi-family | 9,019 | 2,034 | 703 | - | - | 11,756 | |||||||||||||||||||||||||||
Residential real estate | 15,125 | 6,634 | 602 | 1,626 | 994 | 24,981 | |||||||||||||||||||||||||||
Leases | 36,755 | 325 | 16 | - | 251 | 37,347 | |||||||||||||||||||||||||||
Tax certificates | 23,968 | - | - | - | 601 | 24,569 | |||||||||||||||||||||||||||
Consumer | 926 | 213 | - | - | - | 1,139 | |||||||||||||||||||||||||||
Subtotal LHFI | 167,004 | 103,362 | 37,285 | 15,599 | 21,432 | 344,682 | |||||||||||||||||||||||||||
Less: Deferred loan fees | (517 | ) | |||||||||||||||||||||||||||||||
Total LHFI | $ | 344,165 | |||||||||||||||||||||||||||||||
The past due status of all classes of loans and leases receivable is determined based on contractual due dates for loan payments. Generally, a loan is placed on non-accruing status when it has been delinquent for a period of 90 days or more. The following tables present an aging analysis of past due payments for each loan portfolio segment at September 30, 2013 and December 31, 2012, excluding LHFS. | |||||||||||||||||||||||||||||||||
30-Sep-13 | 30-59 Days | 60-89 Days | Accruing | Total | |||||||||||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 1,005 | $ | 3,152 | $ | - | $ | 5,477 | $ | 148,589 | $ | 158,223 | |||||||||||||||||||||
Construction and land development | - | - | - | 2,699 | 36,895 | 39,594 | |||||||||||||||||||||||||||
Commercial and industrial | 109 | - | - | 3,855 | 82,437 | 86,401 | |||||||||||||||||||||||||||
Multi-family | - | - | - | - | 11,678 | 11,678 | |||||||||||||||||||||||||||
Residential real estate | 267 | 419 | - | 520 | 23,624 | 24,830 | |||||||||||||||||||||||||||
Leases | 162 | - | - | 385 | 39,861 | 40,408 | |||||||||||||||||||||||||||
Tax certificates | - | - | - | 532 | 14,832 | 15,364 | |||||||||||||||||||||||||||
Consumer | 19 | - | - | - | 812 | 831 | |||||||||||||||||||||||||||
Subtotal LHFI | $ | 1,562 | $ | 3,571 | $ | - | $ | 13,468 | $ | 358,728 | $ | 377,329 | |||||||||||||||||||||
31-Dec-12 | 30-59 Days | 60-89 Days | Accruing | Total | |||||||||||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 1,548 | $ | 1,486 | $ | - | $ | 10,345 | $ | 153,736 | $ | 167,115 | |||||||||||||||||||||
Construction and land development | - | - | - | 4,280 | 32,935 | 37,215 | |||||||||||||||||||||||||||
Commercial and industrial | 200 | - | - | 4,961 | 35,399 | 40,560 | |||||||||||||||||||||||||||
Multi-family | - | - | - | - | 11,756 | 11,756 | |||||||||||||||||||||||||||
Residential real estate | 562 | 486 | - | 994 | 22,939 | 24,981 | |||||||||||||||||||||||||||
Leases | 325 | 16 | - | 251 | 36,755 | 37,347 | |||||||||||||||||||||||||||
Tax certificates | - | - | - | 601 | 23,968 | 24,569 | |||||||||||||||||||||||||||
Consumer | - | - | - | - | 1,139 | 1,139 | |||||||||||||||||||||||||||
Subtotal LHFI | 2,635 | 1,988 | - | 21,432 | 318,627 | 344,682 | |||||||||||||||||||||||||||
Less: Deferred loan fees | (517 | ) | |||||||||||||||||||||||||||||||
Total LHFI | $ | 344,165 | |||||||||||||||||||||||||||||||
The following tables detail the composition of the non-accrual loans at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
(In thousands) | Loan balance | Specific reserves | Loan balance | Specific reserves | |||||||||||||||||||||||||||||
Non-accrual loans held for investment | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,477 | $ | 230 | $ | 10,345 | $ | 835 | |||||||||||||||||||||||||
Construction and land development | 2,699 | - | 4,280 | 820 | |||||||||||||||||||||||||||||
Commercial and industrial | 3,855 | 209 | 4,961 | 255 | |||||||||||||||||||||||||||||
Residential real estate | 520 | 16 | 994 | 14 | |||||||||||||||||||||||||||||
Leases | 385 | 138 | 251 | 55 | |||||||||||||||||||||||||||||
Tax certificates | 532 | 67 | 601 | 47 | |||||||||||||||||||||||||||||
Total non-accrual LHFI | $ | 13,468 | $ | 660 | $ | 21,432 | $ | 2,026 | |||||||||||||||||||||||||
Non-accrual loans held for sale | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | - | $ | - | $ | 1,572 | $ | - | |||||||||||||||||||||||||
Total non-accrual LHFS | $ | - | $ | - | $ | 1,572 | $ | - | |||||||||||||||||||||||||
Total non-accrual loans | $ | 13,468 | $ | 660 | $ | 23,004 | $ | 2,026 | |||||||||||||||||||||||||
Total non-accrual loans at September 30, 2013 were $13.5 million in LHFI. Total non-accrual loans at December 31, 2012 were $23.0 million and were comprised of $21.4 million in LHFI and $1.6 million in LHFS. The $9.5 million decrease was the result of a $8.5 million reduction in existing non-accrual loan balances through payments and sales, $3.2 million in charge-offs and write downs, and $1.5 million in transfers to OREO, which were partially offset by additions of $3.7 million in non-accrual LHFI. If interest had been accrued, such income would have been approximately $370,000 and $1.3 million for the three and nine months ended September 30, 2013, respectively. The Company had no loans past due 90 days or more on which it has continued to accrue interest during the quarter. Typically, loans are restored to accrual status when the loan is brought current, has performed in accordance with the contractual terms for a reasonable period of time (generally six months) and the ultimate collectibility of the total contractual principal and interest is no longer in doubt. | |||||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
The Company identifies a loan as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. Impaired loans include troubled debt restructurings (“TDRs”). The Company does not accrue interest income on impaired non-accrual loans. Excess proceeds received over the principal amounts due on impaired non-accrual loans are recognized as income on a cash basis. The Company recognizes income under the accrual basis when the principal payments on the loans become current and the collateral on the loan is sufficient to cover the outstanding obligation to the Company. If these factors do not exist, the Company does not recognize income. | |||||||||||||||||||||||||||||||||
During the nine months ended September 30, 2013 and 2012, total cash collected on impaired loans, which includes LHFS, was $10.6 million and $22.3 million respectively, of which $9.9 million and $20.1 million was credited to the principal balance outstanding on such loans, respectively. | |||||||||||||||||||||||||||||||||
The following is a summary of information pertaining to impaired loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | $ | 5,550 | $ | 9,405 | |||||||||||||||||||||||||||||
Impaired loans without a valuation allowance | 17,868 | 19,423 | |||||||||||||||||||||||||||||||
Impaired LHFS | - | 1,572 | |||||||||||||||||||||||||||||||
Total impaired loans | $ | 23,418 | $ | 30,400 | |||||||||||||||||||||||||||||
Valuation allowance related to impaired loans | $ | 660 | $ | 2,026 | |||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
A loan modification is deemed a TDR when two conditions are met: 1) the borrower is experiencing financial difficulty and 2) concessions are made by the Company that would not otherwise be considered for a borrower or collateral with similar credit risk characteristics. All loans classified as TDRs are considered to be impaired. TDRs are returned to an accrual status when the loan is brought current, has performed in accordance with the contractual restructured terms for a reasonable period of time (generally six months) and the ultimate collectibility of the total contractual restructured principal and interest is no longer in doubt. The Company’s policy for TDRs is to recognize income on currently performing restructured loans under the accrual method. At September 30, 2013, the Company had 13 TDRs, of which six are on non-accrual status, with a total carrying value of $17.4 million. At the time of the modifications, six of the loans were already classified as impaired loans. At December 31, 2012, the Company had 12 TDRs with a total carrying value of $21.1 million. During 2013, the Company received pay downs and payoffs of $3.3 million and recorded specific reserve charge-offs of $1.7 million. Additionally, the Company sold one of the TDRs and received $2.5 million in proceeds. There were three new TDRs totaling $3.8 million for the nine months ended September 30, 2013. | |||||||||||||||||||||||||||||||||
The following table details the Company’s TDRs that are on an accrual status and a non-accrual status at September 30, 2013. | |||||||||||||||||||||||||||||||||
(In thousands) | Number of loans | Accrual Status | Non-Accrual Status | Total TDRs | |||||||||||||||||||||||||||||
Construction and land development | 4 | $ | 1,320 | $ | 497 | $ | 1,817 | ||||||||||||||||||||||||||
Commercial real estate | 4 | 4,295 | 4,550 | 8,845 | |||||||||||||||||||||||||||||
Commercial and industrial | 3 | 4,531 | 2,038 | 6,569 | |||||||||||||||||||||||||||||
Residential real estate | 2 | - | 130 | 130 | |||||||||||||||||||||||||||||
Total | 13 | $ | 10,146 | $ | 7,215 | $ | 17,361 | ||||||||||||||||||||||||||
At September 30, 2013, all of the TDRs were in compliance with their restructured terms. | |||||||||||||||||||||||||||||||||
The following table presents new TDRs that occurred during the nine months ended September 30, 2013. The Company did not classify any restructuring as TDR’s during the third quarter of 2013. | |||||||||||||||||||||||||||||||||
Modifications by type for the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Rate | Term | Payment | Combination of types | Total | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||
Commercial real estate | 2 | $ | - | $ | - | $ | - | $ | 3,705 | $ | 3,705 | $ | 3,761 | $ | 3,761 | ||||||||||||||||||
Commercial and industrial | 1 | - | - | - | 82 | 82 | 87 | 87 | |||||||||||||||||||||||||
Total | 3 | $ | - | $ | - | $ | - | $ | 3,787 | $ | 3,787 | $ | 3,848 | $ | 3,848 | ||||||||||||||||||
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ' | ||||||||||||||||||||||||||||||||||||||||
Note 5. Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||||||||||||
The following tables present the detail of the ALLL and the loan portfolio disaggregated by loan portfolio segment for the three and nine months ended September 30, 2013, the year ended December 31, 2012 and the three and nine months ended September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,952 | $ | 2,017 | $ | 2,465 | $ | 588 | $ | 353 | $ | 999 | $ | 586 | $ | 18 | $ | 201 | $ | 15,179 | |||||||||||||||||||||
Charge-offs | (605 | ) | - | (34 | ) | - | (32 | ) | (40 | ) | (126 | ) | - | - | (837 | ) | |||||||||||||||||||||||||
Recoveries | 1 | 106 | 4 | - | 2 | 4 | 2 | - | - | 119 | |||||||||||||||||||||||||||||||
Provision | (1,159 | ) | 72 | 1,080 | (114 | ) | 175 | 133 | 41 | (3 | ) | (7 | ) | 218 | |||||||||||||||||||||||||||
Ending balance | $ | 6,189 | $ | 2,195 | $ | 3,515 | $ | 474 | $ | 498 | $ | 1,096 | $ | 503 | $ | 15 | $ | 194 | $ | 14,679 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 230 | $ | - | $ | 209 | $ | - | $ | 16 | $ | 138 | $ | 67 | $ | - | $ | - | $ | 660 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 5,959 | $ | 2,195 | $ | 3,306 | $ | 474 | $ | 482 | $ | 958 | $ | 436 | $ | 15 | $ | 194 | $ | 14,019 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 8,750 | $ | 2,987 | $ | 1,924 | $ | 654 | $ | 1,098 | $ | 1,108 | $ | 472 | $ | 29 | $ | 239 | $ | 17,261 | |||||||||||||||||||||
Charge-offs | (1,440 | ) | (820 | ) | (228 | ) | - | (32 | ) | (149 | ) | (410 | ) | - | - | (3,079 | ) | ||||||||||||||||||||||||
Recoveries | 127 | 297 | 14 | - | 157 | 24 | 74 | - | - | 693 | |||||||||||||||||||||||||||||||
Provision | (1,248 | ) | (269 | ) | 1,805 | (180 | ) | (725 | ) | 113 | 367 | (14 | ) | (45 | ) | (196 | ) | ||||||||||||||||||||||||
Ending balance | $ | 6,189 | $ | 2,195 | $ | 3,515 | $ | 474 | $ | 498 | $ | 1,096 | $ | 503 | $ | 15 | $ | 194 | $ | 14,679 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 230 | $ | - | $ | 209 | $ | - | $ | 16 | $ | 138 | $ | 67 | $ | - | $ | - | $ | 660 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 5,959 | $ | 2,195 | $ | 3,306 | $ | 474 | $ | 482 | $ | 958 | $ | 436 | $ | 15 | $ | 194 | $ | 14,019 | |||||||||||||||||||||
Loans Held for Investment and Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 158,223 | $ | 39,594 | $ | 86,401 | $ | 11,678 | $ | 24,830 | $ | 40,408 | $ | 15,364 | $ | 831 | $ | - | $ | 377,329 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,045 | $ | 4,019 | $ | 8,112 | $ | - | $ | 520 | $ | 190 | $ | 532 | $ | - | $ | - | $ | 23,418 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 148,178 | $ | 35,575 | $ | 78,289 | $ | 11,678 | $ | 24,310 | $ | 40,218 | $ | 14,832 | $ | 831 | $ | - | $ | 353,911 | |||||||||||||||||||||
Allowance for Loan and Leases Losses and Loans Held for Investment | |||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 7,744 | $ | 2,523 | $ | 2,331 | $ | 531 | $ | 1,188 | $ | 1,311 | $ | 425 | $ | 20 | $ | 307 | $ | 16,380 | |||||||||||||||||||||
Charge-offs | (1,313 | ) | (2,452 | ) | (586 | ) | (542 | ) | (111 | ) | (465 | ) | (802 | ) | - | - | (6,271 | ) | |||||||||||||||||||||||
Recoveries | 3 | 816 | 67 | - | 208 | 32 | 29 | - | - | 1,155 | |||||||||||||||||||||||||||||||
Provision | 2,316 | 2,100 | 112 | 665 | (187 | ) | 230 | 820 | 9 | (68 | ) | 5,997 | |||||||||||||||||||||||||||||
Ending balance | $ | 8,750 | $ | 2,987 | $ | 1,924 | $ | 654 | $ | 1,098 | $ | 1,108 | $ | 472 | $ | 29 | $ | 239 | $ | 17,261 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 835 | $ | 820 | $ | 255 | $ | - | $ | 14 | $ | 55 | $ | 47 | $ | - | $ | - | $ | 2,026 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,915 | $ | 2,167 | $ | 1,669 | $ | 654 | $ | 1,084 | $ | 1,053 | $ | 425 | $ | 29 | $ | 239 | $ | 15,235 | |||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 167,115 | $ | 37,215 | $ | 40,560 | $ | 11,756 | $ | 24,981 | $ | 37,347 | $ | 24,569 | $ | 1,139 | $ | - | $ | 344,682 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,958 | $ | 5,943 | $ | 10,251 | $ | - | $ | 994 | $ | 81 | $ | 601 | $ | - | $ | - | $ | 28,828 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 156,157 | $ | 31,272 | $ | 30,309 | $ | 11,756 | $ | 23,987 | $ | 37,266 | $ | 23,968 | $ | 1,139 | $ | - | $ | 315,854 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,679 | $ | 3,738 | $ | 2,206 | $ | 946 | $ | 1,125 | $ | 1,212 | $ | 332 | $ | 20 | $ | 237 | $ | 17,495 | |||||||||||||||||||||
Charge-offs | - | (1,242 | ) | (156 | ) | (541 | ) | (30 | ) | (82 | ) | (29 | ) | - | - | (2,080 | ) | ||||||||||||||||||||||||
Recoveries | - | 232 | 3 | - | - | 6 | - | - | - | 241 | |||||||||||||||||||||||||||||||
Provision | 1,009 | 753 | (103 | ) | 101 | 17 | 13 | (35 | ) | 6 | - | 1,761 | |||||||||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 3,481 | $ | 1,950 | $ | 506 | $ | 1,112 | $ | 1,149 | $ | 268 | $ | 26 | $ | 237 | $ | 17,417 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 1,313 | $ | 1,210 | $ | 222 | $ | - | $ | 22 | $ | 41 | $ | - | $ | - | $ | - | $ | 2,808 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,375 | $ | 2,271 | $ | 1,728 | $ | 506 | $ | 1,090 | $ | 1,108 | $ | 268 | $ | 26 | $ | 237 | $ | 14,609 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,744 | $ | 2,523 | $ | 2,331 | $ | 531 | $ | 1,188 | $ | 1,311 | $ | 425 | $ | 20 | $ | 307 | $ | 16,380 | |||||||||||||||||||||
Charge-offs | - | (1,242 | ) | (364 | ) | (541 | ) | (30 | ) | (377 | ) | (307 | ) | - | - | (2,861 | ) | ||||||||||||||||||||||||
Recoveries | 3 | 423 | 60 | - | 2 | 22 | 28 | - | - | 538 | |||||||||||||||||||||||||||||||
Provision | 941 | 1,777 | (77 | ) | 516 | (48 | ) | 193 | 122 | 6 | (70 | ) | 3,360 | ||||||||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 3,481 | $ | 1,950 | $ | 506 | $ | 1,112 | $ | 1,149 | $ | 268 | $ | 26 | $ | 237 | $ | 17,417 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 1,313 | $ | 1,210 | $ | 222 | $ | - | $ | 22 | $ | 41 | $ | - | $ | - | $ | - | $ | 2,808 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,375 | $ | 2,271 | $ | 1,728 | $ | 506 | $ | 1,090 | $ | 1,108 | $ | 268 | $ | 26 | $ | 237 | $ | 14,609 | |||||||||||||||||||||
Loans Held for Investment and Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 161,834 | $ | 40,280 | $ | 39,831 | $ | 8,490 | $ | 26,100 | $ | 38,313 | $ | 27,622 | $ | 1,094 | $ | - | $ | 343,564 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 13,493 | $ | 7,552 | $ | 5,507 | $ | - | $ | 1,273 | $ | 52 | $ | 716 | $ | - | $ | - | $ | 28,593 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 148,341 | $ | 32,728 | $ | 34,324 | $ | 8,490 | $ | 24,827 | $ | 38,261 | $ | 26,906 | $ | 1,094 | $ | - | $ | 314,971 | |||||||||||||||||||||
The following tables detail the loans that were evaluated for impairment by loan segment at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Unpaid principal balance | Carrying value | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 10,420 | $ | 9,119 | $ | - | $ | 8,665 | $ | 129 | |||||||||||||||||||||||||||||||
Commercial real estate | 12,054 | 4,019 | - | 4,061 | 45 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,775 | 4,730 | - | 6,401 | 241 | ||||||||||||||||||||||||||||||||||||
Residential real estate | - | - | - | 108 | 27 | ||||||||||||||||||||||||||||||||||||
Tax certificates | - | - | - | 171 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 27,249 | $ | 17,868 | $ | - | $ | 19,406 | $ | 442 | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 926 | $ | 926 | $ | 230 | $ | 2,114 | $ | - | |||||||||||||||||||||||||||||||
Commercial real estate | - | - | - | 495 | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,664 | 3,382 | 209 | 2,587 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 707 | 520 | 16 | 472 | - | ||||||||||||||||||||||||||||||||||||
Leasing | 190 | 190 | 138 | 105 | - | ||||||||||||||||||||||||||||||||||||
Tax certificates | 4,526 | 532 | 67 | 338 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 11,013 | $ | 5,550 | $ | 660 | $ | 6,111 | $ | - | |||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Unpaid principal balance | Carrying value | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 10,417 | $ | 8,623 | $ | - | $ | 11,163 | $ | 78 | |||||||||||||||||||||||||||||||
Construction and land development | 6,250 | 3,464 | - | 10,059 | 187 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 7,790 | 6,820 | - | 5,545 | 73 | ||||||||||||||||||||||||||||||||||||
Multi-family | - | - | - | 780 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 572 | 516 | - | 490 | 21 | ||||||||||||||||||||||||||||||||||||
Tax certificates | - | - | - | 583 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 25,029 | $ | 19,423 | $ | - | $ | 28,620 | $ | 359 | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,136 | $ | 2,335 | $ | 835 | $ | 1,526 | $ | - | |||||||||||||||||||||||||||||||
Construction and land development | 6,180 | 2,479 | 820 | 923 | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 9,585 | 3,431 | 255 | 682 | - | ||||||||||||||||||||||||||||||||||||
Multi-family | - | - | - | 383 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 685 | 478 | 14 | 714 | 7 | ||||||||||||||||||||||||||||||||||||
Leases | 81 | 81 | 55 | 86 | - | ||||||||||||||||||||||||||||||||||||
Tax certificates | 4,408 | 601 | 47 | 288 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 25,075 | $ | 9,405 | $ | 2,026 | $ | 4,602 | $ | 7 | |||||||||||||||||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Other Real Estate Owned [Abstract] | ' | ||||||||||||
Other Real Estate Owned | ' | ||||||||||||
Note 6. Other Real Estate Owned | |||||||||||||
OREO increased $471,000 from $13.4 million at December 31, 2012 to $13.9 million at September 30, 2013. Set forth below is a table which details the changes in OREO from December 31, 2012 to September 30, 2013. | |||||||||||||
2013 | |||||||||||||
(In thousands) | First Quarter | Second Quarter | Third Quarter | ||||||||||
Beginning balance | $ | 13,435 | $ | 13,264 | $ | 13,002 | |||||||
Net proceeds from sales | (2,277 | ) | (2,603 | ) | (1,333 | ) | |||||||
Net gain (loss) on sales | 162 | 418 | 629 | ||||||||||
Assets acquired on non-accrual loans | 1,956 | 2,252 | 2,220 | ||||||||||
Impairment charge | (12 | ) | (329 | ) | (612 | ) | |||||||
Ending balance | $ | 13,264 | $ | 13,002 | $ | 13,906 | |||||||
At September 30, 2013, OREO was comprised of $6.0 million in tax liens, $4.3 million in land, $3.3 million in commercial real estate, and residential real estate with a fair value of $283,000. During the third quarter of 2013, the Company sold 23 condominiums related to a construction project in Minneapolis, Minnesota in which the Company is a participant. The Company received its pro rata share of net proceeds in the amount of $118,000 and recorded a net gain of $79,000. The Company also sold fourteen properties acquired through the tax lien portfolio. The Company received proceeds of $1.2 million and recorded net gains of $547,000 as a result of these sales. During the third quarter of 2013, the Company recorded impairment charges of $498,000 on four properties based on annual updated appraisals or agreements of sale and $114,000 related to properties acquired through the tax lien portfolio. In addition the Company acquired collateral related to the tax lien portfolio and transferred $2.2 million to OREO. | |||||||||||||
During the second quarter of 2013, the Company sold collateral related to land, received net proceeds of $765,000 and recorded a net gain of $12,000. The Company also sold nine condominiums related to a construction project in Minneapolis, Minnesota in which the Company is a participant. The Company received its pro rata share of net proceeds in the amount of $99,000 and recorded a net gain of $37,000. The Company also sold collateral related to two residential real estate loans. The Company received net proceeds of $114,000 and recorded a small net gain of $5,000. In addition to these second quarter sales, the Company sold 15 properties acquired through the tax lien portfolio. The Company received proceeds of $1.6 million and recorded net gains of $364,000 as a result of these sales. During the second quarter of 2013, the Company recorded impairment charges of $146,000 related to residential real estate and $183,000 related to properties acquired through the tax lien portfolio. In addition the Company acquired collateral related to the tax lien portfolio and transferred $2.3 million to OREO. | |||||||||||||
During the first quarter of 2013, the Company sold collateral related to land, received net proceeds of $1.8 million and recorded a loss of $38,000. The Company also sold three condominiums related to a construction project mentioned above. The Company received its pro rata share of net proceeds in the amount of $24,000 and recorded a gain of $17,000. Additionally the Company sold four single family homes related to two loans. The Company received net proceeds of $43,000 and recorded a small net gain of $3,000. In addition to these first quarter sales, the Company sold eleven properties acquired through the tax lien portfolio. The Company received proceeds of $367,000 and recorded a net gain of $180,000 as a result of these sales. During the first quarter of 2013, the Company acquired collateral related to a residential real estate loan and transferred $100,000 to OREO. In addition the Company acquired collateral related to the tax lien portfolio and transferred $1.9 million to OREO. The Company recorded impairment charges of $12,000 related to properties acquired through the tax lien portfolio. | |||||||||||||
Deposits
Deposits | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deposits [Abstract] | ' | ||||||||
Deposits | ' | ||||||||
Note 7. Deposits | |||||||||
The Company’s deposit composition as of September 30, 2013 and December 31, 2012 is presented below: | |||||||||
September 30, | December 31, | ||||||||
(In thousands) | 2013 | 2012 | |||||||
Demand | $ | 63,338 | $ | 58,531 | |||||
NOW | 40,497 | 43,920 | |||||||
Money Market | 161,517 | 179,359 | |||||||
Savings | 17,588 | 17,472 | |||||||
Time deposits (over $100) | 89,476 | 91,233 | |||||||
Time deposits (under $100) | 150,204 | 164,402 | |||||||
Total deposits | $ | 522,620 | $ | 554,917 |
Borrowings_and_Subordinated_De
Borrowings and Subordinated Debentures | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Borrowings and Subordinated Debentures [Abstract] | ' | ||||||||||||||||
Borrowings and Subordinated Debentures | ' | ||||||||||||||||
Note 8. Borrowings and Subordinated Debentures | |||||||||||||||||
1. Advances from the Federal Home Loan Bank | |||||||||||||||||
While Royal Bank has a $150 million line of credit with the FHLB, the available borrowing capacity with the FHLB is based on qualified collateral. During the third quarter, the FHLB released Royal Bank from the over collateralized delivery requirement of 105% subject to reevaluation on a quarterly basis. Total borrowings from the FHLB were $69.0 million at September 30, 2013 compared to $65.0 million at December 31, 2012. The FHLB advances are collateralized by FHLB stock, government agencies and mortgage-backed securities, residential loans, and commercial real estate loans. As of September 30, 2013, investment securities with a market value of $74.3 million and loans with a book value of $28.9 million were pledged as collateral to the FHLB. | |||||||||||||||||
Presented below are the Company’s FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates: | |||||||||||||||||
As of | As of | ||||||||||||||||
(Dollars in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
Advances maturing in | |||||||||||||||||
2013 | $ | 14,000 | 0.23 | % | 50,000 | 2.64 | % | ||||||||||
2015 | 10,000 | 0.71 | % | - | - | ||||||||||||
2016 | 10,000 | 1.11 | % | - | - | ||||||||||||
2017 | 25,000 | 1.46 | % | 15,000 | 1.39 | % | |||||||||||
2018 | 10,000 | 2.01 | % | - | - | ||||||||||||
Total FHLB borrowings | $ | 69,000 | $ | 65,000 | |||||||||||||
As of September 30, 2013, there were no FHLB advances scheduled to mature in 2014. | |||||||||||||||||
2. Other borrowings | |||||||||||||||||
The Company has a note payable with PNC Bank (“PNC”) at September 30, 2013 in the amount of $3.0 million compared to $3.3 million at December 31, 2012. The note’s maturity date is August 25, 2016. The interest rate is a variable rate using rate index of one month LIBOR + 15 basis points and adjusts monthly. The interest rate at September 30, 2013 was 0.33%. | |||||||||||||||||
At September 30, 2013 and December 31, 2012, the Company had additional borrowings of $40.0 million from PNC which will mature on January 7, 2018. These borrowings have a weighted average interest rate of 3.65%. The note payable and the borrowings are secured by government agencies and mortgage-backed securities. | |||||||||||||||||
3. Subordinated debentures | |||||||||||||||||
The Company has outstanding $25.0 million of Trust Preferred Securities issued through two Delaware trust affiliates, Royal Bancshares Capital Trust I (“Trust I”) and Royal Bancshares Capital Trust II (“Trust II”) (collectively, the “Trusts”). The Company issued an aggregate principal amount of $12.9 million of floating rate junior subordinated debt securities to Trust I and an aggregate principal amount of $12.9 million of fixed/floating rate junior subordinated deferrable interest to Trust II. Both debt securities bear an interest rate of 2.40% at September 30, 2013, and reset quarterly at 3-month LIBOR plus 2.15%. | |||||||||||||||||
Each of Trust I and Trust II issued an aggregate principal amount of $12.5 million of capital securities initially bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to an unaffiliated investment vehicle and an aggregate principal amount of $387,000 of common securities bearing fixed and/or fixed/floating interest rates corresponding to the debt securities held by each trust to the Company. The Company has fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities. | |||||||||||||||||
On August 13, 2009, the Company’s Board determined to suspend interest payments on the trust preferred securities. Under the Federal Reserve MOU as described in “Note 2 – Regulatory Matters and Significant Risks or Uncertainties” to the Consolidated Financial Statements, the Company and its non-bank subsidiaries may not make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without the prior written approval of the Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. During the third quarter of 2013, the Company received approval from the Federal Reserve Bank to pay the $3.1 million interest payment in arrears on the trust preferred securities. On September 16, 2013, the Company became current on the trust preferred interest payments which included an interest penalty of $174,000. | |||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||
Commitments and Contingencies | ' | ||||||||
Note 9. Commitments and Contingencies | |||||||||
The Company’s exposure to credit loss in the event of non-performance by the other party to commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. | |||||||||
The contract amounts are as follows: | |||||||||
September 30, | December 31, | ||||||||
(In thousands) | 2013 | 2012 | |||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||
Open-end lines of credit | $ | 28,402 | $ | 20,515 | |||||
Commitments to extend credit | 14,092 | 24,030 | |||||||
Standby letters of credit and financial guarantees written | 2,829 | 1,199 | |||||||
Litigation | |||||||||
From time to time, the Company is a party to routine legal proceedings within the normal course of business. Such routine legal proceedings in the aggregate are believed by management to be immaterial to the Company's financial condition or results of operations. | |||||||||
Royal Bank holds a 60% equity interest in each of CSC and RTL. The Company acquired its ownership interest in CSC in 2001. CSC and RTL acquired, through public auction, delinquent tax liens in various jurisdictions thereby assuming a superior lien position to most other lien holders, including mortgage lien holders. On March 4, 2009, each of CSC and RTL received grand jury subpoenas issued by the U.S. District Court for New Jersey (“Court”) upon application of the Antitrust Division of the United States DOJ. On February 23, 2012, the former President of CSC and RTL entered a plea of guilty to one count of conspiring to rig bids at certain auctions for tax liens in New Jersey from 1998 until approximately the spring of 2009. On September 26, 2012, as a result of the former President’s guilty plea and pursuant to a plea agreement with the DOJ, CSC entered a guilty plea in the United States District Court for the District of New Jersey to one count of conspiracy to commit bid-rigging at certain auctions for tax liens in New Jersey. Under the terms of the plea agreement, which the Court accepted at the September 26, 2012 plea hearing, the DOJ agreed not to bring further criminal charges against CSC and not to bring criminal charges against RTL, or any current or former director, officer, or employee of CSC and/or RTL, for any act or offense committed prior to the date of the plea agreement that was in furtherance of any agreement to rig bids at municipal tax lien sales or auctions in the State of New Jersey. The former President of CSC and RTL and any person who bid at any time at a tax lien auction on behalf of CSC and/or RTL are excluded from this non-prosecution protection. At the sentencing hearing held in December 2012, the sentencing judge agreed with the DOJ’s recommendation and imposed a $2.0 million fine for CSC, which had been previously recognized in the Company’s consolidated financial statements. After adjusting for the noncontrolling interest, the Company’s 60% share of the fine amounted to $1.2 million. | |||||||||
On March 13, 2012, March 30, 2012, April 20, 2012, May 2, 2012, May 11, 2012, May 18, 2012, June 18, 2012 and June 29, 2012, the former President of CSC and RTL, CSC, RTL and the Company were named defendants, among others, in putative class action lawsuits filed in the U.S. District Court for the District of New Jersey (“Court”) on behalf of a proposed class of taxpayers who became delinquent in paying their municipal tax obligations: Boyer v. Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., Superior Court of New Jersey, Chancery Division (“the Boyer Action”), Contarino v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; MSC LLC v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; English v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; Ledford v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; T&B Associates v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; Jacobs et al v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey; Senatore Builders, LLC v Robert W. Stein, Crusader Servicing Corp. Royal Tax Lien Services LLC, Royal Bancshares of Pennsylvania, Inc., et al., U.S. District Court for the District of New Jersey, respectively alleging a conspiracy to rig bids in municipal tax lien auctions. On June 12, 2012, the Court entered an Order consolidating for pretrial purposes the above actions with all subsequently filed or transferred related actions, collectively referred to as In re New Jersey Tax Sale Certificates Antitrust Litigation. On October 22, 2012, the Court appointed two law firms as interim class counsel and another law firm as liaison class counsel and further ordered appointed counsel to a master complaint for the consolidated action. On December 21, 2012, plaintiffs filed a Consolidated Master Class Action Complaint (the “Complaint”) against numerous defendants, including the former President of CSC and RTL, Royal Bancshares of Pennsylvania, Inc., Royal Bank America, CSC and RTL. The Company filed a motion to dismiss the Complaint on March 8, 2013, which is currently pending before the Court. During the second quarter of 2013, the Company accrued a loss contingency of $1.65 million for a potential settlement with the plaintiffs. After adjusting for the noncontrolling interest, the Company’s 60% share of the loss contingency amounted to $990,000 on a pre-tax basis. Subsequently, Royal Bancshares of Pennsylvania, Inc., Royal Bank America, CSC, and RTL reached a settletment agreement with plaintiffs to settle the litigation for $1.65 million and other terms and conditions, including an opportunity for members of the proposed settlement class whose tax liens are currently held by CSC or RTL to redeem those liens for a one-time cash payment equaling 85% of the redemption amount by making such payment within 35 days of the date of written notice. The proposed settlement class does not include, and therefore the offer to redeem does not apply to, tax liens acquired at 0% interest or at a premium. The settlement is subject to Court approval after notice and a hearing. Members of the proposed settlement class will have an opportunity to object to the proposed settlement or opt-out. | |||||||||
On or about March 15, 2012, CSC, RTL and the Company were named defendants, among others, in a complaint filed by Marina Bay Towers Urban Renewal II, LP (“MBT”) in the Superior Court of New Jersey, Law Division, Cape May County. The complaint alleges essentially the same claims as asserted in the Complaint. However MBT does not seek to represent a class and only seeks remedies related to itself. As of the date of this filing, the Company cannot reasonably estimate the possible loss or range of loss that may result from this proceeding. | |||||||||
In 2005, the Company purchased $25.0 million in Class B-1 Notes of a collateralized debt obligation (“CDO”) offered by Lehman Brothers, Inc. Concurrently with the issuance of the notes, the issuer entered into a credit swap with Lehman Brothers Special Financing (“LBSF”). Lehman Brothers Holdings, Inc. (“LBHI”) guaranteed LBSF’s obligations to the issuer under the credit swap. When LBHI filed for bankruptcy in September 2008, an event of default under the indenture occurred, and the trustee declared the notes to be immediately due and payable. The Company was repaid its principal on the notes in September 2008. In September 2010, LBSF filed suit in the United States Bankruptcy court for the Southern District of New York against certain indenture trustees, certain special-purpose entities (issuers) and a class of noteholders and trust certificate holders who received distributions from the trustees, to recover funds that were allegedly improperly paid to the noteholders in forty-seven separate CDO transactions. In July 2012, LBSF added the Company as a defendant in the proceeding. In June 2013, LBSF voluntarily dismissed without prejudice and without costs all claims against the Company related to the CDO transaction. | |||||||||
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Shareholders' Equity [Abstract] | ' |
Shareholders' Equity | ' |
Note 10. Shareholders’ Equity | |
1. Preferred Stock | |
On February 20, 2009, as part of the Capital Purchase Program (“CPP”) established by the United States Department of Treasury (“Treasury”), the Company issued to Treasury 30,407 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, without par value per share (the “Series A Preferred Stock”), and a liquidation preference of $1,000 per share. In conjunction with the purchase of the Series A Preferred Stock, Treasury received a warrant to purchase 1,104,370 shares of the Company’s Class A common stock. The aggregate purchase price for the Series A Preferred Stock and warrant was $30.4 million in cash. The Series A Preferred Stock qualifies as Tier 1 capital and pays cumulative dividends at a rate of 5% per annum for the first five years, and 9% per annum thereafter. The Series A Preferred Stock may generally be redeemed by the Company at any time following consultation with its primary banking regulators. The warrant issued to Treasury has a 10-year term and is immediately exercisable upon its issuance, with an exercise price, subject to anti-dilution adjustments, equal to $4.13 per share of the common stock. The Company has utilized the extra capital provided by the CPP funds to support its efforts to prudently and transparently provide lending and liquidity while also balancing the goal to remain well-capitalized. | |
2. Common Stock | |
The Company’s Class A common stock trades on the NASDAQ Global Market under the symbol RBPAA. There is no market for the Company’s Class B common stock. The Class B shares may not be transferred in any manner except to the holder’s immediate family. Class B shares may be converted to Class A shares at the rate of 1.15 to 1. Each shareholder is entitled to one vote for each Class A share held and ten votes for each Class B share held. Holders of either class of common stock are entitled to conversion equivalent per share dividends when declared. | |
3. Payment of Dividends | |
Under the Pennsylvania Business Corporation Law, the Company may pay dividends only if it is solvent and would not be rendered insolvent by the dividend payment. There are also restrictions set forth in the Pennsylvania Banking Code of 1965 (the “Code”) and in the Federal Deposit Insurance Act (“FDIA”) affecting the payment of dividends by the Company. Under the Code, no dividends may be paid by a bank except from “accumulated net earnings” (generally retained earnings). Under the FDIA, no dividend may be paid if a bank is in arrears in the payment of any insurance assessment due to the FDIC. In addition, dividends paid by Royal Bank to the Company would be prohibited if the effect thereof would cause Royal Bank’s capital to be reduced below applicable minimum capital requirements. At September 30, 2013, as a result of significant losses within Royal Bank, the Company had negative retained earnings and therefore would not have been able to declare and pay any cash dividends. Royal Bank must receive prior approval from the FDIC and the Department before declaring and paying a dividend to the Company. | |
On August 13, 2009, the Company’s Board of Directors determined to suspend regular quarterly cash dividends on the $30.4 million in Series A Preferred Stock. The Company’s Board of Directors took this action in consultation with the Federal Reserve Bank of Philadelphia as required by regulatory policy guidance. The Company currently has sufficient liquidity to pay the scheduled dividends on the preferred stock; however, this decision better supports the capital position of Royal Bank, a wholly owned subsidiary of the Company. As of September 30, 2013, the Series A Preferred stock dividend in arrears was $7.2 million and has not been recognized in the consolidated financial statements. In the event the Company declared the preferred dividend the Company’s capital ratios would be negatively affected however they would remain above the required minimum ratios. In February 2014, the preferred cumulative dividend rate will prospectively increase to 9% per annum. | |
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||||||
Regulatory Capital Requirements | ' | ||||||||||||||||||||||||
Note 11. Regulatory Capital Requirements | |||||||||||||||||||||||||
The Company and Royal Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Royal Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Under the informal agreement referenced in “Note 2 – Regulatory Matters and Significant Risks And Uncertainties” to the Consolidated Financial Statements, Royal Bank is required to maintain a minimum Tier 1 leverage ratio of 8% and a Total risk-based capital ratio of 12%. As of September 30, 2013, the Company and Royal Bank met all capital adequacy requirements to which it is subject and Royal Bank met the criteria for a well-capitalized institution. | |||||||||||||||||||||||||
In connection with a prior bank regulatory examination, the FDIC concluded, based upon its interpretation of the Call Report instructions and under RAP, that income from Royal Bank’s tax lien business should be recognized on a cash basis, not an accrual basis. Royal Bank’s current accrual method is in accordance with U.S. GAAP. Royal Bank disagrees with the FDIC’s conclusion and filed the Call Report for September 30, 2013 and the previous twelve quarters in accordance with U.S. GAAP. Royal Bank is in discussions with the FDIC to resolve the matter. The change in the method of revenue recognition for the tax lien business for regulatory accounting purposes affects Royal Bank’s and the Company’s capital ratios as shown below. | |||||||||||||||||||||||||
The table below sets forth Royal Bank’s capital ratios under RAP based on the FDIC’s interpretation of the Call Report instructions: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
To be well capitalized | |||||||||||||||||||||||||
For capital | capitalized under prompt | ||||||||||||||||||||||||
Actual | adequacy purposes | corrective action provision | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 74,057 | 15.7 | % | $ | 37,736 | 8 | % | $ | 47,170 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | $ | 68,052 | 14.43 | % | $ | 18,868 | 4 | % | $ | 28,302 | 6 | % | |||||||||||||
Tier I capital (to average assets, leverage) | $ | 68,052 | 9.39 | % | $ | 28,995 | 4 | % | $ | 36,244 | 5 | % | |||||||||||||
The tables below reflect the adjustments to the net loss as well as the capital ratios for Royal Bank under U.S. GAAP: | |||||||||||||||||||||||||
For the nine | |||||||||||||||||||||||||
months ended | |||||||||||||||||||||||||
(In thousands) | 30-Sep-13 | ||||||||||||||||||||||||
RAP net loss | $ | (3,279 | ) | ||||||||||||||||||||||
Tax lien adjustment, net of noncontrolling interest | 3,372 | ||||||||||||||||||||||||
U.S. GAAP net loss | $ | 93 | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||
As reported | As adjusted | ||||||||||||||||||||||||
under RAP | for U.S. GAAP | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 15.7 | % | 16.7 | % | |||||||||||||||||||||
Tier I capital (to risk-weighted assets) | 14.43 | % | 15.43 | % | |||||||||||||||||||||
Tier I capital (to average assets, leverage) | 9.39 | % | 10.09 | % | |||||||||||||||||||||
The tables below reflect the Company’s capital ratios: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
To be well capitalized | |||||||||||||||||||||||||
For capital | capitalized under prompt | ||||||||||||||||||||||||
Actual | adequacy purposes | corrective action provision | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 88,256 | 18.29 | % | $ | 38,606 | 8 | % | N/ | A | N/ | A | |||||||||||||
Tier I capital (to risk-weighted assets) | $ | 76,352 | 15.82 | % | $ | 19,303 | 4 | % | N/ | A | N/ | A | |||||||||||||
Tier I capital (to average assets, leverage) | $ | 76,352 | 10.35 | % | $ | 29,499 | 4 | % | N/ | A | N/ | A | |||||||||||||
The Company has filed the Consolidated Financial Statements for Bank Holding Companies-FR Y-9C (“FR Y-9C”) as of September 30, 2013 consistent with U.S. GAAP and the FR Y-9C instructions. In the event that a similar adjustment for RAP purposes would be required by the Federal Reserve on the holding company level, the adjusted ratios are shown in the table below. | |||||||||||||||||||||||||
For the nine | |||||||||||||||||||||||||
months ended | |||||||||||||||||||||||||
(In thousands) | 30-Sep-13 | ||||||||||||||||||||||||
U.S. GAAP net loss | $ | (343 | ) | ||||||||||||||||||||||
Tax lien adjustment, net of noncontrolling interest | (3,372 | ) | |||||||||||||||||||||||
RAP net loss | $ | (3,715 | ) | ||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||
As reported | As adjusted | ||||||||||||||||||||||||
under U.S. GAAP | for RAP | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 18.29 | % | 17.34 | % | |||||||||||||||||||||
Tier I capital (to risk-weighted assets) | 15.82 | % | 14.46 | % | |||||||||||||||||||||
Tier I capital (to average assets, leverage) | 10.35 | % | 9.41 | % |
Pension_Plan
Pension Plan | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Pension Plan [Abstract] | ' | ||||||||||||||||
Pension Plan | ' | ||||||||||||||||
Note 12. Pension Plan | |||||||||||||||||
The Company has a noncontributory nonqualified defined benefit pension plan (“Pension Plan”) covering certain eligible employees. The Company’s Pension Plan provides retirement benefits under pension trust agreements. The benefits are based on years of service and the employee’s compensation during the highest three consecutive years during the last 10 years of employment. | |||||||||||||||||
Net periodic defined benefit pension expense for the three and nine month periods ended September 30, 2013 and 2012 included the following components: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 19 | $ | 68 | $ | 56 | $ | 204 | |||||||||
Interest cost | 133 | 154 | 399 | 450 | |||||||||||||
Amortization of prior service cost | 22 | 23 | 67 | 67 | |||||||||||||
Amortization of actuarial loss | 122 | 96 | 367 | 287 | |||||||||||||
Net periodic benefit cost | $ | 296 | $ | 341 | $ | 889 | $ | 1,008 |
Loss_Per_Common_Share
Loss Per Common Share | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Loss Per Common Share [Abstract] | ' | ||||||||||||
Loss Per Common Share | ' | ||||||||||||
Note 13. Loss Per Common Share | |||||||||||||
The Company follows the provisions of FASB ASC Topic 260, “Earnings per Share” (“ASC Topic 260”). Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted average common shares outstanding during the period. The Company has two classes of common stock currently outstanding. The classes are A and B, of which one share of Class B is convertible into 1.15 shares of Class A. Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock using the treasury stock method. For the three months and nine months ended September 30, 2013, 202,480 options to purchase shares of common stock, respectively, were anti-dilutive in the computation of diluted EPS, as exercise price exceeded average market price and as a result of the net loss for the nine months ended September 30, 2013. For the three months and nine months ended September 30, 2012, 380,874 and 459,719 options to purchase shares of common stock, respectively, were anti-dilutive in the computation of diluted EPS, as exercise price exceeded average market price and as a result of the net loss for the three months and nine months ended September 30, 2012. Additionally 30,407 warrants were also anti-dilutive for all periods presented below. | |||||||||||||
Basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012 are calculated as follows: | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (178 | ) | 13,286 | $ | (0.01 | ) | ||||||
Three months ended September 30, 2012 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (5,323 | ) | 13,257 | $ | (0.40 | ) | ||||||
Nine months ended September 30, 2013 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (1,896 | ) | 13,272 | $ | (0.14 | ) | ||||||
Nine months ended September 30, 2012 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (9,156 | ) | 13,257 | $ | (0.69 | ) |
Comprehensive_Income
Comprehensive Income | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||
Comprehensive Income | ' | ||||||||||||
Note 14. Comprehensive Income | |||||||||||||
FASB ASC Topic 220, “Comprehensive Income” (“ASC Topic 220”), requires the reporting of all changes in equity during the reporting period except investments from and distributions to shareholders. Net income (loss) is a component of comprehensive income (loss) with all other components referred to in the aggregate as other comprehensive income. Unrealized gains and losses on AFS securities is an example of another comprehensive income component. | |||||||||||||
Nine months ended September 30, 2013 | |||||||||||||
(In thousands) | Before tax | Tax expense | Net of tax | ||||||||||
amount | (benefit) | amount | |||||||||||
Unrealized losses on investment securities: | |||||||||||||
Unrealized holding losses arising during period | $ | (8,833 | ) | $ | (3,128 | ) | $ | (5,705 | ) | ||||
Less reclassification adjustment for gains realized in net loss | 69 | 23 | 46 | ||||||||||
Unrealized losses on investment securities | (8,902 | ) | (3,151 | ) | (5,751 | ) | |||||||
Unrecognized benefit obligation expense: | |||||||||||||
Less reclassification adjustment for amortization | (429 | ) | (146 | ) | (283 | ) | |||||||
Other comprehensive loss, net | $ | (8,473 | ) | $ | (3,005 | ) | $ | (5,468 | ) | ||||
Nine months ended September 30, 2012 | |||||||||||||
(In thousands) | Before tax | Tax expense | Net of tax | ||||||||||
amount | (benefit) | amount | |||||||||||
Unrealized gains on investment securities: | |||||||||||||
Unrealized holding losses arising during period | $ | 1,440 | $ | 602 | $ | 838 | |||||||
Less adjustment for impaired investments | (859 | ) | (301 | ) | (558 | ) | |||||||
Less reclassification adjustment for gains realized in net loss | 384 | 134 | 250 | ||||||||||
Unrealized gains on investment securities | 1,915 | 769 | 1,146 | ||||||||||
Unrecognized benefit obligation expense: | |||||||||||||
Less reclassification adjustment for amortization | (354 | ) | (90 | ) | (264 | ) | |||||||
Other comprehensive income, net | $ | 2,269 | $ | 859 | $ | 1,410 | |||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
Note 15. Fair Value of Financial Instruments | |||||||||||||||||||||
Under FASB ASC Topic 820 “Fair Value Measurements” (“ASC Topic 820”), fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When available, management uses quoted market prices to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates. If observable market-based inputs are not available, the Company uses unobservable inputs to determine appropriate valuation adjustments using discounted cash flow methodologies. | |||||||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period end and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. | |||||||||||||||||||||
ASC Topic 820 provides guidance for estimating fair value when the volume and level of activity for an asset or liability has significantly declined and for identifying circumstances when a transaction is not orderly. ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are as follows: | |||||||||||||||||||||
Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||||||
Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 2 includes debt securities with quoted prices that are traded less frequently then exchange-traded instruments. Valuation techniques include matrix pricing which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. | ||||||||||||||||||||
Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). | ||||||||||||||||||||
A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company did not have transfers of financial instruments within the fair value hierarchy during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||||||||||
Items Measured on a Recurring Basis | |||||||||||||||||||||
The Company’s available for sale investment securities are recorded at fair value on a recurring basis. | |||||||||||||||||||||
Fair value for Level 1 securities are determined by obtaining quoted market prices on nationally recognized securities exchanges. Level 1 securities include common stocks. | |||||||||||||||||||||
Level 2 securities include obligations of U.S. government-sponsored agencies, debt securities with quoted prices, which are traded less frequently than exchange-traded instruments, whose value is determined using matrix pricing with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. The prices were obtained from third party vendors. This category generally includes mortgage-backed securities and CMOs issued by U.S. government and government-sponsored agencies, non-agency CMOs, and corporate and municipal bonds. | |||||||||||||||||||||
Level 3 securities include investments in seven private equity funds which are predominantly invested in real estate. The value of the private equity funds are derived from the funds’ financials and K-1 filings. The Company also reviews the funds’ asset values and its near-term projections. | |||||||||||||||||||||
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of September 30, 2013 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||||||
U.S. government agencies | $ | - | $ | 69,751 | $ | - | $ | 69,751 | |||||||||||||
Mortgage-backed securities-residential | - | 31,839 | - | 31,839 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | - | 165,958 | - | 165,958 | |||||||||||||||||
Non-agency | - | 4,566 | - | 4,566 | |||||||||||||||||
Corporate bonds | - | 9,593 | - | 9,593 | |||||||||||||||||
Municipal bonds | - | 5,328 | - | 5,328 | |||||||||||||||||
Other securities | - | - | 4,262 | 4,262 | |||||||||||||||||
Common stocks | 48 | - | - | 48 | |||||||||||||||||
Total investment securities available-for-sale | $ | 48 | $ | 287,035 | $ | 4,262 | $ | 291,345 | |||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of December 31, 2012 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||||||
U.S. government agencies | $ | - | $ | 66,444 | $ | - | $ | 66,444 | |||||||||||||
Mortgage-backed securities-residential | - | 30,509 | - | 30,509 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | - | 233,976 | - | 233,976 | |||||||||||||||||
Non-agency | - | 1,011 | - | 1,011 | |||||||||||||||||
Corporate bonds | - | 7,437 | - | 7,437 | |||||||||||||||||
Municipal bonds | - | 5,615 | - | 5,615 | |||||||||||||||||
Other securities | - | - | 4,164 | 4,164 | |||||||||||||||||
Common stocks | 47 | - | - | 47 | |||||||||||||||||
Total investment securities available-for-sale | $ | 47 | $ | 344,992 | $ | 4,164 | $ | 349,203 | |||||||||||||
The following table presents additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Investment Securities Available for Sale | Other securities | ||||||||||||||||||||
Beginning balance January 1, 2013 | $ | 4,164 | |||||||||||||||||||
Total gains/(losses) - (realized/unrealized): | |||||||||||||||||||||
Included in earnings | 5 | ||||||||||||||||||||
Included in other comprehensive income | 361 | ||||||||||||||||||||
Purchases | 32 | ||||||||||||||||||||
Sales and calls | (300 | ) | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | ||||||||||||||||||||
Ending balance September 30, 2013 | $ | 4,262 | |||||||||||||||||||
Investment Securities Available for Sale | |||||||||||||||||||||
Trust | |||||||||||||||||||||
preferred | Other | ||||||||||||||||||||
(In thousands) | securities | securities | Total | ||||||||||||||||||
Beginning balance January 1, 2012 | $ | 12,603 | $ | 6,918 | $ | 19,521 | |||||||||||||||
Total gains/(losses) - (realized/unrealized): | |||||||||||||||||||||
Included in earnings | 89 | (818 | ) | (729 | ) | ||||||||||||||||
Included in other comprehensive income | (392 | ) | (189 | ) | (581 | ) | |||||||||||||||
Purchases | - | 500 | 500 | ||||||||||||||||||
Sales and calls | (4,362 | ) | (575 | ) | (4,937 | ) | |||||||||||||||
Amortization of premium | (16 | ) | - | (16 | ) | ||||||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||||||||
Ending balance September 30, 2012 | $ | 7,922 | $ | 5,836 | $ | 13,758 | |||||||||||||||
Items Measured on a Nonrecurring Basis | |||||||||||||||||||||
Non-accrual loans and TDRs are evaluated for impairment on an individual basis under FASB ASC Topic 310 “Receivables”. The impairment analysis includes current collateral values, known relevant factors that may affect loan collectability, and risks inherent in different kinds of lending. When the collateral value or discounted cash flows less costs to sell is less than the carrying value of the loan a specific reserve (valuation allowance) is established. Loans held for sale are carried at the lower of cost or fair value. OREO is carried at the lower of cost or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. | |||||||||||||||||||||
For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of September 30, 2013 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans and leases | $ | - | $ | - | $ | 9,555 | $ | 9,555 | |||||||||||||
Other real estate owned | - | - | 8,740 | 8,740 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of December 31, 2012 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans and leases | $ | - | $ | - | $ | 9,180 | $ | 9,180 | |||||||||||||
Other real estate owned | - | - | 7,632 | 7,632 | |||||||||||||||||
Loans and leases held for sale | - | - | 1,572 | 1,572 | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
Balances as of September 30, 2013 | Valuation | Unobservable | Range (Weighted | ||||||||||||||||||
(In thousands) | Fair Value | Techniques | Input | Average) | |||||||||||||||||
Impaired loans and leases | $ | 9,555 | Appraisal of collateral (1) | Appraisal adjustments | 0.0% to -20.0% (-9.2%) | ||||||||||||||||
Liquidation expenses | -4.0% to -23.3% (-6.5%) | ||||||||||||||||||||
Salvageable value of | 0 | % | |||||||||||||||||||
collateral (2) | |||||||||||||||||||||
Other real estate owned | 8,740 | Appraisal of collateral (1) | Appraisal adjustments | 0.0% to -81.1% (-4.4%) | |||||||||||||||||
Sales prices | Liquidation expenses | -5.0% to -8.0% (-6.3%) | |||||||||||||||||||
(1) | Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. Fair value may also be based on negotiated settlements with the borrower. | ||||||||||||||||||||
-2 | Leases are measured using the salvageable value of the collateral. | ||||||||||||||||||||
The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at September 30, 2013 and December 31, 2012. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The methodologies for estimating the fair value of financial instruments that are measured on a recurring or nonrecurring basis are discussed above. | |||||||||||||||||||||
Cash and cash equivalents (carried at cost): | |||||||||||||||||||||
The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. | |||||||||||||||||||||
Securities: | |||||||||||||||||||||
Management uses quoted market prices to determine fair value of securities (level 1). If quoted prices are not available, fair value is based upon valuation techniques such as matrix pricing or other models that use, where possible, current market-based or independently sourced market parameters, such as interest rates (level 2). If observable market-based inputs are not available, the Company uses unobservable inputs to determine appropriate valuation adjustments using discounted cash flow methodologies (level 3). | |||||||||||||||||||||
Other Investment (carried at cost): | |||||||||||||||||||||
This investment includes the Solomon Hess SBA Loan Fund, which the Company invested in to partially satisfy its community reinvestment requirement. Shares in this fund are not publicly traded and therefore have no readily determinable fair market value. An investor can have their investment in the Fund redeemed for the balance of their capital account at any quarter end with 60 days notice to the Fund. The investment in this Fund is recorded at cost. The fair value is computed by applying the Company’s ownership percentage of the fund to the fund’s net asset value at year end. | |||||||||||||||||||||
Restricted investment in bank stock (carried at cost): | |||||||||||||||||||||
The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities. | |||||||||||||||||||||
Loans held for sale (carried at lower of cost or fair value): | |||||||||||||||||||||
The fair values of loans held for sale are based upon appraised values of the collateral less costs to sell, management’s estimation of the value of the collateral or expected net sales proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. | |||||||||||||||||||||
Loans receivable (carried at cost): | |||||||||||||||||||||
The fair values of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. | |||||||||||||||||||||
Impaired loans (generally carried at fair value): | |||||||||||||||||||||
Impaired loans are accounted for under ASC Topic 310. Impaired loans are those in which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. | |||||||||||||||||||||
Accrued interest receivable and payable (carried at cost): | |||||||||||||||||||||
The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. | |||||||||||||||||||||
Deposit liabilities (carried at cost): | |||||||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||||||
Short-term borrowings (carried at cost): | |||||||||||||||||||||
The carrying amounts of short-term borrowings approximate their fair values. | |||||||||||||||||||||
Long-term debt (carried at cost): | |||||||||||||||||||||
Fair values of FHLB advances and other long-term borrowings are estimated using discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third party. | |||||||||||||||||||||
Subordinated debt (carried at cost): | |||||||||||||||||||||
Fair values of junior subordinated debt are estimated using discounted cash flow analysis, based on market rates currently offered on such debt with similar credit risk characteristics, terms, and remaining maturity. | |||||||||||||||||||||
Off-balance sheet financial instruments (disclosed at cost): | |||||||||||||||||||||
Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. They are not shown in the table because the amounts are immaterial. | |||||||||||||||||||||
The tables below state the fair value of the Company’s financial instruments at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Estimated | Assets | Inputs | Inputs | |||||||||||||||||
(In thousands) | amount | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,854 | $ | 18,854 | $ | 18,854 | $ | - | $ | - | |||||||||||
Investment securities available-for-sale | 291,345 | 291,345 | 48 | 287,035 | 4,262 | ||||||||||||||||
Other investment | 2,250 | 2,250 | - | - | 2,250 | ||||||||||||||||
Federal Home Loan Bank stock | 4,364 | 4,364 | - | - | 4,364 | ||||||||||||||||
Loans, net | 362,650 | 356,964 | - | - | 356,964 | ||||||||||||||||
Accrued interest receivable | 7,869 | 7,869 | - | 7,869 | - | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 63,338 | 63,338 | - | 63,338 | - | ||||||||||||||||
NOW and money markets | 202,014 | 202,014 | - | 202,014 | - | ||||||||||||||||
Savings | 17,588 | 17,588 | - | 17,588 | - | ||||||||||||||||
Time deposits | 239,680 | 237,679 | - | 237,679 | - | ||||||||||||||||
Short-term borrowings | 14,000 | 14,000 | 14,000 | - | - | ||||||||||||||||
Long-term borrowings | 97,994 | 94,832 | - | 94,832 | - | ||||||||||||||||
Subordinated debt | 25,774 | 24,579 | - | 24,579 | - | ||||||||||||||||
Accrued interest payable | 2,471 | 2,471 | - | 2,471 | - | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Estimated | Assets | Inputs | Inputs | |||||||||||||||||
(In thousands) | amount | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 28,802 | $ | 28,802 | $ | 28,802 | $ | - | $ | - | |||||||||||
Investment securities available-for-sale | 349,203 | 349,203 | 47 | 344,992 | 4,164 | ||||||||||||||||
Other investment | 2,250 | 2,250 | - | - | 2,250 | ||||||||||||||||
Federal Home Loan Bank stock | 6,011 | 6,011 | - | - | 6,011 | ||||||||||||||||
Loans held for sale | 1,572 | 1,572 | - | - | 1,572 | ||||||||||||||||
Loans, net | 326,904 | 330,260 | - | - | 330,260 | ||||||||||||||||
Accrued interest receivable | 10,256 | 10,256 | - | 10,256 | - | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 58,531 | 58,531 | - | 58,531 | - | ||||||||||||||||
NOW and money markets | 223,279 | 223,279 | - | 223,279 | - | ||||||||||||||||
Savings | 17,472 | 17,472 | - | 17,472 | - | ||||||||||||||||
Time deposits | 255,635 | 251,532 | - | 251,532 | - | ||||||||||||||||
Long-term borrowings | 108,333 | 102,824 | - | 102,824 | - | ||||||||||||||||
Subordinated debt | 25,774 | 23,837 | - | 23,837 | - | ||||||||||||||||
Accrued interest payable | 3,760 | 3,760 | - | 3,760 | - | ||||||||||||||||
Limitations | |||||||||||||||||||||
The fair value estimates are made at a discrete point in time based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. | |||||||||||||||||||||
These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Further, the foregoing estimates may not reflect the actual amount that could be realized if all or substantially all of the financial instruments were offered for sale. This is due to the fact that no market exists for a sizable portion of the loan, deposit and off balance sheet instruments. | |||||||||||||||||||||
In addition, the fair value estimates are based on existing on-and-off balance sheet financial instruments without attempting to value anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets that are not considered financial assets include premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. | |||||||||||||||||||||
Finally, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates which must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies introduces a greater degree of subjectivity to these estimated fair values. | |||||||||||||||||||||
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Segment Information | ' | ||||||||||||
Note 16. Segment Information | |||||||||||||
FASB ASC Topic 280, “Segment Reporting” (“ASC Topic 280”) established standards for public business enterprises to report information about operating segments in their annual financial statements and requires that those enterprises report selected information about operating segments in subsequent interim financial reports issued to shareholders. It also established standards for related disclosure about products and services, geographic areas, and major customers. Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision makers in deciding how to allocate and assess resources and performance. The Company’s chief operating decision makers are the CEO and the Chief Administrative and Risk Officer (“CARO”).The Company has identified its reportable operating segments as “Community Banking” and “Tax Liens”. | |||||||||||||
Community banking | |||||||||||||
The Company’s Community Banking segment which includes Royal Bank consists of commercial and retail banking and leasing. The Community Banking business segment is managed as a single strategic unit which generates revenue from a variety of products and services provided by Royal Bank. For example, commercial lending is dependent upon the ability of Royal Bank to fund cash needed to make loans with retail deposits and other borrowings and to manage interest rate and credit risk. | |||||||||||||
Tax lien operation | |||||||||||||
The Company’s Tax Lien Operation consists of purchasing delinquent tax certificates from local municipalities at auction and then processing those liens to either encourage the property holder to pay off the lien, or to foreclose and sell the property. The tax lien operation earns income based on interest rates (determined at auction) and penalties assigned by the municipality along with gains on sale of foreclosed properties. | |||||||||||||
The following tables present selected financial information for reportable business segments for the three and nine month periods ended September 30, 2013 and 2012. | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 708,864 | $ | 28,136 | $ | 737,000 | |||||||
Total deposits | $ | 522,620 | $ | - | $ | 522,620 | |||||||
Interest income | $ | 6,485 | $ | 475 | $ | 6,960 | |||||||
Interest expense | 1,560 | 330 | 1,890 | ||||||||||
Net interest income | $ | 4,925 | $ | 145 | $ | 5,070 | |||||||
Provision for loan and lease losses | 178 | 40 | 218 | ||||||||||
Total other income | 1,344 | 593 | 1,937 | ||||||||||
Total other expenses | 5,683 | 607 | 6,290 | ||||||||||
Income tax expense (benefit) | - | - | - | ||||||||||
Net income | $ | 408 | $ | 91 | $ | 499 | |||||||
Noncontrolling interest | $ | 121 | $ | 36 | $ | 157 | |||||||
Net income attributable to Royal Bancshares | $ | 287 | $ | 55 | $ | 342 | |||||||
Three months ended September 30, 2012 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 759,099 | $ | 42,582 | $ | 801,681 | |||||||
Total deposits | $ | 571,250 | $ | - | $ | 571,250 | |||||||
Interest income | $ | 6,542 | $ | 1,219 | $ | 7,761 | |||||||
Interest expense | 1,782 | 597 | 2,379 | ||||||||||
Net interest income | $ | 4,760 | $ | 622 | $ | 5,382 | |||||||
Provision (credit) for loan and lease losses | 1,796 | (35 | ) | 1,761 | |||||||||
Total other income | 847 | 304 | 1,151 | ||||||||||
Total other expenses | 8,851 | 558 | 9,409 | ||||||||||
Income tax (benefit) expense | (156 | ) | 156 | - | |||||||||
Net (loss) income | $ | (4,884 | ) | $ | 247 | $ | (4,637 | ) | |||||
Noncontrolling interest | $ | 76 | $ | 99 | $ | 175 | |||||||
Net (loss) income attributable to Royal Bancshares | $ | (4,960 | ) | $ | 148 | $ | (4,812 | ) | |||||
Nine months ended September 30, 2013 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 708,864 | $ | 28,136 | $ | 737,000 | |||||||
Total deposits | $ | 522,620 | $ | - | $ | 522,620 | |||||||
Interest income | $ | 18,511 | $ | 1,944 | $ | 20,455 | |||||||
Interest expense | 4,525 | 1,142 | 5,667 | ||||||||||
Net interest income | $ | 13,986 | $ | 802 | $ | 14,788 | |||||||
(Credit) provision for loan and lease losses | (563 | ) | 367 | (196 | ) | ||||||||
Total other income | 3,056 | 1,250 | 4,306 | ||||||||||
Total other expenses | 16,348 | 3,649 | 19,997 | ||||||||||
Income tax expense (benefit) | - | - | - | ||||||||||
Net income (loss ) | $ | 1,257 | $ | (1,964 | ) | $ | (707 | ) | |||||
Noncontrolling interest | $ | 422 | $ | (786 | ) | $ | (364 | ) | |||||
Net income (loss) attributable to Royal Bancshares | $ | 835 | $ | (1,178 | ) | $ | (343 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 759,099 | $ | 42,582 | $ | 801,681 | |||||||
Total deposits | $ | 571,250 | $ | - | $ | 571,250 | |||||||
Interest income | $ | 20,833 | $ | 4,157 | $ | 24,990 | |||||||
Interest expense | 5,494 | 2,215 | 7,709 | ||||||||||
Net interest income | $ | 15,339 | $ | 1,942 | $ | 17,281 | |||||||
Provision for loan and lease losses | 3,239 | 121 | 3,360 | ||||||||||
Total other income | 3,434 | 323 | 3,757 | ||||||||||
Total other expenses | 21,435 | 4,633 | 26,068 | ||||||||||
Income tax expense (benefit) | 201 | (201 | ) | - | |||||||||
Net loss | $ | (6,102 | ) | $ | (2,288 | ) | $ | (8,390 | ) | ||||
Noncontrolling interest | $ | (1,398 | ) | $ | 639 | $ | (759 | ) | |||||
Net loss attributable to Royal Bancshares | $ | (4,704 | ) | $ | (2,927 | ) | $ | (7,631 | ) | ||||
Interest income earned by the Community Banking segment related to the Tax Lien Operation was approximately $330,000 and $597,000 for the three month periods ended September 30, 2013 and 2012, respectively and $1.1 million and $2.2 million for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||
Federal_Home_Loan_Bank_Stock
Federal Home Loan Bank Stock | 9 Months Ended |
Sep. 30, 2013 | |
Federal Home Loan Bank Stock [Abstract] | ' |
Federal Home Loan Bank Stock | ' |
Note 17. Federal Home Loan Bank Stock | |
As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The stock can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, there is no active market for the FHLB stock. As of September 30, 2013 and December 31, 2012, FHLB stock totaled $4.4 million and $6.0 million, respectively. | |
FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. The Company evaluates impairment quarterly. The decision of whether impairment exists is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: (1) its operating performance, (2) the severity and duration of declines in the fair value of its net assets related to its capital stock amount, (3) its liquidity position, and (4) the impact of legislative and regulatory changes on the FHLB. Based on the capital adequacy and the liquidity position of the FHLB, management believes that the par value of its investment in FHLB stock will be recovered. Accordingly, there is no other-than-temporary impairment related to the carrying amount of the Company’s FHLB stock as of September 30, 2013. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Summary of Significant Accounting Policies [Abstract] | ' |
Basis of Financial Presentation | ' |
Basis of Financial Presentation | |
The accompanying unaudited consolidated financial statements include the accounts of Royal Bancshares of Pennsylvania, Inc. (“Royal Bancshares” or the “Company”) and its wholly-owned subsidiaries, Royal Investments of Delaware, Inc., including Royal Investments of Delaware, Inc.’s wholly-owned subsidiary, Royal Preferred, LLC, and Royal Bank America (“Royal Bank”), including Royal Bank’s subsidiaries, Royal Real Estate of Pennsylvania, Inc., Royal Investments America, LLC, RBA Property LLC, Narberth Property Acquisition LLC, Rio Marina LLC, and its three 60% ownership interests in Crusader Servicing Corporation, Royal Tax Lien Services, LLC, and Royal Bank America Leasing, LP. The two Delaware trusts, Royal Bancshares Capital Trust I and Royal Bancshares Capital Trust II are not consolidated per requirements under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810, “Consolidation” (“ASC Topic 810”). These consolidated financial statements reflect the historical information of the Company. All significant intercompany transactions and balances have been eliminated. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Applications of the principles in the Company’s preparation of the consolidated financial statements in conformity with U.S. GAAP require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the accompanying notes. These estimates and assumptions are based on information available as of the date of the consolidated financial statements; therefore, actual results could differ from those estimates. The interim financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normal recurring adjustments) that are, in the opinion of management, necessary to present a fair statement of the results for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year. | |
Reclassifications | ' |
Reclassifications | |
Certain items in the 2012 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net loss for the periods presented herein as a result of reclassification. | |
Accounting Policies Recently Adopted and Pending Accounting Pronouncements | ' |
Accounting Policies Recently Adopted and Pending Accounting Pronouncements | |
In December 2011, the FASB issued Accounting Standards Update (“ASU”) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). Because of the significant differences in requirements under U.S. GAAP and IFRS, FASB and the International Accounting Standards Board (“IASB”) are issuing joint requirements that will enhance current disclosures. Entities are required to disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. This scope would include derivatives, sale and repurchase agreements and reverse sale and repurchase agreements, and securities borrowing and securities lending arrangements. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS. ASU 2011-11 is effective for annual periods beginning on or after January 1, 2013 and interim periods within those annual periods. An entity should provide the disclosures required by these amendments retrospectively for all comparative periods presented. The adoption of ASU 2011-11 did not have a significant impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (“ASU 2013-02”) to improve the reporting of reclassifications out of accumulated comprehensive income. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements. However, ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. ASU 2013-02 is effective for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a significant impact on the Company’s consolidated financial statements. | |
In February 2013, the FASB issued ASU No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date (ASU 2013-04). ASU 2013-04 provides guidance for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements. ASU 2013-04 requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: | |
a. The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors | |
b. Any additional amount the reporting entity expects to pay on behalf of its co-obligors. | |
ASU 2013-04 also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. For public companies ASU 2013-04 is effective for reporting periods beginning after December 15, 2013. The adoption of ASU 2013-04 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). Currently there is diversity in practice in the presentation of unrecognized tax benefits. The aim of ASU 2013-11 is to provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. An unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except for circumstances outlined in ASU 2013-11. For public companies ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-04 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||||||||||
Amortized cost, gross unrealized gains and losses, and fair value of available-for-sale investment securities | ' | ||||||||||||||||||||||||
The carrying value and fair value of investment securities AFS at September 30, 2013 are as follows: | |||||||||||||||||||||||||
Included in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss (AOCL) | |||||||||||||||||||||||||
Gross unrealized losses | |||||||||||||||||||||||||
(In thousands) | Amortized | Gross | Non-OTTI | Non-credit | Fair value | ||||||||||||||||||||
cost | unrealized | in AOCL | related OTTI | ||||||||||||||||||||||
gains | in AOCL | ||||||||||||||||||||||||
U.S. government agencies | $ | 74,355 | $ | 9 | $ | (4,613 | ) | $ | - | $ | 69,751 | ||||||||||||||
Mortgage-backed securities-residential | 32,460 | 340 | (961 | ) | - | 31,839 | |||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 164,729 | 2,876 | (1,647 | ) | - | 165,958 | |||||||||||||||||||
Non-agency | 4,566 | - | - | - | 4,566 | ||||||||||||||||||||
Corporate bonds | 9,777 | 30 | (214 | ) | - | 9,593 | |||||||||||||||||||
Municipal bonds | 5,514 | - | (186 | ) | - | 5,328 | |||||||||||||||||||
Other securities | 3,489 | 920 | (147 | ) | - | 4,262 | |||||||||||||||||||
Common stocks | 33 | 15 | - | - | 48 | ||||||||||||||||||||
Total available for sale | $ | 294,923 | $ | 4,190 | $ | (7,768 | ) | $ | - | $ | 291,345 | ||||||||||||||
The carrying value and fair value of investment securities AFS at December 31, 2012 are as follows: | |||||||||||||||||||||||||
Included in Accumulated Other | |||||||||||||||||||||||||
Comprehensive Loss (AOCL) | |||||||||||||||||||||||||
Gross unrealized losses | |||||||||||||||||||||||||
(In thousands) | Amortized | Gross | Non-OTTI | Non-credit | Fair value | ||||||||||||||||||||
cost | unrealized | in AOCL | related OTTI | ||||||||||||||||||||||
gains | in AOCL | ||||||||||||||||||||||||
U.S. government agencies | $ | 66,371 | $ | 151 | $ | (78 | ) | $ | - | $ | 66,444 | ||||||||||||||
Mortgage-backed securities-residential | 30,038 | 518 | (47 | ) | - | 30,509 | |||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 229,556 | 5,031 | (611 | ) | - | 233,976 | |||||||||||||||||||
Non-agency | 1,007 | 4 | - | - | 1,011 | ||||||||||||||||||||
Corporate bonds | 7,477 | 32 | (72 | ) | - | 7,437 | |||||||||||||||||||
Municipal bonds | 5,645 | - | (30 | ) | - | 5,615 | |||||||||||||||||||
Other securities | 3,752 | 520 | (108 | ) | - | 4,164 | |||||||||||||||||||
Common stocks | 33 | 14 | - | - | 47 | ||||||||||||||||||||
Total available for sale | $ | 343,879 | $ | 6,270 | $ | (946 | ) | $ | - | $ | 349,203 | ||||||||||||||
Amortized cost and fair value of investment securities, by contractual maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair value of investment securities at September 30, 2013, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
(In thousands) | Amortized | Fair value | |||||||||||||||||||||||
cost | |||||||||||||||||||||||||
Within 1 year | $ | 15,906 | $ | 14,911 | |||||||||||||||||||||
After 1 but within 5 years | 6,443 | 6,394 | |||||||||||||||||||||||
After 5 but within 10 years | 34,864 | 32,909 | |||||||||||||||||||||||
After 10 years | 32,433 | 30,458 | |||||||||||||||||||||||
Mortgage-backed securities-residential | 32,460 | 31,839 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 164,729 | 165,958 | |||||||||||||||||||||||
Non-agency | 4,566 | 4,566 | |||||||||||||||||||||||
Total available for sale debt securities | 291,401 | 287,035 | |||||||||||||||||||||||
No contractual maturity | 3,522 | 4,310 | |||||||||||||||||||||||
Total available for sale securities | $ | 294,923 | $ | 291,345 | |||||||||||||||||||||
Gross realized gains and losses realized on sale of securities | ' | ||||||||||||||||||||||||
The following table summarizes gross gains and losses realized on the sale of securities recognized in earnings in the periods indicated: | |||||||||||||||||||||||||
For the three months | For the nine months | ||||||||||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Gross realized gains | $ | - | $ | 225 | $ | 181 | $ | 565 | |||||||||||||||||
Gross realized losses | (1 | ) | - | (112 | ) | (181 | ) | ||||||||||||||||||
Net realized (losses) gains | $ | (1 | ) | $ | 225 | $ | 69 | $ | 384 | ||||||||||||||||
Schedule of credit related impairment losses on debt securities held, for portion of OTTI was recognized in other comprehensive income | ' | ||||||||||||||||||||||||
The following table summarizes OTTI losses on securities recognized in earnings in the periods indicated: | |||||||||||||||||||||||||
For the three months | For the nine months | ||||||||||||||||||||||||
ended September 30, | ended September 30, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Other securities | $ | - | $ | - | $ | - | $ | 859 | |||||||||||||||||
Total OTTI charges | $ | - | $ | - | $ | - | $ | 859 | |||||||||||||||||
The following table presents a roll-forward of the balance of credit-related impairment losses on debt securities held at September 30, 2013 and 2012 for which a portion of OTTI was recognized in other comprehensive income: | |||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||
Balance at January 1, | $ | 173 | $ | 173 | |||||||||||||||||||||
Reductions for securities sold during the period (realized) | (173 | ) | - | ||||||||||||||||||||||
Balance at September 30, | $ | - | $ | 173 | |||||||||||||||||||||
Investment securities in a continuous unrealized loss position | ' | ||||||||||||||||||||||||
The tables below indicate the length of time individual securities have been in a continuous unrealized loss position at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||
30-Sep-13 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(In thousands) | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | |||||||||||||||||||
U.S. government agencies | $ | 65,743 | $ | (4,613 | ) | $ | - | $ | - | $ | 65,743 | $ | (4,613 | ) | |||||||||||
Mortgage-backed securities-residential | 23,156 | (961 | ) | - | - | 23,156 | (961 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 56,816 | (1,647 | ) | - | - | 56,816 | (1,647 | ) | |||||||||||||||||
Corporate bonds | 5,875 | (203 | ) | 988 | (11 | ) | 6,863 | (214 | ) | ||||||||||||||||
Municipal bonds | 5,328 | (186 | ) | - | - | 5,328 | (186 | ) | |||||||||||||||||
Other securities | 297 | (147 | ) | - | - | 297 | (147 | ) | |||||||||||||||||
Total available-for-sale | $ | 157,215 | $ | (7,757 | ) | $ | 988 | $ | (11 | ) | $ | 158,203 | $ | (7,768 | ) | ||||||||||
31-Dec-12 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||
(In thousands) | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | Fair value | Gross unrealized losses | |||||||||||||||||||
U.S. government agencies | $ | 23,818 | $ | (78 | ) | $ | - | $ | - | $ | 23,818 | $ | (78 | ) | |||||||||||
Mortgage-backed securities-residential | 7,280 | (47 | ) | - | - | 7,280 | (47 | ) | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 44,937 | (592 | ) | 3,975 | (19 | ) | 48,912 | (611 | ) | ||||||||||||||||
Corporate bonds | 2,165 | (13 | ) | 941 | (59 | ) | 3,106 | (72 | ) | ||||||||||||||||
Municipal bonds | 4,597 | (21 | ) | 882 | (9 | ) | 5,479 | (30 | ) | ||||||||||||||||
Other securities | 289 | (38 | ) | 255 | (70 | ) | 544 | (108 | ) | ||||||||||||||||
Total available-for-sale | $ | 83,086 | $ | (789 | ) | $ | 6,053 | $ | (157 | ) | $ | 89,139 | $ | (946 | ) |
Loans_and_Leases_Tables
Loans and Leases (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans and Leases [Abstract] | ' | ||||||||||||||||||||||||||||||||
Major classifications of loans held for investment | ' | ||||||||||||||||||||||||||||||||
Major classifications of LHFI are as follows: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Commercial real estate | $ | 158,223 | $ | 167,115 | |||||||||||||||||||||||||||||
Construction and land development | 39,594 | 37,215 | |||||||||||||||||||||||||||||||
Commercial and industrial | 86,401 | 40,560 | |||||||||||||||||||||||||||||||
Multi-family | 11,678 | 11,756 | |||||||||||||||||||||||||||||||
Residential real estate | 24,830 | 24,981 | |||||||||||||||||||||||||||||||
Leases | 40,408 | 37,347 | |||||||||||||||||||||||||||||||
Tax certificates | 15,364 | 24,569 | |||||||||||||||||||||||||||||||
Consumer | 831 | 1,139 | |||||||||||||||||||||||||||||||
Total gross loans | $ | 377,329 | $ | 344,682 | |||||||||||||||||||||||||||||
Deferred fees, net* | - | (517 | ) | ||||||||||||||||||||||||||||||
Total loans and leases | $ | 377,329 | $ | 344,165 | |||||||||||||||||||||||||||||
*For the 2013 period net deferred fees were allocated among the loan types. | |||||||||||||||||||||||||||||||||
Risk ratings for loan portfolio segment | ' | ||||||||||||||||||||||||||||||||
The following tables present risk ratings for each loan portfolio segment at September 30, 2013 and December 31, 2012, excluding LHFS. | |||||||||||||||||||||||||||||||||
30-Sep-13 | Special | ||||||||||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Mention | Substandard | Non-accrual | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 95,250 | $ | 37,150 | $ | 16,667 | $ | 3,679 | $ | 5,477 | $ | 158,223 | |||||||||||||||||||||
Construction and land development | 7,235 | 17,493 | 11,595 | 572 | 2,699 | 39,594 | |||||||||||||||||||||||||||
Commercial and industrial | 48,108 | 18,064 | 5,971 | 10,403 | 3,855 | 86,401 | |||||||||||||||||||||||||||
Multi-family | 8,994 | 2,108 | 576 | - | - | 11,678 | |||||||||||||||||||||||||||
Residential real estate | 24,310 | - | - | - | 520 | 24,830 | |||||||||||||||||||||||||||
Leases | 39,890 | 56 | 77 | - | 385 | 40,408 | |||||||||||||||||||||||||||
Tax certificates | 14,832 | - | - | - | 532 | 15,364 | |||||||||||||||||||||||||||
Consumer | 772 | 59 | - | - | - | 831 | |||||||||||||||||||||||||||
Total LHFI | $ | 239,391 | $ | 74,930 | $ | 34,886 | $ | 14,654 | $ | 13,468 | $ | 377,329 | |||||||||||||||||||||
31-Dec-12 | Special | ||||||||||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Mention | Substandard | Non-accrual | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 64,308 | $ | 69,510 | $ | 19,529 | $ | 3,423 | $ | 10,345 | $ | 167,115 | |||||||||||||||||||||
Construction and land development | 2,139 | 13,872 | 16,343 | 581 | 4,280 | 37,215 | |||||||||||||||||||||||||||
Commercial and industrial | 14,764 | 10,774 | 92 | 9,969 | 4,961 | 40,560 | |||||||||||||||||||||||||||
Multi-family | 9,019 | 2,034 | 703 | - | - | 11,756 | |||||||||||||||||||||||||||
Residential real estate | 15,125 | 6,634 | 602 | 1,626 | 994 | 24,981 | |||||||||||||||||||||||||||
Leases | 36,755 | 325 | 16 | - | 251 | 37,347 | |||||||||||||||||||||||||||
Tax certificates | 23,968 | - | - | - | 601 | 24,569 | |||||||||||||||||||||||||||
Consumer | 926 | 213 | - | - | - | 1,139 | |||||||||||||||||||||||||||
Subtotal LHFI | 167,004 | 103,362 | 37,285 | 15,599 | 21,432 | 344,682 | |||||||||||||||||||||||||||
Less: Deferred loan fees | (517 | ) | |||||||||||||||||||||||||||||||
Total LHFI | $ | 344,165 | |||||||||||||||||||||||||||||||
Aging analysis of past due payments for loan portfolio segment | ' | ||||||||||||||||||||||||||||||||
The following tables present an aging analysis of past due payments for each loan portfolio segment at September 30, 2013 and December 31, 2012, excluding LHFS. | |||||||||||||||||||||||||||||||||
30-Sep-13 | 30-59 Days | 60-89 Days | Accruing | Total | |||||||||||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 1,005 | $ | 3,152 | $ | - | $ | 5,477 | $ | 148,589 | $ | 158,223 | |||||||||||||||||||||
Construction and land development | - | - | - | 2,699 | 36,895 | 39,594 | |||||||||||||||||||||||||||
Commercial and industrial | 109 | - | - | 3,855 | 82,437 | 86,401 | |||||||||||||||||||||||||||
Multi-family | - | - | - | - | 11,678 | 11,678 | |||||||||||||||||||||||||||
Residential real estate | 267 | 419 | - | 520 | 23,624 | 24,830 | |||||||||||||||||||||||||||
Leases | 162 | - | - | 385 | 39,861 | 40,408 | |||||||||||||||||||||||||||
Tax certificates | - | - | - | 532 | 14,832 | 15,364 | |||||||||||||||||||||||||||
Consumer | 19 | - | - | - | 812 | 831 | |||||||||||||||||||||||||||
Subtotal LHFI | $ | 1,562 | $ | 3,571 | $ | - | $ | 13,468 | $ | 358,728 | $ | 377,329 | |||||||||||||||||||||
31-Dec-12 | 30-59 Days | 60-89 Days | Accruing | Total | |||||||||||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | |||||||||||||||||||||||||||
Commercial real estate | $ | 1,548 | $ | 1,486 | $ | - | $ | 10,345 | $ | 153,736 | $ | 167,115 | |||||||||||||||||||||
Construction and land development | - | - | - | 4,280 | 32,935 | 37,215 | |||||||||||||||||||||||||||
Commercial and industrial | 200 | - | - | 4,961 | 35,399 | 40,560 | |||||||||||||||||||||||||||
Multi-family | - | - | - | - | 11,756 | 11,756 | |||||||||||||||||||||||||||
Residential real estate | 562 | 486 | - | 994 | 22,939 | 24,981 | |||||||||||||||||||||||||||
Leases | 325 | 16 | - | 251 | 36,755 | 37,347 | |||||||||||||||||||||||||||
Tax certificates | - | - | - | 601 | 23,968 | 24,569 | |||||||||||||||||||||||||||
Consumer | - | - | - | - | 1,139 | 1,139 | |||||||||||||||||||||||||||
Subtotal LHFI | 2,635 | 1,988 | - | 21,432 | 318,627 | 344,682 | |||||||||||||||||||||||||||
Less: Deferred loan fees | (517 | ) | |||||||||||||||||||||||||||||||
Total LHFI | $ | 344,165 | |||||||||||||||||||||||||||||||
Composition of the non-accrual loans | ' | ||||||||||||||||||||||||||||||||
The following tables detail the composition of the non-accrual loans at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
(In thousands) | Loan balance | Specific reserves | Loan balance | Specific reserves | |||||||||||||||||||||||||||||
Non-accrual loans held for investment | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,477 | $ | 230 | $ | 10,345 | $ | 835 | |||||||||||||||||||||||||
Construction and land development | 2,699 | - | 4,280 | 820 | |||||||||||||||||||||||||||||
Commercial and industrial | 3,855 | 209 | 4,961 | 255 | |||||||||||||||||||||||||||||
Residential real estate | 520 | 16 | 994 | 14 | |||||||||||||||||||||||||||||
Leases | 385 | 138 | 251 | 55 | |||||||||||||||||||||||||||||
Tax certificates | 532 | 67 | 601 | 47 | |||||||||||||||||||||||||||||
Total non-accrual LHFI | $ | 13,468 | $ | 660 | $ | 21,432 | $ | 2,026 | |||||||||||||||||||||||||
Non-accrual loans held for sale | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | - | $ | - | $ | 1,572 | $ | - | |||||||||||||||||||||||||
Total non-accrual LHFS | $ | - | $ | - | $ | 1,572 | $ | - | |||||||||||||||||||||||||
Total non-accrual loans | $ | 13,468 | $ | 660 | $ | 23,004 | $ | 2,026 | |||||||||||||||||||||||||
Information pertaining to impaired Loans | ' | ||||||||||||||||||||||||||||||||
The following is a summary of information pertaining to impaired loans: | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||||||||||||||
Impaired loans with a valuation allowance | $ | 5,550 | $ | 9,405 | |||||||||||||||||||||||||||||
Impaired loans without a valuation allowance | 17,868 | 19,423 | |||||||||||||||||||||||||||||||
Impaired LHFS | - | 1,572 | |||||||||||||||||||||||||||||||
Total impaired loans | $ | 23,418 | $ | 30,400 | |||||||||||||||||||||||||||||
Valuation allowance related to impaired loans | $ | 660 | $ | 2,026 | |||||||||||||||||||||||||||||
Troubled debt restructurings that are on an accrual status and a non-accrual status | ' | ||||||||||||||||||||||||||||||||
The following table details the Company’s TDRs that are on an accrual status and a non-accrual status at September 30, 2013. | |||||||||||||||||||||||||||||||||
(In thousands) | Number of loans | Accrual Status | Non-Accrual Status | Total TDRs | |||||||||||||||||||||||||||||
Construction and land development | 4 | $ | 1,320 | $ | 497 | $ | 1,817 | ||||||||||||||||||||||||||
Commercial real estate | 4 | 4,295 | 4,550 | 8,845 | |||||||||||||||||||||||||||||
Commercial and industrial | 3 | 4,531 | 2,038 | 6,569 | |||||||||||||||||||||||||||||
Residential real estate | 2 | - | 130 | 130 | |||||||||||||||||||||||||||||
Total | 13 | $ | 10,146 | $ | 7,215 | $ | 17,361 | ||||||||||||||||||||||||||
Newly restructured loans | ' | ||||||||||||||||||||||||||||||||
The following table presents new TDRs that occurred during the nine months ended September 30, 2013. The Company did not classify any restructuring as TDR’s during the third quarter of 2013. | |||||||||||||||||||||||||||||||||
Modifications by type for the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | Number of loans | Rate | Term | Payment | Combination of types | Total | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | |||||||||||||||||||||||||
Commercial real estate | 2 | $ | - | $ | - | $ | - | $ | 3,705 | $ | 3,705 | $ | 3,761 | $ | 3,761 | ||||||||||||||||||
Commercial and industrial | 1 | - | - | - | 82 | 82 | 87 | 87 | |||||||||||||||||||||||||
Total | 3 | $ | - | $ | - | $ | - | $ | 3,787 | $ | 3,787 | $ | 3,848 | $ | 3,848 | ||||||||||||||||||
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Abstract] | ' | ||||||||||||||||||||||||||||||||||||||||
Detail of the allowance and loan portfolio disaggregated by loan portfolio segment | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables present the detail of the ALLL and the loan portfolio disaggregated by loan portfolio segment for the three and nine months ended September 30, 2013, the year ended December 31, 2012 and the three and nine months ended September 30, 2012. | |||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,952 | $ | 2,017 | $ | 2,465 | $ | 588 | $ | 353 | $ | 999 | $ | 586 | $ | 18 | $ | 201 | $ | 15,179 | |||||||||||||||||||||
Charge-offs | (605 | ) | - | (34 | ) | - | (32 | ) | (40 | ) | (126 | ) | - | - | (837 | ) | |||||||||||||||||||||||||
Recoveries | 1 | 106 | 4 | - | 2 | 4 | 2 | - | - | 119 | |||||||||||||||||||||||||||||||
Provision | (1,159 | ) | 72 | 1,080 | (114 | ) | 175 | 133 | 41 | (3 | ) | (7 | ) | 218 | |||||||||||||||||||||||||||
Ending balance | $ | 6,189 | $ | 2,195 | $ | 3,515 | $ | 474 | $ | 498 | $ | 1,096 | $ | 503 | $ | 15 | $ | 194 | $ | 14,679 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 230 | $ | - | $ | 209 | $ | - | $ | 16 | $ | 138 | $ | 67 | $ | - | $ | - | $ | 660 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 5,959 | $ | 2,195 | $ | 3,306 | $ | 474 | $ | 482 | $ | 958 | $ | 436 | $ | 15 | $ | 194 | $ | 14,019 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 8,750 | $ | 2,987 | $ | 1,924 | $ | 654 | $ | 1,098 | $ | 1,108 | $ | 472 | $ | 29 | $ | 239 | $ | 17,261 | |||||||||||||||||||||
Charge-offs | (1,440 | ) | (820 | ) | (228 | ) | - | (32 | ) | (149 | ) | (410 | ) | - | - | (3,079 | ) | ||||||||||||||||||||||||
Recoveries | 127 | 297 | 14 | - | 157 | 24 | 74 | - | - | 693 | |||||||||||||||||||||||||||||||
Provision | (1,248 | ) | (269 | ) | 1,805 | (180 | ) | (725 | ) | 113 | 367 | (14 | ) | (45 | ) | (196 | ) | ||||||||||||||||||||||||
Ending balance | $ | 6,189 | $ | 2,195 | $ | 3,515 | $ | 474 | $ | 498 | $ | 1,096 | $ | 503 | $ | 15 | $ | 194 | $ | 14,679 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 230 | $ | - | $ | 209 | $ | - | $ | 16 | $ | 138 | $ | 67 | $ | - | $ | - | $ | 660 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 5,959 | $ | 2,195 | $ | 3,306 | $ | 474 | $ | 482 | $ | 958 | $ | 436 | $ | 15 | $ | 194 | $ | 14,019 | |||||||||||||||||||||
Loans Held for Investment and Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 158,223 | $ | 39,594 | $ | 86,401 | $ | 11,678 | $ | 24,830 | $ | 40,408 | $ | 15,364 | $ | 831 | $ | - | $ | 377,329 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,045 | $ | 4,019 | $ | 8,112 | $ | - | $ | 520 | $ | 190 | $ | 532 | $ | - | $ | - | $ | 23,418 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 148,178 | $ | 35,575 | $ | 78,289 | $ | 11,678 | $ | 24,310 | $ | 40,218 | $ | 14,832 | $ | 831 | $ | - | $ | 353,911 | |||||||||||||||||||||
Allowance for Loan and Leases Losses and Loans Held for Investment | |||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 7,744 | $ | 2,523 | $ | 2,331 | $ | 531 | $ | 1,188 | $ | 1,311 | $ | 425 | $ | 20 | $ | 307 | $ | 16,380 | |||||||||||||||||||||
Charge-offs | (1,313 | ) | (2,452 | ) | (586 | ) | (542 | ) | (111 | ) | (465 | ) | (802 | ) | - | - | (6,271 | ) | |||||||||||||||||||||||
Recoveries | 3 | 816 | 67 | - | 208 | 32 | 29 | - | - | 1,155 | |||||||||||||||||||||||||||||||
Provision | 2,316 | 2,100 | 112 | 665 | (187 | ) | 230 | 820 | 9 | (68 | ) | 5,997 | |||||||||||||||||||||||||||||
Ending balance | $ | 8,750 | $ | 2,987 | $ | 1,924 | $ | 654 | $ | 1,098 | $ | 1,108 | $ | 472 | $ | 29 | $ | 239 | $ | 17,261 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 835 | $ | 820 | $ | 255 | $ | - | $ | 14 | $ | 55 | $ | 47 | $ | - | $ | - | $ | 2,026 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,915 | $ | 2,167 | $ | 1,669 | $ | 654 | $ | 1,084 | $ | 1,053 | $ | 425 | $ | 29 | $ | 239 | $ | 15,235 | |||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 167,115 | $ | 37,215 | $ | 40,560 | $ | 11,756 | $ | 24,981 | $ | 37,347 | $ | 24,569 | $ | 1,139 | $ | - | $ | 344,682 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 10,958 | $ | 5,943 | $ | 10,251 | $ | - | $ | 994 | $ | 81 | $ | 601 | $ | - | $ | - | $ | 28,828 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 156,157 | $ | 31,272 | $ | 30,309 | $ | 11,756 | $ | 23,987 | $ | 37,266 | $ | 23,968 | $ | 1,139 | $ | - | $ | 315,854 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the three months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,679 | $ | 3,738 | $ | 2,206 | $ | 946 | $ | 1,125 | $ | 1,212 | $ | 332 | $ | 20 | $ | 237 | $ | 17,495 | |||||||||||||||||||||
Charge-offs | - | (1,242 | ) | (156 | ) | (541 | ) | (30 | ) | (82 | ) | (29 | ) | - | - | (2,080 | ) | ||||||||||||||||||||||||
Recoveries | - | 232 | 3 | - | - | 6 | - | - | - | 241 | |||||||||||||||||||||||||||||||
Provision | 1,009 | 753 | (103 | ) | 101 | 17 | 13 | (35 | ) | 6 | - | 1,761 | |||||||||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 3,481 | $ | 1,950 | $ | 506 | $ | 1,112 | $ | 1,149 | $ | 268 | $ | 26 | $ | 237 | $ | 17,417 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 1,313 | $ | 1,210 | $ | 222 | $ | - | $ | 22 | $ | 41 | $ | - | $ | - | $ | - | $ | 2,808 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,375 | $ | 2,271 | $ | 1,728 | $ | 506 | $ | 1,090 | $ | 1,108 | $ | 268 | $ | 26 | $ | 237 | $ | 14,609 | |||||||||||||||||||||
Allowance for Loan and Leases Losses | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
Beginning balance | $ | 7,744 | $ | 2,523 | $ | 2,331 | $ | 531 | $ | 1,188 | $ | 1,311 | $ | 425 | $ | 20 | $ | 307 | $ | 16,380 | |||||||||||||||||||||
Charge-offs | - | (1,242 | ) | (364 | ) | (541 | ) | (30 | ) | (377 | ) | (307 | ) | - | - | (2,861 | ) | ||||||||||||||||||||||||
Recoveries | 3 | 423 | 60 | - | 2 | 22 | 28 | - | - | 538 | |||||||||||||||||||||||||||||||
Provision | 941 | 1,777 | (77 | ) | 516 | (48 | ) | 193 | 122 | 6 | (70 | ) | 3,360 | ||||||||||||||||||||||||||||
Ending balance | $ | 8,688 | $ | 3,481 | $ | 1,950 | $ | 506 | $ | 1,112 | $ | 1,149 | $ | 268 | $ | 26 | $ | 237 | $ | 17,417 | |||||||||||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 1,313 | $ | 1,210 | $ | 222 | $ | - | $ | 22 | $ | 41 | $ | - | $ | - | $ | - | $ | 2,808 | |||||||||||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 7,375 | $ | 2,271 | $ | 1,728 | $ | 506 | $ | 1,090 | $ | 1,108 | $ | 268 | $ | 26 | $ | 237 | $ | 14,609 | |||||||||||||||||||||
Loans Held for Investment and Evaluated for Impairment | |||||||||||||||||||||||||||||||||||||||||
For the three and nine months ended September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Commercial real estate | Construction and land development | Commercial and industrial | Multi-family | Residential real estate | Leases | Tax certificates | Consumer | Unallocated | Total | |||||||||||||||||||||||||||||||
LHFI | |||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 161,834 | $ | 40,280 | $ | 39,831 | $ | 8,490 | $ | 26,100 | $ | 38,313 | $ | 27,622 | $ | 1,094 | $ | - | $ | 343,564 | |||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 13,493 | $ | 7,552 | $ | 5,507 | $ | - | $ | 1,273 | $ | 52 | $ | 716 | $ | - | $ | - | $ | 28,593 | |||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 148,341 | $ | 32,728 | $ | 34,324 | $ | 8,490 | $ | 24,827 | $ | 38,261 | $ | 26,906 | $ | 1,094 | $ | - | $ | 314,971 | |||||||||||||||||||||
Financing receivable evaluated for impairment by portfolio segment | ' | ||||||||||||||||||||||||||||||||||||||||
The following tables detail the loans that were evaluated for impairment by loan segment at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||
For the nine months ended September 30, 2013 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Unpaid principal balance | Carrying value | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 10,420 | $ | 9,119 | $ | - | $ | 8,665 | $ | 129 | |||||||||||||||||||||||||||||||
Commercial real estate | 12,054 | 4,019 | - | 4,061 | 45 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,775 | 4,730 | - | 6,401 | 241 | ||||||||||||||||||||||||||||||||||||
Residential real estate | - | - | - | 108 | 27 | ||||||||||||||||||||||||||||||||||||
Tax certificates | - | - | - | 171 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 27,249 | $ | 17,868 | $ | - | $ | 19,406 | $ | 442 | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Construction and land development | $ | 926 | $ | 926 | $ | 230 | $ | 2,114 | $ | - | |||||||||||||||||||||||||||||||
Commercial real estate | - | - | - | 495 | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 4,664 | 3,382 | 209 | 2,587 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 707 | 520 | 16 | 472 | - | ||||||||||||||||||||||||||||||||||||
Leasing | 190 | 190 | 138 | 105 | - | ||||||||||||||||||||||||||||||||||||
Tax certificates | 4,526 | 532 | 67 | 338 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 11,013 | $ | 5,550 | $ | 660 | $ | 6,111 | $ | - | |||||||||||||||||||||||||||||||
For the year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||||||
(In thousands) | Unpaid principal balance | Carrying value | Related allowance | Average recorded investment | Interest income recognized | ||||||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 10,417 | $ | 8,623 | $ | - | $ | 11,163 | $ | 78 | |||||||||||||||||||||||||||||||
Construction and land development | 6,250 | 3,464 | - | 10,059 | 187 | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 7,790 | 6,820 | - | 5,545 | 73 | ||||||||||||||||||||||||||||||||||||
Multi-family | - | - | - | 780 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 572 | 516 | - | 490 | 21 | ||||||||||||||||||||||||||||||||||||
Tax certificates | - | - | - | 583 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 25,029 | $ | 19,423 | $ | - | $ | 28,620 | $ | 359 | |||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||||||
Commercial real estate | $ | 4,136 | $ | 2,335 | $ | 835 | $ | 1,526 | $ | - | |||||||||||||||||||||||||||||||
Construction and land development | 6,180 | 2,479 | 820 | 923 | - | ||||||||||||||||||||||||||||||||||||
Commercial and industrial | 9,585 | 3,431 | 255 | 682 | - | ||||||||||||||||||||||||||||||||||||
Multi-family | - | - | - | 383 | - | ||||||||||||||||||||||||||||||||||||
Residential real estate | 685 | 478 | 14 | 714 | 7 | ||||||||||||||||||||||||||||||||||||
Leases | 81 | 81 | 55 | 86 | - | ||||||||||||||||||||||||||||||||||||
Tax certificates | 4,408 | 601 | 47 | 288 | - | ||||||||||||||||||||||||||||||||||||
Total: | $ | 25,075 | $ | 9,405 | $ | 2,026 | $ | 4,602 | $ | 7 | |||||||||||||||||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Other Real Estate Owned [Abstract] | ' | ||||||||||||
Details of changes in other real estate owned | ' | ||||||||||||
Set forth below is a table which details the changes in OREO from December 31, 2012 to September 30, 2013. | |||||||||||||
2013 | |||||||||||||
(In thousands) | First Quarter | Second Quarter | Third Quarter | ||||||||||
Beginning balance | $ | 13,435 | $ | 13,264 | $ | 13,002 | |||||||
Net proceeds from sales | (2,277 | ) | (2,603 | ) | (1,333 | ) | |||||||
Net gain (loss) on sales | 162 | 418 | 629 | ||||||||||
Assets acquired on non-accrual loans | 1,956 | 2,252 | 2,220 | ||||||||||
Impairment charge | (12 | ) | (329 | ) | (612 | ) | |||||||
Ending balance | $ | 13,264 | $ | 13,002 | $ | 13,906 |
Deposits_Tables
Deposits (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Deposits [Abstract] | ' | ||||||||
Deposits summary | ' | ||||||||
The Company’s deposit composition as of September 30, 2013 and December 31, 2012 is presented below: | |||||||||
September 30, | December 31, | ||||||||
(In thousands) | 2013 | 2012 | |||||||
Demand | $ | 63,338 | $ | 58,531 | |||||
NOW | 40,497 | 43,920 | |||||||
Money Market | 161,517 | 179,359 | |||||||
Savings | 17,588 | 17,472 | |||||||
Time deposits (over $100) | 89,476 | 91,233 | |||||||
Time deposits (under $100) | 150,204 | 164,402 | |||||||
Total deposits | $ | 522,620 | $ | 554,917 |
Borrowings_and_Subordinated_De1
Borrowings and Subordinated Debentures (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Borrowings and Subordinated Debentures [Abstract] | ' | ||||||||||||||||
FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates | ' | ||||||||||||||||
Presented below are the Company’s FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates: | |||||||||||||||||
As of | As of | ||||||||||||||||
(Dollars in thousands) | 30-Sep-13 | 31-Dec-12 | |||||||||||||||
Amount | Rate | Amount | Rate | ||||||||||||||
Advances maturing in | |||||||||||||||||
2013 | $ | 14,000 | 0.23 | % | 50,000 | 2.64 | % | ||||||||||
2015 | 10,000 | 0.71 | % | - | - | ||||||||||||
2016 | 10,000 | 1.11 | % | - | - | ||||||||||||
2017 | 25,000 | 1.46 | % | 15,000 | 1.39 | % | |||||||||||
2018 | 10,000 | 2.01 | % | - | - | ||||||||||||
Total FHLB borrowings | $ | 69,000 | $ | 65,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Commitments and Contingencies [Abstract] | ' | ||||||||
Contracts of financial instruments represent credit risk | ' | ||||||||
The contract amounts are as follows: | |||||||||
September 30, | December 31, | ||||||||
(In thousands) | 2013 | 2012 | |||||||
Financial instruments whose contract amounts represent credit risk: | |||||||||
Open-end lines of credit | $ | 28,402 | $ | 20,515 | |||||
Commitments to extend credit | 14,092 | 24,030 | |||||||
Standby letters of credit and financial guarantees written | 2,829 | 1,199 |
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Regulatory Capital Requirements [Abstract] | ' | ||||||||||||||||||||||||
Royal Bank's capital ratios | ' | ||||||||||||||||||||||||
The table below sets forth Royal Bank’s capital ratios under RAP based on the FDIC’s interpretation of the Call Report instructions: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
To be well capitalized | |||||||||||||||||||||||||
For capital | capitalized under prompt | ||||||||||||||||||||||||
Actual | adequacy purposes | corrective action provision | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 74,057 | 15.7 | % | $ | 37,736 | 8 | % | $ | 47,170 | 10 | % | |||||||||||||
Tier I capital (to risk-weighted assets) | $ | 68,052 | 14.43 | % | $ | 18,868 | 4 | % | $ | 28,302 | 6 | % | |||||||||||||
Tier I capital (to average assets, leverage) | $ | 68,052 | 9.39 | % | $ | 28,995 | 4 | % | $ | 36,244 | 5 | % | |||||||||||||
Adjustments to net loss as well as the capital ratios | ' | ||||||||||||||||||||||||
The tables below reflect the adjustments to the net loss as well as the capital ratios for Royal Bank under U.S. GAAP: | |||||||||||||||||||||||||
For the nine | |||||||||||||||||||||||||
months ended | |||||||||||||||||||||||||
(In thousands) | 30-Sep-13 | ||||||||||||||||||||||||
RAP net loss | $ | (3,279 | ) | ||||||||||||||||||||||
Tax lien adjustment, net of noncontrolling interest | 3,372 | ||||||||||||||||||||||||
U.S. GAAP net loss | $ | 93 | |||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||
As reported | As adjusted | ||||||||||||||||||||||||
under RAP | for U.S. GAAP | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 15.7 | % | 16.7 | % | |||||||||||||||||||||
Tier I capital (to risk-weighted assets) | 14.43 | % | 15.43 | % | |||||||||||||||||||||
Tier I capital (to average assets, leverage) | 9.39 | % | 10.09 | % | |||||||||||||||||||||
Company capital ratios | ' | ||||||||||||||||||||||||
The tables below reflect the Company’s capital ratios: | |||||||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||||||
To be well capitalized | |||||||||||||||||||||||||
For capital | capitalized under prompt | ||||||||||||||||||||||||
Actual | adequacy purposes | corrective action provision | |||||||||||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Total capital (to risk-weighted assets) | $ | 88,256 | 18.29 | % | $ | 38,606 | 8 | % | N/ | A | N/ | A | |||||||||||||
Tier I capital (to risk-weighted assets) | $ | 76,352 | 15.82 | % | $ | 19,303 | 4 | % | N/ | A | N/ | A | |||||||||||||
Tier I capital (to average assets, leverage) | $ | 76,352 | 10.35 | % | $ | 29,499 | 4 | % | N/ | A | N/ | A | |||||||||||||
Adjustment to Company's capital ratio under RAP | ' | ||||||||||||||||||||||||
The Company has filed the Consolidated Financial Statements for Bank Holding Companies-FR Y-9C (“FR Y-9C”) as of September 30, 2013 consistent with U.S. GAAP and the FR Y-9C instructions. In the event that a similar adjustment for RAP purposes would be required by the Federal Reserve on the holding company level, the adjusted ratios are shown in the table below. | |||||||||||||||||||||||||
For the nine | |||||||||||||||||||||||||
months ended | |||||||||||||||||||||||||
(In thousands) | 30-Sep-13 | ||||||||||||||||||||||||
U.S. GAAP net loss | $ | (343 | ) | ||||||||||||||||||||||
Tax lien adjustment, net of noncontrolling interest | (3,372 | ) | |||||||||||||||||||||||
RAP net loss | $ | (3,715 | ) | ||||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||||||
As reported | As adjusted | ||||||||||||||||||||||||
under U.S. GAAP | for RAP | ||||||||||||||||||||||||
Total capital (to risk-weighted assets) | 18.29 | % | 17.34 | % | |||||||||||||||||||||
Tier I capital (to risk-weighted assets) | 15.82 | % | 14.46 | % | |||||||||||||||||||||
Tier I capital (to average assets, leverage) | 10.35 | % | 9.41 | % |
Pension_Plan_Tables
Pension Plan (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Pension Plan [Abstract] | ' | ||||||||||||||||
Components of Net Pension Cost | ' | ||||||||||||||||
Net periodic defined benefit pension expense for the three and nine month periods ended September 30, 2013 and 2012 included the following components: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In thousands) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Service cost | $ | 19 | $ | 68 | $ | 56 | $ | 204 | |||||||||
Interest cost | 133 | 154 | 399 | 450 | |||||||||||||
Amortization of prior service cost | 22 | 23 | 67 | 67 | |||||||||||||
Amortization of actuarial loss | 122 | 96 | 367 | 287 | |||||||||||||
Net periodic benefit cost | $ | 296 | $ | 341 | $ | 889 | $ | 1,008 |
Loss_Per_Common_Share_Tables
Loss Per Common Share (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Loss Per Common Share [Abstract] | ' | ||||||||||||
Schedule of computation of basic and diluted earning per share | ' | ||||||||||||
Basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012 are calculated as follows: | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (178 | ) | 13,286 | $ | (0.01 | ) | ||||||
Three months ended September 30, 2012 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (5,323 | ) | 13,257 | $ | (0.40 | ) | ||||||
Nine months ended September 30, 2013 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (1,896 | ) | 13,272 | $ | (0.14 | ) | ||||||
Nine months ended September 30, 2012 | |||||||||||||
Loss | Average shares | Per share | |||||||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||||||
Basic and Diluted EPS | |||||||||||||
Loss available to common shareholders | $ | (9,156 | ) | 13,257 | $ | (0.69 | ) |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Comprehensive Income [Abstract] | ' | ||||||||||||
Components of Other Comprehensive Income (Loss) and Related Tax Effects | ' | ||||||||||||
FASB ASC Topic 220, “Comprehensive Income” (“ASC Topic 220”), requires the reporting of all changes in equity during the reporting period except investments from and distributions to shareholders. Net income (loss) is a component of comprehensive income (loss) with all other components referred to in the aggregate as other comprehensive income. Unrealized gains and losses on AFS securities is an example of another comprehensive income component. | |||||||||||||
Nine months ended September 30, 2013 | |||||||||||||
(In thousands) | Before tax | Tax expense | Net of tax | ||||||||||
amount | (benefit) | amount | |||||||||||
Unrealized losses on investment securities: | |||||||||||||
Unrealized holding losses arising during period | $ | (8,833 | ) | $ | (3,128 | ) | $ | (5,705 | ) | ||||
Less reclassification adjustment for gains realized in net loss | 69 | 23 | 46 | ||||||||||
Unrealized losses on investment securities | (8,902 | ) | (3,151 | ) | (5,751 | ) | |||||||
Unrecognized benefit obligation expense: | |||||||||||||
Less reclassification adjustment for amortization | (429 | ) | (146 | ) | (283 | ) | |||||||
Other comprehensive loss, net | $ | (8,473 | ) | $ | (3,005 | ) | $ | (5,468 | ) | ||||
Nine months ended September 30, 2012 | |||||||||||||
(In thousands) | Before tax | Tax expense | Net of tax | ||||||||||
amount | (benefit) | amount | |||||||||||
Unrealized gains on investment securities: | |||||||||||||
Unrealized holding losses arising during period | $ | 1,440 | $ | 602 | $ | 838 | |||||||
Less adjustment for impaired investments | (859 | ) | (301 | ) | (558 | ) | |||||||
Less reclassification adjustment for gains realized in net loss | 384 | 134 | 250 | ||||||||||
Unrealized gains on investment securities | 1,915 | 769 | 1,146 | ||||||||||
Unrecognized benefit obligation expense: | |||||||||||||
Less reclassification adjustment for amortization | (354 | ) | (90 | ) | (264 | ) | |||||||
Other comprehensive income, net | $ | 2,269 | $ | 859 | $ | 1,410 | |||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | ||||||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of September 30, 2013 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||||||
U.S. government agencies | $ | - | $ | 69,751 | $ | - | $ | 69,751 | |||||||||||||
Mortgage-backed securities-residential | - | 31,839 | - | 31,839 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | - | 165,958 | - | 165,958 | |||||||||||||||||
Non-agency | - | 4,566 | - | 4,566 | |||||||||||||||||
Corporate bonds | - | 9,593 | - | 9,593 | |||||||||||||||||
Municipal bonds | - | 5,328 | - | 5,328 | |||||||||||||||||
Other securities | - | - | 4,262 | 4,262 | |||||||||||||||||
Common stocks | 48 | - | - | 48 | |||||||||||||||||
Total investment securities available-for-sale | $ | 48 | $ | 287,035 | $ | 4,262 | $ | 291,345 | |||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of December 31, 2012 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Investment securities available-for-sale | |||||||||||||||||||||
U.S. government agencies | $ | - | $ | 66,444 | $ | - | $ | 66,444 | |||||||||||||
Mortgage-backed securities-residential | - | 30,509 | - | 30,509 | |||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | - | 233,976 | - | 233,976 | |||||||||||||||||
Non-agency | - | 1,011 | - | 1,011 | |||||||||||||||||
Corporate bonds | - | 7,437 | - | 7,437 | |||||||||||||||||
Municipal bonds | - | 5,615 | - | 5,615 | |||||||||||||||||
Other securities | - | - | 4,164 | 4,164 | |||||||||||||||||
Common stocks | 47 | - | - | 47 | |||||||||||||||||
Total investment securities available-for-sale | $ | 47 | $ | 344,992 | $ | 4,164 | $ | 349,203 | |||||||||||||
Additional Information About Assets Measured at Fair Value on a Recurring Basis, Level 3 Inputs | ' | ||||||||||||||||||||
The following table presents additional information about assets measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value for the nine months ended September 30, 2013 and 2012: | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Investment Securities Available for Sale | Other securities | ||||||||||||||||||||
Beginning balance January 1, 2013 | $ | 4,164 | |||||||||||||||||||
Total gains/(losses) - (realized/unrealized): | |||||||||||||||||||||
Included in earnings | 5 | ||||||||||||||||||||
Included in other comprehensive income | 361 | ||||||||||||||||||||
Purchases | 32 | ||||||||||||||||||||
Sales and calls | (300 | ) | |||||||||||||||||||
Transfers in and/or out of Level 3 | - | ||||||||||||||||||||
Ending balance September 30, 2013 | $ | 4,262 | |||||||||||||||||||
Investment Securities Available for Sale | |||||||||||||||||||||
Trust | |||||||||||||||||||||
preferred | Other | ||||||||||||||||||||
(In thousands) | securities | securities | Total | ||||||||||||||||||
Beginning balance January 1, 2012 | $ | 12,603 | $ | 6,918 | $ | 19,521 | |||||||||||||||
Total gains/(losses) - (realized/unrealized): | |||||||||||||||||||||
Included in earnings | 89 | (818 | ) | (729 | ) | ||||||||||||||||
Included in other comprehensive income | (392 | ) | (189 | ) | (581 | ) | |||||||||||||||
Purchases | - | 500 | 500 | ||||||||||||||||||
Sales and calls | (4,362 | ) | (575 | ) | (4,937 | ) | |||||||||||||||
Amortization of premium | (16 | ) | - | (16 | ) | ||||||||||||||||
Transfers in and/or out of Level 3 | - | - | - | ||||||||||||||||||
Ending balance September 30, 2012 | $ | 7,922 | $ | 5,836 | $ | 13,758 | |||||||||||||||
Financial Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||
For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at September 30, 2013 and December 31, 2012 are as follows: | |||||||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of September 30, 2013 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans and leases | $ | - | $ | - | $ | 9,555 | $ | 9,555 | |||||||||||||
Other real estate owned | - | - | 8,740 | 8,740 | |||||||||||||||||
Fair Value Measurements Using: | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Balances as of December 31, 2012 | Assets | Inputs | Inputs | ||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | |||||||||||||||||
Assets | |||||||||||||||||||||
Impaired loans and leases | $ | - | $ | - | $ | 9,180 | $ | 9,180 | |||||||||||||
Other real estate owned | - | - | 7,632 | 7,632 | |||||||||||||||||
Loans and leases held for sale | - | - | 1,572 | 1,572 | |||||||||||||||||
Schedule of quantitative information about assets measured at fair value on nonrecurring basis | ' | ||||||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
Balances as of September 30, 2013 | Valuation | Unobservable | Range (Weighted | ||||||||||||||||||
(In thousands) | Fair Value | Techniques | Input | Average) | |||||||||||||||||
Impaired loans and leases | $ | 9,555 | Appraisal of collateral (1) | Appraisal adjustments | 0.0% to -20.0% (-9.2%) | ||||||||||||||||
Liquidation expenses | -4.0% to -23.3% (-6.5%) | ||||||||||||||||||||
Salvageable value of | 0 | % | |||||||||||||||||||
collateral (2) | |||||||||||||||||||||
Other real estate owned | 8,740 | Appraisal of collateral (1) | Appraisal adjustments | 0.0% to -81.1% (-4.4%) | |||||||||||||||||
Sales prices | Liquidation expenses | -5.0% to -8.0% (-6.3%) | |||||||||||||||||||
(1) | Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. Fair value may also be based on negotiated settlements with the borrower. | ||||||||||||||||||||
-2 | Leases are measured using the salvageable value of the collateral. | ||||||||||||||||||||
Fair Value by Balance Sheet Grouping Instruments | ' | ||||||||||||||||||||
The tables below state the fair value of the Company’s financial instruments at September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
At September 30, 2013 | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Estimated | Assets | Inputs | Inputs | |||||||||||||||||
(In thousands) | amount | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 18,854 | $ | 18,854 | $ | 18,854 | $ | - | $ | - | |||||||||||
Investment securities available-for-sale | 291,345 | 291,345 | 48 | 287,035 | 4,262 | ||||||||||||||||
Other investment | 2,250 | 2,250 | - | - | 2,250 | ||||||||||||||||
Federal Home Loan Bank stock | 4,364 | 4,364 | - | - | 4,364 | ||||||||||||||||
Loans, net | 362,650 | 356,964 | - | - | 356,964 | ||||||||||||||||
Accrued interest receivable | 7,869 | 7,869 | - | 7,869 | - | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 63,338 | 63,338 | - | 63,338 | - | ||||||||||||||||
NOW and money markets | 202,014 | 202,014 | - | 202,014 | - | ||||||||||||||||
Savings | 17,588 | 17,588 | - | 17,588 | - | ||||||||||||||||
Time deposits | 239,680 | 237,679 | - | 237,679 | - | ||||||||||||||||
Short-term borrowings | 14,000 | 14,000 | 14,000 | - | - | ||||||||||||||||
Long-term borrowings | 97,994 | 94,832 | - | 94,832 | - | ||||||||||||||||
Subordinated debt | 25,774 | 24,579 | - | 24,579 | - | ||||||||||||||||
Accrued interest payable | 2,471 | 2,471 | - | 2,471 | - | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
At December 31, 2012 | |||||||||||||||||||||
Quoted Prices | |||||||||||||||||||||
in Active | Significant | ||||||||||||||||||||
Markets for | Other | Significant | |||||||||||||||||||
Identical | Observable | Unobservable | |||||||||||||||||||
Carrying | Estimated | Assets | Inputs | Inputs | |||||||||||||||||
(In thousands) | amount | fair value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Financial Assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 28,802 | $ | 28,802 | $ | 28,802 | $ | - | $ | - | |||||||||||
Investment securities available-for-sale | 349,203 | 349,203 | 47 | 344,992 | 4,164 | ||||||||||||||||
Other investment | 2,250 | 2,250 | - | - | 2,250 | ||||||||||||||||
Federal Home Loan Bank stock | 6,011 | 6,011 | - | - | 6,011 | ||||||||||||||||
Loans held for sale | 1,572 | 1,572 | - | - | 1,572 | ||||||||||||||||
Loans, net | 326,904 | 330,260 | - | - | 330,260 | ||||||||||||||||
Accrued interest receivable | 10,256 | 10,256 | - | 10,256 | - | ||||||||||||||||
Financial Liabilities: | |||||||||||||||||||||
Demand deposits | 58,531 | 58,531 | - | 58,531 | - | ||||||||||||||||
NOW and money markets | 223,279 | 223,279 | - | 223,279 | - | ||||||||||||||||
Savings | 17,472 | 17,472 | - | 17,472 | - | ||||||||||||||||
Time deposits | 255,635 | 251,532 | - | 251,532 | - | ||||||||||||||||
Long-term borrowings | 108,333 | 102,824 | - | 102,824 | - | ||||||||||||||||
Subordinated debt | 25,774 | 23,837 | - | 23,837 | - | ||||||||||||||||
Accrued interest payable | 3,760 | 3,760 | - | 3,760 | - |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Segment Information [Abstract] | ' | ||||||||||||
Selected segment information and reconciliations to consolidated financial information | ' | ||||||||||||
The following tables present selected financial information for reportable business segments for the three and nine month periods ended September 30, 2013 and 2012. | |||||||||||||
Three months ended September 30, 2013 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 708,864 | $ | 28,136 | $ | 737,000 | |||||||
Total deposits | $ | 522,620 | $ | - | $ | 522,620 | |||||||
Interest income | $ | 6,485 | $ | 475 | $ | 6,960 | |||||||
Interest expense | 1,560 | 330 | 1,890 | ||||||||||
Net interest income | $ | 4,925 | $ | 145 | $ | 5,070 | |||||||
Provision for loan and lease losses | 178 | 40 | 218 | ||||||||||
Total other income | 1,344 | 593 | 1,937 | ||||||||||
Total other expenses | 5,683 | 607 | 6,290 | ||||||||||
Income tax expense (benefit) | - | - | - | ||||||||||
Net income | $ | 408 | $ | 91 | $ | 499 | |||||||
Noncontrolling interest | $ | 121 | $ | 36 | $ | 157 | |||||||
Net income attributable to Royal Bancshares | $ | 287 | $ | 55 | $ | 342 | |||||||
Three months ended September 30, 2012 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 759,099 | $ | 42,582 | $ | 801,681 | |||||||
Total deposits | $ | 571,250 | $ | - | $ | 571,250 | |||||||
Interest income | $ | 6,542 | $ | 1,219 | $ | 7,761 | |||||||
Interest expense | 1,782 | 597 | 2,379 | ||||||||||
Net interest income | $ | 4,760 | $ | 622 | $ | 5,382 | |||||||
Provision (credit) for loan and lease losses | 1,796 | (35 | ) | 1,761 | |||||||||
Total other income | 847 | 304 | 1,151 | ||||||||||
Total other expenses | 8,851 | 558 | 9,409 | ||||||||||
Income tax (benefit) expense | (156 | ) | 156 | - | |||||||||
Net (loss) income | $ | (4,884 | ) | $ | 247 | $ | (4,637 | ) | |||||
Noncontrolling interest | $ | 76 | $ | 99 | $ | 175 | |||||||
Net (loss) income attributable to Royal Bancshares | $ | (4,960 | ) | $ | 148 | $ | (4,812 | ) | |||||
Nine months ended September 30, 2013 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 708,864 | $ | 28,136 | $ | 737,000 | |||||||
Total deposits | $ | 522,620 | $ | - | $ | 522,620 | |||||||
Interest income | $ | 18,511 | $ | 1,944 | $ | 20,455 | |||||||
Interest expense | 4,525 | 1,142 | 5,667 | ||||||||||
Net interest income | $ | 13,986 | $ | 802 | $ | 14,788 | |||||||
(Credit) provision for loan and lease losses | (563 | ) | 367 | (196 | ) | ||||||||
Total other income | 3,056 | 1,250 | 4,306 | ||||||||||
Total other expenses | 16,348 | 3,649 | 19,997 | ||||||||||
Income tax expense (benefit) | - | - | - | ||||||||||
Net income (loss ) | $ | 1,257 | $ | (1,964 | ) | $ | (707 | ) | |||||
Noncontrolling interest | $ | 422 | $ | (786 | ) | $ | (364 | ) | |||||
Net income (loss) attributable to Royal Bancshares | $ | 835 | $ | (1,178 | ) | $ | (343 | ) | |||||
Nine months ended September 30, 2012 | |||||||||||||
Community | Tax Lien | ||||||||||||
(In thousands) | Banking | Operation | Consolidated | ||||||||||
Total assets | $ | 759,099 | $ | 42,582 | $ | 801,681 | |||||||
Total deposits | $ | 571,250 | $ | - | $ | 571,250 | |||||||
Interest income | $ | 20,833 | $ | 4,157 | $ | 24,990 | |||||||
Interest expense | 5,494 | 2,215 | 7,709 | ||||||||||
Net interest income | $ | 15,339 | $ | 1,942 | $ | 17,281 | |||||||
Provision for loan and lease losses | 3,239 | 121 | 3,360 | ||||||||||
Total other income | 3,434 | 323 | 3,757 | ||||||||||
Total other expenses | 21,435 | 4,633 | 26,068 | ||||||||||
Income tax expense (benefit) | 201 | (201 | ) | - | |||||||||
Net loss | $ | (6,102 | ) | $ | (2,288 | ) | $ | (8,390 | ) | ||||
Noncontrolling interest | $ | (1,398 | ) | $ | 639 | $ | (759 | ) | |||||
Net loss attributable to Royal Bancshares | $ | (4,704 | ) | $ | (2,927 | ) | $ | (7,631 | ) |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) (Crusader Servicing Corporation [Member]) | Sep. 30, 2013 |
Crusader Servicing Corporation [Member] | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' |
Percentage of ownership interest in subsidiary (in hundredths) | 60.00% |
Regulatory_Matters_and_Signifi1
Regulatory Matters and Significant Risks or Uncertainties (Details) (USD $) | 3 Months Ended | 9 Months Ended | 33 Months Ended | 60 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jul. 15, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | |
Series A Preferred Stock [Member] | Commercial real estate and construction and land development loans [Member] | Commercial real estate and construction and land development loans [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Royal Bank [Member] | Royal Bank [Member] | Royal Bank [Member] | Royal Tax Lien Services, LLC [Member] | Crusader Servicing Corporation [Member] | ||||||||||
Federal Deposit Insurance Corporation and Department of Banking Orders [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Tier one leverage ratio required (in hundredths) | 8.00% | ' | 8.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' |
Minimum total capital to risk weighted assets ratio required (in hundredths) | 12.00% | ' | 12.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' |
Tier I capital (to average assets, leverage) (in hundredths) | 9.39% | ' | 9.39% | ' | 9.39% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.39% | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | 15.70% | ' | 15.70% | ' | 15.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.70% | ' | ' | ' | ' |
Significant Losses [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Continued significant losses over five calendar years | ' | ' | ' | ' | ' | $119,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | 342,000 | -4,812,000 | -343,000 | -7,631,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,000 | ' | ' | ' | ' |
Decline in provision for loan and lease losses | 1,500,000 | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decline in credit related expenses | 2,600,000 | ' | 3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decline in professional expense | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of premises and equipment | 526,000 | 0 | 1,204,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in gains on sale of loans and leases | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non accrual financing receivables | 13,468,000 | ' | 13,468,000 | ' | 13,468,000 | 23,004,000 | ' | ' | ' | ' | ' | ' | 13,500,000 | ' | 13,500,000 | ' | 23,000,000 | ' | ' | ' | ' | ' |
Non performing loans, charge offs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 837,000 | 2.9 | 3,200,000 | 3.7 | ' | ' | ' | ' | ' | ' |
Other real estate owned (OREO) | 13,906,000 | ' | 13,906,000 | ' | 13,906,000 | 13,435,000 | 13,002,000 | 13,264,000 | ' | ' | ' | ' | 13,900,000 | ' | 13,900,000 | ' | 13,400,000 | ' | ' | ' | ' | ' |
Net classified loans and foreclosed property | 42,100,000 | ' | 42,100,000 | ' | 42,100,000 | 51,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Delinquent loans held for investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | 5,100,000 | ' | 4,600,000 | ' | ' | ' | ' | ' |
Other than temporary impairment losses on securities recognized in earnings | 0 | 0 | 0 | 859,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total gross loans | 377,329,000 | 343,564,000 | 377,329,000 | 343,564,000 | 377,329,000 | 344,682,000 | ' | ' | ' | ' | 209,500,000 | 216,100,000 | ' | ' | ' | ' | 21,432,000 | ' | ' | ' | ' | ' |
Percentage of loans held for investment (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56.00% | 63.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity and Funds Management [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collateralized delivery requirement with Federal Home Loan Banks (in hundredths) | 105.00% | ' | 105.00% | ' | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity at the federal home loan bank | 20,400,000 | ' | 20,400,000 | ' | 20,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unpledged agency securities were available to be pledged as collateral | 138,300,000 | ' | 138,300,000 | ' | 138,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash on hand | 17,400,000 | ' | 17,400,000 | ' | 17,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Limited availability to borrow from the federal reserve discount window | 7,800,000 | ' | 7,800,000 | ' | 7,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity to deposits ratio (in hundredths) | 37.60% | ' | 37.60% | ' | 37.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of policy target (in hundredths) | 12.00% | ' | 12.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidity to total liabilities ratio (in hundredths) | 28.70% | ' | 28.70% | ' | 28.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of total liability ratio, policy target (in hundredths) | 10.00% | ' | 10.00% | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings | 112,000,000 | ' | 112,000,000 | ' | 112,000,000 | 108,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unfunded pension plan obligations | 16,600,000 | ' | 16,600,000 | ' | 16,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Series A Preferred stock on which quarterly dividend suspended | 29,808,000 | ' | 29,808,000 | ' | 29,808,000 | 29,396,000 | ' | ' | ' | 30,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trust preferred securities with suspend interest payments | 25,774,000 | ' | 25,774,000 | ' | 25,774,000 | 25,774,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock dividend in arrears | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest payments in arrears on trust preferred securities | 3,100,000 | ' | 3,100,000 | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest penalty on trust preferred securities | 174,000 | ' | 174,000 | ' | 174,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Adequacy [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum total capital to risk weighted assets ratio required (in hundredths) | 12.00% | ' | 12.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 12.00% | ' | ' |
Minimum Tier one leverage ratio required (in hundredths) | 8.00% | ' | 8.00% | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 8.00% | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | 15.70% | ' | 15.70% | ' | 15.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.70% | ' | ' | ' | ' |
Tier I capital (to average assets, leverage) (in hundredths) | 9.39% | ' | 9.39% | ' | 9.39% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.39% | ' | ' | ' | ' |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of ownership interest in subsidiary (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 60.00% |
Company Plans and Strategy [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Brokered deposits | 0 | ' | 0 | ' | 0 | ' | ' | ' | 89,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in total borrowings | ' | ' | ' | ' | 43,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase loans held for investment | ' | ' | 33,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
An annualized reduction of discretionary expenses (in hundredths) | ' | ' | 0.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in workforce (in hundredths) | ' | ' | 0.21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring charge directly related to one-time employee termination benefits | 119,000 | 0 | 230,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of branches being relocated | 3 | ' | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time period for relocation, minimum (in months) | 6 | ' | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Time period for relocation, maximum (in months) | 8 | ' | 8 | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and leases held for investment ("LHFI") | $377,329,000 | ' | $377,329,000 | ' | $377,329,000 | $344,165,000 | ' | ' | ' | ' | ' | ' | $13,468,000 | ' | $13,468,000 | ' | ' | ' | ' | ' | ' | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | $294,923,000 | ' | ' | $294,923,000 | ' | $343,879,000 |
Gross unrealized gains | 4,190,000 | ' | ' | 4,190,000 | ' | 6,270,000 |
Gross unrealized losses, Non-OTTI in AOCI | -7,768,000 | ' | ' | -7,768,000 | ' | -946,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 291,345,000 | ' | ' | 291,345,000 | ' | 349,203,000 |
Amortized cost [Abstract] | ' | ' | ' | ' | ' | ' |
Within 1 year | 15,906,000 | ' | ' | 15,906,000 | ' | ' |
After 1 but within 5 years | 6,443,000 | ' | ' | 6,443,000 | ' | ' |
After 5 but within 10 years | 34,864,000 | ' | ' | 34,864,000 | ' | ' |
After 10 years | 32,433,000 | ' | ' | 32,433,000 | ' | ' |
Mortgage-backed securities-residential | 32,460,000 | ' | ' | 32,460,000 | ' | ' |
Collateralized mortgage obligations Issued or guaranteed by U.S. government agencies | 164,729,000 | ' | ' | 164,729,000 | ' | ' |
Collateralized mortgage obligations Non agency | 4,566,000 | ' | ' | 4,566,000 | ' | ' |
Total available for sale debt securities | 291,401,000 | ' | ' | 291,401,000 | ' | ' |
No contractual maturity | 3,522,000 | ' | ' | 3,522,000 | ' | ' |
Total available for sale securities | 294,923,000 | ' | ' | 294,923,000 | ' | ' |
Fair value [Abstract] | ' | ' | ' | ' | ' | ' |
Within 1 year | 14,911,000 | ' | ' | 14,911,000 | ' | ' |
After 1 but within 5 years | 6,394,000 | ' | ' | 6,394,000 | ' | ' |
After 5 but within 10 years | 32,909,000 | ' | ' | 32,909,000 | ' | ' |
After 10 years | 30,458,000 | ' | ' | 30,458,000 | ' | ' |
Mortgage-backed securities residential | 31,839,000 | ' | ' | 31,839,000 | ' | ' |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | 165,958,000 | ' | ' | 165,958,000 | ' | ' |
Collateralized mortgage obligations Non-agency | 4,566,000 | ' | ' | 4,566,000 | ' | ' |
Total available for sale debt securities | 287,035,000 | ' | ' | 287,035,000 | ' | ' |
No contractual maturity | 4,310,000 | ' | ' | 4,310,000 | ' | ' |
Total available for sale securities | 291,345,000 | ' | ' | 291,345,000 | ' | ' |
Proceeds from sales of AFS investment securities | 0 | 15,200,000 | ' | 20,428,000 | 27,089,000 | ' |
Gross realized gains and losses on the sale of securities recognized in earnings [Abstract] | ' | ' | ' | ' | ' | ' |
Gross realized gains | 0 | 225,000 | ' | 181,000 | 565,000 | ' |
Gross realized losses | -1,000 | 0 | ' | -112,000 | -181,000 | ' |
Net realized (losses) gains | -1,000 | 225,000 | ' | 69,000 | 384,000 | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Other than temporary impairment losses on securities recognized in earnings | 0 | 0 | ' | 0 | 859,000 | ' |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 157,215,000 | ' | ' | 157,215,000 | ' | 83,086,000 |
12 months or longer, Fair value | 988,000 | ' | ' | 988,000 | ' | 6,053,000 |
Total, Fair value | 158,203,000 | ' | ' | 158,203,000 | ' | 89,139,000 |
Less than 12 months, Gross unrealized losses | -7,757,000 | ' | ' | -7,757,000 | ' | -789,000 |
12 months or longer, Gross unrealized losses | -11,000 | ' | ' | -11,000 | ' | -157,000 |
Total, Gross unrealized losses | -7,768,000 | ' | ' | -7,768,000 | ' | -946,000 |
Percentage of negatively impact on market value of securities (in hundredths) | ' | ' | ' | 49.00% | ' | ' |
Period of treasury yield | ' | ' | ' | '10 years | ' | ' |
Percentage of treasury yield (in hundredths) | ' | ' | ' | 2.62% | ' | 1.76% |
Gain recorded by common stock investment sold | ' | ' | 112,000 | ' | ' | ' |
Credit related impairment losses on debt securities held for which a portion of OTTI was recognized in other comprehensive income [Roll Forward] | ' | ' | ' | ' | ' | ' |
Balance at beginning of year | ' | ' | 173,000 | 173,000 | 173,000 | 173,000 |
Reductions for securities sold during the period (realized) | ' | ' | ' | -173,000 | 0 | ' |
Balance at end of year | 0 | 173,000 | ' | 0 | 173,000 | 173,000 |
U.S. Government Agencies [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 74,355,000 | ' | ' | 74,355,000 | ' | 66,371,000 |
Gross unrealized gains | 9,000 | ' | ' | 9,000 | ' | 151,000 |
Gross unrealized losses, Non-OTTI in AOCI | -4,613,000 | ' | ' | -4,613,000 | ' | -78,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 69,751,000 | ' | ' | 69,751,000 | ' | 66,444,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 65,743,000 | ' | ' | 65,743,000 | ' | 23,818,000 |
12 months or longer, Fair value | 0 | ' | ' | 0 | ' | 0 |
Total, Fair value | 65,743,000 | ' | ' | 65,743,000 | ' | 23,818,000 |
Less than 12 months, Gross unrealized losses | -4,613,000 | ' | ' | -4,613,000 | ' | -78,000 |
12 months or longer, Gross unrealized losses | 0 | ' | ' | 0 | ' | 0 |
Total, Gross unrealized losses | -4,613,000 | ' | ' | -4,613,000 | ' | -78,000 |
Increase in gross unrealized losses from year to year | ' | ' | ' | 4,500,000 | ' | ' |
Period of treasury yield | ' | ' | ' | '10 years | ' | ' |
Number of securities in an unrealized loss position for less than twelve months | 22 | ' | ' | 22 | ' | ' |
Mortgage-backed Securities-residential [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 32,460,000 | ' | ' | 32,460,000 | ' | 30,038,000 |
Gross unrealized gains | 340,000 | ' | ' | 340,000 | ' | 518,000 |
Gross unrealized losses, Non-OTTI in AOCI | -961,000 | ' | ' | -961,000 | ' | -47,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 31,839,000 | ' | ' | 31,839,000 | ' | 30,509,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 23,156,000 | ' | ' | 23,156,000 | ' | 7,280,000 |
12 months or longer, Fair value | 0 | ' | ' | 0 | ' | 0 |
Total, Fair value | 23,156,000 | ' | ' | 23,156,000 | ' | 7,280,000 |
Less than 12 months, Gross unrealized losses | -961,000 | ' | ' | -961,000 | ' | -47,000 |
12 months or longer, Gross unrealized losses | 0 | ' | ' | 0 | ' | 0 |
Total, Gross unrealized losses | -961,000 | ' | ' | -961,000 | ' | -47,000 |
Increase in gross unrealized losses from year to year | ' | ' | ' | 1,000,000 | ' | ' |
Number of securities in an unrealized loss position for less than twelve months | 10 | ' | ' | 10 | ' | ' |
Collateralized Mortgage Obligations [Member] | ' | ' | ' | ' | ' | ' |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Increase in gross unrealized losses from year to year | ' | ' | ' | 914,000 | ' | ' |
Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 164,729,000 | ' | ' | 164,729,000 | ' | 229,556,000 |
Gross unrealized gains | 2,876,000 | ' | ' | 2,876,000 | ' | 5,031,000 |
Gross unrealized losses, Non-OTTI in AOCI | -1,647,000 | ' | ' | -1,647,000 | ' | -611,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | ' |
Fair value | 165,958,000 | ' | ' | 165,958,000 | ' | 233,976,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 56,816,000 | ' | ' | 56,816,000 | ' | 44,937,000 |
12 months or longer, Fair value | 0 | ' | ' | 0 | ' | 3,975,000 |
Total, Fair value | 56,816,000 | ' | ' | 56,816,000 | ' | 48,912,000 |
Less than 12 months, Gross unrealized losses | -1,647,000 | ' | ' | -1,647,000 | ' | -592,000 |
12 months or longer, Gross unrealized losses | 0 | ' | ' | 0 | ' | -19,000 |
Total, Gross unrealized losses | -1,647,000 | ' | ' | -1,647,000 | ' | -611,000 |
Number of securities in an unrealized loss position for less than twelve months | 16 | ' | ' | 16 | ' | ' |
Collateralized Mortgage Obligations, Non-agency [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 4,566,000 | ' | ' | 4,566,000 | ' | 1,007,000 |
Gross unrealized gains | 0 | ' | ' | 0 | ' | 4,000 |
Gross unrealized losses, Non-OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 4,566,000 | ' | ' | 4,566,000 | ' | 1,011,000 |
Corporate Bonds [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 9,777,000 | ' | ' | 9,777,000 | ' | 7,477,000 |
Gross unrealized gains | 30,000 | ' | ' | 30,000 | ' | 32,000 |
Gross unrealized losses, Non-OTTI in AOCI | -214,000 | ' | ' | -214,000 | ' | -72,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 9,593,000 | ' | ' | 9,593,000 | ' | 7,437,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 5,875,000 | ' | ' | 5,875,000 | ' | 2,165,000 |
12 months or longer, Fair value | 988,000 | ' | ' | 988,000 | ' | 941,000 |
Total, Fair value | 6,863,000 | ' | ' | 6,863,000 | ' | 3,106,000 |
Less than 12 months, Gross unrealized losses | -203,000 | ' | ' | -203,000 | ' | -13,000 |
12 months or longer, Gross unrealized losses | -11,000 | ' | ' | -11,000 | ' | -59,000 |
Total, Gross unrealized losses | -214,000 | ' | ' | -214,000 | ' | -72,000 |
Number of investment securities | 7 | ' | ' | 7 | ' | ' |
Number of securities in an unrealized loss position for less than twelve months | 6 | ' | ' | 6 | ' | ' |
Number of securities in an unrealized loss position for more than twelve months | 1 | ' | ' | 1 | ' | ' |
Number of securities at or above investment grade | 7 | ' | ' | 7 | ' | ' |
Municipal Bonds [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 5,514,000 | ' | ' | 5,514,000 | ' | 5,645,000 |
Gross unrealized gains | 0 | ' | ' | 0 | ' | 0 |
Gross unrealized losses, Non-OTTI in AOCI | -186,000 | ' | ' | -186,000 | ' | -30,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 5,328,000 | ' | ' | 5,328,000 | ' | 5,615,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 5,328,000 | ' | ' | 5,328,000 | ' | 4,597,000 |
12 months or longer, Fair value | 0 | ' | ' | 0 | ' | 882,000 |
Total, Fair value | 5,328,000 | ' | ' | 5,328,000 | ' | 5,479,000 |
Less than 12 months, Gross unrealized losses | -186,000 | ' | ' | -186,000 | ' | -21,000 |
12 months or longer, Gross unrealized losses | 0 | ' | ' | 0 | ' | -9,000 |
Total, Gross unrealized losses | -186,000 | ' | ' | -186,000 | ' | -30,000 |
Number of investment securities | 7 | ' | ' | 7 | ' | ' |
Common Stocks [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 33,000 | ' | ' | 33,000 | ' | 33,000 |
Gross unrealized gains | 15,000 | ' | ' | 15,000 | ' | 14,000 |
Gross unrealized losses, Non-OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 48,000 | ' | ' | 48,000 | ' | 47,000 |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Number of investment securities sold | ' | ' | 1 | ' | ' | ' |
Number of investment securities | 2 | ' | ' | 2 | ' | ' |
Other Securities [Member] | ' | ' | ' | ' | ' | ' |
Carrying value and fair value of available for sale investment securities [Abstract] | ' | ' | ' | ' | ' | ' |
Amortized cost | 3,489,000 | ' | ' | 3,489,000 | ' | 3,752,000 |
Gross unrealized gains | 920,000 | ' | ' | 920,000 | ' | 520,000 |
Gross unrealized losses, Non-OTTI in AOCI | -147,000 | ' | ' | -147,000 | ' | -108,000 |
Gross unrealized losses, Non-credit related OTTI in AOCI | 0 | ' | ' | 0 | ' | 0 |
Fair value | 4,262,000 | ' | ' | 4,262,000 | ' | 4,164,000 |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities [Abstract] | ' | ' | ' | ' | ' | ' |
Other than temporary impairment losses on securities recognized in earnings | 0 | 0 | ' | 0 | 859,000 | ' |
Available for sale securities, continuous unrealized loss position [Abstract] | ' | ' | ' | ' | ' | ' |
Less than 12 months, Fair value | 297,000 | ' | ' | 297,000 | ' | 289,000 |
12 months or longer, Fair value | 0 | ' | ' | 0 | ' | 255,000 |
Total, Fair value | 297,000 | ' | ' | 297,000 | ' | 544,000 |
Less than 12 months, Gross unrealized losses | -147,000 | ' | ' | -147,000 | ' | -38,000 |
12 months or longer, Gross unrealized losses | 0 | ' | ' | 0 | ' | -70,000 |
Total, Gross unrealized losses | ($147,000) | ' | ' | ($147,000) | ' | ($108,000) |
Number of securities in an unrealized loss position for more than twelve months | 2 | ' | ' | 2 | ' | ' |
Number of securities invested in real estate funds | 7 | ' | ' | 7 | ' | ' |
Number of securities considered not to be other than temporarily impaired | 2 | ' | ' | 2 | ' | ' |
Number of securities recording an impairment charge | 2 | ' | ' | 2 | ' | ' |
Loans_and_Leases_Major_classif
Loans and Leases - Major classifications of LHFI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | $377,329,000 | $343,564,000 | $377,329,000 | $343,564,000 | $344,682,000 | |||
Deferred fees, net | 0 | [1] | ' | 0 | [1] | ' | -517,000 | [1] |
Total loans and leases | 377,329,000 | ' | 377,329,000 | ' | 344,165,000 | |||
Loans and leases ("LHFS") | 0 | ' | 0 | ' | 1,572,000 | |||
Transfer of non-accrual loan from LHFI to LHFS | 2,300,000 | ' | ' | ' | ' | |||
Impairment charges | 0 | 856,000 | 153,000 | 856,000 | ' | |||
Proceeds from sales of loans | 3,900,000 | ' | 4,042,000 | 11,039,000 | ' | |||
Gain on sales of loans | 241,000 | 39,000 | 257,000 | 2,044,000 | ' | |||
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 158,223,000 | ' | 158,223,000 | ' | 167,115,000 | |||
Construction and Land Development [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 39,594,000 | ' | 39,594,000 | ' | 37,215,000 | |||
Total loans and leases | 39,594,000 | ' | 39,594,000 | ' | ' | |||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 86,401,000 | ' | 86,401,000 | ' | 40,560,000 | |||
Multi Family [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 11,678,000 | ' | 11,678,000 | ' | 11,756,000 | |||
Total loans and leases | 11,678,000 | ' | 11,678,000 | ' | ' | |||
Residential Real Estate [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 24,830,000 | ' | 24,830,000 | ' | 24,981,000 | |||
Leases [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 40,408,000 | ' | 40,408,000 | ' | 37,347,000 | |||
Total loans and leases | 40,408,000 | ' | 40,408,000 | ' | ' | |||
Tax Certificates [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 15,364,000 | ' | 15,364,000 | ' | 24,569,000 | |||
Total loans and leases | 15,364,000 | ' | 15,364,000 | ' | ' | |||
Consumer [Member] | ' | ' | ' | ' | ' | |||
Major classifications of loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total gross loans | 831,000 | ' | 831,000 | ' | 1,139,000 | |||
Total loans and leases | $831,000 | ' | $831,000 | ' | ' | |||
[1] | For the 2013 period net deferred fees were allocated among the loan types. |
Loans_and_Leases_Risk_Ratings_
Loans and Leases - Risk Ratings for Each Loan Portfolio Segment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | |||||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | $377,329 | $344,682 | $343,564 | ||
Less: Deferred loan fees | 0 | [1] | -517 | [1] | ' |
Total LHFI | 377,329 | 344,165 | ' | ||
Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 167,115 | ' | ||
Total LHFI | 158,223 | ' | ' | ||
Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | 39,594 | 37,215 | ' | ||
Total LHFI | 39,594 | ' | ' | ||
Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 40,560 | ' | ||
Total LHFI | 86,401 | ' | ' | ||
Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | 11,678 | 11,756 | ' | ||
Total LHFI | 11,678 | ' | ' | ||
Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 24,981 | ' | ||
Total LHFI | 24,830 | ' | ' | ||
Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | 40,408 | 37,347 | ' | ||
Total LHFI | 40,408 | ' | ' | ||
Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | 15,364 | 24,569 | ' | ||
Total LHFI | 15,364 | ' | ' | ||
Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 1,139 | ' | ||
Total LHFI | 831 | ' | ' | ||
Pass [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 167,004 | ' | ||
Total LHFI | 239,391 | ' | ' | ||
Pass [Member] | Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 64,308 | ' | ||
Total LHFI | 95,250 | ' | ' | ||
Pass [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 2,139 | ' | ||
Total LHFI | 7,235 | ' | ' | ||
Pass [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 14,764 | ' | ||
Total LHFI | 48,108 | ' | ' | ||
Pass [Member] | Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 9,019 | ' | ||
Total LHFI | 8,994 | ' | ' | ||
Pass [Member] | Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 15,125 | ' | ||
Total LHFI | 24,310 | ' | ' | ||
Pass [Member] | Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 36,755 | ' | ||
Total LHFI | 39,890 | ' | ' | ||
Pass [Member] | Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 23,968 | ' | ||
Total LHFI | 14,832 | ' | ' | ||
Pass [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 926 | ' | ||
Total LHFI | 772 | ' | ' | ||
Pass-Watch [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 103,362 | ' | ||
Total LHFI | 74,930 | ' | ' | ||
Pass-Watch [Member] | Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 69,510 | ' | ||
Total LHFI | 37,150 | ' | ' | ||
Pass-Watch [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 13,872 | ' | ||
Total LHFI | 17,493 | ' | ' | ||
Pass-Watch [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 10,774 | ' | ||
Total LHFI | 18,064 | ' | ' | ||
Pass-Watch [Member] | Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 2,034 | ' | ||
Total LHFI | 2,108 | ' | ' | ||
Pass-Watch [Member] | Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 6,634 | ' | ||
Total LHFI | 0 | ' | ' | ||
Pass-Watch [Member] | Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 325 | ' | ||
Total LHFI | 56 | ' | ' | ||
Pass-Watch [Member] | Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Pass-Watch [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 213 | ' | ||
Total LHFI | 59 | ' | ' | ||
Special Mention [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 37,285 | ' | ||
Total LHFI | 34,886 | ' | ' | ||
Special Mention [Member] | Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 19,529 | ' | ||
Total LHFI | 16,667 | ' | ' | ||
Special Mention [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 16,343 | ' | ||
Total LHFI | 11,595 | ' | ' | ||
Special Mention [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 92 | ' | ||
Total LHFI | 5,971 | ' | ' | ||
Special Mention [Member] | Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 703 | ' | ||
Total LHFI | 576 | ' | ' | ||
Special Mention [Member] | Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 602 | ' | ||
Total LHFI | 0 | ' | ' | ||
Special Mention [Member] | Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 16 | ' | ||
Total LHFI | 77 | ' | ' | ||
Special Mention [Member] | Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Special Mention [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Substandard [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 15,599 | ' | ||
Total LHFI | 14,654 | ' | ' | ||
Substandard [Member] | Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 3,423 | ' | ||
Total LHFI | 3,679 | ' | ' | ||
Substandard [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 581 | ' | ||
Total LHFI | 572 | ' | ' | ||
Substandard [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 9,969 | ' | ||
Total LHFI | 10,403 | ' | ' | ||
Substandard [Member] | Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Substandard [Member] | Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 1,626 | ' | ||
Total LHFI | 0 | ' | ' | ||
Substandard [Member] | Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Substandard [Member] | Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Substandard [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Non-accrual [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 21,432 | ' | ||
Total LHFI | 13,468 | ' | ' | ||
Non-accrual [Member] | Commercial Real Estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 10,345 | ' | ||
Total LHFI | 5,477 | ' | ' | ||
Non-accrual [Member] | Construction and Land Development [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 4,280 | ' | ||
Total LHFI | 2,699 | ' | ' | ||
Non-accrual [Member] | Commercial and Industrial [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 4,961 | ' | ||
Total LHFI | 3,855 | ' | ' | ||
Non-accrual [Member] | Multi Family [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | 0 | ' | ' | ||
Non-accrual [Member] | Residential real estate [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 994 | ' | ||
Total LHFI | 520 | ' | ' | ||
Non-accrual [Member] | Leases [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 251 | ' | ||
Total LHFI | 385 | ' | ' | ||
Non-accrual [Member] | Tax Certificates [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 601 | ' | ||
Total LHFI | 532 | ' | ' | ||
Non-accrual [Member] | Consumer Portfolio Segment [Member] | ' | ' | ' | ||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | ' | ' | ' | ||
Subtotal LHFI | ' | 0 | ' | ||
Total LHFI | $0 | ' | ' | ||
[1] | For the 2013 period net deferred fees were allocated among the loan types. |
Loans_and_Leases_Aging_Analysi
Loans and Leases - Aging Analysis of Past Due Payments for Each Loan Portfolio Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | ||||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | $1,562,000 | ' | $1,562,000 | ' | $2,635,000 | |||
60-89 Days Past Due | 3,571,000 | ' | 3,571,000 | ' | 1,988,000 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 13,468,000 | ' | 13,468,000 | ' | 21,432,000 | |||
Current | 358,728,000 | ' | 358,728,000 | ' | 318,627,000 | |||
Subtotal LHFI | 377,329,000 | 343,564,000 | 377,329,000 | 343,564,000 | 344,682,000 | |||
Less: Deferred loan fees | 0 | [1] | ' | 0 | [1] | ' | -517,000 | [1] |
Total loans and leases | 377,329,000 | ' | 377,329,000 | ' | 344,165,000 | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 13,468,000 | ' | 13,468,000 | ' | 21,432,000 | |||
Total non-accrual LHFI, Specific reserves | 660,000 | ' | 660,000 | ' | 2,026,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFS, Loan balance | 0 | ' | 0 | ' | 1,572,000 | |||
Total non-accrual LHFS, Specific reserves | 0 | ' | 0 | ' | 0 | |||
Total non-accrual loans, Loan balance | 13,468,000 | ' | 13,468,000 | ' | 23,004,000 | |||
Total non-accrual loans, specific reserves | 660,000 | ' | 660,000 | ' | 2,026,000 | |||
Period decrease in nonaccrual loans | ' | ' | 9,500,000 | ' | ' | |||
Reduction in existing non accrual loan balances | ' | ' | 8,500,000 | ' | ' | |||
Addition of non accrual loan balance | ' | ' | 3,700,000 | ' | ' | |||
Change in the non accrual loans [Abstract] | ' | ' | ' | ' | ' | |||
Charge-offs to the allowance for loan and lease losses | 837,000 | 2,080,000 | 3,079,000 | 2,861,000 | 6,271,000 | |||
Interest income lost on non-accrual loans | 370,000 | ' | 1,300,000 | ' | ' | |||
Cash collected on non accrual and impaired loan | ' | ' | 10,600,000 | 22,300,000 | ' | |||
Amount credited to principal balance outstanding | ' | ' | 9,900,000 | 20,100,000 | ' | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Impaired loans with a valuation allowance | 5,550,000 | ' | 5,550,000 | ' | 9,405,000 | |||
Impaired loans without a valuation allowance | 17,868,000 | ' | 17,868,000 | ' | 19,423,000 | |||
Impaired LHFS | 0 | ' | 0 | ' | 1,572,000 | |||
Total impaired loans | 23,418,000 | ' | 23,418,000 | ' | 30,400,000 | |||
Total non-accrual loans, specific reserves | 660,000 | ' | 660,000 | ' | 2,026,000 | |||
Non-accrual Loans Held For Investment [Member] | ' | ' | ' | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Non-accrual loans transfer to other real estate owned | ' | ' | 1,500,000 | ' | ' | |||
Change in the non accrual loans [Abstract] | ' | ' | ' | ' | ' | |||
Charge-offs to the allowance for loan and lease losses | ' | ' | 3,200,000 | ' | ' | |||
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 1,005,000 | ' | 1,005,000 | ' | 1,548,000 | |||
60-89 Days Past Due | 3,152,000 | ' | 3,152,000 | ' | 1,486,000 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 5,477,000 | ' | 5,477,000 | ' | 10,345,000 | |||
Current | 148,589,000 | ' | 148,589,000 | ' | 153,736,000 | |||
Subtotal LHFI | ' | ' | ' | ' | 167,115,000 | |||
Total loans and leases | 158,223,000 | ' | 158,223,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 5,477,000 | ' | 5,477,000 | ' | 10,345,000 | |||
Total non-accrual LHFI, Specific reserves | 230,000 | ' | 230,000 | ' | 835,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFS, Loan balance | 0 | ' | 0 | ' | 1,572,000 | |||
Total non-accrual LHFS, Specific reserves | 0 | ' | 0 | ' | 0 | |||
Total non-accrual loans, specific reserves | 230,000 | ' | 230,000 | ' | 835,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 230,000 | ' | 230,000 | ' | 835,000 | |||
Construction and Land Development [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 0 | ' | 0 | ' | 0 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 0 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 2,699,000 | ' | 2,699,000 | ' | 4,280,000 | |||
Current | 36,895,000 | ' | 36,895,000 | ' | 32,935,000 | |||
Subtotal LHFI | 39,594,000 | ' | 39,594,000 | ' | 37,215,000 | |||
Total loans and leases | 39,594,000 | ' | 39,594,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 2,699,000 | ' | 2,699,000 | ' | 4,280,000 | |||
Total non-accrual LHFI, Specific reserves | 0 | ' | 0 | ' | 820,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 0 | ' | 0 | ' | 820,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 0 | ' | 0 | ' | 820,000 | |||
Commercial and Industrial [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 109,000 | ' | 109,000 | ' | 200,000 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 0 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 3,855,000 | ' | 3,855,000 | ' | 4,961,000 | |||
Current | 82,437,000 | ' | 82,437,000 | ' | 35,399,000 | |||
Subtotal LHFI | ' | ' | ' | ' | 40,560,000 | |||
Total loans and leases | 86,401,000 | ' | 86,401,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 3,855,000 | ' | 3,855,000 | ' | 4,961,000 | |||
Total non-accrual LHFI, Specific reserves | 209,000 | ' | 209,000 | ' | 255,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 209,000 | ' | 209,000 | ' | 255,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 209,000 | ' | 209,000 | ' | 255,000 | |||
Residential real estate [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 267,000 | ' | 267,000 | ' | 562,000 | |||
60-89 Days Past Due | 419,000 | ' | 419,000 | ' | 486,000 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 520,000 | ' | 520,000 | ' | 994,000 | |||
Current | 23,624,000 | ' | 23,624,000 | ' | 22,939,000 | |||
Subtotal LHFI | ' | ' | ' | ' | 24,981,000 | |||
Total loans and leases | 24,830,000 | ' | 24,830,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 520,000 | ' | 520,000 | ' | 994,000 | |||
Total non-accrual LHFI, Specific reserves | 16,000 | ' | 16,000 | ' | 14,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 16,000 | ' | 16,000 | ' | 14,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 16,000 | ' | 16,000 | ' | 14,000 | |||
Multi Family [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 0 | ' | 0 | ' | 0 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 0 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 0 | ' | 0 | ' | 0 | |||
Current | 11,678,000 | ' | 11,678,000 | ' | 11,756,000 | |||
Subtotal LHFI | 11,678,000 | ' | 11,678,000 | ' | 11,756,000 | |||
Total loans and leases | 11,678,000 | ' | 11,678,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 0 | ' | 0 | ' | 0 | |||
Leases [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 162,000 | ' | 162,000 | ' | 325,000 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 16,000 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 385,000 | ' | 385,000 | ' | 251,000 | |||
Current | 39,861,000 | ' | 39,861,000 | ' | 36,755,000 | |||
Subtotal LHFI | 40,408,000 | ' | 40,408,000 | ' | 37,347,000 | |||
Total loans and leases | 40,408,000 | ' | 40,408,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 385,000 | ' | 385,000 | ' | 251,000 | |||
Total non-accrual LHFI, Specific reserves | 138,000 | ' | 138,000 | ' | 55,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 138,000 | ' | 138,000 | ' | 55,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 138,000 | ' | 138,000 | ' | 55,000 | |||
Tax Certificates [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 0 | ' | 0 | ' | 0 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 0 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 532,000 | ' | 532,000 | ' | 601,000 | |||
Current | 14,832,000 | ' | 14,832,000 | ' | 23,968,000 | |||
Subtotal LHFI | 15,364,000 | ' | 15,364,000 | ' | 24,569,000 | |||
Total loans and leases | 15,364,000 | ' | 15,364,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | 532,000 | ' | 532,000 | ' | 601,000 | |||
Total non-accrual LHFI, Specific reserves | 67,000 | ' | 67,000 | ' | 47,000 | |||
Non-accrual loans held for sale [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 67,000 | ' | 67,000 | ' | 47,000 | |||
Summary of impaired loans [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual loans, specific reserves | 67,000 | ' | 67,000 | ' | 47,000 | |||
Consumer [Member] | ' | ' | ' | ' | ' | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | ' | ' | ' | ' | ' | |||
30-59 Days Past Due | 19,000 | ' | 19,000 | ' | 0 | |||
60-89 Days Past Due | 0 | ' | 0 | ' | 0 | |||
Accruing 90+Days | 0 | ' | 0 | ' | 0 | |||
Total non-accrual LHFI, loan balance | 0 | ' | 0 | ' | 0 | |||
Current | 812,000 | ' | 812,000 | ' | 1,139,000 | |||
Subtotal LHFI | 831,000 | ' | 831,000 | ' | 1,139,000 | |||
Total loans and leases | 831,000 | ' | 831,000 | ' | ' | |||
Non-accrual loans held for investment [Abstract] | ' | ' | ' | ' | ' | |||
Total non-accrual LHFI, Loan balance | $0 | ' | $0 | ' | $0 | |||
[1] | For the 2013 period net deferred fees were allocated among the loan types. |
Loans_and_Leases_Troubled_Debt
Loans and Leases, Troubled Debt Restructuring (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Loan | Loan | |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of TDRs on non-accrual status | 6 | ' |
Number of TDRs already classified as impaired | 6 | ' |
Pay downs and payoffs received | $3,300,000 | ' |
TDR, charge off recorded | 1,700,000 | ' |
Number of loans | 13 | 12 |
Total TDRs | 17,361,000 | 21,100,000 |
Proceeds from sale of one of the TDR | 2,500,000 | ' |
Financing Receivable New Modifications for the Period [Abstract] | ' | ' |
Number of loans | 3 | ' |
Rate | 0 | ' |
Term | 0 | ' |
Payment | 0 | ' |
Combination of types | 3,787,000 | ' |
Total | 3,787,000 | ' |
Pre-Modification Outstanding Recorded Investment | 3,848,000 | ' |
Post-Modification Outstanding Recorded Investment | 3,848,000 | ' |
Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 10,146,000 | ' |
Non-Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 7,215,000 | ' |
Commercial real estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 4 | ' |
Total TDRs | 8,845,000 | ' |
Financing Receivable New Modifications for the Period [Abstract] | ' | ' |
Number of loans | 2 | ' |
Rate | 0 | ' |
Term | 0 | ' |
Payment | 0 | ' |
Combination of types | 3,705,000 | ' |
Total | 3,705,000 | ' |
Pre-Modification Outstanding Recorded Investment | 3,761,000 | ' |
Post-Modification Outstanding Recorded Investment | 3,761,000 | ' |
Commercial real estate [Member] | Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 4,295,000 | ' |
Commercial real estate [Member] | Non-Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 4,550,000 | ' |
Construction and land development [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 4 | ' |
Total TDRs | 1,817,000 | ' |
Construction and land development [Member] | Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 1,320,000 | ' |
Construction and land development [Member] | Non-Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 497,000 | ' |
Commercial and Industrial [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 3 | ' |
Total TDRs | 6,569,000 | ' |
Financing Receivable New Modifications for the Period [Abstract] | ' | ' |
Number of loans | 1 | ' |
Rate | 0 | ' |
Term | 0 | ' |
Payment | 0 | ' |
Combination of types | 82,000 | ' |
Total | 82,000 | ' |
Pre-Modification Outstanding Recorded Investment | 87,000 | ' |
Post-Modification Outstanding Recorded Investment | 87,000 | ' |
Commercial and Industrial [Member] | Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 4,531,000 | ' |
Commercial and Industrial [Member] | Non-Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 2,038,000 | ' |
Residential real estate [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of loans | 2 | ' |
Total TDRs | 130,000 | ' |
Residential real estate [Member] | Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | 0 | ' |
Residential real estate [Member] | Non-Accrual Status [Member] | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Total TDRs | $130,000 | ' |
Allowance_for_Loan_and_Lease_L2
Allowance for Loan and Lease Losses - Changes in Allowance for Loan and Lease Losses (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | $15,179 | $17,495 | $17,261 | $16,380 | $16,380 |
Charge-offs | -837 | -2,080 | -3,079 | -2,861 | -6,271 |
Recoveries | 119 | 241 | 693 | 538 | 1,155 |
Provision | 218 | 1,761 | -196 | 3,360 | 5,997 |
Ending balance | 14,679 | 17,417 | 14,679 | 17,417 | 17,261 |
Ending balance: related to loans individually evaluated for impairment | 660 | 2,808 | 660 | 2,808 | 2,026 |
Ending balance: related to loans collectively evaluated for impairment | 14,019 | 14,609 | 14,019 | 14,609 | 15,235 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 377,329 | 343,564 | 377,329 | 343,564 | 344,682 |
Ending balance: individually evaluated for impairment | 23,418 | 28,593 | 23,418 | 28,593 | 28,828 |
Ending balance: collectively evaluated for impairment | 353,911 | 314,971 | 353,911 | 314,971 | 315,854 |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 7,952 | 7,679 | 8,750 | 7,744 | 7,744 |
Charge-offs | -605 | 0 | -1,440 | 0 | -1,313 |
Recoveries | 1 | 0 | 127 | 3 | 3 |
Provision | -1,159 | 1,009 | -1,248 | 941 | 2,316 |
Ending balance | 6,189 | 8,688 | 6,189 | 8,688 | 8,750 |
Ending balance: related to loans individually evaluated for impairment | 230 | 1,313 | 230 | 1,313 | 835 |
Ending balance: related to loans collectively evaluated for impairment | 5,959 | 7,375 | 5,959 | 7,375 | 7,915 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 158,223 | 161,834 | 158,223 | 161,834 | 167,115 |
Ending balance: individually evaluated for impairment | 10,045 | 13,493 | 10,045 | 13,493 | 10,958 |
Ending balance: collectively evaluated for impairment | 148,178 | 148,341 | 148,178 | 148,341 | 156,157 |
Construction and Land Development [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 2,017 | 3,738 | 2,987 | 2,523 | 2,523 |
Charge-offs | 0 | -1,242 | -820 | -1,242 | -2,452 |
Recoveries | 106 | 232 | 297 | 423 | 816 |
Provision | 72 | 753 | -269 | 1,777 | 2,100 |
Ending balance | 2,195 | 3,481 | 2,195 | 3,481 | 2,987 |
Ending balance: related to loans individually evaluated for impairment | 0 | 1,210 | 0 | 1,210 | 820 |
Ending balance: related to loans collectively evaluated for impairment | 2,195 | 2,271 | 2,195 | 2,271 | 2,167 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 39,594 | 40,280 | 39,594 | 40,280 | 37,215 |
Ending balance: individually evaluated for impairment | 4,019 | 7,552 | 4,019 | 7,552 | 5,943 |
Ending balance: collectively evaluated for impairment | 35,575 | 32,728 | 35,575 | 32,728 | 31,272 |
Commercial and Industrial [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 2,465 | 2,206 | 1,924 | 2,331 | 2,331 |
Charge-offs | -34 | -156 | -228 | -364 | -586 |
Recoveries | 4 | 3 | 14 | 60 | 67 |
Provision | 1,080 | -103 | 1,805 | -77 | 112 |
Ending balance | 3,515 | 1,950 | 3,515 | 1,950 | 1,924 |
Ending balance: related to loans individually evaluated for impairment | 209 | 222 | 209 | 222 | 255 |
Ending balance: related to loans collectively evaluated for impairment | 3,306 | 1,728 | 3,306 | 1,728 | 1,669 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 86,401 | 39,831 | 86,401 | 39,831 | 40,560 |
Ending balance: individually evaluated for impairment | 8,112 | 5,507 | 8,112 | 5,507 | 10,251 |
Ending balance: collectively evaluated for impairment | 78,289 | 34,324 | 78,289 | 34,324 | 30,309 |
Multi Family [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 588 | 946 | 654 | 531 | 531 |
Charge-offs | 0 | -541 | 0 | -541 | -542 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | -114 | 101 | -180 | 516 | 665 |
Ending balance | 474 | 506 | 474 | 506 | 654 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 474 | 506 | 474 | 506 | 654 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 11,678 | 8,490 | 11,678 | 8,490 | 11,756 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 11,678 | 8,490 | 11,678 | 8,490 | 11,756 |
Residential Real Estate [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 353 | 1,125 | 1,098 | 1,188 | 1,188 |
Charge-offs | -32 | -30 | -32 | -30 | -111 |
Recoveries | 2 | 0 | 157 | 2 | 208 |
Provision | 175 | 17 | -725 | -48 | -187 |
Ending balance | 498 | 1,112 | 498 | 1,112 | 1,098 |
Ending balance: related to loans individually evaluated for impairment | 16 | 22 | 16 | 22 | 14 |
Ending balance: related to loans collectively evaluated for impairment | 482 | 1,090 | 482 | 1,090 | 1,084 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 24,830 | 26,100 | 24,830 | 26,100 | 24,981 |
Ending balance: individually evaluated for impairment | 520 | 1,273 | 520 | 1,273 | 994 |
Ending balance: collectively evaluated for impairment | 24,310 | 24,827 | 24,310 | 24,827 | 23,987 |
Leases [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 999 | 1,212 | 1,108 | 1,311 | 1,311 |
Charge-offs | -40 | -82 | -149 | -377 | -465 |
Recoveries | 4 | 6 | 24 | 22 | 32 |
Provision | 133 | 13 | 113 | 193 | 230 |
Ending balance | 1,096 | 1,149 | 1,096 | 1,149 | 1,108 |
Ending balance: related to loans individually evaluated for impairment | 138 | 41 | 138 | 41 | 55 |
Ending balance: related to loans collectively evaluated for impairment | 958 | 1,108 | 958 | 1,108 | 1,053 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 40,408 | 38,313 | 40,408 | 38,313 | 37,347 |
Ending balance: individually evaluated for impairment | 190 | 52 | 190 | 52 | 81 |
Ending balance: collectively evaluated for impairment | 40,218 | 38,261 | 40,218 | 38,261 | 37,266 |
Tax Certificates [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 586 | 332 | 472 | 425 | 425 |
Charge-offs | -126 | -29 | -410 | -307 | -802 |
Recoveries | 2 | 0 | 74 | 28 | 29 |
Provision | 41 | -35 | 367 | 122 | 820 |
Ending balance | 503 | 268 | 503 | 268 | 472 |
Ending balance: related to loans individually evaluated for impairment | 67 | 0 | 67 | 0 | 47 |
Ending balance: related to loans collectively evaluated for impairment | 436 | 268 | 436 | 268 | 425 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 15,364 | 27,622 | 15,364 | 27,622 | 24,569 |
Ending balance: individually evaluated for impairment | 532 | 716 | 532 | 716 | 601 |
Ending balance: collectively evaluated for impairment | 14,832 | 26,906 | 14,832 | 26,906 | 23,968 |
Consumer [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 18 | 20 | 29 | 20 | 20 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | -3 | 6 | -14 | 6 | 9 |
Ending balance | 15 | 26 | 15 | 26 | 29 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 15 | 26 | 15 | 26 | 29 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 831 | 1,094 | 831 | 1,094 | 1,139 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 831 | 1,094 | 831 | 1,094 | 1,139 |
Unallocated [Member] | ' | ' | ' | ' | ' |
Allowance for Loan and Leases Losses [Roll Forward] | ' | ' | ' | ' | ' |
Beginning balance | 201 | 237 | 239 | 307 | 307 |
Charge-offs | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Provision | -7 | 0 | -45 | -70 | -68 |
Ending balance | 194 | 237 | 194 | 237 | 239 |
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: related to loans collectively evaluated for impairment | 194 | 237 | 194 | 237 | 239 |
LHFI [Abstract] | ' | ' | ' | ' | ' |
Ending balance | 0 | 0 | 0 | 0 | 0 |
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $0 | $0 | $0 | $0 | $0 |
Allowance_for_Loan_and_Lease_L3
Allowance for Loan and Lease Losses - Loans that were Evaluated for Impairment by Loan Segment (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | $27,249 | $25,029 |
With an allowance recorded | 11,013 | 25,075 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 17,868 | 19,423 |
With an allowance recorded | 5,550 | 9,405 |
Related allowance [Abstract] | ' | ' |
Related allowance | 660 | 2,026 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 19,406 | 28,620 |
With an allowance recorded | 6,111 | 4,602 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 442 | 359 |
With an allowance recorded | 0 | 7 |
Commercial Real Estate [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | 12,054 | 10,417 |
With an allowance recorded | 0 | 4,136 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 4,019 | 8,623 |
With an allowance recorded | 0 | 2,335 |
Related allowance [Abstract] | ' | ' |
Related allowance | 0 | 835 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 4,061 | 11,163 |
With an allowance recorded | 495 | 1,526 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 45 | 78 |
With an allowance recorded | 0 | 0 |
Construction and Land Development [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | 10,420 | 6,250 |
With an allowance recorded | 926 | 6,180 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 9,119 | 3,464 |
With an allowance recorded | 926 | 2,479 |
Related allowance [Abstract] | ' | ' |
Related allowance | 230 | 820 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 8,665 | 10,059 |
With an allowance recorded | 2,114 | 923 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 129 | 187 |
With an allowance recorded | 0 | 0 |
Commercial and Industrial [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | 4,775 | 7,790 |
With an allowance recorded | 4,664 | 9,585 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 4,730 | 6,820 |
With an allowance recorded | 3,382 | 3,431 |
Related allowance [Abstract] | ' | ' |
Related allowance | 209 | 255 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 6,401 | 5,545 |
With an allowance recorded | 2,587 | 682 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 241 | 73 |
With an allowance recorded | 0 | 0 |
Multi Family [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | ' | 0 |
With an allowance recorded | ' | 0 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | ' | 0 |
With an allowance recorded | ' | 0 |
Related allowance [Abstract] | ' | ' |
Related allowance | ' | 0 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | ' | 780 |
With an allowance recorded | ' | 383 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | ' | 0 |
With an allowance recorded | ' | 0 |
Residential real estate [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 572 |
With an allowance recorded | 707 | 685 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 0 | 516 |
With an allowance recorded | 520 | 478 |
Related allowance [Abstract] | ' | ' |
Related allowance | 16 | 14 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 108 | 490 |
With an allowance recorded | 472 | 714 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 27 | 21 |
With an allowance recorded | 0 | 7 |
Leasing [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With an allowance recorded | 190 | 81 |
Carrying value [Abstract] | ' | ' |
With an allowance recorded | 190 | 81 |
Related allowance [Abstract] | ' | ' |
Related allowance | 138 | 55 |
Average recorded investment [Abstract] | ' | ' |
With an allowance recorded | 105 | 86 |
Interest income recognized [Abstract] | ' | ' |
With an allowance recorded | 0 | 0 |
Tax Certificates [Member] | ' | ' |
Unpaid principal balance [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 4,526 | 4,408 |
Carrying value [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | 532 | 601 |
Related allowance [Abstract] | ' | ' |
Related allowance | 67 | 47 |
Average recorded investment [Abstract] | ' | ' |
With no related allowance recorded | 171 | 583 |
With an allowance recorded | 338 | 288 |
Interest income recognized [Abstract] | ' | ' |
With no related allowance recorded | 0 | 0 |
With an allowance recorded | $0 | $0 |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Loan | ||||||
Other Real Estate Owned [Abstract] | ' | ' | ' | ' | ' | ' |
Other real estate owned decrease | ' | ' | ' | ' | $471,000 | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Beginning balance | 13,002,000 | 13,264,000 | 13,435,000 | ' | 13,435,000 | ' |
Net proceeds from sales | -1,333,000 | -2,603,000 | -2,277,000 | ' | -6,213,000 | -6,360,000 |
Net gain (loss) on sales | 629,000 | 418,000 | 162,000 | 228,000 | 1,209,000 | 345,000 |
Assets acquired on non-accrual loans | 2,220,000 | 2,252,000 | 1,956,000 | ' | 6,428,000 | 10,492,000 |
Impairment charge | -612,000 | -329,000 | -12,000 | ' | -953,000 | -3,413,000 |
Ending balance | 13,906,000 | 13,002,000 | 13,264,000 | ' | 13,906,000 | ' |
Other real estate owned (OREO) | 13,906,000 | 13,002,000 | 13,264,000 | ' | 13,906,000 | ' |
Proceeds from sale of collateral related to other real estate owned | 1,333,000 | 2,603,000 | 2,277,000 | ' | 6,213,000 | 6,360,000 |
Impairment charge for other real estate owned | 612,000 | 329,000 | 12,000 | ' | 953,000 | 3,413,000 |
Number of lending relationships | 4 | ' | ' | ' | ' | ' |
Land [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net proceeds from sales | ' | -765,000 | -1,800,000 | ' | ' | ' |
Ending balance | 4,300,000 | ' | ' | ' | 4,300,000 | ' |
Other real estate owned (OREO) | 4,300,000 | ' | ' | ' | 4,300,000 | ' |
Proceeds from sale of collateral related to other real estate owned | ' | 765,000 | 1,800,000 | ' | ' | ' |
Gain (loss) on sale of OREO | ' | 12,000 | -38,000 | ' | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net proceeds from sales | -118,000 | -99,000 | -24,000 | ' | ' | ' |
Ending balance | 3,300,000 | ' | ' | ' | 3,300,000 | ' |
Other real estate owned (OREO) | 3,300,000 | ' | ' | ' | 3,300,000 | ' |
Proceeds from sale of collateral related to other real estate owned | 118,000 | 99,000 | 24,000 | ' | ' | ' |
Gain (loss) on sale of OREO | 79,000 | 37,000 | 17,000 | ' | ' | ' |
Single family homes [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net proceeds from sales | ' | -114,000 | -43,000 | ' | ' | ' |
Impairment charge | ' | -146,000 | ' | ' | ' | ' |
Ending balance | 283,000 | ' | ' | ' | 283,000 | ' |
Other real estate owned (OREO) | 283,000 | ' | ' | ' | 283,000 | ' |
Proceeds from sale of collateral related to other real estate owned | ' | 114,000 | 43,000 | ' | ' | ' |
Gain (loss) on sale of OREO | ' | 5,000 | 3,000 | ' | ' | ' |
Impairment charge for other real estate owned | ' | 146,000 | ' | ' | ' | ' |
Transfer to other real estate owned | ' | ' | 100,000 | ' | ' | ' |
Number of properties that the collateral was sold | ' | ' | 4 | ' | ' | ' |
Number of lending relationships | ' | 2 | 2 | ' | ' | ' |
Tax Lien [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Ending balance | 6,000,000 | ' | ' | ' | 6,000,000 | ' |
Other real estate owned (OREO) | 6,000,000 | ' | ' | ' | 6,000,000 | ' |
Properties With Updated Appraisals Or Agreements To Sale [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Impairment charge | -498,000 | ' | ' | ' | ' | ' |
Impairment charge for other real estate owned | 498,000 | ' | ' | ' | ' | ' |
Foreclosed Collateral On Tax Liens [Member] | ' | ' | ' | ' | ' | ' |
Foreclosed Property [Roll Forward] | ' | ' | ' | ' | ' | ' |
Net proceeds from sales | -1,200,000 | -1,600,000 | -367,000 | ' | ' | ' |
Impairment charge | -114,000 | -183,000 | -12,000 | ' | ' | ' |
Proceeds from sale of collateral related to other real estate owned | 1,200,000 | 1,600,000 | 367,000 | ' | ' | ' |
Gain (loss) on sale of OREO | 547,000 | 364,000 | 180,000 | ' | ' | ' |
Impairment charge for other real estate owned | 114,000 | 183,000 | 12,000 | ' | ' | ' |
Transfer to other real estate owned | $2,200,000 | $2,300,000 | $1,900,000 | ' | ' | ' |
Number of properties that the collateral was sold | 14 | 15 | 11 | ' | ' | ' |
Deposits_Details
Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Deposits [Abstract] | ' | ' | ' |
Demand | $63,338 | $58,531 | ' |
NOW | 40,497 | 43,920 | ' |
Money Market | 161,517 | 179,359 | ' |
Savings | 17,588 | 17,472 | ' |
Time deposits (over $100) | 89,476 | 91,233 | ' |
Time deposits (under $100) | 150,204 | 164,402 | ' |
Total deposits | $522,620 | $554,917 | $571,250 |
Borrowings_and_Subordinated_De2
Borrowings and Subordinated Debentures (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Affiliate | ||
Advances from the Federal Home Loan Bank [Abstract] | ' | ' |
Percentage of over collateralized delivery requirement with federal home loan bank (in hundredths) | 105.00% | ' |
Line of credit with federal home loan bank, amount | $150,000,000 | ' |
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | 74,300,000 | ' |
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged book value | 28,900,000 | ' |
Amount [Abstract] | ' | ' |
Advances maturing in 2013 | 14,000,000 | 50,000,000 |
Advances maturing in 2015 | 10,000,000 | 0 |
Advances maturing in 2016 | 10,000,000 | 0 |
Advances maturing in 2017 | 25,000,000 | 15,000,000 |
Advances maturing in 2018 | 10,000,000 | 0 |
Total FHLB borrowings | 69,000,000 | 65,000,000 |
Rate [Abstract] | ' | ' |
Advances maturing in 2013 (in hundredths) | 0.23% | 2.64% |
Advances maturing in 2015 (in hundredths) | 0.71% | 0.00% |
Advances maturing in 2016 (in hundredths) | 1.11% | 0.00% |
Advances maturing in 2017 (in hundredths) | 1.46% | 1.39% |
Advances maturing in 2018 (in hundredths) | 2.01% | 0.00% |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Number of Delaware trust affiliates | 2 | ' |
Interest payments in arrears on trust preferred securities | 3,100,000 | ' |
Interest penalty on trust preferred securities | 174,000 | ' |
Trust Preferred Securities [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Aggregate principal amount | 25,000,000 | ' |
Description of variable rate basis | '3-month LIBOR | ' |
Interest penalty on trust preferred securities | 174,000 | ' |
Trust Preferred Securities [Member] | Trust I [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Aggregate principal amount | 12,500,000 | ' |
Junior subordinated debenture owed to unconsolidated subsidiary trust | 12,900,000 | ' |
Debt securities interest rate (in hundredths) | 2.40% | ' |
Trust Preferred Securities basis spread on variable rate (in hundredths) | 2.15% | ' |
Trust Preferred Securities [Member] | Trust II [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Aggregate principal amount | 12,500,000 | ' |
Junior subordinated debenture owed to unconsolidated subsidiary trust | 12,900,000 | ' |
Debt securities interest rate (in hundredths) | 2.40% | ' |
Trust Preferred Securities basis spread on variable rate (in hundredths) | 2.15% | ' |
Common Securities [Member] | Trust I [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Aggregate principal amount | 387,000 | ' |
Common Securities [Member] | Trust II [Member] | ' | ' |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' |
Aggregate principal amount | 387,000 | ' |
PNC Bank [Member] | ' | ' |
Other borrowings [Abstract] | ' | ' |
Notes payable with PNC Bank | 3,000,000 | 3,300,000 |
Description of variable rate basis on notes payable | 'one month LIBOR | ' |
Basis spread on variable rate on notes payable (in hundredths) | 0.15% | ' |
Interest rate on notes payable (in hundredths) | 0.33% | ' |
Other borrowings from PNC Bank outstanding | $40,000,000 | $40,000,000 |
Weighted average interest rate on other borrowings from PNC Bank (in hundredths) | 3.65% | 3.65% |
PNC Bank [Member] | Notes payable [Member] | ' | ' |
Other borrowings [Abstract] | ' | ' |
Maturity date of borrowings from PNC Bank | 25-Aug-16 | ' |
PNC Bank [Member] | Other Borrowings [Member] | ' | ' |
Other borrowings [Abstract] | ' | ' |
Maturity date of borrowings from PNC Bank | 7-Jan-18 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2005 | |
Transaction | |||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Loss contingency accrual | $0 | $1,650,000 | $0 | $1,650,000 | $0 | $2,000,000 | ' |
Percentage of entity's share in loss contingency (in hundredths) | ' | 60.00% | ' | ' | ' | 60.00% | ' |
Loss contingency, entity's share amount | ' | 990,000 | ' | ' | ' | 1,200,000 | ' |
Payments to acquire collateralized debt obligation offered by Lehman Brothers, Inc. | ' | ' | ' | ' | ' | ' | 25,000,000 |
Number of separate CDO transactions improperly paid to note holders | ' | ' | ' | 47 | ' | ' | ' |
CSL [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest hold (in hundredths) | 60.00% | ' | ' | 60.00% | ' | ' | ' |
RTL [Member] | ' | ' | ' | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity interest hold (in hundredths) | 60.00% | ' | ' | 60.00% | ' | ' | ' |
Open-end lines of credit [Member] | ' | ' | ' | ' | ' | ' | ' |
Contracts of financial instruments represent credit risk [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Financial instruments whose contract amounts represent credit risk | ' | ' | ' | 28,402,000 | ' | 20,515,000 | ' |
Commitments to Extend Credit [Member] | ' | ' | ' | ' | ' | ' | ' |
Contracts of financial instruments represent credit risk [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Financial instruments whose contract amounts represent credit risk | ' | ' | ' | 14,092,000 | ' | 24,030,000 | ' |
Standby letters of credit and financial guarantees written [Member] | ' | ' | ' | ' | ' | ' | ' |
Contracts of financial instruments represent credit risk [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Financial instruments whose contract amounts represent credit risk | ' | ' | ' | $2,829,000 | ' | $1,199,000 | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Millions, except Share data, unless otherwise specified | Series A Preferred Stock [Member] | Common Class A [Member] | Common Class B [Member] | ||
Preferred Stock [Abstract] | ' | ' | ' | ' | ' |
Preferred stock, shares issued (in shares) | 30,407 | 30,407 | ' | ' | ' |
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 | ' | ' | ' |
Number of shares to be purchased by warrant (in shares) | ' | ' | ' | 1,104,370 | ' |
Aggregate purchase price | ' | ' | $30.40 | ' | ' |
Preferred stock cumulative dividend rate percentage for first five years (in hundredths) | ' | ' | 5.00% | ' | ' |
Preferred stock cumulative dividend rate percentage for thereafter five years (in hundredths) | ' | ' | 9.00% | ' | ' |
Number of years for warrant issued to treasury | ' | ' | '10 years | ' | ' |
Warrants, exercise price (in dollars per share) | ' | ' | $4.13 | ' | ' |
Common Stock [Abstract] | ' | ' | ' | ' | ' |
Rate class B shares may be converted to class A shares | ' | ' | ' | '1.15 to 1 | '1.15 to 1 |
Number of vote for class of shares held | ' | ' | ' | '1 | '10 |
Payments of Dividends [Abstract] | ' | ' | ' | ' | ' |
Value on which quarterly dividend is suspended | ' | ' | 30.4 | ' | ' |
Preferred stock dividend in arrears | ' | ' | $7.20 | ' | ' |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | Jul. 15, 2009 | Sep. 30, 2013 | Sep. 30, 2013 | |
Royal Bank [Member] | Royal Bank [Member] | Royal Bank [Member] | Royal Bancshares [Member] | Royal Bancshares [Member] | |||||
FR Y-9C [Member] | |||||||||
Regulatory Capital Requirements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Tier one leverage ratio required (in hundredths) | 8.00% | ' | 8.00% | ' | ' | 8.00% | 8.00% | ' | ' |
Total risk based capital ratio (in hundredths) | 12.00% | ' | 12.00% | ' | ' | ' | ' | ' | ' |
Capital actual amount under regulations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) | ' | ' | ' | ' | $74,057,000 | ' | ' | $88,256,000 | ' |
Tier I capital (to risk-weighted assets) | ' | ' | ' | ' | 68,052,000 | ' | ' | 76,352,000 | ' |
Tier I capital (to average assets, leverage) | ' | ' | ' | ' | 68,052,000 | ' | ' | 76,352,000 | ' |
Actual Ratio Under RAP [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | 15.70% | ' | 15.70% | ' | 15.70% | ' | ' | 18.29% | ' |
Tier I capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 14.43% | ' | ' | 18.82% | ' |
Tier I capital (to average assets, leverage) (in hundredths) | 9.39% | ' | 9.39% | ' | 9.39% | ' | ' | 10.35% | ' |
For capital adequacy purposes, amount [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) | ' | ' | ' | ' | 37,736,000 | ' | ' | 38,606,000 | ' |
Tier I capital (to risk-weighted assets) | ' | ' | ' | ' | 18,868,000 | ' | ' | 19,303,000 | ' |
Tier I capital (to average assets, leverage) | ' | ' | ' | ' | 28,995,000 | ' | ' | 29,499,000 | ' |
For capital adequacy purposes, ratio [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 8.00% | ' | ' | 8.00% | ' |
Tier I capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 4.00% | ' | ' | 4.00% | ' |
Tier I capital (to average assets, leverage) (in hundredths) | ' | ' | ' | ' | 4.00% | ' | ' | 4.00% | ' |
To be well capitalized capitalized under prompt corrective action provision, amount [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) | ' | ' | ' | ' | 47,170,000 | ' | ' | ' | ' |
Tier I capital (to risk-weighted assets) | ' | ' | ' | ' | 28,302,000 | ' | ' | ' | ' |
Tier I capital (to average assets, leverage) | ' | ' | ' | ' | 36,244,000 | ' | ' | ' | ' |
To be well capitalized capitalized under prompt corrective action provision, ratio [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Tier I capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 6.00% | ' | ' | ' | ' |
Tier I capital (to average assets, leverage) (in hundredths) | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' |
Adjustments to net loss as well as the capital ratios [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
RAP net loss | ' | ' | ' | ' | -3,279,000 | ' | ' | -3,715,000 | ' |
Tax lien adjustment, net of noncontrolling interest | ' | ' | ' | ' | 3,372,000 | ' | ' | -3,372,000 | ' |
U.S. GAAP net loss | $342,000 | ($4,812,000) | ($343,000) | ($7,631,000) | $93,000 | ' | ' | ($343,000) | ' |
Actual Ratio Under US GAAP [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 16.70% | ' | ' | ' | 18.29% |
Tier I capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | 15.43% | ' | ' | ' | 15.82% |
Tier I capital (to average assets, leverage) (in hundredths) | ' | ' | ' | ' | 10.09% | ' | ' | ' | 10.35% |
Ratios As Adjusted Under RAP [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 17.34% | ' |
Tier I capital (to risk-weighted assets) (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 14.46% | ' |
Tier I capital (to average assets, leverage) (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 9.41% | ' |
Pension_Plan_Details
Pension Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Plan [Abstract] | ' | ' | ' | ' |
Highest consecutive years of employee compensation used to compute benefit | ' | ' | '3 years | ' |
Years of employment used in benefit computation | ' | ' | '10 years | ' |
Net Pension Cost [Abstract] | ' | ' | ' | ' |
Service cost | $19 | $68 | $56 | $204 |
Interest cost | 133 | 154 | 399 | 450 |
Amortization of prior service cost | 22 | 23 | 67 | 67 |
Amortization of actuarial loss | 122 | 96 | 367 | 287 |
Net periodic benefit cost | $296 | $341 | $889 | $1,008 |
Loss_Per_Common_Share_Details
Loss Per Common 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 |
Class | ||||
Loss Per Common Share [Abstract] | ' | ' | ' | ' |
Number of classes of common stock outstanding | ' | ' | 2 | ' |
Basic and Diluted EPS [Abstract] | ' | ' | ' | ' |
Loss available to common shareholders | ($178) | ($5,323) | ($1,896) | ($9,156) |
Average shares (in shares) | 13,286 | 13,257 | 13,272 | 13,257 |
Per share amount (in dollars per share) | ($0.01) | ($0.40) | ($0.14) | ($0.69) |
Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of antidilutive common share (in shares) | 202,480 | 380,874 | 202,480 | 459,719 |
Warrants [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of antidilutive common share (in shares) | 30,407 | 30,407 | 30,407 | 30,407 |
Common Class A [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of converted share (in shares) | ' | ' | 1.15 | ' |
Common Class B [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of converted share (in shares) | ' | ' | 1.15 | ' |
Comprehensive_Income_Details
Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Unrealized gains (losses) on investment securities [Abstract] | ' | ' | ' | ' | ||||
Unrealized holding losses arising during period, before tax | ' | ' | ($8,833) | $1,440 | ||||
Less adjustment for impaired investments, before tax | ' | ' | ' | -859 | ||||
Less reclassification adjustment for gains realized in net loss, before tax | ' | ' | 69 | 384 | ||||
Unrealized gains (losses) on investment securities, before tax | ' | ' | -8,902 | 1,915 | ||||
Unrecognized benefit obligation expense [Abstract] | ' | ' | ' | ' | ||||
Less reclassification adjustment for amortization, before tax | ' | ' | -429 | -354 | ||||
Other comprehensive income (loss), net, before tax | ' | ' | -8,473 | 2,269 | ||||
Unrealized gains (losses) on investment securities [Abstract] | ' | ' | ' | ' | ||||
Unrealized holding losses arising during period, tax | ' | ' | -3,128 | 602 | ||||
Less adjustment for impaired investments, tax | ' | ' | ' | -301 | ||||
Less reclassification adjustment for gains realized in net loss, tax | ' | ' | 23 | 134 | ||||
Unrealized gains (losses) on investment securities, tax | ' | ' | -3,151 | 769 | ||||
Unrecognized benefit obligation expense [Abstract] | ' | ' | ' | ' | ||||
Less reclassification adjustment for amortization, tax | ' | ' | -146 | -90 | ||||
Other comprehensive income (loss), net, tax | ' | ' | -3,005 | 859 | ||||
Unrealized gains (losses) on investment securities [Abstract] | ' | ' | ' | ' | ||||
Unrealized holding losses arising during period, net of tax | -1,687 | 1,067 | -5,705 | 838 | ||||
Less adjustment for impaired investments, net of tax | 0 | [1] | 0 | [1] | 0 | [1] | -558 | [1] |
Less reclassification adjustment for gains realized in net loss | 0 | [2] | 147 | [2] | 46 | [2] | 250 | [2] |
Unrealized (losses) gains on investment securities | -1,687 | 920 | -5,751 | 1,146 | ||||
Unrecognized benefit obligation expense [Abstract] | ' | ' | ' | ' | ||||
Less reclassification adjustment for amortization | -94 | [3] | -150 | [3] | -283 | [3] | -264 | [3] |
Other comprehensive (loss) income | ($1,593) | $1,070 | ($5,468) | $1,410 | ||||
[1] | Amounts are included in total other-than-temporary impairment on investment securities on the Consolidated Statements of Operations in total non-interest income. | |||||||
[2] | Amounts are included in net gains on the sale of available for sale investment securities on the Consolidated Statements of Operations in total non-interest income. | |||||||
[3] | Amounts are included in salaries and benefits on the Consolidated Statements of Operations in non-interest expense. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | $165,958 | ' |
Collateralized mortgage obligations Non-agency | 4,566 | ' |
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
Total investment securities available-for-sale | 48 | 47 |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Loans and leases held for sale | ' | 0 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
Total investment securities available-for-sale | 287,035 | 344,992 |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Loans and leases held for sale | ' | 0 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
Total investment securities available-for-sale | 4,262 | 4,164 |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Loans and leases held for sale | ' | 1,572 |
Recurring [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
U.S. government agencies | 69,751 | 66,444 |
Mortgage-backed securities - residential | 31,839 | 30,509 |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | 165,958 | 233,976 |
Collateralized mortgage obligations Non-agency | 4,566 | 1,011 |
Corporate bonds | 9,593 | 7,437 |
Municipal bonds | 5,328 | 5,615 |
Other securities | 4,262 | 4,164 |
Common stocks | 48 | 47 |
Total investment securities available-for-sale | 291,345 | 349,203 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
U.S. government agencies | 0 | 0 |
Mortgage-backed securities - residential | 0 | 0 |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | 0 | 0 |
Collateralized mortgage obligations Non-agency | 0 | 0 |
Corporate bonds | 0 | 0 |
Municipal bonds | 0 | 0 |
Other securities | 0 | 0 |
Common stocks | 48 | 47 |
Total investment securities available-for-sale | 48 | 47 |
Recurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
U.S. government agencies | 69,751 | 66,444 |
Mortgage-backed securities - residential | 31,839 | 30,509 |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | 165,958 | 233,976 |
Collateralized mortgage obligations Non-agency | 4,566 | 1,011 |
Corporate bonds | 9,593 | 7,437 |
Municipal bonds | 5,328 | 5,615 |
Other securities | 0 | 0 |
Common stocks | 0 | 0 |
Total investment securities available-for-sale | 287,035 | 344,992 |
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Financial assets measured at fair value on recurring basis [Abstract] | ' | ' |
U.S. government agencies | 0 | 0 |
Mortgage-backed securities - residential | 0 | 0 |
Collateralized mortgage obligations issued or guaranteed by U.S. government agencies | 0 | 0 |
Collateralized mortgage obligations Non-agency | 0 | 0 |
Corporate bonds | 0 | 0 |
Municipal bonds | 0 | 0 |
Other securities | 4,262 | 4,164 |
Common stocks | 0 | 0 |
Total investment securities available-for-sale | 4,262 | 4,164 |
Nonrecurring [Member] | ' | ' |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Impaired loans and leases | 9,555 | 9,180 |
Other real estate owned | 8,740 | 7,632 |
Loans and leases held for sale | ' | 1,572 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Impaired loans and leases | 0 | 0 |
Other real estate owned | 0 | 0 |
Loans and leases held for sale | ' | 0 |
Nonrecurring [Member] | Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Impaired loans and leases | 0 | 0 |
Other real estate owned | 0 | 0 |
Loans and leases held for sale | ' | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Financial assets measured at fair value on nonrecurring basis [Abstract] | ' | ' |
Impaired loans and leases | 9,555 | 9,180 |
Other real estate owned | 8,740 | 7,632 |
Loans and leases held for sale | ' | $1,572 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Assets measured at fair value on recurring basis Level 3 inputs [Roll Forward] | ' | ' |
Beginning balance | ' | $19,521 |
Total gains/(losses) - (realized/unrealized) [Abstract] | ' | ' |
Included in earnings | ' | -729 |
Included in other comprehensive income | ' | -581 |
Purchases | ' | 500 |
Sales and calls | ' | -4,937 |
Amortization of premium | ' | -16 |
Transfers in and/or out of Level 3 | ' | 0 |
Ending balance | ' | 13,758 |
Trust Preferred Securities [Member] | ' | ' |
Assets measured at fair value on recurring basis Level 3 inputs [Roll Forward] | ' | ' |
Beginning balance | ' | 12,603 |
Total gains/(losses) - (realized/unrealized) [Abstract] | ' | ' |
Included in earnings | ' | 89 |
Included in other comprehensive income | ' | -392 |
Purchases | ' | 0 |
Sales and calls | ' | -4,362 |
Amortization of premium | ' | -16 |
Transfers in and/or out of Level 3 | ' | 0 |
Ending balance | ' | 7,922 |
Other Securities [Member] | ' | ' |
Assets measured at fair value on recurring basis Level 3 inputs [Roll Forward] | ' | ' |
Beginning balance | 4,164 | 6,918 |
Total gains/(losses) - (realized/unrealized) [Abstract] | ' | ' |
Included in earnings | 5 | -818 |
Included in other comprehensive income | 361 | -189 |
Purchases | 32 | 500 |
Sales and calls | -300 | -575 |
Amortization of premium | ' | 0 |
Transfers in and/or out of Level 3 | 0 | 0 |
Ending balance | $4,262 | $5,836 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Quantitative Information (Details) (Significant Unobservable Inputs Level 3 [Member], USD $) | Sep. 30, 2013 | |
In Thousands, unless otherwise specified | ||
Maximum [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -4.00% | [1] |
Minimum [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -23.30% | [1] |
Weighted Average [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -6.50% | [1] |
Appraisal of collateral valuation technique [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Assets, Fair Value | 9,555 | |
Appraisal of collateral valuation technique [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Assets, Fair Value | 8,740 | |
Appraisal of collateral valuation technique [Member] | Maximum [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | 0.00% | [1] |
Appraisal of collateral valuation technique [Member] | Maximum [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | 0.00% | [1] |
Appraisal of collateral valuation technique [Member] | Minimum [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | -20.00% | [1] |
Appraisal of collateral valuation technique [Member] | Minimum [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | -81.10% | [1] |
Appraisal of collateral valuation technique [Member] | Weighted Average [Member] | Impaired loans and leases [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | -9.20% | [1] |
Appraisal of collateral valuation technique [Member] | Weighted Average [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Appraisal adjustments (in hundredths) | -4.40% | [1] |
Salvageable value of collateral valuation technique [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Salvageable value of collateral (in hundredths) | 0.00% | [2] |
Sales prices [Member] | Maximum [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -5.00% | |
Sales prices [Member] | Minimum [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -8.00% | |
Sales prices [Member] | Weighted Average [Member] | Other real estate owned [Member] | ' | |
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ' | |
Range (Weighted Average) of Liquidation expenses (in hundredths) | -6.30% | |
[1] | Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. Fair value may also be based on negotiated settlements with the borrower. | |
[2] | Leases are measured using the salvageable value of the collateral. |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Balance Sheet Grouping (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets Level 1 [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Cash and cash equivalents | $18,854 | $28,802 |
Investment securities available-for-sale | 48 | 47 |
Other investment | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans held for sale | ' | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ' | ' |
Demand deposits | 0 | 0 |
NOW and money markets | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 14,000 | ' |
Long-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs Level 2 [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 287,035 | 344,992 |
Other investment | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Loans held for sale | ' | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 7,869 | 10,256 |
Financial Liabilities [Abstract] | ' | ' |
Demand deposits | 63,338 | 58,531 |
NOW and money markets | 202,014 | 223,279 |
Savings | 17,588 | 17,472 |
Time deposits | 237,679 | 251,532 |
Short-term borrowings | 0 | ' |
Long-term borrowings | 94,832 | 102,824 |
Subordinated debt | 24,579 | 23,837 |
Accrued interest payable | 2,471 | 3,760 |
Significant Unobservable Inputs Level 3 [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Cash and cash equivalents | 0 | 0 |
Investment securities available-for-sale | 4,262 | 4,164 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 4,364 | 6,011 |
Loans held for sale | ' | 1,572 |
Loans, net | 356,964 | 330,260 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities [Abstract] | ' | ' |
Demand deposits | 0 | 0 |
NOW and money markets | 0 | 0 |
Savings | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | ' |
Long-term borrowings | 0 | 0 |
Subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Cash and cash equivalents | 18,854 | 28,802 |
Investment securities available-for-sale | 291,345 | 349,203 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 4,364 | 6,011 |
Loans held for sale | ' | 1,572 |
Loans, net | 362,650 | 326,904 |
Accrued interest receivable | 7,869 | 10,256 |
Financial Liabilities [Abstract] | ' | ' |
Demand deposits | 63,338 | 58,531 |
NOW and money markets | 202,014 | 223,279 |
Savings | 17,588 | 17,472 |
Time deposits | 239,680 | 255,635 |
Short-term borrowings | 14,000 | ' |
Long-term borrowings | 97,994 | 108,333 |
Subordinated debt | 25,774 | 25,774 |
Accrued interest payable | 2,471 | 3,760 |
Estimated Fair Value [Member] | ' | ' |
Financial Assets [Abstract] | ' | ' |
Cash and cash equivalents | 18,854 | 28,802 |
Investment securities available-for-sale | 291,345 | 349,203 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 4,364 | 6,011 |
Loans held for sale | ' | 1,572 |
Loans, net | 356,964 | 330,260 |
Accrued interest receivable | 7,869 | 10,256 |
Financial Liabilities [Abstract] | ' | ' |
Demand deposits | 63,338 | 58,531 |
NOW and money markets | 202,014 | 223,279 |
Savings | 17,588 | 17,472 |
Time deposits | 237,679 | 251,532 |
Short-term borrowings | 14,000 | ' |
Long-term borrowings | 94,832 | 102,824 |
Subordinated debt | 24,579 | 23,837 |
Accrued interest payable | $2,471 | $3,760 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | ' | ' | ' | ' | ' |
Total assets | $737,000,000 | $801,681,000 | $737,000,000 | $801,681,000 | $773,716,000 |
Total deposits | 522,620,000 | 571,250,000 | 522,620,000 | 571,250,000 | 554,917,000 |
Interest income | 6,960,000 | 7,761,000 | 20,455,000 | 24,990,000 | ' |
Interest expense | 1,890,000 | 2,379,000 | 5,667,000 | 7,709,000 | ' |
Net Interest Income | 5,070,000 | 5,382,000 | 14,788,000 | 17,281,000 | ' |
(Credit) provision for loan and lease losses | 218,000 | 1,761,000 | -196,000 | 3,360,000 | ' |
Total other income | 1,937,000 | 1,151,000 | 4,306,000 | 3,757,000 | ' |
Total other expenses | 6,290,000 | 9,409,000 | 19,997,000 | 26,068,000 | ' |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ' |
Net Income (Loss) | 499,000 | -4,637,000 | -707,000 | -8,390,000 | ' |
Noncontrolling interest | 157,000 | 175,000 | -364,000 | -759,000 | ' |
Net income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | 342,000 | -4,812,000 | -343,000 | -7,631,000 | ' |
Community Banking [Member] | ' | ' | ' | ' | ' |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | ' | ' | ' | ' | ' |
Total assets | 708,864,000 | 759,099,000 | 708,864,000 | 759,099,000 | ' |
Total deposits | 522,620,000 | 571,250,000 | 522,620,000 | 571,250,000 | ' |
Interest income | 6,485,000 | 6,542,000 | 18,511,000 | 20,833,000 | ' |
Interest expense | 1,560,000 | 1,782,000 | 4,525,000 | 5,494,000 | ' |
Net Interest Income | 4,925,000 | 4,760,000 | 13,986,000 | 15,339,000 | ' |
(Credit) provision for loan and lease losses | 178,000 | 1,796,000 | -563,000 | 3,239,000 | ' |
Total other income | 1,344,000 | 847,000 | 3,056,000 | 3,434,000 | ' |
Total other expenses | 5,683,000 | 8,851,000 | 16,348,000 | 21,435,000 | ' |
Income tax expense (benefit) | 0 | -156,000 | 0 | 201,000 | ' |
Net Income (Loss) | 408,000 | -4,884,000 | 1,257,000 | -6,102,000 | ' |
Noncontrolling interest | 121,000 | 76,000 | 422,000 | -1,398,000 | ' |
Net income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | 287,000 | -4,960,000 | 835,000 | -4,704,000 | ' |
Tax Lien Operation [Member] | ' | ' | ' | ' | ' |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | ' | ' | ' | ' | ' |
Total assets | 28,136,000 | 42,582,000 | 28,136,000 | 42,582,000 | ' |
Total deposits | 0 | 0 | 0 | 0 | ' |
Interest income | 475,000 | 1,219,000 | 1,944,000 | 4,157,000 | ' |
Interest expense | 330,000 | 597,000 | 1,142,000 | 2,215,000 | ' |
Net Interest Income | 145,000 | 622,000 | 802,000 | 1,942,000 | ' |
(Credit) provision for loan and lease losses | 40,000 | -35,000 | 367,000 | 121,000 | ' |
Total other income | 593,000 | 304,000 | 1,250,000 | 323,000 | ' |
Total other expenses | 607,000 | 558,000 | 3,649,000 | 4,633,000 | ' |
Income tax expense (benefit) | 0 | 156,000 | 0 | -201,000 | ' |
Net Income (Loss) | 91,000 | 247,000 | -1,964,000 | -2,288,000 | ' |
Noncontrolling interest | 36,000 | 99,000 | -786,000 | 639,000 | ' |
Net income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | 55,000 | 148,000 | -1,178,000 | -2,927,000 | ' |
Tax Lien Operation Interest [Member] | ' | ' | ' | ' | ' |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | ' | ' | ' | ' | ' |
Interest income | $330,000 | $597,000 | $1,100,000 | $2,200,000 | ' |
Federal_Home_Loan_Bank_Stock_D
Federal Home Loan Bank Stock (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Stock [Abstract] | ' | ' |
Total FHLB stock | $4,364 | $6,011 |