Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | ROYAL BANCSHARES OF PENNSYLVANIA INC | |
Entity Central Index Key | 922487 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Current Fiscal Year End Date | -19 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Common Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 27,818,286 | |
Common Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,931,692 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $9,883,000 | $9,642,000 |
Interest bearing deposits | 31,735,000 | 21,148,000 |
Total cash and cash equivalents | 41,618,000 | 30,790,000 |
Available-for-sale Securities | 227,762,000 | 250,368,000 |
Other investment, at cost | 2,250,000 | 2,250,000 |
Federal Home Loan Bank ("FHLB") stock | 2,622,000 | 2,622,000 |
Loans and leases ("LHFI") | 418,686,000 | 415,132,000 |
Less allowance for loan and lease losses | 10,897,000 | 11,708,000 |
Net loans and leases | 407,789,000 | 403,424,000 |
Bank owned life insurance | 15,762,000 | 15,636,000 |
Accrued interest receivable | 4,873,000 | 5,270,000 |
Other real estate owned ("OREO"), net | 10,541,000 | 9,779,000 |
Premises and equipment, net | 5,125,000 | 5,201,000 |
Other assets | 6,863,000 | 7,213,000 |
Total assets | 725,205,000 | 732,553,000 |
Deposits | ||
Non-interest bearing | 76,808,000 | 73,665,000 |
Interest bearing | 443,478,000 | 456,760,000 |
Total deposits | 520,286,000 | 530,425,000 |
Long-term borrowings | 92,312,000 | 92,426,000 |
Subordinated debentures | 25,774,000 | 25,774,000 |
Accrued interest payable | 1,270,000 | 726,000 |
Other liabilities | 20,492,000 | 20,596,000 |
Total liabilities | 660,134,000 | 669,947,000 |
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Preferred stock, Series A perpetual, $1,000 liquidation value, 500,000 shares authorized, 18,856 shares outstanding | 18,856,000 | 18,856,000 |
Additional paid in capital | 110,529,000 | 110,697,000 |
Accumulated deficit | -114,273,000 | -115,864,000 |
Accumulated other comprehensive loss | -1,658,000 | -2,492,000 |
Treasury stock - at cost, shares of Class A, 383,403 and 398,365 at March 31, 2015 and December 31, 2014, respectively | -5,361,000 | -5,571,000 |
Total Royal Bancshares of Pennsylvania, Inc. shareholders’ equity | 64,686,000 | 62,219,000 |
Noncontrolling interest | 385,000 | 387,000 |
Total equity | 65,071,000 | 62,606,000 |
Total liabilities and shareholders' equity | 725,205,000 | 732,553,000 |
Common Class A [Member] | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock | 56,400,000 | 56,400,000 |
Total equity | 56,400,000 | 56,400,000 |
Common Class B [Member] | ||
Royal Bancshares of Pennsylvania, Inc. equity: | ||
Common stock | 193,000 | 193,000 |
Total equity | $193,000 | $193,000 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 outstanding (in shares) | 18,856 | 18,856 |
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) | 28,200,269 | 28,200,269 |
Treasury stock, shares (in shares) | 383,403 | 398,365 |
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) | 1,931,692 | 1,931,692 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Income | ||
Loans and leases, including fees | $5,699 | $5,224 |
Investment securities AFS | 1,576 | 1,922 |
Deposits in banks | 5 | 5 |
Total Interest Income | 7,280 | 7,151 |
Interest Expense | ||
Deposits | 908 | 913 |
Short-term borrowings | 5 | |
Long-term borrowings | 663 | 707 |
Total Interest Expense | 1,571 | 1,625 |
Net Interest Income | 5,709 | 5,526 |
Credit for loan and lease losses | -580 | -639 |
Net Interest Income after Credit for Loan and Lease Losses | 6,289 | 6,165 |
Non-interest Income | ||
Service charges and fees | 195 | 313 |
Net gains on sales of loans and leases | 137 | |
Net gains on sales of other real estate owned | 280 | 129 |
Income from bank owned life insurance | 126 | 129 |
Net gains on the sale of AFS investment securities | 187 | |
Other income | 59 | 64 |
Total Non-interest Income | 847 | 772 |
Non-interest Expense | ||
Employee salaries and benefits | 2,611 | 2,380 |
Occupancy and equipment | 756 | 630 |
Professional and legal fees | 423 | 603 |
OREO expenses and impairment | 322 | 286 |
Pennsylvania shares tax | 113 | 275 |
FDIC and state assessments | 193 | 255 |
Communications and data processing | 200 | 153 |
Provision for credit losses on off-balance sheet credit exposures | 127 | 79 |
Directors' fees | 118 | 121 |
Marketing and advertising | 45 | 116 |
Insurance | 78 | 110 |
Other operating expenses | 389 | 314 |
Total Non-interest Expense | 5,375 | 5,322 |
Income Before Tax (Benefit) Expense | 1,761 | 1,615 |
Net Income | 1,761 | 1,615 |
Less Net Income (Loss) Attributable to Noncontrolling Interest | 170 | 117 |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 1,591 | 1,498 |
Less Preferred Stock Series A Accumulated Dividend and Accretion | 424 | 664 |
Net Income Available to Common Shareholders | $1,167 | $834 |
Per Common Share Data | ||
Net Income - Basic and Diluted | $0.04 | $0.06 |
Statements_of_Consolidated_Com
Statements of Consolidated Comprehensive Income (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Statements of Consolidated Comprehensive Income - (unaudited) [Abstract] | ||||
Net income | $1,761 | $1,615 | ||
Unrealized gains (losses) on investment securities: | ||||
Unrealized holding gains (losses) arising during period, net of tax effect | 1,095 | 2,197 | ||
Less reclassification adjustment for gains realized in net income (1) | 123 | [1] | ||
Unrealized gains (losses) on investment securities, net of tax | 972 | 2,197 | ||
Unrecognized benefit obligation expense: | ||||
Reclassification adjustment for amortization (2) | -17 | [2] | -18 | [2] |
Unrecognized benefit obligation, net of tax | -17 | -18 | ||
Unrealized loss on derivative instrument, net of tax effect | -121 | |||
Other comprehensive income (loss) | 834 | 2,215 | ||
Comprehensive income (loss) | 2,595 | 3,830 | ||
Less net income (loss) attributable to noncontrolling interest | 170 | 117 | ||
Comprehensive income (loss) attributable to Royal Bancshares of Pennsylvania, Inc. | $2,425 | $3,713 | ||
[1] | Gross amounts are included in net gains on the sale of AFS investment securities on the Consolidated Statements of Income. See Note 15. C | |||
[2] | Gross amounts are included in salaries and benefits on the Consolidated Statements of Income. See Note 15. Comprehensive Income (Loss). |
Consolidated_Statement_of_Chan
Consolidated Statement of Changes in Shareholders' Equity (USD $) | Preferred Stock Series A [Member] | Additional Paid In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Common Class A [Member] | Common Class B [Member] | Total |
In Thousands, except Share data, unless otherwise specified | |||||||||
Balance at Dec. 31, 2013 | $29,950 | $127,299 | ($120,396) | ($6,122) | ($6,336) | $271 | $22,940 | $199 | $47,805 |
Balance (in shares) at Dec. 31, 2013 | 11,470 | 1,987 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,498 | 117 | 1,615 | ||||||
Other comprehensive income, net of reclassifications and taxes | 2,215 | 2,215 | |||||||
Distributions to non controlling interests | -53 | -53 | |||||||
Common stock conversion from Class B to Class A | -35 | 37 | -2 | ||||||
Common stock conversion from Class B to Class A (in shares) | 19 | -16 | |||||||
Accretion of discount on preferred stock | 148 | -148 | |||||||
Treasury shares issued for compensation | -192 | 214 | 22 | ||||||
Stock option expense | 1 | 1 | |||||||
Balance at Mar. 31, 2014 | 30,098 | 127,108 | -119,081 | -3,907 | -6,122 | 335 | 22,977 | 197 | 51,605 |
Balance (in shares) at Mar. 31, 2014 | 11,489 | 1,971 | |||||||
Balance at Dec. 31, 2014 | 18,856 | 110,697 | -115,864 | -2,492 | -5,571 | 387 | 56,400 | 193 | 62,606 |
Balance (in shares) at Dec. 31, 2014 | 28,200 | 1,932 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 1,591 | 170 | 1,761 | ||||||
Other comprehensive income, net of reclassifications and taxes | 834 | 834 | |||||||
Distributions to non controlling interests | -172 | -172 | |||||||
Common stock issued (in shares) | 5,000,000 | ||||||||
Treasury shares issued for compensation | -184 | 210 | 26 | ||||||
Stock option expense | 16 | 16 | |||||||
Balance at Mar. 31, 2015 | $18,856 | $110,529 | ($114,273) | ($1,658) | ($5,361) | $385 | $56,400 | $193 | $65,071 |
Balance (in shares) at Mar. 31, 2015 | 28,200 | 1,932 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations [Abstract] | ||
Net income | $1,591 | $1,498 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 145 | 96 |
Stock compensation expense | 16 | 1 |
Credit for loan and lease losses | -580 | -639 |
Impairment charge for OREO | 130 | 175 |
Net amortization of AFS investment securities | 410 | 555 |
Net accretion on loans | -110 | -104 |
Gains on sales of loans and leases | -137 | |
Net gains on sales of OREO | -280 | -129 |
Net gains on sales of investment securities | -187 | |
Income from bank owned life insurance | -126 | -129 |
Changes in assets and liabilities: | ||
Decrease in accrued interest receivable | 397 | 379 |
Decrease in other assets | -277 | 331 |
Decrease in accrued interest payable | 544 | 470 |
Decrease in other liabilities | -104 | -668 |
Net cash provided by operating activities | 1,569 | 1,699 |
Cash flows from investing activities: | ||
Proceeds from maturities, calls and paydowns of AFS investment securities | 8,226 | 10,466 |
Proceeds from sales of AFS investment securities | 18,698 | |
Purchase of AFS investment securities | -2,884 | -11,341 |
Redemption of Federal Home Loan Bank stock | 200 | |
Proceeds from sales of loans and leases | 1,798 | |
Net increase in loans | -4,762 | 5,063 |
Additions to OREO | -173 | |
Purchase of premises and equipment | -69 | -215 |
Proceeds from sales of OREO | 648 | 875 |
Net cash provided by investing activities | 19,684 | 6,846 |
Cash flows from financing activities: | ||
Increase in demand and NOW accounts | 857 | 5,783 |
Increase (decrease) in money market and savings accounts | -7,455 | 6,865 |
Decrease in certificates of deposit | -3,541 | -8,980 |
Repayments of short-term borrowings | -5,000 | |
Repayments of long-term borrowings | -114 | -114 |
Distributions to noncontrolling interest | -172 | -53 |
Net cash used in financing activities | -10,425 | -1,499 |
Net increase (decrease) in cash and cash equivalents | 10,828 | 7,046 |
Cash and cash equivalents at the beginning of the period | 30,790 | 16,844 |
Cash and cash equivalents at the end of the period | 41,618 | 23,890 |
Supplemental Disclosure | ||
Interest paid | 1,027 | 1,155 |
Transfers to OREO | $1,087 | $672 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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”, the “Company”, “We” or “Our”) 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 Royal Tax Lien Services, LLC (“RTL”). Royal Bank also has an 80% and 60% ownership interest in Crusader Servicing Corporation (“CSC”) and Royal Bank America Leasing, LP, respectively. 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 in consolidation. | |
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 our 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, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year. | |
Reclassifications | |
Certain items in the 2014 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net income for the periods presented herein as a result of the reclassification. | |
Accounting Policies Recently Adopted and Pending Accounting Pronouncements | |
In January 2014, FASB issued ASU No. 2014-04, Receivables (Topic 310): Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (“ASU 2014-04”). ASC Topic 310 includes guidance that states that a creditor should reclassify a collateralized mortgage loan such that the loan should be derecognized and the collateral asset recognized when it determines that there has been in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. However, the terms in substance a repossession or foreclosure and physical possession are not defined in the accounting literature and there is diversity about when a creditor should derecognize the loan receivable and recognize the real estate property. That diversity has been highlighted by recent extended foreclosure timelines and processes related to residential real estate properties. | |
The objectives in ASU 2014-04 are intended to reduce diversity in practice by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. Holding foreclosed real estate property presents different operational and economic risk to creditors compared with holding an impaired loan. Therefore, consistency in the timing of loan derecognition and presentation of foreclosed real estate properties is of qualitative significance to users of the creditor’s financial statements. Additionally, the disclosure of the amount of foreclosed residential real estate properties and of the recorded investment in consumer mortgage loans secured by residential real estate properties that are in the process of foreclosure is expected to provide decision-useful information to many users of the creditor’s financial statements. The amendments in ASU 2014-04 are effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in ASU 2014-04 using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The adoption of ASU 2014-04 did not have a significant impact on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in ASU 2014-12 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). The amendments in ASU 2015-03 require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. ASU 2015-03 is consistent with FASB Concepts Statement No.6, Elements of Financial Statements, which states that debt issuance costs are similar to a debt discount and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this ASU. For public business entities, the amendments in ASU 2015-03 are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Earlier adoption is permitted for financial statements that have not been previously issued. The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s financial condition and results of operations. | |
Regulatory_Matters_and_Signifi
Regulatory Matters and Significant Risks or Uncertainties | 3 Months Ended |
Mar. 31, 2015 | |
Regulatory Matters and Significant Risks or Uncertainties [Abstract] | |
Regulatory Matters and Significant Risks or Uncertainties | Note 2.Regulatory Matters and Significant Risks or Uncertainties |
Federal Reserve Agreement | |
In March 2010, we 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 the Federal Reserve Agreement, and it was replaced with an informal non-public agreement, a memorandum of understanding (“MOU”), with the Federal Reserve Bank, effective July 17, 2013. Included in this MOU are certain continued reporting requirements and a requirement that we receive the prior approval of the Federal Reserve Bank and the Director of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System prior to declaring or paying any dividends on our capital stock, making interest payments related to our 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. | |
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 suspended the regular quarterly cash dividends on the 30,407 shares of Series A Preferred Stock. We made the decision to suspend the preferred cash dividends in order to support the liquidity position of Royal Bank. The dividend in arrears on the outstanding 18,856 shares of Series A preferred stock is approximately $7.1 million and includes additional dividends on arrearages. In the event we declared the preferred dividend in arrears our equity and capital ratios would be negatively affected; however, they would remain above the required minimum ratios. | |
Under the MOU, we may not declare or pay any dividends on our capital stock or make interest payments related to our outstanding trust preferred securities or subordinate securities without the prior written approval of the Federal 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 first quarter of 2015, we received approval from the Federal Reserve Bank and paid the first quarter interest payment on the trust preferred securities in March 2015. | |
Investment_Securities
Investment Securities | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Investment Securities [Abstract] | |||||||||||||||||||||||||||
Investment Securities | Note 3.Investment Securities | ||||||||||||||||||||||||||
The carrying value and fair value of investment securities available-for-sale (“AFS”) at March 31, 2015 and December 31, 2014 are as follows: | |||||||||||||||||||||||||||
As of March 31, 2015 | Included in OCI* | ||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||
Amortized | unrealized | unrealized | |||||||||||||||||||||||||
(In thousands) | cost | gains | losses | Fair value | |||||||||||||||||||||||
U.S. government agencies | $ | 26,124 | $ | — | $ | -405 | $ | 25,719 | |||||||||||||||||||
Mortgage-backed securities-residential | 19,835 | 409 | -37 | 20,207 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 150,014 | 3,135 | -544 | 152,605 | |||||||||||||||||||||||
Non-agency | 3,484 | 44 | — | 3,528 | |||||||||||||||||||||||
Corporate bonds | 11,595 | 199 | -16 | 11,778 | |||||||||||||||||||||||
Municipal bonds | 10,101 | 148 | -16 | 10,233 | |||||||||||||||||||||||
Other securities | 2,654 | 1,031 | -19 | 3,666 | |||||||||||||||||||||||
Common stocks | 26 | — | — | 26 | |||||||||||||||||||||||
Total available for sale | $ | 223,833 | $ | 4,966 | $ | -1,037 | $ | 227,762 | |||||||||||||||||||
As of December 31, 2014 | Included in OCI* | ||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||
Amortized | unrealized | unrealized | |||||||||||||||||||||||||
(In thousands) | cost | gains | losses | Fair value | |||||||||||||||||||||||
U.S. government agencies | $ | 26,123 | $ | — | $ | -834 | $ | 25,289 | |||||||||||||||||||
Mortgage-backed securities-residential | 22,073 | 375 | -61 | 22,387 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 167,711 | 2,350 | -1,084 | 168,977 | |||||||||||||||||||||||
Non-agency | 3,738 | 7 | -14 | 3,731 | |||||||||||||||||||||||
Corporate bonds | 15,617 | 144 | -34 | 15,727 | |||||||||||||||||||||||
Municipal bonds | 10,117 | 91 | -35 | 10,173 | |||||||||||||||||||||||
Other securities | 2,684 | 1,350 | — | 4,034 | |||||||||||||||||||||||
Common stocks | 33 | 17 | — | 50 | |||||||||||||||||||||||
Total available for sale | $ | 248,096 | $ | 4,334 | $ | -2,062 | $ | 250,368 | |||||||||||||||||||
*Other comprehensive income | |||||||||||||||||||||||||||
The amortized cost and fair value of investment securities at March 31, 2015, 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 March 31, 2015 | |||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||
(In thousands) | cost | Fair value | |||||||||||||||||||||||||
Within 1 year | $ | 1,000 | $ | 1,012 | |||||||||||||||||||||||
After 1 but within 5 years | 12,399 | 12,400 | |||||||||||||||||||||||||
After 5 but within 10 years | 25,309 | 25,325 | |||||||||||||||||||||||||
After 10 years | 9,112 | 8,993 | |||||||||||||||||||||||||
Mortgage-backed securities-residential | 19,835 | 20,207 | |||||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 150,014 | 152,605 | |||||||||||||||||||||||||
Non-agency | 3,484 | 3,528 | |||||||||||||||||||||||||
Total available for sale debt securities | 221,153 | 224,070 | |||||||||||||||||||||||||
No contractual maturity | 2,680 | 3,692 | |||||||||||||||||||||||||
Total available for sale securities | $ | 223,833 | $ | 227,762 | |||||||||||||||||||||||
Proceeds from the sales of AFS investments during the three months ended March 31, 2015 and 2014 were $18.7 million and $0 million, respectively. The following table summarizes gross realized gains and losses on the sale of securities recognized in earnings in the periods indicated: | |||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||||||||
Gross realized gains | $ | 187 | $ | — | |||||||||||||||||||||||
Gross realized losses | — | — | |||||||||||||||||||||||||
Net realized gains (losses) | $ | 187 | $ | — | |||||||||||||||||||||||
The tables below indicate the length of time individual AFS securities have been in a continuous unrealized loss position at March 31, 2015 and December 31, 2014: | |||||||||||||||||||||||||||
31-Mar-15 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
Gross | Number | Gross | Number | Gross | Number | ||||||||||||||||||||||
unrealized | of | unrealized | of | unrealized | of | ||||||||||||||||||||||
(In thousands) | Fair value | losses | positions | Fair value | losses | positions | Fair value | losses | positions | ||||||||||||||||||
U.S. government agencies | $ | — | $ | — | — | $ | 25,719 | $ | -405 | 8 | $ | 25,719 | $ | -405 | 8 | ||||||||||||
Mortgage-backed securities-residential | — | — | — | 2,859 | -37 | 1 | 2,859 | -37 | 1 | ||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 11,216 | -36 | 4 | 28,775 | -508 | 9 | 39,991 | -544 | 13 | ||||||||||||||||||
Corporate bonds | 1,995 | -5 | 2 | 989 | -11 | 1 | 2,984 | -16 | 3 | ||||||||||||||||||
Municipal bonds | 2,073 | -15 | 2 | 1,005 | -1 | 1 | 3,078 | -16 | 3 | ||||||||||||||||||
Other securities | 240 | -19 | 1 | — | — | — | 240 | -19 | 1 | ||||||||||||||||||
Total available for sale | $ | 15,524 | $ | -75 | 9 | $ | 59,347 | $ | -962 | 20 | $ | 74,871 | $ | -1,037 | 29 | ||||||||||||
31-Dec-14 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
Gross | Number | Gross | Number | Gross | Number | ||||||||||||||||||||||
unrealized | of | unrealized | of | unrealized | of | ||||||||||||||||||||||
(In thousands) | Fair value | losses | positions | Fair value | losses | positions | Fair value | losses | positions | ||||||||||||||||||
U.S. government agencies | $ | — | $ | — | — | $ | 25,289 | $ | -834 | 8 | $ | 25,289 | $ | -834 | 8 | ||||||||||||
Mortgage-backed securities-residential | — | — | — | 8,913 | -61 | 3 | 8,913 | -61 | 3 | ||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 36,757 | -204 | 12 | 38,798 | -880 | 12 | 75,555 | -1,084 | 24 | ||||||||||||||||||
Non-agency | 1,432 | -14 | 1 | — | — | — | 1,432 | -14 | 1 | ||||||||||||||||||
Corporate bonds | 8,054 | -25 | 5 | 991 | -9 | 1 | 9,045 | -34 | 6 | ||||||||||||||||||
Municipal bonds | 1,639 | -7 | 2 | 3,079 | -28 | 4 | 4,718 | -35 | 6 | ||||||||||||||||||
Total available for sale | $ | 47,882 | $ | -250 | 20 | $ | 77,070 | $ | -1,812 | 28 | $ | 124,952 | $ | -2,062 | 48 | ||||||||||||
We evaluate declines in the fair value of securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis. We assesses whether OTTI is present when the fair value of a security is less than its amortized cost. 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. We did not record OTTI charges to earnings during the first quarter of 2015 and 2014. There was no credit-related impairment losses on debt securities held at March 31, 2015 or March 31, 2014 for which a portion of OTTI was recognized in other comprehensive income. | |||||||||||||||||||||||||||
For all debt security types discussed below the fair value is based on prices provided by brokers and safekeeping custodians. | |||||||||||||||||||||||||||
U.S. government-sponsored agencies (“U.S. Agency”): As of March 31, 2015, we had 8 U.S. Agency securities with a fair value of $25.7 million and gross unrealized losses of $405,000. All 8 bonds had been in an unrealized loss position for twelve months or longer at March 31, 2015. Management believes that the unrealized losses on these debt securities are a function of changes in investment spreads. Management expects to recover the entire amortized cost basis of these securities. We do not intend to sell these securities before recovery of their cost basis and have not determined that it is not more likely than not that we will 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 March 31, 2015. | |||||||||||||||||||||||||||
Mortgage-backed securities issued by U.S. government agencies and U.S. government sponsored enterprises: As of March 31, 2015, we had one mortgage-backed security with a fair value of $2.9 million and a gross unrealized loss of $37,000. This mortgage-backed security had been in an unrealized loss position of twelve months or longer. 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 this security is guaranteed by a U.S. government-sponsored enterprise. Based on its assessment of these factors, management believes that the unrealized loss on this debt security is a function of changes in investment spreads and interest rate movements and not as a result of changes in credit quality. Management expects to recover the entire amortized cost basis of this security. We do not intend to sell this security before recovery of its cost basis and have not determined that it is not more likely than not that we will be required to sell this security before recovery of its cost basis. Therefore, management has determined that this security is not other-than-temporarily impaired at March 31, 2015. | |||||||||||||||||||||||||||
U.S. government issued or sponsored collateralized mortgage obligations (“Agency CMOs”): As of March 31, 2015, we had 13 Agency CMOs with a fair value of $40.0 million and gross unrealized losses of $544,000. Nine of the Agency CMOs have been in an unrealized loss position for twelve months or longer and the remaining 4 Agency CMOs have been in an unrealized loss position for less than twelve months. 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 as a result of changes in credit quality. Management expects to recover the entire amortized cost basis of these securities. We do not intend to sell these securities before recovery of their cost basis and have not determined that it is not more likely than not that we will 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 March 31, 2015. | |||||||||||||||||||||||||||
Corporate bonds: As of March 31, 2015, we had three corporate bonds with a fair value of $3.0 million and gross unrealized losses of $16,000. One of the corporate bonds had been in an unrealized loss position for twelve months or longer and two bonds had been in an unrealized loss position for less than twelve months. These bonds are investment grade. Our unrealized losses in investments in these corporate bonds represent interest rate risk and not credit risk of the underlying issuers. Management also considered (1) the length of time and the extent to which the fair value is less than the amortized cost, (2) our 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 estimates, (6) industry trends specific to the security, and (7) timing of debt maturity and status of debt payments. Based on the analysis, there was no credit-related loss on the bonds. Because we do not intend to sell the corporate bonds and it is not more likely than not that we will be required to sell the bonds before recovery of their amortized cost basis, which may be maturity, we do not consider any of the three bonds to be other-than-temporarily impaired at March 31, 2015. | |||||||||||||||||||||||||||
Municipal bonds: As of March 31, 2015, we had three municipal bonds with a fair value $3.1 million and gross unrealized losses of $16,000. Two of the municipal bonds had been in an unrealized loss position for less than twelve months and one municipal bond had been in an unrealized loss position for twelve months or longer. Because we do not intend to sell the bonds and it is not more likely than not that we will be required to sell the bonds before recovery of their amortized cost basis, which may be maturity, we do not consider the bonds to be other-than-temporarily impaired at March 31, 2015. | |||||||||||||||||||||||||||
Other securities: As of March 31, 2015, we had six investments in private equity funds which were predominantly invested in real estate. In determining whether or not OTTI exists, we review the funds’ financials, asset values, and near-term projections. At March 31, 2015, one of the private equity fund investments had a fair value of $240,000 and an unrealized loss of $19,000. OTTI charges were recorded in a prior period on this fund. Management concluded that there was no additional impairment on this investment as of March 31, 2015. | |||||||||||||||||||||||||||
We 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 | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Loans and Leases [Abstract] | ||||||||||||||||||||||||
Loans and Leases | Note 4.Loans and Leases | |||||||||||||||||||||||
Major classifications of LHFI are as follows: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||||||||
Commercial real estate | $ | 194,277 | $ | 175,038 | ||||||||||||||||||||
Construction and land development | 18,610 | 45,662 | ||||||||||||||||||||||
Commercial and industrial | 83,240 | 76,489 | ||||||||||||||||||||||
Multi-family | 17,594 | 13,823 | ||||||||||||||||||||||
Residential real estate | 43,416 | 42,992 | ||||||||||||||||||||||
Leases | 53,473 | 51,583 | ||||||||||||||||||||||
Tax certificates | 5,608 | 7,191 | ||||||||||||||||||||||
Consumer | 2,468 | 2,354 | ||||||||||||||||||||||
Total LHFI, net of unearned income | $ | 418,686 | $ | 415,132 | ||||||||||||||||||||
We use a nine point grading risk classification system commonly used in the financial services industry as the credit quality indicator. The first four classifications are rated Pass. The riskier classifications include Pass-Watch, 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 in the calculation of the allowance for loan and lease losses. | ||||||||||||||||||||||||
· | 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 our 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 we 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 assigned 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 classification at March 31, 2015 and December 31, 2014, excluding LHFS. | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 153,647 | $ | 34,902 | $ | 2,170 | $ | 320 | $ | 3,238 | $ | 194,277 | ||||||||||||
Construction and land development | 3,044 | 14,942 | — | — | 624 | 18,610 | ||||||||||||||||||
Commercial and industrial | 57,043 | 15,105 | 5,314 | 3,333 | 2,445 | 83,240 | ||||||||||||||||||
Multi-family | 16,781 | 300 | 513 | — | — | 17,594 | ||||||||||||||||||
Residential real estate | 42,427 | — | — | — | 989 | 43,416 | ||||||||||||||||||
Leases | 52,933 | 294 | 24 | — | 222 | 53,473 | ||||||||||||||||||
Tax certificates | 4,774 | — | — | — | 834 | 5,608 | ||||||||||||||||||
Consumer | 2,387 | 81 | — | — | — | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 333,036 | $ | 65,624 | $ | 8,021 | $ | 3,653 | $ | 8,352 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 140,045 | $ | 27,229 | $ | 2,512 | $ | 1,568 | $ | 3,684 | $ | 175,038 | ||||||||||||
Construction and land development | 12,861 | 32,165 | — | — | 636 | 45,662 | ||||||||||||||||||
Commercial and industrial | 60,500 | 8,527 | 1,608 | 3,337 | 2,517 | 76,489 | ||||||||||||||||||
Multi-family | 12,995 | 310 | 518 | — | — | 13,823 | ||||||||||||||||||
Residential real estate | 42,033 | — | — | — | 959 | 42,992 | ||||||||||||||||||
Leases | 51,113 | 152 | 1 | — | 317 | 51,583 | ||||||||||||||||||
Tax certificates | 5,491 | — | — | — | 1,700 | 7,191 | ||||||||||||||||||
Consumer | 2,194 | 160 | — | — | — | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 327,232 | $ | 68,543 | $ | 4,639 | $ | 4,905 | $ | 9,813 | $ | 415,132 | ||||||||||||
The following tables present an aging analysis of past due payments for each loan portfolio classification at March 31, 2015 and December 31, 2014, excluding LHFS. | ||||||||||||||||||||||||
As of March 31, 2015 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 2,773 | $ | 503 | $ | — | $ | 3,238 | $ | 187,763 | $ | 194,277 | ||||||||||||
Construction and land development | — | — | — | 624 | 17,986 | 18,610 | ||||||||||||||||||
Commercial and industrial | 125 | 428 | — | 2,445 | 80,242 | 83,240 | ||||||||||||||||||
Multi-family | 199 | — | — | — | 17,395 | 17,594 | ||||||||||||||||||
Residential real estate | 183 | — | — | 989 | 42,244 | 43,416 | ||||||||||||||||||
Leases | 24 | 222 | — | 222 | 53,005 | 53,473 | ||||||||||||||||||
Tax certificates | — | — | — | 834 | 4,774 | 5,608 | ||||||||||||||||||
Consumer | — | — | — | — | 2,468 | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 3,304 | $ | 1,153 | $ | — | $ | 8,352 | $ | 405,877 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 311 | $ | 533 | $ | — | $ | 3,684 | $ | 170,510 | $ | 175,038 | ||||||||||||
Construction and land development | — | — | — | 636 | 45,026 | 45,662 | ||||||||||||||||||
Commercial and industrial | 92 | 449 | — | 2,517 | 73,431 | 76,489 | ||||||||||||||||||
Multi-family | — | — | — | — | 13,823 | 13,823 | ||||||||||||||||||
Residential real estate | 165 | 162 | — | 959 | 41,706 | 42,992 | ||||||||||||||||||
Leases | 152 | 1 | — | 317 | 51,113 | 51,583 | ||||||||||||||||||
Tax certificates | — | — | — | 1,700 | 5,491 | 7,191 | ||||||||||||||||||
Consumer | — | — | — | — | 2,354 | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 720 | $ | 1,145 | $ | — | $ | 9,813 | $ | 403,454 | $ | 415,132 | ||||||||||||
If interest had accrued on non-accrual loans, such income would have been approximately $204,000 and $275,000 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Total cash collected on impaired loans during the three months ended March 31, 2015 and 2014 was $1.3 million and $2.0 million respectively, of which $1.1 million and $1.7 million was credited to the principal balance outstanding on such loans, respectively. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
The following table details our TDRs that are on an accrual status and non-accrual status at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 3 | $ | 2,863 | $ | — | $ | 2,863 | |||||||||||||||||
Construction and land development | 2 | — | 624 | 624 | ||||||||||||||||||||
Commercial and industrial | 5 | 3,637 | 1,398 | 5,035 | ||||||||||||||||||||
Residential real estate | 1 | — | 100 | 100 | ||||||||||||||||||||
Total | 11 | $ | 6,500 | $ | 2,122 | $ | 8,622 | |||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 2 | $ | 2,856 | $ | — | $ | 2,856 | |||||||||||||||||
Construction and land development | 3 | 47 | 636 | 683 | ||||||||||||||||||||
Commercial and industrial | 6 | 3,670 | 1,448 | 5,118 | ||||||||||||||||||||
Residential real estate | 1 | — | 102 | 102 | ||||||||||||||||||||
Total | 12 | $ | 6,573 | $ | 2,186 | $ | 8,759 | |||||||||||||||||
At March 31, 2015, all of the TDRs were in compliance with their restructured terms. We did not classify any loan modifications as TDRs during the first quarter of 2015. The following table presents restructured loans that occurred during the three months ended March 31, 2014. | ||||||||||||||||||||||||
Modifications by type for the three months ended March 31, 2014 | ||||||||||||||||||||||||
Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||
Number of | Combination | Recorded | Recorded | |||||||||||||||||||||
(Dollars in thousands) | loans | Rate | Term | Payment | of types | Total | Investment | Investment | ||||||||||||||||
Commercial and industrial | 2 | $ | — | $ | 45 | $ | — | $ | 28 | $ | 73 | $ | 73 | $ | 73 | |||||||||
Total | 2 | $ | — | $ | 45 | $ | — | $ | 28 | $ | 73 | $ | 73 | $ | 73 | |||||||||
Allowance_for_Loan_and_Lease_L
Allowance for Loan and Lease Losses | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
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 allowance and the loan portfolio disaggregated by loan portfolio classification as of March 31, 2015, December 31, 2014 and March 31, 2014. | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 4,452 | $ | 2,292 | $ | 1,780 | $ | 285 | $ | 616 | $ | 1,429 | $ | 667 | $ | 38 | $ | 149 | $ | 11,708 | ||||||||||||
Charge-offs | — | — | -340 | — | — | -103 | -425 | — | — | -868 | ||||||||||||||||||||||
Recoveries | 350 | 248 | 1 | — | 8 | 11 | 19 | — | — | 637 | ||||||||||||||||||||||
(Credit) provision | 83 | -1,464 | 594 | 60 | 41 | 41 | 81 | -4 | -12 | -580 | ||||||||||||||||||||||
Ending balance | $ | 4,885 | $ | 1,076 | $ | 2,035 | $ | 345 | $ | 665 | $ | 1,378 | $ | 342 | $ | 34 | $ | 137 | $ | 10,897 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 231 | $ | 80 | $ | 1 | $ | — | $ | 30 | $ | 36 | $ | 8 | $ | — | $ | — | $ | 386 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,654 | $ | 996 | $ | 2,034 | $ | 345 | $ | 635 | $ | 1,342 | $ | 334 | $ | 34 | $ | 137 | $ | 10,511 | ||||||||||||
Loans Held for Investment and Evaluated for Impairment | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 194,277 | $ | 18,610 | $ | 83,240 | $ | 17,594 | $ | 43,416 | $ | 53,473 | $ | 5,608 | $ | 2,468 | $ | — | $ | 418,686 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,327 | $ | 624 | $ | 5,650 | $ | — | $ | 989 | $ | 77 | $ | 834 | $ | — | $ | — | $ | 14,501 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,950 | $ | 17,986 | $ | 77,590 | $ | 17,594 | $ | 42,427 | $ | 53,396 | $ | 4,774 | $ | 2,468 | $ | — | $ | 404,185 | ||||||||||||
Allowance for Loan and Lease Losses and Loans Held for Investment | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 5,498 | $ | 2,316 | $ | 3,006 | $ | 402 | $ | 473 | $ | 1,223 | $ | 555 | $ | 15 | $ | 183 | $ | 13,671 | ||||||||||||
Charge-offs | -354 | -172 | -452 | — | — | -793 | -350 | — | — | -2,121 | ||||||||||||||||||||||
Recoveries | — | 940 | 27 | — | 15 | 42 | 1 | — | — | 1,025 | ||||||||||||||||||||||
(Credit) provision | -692 | -792 | -801 | -117 | 128 | 957 | 461 | 23 | -34 | -867 | ||||||||||||||||||||||
Ending balance | $ | 4,452 | $ | 2,292 | $ | 1,780 | $ | 285 | $ | 616 | $ | 1,429 | $ | 667 | $ | 38 | $ | 149 | $ | 11,708 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 200 | $ | — | $ | 301 | $ | — | $ | 28 | $ | 80 | $ | 432 | $ | — | $ | — | $ | 1,041 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,252 | $ | 2,292 | $ | 1,479 | $ | 285 | $ | 588 | $ | 1,349 | $ | 235 | $ | 38 | $ | 149 | $ | 10,667 | ||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 175,038 | $ | 45,662 | $ | 76,489 | $ | 13,823 | $ | 42,992 | $ | 51,583 | $ | 7,191 | $ | 2,354 | $ | — | $ | 415,132 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,795 | $ | 683 | $ | 5,846 | $ | — | $ | 959 | $ | 95 | $ | 1,700 | $ | — | $ | — | $ | 16,078 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 168,243 | $ | 44,979 | $ | 70,643 | $ | 13,823 | $ | 42,033 | $ | 51,488 | $ | 5,491 | $ | 2,354 | $ | — | $ | 399,054 | ||||||||||||
Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 5,498 | $ | 2,316 | $ | 3,006 | $ | 402 | $ | 473 | $ | 1,223 | $ | 555 | $ | 15 | $ | 183 | $ | 13,671 | ||||||||||||
Charge-offs | -350 | — | -452 | — | — | -118 | -265 | — | — | -1,185 | ||||||||||||||||||||||
Recoveries | — | — | 4 | — | 2 | 13 | — | — | — | 19 | ||||||||||||||||||||||
Provision (credit) | -220 | -53 | -696 | -1 | 15 | 239 | 97 | 2 | -22 | -639 | ||||||||||||||||||||||
Ending balance | $ | 4,928 | $ | 2,263 | $ | 1,862 | $ | 401 | $ | 490 | $ | 1,357 | $ | 387 | $ | 17 | $ | 161 | $ | 11,866 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | 22 | $ | 116 | $ | — | $ | — | $ | — | $ | 138 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,928 | $ | 2,263 | $ | 1,862 | $ | 401 | $ | 468 | $ | 1,241 | $ | 387 | $ | 17 | $ | 161 | $ | 11,728 | ||||||||||||
Loans Held for Investment and Evaluated for Impairment | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 150,111 | $ | 45,751 | $ | 68,664 | $ | 11,876 | $ | 26,465 | $ | 43,644 | $ | 11,182 | $ | 965 | $ | — | $ | 358,658 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,800 | $ | 3,446 | $ | 6,630 | $ | — | $ | 746 | $ | 139 | $ | 1,137 | $ | — | $ | — | $ | 16,898 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 145,311 | $ | 42,305 | $ | 62,034 | $ | 11,876 | $ | 25,719 | $ | 43,505 | $ | 10,045 | $ | 965 | $ | — | $ | 341,760 | ||||||||||||
The following tables detail the LHFI that were evaluated for impairment by loan classification at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||||||||||||||
Unpaid | ||||||||||||||||||||||||||||||||
principal | Recorded | Related | ||||||||||||||||||||||||||||||
(In thousands) | balance | investment | allowance | |||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,486 | $ | 5,447 | $ | — | ||||||||||||||||||||||||||
Construction and land development | 289 | 254 | — | |||||||||||||||||||||||||||||
Commercial and industrial | 5,575 | 5,270 | — | |||||||||||||||||||||||||||||
Tax certificates | 988 | 550 | — | |||||||||||||||||||||||||||||
Total: | $ | 12,338 | $ | 11,521 | $ | — | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,130 | $ | 880 | $ | 231 | ||||||||||||||||||||||||||
Construction and land development | 546 | 370 | 80 | |||||||||||||||||||||||||||||
Commercial and industrial | 2,500 | 380 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,041 | 989 | 30 | |||||||||||||||||||||||||||||
Leasing | 77 | 77 | 36 | |||||||||||||||||||||||||||||
Tax certificates | 4,336 | 284 | 8 | |||||||||||||||||||||||||||||
Total: | $ | 9,630 | $ | 2,980 | $ | 386 | ||||||||||||||||||||||||||
At and for the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | ||||||||||||||||||||||||||||||
principal | Recorded | Related | recorded | income | ||||||||||||||||||||||||||||
(In thousands) | balance | investment | allowance | investment | recognized | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,632 | $ | 6,113 | $ | — | $ | 5,089 | $ | 98 | ||||||||||||||||||||||
Construction and land development | 894 | 683 | — | 2,233 | 71 | |||||||||||||||||||||||||||
Commercial and industrial | 5,358 | 5,118 | — | 5,786 | 208 | |||||||||||||||||||||||||||
Tax certificates | 1,120 | 890 | — | 867 | — | |||||||||||||||||||||||||||
Total: | $ | 14,004 | $ | 12,804 | $ | — | $ | 13,975 | $ | 377 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 926 | $ | 682 | $ | 200 | $ | 529 | $ | — | ||||||||||||||||||||||
Construction and land development | — | — | — | 145 | — | |||||||||||||||||||||||||||
Commercial and industrial | 2,500 | 728 | 301 | 688 | — | |||||||||||||||||||||||||||
Residential real estate | 1,068 | 959 | 28 | 864 | — | |||||||||||||||||||||||||||
Leases | 95 | 95 | 80 | 108 | — | |||||||||||||||||||||||||||
Tax certificates | 4,835 | 810 | 432 | 145 | — | |||||||||||||||||||||||||||
Total: | $ | 9,424 | $ | 3,274 | $ | 1,041 | $ | 2,479 | $ | — | ||||||||||||||||||||||
The following tables present the average recorded investment in impaired LHFI and the related interest income recognized for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Average | Interest | |||||||||||||||||||||||||||||||
recorded | income | |||||||||||||||||||||||||||||||
(In thousands) | investment | recognized | ||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,643 | $ | 167 | ||||||||||||||||||||||||||||
Construction and land development | 642 | — | ||||||||||||||||||||||||||||||
Commercial and industrial | 5,779 | 49 | ||||||||||||||||||||||||||||||
Residential real estate | 962 | — | ||||||||||||||||||||||||||||||
Leasing | 68 | — | ||||||||||||||||||||||||||||||
Tax certificates | 1,104 | — | ||||||||||||||||||||||||||||||
Total: | $ | 15,198 | $ | 216 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Average | Interest | |||||||||||||||||||||||||||||||
recorded | income | |||||||||||||||||||||||||||||||
(In thousands) | investment | recognized | ||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,192 | $ | 31 | ||||||||||||||||||||||||||||
Construction and land development | 3,706 | 14 | ||||||||||||||||||||||||||||||
Commercial and industrial | 7,406 | 56 | ||||||||||||||||||||||||||||||
Residential real estate | 710 | — | ||||||||||||||||||||||||||||||
Leasing | 163 | — | ||||||||||||||||||||||||||||||
Tax certificates | 590 | — | ||||||||||||||||||||||||||||||
Total: | $ | 17,767 | $ | 101 | ||||||||||||||||||||||||||||
Other_Real_Estate_Owned
Other Real Estate Owned | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Other Real Estate Owned [Abstract] | ||||||||||
Other real estate owned | Note 6.Other Real Estate Owned | |||||||||
At March 31, 2015, OREO is comprised of three real estate properties acquired through, or in lieu of foreclosure in settlement of loans and 85 real estate properties acquired through foreclosure related to tax liens. Set forth below are tables which detail the changes in OREO from December 31, 2014 to March 31, 2015 and December 31, 2013 to December 31, 2014. | ||||||||||
For the three months ended March 31, 2015 | ||||||||||
(In thousands) | Loans | Tax Liens | Total | |||||||
Beginning balance | $ | 349 | $ | 9,430 | $ | 9,779 | ||||
Net proceeds from sales | -26 | -622 | -648 | |||||||
Net gains on sales | 5 | 275 | 280 | |||||||
Transfers in | — | 1,087 | 1,087 | |||||||
Cash additions | — | 173 | 173 | |||||||
Impairment charge | — | -130 | -130 | |||||||
Ending balance | $ | 328 | $ | 10,213 | $ | 10,541 | ||||
For the year ended December 31, 2014 | ||||||||||
(In thousands) | Loans | Tax Liens | Total | |||||||
Beginning balance | $ | 1,725 | $ | 7,892 | $ | 9,617 | ||||
Net proceeds from sales | -1,336 | -2,970 | -4,306 | |||||||
Net gain on sales | 59 | 684 | 743 | |||||||
Transfers in | — | 2,919 | 2,919 | |||||||
Cash additions | — | 1,330 | 1,330 | |||||||
Impairment charge | -99 | -425 | -524 | |||||||
Ending balance | $ | 349 | $ | 9,430 | $ | 9,779 | ||||
At March 31, 2015, OREO was comprised of $229,000 in land, $10.2 million in tax liens, and residential real estate related to a condominium construction project in Minneapolis, Minnesota in which the Company is a participant with a fair value of $99,000. The properties acquired through the tax lien portfolio were primarily located in New Jersey. | ||||||||||
Deposits
Deposits | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deposits [Abstract] | |||||||
Deposits | Note 7.Deposits | ||||||
Our deposit composition as of March 31, 2015 and December 31, 2014 is presented below: | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2015 | 2014 | |||||
Demand | $ | 76,808 | $ | 73,665 | |||
NOW | 44,229 | 46,515 | |||||
Money Market | 157,378 | 166,224 | |||||
Savings | 20,112 | 18,721 | |||||
Time deposits (over $100) | 87,811 | 87,209 | |||||
Time deposits (under $100) | 133,948 | 138,091 | |||||
Total deposits | $ | 520,286 | $ | 530,425 | |||
Borrowings_and_Subordinated_De
Borrowings and Subordinated Debentures | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Borrowings and Subordinated Debentures | ||||||||||||
Borrowings and Subordinated Debentures | Note 8.Borrowings and Subordinated Debentures | |||||||||||
1 | Advances from the Federal Home Loan Bank | |||||||||||
As of March 31, 2015, Royal Bank had $187.9 million of available borrowing capacity at the FHLB, which is based on qualifying collateral. Total advances from the FHLB were $55.0 million at March 31, 2015 and December 31, 2014. The advances and the line of credit are collateralized by FHLB stock, government agency securities and mortgage-backed securities. As of March 31, 2015, investment securities with a market value of $38.6 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 | |||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | ||||||||
Advances maturing in | ||||||||||||
2015 | $ | 10,000 | 0.71 | % | $ | 10,000 | 0.71 | % | ||||
2016 | 10,000 | 1.11 | % | 10,000 | 1.11 | % | ||||||
2017 | 25,000 | 1.46 | % | 25,000 | 1.46 | % | ||||||
2018 | 10,000 | 2.01 | % | 10,000 | 2.01 | % | ||||||
Total FHLB borrowings | $ | 55,000 | $ | 55,000 | ||||||||
2 | Other borrowings | |||||||||||
We have a note payable with PNC Bank (“PNC”) at March 31, 2015 in the amount of $2.3 million compared to $2.4 million at December 31, 2014. The note’s maturity date is August 25, 2016. The interest rate is a variable rate equal to one month LIBOR + 15 basis points and adjusts monthly. The interest rate at March 31, 2015 was 0.32%. | ||||||||||||
At March 31, 2015 and December 31, 2014, we had additional borrowings of $35.0 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 agency securities and mortgage-backed securities. | ||||||||||||
Royal Bank has an additional $10.0 million line of credit with a local financial institution, of which $0 is outstanding at March 31, 2015 and December 31, 2014, respectively. | ||||||||||||
3 | Subordinated debentures | |||||||||||
We have 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”). We 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 debt securities to Trust II. Both debt securities bear an interest rate of 2.42% at March 31, 2015, 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 issued 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. We have fully and unconditionally guaranteed all of the obligations of the Trusts, including any distributions and payments on liquidation or redemption of the capital securities. | ||||||||||||
Under the 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 Federal Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. We received approval and paid the required interest payment in March of 2015. | ||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activity | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITY | Note 9.Derivative Instruments and Hedging Activity | ||||||||||
In the fourth quarter of 2014, we entered into a forward-starting interest rate swap agreement to hedge the risk of variability in cash flows attributable to changes in the 3 month LIBOR rate. This particular hedging objective was to reduce the interest rate risk associated with our forecasted issuances of 3 month fixed rate debt arising from a rollover strategy. This derivative was used as part of the asset/liability management process, is linked to a specific liability, and has a high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. The derivative was designated as a cash flow hedge with the change in fair value recorded as an adjustment through other comprehensive income (loss) until the underlying forecasted transactions occur, at which time the deferred gains and losses are recognized in earnings. | |||||||||||
The effects of the derivative instrument on the Consolidated Financial Statements for March 31, 2015 and December 31, 2014 were as follows: | |||||||||||
As of March 31, 2015 | |||||||||||
Notional | |||||||||||
Contract | Balance Sheet | Expiration | |||||||||
(In thousands) | Amount | Fair Value | Location | Date | |||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | 15,000 | $ | -467 | Other liabilities | 24-Jun-21 | |||||
Total: | $ | 15,000 | $ | -467 | |||||||
As of December 31, 2014 | |||||||||||
Notional | |||||||||||
Contract | Balance Sheet | Expiration | |||||||||
(In thousands) | Amount | Fair Value | Location | Date | |||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | 15,000 | $ | -187 | Other liabilities | 24-Jun-21 | |||||
Total: | $ | 15,000 | $ | -187 | |||||||
For the three months ended March 31, 2015 | |||||||||||
Amount of Loss | Location of Loss | Amount of Loss | |||||||||
Recognized | Recognized | Recognized | |||||||||
in OCI | in Income | in Income | |||||||||
on Derivatives | on Derivatives | on Derivatives | |||||||||
(In thousands) | (Effective Portion) | (Ineffective Portion) | (Ineffective Portion) | ||||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | -308 | Not Applicable | $ | — | ||||||
Total: | $ | -308 | $ | — | |||||||
For the year ended December 31, 2014 | |||||||||||
Amount of Loss | Location of Loss | Amount of Loss | |||||||||
Recognized | Recognized | Recognized | |||||||||
in OCI | in Income | in Income | |||||||||
on Derivatives | on Derivatives | on Derivatives | |||||||||
(In thousands) | (Effective Portion) | (Ineffective Portion) | (Ineffective Portion) | ||||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | -187 | Not Applicable | $ | — | ||||||
Total: | $ | -187 | $ | — | |||||||
Commitments_Contingencies_and_
Commitments, Contingencies, and Concentrations | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Commitments, Contingencies, and Concentrations [Abstract] | |||||||
Commitments, Contingencies, and Concentrations | Note 10.Commitments, Contingencies, and Concentrations | ||||||
We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they become payable. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement we have in particular classes of financial instruments. | |||||||
Our 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. We use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments. | |||||||
The contract amounts are as follows: | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2015 | 2014 | |||||
Financial instruments whose contract amounts represent credit risk: | |||||||
Open-end lines of credit | $ | 44,411 | $ | 48,929 | |||
Commitments to extend credit | 11,330 | 6,430 | |||||
Standby letters of credit and financial guarantees written | 144 | 371 | |||||
Legal Proceedings | |||||||
From time to time, we are 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 our financial condition or results of operations. | |||||||
Shareholders_Equity
Shareholdersb Equity | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Shareholders' Equity [Abstract] | ||||
Shareholders' Equity | Note 11.Shareholders’ Equity | |||
1 | Preferred Stock | |||
On February 20, 2009, as part of the Capital Purchase Program (“CPP”) established by the Treasury, we 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 our 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 originally paid cumulative dividends at a rate of 5% per annum. In February 2014, the cumulative dividend rate on the Series A Preferred Stock increased to 9% per annum. 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. As a result of the shareholders’ right offering described below, the number of warrants to purchase the Company’s Class A common stock adjusted to 1,368,040 and the warrant exercise price decreased to $3.33 per share of the common stock. | ||||
We received approval from the Federal Reserve Bank to bid up to $14.0 million, which was raised in a private placement, to purchase shares of the Series A Preferred Stock in an auction of such shares to be conducted by the Treasury. The auction closed on June 19, 2014. The Series A Preferred Stock was priced in the auction at $1,207.11 per share for all 30,407 shares of Series A Preferred Stock outstanding. We were allocated 11,551 shares of Series A Preferred Stock for repurchase at the clearing price of $1,207.11. Closing for the sale of the Series A Preferred Stock by the Treasury, including the repurchase of 11,551 shares of Series A Preferred Stock by the Company, occurred on July 2, 2014. As part of this redemption, we eliminated nearly $3.5 million in preferred dividend in arrears. | ||||
2 | Common Stock | |||
Our Class A common stock trades on the NASDAQ Global Market under the symbol RBPAA. There is no market for our 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. Shareholders are entitled to one vote for each Class A share 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. | ||||
To fund the purchase of the Series A Preferred Stock, as described above, we sold 11,666,667 shares of our Class A common stock in a private placement transaction at a price of $1.20 per share. Additionally, during the third quarter of 2014, we conducted a shareholder rights offering to existing shareholders to limit their ownership dilution from the sale of Class A common stock to the other investors in the private placement. We issued approximately 5.0 million shares and received gross proceeds of approximately $6.0 million. | ||||
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 to the Company by Royal Bank. Under the Code, no dividends may be paid by a bank except from “accumulated net earnings” (generally retained earnings). 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. | ||||
On August 13, 2009, the Company’s Board suspended the regular quarterly cash dividends on the Series A Preferred Stock. The Company’s Board took this action in consultation with the Federal Reserve Bank of Philadelphia as required by regulatory policy guidance. In February 2014, the preferred cumulative dividend rate prospectively increased to 9% per annum. As a result of the Company’s repurchase of 11,551 shares of Series A Preferred Stock, approximately $3.5 million of the Series A Preferred stock dividend in arrears was eliminated. As of March 31, 2015, the Series A Preferred stock dividend in arrears, which includes additional dividends on arrearages, was approximately $7.1 million and has not been recognized in the consolidated financial statements. In the event we declared the preferred dividend our capital ratios would be negatively affected; however, they would remain above the required minimum ratios. Under the Federal Reserve Bank MOU as described in “Note 2 — Regulatory Matters and Significant Risks or Uncertainties” to the Consolidated Financial Statements, the Company may not declare or pay any dividends without the prior written approval of the Federal Reserve Bank and the Director of the Division of Banking Supervision and Regulation of the Board of Governors of the Federal Reserve System. | ||||
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||
Regulatory Capital Requirements | Note 12.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 our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our 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. | |||||||||||||||||
In July 2013, the federal bank regulatory agencies adopted final rules to revise the agencies’ capital adequacy guidelines and prompt corrective action rules, which were designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. The July 2013 final rules generally implement higher minimum capital requirements, add a new common equity tier 1 capital requirement, and establish criteria that instruments must meet to be considered common equity tier 1 capital, additional tier 1 capital or tier 2 capital. The new minimum capital to risk-adjusted assets requirements are a common equity tier 1 capital ratio of 4.5% (6.5% to be considered “well capitalized”) and a tier 1 capital ratio of 6.0%, increased from 4.0% (and increased from 6.0% to 8.0% to be considered “well capitalized”); the total capital ratio remains at 8.0% under the new rules (10.0% to be considered “well capitalized”). | |||||||||||||||||
Under the new rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The new minimum capital requirements were effective on January 1, 2015. The capital contribution buffer requirements phase in over a three-year period beginning January 1, 2016. As of March 31, 2015, the Company and Royal Bank satisfied 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 March 31, 2015 and the previous 18 quarters in accordance with U.S. GAAP. 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 resolution of this matter will be decided by additional joint regulatory agency guidance which includes the Federal Reserve Bank, the FDIC, and the OCC. | |||||||||||||||||
The table below sets forth Royal Bank’s capital ratios under RAP based on the FDIC’s interpretation of the Call Report instructions: | |||||||||||||||||
At March 31, 2015 | |||||||||||||||||
To be well capitalized | |||||||||||||||||
For capital | under prompt corrective | ||||||||||||||||
Actual | adequacy purposes | action provision | |||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Total capital (to risk-weighted assets) | $ | 80,591 | 16.22 | % | $ | 39,745 | 8.00 | % | $ | 49,681 | 10.00 | % | |||||
Tier 1 capital (to risk-weighted assets) | $ | 74,323 | 14.96 | % | $ | 29,809 | 6.00 | % | $ | 39,745 | 8.00 | % | |||||
Tier 1 capital (to average assets, leverage) | $ | 74,323 | 10.34 | % | $ | 28,765 | 4.00 | % | $ | 35,957 | 5.00 | % | |||||
Common equity Tier 1 (to risk-weighted assets) | $ | 73,937 | 10.62 | % | $ | 22,356 | 4.50 | % | $ | 32,293 | 6.50 | % | |||||
The tables below reflect the adjustments to the net income as well as the capital ratios for Royal Bank under U.S. GAAP: | |||||||||||||||||
For the three | |||||||||||||||||
months ended | |||||||||||||||||
(In thousands) | 31-Mar-15 | ||||||||||||||||
RAP net loss | $ | -1,192 | |||||||||||||||
Tax lien adjustment, net of noncontrolling interest | 2,790 | ||||||||||||||||
U.S. GAAP net income | $ | 1,598 | |||||||||||||||
At March 31, 2015 | |||||||||||||||||
As reported | As adjusted | ||||||||||||||||
under RAP | for U.S. GAAP | ||||||||||||||||
Total capital (to risk-weighted assets) | 16.22 | % | 16.70 | % | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 14.96 | % | 15.44 | % | |||||||||||||
Tier 1 capital (to average assets, leverage) | 10.34 | % | 10.69 | % | |||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 10.62 | % | 11.12 | % | |||||||||||||
The tables below reflect the Company’s capital ratios: | |||||||||||||||||
At March 31, 2015 | |||||||||||||||||
To be well capitalized | |||||||||||||||||
For capital | under the Federal | ||||||||||||||||
Actual | adequacy purposes | Reserve's regulations | |||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Total capital (to risk-weighted assets) | $ | 97,591 | 19.44 | % | $ | 40,150 | 8.00 | % | $ | 50,188 | 10.00 | % | |||||
Tier 1 capital (to risk-weighted assets) | $ | 88,485 | 17.63 | % | $ | 30,113 | 6.00 | % | $ | 30,113 | 6.00 | % | |||||
Tier 1 capital (to average assets, leverage) | $ | 88,485 | 12.17 | % | $ | 29,075 | 4.00 | % | N/A | N/A | |||||||
Common equity Tier 1 (to risk-weighted assets) | $ | 47,019 | 9.37 | % | $ | 22,585 | 4.50 | % | N/A | N/A | |||||||
The Company has filed the Consolidated Financial Statements for Bank Holding Companies-FR Y-9C (“FR Y-9C”) as of March 31, 2015 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 three | |||||||||||||||||
months ended | |||||||||||||||||
(In thousands) | 31-Mar-15 | ||||||||||||||||
U.S. GAAP net income | $ | 1,591 | |||||||||||||||
Tax lien adjustment, net of noncontrolling interest | -2,790 | ||||||||||||||||
RAP net loss | $ | -1,199 | |||||||||||||||
At March 31, 2015 | |||||||||||||||||
As reported | As adjusted | ||||||||||||||||
under U.S. GAAP | for RAP | ||||||||||||||||
Total capital (to risk-weighted assets) | 19.44 | % | 18.98 | % | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 17.63 | % | 16.98 | % | |||||||||||||
Tier 1 capital (to average assets, leverage) | 12.17 | % | 11.70 | % | |||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 9.37 | % | 8.85 | % | |||||||||||||
Pension_Plan
Pension Plan | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Pension Plan [Abstract] | |||||||
Pension Plan | Note 13.Pension Plan | ||||||
We have a noncontributory nonqualified defined benefit pension plan (“Pension Plan”) covering certain eligible employees. Our 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 years ended March 31, 2015 and 2014 included the following components: | |||||||
For the three months ended | |||||||
March 31, | |||||||
(In thousands) | 2015 | 2014 | |||||
Service cost | $ | 16 | $ | 15 | |||
Interest cost | 134 | 155 | |||||
Amortization of prior service cost | 23 | 22 | |||||
Amortization of actuarial loss | 47 | 32 | |||||
Net periodic benefit cost | $ | 220 | $ | 224 | |||
We have unfunded pension plan obligations of $15.4 million as of March 31, 2015 compared to $15.3 million at December 31, 2014. We plan to fund the pension plan obligations through existing Company owned life insurance policies. | |||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income (Loss) Per Common Share [Abstract] | |||||||||
Income (Loss) Per Common Share | Note 14.Earnings Per Common Share | ||||||||
We follow 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. We have 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 ended March 31, 2015 and 2014, 317,735 and 201,914 options to purchase shares of common stock, respectively, were anti-dilutive in the computation of diluted EPS, as the exercise price exceeded average market price in each of those periods. Additionally warrants to purchase 1,368,040 shares of Class A common stock were also anti-dilutive. | |||||||||
Basic and diluted EPS are calculated as follows: | |||||||||
Three months ended March 31, 2015 | |||||||||
Income | Average shares | Per share | |||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||
Basic EPS | |||||||||
Income available to common shareholders | $ | 1,167 | 30,036 | $ | 0.04 | ||||
Diluted EPS | |||||||||
Income available to common shareholders | $ | 1,167 | 30,042 | $ | 0.04 | ||||
Three months ended March 31, 2014 | |||||||||
Income | Average shares | Per share | |||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||
Basic and Diluted EPS | |||||||||
Income available to common shareholders | $ | 834 | 13,316 | $ | 0.06 | ||||
Comprehensive_Income_Loss
Comprehensive Income (Loss) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | Note 15.Comprehensive Income (Loss) | |||||||||
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 (loss) component. | ||||||||||
Three months ended March 31, 2015 | ||||||||||
Tax | ||||||||||
Before tax | expense | Net of tax | ||||||||
(In thousands) | amount | (benefit) | amount | |||||||
Unrealized gains on investment securities: | ||||||||||
Unrealized holding gains arising during period | $ | 1,844 | $ | 749 | $ | 1,095 | ||||
Less reclassification adjustment for gains | ||||||||||
realized in net income | 187 | 64 | 123 | |||||||
Unrealized gains on investment securities | 1,657 | 685 | 972 | |||||||
Unrecognized benefit obligation expense: | ||||||||||
Less reclassification adjustment for amortization | -17 | — | -17 | |||||||
Unrecognized benefit obligation | -17 | — | -17 | |||||||
Unrealized loss on derivative instrument | -280 | -159 | -121 | |||||||
Other comprehensive income, net | $ | 1,360 | $ | 526 | $ | 834 | ||||
Three months ended March 31, 2014 | ||||||||||
Tax | ||||||||||
Before tax | expense | Net of tax | ||||||||
(In thousands) | amount | (benefit) | amount | |||||||
Unrealized gains on investment securities: | ||||||||||
Unrealized holding gains arising during period | $ | 3,165 | $ | 968 | $ | 2,197 | ||||
Unrealized gains on investment securities | 3,165 | 968 | 2,197 | |||||||
Unrecognized benefit obligation expense: | ||||||||||
Less reclassification adjustment for amortization | -28 | -10 | -18 | |||||||
Unrecognized benefit obligation | 28 | 10 | 18 | |||||||
Other comprehensive income, net | $ | 3,193 | $ | 978 | $ | 2,215 | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ||||||||||||||||
Fair Value of Financial Instruments | Note 16.Fair Value of Financial Instruments | |||||||||||||||
Under FASB ASC Topic 820 “Fair Value Measurements and Disclosures” (“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, we use unobservable inputs to determine appropriate valuation adjustments using discounted cash flow methodologies. | ||||||||||||||||
Management uses its best judgment in estimating the fair value of our 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 we 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. We did not have transfers of financial instruments within the fair value hierarchy during the three months ended March 31, 2015 and 2014. | ||||||||||||||||
Items Measured on a Recurring Basis | ||||||||||||||||
Our 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 and 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 our 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. We also review 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 March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of March 31, 2015 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||
U.S. government agencies | $ | — | $ | 25,719 | $ | — | $ | 25,719 | ||||||||
Mortgage-backed securities-residential | — | 20,207 | — | 20,207 | ||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||
Issued or guaranteed by U.S. government agencies | — | 152,605 | — | 152,605 | ||||||||||||
Non-agency | — | 3,528 | — | 3,528 | ||||||||||||
Corporate bonds | — | 11,778 | — | 11,778 | ||||||||||||
Municipal bonds | — | 10,233 | — | 10,233 | ||||||||||||
Other securities | — | — | 3,666 | 3,666 | ||||||||||||
Common stocks | 26 | — | — | 26 | ||||||||||||
Total investment securities available for sale | $ | 26 | $ | 224,070 | $ | 3,666 | $ | 227,762 | ||||||||
Liabilities: | ||||||||||||||||
Derivative instruments | ||||||||||||||||
Interest rate swaps | $ | — | $ | 467 | $ | — | $ | 467 | ||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of December 31, 2014 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Investment securities available for sale | ||||||||||||||||
U.S. government agencies | $ | — | $ | 25,289 | $ | — | $ | 25,289 | ||||||||
Mortgage-backed securities-residential | — | 22,387 | — | 22,387 | ||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||
Issued or guaranteed by U.S. government agencies | — | 168,977 | — | 168,977 | ||||||||||||
Non-agency | — | 3,731 | — | 3,731 | ||||||||||||
Corporate bonds | — | 15,727 | — | 15,727 | ||||||||||||
Municipal bonds | — | 10,173 | — | 10,173 | ||||||||||||
Other securities | — | — | 4,034 | 4,034 | ||||||||||||
Common stocks | 50 | — | — | 50 | ||||||||||||
Total investment securities available for sale | $ | 50 | $ | 246,284 | $ | 4,034 | $ | 250,368 | ||||||||
Liabilities: | ||||||||||||||||
Derivative instruments | ||||||||||||||||
Interest rate swaps | $ | — | $ | 187 | $ | — | $ | 187 | ||||||||
The following tables present 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 three months ended March 31, 2015 and 2014: | ||||||||||||||||
(In thousands) | Other securities | |||||||||||||||
Investment Securities Available for Sale | 2015 | 2014 | ||||||||||||||
Beginning balance January 1, | $ | 4,034 | $ | 4,625 | ||||||||||||
Total gains/(losses) - (realized/unrealized): | ||||||||||||||||
Included in earnings-gain on sale | 62 | — | ||||||||||||||
Included in other comprehensive income | -339 | 284 | ||||||||||||||
Purchases | 4 | — | ||||||||||||||
Sales and calls | -95 | -129 | ||||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||
Ending balance March 31, | $ | 3,666 | $ | 4,780 | ||||||||||||
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 real estate. Additionally, for collateral acquired from tax liens, fair value may be established using brokers opinions due to their lower carrying value. 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 March 31, 2015 and December 31, 2014 are as follows: | ||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of March 31, 2015 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 2,611 | $ | 2,611 | ||||||||
Other real estate owned | — | — | 3,758 | 3,758 | ||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of December 31, 2014 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 2,812 | $ | 2,812 | ||||||||
Other real estate owned | — | — | 3,418 | 3,418 | ||||||||||||
The following tables present additional quantitative information about assets measured at fair value on a nonrecurring basis and for which we have utilized Level 3 inputs to determine fair value at March 31, 2015 and December 31, 2014: | ||||||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
As of March 31, 2015 | Valuation | Range | ||||||||||||||
(In thousands) | Fair Value | Techniques | Unobservable Input | (Weighted Average) | ||||||||||||
Impaired loans and leases | $ | 2,611 | Appraisal of | Appraisal adjustments | 0.0% | - | -40.00% | (-24.6%) | ||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -24.00% | (-7.7%) | |||||||||||
Other real estate owned | 3,758 | Appraisal of | Appraisal adjustments | 0.0% | - | -73.30% | (-13.3%) | |||||||||
collateral (1) | Liquidation expenses | -14.70% | (-14.7%) | |||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
As of December 31, 2014 | Valuation | Range | ||||||||||||||
(In thousands) | Fair Value | Techniques | Unobservable Input | (Weighted Average) | ||||||||||||
Impaired loans and leases | $ | 2,812 | Appraisal of | Appraisal adjustments | 0.0% | - | -20.00% | (-20.0%) | ||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -24.00% | (-7.8%) | |||||||||||
Other real estate owned | 3,418 | Appraisal of | Appraisal adjustments | 0.0% | - | -68.60% | (-14.5%) | |||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -14.70% | (-14.7%) | |||||||||||
-1 | Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. | |||||||||||||||
The following methods and assumptions were used to estimate the fair values of our financial instruments at March 31, 2015 and December 31, 2014. 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 our assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between our 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, we use unobservable inputs to determine appropriate valuation adjustments by reviewing the private equities funds’ financials and K-1 filings (level 3). | ||||||||||||||||
Other Investment (carried at cost): | ||||||||||||||||
This investment includes the Solomon Hess SBA Loan Fund, which we invested in to partially satisfy Royal Bank’s community reinvestment requirement. Shares in this fund are not publicly traded and therefore have no readily determinable fair market value. An investor can have its investment in the Fund redeemed for the balance of its capital account at any quarter end with 60 days notice to the Fund. The investment in this Fund is recorded at cost. We do not record this investment at fair value on a recurring basis, as this investment’s carrying amount approximates fair value. | ||||||||||||||||
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 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 we have 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. | ||||||||||||||||
Derivative instruments: | ||||||||||||||||
We have contracted with a third party vendor to provide periodic valuations for its interest rate derivatives to determine the fair value of its interest rate swaps. The vendor utilizes standard valuation methodologies applicable to interest rate derivatives such as discounted cash flow analysis and extensions of the Black-Scholes model. Such valuations are based upon readily observable market data and are therefore considered Level 2 valuations by the Company. | ||||||||||||||||
Off-balance sheet financial instruments (disclosed at cost): | ||||||||||||||||
Fair values of our 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 indicate the fair value of our financial instruments at March 31, 2015 and December 31, 2014. | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
At March 31, 2015 | ||||||||||||||||
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 | $ | 41,618 | $ | 41,618 | $ | 41,618 | $ | — | $ | — | ||||||
Investment securities available for sale | 227,762 | 227,762 | 26 | 224,070 | 3,666 | |||||||||||
Other investment | 2,250 | 2,250 | — | — | 2,250 | |||||||||||
Federal Home Loan Bank stock | 2,622 | 2,622 | — | — | 2,622 | |||||||||||
Loans, net | 407,789 | 404,770 | — | — | 404,770 | |||||||||||
Accrued interest receivable | 4,873 | 4,873 | — | 4,873 | — | |||||||||||
Financial Liabilities: | ||||||||||||||||
Demand deposits | 76,808 | 76,808 | — | 76,808 | — | |||||||||||
NOW and money markets | 201,607 | 201,607 | — | 201,607 | — | |||||||||||
Savings | 20,112 | 20,112 | — | 20,112 | — | |||||||||||
Time deposits | 221,759 | 219,851 | — | 219,851 | — | |||||||||||
Long-term borrowings | 92,312 | 89,652 | — | 89,652 | — | |||||||||||
Subordinated debt | 25,774 | 25,649 | — | 25,649 | — | |||||||||||
Accrued interest payable | 1,270 | 1,270 | — | 1,270 | — | |||||||||||
Derivative Instruments: | ||||||||||||||||
Interest rate swaps | 467 | 467 | — | 467 | — | |||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2014 | ||||||||||||||||
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 | $ | 30,790 | $ | 30,790 | $ | 30,790 | $ | — | $ | — | ||||||
Investment securities available for sale | 250,368 | 250,368 | 50 | 246,284 | 4,034 | |||||||||||
Other investment | 2,250 | 2,250 | — | — | 2,250 | |||||||||||
Federal Home Loan Bank stock | 2,622 | 2,622 | — | — | 2,622 | |||||||||||
Loans, net | 403,424 | 400,979 | — | — | 400,979 | |||||||||||
Accrued interest receivable | 5,270 | 5,270 | — | 5,270 | — | |||||||||||
Financial Liabilities: | ||||||||||||||||
Demand deposits | 73,665 | 73,665 | — | 73,665 | — | |||||||||||
NOW and money markets | 212,739 | 212,739 | — | 212,739 | — | |||||||||||
Savings | 18,721 | 18,721 | — | 18,721 | — | |||||||||||
Time deposits | 225,300 | 223,788 | — | 223,788 | — | |||||||||||
Long-term borrowings | 92,426 | 90,022 | — | 90,022 | — | |||||||||||
Subordinated debt | 25,774 | 25,091 | — | 25,091 | — | |||||||||||
Accrued interest payable | 726 | 726 | — | 726 | — | |||||||||||
Derivative Instruments: | ||||||||||||||||
Interest rate swaps | 187 | 187 | — | 187 | — | |||||||||||
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 | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Segment Information [Abstract] | ||||||||||
Segment Information | Note 17.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. Our chief operating decision makers are the CEO and the CFO. We have identified our reportable operating segments as “Community Banking” and “Tax Liens”. | ||||||||||
Community banking | ||||||||||
Our community banking segment, which includes Royal Bank, consists of commercial and retail banking and equipment 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 and Royal Bank Leasing. 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 liens | ||||||||||
At March 31, 2015, Royal Bank’s tax liens segment includes its 80% and 100% ownership interest in CSC and RTL, respectively. Our tax liens segment consisted 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 liens segment earns income based on interest rates (determined at auction) and penalties assigned by the municipality along with gains on sale of foreclosed properties. CSC has been liquidating its assets under an orderly, long term plan. RTL ceased acquiring tax certificates at public auctions in 2010. | ||||||||||
The following table presents selected financial information for reportable business segments for the three months ended March 31, 2015 and 2014. | ||||||||||
Three months ended March 31, 2015 | ||||||||||
Community | ||||||||||
(In thousands) | Banking | Tax Liens | Consolidated | |||||||
Total assets | $ | 706,252 | $ | 18,953 | $ | 725,205 | ||||
Total deposits | $ | 520,286 | $ | — | $ | 520,286 | ||||
Interest income | $ | 7,037 | $ | 243 | $ | 7,280 | ||||
Interest expense | 1,344 | 227 | 1,571 | |||||||
Net interest income | $ | 5,693 | $ | 16 | $ | 5,709 | ||||
(Credit) provision for loan and lease losses | -661 | 81 | -580 | |||||||
Total non-interest income | 517 | 330 | 847 | |||||||
Total non-interest expense | 4,855 | 520 | 5,375 | |||||||
Income tax expense (benefit) | — | — | — | |||||||
Net income (loss) | $ | 2,016 | $ | -255 | $ | 1,761 | ||||
Noncontrolling interest | $ | 189 | $ | -19 | $ | 170 | ||||
Net income (loss) attributable to Royal Bancshares | $ | 1,827 | $ | -236 | $ | 1,591 | ||||
Three months ended March 31, 2014 | ||||||||||
Community | ||||||||||
(In thousands) | Banking | Tax Liens | Consolidated | |||||||
Total assets | $ | 709,911 | $ | 24,499 | $ | 734,410 | ||||
Total deposits | $ | 532,632 | $ | — | $ | 532,632 | ||||
Interest income | $ | 6,796 | $ | 355 | $ | 7,151 | ||||
Interest expense | 1,320 | 305 | 1,625 | |||||||
Net interest income | $ | 5,476 | $ | 50 | $ | 5,526 | ||||
(Credit) provision for loan and lease losses | -737 | 98 | -639 | |||||||
Total non-interest income | 566 | 206 | 772 | |||||||
Total non-interest expense | 4,937 | 385 | 5,322 | |||||||
Income tax expense (benefit) | — | — | — | |||||||
Net income (loss) | $ | 1,842 | $ | -227 | $ | 1,615 | ||||
Noncontrolling interest | $ | 156 | $ | -39 | $ | 117 | ||||
Net income (loss) attributable to Royal Bancshares | $ | 1,686 | $ | -188 | $ | 1,498 | ||||
Interest income earned by the community banking segment related to the tax liens segment was approximately $227,000 and $305,000 for the three month periods ended March 31, 2015 and 2014, respectively. | ||||||||||
Federal_Home_Loan_Bank_Stock
Federal Home Loan Bank Stock | 3 Months Ended |
Mar. 31, 2015 | |
Federal Home Loan Bank Stock [Abstract] | |
Federal Home Loan Bank Stock | Note 18.Federal Home Loan Bank Stock |
As a member of the FHLB, we are 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 March 31, 2015 and December 31, 2014, FHLB stock totaled $2.6 million. | |
FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. We evaluate 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 our FHLB stock as of March 31, 2015. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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”, the “Company”, “We” or “Our”) 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 Royal Tax Lien Services, LLC (“RTL”). Royal Bank also has an 80% and 60% ownership interest in Crusader Servicing Corporation (“CSC”) and Royal Bank America Leasing, LP, respectively. 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 in consolidation. | |
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 our 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, 2014. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results to be expected for the full year. | |
Reclassifications | Reclassifications |
Certain items in the 2014 consolidated financial statements and accompanying notes have been reclassified to conform to the current year’s presentation format. There was no effect on net income for the periods presented herein as a result of the reclassification. | |
Recent Accounting Pronouncements | Accounting Policies Recently Adopted and Pending Accounting Pronouncements |
In January 2014, FASB issued ASU No. 2014-04, Receivables (Topic 310): Troubled Debt Restructurings by Creditors (Subtopic 310-40) Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure (“ASU 2014-04”). ASC Topic 310 includes guidance that states that a creditor should reclassify a collateralized mortgage loan such that the loan should be derecognized and the collateral asset recognized when it determines that there has been in substance a repossession or foreclosure by the creditor, that is, the creditor receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place. However, the terms in substance a repossession or foreclosure and physical possession are not defined in the accounting literature and there is diversity about when a creditor should derecognize the loan receivable and recognize the real estate property. That diversity has been highlighted by recent extended foreclosure timelines and processes related to residential real estate properties. | |
The objectives in ASU 2014-04 are intended to reduce diversity in practice by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan should be derecognized and the real estate property recognized. Holding foreclosed real estate property presents different operational and economic risk to creditors compared with holding an impaired loan. Therefore, consistency in the timing of loan derecognition and presentation of foreclosed real estate properties is of qualitative significance to users of the creditor’s financial statements. Additionally, the disclosure of the amount of foreclosed residential real estate properties and of the recorded investment in consumer mortgage loans secured by residential real estate properties that are in the process of foreclosure is expected to provide decision-useful information to many users of the creditor’s financial statements. The amendments in ASU 2014-04 are effective for public companies for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in ASU 2014-04 using either a modified retrospective transition method or a prospective transition method. Early adoption is permitted. The adoption of ASU 2014-04 did not have a significant impact on the Company’s consolidated financial statements. | |
In June 2014, the FASB issued ASU No. 2014-12, Compensation – Stock Compensation (Topic 718) - Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (“ASU 2014-12”). The amendments in ASU 2014-12 require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation – Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. The amendments in ASU 2014-12 are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this ASU either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The adoption of ASU 2014-12 is not expected to have a significant impact on the Company’s consolidated financial statements. | |
In April 2015, the FASB issued ASU 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). The amendments in ASU 2015-03 require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. ASU 2015-03 is consistent with FASB Concepts Statement No.6, Elements of Financial Statements, which states that debt issuance costs are similar to a debt discount and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this ASU. For public business entities, the amendments in ASU 2015-03 are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Earlier adoption is permitted for financial statements that have not been previously issued. The adoption of ASU 2015-03 is not expected to have a material impact on the Company’s financial condition and results of operations. | |
Investment_Securities_Tables
Investment Securities (Tables) | 3 Months Ended | ||||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||||
Investment Securities [Abstract] | |||||||||||||||||||||||||||
Amortized cost, gross unrealized gains and losses, and fair value of available-for-sale investment securities | |||||||||||||||||||||||||||
As of March 31, 2015 | Included in OCI* | ||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||
Amortized | unrealized | unrealized | |||||||||||||||||||||||||
(In thousands) | cost | gains | losses | Fair value | |||||||||||||||||||||||
U.S. government agencies | $ | 26,124 | $ | — | $ | -405 | $ | 25,719 | |||||||||||||||||||
Mortgage-backed securities-residential | 19,835 | 409 | -37 | 20,207 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 150,014 | 3,135 | -544 | 152,605 | |||||||||||||||||||||||
Non-agency | 3,484 | 44 | — | 3,528 | |||||||||||||||||||||||
Corporate bonds | 11,595 | 199 | -16 | 11,778 | |||||||||||||||||||||||
Municipal bonds | 10,101 | 148 | -16 | 10,233 | |||||||||||||||||||||||
Other securities | 2,654 | 1,031 | -19 | 3,666 | |||||||||||||||||||||||
Common stocks | 26 | — | — | 26 | |||||||||||||||||||||||
Total available for sale | $ | 223,833 | $ | 4,966 | $ | -1,037 | $ | 227,762 | |||||||||||||||||||
As of December 31, 2014 | Included in OCI* | ||||||||||||||||||||||||||
Gross | Gross | ||||||||||||||||||||||||||
Amortized | unrealized | unrealized | |||||||||||||||||||||||||
(In thousands) | cost | gains | losses | Fair value | |||||||||||||||||||||||
U.S. government agencies | $ | 26,123 | $ | — | $ | -834 | $ | 25,289 | |||||||||||||||||||
Mortgage-backed securities-residential | 22,073 | 375 | -61 | 22,387 | |||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 167,711 | 2,350 | -1,084 | 168,977 | |||||||||||||||||||||||
Non-agency | 3,738 | 7 | -14 | 3,731 | |||||||||||||||||||||||
Corporate bonds | 15,617 | 144 | -34 | 15,727 | |||||||||||||||||||||||
Municipal bonds | 10,117 | 91 | -35 | 10,173 | |||||||||||||||||||||||
Other securities | 2,684 | 1,350 | — | 4,034 | |||||||||||||||||||||||
Common stocks | 33 | 17 | — | 50 | |||||||||||||||||||||||
Total available for sale | $ | 248,096 | $ | 4,334 | $ | -2,062 | $ | 250,368 | |||||||||||||||||||
*Other comprehensive income | |||||||||||||||||||||||||||
Amortized cost and fair value of investment securities, by contractual maturity | |||||||||||||||||||||||||||
As of March 31, 2015 | |||||||||||||||||||||||||||
Amortized | |||||||||||||||||||||||||||
(In thousands) | cost | Fair value | |||||||||||||||||||||||||
Within 1 year | $ | 1,000 | $ | 1,012 | |||||||||||||||||||||||
After 1 but within 5 years | 12,399 | 12,400 | |||||||||||||||||||||||||
After 5 but within 10 years | 25,309 | 25,325 | |||||||||||||||||||||||||
After 10 years | 9,112 | 8,993 | |||||||||||||||||||||||||
Mortgage-backed securities-residential | 19,835 | 20,207 | |||||||||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 150,014 | 152,605 | |||||||||||||||||||||||||
Non-agency | 3,484 | 3,528 | |||||||||||||||||||||||||
Total available for sale debt securities | 221,153 | 224,070 | |||||||||||||||||||||||||
No contractual maturity | 2,680 | 3,692 | |||||||||||||||||||||||||
Total available for sale securities | $ | 223,833 | $ | 227,762 | |||||||||||||||||||||||
Gross realized gains and losses realized on sale of securities | |||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||
(In thousands) | 2015 | 2014 | |||||||||||||||||||||||||
Gross realized gains | $ | 187 | $ | — | |||||||||||||||||||||||
Gross realized losses | — | — | |||||||||||||||||||||||||
Net realized gains (losses) | $ | 187 | $ | — | |||||||||||||||||||||||
Investment securities in a continuous unrealized loss position | |||||||||||||||||||||||||||
31-Mar-15 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
Gross | Number | Gross | Number | Gross | Number | ||||||||||||||||||||||
unrealized | of | unrealized | of | unrealized | of | ||||||||||||||||||||||
(In thousands) | Fair value | losses | positions | Fair value | losses | positions | Fair value | losses | positions | ||||||||||||||||||
U.S. government agencies | $ | — | $ | — | — | $ | 25,719 | $ | -405 | 8 | $ | 25,719 | $ | -405 | 8 | ||||||||||||
Mortgage-backed securities-residential | — | — | — | 2,859 | -37 | 1 | 2,859 | -37 | 1 | ||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 11,216 | -36 | 4 | 28,775 | -508 | 9 | 39,991 | -544 | 13 | ||||||||||||||||||
Corporate bonds | 1,995 | -5 | 2 | 989 | -11 | 1 | 2,984 | -16 | 3 | ||||||||||||||||||
Municipal bonds | 2,073 | -15 | 2 | 1,005 | -1 | 1 | 3,078 | -16 | 3 | ||||||||||||||||||
Other securities | 240 | -19 | 1 | — | — | — | 240 | -19 | 1 | ||||||||||||||||||
Total available for sale | $ | 15,524 | $ | -75 | 9 | $ | 59,347 | $ | -962 | 20 | $ | 74,871 | $ | -1,037 | 29 | ||||||||||||
31-Dec-14 | Less than 12 months | 12 months or longer | Total | ||||||||||||||||||||||||
Gross | Number | Gross | Number | Gross | Number | ||||||||||||||||||||||
unrealized | of | unrealized | of | unrealized | of | ||||||||||||||||||||||
(In thousands) | Fair value | losses | positions | Fair value | losses | positions | Fair value | losses | positions | ||||||||||||||||||
U.S. government agencies | $ | — | $ | — | — | $ | 25,289 | $ | -834 | 8 | $ | 25,289 | $ | -834 | 8 | ||||||||||||
Mortgage-backed securities-residential | — | — | — | 8,913 | -61 | 3 | 8,913 | -61 | 3 | ||||||||||||||||||
Collateralized mortgage obligations: | |||||||||||||||||||||||||||
Issued or guaranteed by U.S. government agencies | 36,757 | -204 | 12 | 38,798 | -880 | 12 | 75,555 | -1,084 | 24 | ||||||||||||||||||
Non-agency | 1,432 | -14 | 1 | — | — | — | 1,432 | -14 | 1 | ||||||||||||||||||
Corporate bonds | 8,054 | -25 | 5 | 991 | -9 | 1 | 9,045 | -34 | 6 | ||||||||||||||||||
Municipal bonds | 1,639 | -7 | 2 | 3,079 | -28 | 4 | 4,718 | -35 | 6 | ||||||||||||||||||
Total available for sale | $ | 47,882 | $ | -250 | 20 | $ | 77,070 | $ | -1,812 | 28 | $ | 124,952 | $ | -2,062 | 48 | ||||||||||||
Loans_and_Leases_Tables
Loans and Leases (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Loans and Leases [Abstract] | ||||||||||||||||||||||||
Major classifications of loans held for investment | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||||||||
Commercial real estate | $ | 194,277 | $ | 175,038 | ||||||||||||||||||||
Construction and land development | 18,610 | 45,662 | ||||||||||||||||||||||
Commercial and industrial | 83,240 | 76,489 | ||||||||||||||||||||||
Multi-family | 17,594 | 13,823 | ||||||||||||||||||||||
Residential real estate | 43,416 | 42,992 | ||||||||||||||||||||||
Leases | 53,473 | 51,583 | ||||||||||||||||||||||
Tax certificates | 5,608 | 7,191 | ||||||||||||||||||||||
Consumer | 2,468 | 2,354 | ||||||||||||||||||||||
Total LHFI, net of unearned income | $ | 418,686 | $ | 415,132 | ||||||||||||||||||||
Risk ratings for loan portfolio segment | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 153,647 | $ | 34,902 | $ | 2,170 | $ | 320 | $ | 3,238 | $ | 194,277 | ||||||||||||
Construction and land development | 3,044 | 14,942 | — | — | 624 | 18,610 | ||||||||||||||||||
Commercial and industrial | 57,043 | 15,105 | 5,314 | 3,333 | 2,445 | 83,240 | ||||||||||||||||||
Multi-family | 16,781 | 300 | 513 | — | — | 17,594 | ||||||||||||||||||
Residential real estate | 42,427 | — | — | — | 989 | 43,416 | ||||||||||||||||||
Leases | 52,933 | 294 | 24 | — | 222 | 53,473 | ||||||||||||||||||
Tax certificates | 4,774 | — | — | — | 834 | 5,608 | ||||||||||||||||||
Consumer | 2,387 | 81 | — | — | — | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 333,036 | $ | 65,624 | $ | 8,021 | $ | 3,653 | $ | 8,352 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 140,045 | $ | 27,229 | $ | 2,512 | $ | 1,568 | $ | 3,684 | $ | 175,038 | ||||||||||||
Construction and land development | 12,861 | 32,165 | — | — | 636 | 45,662 | ||||||||||||||||||
Commercial and industrial | 60,500 | 8,527 | 1,608 | 3,337 | 2,517 | 76,489 | ||||||||||||||||||
Multi-family | 12,995 | 310 | 518 | — | — | 13,823 | ||||||||||||||||||
Residential real estate | 42,033 | — | — | — | 959 | 42,992 | ||||||||||||||||||
Leases | 51,113 | 152 | 1 | — | 317 | 51,583 | ||||||||||||||||||
Tax certificates | 5,491 | — | — | — | 1,700 | 7,191 | ||||||||||||||||||
Consumer | 2,194 | 160 | — | — | — | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 327,232 | $ | 68,543 | $ | 4,639 | $ | 4,905 | $ | 9,813 | $ | 415,132 | ||||||||||||
Aging analysis of past due payments for loan portfolio segment | ||||||||||||||||||||||||
As of March 31, 2015 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 2,773 | $ | 503 | $ | — | $ | 3,238 | $ | 187,763 | $ | 194,277 | ||||||||||||
Construction and land development | — | — | — | 624 | 17,986 | 18,610 | ||||||||||||||||||
Commercial and industrial | 125 | 428 | — | 2,445 | 80,242 | 83,240 | ||||||||||||||||||
Multi-family | 199 | — | — | — | 17,395 | 17,594 | ||||||||||||||||||
Residential real estate | 183 | — | — | 989 | 42,244 | 43,416 | ||||||||||||||||||
Leases | 24 | 222 | — | 222 | 53,005 | 53,473 | ||||||||||||||||||
Tax certificates | — | — | — | 834 | 4,774 | 5,608 | ||||||||||||||||||
Consumer | — | — | — | — | 2,468 | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 3,304 | $ | 1,153 | $ | — | $ | 8,352 | $ | 405,877 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 311 | $ | 533 | $ | — | $ | 3,684 | $ | 170,510 | $ | 175,038 | ||||||||||||
Construction and land development | — | — | — | 636 | 45,026 | 45,662 | ||||||||||||||||||
Commercial and industrial | 92 | 449 | — | 2,517 | 73,431 | 76,489 | ||||||||||||||||||
Multi-family | — | — | — | — | 13,823 | 13,823 | ||||||||||||||||||
Residential real estate | 165 | 162 | — | 959 | 41,706 | 42,992 | ||||||||||||||||||
Leases | 152 | 1 | — | 317 | 51,113 | 51,583 | ||||||||||||||||||
Tax certificates | — | — | — | 1,700 | 5,491 | 7,191 | ||||||||||||||||||
Consumer | — | — | — | — | 2,354 | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 720 | $ | 1,145 | $ | — | $ | 9,813 | $ | 403,454 | $ | 415,132 | ||||||||||||
Troubled debt restructurings that are on an accrual status and a non-accrual status | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 3 | $ | 2,863 | $ | — | $ | 2,863 | |||||||||||||||||
Construction and land development | 2 | — | 624 | 624 | ||||||||||||||||||||
Commercial and industrial | 5 | 3,637 | 1,398 | 5,035 | ||||||||||||||||||||
Residential real estate | 1 | — | 100 | 100 | ||||||||||||||||||||
Total | 11 | $ | 6,500 | $ | 2,122 | $ | 8,622 | |||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 2 | $ | 2,856 | $ | — | $ | 2,856 | |||||||||||||||||
Construction and land development | 3 | 47 | 636 | 683 | ||||||||||||||||||||
Commercial and industrial | 6 | 3,670 | 1,448 | 5,118 | ||||||||||||||||||||
Residential real estate | 1 | — | 102 | 102 | ||||||||||||||||||||
Total | 12 | $ | 6,573 | $ | 2,186 | $ | 8,759 | |||||||||||||||||
Newly restructured loans | Note 4.Loans and Leases | |||||||||||||||||||||||
Major classifications of LHFI are as follows: | ||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||
(In thousands) | 2015 | 2014 | ||||||||||||||||||||||
Commercial real estate | $ | 194,277 | $ | 175,038 | ||||||||||||||||||||
Construction and land development | 18,610 | 45,662 | ||||||||||||||||||||||
Commercial and industrial | 83,240 | 76,489 | ||||||||||||||||||||||
Multi-family | 17,594 | 13,823 | ||||||||||||||||||||||
Residential real estate | 43,416 | 42,992 | ||||||||||||||||||||||
Leases | 53,473 | 51,583 | ||||||||||||||||||||||
Tax certificates | 5,608 | 7,191 | ||||||||||||||||||||||
Consumer | 2,468 | 2,354 | ||||||||||||||||||||||
Total LHFI, net of unearned income | $ | 418,686 | $ | 415,132 | ||||||||||||||||||||
We use a nine point grading risk classification system commonly used in the financial services industry as the credit quality indicator. The first four classifications are rated Pass. The riskier classifications include Pass-Watch, 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 in the calculation of the allowance for loan and lease losses. | ||||||||||||||||||||||||
· | 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 our 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 we 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 assigned 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 classification at March 31, 2015 and December 31, 2014, excluding LHFS. | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 153,647 | $ | 34,902 | $ | 2,170 | $ | 320 | $ | 3,238 | $ | 194,277 | ||||||||||||
Construction and land development | 3,044 | 14,942 | — | — | 624 | 18,610 | ||||||||||||||||||
Commercial and industrial | 57,043 | 15,105 | 5,314 | 3,333 | 2,445 | 83,240 | ||||||||||||||||||
Multi-family | 16,781 | 300 | 513 | — | — | 17,594 | ||||||||||||||||||
Residential real estate | 42,427 | — | — | — | 989 | 43,416 | ||||||||||||||||||
Leases | 52,933 | 294 | 24 | — | 222 | 53,473 | ||||||||||||||||||
Tax certificates | 4,774 | — | — | — | 834 | 5,608 | ||||||||||||||||||
Consumer | 2,387 | 81 | — | — | — | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 333,036 | $ | 65,624 | $ | 8,021 | $ | 3,653 | $ | 8,352 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
(In thousands) | Pass | Pass-Watch | Special Mention | Substandard | Non-accrual | Total | ||||||||||||||||||
Commercial real estate | $ | 140,045 | $ | 27,229 | $ | 2,512 | $ | 1,568 | $ | 3,684 | $ | 175,038 | ||||||||||||
Construction and land development | 12,861 | 32,165 | — | — | 636 | 45,662 | ||||||||||||||||||
Commercial and industrial | 60,500 | 8,527 | 1,608 | 3,337 | 2,517 | 76,489 | ||||||||||||||||||
Multi-family | 12,995 | 310 | 518 | — | — | 13,823 | ||||||||||||||||||
Residential real estate | 42,033 | — | — | — | 959 | 42,992 | ||||||||||||||||||
Leases | 51,113 | 152 | 1 | — | 317 | 51,583 | ||||||||||||||||||
Tax certificates | 5,491 | — | — | — | 1,700 | 7,191 | ||||||||||||||||||
Consumer | 2,194 | 160 | — | — | — | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 327,232 | $ | 68,543 | $ | 4,639 | $ | 4,905 | $ | 9,813 | $ | 415,132 | ||||||||||||
The following tables present an aging analysis of past due payments for each loan portfolio classification at March 31, 2015 and December 31, 2014, excluding LHFS. | ||||||||||||||||||||||||
As of March 31, 2015 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 2,773 | $ | 503 | $ | — | $ | 3,238 | $ | 187,763 | $ | 194,277 | ||||||||||||
Construction and land development | — | — | — | 624 | 17,986 | 18,610 | ||||||||||||||||||
Commercial and industrial | 125 | 428 | — | 2,445 | 80,242 | 83,240 | ||||||||||||||||||
Multi-family | 199 | — | — | — | 17,395 | 17,594 | ||||||||||||||||||
Residential real estate | 183 | — | — | 989 | 42,244 | 43,416 | ||||||||||||||||||
Leases | 24 | 222 | — | 222 | 53,005 | 53,473 | ||||||||||||||||||
Tax certificates | — | — | — | 834 | 4,774 | 5,608 | ||||||||||||||||||
Consumer | — | — | — | — | 2,468 | 2,468 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 3,304 | $ | 1,153 | $ | — | $ | 8,352 | $ | 405,877 | $ | 418,686 | ||||||||||||
As of December 31, 2014 | 30-59 Days | 60-89 Days | Accruing | |||||||||||||||||||||
(In thousands) | Past Due | Past Due | 90+ Days | Non-accrual | Current | Total | ||||||||||||||||||
Commercial real estate | $ | 311 | $ | 533 | $ | — | $ | 3,684 | $ | 170,510 | $ | 175,038 | ||||||||||||
Construction and land development | — | — | — | 636 | 45,026 | 45,662 | ||||||||||||||||||
Commercial and industrial | 92 | 449 | — | 2,517 | 73,431 | 76,489 | ||||||||||||||||||
Multi-family | — | — | — | — | 13,823 | 13,823 | ||||||||||||||||||
Residential real estate | 165 | 162 | — | 959 | 41,706 | 42,992 | ||||||||||||||||||
Leases | 152 | 1 | — | 317 | 51,113 | 51,583 | ||||||||||||||||||
Tax certificates | — | — | — | 1,700 | 5,491 | 7,191 | ||||||||||||||||||
Consumer | — | — | — | — | 2,354 | 2,354 | ||||||||||||||||||
Total LHFI, net of unearned income | $ | 720 | $ | 1,145 | $ | — | $ | 9,813 | $ | 403,454 | $ | 415,132 | ||||||||||||
If interest had accrued on non-accrual loans, such income would have been approximately $204,000 and $275,000 for the three months ended March 31, 2015 and 2014, respectively. | ||||||||||||||||||||||||
Impaired Loans | ||||||||||||||||||||||||
Total cash collected on impaired loans during the three months ended March 31, 2015 and 2014 was $1.3 million and $2.0 million respectively, of which $1.1 million and $1.7 million was credited to the principal balance outstanding on such loans, respectively. | ||||||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||||
The following table details our TDRs that are on an accrual status and non-accrual status at March 31, 2015 and December 31, 2014. | ||||||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 3 | $ | 2,863 | $ | — | $ | 2,863 | |||||||||||||||||
Construction and land development | 2 | — | 624 | 624 | ||||||||||||||||||||
Commercial and industrial | 5 | 3,637 | 1,398 | 5,035 | ||||||||||||||||||||
Residential real estate | 1 | — | 100 | 100 | ||||||||||||||||||||
Total | 11 | $ | 6,500 | $ | 2,122 | $ | 8,622 | |||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||||||
Non- | ||||||||||||||||||||||||
Number of | Accrual | Accrual | ||||||||||||||||||||||
(In thousands) | loans | Status | Status | Total TDRs | ||||||||||||||||||||
Commercial real estate | 2 | $ | 2,856 | $ | — | $ | 2,856 | |||||||||||||||||
Construction and land development | 3 | 47 | 636 | 683 | ||||||||||||||||||||
Commercial and industrial | 6 | 3,670 | 1,448 | 5,118 | ||||||||||||||||||||
Residential real estate | 1 | — | 102 | 102 | ||||||||||||||||||||
Total | 12 | $ | 6,573 | $ | 2,186 | $ | 8,759 | |||||||||||||||||
At March 31, 2015, all of the TDRs were in compliance with their restructured terms. We did not classify any loan modifications as TDRs during the first quarter of 2015. The following table presents restructured loans that occurred during the three months ended March 31, 2014. | ||||||||||||||||||||||||
Modifications by type for the three months ended March 31, 2014 | ||||||||||||||||||||||||
Pre- | Post- | |||||||||||||||||||||||
Modification | Modification | |||||||||||||||||||||||
Outstanding | Outstanding | |||||||||||||||||||||||
Number of | Combination | Recorded | Recorded | |||||||||||||||||||||
(Dollars in thousands) | loans | Rate | Term | Payment | of types | Total | Investment | Investment | ||||||||||||||||
Commercial and industrial | 2 | $ | — | $ | 45 | $ | — | $ | 28 | $ | 73 | $ | 73 | $ | 73 | |||||||||
Total | 2 | $ | — | $ | 45 | $ | — | $ | 28 | $ | 73 | $ | 73 | $ | 73 | |||||||||
Allowance_for_Loan_and_Lease_L1
Allowance for Loan and Lease Losses (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses [Abstract] | ||||||||||||||||||||||||||||||||
Detail of the allowance and loan portfolio disaggregated by loan portfolio segment | Allowance for Loan and Lease Losses | |||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 4,452 | $ | 2,292 | $ | 1,780 | $ | 285 | $ | 616 | $ | 1,429 | $ | 667 | $ | 38 | $ | 149 | $ | 11,708 | ||||||||||||
Charge-offs | — | — | -340 | — | — | -103 | -425 | — | — | -868 | ||||||||||||||||||||||
Recoveries | 350 | 248 | 1 | — | 8 | 11 | 19 | — | — | 637 | ||||||||||||||||||||||
(Credit) provision | 83 | -1,464 | 594 | 60 | 41 | 41 | 81 | -4 | -12 | -580 | ||||||||||||||||||||||
Ending balance | $ | 4,885 | $ | 1,076 | $ | 2,035 | $ | 345 | $ | 665 | $ | 1,378 | $ | 342 | $ | 34 | $ | 137 | $ | 10,897 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 231 | $ | 80 | $ | 1 | $ | — | $ | 30 | $ | 36 | $ | 8 | $ | — | $ | — | $ | 386 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,654 | $ | 996 | $ | 2,034 | $ | 345 | $ | 635 | $ | 1,342 | $ | 334 | $ | 34 | $ | 137 | $ | 10,511 | ||||||||||||
Loans Held for Investment and Evaluated for Impairment | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 194,277 | $ | 18,610 | $ | 83,240 | $ | 17,594 | $ | 43,416 | $ | 53,473 | $ | 5,608 | $ | 2,468 | $ | — | $ | 418,686 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,327 | $ | 624 | $ | 5,650 | $ | — | $ | 989 | $ | 77 | $ | 834 | $ | — | $ | — | $ | 14,501 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 187,950 | $ | 17,986 | $ | 77,590 | $ | 17,594 | $ | 42,427 | $ | 53,396 | $ | 4,774 | $ | 2,468 | $ | — | $ | 404,185 | ||||||||||||
Allowance for Loan and Lease Losses and Loans Held for Investment | ||||||||||||||||||||||||||||||||
For the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 5,498 | $ | 2,316 | $ | 3,006 | $ | 402 | $ | 473 | $ | 1,223 | $ | 555 | $ | 15 | $ | 183 | $ | 13,671 | ||||||||||||
Charge-offs | -354 | -172 | -452 | — | — | -793 | -350 | — | — | -2,121 | ||||||||||||||||||||||
Recoveries | — | 940 | 27 | — | 15 | 42 | 1 | — | — | 1,025 | ||||||||||||||||||||||
(Credit) provision | -692 | -792 | -801 | -117 | 128 | 957 | 461 | 23 | -34 | -867 | ||||||||||||||||||||||
Ending balance | $ | 4,452 | $ | 2,292 | $ | 1,780 | $ | 285 | $ | 616 | $ | 1,429 | $ | 667 | $ | 38 | $ | 149 | $ | 11,708 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | 200 | $ | — | $ | 301 | $ | — | $ | 28 | $ | 80 | $ | 432 | $ | — | $ | — | $ | 1,041 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,252 | $ | 2,292 | $ | 1,479 | $ | 285 | $ | 588 | $ | 1,349 | $ | 235 | $ | 38 | $ | 149 | $ | 10,667 | ||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 175,038 | $ | 45,662 | $ | 76,489 | $ | 13,823 | $ | 42,992 | $ | 51,583 | $ | 7,191 | $ | 2,354 | $ | — | $ | 415,132 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 6,795 | $ | 683 | $ | 5,846 | $ | — | $ | 959 | $ | 95 | $ | 1,700 | $ | — | $ | — | $ | 16,078 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 168,243 | $ | 44,979 | $ | 70,643 | $ | 13,823 | $ | 42,033 | $ | 51,488 | $ | 5,491 | $ | 2,354 | $ | — | $ | 399,054 | ||||||||||||
Allowance for Loan and Lease Losses | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
Beginning balance | $ | 5,498 | $ | 2,316 | $ | 3,006 | $ | 402 | $ | 473 | $ | 1,223 | $ | 555 | $ | 15 | $ | 183 | $ | 13,671 | ||||||||||||
Charge-offs | -350 | — | -452 | — | — | -118 | -265 | — | — | -1,185 | ||||||||||||||||||||||
Recoveries | — | — | 4 | — | 2 | 13 | — | — | — | 19 | ||||||||||||||||||||||
Provision (credit) | -220 | -53 | -696 | -1 | 15 | 239 | 97 | 2 | -22 | -639 | ||||||||||||||||||||||
Ending balance | $ | 4,928 | $ | 2,263 | $ | 1,862 | $ | 401 | $ | 490 | $ | 1,357 | $ | 387 | $ | 17 | $ | 161 | $ | 11,866 | ||||||||||||
Ending balance: related to loans individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | 22 | $ | 116 | $ | — | $ | — | $ | — | $ | 138 | ||||||||||||
Ending balance: related to loans collectively evaluated for impairment | $ | 4,928 | $ | 2,263 | $ | 1,862 | $ | 401 | $ | 468 | $ | 1,241 | $ | 387 | $ | 17 | $ | 161 | $ | 11,728 | ||||||||||||
Loans Held for Investment and Evaluated for Impairment | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Construction | ||||||||||||||||||||||||||||||||
Commercial | and land | Commercial | Multi- | Residential | Tax | |||||||||||||||||||||||||||
(In thousands) | real estate | development | and industrial | family | real estate | Leases | certificates | Consumer | Unallocated | Total | ||||||||||||||||||||||
LHFI | ||||||||||||||||||||||||||||||||
Ending balance | $ | 150,111 | $ | 45,751 | $ | 68,664 | $ | 11,876 | $ | 26,465 | $ | 43,644 | $ | 11,182 | $ | 965 | $ | — | $ | 358,658 | ||||||||||||
Ending balance: individually evaluated for impairment | $ | 4,800 | $ | 3,446 | $ | 6,630 | $ | — | $ | 746 | $ | 139 | $ | 1,137 | $ | — | $ | — | $ | 16,898 | ||||||||||||
Ending balance: collectively evaluated for impairment | $ | 145,311 | $ | 42,305 | $ | 62,034 | $ | 11,876 | $ | 25,719 | $ | 43,505 | $ | 10,045 | $ | 965 | $ | — | $ | 341,760 | ||||||||||||
Financing receivable evaluated for impairment by portfolio segment | The following tables detail the LHFI that were evaluated for impairment by loan classification at March 31, 2015 and December 31, 2014. | |||||||||||||||||||||||||||||||
At March 31, 2015 | ||||||||||||||||||||||||||||||||
Unpaid | ||||||||||||||||||||||||||||||||
principal | Recorded | Related | ||||||||||||||||||||||||||||||
(In thousands) | balance | investment | allowance | |||||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,486 | $ | 5,447 | $ | — | ||||||||||||||||||||||||||
Construction and land development | 289 | 254 | — | |||||||||||||||||||||||||||||
Commercial and industrial | 5,575 | 5,270 | — | |||||||||||||||||||||||||||||
Tax certificates | 988 | 550 | — | |||||||||||||||||||||||||||||
Total: | $ | 12,338 | $ | 11,521 | $ | — | ||||||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 1,130 | $ | 880 | $ | 231 | ||||||||||||||||||||||||||
Construction and land development | 546 | 370 | 80 | |||||||||||||||||||||||||||||
Commercial and industrial | 2,500 | 380 | 1 | |||||||||||||||||||||||||||||
Residential real estate | 1,041 | 989 | 30 | |||||||||||||||||||||||||||||
Leasing | 77 | 77 | 36 | |||||||||||||||||||||||||||||
Tax certificates | 4,336 | 284 | 8 | |||||||||||||||||||||||||||||
Total: | $ | 9,630 | $ | 2,980 | $ | 386 | ||||||||||||||||||||||||||
At and for the year ended December 31, 2014 | ||||||||||||||||||||||||||||||||
Unpaid | Average | Interest | ||||||||||||||||||||||||||||||
principal | Recorded | Related | recorded | income | ||||||||||||||||||||||||||||
(In thousands) | balance | investment | allowance | investment | recognized | |||||||||||||||||||||||||||
With no related allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,632 | $ | 6,113 | $ | — | $ | 5,089 | $ | 98 | ||||||||||||||||||||||
Construction and land development | 894 | 683 | — | 2,233 | 71 | |||||||||||||||||||||||||||
Commercial and industrial | 5,358 | 5,118 | — | 5,786 | 208 | |||||||||||||||||||||||||||
Tax certificates | 1,120 | 890 | — | 867 | — | |||||||||||||||||||||||||||
Total: | $ | 14,004 | $ | 12,804 | $ | — | $ | 13,975 | $ | 377 | ||||||||||||||||||||||
With an allowance recorded: | ||||||||||||||||||||||||||||||||
Commercial real estate | $ | 926 | $ | 682 | $ | 200 | $ | 529 | $ | — | ||||||||||||||||||||||
Construction and land development | — | — | — | 145 | — | |||||||||||||||||||||||||||
Commercial and industrial | 2,500 | 728 | 301 | 688 | — | |||||||||||||||||||||||||||
Residential real estate | 1,068 | 959 | 28 | 864 | — | |||||||||||||||||||||||||||
Leases | 95 | 95 | 80 | 108 | — | |||||||||||||||||||||||||||
Tax certificates | 4,835 | 810 | 432 | 145 | — | |||||||||||||||||||||||||||
Total: | $ | 9,424 | $ | 3,274 | $ | 1,041 | $ | 2,479 | $ | — | ||||||||||||||||||||||
The following tables present the average recorded investment in impaired LHFI and the related interest income recognized for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||||
For the three months ended March 31, 2015 | ||||||||||||||||||||||||||||||||
Average | Interest | |||||||||||||||||||||||||||||||
recorded | income | |||||||||||||||||||||||||||||||
(In thousands) | investment | recognized | ||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,643 | $ | 167 | ||||||||||||||||||||||||||||
Construction and land development | 642 | — | ||||||||||||||||||||||||||||||
Commercial and industrial | 5,779 | 49 | ||||||||||||||||||||||||||||||
Residential real estate | 962 | — | ||||||||||||||||||||||||||||||
Leasing | 68 | — | ||||||||||||||||||||||||||||||
Tax certificates | 1,104 | — | ||||||||||||||||||||||||||||||
Total: | $ | 15,198 | $ | 216 | ||||||||||||||||||||||||||||
For the three months ended March 31, 2014 | ||||||||||||||||||||||||||||||||
Average | Interest | |||||||||||||||||||||||||||||||
recorded | income | |||||||||||||||||||||||||||||||
(In thousands) | investment | recognized | ||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,192 | $ | 31 | ||||||||||||||||||||||||||||
Construction and land development | 3,706 | 14 | ||||||||||||||||||||||||||||||
Commercial and industrial | 7,406 | 56 | ||||||||||||||||||||||||||||||
Residential real estate | 710 | — | ||||||||||||||||||||||||||||||
Leasing | 163 | — | ||||||||||||||||||||||||||||||
Tax certificates | 590 | — | ||||||||||||||||||||||||||||||
Total: | $ | 17,767 | $ | 101 | ||||||||||||||||||||||||||||
Other_Real_Estate_Owned_Tables
Other Real Estate Owned (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Other Real Estate Owned [Abstract] | ||||||||||
Details of changes in other real estate owned | ||||||||||
For the three months ended March 31, 2015 | ||||||||||
(In thousands) | Loans | Tax Liens | Total | |||||||
Beginning balance | $ | 349 | $ | 9,430 | $ | 9,779 | ||||
Net proceeds from sales | -26 | -622 | -648 | |||||||
Net gains on sales | 5 | 275 | 280 | |||||||
Transfers in | — | 1,087 | 1,087 | |||||||
Cash additions | — | 173 | 173 | |||||||
Impairment charge | — | -130 | -130 | |||||||
Ending balance | $ | 328 | $ | 10,213 | $ | 10,541 | ||||
For the year ended December 31, 2014 | ||||||||||
(In thousands) | Loans | Tax Liens | Total | |||||||
Beginning balance | $ | 1,725 | $ | 7,892 | $ | 9,617 | ||||
Net proceeds from sales | -1,336 | -2,970 | -4,306 | |||||||
Net gain on sales | 59 | 684 | 743 | |||||||
Transfers in | — | 2,919 | 2,919 | |||||||
Cash additions | — | 1,330 | 1,330 | |||||||
Impairment charge | -99 | -425 | -524 | |||||||
Ending balance | $ | 349 | $ | 9,430 | $ | 9,779 | ||||
Deposits_Tables
Deposits (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Deposits [Abstract] | |||||||
Deposits summary | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2015 | 2014 | |||||
Demand | $ | 76,808 | $ | 73,665 | |||
NOW | 44,229 | 46,515 | |||||
Money Market | 157,378 | 166,224 | |||||
Savings | 20,112 | 18,721 | |||||
Time deposits (over $100) | 87,811 | 87,209 | |||||
Time deposits (under $100) | 133,948 | 138,091 | |||||
Total deposits | $ | 520,286 | $ | 530,425 | |||
Borrowings_and_Subordinated_De1
Borrowings and Subordinated Debentures (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Borrowings and Subordinated Debentures | ||||||||||||
FHLB borrowings allocated by the year in which they mature with their corresponding weighted average rates | ||||||||||||
As of | As of | |||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||
(Dollars in thousands) | Amount | Rate | Amount | Rate | ||||||||
Advances maturing in | ||||||||||||
2015 | $ | 10,000 | 0.71 | % | $ | 10,000 | 0.71 | % | ||||
2016 | 10,000 | 1.11 | % | 10,000 | 1.11 | % | ||||||
2017 | 25,000 | 1.46 | % | 25,000 | 1.46 | % | ||||||
2018 | 10,000 | 2.01 | % | 10,000 | 2.01 | % | ||||||
Total FHLB borrowings | $ | 55,000 | $ | 55,000 | ||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activity (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||
Interest rate swap, designated as cash flow hedge, effects of derivative in balance sheet | |||||||||||
As of March 31, 2015 | |||||||||||
Notional | |||||||||||
Contract | Balance Sheet | Expiration | |||||||||
(In thousands) | Amount | Fair Value | Location | Date | |||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | 15,000 | $ | -467 | Other liabilities | 24-Jun-21 | |||||
Total: | $ | 15,000 | $ | -467 | |||||||
As of December 31, 2014 | |||||||||||
Notional | |||||||||||
Contract | Balance Sheet | Expiration | |||||||||
(In thousands) | Amount | Fair Value | Location | Date | |||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | 15,000 | $ | -187 | Other liabilities | 24-Jun-21 | |||||
Total: | $ | 15,000 | $ | -187 | |||||||
Interest rate swap, designated as cash flow hedge, effects of derivative in OCI | |||||||||||
For the three months ended March 31, 2015 | |||||||||||
Amount of Loss | Location of Loss | Amount of Loss | |||||||||
Recognized | Recognized | Recognized | |||||||||
in OCI | in Income | in Income | |||||||||
on Derivatives | on Derivatives | on Derivatives | |||||||||
(In thousands) | (Effective Portion) | (Ineffective Portion) | (Ineffective Portion) | ||||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | -308 | Not Applicable | $ | — | ||||||
Total: | $ | -308 | $ | — | |||||||
For the year ended December 31, 2014 | |||||||||||
Amount of Loss | Location of Loss | Amount of Loss | |||||||||
Recognized | Recognized | Recognized | |||||||||
in OCI | in Income | in Income | |||||||||
on Derivatives | on Derivatives | on Derivatives | |||||||||
(In thousands) | (Effective Portion) | (Ineffective Portion) | (Ineffective Portion) | ||||||||
Derivatives designated as hedging instruments | |||||||||||
Interest rate swaps: | |||||||||||
Effective June 24, 2016 | $ | -187 | Not Applicable | $ | — | ||||||
Total: | $ | -187 | $ | — | |||||||
Commitments_Contingencies_and_1
Commitments, Contingencies, and Concentrations (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Commitments, Contingencies, and Concentrations [Abstract] | |||||||
Contracts of financial instruments represent credit risk | |||||||
March 31, | December 31, | ||||||
(In thousands) | 2015 | 2014 | |||||
Financial instruments whose contract amounts represent credit risk: | |||||||
Open-end lines of credit | $ | 44,411 | $ | 48,929 | |||
Commitments to extend credit | 11,330 | 6,430 | |||||
Standby letters of credit and financial guarantees written | 144 | 371 | |||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Regulatory Capital Requirements [Abstract] | |||||||||||||||||
Royal Bank's capital ratios | |||||||||||||||||
At March 31, 2015 | |||||||||||||||||
To be well capitalized | |||||||||||||||||
For capital | under prompt corrective | ||||||||||||||||
Actual | adequacy purposes | action provision | |||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Total capital (to risk-weighted assets) | $ | 80,591 | 16.22 | % | $ | 39,745 | 8.00 | % | $ | 49,681 | 10.00 | % | |||||
Tier 1 capital (to risk-weighted assets) | $ | 74,323 | 14.96 | % | $ | 29,809 | 6.00 | % | $ | 39,745 | 8.00 | % | |||||
Tier 1 capital (to average assets, leverage) | $ | 74,323 | 10.34 | % | $ | 28,765 | 4.00 | % | $ | 35,957 | 5.00 | % | |||||
Common equity Tier 1 (to risk-weighted assets) | $ | 73,937 | 10.62 | % | $ | 22,356 | 4.50 | % | $ | 32,293 | 6.50 | % | |||||
Adjustments to net loss as well as the capital ratios | |||||||||||||||||
For the three | |||||||||||||||||
months ended | |||||||||||||||||
(In thousands) | 31-Mar-15 | ||||||||||||||||
RAP net loss | $ | -1,192 | |||||||||||||||
Tax lien adjustment, net of noncontrolling interest | 2,790 | ||||||||||||||||
U.S. GAAP net income | $ | 1,598 | |||||||||||||||
At March 31, 2015 | |||||||||||||||||
As reported | As adjusted | ||||||||||||||||
under RAP | for U.S. GAAP | ||||||||||||||||
Total capital (to risk-weighted assets) | 16.22 | % | 16.70 | % | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 14.96 | % | 15.44 | % | |||||||||||||
Tier 1 capital (to average assets, leverage) | 10.34 | % | 10.69 | % | |||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 10.62 | % | 11.12 | % | |||||||||||||
Company capital ratios | |||||||||||||||||
At March 31, 2015 | |||||||||||||||||
To be well capitalized | |||||||||||||||||
For capital | under the Federal | ||||||||||||||||
Actual | adequacy purposes | Reserve's regulations | |||||||||||||||
(Dollars in thousands) | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Total capital (to risk-weighted assets) | $ | 97,591 | 19.44 | % | $ | 40,150 | 8.00 | % | $ | 50,188 | 10.00 | % | |||||
Tier 1 capital (to risk-weighted assets) | $ | 88,485 | 17.63 | % | $ | 30,113 | 6.00 | % | $ | 30,113 | 6.00 | % | |||||
Tier 1 capital (to average assets, leverage) | $ | 88,485 | 12.17 | % | $ | 29,075 | 4.00 | % | N/A | N/A | |||||||
Common equity Tier 1 (to risk-weighted assets) | $ | 47,019 | 9.37 | % | $ | 22,585 | 4.50 | % | N/A | N/A | |||||||
Adjustment to Company's capital ratio under RAP | |||||||||||||||||
For the three | |||||||||||||||||
months ended | |||||||||||||||||
(In thousands) | 31-Mar-15 | ||||||||||||||||
U.S. GAAP net income | $ | 1,591 | |||||||||||||||
Tax lien adjustment, net of noncontrolling interest | -2,790 | ||||||||||||||||
RAP net loss | $ | -1,199 | |||||||||||||||
At March 31, 2015 | |||||||||||||||||
As reported | As adjusted | ||||||||||||||||
under U.S. GAAP | for RAP | ||||||||||||||||
Total capital (to risk-weighted assets) | 19.44 | % | 18.98 | % | |||||||||||||
Tier 1 capital (to risk-weighted assets) | 17.63 | % | 16.98 | % | |||||||||||||
Tier 1 capital (to average assets, leverage) | 12.17 | % | 11.70 | % | |||||||||||||
Common equity Tier 1 (to risk-weighted assets) | 9.37 | % | 8.85 | % | |||||||||||||
Pension_Plan_Tables
Pension Plan (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Pension Plan [Abstract] | |||||||
Schedule of Net Benefit Costs [Table Text Block] | |||||||
For the three months ended | |||||||
March 31, | |||||||
(In thousands) | 2015 | 2014 | |||||
Service cost | $ | 16 | $ | 15 | |||
Interest cost | 134 | 155 | |||||
Amortization of prior service cost | 23 | 22 | |||||
Amortization of actuarial loss | 47 | 32 | |||||
Net periodic benefit cost | $ | 220 | $ | 224 | |||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Income (Loss) Per Common Share [Abstract] | |||||||||
Schedule of computation of basic and diluted earning per share | Note 14.Earnings Per Common Share | ||||||||
We follow 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. We have 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 ended March 31, 2015 and 2014, 317,735 and 201,914 options to purchase shares of common stock, respectively, were anti-dilutive in the computation of diluted EPS, as the exercise price exceeded average market price in each of those periods. Additionally warrants to purchase 1,368,040 shares of Class A common stock were also anti-dilutive. | |||||||||
Basic and diluted EPS are calculated as follows: | |||||||||
Three months ended March 31, 2015 | |||||||||
Income | Average shares | Per share | |||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||
Basic EPS | |||||||||
Income available to common shareholders | $ | 1,167 | 30,036 | $ | 0.04 | ||||
Diluted EPS | |||||||||
Income available to common shareholders | $ | 1,167 | 30,042 | $ | 0.04 | ||||
Three months ended March 31, 2014 | |||||||||
Income | Average shares | Per share | |||||||
(In thousands, except for per share data) | (numerator) | (denominator) | Amount | ||||||
Basic and Diluted EPS | |||||||||
Income available to common shareholders | $ | 834 | 13,316 | $ | 0.06 | ||||
Comprehensive_Income_Loss_Tabl
Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||
Three months ended March 31, 2015 | ||||||||||
Tax | ||||||||||
Before tax | expense | Net of tax | ||||||||
(In thousands) | amount | (benefit) | amount | |||||||
Unrealized gains on investment securities: | ||||||||||
Unrealized holding gains arising during period | $ | 1,844 | $ | 749 | $ | 1,095 | ||||
Less reclassification adjustment for gains | ||||||||||
realized in net income | 187 | 64 | 123 | |||||||
Unrealized gains on investment securities | 1,657 | 685 | 972 | |||||||
Unrecognized benefit obligation expense: | ||||||||||
Less reclassification adjustment for amortization | -17 | — | -17 | |||||||
Unrecognized benefit obligation | -17 | — | -17 | |||||||
Unrealized loss on derivative instrument | -280 | -159 | -121 | |||||||
Other comprehensive income, net | $ | 1,360 | $ | 526 | $ | 834 | ||||
Three months ended March 31, 2014 | ||||||||||
Tax | ||||||||||
Before tax | expense | Net of tax | ||||||||
(In thousands) | amount | (benefit) | amount | |||||||
Unrealized gains on investment securities: | ||||||||||
Unrealized holding gains arising during period | $ | 3,165 | $ | 968 | $ | 2,197 | ||||
Unrealized gains on investment securities | 3,165 | 968 | 2,197 | |||||||
Unrecognized benefit obligation expense: | ||||||||||
Less reclassification adjustment for amortization | -28 | -10 | -18 | |||||||
Unrecognized benefit obligation | 28 | 10 | 18 | |||||||
Other comprehensive income, net | $ | 3,193 | $ | 978 | $ | 2,215 | ||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ||||||||||||||||
Schedule of Financial Assets Measured at Fair Value on Recurring Basis | ||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of March 31, 2015 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets: | ||||||||||||||||
Investment securities available for sale | ||||||||||||||||
U.S. government agencies | $ | — | $ | 25,719 | $ | — | $ | 25,719 | ||||||||
Mortgage-backed securities-residential | — | 20,207 | — | 20,207 | ||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||
Issued or guaranteed by U.S. government agencies | — | 152,605 | — | 152,605 | ||||||||||||
Non-agency | — | 3,528 | — | 3,528 | ||||||||||||
Corporate bonds | — | 11,778 | — | 11,778 | ||||||||||||
Municipal bonds | — | 10,233 | — | 10,233 | ||||||||||||
Other securities | — | — | 3,666 | 3,666 | ||||||||||||
Common stocks | 26 | — | — | 26 | ||||||||||||
Total investment securities available for sale | $ | 26 | $ | 224,070 | $ | 3,666 | $ | 227,762 | ||||||||
Liabilities: | ||||||||||||||||
Derivative instruments | ||||||||||||||||
Interest rate swaps | $ | — | $ | 467 | $ | — | $ | 467 | ||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of December 31, 2014 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Investment securities available for sale | ||||||||||||||||
U.S. government agencies | $ | — | $ | 25,289 | $ | — | $ | 25,289 | ||||||||
Mortgage-backed securities-residential | — | 22,387 | — | 22,387 | ||||||||||||
Collateralized mortgage obligations: | ||||||||||||||||
Issued or guaranteed by U.S. government agencies | — | 168,977 | — | 168,977 | ||||||||||||
Non-agency | — | 3,731 | — | 3,731 | ||||||||||||
Corporate bonds | — | 15,727 | — | 15,727 | ||||||||||||
Municipal bonds | — | 10,173 | — | 10,173 | ||||||||||||
Other securities | — | — | 4,034 | 4,034 | ||||||||||||
Common stocks | 50 | — | — | 50 | ||||||||||||
Total investment securities available for sale | $ | 50 | $ | 246,284 | $ | 4,034 | $ | 250,368 | ||||||||
Liabilities: | ||||||||||||||||
Derivative instruments | ||||||||||||||||
Interest rate swaps | $ | — | $ | 187 | $ | — | $ | 187 | ||||||||
Additional Information About Assets Measured at Fair Value on a Recurring Basis, Level 3 Inputs | ||||||||||||||||
(In thousands) | Other securities | |||||||||||||||
Investment Securities Available for Sale | 2015 | 2014 | ||||||||||||||
Beginning balance January 1, | $ | 4,034 | $ | 4,625 | ||||||||||||
Total gains/(losses) - (realized/unrealized): | ||||||||||||||||
Included in earnings-gain on sale | 62 | — | ||||||||||||||
Included in other comprehensive income | -339 | 284 | ||||||||||||||
Purchases | 4 | — | ||||||||||||||
Sales and calls | -95 | -129 | ||||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||
Ending balance March 31, | $ | 3,666 | $ | 4,780 | ||||||||||||
Financial Assets Measured at Fair Value on Nonrecurring Basis | ||||||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of March 31, 2015 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 2,611 | $ | 2,611 | ||||||||
Other real estate owned | — | — | 3,758 | 3,758 | ||||||||||||
Fair Value Measurements Using: | ||||||||||||||||
Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | Significant | ||||||||||||||
Identical | Observable | Unobservable | ||||||||||||||
As of December 31, 2014 | Assets | Inputs | Inputs | |||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Fair Value | ||||||||||||
Assets | ||||||||||||||||
Impaired loans and leases | $ | — | $ | — | $ | 2,812 | $ | 2,812 | ||||||||
Other real estate owned | — | — | 3,418 | 3,418 | ||||||||||||
Schedule of quantitative information about assets measured at fair value on nonrecurring basis | ||||||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
As of March 31, 2015 | Valuation | Range | ||||||||||||||
(In thousands) | Fair Value | Techniques | Unobservable Input | (Weighted Average) | ||||||||||||
Impaired loans and leases | $ | 2,611 | Appraisal of | Appraisal adjustments | 0.0% | - | -40.00% | (-24.6%) | ||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -24.00% | (-7.7%) | |||||||||||
Other real estate owned | 3,758 | Appraisal of | Appraisal adjustments | 0.0% | - | -73.30% | (-13.3%) | |||||||||
collateral (1) | Liquidation expenses | -14.70% | (-14.7%) | |||||||||||||
Qualitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
As of December 31, 2014 | Valuation | Range | ||||||||||||||
(In thousands) | Fair Value | Techniques | Unobservable Input | (Weighted Average) | ||||||||||||
Impaired loans and leases | $ | 2,812 | Appraisal of | Appraisal adjustments | 0.0% | - | -20.00% | (-20.0%) | ||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -24.00% | (-7.8%) | |||||||||||
Other real estate owned | 3,418 | Appraisal of | Appraisal adjustments | 0.0% | - | -68.60% | (-14.5%) | |||||||||
collateral (1) | Liquidation expenses | 0.0% | - | -14.70% | (-14.7%) | |||||||||||
-1 | Appraisals may be adjusted for qualitative factors such as interior condition of the property and liquidation expenses. | |||||||||||||||
Fair Value by Balance Sheet Grouping Instruments | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
At March 31, 2015 | ||||||||||||||||
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 | $ | 41,618 | $ | 41,618 | $ | 41,618 | $ | — | $ | — | ||||||
Investment securities available for sale | 227,762 | 227,762 | 26 | 224,070 | 3,666 | |||||||||||
Other investment | 2,250 | 2,250 | — | — | 2,250 | |||||||||||
Federal Home Loan Bank stock | 2,622 | 2,622 | — | — | 2,622 | |||||||||||
Loans, net | 407,789 | 404,770 | — | — | 404,770 | |||||||||||
Accrued interest receivable | 4,873 | 4,873 | — | 4,873 | — | |||||||||||
Financial Liabilities: | ||||||||||||||||
Demand deposits | 76,808 | 76,808 | — | 76,808 | — | |||||||||||
NOW and money markets | 201,607 | 201,607 | — | 201,607 | — | |||||||||||
Savings | 20,112 | 20,112 | — | 20,112 | — | |||||||||||
Time deposits | 221,759 | 219,851 | — | 219,851 | — | |||||||||||
Long-term borrowings | 92,312 | 89,652 | — | 89,652 | — | |||||||||||
Subordinated debt | 25,774 | 25,649 | — | 25,649 | — | |||||||||||
Accrued interest payable | 1,270 | 1,270 | — | 1,270 | — | |||||||||||
Derivative Instruments: | ||||||||||||||||
Interest rate swaps | 467 | 467 | — | 467 | — | |||||||||||
Fair Value Measurements | ||||||||||||||||
At December 31, 2014 | ||||||||||||||||
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 | $ | 30,790 | $ | 30,790 | $ | 30,790 | $ | — | $ | — | ||||||
Investment securities available for sale | 250,368 | 250,368 | 50 | 246,284 | 4,034 | |||||||||||
Other investment | 2,250 | 2,250 | — | — | 2,250 | |||||||||||
Federal Home Loan Bank stock | 2,622 | 2,622 | — | — | 2,622 | |||||||||||
Loans, net | 403,424 | 400,979 | — | — | 400,979 | |||||||||||
Accrued interest receivable | 5,270 | 5,270 | — | 5,270 | — | |||||||||||
Financial Liabilities: | ||||||||||||||||
Demand deposits | 73,665 | 73,665 | — | 73,665 | — | |||||||||||
NOW and money markets | 212,739 | 212,739 | — | 212,739 | — | |||||||||||
Savings | 18,721 | 18,721 | — | 18,721 | — | |||||||||||
Time deposits | 225,300 | 223,788 | — | 223,788 | — | |||||||||||
Long-term borrowings | 92,426 | 90,022 | — | 90,022 | — | |||||||||||
Subordinated debt | 25,774 | 25,091 | — | 25,091 | — | |||||||||||
Accrued interest payable | 726 | 726 | — | 726 | — | |||||||||||
Derivative Instruments: | ||||||||||||||||
Interest rate swaps | 187 | 187 | — | 187 | — | |||||||||||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Segment Information [Abstract] | ||||||||||
Selected segment information and reconciliations to consolidated financial information | ||||||||||
Three months ended March 31, 2015 | ||||||||||
Community | ||||||||||
(In thousands) | Banking | Tax Liens | Consolidated | |||||||
Total assets | $ | 706,252 | $ | 18,953 | $ | 725,205 | ||||
Total deposits | $ | 520,286 | $ | — | $ | 520,286 | ||||
Interest income | $ | 7,037 | $ | 243 | $ | 7,280 | ||||
Interest expense | 1,344 | 227 | 1,571 | |||||||
Net interest income | $ | 5,693 | $ | 16 | $ | 5,709 | ||||
(Credit) provision for loan and lease losses | -661 | 81 | -580 | |||||||
Total non-interest income | 517 | 330 | 847 | |||||||
Total non-interest expense | 4,855 | 520 | 5,375 | |||||||
Income tax expense (benefit) | — | — | — | |||||||
Net income (loss) | $ | 2,016 | $ | -255 | $ | 1,761 | ||||
Noncontrolling interest | $ | 189 | $ | -19 | $ | 170 | ||||
Net income (loss) attributable to Royal Bancshares | $ | 1,827 | $ | -236 | $ | 1,591 | ||||
Three months ended March 31, 2014 | ||||||||||
Community | ||||||||||
(In thousands) | Banking | Tax Liens | Consolidated | |||||||
Total assets | $ | 709,911 | $ | 24,499 | $ | 734,410 | ||||
Total deposits | $ | 532,632 | $ | — | $ | 532,632 | ||||
Interest income | $ | 6,796 | $ | 355 | $ | 7,151 | ||||
Interest expense | 1,320 | 305 | 1,625 | |||||||
Net interest income | $ | 5,476 | $ | 50 | $ | 5,526 | ||||
(Credit) provision for loan and lease losses | -737 | 98 | -639 | |||||||
Total non-interest income | 566 | 206 | 772 | |||||||
Total non-interest expense | 4,937 | 385 | 5,322 | |||||||
Income tax expense (benefit) | — | — | — | |||||||
Net income (loss) | $ | 1,842 | $ | -227 | $ | 1,615 | ||||
Noncontrolling interest | $ | 156 | $ | -39 | $ | 117 | ||||
Net income (loss) attributable to Royal Bancshares | $ | 1,686 | $ | -188 | $ | 1,498 | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2015 | |
trust | |
Noncontrolling Interest [Line Items] | |
Number of Delaware trust affiliates | 2 |
Royal Bank [Member] | Crusader Servicing Corporation [Member] | |
Noncontrolling Interest [Line Items] | |
Total percentage of ownership interest (in hundredths) | 80.00% |
Royal Bank [Member] | Royal Bank America Leasing LP | |
Noncontrolling Interest [Line Items] | |
Total percentage of ownership interest (in hundredths) | 60.00% |
Regulatory_Matters_and_Signifi1
Regulatory Matters and Significant Risks or Uncertainties - Dividend and Interest Restrictions (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Jun. 19, 2014 | Aug. 13, 2009 | Mar. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding (in shares) | 18,856 | 18,856 | ||
Series A Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Series A Preferred stock on which quarterly dividend suspended | $30,407 | |||
Preferred stock, shares outstanding (in shares) | 30,407 | |||
Preferred stock dividend in arrears | $7,100,000 | |||
Auction price (in dollars per share) | $1,207.11 | |||
Shares allocated for repurchase (in shares) | 11,551 |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
item | item | |
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | $223,833 | $248,096 |
Gross unrealized gains | 4,966 | 4,334 |
Gross unrealized losses | -1,037 | -2,062 |
Available-for-sale Securities, Total | 227,762 | 250,368 |
Amortized cost [Abstract] | ||
Within 1 year | 1,000 | |
After 1 but within 5 years | 12,399 | |
After 5 but within 10 years | 25,309 | |
After 10 years | 9,112 | |
Total available for sale debt securities | 221,153 | |
No contractual maturity | 2,680 | |
Total available for sale securities | 223,833 | 248,096 |
Fair value [Abstract] | ||
Within 1 year | 1,012 | |
After 1 but within 5 years | 12,400 | |
After 5 but within 10 years | 25,325 | |
After 10 years | 8,993 | |
Total available for sale debt securities | 224,070 | |
No contractual maturity | 3,692 | |
Fair value | 227,762 | 250,368 |
Proceeds from sales of AFS investment securities | 18,698 | |
Gross realized gains and losses on the sale of securities recognized in earnings [Abstract] | ||
Gross realized gains | 187 | |
Net realized gains | 187 | |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 15,524 | 47,882 |
12 months or longer, Fair value | 59,347 | 77,070 |
Total, Fair value | 74,871 | 124,952 |
Less than 12 months, Gross unrealized losses | -75 | -250 |
12 months or longer, Gross unrealized losses | -962 | -1,812 |
Total, Gross unrealized losses | -1,037 | -2,062 |
Less than 12 months, number of positions | 9 | 20 |
12 months or longer, number of positions | 20 | 28 |
Total , number of positions | 29 | 48 |
Fair value | 227,762 | 250,368 |
Number of securities in an unrealized loss position for less than twelve months | 9 | 20 |
Number of securities in an unrealized loss position for more than twelve months | 20 | 28 |
U.S. Government Agencies [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 26,124 | 26,123 |
Gross unrealized losses | -405 | -834 |
Available-for-sale Securities, Total | 25,719 | 25,289 |
Amortized cost [Abstract] | ||
Total available for sale securities | 26,124 | 26,123 |
Fair value [Abstract] | ||
Fair value | 25,719 | 25,289 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
12 months or longer, Fair value | 25,719 | 25,289 |
Total, Fair value | 25,719 | 25,289 |
12 months or longer, Gross unrealized losses | -405 | -834 |
Total, Gross unrealized losses | -405 | -834 |
12 months or longer, number of positions | 8 | 8 |
Total , number of positions | 8 | 8 |
Fair value | 25,719 | 25,289 |
Number of investment securities | 8 | |
Number of securities in an unrealized loss position for more than twelve months | 8 | 8 |
Mortgage-backed Securities-residential [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 19,835 | 22,073 |
Gross unrealized gains | 409 | 375 |
Gross unrealized losses | -37 | -61 |
Available-for-sale Securities, Total | 20,207 | 22,387 |
Amortized cost [Abstract] | ||
No contractual maturity | 19,835 | |
Total available for sale securities | 19,835 | 22,073 |
Fair value [Abstract] | ||
No contractual maturity | 20,207 | |
Fair value | 20,207 | 22,387 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
12 months or longer, Fair value | 2,859 | 8,913 |
Total, Fair value | 2,859 | 8,913 |
12 months or longer, Gross unrealized losses | -37 | -61 |
Total, Gross unrealized losses | -37 | -61 |
12 months or longer, number of positions | 1 | 3 |
Total , number of positions | 1 | 3 |
Fair value | 20,207 | 22,387 |
Number of investment securities | 1 | |
Number of securities in an unrealized loss position for more than twelve months | 1 | 3 |
Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 150,014 | 167,711 |
Gross unrealized gains | 3,135 | 2,350 |
Gross unrealized losses | -544 | -1,084 |
Available-for-sale Securities, Total | 152,605 | 168,977 |
Amortized cost [Abstract] | ||
No contractual maturity | 150,014 | |
Total available for sale securities | 150,014 | 167,711 |
Fair value [Abstract] | ||
No contractual maturity | 152,605 | |
Fair value | 152,605 | 168,977 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 11,216 | 36,757 |
12 months or longer, Fair value | 28,775 | 38,798 |
Total, Fair value | 39,991 | 75,555 |
Less than 12 months, Gross unrealized losses | -36 | -204 |
12 months or longer, Gross unrealized losses | -508 | -880 |
Total, Gross unrealized losses | -544 | -1,084 |
Less than 12 months, number of positions | 4 | 12 |
12 months or longer, number of positions | 9 | 12 |
Total , number of positions | 13 | 24 |
Fair value | 152,605 | 168,977 |
Number of investment securities | 13 | |
Number of securities in an unrealized loss position for less than twelve months | 4 | 12 |
Number of securities in an unrealized loss position for more than twelve months | 9 | 12 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 3,484 | 3,738 |
Gross unrealized gains | 44 | 7 |
Gross unrealized losses | -14 | |
Available-for-sale Securities, Total | 3,528 | 3,731 |
Amortized cost [Abstract] | ||
Total available for sale debt securities | 3,484 | |
Total available for sale securities | 3,484 | 3,738 |
Fair value [Abstract] | ||
No contractual maturity | 3,528 | |
Fair value | 3,528 | 3,731 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 1,432 | |
Total, Fair value | 1,432 | |
Less than 12 months, Gross unrealized losses | -14 | |
Total, Gross unrealized losses | -14 | |
Less than 12 months, number of positions | 1 | |
Total , number of positions | 1 | |
Fair value | 3,528 | 3,731 |
Number of securities in an unrealized loss position for less than twelve months | 1 | |
Corporate Bonds [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 11,595 | 15,617 |
Gross unrealized gains | 199 | 144 |
Gross unrealized losses | -16 | -34 |
Available-for-sale Securities, Total | 11,778 | 15,727 |
Amortized cost [Abstract] | ||
Total available for sale securities | 11,595 | 15,617 |
Fair value [Abstract] | ||
Fair value | 11,778 | 15,727 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 1,995 | 8,054 |
12 months or longer, Fair value | 989 | 991 |
Total, Fair value | 2,984 | 9,045 |
Less than 12 months, Gross unrealized losses | -5 | -25 |
12 months or longer, Gross unrealized losses | -11 | -9 |
Total, Gross unrealized losses | -16 | -34 |
Less than 12 months, number of positions | 2 | 5 |
12 months or longer, number of positions | 1 | 1 |
Total , number of positions | 3 | 6 |
Fair value | 11,778 | 15,727 |
Number of investment securities | 3 | |
Number of securities in an unrealized loss position for less than twelve months | 2 | 5 |
Number of securities in an unrealized loss position for more than twelve months | 1 | 1 |
Number of securities considered not to be other than temporarily impaired | 3 | |
Municipal Bonds [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 10,101 | 10,117 |
Gross unrealized gains | 148 | 91 |
Gross unrealized losses | -16 | -35 |
Available-for-sale Securities, Total | 10,233 | 10,173 |
Amortized cost [Abstract] | ||
Total available for sale securities | 10,101 | 10,117 |
Fair value [Abstract] | ||
Fair value | 10,233 | 10,173 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 2,073 | 1,639 |
12 months or longer, Fair value | 1,005 | 3,079 |
Total, Fair value | 3,078 | 4,718 |
Less than 12 months, Gross unrealized losses | -15 | -7 |
12 months or longer, Gross unrealized losses | -1 | -28 |
Total, Gross unrealized losses | -16 | -35 |
Less than 12 months, number of positions | 2 | 2 |
12 months or longer, number of positions | 1 | 4 |
Total , number of positions | 3 | 6 |
Fair value | 10,233 | 10,173 |
Number of investment securities | 3 | |
Number of securities in an unrealized loss position for less than twelve months | 2 | 2 |
Number of securities in an unrealized loss position for more than twelve months | 1 | 4 |
Private Equity Funds [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 2,654 | 2,684 |
Gross unrealized gains | 1,031 | 1,350 |
Gross unrealized losses | -19 | |
Available-for-sale Securities, Total | 3,666 | 4,034 |
Amortized cost [Abstract] | ||
Total available for sale securities | 2,654 | 2,684 |
Fair value [Abstract] | ||
Fair value | 3,666 | 4,034 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Less than 12 months, Fair value | 240 | |
Total, Fair value | 240 | |
Less than 12 months, Gross unrealized losses | -19 | |
Total, Gross unrealized losses | -19 | |
Less than 12 months, number of positions | 1 | |
Total , number of positions | 1 | |
Fair value | 3,666 | 4,034 |
Number of securities in an unrealized loss position for less than twelve months | 1 | |
Number of securities invested in real estate funds | 6 | |
Number of securities recording an impairment charge | 1 | |
Common Stock [Member] | ||
Carrying value and fair value of available for sale investment securities [Abstract] | ||
Total available for sale securities | 26 | 33 |
Gross unrealized gains | 17 | |
Available-for-sale Securities, Total | 26 | 50 |
Amortized cost [Abstract] | ||
Total available for sale securities | 26 | 33 |
Fair value [Abstract] | ||
Fair value | 26 | 50 |
Available for sale securities, continuous unrealized loss position [Abstract] | ||
Fair value | $26 | $50 |
Loans_and_Leases_Major_classif
Loans and Leases - Major classifications of LHFI (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | $358,658 | $418,686 | $415,132 |
Proceeds from sales of loans and leases | 1,798 | ||
Commercial real estate [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 150,111 | 194,277 | 175,038 |
Construction and land development [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 45,751 | 18,610 | 45,662 |
Commercial and industrial [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 68,664 | 83,240 | 76,489 |
Multi-family [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 11,876 | 17,594 | 13,823 |
Residential real estate [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 26,465 | 43,416 | 42,992 |
Leases [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 43,644 | 53,473 | 51,583 |
Tax certificates [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | 11,182 | 5,608 | 7,191 |
Consumer [Member] | |||
Major classifications of loans held for investment [Abstract] | |||
Total LHFI, net of unearned income | $965 | $2,468 | $2,354 |
Loans_and_Leases_Risk_Ratings_
Loans and Leases - Risk Ratings for Each Loan Portfolio Segment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | $418,686 | $415,132 | $358,658 |
Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 194,277 | 175,038 | 150,111 |
Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 18,610 | 45,662 | 45,751 |
Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 83,240 | 76,489 | 68,664 |
Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 17,594 | 13,823 | 11,876 |
Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 43,416 | 42,992 | 26,465 |
Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 53,473 | 51,583 | 43,644 |
Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 5,608 | 7,191 | 11,182 |
Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,468 | 2,354 | 965 |
Pass [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 333,036 | 327,232 | |
Pass [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 153,647 | 140,045 | |
Pass [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,044 | 12,861 | |
Pass [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 57,043 | 60,500 | |
Pass [Member] | Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 16,781 | 12,995 | |
Pass [Member] | Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 42,427 | 42,033 | |
Pass [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 52,933 | 51,113 | |
Pass [Member] | Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 4,774 | 5,491 | |
Pass [Member] | Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,387 | 2,194 | |
Pass Watch [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 65,624 | 68,543 | |
Pass Watch [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 34,902 | 27,229 | |
Pass Watch [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 14,942 | 32,165 | |
Pass Watch [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 15,105 | 8,527 | |
Pass Watch [Member] | Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 300 | 310 | |
Pass Watch [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 294 | 152 | |
Pass Watch [Member] | Consumer [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 81 | 160 | |
Special Mention [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 8,021 | 4,639 | |
Special Mention [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,170 | 2,512 | |
Special Mention [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 5,314 | 1,608 | |
Special Mention [Member] | Multi-family [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 513 | 518 | |
Special Mention [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 24 | 1 | |
Substandard [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,653 | 4,905 | |
Substandard [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 320 | 1,568 | |
Substandard [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,333 | 3,337 | |
Nonperforming Financing Receivable [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 8,352 | 9,813 | |
Nonperforming Financing Receivable [Member] | Commercial real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 3,238 | 3,684 | |
Nonperforming Financing Receivable [Member] | Construction and land development [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 624 | 636 | |
Nonperforming Financing Receivable [Member] | Commercial and industrial [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 2,445 | 2,517 | |
Nonperforming Financing Receivable [Member] | Residential real estate [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 989 | 959 | |
Nonperforming Financing Receivable [Member] | Leases [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | 222 | 317 | |
Nonperforming Financing Receivable [Member] | Tax certificates [Member] | |||
Risk Ratings for Each Loan Portfolio Segment [Abstract] | |||
Total LHFI, net of unearned income | $834 | $1,700 |
Loans_and_Leases_Aging_Analysi
Loans and Leases - Aging Analysis of Past Due Payments for Each Loan Portfolio Segment (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | $3,304,000 | $720,000 | |
60-89 Days Past Due | 1,153,000 | 1,145,000 | |
Non-accrual | 8,352,000 | 9,813,000 | |
Current | 405,877,000 | 403,454,000 | |
Total | 418,686,000 | 358,658,000 | 415,132,000 |
Interest income lost on non-accrual loans | 204,000 | 275,000 | |
Commercial real estate [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | 2,773,000 | 311,000 | |
60-89 Days Past Due | 503,000 | 533,000 | |
Non-accrual | 3,238,000 | 3,684,000 | |
Current | 187,763,000 | 170,510,000 | |
Total | 194,277,000 | 150,111,000 | 175,038,000 |
Construction and land development [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
Non-accrual | 624,000 | 636,000 | |
Current | 17,986,000 | 45,026,000 | |
Total | 18,610,000 | 45,751,000 | 45,662,000 |
Commercial and industrial [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | 125,000 | 92,000 | |
60-89 Days Past Due | 428,000 | 449,000 | |
Non-accrual | 2,445,000 | 2,517,000 | |
Current | 80,242,000 | 73,431,000 | |
Total | 83,240,000 | 68,664,000 | 76,489,000 |
Multi-family [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | 199,000 | ||
Current | 17,395,000 | 13,823,000 | |
Total | 17,594,000 | 11,876,000 | 13,823,000 |
Residential real estate [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | 183,000 | 165,000 | |
60-89 Days Past Due | 162,000 | ||
Non-accrual | 989,000 | 959,000 | |
Current | 42,244,000 | 41,706,000 | |
Total | 43,416,000 | 26,465,000 | 42,992,000 |
Leases [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
30-59 Days Past Due | 24,000 | 152,000 | |
60-89 Days Past Due | 222,000 | 1,000 | |
Non-accrual | 222,000 | 317,000 | |
Current | 53,005,000 | 51,113,000 | |
Total | 53,473,000 | 43,644,000 | 51,583,000 |
Tax certificates [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
Non-accrual | 834,000 | 1,700,000 | |
Current | 4,774,000 | 5,491,000 | |
Total | 5,608,000 | 11,182,000 | 7,191,000 |
Consumer [Member] | |||
Aging analysis of past due payments for each loan portfolio segment [Abstract] | |||
Current | 2,468,000 | 2,354,000 | |
Total | $2,468,000 | $965,000 | $2,354,000 |
Loans_and_Leases_Impaired_Loan
Loans and Leases - Impaired Loans (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Impaired Loans [Abstract] | |||
Cash collected on non accrual and impaired loan | $1,300,000 | $2,000,000 | |
Amount credited to principal balance outstanding | 1,100,000 | 1,700,000 | |
Summary of impaired loans [Abstract] | |||
Impaired loans with a valuation allowance | 2,980,000 | 3,274,000 | |
Impaired loans without a valuation allowance | 11,521,000 | 12,804,000 | |
Valuation allowance related to impaired loans | 386,000 | 1,041,000 | |
Average recorded investment [Abstract] | |||
Average investment in impaired loans and leases | 15,198,000 | 17,767,000 | |
Interest income recognized on a cash basis on impaired loans and leases | $216,000 | $101,000 |
Loans_and_Leases_Troubled_Debt
Loans and Leases - Troubled Debt Restructuring (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 |
loan | loan | loan | |
Financing Receivable, Modifications [Line Items] | |||
Number of loans | 11,000 | 12 | |
Total TDRs | $8,622 | $8,759 | |
Financing Receivable New Modifications for the Period [Abstract] | |||
Number of loans | 2 | ||
Term | 45 | ||
Combination of types | 28 | ||
Total | 73 | ||
Pre-Modification Outstanding Recorded Investment | 73 | ||
Post-Modification Outstanding Recorded Investment | 73 | ||
Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 6,500 | 6,573 | |
Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 2,122 | 2,186 | |
Commercial real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | 3,000 | 2 | |
Total TDRs | 2,863 | 2,856 | |
Commercial real estate [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 2,863 | 2,856 | |
Construction and land development [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | 2,000 | 3 | |
Total TDRs | 624 | 683 | |
Construction and land development [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 47 | ||
Construction and land development [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 624 | 636 | |
Commercial and industrial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | 5,000 | 6 | |
Total TDRs | 5,035 | 5,118 | |
Commercial and industrial [Member] | Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 3,637 | 3,670 | |
Commercial and industrial [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | 1,398 | 1,448 | |
Residential real estate [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of loans | 1,000 | 1 | |
Total TDRs | 100 | 102 | |
Residential real estate [Member] | Non Accrual Status [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Total TDRs | $100 | $102 |
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 | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | $11,708 | $13,671 | $13,671 |
Charge-offs | -868 | -1,185 | -2,121 |
Recoveries | 637 | 19 | 1,025 |
(Credit) provision | -580 | -639 | -867 |
Ending balance | 10,897 | 11,866 | 11,708 |
Ending balance: related to loans individually evaluated for impairment | 386 | 138 | 1,041 |
Ending balance: related to loans collectively evaluated for impairment | 10,511 | 11,728 | 10,667 |
LHFI [Abstract] | |||
Ending balance | 418,686 | 358,658 | 415,132 |
Ending balance: individually evaluated for impairment | 14,501 | 16,898 | 16,078 |
Ending balance: collectively evaluated for impairment | 404,185 | 341,760 | 399,054 |
Commercial real estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 4,452 | 5,498 | 5,498 |
Charge-offs | -350 | -354 | |
Recoveries | 350 | ||
(Credit) provision | 83 | -220 | -692 |
Ending balance | 4,885 | 4,928 | 4,452 |
Ending balance: related to loans individually evaluated for impairment | 231 | 200 | |
Ending balance: related to loans collectively evaluated for impairment | 4,654 | 4,928 | 4,252 |
LHFI [Abstract] | |||
Ending balance | 194,277 | 150,111 | 175,038 |
Ending balance: individually evaluated for impairment | 6,327 | 4,800 | 6,795 |
Ending balance: collectively evaluated for impairment | 187,950 | 145,311 | 168,243 |
Construction and land development [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 2,292 | 2,316 | 2,316 |
Charge-offs | -172 | ||
Recoveries | 248 | 940 | |
(Credit) provision | -1,464 | -53 | -792 |
Ending balance | 1,076 | 2,263 | 2,292 |
Ending balance: related to loans individually evaluated for impairment | 80 | ||
Ending balance: related to loans collectively evaluated for impairment | 996 | 2,263 | 2,292 |
LHFI [Abstract] | |||
Ending balance | 18,610 | 45,751 | 45,662 |
Ending balance: individually evaluated for impairment | 624 | 3,446 | 683 |
Ending balance: collectively evaluated for impairment | 17,986 | 42,305 | 44,979 |
Commercial and industrial [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,780 | 3,006 | 3,006 |
Charge-offs | -340 | -452 | -452 |
Recoveries | 1 | 4 | 27 |
(Credit) provision | 594 | -696 | -801 |
Ending balance | 2,035 | 1,862 | 1,780 |
Ending balance: related to loans individually evaluated for impairment | 1 | 301 | |
Ending balance: related to loans collectively evaluated for impairment | 2,034 | 1,862 | 1,479 |
LHFI [Abstract] | |||
Ending balance | 83,240 | 68,664 | 76,489 |
Ending balance: individually evaluated for impairment | 5,650 | 6,630 | 5,846 |
Ending balance: collectively evaluated for impairment | 77,590 | 62,034 | 70,643 |
Multi-family [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 285 | 402 | 402 |
(Credit) provision | 60 | -1 | -117 |
Ending balance | 345 | 401 | 285 |
Ending balance: related to loans collectively evaluated for impairment | 345 | 401 | 285 |
LHFI [Abstract] | |||
Ending balance | 17,594 | 11,876 | 13,823 |
Ending balance: collectively evaluated for impairment | 17,594 | 11,876 | 13,823 |
Residential real estate [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 616 | 473 | 473 |
Recoveries | 8 | 2 | 15 |
(Credit) provision | 41 | 15 | 128 |
Ending balance | 665 | 490 | 616 |
Ending balance: related to loans individually evaluated for impairment | 30 | 22 | 28 |
Ending balance: related to loans collectively evaluated for impairment | 635 | 468 | 588 |
LHFI [Abstract] | |||
Ending balance | 43,416 | 26,465 | 42,992 |
Ending balance: individually evaluated for impairment | 989 | 746 | 959 |
Ending balance: collectively evaluated for impairment | 42,427 | 25,719 | 42,033 |
Leases [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 1,429 | 1,223 | 1,223 |
Charge-offs | -103 | -118 | -793 |
Recoveries | 11 | 13 | 42 |
(Credit) provision | 41 | 239 | 957 |
Ending balance | 1,378 | 1,357 | 1,429 |
Ending balance: related to loans individually evaluated for impairment | 36 | 116 | 80 |
Ending balance: related to loans collectively evaluated for impairment | 1,342 | 1,241 | 1,349 |
LHFI [Abstract] | |||
Ending balance | 53,473 | 43,644 | 51,583 |
Ending balance: individually evaluated for impairment | 77 | 139 | 95 |
Ending balance: collectively evaluated for impairment | 53,396 | 43,505 | 51,488 |
Tax certificates [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 667 | 555 | 555 |
Charge-offs | -425 | -265 | -350 |
Recoveries | 19 | 1 | |
(Credit) provision | 81 | 97 | 461 |
Ending balance | 342 | 387 | 667 |
Ending balance: related to loans individually evaluated for impairment | 8 | 432 | |
Ending balance: related to loans collectively evaluated for impairment | 334 | 387 | 235 |
LHFI [Abstract] | |||
Ending balance | 5,608 | 11,182 | 7,191 |
Ending balance: individually evaluated for impairment | 834 | 1,137 | 1,700 |
Ending balance: collectively evaluated for impairment | 4,774 | 10,045 | 5,491 |
Consumer [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 38 | 15 | 15 |
(Credit) provision | -4 | 2 | 23 |
Ending balance | 34 | 17 | 38 |
Ending balance: related to loans collectively evaluated for impairment | 34 | 17 | 38 |
LHFI [Abstract] | |||
Ending balance | 2,468 | 965 | 2,354 |
Ending balance: collectively evaluated for impairment | 2,468 | 965 | 2,354 |
Unallocated [Member] | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning balance | 149 | 183 | 183 |
(Credit) provision | -12 | -22 | -34 |
Ending balance | 137 | 161 | 149 |
Ending balance: related to loans collectively evaluated for impairment | $137 | $161 | $149 |
Allowance_for_Loan_and_Lease_L3
Allowance for Loan and Lease Losses - Loans that were Evaluated for Impairment by Loan Segment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2015 |
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | $14,004 | $12,338 |
With an allowance recorded | 9,424 | 9,630 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 12,804 | 11,521 |
With an allowance recorded | 3,274 | 2,980 |
Related allowance [Abstract] | ||
Related allowance | 1,041 | 386 |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 13,975 | |
With an allowance recorded | 2,479 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 377 | |
Commercial real estate [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 6,632 | 5,486 |
With an allowance recorded | 926 | 1,130 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 6,113 | 5,447 |
With an allowance recorded | 682 | 880 |
Related allowance [Abstract] | ||
Related allowance | 200 | 231 |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 5,089 | |
With an allowance recorded | 529 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 98 | |
Construction and land development [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 894 | 289 |
With an allowance recorded | 546 | |
Recorded investment [Abstract] | ||
With no related allowance recorded | 683 | 254 |
With an allowance recorded | 370 | |
Related allowance [Abstract] | ||
Related allowance | 80 | |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 2,233 | |
With an allowance recorded | 145 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 71 | |
Commercial and industrial [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 5,358 | 5,575 |
With an allowance recorded | 2,500 | 2,500 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 5,118 | 5,270 |
With an allowance recorded | 728 | 380 |
Related allowance [Abstract] | ||
Related allowance | 301 | 1 |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 5,786 | |
With an allowance recorded | 688 | |
Interest income recognized [Abstract] | ||
With no related allowance recorded | 208 | |
Residential real estate [Member] | ||
Unpaid principal balance [Abstract] | ||
With an allowance recorded | 1,068 | 1,041 |
Recorded investment [Abstract] | ||
With an allowance recorded | 959 | 989 |
Related allowance [Abstract] | ||
Related allowance | 28 | 30 |
Average recorded investment [Abstract] | ||
With an allowance recorded | 864 | |
Leases [Member] | ||
Unpaid principal balance [Abstract] | ||
With an allowance recorded | 95 | 77 |
Recorded investment [Abstract] | ||
With an allowance recorded | 95 | 77 |
Related allowance [Abstract] | ||
Related allowance | 80 | 36 |
Average recorded investment [Abstract] | ||
With an allowance recorded | 108 | |
Tax certificates [Member] | ||
Unpaid principal balance [Abstract] | ||
With no related allowance recorded | 1,120 | 988 |
With an allowance recorded | 4,835 | 4,336 |
Recorded investment [Abstract] | ||
With no related allowance recorded | 890 | 550 |
With an allowance recorded | 810 | 284 |
Related allowance [Abstract] | ||
Related allowance | 432 | 8 |
Average recorded investment [Abstract] | ||
With no related allowance recorded | 867 | |
With an allowance recorded | $145 |
Allowance_for_Loan_and_Lease_L4
Allowance for Loan and Lease Losses - Impaired LHFI - Average Recorded Investment and Interest Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Average recorded investment [Abstract] | ||
Average recorded investment | $15,198 | $17,767 |
Interest income recognized [Abstract] | ||
Interest income recognized | 216 | 101 |
Commercial real estate [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | 6,643 | 5,192 |
Interest income recognized [Abstract] | ||
Interest income recognized | 167 | 31 |
Construction and land development [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | 642 | 3,706 |
Interest income recognized [Abstract] | ||
Interest income recognized | 14 | |
Commercial and industrial [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | 5,779 | 7,406 |
Interest income recognized [Abstract] | ||
Interest income recognized | 49 | 56 |
Residential real estate [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | 962 | 710 |
Leases [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | 68 | 163 |
Tax certificates [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment | $1,104 | $590 |
Other_Real_Estate_Owned_Change
Other Real Estate Owned - Changes in OREO (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Foreclosed Property [Roll Forward] | |||
Beginning balance | $9,779,000 | $9,617,000 | $9,617,000 |
Net proceeds from sales | -648,000 | -875,000 | -4,306,000 |
Net gains (losses) on sales | 280,000 | 129,000 | 743,000 |
Transfers in | 1,087,000 | 672,000 | 2,919,000 |
Cash additions | 173,000 | 1,330,000 | |
Impairment charge | -130,000 | -175,000 | -524,000 |
Ending balance | 10,541,000 | 9,779,000 | |
Loans [Member] | |||
Real Estate Owned Disclosure [Line Items] | |||
Number of Real Estate Properties | 3 | ||
Foreclosed Property [Roll Forward] | |||
Beginning balance | 349,000 | 1,725,000 | 1,725,000 |
Net proceeds from sales | -26,000 | -1,336,000 | |
Net gains (losses) on sales | 5,000 | 59,000 | |
Impairment charge | -99,000 | ||
Ending balance | 328,000 | 349,000 | |
Tax Lien [Member] | |||
Real Estate Owned Disclosure [Line Items] | |||
Number of Real Estate Properties | 85 | ||
Foreclosed Property [Roll Forward] | |||
Beginning balance | 9,430,000 | 7,892,000 | 7,892,000 |
Net proceeds from sales | -622,000 | -2,970,000 | |
Net gains (losses) on sales | 275,000 | 684,000 | |
Transfers in | 1,087,000 | 2,919,000 | |
Cash additions | 173,000 | 1,330,000 | |
Impairment charge | -130,000 | -425,000 | |
Ending balance | $10,213,000 | $9,430,000 |
Other_Real_Estate_Owned_Compos
Other Real Estate Owned - Composition and Other Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Composition of OREO | |||
Other real estate owned ("OREO"), net | $10,541,000 | $9,779,000 | $9,617,000 |
Loans [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 328,000 | 349,000 | 1,725,000 |
Loans, Land [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 229,000 | ||
Loans, Residential Real Estate [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | 99,000 | ||
Tax Lien [Member] | |||
Composition of OREO | |||
Other real estate owned ("OREO"), net | $10,213,000 | $9,430,000 | $7,892,000 |
Deposits_Details
Deposits (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |||
Deposits [Abstract] | |||
Demand | $76,808 | $73,665 | |
NOW | 44,229 | 46,515 | |
Money Market | 157,378 | 166,224 | |
Deposits, Savings Deposits | 20,112 | 18,721 | |
Time deposits (over $100) | 87,811 | 87,209 | |
Time deposits (under $100) | 133,948 | 138,091 | |
Total deposits | $520,286 | $530,425 | $532,632 |
Borrowings_and_Subordinated_De2
Borrowings and Subordinated Debentures (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Advances from the Federal Home Loan Bank [Abstract] | |||
Line of credit with federal home loan bank, amount | $187,900,000 | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | 38,600,000 | ||
Amount [Abstract] | |||
Advances maturing in 2015 | 10,000,000 | 10,000,000 | |
Advances maturing in 2016 | 10,000,000 | 10,000,000 | |
Advances maturing in 2017 | 25,000,000 | 25,000,000 | |
Advances maturing in 2018 | 10,000,000 | 10,000,000 | |
Total FHLB borrowings | 55,000,000 | 55,000,000 | |
Rate [Abstract] | |||
Advances maturing in 2015 (as a percent) | 0.71% | 0.71% | |
Advances maturing in 2016 (as a percent) | 1.11% | 1.11% | |
Advances maturing in 2017 (as a percent) | 1.46% | 1.46% | |
Advances maturing in 2018 (as a percent) | 2.01% | 2.01% | |
Repayments of Long-term Debt | 114,000 | 114,000 | |
Line of credit maximum borrowing capacity | 10,000,000 | ||
Notes payable [Member] | Notes Payable To PNCBank Due August2016 Member | |||
Rate [Abstract] | |||
Notes payable with PNC Bank | 2,300,000 | 2,400,000 | |
Description of variable rate basis on notes payable | one month LIBOR | ||
Interest rate on notes payable (as a percent) | 0.32% | ||
Notes payable [Member] | Notes PayableTo PNCBank Due January2018 Member | |||
Rate [Abstract] | |||
Notes payable with PNC Bank | $35,000,000 | $35,000,000 | |
Weighted average interest rate on other borrowings from PNC Bank (as a percent) | 3.65% | ||
Notes payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | Notes Payable To PNCBank Due August2016 Member | |||
Rate [Abstract] | |||
Trust preferred securities basis spread on variable rate (as a percent) | 0.15% |
Borrowings_and_Subordinated_De3
Borrowings and Subordinated Debentures , Subordinated Debentures (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
trust | ||
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | $25,774,000 | $25,774,000 |
Number of Delaware trust affiliates | 2 | |
Royal Bancshares Capital Trust I [Member] | Common Stock [Member] | ||
Borrowings and Subordinated Debentures | ||
Aggregate principal amount, common securities | 387,000 | |
Royal Bancshares Capital Trust I [Member] | Trust Preferred Securities [Member] | ||
Borrowings and Subordinated Debentures | ||
Aggregate principal amount, capital securities | 12,500,000 | |
Trust I [Member] | ||
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | 12,900,000 | |
Interest rate on notes payable (as a percent) | 2.42% | |
Trust I [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Borrowings and Subordinated Debentures | ||
Description of variable rate basis on notes payable | 3-month LIBOR | |
Trust preferred securities basis spread on variable rate (as a percent) | 2.15% | |
Trust II [Member] | ||
Borrowings and Subordinated Debentures | ||
Junior subordinated debenture owed to unconsolidated subsidiary trust | $12,900,000 | |
Interest rate on notes payable (as a percent) | 2.42% | |
Trust II [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Borrowings and Subordinated Debentures | ||
Description of variable rate basis on notes payable | 3-month LIBOR |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activity (Details) (Designated as Hedging Instrument, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Notional contract amount | $15,000 | $15,000 |
Derivative liabilities | -467 | -187 |
Interest Rate Swap | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional contract amount | 15,000 | 15,000 |
Derivative liabilities | ($467) | ($187) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activity (Details 2) (Designated as Hedging Instrument, USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI | ($308) | ($187) |
Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Loss Recognized in OCI | ($308) | ($187) |
Commitments_Contingencies_and_2
Commitments, Contingencies, and Concentrations (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Unused lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | $44,411 | $48,929 |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | 11,330 | 6,430 |
Standby letters of credit and financial guarantees written [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments whose contract amounts represent credit risk | $144 | $371 |
Shareholders_Equity_Details
Shareholdersb Equity (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Jun. 19, 2014 | Jun. 20, 2014 | Dec. 31, 2014 | Feb. 20, 2009 | Jul. 02, 2014 | Feb. 28, 2014 |
Preferred Stock [Abstract] | |||||||
Preferred stock, liquidation value (in dollars per share) | $1,000 | $1,000 | |||||
Preferred stock, shares outstanding (in shares) | 18,856 | 18,856 | |||||
Preferred stock cumulative dividend rate percentage for first five years (as a percent) | 5.00% | ||||||
Warrant To Purchase Class A Common Stock [Member] | |||||||
Preferred Stock [Abstract] | |||||||
Number of shares to be purchased by warrant (in shares) | 1,104,370 | ||||||
Number of years for warrant issued to treasury | 10 years | ||||||
Warrants, exercise price (in dollars per share) | $4.13 | ||||||
Series A Preferred Stock [Member] | |||||||
Preferred Stock [Abstract] | |||||||
Preferred stock, shares issued (in shares) | 30,407 | ||||||
Preferred stock, liquidation value (in dollars per share) | 1,000 | ||||||
Preferred stock cumulative dividend rate percentage beginning February 2014 (as a percent) | 9.00% | ||||||
Amount of approved purchase of preferred shares | $14 | ||||||
Preferred stock dividend in arrears | 7.1 | ||||||
Share price (in dollars per share) | $1,207.11 | ||||||
Preferred stock, shares outstanding (in shares) | 30,407 | ||||||
Shares allocated for repurchase (in shares) | 11,551 | ||||||
Dividends in arrears eliminated | 3.5 | ||||||
Common Class A [Member] | |||||||
Preferred Stock [Abstract] | |||||||
Share price (in dollars per share) | $1.20 | ||||||
Common Stock [Abstract] | |||||||
Number of vote for class of shares held | 1 | ||||||
Common stock sold (in shares) | 5,000,000 | 11,666,667 | |||||
Proceeds from issuance of common stock | 6 | ||||||
Common Class B [Member] | |||||||
Common Stock [Abstract] | |||||||
Number of shares received after conversion, per share | 1.15 | ||||||
Number of vote for class of shares held | 10 | ||||||
Scenario, Adjustment [Member] | Warrant To Purchase Class A Common Stock [Member] | |||||||
Preferred Stock [Abstract] | |||||||
Number of shares to be purchased by warrant (in shares) | 1,368,040 | ||||||
Warrants, exercise price (in dollars per share) | $3.33 | ||||||
Capital Unit Preferred Stock And Warrant Member | |||||||
Preferred Stock [Abstract] | |||||||
Aggregate purchase price | 30.4 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
item | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Number of previous quarters for which the call report is filed in accordance with U.S.GAAP | 18 | |
Capital actual amount under regulations [Abstract] | ||
Total capital (to risk-weighted assets) | $97,591 | |
Tier I capital (to risk-weighted assets) | 88,485 | |
Tier I capital (to average assets, leverage) | 88,485 | |
Common equity Tier 1 (to risk-weighted assets) | 47,019 | |
Actual Ratio Under RAP [Abstract] | ||
Total capital (to risk-weighted assets) (as a percent) | 19.44% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 17.63% | |
Tier I capital (to average assets, leverage) (as a percent) | 12.17% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 9.37% | |
For capital adequacy purposes, amount [Abstract] | ||
Total capital (to risk-weighted assets) | 40,150 | |
Tier I capital (to risk-weighted assets) | 30,113 | |
Tier I capital (to average assets, leverage) | 29,075 | |
Common equity Tier 1 (to risk-weighted assets) | 22,585 | |
For capital adequacy purposes, ratio [Abstract] | ||
Total capital (to risk-weighted assets) (in hundredths) | 8.00% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 6.00% | |
Tier I capital (to average assets, leverage) (in hundredths) | 4.00% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 4.50% | |
To be well capitalized under prompt corrective action provision, amount [Abstract] | ||
Total capital (to risk-weighted assets) | 50,188 | |
Tier I capital (to risk-weighted assets) | 30,113 | |
To be well 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% | |
To be well capitalized under the Federal Reserve's regulations, amount | ||
Total capital (to risk-weighted assets) | 50,188 | |
Tier I capital (to risk-weighted assets) | 30,113 | |
To be well capitalized under the Federal Reserve's regulations, ratio | ||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 6.00% | |
Adjustments to net loss as well as the capital ratios [Abstract] | ||
RAP net loss | -1,199 | |
Tax lien adjustment, net of noncontrolling interest | 2,790 | |
Net income | 1,591 | 1,498 |
Actual Ratio Under US GAAP [Abstract] | ||
Total capital (to risk-weighted assets) (in hundredths) | 19.44% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 17.63% | |
Tier I capital (to average assets, leverage) (in hundredths) | 12.17% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 9.37% | |
Ratios As Adjusted Under RAP [Abstract] | ||
Total capital (to risk-weighted assets) (in hundredths) | 18.98% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 16.98% | |
Tier I capital (to average assets, leverage) (in hundredths) | 11.70% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 8.85% | |
Royal Bank [Member] | ||
Capital actual amount under regulations [Abstract] | ||
Total capital (to risk-weighted assets) | 80,591 | |
Tier I capital (to risk-weighted assets) | 74,323 | |
Tier I capital (to average assets, leverage) | 74,323 | |
Common equity Tier 1 (to risk-weighted assets) | 73,937 | |
Actual Ratio Under RAP [Abstract] | ||
Total capital (to risk-weighted assets) (as a percent) | 16.22% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 14.96% | |
Tier I capital (to average assets, leverage) (as a percent) | 10.34% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 10.62% | |
For capital adequacy purposes, amount [Abstract] | ||
Total capital (to risk-weighted assets) | 39,745 | |
Tier I capital (to risk-weighted assets) | 29,809 | |
Tier I capital (to average assets, leverage) | 28,765 | |
Common equity Tier 1 (to risk-weighted assets) | 22,356 | |
For capital adequacy purposes, ratio [Abstract] | ||
Total capital (to risk-weighted assets) (in hundredths) | 8.00% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 6.00% | |
Tier I capital (to average assets, leverage) (in hundredths) | 4.00% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 4.50% | |
To be well capitalized under prompt corrective action provision, amount [Abstract] | ||
Total capital (to risk-weighted assets) | 49,681 | |
Tier I capital (to risk-weighted assets) | 39,745 | |
Tier I capital (to average assets, leverage) | 35,957 | |
Common equity Tier 1 (to risk-weighted assets) | 32,293 | |
To be well 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) | 8.00% | |
Tier I capital (to average assets, leverage) (in hundredths) | 5.00% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 6.50% | |
To be well capitalized under the Federal Reserve's regulations, amount | ||
Total capital (to risk-weighted assets) | 49,681 | |
Tier I capital (to risk-weighted assets) | 39,745 | |
To be well capitalized under the Federal Reserve's regulations, ratio | ||
Total capital (to risk-weighted assets) (in hundredths) | 10.00% | |
Tier I capital (to risk-weighted assets) (in hundredths) | 8.00% | |
Adjustments to net loss as well as the capital ratios [Abstract] | ||
RAP net loss | -1,192 | |
Tax lien adjustment, net of noncontrolling interest | 2,790 | |
Net income | $1,598 | |
As adjusted for U.S. GAAP | ||
Total capital (to risk-weighted assets) (in hundredths) | 16.70% | |
Tier 1 capital (to risk-weighted assets) (in hundredths) | 15.44% | |
Tier 1 capital (to average assets, leverage) (in hundredths) | 10.69% | |
Common equity Tier 1 (to risk-weighted assets) (in hundredths) | 11.12% |
Pension_Plan_Details
Pension Plan (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
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 | $16,000 | $15,000 | |
Interest cost | 134,000 | 155,000 | |
Amortization of prior service cost | 23,000 | 22,000 | |
Amortization of actuarial loss | 47,000 | 32,000 | |
Net periodic benefit cost | 220,000 | 224,000 | |
Unfunded pension plan obligations | $15,400,000 | $15,300,000 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
item | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of classes of common stock outstanding | 2 | |
Earnings Per Share, Basic [Abstract] | ||
Income (loss) available to common shareholders (numerator) | $1,167 | $834 |
Average shares (denominator) (in shares) | 30,036,000 | |
Per share Amount (in dollars per share) | $0.04 | |
Earnings Per Share, Diluted [Abstract] | ||
Income (loss) available to common shareholders (numerator) | 1,167 | |
Average shares (denominator) (in shares) | 30,042,000 | |
Per share Amount (in dollars per share) | $0.04 | |
Basic and Diluted EPS [Abstract] | ||
Income (loss) available to common shareholders (numerator) | $1,167 | $834 |
Average shares (denominator) (in shares) | 13,316,000 | |
Net Income - Basic and Diluted | $0.04 | $0.06 |
Stock Options [Member] | ||
Basic and Diluted EPS [Abstract] | ||
Number of antidilutive common share (in shares) | 317,735 | 201,914 |
Warrant To Purchase Class A Common Stock [Member] | ||
Basic and Diluted EPS [Abstract] | ||
Number of antidilutive common share (in shares) | 1,368,040 | |
Common Class B [Member] | ||
Basic and Diluted EPS [Abstract] | ||
Number of shares received after conversion, per share | 1.15 |
Comprehensive_Income_Loss_Deta
Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Unrealized gains on investment securities, before tax [Abstract] | ||||
Unrealized holding gains arising during period, before tax | $1,844 | $3,165 | ||
Less reclassification adjustment for gains realized in net income, before tax | 187 | |||
Unrealized gains on investment securities, before tax | 1,657 | 3,165 | ||
Unrecognized benefit obligation expense, before tax [Abstract] | ||||
Less reclassification adjustment for amortization, before tax | -17 | -28 | ||
Unrecognized benefit obligation | -17 | 28 | ||
Unrealized loss on derivative instrument, before tax | -280 | |||
Other comprehensive income net, before tax | 1,360 | 3,193 | ||
Unrealized gains on investment securities, tax [Abstract] | ||||
Unrealized holding gains arising during period, tax | 749 | 968 | ||
Less reclassification adjustment for gains realized in net income, tax | 64 | |||
Unrealized gains on investment securities, tax | 685 | 968 | ||
Unrecognized benefit obligation expense, tax [Abstract] | ||||
Less reclassification adjustment for amortization, tax | -10 | |||
Unrecognized benefit obligation, tax | 10 | |||
Unrealized loss on derivative instrument, tax | -159 | |||
Other comprehensive income net, tax | 526 | 978 | ||
Unrealized gains on investment securities [Abstract] | ||||
Unrealized holding gains arising during period, net of tax | 1,095 | 2,197 | ||
Less reclassification adjustment for gains realized in net income, net of tax | 123 | [1] | ||
Unrealized gains (losses) on investment securities, net of tax | 972 | 2,197 | ||
Unrecognized benefit obligation expense [Abstract] | ||||
Less reclassification adjustment for amortization, net of tax | -17 | [2] | -18 | [2] |
Unrecognized benefit obligation expense | 17 | 18 | ||
Unrealized loss on derivative instrument, net of tax | -121 | |||
Other comprehensive income (loss) | $834 | $2,215 | ||
[1] | Gross amounts are included in net gains on the sale of AFS investment securities on the Consolidated Statements of Income. See Note 15. C | |||
[2] | Gross amounts are included in salaries and benefits on the Consolidated Statements of Income. See Note 15. Comprehensive Income (Loss). |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $227,762 | $250,368 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 25,719 | 25,289 |
Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,207 | 22,387 |
Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 152,605 | 168,977 |
Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,528 | 3,731 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 11,778 | 15,727 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,233 | 10,173 |
Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,666 | 4,034 |
Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 26 | 50 |
Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 227,762 | 250,368 |
Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 467 | 187 |
Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 25,719 | 25,289 |
Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,207 | 22,387 |
Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 152,605 | 168,977 |
Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,528 | 3,731 |
Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 11,778 | 15,727 |
Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,233 | 10,173 |
Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,666 | 4,034 |
Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 26 | 50 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 26 | 50 |
Level 1 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 26 | 50 |
Level 1 [Member] | Recurring [Member] | Common Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 26 | 50 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 224,070 | 246,284 |
Level 2 [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 467 | 187 |
Level 2 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 224,070 | 246,284 |
Level 2 [Member] | Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 467 | 187 |
Level 2 [Member] | Recurring [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 25,719 | 25,289 |
Level 2 [Member] | Recurring [Member] | Mortgage-backed Securities-residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 20,207 | 22,387 |
Level 2 [Member] | Recurring [Member] | Collateralized Mortgage Obligations, Issued or Guaranteed by U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 152,605 | 168,977 |
Level 2 [Member] | Recurring [Member] | Mortgage-backed Securities, Issued by Private Enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,528 | 3,731 |
Level 2 [Member] | Recurring [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 11,778 | 15,727 |
Level 2 [Member] | Recurring [Member] | Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 10,233 | 10,173 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of investments in private equity funds | 7 | |
Investment securities available for sale | 3,666 | 4,034 |
Level 3 [Member] | Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | 3,666 | 4,034 |
Level 3 [Member] | Recurring [Member] | Private Equity Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available for sale | $3,666 | $4,034 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments - Unobservable Input Reconciliation (Details) (Private Equity Funds [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Private Equity Funds [Member] | ||
Assets measured at fair value on recurring basis Level 3 inputs [Roll Forward] | ||
Beginning balance | $4,034 | $4,625 |
Fair Value Assets and Liabilities Measured on Recurring Basis Gain Loss Included in Earnings [Abstract] | ||
Included in earnings | 62 | |
Included in other comprehensive income | -339 | 284 |
Purchases | 4 | |
Sales and calls | -95 | -129 |
Ending balance | $3,666 | $4,780 |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments - Measurement (Details) (Nonrecurring [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | $2,611 | $2,812 |
Other real estate owned | 3,758 | 3,418 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans and leases | 2,611 | 2,812 |
Other real estate owned | $3,758 | $3,418 |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments - Quantitative Information (Details) (Appraisal of collateral valuation technique [Member], Level 3 [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Impaired loans and leases [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Impaired Loans And Leases Fair Value | $2,611 | $2,812 |
Other real estate owned [Member] | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis [Abstract] | ||
Foreclosed Properties Valued On Nonrecurring Basis | $3,758 | $3,418 |
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) | -40.00% | -20.00% |
Range (Weighted Average) of Liquidation expenses (in hundredths | -24.00% | -24.00% |
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) | -73.30% | -68.60% |
Range (Weighted Average) of Liquidation expenses (in hundredths | -14.70% | -14.70% |
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) | -24.60% | -20.00% |
Range (Weighted Average) of Liquidation expenses (in hundredths | -7.70% | -7.80% |
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) | -13.30% | -14.50% |
Range (Weighted Average) of Liquidation expenses (in hundredths | -14.70% | -14.70% |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments - Balance Sheet Grouping (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Financial Assets [Abstract] | ||
Available-for-sale Securities | $227,762 | $250,368 |
Level 1 [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 41,618 | 30,790 |
Available-for-sale Securities | 26 | 50 |
Level 2 [Member] | ||
Financial Assets [Abstract] | ||
Available-for-sale Securities | 224,070 | 246,284 |
Accrued interest receivable | 4,873 | 5,270 |
Financial Liabilities | ||
Demand deposits | 76,808 | 73,665 |
NOW and money markets | 201,607 | 212,739 |
Savings | 20,112 | 18,721 |
Time deposits | 219,851 | 223,788 |
Long-term borrowings | 89,652 | 90,022 |
Subordinated debt | 25,649 | 25,091 |
Accrued interest payable | 1,270 | 726 |
Level 3 [Member] | ||
Financial Assets [Abstract] | ||
Available-for-sale Securities | 3,666 | 4,034 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 2,622 | 2,622 |
Loans, net | 404,770 | 400,979 |
Carrying Amount [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 41,618 | 30,790 |
Available-for-sale Securities | 227,762 | 250,368 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 2,622 | 2,622 |
Loans, net | 407,789 | 403,424 |
Accrued interest receivable | 4,873 | 5,270 |
Financial Liabilities | ||
Demand deposits | 76,808 | 73,665 |
NOW and money markets | 201,607 | 212,739 |
Savings | 20,112 | 18,721 |
Time deposits | 221,759 | 225,300 |
Long-term borrowings | 92,312 | 92,426 |
Subordinated debt | 25,774 | 25,774 |
Accrued interest payable | 1,270 | 726 |
Estimated Fair Value [Member] | ||
Financial Assets [Abstract] | ||
Cash and cash equivalents | 41,618 | 30,790 |
Available-for-sale Securities | 227,762 | 250,368 |
Other investment | 2,250 | 2,250 |
Federal Home Loan Bank stock | 2,622 | 2,622 |
Loans, net | 404,770 | 400,979 |
Accrued interest receivable | 4,873 | 5,270 |
Financial Liabilities | ||
Demand deposits | 76,808 | 73,665 |
NOW and money markets | 201,607 | 212,739 |
Savings | 20,112 | 18,721 |
Time deposits | 219,851 | 223,788 |
Long-term borrowings | 89,652 | 90,022 |
Subordinated debt | 25,649 | 25,091 |
Accrued interest payable | 1,270 | 726 |
Interest Rate Swap | Level 2 [Member] | ||
Financial Liabilities | ||
Derivative Liability | 467 | 187 |
Interest Rate Swap | Carrying Amount [Member] | ||
Financial Liabilities | ||
Derivative Liability | 467 | 187 |
Interest Rate Swap | Estimated Fair Value [Member] | ||
Financial Liabilities | ||
Derivative Liability | $467 | $187 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||
Total assets | $725,205,000 | $734,410,000 | $732,553,000 |
Total deposits | 520,286,000 | 532,632,000 | 530,425,000 |
Interest income | 7,280,000 | 7,151,000 | |
Interest expense | 1,571,000 | 1,625,000 | |
Net Interest Income | 5,709,000 | 5,526,000 | |
(Credit) provision for loan and lease losses | -580,000 | -639,000 | |
Total non-interest Income | 847,000 | 772,000 | |
Noninterest Expense | 5,375,000 | 5,322,000 | |
Net Income | 1,761,000 | 1,615,000 | |
Noncontrolling interest | 170,000 | 117,000 | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 1,591,000 | 1,498,000 | |
Royal Bank [Member] | |||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 1,598,000 | ||
Royal Bank [Member] | Crusader Servicing Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Ownership interest (as a percent) | 80.00% | ||
Community Banking Segment [Member] | |||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||
Total assets | 706,252,000 | 709,911,000 | |
Total deposits | 520,286,000 | 532,632,000 | |
Interest income | 7,037,000 | 6,796,000 | |
Interest expense | 1,344,000 | 1,320,000 | |
Net Interest Income | 5,693,000 | 5,476,000 | |
(Credit) provision for loan and lease losses | -661,000 | -737,000 | |
Total non-interest Income | 517,000 | 566,000 | |
Noninterest Expense | 4,855,000 | 4,937,000 | |
Net Income | 2,016,000 | 1,842,000 | |
Noncontrolling interest | 189,000 | 156,000 | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | 1,827,000 | 1,686,000 | |
Tax Lien Segment [Member] | |||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||
Total assets | 18,953,000 | 24,499,000 | |
Interest income | 243,000 | 355,000 | |
Interest expense | 227,000 | 305,000 | |
Net Interest Income | 16,000 | 50,000 | |
(Credit) provision for loan and lease losses | 81,000 | 98,000 | |
Total non-interest Income | 330,000 | 206,000 | |
Noninterest Expense | 520,000 | 385,000 | |
Net Income | -255,000 | -227,000 | |
Noncontrolling interest | -19,000 | -39,000 | |
Net Income Attributable to Royal Bancshares of Pennsylvania, Inc. | -236,000 | -188,000 | |
Tax Lien Segment [Member] | Royal Bank [Member] | Crusader Servicing Corporation [Member] | |||
Segment Reporting Information [Line Items] | |||
Ownership interest (as a percent) | 80.00% | ||
Tax Lien Segment [Member] | Royal Bank [Member] | Royal Tax Lien [Member] | |||
Segment Reporting Information [Line Items] | |||
Ownership interest (as a percent) | 100.00% | ||
Intersegment Eliminations [Member] | |||
Selected Segment Information and Reconciliations to Consolidated Financial Information [Abstract] | |||
Interest income | $227,000 | $305,000 |
Federal_Home_Loan_Bank_Stock_D
Federal Home Loan Bank Stock (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Federal Home Loan Bank Stock [Abstract] | ||
Total FHLB stock | $2,622 | $2,622 |