Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'PCBS | ' |
Entity Registrant Name | 'PROVIDENT COMMUNITY BANCSHARES, INC. | ' |
Entity Central Index Key | '0000926164 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 1,790,599 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and due from banks | $4,810 | $6,230 |
Interest earning balances with the Federal Reserve | 1,920 | 2,531 |
Federal funds sold | 5,633 | 20,298 |
Cash and cash equivalents | 12,363 | 29,059 |
Investment and mortgage-backed securities-available for sale | 176,714 | 169,214 |
Loans, net of unearned fees | 121,326 | 127,781 |
Allowance for loan losses (ALL) | -3,915 | -4,367 |
Loans, net of ALL | 117,411 | 123,414 |
Other real estate owned (OREO) | 4,891 | 9,174 |
Office properties and equipment, net | 3,285 | 3,180 |
Federal Home Loan Bank stock, at cost | 2,107 | 2,253 |
Federal Reserve Bank stock, at cost | 736 | 771 |
Accrued interest receivable | 1,097 | 1,248 |
Cash surrender value of life insurance | 8,397 | 8,210 |
Other assets | 5,632 | 3,419 |
TOTAL ASSETS | 332,633 | 349,942 |
LIABILITIES | ' | ' |
Demand and savings deposits | 163,251 | 160,314 |
Time deposits | 106,806 | 117,167 |
Total deposits | 270,057 | 277,481 |
Advances from the Federal Home Loan Bank | 37,500 | 37,500 |
Securities sold under agreements to repurchase | 5,119 | 6,280 |
Floating rate junior subordinated deferrable interest debentures | 12,372 | 12,372 |
Accrued interest payable | 1,327 | 1,148 |
Other liabilities | 3,238 | 2,953 |
TOTAL LIABILITIES | 329,613 | 337,734 |
Commitments and contingencies-Note 5 | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Serial preferred stock - $0.01 par value authorized - 500, 000 shares issued and outstanding - 9,266 shares at September 30, 2013 and December 31, 2012 | 9,264 | 9,260 |
Common stock - $0.01 par value, authorized - 5,000,000 shares, issued-2,192,958 and outstanding-1,790,599 shares at September 30, 2013 and December 31, 2012, respectively | 20 | 20 |
Common stock warrant | 25 | 25 |
Additional paid-in capital | 12,919 | 12,919 |
Accumulated other comprehensive loss | -6,750 | -527 |
Retained deficit, substantially restricted | -6,158 | -3,189 |
Treasury stock, at cost | -6,300 | -6,300 |
TOTAL SHAREHOLDERS' EQUITY | 3,020 | 12,208 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $332,633 | $349,942 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Serial preferred stock, par value | $0.01 | $0.01 |
Serial preferred stock, authorized | 500,000 | 500,000 |
Serial preferred stock, issued | 9,266 | 9,266 |
Serial preferred stock, outstanding | 9,266 | 9,266 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 5,000,000 | 5,000,000 |
Common stock, issued | 2,192,958 | 2,192,958 |
Common stock, outstanding | 1,790,599 | 1,790,599 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income: | ' | ' | ' | ' |
Loans | $1,526 | $1,775 | $4,568 | $5,556 |
Deposits and federal funds sold | 1 | 5 | 8 | 13 |
Interest on mortgage-backed securities | 269 | 348 | 731 | 1,115 |
Interest and dividends on investment securities | 784 | 592 | 2,159 | 1,835 |
Total interest income | 2,580 | 2,720 | 7,466 | 8,519 |
Interest Expense: | ' | ' | ' | ' |
Deposit accounts | 235 | 312 | 770 | 1,030 |
Floating rate junior subordinated deferrable interest debentures | 63 | 69 | 190 | 210 |
Advances from the FHLB and other borrowings | 314 | 448 | 1,050 | 1,622 |
Total interest expense | 612 | 829 | 2,010 | 2,862 |
Net Interest Income | 1,968 | 1,891 | 5,456 | 5,657 |
Provision for loan losses | ' | ' | 500 | 630 |
Net interest income after provision for loan losses | 1,968 | 1,891 | 4,956 | 5,027 |
Non-Interest Income: | ' | ' | ' | ' |
Fees for financial services | 676 | 722 | 1,961 | 1,986 |
Other fees, net | 83 | 4 | 92 | 14 |
Net gain on sale of investments | ' | 584 | 24 | 1,108 |
Total non-interest income | 759 | 1,310 | 2,077 | 3,108 |
Non-Interest Expense: | ' | ' | ' | ' |
Compensation and employee benefits | 1,293 | 1,028 | 3,582 | 3,154 |
Occupancy and equipment | 660 | 654 | 1,951 | 1,934 |
Deposit insurance premiums | 193 | 217 | 578 | 611 |
Professional services | 170 | 164 | 505 | 519 |
Advertising and public relations | 5 | 5 | 22 | 29 |
OREO and loan operations | 121 | 539 | 1,008 | 614 |
Items processing | 69 | 65 | 196 | 202 |
Telephone | 49 | 44 | 139 | 133 |
Other | 329 | 223 | 805 | 605 |
Total non-interest expense | 2,889 | 2,939 | 8,786 | 7,801 |
Net (loss) income before income taxes | -162 | 262 | -1,753 | 334 |
Expense for income taxes | 1,127 | 154 | 1,212 | 167 |
Net (loss) income | -1,289 | 108 | -2,965 | 167 |
Accretion of preferred stock to redemption value and preferred dividends accrued | 118 | 120 | 355 | 356 |
Net loss to common shareholders | ($1,407) | ($12) | ($3,320) | ($189) |
Net loss per common share (basic) | ($0.79) | ($0.01) | ($1.85) | ($0.11) |
Net loss per common share (diluted) | ($0.79) | ($0.01) | ($1.85) | ($0.11) |
Weighted average number of common shares outstanding | ' | ' | ' | ' |
Basic | 1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 |
Diluted | 1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net (loss) income | ($1,289) | $108 | ($2,965) | $167 |
Amounts reclassified from accumulated other comprehensive income (loss): | ' | ' | ' | ' |
Unrealized holding gain (loss) arising during the period, pretax | -3,445 | 842 | -9,598 | 1,548 |
Tax expense (benefit) | 1,236 | -311 | 3,390 | -574 |
Reclassification adjustment for realized gain (loss) in net income (loss) | ' | -584 | -24 | -1,108 |
Tax expense (benefit) | ' | 222 | 9 | 421 |
Other comprehensive income (loss) | -2,209 | 169 | -6,223 | 287 |
Comprehensive (loss) income | ($3,498) | $277 | ($9,188) | $454 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Shareholders' Equity (USD $) | Total | Preferred Stock | Common Stock | Warrants | Additional Paid-in Capital | Retained Earnings, Substantially Restricted | Accumulated Other Comprehensive Loss | Treasury Stock at Cost |
In Thousands, except Share data | ||||||||
BALANCE at Dec. 31, 2011 | $12,470 | $9,255 | $20 | $25 | $12,919 | ($3,062) | ($387) | ($6,300) |
BALANCE (in shares) at Dec. 31, 2011 | ' | 9,266 | 1,790,599 | ' | ' | ' | ' | ' |
Net income (loss) | 167 | ' | ' | ' | ' | 167 | ' | ' |
Comprehensive (loss) income | 287 | ' | ' | ' | ' | ' | 287 | ' |
Accretion of Preferred Stock to redemption value | ' | 3 | ' | ' | ' | -3 | ' | ' |
BALANCE at Sep. 30, 2012 | 12,924 | 9,258 | 20 | 25 | 12,919 | -2,898 | -100 | -6,300 |
BALANCE (in shares) at Sep. 30, 2012 | ' | 9,266 | 1,790,599 | ' | ' | ' | ' | ' |
BALANCE at Dec. 31, 2012 | 12,208 | 9,260 | 20 | 25 | 12,919 | -3,189 | -527 | -6,300 |
BALANCE (in shares) at Dec. 31, 2012 | ' | 9,266 | 1,790,599 | ' | ' | ' | ' | ' |
Net income (loss) | -2,965 | ' | ' | ' | ' | -2,965 | ' | ' |
Comprehensive (loss) income | -6,223 | ' | ' | ' | ' | ' | -6,223 | ' |
Accretion of Preferred Stock to redemption value | ' | 4 | ' | ' | ' | -4 | ' | ' |
BALANCE at Sep. 30, 2013 | $3,020 | $9,264 | $20 | $25 | $12,919 | ($6,158) | ($6,750) | ($6,300) |
BALANCE (in shares) at Sep. 30, 2013 | ' | 9,266 | 1,790,599 | ' | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
OPERATING ACTIVITIES: | ' | ' | ' |
Net (loss) income | ($2,965) | $167 | ' |
Adjustments to reconcile net income (loss) to net cash (used) provided by operating activities: | ' | ' | ' |
Provision for loan losses | 500 | 630 | 704 |
Amortization of securities | 761 | 1,215 | ' |
Depreciation expense | 244 | 269 | ' |
Recognition of deferred income, net of costs | -70 | -209 | ' |
Deferral of fee income, net of costs | 109 | 200 | ' |
Gain on investment transactions | -24 | -1,108 | ' |
Loss (gain) on OREO sales | 242 | -77 | ' |
OREO impairment | 750 | 650 | ' |
Bank property transferred to OREO | ' | 1,356 | ' |
Changes in operating assets and liabilities: | ' | ' | ' |
Decrease in accrued interest receivable | 151 | 215 | ' |
Increase in cash surrender value of life insurance | -187 | -215 | ' |
(Increase) decrease in other assets | -2,213 | 554 | ' |
Increase in other liabilities | 285 | 334 | ' |
Increase in accrued interest payable | 179 | 52 | ' |
Net cash (used) provided by operating activities | -2,238 | 4,033 | ' |
INVESTING ACTIVITIES: | ' | ' | ' |
Purchase of AFS securities | -93,004 | -166,011 | ' |
Proceeds from sales of AFS securities | 1,774 | 38,954 | ' |
Maturities of AFS securities | 66,550 | 114,199 | ' |
Principal repayment on mortgage-backed securities AFS | 10,220 | 11,438 | ' |
Net decrease in loans | 5,464 | 21,485 | ' |
Redemption of FHLB/FRB stock | 181 | 1,050 | ' |
Proceeds from sales of OREO, net of costs and improvements | 3,291 | 1,627 | ' |
Purchase of office properties and equipment | -349 | -80 | ' |
Net cash (used) provided by investing activities | -5,873 | 22,662 | ' |
FINANCING ACTIVITIES: | ' | ' | ' |
Decrease in other borrowings | -1,161 | -21,211 | ' |
Decrease in deposit accounts | -7,424 | -1,826 | ' |
Net cash used by financing activities | -8,585 | -23,037 | ' |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -16,696 | 3,658 | ' |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 29,059 | 23,893 | 23,893 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 12,363 | 27,551 | 29,059 |
Cash paid for: | ' | ' | ' |
Income taxes | ' | ' | ' |
Interest | 1,830 | 2,810 | ' |
Non-cash transactions: | ' | ' | ' |
Loans foreclosed | 1,117 | 3,422 | ' |
Unrealized gain (loss) on securities available for sale, net of income tax | ($6,246) | $974 | ' |
Presentation_of_Consolidated_F
Presentation of Consolidated Financial Statements | 9 Months Ended |
Sep. 30, 2013 | |
Presentation of Consolidated Financial Statements | ' |
1. Presentation of Consolidated Financial Statements | |
The accompanying unaudited consolidated financial statements of Provident Community Bancshares, Inc. (the “Corporation”) and Provident Community Bank, N.A. (the “Bank”) were prepared in accordance with instructions for Form 10-Q and, therefore, do not include all disclosures necessary for a complete presentation of the consolidated financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, all adjustments which are, in the opinion of management, necessary for the fair presentation of the interim consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results which may be expected for the entire calendar year or for any other period. This quarterly report should be read in conjunction with the Corporation’s annual report on Form 10-K for the year ended December 31, 2012. Certain amounts in the prior year’s financial statements have been reclassified to conform to current year classifications. | |
Recently Issued Accounting Standards | |
The following is a summary of recent authoritative pronouncements that may affect accounting, reporting, and disclosure of financial information by the Corporation. | |
The Comprehensive Income topic of the Accounting Standards Codification (“ASC”) was amended in June 2011. The amendment eliminated the option to present other comprehensive income as a part of the statement of changes in stockholders’ equity and required consecutive presentation of the statement of net income and other comprehensive income. The amendments were applicable to the Corporation January 1, 2012 and have been applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements while the Financial Accounting Standards Board (“FASB”) redeliberated the presentation requirements for the reclassification adjustments. In February 2013, the FASB further amended the Comprehensive Income topic clarifying the conclusions from such redeliberations. Specifically, the amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments do require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, in certain circumstances an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendments were effective for the Corporation on a prospective basis for reporting periods beginning after December 15, 2012. These amendments did not have a material effect on the Corporation’s financial statements. | |
In February, 2013, the FASB amended the Liabilities topic to address obligations resulting from joint and several liability arrangements. The guidance addresses recognition of financial commitments arising from joint and several liability arrangements. Specifically, the amendments require recognition of financial commitments arising from loans, contracts, and legal rulings if the Corporation can be held liable for the entire claim. The amendments will be effective for the Corporation for reporting periods beginning after December 15, 2013. The Corporation does not expect these amendments to have a material effect on its financial statements. | |
On April 22, 2013, the FASB issued guidance addressing application of the liquidation basis of accounting. The guidance is intended to clarify when an entity should apply the liquidation basis of accounting. In addition, the guidance provides principles for the recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation basis of accounting. The amendments will be effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein and those requirements should be applied prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The Corporation does not expect these amendments to have any effect on its financial statements. | |
On July 18, 2013, the FASB issued guidance to eliminate the diversity in practice regarding presentation of unrecognized tax benefits in the statement of financial position. Under the clarified guidance, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, will be presented in the financial statements as a reduction to a deferred tax asset unless certain criteria are met. The requirements should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The amendments will be effective for the Corporation for reporting periods beginning after December 15, 2013. The Corporation does not expect these amendments to have a material effect on its financial statements. | |
Other accounting standards that have been issued or proposed by the Financial Accounting Standards Board or other standards-setting bodies are not expected to have a material impact on the Corporation’s financial position, results of operations or cash flows. |
Income_Loss_Per_Common_Share
Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2013 | |
Income (Loss) Per Common Share | ' |
2. Income (Loss) Per Common Share | |
Basic income (loss) per common share amounts for the three and nine months ended September 30, 2013 and 2012 were computed based on the weighted average number of common shares outstanding during the period. Diluted income (loss) per share adjusts for the dilutive effect of outstanding common stock options and warrants during the periods utilizing the treasury stock method. There were no common stock equivalents included in the diluted loss per share calculation for the three and nine months ended September 30, 2013 and 2012 as all outstanding options and warrants had a higher average exercise price than the average market price and were therefore anti-dilutive. Anti-dilutive common stock equivalents that were excluded in the diluted loss per common share calculation for the three and nine months ended September 30, 2013 and 2012 were 235,380. |
Assets_Pledged
Assets Pledged | 9 Months Ended |
Sep. 30, 2013 | |
Assets Pledged | ' |
3. Assets Pledged | |
Approximately $58.6 million and $62.7 million of debt securities at September 30, 2013 and December 31, 2012, respectively, were pledged by the Bank as collateral to secure deposits of the State of South Carolina, and Union, Laurens and York counties along with additional borrowings and repurchase agreements. The Bank pledges as collateral for Federal Home Loan Bank (the “FHLB”) advances commercial and residential real estate mortgage loans under a collateral agreement with the FHLB whereby the Bank maintains, free of other encumbrances, qualifying mortgages (as defined) with unpaid principal balances equal to, when discounted at 75% of the unpaid principal balances, 100% of total advances. As part of the total assets pledged, the Bank will also pledge securities to cover additional advances from the FHLB that exceed the qualifying mortgages balance along with security repurchase lines with various brokerage houses. |
Loans_net
Loans, net | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans, net | ' | ||||||||||||||||||||||||||||||||
4. Loans, net | |||||||||||||||||||||||||||||||||
Loans receivable consisted of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Fixed-rate residential | $ | 5,456 | $ | 6,329 | |||||||||||||||||||||||||||||
Adjustable-rate residential | 3,176 | 3,376 | |||||||||||||||||||||||||||||||
Commercial real estate | 72,185 | 75,210 | |||||||||||||||||||||||||||||||
Construction | 566 | 59 | |||||||||||||||||||||||||||||||
Total mortgage loans | 81,383 | 84,974 | |||||||||||||||||||||||||||||||
Commercial non real estate | 10,388 | 9,024 | |||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||
Home equity | 12,896 | 14,063 | |||||||||||||||||||||||||||||||
Consumer and installment | 16,404 | 19,468 | |||||||||||||||||||||||||||||||
Consumer lines of credit | 263 | 267 | |||||||||||||||||||||||||||||||
Total consumer loans | 29,563 | 33,798 | |||||||||||||||||||||||||||||||
Total loans | 121,334 | 127,796 | |||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||
Unamortized loan discount | (163 | ) | (181 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (3,915 | ) | (4,367 | ) | |||||||||||||||||||||||||||||
Net deferred loan origination costs | 155 | 166 | |||||||||||||||||||||||||||||||
Total, net | $ | 117,411 | $ | 123,414 | |||||||||||||||||||||||||||||
Weighted-average interest rate of loans | 4.94 | % | 5.15 | % | |||||||||||||||||||||||||||||
Information about impaired loans for the periods ended September 30, 2013 and December 31, 2012 is as follows (in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Loans receivable for which there is a related allowance for credit losses determined in accordance with ASC 310-10/Statement No. 114 | $ | 5,428 | $ | 5,339 | |||||||||||||||||||||||||||||
Other impaired loans | 12,988 | 20,508 | |||||||||||||||||||||||||||||||
Total impaired loans | $ | 18,416 | $ | 25,847 | |||||||||||||||||||||||||||||
Average monthly balance of impaired loans | $ | 19,630 | $ | 29,171 | |||||||||||||||||||||||||||||
Specific allowance for credit losses | $ | 2,071 | $ | 2,385 | |||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
For the Periods Ended September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-Sep-13 | Unpaid | Recorded | Related | Average | |||||||||||||||||||||||||||||
Principal | Investment | Allowance | Recorded | ||||||||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,983 | $ | 5,852 | $ | -- | $ | 6,418 | |||||||||||||||||||||||||
Commercial non real estate | 2,333 | 1,938 | -- | 2,135 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 4,366 | 3,152 | -- | 3,759 | |||||||||||||||||||||||||||||
Consumer - home equity | 573 | 546 | -- | 560 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 1,707 | 1,500 | -- | 1,604 | |||||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,484 | $ | 3,766 | $ | 1,278 | $ | 5,125 | |||||||||||||||||||||||||
Commercial non real estate | 94 | 77 | 38 | 85 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 1,667 | 1,585 | 755 | 1,626 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | -- | -- | -- | -- | |||||||||||||||||||||||||||||
Total: | $ | 24,207 | $ | 18,416 | $ | 2,071 | $ | 21,312 | |||||||||||||||||||||||||
Commercial | 15,894 | 11,633 | 1,316 | 13,763 | |||||||||||||||||||||||||||||
Consumer | 6,606 | 5,283 | 755 | 5,945 | |||||||||||||||||||||||||||||
Residential | 1,707 | 1,500 | -- | 1,604 | |||||||||||||||||||||||||||||
31-Dec-12 | Unpaid | Recorded | Related | Average | |||||||||||||||||||||||||||||
Principal | Investment | Allowance | Recorded | ||||||||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 14,778 | $ | 13,273 | $ | -- | $ | 14,025 | |||||||||||||||||||||||||
Commercial non real estate | 2,004 | 1,680 | -- | 1,842 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer - other | 4,611 | 3,696 | -- | 4,154 | |||||||||||||||||||||||||||||
Consumer - home equity | 566 | 536 | -- | 551 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 1,448 | 1,323 | -- | 1,385 | |||||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,622 | $ | 3,388 | $ | 1,260 | $ | 4,505 | |||||||||||||||||||||||||
Commercial non real estate | 206 | 189 | 49 | 198 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 1,363 | 1,354 | 962 | 1,358 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 416 | 408 | 114 | 412 | |||||||||||||||||||||||||||||
Total: | $ | 31,014 | $ | 25,847 | $ | 2,385 | $ | 28,430 | |||||||||||||||||||||||||
Commercial | 22,610 | 18,530 | 1,309 | 20,570 | |||||||||||||||||||||||||||||
Consumer | 6,540 | 5,586 | 962 | 6,063 | |||||||||||||||||||||||||||||
Residential | 1,864 | 1,731 | 114 | 1,797 | |||||||||||||||||||||||||||||
Loans Receivable on Nonaccrual Status | |||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,649 | $ | 8,734 | |||||||||||||||||||||||||||||
Commercial non real estate | 820 | 835 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 2,023 | 2,287 | |||||||||||||||||||||||||||||||
Consumer – automobile | -- | 19 | |||||||||||||||||||||||||||||||
Consumer – home equity | 314 | 329 | |||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 family | 1,226 | 970 | |||||||||||||||||||||||||||||||
Total | $ | 11,032 | $ | 13,174 | |||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans Receivable | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Charge-offs | (28 | ) | (477 | ) | (581 | ) | (15 | ) | (1,101 | ) | |||||||||||||||||||||||
Recoveries | 17 | 79 | 45 | 8 | 149 | ||||||||||||||||||||||||||||
Provisions | -- | 314 | 326 | (140 | ) | 500 | |||||||||||||||||||||||||||
Ending balance | $ | 1,029 | $ | 1,591 | $ | 1,091 | $ | 204 | $ | 3,915 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,015 | $ | 9,618 | $ | 5,283 | $ | 1,500 | $ | 18,416 | |||||||||||||||||||||||
Allowance for loan losses | 38 | 1,278 | 755 | -- | 2,071 | ||||||||||||||||||||||||||||
Collectively evaluated for impairment imprimpairment | $ | 8,373 | $ | 62,567 | $ | 24,280 | $ | 7,698 | $ | 102,918 | |||||||||||||||||||||||
Allowance for loan losses | 991 | 313 | 336 | 204 | 1,844 | ||||||||||||||||||||||||||||
Ending balance | $ | 10,388 | $ | 72,185 | $ | 29,563 | $ | 9,198 | $ | 121,334 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 1,029 | $ | 1,591 | $ | 1,091 | $ | 204 | $ | 3,915 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,887 | $ | 1,920 | $ | 484 | $ | 258 | $ | 4,549 | |||||||||||||||||||||||
Charge-offs | (118 | ) | (339 | ) | (576 | ) | (8 | ) | (1,041 | ) | |||||||||||||||||||||||
Recoveries | 52 | 94 | 5 | 4 | 155 | ||||||||||||||||||||||||||||
Provisions | (781 | ) | -- | 1,388 | 97 | 704 | |||||||||||||||||||||||||||
Ending Balance | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,869 | $ | 16,661 | $ | 5,586 | $ | 1,731 | $ | 25,847 | |||||||||||||||||||||||
Allowance for loan losses | 49 | 1,260 | 962 | 114 | 2,385 | ||||||||||||||||||||||||||||
Collectively evaluated for impairment imprimpairment | $ | 7,155 | $ | 58,549 | $ | 28,212 | $ | 8,033 | $ | 101,949 | |||||||||||||||||||||||
Allowance for loan losses | 991 | 415 | 339 | 237 | 1,982 | ||||||||||||||||||||||||||||
Ending balance | $ | 9,024 | $ | 75,210 | $ | 33,798 | $ | 9,764 | $ | 127,796 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Credit Quality Indicators | |||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Credit Quality Indicators: The Corporation regularly monitors the credit quality of its loan portfolio. Credit quality refers to the current and expected ability of borrowers to repay their obligations according to the contractual terms of such loans. Credit quality is evaluated through assignment of individual loan grades, as well as past-due and performing status analysis. Credit quality indicators allow the Corporation to assess the inherent loss on certain individual and pools of loans. | |||||||||||||||||||||||||||||||||
Commercial Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial non real | Commercial real | ||||||||||||||||||||||||||||||||
estate | estate | ||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Grade 1 Superior quality | $ | 50 | $ | 58 | $ | -- | $ | -- | |||||||||||||||||||||||||
Grade 2 Good quality | -- | -- | -- | -- | |||||||||||||||||||||||||||||
Grade 3 Satisfactory | 138 | 209 | 5,742 | 7,238 | |||||||||||||||||||||||||||||
Grade 4 Acceptable | 4,392 | 4,148 | 24,001 | 24,844 | |||||||||||||||||||||||||||||
Grade 5 Watch | 3,477 | 2,433 | 28,944 | 23,762 | |||||||||||||||||||||||||||||
Grade 6 Special mention | 731 | 1,125 | 3,741 | 6,860 | |||||||||||||||||||||||||||||
Grade 7 Substandard | 1,523 | 957 | 8,526 | 11,256 | |||||||||||||||||||||||||||||
Grade 8 Doubtful | 77 | 94 | 1,231 | 1,250 | |||||||||||||||||||||||||||||
Total | $ | 10,388 | $ | 9,024 | $ | 72,185 | $ | 75,210 | |||||||||||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. | |||||||||||||||||||||||||||||||||
The Corporation uses an internal risk rating system to classify and monitor the credit quality of loans. Loan risk ratings are based on a graduated scale representing increasing likelihood of loss. Primary responsibility for the assignment of risk ratings of loans is with the individual loan officer assigned to each loan, subject to verification by the Credit Administration department. Risk ratings are also reviewed periodically by an independent third party loan review firm that reports directly to the Board of Directors. | |||||||||||||||||||||||||||||||||
Consumer Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 7,474 | $ | 7,905 | $ | 24,484 | $ | 27,976 | |||||||||||||||||||||||||
Special mention | 363 | 732 | 920 | 1,366 | |||||||||||||||||||||||||||||
Substandard | 1,361 | 1,127 | 4,159 | 4,456 | |||||||||||||||||||||||||||||
Total | $ | 9,198 | $ | 9,764 | $ | 29,563 | $ | 33,798 | |||||||||||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. | |||||||||||||||||||||||||||||||||
Consumer Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
Other | Consumer automobile | Home equity | 1-4 family | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Performing | $ | 13,893 | $ | 16,676 | $ | 751 | $ | 753 | $ | 12,582 | $ | 13,734 | $ | 7,972 | $ | 8,794 | |||||||||||||||||
Nonperforming | 2,023 | 2,287 | -- | 19 | 314 | 329 | 1,226 | 970 | |||||||||||||||||||||||||
Total | $ | 15,916 | $ | 18,963 | $ | 751 | $ | 772 | $ | 12,896 | $ | 14,063 | $ | 9,198 | $ | 9,764 | |||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. | |||||||||||||||||||||||||||||||||
Loans graded one through five are considered “pass” credits. As of September 30, 2013, approximately 81% of the loan portfolio was considered pass credits. For loans to qualify for these grades, they must be performing relatively close to expectations, with no significant departures from the intended source and timing of repayment. | |||||||||||||||||||||||||||||||||
Loans with a credit grade of six are not considered classified; however they are categorized as a special mention or watch list credit. This classification is utilized by us when we have an initial concern about the financial health of a borrower. These loans are designated as such in order to be monitored more closely than other credits in our portfolio. We then gather current financial information about the borrower and evaluate our current risk in the credit. We will then either reclassify the loan as “substandard” or back to its original risk rating after a review of the information. There are times when we may leave the loan on the watch list, if, in management’s opinion, there are risks that cannot be fully evaluated without the passage of time, and we determine to review the loan on a more regular basis. Loans on the watch list are not considered problem loans until they are determined by management to be classified as substandard. As of September 30, 2013, we had loans totaling $5.7 million rated as Special Mention compared to $10.1 million for December 31, 2012. | |||||||||||||||||||||||||||||||||
Loans graded seven or greater are considered classified credits. Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. The loan has well-defined weaknesses that jeopardize the liquidation value and has the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Loans classified as doubtful have the weaknesses of Substandard but have additional factors that make collection or liquidation in full highly questionable and improbable. At September 30, 2013, classified loans totaled $16.9 million, with all but one loan being collateralized by real estate. This compares to classified loans of $19.1 million at December 31, 2012. Classified credits are evaluated for impairment on a quarterly basis. | |||||||||||||||||||||||||||||||||
The following are past due loans for the Corporation’s loans receivable for the periods ended September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||||||||||||||
Greater | |||||||||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Than | Total Past | Total Loans | |||||||||||||||||||||||||||||
Past Due | Past Due | 90 Days | Due | Current | Receivable | ||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | $ | 48 | $ | 48 | $ | 737 | $ | 833 | $ | 9,555 | $ | 10,388 | |||||||||||||||||||||
Commercial real estate | 2,538 | 1,577 | 4,126 | 8,241 | 63,944 | 72,185 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 229 | 181 | 1,026 | 1,436 | 14,480 | 15,916 | |||||||||||||||||||||||||||
Consumer – automobile | -- | -- | -- | -- | 751 | 751 | |||||||||||||||||||||||||||
Consumer – home equity | 115 | 107 | 162 | 384 | 12,512 | 12,896 | |||||||||||||||||||||||||||
Residential 1-4 family | 159 | 250 | 500 | 909 | 8,289 | 9,198 | |||||||||||||||||||||||||||
Total | $ | 3,089 | $ | 2,163 | $ | 6,551 | $ | 11,803 | $ | 109,531 | $ | 121,334 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | $ | 146 | $ | 110 | $ | 646 | $ | 902 | $ | 8,122 | $ | 9,024 | |||||||||||||||||||||
Commercial real estate | 2,525 | 482 | 6,047 | 9,054 | 66,156 | 75,210 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 638 | 419 | 1,045 | 2,102 | 16,861 | 18,963 | |||||||||||||||||||||||||||
Consumer – automobile | 11 | 5 | 3 | 19 | 753 | 772 | |||||||||||||||||||||||||||
Consumer – home equity | 157 | 7 | 168 | 332 | 13,731 | 14,063 | |||||||||||||||||||||||||||
Residential 1-4 family | 259 | 406 | 970 | 1,635 | 8,129 | 9,764 | |||||||||||||||||||||||||||
Total | $ | 3,736 | $ | 1,429 | $ | 8,879 | $ | 14,044 | $ | 113,752 | $ | 127,796 | |||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||
As a result of adopting the amendments in ASU 2011-02, the Corporation reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they were considered troubled debt restructurings (TDRs) under the amended guidance. The Corporation identified as TDRs certain loans for which the allowance for loan losses had previously been measured under a general allowance methodology. Upon identifying those loans as TDRs, the Corporation identified them as impaired under the guidance. The amendments require prospective application of the impairment measurement guidance for those loans newly identified as impaired. At September 30, 2013, the recorded investment in loans for which the allowance was previously measured under a general allowance methodology and are now impaired was $5.8 million, and the allowance for loan losses associated with those loans, on the basis of a current evaluation of loss was $698,000. The following are loan modifications for the Corporation’s loans receivable for the three and nine month periods ended September 30, 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Pre | Post | Pre | Post | ||||||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
Troubled Debt Restructuring | of New | Recorded | Recorded | of New | Recorded | Recorded | |||||||||||||||||||||||||||
Added during current period | Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | -- | $ | -- | $ | -- | -- | $ | -- | $ | -- | |||||||||||||||||||||||
Commercial real estate | -- | -- | -- | 2 | 326 | 326 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 6 | 655 | 648 | 9 | 1,001 | 988 | |||||||||||||||||||||||||||
Residential 1-4 family | 2 | 133 | 133 | 3 | 182 | 182 | |||||||||||||||||||||||||||
Total | 8 | $ | 788 | $ | 781 | 14 | $ | 1,509 | $ | 1,496 | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Post | Post | ||||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Number | Outstanding | Defaulted | Number | Outstanding | Defaulted | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | of New | Recorded | Recorded | of New | Recorded | Recorded | |||||||||||||||||||||||||||
Defaulted during the period | Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||||||||||||||||||
Added since last twelve months | (in thousands) | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | -- | $ | -- | $ | -- | -- | $ | -- | $ | -- | |||||||||||||||||||||||
Commercial real estate | -- | -- | -- | -- | -- | -- | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 2 | 97 | 82 | 4 | 284 | 215 | |||||||||||||||||||||||||||
Total | 2 | $ | 97 | $ | 82 | 4 | $ | 284 | $ | 215 | |||||||||||||||||||||||
During the nine months ended September 30, 2013, the Corporation modified 14 loans that were considered to be troubled debt restructurings. We extended the terms for 13 of these loans and the interest rate was lowered for 9 of these loans. During the nine months ended September 30, 2013, the Corporation had 4 loans default that had previously been restructured. A default occurs when a loan does not perform as agreed under the new terms to the point it becomes 90 days or more past due. |
Contingencies_and_loan_commitm
Contingencies and loan commitments | 9 Months Ended | |
Sep. 30, 2013 | ||
Contingencies and loan commitments | ' | |
5. Contingencies and loan commitments | ||
In the ordinary course of business, the Corporation enters into financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These instruments expose the Bank to credit risk in excess of the amount recognized on the balance sheet. | ||
The Corporation’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Total credit exposure at September 30, 2013 related to these items is summarized below: | ||
Loan Commitments: | Contract Amount | |
Unused portions of loans and credit lines | $13,631,000 | |
Loan commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained upon extension of credit is based on management’s credit evaluation of the counter party. Collateral held is primarily residential and commercial property. Total loan commitments outstanding at September 30, 2013 consisted of fixed and adjustable rate loans at rates ranging from 4.5% to 6.5%. |
FixedFloating_Rate_Junior_Subo
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures | ' | |||||||||||||||
6. Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures | ||||||||||||||||
On July 18, 2006, the Corporation sponsored the creation of Provident Community Bancshares Capital Trust I (“Capital Trust I”). The Corporation is the owner of all of the common securities of Capital Trust I. On July 21, 2006, Capital Trust I issued $4,000,000 in the form of floating/fixed rate capital securities through a pooled trust preferred securities offering. The proceeds from this issuance, along with the Corporation’s $124,000 capital contribution for Capital Trust I’s common securities, were used to acquire $4,124,000 aggregate principal amount of the Corporation’s floating rate junior subordinated deferrable interest debentures due October 1, 2036 (the “Debentures”), which constitute the sole asset of Capital Trust I. The interest rate on the Debentures and the capital securities is variable and adjustable quarterly at 1.74% over the three-month LIBOR. The Corporation has, through the Trust Agreement establishing Capital Trust I, the Guarantee Agreement, the notes and the related Debenture, taken together, fully irrevocably and unconditionally guaranteed all of the Capital Trust I obligations under the capital securities. | ||||||||||||||||
On November 28, 2006, the Corporation sponsored the creation of Provident Community Bancshares Capital Trust II (“Capital Trust II”). The Corporation is the owner of all of the common securities of Capital Trust II. On December 15, 2006, Capital Trust II issued $8,000,000 in the form of floating rate capital securities through a pooled trust preferred securities offering. The proceeds of Capital Trust II were utilized for the redemption of Union Financial Bancshares Statutory Trust (the “Trust”) issued on December 18, 2001. The proceeds from this issuance, along with the Corporation’s $247,000 capital contribution for Capital Trust’s II common securities, were used to acquire $8,247,000 aggregate principal amount of the Corporation’s floating rate junior subordinated deferrable interest debentures due March 1, 2037 (the “Debentures”), which constitute the sole asset of Capital Trust II. The interest rate on the Debentures and the capital securities is variable and adjustable quarterly at 1.74% over the three-month LIBOR. The Corporation has, through the Trust agreement establishing Capital Trust II, the Guarantee Agreement, the notes and the related Debenture, taken together, fully irrevocably and unconditionally guaranteed all of Capital Trust II obligations under the capital securities. | ||||||||||||||||
The Corporation exercised its right on July 22, 2010 to defer the payment of interest on its outstanding subordinated debentures for an indefinite period (which can be no longer than 20 consecutive quarterly periods). Further, pursuant to a written agreement between the Corporation and the Federal Reserve, the Corporation cannot pay any dividends on its subordinated debentures without the prior written consent of the Federal Reserve Bank. This and any future deferred distributions will continue to accrue interest at a current rate of LIBOR+1.74% for the $4.0 million of trust preferred securities issued in July 2006 and at a current rate of LIBOR+1.74% for the $8.0 million of trust preferred securities issued in December 2006. Distributions on the trust preferred securities are cumulative. Therefore, in accordance with generally accepted accounting principles, the Corporation will continue to accrue the monthly cost of the trust preferred securities as it has since issuance. Total interest deferred through September 30, 2013 is $1.2 million. | ||||||||||||||||
A summary of the Subordinated Deferrable Interest Debentures issued and outstanding follows: | ||||||||||||||||
Amount Outstanding at | Distribution | |||||||||||||||
September 30, | Payment | |||||||||||||||
Name | 2013 | 2012 | Rate | Maturity | Frequency | |||||||||||
Provident Community Bancshares Capital Trust I | $ | 4,000,000 | $ | 4,000,000 | 2.01% | 1-Oct-36 | Quarterly | |||||||||
Provident Community Bancshares Capital Trust II | 8,000,000 | 8,000,000 | 2.01% | 1-Mar-37 | Quarterly | |||||||||||
Total | $ | 12,000,000 | $ | 12,000,000 | ||||||||||||
The above debentures are subject to redemption at par at the option of the Corporation, subject to prior regulatory approval, in whole or in part on any interest payment date. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||
7. Fair Value of Financial Instruments | |||||||||||||||||||||
The Corporation utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Effective January 1, 2008, the Corporation adopted FASB 157 (ASC 820-10-15), Fair Value Measurements, which provides a framework for measuring and disclosing fair value under generally accepted accounting principles. This standard requires disclosures about the fair value of assets and liabilities recognized in the balance sheet in periods subsequent to initial recognition, whether the measurements are made on a recurring basis (for example, available-for-sale investment securities) or on a nonrecurring basis (for example, impaired loans). | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
ASC 820-10-15 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1 | Valuation is based upon quoted prices in active markets for identical assets or liabilities. | ||||||||||||||||||||
Level 2 | Valuation is based upon quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | ||||||||||||||||||||
Level 3 | Valuation is based upon quoted prices for similar assets or liabilities; quoted prices in markets that are not active; and model-based techniques whose value is determined using pricing models, discounted cash flow methodologies and similar techniques. | ||||||||||||||||||||
Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. | |||||||||||||||||||||
Investment Securities Available-for-Sale | |||||||||||||||||||||
Available-for-sale investment securities are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 may include asset-backed securities in less liquid markets. | |||||||||||||||||||||
Loans | |||||||||||||||||||||
The Corporation is predominantly an asset based lender with real estate serving as collateral on a substantial majority of loans. The Corporation does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and the related impairment is charged against the allowance or a specific allowance is established. The Corporation performs its allowance for loan and lease losses calculation on a quarterly basis, which also includes an evaluation of all nonperforming loans for further impairment even if a new appraisal is not obtained on a quarterly basis. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Loans which are deemed to be impaired are primarily valued at the fair values of the underlying real estate collateral. Such fair values are obtained using collateral net liquidation value, market value of similar debt, enterprise value, and discounted cash flows. Those impaired loans not requiring a specific allowance represent loans for which the fair value of the expected repayment or collateral meet or exceed the recorded investment in such loans. The Corporation considers all nonaccrual loans and troubled debt restructurings to be impaired. When the fair value of the collateral is based on an observable market price or a current appraised value, the Corporation records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Corporation records the impaired loans as nonrecurring Level 3. Certain assumptions and unobservable inputs are currently being used by appraisers, therefore qualifying impaired loans as Level 3. Consistent with the regulator’s appraisal guidance dated December 10, 2010, the Corporation has adopted a loan reappraisal policy. The regulatory guidance states that a bank should establish criteria for assessing whether an existing appraisal or evaluation continues to reflect the market value of the property. Generally, impaired loans will be evaluated using an existing appraisal if the valuation has been established within the previous twelve months. However, market conditions may dictate an updated appraisal for a lesser timeframe. Factors include deterioration in the credit since origination or changes in market conditions. Changes in market conditions could include material changes in current and projected vacancy, absorption rates, lease terms, rental rates, and sale prices, including concessions and overruns and delays in construction costs. Fluctuations in discount or direct capitalization rates also are indicators of changing market conditions. In assessing whether changes in market conditions are material, the Bank considers the individual and aggregate effect of these changes on its collateral protection and the risk in its real estate lending program or credit portfolios. | |||||||||||||||||||||
Real Estate Acquired Through Foreclosure | |||||||||||||||||||||
Other real estate owned (“OREO”) is adjusted to fair value upon transfer of the loans to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Certain assumptions and unobservable inputs are currently being used by appraisers, therefore qualifying these assets as Level 3. | |||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||
The following tables present the balances of assets recorded at fair value on a recurring basis by level within the hierarchy as of September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Total | Active Markets for | Observable | Unobservable | ||||||||||||||||||
September 30, | Identical Assets | Inputs | Inputs | ||||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Investment Securities: | |||||||||||||||||||||
Government Sponsored Enterprises | $ | 118,307 | $ | 118,307 | $ | -- | $ | -- | |||||||||||||
Trust Preferred Securities | 5,339 | -- | 3,543 | 1,796 | |||||||||||||||||
Total Investment Securities | 123,646 | 118,307 | 3,543 | 1,796 | |||||||||||||||||
Mortgage-Backed and | 53,068 | -- | 53,068 | -- | |||||||||||||||||
Related Securities | |||||||||||||||||||||
Total | $ | 176,714 | $ | 118,307 | $ | 56,611 | $ | 1,796 | |||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Total | Active Markets for | Observable | Unobservable | ||||||||||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Investment Securities: | |||||||||||||||||||||
Government Sponsored Enterprises | $ | 123,679 | $ | 123,679 | $ | -- | $ | -- | |||||||||||||
Trust Preferred Securities | 4,335 | -- | 2,788 | 1,547 | |||||||||||||||||
Total Investment Securities | 128,014 | 123,679 | 2,788 | 1,547 | |||||||||||||||||
Mortgage-Backed and | 41,200 | -- | 41,200 | -- | |||||||||||||||||
Related Securities | |||||||||||||||||||||
Total | $ | 169,214 | $ | 123,679 | $ | 43,988 | $ | 1,547 | |||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended September 30, 2013. | |||||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||
Unobservable Inputs (Level 3) (in thousands) | |||||||||||||||||||||
Investment Securities | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Beginning balance at June 30, 2013 | $ | 1,693 | |||||||||||||||||||
Transfers into Level 3 | -- | ||||||||||||||||||||
Total gains/ (losses) included in: | |||||||||||||||||||||
Net loss | -- | ||||||||||||||||||||
Other comprehensive income | 103 | ||||||||||||||||||||
Purchases, sales, issuances and settlements, net | -- | ||||||||||||||||||||
Ending balance at September 30, 2013 | $ | 1,796 | |||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||
Unobservable Inputs (Level 3) (in thousands) | |||||||||||||||||||||
Investment Securities | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Beginning balance at December 31, 2012 | $ | 1,547 | |||||||||||||||||||
Transfers into Level 3 | -- | ||||||||||||||||||||
Total gains/ (losses) included in: | |||||||||||||||||||||
Net loss | -- | ||||||||||||||||||||
Other comprehensive income | 253 | ||||||||||||||||||||
Purchases, sales, issuances and settlements, net | (4 | ) | |||||||||||||||||||
Ending balance at September 30, 2013 | $ | 1,796 | |||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||
The Corporation may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period and assumes all nonperforming assets have specific reserves or have been written down to fair value. | |||||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) | |||||||||||||||||||||
Fair Value at | Significant | General Range | |||||||||||||||||||
September 30, | Valuation | Unobservable | Of Significant | ||||||||||||||||||
2013 | Technique | Inputs | Unobservable | ||||||||||||||||||
Input Values | |||||||||||||||||||||
$ | 16,345 | Appraised Value/ | Appraisals and/or sales of | 0-25% | |||||||||||||||||
Discounted Cash | comparable properties/ | ||||||||||||||||||||
Impaired loans | Flows Market Value | Independent quotes | |||||||||||||||||||
of Note | |||||||||||||||||||||
4,891 | Appraised Value/ | 0-40% | |||||||||||||||||||
Comparable Sales/ | Appraisals and/or sales of | ||||||||||||||||||||
Other | Other Estimates from | comparable properties/ | |||||||||||||||||||
real estate owned | Independent Sources | Independent quotes | |||||||||||||||||||
Assets at fair value | $ | 21,236 | |||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) | |||||||||||||||||||||
Fair Value at | General Range | ||||||||||||||||||||
December | Valuation | Significant | Of Significant | ||||||||||||||||||
31, 2012 | Technique | Unobservable | Unobservable | ||||||||||||||||||
Inputs | Input Values | ||||||||||||||||||||
$ | 23,462 | Appraised Value/ | Appraisals and/or sales of | 0-25% | |||||||||||||||||
Discounted Cash | comparable properties/ | ||||||||||||||||||||
Impaired loans | Flows Market Value | Independent quotes | |||||||||||||||||||
of Note | |||||||||||||||||||||
9,174 | Appraised Value/ | Appraisals and/or sales of | 0-40% | ||||||||||||||||||
Comparable Sales/ | comparable properties/ | ||||||||||||||||||||
Other real estate owned | Other Estimates from | Independent quotes | |||||||||||||||||||
Independent Sources | |||||||||||||||||||||
Assets at fair value | $ | 32,636 | |||||||||||||||||||
Level 3 Valuation Methodologies. Following is a description of the unobservable inputs used for Level 3 fair value measurements. | |||||||||||||||||||||
Impaired Loans. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Loans which are deemed to be impaired are primarily valued at the fair values of the underlying real estate collateral. Such fair values are obtained using collateral net liquidation value, market value of similar debt, enterprise value, and discounted cash flows. Those impaired loans not requiring a specific allowance represent loans for which the fair value of the expected repayment or collateral meet or exceed the recorded investment in such loans. The Corporation considers all nonaccrual loans and troubled debt restructurings to be impaired. When the fair value of the collateral is based on an observable market price or a current appraised value, the Corporation records the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Corporation records the impaired loans as nonrecurring Level 3. Certain assumptions and unobservable inputs are currently being used by appraisers, therefore qualifying impaired loans as Level 3. Impaired loan totals represent nonperforming loans for the periods indicated. | |||||||||||||||||||||
OREO is adjusted to fair value upon transfer of the loans to OREO. Subsequently, OREO is carried at the lower of carrying value or fair value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. Certain assumptions and unobservable inputs are currently being used by appraisers, therefore qualifying these assets as Level 3. | |||||||||||||||||||||
Investment Securities: Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets. Level 2 securities include mortgage-backed securities issued by government sponsored entities, municipal bonds and corporate debt securities. Securities classified as Level 3 may include asset-backed securities in less liquid markets. | |||||||||||||||||||||
The following methods and assumptions were used by the Corporation in estimating fair values of financial instruments as disclosed herein: | |||||||||||||||||||||
Cash and federal funds sold- The carrying amounts of cash and due from banks and federal funds sold approximate their fair value. | |||||||||||||||||||||
Available for sale securities - Fair values for securities are based on quoted market prices. The carrying values of restricted equity securities approximate fair values. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. | |||||||||||||||||||||
Loans - The Corporation is predominantly an asset based lender with real estate serving as collateral on a substantial majority of loans. The Corporation does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and the related impairment is charged against the allowance or a specific allowance is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Loans which are deemed to be impaired are primarily valued at the fair values of the underlying real estate collateral. Such fair values are obtained using collateral net liquidation value, market value of similar debt, enterprise value, and discounted cash flows. Those impaired loans not requiring a specific allowance represent loans for which the fair value of the expected repayment or collateral meet or exceed the recorded investment in such loans. The Corporation considers all nonaccrual loans and troubled debt restructurings to be impaired. | |||||||||||||||||||||
Cash surrender value of life insurance - The carrying amounts of cash surrender values of life insurance approximate their fair value. | |||||||||||||||||||||
Deposit liabilities - The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is, their carrying amounts). The carrying amounts of variable-rate, fixed-term money-market accounts and certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. | |||||||||||||||||||||
Advances from the FHLB and other borrowings - The fair values of the Corporation’s borrowings are estimated using discounted cash flow analysis based on the Corporation’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Securities sold under agreements to repurchase - The fair values of the Corporation’s repurchase agreements are estimated using discounted cash flow analysis based on the Corporation’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Accrued interest - The carrying amounts of accrued interest approximate their fair values. | |||||||||||||||||||||
Floating rate junior subordinated deferrable interest debentures - The fair values of the Corporation’s floating rate debentures are estimated using discounted cash flow analysis based on the Corporation’s current incremental borrowing rates for similar types of borrowing arrangements. | |||||||||||||||||||||
Off-balance-sheet instruments - Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counter parties’ credit standings. | |||||||||||||||||||||
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Corporation’s financial instruments as of September 30, 2013 and December 31, 2012. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Quoted | |||||||||||||||||||||
Prices in | |||||||||||||||||||||
Active Markets | Significant | ||||||||||||||||||||
for Identical | Other | Significant | |||||||||||||||||||
Assets or | Observable | Unobservable | |||||||||||||||||||
Carrying | Liabilities | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial Instruments - Assets | |||||||||||||||||||||
Loans | $ | 117,411 | $ | 123,188 | -- | -- | $ | 123,188 | |||||||||||||
Financial Instruments – Liabilities | |||||||||||||||||||||
Time deposits | $ | 106,806 | $ | 106,902 | $ | -- | $ | 106,902 | $ | -- | |||||||||||
Securities sold under agreements | |||||||||||||||||||||
to repurchase | 5,119 | 5,119 | -- | 5,119 | -- | ||||||||||||||||
Subordinated debentures | 12,372 | 12,372 | -- | 12,372 | -- | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial Instruments - Assets | |||||||||||||||||||||
Loans | $ | 123,414 | $ | 123,553 | -- | -- | $ | 123,553 | |||||||||||||
Financial Instruments – Liabilities | |||||||||||||||||||||
Time deposits | $ | 117,167 | $ | 117,723 | $ | -- | $ | 117,723 | $ | -- | |||||||||||
Securities sold under agreements | |||||||||||||||||||||
to repurchase | 6,280 | 6,280 | -- | 6,280 | -- | ||||||||||||||||
Subordinated debentures | 12,372 | 12,372 | -- | 12,372 | -- |
Preferred_Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2013 | |
Preferred Stock | ' |
8. Preferred Stock | |
On March 13, 2009, as part of the Capital Purchase Program of the Troubled Asset Relief Program (“TARP”) United States Department of the Treasury’s Capital Purchase Program, the Corporation issued 9,266 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 per share liquidation preference (“TARP Preferred Stock”), and a warrant to purchase up to 178,880 shares of the Corporation’s common stock for a period of ten years at an exercise price of $7.77 per share, in exchange for $9.3 million in cash from the United States Department of the Treasury. The proceeds, net of issuance costs consisting primarily of legal fees, were allocated between the preferred stock and the warrant on a pro rata basis, based upon the estimated market values of the preferred stock and the warrant. As a result, $25,000 of the proceeds was allocated to the warrant, which increased additional paid-in-capital from common stock. The amount allocated to the warrant is considered a discount on the preferred stock and will be amortized using the level yield method over a five-year period through a charge to retained earnings. Such amortization will not reduce net income, but will reduce income available for common shares. | |
The Corporation may redeem the preferred stock at its liquidation preference plus accrued and unpaid dividends at any time with prior regulatory approval. | |
Under the terms of the TARP Preferred Stock, the Corporation is required to pay on a quarterly basis a dividend rate of 5% per year for the first five years, after which the dividend rate automatically increases to 9% per year. Dividend payments may be deferred, but the dividend is cumulative and failure to pay dividends for six dividend periods may trigger board appointment rights for the holder of the TARP Preferred Stock. The Corporation exercised its right on July 22, 2010 to defer its regular quarterly cash dividend on its TARP Preferred Stock. Total deferred dividends through September 30, 2013 are $1.4 million. No action has been taken by the holder of the TARP Preferred Stock regarding board appointments. |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
9. Subsequent Events | |
Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and no subsequent events have occurred requiring accrual or disclosure. |
Loans_net_Tables
Loans, net (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Loans Receivable | ' | ||||||||||||||||||||||||||||||||
Loans receivable consisted of the following (dollars in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2013 | ||||||||||||||||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||||||||||||
Fixed-rate residential | $ | 5,456 | $ | 6,329 | |||||||||||||||||||||||||||||
Adjustable-rate residential | 3,176 | 3,376 | |||||||||||||||||||||||||||||||
Commercial real estate | 72,185 | 75,210 | |||||||||||||||||||||||||||||||
Construction | 566 | 59 | |||||||||||||||||||||||||||||||
Total mortgage loans | 81,383 | 84,974 | |||||||||||||||||||||||||||||||
Commercial non real estate | 10,388 | 9,024 | |||||||||||||||||||||||||||||||
Consumer loans: | |||||||||||||||||||||||||||||||||
Home equity | 12,896 | 14,063 | |||||||||||||||||||||||||||||||
Consumer and installment | 16,404 | 19,468 | |||||||||||||||||||||||||||||||
Consumer lines of credit | 263 | 267 | |||||||||||||||||||||||||||||||
Total consumer loans | 29,563 | 33,798 | |||||||||||||||||||||||||||||||
Total loans | 121,334 | 127,796 | |||||||||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||||||
Unamortized loan discount | (163 | ) | (181 | ) | |||||||||||||||||||||||||||||
Allowance for loan losses | (3,915 | ) | (4,367 | ) | |||||||||||||||||||||||||||||
Net deferred loan origination costs | 155 | 166 | |||||||||||||||||||||||||||||||
Total, net | $ | 117,411 | $ | 123,414 | |||||||||||||||||||||||||||||
Weighted-average interest rate of loans | 4.94 | % | 5.15 | % | |||||||||||||||||||||||||||||
Information about Impaired Loans | ' | ||||||||||||||||||||||||||||||||
Information about impaired loans for the periods ended September 30, 2013 and December 31, 2012 is as follows (in thousands): | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Loans receivable for which there is a related allowance for credit losses determined in accordance with ASC 310-10/Statement No. 114 | $ | 5,428 | $ | 5,339 | |||||||||||||||||||||||||||||
Other impaired loans | 12,988 | 20,508 | |||||||||||||||||||||||||||||||
Total impaired loans | $ | 18,416 | $ | 25,847 | |||||||||||||||||||||||||||||
Average monthly balance of impaired loans | $ | 19,630 | $ | 29,171 | |||||||||||||||||||||||||||||
Specific allowance for credit losses | $ | 2,071 | $ | 2,385 | |||||||||||||||||||||||||||||
Impaired Loans | ' | ||||||||||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||||||||||
For the Periods Ended September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
30-Sep-13 | Unpaid | Recorded | Related | Average | |||||||||||||||||||||||||||||
Principal | Investment | Allowance | Recorded | ||||||||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,983 | $ | 5,852 | $ | -- | $ | 6,418 | |||||||||||||||||||||||||
Commercial non real estate | 2,333 | 1,938 | -- | 2,135 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 4,366 | 3,152 | -- | 3,759 | |||||||||||||||||||||||||||||
Consumer - home equity | 573 | 546 | -- | 560 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 1,707 | 1,500 | -- | 1,604 | |||||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,484 | $ | 3,766 | $ | 1,278 | $ | 5,125 | |||||||||||||||||||||||||
Commercial non real estate | 94 | 77 | 38 | 85 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 1,667 | 1,585 | 755 | 1,626 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | -- | -- | -- | -- | |||||||||||||||||||||||||||||
Total: | $ | 24,207 | $ | 18,416 | $ | 2,071 | $ | 21,312 | |||||||||||||||||||||||||
Commercial | 15,894 | 11,633 | 1,316 | 13,763 | |||||||||||||||||||||||||||||
Consumer | 6,606 | 5,283 | 755 | 5,945 | |||||||||||||||||||||||||||||
Residential | 1,707 | 1,500 | -- | 1,604 | |||||||||||||||||||||||||||||
31-Dec-12 | Unpaid | Recorded | Related | Average | |||||||||||||||||||||||||||||
Principal | Investment | Allowance | Recorded | ||||||||||||||||||||||||||||||
Balance | Investment | ||||||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 14,778 | $ | 13,273 | $ | -- | $ | 14,025 | |||||||||||||||||||||||||
Commercial non real estate | 2,004 | 1,680 | -- | 1,842 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer - other | 4,611 | 3,696 | -- | 4,154 | |||||||||||||||||||||||||||||
Consumer - home equity | 566 | 536 | -- | 551 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 1,448 | 1,323 | -- | 1,385 | |||||||||||||||||||||||||||||
With a related allowance recorded: | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 5,622 | $ | 3,388 | $ | 1,260 | $ | 4,505 | |||||||||||||||||||||||||
Commercial non real estate | 206 | 189 | 49 | 198 | |||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 1,363 | 1,354 | 962 | 1,358 | |||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 Family | 416 | 408 | 114 | 412 | |||||||||||||||||||||||||||||
Total: | $ | 31,014 | $ | 25,847 | $ | 2,385 | $ | 28,430 | |||||||||||||||||||||||||
Commercial | 22,610 | 18,530 | 1,309 | 20,570 | |||||||||||||||||||||||||||||
Consumer | 6,540 | 5,586 | 962 | 6,063 | |||||||||||||||||||||||||||||
Residential | 1,864 | 1,731 | 114 | 1,797 | |||||||||||||||||||||||||||||
Loans Receivable on Non - Accrual Basis | ' | ||||||||||||||||||||||||||||||||
Loans Receivable on Nonaccrual Status | |||||||||||||||||||||||||||||||||
As of September 30, 2013 and December 31, 2012 | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial real estate | $ | 6,649 | $ | 8,734 | |||||||||||||||||||||||||||||
Commercial non real estate | 820 | 835 | |||||||||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||||||
Consumer – other | 2,023 | 2,287 | |||||||||||||||||||||||||||||||
Consumer – automobile | -- | 19 | |||||||||||||||||||||||||||||||
Consumer – home equity | 314 | 329 | |||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
1-4 family | 1,226 | 970 | |||||||||||||||||||||||||||||||
Total | $ | 11,032 | $ | 13,174 | |||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans Receivable | ' | ||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans Receivable | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Charge-offs | (28 | ) | (477 | ) | (581 | ) | (15 | ) | (1,101 | ) | |||||||||||||||||||||||
Recoveries | 17 | 79 | 45 | 8 | 149 | ||||||||||||||||||||||||||||
Provisions | -- | 314 | 326 | (140 | ) | 500 | |||||||||||||||||||||||||||
Ending balance | $ | 1,029 | $ | 1,591 | $ | 1,091 | $ | 204 | $ | 3,915 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,015 | $ | 9,618 | $ | 5,283 | $ | 1,500 | $ | 18,416 | |||||||||||||||||||||||
Allowance for loan losses | 38 | 1,278 | 755 | -- | 2,071 | ||||||||||||||||||||||||||||
Collectively evaluated for impairment imprimpairment | $ | 8,373 | $ | 62,567 | $ | 24,280 | $ | 7,698 | $ | 102,918 | |||||||||||||||||||||||
Allowance for loan losses | 991 | 313 | 336 | 204 | 1,844 | ||||||||||||||||||||||||||||
Ending balance | $ | 10,388 | $ | 72,185 | $ | 29,563 | $ | 9,198 | $ | 121,334 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 1,029 | $ | 1,591 | $ | 1,091 | $ | 204 | $ | 3,915 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||||
Commercial | Real Estate | Consumer | Residential | Total | |||||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||
Beginning balance | $ | 1,887 | $ | 1,920 | $ | 484 | $ | 258 | $ | 4,549 | |||||||||||||||||||||||
Charge-offs | (118 | ) | (339 | ) | (576 | ) | (8 | ) | (1,041 | ) | |||||||||||||||||||||||
Recoveries | 52 | 94 | 5 | 4 | 155 | ||||||||||||||||||||||||||||
Provisions | (781 | ) | -- | 1,388 | 97 | 704 | |||||||||||||||||||||||||||
Ending Balance | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||||||
Ending balances: | |||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,869 | $ | 16,661 | $ | 5,586 | $ | 1,731 | $ | 25,847 | |||||||||||||||||||||||
Allowance for loan losses | 49 | 1,260 | 962 | 114 | 2,385 | ||||||||||||||||||||||||||||
Collectively evaluated for impairment imprimpairment | $ | 7,155 | $ | 58,549 | $ | 28,212 | $ | 8,033 | $ | 101,949 | |||||||||||||||||||||||
Allowance for loan losses | 991 | 415 | 339 | 237 | 1,982 | ||||||||||||||||||||||||||||
Ending balance | $ | 9,024 | $ | 75,210 | $ | 33,798 | $ | 9,764 | $ | 127,796 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 1,040 | $ | 1,675 | $ | 1,301 | $ | 351 | $ | 4,367 | |||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | ' | ||||||||||||||||||||||||||||||||
Consumer Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile Based on Payment Activity | |||||||||||||||||||||||||||||||||
Residential real estate | |||||||||||||||||||||||||||||||||
Other | Consumer automobile | Home equity | 1-4 family | ||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Performing | $ | 13,893 | $ | 16,676 | $ | 751 | $ | 753 | $ | 12,582 | $ | 13,734 | $ | 7,972 | $ | 8,794 | |||||||||||||||||
Nonperforming | 2,023 | 2,287 | -- | 19 | 314 | 329 | 1,226 | 970 | |||||||||||||||||||||||||
Total | $ | 15,916 | $ | 18,963 | $ | 751 | $ | 772 | $ | 12,896 | $ | 14,063 | $ | 9,198 | $ | 9,764 | |||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. | |||||||||||||||||||||||||||||||||
Past Due Loan Trends for Corporation's Loans Receivable | ' | ||||||||||||||||||||||||||||||||
The following are past due loans for the Corporation’s loans receivable for the periods ended September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||||||||||||||
Greater | |||||||||||||||||||||||||||||||||
30 - 59 Days | 60 - 89 Days | Than | Total Past | Total Loans | |||||||||||||||||||||||||||||
Past Due | Past Due | 90 Days | Due | Current | Receivable | ||||||||||||||||||||||||||||
30-Sep-13 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | $ | 48 | $ | 48 | $ | 737 | $ | 833 | $ | 9,555 | $ | 10,388 | |||||||||||||||||||||
Commercial real estate | 2,538 | 1,577 | 4,126 | 8,241 | 63,944 | 72,185 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 229 | 181 | 1,026 | 1,436 | 14,480 | 15,916 | |||||||||||||||||||||||||||
Consumer – automobile | -- | -- | -- | -- | 751 | 751 | |||||||||||||||||||||||||||
Consumer – home equity | 115 | 107 | 162 | 384 | 12,512 | 12,896 | |||||||||||||||||||||||||||
Residential 1-4 family | 159 | 250 | 500 | 909 | 8,289 | 9,198 | |||||||||||||||||||||||||||
Total | $ | 3,089 | $ | 2,163 | $ | 6,551 | $ | 11,803 | $ | 109,531 | $ | 121,334 | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | $ | 146 | $ | 110 | $ | 646 | $ | 902 | $ | 8,122 | $ | 9,024 | |||||||||||||||||||||
Commercial real estate | 2,525 | 482 | 6,047 | 9,054 | 66,156 | 75,210 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 638 | 419 | 1,045 | 2,102 | 16,861 | 18,963 | |||||||||||||||||||||||||||
Consumer – automobile | 11 | 5 | 3 | 19 | 753 | 772 | |||||||||||||||||||||||||||
Consumer – home equity | 157 | 7 | 168 | 332 | 13,731 | 14,063 | |||||||||||||||||||||||||||
Residential 1-4 family | 259 | 406 | 970 | 1,635 | 8,129 | 9,764 | |||||||||||||||||||||||||||
Total | $ | 3,736 | $ | 1,429 | $ | 8,879 | $ | 14,044 | $ | 113,752 | $ | 127,796 | |||||||||||||||||||||
Loan Modifications for Corporation's Loans Receivable | ' | ||||||||||||||||||||||||||||||||
The following are loan modifications for the Corporation’s loans receivable for the three and nine month periods ended September 30, 2013. | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Pre | Post | Pre | Post | ||||||||||||||||||||||||||||||
Modification | Modification | Modification | Modification | ||||||||||||||||||||||||||||||
Number | Outstanding | Outstanding | Number | Outstanding | Outstanding | ||||||||||||||||||||||||||||
Troubled Debt Restructuring | of New | Recorded | Recorded | of New | Recorded | Recorded | |||||||||||||||||||||||||||
Added during current period | Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | -- | $ | -- | $ | -- | -- | $ | -- | $ | -- | |||||||||||||||||||||||
Commercial real estate | -- | -- | -- | 2 | 326 | 326 | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 6 | 655 | 648 | 9 | 1,001 | 988 | |||||||||||||||||||||||||||
Residential 1-4 family | 2 | 133 | 133 | 3 | 182 | 182 | |||||||||||||||||||||||||||
Total | 8 | $ | 788 | $ | 781 | 14 | $ | 1,509 | $ | 1,496 | |||||||||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||
Post | Post | ||||||||||||||||||||||||||||||||
Modification | Modification | ||||||||||||||||||||||||||||||||
Number | Outstanding | Defaulted | Number | Outstanding | Defaulted | ||||||||||||||||||||||||||||
Troubled Debt Restructurings | of New | Recorded | Recorded | of New | Recorded | Recorded | |||||||||||||||||||||||||||
Defaulted during the period | Contracts | Investment | Investment | Contracts | Investment | Investment | |||||||||||||||||||||||||||
Added since last twelve months | (in thousands) | ||||||||||||||||||||||||||||||||
Commercial: | |||||||||||||||||||||||||||||||||
Commercial non real estate | -- | $ | -- | $ | -- | -- | $ | -- | $ | -- | |||||||||||||||||||||||
Commercial real estate | -- | -- | -- | -- | -- | -- | |||||||||||||||||||||||||||
Consumer: | |||||||||||||||||||||||||||||||||
Consumer – other | 2 | 97 | 82 | 4 | 284 | 215 | |||||||||||||||||||||||||||
Total | 2 | $ | 97 | $ | 82 | 4 | $ | 284 | $ | 215 | |||||||||||||||||||||||
Consumer Portfolio Segment | ' | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | ' | ||||||||||||||||||||||||||||||||
Consumer Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Internally Assigned Grade | |||||||||||||||||||||||||||||||||
Residential | Consumer | ||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||
Pass | $ | 7,474 | $ | 7,905 | $ | 24,484 | $ | 27,976 | |||||||||||||||||||||||||
Special mention | 363 | 732 | 920 | 1,366 | |||||||||||||||||||||||||||||
Substandard | 1,361 | 1,127 | 4,159 | 4,456 | |||||||||||||||||||||||||||||
Total | $ | 9,198 | $ | 9,764 | $ | 29,563 | $ | 33,798 | |||||||||||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. | |||||||||||||||||||||||||||||||||
Commercial Portfolio Segment | ' | ||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | ' | ||||||||||||||||||||||||||||||||
Commercial Credit Exposure (1) | |||||||||||||||||||||||||||||||||
Credit Risk Profile by Creditworthiness Category | |||||||||||||||||||||||||||||||||
Commercial non real | Commercial real | ||||||||||||||||||||||||||||||||
estate | estate | ||||||||||||||||||||||||||||||||
September 30, | December 31, | September 30, | December 31, | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Grade 1 Superior quality | $ | 50 | $ | 58 | $ | -- | $ | -- | |||||||||||||||||||||||||
Grade 2 Good quality | -- | -- | -- | -- | |||||||||||||||||||||||||||||
Grade 3 Satisfactory | 138 | 209 | 5,742 | 7,238 | |||||||||||||||||||||||||||||
Grade 4 Acceptable | 4,392 | 4,148 | 24,001 | 24,844 | |||||||||||||||||||||||||||||
Grade 5 Watch | 3,477 | 2,433 | 28,944 | 23,762 | |||||||||||||||||||||||||||||
Grade 6 Special mention | 731 | 1,125 | 3,741 | 6,860 | |||||||||||||||||||||||||||||
Grade 7 Substandard | 1,523 | 957 | 8,526 | 11,256 | |||||||||||||||||||||||||||||
Grade 8 Doubtful | 77 | 94 | 1,231 | 1,250 | |||||||||||||||||||||||||||||
Total | $ | 10,388 | $ | 9,024 | $ | 72,185 | $ | 75,210 | |||||||||||||||||||||||||
(1) Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Contingencies_and_loan_commitm1
Contingencies and loan commitments (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Credit Exposure | ' | |
Total credit exposure at September 30, 2013 related to these items is summarized below: | ||
Loan Commitments: | Contract Amount | |
Unused portions of loans and credit lines | $13,631,000 |
FixedFloating_Rate_Junior_Subo1
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Subordinated Deferrable Interest Debentures Issued and Outstanding | ' | |||||||||||||||
A summary of the Subordinated Deferrable Interest Debentures issued and outstanding follows: | ||||||||||||||||
Amount Outstanding at | Distribution | |||||||||||||||
September 30, | Payment | |||||||||||||||
Name | 2013 | 2012 | Rate | Maturity | Frequency | |||||||||||
Provident Community Bancshares Capital Trust I | $ | 4,000,000 | $ | 4,000,000 | 2.01% | 1-Oct-36 | Quarterly | |||||||||
Provident Community Bancshares Capital Trust II | 8,000,000 | 8,000,000 | 2.01% | 1-Mar-37 | Quarterly | |||||||||||
Total | $ | 12,000,000 | $ | 12,000,000 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Assets Recorded at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
The following tables present the balances of assets recorded at fair value on a recurring basis by level within the hierarchy as of September 30, 2013 and December 31, 2012 (in thousands). | |||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Total | Active Markets for | Observable | Unobservable | ||||||||||||||||||
September 30, | Identical Assets | Inputs | Inputs | ||||||||||||||||||
2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Investment Securities: | |||||||||||||||||||||
Government Sponsored Enterprises | $ | 118,307 | $ | 118,307 | $ | -- | $ | -- | |||||||||||||
Trust Preferred Securities | 5,339 | -- | 3,543 | 1,796 | |||||||||||||||||
Total Investment Securities | 123,646 | 118,307 | 3,543 | 1,796 | |||||||||||||||||
Mortgage-Backed and | 53,068 | -- | 53,068 | -- | |||||||||||||||||
Related Securities | |||||||||||||||||||||
Total | $ | 176,714 | $ | 118,307 | $ | 56,611 | $ | 1,796 | |||||||||||||
Quoted Prices in | Significant Other | Significant | |||||||||||||||||||
Total | Active Markets for | Observable | Unobservable | ||||||||||||||||||
December 31, | Identical Assets | Inputs | Inputs | ||||||||||||||||||
2012 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Investment Securities: | |||||||||||||||||||||
Government Sponsored Enterprises | $ | 123,679 | $ | 123,679 | $ | -- | $ | -- | |||||||||||||
Trust Preferred Securities | 4,335 | -- | 2,788 | 1,547 | |||||||||||||||||
Total Investment Securities | 128,014 | 123,679 | 2,788 | 1,547 | |||||||||||||||||
Mortgage-Backed and | 41,200 | -- | 41,200 | -- | |||||||||||||||||
Related Securities | |||||||||||||||||||||
Total | $ | 169,214 | $ | 123,679 | $ | 43,988 | $ | 1,547 | |||||||||||||
Reconciliation of Beginning and Ending Balances for Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
The following is a reconciliation of the beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the period ended September 30, 2013. | |||||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||
Unobservable Inputs (Level 3) (in thousands) | |||||||||||||||||||||
Investment Securities | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Beginning balance at June 30, 2013 | $ | 1,693 | |||||||||||||||||||
Transfers into Level 3 | -- | ||||||||||||||||||||
Total gains/ (losses) included in: | |||||||||||||||||||||
Net loss | -- | ||||||||||||||||||||
Other comprehensive income | 103 | ||||||||||||||||||||
Purchases, sales, issuances and settlements, net | -- | ||||||||||||||||||||
Ending balance at September 30, 2013 | $ | 1,796 | |||||||||||||||||||
Fair Value Measurements Using Significant | |||||||||||||||||||||
Unobservable Inputs (Level 3) (in thousands) | |||||||||||||||||||||
Investment Securities | |||||||||||||||||||||
Available-for-Sale | |||||||||||||||||||||
Beginning balance at December 31, 2012 | $ | 1,547 | |||||||||||||||||||
Transfers into Level 3 | -- | ||||||||||||||||||||
Total gains/ (losses) included in: | |||||||||||||||||||||
Net loss | -- | ||||||||||||||||||||
Other comprehensive income | 253 | ||||||||||||||||||||
Purchases, sales, issuances and settlements, net | (4 | ) | |||||||||||||||||||
Ending balance at September 30, 2013 | $ | 1,796 | |||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring or Non-recurring Basis Using Significant Unobservable Inputs | ' | ||||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of September 30, 2013, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) | |||||||||||||||||||||
Fair Value at | Significant | General Range | |||||||||||||||||||
September 30, | Valuation | Unobservable | Of Significant | ||||||||||||||||||
2013 | Technique | Inputs | Unobservable | ||||||||||||||||||
Input Values | |||||||||||||||||||||
$ | 16,345 | Appraised Value/ | Appraisals and/or sales of | 0-25% | |||||||||||||||||
Discounted Cash | comparable properties/ | ||||||||||||||||||||
Impaired loans | Flows Market Value | Independent quotes | |||||||||||||||||||
of Note | |||||||||||||||||||||
4,891 | Appraised Value/ | 0-40% | |||||||||||||||||||
Comparable Sales/ | Appraisals and/or sales of | ||||||||||||||||||||
Other | Other Estimates from | comparable properties/ | |||||||||||||||||||
real estate owned | Independent Sources | Independent quotes | |||||||||||||||||||
Assets at fair value | $ | 21,236 | |||||||||||||||||||
For Level 3 assets and liabilities measured at fair value on a recurring or nonrecurring basis as of December 31, 2012, the significant unobservable inputs used in the fair value measurements were as follows: (in thousands) | |||||||||||||||||||||
Fair Value at | General Range | ||||||||||||||||||||
December | Valuation | Significant | Of Significant | ||||||||||||||||||
31, 2012 | Technique | Unobservable | Unobservable | ||||||||||||||||||
Inputs | Input Values | ||||||||||||||||||||
$ | 23,462 | Appraised Value/ | Appraisals and/or sales of | 0-25% | |||||||||||||||||
Discounted Cash | comparable properties/ | ||||||||||||||||||||
Impaired loans | Flows Market Value | Independent quotes | |||||||||||||||||||
of Note | |||||||||||||||||||||
9,174 | Appraised Value/ | Appraisals and/or sales of | 0-40% | ||||||||||||||||||
Comparable Sales/ | comparable properties/ | ||||||||||||||||||||
Other real estate owned | Other Estimates from | Independent quotes | |||||||||||||||||||
Independent Sources | |||||||||||||||||||||
Assets at fair value | $ | 32,636 | |||||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
Quoted | |||||||||||||||||||||
Prices in | |||||||||||||||||||||
Active Markets | Significant | ||||||||||||||||||||
for Identical | Other | Significant | |||||||||||||||||||
Assets or | Observable | Unobservable | |||||||||||||||||||
Carrying | Liabilities | Inputs | Inputs | ||||||||||||||||||
(dollars in thousands) | Amount | Fair Value | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||
30-Sep-13 | |||||||||||||||||||||
Financial Instruments - Assets | |||||||||||||||||||||
Loans | $ | 117,411 | $ | 123,188 | -- | -- | $ | 123,188 | |||||||||||||
Financial Instruments – Liabilities | |||||||||||||||||||||
Time deposits | $ | 106,806 | $ | 106,902 | $ | -- | $ | 106,902 | $ | -- | |||||||||||
Securities sold under agreements | |||||||||||||||||||||
to repurchase | 5,119 | 5,119 | -- | 5,119 | -- | ||||||||||||||||
Subordinated debentures | 12,372 | 12,372 | -- | 12,372 | -- | ||||||||||||||||
31-Dec-12 | |||||||||||||||||||||
Financial Instruments - Assets | |||||||||||||||||||||
Loans | $ | 123,414 | $ | 123,553 | -- | -- | $ | 123,553 | |||||||||||||
Financial Instruments – Liabilities | |||||||||||||||||||||
Time deposits | $ | 117,167 | $ | 117,723 | $ | -- | $ | 117,723 | $ | -- | |||||||||||
Securities sold under agreements | |||||||||||||||||||||
to repurchase | 6,280 | 6,280 | -- | 6,280 | -- | ||||||||||||||||
Subordinated debentures | 12,372 | 12,372 | -- | 12,372 | -- |
Income_Loss_Per_Common_Share_A
Income (Loss) Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Anti-dilutive common stock equivalents excluded from diluted income (loss) per common share calculation | 235,380 | 235,380 | 235,380 | 235,380 |
Assets_Pledged_Additional_Info
Assets Pledged - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' |
Debt securities pledged by bank as collateral | $58.60 | $62.70 |
Securities pledged as collateral, description | 'The Bank pledges as collateral for Federal Home Loan Bank (the "FHLB") advances commercial and residential real estate mortgage loans under a collateral agreement with the FHLB whereby the Bank maintains, free of other encumbrances, qualifying mortgages (as defined) with unpaid principal balances equal to, when discounted at 75% of the unpaid principal balances, 100% of total advances. | ' |
Loans_Receivable_Detail
Loans Receivable (Detail) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Mortgage loans: | ' | ' | ||
Commercial real estate | $72,185 | [1] | $75,210 | [1] |
Construction | 566 | 59 | ||
Total mortgage loans | 81,383 | 84,974 | ||
Commercial non real estate | 10,388 | [1] | 9,024 | [1] |
Consumer loans: | ' | ' | ||
Home equity | 12,896 | [1] | 14,063 | [1] |
Consumer and installment | 16,404 | 19,468 | ||
Consumer lines of credit | 263 | 267 | ||
Total consumer loans | 29,563 | [1] | 33,798 | [1] |
Total loans | 121,334 | 127,796 | ||
Unamortized loan discount | -163 | -181 | ||
Allowance for loan losses | -3,915 | -4,367 | ||
Net deferred loan origination costs | 155 | 166 | ||
Loans, net of ALL | 117,411 | 123,414 | ||
Weighted-average interest rate of loans | 4.94% | 5.15% | ||
Fixed Rate Residential Mortgage | ' | ' | ||
Mortgage loans: | ' | ' | ||
Residential | 5,456 | 6,329 | ||
Adjustable Rate Residential Mortgage | ' | ' | ||
Mortgage loans: | ' | ' | ||
Residential | $3,176 | $3,376 | ||
[1] | Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Impaired_Loans_Detail
Impaired Loans (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Impaired [Line Items] | ' | ' |
Loans receivable for which there is a related allowance for credit losses determined in accordance with ASC 310-10/Statement No. 114 | $5,428 | $5,339 |
Unpaid Principal Balance | 24,207 | 31,014 |
Other impaired loans | 12,988 | 20,508 |
Total impaired loans | 18,416 | 25,847 |
Average monthly balance of impaired loans | 19,630 | 29,171 |
Related Allowance | 2,071 | 2,385 |
Average Recorded Investment | 21,312 | 28,430 |
Commercial Portfolio Segment | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 15,894 | 22,610 |
Total impaired loans | 11,633 | 18,530 |
Related Allowance | 1,316 | 1,309 |
Average Recorded Investment | 13,763 | 20,570 |
Consumer Portfolio Segment | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 6,606 | 6,540 |
Total impaired loans | 5,283 | 5,586 |
Related Allowance | 755 | 962 |
Average Recorded Investment | 5,945 | 6,063 |
Owner Occupied Residential Real Estate Loans | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 1,707 | 1,864 |
Total impaired loans | 1,500 | 1,731 |
Related Allowance | ' | 114 |
Average Recorded Investment | 1,604 | 1,797 |
Impaired Financing Receivables with No Related Allowance | Commercial Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 6,983 | 14,778 |
Total impaired loans | 5,852 | 13,273 |
Average Recorded Investment | 6,418 | 14,025 |
Impaired Financing Receivables with No Related Allowance | Commercial Non Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 2,333 | 2,004 |
Total impaired loans | 1,938 | 1,680 |
Average Recorded Investment | 2,135 | 1,842 |
Impaired Financing Receivables with No Related Allowance | Consumer Other Financing Receivable | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 4,366 | 4,611 |
Total impaired loans | 3,152 | 3,696 |
Average Recorded Investment | 3,759 | 4,154 |
Impaired Financing Receivables with No Related Allowance | Consumer Home Equity | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 573 | 566 |
Total impaired loans | 546 | 536 |
Average Recorded Investment | 560 | 551 |
Impaired Financing Receivables with No Related Allowance | Residential 1-4 family | Residential Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 1,707 | 1,448 |
Total impaired loans | 1,500 | 1,323 |
Average Recorded Investment | 1,604 | 1,385 |
Impaired Financing Receivables with Related Allowance | Commercial Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 6,484 | 5,622 |
Total impaired loans | 3,766 | 3,388 |
Related Allowance | 1,278 | 1,260 |
Average Recorded Investment | 5,125 | 4,505 |
Impaired Financing Receivables with Related Allowance | Commercial Non Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 94 | 206 |
Total impaired loans | 77 | 189 |
Related Allowance | 38 | 49 |
Average Recorded Investment | 85 | 198 |
Impaired Financing Receivables with Related Allowance | Consumer Other Financing Receivable | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | 1,667 | 1,363 |
Total impaired loans | 1,585 | 1,354 |
Related Allowance | 755 | 962 |
Average Recorded Investment | 1,626 | 1,358 |
Impaired Financing Receivables with Related Allowance | Residential 1-4 family | Residential Real Estate | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' |
Unpaid Principal Balance | ' | 416 |
Total impaired loans | ' | 408 |
Related Allowance | ' | 114 |
Average Recorded Investment | ' | $412 |
Loans_Receivable_on_Nonaccrual
Loans Receivable on Non-accrual Status (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | $11,032 | $13,174 |
Commercial Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | 6,649 | 8,734 |
Commercial Non Real Estate | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | 820 | 835 |
Consumer Other Financing Receivable | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | 2,023 | 2,287 |
Automobiles | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | ' | 19 |
Consumer Home Equity | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | 314 | 329 |
Residential 1-4 family | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Loans Receivable on Non-accrual Status | $1,226 | $970 |
Allowance_for_Loan_Losses_and_
Allowance for Loan Losses and Recorded Investment in Loans Receivable (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Beginning balance | $4,367 | $4,549 | $4,549 |
Charge-offs | -1,101 | ' | -1,041 |
Recoveries | 149 | ' | 155 |
Provisions | 500 | 630 | 704 |
Ending balance | 3,915 | ' | 4,367 |
Individually evaluated for impairment | 18,416 | ' | 25,847 |
Allowance for loan losses | 2,071 | ' | 2,385 |
Collectively evaluated for impairment | 102,918 | ' | 101,949 |
Allowance for loan losses | 1,844 | ' | 1,982 |
Ending balance | 121,334 | ' | 127,796 |
Total allowance for loan losses | 3,915 | ' | 4,367 |
Commercial Portfolio Segment | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Beginning balance | 1,040 | 1,887 | 1,887 |
Charge-offs | -28 | ' | -118 |
Recoveries | 17 | ' | 52 |
Provisions | ' | ' | -781 |
Ending balance | 1,029 | ' | 1,040 |
Individually evaluated for impairment | 2,015 | ' | 1,869 |
Allowance for loan losses | 38 | ' | 49 |
Collectively evaluated for impairment | 8,373 | ' | 7,155 |
Allowance for loan losses | 991 | ' | 991 |
Ending balance | 10,388 | ' | 9,024 |
Total allowance for loan losses | 1,029 | ' | 1,040 |
Commercial Real Estate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Beginning balance | 1,675 | 1,920 | 1,920 |
Charge-offs | -477 | ' | -339 |
Recoveries | 79 | ' | 94 |
Provisions | 314 | ' | ' |
Ending balance | 1,591 | ' | 1,675 |
Individually evaluated for impairment | 9,618 | ' | 16,661 |
Allowance for loan losses | 1,278 | ' | 1,260 |
Collectively evaluated for impairment | 62,567 | ' | 58,549 |
Allowance for loan losses | 313 | ' | 415 |
Ending balance | 72,185 | ' | 75,210 |
Total allowance for loan losses | 1,591 | ' | 1,675 |
Consumer Portfolio Segment | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Beginning balance | 1,301 | 484 | 484 |
Charge-offs | -581 | ' | -576 |
Recoveries | 45 | ' | 5 |
Provisions | 326 | ' | 1,388 |
Ending balance | 1,091 | ' | 1,301 |
Individually evaluated for impairment | 5,283 | ' | 5,586 |
Allowance for loan losses | 755 | ' | 962 |
Collectively evaluated for impairment | 24,280 | ' | 28,212 |
Allowance for loan losses | 336 | ' | 339 |
Ending balance | 29,563 | ' | 33,798 |
Total allowance for loan losses | 1,091 | ' | 1,301 |
Residential Real Estate | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Beginning balance | 351 | 258 | 258 |
Charge-offs | -15 | ' | -8 |
Recoveries | 8 | ' | 4 |
Provisions | -140 | ' | 97 |
Ending balance | 204 | ' | 351 |
Individually evaluated for impairment | 1,500 | ' | 1,731 |
Allowance for loan losses | ' | ' | 114 |
Collectively evaluated for impairment | 7,698 | ' | 8,033 |
Allowance for loan losses | 204 | ' | 237 |
Ending balance | 9,198 | ' | 9,764 |
Total allowance for loan losses | $204 | ' | $351 |
Credit_Risk_Profile_by_Creditw
Credit Risk Profile by Creditworthiness Category (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | $10,388 | [1] | $9,024 | [1] |
Commercial real estate | 72,185 | [1] | 75,210 | [1] |
Superior Quality | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 50 | [1] | 58 | [1] |
Satisfactory | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 138 | [1] | 209 | [1] |
Commercial real estate | 5,742 | [1] | 7,238 | [1] |
Grade 4 Acceptable Risk | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 4,392 | [1] | 4,148 | [1] |
Commercial real estate | 24,001 | [1] | 24,844 | [1] |
Grade 5 Watch | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 3,477 | [1] | 2,433 | [1] |
Commercial real estate | 28,944 | [1] | 23,762 | [1] |
Grade 6 Special Mention | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 731 | [1] | 1,125 | [1] |
Commercial real estate | 3,741 | [1] | 6,860 | [1] |
Grade 7 Substandard | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 1,523 | [1] | 957 | [1] |
Commercial real estate | 8,526 | [1] | 11,256 | [1] |
Grade 8 Doubtful | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Commercial non real estate | 77 | [1] | 94 | [1] |
Commercial real estate | $1,231 | [1] | $1,250 | [1] |
[1] | Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Credit_Risk_Profile_by_Interna
Credit Risk Profile by Internally Assigned Grade (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Residential | $9,198 | [1] | $9,764 | [1] |
Consumer | 29,563 | [1] | 33,798 | [1] |
Credit Risk Profile by Internally Assigned Grade | Pass Credit | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Residential | 7,474 | [1] | 7,905 | [1] |
Consumer | 24,484 | [1] | 27,976 | [1] |
Credit Risk Profile by Internally Assigned Grade | Grade 6 Special Mention | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Residential | 363 | [1] | 732 | [1] |
Consumer | 920 | [1] | 1,366 | [1] |
Credit Risk Profile by Internally Assigned Grade | Grade 7 Substandard | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Residential | 1,361 | [1] | 1,127 | [1] |
Consumer | $4,159 | [1] | $4,456 | [1] |
[1] | Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Credit_Risk_Profile_Based_on_P
Credit Risk Profile Based on Payment Activity (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Consumer, Other | $15,916 | [1] | $18,963 | [1] |
Consumer, Automobile | 751 | [1] | 772 | [1] |
Residential real estate, Home equity | 12,896 | [1] | 14,063 | [1] |
Residential real estate, 1-4 family | 9,198 | [1] | 9,764 | [1] |
Performing | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Consumer, Other | 13,893 | [1] | 16,676 | [1] |
Consumer, Automobile | 751 | [1] | 753 | [1] |
Residential real estate, Home equity | 12,582 | [1] | 13,734 | [1] |
Residential real estate, 1-4 family | 7,972 | [1] | 8,794 | [1] |
Nonperforming | ' | ' | ||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ||
Consumer, Other | 2,023 | [1] | 2,287 | [1] |
Consumer, Automobile | ' | 19 | [1] | |
Residential real estate, Home equity | 314 | [1] | 329 | [1] |
Residential real estate, 1-4 family | $1,226 | [1] | $970 | [1] |
[1] | Credit quality indicators are reviewed and updated as applicable on an ongoing basis in accordance with credit policies. |
Loans_Net_Additional_Informati
Loans Net - Additional Information (Detail) (USD $) | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Troubled Debt Restructuring | Extended Term of Loan | Financing Receivable Troubled Debt Restructurings Rate Reductions | Before Restructuring | Classified Loans | Classified Loans | Pass Credit | Grade 6 Special Mention | Grade 6 Special Mention | ||
Loan | Loan | Loan | Loan | |||||||
Financing Receivable, Recorded Investment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of loan portfolio considered pass credits | ' | ' | ' | ' | ' | ' | ' | 81.00% | ' | ' |
Loans rated as special mention | ' | ' | ' | ' | ' | $16,900,000 | $19,100,000 | ' | $5,700,000 | $10,100,000 |
Recorded investment in loans | 5,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for loan losses | $698,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan considered for troubled debt restructuring | ' | 14 | ' | ' | 4 | ' | ' | ' | ' | ' |
Loan Modified | ' | ' | 13 | 9 | ' | ' | ' | ' | ' | ' |
Number of days default to occur | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Past_Due_Loan_Trends_for_Corpo
Past Due Loan Trends for Corporation's Loans Receivable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | $3,089 | $3,736 |
60 - 89 Days Past Due | 2,163 | 1,429 |
Greater Than 90 Days | 6,551 | 8,879 |
Total Past Due | 11,803 | 14,044 |
Current | 109,531 | 113,752 |
Total loans | 121,334 | 127,796 |
Commercial Portfolio Segment | Commercial Non Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | 48 | 146 |
60 - 89 Days Past Due | 48 | 110 |
Greater Than 90 Days | 737 | 646 |
Total Past Due | 833 | 902 |
Current | 9,555 | 8,122 |
Total loans | 10,388 | 9,024 |
Commercial Portfolio Segment | Commercial Real Estate | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | 2,538 | 2,525 |
60 - 89 Days Past Due | 1,577 | 482 |
Greater Than 90 Days | 4,126 | 6,047 |
Total Past Due | 8,241 | 9,054 |
Current | 63,944 | 66,156 |
Total loans | 72,185 | 75,210 |
Consumer Portfolio Segment | Consumer Other Financing Receivable | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | 229 | 638 |
60 - 89 Days Past Due | 181 | 419 |
Greater Than 90 Days | 1,026 | 1,045 |
Total Past Due | 1,436 | 2,102 |
Current | 14,480 | 16,861 |
Total loans | 15,916 | 18,963 |
Consumer Portfolio Segment | Automobiles | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | ' | 11 |
60 - 89 Days Past Due | ' | 5 |
Greater Than 90 Days | ' | 3 |
Total Past Due | ' | 19 |
Current | 751 | 753 |
Total loans | 751 | 772 |
Consumer Portfolio Segment | Consumer Home Equity | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | 115 | 157 |
60 - 89 Days Past Due | 107 | 7 |
Greater Than 90 Days | 162 | 168 |
Total Past Due | 384 | 332 |
Current | 12,512 | 13,731 |
Total loans | 12,896 | 14,063 |
Residential Real Estate | Residential 1-4 family | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
30 - 59 Days Past Due | 159 | 259 |
60 - 89 Days Past Due | 250 | 406 |
Greater Than 90 Days | 500 | 970 |
Total Past Due | 909 | 1,635 |
Current | 8,289 | 8,129 |
Total loans | $9,198 | $9,764 |
Loan_Modifications_for_Corpora
Loan Modifications for Corporation's Loans Receivable (Detail) (Troubled Debt Restructuring, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Contract | Contract | |
Added during current period | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | 8 | 14 |
Pre Modification Outstanding Recorded Investment | $788 | $1,509 |
Post Modification Outstanding Recorded Investment | 781 | 1,496 |
Added during current period | Commercial Real Estate | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | ' | 2 |
Pre Modification Outstanding Recorded Investment | ' | 326 |
Post Modification Outstanding Recorded Investment | ' | 326 |
Added during current period | Consumer Other Financing Receivable | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | 6 | 9 |
Pre Modification Outstanding Recorded Investment | 655 | 1,001 |
Post Modification Outstanding Recorded Investment | 648 | 988 |
Added during current period | Residential 1-4 family | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | 2 | 3 |
Pre Modification Outstanding Recorded Investment | 133 | 182 |
Post Modification Outstanding Recorded Investment | 133 | 182 |
Defaulted during the period | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | 2 | 4 |
Post Modification Outstanding Recorded Investment | 97 | 284 |
Defaulted Recorded Investment | 82 | 215 |
Defaulted during the period | Consumer Other Financing Receivable | ' | ' |
Financing Receivable, Modifications [Line Items] | ' | ' |
Number of New Contracts | 2 | 4 |
Post Modification Outstanding Recorded Investment | 97 | 284 |
Defaulted Recorded Investment | $82 | $215 |
Credit_Exposure_Detail
Credit Exposure (Detail) (Credit, Unused portions of loans and credit lines, USD $) | Sep. 30, 2013 |
Credit | Unused portions of loans and credit lines | ' |
Supply Commitment [Line Items] | ' |
Loan commitments | $13,631,000 |
Recovered_Sheet1
Contingencies and Loan Commitments - Additional Information (Detail) | Sep. 30, 2013 |
Commitments Disclosure [Line Items] | ' |
Loan commitments fixed and adjusting rate, minimum | 4.50% |
Loan commitments fixed and adjusting rate, maximum | 6.50% |
FixedFloating_Rate_Junior_Subo2
Fixed/Floating Rate Junior Subordinated Deferrable Interest Debentures - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Jul. 21, 2006 | Dec. 15, 2006 |
Capital Trust I | Capital Trust II | ||
Securities Financing Transaction [Line Items] | ' | ' | ' |
Floating/fixed rate capital securities, issued | ' | $4,000,000 | $8,000,000 |
Capital contribution | ' | 124,000 | 247,000 |
Principal amount of junior subordinated deferrable interest debentures, acquired | ' | 4,124,000 | 8,247,000 |
Interest rate Terms | ' | 'The interest rate on the Debentures and the capital securities is variable and adjustable quarterly at 1.74% over the three-month LIBOR. | 'The interest rate on the Debentures and the capital securities is variable and adjustable quarterly at 1.74% over the three-month LIBOR. |
Interest rate over three-month LIBOR | ' | 1.74% | 1.74% |
Debt maturity period | ' | 1-Oct-36 | 1-Mar-37 |
Deferred interest | $1,200,000 | ' | ' |
Subordinated_Deferrable_Intere
Subordinated Deferrable Interest Debentures Issued and Outstanding (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Subordinated Borrowing [Line Items] | ' | ' |
Subordinated Deferrable Interest Debenture, Amount Outstanding | $12,000,000 | $12,000,000 |
Provident Community Bancshares Capital Trust I | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' |
Subordinated Deferrable Interest Debenture, Amount Outstanding | 4,000,000 | 4,000,000 |
Subordinated Deferrable Interest Debenture Rate | 2.01% | ' |
Subordinated Deferrable Interest Debenture Maturity date | 1-Oct-36 | ' |
Subordinated Deferrable Interest Debenture Distribution Payment Frequency | 'Quarterly | ' |
Provident Community Bancshares Capital Trust II | ' | ' |
Subordinated Borrowing [Line Items] | ' | ' |
Subordinated Deferrable Interest Debenture, Amount Outstanding | $8,000,000 | $8,000,000 |
Subordinated Deferrable Interest Debenture Rate | 2.01% | ' |
Subordinated Deferrable Interest Debenture Maturity date | 1-Mar-37 | ' |
Subordinated Deferrable Interest Debenture Distribution Payment Frequency | 'Quarterly | ' |
Assets_Measured_at_Fair_Value_
Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | $176,714 | $169,214 |
Securities Investment | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 123,646 | 128,014 |
Securities Investment | Government Sponsored Enterprises | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 118,307 | 123,679 |
Securities Investment | Trust Preferred Securities | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 5,339 | 4,335 |
Mortgage-Backed Securities | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 53,068 | 41,200 |
Level 1 | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 118,307 | 123,679 |
Level 1 | Securities Investment | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 118,307 | 123,679 |
Level 1 | Securities Investment | Government Sponsored Enterprises | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 118,307 | 123,679 |
Level 2 | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 56,611 | 43,988 |
Level 2 | Securities Investment | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 3,543 | 2,788 |
Level 2 | Securities Investment | Trust Preferred Securities | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 3,543 | 2,788 |
Level 2 | Mortgage-Backed Securities | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 53,068 | 41,200 |
Level 3 | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 1,796 | 1,547 |
Level 3 | Securities Investment | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | 1,796 | 1,547 |
Level 3 | Securities Investment | Trust Preferred Securities | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Asset Fair Value disclosure | $1,796 | $1,547 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Balances for Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $1,693 | $1,547 |
Transfers into Level 3 | ' | ' |
Total gains/ (losses) included in: | ' | ' |
Net loss | ' | ' |
Other comprehensive income | 103 | 253 |
Purchases, sales, issuances and settlements, net | ' | -4 |
Ending balance | $1,796 | $1,796 |
Assets_and_Liabilities_Measure
Assets and Liabilities Measured at Fair Value on Recurring or Non-recurring Basis Using Significant Unobservable Inputs (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value | $21,236 | $32,636 |
Impaired Loans | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value | 16,345 | 23,462 |
Valuation Technique | 'Appraised Value/ Discounted Cash Flows Market Value of Note | 'Appraised Value/ Discounted Cash Flows Market Value of Note |
Significant Unobservable Inputs | 'Appraisals and/or sales of comparable properties/ Independent quotes | 'Appraisals and/or sales of comparable properties/ Independent quotes |
Impaired Loans | Minimum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Significant Unobservable Inputs, Range | 0.00% | 0.00% |
Impaired Loans | Maximum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Significant Unobservable Inputs, Range | 25.00% | 25.00% |
Other Real Estate Owned | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair Value | $4,891 | $9,174 |
Valuation Technique | 'Appraised Value/ Comparable Sales/ Other Estimates from Independent Sources | 'Appraised Value/ Comparable Sales/ Other Estimates from Independent Sources |
Significant Unobservable Inputs | 'Appraisals and/or sales of comparable properties/ Independent quotes | 'Appraisals and/or sales of comparable properties/ Independent quotes |
Other Real Estate Owned | Minimum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Significant Unobservable Inputs, Range | 0.00% | 0.00% |
Other Real Estate Owned | Maximum | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Significant Unobservable Inputs, Range | 40.00% | 40.00% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financial Instruments - Assets, Carrying Amount | ' | ' |
Loans | $117,411 | $123,414 |
Financial Instruments - Liabilities, Carrying Amount | ' | ' |
Time deposits | 106,806 | 117,167 |
Securities sold under agreements to repurchase | 5,119 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Financial Instruments - Assets, Fair Value | ' | ' |
Loans | 123,188 | 123,553 |
Financial Instruments - Liabilities, Fair Value | ' | ' |
Time deposits | 106,902 | 117,723 |
Securities sold under agreements to repurchase | 5,119 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Level 2 | ' | ' |
Financial Instruments - Liabilities, Fair Value | ' | ' |
Time deposits | 106,902 | 117,723 |
Securities sold under agreements to repurchase | 5,119 | 6,280 |
Subordinated debentures | 12,372 | 12,372 |
Level 3 | ' | ' |
Financial Instruments - Assets, Fair Value | ' | ' |
Loans | $123,188 | $123,553 |
Preferred_Stock_Additional_Inf
Preferred Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |
Mar. 13, 2009 | Sep. 30, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | ' | ' | ' |
Preferred stock issued | ' | 9,266 | 9,266 |
Preferred Stock, liquidation preference per share | $1,000 | ' | ' |
Exercise price of warrant | 7.77 | ' | ' |
Proceed from issuance of preferred stock and warrant | $9,300,000 | ' | ' |
Increase in Additional paid-in-capital due to allotment to warrants | 25,000 | ' | ' |
Period in which warrant to be exercised | '10 years | ' | ' |
Amortization period for amount allocated to warrant | '5 years | ' | ' |
Preferred Stock, Dividend Payment Terms | ' | 'Under the terms of the TARP Preferred Stock, the Corporation is required to pay on a quarterly basis a dividend rate of 5% per year for the first five years, after which the dividend rate automatically increases to 9% per year. Dividend payments may be deferred, but the dividend is cumulative and failure to pay dividends for six dividend periods may trigger board appointment rights for the holder of the TARP Preferred Stock. | ' |
Total deferred dividends | ' | $1,400,000 | ' |
First five years | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Dividend Rate | ' | 5.00% | ' |
After five years | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Dividend Rate | ' | 9.00% | ' |
Series A Preferred Stock | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Preferred stock issued | 9,266 | ' | ' |
Maximum | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Common stock purchase warrant | 178,880 | ' | ' |