Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 28, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'FNBH BANCORP INC | ' | ' |
Entity Central Index Key | '0000943119 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'FNHM | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 2,755,115 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $796,451 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and due from banks | $77,827 | $41,824 |
Short term investments | 198 | 197 |
Total cash and cash equivalents | 78,025 | 42,021 |
Investment securities: | ' | ' |
Investment securities available for sale, at fair value | 67,680 | 72,586 |
FHLBI and FRB stock, at cost | 779 | 779 |
Total investment securities | 68,459 | 73,365 |
Loans held for investment: | ' | ' |
Commercial | 136,864 | 152,152 |
Consumer | 16,231 | 14,582 |
Real estate mortgage | 12,020 | 13,457 |
Total loans held for investment | 165,115 | 180,191 |
Less allowance for loan losses | -9,214 | -11,769 |
Net loans held for investment | 155,901 | 168,422 |
Premises and equipment, net | 7,395 | 7,211 |
Other real estate owned, held for sale | 480 | 3,427 |
Accrued interest and other assets | 2,030 | 2,425 |
Total assets | 312,290 | 296,871 |
Liabilities and Shareholders' Equity | ' | ' |
Demand (non-interest bearing) | 93,953 | 95,779 |
NOW | 29,937 | 29,501 |
Savings and money market | 82,518 | 79,566 |
Time deposits | 77,782 | 81,716 |
Brokered certificates of deposit | 1,123 | 1,120 |
Total deposits | 285,313 | 287,682 |
Other borrowings | 16 | 148 |
Accrued interest, taxes, and other liabilities | 1,855 | 1,672 |
Total liabilities | 287,184 | 289,502 |
Shareholders' Equity | ' | ' |
Common stock, no par value. Authorized 11,000,000 shares at December 31, 2013 and December 31, 2012; 455,115 shares issued and outstanding at December 31, 2013 and 454,327 shares issued and outstanding at December 31, 2012 | 7,321 | 7,202 |
Retained earnings (deficit) | 2,478 | -496 |
Deferred directors' compensation | 342 | 461 |
Accumulated other comprehensive income (loss) | -1,555 | 202 |
Total shareholders' equity | 25,106 | 7,369 |
Total liabilities and shareholders' equity | 312,290 | 296,871 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred Stock Value | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred Stock Value | $16,520 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, authorized | 11,000,000 | 11,000,000 |
Common stock, issued | 455,115 | 454,327 |
Common stock, outstanding | 455,115 | 454,327 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, authorized | 10,000 | 10,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in dollars per share) | $0 | $0 |
Preferred stock, authorized | 20,000 | 20,000 |
Preferred stock, issued | 17,510 | 0 |
Preferred stock, outstanding | 17,510 | 0 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest and dividend income: | ' | ' | ' |
Interest and fees on loans | $9,311 | $9,990 | $11,434 |
Interest and dividends on securities: | ' | ' | ' |
Taxable | 1,066 | 998 | 989 |
Tax-exempt | 47 | 48 | 245 |
Other securities | 28 | 26 | 23 |
Interest on short term investments | 3 | 2 | 1 |
Total interest and dividend income | 10,455 | 11,064 | 12,692 |
Interest expense | 925 | 1,092 | 1,571 |
Net interest income | 9,530 | 9,972 | 11,121 |
Provision for loan losses | -2,250 | 1,325 | 6,200 |
Net interest income after provision for loan losses | 11,780 | 8,647 | 4,921 |
Noninterest income: | ' | ' | ' |
Service charges and other fee income | 2,585 | 2,773 | 2,648 |
Trust income | 148 | 178 | 202 |
Net gain (loss) on available for sale securities | 0 | -3 | 336 |
Gain on sale of loans | 0 | 319 | 72 |
Other | 132 | 1 | 1 |
Total noninterest income | 2,865 | 3,268 | 3,259 |
Noninterest expense: | ' | ' | ' |
Salaries and employee benefits | 5,369 | 4,962 | 4,840 |
Net occupancy expense | 882 | 796 | 913 |
Equipment expense | 344 | 335 | 355 |
Professional and service fees | 1,753 | 1,728 | 1,602 |
Loan collection and foreclosed property expenses | 327 | 661 | 539 |
Computer service fees | 477 | 452 | 492 |
Computer software amortization expense | 39 | 79 | 233 |
FDIC assessment fees | 1,026 | 1,014 | 1,096 |
Insurance | 518 | 575 | 564 |
Printing and supplies | 173 | 176 | 162 |
Director fees | 0 | 61 | 79 |
Net (gain) loss on sale/writedown of OREO and repossessions | -91 | 206 | 273 |
Other | 750 | 645 | 605 |
Total noninterest expense | 11,567 | 11,690 | 11,753 |
Income (loss) before federal income taxes | 3,078 | 225 | -3,573 |
Federal income tax expense (benefit) | 104 | -104 | 0 |
Net income (loss) | $2,974 | $329 | ($3,573) |
Per share statistics: | ' | ' | ' |
Basic and diluted EPS (in dollars per share) | $1.57 | $0.72 | ($7.81) |
Weighted-average common shares outstanding (in shares) | 457,435 | 457,416 | 457,318 |
Weighted-average common stock equivalent preferred shares outstanding, as converted (in shares) | 1,439,178 | 0 | 0 |
Total basic and diluted shares (in shares) | 1,896,613 | 457,416 | 457,318 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income (loss) | $2,974 | $329 | ($3,573) |
Other comprehensive income (loss) | ' | ' | ' |
Net change in unrealized gain (loss) on securities available for sale | -1,757 | 423 | 369 |
Less: reclassification adjustment for (gain) loss on securities available for sale recognized in earnings | 0 | 3 | -412 |
Less: reclassification adjustment for other-than-temporary impairment charge on securities included in net loss | 0 | 0 | 76 |
Comprehensive income (loss) | $1,217 | $755 | ($3,540) |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Deferred Directors' Compensation [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands | ||||||
Balances at Dec. 31, 2010 | $10,134 | $0 | $6,935 | $2,748 | $708 | ($257) |
Earned portion of long term incentive plan | 16 | ' | 16 | ' | ' | ' |
Issued shares for deferred directors' fees | 0 | ' | 131 | ' | -131 | ' |
Net income (loss) | -3,573 | ' | ' | -3,573 | ' | ' |
Other comprehensive income/loss | 33 | ' | ' | ' | ' | 33 |
Balances at Dec. 31, 2011 | 6,610 | 0 | 7,082 | -825 | 577 | -224 |
Earned portion of long term incentive plan | 4 | ' | 4 | ' | ' | ' |
Issued shares for deferred directors' fees | 0 | ' | 116 | ' | -116 | ' |
Net income (loss) | 329 | ' | ' | 329 | ' | ' |
Other comprehensive income/loss | 426 | ' | ' | ' | ' | 426 |
Balances at Dec. 31, 2012 | 7,369 | 0 | 7,202 | -496 | 461 | 202 |
Issuance of preferred stock | 16,520 | 16,520 | ' | ' | ' | ' |
Issued shares for deferred directors' fees | 0 | ' | 119 | ' | -119 | ' |
Net income (loss) | 2,974 | ' | ' | 2,974 | ' | ' |
Other comprehensive income/loss | -1,757 | ' | ' | ' | ' | -1,757 |
Balances at Dec. 31, 2013 | $25,106 | $16,520 | $7,321 | $2,478 | $342 | ($1,555) |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity [Parenthetical] | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Issued shares for deferred directors' fees (in shares) | 784 | 774 | 878 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | $2,974 | $329 | ($3,573) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Provision for loan losses | -2,250 | 1,325 | 6,200 |
Gain on sale of loans | 0 | -319 | -72 |
Proceeds from sale of loans originated for sale | 0 | 1,210 | 928 |
Loans originated for sale | 0 | -231 | -856 |
Depreciation and amortization | 454 | 463 | 674 |
Deferred income tax expense (benefit) | 104 | -104 | 0 |
Net amortization on investment securities | 1,071 | 901 | 382 |
Earned portion of long term incentive plan | 0 | 4 | 16 |
Loss on sale/disposal of premises and equipment | 0 | 0 | 5 |
(Gain) loss on available for sale securities | 0 | 3 | -336 |
Net (gain) loss on sale/writedown of OREO and repossessions | -91 | 206 | 273 |
(Increase) decrease in accrued interest income and other assets | 378 | -340 | 322 |
Increase (decrease) in accrued interest, taxes, and other liabilities | 183 | -86 | -169 |
Net cash provided by operating activities | 2,823 | 3,361 | 3,794 |
Cash flows from investing activities | ' | ' | ' |
Purchases of available for sale securities | -20,684 | -61,540 | -28,736 |
Proceeds from the sales of available for sale securities | 0 | 247 | 15,352 |
Proceeds from maturities and calls of available for sale securities | 3,000 | 6,990 | 2,700 |
Proceeds from mortgage-backed securities paydowns - available for sale | 19,658 | 13,668 | 5,617 |
Proceeds from repurchase of FHLBI stock | 0 | 0 | 122 |
Proceeds from sale of OREO and repossessions | 3,124 | 1,535 | 2,567 |
Net decrease in loans | 14,685 | 23,605 | 18,042 |
Capital expenditures | -621 | -180 | -246 |
Net cash provided by (used in) investing activities | 19,162 | -15,675 | 15,418 |
Cash flows from financing activities: | ' | ' | ' |
Net increase (decrease) in deposits | -2,369 | 4,030 | -9,627 |
Preferred stock issued, net of offering costs | 16,348 | 0 | 0 |
Proceeds from other borrowings | 40 | 88 | 60 |
Net cash provided by (used in) financing activities | 14,019 | 4,118 | -9,567 |
Net change in cash and cash equivalents | 36,004 | -8,196 | 9,645 |
Cash and cash equivalents at beginning of year | 42,021 | 50,217 | 40,572 |
Cash and cash equivalents at end of period | 78,025 | 42,021 | 50,217 |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 935 | 1,135 | 1,640 |
Loans transferred to other real estate | 86 | 2,142 | 1,567 |
Loans charged off | 1,205 | 4,033 | 8,306 |
Other borrowings exchanged for preferred stock | $172 | $0 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
1. Summary of Significant Accounting Policies | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information available to management at the time the estimates are made. Actual results could differ from those estimates. | |||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of FNBH Bancorp, Inc. and its wholly owned subsidiaries, First National Bank in Howell (“the Bank”) and H.B. Realty Co. herein collectively the “Corporation”. All significant intercompany balances and transactions have been eliminated. | |||
The Bank is a full-service bank offering a wide range of commercial and personal banking services. These services include checking accounts, savings accounts, certificates of deposit, commercial loans, real estate loans, installment loans, collections, night depository, safe deposit box, and trust services. The Bank serves primarily five communities – Howell, Brighton, Green Oak Township, Hartland, and Fowlerville – all of which are located in Livingston County, Michigan. The Bank is not dependent upon any single industry or business for its banking opportunities. | |||
H.B. Realty Co. was established on November 26, 1997 to purchase land for a future branch site of the Bank and to hold title to other Bank real estate when it is considered prudent to do so. | |||
The accounting and reporting policies of FNBH Bancorp, Inc. and subsidiaries (Corporation) conform to accounting principles generally accepted in the United States of America and to general practice within the banking industry. The following is a description of the more significant of these policies. | |||
(a) | Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand, demand deposits with other financial institutions and short-term securities (securities with maturities equal to or less than 90 days and federal funds sold). Cash flows are reported net for customer loan and deposit transactions, interest-bearing time deposits with other financial institutions and short-term borrowings with maturities of 90 days or less. | |||
(b) | Brokered Certificates of Deposit | ||
Brokered certificates of deposit are purchased periodically from other financial institutions in denominations that are fully insured by the FDIC. These investments are carried at cost, are not marketable, and are subject to penalty for early withdrawal. | |||
(c) | Investment Securities | ||
The Bank classifies debt and equity investments as follows: | |||
Investment securities the Bank may not hold until maturity are accounted for as securities available for sale and are stated at fair value, with unrealized gains and losses, net of income taxes, reported as a separate component of other comprehensive income until realized. Fair value measurement for investment securities 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 present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. | |||
Investment securities are reviewed quarterly for possible other-than-temporary impairment (OTTI). Management’s evaluation considers various qualitative and quantitative factors regarding each investment category, including if investment securities were U.S. Government issued, the credit rating on the securities, credit outlook, payment status and financial condition, the length of time a security has been in a loss position, the size of the loss position and other meaningful information. In addition, with respect to the Corporation’s non-government agency CMO security, management regularly completes a cash flow analysis with the assistance of a third party specialist. The analysis considers assumptions regarding voluntary prepayment speed, default rate, and loss severity using the CMO’s original yield as the discount rate. | |||
For debt securities, the Corporation distinguishes between the credit and noncredit components of an OTTI event. The credit component of an OTTI charge is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. If the Corporation does not intend to sell the security and it is more likely than not that the Corporation will not have to sell the security before the anticipated recovery of the remaining amortized cost basis, the credit component of the OTTI charge is recognized in earnings and the remaining portion in other comprehensive income. If either of the above criteria is met, the entire difference between the amortized cost and fair value is recognized in earnings. | |||
Gains or losses on the sale of securities are computed based on the adjusted cost of the specific security. | |||
(d) | Loans | ||
Loans are classified within loans held for investment when management has the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. The foreseeable future is a management judgment which is determined based upon the type of loan, business strategies, current market conditions, balance sheet management and liquidity needs. Management’s view of the foreseeable future may change based on changes in these conditions. When a decision is made to sell or securitize a loan that was not originated or initially acquired with the intent to sell or securitize, the loan is reclassified from loans held for investment into held for sale. Loans are classified as held for sale when management has the intent and ability to sell or securitize. Due to changing market conditions or other strategic initiatives, management’s intent with respect to the disposition of the loan may change, and accordingly, loans previously classified as held for sale may be reclassified into loans held for investment. Loans transferred between loans held for sale and loans held for investment classifications are recorded at the lower of cost or market at the date of transfer. | |||
Loans held for investment are carried at the principal amount outstanding net of unearned income, unamortized premiums or discounts, deferred loan origination fees and costs, the allowance for loan losses, and fair value adjustments, if any. | |||
Interest on loans is accrued daily based on the outstanding principal balance. In general, for each loan class, the accrual of interest income is discontinued when a loan becomes 90 days past due and the borrower’s capacity to repay the loan and collateral values appear insufficient. However, loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due if, in management’s opinion, the borrower is unable to meet payment obligations as they become due or as required by regulatory provisions. All interest accrued but not received for all loans placed on nonaccrual is reversed from interest income. Delinquency status for all commercial and installment loans is based on the actual number of days past due as required by the contractual terms of the loan agreement. | |||
Loan origination fees and certain direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Net unamortized deferred loan fees amounted to $169,000 and $204,000 at December 31, 2013 and 2012, respectively. | |||
(e) | Allowance for Loan Losses and Credit Commitments | ||
Some loans will not be repaid in full. Therefore, an allowance for loan losses is established based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is adequate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, nonperforming loan levels, the composition of the loan portfolio, and management’s evaluation of the collectability of specific loans, which includes analysis of the value of the underlying collateral. This overall evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, although management evaluates the adequacy of the allowance for loan losses based on information known to management at a given time, various regulatory agencies, based on the timing of their normal examination process, may require future additions to the allowance for loan losses. | |||
The methodology for measuring the appropriate level of allowance and related provision expense for each portfolio segment relies on several key elements, which include specific allowances for loans considered impaired and general allowances for non-impaired loans, based on our internal loan grading system. General allocations, based primarily on historical trends, are provided for homogeneous groups or classes of loans with similar risk characteristics. | |||
A rolling 12 quarter charge off history, determined by class, by risk grade, and weighted to give increased emphasis on recent quarters, is used as the basis for the computation within each portfolio segment. In addition, management considers other qualitative and environmental factors to determine whether adjustments to historical loss experience are needed to better reflect the collectability of the loan portfolio at the analysis date, especially in instances where current facts and circumstances have changed significantly enough to cause estimated credit losses to differ from historical loss experience. In determining qualitative and environmental adjustments, management considers both internal and external factors specific to each portfolio segment including, but not limited to, changes in lending policies and procedures, underwriting standards in effect when existing loans were originated, current economic conditions, and values for underlying collateral for collateral dependent loans, as examples. | |||
Within each commercial portfolio segment, a general allowance allocation is assigned to non-impaired loans based on the internal risk grade and class of such loans, as primarily determined based on underlying collateral; and if real estate secured, the type of real estate. Each risk grade within a portfolio segment is assigned a loss allocation factor, adjusted for qualitative and environmental factors, as deemed appropriate. The higher a risk grade, the greater the assigned loss allocation percentage. | |||
Residential real estate loans, home equity and home equity lines of credit, and consumer loans receive allowance allocations based on loan class, primarily determined based on historical loss experience rather than by risk grade. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. | |||
The Bank also maintains a reserve for losses on unfunded credit commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The reserve is computed using the same methodology as that used to determine the allowance for loan losses. This reserve is reported as a liability on the balance sheet within accrued interest, taxes, and other liabilities, while the corresponding provision for these losses is recorded as a component of the provision for loan losses. | |||
(f) | Nonperforming Assets | ||
Nonperforming assets are comprised of loans for which the accrual of interest has been discontinued, loans 90 days past due and still accruing, and other real estate owned, which has been acquired primarily through foreclosure and is awaiting disposition. Troubled debt restructured loans that are on accrual status and not past due 90 days or more are excluded from nonperforming loan totals. | |||
Loans are generally placed on a nonaccrual status when principal or interest is past due 90 days or more and when, in the opinion of management, full collection of principal and interest is unlikely. At the time a loan is placed on nonaccrual status, interest previously accrued but not yet collected is charged against current interest income. Income on such loans is then recognized only to the extent that cash is received and where future collection of principal is probable. Payments on such loans are generally applied to the principal balance until qualifying to be returned to accrual status. Loans are considered for return to accrual status on an individual basis when interest and principal payments are current and future payments are reasonably assured. | |||
TDRs represent loan modifications, including renewals, where concessions have been extended by the Bank due to financial difficulties experienced by the borrower. TDR classification generally continues (i) until the borrower demonstrates sustained payment performance under the modified terms for a minimum of six consecutive payment cycles after the restructuring date and (ii) throughout the calendar year in which the restructuring took place. In addition, if the restructured loan is renewed at a market rate of interest and is structured consistent with normal lending practices, TDR classification may be removed. TDR loans may considered for return to accrual status upon satisfaction of the timely, sustained performance requirements identified above and management’s determination that future payments under the modified terms are reasonably assured. | |||
The Bank considers a loan to be impaired when it is probable that it will be unable to collect all or part of amounts due according to the contractual terms of the loan agreement or the loan has been restructured and is classified as a troubled debt restructuring. Using an internal loan grading system, commercial purpose loans graded 7 and higher are individually evaluated for impairment if reported as nonaccrual and are greater than $100,000 or part of an aggregate relationship exceeding $100,000. Noncommercial purpose loans within the residential consumer real estate and consumer and other loan portfolios are subjected to impairment assessment upon certain triggering events such as delinquency, bankruptcy and restructuring, etc. Impairment is measured by comparing the Bank’s recorded investment in the loan to the present value of expected future cash flows at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price, or the fair value of the collateral less costs to sell if the loan is collateral dependent. Interest income on impaired loans is accrued based on the principal amounts outstanding. The accrual of interest is generally discontinued when an impaired loan becomes 90 days past due. | |||
All cash payments received on impaired nonaccrual loans are generally applied to the principal balance until qualifying to be returned to accrual status. Cash payments received on accruing impaired loans, including accruing TDRs are applied to principal and interest pursuant to the terms of the related loan agreement. | |||
The Bank charges off all or part of loans when amounts are deemed to be uncollectible, although collection efforts may continue and future recoveries may occur. In general, when available information confirms that loans or portions thereof, other than collateral dependent loans, are uncollectible, such amounts are promptly charged-off against the allowance for loan losses. When an impaired loan is collateral dependent, any portion of the loan balance in excess of the fair value of the collateral (or fair value less cost to sell) is promptly charged-off against the allowance for loan losses. | |||
(g) | Other Real Estate Owned | ||
Other real estate owned is recorded at the asset’s estimated fair value, net of estimated disposal costs, at the time of foreclosure, establishing a new cost basis. Any write-downs at the time of foreclosure are charged to the allowance for loan losses. Expenses incurred in maintaining assets, adjustments to estimated disposal costs, and subsequent write-downs to reflect declines in value are charged to noninterest expense. | |||
(h) | Transfer of Financial Assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Bank’s transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2013, 2012, and 2011. | |||
(i) | Premises and Equipment | ||
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization, computed on the straight-line method, are charged to operations over the estimated useful lives of the assets. Estimated useful lives range up to 40 years for buildings, up to 7 years for furniture and equipment and up to 15 years for land improvements. Leasehold improvements are generally depreciated over the shorter of the respective lease term or estimated useful life. | |||
Premises and equipment are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Bank recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in other noninterest expense on the income statement. | |||
(j) | Advertising Costs | ||
Advertising costs are generally expensed as incurred and approximated $97,000, $36,000 and $26,000 in 2013, 2012 and 2011, respectively. | |||
(k) | Federal Income Taxes | ||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||
A valuation allowance, if needed, reduces deferred tax assets to the expected amount more likely than not that is to be realized. Realization of the Corporation’s deferred tax assets is primarily dependent upon the generation of a sufficient level of future taxable income. At December 31, 2013 and 2012, management did not believe it was more likely than not that all of the deferred tax assets would be realized and, accordingly, recorded a valuation allowance of $11.2 million and $11.5 million at each respective year-end. | |||
In preparation of income tax returns, tax positions are taken based on interpretation of federal and state income tax laws for which the outcome is uncertain. Management reviews and evaluates the status of tax positions. There were no unrecognized tax benefits during 2013, 2012 or 2011. Interest or penalties related to unrecognized tax benefits would be recorded in income tax expense. The Corporation files U.S. federal income tax returns which are subject to final examination for all years after 2009. | |||
(l) | Stock-Based Compensation | ||
At December 31, 2013 and 2012, the Corporation had two stock-based compensation plans, which are described more fully in Notes 16 and 17. | |||
(m) | Fair Value of Financial Instruments | ||
Fair values of financial instruments are estimated using market information and other assumptions and involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, assumptions and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect such estimates. | |||
(n) | Common Stock Repurchases | ||
The Corporation records common stock repurchases at cost. A portion of the repurchase is charged to common stock based on the average per share dollar amount of stock outstanding, multiplied by the number of shares repurchased, with the remainder charged to retained earnings. Shares repurchased are retired. No common stock repurchases were made by the Corporation during 2013, 2012, or 2011. | |||
(o) | Statement of Cash Flows | ||
For purposes of reporting cash flows, cash equivalents include amounts due from banks, federal funds sold and other short term investments with original maturities of 90 days or less. | |||
(p) | Comprehensive Income (Loss) | ||
ASC Topic 220 Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components (such as changes in unrealized gains and losses on securities available for sale) in a financial statement that is displayed with the same prominence as other financial statements. The Corporation reports comprehensive income in a separate financial statement titled comprehensive income (loss). Comprehensive income includes net income and any changes in equity from nonowner sources that are not recorded in the income statement. | |||
(q) | Earnings Per Share | ||
Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share is the same as basic earnings per share because any additional potential common shares issuable are included in the basic earnings per share calculation. The Corporation’s restricted stock awards, which provide non-forfeitable rights to dividends or dividend equivalents, are considered a participating security and are included in the number of shares outstanding for both basic and diluted earnings per share calculations. | |||
As explained more fully in Notes 14 and 15, for purposes of computing 2013 basic and diluted earnings per share, the Corporation’s 17,510 shares of Mandatorily Convertible Non-Cumulative Junior Participating Preferred Stock, Series B (the "Series B Preferred Shares"), issued on December 11, 2013, are considered a common stock equivalent and are converted to common shares at a rate reflecting the conversion price per share of common stock of $0.70. | |||
(r) | Reclassifications | ||
Certain reclassifications in the prior years’ financial statements have been made to conform to the current year presentation. | |||
(s) | Operating Segment | ||
While the Corporation monitors revenue streams of the various products and services offered, the Corporation manages its business on the basis of one operating segment, banking, in accordance with the qualitative and quantitative criteria established by ASC Topic 280, Segment Reporting. | |||
Regulatory_Matters_and_Recover
Regulatory Matters and Recovery Initiatives | 12 Months Ended | ||
Dec. 31, 2013 | |||
Regulatory Matters And Going Concern [Abstract] | ' | ||
Regulatory Matters And Going Concern [Text Block] | ' | ||
2. Regulatory Matters and Recovery Initiatives | |||
Regulatory Action | |||
On October 16, 2008, the Bank entered into a formal agreement with its primary federal regulator, the Office of the Comptroller of the Currency (the "OCC"). Pursuant to the agreement, the Bank agreed to take certain actions intended to address various issues that negatively impacted the Bank's financial condition and performance. | |||
On September 24, 2009, the Bank stipulated to the issuance of a Consent Order against the Bank by the OCC. This Consent Order, which superseded the formal agreement signed in October 2008, required the Bank to take certain actions to improve its financial condition and operations, including achieving and maintaining total capital equal to 11% of risk-weighted assets and Tier 1 capital equal to at least 8.5% of adjusted total assets. The Consent Order included a number of other requirements, including the submission of an acceptable strategic plan for the Bank's operations, the development and implementation of various written plans designed to improve the Bank's management of its loan portfolio, and certain steps to manage risks associated with commercial real estate and construction and development lending. | |||
On October 31, 2013, the Bank stipulated to the issuance by the OCC of a new Consent Order against the Bank (the "Consent Order"). This new Consent Order replaces the Consent Order issued in 2009. The new Consent Order includes essentially all of the articles included in the 2009 Consent Order. In addition, the new Consent Order contains certain new conditions and/or articles intended to enhance the Bank’s risk management policies and practices, requirements to obtain certain OCC approval prior to deviating from the Bank's strategic business plan; additional requirements to ensure effective management and board composition, establishment of a formal compensation plan structure, and management of third party vendor relationships; a new article requiring the Bank to establish an affiliate transaction policy; and a new article to ensure the effectiveness of the Bank's internal audit program. The new Consent Order was filed as an exhibit to the Corporation’s Form 10-Q for the quarterly period ended September 30, 2013 and the OCC has made a copy of the new Consent Order available on its website at www.occ.gov. | |||
Importantly, the new Consent Order continues to require the Bank to achieve and maintain total capital equal to 11% of risk weighted assets and Tier 1 capital equal to at least 8.5% of adjusted total assets. On December 11, 2013, the Corporation completed a private placement transaction that resulted in gross proceeds to the Corporation of approximately $17.5 million. On December 20, 2013, the Corporation contributed $15.4 million of the net proceeds from this transaction to the capital of the Bank. As a result, as of December 31, 2013, the Bank met the minimum capital ratios required by the Consent Order. | |||
As noted above, the Consent Order imposes many other requirements on the Bank in addition to the minimum capital ratios. Despite achieving the required minimum capital levels, the Bank was not in full compliance with any of the other articles of the Consent Order at December 31, 2013. Management believes it has made substantive progress on these other Consent Order requirements through various initiatives. However, additional effort and time is necessary in order for the Bank to demonstrate adherence to, and the effectiveness of, new policies and procedures implemented to remediate deficiencies identified in the Consent Order and to achieve compliance with these other provisions of the Consent Order. The Bank continues to work diligently to meet these requirements in an effort to gain full compliance with the Consent Order. | |||
It will be imperative for the Bank to comply with these other requirements in order to avoid further regulatory enforcement action. As long as the Bank is subject to the Consent Order, the financial performance of the Corporation is expected to be adversely impacted by higher FDIC insurance premiums paid by the Bank and ongoing costs incurred to correct the deficiencies underlying the requirements of the Consent Order. | |||
Despite exceeding minimum regulatory standards for well-capitalized institutions at December 31, 2013, for purposes of the regulators’ Prompt Corrective Action (“PCA”) powers, the Bank is currently considered "adequately capitalized" due to being subject to the Consent Order. (See Note 19 for actual regulatory capital ratios at December 31, 2013.) As a result of this classification, for purposes of PCA, the Bank is subject to a number of restrictions. These include, among other things, 1) limitations on the payment of capital distributions and management fees, 2) prohibitions on the acceptance, renewal, or roll-over of any brokered deposit without prior written approval of the Federal Deposit Insurance Corporation (FDIC), and 3) restrictions on interest rates paid on deposits. The Bank's capital category is determined solely for purposes of applying PCA; the capital category may not constitute an accurate representation of the Bank's overall financial condition or prospects. | |||
In addition to the above regulatory actions and restrictions imposed on the Bank, the Federal Reserve has imposed restrictions on the Corporation to effect its support of the Bank. Specifically, the Corporation must receive approval from the Federal Reserve before the payment of dividends, issuance of debt, or redemption of stock. Additional restrictions on the Corporation by the Federal Reserve relate to changes in the composition of the Board of Directors, the employment of senior executive officers or changes in the responsibilities of senior executive officers, and limitations on indemnification and severance payments. | |||
Despite restoration of the Bank’s regulatory capital ratios to minimum levels imposed by the Consent Order, there is no assurance that the Bank will be able to maintain these capital ratios throughout 2014 or beyond. Moreover, management and the Board of Directors' execution of various initiatives designed to fully satisfy the asset quality, risk management, and other requirements of the Consent Order will take additional time and may not prove to be sufficiently effective. As such, no assurance can be provided as to whether or when the Bank will be in full compliance with the Consent Order or whether or when the Consent Order will be lifted or terminated. Even if lifted or terminated, the Bank may still be subject to a memorandum of understanding or other enforcement action by regulators that would restrict activities or that would continue to impose greater capital requirements on the Bank. The requirements and restrictions of the Consent Order are legally enforceable and the Corporation’s or Bank’s failure to comply with such requirements and restrictions may subject the Corporation and the Bank to additional regulatory restrictions. | |||
Until such time as the Consent Order is either modified or lifted, management continues to pursue initiatives to achieve full compliance with all requirements of the Consent Order in order to mitigate the impact of the related regulatory challenges. In addition, execution of such initiatives includes implementation of measures necessary to position the Bank to overcome current economic challenges. | |||
Recovery Plan Initiatives | |||
As part of a recovery plan initiated in late 2008, management and the Board of Directors have been aggressively pursuing various initiatives intended to address and satisfy deficiencies identified in the Consent Order, the most important of which was a significant recapitalization necessary to restore the Bank’s capital to a level sufficient to meet the required minimum capital ratios. Other recovery plan efforts and initiatives are designed to improve the Bank’s financial health and risk management practices and policies. They include aggressively reducing credit risk exposure in the loan portfolio and improving the efficiency and effectiveness of core business processes. Certain other key elements of management’s continued recovery plan include, but are not limited to: | |||
· | Continued, aggressive management of the Bank’s existing loan portfolio to reduce the level of classified loans, to minimize further credit losses and to maximize recoveries via negotiated payoffs, settlements and restructuring of existing problem loans; | ||
· | Continued strengthening of risk management processes and procedures via ensuring the Bank has appropriate personnel with sufficient experience, training and authority to execute safe and sound banking practices with respect to asset quality; | ||
· | Improve core profitability via gradual repositioning of balance sheet composition to increase earning assets while ensuring the Bank maintains an acceptable risk profile and adequate capital levels; and | ||
· | Commitment to dedicate sufficient resources to address all portions of the Consent Order followed by a managed re-alignment of operating costs with a recapitalized, restructured and more efficient banking operation designed to promote balance sheet growth in an increasingly regulated and competitive business climate. | ||
Since 2010 and continuing into 2014, management believes it has made and continues to make significant progress on various initiatives that will contribute to the Bank’s recovery, including: | |||
· | Reduced nonperforming assets to $11.5 million at December 31, 2013 from $16.5 million at December 31, 2012, $26.0 million at December 31, 2011, $35.2 million at December 31, 2010 and $47.5 million at December 31, 2009. | ||
· | Reduced the Bank’s concentration in troubled commercial real estate and land development loans to $20.9 million at December 31, 2013 from $31.9 million at December 31, 2012, $38.2 million at December 31, 2011, $55.0 million at December 31, 2010 and $91.3 million at December 31, 2009. | ||
· | Maintained an allowance for loan losses as a percentage of total loans of 5.58% at December 31, 2013 compared to 6.53% at December 31, 2012, 6.08% at December 31, 2011, 5.92% at December 31, 2010 and 6.81% at December 31, 2009. Improved the allowance to nonperforming loans coverage ratio to 83.3% and 90.3% at December 31, 2013 and 2012, respectively compared to 55.2% at December 31, 2011, 45.3% at December 31, 2010 and 42.7% at December 31, 2009. | ||
· | Maintained elevated on-balance sheet liquidity comprised of average cash and due from banks balances totaling $49.4 million during 2013, $33.3 million during 2012, $31.7 million during 2011, $31.7 million during 2010 and $27.8 million during 2009. Also, maintained a contingency line of credit at the Federal Home Loan Bank of Indianapolis secured by certain investment securities and loans providing average borrowing availability of approximately $30.5 million during 2013, $42.5 million during 2012, $26.3 million during 2011 and $10.3 million during 2010. | ||
· | Reduced the Bank’s loan-to-deposit ratio to 57.9% at December 31, 2013 from 62.6% at December 31, 2012, 73.6% at December 31, 2011, 80.4% at December 31, 2010, and 86.9% at December 31, 2009. | ||
· | Achieved reductions of 6, 16, 30 and 51 basis points in 2013, 2012, 2011 and 2010, respectively, in the Bank’s average cost of funds through nonrenewal of high cost certificate of deposit and competitive deposit rates, without experiencing significant core deposit runoff. | ||
· | Recognized negative provision expense of $2.3 million in 2013 relative to provision for loan loss expense of $1.3 million in 2012 and recent prior year elevated loan loss provisions of $6.2 million in 2011 and 2010 and $15.8 million in 2009. The decreased provision expense demonstrates the effectiveness of continued loan remediation and work-out efforts on problem credits, continued diligent and robust loan review practices which reduced uncertainty in the portfolio, a decreased velocity of new problem loans, and signs of stabilization in local economic conditions, including less depreciation in local real estate values. | ||
· | Moderate increase in 2013 compensation and benefits expense relative to 2012 following relatively stable expense levels in 2012 and 2011. The current year increase includes staffing enhancements in the Bank’s credit department and the addition of a risk management officer to direct and coordinate remediation of various risk management deficiencies identified in the Consent Order. Management believes these enhancements were necessary to ensure the Bank has the appropriate personnel with sufficient experience, training, and authority to execute safe and sound banking practices. | ||
· | Continued reduction of problem asset costs (e.g., commercial legal expense, loan and collection expense, other real estate owned expense, and appraisal expense) in 2013 totaling $309,000 following stabilized expense levels in 2012 relative to 2011; and reductions of $289,000 in 2011 (28.4%) and $471,000 (31.6%) in 2010. | ||
· | Recognized net security gains of $336,000 and $329,000 in 2011 and 2010, respectively, as a result of portfolio restructuring and favorable pricing on securities sold in the current interest rate environment. | ||
· | The Bank’s 2014 budget targets continued remediation of problem assets and the general re-deployment of excess on-balance sheet liquidity into interest earning assets (i.e., investment securities and loans) pursuant to the Bank’s strategic plan. In addition, controlled expense reductions are anticipated correlating with declining problem asset levels, an improved regulatory classification, and other operational efficiencies. | ||
Management makes no assurances that the efforts, results, and/or future plans described above will improve the Bank’s overall financial condition, guarantee profitability in 2014, or ensure the modification or discharge of existing regulatory enforcement actions imposed on the Bank. | |||
Securities
Securities | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||
Investment Securities [Text Block] | ' | ||||||||||||||||
3. Securities | |||||||||||||||||
Securities available for sale consist of the following: | |||||||||||||||||
Unrealized | |||||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Mortgage-backed/CMO | $ | 67,392 | $ | 84 | $ | -2,307 | $ | 65,169 | |||||||||
Obligations of state and political subdivisions | 1,794 | 7 | -7 | 1,794 | |||||||||||||
Preferred stock(1) | 49 | 668 | - | 717 | |||||||||||||
Total available for sale | $ | 69,235 | $ | 759 | $ | -2,314 | $ | 67,680 | |||||||||
31-Dec-12 | |||||||||||||||||
Mortgage-backed/CMO | $ | 67,697 | $ | 349 | $ | -184 | $ | 67,862 | |||||||||
U.S. agency | 3,000 | 7 | - | 3,007 | |||||||||||||
Obligations of state and political subdivisions | 1,534 | 46 | - | 1,580 | |||||||||||||
Preferred stock(1) | 49 | 88 | - | 137 | |||||||||||||
Total available for sale | $ | 72,280 | $ | 490 | $ | -184 | $ | 72,586 | |||||||||
(1) Represents preferred stocks issued by Freddie Mac and Fannie Mae | |||||||||||||||||
Securities are reviewed quarterly for possible other-than-temporary impairment (OTTI) based on guidance included in ASC Topic 320, Investments–Debt and Equity Instruments. This guidance requires an entity to assess whether it intends to sell, or whether it is more likely than not that it will be required to sell, a security in an unrealized loss position before the recovery of the security’s amortized cost basis. If either of these criteria is met, the entire difference between the amortized cost and fair value is recognized in earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment recognized in earnings is limited to the amount related to credit losses, while impairment related to other factors is recognized in other comprehensive income. | |||||||||||||||||
Management’s review of the securities portfolio for the existence of OTTI considers various qualitative and quantitative factors regarding each investment category, including if the securities were U.S. Government issued, the credit rating on the securities, credit outlook, payment status and financial condition, the length of time the security has been in a loss position, the size of the loss position and other meaningful information. | |||||||||||||||||
At December 31, 2013, the Corporation had two non-agency mortgage-backed securities which have been impaired more than twelve months. At December 31, 2012, there was one non-agency mortgage-backed security impaired for more than twelve months. | |||||||||||||||||
A summary of the par value, book value, carrying value (fair value) and unrealized loss for the security is presented below: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | % of Par | Amount | % of Par | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Par value | $ | 1,632 | 100 | % | $ | 2,387 | 100 | % | |||||||||
Book value | 1,454 | 83.34 | % | 2,097 | 87.82 | % | |||||||||||
Carrying value | 1,454 | 83.34 | % | 2,018 | 84.51 | % | |||||||||||
Unrealized loss | - | 0 | % | 79 | 3.31 | % | |||||||||||
The Corporation makes a quarterly assessment of OTTI on its non-agency mortgage-backed security primarily based on a quarterly cash flow analysis performed by an independent third-party specialist. The evaluation includes a comparison of the present value of the expected cash flows to previous estimates to determine whether adverse changes in cash flows resulted during the period. The analysis considers attributes of the security, such as its super tranche position, and specific loan level collateral underlying the security. Certain key attributes of the underlying loans supporting the security included the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted average remaining credit score (based on original FICO) | 737 | 738 | |||||||||||||||
Primary location of underlying loans: | |||||||||||||||||
California | 70 | % | 72 | % | |||||||||||||
Florida | 3 | % | 4 | % | |||||||||||||
Other | 27 | % | 24 | % | |||||||||||||
Delinquency status of underlying loans: | |||||||||||||||||
Past due 30-59 days | 1.44 | % | 2.7 | % | |||||||||||||
Past due 60-89 days | 3.44 | % | 2.62 | % | |||||||||||||
Past due 90 days or more | 6.01 | % | 8.03 | % | |||||||||||||
In process of foreclosure | 3.78 | % | 3.58 | % | |||||||||||||
Held as other real estate owned | 0 | % | 0.75 | % | |||||||||||||
The specialist calculates an estimate of the fair value of the security’s cash flows using an INTEX valuation model, subject to certain assumptions regarding collateral related cash flows such as expected prepayment rates, default rates, loss severity estimates, and discount rates as key valuation inputs. | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Voluntary repayment rate (CRR) | 14.27 | % | 10.14 | % | |||||||||||||
Default rates: | |||||||||||||||||
Within next 24 months | 6.56 | % | 6.87 | % | |||||||||||||
Decreasing to (by month 37) | 3.55 | % | 3.15 | % | |||||||||||||
Decreasing to (by month 212) | 0 | % | 0 | % | |||||||||||||
Loss severity rates: | |||||||||||||||||
Initial loss upon default (Year 1) | 45.08 | % | 50.7 | % | |||||||||||||
Per annum decrease (Years 2 - 11) | 3.5 | % | 2.5 | % | |||||||||||||
Floor (Year 12) | 23 | % | 23 | % | |||||||||||||
Discount rate (1): | 5.5 | % | 7 | % | |||||||||||||
Remaining credit support provided by other collateral pools of underlying loans within the security: | 0 | % | 0.02 | % | |||||||||||||
(1) Intended to reflect estimated uncertainty and liquidity premiums, after adjustment for estimated credit loss cash flows. | |||||||||||||||||
The prepayment assumptions used within the model consider borrowers’ incentive to prepay based on market interest rates and borrowers’ ability to prepay based on underlying assumptions for borrowers’ ability to qualify for a new loan based on their credit and appraised property value, by location. As such, prepayment speeds decrease as credit quality and home prices deteriorate, reflecting a diminished ability to refinance. | |||||||||||||||||
In addition, collateral cash flow assumptions utilize a valuation technique under a “Liquidation Scenario” whereby loans are evaluated by delinquency and are assigned probability of default and loss factors deemed appropriate in the current economic environment. The liquidation scenarios assume that all loans 60 or more days past due migrate to default, are liquidated, and losses are realized over a period of between six and twenty four months based in part upon initial loan to value ratios and estimated changes in both historical and future property values since origination as obtained from financial data sources. | |||||||||||||||||
During the quarter ended September 30, 2011, management’s quarterly analysis identified other-than-temporary impairment for which a realized loss of $76,000 representing credit loss impairment was charged against earnings. The related impairment charge is included in the 2011 net gain on available for sale securities, a component of noninterest income. | |||||||||||||||||
At December 31, 2013 and 2012, based on a present value at a prospective yield of future cash flows for the investment as provided by the specialist and after management’s evaluation of the reasonableness of the specialist's underlying assumptions regarding Level 2 and Level 3 inputs, the Corporation concluded that the security’s expected cash flows continued to support the amortized cost of the security and no additional other-than-temporary impairment had been incurred. | |||||||||||||||||
At December 2013 and 2012, the unrealized (non-credit) loss on the security was determined to be approximately $0 and $79,000, respectively, using the valuation methodology and applicable inputs and assumptions described above. There were no OTTI charges recognized on the security during 2013 or 2012. Prior to 2010, approximately $290,000 of credit-loss OTTI charges were incurred on the security. | |||||||||||||||||
The following is a summary of the gross unrealized losses and fair value of securities by length of time that individual securities have been in a continuous loss position: | |||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||
Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Mortgage-backed/CMO | -2,093 | 52,020 | -214 | 3,537 | -2,307 | 55,557 | |||||||||||
Obligations of state and political subdivisions | -7 | 780 | - | - | -7 | 780 | |||||||||||
Totals | -2,100 | 52,800 | -214 | 3,537 | -2,314 | 56,337 | |||||||||||
31-Dec-12 | |||||||||||||||||
Mortgage-backed/CMO | -105 | 13,448 | -79 | 2,018 | -184 | 15,466 | |||||||||||
The amortized cost and fair value of securities available for sale, by contractual maturity, follow. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Amortized | Approximate | Amortized | Approximate | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Maturing within one year | $ | - | $ | - | $ | - | $ | - | |||||||||
Maturing after one year but within five years | 761 | 761 | 500 | 501 | |||||||||||||
Maturing after five years but within ten years | 505 | 512 | 3,305 | 3,323 | |||||||||||||
Maturing after ten years | 577 | 1,238 | 778 | 900 | |||||||||||||
$ | 1,843 | $ | 2,511 | $ | 4,583 | $ | 4,724 | ||||||||||
Mortgage-backed/CMO securities | 67,392 | 65,169 | 67,697 | 67,862 | |||||||||||||
Totals | $ | 69,235 | $ | 67,680 | $ | 72,280 | $ | 72,586 | |||||||||
Proceeds from at-par calls on securities totaled $3.0 million, $7.0 million, and $2.7 million in 2013, 2012 and 2011, respectively. | |||||||||||||||||
At December 31, 2013 and 2012, the Corporation did not own any investment securities issued by states and political subdivisions in which the amortized cost and fair value of such securities individually exceeded 10% of shareholders’ equity. | |||||||||||||||||
Investment securities, with an amortized cost of approximately $60.8 million at December 31, 2013 were pledged to secure public deposits and for other purposes required or permitted by law, including approximately $25.5 million of securities pledged as collateral at the Federal Home Loan Bank of Indianapolis (FHLBI) to support potential liquidity needs of the Bank. At December 31, 2012, the amortized cost of pledged investment securities totaled $69.1 million of which $25.4 million of securities pledged as collateral at the FHLBI for contingent liquidity needs of the Bank. | |||||||||||||||||
The Bank owns stock in both the Federal Home Loan Bank of Indianapolis (FHLBI) and the Federal Reserve Bank (FRB), both of which are recorded at cost. The Bank is required to hold stock in the FHLBI equal to 5% of the institution’s borrowing capacity with the FHLBI. The Bank’s investment in FHLBI stock amounted to $735,000 at December 31, 2013 and December 31, 2012. The Bank’s investment in FRB stock, which totaled $44,000 at December 31, 2013 and December 31, 2012, is a requirement for the Bank’s membership in the Federal Reserve System. These investments can only be resold to, or redeemed by, the issuer. In June 2011, the FHLBI initiated repurchases of $122,000 of its stock at cost, resulting in no gain or loss to the Bank. | |||||||||||||||||
Loans
Loans | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
4. Loans | ||||||||
The recorded investment in portfolio loans consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial | $ | 15,019 | $ | 16,112 | ||||
Commercial real estate: | ||||||||
Construction, land development, and other land | 5,826 | 8,741 | ||||||
Owner occupied | 49,012 | 51,202 | ||||||
Nonowner occupied | 60,322 | 69,415 | ||||||
Consumer real estate: | ||||||||
Commercial purpose | 6,886 | 6,911 | ||||||
Mortgage - Residential | 12,955 | 14,604 | ||||||
Home equity and home equity lines of credit | 8,991 | 8,307 | ||||||
Consumer and Other | 6,273 | 5,103 | ||||||
Subtotal | 165,284 | 180,395 | ||||||
Unearned income | -169 | -204 | ||||||
Total Loans | $ | 165,115 | $ | 180,191 | ||||
Included in the consumer real estate loans above are residential first mortgages reported as “real estate mortgages” on the consolidated balance sheets. In addition, a portion of these consumer real estate loans include commercial purpose loans where the borrower has pledged a 1-4 family residential property as collateral. Loans also include the reclassification of demand deposit overdrafts, which amounted to $114,000 and $116,000 at December 31, 2013 and 2012, respectively. | ||||||||
Loans serviced for others, including commercial participations sold, are not reported as assets of the Bank and approximated $3.9 million at December 31, 2013 and $4.3 million at December 31, 2012. | ||||||||
Allowance_for_Loan_Losses_and_
Allowance for Loan Losses and Credit Quality of Loans | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Allowance for Credit Losses [Text Block] | ' | ||||||||||||||||||||||||||||||||||
5. Allowance for Loan Losses and Credit Quality of Loans | |||||||||||||||||||||||||||||||||||
The Corporation separates its loan portfolio into segments to perform the calculation and analysis of the allowance for loan losses. The four segments analyzed are Commercial, Commercial Real Estate, Consumer Real Estate, and Consumer and Other. The Commercial segment includes loans to finance commercial and industrial businesses that are not secured by real estate. The Commercial Real Estate segment includes: i) construction real estate loans to finance construction and land development and/or loans secured by vacant land and ii) commercial real estate loans secured by non-farm, non-residential real estate which are further classified as either owner occupied or non-owner occupied based on the underlying collateral type. The Consumer Real Estate segment includes (commercial and non-commercial purpose) loans that are secured by 1 – 4 family residential real estate properties, including first mortgages on residential properties and home equity loans and lines of credit that are secured by first or second liens on residential properties. The Consumer and Other segment include all loans not included in any other segment. These are primarily loans to consumers for household, family, and other personal expenditures, such as autos, boats, and recreational vehicles. | |||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses by portfolio segment is a follows: | |||||||||||||||||||||||||||||||||||
Commercial | Commercial | Total | |||||||||||||||||||||||||||||||||
Real Estate | Consumer | Consumer | |||||||||||||||||||||||||||||||||
Real Estate | and Other | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
Charge offs | -177 | -836 | -87 | -105 | -1,205 | ||||||||||||||||||||||||||||||
Recoveries | 212 | 224 | 363 | 101 | 900 | ||||||||||||||||||||||||||||||
Provision | -310 | -890 | -1,097 | 47 | -2,250 | ||||||||||||||||||||||||||||||
Ending balance | $ | 633 | $ | 7,180 | $ | 1,215 | $ | 186 | $ | 9,214 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 636 | $ | 9,113 | $ | 2,680 | $ | 261 | $ | 12,690 | |||||||||||||||||||||||||
Charge offs | -355 | -2,866 | -689 | -123 | -4,033 | ||||||||||||||||||||||||||||||
Recoveries | 276 | 1,274 | 159 | 78 | 1,787 | ||||||||||||||||||||||||||||||
Provision | 351 | 1,161 | -114 | -73 | 1,325 | ||||||||||||||||||||||||||||||
Ending balance | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
The following presents the balance in allowance for loan losses and loan balances by portfolio segment based on impairment method: | |||||||||||||||||||||||||||||||||||
Commercial | Consumer | Consumer | Total | ||||||||||||||||||||||||||||||||
Commercial | Real Estate | and Other | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11 | $ | 2,298 | $ | 135 | $ | - | $ | 2,444 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 622 | 4,882 | 1,080 | 186 | 6,770 | ||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 633 | $ | 7,180 | $ | 1,215 | $ | 186 | $ | 9,214 | |||||||||||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 211 | $ | 17,052 | $ | 1,848 | $ | - | $ | 19,111 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 14,808 | 98,108 | 26,984 | 6,273 | 146,173 | ||||||||||||||||||||||||||||||
Total recorded investment in loans | $ | 15,019 | $ | 115,160 | $ | 28,832 | $ | 6,273 | $ | 165,284 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 49 | $ | 1,245 | $ | 377 | $ | - | $ | 1,671 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 859 | 7,437 | 1,659 | 143 | 10,098 | ||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 710 | $ | 19,853 | $ | 2,380 | $ | - | $ | 22,943 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 15,402 | 109,505 | 27,442 | 5,103 | 157,452 | ||||||||||||||||||||||||||||||
Total recorded investment in loans | $ | 16,112 | $ | 129,358 | $ | 29,822 | $ | 5,103 | $ | 180,395 | |||||||||||||||||||||||||
Management’s on-going monitoring of the credit quality of the portfolio relies on an extensive credit risk monitoring process that considers several factors including: current economic conditions affecting the Bank’s customers, the payment performance of individual loans and pools of homogenous loans, portfolio seasoning, changes in collateral values, and detailed reviews of specific relationships. | |||||||||||||||||||||||||||||||||||
Our internal loan grading system assigns a risk grade to all commercial loans. This grading system is similar to those employed by banking regulators. Grades 1 through 5 are considered “pass” credits and grade 6 are considered “watch” credits and are subject to greater scrutiny. Those loans graded 7 and higher are considered substandard and are individually evaluated for impairment if reported as nonaccrual and are greater than $100,000 or part of an aggregate relationship exceeding $100,000. All commercial loans are graded at inception and reviewed, and if appropriate, re-graded at various intervals thereafter. Additionally, our commercial loan portfolio and assigned risk grades are periodically subjected to review by external loan reviewers and banking regulators. Certain of the key factors considered in assigning loan grades include: cash flows, operating performance, financial condition, collateral, industry condition, management, and the strength, liquidity and willingness of guarantors’ support. | |||||||||||||||||||||||||||||||||||
A description of the general characteristics of each risk grade follows: | |||||||||||||||||||||||||||||||||||
⋅ | RATING 1 (Satisfactory – Minimal Risk) - Loans in this category are to persons or entities of unquestioned financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 2 (Satisfactory – Modest Risk) – These loans to persons or entities with strong financial condition and above-average liquidity who have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally-generated cash flow covers current maturities of long-term debt more than adequately. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 3 (Satisfactory - Average) – These are loans with average cash flow and ratios compared to peers. Usually RMA comparisons show where companies fall in the performance spectrum. Companies have consistent performance for 3 or more years. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 4 (Satisfactory – Acceptable Risk) – Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Overall, these loans are basically sound. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 5 (Satisfactory - Acceptable – Monitor) - These loans are characterized by borrowers who have marginal, but adequate cash flow, marginal profitability, but currently have been meeting the obligations of their loan structure. However, adverse changes in the borrower’s circumstances and/ or current economic conditions are more likely to impair their capacity for repayment. The borrower has in the past satisfactorily handled debts with the Bank, but may be experiencing some minor delinquency in making payments, or other signs of temporary cash flow issues. Borrower may be experiencing declining margins or other negative financial trends, despite the borrower’s continued satisfactory condition and positive cash flow. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement, or declining but positive repayment capacity. This classification includes loans to new or established borrowers with satisfactory loan structure, but where near term economic or business issues appears to remain stable and the near term projections would limit the ability for an improvement in the financial trends of the borrower. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 6 (Special Mention - OAEM) - Loans in this class have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. These potential weaknesses may result in a deterioration of the repayment of the loan and increase the credit risk. Special mention assets are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Special mention credits may include a borrower that pays the Bank on a timely basis (occasional 30 day delinquent) and may be experiencing temporary cash flow deficiencies. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 7 (Substandard) – A substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans. Substandard credits may include a borrower that pays consistently past due, has significant cash flow shortages and may have a collateral shortfall that requires a specific reserve. | ||||||||||||||||||||||||||||||||||
⋅ | RATING 8 (Doubtful) - This risk rating class has all of the weaknesses inherent in the substandard rating but with the added characteristic that the weaknesses make collection in full or liquidation, on the basis of currently known existing facts, condition, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full within a reasonable period of time; in fact, there is permanent impairment in the collateral securing the Bank’s loan. These loans are in a work-out status, must be non-accrual status and have a defined work-out strategy. | ||||||||||||||||||||||||||||||||||
This is a transitional risk rating class while collateral value and other factors are assessed. Loans will remain in this class for the assessment period, but in no event for more than 1 year. If there is no improvement in the Bank’s position during that time, a charge-off will be taken to best reflect known asset collateral value. If the loan goes into a “Deeds in Redemption” status before 1 year, any shortfall will be recognized immediately. | |||||||||||||||||||||||||||||||||||
The assessment of compensating factors may result in a rating plus or minus one grade from those listed above. These factors include, but are not limited to collateral, guarantors, environmental conditions, history, plan/projection reasonableness, quality of information, and payment delinquency. | |||||||||||||||||||||||||||||||||||
The internal loan grading system is applied to the residential real estate portion of our consumer loan portfolio upon certain triggering events (e.g., delinquency, bankruptcy, restructuring, etc.). However, large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment and are not separately identified for impairment disclosures. The primary risk element for the residential real estate portion of consumer loans is the timeliness of borrowers’ scheduled payments. We rely primarily on our internal reporting system to monitor past due loans and have internal policies and procedures to pursue collection and protect our collateral interests in order to mitigate losses. | |||||||||||||||||||||||||||||||||||
Our monitoring of credit quality is further denoted by classification of loans as nonperforming, which reflects loans where the accrual of interest has been discontinued and loans that are past due 90 days or more and still accruing interest. Nonperforming loans include troubled debt restructured loans (as discussed below) that are on nonaccrual status or past due 90 days or more. Troubled debt restructured loans that are accruing interest and not past due 90 days or more are excluded from nonperforming loans. | |||||||||||||||||||||||||||||||||||
The following presents the recorded investment in loans by risk grade and a summary of nonperforming loans, by class of loan: | |||||||||||||||||||||||||||||||||||
Not | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | Nonperforming | |||||||||||||||||||||||||
Rated | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 114 | $ | 479 | $ | 17 | $ | 2,680 | $ | 5,057 | $ | 5,901 | $ | 607 | $ | 164 | $ | - | $ | 15,019 | $ | 12 | |||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | 1,840 | 1,745 | 165 | 602 | 1,474 | 5,826 | 1,849 | ||||||||||||||||||||||||
Owner occupied | 32 | - | 720 | 3,132 | 20,987 | 16,172 | 2,916 | 5,053 | - | 49,012 | 2,580 | ||||||||||||||||||||||||
Nonowner occupied | - | - | 393 | 1,340 | 19,057 | 28,865 | 4,735 | 5,932 | - | 60,322 | 3,623 | ||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial Purpose | - | - | - | 221 | 1,712 | 3,399 | 760 | 794 | - | 6,886 | 663 | ||||||||||||||||||||||||
Mortgage - Residential | 5,490 | - | - | - | - | 4,349 | - | 3,116 | - | 12,955 | 1,853 | ||||||||||||||||||||||||
Home equity and home equity lines of credit | 4,164 | 3,502 | - | - | - | 770 | - | 555 | - | 8,991 | 363 | ||||||||||||||||||||||||
Consumer and Other | 5,839 | - | - | - | - | 307 | - | 127 | - | 6,273 | 124 | ||||||||||||||||||||||||
Total | $ | 15,639 | $ | 3,981 | $ | 1,130 | $ | 7,373 | $ | 48,653 | $ | 61,508 | $ | 9,183 | $ | 16,343 | $ | 1,474 | $ | 165,284 | $ | 11,067 | |||||||||||||
Not | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | Nonperforming | |||||||||||||||||||||||||
Rated | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 391 | $ | 430 | $ | - | $ | 2,356 | $ | 5,881 | $ | 5,360 | $ | 1,000 | $ | 694 | $ | - | $ | 16,112 | $ | 264 | |||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | 1,431 | 4,006 | 136 | 3,168 | - | 8,741 | 2,391 | ||||||||||||||||||||||||
Owner occupied | 42 | - | - | 1,671 | 18,963 | 21,619 | 3,594 | 5,313 | - | 51,202 | 3,040 | ||||||||||||||||||||||||
Nonowner occupied | - | - | 451 | 1,404 | 17,057 | 30,847 | 11,307 | 8,349 | - | 69,415 | 3,632 | ||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial Purpose | - | - | - | 297 | 948 | 3,594 | 758 | 1,314 | - | 6,911 | 1,158 | ||||||||||||||||||||||||
Mortgage - Residential | 11,232 | - | - | - | - | - | - | 3,372 | - | 14,604 | 2,019 | ||||||||||||||||||||||||
Home equity and home equity lines of credit | 7,760 | - | - | - | - | - | - | 547 | - | 8,307 | 411 | ||||||||||||||||||||||||
Consumer and Other | 4,948 | - | - | - | 6 | 5 | - | 144 | - | 5,103 | 125 | ||||||||||||||||||||||||
Total | $ | 24,373 | $ | 430 | $ | 451 | $ | 5,728 | $ | 44,286 | $ | 65,431 | $ | 16,795 | $ | 22,901 | $ | - | $ | 180,395 | $ | 13,040 | |||||||||||||
Loans are considered past due when contractually required principal or interest has not been received. The amount classified as past due is the entire principal balance outstanding of the loan, not just the amount of payments that are past due. | |||||||||||||||||||||||||||||||||||
An aging analysis of the recorded investment in past due loans, segregated by class of loans follows: | |||||||||||||||||||||||||||||||||||
90+ Days | |||||||||||||||||||||||||||||||||||
Loans Past Due | Past Due | ||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90+ Days | Total | Current | Total | and Accruing | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | 15,019 | $ | 15,019 | $ | - | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | 68 | 68 | 5,758 | 5,826 | - | ||||||||||||||||||||||||||||
Owner occupied | 153 | 155 | 843 | 1,151 | 47,861 | 49,012 | - | ||||||||||||||||||||||||||||
Nonowner occupied | 627 | 312 | 241 | 1,180 | 59,142 | 60,322 | - | ||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 103 | - | 123 | 226 | 6,660 | 6,886 | - | ||||||||||||||||||||||||||||
Mortgage - Residential | 77 | 851 | 104 | 1,032 | 11,923 | 12,955 | - | ||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 75 | 37 | - | 112 | 8,879 | 8,991 | - | ||||||||||||||||||||||||||||
Consumer and Other | 55 | 9 | - | 64 | 6,209 | 6,273 | - | ||||||||||||||||||||||||||||
Total | $ | 1,090 | $ | 1,364 | $ | 1,379 | $ | 3,833 | $ | 161,451 | $ | 165,284 | $ | - | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 136 | $ | 6 | $ | 51 | $ | 193 | $ | 15,919 | $ | 16,112 | $ | - | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 1,609 | - | 30 | 1,639 | 7,102 | 8,741 | - | ||||||||||||||||||||||||||||
Owner occupied | 142 | 32 | 1,837 | 2,011 | 49,191 | 51,202 | - | ||||||||||||||||||||||||||||
Nonowner occupied | - | - | 558 | 558 | 68,857 | 69,415 | - | ||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 133 | - | 558 | 691 | 6,220 | 6,911 | 201 | ||||||||||||||||||||||||||||
Mortgage - Residential | 1,109 | 753 | 21 | 1,883 | 12,721 | 14,604 | - | ||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 302 | 76 | - | 378 | 7,929 | 8,307 | - | ||||||||||||||||||||||||||||
Consumer and Other | 71 | 24 | 32 | 127 | 4,976 | 5,103 | - | ||||||||||||||||||||||||||||
Total | $ | 3,502 | $ | 891 | $ | 3,087 | $ | 7,480 | $ | 172,915 | $ | 180,395 | $ | 201 | |||||||||||||||||||||
Loans are placed on nonaccrual when, in the opinion of management, the collection of additional interest is doubtful. Loans are generally placed on nonaccrual upon becoming ninety days past due. However, loans may be placed on nonaccrual regardless of whether or not they are past due. All cash received on nonaccrual loans is applied to the principal balance. Loans are considered for return to accrual status on an individual basis when all principal and interest amounts contractually due are brought and future payments reasonably assured. | |||||||||||||||||||||||||||||||||||
The following is a summary of the recorded investment in nonaccrual loans, by class of loan: | |||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 12 | $ | 264 | |||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 1,849 | 2,391 | |||||||||||||||||||||||||||||||||
Owner occupied | 2,580 | 3,040 | |||||||||||||||||||||||||||||||||
Nonowner occupied | 3,623 | 3,632 | |||||||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 663 | 957 | |||||||||||||||||||||||||||||||||
Mortgage - Residential | 1,853 | 2,019 | |||||||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 363 | 411 | |||||||||||||||||||||||||||||||||
Consumer and Other | 124 | 125 | |||||||||||||||||||||||||||||||||
Total | $ | 11,067 | $ | 12,839 | |||||||||||||||||||||||||||||||
The following presents information pertaining to impaired loans and related valuation allowance allocations by class of loan: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Valuation | Recorded | Unpaid | Valuation | ||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 198 | $ | 224 | $ | 11 | $ | 463 | $ | 543 | $ | 49 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,368 | 4,664 | 1,649 | 1,211 | 1,396 | 166 | |||||||||||||||||||||||||||||
Owner occupied | 3,467 | 3,799 | 297 | 5,473 | 6,045 | 498 | |||||||||||||||||||||||||||||
Nonowner occupied | 5,107 | 5,470 | 352 | 5,764 | 6,962 | 581 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,185 | 1,316 | 135 | 1,698 | 2,018 | 377 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | 12,325 | 15,473 | 2,444 | 14,609 | 16,964 | 1,671 | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | 13 | 14 | - | 246 | 724 | - | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 306 | 416 | - | 2,391 | 4,730 | - | |||||||||||||||||||||||||||||
Owner occupied | 2,556 | 3,517 | - | 2,084 | 3,914 | - | |||||||||||||||||||||||||||||
Nonowner occupied | 3,248 | 3,871 | - | 2,930 | 3,616 | - | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 663 | 1,261 | - | 683 | 1,150 | - | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | 6,786 | 9,079 | - | 8,334 | 14,134 | - | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Commercial | 211 | 238 | 11 | 709 | 1,267 | 49 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,674 | 5,080 | 1,649 | 3,602 | 6,126 | 166 | |||||||||||||||||||||||||||||
Owner occupied | 6,023 | 7,316 | 297 | 7,557 | 9,959 | 498 | |||||||||||||||||||||||||||||
Nonowner occupied | 8,355 | 9,341 | 352 | 8,694 | 10,578 | 581 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,848 | 2,577 | 135 | 2,381 | 3,168 | 377 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 19,111 | $ | 24,552 | $ | 2,444 | $ | 22,943 | $ | 31,098 | $ | 1,671 | |||||||||||||||||||||||
The following presents information pertaining to the recorded investment in impaired loans as follows: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||
Outstanding | Income | Outstanding | Income | ||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 230 | $ | 15 | $ | 675 | $ | 21 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,925 | 64 | 3,650 | 43 | |||||||||||||||||||||||||||||||
Owner occupied | 7,005 | 318 | 7,568 | 167 | |||||||||||||||||||||||||||||||
Nonowner occupied | 8,415 | 314 | 8,844 | 210 | |||||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,947 | 74 | 2,271 | 23 | |||||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | |||||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | |||||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | |||||||||||||||||||||||||||||||
Total | $ | 20,522 | $ | 785 | $ | 23,008 | $ | 464 | |||||||||||||||||||||||||||
For loans where impairment is measured based on the present value of expected future cash flows, subsequent changes in present value and related allowance adjustments resulting from the passage of time are accounted within the provision for loan losses rather than interest income. | |||||||||||||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||||||||||||
The Corporation may agree to modify the terms of a loan to improve its ability to collect amounts due. The modified terms are intended to enable customers to mitigate the risk of foreclosure by creating a payment structure that provides for continued loan payment requirements based on their current cash flow ability. Modifications, including renewals, where concessions are made by the Bank and result from the debtor’s financial difficulties are considered troubled debt restructurings (TDRs). | |||||||||||||||||||||||||||||||||||
Loan modifications are considered TDRs when the modification includes terms outside of normal lending practices (i.e., concessions) to a borrower who is experiencing financial difficulties. | |||||||||||||||||||||||||||||||||||
Typical concessions granted include, but are not limited to: | |||||||||||||||||||||||||||||||||||
1 | Agreeing to interest rates below prevailing market rates for debt with similar risk characteristics | ||||||||||||||||||||||||||||||||||
2 | Extending the amortization period beyond typical lending guidelines for debt with similar risk characteristics | ||||||||||||||||||||||||||||||||||
3 | Forbearance of principal | ||||||||||||||||||||||||||||||||||
4 | Forbearance of accrued interest | ||||||||||||||||||||||||||||||||||
To determine if a borrower is experiencing financial difficulties, the Corporation considers if: | |||||||||||||||||||||||||||||||||||
1 | The borrower is currently in default on any other of their debt | ||||||||||||||||||||||||||||||||||
2 | It is likely that the borrower would default on any of their debt if the concession was not granted | ||||||||||||||||||||||||||||||||||
3 | The borrower’s cash flow was sufficient to service all of their debt if the concession was not granted | ||||||||||||||||||||||||||||||||||
4 | The borrower has declared, or is in the process of declaring bankruptcy | ||||||||||||||||||||||||||||||||||
5 | The borrower is a going concern (if the entity is a business) | ||||||||||||||||||||||||||||||||||
The following summarizes troubled debt restructurings: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Outstanding Recorded Investment | Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||||
Accruing | Nonaccrual | Total | Accruing | Nonaccrual | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 199 | $ | 13 | $ | 212 | $ | 446 | $ | 264 | $ | 710 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 826 | 1,662 | 2,488 | 1,211 | 2,271 | 3,482 | |||||||||||||||||||||||||||||
Owner occupied | 3,442 | 2,202 | 5,644 | 4,335 | 2,029 | 6,364 | |||||||||||||||||||||||||||||
Nonowner occupied | 4,732 | 2,281 | 7,013 | 5,063 | 3,447 | 8,510 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,185 | 502 | 1,687 | 1,424 | 596 | 2,020 | |||||||||||||||||||||||||||||
Mortgage - Residential | 940 | 823 | 1,763 | 738 | 1,232 | 1,970 | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 58 | 250 | 308 | 62 | 284 | 346 | |||||||||||||||||||||||||||||
Consumer and Other | 6 | 61 | 67 | 9 | 96 | 105 | |||||||||||||||||||||||||||||
Total | $ | 11,388 | $ | 7,794 | $ | 19,182 | $ | 13,288 | $ | 10,219 | $ | 23,507 | |||||||||||||||||||||||
Troubled debt restructured loans may qualify for return to accrual status if the borrower complies with the revised terms and conditions and has demonstrated sustained payment performance consistent with the modified terms for a minimum of six consecutive payment cycles after the restructuring date. In addition, the collection of future payments must be reasonably assured. | |||||||||||||||||||||||||||||||||||
The following presents information regarding existing loans that were restructured, resulting in the loan being classified as a troubled debt restructuring: | |||||||||||||||||||||||||||||||||||
Loans Restructured in 2013 | Loans Restructured in 2012 | ||||||||||||||||||||||||||||||||||
Pre- Modification | Post-Modification | Pre- Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | ||||||||||||||||||||||||||||||
of Loans | Investment | Investment | of Loans | Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | 1 | $ | 46 | $ | 46 | 3 | $ | 153 | $ | 153 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | 3 | 2,631 | 2,631 | |||||||||||||||||||||||||||||
Owner occupied | 1 | 390 | 390 | 5 | 1,281 | 1,281 | |||||||||||||||||||||||||||||
Nonowner occupied | 1 | 105 | 105 | 6 | 2,413 | 2,413 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 2 | 166 | 166 | 3 | 445 | 445 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | 7 | 496 | 496 | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | 2 | 137 | 137 | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | 1 | 28 | 28 | |||||||||||||||||||||||||||||
Total | 5 | $ | 707 | $ | 707 | 30 | $ | 7,584 | $ | 7,584 | |||||||||||||||||||||||||
During the year ended December 31, 2013, the Corporation had four TDR loans with a recorded investment of $567,000 that defaulted within 12 months of restructuring. During the year ended December 31, 2012, the Corporation had seven TDR loans with a recorded investment of $1.4 million that defaulted within 12 months of restructuring. A loan is considered to be in payment default generally once it is 90 days contractually past due under the modified terms. | |||||||||||||||||||||||||||||||||||
The following summarizes the nature of concessions granted by the Corporation to borrowers experiencing financial difficulties which resulted in troubled debt restructurings: | |||||||||||||||||||||||||||||||||||
Non-Market Interest Rate | |||||||||||||||||||||||||||||||||||
Extension of | and Extension of | ||||||||||||||||||||||||||||||||||
Non-Market Interest Rate | Amortization Period | Amortization Period | |||||||||||||||||||||||||||||||||
Pre-Modification | Pre-Modification | Pre-Modification | |||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||
of Loans | Investment | of Loans | Investment | of Loans | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | - | $ | - | 1 | $ | 46 | - | $ | - | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Owner occupied | - | - | - | - | 1 | 390 | |||||||||||||||||||||||||||||
Nonowner occupied | - | - | 1 | 105 | - | - | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | - | - | 2 | 166 | - | - | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | - | $ | - | 4 | $ | 317 | 1 | $ | 390 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial | - | $ | - | 2 | $ | 85 | 1 | $ | 68 | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | 1 | 104 | 2 | 2,527 | |||||||||||||||||||||||||||||
Owner occupied | 1 | 143 | 4 | 1,138 | - | - | |||||||||||||||||||||||||||||
Nonowner occupied | 1 | 262 | 4 | 1,683 | 1 | 468 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 3 | 445 | - | - | - | - | |||||||||||||||||||||||||||||
Mortgage - Residential | 6 | 472 | 1 | 24 | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 2 | 137 | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | 1 | 28 | - | - | - | - | |||||||||||||||||||||||||||||
Total | 14 | $ | 1,487 | 12 | $ | 3,034 | 4 | $ | 3,063 | ||||||||||||||||||||||||||
During the years ended December 31, 2013 and 2012, non-market interest rate restructurings included pre-modification recorded investments of $390,000 and $4.5 million respectively, related to performing loans that were renewed at either their existing contractual rates or non-market interest rates. Because these performing loans were graded substandard and the modified rates were not market rates for similar loans, these renewals are considered troubled debt restructurings. | |||||||||||||||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
6. Premises and Equipment | ||||||||
A summary of premises and equipment, and related accumulated depreciation and amortization follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land and land improvements | $ | 2,875 | $ | 2,858 | ||||
Premises | 9,938 | 9,943 | ||||||
Furniture and equipment | 3,660 | 3,802 | ||||||
16,473 | 16,603 | |||||||
Less accumulated depreciation and amortization | -9,078 | -9,392 | ||||||
Premises and equipment, net | $ | 7,395 | $ | 7,211 | ||||
Other_Real_Estate_Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2013 | |
Real Estate [Abstract] | ' |
Real Estate Owned [Text Block] | ' |
7. Other Real Estate Owned | |
At December 31, 2013, the Bank owned 5 foreclosed properties with a carrying value of $480,000. As of December 31, 2012, the Bank owned 15 foreclosed properties with a carrying value of $3.4 million. During 2013, net gain on sale/write-down of other real estate totaled $91,000 and included $62,000 of valuation write-downs taken subsequent to property acquisitions and $153,000 of net gain recognized upon sale of other real estate. In 2012 and 2011, net losses of $206,000 and $273,000, respectively, were recognized on OREO sales/write-downs. The net income on sale/write-down of other real estate is included in noninterest expense. | |
Time_Certificates_of_Deposit
Time Certificates of Deposit | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Banking and Thrift [Abstract] | ' | |||||||
Deposit Liabilities Disclosures [Text Block] | ' | |||||||
8. Time Certificates of Deposit | ||||||||
The scheduled maturities of time deposits, including brokered certificates of deposit, with a remaining term of more than one year at December 31, 2013 and 2012 were: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
2014 | $ | - | $ | 25,037 | ||||
2015 | 12,607 | 1,043 | ||||||
2016 | 2,645 | 2,257 | ||||||
2017 | 3,101 | 3,131 | ||||||
2018 and thereafter | 2,737 | 26 | ||||||
Total | $ | 21,090 | $ | 31,494 | ||||
Included in time deposits are certificates of deposit in amounts of $100,000 or more. These certificates and their remaining maturities at December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Three months or less | $ | 5,079 | $ | 6,944 | ||||
Three through six months | 5,011 | 3,146 | ||||||
Six through twelve months | 10,572 | 9,729 | ||||||
Over twelve months | 8,391 | 10,888 | ||||||
Total | $ | 29,053 | $ | 30,707 | ||||
Interest expense attributable to time deposits in amounts of $100,000 or more amounted to approximately $287,000, $363,000, and $487,000 in 2013, 2012, and 2011, respectively. | ||||||||
Other_Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
9. Other Borrowings | |
The Bank maintains a line-of-credit with the Federal Home Loan Bank of Indianapolis (“FHLBI”) which provides maximum borrowing capacity of $22.5 million as of December 31, 2013. The line is secured by unencumbered qualified mortgage and home equity loans with outstanding balances of $11.4 million and unencumbered investment securities with a fair value of $19.6 million. | |
The Bank also maintains a line-of-credit at the Federal Reserve discount window secured by specific pledges of eligible commercial loans totaling $9.0 million. At December 31, 2013, the lendable collateral value of such loans totaled $4.7 million. | |
Due to the Bank’s condition, borrowing availability under these lines-of-credit is subject to approval by the FHLBI and Federal Reserve, respectively, and terms may be limited or restricted. | |
No advances were drawn on either the FHLBI or Federal Reserve discount window lines of credit during 2013, 2012 or 2011, except for certain overnight test borrowings. Consequently, any related interest expense incurred on FHLBI and Federal Reserve discount window borrowings during 2013, 2012 and 2011 (if any) was immaterial. No advances were outstanding on these lines of credit at December 31, 2013, 2012, and 2011. | |
The Board of Directors and a member of executive management have extended unsecured non-interest bearing loans to FNBH Bancorp, Inc. to fund operating expenses of the Corporation. In conjunction with the Corporation's December 2013 private placement transaction, $172,000 of the loans were repaid in connection with the Corporation's issuance of the Series B Preferred Shares. | |
Federal_Income_Taxes
Federal Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||
10. Federal Income Taxes | |||||||||||
Federal income tax expense (benefit) consists of: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current | $ | - | $ | - | $ | - | |||||
Deferred | 104 | -104 | - | ||||||||
Total federal income tax expense (benefit) | $ | 104 | $ | -104 | $ | - | |||||
Federal income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to pretax income as a result of the following: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Computed “expected” tax expense (benefit) | $ | 1,047 | $ | 76 | $ | -1,215 | |||||
Increase (reduction) in tax resulting from: | |||||||||||
Tax-exempt interest and dividends, net | -28 | -35 | -104 | ||||||||
Change in valuation allowance | -893 | -157 | 1,320 | ||||||||
Other, net | -22 | 12 | -1 | ||||||||
Total federal income tax expense (benefit) | $ | 104 | $ | -104 | $ | - | |||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 1,465 | $ | 1,983 | |||||||
Net operating loss carryforward | 7,393 | 8,105 | |||||||||
Other-than-temporary impairment on securities available for sale | 769 | 769 | |||||||||
Premises and equipment | 309 | 332 | |||||||||
Deferred directors' fees | 116 | 157 | |||||||||
Reserve for other real estate owned | 53 | 190 | |||||||||
Supplemental retirement plan | 42 | 79 | |||||||||
Unrealized loss on securites available for sale | 529 | - | |||||||||
Other | 66 | 114 | |||||||||
Total gross deferred tax assets | 10,742 | 11,729 | |||||||||
Deferred tax liabilities: | |||||||||||
Deferred loan fees | -54 | -44 | |||||||||
Unrealized gain on securites available for sale | - | -104 | |||||||||
Other | -65 | -65 | |||||||||
Total gross deferred tax liabilities | -119 | -213 | |||||||||
Net deferred tax asset before valuation allowance | 10,623 | 11,516 | |||||||||
Valuation allowance | -10,623 | -11,516 | |||||||||
Net deferred tax asset | $ | - | $ | - | |||||||
Deferred tax assets are subject to periodic asset realization tests. Management believes the above valuation allowances are required at December 31, 2013 and 2012, due to the uncertainty of future taxable income necessary to fully realize the recorded net deferred tax asset. | |||||||||||
It is the Corporation’s policy to evaluate the realizability of deferred tax assets related to unrealized losses on available for sale debt securities separately from its other deferred tax assets when it has the intent and ability to hold the security to recovery (maturity, if necessary). Because the future taxable income implicit in the recovery of the basis of available for sale debt securities for financial reporting purposes will offset the deductions underlying the deferred tax asset, a valuation allowance would generally not be necessary, even in cases where a valuation allowance might be necessary related to the Corporation’s other deferred tax assets. | |||||||||||
At December 31, 2013, the Corporation had a net operating loss carryforward of approximately $21.7 million that expires beginning in 2028 if not previously utilized. | |||||||||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||
11. Related Party Transactions | ||||||||
Certain directors and executive officers, including their immediate families and companies in which they are principal owners, were loan customers of the Bank during 2013 and 2012. Deposits from such individuals and their related interests totaled approximately $839,000 and $663,000 at December 31, 2013 and December 31, 2012, respectively. Loans were made to such individuals in the ordinary course of business, in accordance with the Bank’s normal lending policies, including the interest rate charged and collateralization, and do not represent more than a normal credit risk. | ||||||||
Loans to related parties are summarized below for the periods indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | 211 | $ | 498 | ||||
New loans and related parties | 30 | - | ||||||
Loan repayments | -61 | -271 | ||||||
Loans no longer related-party | - | -16 | ||||||
Balance at end of year | $ | 180 | $ | 211 | ||||
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Leases of Lessee Disclosure [Text Block] | ' | ||||
12. Leases | |||||
The Bank has a noncancelable operating lease that provides for renewal options. Future minimum lease payments under the noncancelable lease as of December 31, 2013, are as follows: | |||||
Year ending December 31 (in thousands): | |||||
2014 | $ | 78 | |||
2015 | 58 | ||||
2016 | 48 | ||||
2017 | 36 | ||||
Total lease payments | $ | 220 | |||
Rental expense charged to operations in 2013, 2012 and 2011 amounted to approximately $92,000, $88,000 and $84,000, respectively, including amounts paid under short term, cancelable leases. | |||||
Retirement_Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2013 | |
Retirement Plan [Abstract] | ' |
Retirement Plan Disclosure [Text Block] | ' |
13. Retirement Plan | |
The Bank sponsors a defined contribution money purchase thrift plan covering all employees 21 years of age or older who have completed one year of service as defined in the plan agreement. No employer contributions were made to the plan during 2010 through 2012 due to the Bank’s financial condition. In 2013, based on improved financial results, the Bank reinstated a discretionary employer contribution equal to 50% of an employee’s contribution, limited to 3% of the employee’s base compensation or the maximum amount permitted by the Internal Revenue Code. Plan expenses totaled $75,000, $0, and $0 in 2013, 2012 and 2011, respectively. | |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders Equity Note [Abstract] | ' |
Stockholders Equity Note Disclosure [Text Block] | ' |
14. Shareholders’ Equity | |
On September 22, 2011, at a special shareholder meeting, the shareholders of the Corporation approved a 1-for-7 reverse stock split of the Corporation’s outstanding common stock which became effective as of the close of business on October 3, 2011. The Corporation’s common stock began trading on a split adjusted basis on the Over-The-Counter Bulletin Board at the opening of trading on October 4, 2011. All share and per share amounts included in these consolidated financial statements reflect the 1-for-7 reverse stock split. In connection with the reverse stock split, each seven shares of common stock issued and outstanding at the close of trading on the effective date was reclassified into one share of common stock. No fractional shares of common stock were issued as a result of the reverse split; instead, fractional shares were rounded up to the nearest whole share. The reverse stock split reduced the number of shares of outstanding common stock from 3,171,523 to 453,553. There was no change to the number of authorized shares of common stock as a result of the reverse split. | |
On October 14, 2011, the Corporation adopted a Tax Benefits Preservation Plan (the Plan) designed to help protect its ability to utilize its deferred tax assets (such as net operating loss carry forwards) to offset future taxable income and reduce future federal income tax liability. The Corporation’s ability to use these deferred tax assets would be substantially limited if there were an “ownership change” as defined under federal tax rules. The Plan is designed to reduce the likelihood that the Corporation will experience an ownership change by discouraging any person who is not already a 5% shareholder from becoming a 5% shareholder of the Corporation (with certain limited exceptions). As a result of the adoption of the Plan, each shareholder of record on October 14, 2011, received a dividend of one right to purchase certain preferred securities of the Corporation upon the occurrence of certain events for every share of common stock owned by the shareholder. | |
On May 24, 2012, at the Corporation’s annual shareholder meeting, the shareholders approved an increase in the number of authorized shares of common stock from 7 million shares to 11 million shares. The additional shares were authorized in light of a planned recapitalization of the Corporation. | |
In a private placement transaction which closed on December 11, 2013, the Corporation issued 17,510 shares of its Mandatorily Convertible Non-Cumulative Junior Participating Preferred Stock, Series B (the "Series B Preferred Shares") to investors who qualified as accredited investors under federal securities laws. The transaction resulted in gross proceeds to the Corporation of approximately $17.5 million and provided additional equity of approximately $16.5 million after related offering costs. Shares of preferred stock were offered in the private placement instead of common stock because the Corporation did not have a sufficient number of authorized shares of common stock to raise the desired amount of capital needed from the private placement. The Series B Preferred Shares are convertible into shares of the Corporation's common stock at a rate reflecting a price per share of common stock of $0.70, subject to certain customary anti-dilution adjustments. The conversion into common stock will take place automatically upon the approval by the Corporation's shareholders of additional shares of authorized common stock. Until converted into common stock, the Series B Preferred Shares have terms that are substantially identical to the terms applicable to the outstanding common stock with respect to dividends, distributions, voting, and all other matters. For matters submitted to a vote of the holders of the Corporation's common stock, including the proposal to authorize additional shares of common stock, the Series B Preferred Shares will vote with the common stock, as a single class, as if the Series B Preferred Shares were already converted into common stock. At the annual meeting of shareholders scheduled for May 22, 2014, the Corporation intends to ask our shareholders to approve an increase in the authorized number of shares of common stock sufficient to allow the conversion of all outstanding Series B Preferred Shares into shares of our common stock. In addition, the Corporation may, at any time and at its option – and without needing the approval or consent of the holder of a Series B Preferred Share – cause the mandatory conversion of such holder's Series B Preferred Shares into common stock to the extent sufficient existing authorized common shares are available. | |
Given the parity of the rights and limitations and the lack of preferences of the Series B Preferred Shares relative to the Corporation's common stock, the Series B Preferred Shares are, for all purposes, considered a common stock equivalent However, because the sale of the Series B Preferred Shares was not registered under federal securities laws pursuant to an exemption from such registration requirements, they (and any shares of common stock issued upon conversion of the Series B Preferred Shares) are subject to transfer restrictions, including a minimum holding period of 180 days following the December 11, 2013 issuance date. | |
On March 27, 2014, the Corporation completed the issuance and sale of new shares of common stock to shareholders of record on January 8, 2014 pursuant to a rights offering that was registered with the SEC. The Corporation conducted the rights offering in an effort to provide an opportunity for its historical shareholder base to make an additional investment in the Corporation at the same terms as were offered in the aforementioned private placement. To this end, investors in the private placement agreed, as a condition to their participation in the private placement, not to exercise any right to purchase shares in the rights offering, such that the shares of common stock offered in the rights offering would be available for purchase by shareholders who did not participate in the private placement. Each shareholder of record was granted the right to purchase up to six shares of common stock for every one share of common stock held as of the record date, at a price of $0.70 per share. The Corporation issued a total of approximately 2.3 million common shares in the rights offering.The rights offering generated gross proceeds of approximately $1.6 million and provided additional equity to the Corporation of approximately $1.5 million, after offering costs. On March 28, 2014, the Corporationcontributed $550,000 of the net proceeds from the rights offering to the capital of the Bank. The additional capital contribution is expected to enable the Bank to maintain the minimum regulatory capital ratios imposed by the Consent Order during the first quarter of 2014. The remaining net proceeds not contributed to the Bank are being retained at the holding company and are available for holding company operating expenses and/or potential future contribution to the Bank. | |
Net_Income_per_Common_Share
Net Income per Common Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||
15. Net Income per Common Share | |||||||||||
Basic earnings per common share are based on the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share are the same as basic earnings per share because any additional potential common shares issuable are included in the basic earnings per share calculation. On January 1, 2009, the Corporation adopted new guidance impacting ASC Topic 260, Earnings Per Share, related to determining whether instruments granted in a share-based payment transaction are participating securities. This guidance requires that unvested stock awards which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (referred to as “participating securities”), be included in the number of shares outstanding for both basic and diluted earnings per share calculations. Our unvested restricted stock under the Long-Term Incentive Plan (see Note 16) is considered a participating security. In the event of a net loss, the participating securities are excluded from the calculation of both basic and diluted earnings per share. Due to our net loss for the year ended December 31, 2011, the unvested restricted shares were not included in determining basic and diluted earnings per share for 2011. | |||||||||||
For purposes of determining basic and diluted net income per share for 2013, the Corporation’s 17,510 shares of Series B Preferred Shares issued on December 11, 2013 are considered a common stock equivalent and are converted to common shares at a rate reflecting a price per share of common stock of $0.70. | |||||||||||
The following presents basic and diluted net income per share: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands, except per share amounts) | |||||||||||
Weighted average basic and diluted common shares outstanding | 457,435 | 457,416 | 457,318 | ||||||||
Weighted average common stock equivalent preferred shares outstanding, as converted | 1,439,178 | - | - | ||||||||
Total weighted average basic and diluted shares outstanding | 1,896,613 | 457,416 | 457,318 | ||||||||
Net income (loss) available to shareholders | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Basic and diluted net income (loss) per share | $ | 1.57 | $ | 0.72 | $ | -7.81 | |||||
Long_Term_Incentive_Plan
Long Term Incentive Plan | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
16. Long Term Incentive Plan | |
Under the Long Term Incentive Plan (the “LTIP”), the Corporation had the authority to grant stock options and restricted stock as compensation to key employees. Such authority expired April 22, 2008. The Corporation did not award any stock options under the LTIP. The restricted shares granted under the LTIP had a five-year vesting period. The awards were recorded at fair value on the grant date and amortized into salary expense over the vesting period. | |
At December 31, 2012, all restricted shares granted under the LTIP had vested and there was no unrecognized compensation cost related to nonvested stock awards. The total fair value of the awards which vested during the years ended December 31, 2012 and 2011 was $4,000 and $16,000, respectively. | |
Directors_Stock_Fee_Plan
Directors' Stock Fee Plan | 12 Months Ended |
Dec. 31, 2013 | |
Directors Stock Fee Plan [Abstract] | ' |
Directors Stock Fee Plan Disclosure [Text Block] | ' |
17. Directors’ Stock Fee Plan | |
Each director of the Corporation who is not an officer or employee of any subsidiary of the Corporation is eligible to participate in the Compensation Plan for Nonemployee Directors. Nonemployee directors may elect to participate in this plan in lieu of all or a portion of fees payable to them as directors (“plan fees”). The plan fees consist of both a fixed and variable component. The fixed component equals the per-meeting fee paid for attendance at board meetings of both the Bank and the Corporation and any committees of their respective boards. The variable component of the plan is equal to the total fixed fees paid to a specific director for services performed during the preceding calendar year, multiplied by bonus amounts (expressed as the percentage of base compensation payable to officers of the Bank for the preceding calendar year under the Bank’s Incentive Bonus Plan). Expenses related to both fixed and variable fees are recorded as noninterest expense in the year incurred regardless of payment method. | |
Fixed directors’ fees may be paid in cash, to a current stock purchase account, to a deferred cash investment account, or to a deferred stock account according to each eligible director’s payment election. Current stock is issued quarterly based on the average fair market value of the stock for the preceding quarter. When deferred stock is elected, payments are credited to a deferred stock account for each participating director, and stock units are computed quarterly based on the average fair market value of the stock for the preceding quarter. When dividends are declared, they are computed based on the stock units available in each director’s deferred account, are reinvested in stock units and charged to expense. The units are converted to shares and issued to participating directors upon retirement. As of December 31, 2013, there were approximately 1,906 shares earned and available for distribution in the fixed-fee deferred stock accounts. | |
Variable directors’ fees may be paid to a current stock purchase account or to a deferred stock account. Current stock is issued based on the average fair market value of the stock for the preceding quarter. Deferred stock units are computed for directors electing to use a deferred stock account, and dividends are reinvested throughout the year as declared. As of December 31, 2013, there were 413 shares earned and available for distribution in the variable-fee deferred stock accounts. | |
There were no compensation costs related to variable directors’ fees included in noninterest expense in 2013, 2012 or 2011. Effective October 2012, all director fee compensation was suspended as a result of the financial condition and regulatory actions taken against the Corporation and the Bank. | |
Financial_Instruments_with_Off
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Financial Instruments With Off Balance Sheet Risk [Abstract] | ' | |||||||
Financial Instruments With Off Balance Sheet Risk Disclosure [Text Block] | ' | |||||||
18. Financial Instruments with Off-Balance-Sheet Risk | ||||||||
The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments are loan commitments to extend credit and letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated balance sheets. | ||||||||
The Bank’s exposure to credit loss in the event of the nonperformance by the other party to the financial instruments for loan commitments to extend credit and letters of credit is represented by the contractual amounts of these instruments. The Bank uses the same credit policies in making credit commitments as it does for on-balance-sheet loans. | ||||||||
Financial instruments whose contract amounts represent credit risk are as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial | $ | 9,144 | $ | 6,146 | ||||
Commercial real estate | 1,247 | 1,072 | ||||||
Consumer real estate | 4,410 | 4,164 | ||||||
Consumer and Other | 2,648 | 2,841 | ||||||
Total credit commitments | $ | 17,449 | $ | 14,223 | ||||
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. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable; inventory; property, plant, and equipment; residential real estate; and income-producing commercial properties. Market risk may arise if interest rates move adversely subsequent to the extension of commitments. | ||||||||
As of December 31, 2013 and 2012, the Bank had outstanding irrevocable standby letters of credit, which carry a maximum potential commitment of approximately $10,000, respectively. These letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The majority of these letters of credit are short term guarantees of one year or less, although some have maturities which extend as long as two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. The Bank primarily holds real estate as collateral supporting those commitments for which collateral is deemed necessary. The extent of collateral held on those commitments at December 31, 2013 and 2012, where there is collateral, is in excess of the committed amount. A letter of credit is not recorded on the balance sheet until a customer fails to perform. | ||||||||
Capital
Capital | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Capital [Abstract] | ' | |||||||||||||||||||
Capital Disclosure [Text Block] | ' | |||||||||||||||||||
19. Capital | ||||||||||||||||||||
The Corporation and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can result in the initiation of certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct, material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Corporation’s and the Bank’s capital classification are also subject to qualitative judgments by regulators with regard to components, risk weightings, and other factors. | ||||||||||||||||||||
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) required that the federal regulatory agencies adopt regulations defining five capital tiers for banks: | ||||||||||||||||||||
Total | Tier 1 | |||||||||||||||||||
Risk-Based | Risk-Based | |||||||||||||||||||
Capital Ratio | Capital Ratio | Leverage Ratio | ||||||||||||||||||
Well capitalized | 10% or above | 6% or above | 5% or above | |||||||||||||||||
Adequately capitalized | 8% or above | 4% or above | 4% or above | |||||||||||||||||
Undercapitalized | Less than 8% | Less than 4% | Less than 4% | |||||||||||||||||
Significantly undercapitalized | Less than 6% | Less than 3% | Less than 3% | |||||||||||||||||
Critically undercapitalized | - | - | A ratio of tangible equity to | |||||||||||||||||
total assets of 2% or less | ||||||||||||||||||||
Quantitative measures established by regulation to ensure capital adequacy require the Corporation and the Bank to maintain minimum amounts and ratios of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and Tier 1 capital (as defined) to average assets (as defined). The Corporation’s and the Bank’s actual capital amounts and ratios are presented in the following table: | ||||||||||||||||||||
Minimum for | To be Well Capitalized | |||||||||||||||||||
Capital Adequacy | Under Prompt Corrective | |||||||||||||||||||
Actual | Purposes | Action Provision | ||||||||||||||||||
As of December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Total Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | $ | 28,593 | 14.57 | % | $ | 18,705 | 8 | % | $ | 19,631 | 10 | % | ||||||||
FNBH Bancorp | 29,204 | 14.86 | % | 15,724 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | 26,052 | 13.27 | % | 7,852 | 4 | % | 11,779 | 6 | % | |||||||||||
FNBH Bancorp | 26,660 | 13.56 | % | 7,862 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to average assets) | ||||||||||||||||||||
Bank | 26,052 | 8.67 | % | 12,021 | 4 | % | 15,026 | 5 | % | |||||||||||
FNBH Bancorp | 26,660 | 8.82 | % | 12,097 | 4 | % | N/A | N/A | ||||||||||||
As of December 31, 2012 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | $ | 10,195 | 5.02 | % | $ | 16,240 | 8 | % | $ | 20,300 | 10 | % | ||||||||
FNBH Bancorp | 9,822 | 4.84 | % | 16,240 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | 7,540 | 3.71 | % | 8,120 | 4 | % | 12,180 | 6 | % | |||||||||||
FNBH Bancorp | 7,167 | 3.53 | % | 8,120 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to average assets) | ||||||||||||||||||||
Bank | 7,540 | 2.58 | % | 11,686 | 4 | % | 14,608 | 5 | % | |||||||||||
FNBH Bancorp | 7,167 | 2.45 | % | 11,686 | 4 | % | N/A | N/A | ||||||||||||
The OCC has established the following minimum capital standards for national banks: a leverage requirement consisting of a minimum ratio of Tier 1 capital to total average assets of 3% for the most highly-rated banks, with minimum requirements of 4% to 5% for all others, and a risk-based capital requirement consisting of a minimum ratio of total capital to total risk-weighted assets of 8%, at least one-half of which must be Tier 1 capital. Tier 1 capital consists principally of shareholders’ equity. These capital requirements are minimum requirements. Higher capital levels will be required if warranted by the particular circumstances or risk profiles of individual institutions. Federal law provides the federal banking regulators with broad power to take prompt corrective action to resolve the problems of undercapitalized institutions. | ||||||||||||||||||||
As a result of a new Consent Order issued to the Bank by the OCC on October 31, 2013, the Bank continues to be subject to higher minimum capital ratios than those shown above. Specifically, the Consent Order requires the Bank to maintain a Total risk-based capital ratio of 11% and a Tier 1 leverage ratio of 8.5%. As shown above, the Bank’s actual ratios were in compliance with the minimum ratios for a well-capitalized institution as of December 31, 2013. However, because the Bank is subject to the Consent Order, it does not meet the regulatory determination of a well-capitalized institution. As such, the Bank is considered "adequately capitalized" for purposes of the OCC’s Prompt Corrective Action (“PCA”) enforcement powers. The Bank's capital category is determined solely for purposes of applying PCA; the capital category may not constitute an accurate representation of the Bank's overall financial condition or prospects. | ||||||||||||||||||||
The Corporation’s ability to pay dividends is subject to various regulatory and state law requirements. Due to the Bank’s regulatory condition, the Bank cannot pay a dividend to the Corporation without the prior approval of the OCC. The Corporation does not anticipate the Bank providing any dividends to the Corporation through at least 2014. The Corporation suspended, indefinitely, the payment of dividends to its shareholders in the third quarter of 2008 due to the Bank’s inability to pay dividends to the holding company and insufficient cash at the holding company to pay the dividends. The Corporation does not anticipate resuming dividend payments to its shareholders in the near future. | ||||||||||||||||||||
As of its most recent examination date, which occurred prior to completion of the Corporation’s private placement transaction in December 2013, the Corporation is considered a troubled institution due to the critically deficient condition of its subsidiary Bank. However, completion of the aforementioned private placement transaction enabled the Corporation to take action to support the Bank. Namely, the Corporation used proceeds from the private placement to provide a $15.4 million capital infusion into the Bank in December 2013, which enabled the Bank to satisfy minimum regulatory capital ratios at year-end 2013 that had been imposed on the Bank under a Consent Order issued by the OCC. The Corporation is still required to receive prior approval from the Federal Reserve before the payment of dividends, issuance of debt, or redemption of stock. Additional restrictions imposed on the Corporation by the Federal Reserve relate to changes in the composition of the Board of Directors, the employment of senior executive officers or changes in the responsibilities of senior executive officers, and limitations on indemnification and severance payments. | ||||||||||||||||||||
Contingent_Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Contingent Liabilities [Abstract] | ' |
Contingent Liabilities Disclosure [Text Block] | ' |
20. Contingent Liabilities | |
The Corporation is subject to various claims and legal proceedings arising out of the normal course of business, none of which, in the opinion of management, based on the advice of legal counsel, is expected to have a material effect on the Corporation’s financial position or results of operations. | |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||
21. Fair Value Measurements | ||||||||||||||
ASC Topic 820 defines fair value and establishes a consistent framework for measuring fair value and expands disclosure requirements for fair value measurements. Fair values represent the estimated price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price”. The three levels of inputs that may be used to measure fair value are as follows: | ||||||||||||||
Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be derived from or corroborated by observable market data by correlation or other means. | ||||||||||||||
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||
The following is a description of the Corporation’s valuation methodologies used to measure and disclose the fair values of its financial assets and liabilities on a recurring basis: | ||||||||||||||
Securities available for sale. Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based on quoted prices, if available (Level 1). If quoted prices are not available, fair values are measured using independent pricing models such as matrix pricing models (Level 2). Matrix pricing is a mathematical technique widely used in the financial industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Level 2 securities include U.S. government and agency securities, other U.S. government and agency mortgage-backed securities, municipal bonds and preferred stock securities. Level 3 securities include private collateralized mortgage obligations. The fair value measurement of our only Level 3 security, a non-investment grade CMO, and details regarding significant inputs and assumptions used in estimating its fair value, is detailed in Note 3, Securities. | ||||||||||||||
Fair value of assets measured on a recurring basis: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
31-Dec-13 | ||||||||||||||
Obligations of state and political subdivisions | $ | 1,794 | $ | - | $ | 1,794 | $ | - | ||||||
Mortgage-backed/CMO | 65,169 | - | 63,715 | 1,454 | ||||||||||
Preferred stock | 717 | - | 717 | |||||||||||
Total investment securities available for sale | $ | 67,680 | $ | - | $ | 66,226 | $ | 1,454 | ||||||
31-Dec-12 | ||||||||||||||
Obligations of state and political subdivisions | $ | 1,580 | $ | - | $ | 1,580 | $ | - | ||||||
U.S. agency | 3,007 | - | 3,007 | - | ||||||||||
Mortgage-backed/CMO | 67,862 | - | 65,844 | 2,018 | ||||||||||
Preferred stock | 137 | - | 137 | |||||||||||
Total investment securities available for sale | $ | 72,586 | $ | - | $ | 70,568 | $ | 2,018 | ||||||
The reconciliation of the beginning and ending balances of the asset classified by the Corporation within Level 3 of the valuation hierarchy is as follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Fair Value Measurement | Fair Value Measurement | |||||||||||||
Using Significant | Using Significant | |||||||||||||
Unobservable Inputs | Unobservable Inputs | |||||||||||||
(Level 3) | (Level 3) | |||||||||||||
Fair value of non-agency mortgage-backed security, beginning of year(1) | $ | 2,018 | $ | 2,064 | ||||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||
Included in earnings(2) | - | - | ||||||||||||
Included in other comprehensive income (2) | 79 | 358 | ||||||||||||
Purchases, issuances, and other settlements | -643 | -404 | ||||||||||||
Transfers into Level 3 | - | - | ||||||||||||
Fair value of non-agency mortgage-backed security, end of year | $ | 1,454 | $ | 2,018 | ||||||||||
Total amount of losses for the year included in earnings attributable to the change in unrealized in unrealized losses relating to assets still held at end of year | $ | - | $ | - | ||||||||||
-1 | Non-agency CMO classified as available for sale is valued using internal valuation models and pricing information from third parties. | |||||||||||||
-2 | Realized gains (losses), including unrealized losses deemed other-than-temporary, are reported in noninterest income. Unrealized gains (losses) are reported in accumulated other comprehensive income (loss). | |||||||||||||
The following is a description of the Corporation’s valuation methodologies used to measure and disclose the fair values of its financial assets and liabilities on a non-recurring basis: | ||||||||||||||
Loans. The Corporation does not record loans at fair value on a recurring basis. However, from time to time, the Corporation records nonrecurring fair value adjustments to collateral dependent loans to reflect partial write-downs or specific reserves that are based on the observable market price or current appraised value of the collateral. These loans are reported in the nonrecurring table below at initial recognition of impairment and on an ongoing basis until recovery or charge off. 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 a current 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 loan as nonrecurring Level 3. | ||||||||||||||
Other real estate owned. Real estate acquired through foreclosure or deed-in-lieu is adjusted to fair value less costs to sell upon transfer of the loan to other real estate owned, usually based on an appraisal of the property. Subsequently, other real estate owned is carried at the lower of carrying value or fair value, less cost to sell. A valuation based on a current appraisal or by a broker’s opinion is considered a Level 2 fair value. If management determines the fair value of the property is further impaired below the appraised value and there is no observable market price, the Corporation records the property as nonrecurring Level 3. | ||||||||||||||
Fair value of assets on a non-recurring basis: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
31-Dec-13 | ||||||||||||||
Impaired loans (1) | $ | 16,667 | $ | - | $ | - | $ | 16,667 | ||||||
Other real estate owned | $ | 480 | $ | - | $ | - | $ | 480 | ||||||
31-Dec-12 | ||||||||||||||
Impaired loans (1) | $ | 21,272 | $ | - | $ | - | $ | 21,272 | ||||||
Other real estate owned | $ | 3,427 | $ | - | $ | - | $ | 3,427 | ||||||
-1 | Represents carrying value and related write-downs and specific reserves pertaining to collateral dependent loans for which adjustments are based on the appraised value of the collateral or by other unobservable inputs. | |||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Financial Instruments Disclosure [Text Block] | ' | ||||||||||||||||
22. Fair Value of Financial Instruments | |||||||||||||||||
Fair value disclosures require fair-value information about financial instruments for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair-value estimates cannot be substantiated by comparison to independent markets and, in many cases, cannot be realized in immediate settlement of the instrument. | |||||||||||||||||
Fair-value methods and assumptions for the Corporation’s financial instruments are as follows: | |||||||||||||||||
Cash and cash equivalents – The carrying amounts reported in the consolidated balance sheet for cash and short term investments reasonably approximate those assets’ fair values. | |||||||||||||||||
Investment securities – Fair values for investment securities are determined as discussed above. | |||||||||||||||||
FHLBI and FRB stock – The carrying amounts reported in the consolidated balance sheet for FHLBI and FRB stock reasonably approximate those assets’ fair values. | |||||||||||||||||
Loans – For variable-rate loans that reprice frequently, fair values are generally based on carrying values, adjusted for credit risk. The fair value of fixed-rate loans is estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. | |||||||||||||||||
Accrued interest income – The carrying amount of accrued interest income is a reasonable estimate of fair value. | |||||||||||||||||
Deposit liabilities – The fair value of deposits with no stated maturity, such as demand deposit, NOW, savings, and money market accounts, is equal to the amount payable on demand. The fair value of certificates of deposit is estimated using rates currently offered for wholesale funds with similar remaining maturities. | |||||||||||||||||
Other borrowings – The carrying amount of other borrowings is a reasonable estimate of fair value. | |||||||||||||||||
Accrued interest payable – The carrying amount of accrued interest payable is a reasonable estimate of fair value. | |||||||||||||||||
Off-balance-sheet instruments – The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of commitments to extend credit, including letters of credit, is estimated to approximate their aggregate book balance and is not considered material and therefore not included in the following table. | |||||||||||||||||
Level in Fair | December 31, 2013 | December 31, 2012 | |||||||||||||||
Value Hierarchy | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 77,827 | $ | 77,827 | $ | 41,824 | $ | 41,824 | ||||||||
Short term investments | Level 2 | 198 | 198 | 197 | 197 | ||||||||||||
Investment and mortgage-backed securities | Level 2 | 66,226 | 66,226 | 70,568 | 70,568 | ||||||||||||
Non-agency mortgage-backed security | Level 3 | 1,454 | 1,454 | 2,018 | 2,018 | ||||||||||||
FHLBI and FRB stock | Level 2 | 779 | 779 | 779 | 779 | ||||||||||||
Loans, net | Level 3 | 155,901 | 156,793 | 168,422 | 169,365 | ||||||||||||
Accrued interest income | Level 2 | 573 | 573 | 705 | 705 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | Level 2 | $ | 285,313 | $ | 280,549 | $ | 287,682 | $ | 287,749 | ||||||||
Other borrowings | Level 2 | 16 | 16 | 148 | 148 | ||||||||||||
Accrued interest expense | Level 2 | 83 | 83 | 93 | 93 | ||||||||||||
Limitations | |||||||||||||||||
Fair-value estimates are made at a specific point in time based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discounts that could result from offering for sale at one time the Corporation’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Corporation’s financial instruments, fair-value estimates are based on judgments regarding future loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. | |||||||||||||||||
Dividend_Restrictions
Dividend Restrictions | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | ' |
Restrictions on Dividends, Loans and Advances [Text Block] | ' |
23. Dividend Restrictions | |
On a parent company-only basis, the Corporation’s only source of funds is dividends paid by the Bank. The ability of the Bank to pay dividends is subject to limitations under various laws and regulations and to prudent and sound banking principles. The Bank may not declare a dividend without the approval of the Office of the Comptroller of the Currency (OCC) unless the total of its net profits for the year combined with its retained profits of the two preceding years exceed the total dividends in a calendar year. Under these provisions, there is no ability to pay dividends at December 31, 2013, without the prior approval of the OCC. | |
Condensed_Financial_Informatio
Condensed Financial Information - Parent Company Only | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ' | ||||||||||
24. Condensed Financial Information – Parent Company Only | |||||||||||
The condensed balance sheets at December 31, 2013 and 2012, and the condensed statements of operations and cash flows for the years ended December 31, 2013, 2012 and 2011, of FNBH Bancorp, Inc. follow: | |||||||||||
Condensed Balance Sheets | December 31 | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Assets: | |||||||||||
Cash | $ | 1,036 | $ | - | |||||||
Investment in subsidiaries: | |||||||||||
First National Bank in Howell | 24,498 | 7,742 | |||||||||
H.B. Realty Co. | 1 | 1 | |||||||||
Other assets | 30 | 1 | |||||||||
Total assets | $ | 25,565 | $ | 7,744 | |||||||
Liabilities and Shareholders’ Equity: | |||||||||||
Other borrowings | $ | 16 | $ | 148 | |||||||
Other liabilities | 443 | 227 | |||||||||
Shareholders’ equity | 25,106 | 7,369 | |||||||||
Total liabilities and shareholders’ equity | $ | 25,565 | $ | 7,744 | |||||||
Condensed Statements of Operations | Year ended December 31 | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Operating income: | |||||||||||
Dividends from subsidiaries | $ | - | $ | - | $ | - | |||||
Miscellaneous income | 4 | - | - | ||||||||
Total operating income | 4 | - | - | ||||||||
Operating expenses: | |||||||||||
Interest expense-other borrowings | - | - | - | ||||||||
Administrative and other expenses | 55 | 168 | 208 | ||||||||
Total operating expenses | 55 | 168 | 208 | ||||||||
Loss before equity in undistributed net loss of subsidiaries | -51 | -168 | -208 | ||||||||
Equity in undistributed net income (loss) of subsidiaries and dividends declared from subsidiaries | 3,025 | 497 | -3,365 | ||||||||
Net income (loss) | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Comprehensive income (loss) | $ | 1,217 | $ | 755 | $ | -3,540 | |||||
Condensed Statements of Cash Flows | Year ended December 31 | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Adjustments to reconcile net loss to net cash used in operating activies: | |||||||||||
Earned portion of long term incentive plan | - | 4 | 16 | ||||||||
Increase in other assets | -29 | -1 | - | ||||||||
Increase in other liabilities | 216 | 38 | 135 | ||||||||
Equity in undistributed net loss of subsidiaries and dividends declared from subsidiaries | -3,025 | -497 | 3,365 | ||||||||
Net cash used in operating activities | 136 | -127 | -57 | ||||||||
Cash flows from investing activities | -15,488 | 35 | - | ||||||||
Cash flows from financing activities: | |||||||||||
Preferred stock issued | 16,520 | - | - | ||||||||
Common stock issued | - | - | - | ||||||||
Proceeds from issuance of short-term debt | -132 | 88 | 60 | ||||||||
Net cash provided by financing activities | 16,388 | 88 | 60 | ||||||||
Net increase (decrease) in cash | 1,036 | -4 | 3 | ||||||||
Cash at beginning of year | - | 4 | 1 | ||||||||
Cash at end of year | $ | 1,036 | $ | - | $ | 4 | |||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data - Unaudited | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||
25. Quarterly Financial Data - Unaudited | ||||||||||||||
The following table presents summarized quarterly data for each of the two years ended December 31: | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
(in thousands) | ||||||||||||||
Quarters ended in 2013 | ||||||||||||||
Selected operations data: | ||||||||||||||
Interest and dividend income | $ | 2,746 | $ | 2,574 | $ | 2,621 | $ | 2,514 | ||||||
Net interest income | 2,511 | 2,343 | 2,389 | 2,287 | ||||||||||
Provision for loan losses | -2,250 | - | - | - | ||||||||||
Income before federal income taxes | 2,448 | 361 | 237 | 32 | ||||||||||
Net income | 2,490 | 215 | 237 | 32 | ||||||||||
Basic and diluted net income per share (1) | $ | 5.44 | $ | 0.47 | $ | 0.52 | $ | 0.01 | ||||||
Cash dividends per share | $ | - | $ | - | $ | - | $ | - | ||||||
Quarters ended in 2012 | ||||||||||||||
Selected operations data: | ||||||||||||||
Interest and dividend income | $ | 2,913 | $ | 2,804 | $ | 2,719 | $ | 2,628 | ||||||
Net interest income | 2,605 | 2,528 | 2,456 | 2,383 | ||||||||||
Provision for loan losses | 450 | 450 | 300 | 125 | ||||||||||
Income (loss) before federal income taxes | 46 | -89 | 99 | 169 | ||||||||||
Net income (loss) | 46 | -89 | 118 | 254 | ||||||||||
Basic and diluted net income (loss) per share | $ | 0.1 | $ | -0.19 | $ | 0.26 | $ | 0.55 | ||||||
Cash dividends per share | $ | - | $ | - | $ | - | $ | - | ||||||
-1 | Per share data for the quarterly period ended December 31, 2013 includes 17,510 shares of Series B Preferred Shares issued on December 11, 2013 converted to common shares at a rate reflecting a price per common share of $0.70. | |||||||||||||
New_Accounting_Standards
New Accounting Standards | 12 Months Ended | ||
Dec. 31, 2013 | |||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | ||
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' | ||
26. New Accounting Standards | |||
The FASB has issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This ASU represents the converged guidance of the FASB and the IASB (the Boards) on fair value measurement. The collective efforts of the Boards and their staffs, reflected in ASU 2011-04, have resulted in common requirements for measuring fair value and for disclosing information about fair value measurements, including a consistent meaning of the term “fair value.” The Boards have concluded the common requirements will result in greater comparability of fair value measurements presented and disclosed in financial statement prepared in accordance with U.S. GAAP and IFRSs. The amendments to the Codification in this ASU are to be applied prospectively. For public entities, the amendments are effective during interim and annual periods beginning after December 15, 2011. Early adoption by public entities was not permitted. Disclosure of the fair value levels of our financial assets and liabilities was added to Notes 3 and 23 upon adoption of this standard in the first quarter of 2012. | |||
The FASB has issued ASU 2011-05, Comprehensive Income (Topic 220); Presentation of Comprehensive Income. This ASU amends accounting standards to allow an entity the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in shareholders’ equity. The amendments in the ASU do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. ASU 2011-05 should be applied retrospectively effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. Presentation of comprehensive income in a separate statement was added to our financial statements upon adoption of this standard in the first quarter of 2012. | |||
The FASB has issued ASU 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU is intended to improve the reporting of reclassifications out of accumulated other comprehensive income. The ASU requires an entity to report, either on the face of the statement where net income is presented or in the notes to the financial statements, the effect of significant reclassification out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under U.S. GAAP to be reclassified in their entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail about those amounts. The amendments in the ASU apply to all entities that issue financial statements that are presented in conformity with U.S. GAAP and that report items of other comprehensive income. For public entities, the amendments in the ASU are effective prospectively for reporting periods beginning after December 15, 2012. Based on the nature and amount of the Corporation’s reported comprehensive income in 2013, the impact of adoption of the ASU by the Corporation was not material. | |||
Recent Legislative Developments | |||
In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law. Uncertainty remains as to the ultimate impact of this law, which could have a material adverse impact either on the financial services industry as a whole or on the Corporation’s and Bank’s business, results of operations and financial condition. This federal law contains a number of provisions that could affect the Corporation and the Bank. For example, the law: | |||
· | Makes national banks (such as the Bank) and their subsidiaries subject to a number of state laws that were previously preempted by federal laws; | ||
· | Imposes new restrictions on how mortgage brokers and loan originators may be compensated; | ||
· | Establishes a new federal consumer protection agency that will have broad authority to develop and implement rules regarding most consumer financial products; | ||
· | Creates new rules affecting corporate governance and executive compensation at all publicly traded companies (such as the Corporation); | ||
· | Broadens the base for FDIC insurance assessments and makes other changes to federal deposit insurance, including permanently increasing FDIC deposit insurance coverage to $250,000; and | ||
· | Allows depository institutions to pay interest on business checking accounts | ||
Many of these provisions are not yet effective and are subject to implementation by various regulatory agencies. As a result, the actual impact this federal law will have on the Bank's business is not yet known. However, this law and any other changes to laws applicable to the financial industry may impact the profitability of the Bank's business activities or change certain of its business practices and may expose the Corporation and the Bank to additional costs, including increased compliance costs, and require the investment of significant management attention and resources. As a result, this law may negatively affect the business and future financial performance of the Corporation and the Bank. | |||
On April 5, 2012, the Jumpstart Our Business Startups Act (JOBS Act) was signed into law. The JOBS Act is intended to stimulate economic growth by helping smaller and emerging growth companies access the U.S. capital markets. It amends various provisions of, and adds new sections to, the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as provisions of the Sarbanes-Oxley Act of 2002. The SEC has been directed to issue rules implementing certain JOBS Act amendments. For bank holding companies, the JOBS Act increases the statutory threshold for deregistration under the Securities Exchange Act of 1934 from 300 shareholders to 1,200 shareholders of record. | |||
In December 2010, the Basel Committee on Banking Supervision, an international forum for cooperation on banking supervisory matters, announced the “Basel III” capital rules, which set new capital requirements for banking organizations. In July 2013, the Federal Reserve and the OCC each approved final rules that establish an integrated regulatory capital framework implementing the Basel III regulatory capital reforms in the U.S. These new rules impose higher capital requirements and more restrictive leverage and liquidity ratios than those currently in place. The new capital requirements will be phased in over time. The U.S. implementation of these standards could have an adverse impact on our financial position and future earnings due to, among other things, the increased minimum Tier 1 capital ratio requirements that will be implemented. However, the ultimate impact of these new rules on the Corporation and the Bank is still being reviewed. | |||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||
(a) | Cash and Cash Equivalents | ||
Cash and cash equivalents include cash on hand, demand deposits with other financial institutions and short-term securities (securities with maturities equal to or less than 90 days and federal funds sold). Cash flows are reported net for customer loan and deposit transactions, interest-bearing time deposits with other financial institutions and short-term borrowings with maturities of 90 days or less. | |||
Brokered Certificates Of Deposit [Policy Text Block] | ' | ||
(b) | Brokered Certificates of Deposit | ||
Brokered certificates of deposit are purchased periodically from other financial institutions in denominations that are fully insured by the FDIC. These investments are carried at cost, are not marketable, and are subject to penalty for early withdrawal. | |||
Investment, Policy [Policy Text Block] | ' | ||
(c) | Investment Securities | ||
The Bank classifies debt and equity investments as follows: | |||
Investment securities the Bank may not hold until maturity are accounted for as securities available for sale and are stated at fair value, with unrealized gains and losses, net of income taxes, reported as a separate component of other comprehensive income until realized. Fair value measurement for investment securities 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 present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. | |||
Investment securities are reviewed quarterly for possible other-than-temporary impairment (OTTI). Management’s evaluation considers various qualitative and quantitative factors regarding each investment category, including if investment securities were U.S. Government issued, the credit rating on the securities, credit outlook, payment status and financial condition, the length of time a security has been in a loss position, the size of the loss position and other meaningful information. In addition, with respect to the Corporation’s non-government agency CMO security, management regularly completes a cash flow analysis with the assistance of a third party specialist. The analysis considers assumptions regarding voluntary prepayment speed, default rate, and loss severity using the CMO’s original yield as the discount rate. | |||
For debt securities, the Corporation distinguishes between the credit and noncredit components of an OTTI event. The credit component of an OTTI charge is the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security. If the Corporation does not intend to sell the security and it is more likely than not that the Corporation will not have to sell the security before the anticipated recovery of the remaining amortized cost basis, the credit component of the OTTI charge is recognized in earnings and the remaining portion in other comprehensive income. If either of the above criteria is met, the entire difference between the amortized cost and fair value is recognized in earnings. | |||
Gains or losses on the sale of securities are computed based on the adjusted cost of the specific security. | |||
Loan Commitments, Policy [Policy Text Block] | ' | ||
(d) | Loans | ||
Loans are classified within loans held for investment when management has the intent and ability to hold the loan for the foreseeable future, or until maturity or payoff. The foreseeable future is a management judgment which is determined based upon the type of loan, business strategies, current market conditions, balance sheet management and liquidity needs. Management’s view of the foreseeable future may change based on changes in these conditions. When a decision is made to sell or securitize a loan that was not originated or initially acquired with the intent to sell or securitize, the loan is reclassified from loans held for investment into held for sale. Loans are classified as held for sale when management has the intent and ability to sell or securitize. Due to changing market conditions or other strategic initiatives, management’s intent with respect to the disposition of the loan may change, and accordingly, loans previously classified as held for sale may be reclassified into loans held for investment. Loans transferred between loans held for sale and loans held for investment classifications are recorded at the lower of cost or market at the date of transfer. | |||
Loans held for investment are carried at the principal amount outstanding net of unearned income, unamortized premiums or discounts, deferred loan origination fees and costs, the allowance for loan losses, and fair value adjustments, if any. | |||
Interest on loans is accrued daily based on the outstanding principal balance. In general, for each loan class, the accrual of interest income is discontinued when a loan becomes 90 days past due and the borrower’s capacity to repay the loan and collateral values appear insufficient. However, loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due if, in management’s opinion, the borrower is unable to meet payment obligations as they become due or as required by regulatory provisions. All interest accrued but not received for all loans placed on nonaccrual is reversed from interest income. Delinquency status for all commercial and installment loans is based on the actual number of days past due as required by the contractual terms of the loan agreement. | |||
Loan origination fees and certain direct loan origination costs are deferred and recognized as an adjustment of yield generally over the contractual life of the related loan. Net unamortized deferred loan fees amounted to $169,000 and $204,000 at December 31, 2013 and 2012, respectively. | |||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||
(e) | Allowance for Loan Losses and Credit Commitments | ||
Some loans will not be repaid in full. Therefore, an allowance for loan losses is established based on management’s periodic evaluation of the loan portfolio and reflects an amount that, in management’s opinion, is adequate to absorb probable losses in the existing portfolio. In evaluating the portfolio, management takes into consideration numerous factors, including current economic conditions, prior loan loss experience, nonperforming loan levels, the composition of the loan portfolio, and management’s evaluation of the collectability of specific loans, which includes analysis of the value of the underlying collateral. This overall evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, although management evaluates the adequacy of the allowance for loan losses based on information known to management at a given time, various regulatory agencies, based on the timing of their normal examination process, may require future additions to the allowance for loan losses. | |||
The methodology for measuring the appropriate level of allowance and related provision expense for each portfolio segment relies on several key elements, which include specific allowances for loans considered impaired and general allowances for non-impaired loans, based on our internal loan grading system. General allocations, based primarily on historical trends, are provided for homogeneous groups or classes of loans with similar risk characteristics. | |||
A rolling 12 quarter charge off history, determined by class, by risk grade, and weighted to give increased emphasis on recent quarters, is used as the basis for the computation within each portfolio segment. In addition, management considers other qualitative and environmental factors to determine whether adjustments to historical loss experience are needed to better reflect the collectability of the loan portfolio at the analysis date, especially in instances where current facts and circumstances have changed significantly enough to cause estimated credit losses to differ from historical loss experience. In determining qualitative and environmental adjustments, management considers both internal and external factors specific to each portfolio segment including, but not limited to, changes in lending policies and procedures, underwriting standards in effect when existing loans were originated, current economic conditions, and values for underlying collateral for collateral dependent loans, as examples. | |||
Within each commercial portfolio segment, a general allowance allocation is assigned to non-impaired loans based on the internal risk grade and class of such loans, as primarily determined based on underlying collateral; and if real estate secured, the type of real estate. Each risk grade within a portfolio segment is assigned a loss allocation factor, adjusted for qualitative and environmental factors, as deemed appropriate. The higher a risk grade, the greater the assigned loss allocation percentage. | |||
Residential real estate loans, home equity and home equity lines of credit, and consumer loans receive allowance allocations based on loan class, primarily determined based on historical loss experience rather than by risk grade. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. | |||
The Bank also maintains a reserve for losses on unfunded credit commitments and letters of credit to provide for the risk of loss inherent in these arrangements. The reserve is computed using the same methodology as that used to determine the allowance for loan losses. This reserve is reported as a liability on the balance sheet within accrued interest, taxes, and other liabilities, while the corresponding provision for these losses is recorded as a component of the provision for loan losses. | |||
Non Performing Assets [Policy Text Block] | ' | ||
(f) | Nonperforming Assets | ||
Nonperforming assets are comprised of loans for which the accrual of interest has been discontinued, loans 90 days past due and still accruing, and other real estate owned, which has been acquired primarily through foreclosure and is awaiting disposition. Troubled debt restructured loans that are on accrual status and not past due 90 days or more are excluded from nonperforming loan totals. | |||
Loans are generally placed on a nonaccrual status when principal or interest is past due 90 days or more and when, in the opinion of management, full collection of principal and interest is unlikely. At the time a loan is placed on nonaccrual status, interest previously accrued but not yet collected is charged against current interest income. Income on such loans is then recognized only to the extent that cash is received and where future collection of principal is probable. Payments on such loans are generally applied to the principal balance until qualifying to be returned to accrual status. Loans are considered for return to accrual status on an individual basis when interest and principal payments are current and future payments are reasonably assured. | |||
TDRs represent loan modifications, including renewals, where concessions have been extended by the Bank due to financial difficulties experienced by the borrower. TDR classification generally continues (i) until the borrower demonstrates sustained payment performance under the modified terms for a minimum of six consecutive payment cycles after the restructuring date and (ii) throughout the calendar year in which the restructuring took place. In addition, if the restructured loan is renewed at a market rate of interest and is structured consistent with normal lending practices, TDR classification may be removed. TDR loans may considered for return to accrual status upon satisfaction of the timely, sustained performance requirements identified above and management’s determination that future payments under the modified terms are reasonably assured. | |||
The Bank considers a loan to be impaired when it is probable that it will be unable to collect all or part of amounts due according to the contractual terms of the loan agreement or the loan has been restructured and is classified as a troubled debt restructuring. Using an internal loan grading system, commercial purpose loans graded 7 and higher are individually evaluated for impairment if reported as nonaccrual and are greater than $100,000 or part of an aggregate relationship exceeding $100,000. Noncommercial purpose loans within the residential consumer real estate and consumer and other loan portfolios are subjected to impairment assessment upon certain triggering events such as delinquency, bankruptcy and restructuring, etc. Impairment is measured by comparing the Bank’s recorded investment in the loan to the present value of expected future cash flows at the loan’s effective interest rate, or, as a practical expedient, at the loan’s observable market price, or the fair value of the collateral less costs to sell if the loan is collateral dependent. Interest income on impaired loans is accrued based on the principal amounts outstanding. The accrual of interest is generally discontinued when an impaired loan becomes 90 days past due. | |||
All cash payments received on impaired nonaccrual loans are generally applied to the principal balance until qualifying to be returned to accrual status. Cash payments received on accruing impaired loans, including accruing TDRs are applied to principal and interest pursuant to the terms of the related loan agreement. | |||
The Bank charges off all or part of loans when amounts are deemed to be uncollectible, although collection efforts may continue and future recoveries may occur. In general, when available information confirms that loans or portions thereof, other than collateral dependent loans, are uncollectible, such amounts are promptly charged-off against the allowance for loan losses. When an impaired loan is collateral dependent, any portion of the loan balance in excess of the fair value of the collateral (or fair value less cost to sell) is promptly charged-off against the allowance for loan losses. | |||
Other Real Estate Owned [Policy Text Block] | ' | ||
(g) | Other Real Estate Owned | ||
Other real estate owned is recorded at the asset’s estimated fair value, net of estimated disposal costs, at the time of foreclosure, establishing a new cost basis. Any write-downs at the time of foreclosure are charged to the allowance for loan losses. Expenses incurred in maintaining assets, adjustments to estimated disposal costs, and subsequent write-downs to reflect declines in value are charged to noninterest expense. | |||
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | ' | ||
(h) | Transfer of Financial Assets | ||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Bank’s transfers of financial assets are limited to commercial loan participations sold, which were insignificant for 2013, 2012, and 2011. | |||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||
(i) | Premises and Equipment | ||
Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization, computed on the straight-line method, are charged to operations over the estimated useful lives of the assets. Estimated useful lives range up to 40 years for buildings, up to 7 years for furniture and equipment and up to 15 years for land improvements. Leasehold improvements are generally depreciated over the shorter of the respective lease term or estimated useful life. | |||
Premises and equipment are evaluated periodically for impairment when events or changes in circumstances indicate the carrying amount may not be recoverable. Impairment exists when the expected undiscounted future cash flows of a long-lived asset are less than its carrying value. In that event, the Bank recognizes a loss for the difference between the carrying amount and the estimated fair value of the asset based on a quoted market price, if applicable, or a discounted cash flow analysis. Impairment losses are recorded in other noninterest expense on the income statement. | |||
Income Tax, Policy [Policy Text Block] | ' | ||
(k) | Federal Income Taxes | ||
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||
A valuation allowance, if needed, reduces deferred tax assets to the expected amount more likely than not that is to be realized. Realization of the Corporation’s deferred tax assets is primarily dependent upon the generation of a sufficient level of future taxable income. At December 31, 2013 and 2012, management did not believe it was more likely than not that all of the deferred tax assets would be realized and, accordingly, recorded a valuation allowance of $11.2 million and $11.5 million at each respective year-end. | |||
In preparation of income tax returns, tax positions are taken based on interpretation of federal and state income tax laws for which the outcome is uncertain. Management reviews and evaluates the status of tax positions. There were no unrecognized tax benefits during 2013, 2012 or 2011. Interest or penalties related to unrecognized tax benefits would be recorded in income tax expense. The Corporation files U.S. federal income tax returns which are subject to final examination for all years after 2009. | |||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||
(l) | Stock-Based Compensation | ||
At December 31, 2013 and 2012, the Corporation had two stock-based compensation plans, which are described more fully in Notes 16 and 17. | |||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||
(m) | Fair Value of Financial Instruments | ||
Fair values of financial instruments are estimated using market information and other assumptions and involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, assumptions and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or market conditions could significantly affect such estimates. | |||
Common Stock Repurchases [Policy Text Block] | ' | ||
(n) | Common Stock Repurchases | ||
The Corporation records common stock repurchases at cost. A portion of the repurchase is charged to common stock based on the average per share dollar amount of stock outstanding, multiplied by the number of shares repurchased, with the remainder charged to retained earnings. Shares repurchased are retired. No common stock repurchases were made by the Corporation during 2013, 2012, or 2011. | |||
Statement Of Cash Flows [Policy Text Block] | ' | ||
(o) | Statement of Cash Flows | ||
For purposes of reporting cash flows, cash equivalents include amounts due from banks, federal funds sold and other short term investments with original maturities of 90 days or less. | |||
Comprehensive Income, Policy [Policy Text Block] | ' | ||
(p) | Comprehensive Income (Loss) | ||
ASC Topic 220 Comprehensive Income, establishes standards for the reporting and display of comprehensive income and its components (such as changes in unrealized gains and losses on securities available for sale) in a financial statement that is displayed with the same prominence as other financial statements. The Corporation reports comprehensive income in a separate financial statement titled comprehensive income (loss). Comprehensive income includes net income and any changes in equity from nonowner sources that are not recorded in the income statement. | |||
Earnings Per Share, Policy [Policy Text Block] | ' | ||
(q) | Earnings Per Share | ||
Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings per share is the same as basic earnings per share because any additional potential common shares issuable are included in the basic earnings per share calculation. The Corporation’s restricted stock awards, which provide non-forfeitable rights to dividends or dividend equivalents, are considered a participating security and are included in the number of shares outstanding for both basic and diluted earnings per share calculations. | |||
As explained more fully in Notes 14 and 15, for purposes of computing 2013 basic and diluted earnings per share, the Corporation’s 17,510 shares of Mandatorily Convertible Non-Cumulative Junior Participating Preferred Stock, Series B (the "Series B Preferred Shares"), issued on December 11, 2013, are considered a common stock equivalent and are converted to common shares at a rate reflecting the conversion price per share of common stock of $0.70. | |||
Reclassification, Policy [Policy Text Block] | ' | ||
(r) | Reclassifications | ||
Certain reclassifications in the prior years’ financial statements have been made to conform to the current year presentation. | |||
Segment Reporting, Policy [Policy Text Block] | ' | ||
(s) | Operating Segment | ||
While the Corporation monitors revenue streams of the various products and services offered, the Corporation manages its business on the basis of one operating segment, banking, in accordance with the qualitative and quantitative criteria established by ASC Topic 280, Segment Reporting. | |||
Securities_Tables
Securities (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investment Securities [Abstract] | ' | ||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||
Securities available for sale consist of the following: | |||||||||||||||||
Unrealized | |||||||||||||||||
Amortized Cost | Gains | Losses | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Mortgage-backed/CMO | $ | 67,392 | $ | 84 | $ | -2,307 | $ | 65,169 | |||||||||
Obligations of state and political subdivisions | 1,794 | 7 | -7 | 1,794 | |||||||||||||
Preferred stock(1) | 49 | 668 | - | 717 | |||||||||||||
Total available for sale | $ | 69,235 | $ | 759 | $ | -2,314 | $ | 67,680 | |||||||||
31-Dec-12 | |||||||||||||||||
Mortgage-backed/CMO | $ | 67,697 | $ | 349 | $ | -184 | $ | 67,862 | |||||||||
U.S. agency | 3,000 | 7 | - | 3,007 | |||||||||||||
Obligations of state and political subdivisions | 1,534 | 46 | - | 1,580 | |||||||||||||
Preferred stock(1) | 49 | 88 | - | 137 | |||||||||||||
Total available for sale | $ | 72,280 | $ | 490 | $ | -184 | $ | 72,586 | |||||||||
(1) Represents preferred stocks issued by Freddie Mac and Fannie Mae | |||||||||||||||||
Schedule Of Securities Par value Book Value Carrying Value and Unrealized Losses [Table Text Block] | ' | ||||||||||||||||
A summary of the par value, book value, carrying value (fair value) and unrealized loss for the security is presented below: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Amount | % of Par | Amount | % of Par | ||||||||||||||
(dollars in thousands) | |||||||||||||||||
Par value | $ | 1,632 | 100 | % | $ | 2,387 | 100 | % | |||||||||
Book value | 1,454 | 83.34 | % | 2,097 | 87.82 | % | |||||||||||
Carrying value | 1,454 | 83.34 | % | 2,018 | 84.51 | % | |||||||||||
Unrealized loss | - | 0 | % | 79 | 3.31 | % | |||||||||||
Schedule Of Financing Receivable Key Attributes [Table Text Block] | ' | ||||||||||||||||
Certain key attributes of the underlying loans supporting the security included the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Weighted average remaining credit score (based on original FICO) | 737 | 738 | |||||||||||||||
Primary location of underlying loans: | |||||||||||||||||
California | 70 | % | 72 | % | |||||||||||||
Florida | 3 | % | 4 | % | |||||||||||||
Other | 27 | % | 24 | % | |||||||||||||
Delinquency status of underlying loans: | |||||||||||||||||
Past due 30-59 days | 1.44 | % | 2.7 | % | |||||||||||||
Past due 60-89 days | 3.44 | % | 2.62 | % | |||||||||||||
Past due 90 days or more | 6.01 | % | 8.03 | % | |||||||||||||
In process of foreclosure | 3.78 | % | 3.58 | % | |||||||||||||
Held as other real estate owned | 0 | % | 0.75 | % | |||||||||||||
Key Assumptions Used To Estimate Fair Value Of Security [Table Text Block] | ' | ||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Voluntary repayment rate (CRR) | 14.27 | % | 10.14 | % | |||||||||||||
Default rates: | |||||||||||||||||
Within next 24 months | 6.56 | % | 6.87 | % | |||||||||||||
Decreasing to (by month 37) | 3.55 | % | 3.15 | % | |||||||||||||
Decreasing to (by month 212) | 0 | % | 0 | % | |||||||||||||
Loss severity rates: | |||||||||||||||||
Initial loss upon default (Year 1) | 45.08 | % | 50.7 | % | |||||||||||||
Per annum decrease (Years 2 - 11) | 3.5 | % | 2.5 | % | |||||||||||||
Floor (Year 12) | 23 | % | 23 | % | |||||||||||||
Discount rate (1): | 5.5 | % | 7 | % | |||||||||||||
Remaining credit support provided by other collateral pools of underlying loans within the security: | 0 | % | 0.02 | % | |||||||||||||
(1) Intended to reflect estimated uncertainty and liquidity premiums, after adjustment for estimated credit loss cash flows. | |||||||||||||||||
Schedule Of Available For Sale Securities Amortized Cost Basis Over Fair Value Of Securities [Table Text Block] | ' | ||||||||||||||||
The following is a summary of the gross unrealized losses and fair value of securities by length of time that individual securities have been in a continuous loss position: | |||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||
Unrealized losses | Fair Value | Unrealized losses | Fair Value | Unrealized losses | Fair Value | ||||||||||||
(in thousands) | |||||||||||||||||
31-Dec-13 | |||||||||||||||||
Mortgage-backed/CMO | -2,093 | 52,020 | -214 | 3,537 | -2,307 | 55,557 | |||||||||||
Obligations of state and political subdivisions | -7 | 780 | - | - | -7 | 780 | |||||||||||
Totals | -2,100 | 52,800 | -214 | 3,537 | -2,314 | 56,337 | |||||||||||
31-Dec-12 | |||||||||||||||||
Mortgage-backed/CMO | -105 | 13,448 | -79 | 2,018 | -184 | 15,466 | |||||||||||
Schedule Of Amortized Cost and Approximate Fair Value Of Investment Securities By Contractual Maturity [Table Text Block] | ' | ||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||
Amortized | Approximate | Amortized | Approximate | ||||||||||||||
Cost | Fair Value | Cost | Fair Value | ||||||||||||||
(in thousands) | |||||||||||||||||
Maturing within one year | $ | - | $ | - | $ | - | $ | - | |||||||||
Maturing after one year but within five years | 761 | 761 | 500 | 501 | |||||||||||||
Maturing after five years but within ten years | 505 | 512 | 3,305 | 3,323 | |||||||||||||
Maturing after ten years | 577 | 1,238 | 778 | 900 | |||||||||||||
$ | 1,843 | $ | 2,511 | $ | 4,583 | $ | 4,724 | ||||||||||
Mortgage-backed/CMO securities | 67,392 | 65,169 | 67,697 | 67,862 | |||||||||||||
Totals | $ | 69,235 | $ | 67,680 | $ | 72,280 | $ | 72,586 | |||||||||
Loans_Tables
Loans (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
The recorded investment in portfolio loans consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial | $ | 15,019 | $ | 16,112 | ||||
Commercial real estate: | ||||||||
Construction, land development, and other land | 5,826 | 8,741 | ||||||
Owner occupied | 49,012 | 51,202 | ||||||
Nonowner occupied | 60,322 | 69,415 | ||||||
Consumer real estate: | ||||||||
Commercial purpose | 6,886 | 6,911 | ||||||
Mortgage - Residential | 12,955 | 14,604 | ||||||
Home equity and home equity lines of credit | 8,991 | 8,307 | ||||||
Consumer and Other | 6,273 | 5,103 | ||||||
Subtotal | 165,284 | 180,395 | ||||||
Unearned income | -169 | -204 | ||||||
Total Loans | $ | 165,115 | $ | 180,191 | ||||
Allowance_for_Loan_Losses_and_1
Allowance for Loan Losses and Credit Quality of Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||||||||
Allowance For Loan Losses and Credit Quality Of Loans [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
Activity in the allowance for loan losses by portfolio segment is a follows: | |||||||||||||||||||||||||||||||||||
Commercial | Commercial | Total | |||||||||||||||||||||||||||||||||
Real Estate | Consumer | Consumer | |||||||||||||||||||||||||||||||||
Real Estate | and Other | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
Charge offs | -177 | -836 | -87 | -105 | -1,205 | ||||||||||||||||||||||||||||||
Recoveries | 212 | 224 | 363 | 101 | 900 | ||||||||||||||||||||||||||||||
Provision | -310 | -890 | -1,097 | 47 | -2,250 | ||||||||||||||||||||||||||||||
Ending balance | $ | 633 | $ | 7,180 | $ | 1,215 | $ | 186 | $ | 9,214 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Beginning balance | $ | 636 | $ | 9,113 | $ | 2,680 | $ | 261 | $ | 12,690 | |||||||||||||||||||||||||
Charge offs | -355 | -2,866 | -689 | -123 | -4,033 | ||||||||||||||||||||||||||||||
Recoveries | 276 | 1,274 | 159 | 78 | 1,787 | ||||||||||||||||||||||||||||||
Provision | 351 | 1,161 | -114 | -73 | 1,325 | ||||||||||||||||||||||||||||||
Ending balance | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
Schedule Of Allowance For Loan Losses and Loan Balances By Portfolio Segment Based On Impairment [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following presents the balance in allowance for loan losses and loan balances by portfolio segment based on impairment method: | |||||||||||||||||||||||||||||||||||
Commercial | Consumer | Consumer | Total | ||||||||||||||||||||||||||||||||
Commercial | Real Estate | and Other | |||||||||||||||||||||||||||||||||
Real Estate | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 11 | $ | 2,298 | $ | 135 | $ | - | $ | 2,444 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 622 | 4,882 | 1,080 | 186 | 6,770 | ||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 633 | $ | 7,180 | $ | 1,215 | $ | 186 | $ | 9,214 | |||||||||||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 211 | $ | 17,052 | $ | 1,848 | $ | - | $ | 19,111 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 14,808 | 98,108 | 26,984 | 6,273 | 146,173 | ||||||||||||||||||||||||||||||
Total recorded investment in loans | $ | 15,019 | $ | 115,160 | $ | 28,832 | $ | 6,273 | $ | 165,284 | |||||||||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 49 | $ | 1,245 | $ | 377 | $ | - | $ | 1,671 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 859 | 7,437 | 1,659 | 143 | 10,098 | ||||||||||||||||||||||||||||||
Total allowance for loan losses | $ | 908 | $ | 8,682 | $ | 2,036 | $ | 143 | $ | 11,769 | |||||||||||||||||||||||||
Recorded investment in loans: | |||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 710 | $ | 19,853 | $ | 2,380 | $ | - | $ | 22,943 | |||||||||||||||||||||||||
Collectively evaluated for impairment | 15,402 | 109,505 | 27,442 | 5,103 | 157,452 | ||||||||||||||||||||||||||||||
Total recorded investment in loans | $ | 16,112 | $ | 129,358 | $ | 29,822 | $ | 5,103 | $ | 180,395 | |||||||||||||||||||||||||
Loan and Lease Receivables, Credit Risk Grades [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following presents the recorded investment in loans by risk grade and a summary of nonperforming loans, by class of loan: | |||||||||||||||||||||||||||||||||||
Not | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | Nonperforming | |||||||||||||||||||||||||
Rated | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 114 | $ | 479 | $ | 17 | $ | 2,680 | $ | 5,057 | $ | 5,901 | $ | 607 | $ | 164 | $ | - | $ | 15,019 | $ | 12 | |||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | 1,840 | 1,745 | 165 | 602 | 1,474 | 5,826 | 1,849 | ||||||||||||||||||||||||
Owner occupied | 32 | - | 720 | 3,132 | 20,987 | 16,172 | 2,916 | 5,053 | - | 49,012 | 2,580 | ||||||||||||||||||||||||
Nonowner occupied | - | - | 393 | 1,340 | 19,057 | 28,865 | 4,735 | 5,932 | - | 60,322 | 3,623 | ||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial Purpose | - | - | - | 221 | 1,712 | 3,399 | 760 | 794 | - | 6,886 | 663 | ||||||||||||||||||||||||
Mortgage - Residential | 5,490 | - | - | - | - | 4,349 | - | 3,116 | - | 12,955 | 1,853 | ||||||||||||||||||||||||
Home equity and home equity lines of credit | 4,164 | 3,502 | - | - | - | 770 | - | 555 | - | 8,991 | 363 | ||||||||||||||||||||||||
Consumer and Other | 5,839 | - | - | - | - | 307 | - | 127 | - | 6,273 | 124 | ||||||||||||||||||||||||
Total | $ | 15,639 | $ | 3,981 | $ | 1,130 | $ | 7,373 | $ | 48,653 | $ | 61,508 | $ | 9,183 | $ | 16,343 | $ | 1,474 | $ | 165,284 | $ | 11,067 | |||||||||||||
Not | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Total | Nonperforming | |||||||||||||||||||||||||
Rated | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 391 | $ | 430 | $ | - | $ | 2,356 | $ | 5,881 | $ | 5,360 | $ | 1,000 | $ | 694 | $ | - | $ | 16,112 | $ | 264 | |||||||||||||
Commercial Real Estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | 1,431 | 4,006 | 136 | 3,168 | - | 8,741 | 2,391 | ||||||||||||||||||||||||
Ownner occupied | 42 | - | - | 1,671 | 18,963 | 21,619 | 3,594 | 5,313 | - | 51,202 | 3,040 | ||||||||||||||||||||||||
Nonowner occupied | - | - | 451 | 1,404 | 17,057 | 30,847 | 11,307 | 8,349 | - | 69,415 | 3,632 | ||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial Purpose | - | - | - | 297 | 948 | 3,594 | 758 | 1,314 | - | 6,911 | 1,158 | ||||||||||||||||||||||||
Mortgage - Residential | 11,232 | - | - | - | - | - | - | 3,372 | - | 14,604 | 2,019 | ||||||||||||||||||||||||
Home equity and home equity lines of credit | 7,760 | - | - | - | - | - | - | 547 | - | 8,307 | 411 | ||||||||||||||||||||||||
Consumer and Other | 4,948 | - | - | - | 6 | 5 | - | 144 | - | 5,103 | 125 | ||||||||||||||||||||||||
Total | $ | 24,373 | $ | 430 | $ | 451 | $ | 5,728 | $ | 44,286 | $ | 65,431 | $ | 16,795 | $ | 22,901 | $ | - | $ | 180,395 | $ | 13,040 | |||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
An aging analysis of the recorded investment in past due loans, segregated by class of loans follows: | |||||||||||||||||||||||||||||||||||
90+ Days | |||||||||||||||||||||||||||||||||||
Loans Past Due | Past Due | ||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90+ Days | Total | Current | Total | and Accruing | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | $ | - | $ | - | $ | - | $ | - | $ | 15,019 | $ | 15,019 | $ | - | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | 68 | 68 | 5,758 | 5,826 | - | ||||||||||||||||||||||||||||
Owner occupied | 153 | 155 | 843 | 1,151 | 47,861 | 49,012 | - | ||||||||||||||||||||||||||||
Nonowner occupied | 627 | 312 | 241 | 1,180 | 59,142 | 60,322 | - | ||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 103 | - | 123 | 226 | 6,660 | 6,886 | - | ||||||||||||||||||||||||||||
Mortgage - Residential | 77 | 851 | 104 | 1,032 | 11,923 | 12,955 | - | ||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 75 | 37 | - | 112 | 8,879 | 8,991 | - | ||||||||||||||||||||||||||||
Consumer and Other | 55 | 9 | - | 64 | 6,209 | 6,273 | - | ||||||||||||||||||||||||||||
Total | $ | 1,090 | $ | 1,364 | $ | 1,379 | $ | 3,833 | $ | 161,451 | $ | 165,284 | $ | - | |||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial | $ | 136 | $ | 6 | $ | 51 | $ | 193 | $ | 15,919 | $ | 16,112 | $ | - | |||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 1,609 | - | 30 | 1,639 | 7,102 | 8,741 | - | ||||||||||||||||||||||||||||
Owner occupied | 142 | 32 | 1,837 | 2,011 | 49,191 | 51,202 | - | ||||||||||||||||||||||||||||
Nonowner occupied | - | - | 558 | 558 | 68,857 | 69,415 | - | ||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 133 | - | 558 | 691 | 6,220 | 6,911 | 201 | ||||||||||||||||||||||||||||
Mortgage - Residential | 1,109 | 753 | 21 | 1,883 | 12,721 | 14,604 | - | ||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 302 | 76 | - | 378 | 7,929 | 8,307 | - | ||||||||||||||||||||||||||||
Consumer and Other | 71 | 24 | 32 | 127 | 4,976 | 5,103 | - | ||||||||||||||||||||||||||||
Total | $ | 3,502 | $ | 891 | $ | 3,087 | $ | 7,480 | $ | 172,915 | $ | 180,395 | $ | 201 | |||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following is a summary of the recorded investment in nonaccrual loans, by class of loan: | |||||||||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 12 | $ | 264 | |||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 1,849 | 2,391 | |||||||||||||||||||||||||||||||||
Owner occupied | 2,580 | 3,040 | |||||||||||||||||||||||||||||||||
Nonowner occupied | 3,623 | 3,632 | |||||||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 663 | 957 | |||||||||||||||||||||||||||||||||
Mortgage - Residential | 1,853 | 2,019 | |||||||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 363 | 411 | |||||||||||||||||||||||||||||||||
Consumer and Other | 124 | 125 | |||||||||||||||||||||||||||||||||
Total | $ | 11,067 | $ | 12,839 | |||||||||||||||||||||||||||||||
Schedule Of Impaired Loans and Related Valuation Allowance Allocations By Class Of Loan [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following presents information pertaining to impaired loans and related valuation allowance allocations by class of loan: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Recorded | Unpaid | Valuation | Recorded | Unpaid | Valuation | ||||||||||||||||||||||||||||||
Investment | Principal | Allowance | Investment | Principal | Allowance | ||||||||||||||||||||||||||||||
Balance | Balance | ||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | $ | 198 | $ | 224 | $ | 11 | $ | 463 | $ | 543 | $ | 49 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,368 | 4,664 | 1,649 | 1,211 | 1,396 | 166 | |||||||||||||||||||||||||||||
Owner occupied | 3,467 | 3,799 | 297 | 5,473 | 6,045 | 498 | |||||||||||||||||||||||||||||
Nonowner occupied | 5,107 | 5,470 | 352 | 5,764 | 6,962 | 581 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,185 | 1,316 | 135 | 1,698 | 2,018 | 377 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | 12,325 | 15,473 | 2,444 | 14,609 | 16,964 | 1,671 | |||||||||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||||||||||||
Commercial | 13 | 14 | - | 246 | 724 | - | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 306 | 416 | - | 2,391 | 4,730 | - | |||||||||||||||||||||||||||||
Owner occupied | 2,556 | 3,517 | - | 2,084 | 3,914 | - | |||||||||||||||||||||||||||||
Nonowner occupied | 3,248 | 3,871 | - | 2,930 | 3,616 | - | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 663 | 1,261 | - | 683 | 1,150 | - | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | 6,786 | 9,079 | - | 8,334 | 14,134 | - | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Commercial | 211 | 238 | 11 | 709 | 1,267 | 49 | |||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,674 | 5,080 | 1,649 | 3,602 | 6,126 | 166 | |||||||||||||||||||||||||||||
Owner occupied | 6,023 | 7,316 | 297 | 7,557 | 9,959 | 498 | |||||||||||||||||||||||||||||
Nonowner occupied | 8,355 | 9,341 | 352 | 8,694 | 10,578 | 581 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,848 | 2,577 | 135 | 2,381 | 3,168 | 377 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total Impaired Loans | $ | 19,111 | $ | 24,552 | $ | 2,444 | $ | 22,943 | $ | 31,098 | $ | 1,671 | |||||||||||||||||||||||
Schedule Of Impaired Loans [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following presents information pertaining to the recorded investment in impaired loans as follows: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||||||||||||||
Outstanding | Income | Outstanding | Income | ||||||||||||||||||||||||||||||||
Balance | Recognized | Balance | Recognized | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 230 | $ | 15 | $ | 675 | $ | 21 | |||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 2,925 | 64 | 3,650 | 43 | |||||||||||||||||||||||||||||||
Owner occupied | 7,005 | 318 | 7,568 | 167 | |||||||||||||||||||||||||||||||
Nonowner occupied | 8,415 | 314 | 8,844 | 210 | |||||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,947 | 74 | 2,271 | 23 | |||||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | |||||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | |||||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | |||||||||||||||||||||||||||||||
Total | $ | 20,522 | $ | 785 | $ | 23,008 | $ | 464 | |||||||||||||||||||||||||||
Schedule Of Troubled Debt Restructurings [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following summarizes troubled debt restructurings: | |||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||||||||||||||
Outstanding Recorded Investment | Outstanding Recorded Investment | ||||||||||||||||||||||||||||||||||
Accruing | Nonaccrual | Total | Accruing | Nonaccrual | Total | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | $ | 199 | $ | 13 | $ | 212 | $ | 446 | $ | 264 | $ | 710 | |||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | 826 | 1,662 | 2,488 | 1,211 | 2,271 | 3,482 | |||||||||||||||||||||||||||||
Owner occupied | 3,442 | 2,202 | 5,644 | 4,335 | 2,029 | 6,364 | |||||||||||||||||||||||||||||
Nonowner occupied | 4,732 | 2,281 | 7,013 | 5,063 | 3,447 | 8,510 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 1,185 | 502 | 1,687 | 1,424 | 596 | 2,020 | |||||||||||||||||||||||||||||
Mortgage - Residential | 940 | 823 | 1,763 | 738 | 1,232 | 1,970 | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 58 | 250 | 308 | 62 | 284 | 346 | |||||||||||||||||||||||||||||
Consumer and Other | 6 | 61 | 67 | 9 | 96 | 105 | |||||||||||||||||||||||||||||
Total | $ | 11,388 | $ | 7,794 | $ | 19,182 | $ | 13,288 | $ | 10,219 | $ | 23,507 | |||||||||||||||||||||||
Schedule Of Existing Loans That Were Restructured and Troubled Debt Restructuring [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following presents information regarding existing loans that were restructured, resulting in the loan being classified as a troubled debt restructuring: | |||||||||||||||||||||||||||||||||||
Loans Restructured in 2013 | Loans Restructured in 2012 | ||||||||||||||||||||||||||||||||||
Pre- Modification | Post-Modification | Pre- Modification | Post-Modification | ||||||||||||||||||||||||||||||||
Number | Recorded | Recorded | Number | Recorded | Recorded | ||||||||||||||||||||||||||||||
of Loans | Investment | Investment | of Loans | Investment | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | 1 | $ | 46 | $ | 46 | 3 | $ | 153 | $ | 153 | |||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | 3 | 2,631 | 2,631 | |||||||||||||||||||||||||||||
Owner occupied | 1 | 390 | 390 | 5 | 1,281 | 1,281 | |||||||||||||||||||||||||||||
Nonowner occupied | 1 | 105 | 105 | 6 | 2,413 | 2,413 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 2 | 166 | 166 | 3 | 445 | 445 | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | 7 | 496 | 496 | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | 2 | 137 | 137 | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | 1 | 28 | 28 | |||||||||||||||||||||||||||||
Total | 5 | $ | 707 | $ | 707 | 30 | $ | 7,584 | $ | 7,584 | |||||||||||||||||||||||||
Schedule Of Concessions Granted By The Corporation To Borrowers [Table Text Block] | ' | ||||||||||||||||||||||||||||||||||
The following summarizes the nature of concessions granted by the Corporation to borrowers experiencing financial difficulties which resulted in troubled debt restructurings: | |||||||||||||||||||||||||||||||||||
Non-Market Interest Rate | |||||||||||||||||||||||||||||||||||
Extension of | and Extension of | ||||||||||||||||||||||||||||||||||
Non-Market Interest Rate | Amortization Period | Amortization Period | |||||||||||||||||||||||||||||||||
Pre-Modification | Pre-Modification | Pre-Modification | |||||||||||||||||||||||||||||||||
Number | Recorded | Number | Recorded | Number | Recorded | ||||||||||||||||||||||||||||||
of Loans | Investment | of Loans | Investment | of Loans | Investment | ||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||
Commercial | - | $ | - | 1 | $ | 46 | - | $ | - | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Owner occupied | - | - | - | - | 1 | 390 | |||||||||||||||||||||||||||||
Nonowner occupied | - | - | 1 | 105 | - | - | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | - | - | 2 | 166 | - | - | |||||||||||||||||||||||||||||
Mortgage - Residential | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | - | - | - | - | - | - | |||||||||||||||||||||||||||||
Total | - | $ | - | 4 | $ | 317 | 1 | $ | 390 | ||||||||||||||||||||||||||
31-Dec-12 | |||||||||||||||||||||||||||||||||||
Commercial | - | $ | - | 2 | $ | 85 | 1 | $ | 68 | ||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Construction, land development, and other land | - | - | 1 | 104 | 2 | 2,527 | |||||||||||||||||||||||||||||
Owner occupied | 1 | 143 | 4 | 1,138 | - | - | |||||||||||||||||||||||||||||
Nonowner occupied | 1 | 262 | 4 | 1,683 | 1 | 468 | |||||||||||||||||||||||||||||
Consumer real estate: | |||||||||||||||||||||||||||||||||||
Commercial purpose | 3 | 445 | - | - | - | - | |||||||||||||||||||||||||||||
Mortgage - Residential | 6 | 472 | 1 | 24 | - | - | |||||||||||||||||||||||||||||
Home equity and home equity lines of credit | 2 | 137 | - | - | - | - | |||||||||||||||||||||||||||||
Consumer and Other | 1 | 28 | - | - | - | - | |||||||||||||||||||||||||||||
Total | 14 | $ | 1,487 | 12 | $ | 3,034 | 4 | $ | 3,063 | ||||||||||||||||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property Plant And Equipment Disclosure [Table Text Block] | ' | |||||||
A summary of premises and equipment, and related accumulated depreciation and amortization follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Land and land improvements | $ | 2,875 | $ | 2,858 | ||||
Premises | 9,938 | 9,943 | ||||||
Furniture and equipment | 3,660 | 3,802 | ||||||
16,473 | 16,603 | |||||||
Less accumulated depreciation and amortization | -9,078 | -9,392 | ||||||
Premises and equipment, net | $ | 7,395 | $ | 7,211 | ||||
Time_Certificates_of_Deposit_T
Time Certificates of Deposit (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Banking and Thrift [Abstract] | ' | |||||||
Schedule Of Maturities Of Time Deposit [Table Text Block] | ' | |||||||
The scheduled maturities of time deposits, including brokered certificates of deposit, with a remaining term of more than one year at December 31, 2013 and 2012 were: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
2014 | $ | - | $ | 25,037 | ||||
2015 | 12,607 | 1,043 | ||||||
2016 | 2,645 | 2,257 | ||||||
2017 | 3,101 | 3,131 | ||||||
2018 and thereafter | 2,737 | 26 | ||||||
Total | $ | 21,090 | $ | 31,494 | ||||
Contractual Maturities Of Time Deposits [Table Text Block] | ' | |||||||
Included in time deposits are certificates of deposit in amounts of $100,000 or more. These certificates and their remaining maturities at December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Three months or less | $ | 5,079 | $ | 6,944 | ||||
Three through six months | 5,011 | 3,146 | ||||||
Six through twelve months | 10,572 | 9,729 | ||||||
Over twelve months | 8,391 | 10,888 | ||||||
Total | $ | 29,053 | $ | 30,707 | ||||
Federal_Income_Taxes_Tables
Federal Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||||
Federal income tax expense (benefit) consists of: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Current | $ | - | $ | - | $ | - | |||||
Deferred | 104 | -104 | - | ||||||||
Total federal income tax expense (benefit) | $ | 104 | $ | -104 | $ | - | |||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||||
Federal income tax expense (benefit) differed from the amounts computed by applying the U.S. Federal income tax rate of 34% to pretax income as a result of the following: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Computed “expected” tax expense (benefit) | $ | 1,047 | $ | 76 | $ | -1,215 | |||||
Increase (reduction) in tax resulting from: | |||||||||||
Tax-exempt interest and dividends, net | -28 | -35 | -104 | ||||||||
Change in valuation allowance | -893 | -157 | 1,320 | ||||||||
Other, net | -22 | 12 | -1 | ||||||||
Total federal income tax expense (benefit) | $ | 104 | $ | -104 | $ | - | |||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Deferred tax assets: | |||||||||||
Allowance for loan losses | $ | 1,465 | $ | 1,983 | |||||||
Net operating loss carryforward | 7,393 | 8,105 | |||||||||
Other-than-temporary impairment on securities available for sale | 769 | 769 | |||||||||
Premises and equipment | 309 | 332 | |||||||||
Deferred directors' fees | 116 | 157 | |||||||||
Reserve for other real estate owned | 53 | 190 | |||||||||
Supplemental retirement plan | 42 | 79 | |||||||||
Unrealized loss on securites available for sale | 529 | - | |||||||||
Other | 66 | 114 | |||||||||
Total gross deferred tax assets | 10,742 | 11,729 | |||||||||
Deferred tax liabilities: | |||||||||||
Deferred loan fees | -54 | -44 | |||||||||
Unrealized gain on securites available for sale | - | -104 | |||||||||
Other | -65 | -65 | |||||||||
Total gross deferred tax liabilities | -119 | -213 | |||||||||
Net deferred tax asset before valuation allowance | 10,623 | 11,516 | |||||||||
Valuation allowance | -10,623 | -11,516 | |||||||||
Net deferred tax asset | $ | - | $ | - | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Related Party Transactions [Abstract] | ' | |||||||
Schedule of Related Party Transactions [Table Text Block] | ' | |||||||
Loans to related parties are summarized below for the periods indicated: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at beginning of year | $ | 211 | $ | 498 | ||||
New loans and related parties | 30 | - | ||||||
Loan repayments | -61 | -271 | ||||||
Loans no longer related-party | - | -16 | ||||||
Balance at end of year | $ | 180 | $ | 211 | ||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Leases [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum lease payments under the noncancelable lease as of December 31, 2013, are as follows: | |||||
Year ending December 31 (in thousands): | |||||
2014 | $ | 78 | |||
2015 | 58 | ||||
2016 | 48 | ||||
2017 | 36 | ||||
Total lease payments | $ | 220 | |||
Net_Income_per_Common_Share_Ta
Net Income per Common Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||
The following presents basic and diluted net income per share: | |||||||||||
2013 | 2012 | 2011 | |||||||||
(dollars in thousands, except per share amounts) | |||||||||||
Weighted average basic and diluted common shares outstanding | 457,435 | 457,416 | 457,318 | ||||||||
Weighted average common stock equivalent preferred shares outstanding, as converted | 1,439,178 | - | - | ||||||||
Total weighted average basic and diluted shares outstanding | 1,896,613 | 457,416 | 457,318 | ||||||||
Net income (loss) available to shareholders | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Basic and diluted net income (loss) per share | $ | 1.57 | $ | 0.72 | $ | -7.81 | |||||
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | |||||||
Financial instruments whose contract amounts represent credit risk are as follows: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Commercial | $ | 9,144 | $ | 6,146 | ||||
Commercial real estate | 1,247 | 1,072 | ||||||
Consumer real estate | 4,410 | 4,164 | ||||||
Consumer and Other | 2,648 | 2,841 | ||||||
Total credit commitments | $ | 17,449 | $ | 14,223 | ||||
Capital_Tables
Capital (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Capital [Abstract] | ' | |||||||||||||||||||
Schedule Of Risk Based Capital Ratio Under Banking Regulations [Table Text Block] | ' | |||||||||||||||||||
The Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) required that the federal regulatory agencies adopt regulations defining five capital tiers for banks: | ||||||||||||||||||||
Total | Tier 1 | |||||||||||||||||||
Risk-Based | Risk-Based | |||||||||||||||||||
Capital Ratio | Capital Ratio | Leverage Ratio | ||||||||||||||||||
Well capitalized | 10% or above | 6% or above | 5% or above | |||||||||||||||||
Adequately capitalized | 8% or above | 4% or above | 4% or above | |||||||||||||||||
Undercapitalized | Less than 8% | Less than 4% | Less than 4% | |||||||||||||||||
Significantly undercapitalized | Less than 6% | Less than 3% | Less than 3% | |||||||||||||||||
Critically undercapitalized | - | - | A ratio of tangible equity to | |||||||||||||||||
total assets of 2% or less | ||||||||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | ' | |||||||||||||||||||
The Corporation’s and the Bank’s actual capital amounts and ratios are presented in the following table: | ||||||||||||||||||||
Minimum for | To be Well Capitalized | |||||||||||||||||||
Capital Adequacy | Under Prompt Corrective | |||||||||||||||||||
Actual | Purposes | Action Provision | ||||||||||||||||||
As of December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
Total Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | $ | 28,593 | 14.57 | % | $ | 18,705 | 8 | % | $ | 19,631 | 10 | % | ||||||||
FNBH Bancorp | 29,204 | 14.86 | % | 15,724 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | 26,052 | 13.27 | % | 7,852 | 4 | % | 11,779 | 6 | % | |||||||||||
FNBH Bancorp | 26,660 | 13.56 | % | 7,862 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to average assets) | ||||||||||||||||||||
Bank | 26,052 | 8.67 | % | 12,021 | 4 | % | 15,026 | 5 | % | |||||||||||
FNBH Bancorp | 26,660 | 8.82 | % | 12,097 | 4 | % | N/A | N/A | ||||||||||||
As of December 31, 2012 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
Total Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | $ | 10,195 | 5.02 | % | $ | 16,240 | 8 | % | $ | 20,300 | 10 | % | ||||||||
FNBH Bancorp | 9,822 | 4.84 | % | 16,240 | 8 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to risk weighted assets) | ||||||||||||||||||||
Bank | 7,540 | 3.71 | % | 8,120 | 4 | % | 12,180 | 6 | % | |||||||||||
FNBH Bancorp | 7,167 | 3.53 | % | 8,120 | 4 | % | N/A | N/A | ||||||||||||
Tier 1 Capital (to average assets) | ||||||||||||||||||||
Bank | 7,540 | 2.58 | % | 11,686 | 4 | % | 14,608 | 5 | % | |||||||||||
FNBH Bancorp | 7,167 | 2.45 | % | 11,686 | 4 | % | N/A | N/A | ||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | ' | |||||||||||||
Fair value of assets measured on a recurring basis: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
31-Dec-13 | ||||||||||||||
Obligations of state and political subdivisions | $ | 1,794 | $ | - | $ | 1,794 | $ | - | ||||||
Mortgage-backed/CMO | 65,169 | - | 63,715 | 1,454 | ||||||||||
Preferred stock | 717 | - | 717 | |||||||||||
Total investment securities available for sale | $ | 67,680 | $ | - | $ | 66,226 | $ | 1,454 | ||||||
31-Dec-12 | ||||||||||||||
Obligations of state and political subdivisions | $ | 1,580 | $ | - | $ | 1,580 | $ | - | ||||||
U.S. agency | 3,007 | - | 3,007 | - | ||||||||||
Mortgage-backed/CMO | 67,862 | - | 65,844 | 2,018 | ||||||||||
Preferred stock | 137 | - | 137 | |||||||||||
Total investment securities available for sale | $ | 72,586 | $ | - | $ | 70,568 | $ | 2,018 | ||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | ' | |||||||||||||
The reconciliation of the beginning and ending balances of the asset classified by the Corporation within Level 3 of the valuation hierarchy is as follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Fair Value Measurement | Fair Value Measurement | |||||||||||||
Using Significant | Using Significant | |||||||||||||
Unobservable Inputs | Unobservable Inputs | |||||||||||||
(Level 3) | (Level 3) | |||||||||||||
Fair value of non-agency mortgage-backed security, beginning of year(1) | $ | 2,018 | $ | 2,064 | ||||||||||
Total gains (losses) realized/unrealized: | ||||||||||||||
Included in earnings(2) | - | - | ||||||||||||
Included in other comprehensive income (2) | 79 | 358 | ||||||||||||
Purchases, issuances, and other settlements | -643 | -404 | ||||||||||||
Transfers into Level 3 | - | - | ||||||||||||
Fair value of non-agency mortgage-backed security, end of year | $ | 1,454 | $ | 2,018 | ||||||||||
Total amount of losses for the year included in earnings attributable to the change in unrealized in unrealized losses relating to assets still held at end of year | $ | - | $ | - | ||||||||||
-1 | Non-agency CMO classified as available for sale is valued using internal valuation models and pricing information from third parties. | |||||||||||||
-2 | Realized gains (losses), including unrealized losses deemed other-than-temporary, are reported in noninterest income. Unrealized gains (losses) are reported in accumulated other comprehensive income (loss). | |||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | ' | |||||||||||||
Fair value of assets on a non-recurring basis: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | ||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||
(in thousands) | ||||||||||||||
31-Dec-13 | ||||||||||||||
Impaired loans (1) | $ | 16,667 | $ | - | $ | - | $ | 16,667 | ||||||
Other real estate owned | $ | 480 | $ | - | $ | - | $ | 480 | ||||||
31-Dec-12 | ||||||||||||||
Impaired loans (1) | $ | 21,272 | $ | - | $ | - | $ | 21,272 | ||||||
Other real estate owned | $ | 3,427 | $ | - | $ | - | $ | 3,427 | ||||||
-1 | Represents carrying value and related write-downs and specific reserves pertaining to collateral dependent loans for which adjustments are based on the appraised value of the collateral or by other unobservable inputs. | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
The fair value of commitments to extend credit, including letters of credit, is estimated to approximate their aggregate book balance and is not considered material and therefore not included in the following table. | |||||||||||||||||
Level in Fair | December 31, 2013 | December 31, 2012 | |||||||||||||||
Value Hierarchy | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(in thousands) | |||||||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | Level 1 | $ | 77,827 | $ | 77,827 | $ | 41,824 | $ | 41,824 | ||||||||
Short term investments | Level 2 | 198 | 198 | 197 | 197 | ||||||||||||
Investment and mortgage-backed securities | Level 2 | 66,226 | 66,226 | 70,568 | 70,568 | ||||||||||||
Non-agency mortgage-backed security | Level 3 | 1,454 | 1,454 | 2,018 | 2,018 | ||||||||||||
FHLBI and FRB stock | Level 2 | 779 | 779 | 779 | 779 | ||||||||||||
Loans, net | Level 3 | 155,901 | 156,793 | 168,422 | 169,365 | ||||||||||||
Accrued interest income | Level 2 | 573 | 573 | 705 | 705 | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | Level 2 | $ | 285,313 | $ | 280,549 | $ | 287,682 | $ | 287,749 | ||||||||
Other borrowings | Level 2 | 16 | 16 | 148 | 148 | ||||||||||||
Accrued interest expense | Level 2 | 83 | 83 | 93 | 93 | ||||||||||||
Condensed_Financial_Informatio1
Condensed Financial Information - Parent Company Only (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | ||||||||||
Condensed Financial Statements [Table Text Block] | ' | ||||||||||
Condensed Balance Sheets | December 31 | ||||||||||
2013 | 2012 | ||||||||||
(in thousands) | |||||||||||
Assets: | |||||||||||
Cash | $ | 1,036 | $ | - | |||||||
Investment in subsidiaries: | |||||||||||
First National Bank in Howell | 24,498 | 7,742 | |||||||||
H.B. Realty Co. | 1 | 1 | |||||||||
Other assets | 30 | 1 | |||||||||
Total assets | $ | 25,565 | $ | 7,744 | |||||||
Liabilities and Shareholders’ Equity: | |||||||||||
Other borrowings | $ | 16 | $ | 148 | |||||||
Other liabilities | 443 | 227 | |||||||||
Shareholders’ equity | 25,106 | 7,369 | |||||||||
Total liabilities and shareholders’ equity | $ | 25,565 | $ | 7,744 | |||||||
Condensed Income Statement [Table Text Block] | ' | ||||||||||
Condensed Statements of Operations | Year ended December 31 | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Operating income: | |||||||||||
Dividends from subsidiaries | $ | - | $ | - | $ | - | |||||
Miscellaneous income | 4 | - | - | ||||||||
Total operating income | 4 | - | - | ||||||||
Operating expenses: | |||||||||||
Interest expense-other borrowings | - | - | - | ||||||||
Administrative and other expenses | 55 | 168 | 208 | ||||||||
Total operating expenses | 55 | 168 | 208 | ||||||||
Loss before equity in undistributed net loss of subsidiaries | -51 | -168 | -208 | ||||||||
Equity in undistributed net income (loss) of subsidiaries and dividends declared from subsidiaries | 3,025 | 497 | -3,365 | ||||||||
Net income (loss) | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Comprehensive income (loss) | $ | 1,217 | $ | 755 | $ | -3,540 | |||||
Condensed Cash Flow Statement [Table Text Block] | ' | ||||||||||
Condensed Statements of Cash Flows | Year ended December 31 | ||||||||||
2013 | 2012 | 2011 | |||||||||
(in thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | 2,974 | $ | 329 | $ | -3,573 | |||||
Adjustments to reconcile net loss to net cash used in operating activies: | |||||||||||
Earned portion of long term incentive plan | - | 4 | 16 | ||||||||
Increase in other assets | -29 | -1 | - | ||||||||
Increase in other liabilities | 216 | 38 | 135 | ||||||||
Equity in undistributed net loss of subsidiaries and dividends declared from subsidiaries | -3,025 | -497 | 3,365 | ||||||||
Net cash used in operating activities | 136 | -127 | -57 | ||||||||
Cash flows from investing activities | -15,488 | 35 | - | ||||||||
Cash flows from financing activities: | |||||||||||
Preferred stock issued | 16,520 | - | - | ||||||||
Common stock issued | - | - | - | ||||||||
Proceeds from issuance of short-term debt | -132 | 88 | 60 | ||||||||
Net cash provided by financing activities | 16,388 | 88 | 60 | ||||||||
Net increase (decrease) in cash | 1,036 | -4 | 3 | ||||||||
Cash at beginning of year | - | 4 | 1 | ||||||||
Cash at end of year | $ | 1,036 | $ | - | $ | 4 | |||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data - Unaudited (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||
Quarterly Financial Information [Table Text Block] | ' | |||||||||||||
The following table presents summarized quarterly data for each of the two years ended December 31: | ||||||||||||||
March 31 | June 30 | September 30 | December 31 | |||||||||||
(in thousands) | ||||||||||||||
Quarters ended in 2013 | ||||||||||||||
Selected operations data: | ||||||||||||||
Interest and dividend income | $ | 2,746 | $ | 2,574 | $ | 2,621 | $ | 2,514 | ||||||
Net interest income | 2,511 | 2,343 | 2,389 | 2,287 | ||||||||||
Provision for loan losses | -2,250 | - | - | - | ||||||||||
Income before federal income taxes | 2,448 | 361 | 237 | 32 | ||||||||||
Net income | 2,490 | 215 | 237 | 32 | ||||||||||
Basic and diluted net income per share (1) | $ | 5.44 | $ | 0.47 | $ | 0.52 | $ | 0.01 | ||||||
Cash dividends per share | $ | - | $ | - | $ | - | $ | - | ||||||
Quarters ended in 2012 | ||||||||||||||
Selected operations data: | ||||||||||||||
Interest and dividend income | $ | 2,913 | $ | 2,804 | $ | 2,719 | $ | 2,628 | ||||||
Net interest income | 2,605 | 2,528 | 2,456 | 2,383 | ||||||||||
Provision for loan losses | 450 | 450 | 300 | 125 | ||||||||||
Income (loss) before federal income taxes | 46 | -89 | 99 | 169 | ||||||||||
Net income (loss) | 46 | -89 | 118 | 254 | ||||||||||
Basic and diluted net income (loss) per share | $ | 0.1 | $ | -0.19 | $ | 0.26 | $ | 0.55 | ||||||
Cash dividends per share | $ | - | $ | - | $ | - | $ | - | ||||||
-1 | Per share data for the quarterly period ended December 31, 2013 includes 17,510 shares of Series B Preferred Shares issued on December 11, 2013 converted to common shares at a rate reflecting a price per common share of $0.70. | |||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 11, 2013 | |
Accounting Policies [Line Items] | ' | ' | ' | ' |
Unamortized Deferred Loan Fees Net | $169,000 | $204,000 | ' | ' |
Advertising Expense | 97,000 | 36,000 | 26,000 | ' |
Deferred Tax Assets, Valuation Allowance | $10,623,000 | $11,516,000 | ' | ' |
Preferred Stock Conversion Price Per Share | $0.70 | ' | ' | $0.70 |
Preferred Stock, Shares Issued | ' | ' | ' | 17,510 |
Building [Member] | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives (in years) | '40 | ' | ' | ' |
Equipment [Member] | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives (in years) | '7 | ' | ' | ' |
Land Improvements [Member] | ' | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' | ' |
Property, Plant and Equipment, Estimated Useful Lives (in years) | '15 | ' | ' | ' |
Regulatory_Matters_and_Recover1
Regulatory Matters and Recovery Initiatives (Details Textual) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||
Dec. 11, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 11, 2013 | Dec. 11, 2013 | Sep. 24, 2009 | Dec. 11, 2013 | Sep. 24, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | |
Minimum [Member] | Private Placement [Member] | Bank [Member] | Bank [Member] | Bank [Member] | Bank [Member] | Commercial Real Estate And Land Development Loans [Member] | Commercial Real Estate And Land Development Loans [Member] | Commercial Real Estate And Land Development Loans [Member] | Commercial Real Estate And Land Development Loans [Member] | Commercial Real Estate And Land Development Loans [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | Nonperforming Financing Receivable [Member] | |||||||||||||||
OCC Consent Order [Member] | OCC Consent Order [Member] | OCC Consent Order [Member] | ||||||||||||||||||||||||||||
Minimum [Member] | Minimum [Member] | |||||||||||||||||||||||||||||
Regulatory Matters and Going Concern [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non Performing Assets | ' | $11,500,000 | ' | ' | ' | $16,500,000 | ' | ' | ' | $11,500,000 | $16,500,000 | $26,000,000 | $35,200,000 | $47,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans and Leases Receivable, Net of Deferred Income, Total | ' | 165,115,000 | ' | ' | ' | 180,191,000 | ' | ' | ' | 165,115,000 | 180,191,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,900,000 | 31,900,000 | 38,200,000 | 55,000,000 | 91,300,000 | ' | ' | ' | ' | ' |
Allowance For Loan Losses Percentage | ' | 5.58% | ' | ' | ' | 6.53% | ' | ' | ' | 5.58% | 6.53% | 6.08% | 5.92% | 6.81% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83.30% | 90.30% | 55.20% | 45.30% | 42.70% |
Average Cash And Due From Banks | ' | 49,400,000 | ' | ' | ' | 33,300,000 | ' | ' | ' | 49,400,000 | 33,300,000 | 31,700,000 | 31,700,000 | 27,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average Borrowing Availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,500,000 | 42,500,000 | 26,300,000 | 10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan To Deposit Ratio | ' | 57.90% | ' | ' | ' | 62.60% | ' | ' | ' | 57.90% | 62.60% | 73.60% | 80.40% | 86.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Provision for Loan Losses Expensed | ' | 0 | 0 | 0 | -2,250,000 | 125,000 | 300,000 | 450,000 | 450,000 | -2,250,000 | 1,325,000 | 6,200,000 | 6,200,000 | 15,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction Of Problem Asset Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 309,000 | ' | 289,000 | 471,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction Of Problem Asset Costs Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28.40% | 31.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain (Loss) on Sale of Securities, Net, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 336,000 | 329,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital to Risk Weighted Assets | ' | 14.86% | ' | ' | ' | 4.84% | ' | ' | ' | 14.86% | 4.84% | ' | ' | ' | 8.00% | ' | ' | 11.00% | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tier One Leverage Capital to Average Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.50% | 8.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Private Placement | 17,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Proceeds From Transaction Invested In Capital of Bank | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Investment Securities [Line Items] | ' | ' | ||
Amortized Cost | $69,235 | $72,280 | ||
Unrealized Gains | 759 | 490 | ||
Unrealized Losses | -2,314 | -184 | ||
Fair Value | 67,680 | 72,586 | ||
Mortgage-backed/CMO [Member] | ' | ' | ||
Investment Securities [Line Items] | ' | ' | ||
Amortized Cost | 67,392 | 67,697 | ||
Unrealized Gains | 84 | 349 | ||
Unrealized Losses | -2,307 | -184 | ||
Fair Value | 65,169 | 67,862 | ||
U.S. agency [Member] | ' | ' | ||
Investment Securities [Line Items] | ' | ' | ||
Amortized Cost | ' | 3,000 | ||
Unrealized Gains | ' | 7 | ||
Unrealized Losses | ' | 0 | ||
Fair Value | ' | 3,007 | ||
Obligations of state and political subdivisions [Member] | ' | ' | ||
Investment Securities [Line Items] | ' | ' | ||
Amortized Cost | 1,794 | 1,534 | ||
Unrealized Gains | 7 | 46 | ||
Unrealized Losses | -7 | 0 | ||
Fair Value | 1,794 | 1,580 | ||
Preferred stock [Member] | ' | ' | ||
Investment Securities [Line Items] | ' | ' | ||
Amortized Cost | 49 | [1] | 49 | [1] |
Unrealized Gains | 668 | [1] | 88 | [1] |
Unrealized Losses | 0 | [1] | 0 | [1] |
Fair Value | $717 | [1] | $137 | [1] |
[1] | Represents preferred stocks issued by Freddie Mac and Fannie Mae |
Securities_Details_1
Securities (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities [Line Items] | ' | ' |
Carrying value | $3,537 | ' |
Unrealized loss | 214 | ' |
Mortgage-backed/CMO [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Par value | 1,632 | 2,387 |
Book value | 1,454 | 2,097 |
Carrying value | 1,454 | 2,018 |
Unrealized loss | $214 | $79 |
Par value, Percentage | 100.00% | 100.00% |
Book value, Percentage | 83.34% | 87.82% |
Carrying value, Percentage | 83.34% | 84.51% |
Unrealized loss, Percentage | 0.00% | 3.31% |
Securities_Details_2
Securities (Details 2) | Dec. 31, 2013 | Dec. 31, 2012 |
California [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Primary Location Of Underlying Loans Classification Percentage | 70.00% | 72.00% |
Florida [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Primary Location Of Underlying Loans Classification Percentage | 3.00% | 4.00% |
Other [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Primary Location Of Underlying Loans Classification Percentage | 27.00% | 24.00% |
Mortgage-backed/CMO [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Weighted average remaining credit score (based on original FICO) | 737 | 738 |
Past due 30-59 days | 1.44% | 2.70% |
Past due 60-89 days | 3.44% | 2.62% |
Past due 90 days or more | 6.01% | 8.03% |
In process of foreclosure | 3.78% | 3.58% |
Held as other real estate owned | 0.00% | 0.75% |
Securities_Details_3
Securities (Details 3) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Investment Securities [Line Items] | ' | ' | ||
Voluntary repayment rate (CRR) | 14.27% | 10.14% | ||
Default rates: | ' | ' | ||
Within next 24 months | 6.56% | 6.87% | ||
Decreasing to (by month 37) | 3.55% | 3.15% | ||
Decreasing to (by month 215) | 0.00% | 0.00% | ||
Loss severity rates: | ' | ' | ||
Initial loss upon default (Year 1) | 45.08% | 50.70% | ||
Per annum decrease (Years 2 - 11) | 3.50% | 2.50% | ||
Floor (Year 12) | 23.00% | 23.00% | ||
Discount rate: | 5.50% | [1] | 7.00% | [1] |
Remaining credit support provided by other collateral pools of underlying loans within the security: | 0.00% | 0.02% | ||
[1] | Intended to reflect estimated uncertainty and liquidity premiums, after adjustment for estimated credit loss cash flows. |
Securities_Details_4
Securities (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Investment Securities [Line Items] | ' | ' |
Unrealized losses, Less than 12 months | ($2,100) | ' |
Fair Value, Less than 12 months | 52,800 | ' |
Unrealized losses, 12 months or more | -214 | ' |
Fair Value, 12 months or more | 3,537 | ' |
Unrealized losses, Total | -2,314 | ' |
Fair Value, Total | 56,337 | ' |
Mortgage-backed/CMO [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Unrealized losses, Less than 12 months | -2,093 | -105 |
Fair Value, Less than 12 months | 52,020 | 13,448 |
Unrealized losses, 12 months or more | -214 | -79 |
Fair Value, 12 months or more | 1,454 | 2,018 |
Unrealized losses, Total | -2,307 | -184 |
Fair Value, Total | 55,557 | 15,466 |
Obligations Of State and Political Subdivisions [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Unrealized losses, Less than 12 months | -7 | ' |
Fair Value, Less than 12 months | 780 | ' |
Unrealized losses, 12 months or more | 0 | ' |
Fair Value, 12 months or more | 0 | ' |
Unrealized losses, Total | -7 | ' |
Fair Value, Total | $780 | ' |
Securities_Details_5
Securities (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment Securities [Line Items] | ' | ' |
Amortized Cost, Maturing within one year | $0 | $0 |
Amortized Cost, Maturing after one year but within five years | 761 | 500 |
Amortized Cost, Maturing after five years but within ten years | 505 | 3,305 |
Amortized Cost, Maturing after ten years | 577 | 778 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis | 1,843 | 4,583 |
Amortized Cost | 69,235 | 72,280 |
Fair Value, Maturing within one year | 0 | 0 |
Fair Value, Maturing after one year but within five years | 761 | 501 |
Fair Value, Maturing after five years but within ten years | 512 | 3,323 |
Fair Value, Maturing after ten years | 1,238 | 900 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | 2,511 | 4,724 |
Investment securities available for sale, at fair value | 67,680 | 72,586 |
Mortgage-backed/CMO securities [Member] | ' | ' |
Investment Securities [Line Items] | ' | ' |
Amortized Cost | 67,392 | 67,697 |
Investment securities available for sale, at fair value | $65,169 | $67,862 |
Securities_Details_Textual
Securities (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Investment Securities [Line Items] | ' | ' | ' | ' | ' |
Proceeds from maturities and calls of available for sale securities | ' | $3,000,000 | $6,990,000 | $2,700,000 | ' |
Deposit Liabilities, Collateral Issued, Financial Instruments | ' | 60,800,000 | 69,100,000 | ' | ' |
Stockholding Percentage | ' | 5.00% | ' | ' | ' |
Federal Home Loan Bank Stock | ' | 735,000 | 735,000 | ' | ' |
Federal Reserve Bank Stock | ' | 44,000 | 44,000 | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | ' | 214,000 | ' | ' | ' |
Other than Temporary Impairment Loss, Investments, Portion in Other Comprehensive Loss, before Tax, Portion Attributable to Parent, Available-for-sale Securities | 76,000,000 | 0 | 0 | -76,000 | ' |
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total | ' | ' | ' | ' | 290,000 |
Payments for (Proceeds from) Federal Home Loan Bank Stock, Total | ' | 0 | 0 | -122,000 | ' |
Federal Home Loan Bank Of Indianapolis [Member] | ' | ' | ' | ' | ' |
Investment Securities [Line Items] | ' | ' | ' | ' | ' |
Deposit Liabilities, Collateral Issued, Financial Instruments | ' | 25,500,000 | 25,400,000 | ' | ' |
Mortgage-backed/CMO [Member] | ' | ' | ' | ' | ' |
Investment Securities [Line Items] | ' | ' | ' | ' | ' |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss | ' | $214,000 | $79,000 | ' | ' |
Loans_Details
Loans (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans and Leases Receivable [Line Items] | ' | ' |
Commercial | $15,019 | $16,112 |
Commercial real estate: | ' | ' |
Construction, land development, and other land | 5,826 | 8,741 |
Owner occupied | 49,012 | 51,202 |
Nonowner occupied | 60,322 | 69,415 |
Consumer real estate: | ' | ' |
Commercial purpose | 6,886 | 6,911 |
Mortgage - Residential | 12,955 | 14,604 |
Home equity and home equity lines of credit | 8,991 | 8,307 |
Consumer and Other | 6,273 | 5,103 |
Subtotal | 165,284 | 180,395 |
Unearned income | -169 | -204 |
Total loans held for investment | $165,115 | $180,191 |
Loans_Details_Textual
Loans (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Loans and Leases Receivable [Line Items] | ' | ' |
Demand Deposit Overdrafts | $114,000 | $116,000 |
Loans and Leases Receivable, Gross, Other | $3,900,000 | $4,300,000 |
Allowance_for_Loan_Losses_and_2
Allowance for Loan Losses and Credit Quality of Loans (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for loan losses: | ' | ' |
Beginning balance | $11,769 | $12,690 |
Charge offs | -1,205 | -4,033 |
Recoveries | 900 | 1,787 |
Provision | -2,250 | 1,325 |
Ending balance | 9,214 | 11,769 |
Commercial [Member] | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning balance | 908 | 636 |
Charge offs | -177 | -355 |
Recoveries | 212 | 276 |
Provision | -310 | 351 |
Ending balance | 633 | 908 |
Commercial Real Estate [Member] | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning balance | 8,682 | 9,113 |
Charge offs | -836 | -2,866 |
Recoveries | 224 | 1,274 |
Provision | -890 | 1,161 |
Ending balance | 7,180 | 8,682 |
Consumer Real Estate [Member] | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning balance | 2,036 | 2,680 |
Charge offs | -87 | -689 |
Recoveries | 363 | 159 |
Provision | -1,097 | -114 |
Ending balance | 1,215 | 2,036 |
Consumer and Other [Member] | ' | ' |
Allowance for loan losses: | ' | ' |
Beginning balance | 143 | 261 |
Charge offs | -105 | -123 |
Recoveries | 101 | 78 |
Provision | 47 | -73 |
Ending balance | $186 | $143 |
Allowance_for_Loan_Losses_and_3
Allowance for Loan Losses and Credit Quality of Loans (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for impairment | $2,444 | $1,671 | ' |
Collectively evaluated for impairment | 6,770 | 10,098 | ' |
Total allowance for loan losses | 9,214 | 11,769 | 12,690 |
Recorded investment in loans: | ' | ' | ' |
Individually evaluated for impairment | 19,111 | 22,943 | ' |
Collectively evaluated for impairment | 146,173 | 157,452 | ' |
Total recorded investment in loans | 165,284 | 180,395 | ' |
Commercial Portfolio Segment [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for impairment | 11 | 49 | ' |
Collectively evaluated for impairment | 622 | 859 | ' |
Total allowance for loan losses | 633 | 908 | 636 |
Recorded investment in loans: | ' | ' | ' |
Individually evaluated for impairment | 211 | 710 | ' |
Collectively evaluated for impairment | 14,808 | 15,402 | ' |
Total recorded investment in loans | 15,019 | 16,112 | ' |
Commercial Real Estate Portfolio Segment [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for impairment | 2,298 | 1,245 | ' |
Collectively evaluated for impairment | 4,882 | 7,437 | ' |
Total allowance for loan losses | 7,180 | 8,682 | 9,113 |
Recorded investment in loans: | ' | ' | ' |
Individually evaluated for impairment | 17,052 | 19,853 | ' |
Collectively evaluated for impairment | 98,108 | 109,505 | ' |
Total recorded investment in loans | 115,160 | 129,358 | ' |
Consumer Real Estate Portfolio Segment [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for impairment | 135 | 377 | ' |
Collectively evaluated for impairment | 1,080 | 1,659 | ' |
Total allowance for loan losses | 1,215 | 2,036 | 2,680 |
Recorded investment in loans: | ' | ' | ' |
Individually evaluated for impairment | 1,848 | 2,380 | ' |
Collectively evaluated for impairment | 26,984 | 27,442 | ' |
Total recorded investment in loans | 28,832 | 29,822 | ' |
Consumer and Other Portfolio Segment [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 186 | 143 | ' |
Total allowance for loan losses | 186 | 143 | 261 |
Recorded investment in loans: | ' | ' | ' |
Individually evaluated for impairment | 0 | 0 | ' |
Collectively evaluated for impairment | 6,273 | 5,103 | ' |
Total recorded investment in loans | $6,273 | $5,103 | ' |
Allowance_for_Loan_Losses_and_4
Allowance for Loan Losses and Credit Quality of Loans (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | $15,019 | $16,112 |
Construction, land development, and other land | 5,826 | 8,741 |
Owner occupied | 49,012 | 51,202 |
Nonowner occupied | 60,322 | 69,415 |
Commercial purpose | 6,886 | 6,911 |
Mortgage - Residential | 12,955 | 14,604 |
Home equity and home equity lines of credit | 8,991 | 8,307 |
Consumer and Other | 6,273 | 5,103 |
Total | 165,284 | 180,395 |
Credit Risk Grade Not Rated [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 114 | 391 |
Construction, land development, and other land | 0 | 0 |
Owner occupied | 32 | 42 |
Nonowner occupied | 0 | 0 |
Commercial purpose | 0 | 0 |
Mortgage - Residential | 5,490 | 11,232 |
Home equity and home equity lines of credit | 4,164 | 7,760 |
Consumer and Other | 5,839 | 4,948 |
Total | 15,639 | 24,373 |
Credit Risk Grade I [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 479 | 430 |
Construction, land development, and other land | 0 | 0 |
Owner occupied | 0 | 0 |
Nonowner occupied | 0 | 0 |
Commercial purpose | 0 | 0 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 3,502 | 0 |
Consumer and Other | 0 | 0 |
Total | 3,981 | 430 |
Credit Risk Grade II [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 17 | 0 |
Construction, land development, and other land | 0 | 0 |
Owner occupied | 720 | 0 |
Nonowner occupied | 393 | 451 |
Commercial purpose | 0 | 0 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 0 | 0 |
Consumer and Other | 0 | 0 |
Total | 1,130 | 451 |
Credit Risk Grade III [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 2,680 | 2,356 |
Construction, land development, and other land | 0 | 0 |
Owner occupied | 3,132 | 1,671 |
Nonowner occupied | 1,340 | 1,404 |
Commercial purpose | 221 | 297 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 0 | 0 |
Consumer and Other | 0 | 0 |
Total | 7,373 | 5,728 |
Credit Risk Grade IV [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 5,057 | 5,881 |
Construction, land development, and other land | 1,840 | 1,431 |
Owner occupied | 20,987 | 18,963 |
Nonowner occupied | 19,057 | 17,057 |
Commercial purpose | 1,712 | 948 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 0 | 0 |
Consumer and Other | 0 | 6 |
Total | 48,653 | 44,286 |
Credit Risk Grade V [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 5,901 | 5,360 |
Construction, land development, and other land | 1,745 | 4,006 |
Owner occupied | 16,172 | 21,619 |
Nonowner occupied | 28,865 | 30,847 |
Commercial purpose | 3,399 | 3,594 |
Mortgage - Residential | 4,349 | 0 |
Home equity and home equity lines of credit | 770 | 0 |
Consumer and Other | 307 | 5 |
Total | 61,508 | 65,431 |
Credit Risk Grade VI [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 607 | 1,000 |
Construction, land development, and other land | 165 | 136 |
Owner occupied | 2,916 | 3,594 |
Nonowner occupied | 4,735 | 11,307 |
Commercial purpose | 760 | 758 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 0 | 0 |
Consumer and Other | 0 | 0 |
Total | 9,183 | 16,795 |
Credit Risk Grade VII [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 164 | 694 |
Construction, land development, and other land | 602 | 3,168 |
Owner occupied | 5,053 | 5,313 |
Nonowner occupied | 5,932 | 8,349 |
Commercial purpose | 794 | 1,314 |
Mortgage - Residential | 3,116 | 3,372 |
Home equity and home equity lines of credit | 555 | 547 |
Consumer and Other | 127 | 144 |
Total | 16,343 | 22,901 |
Credit Risk Grade VIII [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 0 | 0 |
Construction, land development, and other land | 1,474 | 0 |
Owner occupied | 0 | 0 |
Nonowner occupied | 0 | 0 |
Commercial purpose | 0 | 0 |
Mortgage - Residential | 0 | 0 |
Home equity and home equity lines of credit | 0 | 0 |
Consumer and Other | 0 | 0 |
Total | 1,474 | 0 |
Non Performing Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Commercial | 12 | 264 |
Construction, land development, and other land | 1,849 | 2,391 |
Owner occupied | 2,580 | 3,040 |
Nonowner occupied | 3,623 | 3,632 |
Commercial purpose | 663 | 1,158 |
Mortgage - Residential | 1,853 | 2,019 |
Home equity and home equity lines of credit | 363 | 411 |
Consumer and Other | 124 | 125 |
Total | $11,067 | $13,040 |
Allowance_for_Loan_Losses_and_5
Allowance for Loan Losses and Credit Quality of Loans (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | $1,090 | $3,502 |
60-89 Days Past Due | 1,364 | 891 |
90+ Days Past Due | 1,379 | 3,087 |
Total Past Due | 3,833 | 7,480 |
Current | 161,451 | 172,915 |
Total | 165,284 | 180,395 |
90+Days Past Due and Accruing | 0 | 201 |
Commercial [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 136 |
60-89 Days Past Due | 0 | 6 |
90+ Days Past Due | 0 | 51 |
Total Past Due | 0 | 193 |
Current | 15,019 | 15,919 |
Total | 15,019 | 16,112 |
90+Days Past Due and Accruing | 0 | 0 |
Construction, land development, and other land [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 0 | 1,609 |
60-89 Days Past Due | 0 | 0 |
90+ Days Past Due | 68 | 30 |
Total Past Due | 68 | 1,639 |
Current | 5,758 | 7,102 |
Total | 5,826 | 8,741 |
90+Days Past Due and Accruing | 0 | 0 |
Owner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 153 | 142 |
60-89 Days Past Due | 155 | 32 |
90+ Days Past Due | 843 | 1,837 |
Total Past Due | 1,151 | 2,011 |
Current | 47,861 | 49,191 |
Total | 49,012 | 51,202 |
90+Days Past Due and Accruing | 0 | 0 |
Nonowner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 627 | 0 |
60-89 Days Past Due | 312 | 0 |
90+ Days Past Due | 241 | 558 |
Total Past Due | 1,180 | 558 |
Current | 59,142 | 68,857 |
Total | 60,322 | 69,415 |
90+Days Past Due and Accruing | 0 | 0 |
Commercial purpose [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 103 | 133 |
60-89 Days Past Due | 0 | 0 |
90+ Days Past Due | 123 | 558 |
Total Past Due | 226 | 691 |
Current | 6,660 | 6,220 |
Total | 6,886 | 6,911 |
90+Days Past Due and Accruing | 0 | 201 |
Mortgage - Residential [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 77 | 1,109 |
60-89 Days Past Due | 851 | 753 |
90+ Days Past Due | 104 | 21 |
Total Past Due | 1,032 | 1,883 |
Current | 11,923 | 12,721 |
Total | 12,955 | 14,604 |
90+Days Past Due and Accruing | 0 | 0 |
Home equity and home equity lines of credit [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 75 | 302 |
60-89 Days Past Due | 37 | 76 |
90+ Days Past Due | 0 | 0 |
Total Past Due | 112 | 378 |
Current | 8,879 | 7,929 |
Total | 8,991 | 8,307 |
90+Days Past Due and Accruing | 0 | 0 |
Consumer and Other [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
30-59 Days Past Due | 55 | 71 |
60-89 Days Past Due | 9 | 24 |
90+ Days Past Due | 0 | 32 |
Total Past Due | 64 | 127 |
Current | 6,209 | 4,976 |
Total | 6,273 | 5,103 |
90+Days Past Due and Accruing | $0 | $0 |
Allowance_for_Loan_Losses_and_6
Allowance for Loan Losses and Credit Quality of Loans (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | $11,067 | $12,839 |
Commercial [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 12 | 264 |
Construction, land development, and other land [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 1,849 | 2,391 |
Owner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 2,580 | 3,040 |
Nonowner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 3,623 | 3,632 |
Commercial purpose [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 663 | 957 |
Mortgage - Residential [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 1,853 | 2,019 |
Home equity and home equity lines of credit [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | 363 | 411 |
Consumer and Other [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment Non Accrual | $124 | $125 |
Allowance_for_Loan_Losses_and_7
Allowance for Loan Losses and Credit Quality of Loans (Details 5) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | $12,325 | $14,609 |
Unpaid Principal Balance | 15,473 | 16,964 |
Valuation Allowance | 2,444 | 1,671 |
Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 6,786 | 8,334 |
Unpaid Principal Balance | 9,079 | 14,134 |
Valuation Allowance | 0 | 0 |
Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 19,111 | 22,943 |
Unpaid Principal Balance | 24,552 | 31,098 |
Valuation Allowance | 2,444 | 1,671 |
Commercial [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 198 | 463 |
Unpaid Principal Balance | 224 | 543 |
Valuation Allowance | 11 | 49 |
Commercial [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 13 | 246 |
Unpaid Principal Balance | 14 | 724 |
Valuation Allowance | 0 | 0 |
Commercial [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 211 | 709 |
Unpaid Principal Balance | 238 | 1,267 |
Valuation Allowance | 11 | 49 |
Construction, land development, and other land [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 2,368 | 1,211 |
Unpaid Principal Balance | 4,664 | 1,396 |
Valuation Allowance | 1,649 | 166 |
Construction, land development, and other land [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 306 | 2,391 |
Unpaid Principal Balance | 416 | 4,730 |
Valuation Allowance | 0 | 0 |
Construction, land development, and other land [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 2,674 | 3,602 |
Unpaid Principal Balance | 5,080 | 6,126 |
Valuation Allowance | 1,649 | 166 |
Owner occupied [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 3,467 | 5,473 |
Unpaid Principal Balance | 3,799 | 6,045 |
Valuation Allowance | 297 | 498 |
Owner occupied [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 2,556 | 2,084 |
Unpaid Principal Balance | 3,517 | 3,914 |
Valuation Allowance | 0 | 0 |
Owner occupied [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 6,023 | 7,557 |
Unpaid Principal Balance | 7,316 | 9,959 |
Valuation Allowance | 297 | 498 |
Nonowner occupied [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 5,107 | 5,764 |
Unpaid Principal Balance | 5,470 | 6,962 |
Valuation Allowance | 352 | 581 |
Nonowner occupied [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 3,248 | 2,930 |
Unpaid Principal Balance | 3,871 | 3,616 |
Valuation Allowance | 0 | 0 |
Nonowner occupied [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 8,355 | 8,694 |
Unpaid Principal Balance | 9,341 | 10,578 |
Valuation Allowance | 352 | 581 |
Commercial purpose [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 1,185 | 1,698 |
Unpaid Principal Balance | 1,316 | 2,018 |
Valuation Allowance | 135 | 377 |
Commercial purpose [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 663 | 683 |
Unpaid Principal Balance | 1,261 | 1,150 |
Valuation Allowance | 0 | 0 |
Commercial purpose [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 1,848 | 2,381 |
Unpaid Principal Balance | 2,577 | 3,168 |
Valuation Allowance | 135 | 377 |
Mortgage - Residential [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Mortgage - Residential [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Mortgage - Residential [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Home equity and home equity lines of credit [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Home equity and home equity lines of credit [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Home equity and home equity lines of credit [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Consumer and Other [Member] | Loans Receivable With Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Consumer and Other [Member] | Loans Receivable With No Specific Allowance [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Consumer and Other [Member] | Loans Receivable [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | $0 | $0 |
Allowance_for_Loan_Losses_and_8
Allowance for Loan Losses and Credit Quality of Loans (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | $20,522 | $23,008 |
Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 785 | 464 |
Commercial Loan [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 230 | 675 |
Commercial Loan [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 15 | 21 |
Construction, land development, and other land [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 2,925 | 3,650 |
Construction, land development, and other land [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 64 | 43 |
Owner occupied [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 7,005 | 7,568 |
Owner occupied [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 318 | 167 |
Nonowner occupied [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 8,415 | 8,844 |
Nonowner occupied [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 314 | 210 |
Commercial purpose [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 1,947 | 2,271 |
Commercial purpose [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 74 | 23 |
Mortgage - Residential [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 0 | 0 |
Mortgage - Residential [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 0 | 0 |
Home equity and home equity lines of credit [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 0 | 0 |
Home equity and home equity lines of credit [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | 0 | 0 |
Consumer and Other [Member] | Average Of Impaired Loans [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Average Outstanding Recorded Investment | 0 | 0 |
Consumer and Other [Member] | Interest Income Recognized Loan [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Interest Income Recognized | $0 | $0 |
Allowance_for_Loan_Losses_and_9
Allowance for Loan Losses and Credit Quality of Loans (Details 7) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | $11,388 | $13,288 |
Outstanding Recorded Investment Nonaccrual | 7,794 | 10,219 |
Outstanding Recorded Investment, Total | 19,182 | 23,507 |
Commercial [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 199 | 446 |
Outstanding Recorded Investment Nonaccrual | 13 | 264 |
Outstanding Recorded Investment, Total | 212 | 710 |
Construction, land development, and other land [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 826 | 1,211 |
Outstanding Recorded Investment Nonaccrual | 1,662 | 2,271 |
Outstanding Recorded Investment, Total | 2,488 | 3,482 |
Owner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 3,442 | 4,335 |
Outstanding Recorded Investment Nonaccrual | 2,202 | 2,029 |
Outstanding Recorded Investment, Total | 5,644 | 6,364 |
Nonowner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 4,732 | 5,063 |
Outstanding Recorded Investment Nonaccrual | 2,281 | 3,447 |
Outstanding Recorded Investment, Total | 7,013 | 8,510 |
Commercial purpose [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 1,185 | 1,424 |
Outstanding Recorded Investment Nonaccrual | 502 | 596 |
Outstanding Recorded Investment, Total | 1,687 | 2,020 |
Mortgage - Residential [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 940 | 738 |
Outstanding Recorded Investment Nonaccrual | 823 | 1,232 |
Outstanding Recorded Investment, Total | 1,763 | 1,970 |
Home equity and home equity lines of credit [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 58 | 62 |
Outstanding Recorded Investment Nonaccrual | 250 | 284 |
Outstanding Recorded Investment, Total | 308 | 346 |
Consumer and Other [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Outstanding Recorded Investment, Accruing | 6 | 9 |
Outstanding Recorded Investment Nonaccrual | 61 | 96 |
Outstanding Recorded Investment, Total | $67 | $105 |
Recovered_Sheet1
Allowance for Loan Losses and Credit Quality of Loans (Details 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Number | Number | |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 5 | 30 |
Loan Receivable Modifications Pre Modification Recorded Investment | $707 | $7,584 |
Loan Receivable Modifications Post Modification Recorded Investment | 707 | 7,584 |
Commercial [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 46 | 153 |
Loan Receivable Modifications Post Modification Recorded Investment | 46 | 153 |
Construction, land development, and other land [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 2,631 |
Loan Receivable Modifications Post Modification Recorded Investment | 0 | 2,631 |
Owner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 5 |
Loan Receivable Modifications Pre Modification Recorded Investment | 390 | 1,281 |
Loan Receivable Modifications Post Modification Recorded Investment | 390 | 1,281 |
Nonowner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 6 |
Loan Receivable Modifications Pre Modification Recorded Investment | 105 | 2,413 |
Loan Receivable Modifications Post Modification Recorded Investment | 105 | 2,413 |
Commercial purpose [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 2 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 166 | 445 |
Loan Receivable Modifications Post Modification Recorded Investment | 166 | 445 |
Mortgage - Residential [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 7 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 496 |
Loan Receivable Modifications Post Modification Recorded Investment | 0 | 496 |
Home equity and home equity lines of credit [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 2 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 137 |
Loan Receivable Modifications Post Modification Recorded Investment | 0 | 137 |
Consumer and Other [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 28 |
Loan Receivable Modifications Post Modification Recorded Investment | $0 | $28 |
Recovered_Sheet2
Allowance for Loan Losses and Credit Quality of Loans (Details 9) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Number | Number | |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 5 | 30 |
Loan Receivable Modifications Pre Modification Recorded Investment | $707 | $7,584 |
Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 14 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 1,487 |
Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 4 | 12 |
Loan Receivable Modifications Pre Modification Recorded Investment | 317 | 3,034 |
Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 4 |
Loan Receivable Modifications Pre Modification Recorded Investment | 390 | 3,063 |
Commercial [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 46 | 153 |
Commercial [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Commercial [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 2 |
Loan Receivable Modifications Pre Modification Recorded Investment | 46 | 85 |
Commercial [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 68 |
Construction, land development, and other land [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 2,631 |
Construction, land development, and other land [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Construction, land development, and other land [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 104 |
Construction, land development, and other land [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 2 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 2,527 |
Owner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 5 |
Loan Receivable Modifications Pre Modification Recorded Investment | 390 | 1,281 |
Owner occupied [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 143 |
Owner occupied [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 4 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 1,138 |
Owner occupied [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 390 | 0 |
Nonowner occupied [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 6 |
Loan Receivable Modifications Pre Modification Recorded Investment | 105 | 2,413 |
Nonowner occupied [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 262 |
Nonowner occupied [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 1 | 4 |
Loan Receivable Modifications Pre Modification Recorded Investment | 105 | 1,683 |
Nonowner occupied [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 468 |
Commercial purpose [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 2 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 166 | 445 |
Commercial purpose [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 3 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 445 |
Commercial purpose [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 2 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 166 | 0 |
Commercial purpose [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Mortgage - Residential [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 7 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 496 |
Mortgage - Residential [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 6 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 472 |
Mortgage - Residential [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 24 |
Mortgage - Residential [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Home equity and home equity lines of credit [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 2 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 137 |
Home equity and home equity lines of credit [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 2 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 137 |
Home equity and home equity lines of credit [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Home equity and home equity lines of credit [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Consumer and Other [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 28 |
Consumer and Other [Member] | Non-Market Interest Rate [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 1 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 28 |
Consumer and Other [Member] | Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | 0 | 0 |
Consumer and Other [Member] | Non-Market Interest Rate And Extension Of Amortization Period [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Loan Receivable Modifications Number Of Contracts | 0 | 0 |
Loan Receivable Modifications Pre Modification Recorded Investment | $0 | $0 |
Recovered_Sheet3
Allowance for Loan Losses and Credit Quality of Loans (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Pre Modification Recorded Investment Included In Non Market Interest Rate Restructuring | $390,000 | $4,500,000 |
Impairment Evaluation Condition | 'Those loans graded 7 and higher are considered substandard and are individually evaluated for impairment if reported as nonaccrual and are greater than $100,000 or part of an aggregate relationship exceeding $100,000. | ' |
TDR Loans Recorded Investment | 567,000 | ' |
Six Loans Recorded Investment | ' | $1,400,000 |
Pass [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Financing Receivable, Credit Quality, Additional Information | 'Grades 1 through 5 | ' |
Watch [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Financing Receivable, Credit Quality, Additional Information | 'grade 6 | ' |
Substandard [Member] | ' | ' |
Allowance for Loan Losses and Credit Quality of Loans [Line Items] | ' | ' |
Financing Receivable, Credit Quality, Additional Information | 'graded 7 and higher | ' |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment, Gross | $16,473 | $16,603 |
Less accumulated depreciation and amortization | -9,078 | -9,392 |
Premises and equipment, net | 7,395 | 7,211 |
Land and Land Improvements [Member] | ' | ' |
Property, Plant and Equipment, Gross | 2,875 | 2,858 |
Premises [Member] | ' | ' |
Property, Plant and Equipment, Gross | 9,938 | 9,943 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment, Gross | $3,660 | $3,802 |
Other_Real_Estate_Owned_Detail
Other Real Estate Owned (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Number of Real Estate Properties | 5 | 15 | ' |
Real Estate Held-For-Sale | $480,000 | $3,427,000 | ' |
Gains (Losses) On Sales Of Other Real Estate | 91,000 | -206,000 | -273,000 |
Real Estate Owned, Valuation Allowance, Amounts Applied | 62,000 | ' | ' |
Gains On Sales Of Other Real Estate | 153,000 | ' | ' |
Losses On Sales Of Other Real Estate | ' | $206,000 | $273,000 |
Time_Certificates_of_Deposit_D
Time Certificates of Deposit (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
2014 | $0 | $25,037 |
2015 | 12,607 | 1,043 |
2016 | 2,645 | 2,257 |
2017 | 3,101 | 3,131 |
2018 and thereafter | 2,737 | 26 |
Total | $21,090 | $31,494 |
Time_Certificates_of_Deposit_D1
Time Certificates of Deposit (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Three months or less | $5,079 | $6,944 |
Three through six months | 5,011 | 3,146 |
Six through twelve months | 10,572 | 9,729 |
Over twelve months | 8,391 | 10,888 |
Total | $29,053 | $30,707 |
Time_Certificates_of_Deposit_D2
Time Certificates of Deposit (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Interest Expense, Time Deposits, Total | $287,000 | $363,000 | $487,000 |
Other_Borrowings_Details_Textu
Other Borrowings (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Deposit Liabilities, Collateral Issued, Financial Instruments | $60.80 | $69.10 |
Loans Pledged as Collateral | 4.7 | ' |
Loans Repaid In Connection With Issuance of Stock | 172,000 | ' |
Commercial Loan [Member] | ' | ' |
Pledged Assets Separately Reported, Loans Pledged for Federal Home Loan Bank, at Fair Value | 9 | ' |
Federal Home Loan Bank of Indianapolis [Member] | ' | ' |
Deposit Liabilities, Collateral Issued, Financial Instruments | 19.6 | ' |
Line of Credit Facility, Maximum Borrowing Capacity | 22.5 | ' |
Mortgage Receivable [Member] | ' | ' |
Pledged Assets Separately Reported, Loans Pledged for Federal Home Loan Bank, at Fair Value | $11.40 | ' |
Federal_Income_Taxes_Details
Federal Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | $0 | $0 | $0 |
Deferred | 104 | -104 | 0 |
Total federal income tax expense (benefit) | $104 | ($104) | $0 |
Federal_Income_Taxes_Details_1
Federal Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Computed bexpectedb tax expense (benefit) | $1,047 | $76 | ($1,215) |
Tax-exempt interest and dividends, net | -28 | -35 | -104 |
Change in valuation allowance | -893 | -157 | 1,320 |
Other, net | -22 | 12 | -1 |
Total federal income tax expense (benefit) | $104 | ($104) | $0 |
Federal_Income_Taxes_Details_2
Federal Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $1,465 | $1,983 |
Net operating loss carryforward | 7,393 | 8,105 |
Other-than-temporary impairment on securities available for sale | 769 | 769 |
Premises and equipment | 309 | 332 |
Deferred directors' fees | 116 | 157 |
Reserve for other real estate owned | 53 | 190 |
Supplemental retirement plan | 42 | 79 |
Unrealized loss on securites available for sale | 529 | 0 |
Other | 66 | 114 |
Total gross deferred tax assets | 10,742 | 11,729 |
Deferred tax liabilities: | ' | ' |
Deferred loan fees | -54 | -44 |
Unrealized gain on securites available for sale | 0 | -104 |
Other | -65 | -65 |
Total gross deferred tax liabilities | -119 | -213 |
Net deferred tax asset before valuation allowance | 10,623 | 11,516 |
Valuation allowance | -10,623 | -11,516 |
Net deferred tax asset | $0 | $0 |
Federal_Income_Taxes_Details_T
Federal Income Taxes (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% |
Operating Loss Carryforwards | $21.70 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Balance at beginning of year | $211 | $498 |
New loans and related parties | 30 | 0 |
Loan repayments | -61 | -271 |
Loans no longer related-party | 0 | -16 |
Balance at end of year | $180 | $211 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Deposit Liabilities | $839,000 | $663,000 |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
2014 | $78 |
2015 | 58 |
2016 | 48 |
2017 | 36 |
Total lease payments | $220 |
Leases_Details_Textual
Leases (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Leases, Rent Expense | $92,000 | $88,000 | $84,000 |
Retirement_Plan_Details_Textua
Retirement Plan (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Plan Employer Contribution Description | 'No employer contributions were made to the plan during 2010 through 2012 due to the Banks financial condition. In 2013, based on improved financial results, the Bank reinstated a discretionary employer contribution equal to 50% of an employees contribution, limited to 3% of the employees base compensation or the maximum amount permitted by the Internal Revenue Code. | ' | ' |
Defined Benefit Plan, Administration Expenses | $75,000 | $0 | $0 |
Shareholders_Equity_Details_Te
Shareholders' Equity (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Dec. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 04, 2011 | Mar. 28, 2014 | Mar. 27, 2014 | Dec. 11, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Subsequent Event [Member] | Rights [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | Series B Preferred Stock [Member] | ||||||
Subsequent Event [Member] | ||||||||||
Stockholders Equity, Reverse Stock Split | ' | '1-for-7 | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Shares Outstanding Prior To Reverse Stock Split | ' | ' | ' | ' | 3,171,523 | ' | ' | ' | ' | ' |
Common Stock, Shares, Outstanding | ' | 455,115 | 454,327 | 453,553 | ' | ' | ' | ' | ' | ' |
Percentage Of Ownership Change Under Tax Benefits Preservation Plan Minimum | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Shares Authorized | ' | 11,000,000 | 11,000,000 | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Shares Issued | 17,510 | ' | ' | ' | ' | ' | ' | 17,510 | 17,510 | 0 |
Preferred Stock Conversion Price Per Share | $0.70 | $0.70 | ' | ' | ' | ' | ' | ' | $0.70 | ' |
Proceeds from Issuance of Private Placement | $17,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Issuance Of Convertible Preferred Stock Net Offering Cost | ' | ' | ' | ' | ' | ' | ' | 16,500,000 | ' | ' |
Proceeds From Issuance Of Equity Stock Net Offering Cost | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' |
Stock Issued During Period, Value, New Issues | ' | 16,520,000 | ' | ' | ' | ' | 1,600,000 | ' | ' | ' |
Shares Issued, Price Per Share | ' | ' | ' | ' | ' | ' | $0.70 | ' | ' | ' |
Net Proceeds From Rights Contributed To Bank | ' | ' | ' | ' | ' | $550,000 | ' | ' | ' | ' |
Net_Income_per_Common_Share_De
Net Income per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Weighted average basic and diluted common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 457,435 | 457,416 | 457,318 | ||||
Weighted average common stock equivalent preferred shares outstanding, as converted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,439,178 | 0 | 0 | ||||
Total weighted average basic and diluted shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,896,613 | 457,416 | 457,318 | ||||
Net income (loss) available to shareholders (in dollars per share) | $32 | $237 | $215 | $2,490 | $254 | $118 | ($89) | $46 | $2,974 | $329 | ($3,573) | ||||
Basic and diluted net income (loss) per share (in dollars per share) | $0.01 | [1] | $0.52 | [1] | $0.47 | [1] | $5.44 | [1] | $0.55 | $0.26 | ($0.19) | $0.10 | $1.57 | $0.72 | ($7.81) |
[1] | Per share data for the quarterly period ended December 31, 2013 includes 17,510 shares of Series B Preferred Shares issued on December 11, 2013 converted to common shares at a rate reflecting a price per common share of $0.70. |
Net_Income_per_Common_Share_De1
Net Income per Common Share (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 11, 2013 | Dec. 31, 2012 |
Preferred Stock, Shares Issued | ' | 17,510 | ' |
Preferred Stock Conversion Price Per Share | $0.70 | 0.7 | ' |
Series B Preferred Stock [Member] | ' | ' | ' |
Preferred Stock, Shares Issued | 17,510 | 17,510 | 0 |
Preferred Stock Conversion Price Per Share | $0.70 | ' | ' |
Long_Term_Incentive_Plan_Detai
Long Term Incentive Plan (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | ' | $4,000 | $16,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '5 years | ' | ' |
Directors_Stock_Fee_Plan_Detai
Directors' Stock Fee Plan (Details Textual) | Dec. 31, 2013 |
Shares Available For Distribution In Fixed Fee Deferred Stock Accounts | 1,906 |
Shares Available For Distribution In Variable Fee Deferred Stock Accounts | 413 |
Financial_Instruments_with_Off2
Financial Instruments with Off-Balance-Sheet Risk (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk Credit Commitments | $17,449 | $14,223 |
Commercial Real Estate [Member] | ' | ' |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk Credit Commitments | 1,247 | 1,072 |
Commercial [Member] | ' | ' |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk Credit Commitments | 9,144 | 6,146 |
Consumer [Member] | ' | ' |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk Credit Commitments | 4,410 | 4,164 |
Consumer Other [Member] | ' | ' |
Concentration Risk Credit Risk Financial Instruments Off Balance Sheet Risk Credit Commitments | $2,648 | $2,841 |
Financial_Instruments_with_Off3
Financial Instruments with Off-Balance-Sheet Risk (Details Textual) (Standby Letters of Credit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Standby Letters of Credit [Member] | ' | ' |
Credit Derivative, Maximum Exposure, Undiscounted | $10,000 | $10,000 |
Capital_Details
Capital (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Well capitalized, Total Risk-Based Capital Ratio | '10% or above |
Adequately capitalized, Total Risk-Based Capital Ratio | '8% or above |
Undercapitalized, Total Risk-Based Capital Ratio | 'Less than 8% |
Significantly undercapitalized, Total Risk-Based Capital Ratio | 'Less than 6% |
Critically undercapitalized, Total Risk-Based Capital Ratio | '0 |
Well capitalized, Tier 1 Risk-Based Capital Ratio | '6% or above |
Adequately capitalized, Tier 1 Risk-Based Capital Ratio | '4% or above |
Undercapitalized, Tier 1 Risk-Based Capital Ratio | 'Less than 4% |
Significantly undercapitalized, Tier 1 Risk-Based Capital Ratio | 'Less than 3% |
Critically undercapitalized, Tier 1 Risk-Based Capital Ratio | '0 |
Well capitalized, Leverage Ratio | '5% or above |
Adequately capitalized, Leverage Ratio | '4% or above |
Undercapitalized, Leverage Ratio | 'Less than 4% |
Significantly undercapitalized, Leverage Ratio | 'Less than 3% |
Critically undercapitalized, Leverage Ratio | 'A ratio of tangible equity to total assets of 2% or less |
Capital_Details_1
Capital (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Tier Risk Based Capital | $29,204 | $9,822 |
Tier One Risk Based Capital | 26,660 | 7,167 |
Tier One Risk Based Capital To Average Assets | 26,660 | 7,167 |
Capital to Risk Weighted Assets | 14.86% | 4.84% |
Tier One Risk Based Capital to Risk Weighted Assets | 13.56% | 3.53% |
Tier One Risk Based Capital Average Assets | 8.82% | 2.45% |
Tier Risk Based Capital Required For Capital Adequacy | 15,724 | 16,240 |
Tier One Risk Based Capital Required for Capital Adequacy | 7,862 | 8,120 |
Tier One Risk Based Capital To Average Assets Required For Capital Adequacy | 12,097 | 11,686 |
Tier Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | 4.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Average Assets | 4.00% | 4.00% |
First National Bank In Howell [Member] | ' | ' |
Tier Risk Based Capital | 28,593 | 10,195 |
Tier One Risk Based Capital | 26,052 | 7,540 |
Tier One Risk Based Capital To Average Assets | 26,052 | 7,540 |
Capital to Risk Weighted Assets | 14.57% | 5.02% |
Tier One Risk Based Capital to Risk Weighted Assets | 13.27% | 3.71% |
Tier One Risk Based Capital Average Assets | 8.67% | 2.58% |
Tier Risk Based Capital Required For Capital Adequacy | 18,705 | 16,240 |
Tier One Risk Based Capital Required for Capital Adequacy | 7,852 | 8,120 |
Tier One Risk Based Capital To Average Assets Required For Capital Adequacy | 12,021 | 11,686 |
Tier Risk Based Capital Required For Capital Adequacy To Risk Weighted Assets | 8.00% | 8.00% |
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | 4.00% |
Tier One Risk Based Capital Required For Capital Adequacy To Average Assets | 4.00% | 4.00% |
Tier Risk Based Capital Required To Be Well Capitalized | 19,631 | 20,300 |
Tier One Risk Based Capital Required to be Well Capitalized | 11,779 | 12,180 |
Tier Risk Based Capital To Average Assets Required To Be Well Capitalized | $15,026 | $14,608 |
Tier Capital Required To Be Well Capitalized To Risk Weighted Assets | 10.00% | 10.00% |
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | 6.00% |
Tier One Risk Based Capital Required To Be Well Capitalized To Average Assets | 5.00% | 5.00% |
Capital_Details_Textual
Capital (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Capital to Risk Weighted Assets | 14.86% | 4.84% |
Tier One Capital To Adjusted Total Assets | 8.50% | ' |
Capital Infusion | $15.40 | ' |
Minimum [Member] | ' | ' |
Capital to Risk Weighted Assets | 8.00% | ' |
Highly Raated Banks [Member] | Minimum [Member] | ' | ' |
Tier One Leverage Capital to Average Assets | 3.00% | ' |
Other Banks [Member] | Maximum [Member] | ' | ' |
Tier One Leverage Capital to Average Assets | 5.00% | ' |
Other Banks [Member] | Minimum [Member] | ' | ' |
Tier One Leverage Capital to Average Assets | 4.00% | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Investment securities available for sale, at fair value | $67,680 | $72,586 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 66,226 | 70,568 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 1,454 | 2,018 | ||
Obligations of state and political subdivisions [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 1,794 | 1,580 | ||
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 1,794 | 1,580 | ||
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
U.S. agency [Member] | ' | ' | ||
Investment securities available for sale, at fair value | ' | 3,007 | ||
U.S. agency [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | ' | 0 | ||
U.S. agency [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | ' | 3,007 | ||
U.S. agency [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | ' | 0 | ||
Mortgage-backed/CMO [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 65,169 | 67,862 | ||
Mortgage-backed/CMO [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Mortgage-backed/CMO [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 63,715 | 65,844 | ||
Mortgage-backed/CMO [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 1,454 | 2,018 | ||
Preferred stock [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 717 | [1] | 137 | [1] |
Preferred stock [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Preferred stock [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | $717 | $137 | ||
[1] | Represents preferred stocks issued by Freddie Mac and Fannie Mae |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Fair value of non-agency mortgage-backed security, beginning of year | $2,018 | [1] | $2,064 | [1] |
Total gains (losses) realized/unrealized: | ' | ' | ||
Included in earnings | 0 | [2] | 0 | [2] |
Included in other comprehensive income | 79 | [2] | 358 | [2] |
Purchases, issuances, and other settlements | -643 | -404 | ||
Transfers into Level 3 | 0 | 0 | ||
Fair value of non-agency mortgage-backed security, end of year | 1,454 | 2,018 | [1] | |
Total amount of losses for the year included in earnings attributable to the change in unrealized in unrealized losses relating to assets still held at end of year | $0 | $0 | ||
[1] | Non-agency CMO classified as available for sale is valued using internal valuation models and pricing information from third parties. | |||
[2] | Realized gains (losses), including unrealized losses deemed other-than-temporary, are reported in noninterest income. Unrealized gains (losses) are reported in accumulated other comprehensive income (loss). |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Investment securities available for sale, at fair value | $67,680 | $72,586 | ||
Impaired Loans [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 16,667 | [1] | 21,272 | [1] |
Other Real Estate Owned [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 480 | 3,427 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | [1] | 0 | [1] |
Fair Value, Inputs, Level 1 [Member] | Other Real Estate Owned [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 66,226 | 70,568 | ||
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | [1] | 0 | [1] |
Fair Value, Inputs, Level 2 [Member] | Other Real Estate Owned [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 1,454 | 2,018 | ||
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ' | ' | ||
Investment securities available for sale, at fair value | 16,667 | [1] | 21,272 | [1] |
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member] | ' | ' | ||
Investment securities available for sale, at fair value | $480 | $3,427 | ||
[1] | Represents carrying value and related write-downs and specific reserves pertaining to collateral dependent loans for which adjustments are based on the appraised value of the collateral or by other unobservable inputs. |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | $78,025 | $42,021 | $50,217 | $40,572 |
Short term investments | 198 | 197 | ' | ' |
FHLBI and FRB stock | 779 | 779 | ' | ' |
Loans, net | 155,901 | 168,422 | ' | ' |
Financial liabilites: | ' | ' | ' | ' |
Other borrowings | 16 | 148 | ' | ' |
Accrued interest expense | 1,855 | 1,672 | ' | ' |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | 77,827 | 41,824 | ' | ' |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Short term investments | 198 | 197 | ' | ' |
Investment and mortgage-backed securities | 66,226 | 70,568 | ' | ' |
FHLBI and FRB stock | 779 | 779 | ' | ' |
Accured interest income | 573 | 705 | ' | ' |
Financial liabilites: | ' | ' | ' | ' |
Deposits | 280,549 | 287,749 | ' | ' |
Other borrowings | 16 | 148 | ' | ' |
Accrued interest expense | 83 | 93 | ' | ' |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Non-agency mortgage-backed security | 1,454 | 2,018 | ' | ' |
Loans, net | 156,793 | 169,365 | ' | ' |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Cash and cash equivalents | 77,827 | 41,824 | ' | ' |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Short term investments | 198 | 197 | ' | ' |
Investment and mortgage-backed securities | 66,226 | 70,568 | ' | ' |
FHLBI and FRB stock | 779 | 779 | ' | ' |
Accured interest income | 573 | 705 | ' | ' |
Financial liabilites: | ' | ' | ' | ' |
Deposits | 285,313 | 287,682 | ' | ' |
Other borrowings | 16 | 148 | ' | ' |
Accrued interest expense | 83 | 93 | ' | ' |
Portion at Other than Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Financial assets: | ' | ' | ' | ' |
Non-agency mortgage-backed security | 1,454 | 2,018 | ' | ' |
Loans, net | $155,901 | $168,422 | ' | ' |
Condensed_Financial_Informatio2
Condensed Financial Information - Parent Company Only (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash | $77,827 | $41,824 | ' | ' |
Investment in subsidiaries: | ' | ' | ' | ' |
Total assets | 312,290 | 296,871 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Other Borrowings | 16 | 148 | ' | ' |
Shareholdersb equity | 25,106 | 7,369 | 6,610 | 10,134 |
Total liabilities and shareholdersb equity | 312,290 | 296,871 | ' | ' |
Parent Company [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Cash | 1,036 | 0 | ' | ' |
Investment in subsidiaries: | ' | ' | ' | ' |
Other Assets | 30 | 1 | ' | ' |
Total assets | 25,565 | 7,744 | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' |
Other Borrowings | 16 | 148 | ' | ' |
Other Liabilities | 443 | 227 | ' | ' |
Shareholdersb equity | 25,106 | 7,369 | ' | ' |
Total liabilities and shareholdersb equity | 25,565 | 7,744 | ' | ' |
Parent Company [Member] | First National Bank In Howell [Member] | ' | ' | ' | ' |
Investment in subsidiaries: | ' | ' | ' | ' |
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | 24,498 | 7,742 | ' | ' |
Parent Company [Member] | H.B. Realty Co [Member] | ' | ' | ' | ' |
Investment in subsidiaries: | ' | ' | ' | ' |
Investments in Affiliates, Subsidiaries, Associates, and Joint Ventures, Fair Value Disclosure | $1 | $1 | ' | ' |
Condensed_Financial_Informatio3
Condensed Financial Information - Parent Company Only (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss before equity in undistributed net loss of subsidiaries | $32 | $237 | $361 | $2,448 | $169 | $99 | ($89) | $46 | $3,078 | $225 | ($3,573) |
Net income (loss) | 32 | 237 | 215 | 2,490 | 254 | 118 | -89 | 46 | 2,974 | 329 | -3,573 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 1,217 | 755 | -3,540 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Miscellaneous income | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 0 | 0 |
Total operating income | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 0 | 0 |
Operating expenses: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense-other borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Administrative and other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 168 | 208 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 168 | 208 |
Loss before equity in undistributed net loss of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -51 | -168 | -208 |
Equity in undistributed net income (loss) of subsidiaries and dividends declared from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 3,025 | 497 | -3,365 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,974 | 329 | -3,573 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $1,217 | $755 | ($3,540) |
Condensed_Financial_Informatio4
Condensed Financial Information - Parent Company Only (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | $32 | $237 | $215 | $2,490 | $254 | $118 | ($89) | $46 | $2,974 | $329 | ($3,573) |
Adjustments to reconcile net loss to net cash used in operating activies: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned portion of long term incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4 | 16 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 2,823 | 3,361 | 3,794 |
Cash flows from investing activities | ' | ' | ' | ' | ' | ' | ' | ' | 19,162 | -15,675 | 15,418 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 14,019 | 4,118 | -9,567 |
Net increase (decrease) in cash | ' | ' | ' | ' | ' | ' | ' | ' | 36,004 | -8,196 | 9,645 |
Cash and cash equivalents at beginning of year | ' | ' | ' | 42,021 | ' | ' | ' | 50,217 | 42,021 | 50,217 | 40,572 |
Cash and cash equivalents at end of period | 78,025 | ' | ' | ' | 42,021 | ' | ' | ' | 78,025 | 42,021 | 50,217 |
Parent Company [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 2,974 | 329 | -3,573 |
Adjustments to reconcile net loss to net cash used in operating activies: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earned portion of long term incentive plan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 4 | 16 |
Increase in other assets | ' | ' | ' | ' | ' | ' | ' | ' | -29 | -1 | 0 |
Increase in other liabilities | ' | ' | ' | ' | ' | ' | ' | ' | 216 | 38 | 135 |
Equity in undistributed net loss of subsidiaries and dividends declared from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -3,025 | -497 | 3,365 |
Net cash provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 136 | -127 | -57 |
Cash flows from investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -15,488 | 35 | 0 |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock issued | ' | ' | ' | ' | ' | ' | ' | ' | 16,520 | 0 | 0 |
Common stock issued | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Proceeds from issuance of short-term debt | ' | ' | ' | ' | ' | ' | ' | ' | -132 | 88 | 60 |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | 16,388 | 88 | 60 |
Net increase (decrease) in cash | ' | ' | ' | ' | ' | ' | ' | ' | 1,036 | -4 | 3 |
Cash and cash equivalents at beginning of year | ' | ' | ' | 0 | ' | ' | ' | 4 | 0 | 4 | 1 |
Cash and cash equivalents at end of period | $1,036 | ' | ' | ' | $0 | ' | ' | ' | $1,036 | $0 | $4 |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | ||||
Selected operations data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Interest and dividend income | $2,514 | $2,621 | $2,574 | $2,746 | $2,628 | $2,719 | $2,804 | $2,913 | $10,455 | $11,064 | $12,692 | ' | ' | ||||
Net interest income | 2,287 | 2,389 | 2,343 | 2,511 | 2,383 | 2,456 | 2,528 | 2,605 | 9,530 | 9,972 | 11,121 | ' | ' | ||||
Provision for loan losses | 0 | 0 | 0 | -2,250 | 125 | 300 | 450 | 450 | -2,250 | 1,325 | 6,200 | 6,200 | 15,800 | ||||
Income (loss) before federal income taxes | 32 | 237 | 361 | 2,448 | 169 | 99 | -89 | 46 | 3,078 | 225 | -3,573 | ' | ' | ||||
Net income (loss) | $32 | $237 | $215 | $2,490 | $254 | $118 | ($89) | $46 | $2,974 | $329 | ($3,573) | ' | ' | ||||
Basic and diluted net income (loss) per share (in dollars per share) | $0.01 | [1] | $0.52 | [1] | $0.47 | [1] | $5.44 | [1] | $0.55 | $0.26 | ($0.19) | $0.10 | $1.57 | $0.72 | ($7.81) | ' | ' |
Cash dividends per share (in dollars per share) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ||||
[1] | Per share data for the quarterly period ended December 31, 2013 includes 17,510 shares of Series B Preferred Shares issued on December 11, 2013 converted to common shares at a rate reflecting a price per common share of $0.70. |
Quarterly_Financial_Data_Detai1
Quarterly Financial Data (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 11, 2013 | Dec. 31, 2012 |
Preferred Stock, Shares Issued | ' | 17,510 | ' |
Preferred Stock Conversion Price Per Share | $0.70 | 0.7 | ' |
Series B Preferred Stock [Member] | ' | ' | ' |
Preferred Stock, Shares Issued | 17,510 | 17,510 | 0 |
Preferred Stock Conversion Price Per Share | $0.70 | ' | ' |
New_Accounting_Standards_Detai
New Accounting Standards (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Federal Deposit Insurance Coverage | $250,000 |